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How Agencies Price Their Work - FiredUp! Podcast

FiredUp! - The Startup Marketing Podcast

How Agencies Price Their Work

Jul 18, 2024

Firebrand

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.

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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!

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    Original source: https://www.firebrand.marketing/podcast/how-agencies-price-their-work

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