Social Media Management Pricing Structure
One of the most important questions a freelancer or consultant will ask themselves is: How much should I charge for social media management? As with most important questions in business, there is no clear right or wrong answer. The rates charged by social media managers vary widely based on several factors. These factors include job scope, level of experience, type of business, occupation, and location. In addition, freelance consultants working in social media management should focus on their competition and the market value of their work, the type of effort required to complete a project, and the results the client can expect.
Here is a list of questions you should ask yourself as a social media consultant, freelancer, or agency to help you determine the right price for your social media management business. Keep in mind that the factors listed below need to be fully evaluated to inform and define your pricing strategy.
How much experience do you have in social media management?
Prospective social media clients will want to know what work experience is relevant to you, what results in you have achieved for past clients, and what specialties you can bring to their business such as content creation, social media strategy, account development, and social site advertising, etc.). Your ability to communicate the value your experience carries to your customers will tell you the difference between winning and losing a new account, so take the time to explain and market your skills.
Although years of service are not the only way to determine experience, it may be helpful to compare your work experience with that of others. As social media managers gain more experience they can charge significantly higher fees to their clients.
According to Freelancer Platform Upwork, the rates that other freelancers charge for social media content management are as follows:
- Entry Level (Social Media Posting, Virtual Assistant Duties): $ 15- $ 50 / hr
- Intermediate (social media posting, content creation and community management): $ 50- $ 100 / hr
- Advanced (brand and social media strategy, consulting): $ 120- $ 250 / hr
Even if social media consultants and freelancers are not paid, using payroll data as a starting point when evaluating your paycheck can be helpful. According to LinkedIn, the average salary of a social media manager with 1-5 years of experience in the United States is $ 41,900. For the same role with 6-14 years of experience, the average salary goes up to $ 80,000!
Social media management rates also vary depending on location. In an area where the cost of living is higher than average, rates are also higher. Competition in your industry also plays an important role in setting your freelancer rates.
Are there multiple social media management companies in your city? How much do they charge? While it can be hard to figure out the price of your competition, take the time to do a competition analysis anyway to make sure you are setting yourself up to get a new customer! Even if you can not find the price of your competition, you may discover what they offer and how they package their services.
What type of businesses are you working with?
Before you start purchasing a social media management plan, it is important to learn everything you can about the prospective client. While this information may not be the only factor in determining to price, knowing when to write successful plans and close a new business can be helpful.
Business size. Big businesses can spend more on marketing. However, most businesses allocate only a certain percentage of their revenue to their marketing budget. The U.S. Small Business Administration recommends spending 7-8% of total revenue on marketing and advertising for businesses with less than $ 5 million in annual revenue. Keep this in mind.
Industry. Factors such as competition, pricing, and development plans all vary depending on the industry. For example, the restaurant industry is very competitive, but profit margins are very low. The recipe leaves a lower budget for marketing costs. Buy yourself a price accordingly.
Most social media managers adjust the fees for each client and plan. While this may seem strange to some, keep in mind that no two jobs are alike, and customizing your offer based on your customers’ needs and specifications is a great way to get business. Use your best judgment when delivering your rates – but do research first.
How do you pay for your services?
How social media managers charge for their services varies widely. Some social media managers are charged by a retainer, some are charged by the program, some set the rating for a pre-defined job report and hourly, weekly or monthly fees. This decision depends on how you want to build your freelancing or consulting business.
Here is some more information about your options for charging a social media client:
Hourly rate: Since most economies are based on hourly pay, it is not surprising that this is a common way for social media freelancers. Hourly payments are simple and convenient, however, and it does not help much to build a team and measure your activities – and by charging per hour, you can get into difficult situations when the scope of work changes. If you decide to charge per hour, set an overall estimate, and If you think you will go over your hourly estimate for a project, define parameters for how you will monitor the purposeful changes of your time and address and how you will interact with the client.
Monthly (Fixed Fee): Many SEO and social media marketing managers prefer to charge a fixed monthly fee for their services. It offers a stable and predictable return, which benefits both the customer and the freelancer. Make sure you set the parameters for delivery here at a fixed rate, and define how you measure it – whether it can be provided (e.g. blog post, social profile creation, etc.), the actual number of hours it will take to complete your work report, or the number of hours you will be available to your client.
Retainer: Retainer is an advance payment for future services made by a social media manager and includes certain benefits. Lawyers are well-known for their use of retainer fees, and many social media management consultants charge a retention fee to ensure that the client invests in using them in an organized manner when a customer experiences a delay or fails to provide you with the information you need to get the job done while minimizing the risk at their end.
If it suits you and the customer, you may be charged for each project based on a pre-determined fee.
Each project basis offers greater flexibility in outsourcing certain assigned tasks, especially if you decide to scale your business. If a plan takes longer than expected, charging for each plan carries the risk of being charged less – as always, do not forget to define clear parameters related to the scope and a plan for how to resolve things if things don’t go as planned.
