Become a Member
Guides and Reports
Show All »
Metrics & ROI
Search Engine Marketing
More Marketing Topics »
Professional Development Solutions
Schedule of Events
Digital Marketing World
Products and Services
Post a Question
Quick Start Guide
Find and Post Jobs
Real-World Education for Modern Marketers
Join Over 627,000 Marketing Professionals
Ask your question ... sign up today! It's FREE!
Just for Fun
MProfs PRO Seminar Q&A
Search more Know-How Exchange Q&A from Marketing Experts
This question has been answered, and points have been awarded.
9/22/2004 at 2:04 PM ET
I need to find out what the standards are for Strategic Marketing Consultant Agreements regarding pricing. I will be working on a number of projects as a consultant, and not having done this for a while, I want to check on what the latest trends/rates are for marketing consultants before I commit to a few projects.
Previous questions in the KHE archives have dealt with
for consultants, so we don't need to go THERE.
What do you know FROM ACTUAL EXPERIENCE or from credible web-based sources?
9/22/2004 at 2:25 PM
Personal Experience: This is how I price myself, using a standard consulting contract.
Retainer: $XXX per month
Hourly: $XXX per hour w/ 4 hour minimum
Retainer/Commission: In area of Collaborative Marketing, I find business under specific guidelines agreed upon in advance w/client. I earn $XXX plus a % of Gross Amount of contract I assist to secure for cleint for duration of new business agreement. 60 day buyout should agreement be cancelled.
Hourly/Commisssion: Same as above in CM area.
The client appreciates the options and it gives them a firm base within their budget constraints.
Hope this helps.
9/22/2004 at 2:29 PM
Just US or Intenational?
Depends, hate to say it, short or long term projects, relationship of your clients? Will they pay the going rate?
Sure there are industry figures but the ones I did have were for the UK and I don't know if it greatly varies across in the US.
I'll dig them up if it helps?
9/22/2004 at 6:24 PM
To All Who've Replied,
Thanks for the input. Good Stuff.
I'll leave this open overnight so that the far East and West can chime in before points are distributed.
9/22/2004 at 7:55 PM
Another source of detailed information on pricing strategies in the US is GSA Schedules. Check out the AIMS schedule, which are detailed pricing schedules which have been "negotiated" with GSA.
You may find some of the verbage and descriptions of services quite handy - but you may need to take some of these prices with a grain of salt... Washington DC is, of course, the home of the legendary $435 claw hammer, $640 toilet seat, and $7,600 coffee maker.
Here is a link to GSA info:
9/22/2004 at 10:19 PM
Range for strategic consultants here in Australia is
- Tiny, un-corporate "contractors" A$300 - 800 per day.
- Boutique firms A$2000 - A$3500.
- Big 4 Accting firms A$3000 - $8000 or more (!!) per day.
I tend to look at what I think the value to the client will be, then negotiate. Sometimes, smaller clients especially, can't or won't pay realistic rates. Other types of deal can be done - deferred payment, sweat equity, etc.
Australian Dollar = approx US$0.70
Hope this helps
9/22/2004 at 10:45 PM
I've been a full-time management consultant for 25 years now, specializing in branding and marketing strategy. I also do quite a bit of work in pricing strategy, and I have come to some interesting conclusions that apply to your question.
First, per diem pricing is a losing approach. The client is always watching the clock, and the consultant is motivated to be inefficient. It breeds distrust and serves nobody well.
Retainers are nice, but not very practical unless/until you've established a solid working relationship and mutual trust/respect with the client.
That leaves project pricing as the best way to go. You estimate what the project will take, what it's worth (to you and the client), and commit to a fixed fee for defined deliverables. If you work efficiently, you make out a little better. If you're inefficient, it's your problem, not the client's.
Now for the magic number: It depends. The effective daily rate can range from $500/day to $3,500/day. There are lots of variables and considerations. Generally, something in the range of $2,000/day is considered about right for high-level strategic consulting -- but it varies considerably, based on the specific project, client, consultant's needs, etc. Also, if you are very efficient and have a fixed project fee, the effective rate can be closer to $3,000/day. Of course, if you're not so efficient, it can slip to $1,500/day (or less) just as easily.
If you want more on this, there's detailed discussion of how to price consulting services in "Rasputin For Hire : An inside look at management consulting between jobs or as a second career." (
Good luck. Let us know what you end up doing and how it works so we can all learn from your experience.
9/23/2004 at 10:16 AM
To My KHE Colleagues,
GREAT STUFF HERE, FOLKS!
NOW I understand why I keep on logging in!
In my mind, it's important that you learn something new every day, and KHE usually provides
a week's worth of learning every day!
In the meantime, I hope you'll still read a few of my branding and strategic insights as they come down the road.
And, by the way, this REALLY helped!
9/23/2004 at 10:29 AM
Sorry didn't back to you earlier.
I work similarly like Jim on RFPs with a mixture of retained and smaller projects.
Rates in the UK vary widely depending on your specialism. Our rates vary from £500 - £1200 daily for a multitude of service offerings and are flexible on longer engagements. Larger boutiques are almost double.
Hope this helps.
BACK TO TOP
Post a Comment
Take 10 / Online Seminars
Six Trends for 2014 in Mobile Marketing and Advertising
by Gregory Kennedy
The Most (and Least) Effective Keywords in Email Subject Lines
by Ayaz Nanji
Get Rid of Your Lousy 'About' Page Once and for All
by Sonja Jobson
QR Codes Kill Kittens: Author Scott Stratten Talks to Marketing ...
by Kerry O'Shea Gorgone
State of Digital Marketing Talent: Skills Lacking, Specialists ...
by Ayaz Nanji
See more marketing articles »
Three P's of Successful Marketing Teams: People, Perspective, and Process
Take 10: Three Ingredients That Turn Engagement Into Measurable Business Results
Future-Proof SEO: Immunize Your Business Against Search Engine Updates
Kiss Churn Goodbye with Data-Driven Campaign Management
The Audience Imperative
See more online seminars »
MarketingProfs uses single
sign-on with Facebook, Twitter, Google and others to make subscribing and signing in easier for you. That's it, and nothing more! Rest assured that
provide your social data to 3rd parties
contact friends on your network
post messages on your behalf
interact with your social accounts
Your data is secure with