One of the common pitfalls of start-up agencies is not being able to price their services properly.
The average markup for an agency selling our products should be around 250% to 300%.
As an example, our Organic Gold package has a reseller price of $639 per month. If you follow our suggestion of a 250% to 300% markup, you would charge your clients anywhere from $1,597.50 to $1,917.00 per month.
Indeed you can see on the dashboard that there is a green tag indicating the 300% markup as the Standard Retail Pricing. This amount is how much other agencies are pricing related services.
The figures in black are the price we charge you, our partner.
The price in the green tag are our suggested price for your clients.
If that sounds like a lot, it is.
Consider the overhead you do for research and the service you provide to your clients. You do an analysis of their website and provide a proposal or a report. You consult with them regularly when they seek recommendations for their business. More importantly, you manage their projects and deliver what they need for digital marketing.
These things cost you time and money. Other companies would charge an hourly fee for consulting, proposals, and project management hours. All of these needs to be factored into your pricing, especially if you're selling recurring services like SEO, Social Media Management, Paid Advertising, etc.
However, ultimately the pricing is up to you, your business size and goals, and perhaps the budget of your client.