Different Pay Structures for Online Marketing and Agencies

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Episode 59 of the marketing live podcast. This is Taylor, Timothy, your host. And today guys, we’re gonna be talking about different pay structures for online marketers and agencies. So over the years that I’ve been working in this industry, I’ve heard of so many different ways that people actually make money doing all my marketing. So these are the three most popular that I found. So let’s dive in.

The very first thing I want to talk about is a retainer. So no, it’s not the thing you put in your mouth to keep your teeth straight. It’s a retainer guys. So basically what is a retainer? Our retainer is a monthly payment that they pay you for your services. So you go to them and say, I will do x, Y, Z for you and you pay me 500 bucks a month. So it’s like, or maybe you go to them and say, we’ll build your website, we’ll do all your paid traffic, we’ll do your email marketing and Dah, Dah, Dah, Dah, Dah, and we’re going to charge you a $10,000 a month and we’re going to do everything for you. So that’s kind of how the retainer works. Now, the pro to this is obviously you’re going to be getting a monthly consistent paycheck as long as you’re working with this company.

So your, you basically make a deal with them and they start paying you every month. So the con, what I’ve found for a lot of marketers is a lot of times on a retainer, they want you to do a lot of work. So they look at it as, okay, will, if I’m paying you a retainer, then what are you doing for me? You said you would do these things, but I want you to do more now and I still want to pay the same amount. So a lot of times with marketers, they get in a flip flop with that and it starts to run into, they start to run into some issues here. So just, uh, a misalignment of expectations that I have found when people set up retainers with their clients. The next one we’re gonna talk about is the cost per result. So what is the cost per result?

So I’ve heard of marketers going out there and making deals with people saying for every lead we get you, you have to give us 25 bucks or five bucks, whatever lead you get, we get you. You have to pay us in return. So there’s pros and cons here. The pro to this is obviously you can make a ton of money because it’s a high risk, high reward situation. So if they come to you and say, Hey, I’m going to give you $10 a lead and you start generating thousands of leads for these people, you can make a crap ton of money really fast. Now the con is if you work out this deal and you never make drive them any leads, well then you’re making zero and you might’ve put a ton of work up front to get stuff set up for them and you get zero back in return.

So that’s kind of the cost per result thing. High risk, high reward situation. So that’s one thing you guys can look into doing as well. So the percentage of ad spend is the next one that I hear a lot about. So what is percentage of ad spend? So if a company comes to you and says, hey, we want to spend $1,000 a month on Facebook and return, you say, will we take 10 to 15% of ad spend? So you’re, they pay you a hundred to 150 bucks a month depending on how much they’re spending. So some of the pros to this, obviously if these guys have massive budgets, you can make a ton of money. Imagine if a company comes to you and says, Hey, we have a million a month we want to spend on ads. We’ll talk about your paycheck. Now you’re making a ton of money from this.

So that’s a huge pro. If they have big budgets, you’re making a ton of money. A con is if you’re working with small businesses and they come to you and say, we only have 500 bucks a month, then obviously you’re making like 50 to $75 a month on running Facebook ads. And it’s like, is it really worth it at that point? I mean for me, no, it would take too much time to set up everything and I wouldn’t even be making money at that point. So just to wrap up this episode, other things I’ve heard, I’m not going to dive deep into these are pros and cons, but you guys can think about this as well is I’ve heard of people mixing and matching these as well. So they’ll do our retainer, but if their, you know, their ad spin surpasses the retainer and their percent, their percentage of spend passes that then you start making, then it goes to that.