What Does Your Advertising Agency Charge?
There, I’ve said it twice. Why? Because if you are an agency owner or partner or business development director or creative director and you have no clue how to charge for your advertising agency’s services, you are way screwed my friend.
As an agency owner and CEO, I participated in all large pricing surveys. Why wouldn’t I? Throwing darts at the wall of agency fees is not a good plan. It won’t help you win new accounts and will undoubtedly not help you become more profitable. Most of the RFP’s you deal with demand that you get your pricing right. Also, I’ve occasionally used these numbers with existing clients to show them that my agency’s fees were in line with the world of competitive agencies.
This industry-wide survey will immediately become a “best of” because it comes from our friends at HubSpot and the results will represent a huge number of agency respondents. Here is the link to the Agency Pricing & Financials Survey and here is what HubSpot is saying…
How do you determine the price for your services and track the profitability of your agency?
Some might call it an art, but that might be because many agency leaders are forced to get creative with their approach. They have very little industry data and best practices to tell them how to price their services, what metrics to track, and how to improve their business practices.
In addition, profitability in agencies has become a more difficult thing to achieve. Margins are shrinking, and clients can ask for more for less because of the number of competitors.
Do It. It Takes Ten Minutes.
Taking this survey will help all of you agency leaders better understand what pricing models to use.
The survey takes ten minutes. You’ve got ten minutes to get into your competitor’s heads, right?