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How much should I charge my first client? [advice wanted]

Discussion in 'Business & Tax Advice' started by giraffewarrior, Oct 3, 2016.

  1. giraffewarrior

    giraffewarrior Registered Member

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    Hey guys,

    I'm looking to bring on a client into my new IM agency. They're a very large company that gross millions but are on a downward spiral. They are looking to hire my agency to better establish their brand online and do some reputation management.

    I have done some research and estimate that companies around me charge anywhere between 400-10000 + per month for these kinds of services. Kindof a large range.

    My rates are unlisted and I have never charged for these kinds of services before. What would you guys do in my situation? Should I match the price of competitors? Do more research? (if so, what kind?) What would you guys base your prices on? How much should I charge?

    Thanks!
     
  2. JazzJazzy

    JazzJazzy Junior Member

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    Only you know that. Isn't it YOUR agency? Just go with what feels right man.
     
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  3. BlackBDO

    BlackBDO Jr. VIP Jr. VIP

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    Make different packeges and let them chose. The more they pay the more you do for them.

    But let them understand they need quality and won't have results of they are cheap. But that's just what I would do.
     
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  4. knowing25

    knowing25 Elite Member

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    i'm not sure why there is some company want to be your client, if you dont know what to do with your agency.
     
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  5. Cratos

    Cratos Jr. VIP Jr. VIP Premium Member

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    Minimum 1k/month especially for a big company like that. For that one I would actually start at 3k. NEGOTIATE.
     
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  6. malamunja

    malamunja Jr. VIP Jr. VIP

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  7. manolo12399

    manolo12399 Senior Member

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    depends on the value you offer, and how much money can make from you, say you can bring x amount of leads for a value, in x months, you need to charge them accordingly, lets speak, 400 a month, you cannot go anywhere, 1000 is still cheap, is the average amount for a medium dentist, don't be scared to talk what you can fill are big money, if you can justify them, so you can invest the right and get paid at the same time, and don't work for 4$ an hour
     
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  8. Honest

    Honest Regular Member

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    They're desperate. If you can fix their problems they will pay you pretty much whatever it takes.

    What the guy said about different packages, absolutely. 3k minimum sounds about right too, I'd personally do 4k minimum due to the fact if they're willing to pay 3 they're likely willing to pay 4, but maybe not 5
     
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  9. TheNumbersGuy

    TheNumbersGuy Jr. VIP Jr. VIP

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    Figure out your costs and charge an appropriate margin on top of that (I'm not sure exactly what margins are typically charged in this industry but if it costs you $400/ month to run their campaign and a typical margin would be 40% then charge 400 X 1.40 = 560/month). Just make sure that you are actually calculating your total costs correctly - you also should not charge significantly less than your competitors as it would appear as though your product is inferior.
     
  10. nishanknx

    nishanknx Registered Member

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    1. It's your agency, you should be sure about what you need to charge them
    2. you already have a range of what companies charge so if you want to play safe you can charge on the starting are of the range, 400-1000
    However I recommend you to figure out your costs and also research what they were apying to whoever they were working with earlier.
    I would recommend charging 1k-3k and then negotiate from there if necessary
     
  11. judaculla

    judaculla Jr. VIP Jr. VIP

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    Give them options.

    $1k/mo
    $2.5k/mo
    $8k/mo
    ETC...

    Ask them what their goals are, draw up a plan on how to achieve them with projections for costs you'll incur (building a PBN, buying seo service 'gigs', and etc..) then add in an estimate of your time. Imagine what it'll cost you to do business with them, then add your percentage.

    An example: it'd cost you $1200 to help them rank #1-3 for three keywords they want to target. Charge them $3600 for a 200% markup.

    Just remember, no job is worth it if you're going to lose money on it (taking into consideration for future work by reputation of course)
     
  12. Frapcino

    Frapcino Junior Member

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    Dude if you feel that your not in disadvantage in that rate then accept it, the first 2-3 months will determine if you're break even. The charges should be appropriate in the of services and content you do. I think it could be 4 - 5 as well. That's my opinion.