Question

Topic: E-Marketing

Pricing A Digital Marketing Strategy & Budget

Posted by Teri Ross on 11/19/2011 at 12:04 AM ET 250 Points
I am trying to determine how best to price the development of a digital marketing strategy and budget for a rapidly growing start-up SAAS company. I know the principals well and I am an investor in the company. I have been asked to join their Advisory Board and to become more active in their e-marketing efforts. I have an excellent reputation in the e-commerce world, with nearly 15 years of Internet marketing experience.

Should I price this as a deliverable and for how much, or should I price it as a monthly retainer and if so, for how much? Thanks in advance.
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RESPONSES

  • Posted by modza on 11/19/2011 at 9:13 AM Accepted
    Retainers are nice for the recipient because you're more or less guaranteed an income --and for the company's budgeting process and paperwork, because it's predictable and simpler paperwork-- but not so good if the company wants to use its money efficiently. Or in plainer terms, wants to keep its burn rate low. Plainer still: it's a ripoff, especially for a startup.

    Deliverables are better for the company because (no disrespect to you) there's accountability for the money--but it does require someone on staff to pay attention.

    Shouldn't be discussing actual dollar amounts since that is close to pricefixing, but as a very rough guide one could look at what salaries are digital marketing execs in your industry and region (salary.com is one source), then, as a consultant, double it on an hourly basis -- since you're not getting benefits and typically can't bill or expect to have work for more than 50% of a typical year's 2000 hours.


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