Digital Partner Program: Hourly-Based vs Value-Based Fee

The Digital Partner Program, (DPP) was designed to give clients peace of mind that they could talk to us about any digital marketing channel or challenge. Knowing we were there to help, regardless of the channel we discussed at the beginning of the relationship.

In doing this, we can achieve a good balance of clients and internal resources, whilst keeping our agency costs in check. Getting clients on board and seeing the good work we can do for them. Then, discuss if necessary other channels and digital marketing services with them. Once they fully trust that we have their interest at the centre of all things we do for them.

What is a hourly-based fee?

What is a value-based fee? 

Value-based fees are often considered to be the best way, but they are also the most difficult to come to an agreement on. As such you just need to have deeper discovery sessions to get to the heart of the client’s objectives. The ‘why’ of the growth goals and what it actually will mean to them as a business.

Value-based account management is a pricing model in which an agency charges a fixed fee based on the value provided to the client, rather than on the amount of time spent on the project. This can provide greater predictability and alignment between the agency and the client in terms of goals and outcomes. This might be the level of growth you wish to achieve or the number of leads you require each month etc. When the agency takes on value-based accounts like this. They are also tied to these goals and the cost to the client is determined by the level of difficulty it is to achieve these goals.

The reason they can be difficult to agree upon is that client goals are not always realistic or the very least not completely transparent. Additionally, there are a lot of factors outside the agency’s control.

Value-Based accounts have a deeper strategy driving the desired outcomes

Value-based accounts are generally at the higher end of the equation. They require a much deeper understanding of the client and the market they operate in.

In order for us to take on a value-based client, we would tend to charge a minimum of $5000 per month for a minimum period of three months, preferably six months. This allows us to conduct the necessary research, and correctly set up and implement the various aspects of the campaign. Then run this campaign as effectively as possible over the remaining time. Generally, these types of accounts are Inbound Marketing centric, with a heavier reliance on producing high-value content.

Basically, that’s the two approaches to an agency service fee model. However, there are also various one-off set-up fees. Plus media spend if you are using paid media channels such as Google Ads, Facebook and alike.

Media spend amounts can only be determined once you have clear goals, we know the market in which you operate. How long the campaign is running for etc. Essentially, too many variables to give a concrete answer to the question, ‘how much do you need to invest’, right now.

But we can determine what budget is required after an initial discovery session, with no commitment required from you until you are completely satisfied with what we are suggesting.