Have you been searching to know how much it can cost to hire a marketing agency? Then you are in the right place.
From research, we noticed that the cost of hiring a marketing agency mostly varies depending on the organization or individual that is hiring the marketing agency.
Perhaps, the cost of hiring marketing can depend on some factors which include the size of the hiring company, its reputation, its scope of work, and even geographic location.
Moreover, we also notice from research that most of the agencies that look forward to hiring a marketing agency will bill either on an hourly rate or probably on a quote for an entire project.
As a digital marketer, you should be aware that marketing agencies by default used to have different hourly rates for services.
A good example of this is – the hourly rate for graphic design, illustration, programming, creative direction, project management, content creation, or strategy development are all different because of the nature of their jobs and what they can be able to achieve within one hour.
Comparing the above example with the cost of hiring a marketing agency, you will realize that price because of the market rates and also the skill or experience of the person that the company wants to hire.
As regards the cost of hiring a marketing agency, the cost for senior-level staff is quite high and also the hourly rate is high also because of their level of experience.
Every single project billing relies on some factors such as skill sets, rates, etc.
If you are the person that is hiring the marketing agency, there are certain things you need to know so that you will not over estimate your price or spend unnecessary expenses when handling a little project.
For instance, when it comes to project billing, you can check out the average price that other people estimate when handling jobs that are related to your own.
This will help you to spend less even though you are new to hiring a marketing agency.
What you should know about the cost of hiring a marketing agency
Although when we discuss the cost of hiring a marketing agency, there is no exact answer to be given to this if it were to be asked as a question.
Perhaps, certain things help to determine the estimated cost of hiring every single marketing agency regardless of the brand, company, or the involved hiring individual.
These factors that help to determine the cost of hiring a marketing agency include the project billing, the hourly billing, the revolving charges, and lastly the managing budgets of that same project.
Having shown you these factors that usually determine the cost of hiring any marketing agency regardless of the marketing niche that is involved, we will take you through to explain further other things you are meant to know as regards the cost of hiring a marketing manager.
Hourly billing – What it means as regards hiring a marketing agency and why it mostly varies
First of all, we will like to start by telling you that hourly billing simply means what a company, individual, or any hiring agency will pay someone that is looking for a job in their agency on an hourly basis.
For instance, if you are a content writer, you can see a job with an hourly rate of about $25. This means that for every one hour you work for the company or the hiring agency, they will pay you $25.
If you worked for about six hours on a single project that was offered to you, it means that your pay will be $25 * 6.
Moreover, a lot of marketing agencies offers professional services and because of this, they prefer to pay their worker by the hour instead of the cost of completing the entire project.
If you are working on a large project, if you are to be paid per hour, it means that even if you were unable to finish the project probably in five hours, the same project will be handed over to another worker who can complete the remaining hours you were unable to work.
As you can see, there are lots of advantages to this method of hiring workers. This is why many big companies like paying their workers on an hourly basis.
Having gotten some info on why companies pay an hourly rate, we also want to let you know that geography can as well make a huge difference when it comes to the cost of hiring a marketing agency.
For instance, there may be a local competition over a project that people are handling in the marketing niche.
This will either increase the cost of hiring marketing agencies or even reduce the price that was meant to be paid to these marketers that are in search of a job.
As regards the geographical effect on hiring a marketing agency, the cost of hiring a marketing agency in Texas may be an average of $500 per hour, while the same job in other regions in the same country (in this case, the United States) can be $300 per hour.
What determines this change is quite big. For instance, the American Association of Advertising Agencies might have placed a standard; this standard also comes with a huge tax. So there is no way you can just change it.
This can be seen as the geographical effect of advertising as regards the marketing niche.
Depending on the marketing niche, the cost of hiring a marketing agency varies in smaller places or regions and can range from $50-$200 per hour.
Although this depends on several factors that we have discussed above. Also, it can depend on the service and the skill of the person supplying that service.
The price we stated here is just our own estimated price. So it can vary if the hiring company is well established or if they are just starting.
This average price makes hiring a marketing agency a bit easy since smaller agencies will be favored since they will get even senior-level staff involvement at an average rate.
Project rates – This mostly leaves the cost of hiring a marketing agency at a risk because of budget creep
Another factor that should be considered when it comes to hiring a marketing agency is the project rate.
From research and findings, we have come to realize that quoting the price of a whole project instead of pricing it per hour is quite challenging especially when the hiring marketing agency is assessing the cost to hire a marketing agency.
The reason for this is because of something called project creep.
To explain this to your understanding, let’s take for instance if a job a contract to design a website was mapped out but it was not planned at the initial stage to include a blog inside the website.
In this scenario, this can be an issue between the client that is handling the project and the hiring marketing agency that dishes out the job.
Perhaps, marketing agencies need to be accurate when estimating their jobs to avoid the issues of a client having misunderstandings with the marketing agency that projected the job. This will also help the staff that is handling the job to know how long it will take for him to deliver the project.
When this protocol is followed, it will make the processes that are involved in hiring a marketing agency easy.
For instance, if the hiring agency intends to make a profit in the long run, they need to ensure that the staff they hired or they will hire works efficiently while handling projects.
This procedure always helps both the hiring agency and the staff that is to handle the project.
Perhaps, if the procedure for the project that is to be handled is straightforward, the hiring agency will only need to pay just one flat fee.
This flat fee will reduce the cost of hiring a marketing agency and also it will make the whole process easy as well as simple.
This also favors small businesses especially when they are operating on a fixed marketing budget.
Howbeit, this method has some disadvantages when it comes to adjusting the flexibility of the cost of the project.
Because of some of the issues that may arise when hiring marketing agencies based on project rates, you must concentrate on the scope of the project when bidding for a new project.
Ensure that the project scope is specified at the initial stage and also you should elucidate what the agreed price will do while handling the project and also additional things that are optional that they can add in the future; while handling the project.
If the project that you are receiving as a client does not have a proper structure on what the agency needs, it is advisable that you create time to find out what exactly you are to do in the project.
This also helps to prevent the issue of misunderstanding that will arise while the project is ongoing.
From experience, we realized that every good marketing mostly requires an agreed partnership between the hiring agency and the client that is handling the project.
Dynamic changes – The digital marketing world is always changing, so ensure that your estimated cost is predictable
Because of how things revolve in this digital age, almost everything that concerns digital marketing is changing dynamically.
This also leads to the introduction of the new paradigm that can be seen in the billing world.
Perhaps, this dynamic change over time has many benefits to the clients that are handling projects for marketing agencies.
For instance, revolving billing mostly produces the best out of major projects in the world.
It also results in lots of advantages such as having a long-term client in an agency relationship.
This makes it possible for the cost of hiring a marketing agency to be straightforward and less stressful.
Hereunder, lots of agencies can even have diverse packages that will help them in hiring marketing agencies for their projects.
Perhaps, most of these packages that hiring agencies have will help them to be consistent as regards their monthly billing for their projects.
This is quite possible because they are not based on hourly rates for their clients. Also, they can be able to estimate the average cost for each client that is to handle their projects.
These dynamic changes also make it possible for clients to be able to estimate the exact cost they are paying for services that people are to handle for them.
How you can manage the cost of hiring a marketing manager
In this section, we will discuss some tips that will help you to reduce costs as regards hiring a marketing agency.
We discovered that keeping your estimate under your control is very beneficial, most especially for small or growing marketing agencies.
From research, we realized that certain tips should be considered when hiring a marketing agency so that you can be able to get the best value out of the clients you are to hire.
First of all, you need to match your company with an agency that is similar to that yours.
What we meant here is that by default, big organizations will surely charge more when compared to smaller organizations.
This is the first reason why you need to choose a marketing agency that is similar to that of your business in terms of size and business goals.
When you can match your agency with another of the same range, you will be able to estimate a reasonable range for your projects.
Also, your agency will have a solid understanding of the current company status as regards goals, the challenges you are facing at that moment, etc.
Also, ensure that you have a clear conversation with your marketing agency as regards the project billing and also the limitations or challenges that may incur in the cost of handling that project.
We observed that in most cases, this may result in the agency not spending the exact money they budgeted for their services.
On the other hand, it helps them to know what they have to spend when it comes to handling a project.
We discussed how the cost of hiring marketing can depend on some factors which include the size of the hiring company, its reputation, its scope of work, and even geographic location.