Okay, let’s talk about MONEY

“No matter within which industries, I believe there will a strange relationship when coming to the pricing part.”

“Okay, we are charging your company for a setup fee RM 500.00 and 30% of the management fee for your 6 months Google Adwords campaign, please sign the contract if you agree.” “No, my boss said we will only sign the contract with the 20% management fee without any setup fee needed. Otherwise, we have other selection deal from other agencies.” “Erm… would you able to provide me some time to talk with my management to talk about this case…?”

No matter is agencies or business owner will need to clearly understand that the reason for certain pricing. Agencies not advisable to simply lower down the pricing of any certain of the contract to be a “bait” to let the client sign on it. Because:

• You will easily be ended up not enough money to stabilize the company operates as every campaign no matter is SEO or PPC, as a specialist will need to dedicate time and effort to do analysis, communication with the client, testing the errors, run a campaign and monitor the campaign of the clients.

• “In the service line, time = money”, every spent time for a particular of a campaign will cost from the management fee that is earned from the client. The surplus will be dedicated to the company advancement by providing to company facilities maintenance, employee training, corporate training to ensure the company is growing in order to provide professional services to the client to run the campaign successfully.

• We need to ensure a good pricing model can be a deal between the client and the agencies to let both parties ensure the sense of security can be formed with good dedication and quality work was done. A good deal can let both parties can fully understand the role of each other to strengthen the business relationship and work on the project with high confidence to bring out the good result.

“Lucky Deal = Self Efficacy = Ability + Confidence = Good Result”

Every formed deal, agency must fully confident on the price set in the contract which defined by own agency. Agency have the responsibilities to make sure the client understand the price is worth that much in order to make sure the funding (Money) can support the operation (times, creativity, discipline) of the agency overall of works to ensure your agency specialist able to dedicate enough time and effort to create a successful campaign for every client. A salesperson can’t let the deal become a liabilities for the company, to drag down the quality of the whole projects. It is irresponsible for own agency and clients.

“Pricing not only determines the profitability of your agency, but it influences your staff’s retention rate and happiness, client satisfaction, how you market and sell your firm, and your financial stability.” — Jami Oetting

Salesperson have the responsibility to bring back a reasonable deal that can help the agency to unleash the specialist ability in the overall campaign period. An agency is operating with the funding of every deal of the client, salesperson need to ensure every deal able to cover the whole operation of the work to ensure the dal won’t be a liabilities of the agency to operate, which agency need to spend more time with a deal that can’t cover the cost and time in the overall campaign period.

Not only the agency will confront with the lost of the campaign but also the quality of the campaign will be affected too. The relationship between agency and client will also break in the long run. It is just not worth to every party by signing back a deal to give some number for the sales target.

The value of the campaign needs to be understood by the client to ensure the relationship will be long last. If a person really wants to get an information, the internet is always there. It is not advisable for a company to simply lowering down the agency deal by neglecting the confidence level of an agency to finish a good job by accepting an unreasonable low deal.

“Do you really think that a project that can bring you businesses or money, and the value will worth such low?”

If a business owner can’t accept the money set by an agency, I strongly believe that it is the bad job of the salesperson of the agency. Because he/she didn’t let the client know how a digital specialist will dedicate their effort to work on a project. Normally when a deal signs back, the fees of a deal need to cover the overall of the operation of a project:

• Petrol fee of client servicing team to travel to client’s location
 
• Fee of the print paper
 
• Fee of the digital skills and knowledge
 
• Time to study a business nature
 
• Research time of the digital specialist
 
• Fee of the researching tools
 
• Time to design a campaign with creativities
 
• Time to operate the campaign
 
• Time to monitor the campaign everyday
 
• Time to explore the part that can be improve
 
• Time to do the report and send to client and get constructive feedbacks to improve the conversion rate/ exposure of the campaign
 
• Improvement activities need to brainstorm to optimize the campaign
 
• PASSION!!!

“If you pay peanuts, you get monkeys”

“You must love yourself so you can love others!” A financially stable company won’t simply lower down the value of a deal for any client, as they understand how much funding they need to operate their company to provide a quality service for the client to develop a strong relationship between client and agency.

Besides every agency, hopes that business owner can understand your agency service level and see what is the things that they are going to do for your campaign, to prevent you are going to get a stupid report that won’t provide any constructive value at the end of the day.