Question

Topic: Social Media

Fee Structure For Seo/smm Campaigns

Posted by cory on 4/15/2011 at 8:21 PM ET 125 Points
We are an advertising, branding and production company and we're looking for some guidance as to the fee structure on SEO/SMM campaigns - specifically SEO, Google Adwords/Analytics, creating FB pages, Twitter and Youtube profiles and integrating all the elements together. Have found some stuff on the web but was hoping the professionals here would have some more insights or links to send us to, to get more info. Thanks in advance for your help.
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RESPONSES

  • Posted on 4/16/2011 at 8:42 AM Accepted
    Fee should be calculated so that the client can clearly see how they'll get a return on their total investment. It should also be fair in both directions.

    You have a couple of basic options (or some combination of them):

    1. You can charge a fixed fee based on what your services are worth to the client.

    2. You can structure a variable fee based on success of your effort -- so that a portion (or all) of the fee is based on achieving certain objectives.

    One way of doing the latter is to charge for search advertising with a mark-up or percentage of the total spend. That way if the client finds the program is working, he'll increase the budget and you'll get paid more. If the program isn't working, he can cut back on spending and you make less.

    Regardless of which approach you select, make sure that the focus is on the client's result, not on your hourly rate. That will ensure that the client never thinks you are gouging him, or taking unfair advantage of the situation.

    (Use of masculine gender for the client is for simplicity. I understand that many clients are female.)

    This is really a pricing issue for professional services. The principle is that the price needs to be something that results in a good value for the client. Otherwise it's not going to result in a satisfactory relationship.

    Want more on this? There is a whole section about pricing consulting services in Rasputin For Hire. Link: https://bit.ly/ihoKqL
  • Posted by modza on 4/16/2011 at 9:18 AM Member
    mgoodman's advice is the best, but you've left a little ambiguity as to why you're asking. Are you thinking about offering such services? Those of us in the biz may be a little reluctant to help a new competitor...

    Of course you know that it's illegal for competitors to compare actual prices (I know you know because you asked about structure), but a direct way to find out pricing structures is to put your own SEO/SEM needs out to bid.
  • Posted on 4/17/2011 at 10:24 AM Accepted
    Hi Cory

    Usually there is a set up fee anywhere from $1,500 to $3,000 the a 20% fee on spend which decreases when you get to around $10,000 the goes down incrementally until you get to around 120,000 when it is around 12 to 14%.

    I hope that helps
  • Posted by cory on 4/17/2011 at 11:31 AM Author
    To Josephine:
    When you say set up fee, does that mean a separate set up fee for each element of the SEO/SMM campaign or is that cumulative? From my homework and research it would seem that your $ range would be a set up cost for each one. Please clarify.
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