How Much Do Agencies Really Cost?

Agencies are dedicated to creating, planning, and handling your every marketing and advertising need, but they are not all one and the same.

Today, we’re talking about the #1 question that marketing directors have for agencies…”How much?” In this episode, Tyler and Michael discuss the agency ecosystem, give advice on how to shop around, and break down the 2 main types of agencies you’re likely to run into.

We also discuss:

  • Agency ecosystems
    • Low-end
      • Freelancers: typically one person, less experience, cheaper price
      • Small Agency: 2-3 people, more experience than a freelancer, slightly higher in price
    • Middle
      • Boutique Agency: teams of 10-40 people, sometimes have one specialty service
      • Specialty Agency: teams of 10-40 people, usually web development, digital advertising, or some other type of specialty
    • High-end:
      • International Agency: large teams, full service, highest price points
  • Compare your pricing and shop around to find what will be the best fit
  • Don’t compare pricing between entities who are on different levels (i.e. a freelancer VS.  an international agency)
  • To get an accurate price point, pick the level you can afford and price around within that level
  • Find out how involved the team is with the entire project (concept, production, distribution, & optimization)
  • There are 2 types of agencies:
    • Type 1: they do everything in-house
    • Type 2: they outsource the work but manage the project + money
    • Note: Type 1 is typically cheaper than Type 2
  • The price differences between doing a one time project and going with a retainer agreement
  • RFPs are not generally something agencies respond to

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