How Agencies Price Their Work

FiredUp! - The Startup Marketing Podcast

As a startup, understanding how an agency builds its pricing, will equip you with the understanding to set a scope of work more accurately, agree on a budget quickly, and help you be a better partner overall. That’s why this week episode 45 of the FiredUp! podcast is about how agencies price their work.

Download the Multiplier Marketing Megapack today. Exclusive offer for all our listeners — get all our Startup Guides in one go! Over 50 pages of advanced tips and advice that dive deep into content marketing, search advertising, and marketing attribution.

In this episode of the FiredUp! podcast, McLintic shares the pros and cons of the 3 main agency billing models: time-based, deliverables-based, and value-based, so that you can know where the agency is coming from and foster a successful partnership.

Morgan discusses:

• The most traditional and fading in popularity is time-based pricing which involves buying the time of the agency’s team members and billing clients based on hourly rates.
• Requiring a bit of upfront work to set expectations, deliverables-based pricing is a great model that focuses on buying a specific output or scope of work.
• In a more complex model, value-based pricing aligns the agency’s pricing with the value of the outcome they create for the client.
• Some agencies may also generate revenue from other sources such as IP and markups on third-party costs.

Thank you for listening! Tune in to all the episodes for practical tips on crushing your startup marketing goals. Don’t forget to follow, rate, and review the podcast, and tell us your key takeaways!

CONNECT WITH FIREBRAND:

Firebrand is a startup marketing agency. We help tech startups secure outsized marketing outcomes on their path to growth.

Facebook

LinkedIn

X (Formerly Twitter)

Work with Firebrand

How to Sell Value - Demystified by Crispin Manners (Amazon)

Send us a text

Chapter

1. How Agencies Price Their Work (00:00:00)

2. Billing models for agencies, including time-based, deliverables-based, and value-based. (00:03:11)

3. Pros and cons of time-based pricing models in marketing agencies. (00:07:13)

4. Pros and cons of deliverables-based pricing models. (00:14:28)

5. Pros and cons of value-based pricing models. (00:18:32)

6. Agencies may also generate revenue from IP, software, and markup on third-party costs. (00:22:43)