How Your Digital Partner Should Price Services
There are lots of pricing models in the marketing world. Some agencies offer package pricing, some offer a la carte services, and some charge a percentage of spend. Some agencies might even use a combination of these pricing models. But which pricing model is going to work best for your real estate marketing plan?
At Threshold, we often have clients come to us with limited real estate marketing budgets and in need of an agency whose pricing structure can deliver them the biggest bang for their buck. If you’re in a similar situation and could use some help wading through all the various pricing models agencies may offer, we’ve got you covered. Let’s dive right in!
Project-based pricing is a pricing model that focuses on deliverables. You might pay a la carte for a single service (e.g. a landing page or one-time SEO revamp) or you might pay for a package of various services designed to address common marketing needs (e.g. a new start package or a rebranding package).
Whether buying a package or a la carte services, project-based pricing is a particularly excellent choice for short-term or intermittent needs, one-off campaigns or projects, and any client whose primary need is to expand their content assets.
A la carte services
A la carte pricing is best for individual deliverables that usually fit a standard mold. If you only need a few things and you don’t want to pay for anything not immediately essential or have the need for significant customization, a la carte pricing may work perfectly for you.
Many agencies offer package pricing, which is particularly useful for clients who appreciate a little guidance in determining what they need. Package pricing is a great place to start if you haven’t explored marketing in the past since it gives you an excellent sense of what an agency can do, and allows you to assess the ROI of various services at once. Plus, when it comes to digital marketing, employing multiple strategies that work in tandem can often produce the highest ROI, and agencies know how to design packages based on what produces real impact.
Package pricing also has the benefit of allowing agencies to produce a volume of work, with various deliverables that can each inform the others. This is good news for the agency’s team members, who can work more efficiently and cohesively on several connected projects, and works well for clients in need of a cohesive approach to a number of interconnected needs.
Package pricing can be structured in a variety of ways. A common strategy is to offer different tiers of service, ranging from basic to all-inclusive (e.g. an agency may offer a silver tier vs. a gold tier vs. a diamond tier). An alternative method is to group services by type and charge a one-time or a monthly fee for those services (e.g. an SEO package might group together services like a website revamp and SEO content writing).
Spend-based pricing is useful for clients and agencies looking to ensure that the total price is commensurate with the actual cost of the services. A savvy client can leverage this kind of pricing model to guarantee they’re always paying a fair amount for the deliverables they get. The main downside of this pricing model, though, is that it incentivizes agencies to push increased spend on their clients in order to maximize their own profit.
If you’re a bit newer to digital marketing, or you’re working with an ill-defined budget, there may be a better pricing model for you. However, if you know how to advocate for your marketing needs and know exactly the size of your budget, this model may serve you well.
Still wondering which pricing model is right for your real estate marketing plan? We’re always happy to help you discuss your options! Chat with a Threshold team member today to learn more about the pricing models we use and whether they’re right for your needs.