How To Price Social Media Marketing Services

How To Price Social Media Marketing Services



hey guys Jordan here and in this video I'm going to be talking about how to price your social media marketing service but first things first as usual like/comment/subscribe tenant notification Belon let's get started with this video so how do you price your social media marketing service now let's kick start this with a question that comes up in mailbox all the time absolutely hate is hey Jordan what are your package prices now if you are one of those guys or ladies who are promoting packages for your business I advise you to stop because I'm in my opinion you were doing it all wrong it's impersonal it shows a complete lack of care and quite frankly I think it's quite unprofessional in our industry as well and I'll explain that now if you were to walk into a doctor's surgery and God forbid you had something wrong with you you had some kind of illness and you walked in stare and the minute you meet that doctor before he even finds out what is wrong with you he says ah take these pills take this take this take this you want this in the morning this at 9:00 a.m. have all this it will make you feel better how would you feel how would you feel think about your thought process then vote for process of being chucked medication without even being diagnosed okay maybe you feel like this is a complete lack of care you feel like that person doesn't care about you well that's how businesses feel when you approach them with a list of packages okay you're not even finding out what is wrong with their business you're not even diagnosing them before you are offering them services you are offering them a list of services you can offer gold silver bronze however you are however you are labeling it it is unprofessional it shows a lack of care it's impersonal just don't do it and there's a much better way for you to price your service social media marketing service should be value-based it's a value-based price now what do I mean by value-based pricing I'm talking about the amount of money you can make for that business pricing your services based on how much value you can bring to that business I don't know how easier I can explain that and generally speaking the absolute that I will work with a facebook at Berkeley and so a full kind of work social media marketing client is a thousand pound a month that's a minimum I would go for but really I mean now I'm aiming for clients there were five thousands of month a five thousand a month plus okay so I'm going for high ticket clients but you want it to be somewhere between 1000 and 5000 a month clients if you're going for like mid to high end businesses now people say all the time how how would you get away with charging a thousand pounds a month why do why would businesses pay that why would a restaurant in my city pay me a thousand pounds a month for my service it's ludicrous on it's too much money people say that and that's what hold people a lot of people who are starting out in social media marketing that's what holds them back from actually taking action because they don't believe that they are worth the price that they are demanding so I want to do a bit of mass for you guys just to put this into context and how much money you can make these businesses so you can realize that these service charges that you're demanding at thousand pounds a month is the minimum you want to be going for bear in mind that even the loss of that isn't a lot of money to this business you're gonna be making them an awful lot more than that so let me see if I've got a calculator around use my phone so let's just use my phone and let's just say that we're working with I don't know where amides range restaurant in our local area okay and let's say we've had a month of them this month we haven't had the best of mums and we get them a hundred bookings no let's say let's make it worse than that let's say we've made we've got on fifty bookings through Facebook so off the back of offers and driving traffic to their booking page or however you're running your AdWords form that's so you get 50 bookings so I can save that month now those and those fifty bookings the average table size across the world in restaurants is free people in a restaurant on it on a table it can be fiving to be 10 it can be 15 it can be even one but the average is around free so that's times at 55 three so that's a hundred and fifty people that we will be bringing to that restaurant that month now let's say that that restaurant has an average spend per head of 20 pounds or 20 dollars okay so 15 pounds a main meal and I like 5 pounds for the drink that's pretty bog-standard that's not high-end in the UK at all all your us for that matter so let's times at 150 buy and buy 20 so I've got distracted there that's three thousand pounds or three thousand dollars that you'll be making for that business in that month okay now take away their profit margins whatever you're they are already in profit on this month you've had a crappy month for them but you have already made money for them they're already in profit but it doesn't stop there okay it doesn't stop there at all because let's just say out those 150 people ten percent of them become true fans of that business they have such an amazing time that I love that restaurant then ass is one of their new favorite restaurants Akane that's very likely if this restaurant is that if you're doing your prospecting right and the businesses that you're working with provide a high quality product they are a great restaurant with good reviews and everybody loves their food and that's where you want to be doing a prospect and you want to be looking out for high quality businesses then 10% is the minimum you're going to be looking at for conversion so let's just say 10% of people enjoy that bit that restaurant so much they enjoy that meal that they become true fans that's 15 people 15 true fans that we have just obtained now a blos 15 people how many times they're going to revisit that business in that year well I for one I eat out four five times a week I'm a bit of an exception I'm an absolute foodie I love eating out and I eat out of my favorite restaurants probably 20 30 times a year but let's just say that these people were these 15 people are eating at that restaurant 10 times in a year because people who eat out there generally eat out quite a lot unless it's a special occasion so 15 times by 10 that's another hundred and fifty visit okay there's a hundred and fifty visits times that by the average table size of free that's that's 450 so I don't know if you can see this I'm just waving my phone around at 450 people that'll be coming to that business off the back of the true fans times up by 20 which is the average spend per head that's nine thousand pounds or nine thousand dollars that you will have made that business from just those 50 people that you've got booked from Facebook plus the three thousand pounds that we made off the 150 already that's one that's twelve thousand pounds can't get my words out today that's twelve thousand pounds or twelve thousand dollars that you would have made that business from a month okay from a crappy month of getting 50 bookings from Facebook now let's just put this into a large-scale here now this is this is not typical with all this these results aren't typical at all I've mentioned this in previous videos with previous videos before you can go look through my channel I one of my restaurants in February this year I've got 1,300 first-time customers forward them through Facebook advertisement so let's just say divided by 3 that so that's 433 bookings that I got for them so 1300 people times by 20 the average spend per head and that month alone they made 26,000 pounds from me now those 1,000 friends of people let's do the same math 10% of them become true fans that's a hundred and thirty people okay times that by free which is the average table size okay times that by 10 which is the amount of times that they're coming over a year so they'll be coming to us 10 times in that year that's 3900 visits times up by 20 that is 78,000 pounds or dollars that I made for that business potentially in that one month now do you really think that this restaurant who actually pays me 2,000 pounds a month do you really think that they're worried about that 2,000 pounds a month service charge of course they're not and that's that's not a typical month that was the best month I've had with them ever but on average on getting them around 600 people in their restaurant every single month so about 200 bookings every single month from Facebook adverts so I just wanted to lay that out for you and put that into context for you so you can see how much money you can make these businesses and that's just for restaurants I get fantastic results for gyms and every single business and I work with and it all you've got to do is work out the lifetime value of these customers and the lifetime value of that specific business whatever whatever industry that they are in so for instance with gyms let's say you are running a free week trial one week and you have I don't know let's say you have a hundred people would deem that free week trial let's say half of them turn up that 50 people and let's say after that free week trial 10% of them convert or that's yeah that's probably a bit mean let's say that the 50% of things convert so 25 people actually turn into paying customers times by 25 pounds the average gym membership so 25 times 25 that's 625 pounds but on average people say at a gym for three months globally across the world people stay on average for three months people drop out some people may stay for three years that's 1875 pounds you have made for that gym and that's just off one offer that probably cost you about 50 pounds on adverts been that you ran for one week so I'm just trying to lay it out for you guys for you to understand how much money you can make these businesses and that you really really need to reassess in your mind how much value you you can bring to them and how valuable you are as a service provider and how powerful Facebook advertisement and all social media marketing can be and then you'll become comfortable with your pricing you'll be confident with it and you can go sell the out of it and approach companies and sign up clients like this because I don't even question my service charge I don't even question it in fact I had a red Ventus client once and I told this this story before I have a dentist client once who told me that their dental implants cost 30,000 pounds now I quoted this dentist 1500 pounds and they told me that was too much money down to my own fault I didn't convey enough value in the meeting but I laughed at them and I said you've just told me that your dental implants are thirty thousand pounds if I just got one customer for you that's like your year's supply of service charges plus all of the other services teeth whitening teeth cleaning that they provide as well and it's just bananas that people doubt their service charge and they doubt their pricing and yeah that's it guys I'm rambling on realize your value realize your self-worth I've said this so many times on my channel provide value-based pricing just a recap do not offer packages it's unprofessional its impersonal and it's a one-way ticket to the failure of your business that's the end of this video guys I'll be back again on Friday this week I've got a really really hectic week with meetings I'm signing up a new client tomorrow I've got a kickstart meeting which is really really exciting with a Jhin down in London so happy days that's endless one guys I'll be back again on Friday if you liked it please do subscribe Antonio notification bell on see you then

46 thoughts on “How To Price Social Media Marketing Services

  1. HUGE ANNOUNCEMENT! I've just released my first ever printed book 'The 15 Minute Agency' & for a very limited time I'm giving it away for FREE! Click here to get a copy – https://www.15minuteagency.com/free-book

  2. Here is the problem with your numbers…So 50 people is a pretty good result within 30 days, I wouldn't say thats a bad number. If 50 people x 3 = 150 customer x $20 meal= $3000 in (REVENUE). The problem with your outlook is that restaurants make 3.5% profit margins on average. So $3000 x 3.5% = $105. That number does not justify charging $1,000 per month, so tell me how this makes sense..They would be in the negative -$905.

  3. Really good video! Can u give me a example of life time value with a chiropractor? Thanks again the video really helped!

  4. How about profit Jordan? The thing is, we see agency vids and everyone talks about the total billing. 1500 a month of 10k a month equals 120k a year agency etc. However, how much of that is ad spend and how much goes to actual cost? If doing work yourself it’ll be one number but if subbing out, it’ll be another. So my question is, are you building profit in as a set figure on top of whatever you estimate a fair monthly fee to be or is it random? As you said here, all clients are different. Just because a student lands client charging 10k a month doesn’t mean they’re actually profiting 10k a month in spendable income. In fact, I’m sure sometimes ppl earn more from 2k clients than the 10k just because the tasks are simpler and more automated and less personal time is required etc. Thoughts on this?? Thx!!

  5. Hi Jordan, I now just got the confidence to get into social media marketing and I already booked 3 clines that i will be seeing in the upcoming weeks. I just wanted to know if the £1000 a month service charge included you buying a Facebook ad and other social media ads, or if you charge the clients for your service charge and charged them again for buying ads for them. would love to know your input and reply thanks again. Love the video!!!

  6. This is one of the best videos you’ve made in regards to how to get across the LTV to a prospect. I’ve used it myself and it works!

  7. Hey Jordan thanks for the content. Just one question: how do you know how many leads you are going to bring them? Surely if you're spending more on ads you're going to be bringing more leads?

  8. why do you say "dont offer packages"on the end ? the costumor wants to see what he buys no?

  9. Where I live anything less than $1,500 a month would be working for less than minimum wage. I don't think any reputable businesses would be willing to pay you under minimum wage.

  10. But what is the difference between someone who pays me $1k and some client who pays me $5k? What differences should I make in my services worth $4k?

  11. Does that $1000 a month include the cost of ads or is that an additional cost added on to the $1000 a month

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  13. Hi Jordan. Great video. This is just focused on FB ads. Minimum £1k exclusive of ad spend. How would you price up as a minimum social media marketing where you're creating content (not designing, thinking up content ideas), content planning and scheduling and posting, analysing metrics?
    How much should you charge for running ad words too?

  14. Thank you so much for this Jordan. Value packed as always.

    Thanks so much for 15-minute Agency as well. Just got it this week and sat my first meeting this morning. GOLD!!
    Definitely didn't close her, definitely need more practice and I saw this video right on time for 2 reasons.
    1) I definitely undervalued myself, no two ways about it
    and
    2) I didn't quite convey why my price point was super value for the results I'll be getting vs what she told me her current monthly rev/average customer spend etc.

    BUT – I had the confidence to do it, feel it went pretty well (lol) AND I got off my hands and took action! Long will that continue.

    I'm coming for your course when I've raised the funds. Thank you so much! I think you're amazing!

  15. I've been thinking that maybe you can charge at least, what a full time-minum wage job pays you. Don't know about other places, but in Texas, USA, it's $300 dlls a week, so $1,200 dlls a month. As a professional that brings value and costumers to one of your clients, I think that should be your minimum. Don't you think? You're working the whole week creating content, using your knowledge and creativity to solve the problem of how to bring people to their facilities.

  16. Help me out here. I’m confused as to what amount to charge. For example, if I charge a business $1200/month, do I take the advert costs from that 1200, or do I charge 1200 for my services and an additional cost for the adverts?

  17. Hands down the clearest, charismatic and concise SMMA mentor out there. Respect for all the support. ESSENTIALLY FANTASTIC

  18. How do you guys keep track of how many clients you are bringing in to a restaurant? Not sure how to track when it’s offline.

  19. What if u ask like $1200 a month , but get them only like $900? Are they still supposed to pay the whole $1200? If someone knows the answer, I'd like to hear it.

  20. Thank you so much for your videos! There are very helpful. I have a question, Let’s say I charge $1,000 is that the fee or does it include the ad cost. If not, how much would you tell the customer the money he has to invest for the ads?

  21. Hi Jordan

    Lets say I charge a business € 1000,00/month. How much should I spend on ads and how much should I keep to myself as income?

    By the way, amazing video, keep up the good work!

    Thanks in advance mate!

  22. But lets say you get 1000 the first month but they get more customers the next month should you then charge them more? @jordanplatten

  23. Hey Jordan,

    If I get people questioning my prices for $1500 is there a gap I can work with? I have had a few clients say that 1500 is a bit pricey and didn't know if I could cut my service charge down or maybe you do something as a backup plan! Thanks for all your help, your course is great.

  24. Hey Jordan to you think your method will work in the middle east (Jordan amman)(by the way average salary for a employees are between 350jd to 500jd).
    And social media agency offers package service only (in amman Jordan).
    Please give me your opinion

  25. To fully explain, you have covered CASH FLOW, but profit wise, this will be long to pay off the spend. I DON'T disagree that your service is super worth it, but there is more on both the positive side and perhaps challenging side to sell restaurants. Would love to analyze more to PROVE your analysis.

  26. Hey again Jordan! What if SMMA Companies are charging 1000$ per Year here in Lebanon?
    I was told that my Dentist after my pitch and was like WTF !!! He was already pitched by the company a week ago before I came to him and he sent me an Instagram account of another dentist they've worked with and made great results! https://www.instagram.com/dreliegemaa/

    Now Do you think I still have any chance of getting clients with 1000$+?…

  27. With all the problem here in Italy is hard for a business to make a 1000£ for itself,it s very hard to ask that.😕

  28. Hi Jordan, thanks for the great value! I've also been doing the maths for Pricing for restaurants and I think it's a bit more complicated.

    For example et's say a customer's LTV is $20 (spend each time) * 1 (once a month) * 12 (months) * 3 (years) = $720. He also recommends 3 other friends to eat there so the total LTV of this customer is 720 + 720*3 = $2880.

    So whenever you bring a new customer to the restaurant, you bring them $2880 and you bring them multiple customers a month so it seems fair to price your service $1000-2000/month. However, I am still struggling with these two issues:

    1) Although you make the customer $2880 every time you bring a new customer, on a monthly basis you are making that restaurant only $20. Let's say the table size on average is 3 and you get the restaurant 200 guests that month, which is $20*3*200 = $12000 in revenue. I did a quick Google search and found the average restaurant margin is around 6%, which means in that month you make them $12000 * 6% = $720 in profit. Of course, when you run FB ads and get them 200 guests you also bring them social ROI (branding, potential customers) but if you make them $720 profit and charge them $1000, they are at a loss and in the long term probably they wouldn't be able to afford you.

    2) Continue from scenario 1, if a new customer's LTV is $2880 and the first month you bring them 200 guests, let's assume all those 200 guests are first-time customers so in that first month you can say you bring them $2880 * 200 = $576,000 worth of value, not revenue for that month. In the second month, let's say you continue to bring them 200 guests, but now in those 200, only 100 are first-time guests. Now for this second month you are only bring them $2880 * 100 = $288,000 worth of value. So on for the next few months the value you continue to bring them is less (except for when there is a wave of new people moving in town) while only making them $720 in profit (like calculated in scenario 1), which is not enough to cover your service.

    My thoughts on solving those issues are:

    a) Target businesses in bigger towns/cities (50,000 in population or more) where you can always find them new customers.
    b) Forget whether you generate profits for them or not. Estimate how much revenue you can generate for them and take a fraction of that (10%/20%/whatever you think is suitable for you). Let them (the clients) figure out the numbers on their own. If they think your service is worth it despite not profiting from it, you'll have a deal. Otherwise, find other clients.
    c) Target businesses with a higher margin than restaurants, like dentists, chiropractors, etc.

    Those are the problems I struggle with these days when I think about pricing. I haven't launched my agency (but soon, within a month :D) and I hope you enlighten me with your experience.

    For anyone who reads this comment, please join in and share what you think :D.

  29. Hey Jordan, does this £1000/£1500 a month retainer fee inclusive of the ad spend, it is that an additional cost? Thanks mate!

  30. Fantastic information, brother! Thank you for it. I have been struggling with how to price my services. This was timely.

  31. That £12,000 would be turnover not profit. Say the restaurant were working on a profit margin of 60% then you have really made them £7500. You really need to factor this in to get your true fundamental value.

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