How Do Digital Marketing Agencies Charge?
In the age of social media and search engine, every business must embrace digital marketing so as not to be left behind. Digital marketing has proved to be essential with the rise of e-commerce and many new startups growing faster than a family owned business that has been running for over 20 years. So, how much exactly does it cost to do digital marketing? What is the actual price and perhaps charges on digital marketing services in Singapore?
Well, below are the 2 common ways how agencies charge for their services. They are also a guideline as to how agencies come up with their digital marketing price.
1.A percentage of your total media buying budget.
Example: You have a digital marketing budget of $2000/month. The agency usually charges somewhere between 20% – 25% from that amount as their management fees and the rest will be used to pay the platforms e.g. Facebook, Instagram, Google, etc..
Pros: Easy for you to allocate your budget.
Cons: If the marketing budget is very low, you will keep hearing the agency to ask you to increase your budget every single day. For a low budget company, it is not recommended to take this style as the Ad performance is usually ineffective.
2. A fixed monthly management fee.
Example: The digital marketing agency charges $1000/month for management of digital marketing and everything else that they offer in their package. This amount does not include the media buying that needs to be paid to the various marketing platform, e.g. Facebook, Instagram, Google, etc.. For this style, your company needs to plan how much you’d like to spend in total and do the breakdown 1st. You may speak to the agency for the recommended amount to spend according to your objective.
Pros: The company is being paid for what they asked. The rest is on you. They will do their best and whatever it takes to ensure that your Ads are successful or exceeds its objectives.
Cons: You need to calculate carefully to factor in your media buying budget. You will tend to overspend using this method. But if results can be seen, I’m sure nobody minds.
But at Doozlers Digital Solutions, we did a survey on why businesses have not gone into digital marketing fully or have not even tried digital marketing. Apart from not understanding how digital marketing works, they feel insecure that no company offers guarantees. So at Doozlers, we came out with a third way for this group of businesses.
3. Pay 5% – 10% of the total number of deals you’d like to get for the month.
This means that the company pays Doozlers Digital Solutions anywhere between 5% – 10% from their product/services total price first. If Doozlers does not deliver at least 60% – 70% of the desired objective, the whole sum that was given in the beginning will be refunded back 100%.
This is good for big ticket items like properties, wedding packages, renovation packages, etc..
For Singapore, such a package is definitely a first of its kind because Doodlers Digital Solutions is fully confident that the objectives given will be met. So, why wait? Need an effective digital marketing company? Just contact Doozlers Digital Solutions today!