Why is cost important?
When cost of any service is seen merely as an expense, it is perceived as burden and there is a nagging pressure to avoid or reduce it.
But when the same service is seen as quantifiably contributing to desired growth of a business, the perception changes. And if the growth seems lucrative, the business may get inspired to increase the cost of that service to further its growth.
At the same time, even if a service provides huge benefits to a business, there is no reason why its cost should not be reduced. However, when the urge to reduce the cost starts taking priority over the urge to grow the business, it’s a matter of concern.
The oft-quoted adage you-get-what-you-pay-for is not a scientific truth, if given pragmatic thought. It definitely doesn’t apply to digital marketing services. If you feel the prices offered by a digital marketing agency are higher than your expectation or the ones offered by other agencies, go into detail of results offered and what has made the prices high.
There are several factors contributing to high prices. This blog will give an insight into possibilities of reducing digital marketing costs and getting optimum benefits. The insight will ensure that your business goals are not compromised in your quest for cost reduction.
But, first you need to understand the factors that drive the prices of digital marketing.
Drivers of cost/ price
- Work content that is specific to your business needs.
- Man hours to be deployed that is derived from the work content and efficiency.
- Cost per man hour that is driven by the competence of experts and their geographical location.
- Cost of work that is a function of man hours deployed and cost per hour.
- Cost of outsourced work, if applicable.
- Margin the agency wants to earn.
- Business opportunities that are untapped.
- Desired business growth.
- Prevailing market prices that are determined by comparing agencies’ offers.
- Impact of agency’s price (plus costs of ad campaigns) on the cost of your products or services.
- Prices of your products and services.
- Availability of allied infrastructure and working capital to support desired growth.
What is the right price?
The right price is the one that satisfies the agency’s perspective as well as your perspective as described above. If such price does not exist, then you may want to spell out your limitations and let the agency work backward to offer you the next optimum digital marketing plan and possible results. When the opportunities are high and digital marketing budget is insufficient, it will be appropriate to grow in steps. However, where opportunities are low and digital marketing cost is prohibitive, it is advisable to use digital marketing in a very controlled way.
As implied before, pricing the digital marketing services is a complex process and every agency has its own valid ways for pricing the services. So, for you as a customer, it is important to know the cost of services and the business results they will translate into. This knowledge will be useful when you compare prices offered by two agencies.
How can most businesses benefit from digital marketing?
The world is shrinking. Technology has made it possible. Knowledge disseminates across the world in no time. Cultures have begun to merge at a very fast pace. The people across the globe get connected as neighbours do. It is especially true of digital marketing because, unlike in case of non-digital products, it doesn’t encounter any physical borders.
However, many businesses prefer to have digital marketing services from their native locations irrespective of the prices prevalent in those locations and they have their own reasons for that. But from digital marketing perspective, this is just a personal choice, with reasons built around that choice to make it look justified.
Around the world, digital marketing services are priced in a very wide range of USD 15 to 200 per hour. And it’s a great opportunity for those businesses that find their native prices unviable. Knowing prices and reviews for different locations is only a few google searches away.
After carefully studying the needs of a wide spectrum of businesses, we, at NCMborz, included the following two features in our pricing policy.
- Our services are priced at USD 25 per hour.
- Our monthly retainer starts with USD 350.
While the hourly service charges serve as guideline to price various services, the minimum monthly retainer allows small businesses to enter the realm of digital marketing and increase its pace with time as their profits grow. While the big businesses can start rapid digital marketing now and fulfil their ambitious goals with high speed, the small businesses use special strategies to steer their growth.
Let’s say a start-up business has a limited digital marketing budget of USD 350 per month, exclusive of ad spend. In such situation, it can start with a combination of AdWords and SEO services, but at a slow pace. When the earnings increase, it can speed up these two activities and/ or add Social Media Advertising. With time, all relevant services can be added one by one to digital marketing. In such scenarios, though the business-growth is slow in the beginning, it increases at an exponential pace with time.
The idea behind these two features of our pricing policy is to facilitate any business to start digital marketing NOW!
Why start digital marketing NOW?
It’s common knowledge that digital marketing, by virtue of its convenience, reach and rapidity of implementation produces spectacular results. It has become indispensable, except for few businesses dealing in monopolistic products. Its implementation is urgent. The businesses that got overwhelmed by unaffordable costs of digital marketing and held themselves back are already way behind their established competitors who could afford digital marketing.
Waiting for the right time or more funds to start digital marketing doesn’t help, especially when effective and low-cost options are available in the world. Injecting small funds NOW has tremendous long-term benefits. For example, beginning SEO from today will give free stream of leads a few months later onward; small gains from AdWords now can be reinvested in AdWords and other digital marketing tools for bigger gains in the months to come.
Businesses need to keep their focus on what is possible rather than what the limitations are. Possibilities guide the business to find ways to move forward whereas the limitations seek to keep the business stagnant.
Take the first step
Look at what has been stopping you from venturing into digital marketing. Look at where your business can be with digital marketing. Be in touch with digital marketers and discuss your concerns and limitations. They will show you the ways you may not have seen yet. Help them shift your paradigm with innovative digital strategies customised to where you are and where you deserve to be.