Important Elements Of An Agency Social Media Proposal – Part 4 of 5 – Pricing/Terms

Nothing like getting down to the meat and potatoes of a social media proposal, right? This post on social media pricing and terms represent one of the two most important parts of this series. Duh right? Maybe not so clearly obvious…

There are reasons and details of these two parts of your social media proposal that make it extremely important, but not the reasons you are most likely thinking. Since we spent years as a social media agency before becoming a social media software company, we learned some things about client projects that I intend on passing along to you today. The items we will be sharing today are some of the most important tips for a small or mid-sized social media marketing agency.

I do not intend on giving advice about pricing in this post. If you are doing social media marketing for clients, you should already have a good idea of the costs and margins you need to work from, as well as what the market can bear. The size of your client, their market focus geographically and demographically, as well as the number of networks and activity levels required to make their program effective are considerations you need to take into account. So we will leave actual pricing models up to you to establish for your business.

Having said that, the other side of your pricing model and terms are how and when you receive payment. Again, our experience in this space enables us to share with you some suggestions that will help you sign and maintain your client accounts over the long term. The three main issue that you need to take a serious look at are:

1) Program Length

Always sign your clients to a 6 month program with you. Always! There are a few specific reasons why this will be very advantageous for you.

a) New social media programs take at least 3-6 months to begin getting traction and results. You need a commitment to enough time to get the program setup, build a community and make needed changes based on what you see on the ground. Six months gives you the time to make the program effective.

b) It allows you to focus on the clients project without worrying about loosing the account. If you are concerned the client might fire you, you tend to not do social media marketing properly and attempt shortcuts that will lead to disaster anyway.

c) It gives the client a sense of not being locked in and makes the decision to get started easier. They understand their committed investment amount for six months and know they have an out if is not effective.

d) If gives you are point in the client relationship to get a price bump. Don’t underestimate this scenario. We all know the amount of time and effort social media requires when done properly. Once you have their program established and getting results, the last thing they want is for it to stop. Or worse that they would have to take it over themselves.

At the six month point of a client social media campaign, you have the ability to resign them with additional components and/or at additional costs. If you have done your job properly, the six month agreement gives you an easy way to get theat accomplished.

2) Payment Frequency Terms

We always made clients pay monthly for their programs with us. The following are the reasons we found this to be extremely beneficial and we highly recommend you follow this model for your agreements.

a) It lightens their financial burden and spreads it across a six month period

b) It also provides a monthly touch point for connecting back with the client

c) Provides an opportunity for feedback, input and additional information about their business

3) Payment Type Terms

I can’t stress this category enough. You MUST take payment from your clients via credit card or recurring PayPal payment. Here are the main reasons we found this to be incredibly beneficial:

a) Your time is valuable. Spending time chasing payments from clients will kill you and your cash flow

b) Never worry about getting paid and paid on time

c) You control running the payment transactions instead of relying on your client to remember or do it

Don’t have a merchant account? Get one! Don’t have a PayPal Pro account? Get one! Neither of those work for you and your situation? Look into Square , a smart phone credit card processing tool that is cost effective and easy for approval. This is a must for your agency, so bite the bullet and get it done.

4) Client Involvement Terms

You need to ensure that your client has some involvement in their daily social media marketing efforts. You are not in their place of business everyday and therefore are not privy to the daily happenings within the company that needs to be shared. Be sure you get a committment level from your client to provide daily/weekly photos, updates, information and videos that you can use to do two things in their program:

a) deliver fresh content about the company that is not necessarily pitching their product/service

b) make the company more human and thus more easily engaging and approachable by your target audience.

Getting the client’s buy in to provide this information is a must within your social media marketing proposal/agreement.

The last post in our series will be an actual Word doc template social media proposal that you can download, edit and use for your company. Part 5 of our series will post next week.

Robert M. Caruso
@fondalo
Founder/CEO – Bundle Post

19 Comments

Filed under Social Aggregation, Social content management, Social Media, Social Media Content, Social Media Management, Social Media Marketing, Strategy, Uncategorized

19 responses to “Important Elements Of An Agency Social Media Proposal – Part 4 of 5 – Pricing/Terms

  1. Grace

    This is just gold! God bless! :)

  2. Great post Robert. You nailed a lot of the practices we use at Socially Ahead with our clients as well as provided some great ideas to implement. Keep up the good work!!

    Lynn Cooper
    http://www.twitter.com/sociallyahead

  3. Robert,
    Thanks for this invaluable information! We just started Media Flair and some things regarding the business are still new to us. This series is very helpful!
    Matt Slusher

  4. Margi Kenny

    I am enjoying your articles more and more. You share such pertinent information. Thank you.
    Margi Kenny

  5. Pingback: Important Elements Of An Agency Social Media Proposal – Part 3 of 5 – What To Include | bundlepost

  6. Pingback: Important Elements Of An Agency Social Media Proposal – Part 2 of 5 – The Commitment | bundlepost

  7. Pingback: Important Elements Of An Agency Social Media Proposal – Part 1 of 5 – The Meeting | bundlepost

  8. Thank you Thank you. I am a Social Network Manager and Community Manager and this is the jump-start I needed to finally charge what I am worth! No more freebies because of lack of a concrete proposal! I’ll let you know how it works out ;)

    Rebecca/BeccasBiz

  9. Pingback: Important Elements Of An Agency Social Media Proposal – Part 5 The Template | bundlepost

  10. Tony O.

    God bless Caruso!
    As a start up follwn ur posts, i’m intrstd in ur case study pricing model? tink i scared off 2 new clients. trojantee@yahoo.com. Tanks.

  11. Nicholas L

    Thanks for sharing Caruso! This is a very good blog. I’m proposing something to a client of mine on Monday and your notes are helpful to say the least. Would you be able to email to me the WORD Doc template as I don’t see part 5 of 5. I’d like it too if you could send me more info on BundlePost and how it can help me serve my future clients better. I’m pitching to 3 potential clients next week and need all the help you can give.
    Thanks in advance!

    Nic

  12. Bhavnesh

    Exellent piece of information. Definitely helpful for starters. Quite nicely composed getting into details of the art of pitching a prospective client.
    Thanks,
    Bhavnesh

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s