How To Price SMMA Services Correctly
As a new SMMA, determining the pricing for your services can be tricky.
You want to set a price point that reflects the quality of your services without pricing out your target client base.
To learn more about the best price point to set for your services, read on.
Ways to Price Your SMMA Services
While there are plenty of ways to price your services, it boils down to four main pricing methods.
Set a fixed fee for each service
A tiered plan model
Charge a retainer fee
Custom packages
Performance-based pricing
1. Set a Fixed Fee for Each Service
If you're just starting out with your SMMA, then this pricing model may be the best option for you.
The way that this pricing model works is by charging the same fee for each service that you offer.
For example, if you're offering social media management services, you would charge a fixed fee per month for managing a client's social media account, regardless of the number of hours spent working on their account.
The fixed price model is similar to how software companies like $99 Social price their services.
For a fixed amount, you are given a set number of social media posts per month.
You also have access to add-ons that you can use to round out your social media for an additional fee.
Determining how much to charge for this model can depend on a number of factors that you have to take into consideration.
The number of estimated hours it would take for you to finish the service
The value of the service to your client
Your experience and skill level
A fair market rate for similar services within your industry
This pricing model is best for agencies that are just starting out in the SMMA industry or those that don’t want to deal with the complexities of other pricing models.
2. Tiered Plan Model
This pricing model works by offering different plans at varying price points that include different levels of services or features.
This allows you to offer a range of options to your clients and makes it easy for them to pick a plan that best suits their needs.
For example, The Social Media Lady provides tiered pricing for some of their social media marketing services.
Starting with a basic plan, the succeeding tiers offer more features at correspondingly higher prices.
The higher the tier, the more you can expect to pay and the more features you have access to.
An example of a tiered pricing plan that you can offer as a SMMA is as follows:
Basic Plan ($200/month): Basic account setup and two social media posts per week.
Standard Plan ($400/month): Advanced account setup, four posts per week, weekly analytics report.
Premium Plan ($600/month): Comprehensive account setup, daily posts, monthly analytics report.
3. Charge a Retainer Fee
Retainer fees are a common pricing model in the SMMA industry.
This pricing model works by charging your clients an upfront fee every month to secure your services.
For example, if you charge a retainer fee of $1,500 per month and your client agrees to retain your services for 3 months, they would need to pay you $4,500 upfront.
This can also be adjusted for hourly rates.
When it comes to determining how much to charge for a retainer fee, you should consider the following factors:
Market value of your services
The number of hours per month that you’re willing to dedicate to the project
Your skill level and experience
Any additional services or features that are included in the retainer fee
Retainer fees are best for clients that need a more comprehensive and longer-term approach to their social media management needs.
4. Custom Packages
Custom packages are tailored toward individual clients and provide a highly personalized experience.
This pricing model works by creating custom packages based on your client's unique requirements, budget, and goals.
As a SMMA, this custom pricing model can take the following form:
A client needs help setting up and managing their social media accounts, but they don't know exactly what their business needs yet. However, they have a budget in mind.
You can create a custom package that includes all the services they need while meeting their budget.
This pricing model is best for clients who want to work closely with you on developing tailored solutions for their business needs and are willing to pay for it.
5. Performance-based Pricing Options
Performance-based pricing is a compelling model to consider for your SMMA.
With this approach, pricing is directly tied to achieving specific marketing goals or key performance indicators (KPIs).
For example, you can set your fee based on the number of leads generated, the increase in website traffic, or the growth in social media followers.
Clients love this model as they pay for actual results, and it serves as a powerful motivator for your team to strive for success.
Of course, you should always set realistic and measurable goals and have robust tracking systems in place.
However, keep in mind that this model can also be risky for you. If you're unable to deliver results, then you don't get paid.
Crafting Effective SMMA Pricing Strategies
Now that you know the basics of pricing your SMMA services, there are a few other factors to consider when crafting effective pricing strategies.
1. Set Your Services Apart from Competitors
When setting your price points, make sure to differentiate yourself from your competitors. This can be done by offering unique packages and features that they don't offer.
For example, you can offer a package that includes ongoing training and coaching sessions, which your competitors may not provide.
This will help you stand out from the crowd and give potential clients a reason to choose you over them.
2. Offer Discounts for Longer Contracts
Another way to incentivize customers to sign up for longer contracts is to offer discounts to those who are willing to commit to longer terms.
For example, if a client signs up for a three-month contract, you can offer a 15% discount on the total amount.
This will not only encourage customers to sign up for longer contracts, but it will also help boost your bottom line in the long run.
About 53% of customers have admitted to sticking with a brand for longer when offered a discount, so this is definitely a strategy worth exploring.
3. Offer Value-Added Services
When it comes to SMMA services, many clients are looking for a comprehensive package that includes value-added services.
These can include things like ongoing training and support, analytics reports, content management, etc.
By offering these extra services in your pricing packages, you will be able to differentiate yourself from other SMMA providers and further incentivize potential customers to sign up for your services.
4. Monitor the Market Regularly
Finally, it's important to keep an eye on the market and adjust your prices accordingly.
This will help ensure that you remain competitive in the marketplace and that you're able to attract new clients while still maintaining a healthy profit margin.
Wrapping Up: How to Price SMMA Services
In SMMA, there are five pricing models that you can follow when pricing your own services:
A fixed fee for each service
A tiered plan model
A retainer fee
Custom packages
Performance-based pricing
Each of these pricing models has pros and cons.
Do your research to understand what each of your services requires, and shortlist the most viable pricing option for your SMMA.
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