Many people starting a social media business aren’t sure how to charge or how to build a price list. When offering social media management services, there are 3 basic ways to charge clients:
1) Setup Fee + Monthly Rate
Some social media managements charge a setup fee to account for the time and effort it takes to create the profiles. Once the profiles are created, the payment plan will switch to a monthly rate.
If a client doesn’t stick with you for management, you have appropriately charged them for the setup investment.
Some clients will be uncomfortable with a large upfront payment – especially since during the setup stage they won’t see any tangible results.
2) Hourly Rate
Some social media management companies will charge based on an hourly rate. The client will have a slightly different bill each month based on how much time and effort was invested.
It is very transparent and fair to both you and the client – only pay for what you use.
Most clients want some certainty of what they will pay each month and don’t want to be responsible for a big bill if a problem arises (or if you take more time). This also doesn’t account for when you are thinking about the client during time when you aren’t “on the clock”.
3) Standard Monthly Rate with Contract
Most social media management companies charge a standard monthly rate and have a minimum commitment. The setup time/cost is absorbed for the duration of the contract vs. requiring an additional upfront investment.
It is easier to pitch a single flat rate to a client vs an upfront large charge. This is probably the easiest billing option to sell-in.
If you spend a ton of time, you may not be making great money (although most social media managers