How Do Your Fees Work?
There are several compensation structures we offer clients based on the type and scope of work they need. Here are the common arrangements:
Commission Based
For clients that utilize traditional media i.e. television, radio, outdoor, print and other offline media, our fees are usually completely covered by the discounts we receive from our media vendors. The standard agency discount is 15%. Here’s how it would work with a hypothetical budget of $10,000:
- We purchase $10,000 worth of advertising inventory on behalf of you, the client.
- At the conclusion of the campaign, the media vendors invoice our agency for $8,500 (a 15% discount).
- The remaining $1,500 covers the agency fee.
Clients like this arrangement because they end up getting our services without spending any additional money. It works really well for situations where clients use us primarily to manage their media planning and placement.
Retainer Based
For comprehensive consulting services and/or situations where media commissions are impractical, we work on a flat monthly retainer. Depending on the scope of work, these fees range from $3,500-$15,000 per month.
There are also instances where clients prefer to hire us to work only on specific aspects of their marketing program. In these cases, we offer a reduced-rate retainer based on the scope of work. Typical examples of this would be pay-per-click marketing, social media consulting, email marketing management etc. The management fees for these services start at $1,500/month.
Retainer Plus Commission Based
For clients with full-service consulting needs and extensive media plans we often work out a flat monthly retainer plus media commission arrangement.
Project Based
Sometimes clients just need us to do a specific project i.e. build a website, design a logo, write a sales letter, etc. In these instances we are happy to quote a flat fee for the project.