Setting a justifiable price for your social media services can feel overwhelming, whether you’re a recently established social media marketing agency or a long-standing one. Determining social media marketing pricing can pose challenges.

Whether you’re a social media marketer or a customer looking for an agency, if you find yourself nodding along, there’s no need to worry. We’ve compiled a comprehensive guide to assist you in setting the correct prices for social media services.

We’ll walk you through various pricing models and strategies and provide tips for structuring your pricing based on the specific services you provide.

social media marketing pricing

Is the Pricing for Social Media Marketing Adequate?

The costs of social media management can vary considerably. Factors such as your business’s size, the breadth of your tasks, and your level of expertise influence it. You can expect to pay around $12,300 monthly for these services.

Practitioners new to freelance social media management might find it reasonable, to begin with pricing on the lower side. On the other hand, if you’re someone with a track record of accomplishments in social media marketing, you could set up social media marketing pricing packages based on your level of expertise.

Pricing Based on Services Offered

If you’re looking for an agency to help you with your social media marketing needs but are unsure what the set price should be for such services, consider the following:

  • Assess the agency’s proficiency and background in social media
  • Evaluate the extent of content creation tasks you require
  • Establish a range that aligns with your perception of fairness
  • Factor in the company’s scale (each business operates with a distinct marketing budget)

The established social media marketing pricing plans must reflect the agency’s expertise, experience, and complexity of the tasks.

Managing a handful of social media platforms, like Twitter, Facebook, YouTube, Instagram, etc., varies from strategizing to implementing extensive, ongoing social media campaigns. Hence, it’s crucial to contemplate the nature of your social media management services before finalizing your pricing.

Pricing Strategies and Models for Social Media Management

If you’re an agency owner figuring out the right way to price your social media marketing services, consider the following pricing models: 

Cost-based pricing

This model is among the most straightforward strategies for social media marketing services pricing. To ensure a profit, you must generate sales that exceed your expenses. In basic terms, the agency owner computes the costs of the services and then includes a percentage (gain) on top of that amount. It gives you the selling price.

It’s advantageous because it doesn’t require extensive research; it only entails adding your preferred profit margin to your costs. However, it’s disadvantageous because it doesn’t consider factors like competition or demand.  

Agencies that need more comprehensive insights into the client’s willingness to pay for the offered service often employ this pricing for social media marketing. Many utilize a cost-plus pricing model, increasing their costs by around 20% to 50% as a profit. In contrast, leading agencies often set significantly higher markups.

The primary drawback of cost-based pricing for agency owners is the potential to deter clients immediately. Why? Because clients could perceive the price as too steep.

Competition-based pricing 

Employing a competitive pricing strategy is intuitive for a social media management agency, as it involves utilizing rival pricing as a reference point. This approach can be executed through three avenues:

  • Establishing a price above that of competitors.
  • Fixing a price below that of competitors.
  • Adhering to the price ranges prevalent within the market.

While this social media marketing pricing strategy does involve significant research (even assuming competitor prices are publicly accessible), it remains relatively straightforward to implement. However, it comes with the caveat that prices are subject to change, necessitating ongoing adjustments. This lack of flexibility can limit your ability to experiment with other strategies.

Furthermore, if you opt for a competitive pricing approach and your agency operates as a low-cost provider, this competition-based pricing strategy could potentially hinder your potential for business growth and scalability.

On the other hand, aligning your social media marketing plans and pricing with your competitors introduces differentiation challenges. It raises the question, “What distinguishes my agency from others?” Additionally, a higher price point should always be accompanied by added value and a commitment to delivering higher-quality services.

Value-Based Pricing 

This pricing revolves around the value your agency delivers to clients through its products and services. This strategy hinges on how your customers perceive the value your agency offers, guiding the appropriate pricing for your social media management offerings.

You can capitalize on your agency’s reputation when establishing prices. External factors beyond your control can sway pricing decisions, such as negative publicity or dissatisfied customers. 

In value-based pricing, skillful negotiation is pivotal in securing optimal social media marketing package pricing. The advantage is that, unlike competition-based pricing, the value-based approach provides more room for flexibility.

Furthermore, you can bolster your agency’s perceived value through various endeavors, such as strategic marketing campaigns and earning accolades.

While it may sound straightforward, delving into value-based pricing requires careful consideration. There are several factors that most social media managers should weigh before adopting this pricing strategy.

You must comprehensively analyze the market and how your competitors influence the perceived value of similar services. This analysis will aid in determining the highest social media marketing services pricing a customer might be willing to pay. 

Remember that every client is unique, and every feedback received will ultimately contribute to achieving the most favorable outcome.

social media marketing pricing

Work With Clicta Digital for Equitable, Effective, and Justified Output

At Clicta Digital, we value our client’s trust above everything else. This dedication to data-driven results is our guide to consistently delivering above-par and cost-effective outputs. With us, you don’t have to worry about whether or not our services are priced equitably because we always justify our results. 

Before launching a campaign, we will discuss the social media marketing pricing and inclusions with you. Through this process, we can avoid surprises along the way. And with the output we deliver, you know you’re in good and expert hands. 

Call us today, and let’s jumpstart your social media marketing campaigns!