Online marketing agencies are all the rage these days, as more and more businesses see the value in getting in on the digital marketing action. Having an agency create a marketing plan, carry out the execution, and report on the results is becoming commonplace, and most big-name brands have adopted this strategy. Whether you’re just getting started or are looking for ways to enhance your existing marketing efforts, this article will discuss methods for paying an online marketing agency.

Traditional Offers And Bundles

The most basic and, perhaps, the most traditional way to pay for advertising is through “bundles” of advertising. Essentially, you give the agency a certain amount of money each month, and in return, they will provide you with a certain number of hours of advertising or a certain amount of dollars spent on advertising. So, if you’re looking to advertise on a specific mobile app and you want the campaign to run for the next two months, you might want to consider offering the agency a deal like this:

“We will give you $500 for four weeks of ads on [the specific app]. If we get four new leads or customers from that campaign, we will do another four-week gig for free.”

Whether you’re advertising on a physical billboard or a digital one, you can take advantage of this strategy to get started.

Project-based Offers

Another way to pay for online marketing is project-based. Essentially, you give the agency a project or campaign to work on. They will develop a plan, and you will review and approve the work before it begins. Once the project is complete, you can either continue with the same deal or switch gears and work with the agency again.

For example, you might want to work with an agency to design a new logo or rebrand your company. After they have completed the project, you can decide whether you want to continue with their services or find another agency to work with. This strategy has several benefits. First, you will be able to ensure the agency is accountable for the work they do. Second, you won’t need to worry about whether or not the agency is going to meet the deadlines that you set. Since the project is usually project-based, there isn’t a lot of opportunity for missed deliveries or sloppy work. Third, you can measure the results of the campaign and, if necessary, switch gears and do something different in the future. If the initial campaign does not produce the desired results, you can always go back and try something new.

Cost-Per-Click (CPC) And Cost-Per-Thousand (CPM) Offers

One of the more modern ways to pay for online marketing is through “cost-per-click” (CPC) and “cost-per-thousand” (CPM) offers. Essentially, you agree to pay the agency per click or per thousand impressions for a certain type of advertisement (usually a banner ad or a small image or text link that pops up when a user clicks on a website or an app).

These types of offers are great for businesses that need a quick boost of traffic. Since you’re not guaranteed to get the results you’re looking for, this type of arrangement is usually used as a short-term solution. For instance, you might want to try out a new product or service and, in doing so, create a landing page or website. You can pay for clicks on that page or piece of content to see how many people are interested in your product. If you decide that the results of that campaign are positive, you can then consider continuing with paid clicks or advertising on a more traditional platform.

Paying For Performance

Many businesses choose to pay for performance instead of a set amount of hours or dollars. Essentially, you agree to pay the agency a certain amount of money each month for a certain amount of activity. For example, you might want to try out a new marketing campaign and use a performance-based contract to pay the agency a percentage of the total revenue they bring in.

With this type of setup, you are not committing to any specific amount of activity. Instead, you are committing to paying the agency a certain amount of money, regardless of whether or not they produce any results at all. This strategy has several advantages. First, you do not need to set a fixed amount of time to work with the agency. Second, you can set a specific target or goal for the agency, such as increasing traffic to your website or boosting your social media presence by gaining a certain number of engaged followers.

Pay For Results

The final method of payment that we will discuss is pay for results. Essentially, you agree to pay the agency a certain amount of money each month for a certain amount of activity. However, instead of using traditional metrics like clicks or impressions to determine the amount they receive, you might use a metric that measures the results of their campaign.

For instance, if you are working with an SEO agency, you might want to pay them according to the amount of leads or customers that they generate for your company. Similar to paying for performance, you are not committing to any specific amount of activity; you are simply committing to paying the agency a certain amount of money for the results they produce. This payment scheme has several advantages. First, you do not need to worry about whether or not the agency is going to meet the deadlines that you set. Second, you can measure the results of the campaign after it is complete. Finally, you have some recourse if the agency does not meet the performance standard that you set for the contract.

So, which offer do you choose? It really depends on your needs and the kind of agency you want to work with. Do you want to focus on performance or results? Are you looking for an agency that can provide you with a steady flow of traffic or clicks? Which type of measure do you want to use to determine the amount you pay? Hopefully, this article will help you make the right choice for your needs. If you have additional questions, feel free to contact us.