{"id":7384,"date":"2025-02-07T12:40:56","date_gmt":"2025-02-07T12:40:56","guid":{"rendered":"https:\/\/resourceguruapp.com\/blog\/?p=7384"},"modified":"2025-02-07T12:45:02","modified_gmt":"2025-02-07T12:45:02","slug":"agency-pricing","status":"publish","type":"post","link":"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-pricing","title":{"rendered":"Agency pricing guide (including 9 agency pricing models)"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/adage.com\/article\/agency-news\/brands-rethink-agency-compensation-models-wfa-and-mediasense-survey\/2591876\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">a recent AdAge article<\/span><\/a><span style=\"font-weight: 400;\">, 75% of multinational brands will seek pricing changes with their agencies in the next three years. <\/span><span style=\"font-weight: 400;\">Of course, agencies are no strangers to change. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The great resignation, the growing omnipresence of AI, and other challenging economic factors are a given in this line of work. But, the challenge of a client asking for different pricing\u2014if you\u2019re not prepared\u2014can really send shockwaves through your business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The AdAge report makes it clear that agency clients will inevitably come asking for shake ups in pricing. It seems the real question isn\u2019t <\/span><i><span style=\"font-weight: 400;\">why<\/span><\/i><span style=\"font-weight: 400;\"> you should re-evaluate your <\/span><span style=\"font-weight: 400;\">agency pricing<\/span><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s <\/span><i><span style=\"font-weight: 400;\">how<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, in preparation for potential pricing pivots, we\u2019ve outlined <a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-pricing#9-of-the-best-agency-pricing-models\">nine options<\/a> to consider when pricing up your future agency services.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article \ud83d\udcd6<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-pricing\/#Our-pricing-expert-line-up\" >Our pricing expert line-up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-pricing\/#Agency-pricing-terminology\" >Agency pricing terminology\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-pricing\/#How-to-select-your-agency-pricing-model\" >How to select your agency pricing model\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-pricing\/#9-of-the-best-agency-pricing-models\" >9 of the best agency pricing models<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-pricing\/#The-impact-of-a-smart-agency-pricing-model\" >The impact of a smart agency pricing model<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Our-pricing-expert-line-up\"><\/span><span style=\"font-weight: 400;\">Our pricing expert line-up<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To get the inside scoop on the topic, we consulted Founder of <\/span><a href=\"https:\/\/www.thelaneagency.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Lane Media<\/span><\/a><span style=\"font-weight: 400;\">\u2014a growth-focused creative and media agency\u2014<\/span><a href=\"https:\/\/www.linkedin.com\/in\/barryfearn\/?originalSubdomain=uk\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Barry Fearne<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We also spoke with <\/span><a href=\"https:\/\/www.linkedin.com\/in\/sinead-goggin\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Sinead Goggin<\/span><\/a><span style=\"font-weight: 400;\">, Senior Partner Development Manager at <\/span><a href=\"https:\/\/www.hubspot.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HubSpot<\/span><\/a><span style=\"font-weight: 400;\">. She\u2019s spent the best part of the last decade working with agencies to grow their revenue and help them thrive in an uncertain ecosystem.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You\u2019ll find details about the <\/span><span style=\"font-weight: 400;\">agency pricing models<\/span><span style=\"font-weight: 400;\"> they recommend, and their expert analysis.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Agency-pricing-terminology\"><\/span><span style=\"font-weight: 400;\">Agency pricing terminology\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before we dive into the agency models, we want to touch on some terminology.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may have come across different terms when reading about agency pricing. Although the language and meanings are similar, there are nuances.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, we\u2019ve defined them below, and provided agency pricing examples for each.<\/span><\/p>\n<div class=\"ntb_table_wrapper ninja_table_builder_instance_0\"\n     id='ninja_table_builder_7405'\n     data-ninja_table_builder_instance=\"ninja_table_builder_instance_0\"\n     style=\"\n     max-height:2000px;\n     max-width: 1160px;\">\n     <table id=\"ntb_table\" role=\"table\" class=\"table ninja_tables_builder_class_7405 ntb_7405\" style=\"margin: 0px auto; table-layout: fixed; border-collapse: collapse; border: 0px solid rgb(0, 0, 0); font-family: inherit; border-spacing: 0px;\"> <tbody class=\"tbody\"><tr id=\"tr_id_9964720\" class=\"desktop-view tr_class_9964720 \" style=\"background: rgb(221, 221, 221);\"> <td id=\"td_id_96297062\" rowspan=\"1\" colspan=\"1\" class=\"td_class_96297062 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"2\"><div id=\"td_id_96297062\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item placeholder mce-content-body\" id=\"mce_72\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 0.4; line-height: 1.2;\" spellcheck=\"false\"><br data-mce-bogus=\"1\"><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_47341434\" rowspan=\"1\" colspan=\"1\" class=\"td_class_47341434 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"3\"><div id=\"td_id_47341434\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_73\" spellcheck=\"false\"><span id=\"docs-internal-guid-962f38f4-7fff-7c16-7176-0f23ace75ebd\"><span style=\"font-size: 11pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">Definition<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_57408192\" rowspan=\"1\" colspan=\"1\" class=\"td_class_57408192 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"4\"><div id=\"td_id_57408192\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_74\" spellcheck=\"false\"><span id=\"docs-internal-guid-ba44c03b-7fff-9464-73c6-f864a64f36f8\"><span style=\"font-size: 11pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">Example<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><\/tr><tr id=\"tr_id_6661708\" class=\"desktop-view tr_class_6661708 \" style=\"background: rgb(255, 255, 255);\"> <td id=\"td_id_45815462\" rowspan=\"1\" colspan=\"1\" class=\"td_class_45815462 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"6\"><div id=\"td_id_45815462\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_75\" spellcheck=\"false\"><span id=\"docs-internal-guid-984e377e-7fff-c713-af01-214d4ea58cf8\"><span style=\"font-size: 11pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">Agency pricing strategy<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_44304594\" rowspan=\"1\" colspan=\"1\" class=\"td_class_44304594 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"7\"><div id=\"td_id_44304594\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_76\" spellcheck=\"false\"><span id=\"docs-internal-guid-c6786908-7fff-0c27-dcfe-2c65563203a8\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">A <\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">wider view and approach<\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\"> that focuses on how pricing decisions should be made, aligned with business goals<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_91095467\" rowspan=\"1\" colspan=\"1\" class=\"td_class_91095467 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"8\"><div id=\"td_id_91095467\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_77\" spellcheck=\"false\"><span id=\"docs-internal-guid-2065c10a-7fff-2ad7-de6b-95d357eda729\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">\u201cOur business needs a steady stream of income to hit our annual growth targets, and we want to get paid to gain ongoing experience in the restaurant sector\u201d<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><\/tr><tr id=\"tr_id_7509566\" class=\"desktop-view tr_class_7509566 \" style=\"background: rgb(255, 255, 255);\"> <td id=\"td_id_74201165\" rowspan=\"1\" colspan=\"1\" class=\"td_class_74201165 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"10\"><div id=\"td_id_74201165\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_78\" spellcheck=\"false\"><span id=\"docs-internal-guid-d9ae2129-7fff-e561-7dc5-e947f74a625a\"><span style=\"font-size: 11pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">Agency pricing model<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_98093262\" rowspan=\"1\" colspan=\"1\" class=\"td_class_98093262 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"11\"><div id=\"td_id_98093262\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_79\" spellcheck=\"false\"><span id=\"docs-internal-guid-634d4751-7fff-4a16-4772-d004e25bc772\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">A <\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">specific pricing framework or structure<\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\"> an agency selects to influence how they charge clients<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_46893820\" rowspan=\"1\" colspan=\"1\" class=\"td_class_46893820 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"12\"><div id=\"td_id_46893820\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_80\" spellcheck=\"false\"><span id=\"docs-internal-guid-17bad325-7fff-f47b-733b-449d54fd6510\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">\"Our agency will use an ongoing retainer-based pricing model for technical SEO services for our restaurant client\u201d<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><\/tr><tr id=\"tr_id_1054105\" class=\"desktop-view tr_class_1054105 \" style=\"background: rgb(255, 255, 255);\"> <td id=\"td_id_24725559\" rowspan=\"1\" colspan=\"1\" class=\"td_class_24725559 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"14\"><div id=\"td_id_24725559\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_81\" spellcheck=\"false\"><span id=\"docs-internal-guid-37f1fc4c-7fff-01a9-13e4-17ce0abda30b\"><span style=\"font-size: 11pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">Agency pricing<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_80739689\" rowspan=\"1\" colspan=\"1\" class=\"td_class_80739689 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"15\"><div id=\"td_id_80739689\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_82\" spellcheck=\"false\"><span style=\"font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; white-space-collapse: preserve; background-color: transparent; font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; vertical-align: baseline;\">The <\/span><span style=\"font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; white-space-collapse: preserve; background-color: transparent; font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; font-weight: bold; vertical-align: baseline;\">actual rates or fees<\/span><span style=\"font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; white-space-collapse: preserve; background-color: transparent; font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; vertical-align: baseline;\"> an agency charges for its services (a monetary amount)<\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_39203685\" rowspan=\"1\" colspan=\"1\" class=\"td_class_39203685 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"16\"><div id=\"td_id_39203685\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_83\" spellcheck=\"false\"><span id=\"docs-internal-guid-d6079a75-7fff-12ff-1625-b040f1f23037\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">\"Our SEO agency charges our restaurant client $4,500\/month for technical SEO\u201d<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><\/tr><tr id=\"tr_id_1326704\" class=\"desktop-view tr_class_1326704 \" style=\"background: rgb(255, 255, 255);\"> <td id=\"td_id_18966908\" rowspan=\"1\" colspan=\"1\" class=\"td_class_18966908 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"18\"><div id=\"td_id_18966908\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_84\" spellcheck=\"false\"><span id=\"docs-internal-guid-31f08628-7fff-23b9-48a2-574cec4f4a8d\"><span style=\"font-size: 11pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">Agency compensation<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_61704200\" rowspan=\"1\" colspan=\"1\" class=\"td_class_61704200 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"19\"><div id=\"td_id_61704200\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_85\" spellcheck=\"false\"><span id=\"docs-internal-guid-ccc5b027-7fff-868e-0e74-f5bd50a9ae5d\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">What the agency <\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">actually earns.<\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\"> This is <\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">only monetary<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_89239940\" rowspan=\"1\" colspan=\"1\" class=\"td_class_89239940 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"20\"><div id=\"td_id_89239940\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_86\" spellcheck=\"false\"><span id=\"docs-internal-guid-9632df0b-7fff-3085-7d94-49c04974ed93\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">\u201cOur SEO agency worked 12 months on a retainer basis, which totalled $54,000 annual compensation\u201d<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><\/tr><tr id=\"tr_id_6330399\" class=\"desktop-view tr_class_6330399 \" style=\"background: rgb(255, 255, 255);\"> <td id=\"td_id_79228851\" rowspan=\"1\" colspan=\"1\" class=\"td_class_79228851 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"22\"><div id=\"td_id_79228851\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_87\" spellcheck=\"false\"><span id=\"docs-internal-guid-c0912856-7fff-40be-16b0-90fc4b42f098\"><span style=\"font-size: 11pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">Agency remuneration<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_66805874\" rowspan=\"1\" colspan=\"1\" class=\"td_class_66805874 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"23\"><div id=\"td_id_66805874\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_88\" spellcheck=\"false\"><span id=\"docs-internal-guid-1852b72d-7fff-d077-f6bb-cfb146582a6b\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">What the agency <\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">actually earns<\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">. This can be <\/span><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">monetary and non-monetary<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><td id=\"td_id_36979881\" rowspan=\"1\" colspan=\"1\" class=\"td_class_36979881 table-data\" style=\"padding: 10px; max-width: 150px; min-width: 150px; border: 1px solid rgb(0, 0, 0);\" cellindex=\"24\"><div id=\"td_id_36979881\"><div class=\"single-item other-item\"><div class=\"ntb-datas-wrapper\" style=\"margin: 1px;\"><span data-v-98ff22f4=\"\" data-placeholder=\"Add New\" class=\"hover-item\" style=\"padding: 0px; font-weight: normal; font-style: normal; text-decoration: none; font-size: 15px; display: block; text-align: center; color: rgb(0, 0, 1); opacity: 1; line-height: 1.2;\" id=\"mce_89\" spellcheck=\"false\"><span id=\"docs-internal-guid-575e7c50-7fff-5424-c4d3-7742443bca8f\"><span style=\"font-size: 9pt; font-family: Montserrat, sans-serif; color: #000000; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;\">\u201cOur SEO agency worked 12 months on a retainer basis, which totalled $54,000 annual compensation. We also received free meals and a restaurant sector case study\u201d<\/span><\/span><\/span><\/div> <\/div><\/div><\/td><\/tr><\/tbody><\/table><\/div>\n\n<p><span style=\"font-weight: 400;\"><div class=\"callout callout--alert\"> <strong>Note<\/strong>: <\/span><span style=\"font-weight: 400;\">For the purpose of this article, we are focusing on agency models specifically.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/div><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-select-your-agency-pricing-model\"><\/span><span style=\"font-weight: 400;\">How to select your agency pricing model\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Just as there\u2019s no one right way to run an agency, there\u2019s no one-size-fits-all <\/span><span style=\"font-weight: 400;\">agency pricing model.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some factors to weigh up when deciding which model best suits your business:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The types of services you offer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The types of clients and sectors you work with<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The capacity you have to deliver services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your areas of expertise<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-growth\"><span style=\"font-weight: 400;\">agency\u2019s growth<\/span><\/a><span style=\"font-weight: 400;\"> strategy and goals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-kpis\"><span style=\"font-weight: 400;\">agency\u2019s general KPIs<\/span><\/a><span style=\"font-weight: 400;\"> and goals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your agency team size and <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-team-structure\"><span style=\"font-weight: 400;\">structure<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your sales approach<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Now, for the main event: an exploration of nine well-established pricing models, their practical applications, and their pros and cons.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"9-of-the-best-agency-pricing-models\"><\/span><span style=\"font-weight: 400;\">9 of the best <\/span><span style=\"font-weight: 400;\">agency pricing models<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The following <\/span><span style=\"font-weight: 400;\">agency pricing models<\/span><span style=\"font-weight: 400;\"> provide a structured way for you to determine how much to charge each client, and how to justify that expenditure.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As we\u2019ve said, it\u2019s important to consider which is best for your business specifically, so remember to keep your service specialties and niche in mind as you explore the models. We\u2019ll start with one you\u2019re probably already familiar with:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. The project-based <\/span><span style=\"font-weight: 400;\">agency pricing<\/span><span style=\"font-weight: 400;\"> model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: Agencies are hired for specific projects with clear start and end dates. This could include a brand overhaul, website development, or a campaign launch.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: It allows flexibility for both the agency and the client and can be ideal for one-off needs.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: Revenue is less predictable, and agencies must continually seek out new projects to sustain income to boost agency growth. This type of pricing model requires top notch <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-project-management\"><span style=\"font-weight: 400;\">agency project management<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-resource-guide\"><span style=\"font-weight: 400;\">resource management<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. The retainer-based <\/span><span style=\"font-weight: 400;\">agency pricing<\/span><span style=\"font-weight: 400;\"> model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: Clients pay the agency a fixed monthly fee for an ongoing relationship. The retainer typically covers a set number of hours or services per month.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: Provides predictable revenue and helps maintain long-term client relationships.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: Agencies must ensure they consistently deliver value and prevent <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/scope-creep\"><span style=\"font-weight: 400;\">scope creep<\/span><\/a><span style=\"font-weight: 400;\"> and gold plating, where clients demand more than what\u2019s covered by the retainer.<\/span><\/p>\n<div class=\"expert expert--image\"><div class=\"expert__text\"><p><b>Sinead explains the difference between selling projects and retainers.<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><i><span style=\"font-weight: 400;\">\u201cProjects have fewer decision makers. Processes and outcomes tend to be more tangible, leading to an easier, shorter sales cycle. <\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">On the flip side, service retainers can typically be anywhere from 12- to 36-month contract agreements where the agency becomes an integrated strategy and service delivery partner. The sales process takes longer here. <\/span><\/i><i><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/i><i><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/i><i><span style=\"font-weight: 400;\">To make that as efficient as possible, agencies should expect multiple solution proposal meetings, and add the time they take to their expected close date to avoid any surprises.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">By nailing down the included deliverables clearly, and communicating them in detail, they can swerve scope creep and get clients to sign on the dotted line a lot faster.\u201d<\/span><\/i><\/p>\n<\/div><div class=\"expert__author\"><div class=\"expert__author__image\"><img loading=\"lazy\" decoding=\"async\" width=\"105\" height=\"105\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-105x105.jpeg\" class=\"attachment-quote size-quote wp-post-image\" alt=\"Sinead Goggin headshot.\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-105x105.jpeg.webp 105w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-671x671.jpeg.webp 671w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-44x44.jpeg.webp 44w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-310x310.jpeg.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin.jpeg 693w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-105x105@2x.jpeg.webp 210w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-44x44@2x.jpeg.webp 88w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2025\/02\/Sinead-Goggin-310x310@2x.jpeg.webp 620w\" sizes=\"auto, (max-width: 105px) 100vw, 105px\" \/><\/div><div class=\"expert__author__text\"><p><a href=\"https:\/\/www.linkedin.com\/in\/sinead-goggin\">Follow Sinead on LinkedIn<\/a><\/p>\n<\/div><\/div><\/div>\n<h3><span style=\"font-weight: 400;\">3. The performance-based <\/span><span style=\"font-weight: 400;\">agency pricing model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: Agency compensation is tied to the performance and results of a campaign, such as leads generated, sales made, or ad clicks.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: Aligns the interests of both the client and agency, as both are incentivized by the same outcome.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: Agencies take on more risk because external factors (such as market conditions) can affect the campaign\u2019s success. This can make payment, and revenue, less predictable.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. The time-based <\/span><span style=\"font-weight: 400;\">agency pricing model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: Agencies charge clients based on the number of hours worked. Each team member has an hourly rate, and clients are billed for the time spent on their project.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: Transparent and easy to understand for clients, especially for work that involves many variables.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: It can disincentivize <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-efficiency\"><span style=\"font-weight: 400;\">agency efficiency<\/span><\/a><span style=\"font-weight: 400;\"> and innovation, as the focus shifts to time spent rather than results. It may also lead to disputes over billing and <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/time-management\/productivity-is-personal\"><span style=\"font-weight: 400;\">individual productivity<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><div class=\"callout callout--protip\"><\/span><\/p>\n<h4><strong>Want to take time-based pricing to the next level?<\/strong><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calculate your billable time and totals with our free <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/time-management\/billable-hours-calculator\"><span style=\"font-weight: 400;\">billable hours calculator<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Schedule resources by the hour using our specialist <\/span><a href=\"https:\/\/resourceguruapp.com\/industries\/agencies\"><span style=\"font-weight: 400;\">agency resource management tool<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track actual hours worked using <\/span><a href=\"https:\/\/resourceguruapp.com\/features\/timesheets\"><span style=\"font-weight: 400;\">agency timesheets software<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><\/div><\/span><\/p>\n<p><a href=\"https:\/\/bit.ly\/3JahPIJ\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6238 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/03\/Timesheets-CTA-V1-soar-to-new-heights-943x242.jpg\" alt=\"Click through to learn more about Resource Guru's timesheets.\" width=\"943\" height=\"242\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/03\/Timesheets-CTA-V1-soar-to-new-heights-943x242.jpg.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/03\/Timesheets-CTA-V1-soar-to-new-heights-1042x268.jpg.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/03\/Timesheets-CTA-V1-soar-to-new-heights-1536x395.jpg 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/03\/Timesheets-CTA-V1-soar-to-new-heights-310x80.jpg 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/03\/Timesheets-CTA-V1-soar-to-new-heights.jpg 1836w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/a><\/p>\n<h3><span style=\"font-weight: 400;\">5. The value-based <\/span><span style=\"font-weight: 400;\">agency pricing model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: In this model, the agency\u2019s fees are determined by the value the agency delivers to the client, rather than the time spent or the specific services provided. This often means higher fees for work that significantly impacts the client\u2019s business.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: Aligns pricing with the results and value created, which can lead to higher margins.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: It can be difficult to quantify &#8220;value,&#8221; and there may be disagreements about the tangible impact of the agency\u2019s work.<\/span><\/p>\n<div class=\"expert expert--image\"><div class=\"expert__text\"><p><b>Barry shares his thoughts on the complexities of a value-based model.<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cI like the theory, and am a big fan of the principle. But, in practice, from first-hand experience, you ultimately need willing buyers.\u00a0\u00a0<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Anecdotally, via other agency owners in the industry, the greatest success of value-based pricing is where client-side buyers have an urgent need.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">From a media agency perspective, we&#8217;re very aware of our role in our media channel recommendations reaching the desired target audience cost-effectively, but ultimately we aren\u2019t responsible for every step of a business or consumer action or transaction.\u00a0<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">This is the biggest challenge from a paid media perspective. Meaning, even if we do \u2018our job\u2019 we&#8217;re not ultimately in control of the final conversion.\u201d<\/span><\/i><\/p>\n<\/div><div class=\"expert__author\"><div class=\"expert__author__image\"><img loading=\"lazy\" decoding=\"async\" width=\"105\" height=\"105\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/09\/Barry-Fearn-Lane-Media-105x105.jpg\" class=\"attachment-quote size-quote wp-post-image\" alt=\"Barry Fearn, Managing Director at Lane Media\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/09\/Barry-Fearn-Lane-Media-105x105.jpg.webp 105w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/09\/Barry-Fearn-Lane-Media-44x44.jpg.webp 44w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/09\/Barry-Fearn-Lane-Media-310x311.jpg.webp 310w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/09\/Barry-Fearn-Lane-Media.jpg 331w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/09\/Barry-Fearn-Lane-Media-105x105@2x.jpg.webp 210w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2024\/09\/Barry-Fearn-Lane-Media-44x44@2x.jpg.webp 88w\" sizes=\"auto, (max-width: 105px) 100vw, 105px\" \/><\/div><div class=\"expert__author__text\"><p><a href=\"https:\/\/www.linkedin.com\/in\/barryfearn\/\">Follow Barry on LinkedIn<\/a><\/p>\n<\/div><\/div><\/div>\n<h3><span style=\"font-weight: 400;\">6. The commission-based<\/span><span style=\"font-weight: 400;\"> agency pricing model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: Agencies, especially in media buying, are paid a commission based on the media\/marketing spend or sales they manage for the client. For example, an agency might receive a percentage of the total budget spent on advertising.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: Can provide a steady income stream if the client has a significant budget, resources, or results potential.\u00a0<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: The revenue stream for this one can be less predictable and leaves the agency less in control. There are questions about transparency, as agencies may be incentivized to spend more rather than focusing on effectiveness (if they\u2019re paid a commission based on spend). If it\u2019s based on sales, it could leave the agency in a disadvantaged position if sales are down due to factors out of their control.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">7. The <\/span><span style=\"font-weight: 400;\">agency matrix pricing<\/span><span style=\"font-weight: 400;\"> model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: An agency&#8217;s fees are determined based on multiple factors such as services provided, resources allocated, performance metrics, and client requirements.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: A highly transparent pricing model that\u2019s data-backed and encourages trust from the client.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: Complex and administration heavy. There are many measurement and data analysis requirements to execute this model effectively.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">8. The subscription-based <\/span><span style=\"font-weight: 400;\">agency pricing model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: Clients subscribe to an agency\u2019s services in a similar way to how they would subscribe to a software product, paying a fixed fee in exchange for ongoing access to specific services or expertise (such as social media management or regular creative content).<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: Predictable, recurring revenue and stronger long-term client relationships.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: Scope management is critical, as clients may expect more than what\u2019s included in the subscription package.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">9. The hybrid <\/span><span style=\"font-weight: 400;\">agency pricing model<\/span><\/h3>\n<p><b>Description<\/b><span style=\"font-weight: 400;\">: This model combines elements of multiple <\/span><span style=\"font-weight: 400;\">agency pricing<\/span><span style=\"font-weight: 400;\"> models, such as a base retainer with performance incentives, or project-based work supplemented by hourly billing.<\/span><\/p>\n<p><b>Advantages<\/b><span style=\"font-weight: 400;\">: Provides flexibility to meet different client needs and can smooth revenue streams.<\/span><\/p>\n<p><b>Challenges<\/b><span style=\"font-weight: 400;\">: Can be complex to manage, requiring clear agreements to avoid misunderstandings around compensation.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The-impact-of-a-smart-agency-pricing-model\"><\/span><span style=\"font-weight: 400;\">The impact of a smart <\/span><span style=\"font-weight: 400;\">agency pricing<\/span><span style=\"font-weight: 400;\"> model<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Your <\/span><span style=\"font-weight: 400;\">agency pricing<\/span><span style=\"font-weight: 400;\"> model is one of the most significant levers you can pull to improve your <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-margins\"><span style=\"font-weight: 400;\">agency profit margins<\/span><\/a><span style=\"font-weight: 400;\">. A suitable model for both you and your clients should mean more <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/agencies\/agency-revenue\"><span style=\"font-weight: 400;\">agency revenue<\/span><\/a><span style=\"font-weight: 400;\">, and not at the expense of extra effort or resources.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You might not strike gold with the first model you implement on a new client contract, but exploring the different options means you\u2019ll find the best fit for your agency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you develop a game plan for your pricing, you may be looking for additional ways to bolster agency revenue. For a deep dive into more tactics to explore, get your free guide on the subject here:\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/bit.ly\/3X6lT4Q\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2023\/10\/Blog-banner-1-943x242.jpg\" alt=\"A rectangle shaped banner in purple featuring a 3D book cover with a prompt to download an eBook about resource planning for agencies.\" width=\"943\" height=\"242\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a recent AdAge article, 75% of multinational brands will seek pricing changes with their agencies in the next three years. Of course, agencies are no strangers to change. The great resignation, the growing omnipresence&hellip;<\/p>\n","protected":false},"author":36,"featured_media":7385,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[55],"tags":[],"class_list":["post-7384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agencies"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Agency pricing guide (including 9 agency pricing models)<\/title>\n<meta name=\"description\" content=\"Explore which agency pricing model best fits your clients and business, to ultimately drive revenue.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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