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

What is Digital Marketing Partner Program?

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?

A task tracking software displays a summary of how much time each task has spent on a desktop screen
An hourly-based fee for a digital marketing service is a pricing model in which an agency charges a fixed hourly rate for the time spent on a project. The hourly rate can vary depending on the level of expertise required, the type of service provided, and the location of the agency. The hourly-based fee typically includes the time spent on planning, executing, and monitoring digital marketing campaigns, as well as any additional time spent on meetings or reporting.
The hourly-based fee model works by the agency tracking the time spent on each task and charging the client accordingly. This can provide transparency in terms of how much time is being spent on each aspect of the project, and can allow clients to better understand how their budget is being allocated.

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.

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Hourly- vs Value-Based Digital Marketing Management 

 Hourly-Based Digital MarketingValue-Based Digital Marketing
 – Pay only for the work done– Allows for more flexibility
 – Can adjust the scope easily– More room for creativity
 – No fixed budget or scope– Less predictable
 – Easy to track hours worked– Clear pricing and deliverables
 – Clients can monitor progress– Greater transparency
 – Hard to measure performance– May lead to more negotiations
 – Easy to measure performance– Focuses on outcomes
 – Incentivises efficiency– Clear metrics and goals
 – Can incentivise billable hours– Metrics may not capture all value
 – Encourages agency to work efficiently– Aligns agency’s goals with client’s
 – Limits risk for clients– Encourages quality over quantity
 – Can lead to scope creep– Incentivises short-term results

In a nutshell, pricing for a digital marketing agency in the Australian market can differ dramatically. Hopefully, we have given you a good idea of what you can expect from the team at Digilari Media.

Digital Results Guarantee

Are you ready to take your digital marketing efforts to the next level? Our Digital Results Guarantee is designed to provide our value-based clients with peace of mind and tangible outcomes. With our guarantee, you can trust that our team at Digilari Media is fully committed to delivering measurable results for your performance marketing campaigns. From increased conversions to enhanced ROI, our results-driven approach ensures that your investment yields maximum impact.

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Digilari Media