Creating the right pricing structure for your social media management business is really important.
If you get the pricing right, you'll have a profitable business.
If you don't price correctly, you'll lose money and waste your time....and this is something you want to avoid.
In this article, I am going to explain the best way to price your services as a social media manager so that you can build a profitable business long term.
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Value Based Pricing Explained
If you charge clients by the hour for the work you are doing, you are putting a cap on how much you can make.
You should charge clients based on the value you are providing them by promoting their business on social media rather than how long it will take you.
When you charge a flat fee, you can budget for the entire month.
You should also create flat fee packages that let you charge each month for social media work.
Because here’s the thing: social media promotion requires a couple of months to start seeing results.
It needs to be done every month and on a consistent basis.
Thats why this is a very lucrative business that you can do full-time and charge premium prices for.
But you shouldn’t charge hourly.
Create Price Packages Based on Value
Instead you should create price packages based on value for different levels of business.
So you can have multiple price packages for each stage of a business.
Or packages based on the level of value and results you are more likely to bring.
Some price packages can be more expensive than others.
The lower the price, the less work you do.
The higher there price, the more work you do.
It’s as simple as that.
Some clients may be just starting out and don’t have a big budget.
You can charge them less money for posting a few times per week and just adding a few graphics.
Then there will be some clients that are very profitable, more established and have a bigger budget to spend on social media marketing.
For those clients you can charge higher prices on a monthly basis.
And it usually takes about three to six months to see a result when doing any type of marketing campaign, so you want to emphasize this with your clients.
Flat Fee Packages Bring Predictability
Another benefit of using a monthly flat fee instead of an hourly rate is that both you and your client can budget ahead of time.
Your clients will want to know what they are going to pay for ahead of time so that they can set a spending budget.
Also when you charge hourly, sometimes you can’t always predict how long something will take.
With a flat fee you are charging your clients based on the value and benefits you will deliver to them.
Flat Fee Packages Make It Easier to Outsource
If you want to eventually start a social media marketing agency where you hire other people to help you do the work, using a flat fee will make it easier to manage your team members.
You'll be able to know how much you can pay another person to help you and still make a profit.
But if you charge hourly, it can be a little bit more difficult to predict a monthly budget spend.
How to Price Your Services
What you can do is make a list of all the different types of social media platforms you would like to help your clients use.
Then make a list of the tasks needed each month for each platform.
Then based on that, create a price that works for you.
Here’s the thing, you can charge $5,000 per month or $20,000 per month or just $300 per month.
There’s no “standard” pricing for social media marketing.
Clients who have multi-million dollar businesses can afford more.
Clients who are barely making any money won’t be able to afford a huge budget.
So you need to be clear about the type of businesses you want to go after and sell your services to.
You also need to know how much money you want to make and what your time is really worth.
You are the one to determine the value of your work and so pricing is really a personal choice.
Another thing you can do is create lower priced packages for businesses who are just getting started but make sure that you don’t do that much work.
Then you can charge a couple of thousand dollars for businesses who are generating more money.
So you can have multiple price points.
Create a Menu of Services
A good thing to do is to create a menu of different social media services for different platforms (Instagram, Facebook, Twitter, Pinterest, Linkedin, etc).
Each social media platform is unique and requires different skills.
You can create different price packages for each one.
For example, Instagram requires spending more time creating nice images, so you may want to charge more if your client wants to post multiple times per day.
And if your client wants you to manage their Pinterest account, you need to distinguish if they just want you to pin their existing blog posts or also create new images for their pins.
Each task should be charged accordingly and it's a good idea to give clients different options for flexibility.
I have a guide that shows you exactly how to setup your own social media management business. You can download it here:
Alma teaches women how to create a profitable business that they can work from home. She also has courses for people who want to start a freelance, consulting, coaching or serviced based business. Read and learn more at www.AlmaBradford.com