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PRICING AND
PACKAGING INBOUND
MARKETING AND
HUBSPOT-RELATED
SERVICES
FREE GUIDE
18 October 2016
ABOUT THE AUTHOR
Daryn Smith is the co-founder and
director of MPULL, an inbound
marketing agency based in South
Africa. He is an entrepreneur at
heart and is always challenging
conventional and incumbent thinking.
Daryn, in essence a marketing
scientist, has qualifications in both
marketing and computer science.
He has combined these disciplines
to bring accountability and
measurability to the creative magic of
marketing.
Daryn Smith
CONTENTS Introduction
Chapter 1: Start with ‘why’
Chapter 2: Pricing models
Chapter 3: How much profit should you be making?
Chapter 4: How much to charge for your time
Chapter 5: Fixed deliverable packages
Chapter 6: Agile retainers
Chapter 7: How to plan sprints
Chapter 8: How much is this problem worth to you?
Chapter 9: Getting the confidence to charge and deliver
How Mpull can help you
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INTRODUCTION When my co-founder Graeme Wilson and I started MPULL, we set
out to create an agency that focused on the B2B segment of the
South African market.
We must have done something right, because despite the fact
that neither of us had any previous agency experience, MPULL
became a HubSpot Platinum Partner in just 11 lightning-fast
months. Needless to say, we learnt a huge amount along the way,
most of it through a process of (grey-hair-inducing) trial and error.
Graeme and I weren’t your typical agency owners.
Having both come from big corporates, we focused on building a
scalable business that didn’t need us for day-to-day operations.
It was important to us that we worked on the business, not in the
business.
Early on, we also decided that instead of using freelancers, we
were going to build our own team of in-house pros. We selected
our team members carefully and then spent countless hours
training each one. The result? A highly skilled team with a vast
amount of collective experience.
Of course, not everything was smooth sailing. Through the
process of setting up the agency, we almost shut down due to
incorrect pricing and packaging models that put pressure on our
cash flow.
​LEARN FROM OUR
MISTAKES
4
But, like they say: smooth seas don’t make skilled
sailors.
While we were ironing out the kinks in our pricing and packaging
model, agencies from around the world began to take notice
of the quality of the work we were doing, the impressive results
our clients were getting, and the speed at which our agency was
growing. They began reaching out and asking us for advice and
for help delivering their own clients’ work.
That’s when we decided to pivot our business to
focus on helping agencies grow.
We now do this by providing solutions to help with agencies’
supply requirements (by white labeling our services) and demand
solutions (by marketing their agency so they can focus on selling
and servicing clients), and through offering consulting services
(by sharing the knowledge we’ve gathered along the way).
In this guide, I share our most valuable insights into correctly
pricing and packaging inbound marketing and HubSpot-related
services.
5
CHAPTER 1:
START WITH ‘WHY’
EVERYTHING YOU
DO IN BUSINESS
STEMS FROM
YOUR ‘WHY’
Before we get into the nitty-gritty of building out your pricing
and packages, you need to ask yourself one very simple – but
incredibly important – question: Why did you start this agency? (Or,
if you’re an employee: Why are you an employee at this agency?)
Now, I know navel-gazing isn’t par for the course in the business
world. But if you spend a few minutes thinking about it, chances
are you have a very specific reason why you’re an agency owner
or employee.
This reason – your ‘why’ – will impact which services
you offer and how you price them.
For example, if you want to win awards and get recognition
for your creativity, you most likely need to offer above-the-
line services where you can create brilliant TV ads that don’t
necessarily generate any ROI.
Or maybe you’re a billionaire with a passion for helping others
attain success and wealth, so you’ve created an inbound
marketing agency to help your customers grow their businesses.
Making a profit out of your own agency, however, isn’t really a
priority.
If you’re a workaholic employee who doesn’t want to have a
personal life, then charging rock-bottom rates is a great way to
ensure that you and your colleagues have to work long, hard
hours just to cover your monthly expenses.
I highly recommend reading Simon Sinek’s book, Start With Why,
or watching his TED Talk, How great leaders inspire action, to
fully understanding why finding your ‘why’ is key to building a
successful business.
In addition, check out my other eBook, How to Differentiate Your
Agency, for more on the importance of properly positioning your
agency.
6
CHAPTER 2:
PRICING MODELS
Let’s start with a breakdown of the most common pricing models
available to agencies.
Media commission-based model
This is probably the oldest model around, and it’s still commonly
used by traditional above-the-line agencies. On this model, the
agency comes up with a creative concept based on a brief. They
usually don’t charge too much for this concept; they literally
charge for the hours it will take to produce the campaign, only
including a relatively small margin. The big bucks, however, are
in the commission the agency earns from booking media space
with media houses.
When I was client-side, I used to think that the media planners
working on my brand were making strategic decisions about
the media my company bought to get us maximum reach to
our target market. But when I later worked for a media house,
I realised that they offered incentives for booking media with
them. Surprise, surprise, it turns out that the media planners
always went with the best incentives, and not necessarily with
what was best for the brands they were representing.
Project-based model
This is the most prevalent model used by agencies. It usually
also works on media commissions as per the above model. On a
project-based model, whenever a brand needs something, they
brief their agency on the project.
This model presents problems for both brands and agencies.
From an agency’s perspective, using a project-based model
means you can’t plan ahead, because you have no way of
knowing what projects will be coming in over the next few
months.
7
Put HubSpot tracking code onto website
From a brand’s perspective, the pitfall of the project-based model
is that there’s no guarantee that the agency will have capacity
to execute an urgent piece of work when you really need it. In
addition, if the team that usually works on your brand is busy on a
different project, you run the risk of being assigned a wet-behind-
the-ears team that’s going to make costly amateur mistakes.
Cost-per-acquisition model
On this model, the brand only pays the agency for the leads or
customers the agency generates as a result of marketing.
From a brand’s point of view, this sounds like a pretty awesome
model. Because you only pay for marketing that results in actual
leads or customers, it really forces your agency to come up with
marketing that performs.
From an agency’s perspective, however, a cost-per-acquisition
model presents some serious problems.
Firstly, if you don’t control the sales team, you can’t be held
responsible for acquiring customers. We earned this insight the
hard way when we generated over 600 high quality leads for a
particular client, but because their sales team failed to follow up
on any of them, the end result was zero new customers.
Similarly, you can’t be held responsible for acquiring customers
if you don’t control the product. The bottom line is that no matter
how good your marketing is, if the product sucks, no one’s going
to buy it.
Lastly, working out how much you should charge per lead
or customer acquired requires doing some mind-bogglingly
complicated calculations. You’ll need more than a beautiful mind
to work out how to recover costs when your marketing strategy
deploys multiple tactics and has countless moving parts.
Retainer-based model
On a retainer-based model, a brand and agency enter into a
contract that specifies a fixed monthly cost, over a fixed period
of time. In return, the agency either needs to have a team ‘on
call’ and waiting for work, or is required to execute a fixed set of
deliverables each month.
Retainer-based models are great for agencies, because you
know exactly how much money will be coming in each month.
8
To correctly price and package your inbound marketing services,
you need to know exactly how much profit you want to make.
(And no, ‘as much as possible’ isn’t a good enough answer.)
A good profit margin for any agency is anything
above 30%.
If you’re not sure how much profit you should be making, you’re
not alone. HubSpot’s Agency Pricing & Financials Report reveals
that a whopping 61% of agencies have a profit margin that falls
below 30%. Worse, the report shows that 15% of agencies don’t
even know their margin. This means that only 24% of agencies
are making a 31% profit margin or more.
I’m going to be frank with you. Delivering quality inbound
marketing services is hard work. If you’re not making a decent
profit, it might make more sense for you to put your savings into
shares or some other financial vehicle and wait for the dividends
and interest to pay out. You’ll save yourself a lot of sweat, blood,
and tears.
YOUR PROFIT MARGIN’S
SWEET SPOT? 30%
CHAPTER 3:
HOW MUCH PROFIT
SHOULD YOU BE
MAKING?
9
If you’re set on making a success of your agency, however, hitting
the right profit margin is essential.
The right profit margin is key to a healthy cash flow.
There’s a delicate balancing act that anyone who’s started a
business from scratch is intimately familiar with. Starting an
agency with no clients and a new bank account means that you
need to receive income from work done before you can pay for
expenses incurred. This, in a nutshell, is the challenge of cash
flow. Add employees, landlords, and other monthly overheads to
the mix, and you’ll soon see why entrepreneurs’ LinkedIn profiles
list ‘financial tightrope walker’ under skills and experience. (And if
they don’t, they should.)
Unfortunately, so many agencies – we were almost one of
them – fall prey to cash flow problems.
In the HubSpot report referenced above, 10% of agencies are
only making a 6-10% profit margin. Let’s do a little experiment
to see what the reality of that looks like. We asked how long it
would take an agency with a 7% profit margin to get enough
money in their bank account to cover just one month’s expenses
in advance.
To answer this question, our Financial Manager put together
some crazy spreadsheets based on the average size of retainers
and so on referenced in the Agency Pricing & Financials Report.
The answer? 14 months.
This means that if your margin is hovering around the 7% mark,
for well over a year you are going to be under immense stress
at every month end, while you desperately chase clients for
payment just to stay afloat.
Do the same calculations when you’re making a 30% margin,
however, and you’re cash flush in just two months.
Business best practice dictates that a healthy agency should
have three months’ cash flow sitting in reserves for a rainy day.
If your pricing reflects the correct profit margin, you can achieve
this in just six months.
10
CHAPTER 4:
HOW MUCH TO CHARGE
FOR YOUR TIME
THE VALUE YOU CREATE
IS NOT BASED ON HOW
LONG IT TAKES YOU TO
DO SOMETHING
We started our agency around a dining room table. Back then,
we had minimal expenses. We didn’t pull salaries either; we were
going to give this entrepreneurial thing a bash and needed our
savings to fund the first few months’ cash flow.
When we had to present our first proposal, we put together
a costing by simply adding our expenses together and then
tacking on a bit of a margin. That costing, and several more that
followed, was $700 a month, and the list of deliverables was
huge. We hadn’t factored in the high cost of producing content,
and from the beginning we were running at a loss.
Things only escalated from there. Soon we needed employees
to help us. We couldn’t have the employees working from our
homes, so suddenly we needed an office space and things like
laptops, phones, and coffee machines. Next thing, the employees
wanted beer and pizza on Fridays! Overnight, we were up to our
necks in expenses.
Working out your hourly rate from scratch can be a
minefield.
You might think that working out an hourly rate is simple, but
it isn’t. There’s more to it than just taking all your current and
projected future costs, grouping them into fixed and variable,
and then working out an hourly rate. Trust me, I’ve been down
this rabbit hole many times, and every time I’ve ended up with a
spreadsheet so complicated, I couldn’t even read it myself.
One of the biggest problems is that there are just too many
variables. What if a staff member goes on maternity leave? What
if a laptop is stolen and you need to replace it?
11
Successful agencies that are way beyond start-up mode have
reams of historic data to base their hourly rate on. Some of
these agencies took part in the research that led to HubSpot’s
Agency Pricing & Financials Report. The report says that the
average blended hourly rate for an agency is $125 to $150. Take
my advice: skip the complicated spreadsheets and use this as a
guideline for what your agency should be charging per hour.
Use value-based pricing.
If you charge an hourly rate for every person on your team,
the most money you can ever make is limited to how many
productive hours your team can churn out, multiplied by the
hourly rate.
Some agencies refer to themselves as being in the ‘slave trade’.
As cringeworthy as it is, the idea can be used to illustrate a useful
point.
Some slaves are more efficient than others. If Slave A gets more
done in an hour than Slave B does, should you charge Slave A
out at a higher rate? Or imagine both slaves are equally skilled
and speedy, but you put them onto different tasks. Slave A is in
charge of growing vegetables, while Slave B just tends the flower
beds. If vegetables are more valuable to your client than flowers,
should you charge more for Slave A’s services than you do for
Slave B’s? Value-based pricing solves these problems.
The premise of value-based pricing is that the value
you create is not based on how long it takes you to
do something.
To solve the challenge of charging for value, we use a very
simple formula:
Cost = Time it will take to complete a task multiplied
by the value it will deliver.
We’ve assigned a multiplier to the three levels of value:
1 = low value
1.5 = medium value
2 = high value
This means that for a low value task, we only charge a client for
the time it takes us to complete it. But for something that adds
huge value, we charge double the time it takes us.
Always budget according to the B-players principle.
So, how do you work out how long it will take someone to
complete a task? As an agency owner or senior agency
employee, you’re probably an ‘A-player’. This means that you’re
effective and efficient.
As an A-player, you might assign the following time slots to the
following tasks:
COST = TIME X VALUE
1 = low value
1.5 = medium value
2 = high value
12
But let’s face it: there are very few A-players in the world, and
every agency is going to end up with at least a few ‘B-players’ on
staff.
B-players aren’t as effective or efficient as A-players. Maybe it’s
their first job and they’re still learning the ropes. Maybe they’re
anxious and they’re always triple-checking everything they do. Or
maybe they’re just, well, a little slow.
B-players need more time to complete the same tasks:
Assign time to tasks according to the B-players
principle.
When you sit down to work out how much time you need to
account for X or Y, make sure you work according to B-player
timing. Even if you can write and post a social media update in 15
minutes, your costing needs to allow for 25 minutes.
Task
15 minutes
1 hour
Time
Write a social media update and post it
Build a landing page in HubSpot
Task
25 minutes
1.5 hour
Time
Write a social media update and post it
Build a landing page in HubSpot
13
Many inbound marketing agencies sell fixed deliverable
packages to their clients, and these packages often go by the
names of fast, faster and fastest. For each package, there is a
certain amount of work that needs to be delivered each month.
The agency is contracted to deliver these services every month,
usually for 12 months.
Here’s an example of three fixed deliverable packages an
agency might offer:
4 X 1500
words
1
1
4
2 accounts
1
1
12
4 4 6
1 account
1 step
1 hour per
week
Content Offers and Content Promotion
Social Media
Templates
Email Marketing
eBooks i n 12 months incl design and
Landing Pages, forms
Social Media Posts
Custom Landing Page Template
Launch Emails in 12 months
Social Selling Posts on Linkedin
Custom Email Template
Blog Newsletter in 12 months
Promotional Offer in 12 months
Twitter Monitoring & Proactive Social
Media
SEO optimized blogs written and
posted per week
Content Calendar
Marketing Automation & Buyer Journeys
4 x 3500
words
2
2
4
3 accounts
1
1
12
2 accounts
4 steps
2 hours per
week
6 x 3500
words
3
3
6
4 accounts
1
1
24
6 accounts
8 steps
3 hours per
week
Basic Intermediate Advanced
FIXED DELIVERABLE
PACKAGES
THERE’S NO SUCH
THING AS ‘ONE
SIZE FITS ALL’
CHAPTER 5:
14
There’s no such thing as ‘one size fits all’.
The problem is that the same activity – such as sending out a
promotional email – can have very different results from client
to client, even when both clients are on the same package. This
is because every persona you target on behalf of a customer is
unique. One client’s customers might love reading blogs, while
another client’s are into video. Because of this, fixed deliverable
packages don’t really work.
Fixed deliverable packages don’t allow for
experimentation.
As an inbound marketing agency, you’ve most likely promised
your clients growth, sales, and customers. So, when the tactics
you’re implementing don’t result in actual revenue or sales, you
need to adjust your tactics and try something different.
In our experience, this kind of (entirely necessary)
experimentation doesn’t gel well with fixed deliverable packages.
The rub is that when your deviation does in fact lead to growth,
the client is usually happy. When something new doesn’t work
out, however, they want credit notes for not sticking to the
contract.
It’s tough to implement time for improvements.
As an analytics-crazed inbound marketer, you’re constantly
identifying ways to change and improve your client’s marketing
strategy. These data-driven insights are one of the big bonuses
of the inbound marketing approach.
Another problem with fixed deliverable packages is that they
don’t allow for the cost of implementing these new insights. For
example, a strategist in my team once analysed a workflow and
identified 52 ways to potentially improve its performance. We
slowly started to implement a few of these each month, because
our fixed deliverable contract only accounted for one hour of
implementation a month. We even offered extra value and spent
four hours a month implementing the improvements, but the
client was still unhappy. They couldn’t understand why we were
taking so long.
15
So, what’s the best way to package your inbound marketing and
HubSpot-related services? In my opinion, agile retainers are the
way to go.
With an agile retainer, the client buys a certain number of points
in a retainer format. At the beginning of each cycle or sprint, you
decide how you are going to ‘spend’ those points. This decision
is based on data analysis and learnings gained in previous
sprints.
Agile retainers allow for a tailored, agile approach.
One sprint, you may decide to target your client’s online
stationery store to ‘Mother Maggie’, so you use points to produce
a lot of social media posts on Facebook. The following sprint, you
might want to target ‘Office Manager Olivia’. To reach her, you
write an eBook and share it across relevant LinkedIn Groups.
The nice thing about using a points system is that your options
aren’t limited to inbound marketing tactics. If you believe that
creating a video for your client’s home page will add the most
value, you can do that. Or maybe you see the need to create a
sales playbook for your client’s sales team. Points can be used
for whatever action is going to have the most impact.
Use a simple time-to-points calculation to work out
how much each task ‘costs’.
Keeping the principles of B-players and value-based pricing
in mind, working within a points-based agile retainer is easy
peasy. Here’s how we calculate the number of points needed for
specific tasks:
5 points = 15 minutes, so 20 points = 1 hour
AGILE RETAINERS
A RETAINER-BASED
MODEL THAT ALLOWS
FOR AGILE, TAILOR-
MADE MARKETING.
CHAPTER 6:
16
Let’s say that building out an eight-step marketing automation
workflow will take a B-player 3 hours to complete. But we also
know that it’s going to add huge value to the client. So, following
the principle of value-based pricing, we take the 3 hours and
multiply it by 2 to give us 6 hours.
6 hours = 120 points
So, building out an eight-step marketing automation workflow will
cost 120 points.
Assign a set number of points to each sprint.
On a points-based retainer, every sprint (or cycle) is assigned a
certain number of points. At the start of each sprint, it’s your job
to come up with a list of deliverables that use up all the available
points. This decision should be based on what the client has
asked for, as well as on what you’ve recommended.
Most of our 12-month retainers are divided into four quarterly
sprints. So, if the client pays us $8000 a month, and if the sprint is
three months long, the total cost of the sprint is $24,000. Half of
this goes to planning, analysis and account management, which
is something everyone under-charges for. We use the other half
for agile story points. In this example, we used $125 per hour as
the hourly rate.
If we don’t use up all the points in a quarter, they carry over to the
following quarter.
What’s great about these retainers is that clients can easily shrink
or expand their retainers once they start seeing results. And
guess what? We’ve seen more expanding than shrinking.
What about account management and project
management?
One thing that agencies always under-estimate is the amount of
time that goes into account management, project management
and analysis of a client’s marketing. As a rule of thumb, we
currently recommend that half the monthly retainer is kept aside
for this.
If you’re familiar with the idea of growth-driven design, you’ll
notice that this model is closely aligned to that methodology.
Ease into agile retainers with a phased approach.
If your clients are all on fixed deliverable packages but you want
to give this agile methodology a try, start by building a hybrid
pricing model. Include some fixed deliverables, like blogging, as
well as a set of points that allow you to be agile.
$4,000 $8,000 $12,000
$2,000
$2,000
$4,000
$4,000
$6,000
$6,000960pts 1920pts 2880pts
Planning, Analysis, Account Management
Agile Story Points in 3 Month Sprint
Monthly Costs Monthly Costs Monthly Costs
Basic Intermediate Advanced
10 keywords
3 accounts
yes
yes
SEO
Website
Social
Email
Paid
Marketing Automation
Agile Points to impliment
15 keywords
6 accounts 9 accounts
1 campaign 2 campaigns
yes
yes yes
yes yes
480 points 960 points
20 keywords
yes
Content Offers and Content Promotion
17
When working on a retainer-based model, it’s a good idea
to build out your deliverables into sprints. We recommend a
quarterly sprint, but you could do a two-month sprint, or even a
one-month sprint.
Beware of shorter sprints.
Shorter sprints can be problematic, especially if you are doing
proactive analysis of your client’s marketing. This is because the
changes you implement in a sprint may not have enough time to
settle in and start producing results. You’ll then pick up the same
problems in the following sprint, and it will just look like you’re not
doing your job.
Stick to a process.
It’s important to build – and stick to – a process for running
sprints. A tried-and-tested process ensures that you don’t forget
tasks and allows you to track the status of all work planned and
in production. Apart from various project management tools, we
use a system we developed called inboundlibrary.com, which
assists us in the management of strategic content production and
distribution, over and above HubSpot.
Use the four growth-driven design (GDD) sprint
stages.
HubSpot outlines four stages in a sprint in GDD for inbound
marketing, website, and CRM activities.
They are:
•	 Planning
•	 Building
•	 Learning
•	 Transfer
HOW TO PLAN SPRINTS
SEE EVERYTHING
YOU DO AS AN
EXPERIMENT.
CHAPTER 7:
18
Planning stage
Planning happens at the beginning of a sprint. If you are running
quarterly sprints, this might be the first two to three weeks. First,
consolidate all the requests your client has made along with all
the recommendations you have identified from your analysis.
Then, calculate how many points it will ‘cost’ to implement this
experiment.
Try to see everything you do as an ‘experiment’. Write a
hypothesis statement on what you think will happen and devise
a way to test whether it worked or not. You also need a plan for
keeping it live if it works, or rolling back to the previous version
if it fails. For more elaborate recommendations, it’s a good idea
to build out small pre-experiments to test how users or personas
will respond, before you put all the effort into creating something
that doesn’t end up working.
By the end of the planning phase, you know exactly which
experiments will be carried out in the building phase.
It’s worth noting that should an urgent requirement come in while
you are in a sprint, you can always swop it out with one of the
experiments that you had planned. Alternatively, the client might
be prepared to pay more for extras.
Building stage
The next month and a half is spent creating and building all the
experiments. Depending on the nature of these experiments, this
could be the responsibility of a number of different people on
your team, including strategists, HubSpot administrators, writers,
designers, or developers.
Learning stage
All experiments then move into the ‘learning bucket’. They stay
in this bucket until we have enough data to decide whether they
worked or not, so some experiments may need to stay in the
bucket for a number of sprints.
For example, a content offer that you’ve conceptualised, written,
and published might stay in the learning bucket for nine months
while you actively promote it through blogging and social media.
Once you’re able to judge how well the content offer really
performed, it’s ready to move into the transfer stage. The transfer
stage is where you decide to either put the offer back into
another sprint, or create something else based on your learnings.
Transfer stage
As alluded to in the previous step, the transfer stage is where
you create a report showing the status of all experiments in the
learning stage. This report should also show how the sprint went
in terms of what was planned and how much of this was actually
built.
All recorded learnings will be used to make decisions during the
planning stage of the following sprint.
19
Some agencies are taking a completely different approach to
pricing. When tasked with solving a client’s problem, they ask,
“How much is this problem worth to you?” In other words, if we
solve this problem, what will it mean for you?
When faced with this question, clients often put forward a very
large number to make the problem go away. The agency can
then do whatever they need to do with the budget available.
If the agency doesn’t solve the problem, they offer a percentage
back to the client. Although this is similar to the cost-per-
acquisition model we looked at earlier, at least on this model, the
costs are covered and the amounts are usually large.
HOW MUCH IS THIS
PROBLEM WORTH TO
YOU?
CHAPTER 8:
CLICK HERE IF YOU WOULD LIKE TO BE
NOTIFIED WHEN THE NEXT EDITION OF THIS
GUIDE LAUNCHES.
IN IT, YOU’LL FIND OUT MORE ABOUT THIS MODEL, AND
OTHERS THAT MAY BE IN INCUBATION RIGHT NOW.
20
CHAPTER 9:
GETTING THE
CONFIDENCE TO
CHARGE AND DELIVER
Looking back, one of the reasons we charged so little in the
beginning – and almost sunk our agency as a result – was
because we didn’t have 100% confidence in inbound marketing
or our ability to get results for our clients.
The inbound marketing methodology gets results, so
don’t be afraid to charge accordingly.
Here’s the thing: inbound marketing really works. If we aren’t
living proof of that, there are hundreds of case studies available
on the HubSpot website that really should give you confidence in
the methodology.
Get your sea legs by doing some pro-bono work if
you have to.
Early on, we did some pro-bono work to learn and test the
methodology. One of the things I did was create an active,
strategic blog for my local town’s tourism website. As a result, I
watched the site’s traffic grow and the enquiries flood in. Even
better? One of the residents noticed the change, and actually
became our first client.
Partner with agencies and providers that have
experience.
Bolster your confidence by finding partners that have the
experience you lack. For example, if you’re a great web designer
but you’re not comfortable building workflows, find someone who
can fill that gap for you.
MPULL exists to help agencies grow. As such, we often help
agencies with their first few retainers, and the relationship is
usually so beneficial that we often end up becoming long-term
partners. The recipe is simple, really: You focus on what you’re
good at, we take care of the rest.
DON’T UNDERCUT
YOURSELF
21
HOW MPULL CAN
HELP YOU
We partner with HubSpot partner agencies that want to scale.
ACCELERATE YOUR PROFITABILITY AND GROWTH
•	 Sell and market aggressively: sell inbound marketing and
HubSpot to your existing customers, or take an aggressive
go-to-market strategy without the worry of how to deliver
when you close deals as you can use one of our packages.
•	 Escape the global skills shortage: avoid inflated salaries due
to scarce resources, and never deliver below average service
while you upskill your employees on HubSpot by taking
advantage of our packages.
•	 Reduce learning curve: no need for trial-and-error when it
comes to developing a scalable process to deliver to your
customers, we provide best-practice consulting on processes
and delivery.
•	 Diversify your offering without the risk: test your market’s
interest in inbound marketing (or any of the other services
we are building out to future-proof your agency) without
investing in resources and infrastructure.
Agency Supply Services
Providing packages to permanently or temporarily deliver
solutions you have sold.
•	 Inbound Strategy
•	 HubSpot Configuration and Administration
•	 HubSpot Support
•	 Content Production
•	 Ds Digital Analysis and Analytics
•	 Growth Driven Design
•	 Website Design & Development
•	 CRM
Agency Demand Services
Providing a solution to find customers and better utilize
your existing resources.
•	 Agency Inbound Marketing
•	 Resource Utilization 	
•	 Agency Positioning
•	 Pitching and Proposal Consulting
•	 Agency Service Diversification
•	 Mergers & Acquisitions
Consulting Services
Assisting agencies across supply and demand
•	 Team and Structure Development
•	 Process Development & Optimization
•	 Delivery Templates
•	 Pricing and Package Development
22
We would love to chat to you further about
how we can help your agency grow and scale.
To schedule a chat click on the link below.
LET’S CHAT ABOUT
HOW WE CAN HELP
YOU
SCHEDULE A CALLSIGN UP HERE
NOTIFY ME OF
UPDATES TO THE
PRICING & PACKAGING
GUIDE
In the next editition, you’ll find out more about the
model in chapter 8, and others that we are working
on as we speak.
23

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Mpull pricing and-packaging-october-2016

  • 1. PRICING AND PACKAGING INBOUND MARKETING AND HUBSPOT-RELATED SERVICES FREE GUIDE 18 October 2016
  • 2. ABOUT THE AUTHOR Daryn Smith is the co-founder and director of MPULL, an inbound marketing agency based in South Africa. He is an entrepreneur at heart and is always challenging conventional and incumbent thinking. Daryn, in essence a marketing scientist, has qualifications in both marketing and computer science. He has combined these disciplines to bring accountability and measurability to the creative magic of marketing. Daryn Smith
  • 3. CONTENTS Introduction Chapter 1: Start with ‘why’ Chapter 2: Pricing models Chapter 3: How much profit should you be making? Chapter 4: How much to charge for your time Chapter 5: Fixed deliverable packages Chapter 6: Agile retainers Chapter 7: How to plan sprints Chapter 8: How much is this problem worth to you? Chapter 9: Getting the confidence to charge and deliver How Mpull can help you (4) (6) (7) (9) (11) (14) (16) (18) (20) (21) (22)
  • 4. INTRODUCTION When my co-founder Graeme Wilson and I started MPULL, we set out to create an agency that focused on the B2B segment of the South African market. We must have done something right, because despite the fact that neither of us had any previous agency experience, MPULL became a HubSpot Platinum Partner in just 11 lightning-fast months. Needless to say, we learnt a huge amount along the way, most of it through a process of (grey-hair-inducing) trial and error. Graeme and I weren’t your typical agency owners. Having both come from big corporates, we focused on building a scalable business that didn’t need us for day-to-day operations. It was important to us that we worked on the business, not in the business. Early on, we also decided that instead of using freelancers, we were going to build our own team of in-house pros. We selected our team members carefully and then spent countless hours training each one. The result? A highly skilled team with a vast amount of collective experience. Of course, not everything was smooth sailing. Through the process of setting up the agency, we almost shut down due to incorrect pricing and packaging models that put pressure on our cash flow. ​LEARN FROM OUR MISTAKES 4
  • 5. But, like they say: smooth seas don’t make skilled sailors. While we were ironing out the kinks in our pricing and packaging model, agencies from around the world began to take notice of the quality of the work we were doing, the impressive results our clients were getting, and the speed at which our agency was growing. They began reaching out and asking us for advice and for help delivering their own clients’ work. That’s when we decided to pivot our business to focus on helping agencies grow. We now do this by providing solutions to help with agencies’ supply requirements (by white labeling our services) and demand solutions (by marketing their agency so they can focus on selling and servicing clients), and through offering consulting services (by sharing the knowledge we’ve gathered along the way). In this guide, I share our most valuable insights into correctly pricing and packaging inbound marketing and HubSpot-related services. 5
  • 6. CHAPTER 1: START WITH ‘WHY’ EVERYTHING YOU DO IN BUSINESS STEMS FROM YOUR ‘WHY’ Before we get into the nitty-gritty of building out your pricing and packages, you need to ask yourself one very simple – but incredibly important – question: Why did you start this agency? (Or, if you’re an employee: Why are you an employee at this agency?) Now, I know navel-gazing isn’t par for the course in the business world. But if you spend a few minutes thinking about it, chances are you have a very specific reason why you’re an agency owner or employee. This reason – your ‘why’ – will impact which services you offer and how you price them. For example, if you want to win awards and get recognition for your creativity, you most likely need to offer above-the- line services where you can create brilliant TV ads that don’t necessarily generate any ROI. Or maybe you’re a billionaire with a passion for helping others attain success and wealth, so you’ve created an inbound marketing agency to help your customers grow their businesses. Making a profit out of your own agency, however, isn’t really a priority. If you’re a workaholic employee who doesn’t want to have a personal life, then charging rock-bottom rates is a great way to ensure that you and your colleagues have to work long, hard hours just to cover your monthly expenses. I highly recommend reading Simon Sinek’s book, Start With Why, or watching his TED Talk, How great leaders inspire action, to fully understanding why finding your ‘why’ is key to building a successful business. In addition, check out my other eBook, How to Differentiate Your Agency, for more on the importance of properly positioning your agency. 6
  • 7. CHAPTER 2: PRICING MODELS Let’s start with a breakdown of the most common pricing models available to agencies. Media commission-based model This is probably the oldest model around, and it’s still commonly used by traditional above-the-line agencies. On this model, the agency comes up with a creative concept based on a brief. They usually don’t charge too much for this concept; they literally charge for the hours it will take to produce the campaign, only including a relatively small margin. The big bucks, however, are in the commission the agency earns from booking media space with media houses. When I was client-side, I used to think that the media planners working on my brand were making strategic decisions about the media my company bought to get us maximum reach to our target market. But when I later worked for a media house, I realised that they offered incentives for booking media with them. Surprise, surprise, it turns out that the media planners always went with the best incentives, and not necessarily with what was best for the brands they were representing. Project-based model This is the most prevalent model used by agencies. It usually also works on media commissions as per the above model. On a project-based model, whenever a brand needs something, they brief their agency on the project. This model presents problems for both brands and agencies. From an agency’s perspective, using a project-based model means you can’t plan ahead, because you have no way of knowing what projects will be coming in over the next few months. 7
  • 8. Put HubSpot tracking code onto website From a brand’s perspective, the pitfall of the project-based model is that there’s no guarantee that the agency will have capacity to execute an urgent piece of work when you really need it. In addition, if the team that usually works on your brand is busy on a different project, you run the risk of being assigned a wet-behind- the-ears team that’s going to make costly amateur mistakes. Cost-per-acquisition model On this model, the brand only pays the agency for the leads or customers the agency generates as a result of marketing. From a brand’s point of view, this sounds like a pretty awesome model. Because you only pay for marketing that results in actual leads or customers, it really forces your agency to come up with marketing that performs. From an agency’s perspective, however, a cost-per-acquisition model presents some serious problems. Firstly, if you don’t control the sales team, you can’t be held responsible for acquiring customers. We earned this insight the hard way when we generated over 600 high quality leads for a particular client, but because their sales team failed to follow up on any of them, the end result was zero new customers. Similarly, you can’t be held responsible for acquiring customers if you don’t control the product. The bottom line is that no matter how good your marketing is, if the product sucks, no one’s going to buy it. Lastly, working out how much you should charge per lead or customer acquired requires doing some mind-bogglingly complicated calculations. You’ll need more than a beautiful mind to work out how to recover costs when your marketing strategy deploys multiple tactics and has countless moving parts. Retainer-based model On a retainer-based model, a brand and agency enter into a contract that specifies a fixed monthly cost, over a fixed period of time. In return, the agency either needs to have a team ‘on call’ and waiting for work, or is required to execute a fixed set of deliverables each month. Retainer-based models are great for agencies, because you know exactly how much money will be coming in each month. 8
  • 9. To correctly price and package your inbound marketing services, you need to know exactly how much profit you want to make. (And no, ‘as much as possible’ isn’t a good enough answer.) A good profit margin for any agency is anything above 30%. If you’re not sure how much profit you should be making, you’re not alone. HubSpot’s Agency Pricing & Financials Report reveals that a whopping 61% of agencies have a profit margin that falls below 30%. Worse, the report shows that 15% of agencies don’t even know their margin. This means that only 24% of agencies are making a 31% profit margin or more. I’m going to be frank with you. Delivering quality inbound marketing services is hard work. If you’re not making a decent profit, it might make more sense for you to put your savings into shares or some other financial vehicle and wait for the dividends and interest to pay out. You’ll save yourself a lot of sweat, blood, and tears. YOUR PROFIT MARGIN’S SWEET SPOT? 30% CHAPTER 3: HOW MUCH PROFIT SHOULD YOU BE MAKING? 9
  • 10. If you’re set on making a success of your agency, however, hitting the right profit margin is essential. The right profit margin is key to a healthy cash flow. There’s a delicate balancing act that anyone who’s started a business from scratch is intimately familiar with. Starting an agency with no clients and a new bank account means that you need to receive income from work done before you can pay for expenses incurred. This, in a nutshell, is the challenge of cash flow. Add employees, landlords, and other monthly overheads to the mix, and you’ll soon see why entrepreneurs’ LinkedIn profiles list ‘financial tightrope walker’ under skills and experience. (And if they don’t, they should.) Unfortunately, so many agencies – we were almost one of them – fall prey to cash flow problems. In the HubSpot report referenced above, 10% of agencies are only making a 6-10% profit margin. Let’s do a little experiment to see what the reality of that looks like. We asked how long it would take an agency with a 7% profit margin to get enough money in their bank account to cover just one month’s expenses in advance. To answer this question, our Financial Manager put together some crazy spreadsheets based on the average size of retainers and so on referenced in the Agency Pricing & Financials Report. The answer? 14 months. This means that if your margin is hovering around the 7% mark, for well over a year you are going to be under immense stress at every month end, while you desperately chase clients for payment just to stay afloat. Do the same calculations when you’re making a 30% margin, however, and you’re cash flush in just two months. Business best practice dictates that a healthy agency should have three months’ cash flow sitting in reserves for a rainy day. If your pricing reflects the correct profit margin, you can achieve this in just six months. 10
  • 11. CHAPTER 4: HOW MUCH TO CHARGE FOR YOUR TIME THE VALUE YOU CREATE IS NOT BASED ON HOW LONG IT TAKES YOU TO DO SOMETHING We started our agency around a dining room table. Back then, we had minimal expenses. We didn’t pull salaries either; we were going to give this entrepreneurial thing a bash and needed our savings to fund the first few months’ cash flow. When we had to present our first proposal, we put together a costing by simply adding our expenses together and then tacking on a bit of a margin. That costing, and several more that followed, was $700 a month, and the list of deliverables was huge. We hadn’t factored in the high cost of producing content, and from the beginning we were running at a loss. Things only escalated from there. Soon we needed employees to help us. We couldn’t have the employees working from our homes, so suddenly we needed an office space and things like laptops, phones, and coffee machines. Next thing, the employees wanted beer and pizza on Fridays! Overnight, we were up to our necks in expenses. Working out your hourly rate from scratch can be a minefield. You might think that working out an hourly rate is simple, but it isn’t. There’s more to it than just taking all your current and projected future costs, grouping them into fixed and variable, and then working out an hourly rate. Trust me, I’ve been down this rabbit hole many times, and every time I’ve ended up with a spreadsheet so complicated, I couldn’t even read it myself. One of the biggest problems is that there are just too many variables. What if a staff member goes on maternity leave? What if a laptop is stolen and you need to replace it? 11
  • 12. Successful agencies that are way beyond start-up mode have reams of historic data to base their hourly rate on. Some of these agencies took part in the research that led to HubSpot’s Agency Pricing & Financials Report. The report says that the average blended hourly rate for an agency is $125 to $150. Take my advice: skip the complicated spreadsheets and use this as a guideline for what your agency should be charging per hour. Use value-based pricing. If you charge an hourly rate for every person on your team, the most money you can ever make is limited to how many productive hours your team can churn out, multiplied by the hourly rate. Some agencies refer to themselves as being in the ‘slave trade’. As cringeworthy as it is, the idea can be used to illustrate a useful point. Some slaves are more efficient than others. If Slave A gets more done in an hour than Slave B does, should you charge Slave A out at a higher rate? Or imagine both slaves are equally skilled and speedy, but you put them onto different tasks. Slave A is in charge of growing vegetables, while Slave B just tends the flower beds. If vegetables are more valuable to your client than flowers, should you charge more for Slave A’s services than you do for Slave B’s? Value-based pricing solves these problems. The premise of value-based pricing is that the value you create is not based on how long it takes you to do something. To solve the challenge of charging for value, we use a very simple formula: Cost = Time it will take to complete a task multiplied by the value it will deliver. We’ve assigned a multiplier to the three levels of value: 1 = low value 1.5 = medium value 2 = high value This means that for a low value task, we only charge a client for the time it takes us to complete it. But for something that adds huge value, we charge double the time it takes us. Always budget according to the B-players principle. So, how do you work out how long it will take someone to complete a task? As an agency owner or senior agency employee, you’re probably an ‘A-player’. This means that you’re effective and efficient. As an A-player, you might assign the following time slots to the following tasks: COST = TIME X VALUE 1 = low value 1.5 = medium value 2 = high value 12
  • 13. But let’s face it: there are very few A-players in the world, and every agency is going to end up with at least a few ‘B-players’ on staff. B-players aren’t as effective or efficient as A-players. Maybe it’s their first job and they’re still learning the ropes. Maybe they’re anxious and they’re always triple-checking everything they do. Or maybe they’re just, well, a little slow. B-players need more time to complete the same tasks: Assign time to tasks according to the B-players principle. When you sit down to work out how much time you need to account for X or Y, make sure you work according to B-player timing. Even if you can write and post a social media update in 15 minutes, your costing needs to allow for 25 minutes. Task 15 minutes 1 hour Time Write a social media update and post it Build a landing page in HubSpot Task 25 minutes 1.5 hour Time Write a social media update and post it Build a landing page in HubSpot 13
  • 14. Many inbound marketing agencies sell fixed deliverable packages to their clients, and these packages often go by the names of fast, faster and fastest. For each package, there is a certain amount of work that needs to be delivered each month. The agency is contracted to deliver these services every month, usually for 12 months. Here’s an example of three fixed deliverable packages an agency might offer: 4 X 1500 words 1 1 4 2 accounts 1 1 12 4 4 6 1 account 1 step 1 hour per week Content Offers and Content Promotion Social Media Templates Email Marketing eBooks i n 12 months incl design and Landing Pages, forms Social Media Posts Custom Landing Page Template Launch Emails in 12 months Social Selling Posts on Linkedin Custom Email Template Blog Newsletter in 12 months Promotional Offer in 12 months Twitter Monitoring & Proactive Social Media SEO optimized blogs written and posted per week Content Calendar Marketing Automation & Buyer Journeys 4 x 3500 words 2 2 4 3 accounts 1 1 12 2 accounts 4 steps 2 hours per week 6 x 3500 words 3 3 6 4 accounts 1 1 24 6 accounts 8 steps 3 hours per week Basic Intermediate Advanced FIXED DELIVERABLE PACKAGES THERE’S NO SUCH THING AS ‘ONE SIZE FITS ALL’ CHAPTER 5: 14
  • 15. There’s no such thing as ‘one size fits all’. The problem is that the same activity – such as sending out a promotional email – can have very different results from client to client, even when both clients are on the same package. This is because every persona you target on behalf of a customer is unique. One client’s customers might love reading blogs, while another client’s are into video. Because of this, fixed deliverable packages don’t really work. Fixed deliverable packages don’t allow for experimentation. As an inbound marketing agency, you’ve most likely promised your clients growth, sales, and customers. So, when the tactics you’re implementing don’t result in actual revenue or sales, you need to adjust your tactics and try something different. In our experience, this kind of (entirely necessary) experimentation doesn’t gel well with fixed deliverable packages. The rub is that when your deviation does in fact lead to growth, the client is usually happy. When something new doesn’t work out, however, they want credit notes for not sticking to the contract. It’s tough to implement time for improvements. As an analytics-crazed inbound marketer, you’re constantly identifying ways to change and improve your client’s marketing strategy. These data-driven insights are one of the big bonuses of the inbound marketing approach. Another problem with fixed deliverable packages is that they don’t allow for the cost of implementing these new insights. For example, a strategist in my team once analysed a workflow and identified 52 ways to potentially improve its performance. We slowly started to implement a few of these each month, because our fixed deliverable contract only accounted for one hour of implementation a month. We even offered extra value and spent four hours a month implementing the improvements, but the client was still unhappy. They couldn’t understand why we were taking so long. 15
  • 16. So, what’s the best way to package your inbound marketing and HubSpot-related services? In my opinion, agile retainers are the way to go. With an agile retainer, the client buys a certain number of points in a retainer format. At the beginning of each cycle or sprint, you decide how you are going to ‘spend’ those points. This decision is based on data analysis and learnings gained in previous sprints. Agile retainers allow for a tailored, agile approach. One sprint, you may decide to target your client’s online stationery store to ‘Mother Maggie’, so you use points to produce a lot of social media posts on Facebook. The following sprint, you might want to target ‘Office Manager Olivia’. To reach her, you write an eBook and share it across relevant LinkedIn Groups. The nice thing about using a points system is that your options aren’t limited to inbound marketing tactics. If you believe that creating a video for your client’s home page will add the most value, you can do that. Or maybe you see the need to create a sales playbook for your client’s sales team. Points can be used for whatever action is going to have the most impact. Use a simple time-to-points calculation to work out how much each task ‘costs’. Keeping the principles of B-players and value-based pricing in mind, working within a points-based agile retainer is easy peasy. Here’s how we calculate the number of points needed for specific tasks: 5 points = 15 minutes, so 20 points = 1 hour AGILE RETAINERS A RETAINER-BASED MODEL THAT ALLOWS FOR AGILE, TAILOR- MADE MARKETING. CHAPTER 6: 16
  • 17. Let’s say that building out an eight-step marketing automation workflow will take a B-player 3 hours to complete. But we also know that it’s going to add huge value to the client. So, following the principle of value-based pricing, we take the 3 hours and multiply it by 2 to give us 6 hours. 6 hours = 120 points So, building out an eight-step marketing automation workflow will cost 120 points. Assign a set number of points to each sprint. On a points-based retainer, every sprint (or cycle) is assigned a certain number of points. At the start of each sprint, it’s your job to come up with a list of deliverables that use up all the available points. This decision should be based on what the client has asked for, as well as on what you’ve recommended. Most of our 12-month retainers are divided into four quarterly sprints. So, if the client pays us $8000 a month, and if the sprint is three months long, the total cost of the sprint is $24,000. Half of this goes to planning, analysis and account management, which is something everyone under-charges for. We use the other half for agile story points. In this example, we used $125 per hour as the hourly rate. If we don’t use up all the points in a quarter, they carry over to the following quarter. What’s great about these retainers is that clients can easily shrink or expand their retainers once they start seeing results. And guess what? We’ve seen more expanding than shrinking. What about account management and project management? One thing that agencies always under-estimate is the amount of time that goes into account management, project management and analysis of a client’s marketing. As a rule of thumb, we currently recommend that half the monthly retainer is kept aside for this. If you’re familiar with the idea of growth-driven design, you’ll notice that this model is closely aligned to that methodology. Ease into agile retainers with a phased approach. If your clients are all on fixed deliverable packages but you want to give this agile methodology a try, start by building a hybrid pricing model. Include some fixed deliverables, like blogging, as well as a set of points that allow you to be agile. $4,000 $8,000 $12,000 $2,000 $2,000 $4,000 $4,000 $6,000 $6,000960pts 1920pts 2880pts Planning, Analysis, Account Management Agile Story Points in 3 Month Sprint Monthly Costs Monthly Costs Monthly Costs Basic Intermediate Advanced 10 keywords 3 accounts yes yes SEO Website Social Email Paid Marketing Automation Agile Points to impliment 15 keywords 6 accounts 9 accounts 1 campaign 2 campaigns yes yes yes yes yes 480 points 960 points 20 keywords yes Content Offers and Content Promotion 17
  • 18. When working on a retainer-based model, it’s a good idea to build out your deliverables into sprints. We recommend a quarterly sprint, but you could do a two-month sprint, or even a one-month sprint. Beware of shorter sprints. Shorter sprints can be problematic, especially if you are doing proactive analysis of your client’s marketing. This is because the changes you implement in a sprint may not have enough time to settle in and start producing results. You’ll then pick up the same problems in the following sprint, and it will just look like you’re not doing your job. Stick to a process. It’s important to build – and stick to – a process for running sprints. A tried-and-tested process ensures that you don’t forget tasks and allows you to track the status of all work planned and in production. Apart from various project management tools, we use a system we developed called inboundlibrary.com, which assists us in the management of strategic content production and distribution, over and above HubSpot. Use the four growth-driven design (GDD) sprint stages. HubSpot outlines four stages in a sprint in GDD for inbound marketing, website, and CRM activities. They are: • Planning • Building • Learning • Transfer HOW TO PLAN SPRINTS SEE EVERYTHING YOU DO AS AN EXPERIMENT. CHAPTER 7: 18
  • 19. Planning stage Planning happens at the beginning of a sprint. If you are running quarterly sprints, this might be the first two to three weeks. First, consolidate all the requests your client has made along with all the recommendations you have identified from your analysis. Then, calculate how many points it will ‘cost’ to implement this experiment. Try to see everything you do as an ‘experiment’. Write a hypothesis statement on what you think will happen and devise a way to test whether it worked or not. You also need a plan for keeping it live if it works, or rolling back to the previous version if it fails. For more elaborate recommendations, it’s a good idea to build out small pre-experiments to test how users or personas will respond, before you put all the effort into creating something that doesn’t end up working. By the end of the planning phase, you know exactly which experiments will be carried out in the building phase. It’s worth noting that should an urgent requirement come in while you are in a sprint, you can always swop it out with one of the experiments that you had planned. Alternatively, the client might be prepared to pay more for extras. Building stage The next month and a half is spent creating and building all the experiments. Depending on the nature of these experiments, this could be the responsibility of a number of different people on your team, including strategists, HubSpot administrators, writers, designers, or developers. Learning stage All experiments then move into the ‘learning bucket’. They stay in this bucket until we have enough data to decide whether they worked or not, so some experiments may need to stay in the bucket for a number of sprints. For example, a content offer that you’ve conceptualised, written, and published might stay in the learning bucket for nine months while you actively promote it through blogging and social media. Once you’re able to judge how well the content offer really performed, it’s ready to move into the transfer stage. The transfer stage is where you decide to either put the offer back into another sprint, or create something else based on your learnings. Transfer stage As alluded to in the previous step, the transfer stage is where you create a report showing the status of all experiments in the learning stage. This report should also show how the sprint went in terms of what was planned and how much of this was actually built. All recorded learnings will be used to make decisions during the planning stage of the following sprint. 19
  • 20. Some agencies are taking a completely different approach to pricing. When tasked with solving a client’s problem, they ask, “How much is this problem worth to you?” In other words, if we solve this problem, what will it mean for you? When faced with this question, clients often put forward a very large number to make the problem go away. The agency can then do whatever they need to do with the budget available. If the agency doesn’t solve the problem, they offer a percentage back to the client. Although this is similar to the cost-per- acquisition model we looked at earlier, at least on this model, the costs are covered and the amounts are usually large. HOW MUCH IS THIS PROBLEM WORTH TO YOU? CHAPTER 8: CLICK HERE IF YOU WOULD LIKE TO BE NOTIFIED WHEN THE NEXT EDITION OF THIS GUIDE LAUNCHES. IN IT, YOU’LL FIND OUT MORE ABOUT THIS MODEL, AND OTHERS THAT MAY BE IN INCUBATION RIGHT NOW. 20
  • 21. CHAPTER 9: GETTING THE CONFIDENCE TO CHARGE AND DELIVER Looking back, one of the reasons we charged so little in the beginning – and almost sunk our agency as a result – was because we didn’t have 100% confidence in inbound marketing or our ability to get results for our clients. The inbound marketing methodology gets results, so don’t be afraid to charge accordingly. Here’s the thing: inbound marketing really works. If we aren’t living proof of that, there are hundreds of case studies available on the HubSpot website that really should give you confidence in the methodology. Get your sea legs by doing some pro-bono work if you have to. Early on, we did some pro-bono work to learn and test the methodology. One of the things I did was create an active, strategic blog for my local town’s tourism website. As a result, I watched the site’s traffic grow and the enquiries flood in. Even better? One of the residents noticed the change, and actually became our first client. Partner with agencies and providers that have experience. Bolster your confidence by finding partners that have the experience you lack. For example, if you’re a great web designer but you’re not comfortable building workflows, find someone who can fill that gap for you. MPULL exists to help agencies grow. As such, we often help agencies with their first few retainers, and the relationship is usually so beneficial that we often end up becoming long-term partners. The recipe is simple, really: You focus on what you’re good at, we take care of the rest. DON’T UNDERCUT YOURSELF 21
  • 22. HOW MPULL CAN HELP YOU We partner with HubSpot partner agencies that want to scale. ACCELERATE YOUR PROFITABILITY AND GROWTH • Sell and market aggressively: sell inbound marketing and HubSpot to your existing customers, or take an aggressive go-to-market strategy without the worry of how to deliver when you close deals as you can use one of our packages. • Escape the global skills shortage: avoid inflated salaries due to scarce resources, and never deliver below average service while you upskill your employees on HubSpot by taking advantage of our packages. • Reduce learning curve: no need for trial-and-error when it comes to developing a scalable process to deliver to your customers, we provide best-practice consulting on processes and delivery. • Diversify your offering without the risk: test your market’s interest in inbound marketing (or any of the other services we are building out to future-proof your agency) without investing in resources and infrastructure. Agency Supply Services Providing packages to permanently or temporarily deliver solutions you have sold. • Inbound Strategy • HubSpot Configuration and Administration • HubSpot Support • Content Production • Ds Digital Analysis and Analytics • Growth Driven Design • Website Design & Development • CRM Agency Demand Services Providing a solution to find customers and better utilize your existing resources. • Agency Inbound Marketing • Resource Utilization • Agency Positioning • Pitching and Proposal Consulting • Agency Service Diversification • Mergers & Acquisitions Consulting Services Assisting agencies across supply and demand • Team and Structure Development • Process Development & Optimization • Delivery Templates • Pricing and Package Development 22
  • 23. We would love to chat to you further about how we can help your agency grow and scale. To schedule a chat click on the link below. LET’S CHAT ABOUT HOW WE CAN HELP YOU SCHEDULE A CALLSIGN UP HERE NOTIFY ME OF UPDATES TO THE PRICING & PACKAGING GUIDE In the next editition, you’ll find out more about the model in chapter 8, and others that we are working on as we speak. 23