-
How much should we charge?
Hello,
We are a digital marketing agency that has a relatively nice number of clients. Our niche is in hotels. We manage lots of hotels in Europe that are really famous. Right now, we are doing performance marketing for one hotel in Italy, and this month we have a budget of 15K in ads. The current spend this month is 5500€ with a crazy return on ad spend (ROAS) of almost 15.5, and they have generated 105,000€ till now.
We are charging 15% of ad spend, and we think that this is not the right amount that we should charge. We also do social media management for them, and our fee is 4000€ per month. We arrange lots of influencers, and we create and make lots of viral content for the hotel.
We would like to know your opinions on what should be the right price to ask with this performance in performance marketing.
-
1 Reply
-
Hey there! First off, congrats on rocking it with your performance marketing for the hotel in Greece! A 15.5 ROAS is seriously impressive. It’s like hitting the jackpot.
Now, onto the million-dollar question: what’s the right price to ask for your performance marketing services? Well, with the stellar results you’re delivering, it’s clear your expertise is worth its weight in gold.
Considering the current ad spend of 5500€ and the jaw-dropping return of 105,000€, it’s safe to say you’re driving some serious revenue for your client. While your 15% ad spend fee is standard, given the exceptional results, you might want to consider adjusting it slightly upwards.
Factor in the additional value you’re bringing through social media management, influencer collaborations, and viral content creation—those are invaluable assets that contribute to the hotel’s brand and revenue growth.
So, my advice? Crunch the numbers, evaluate the market rates, but don’t undervalue your expertise and the stellar results you’re delivering. You’re not just running ads; you’re orchestrating a symphony of success for your client’s business. Consider charging 5k monthly retainer. Then, an additional commission on top of the 15% if the ads perform really well. Keep up the fantastic work!
-
Can you do performance based + fee? Ie. $4k plus 1-20% of ROI?
-
You can make this success as a use case on your website, lead-magnet for other businesses (hotels) where you can charge more. Describe few interesting ways how you got them promoted, show to other potential customers that you can generate tremendous value and return on investment.
-
Consider increasing your monthly management fee to reflect the value you’re providing and negotiate a more competitive percentage of ad spend.
Log in to reply.