right i know this isn't the most exciting topic to cover on the first major video on
this new channel but it's a very important one and i get questions all the time from people
asking how much should i charge for clients should the client pay for ads or should i
just want to firstly start by saying the client should always pay for the ads themselves but then
the next question is well how much should they pay what should their budget be and all those things
i'm going to cover in today's video but before we do i want to announce
the three winners from our first video on this channel the three winners of our new affluent
merch line i'm gonna do that right now on my phone so you can see these are randomly selected
we're gonna paste the link the video we're not gonna allow duplicates we're gonna hit continue
so our first winner is ahmed tamer okay cool i'm gonna send you a message give me
that affluent t-shirt you got it man you got it okay fine and we're gonna pick another winner
marketing harry coomb dude i know harry you you've been commenting on these videos for
a long time so it's about time that you won something and let's do another one vassav cool
guys well done you've won some affiliate merch on you're gonna get a t-shirt and a hat and a message
you and you can reach out to me in fact i'll stop recording and you can let me know the size that
you need and the team will get those sent out to you asap we're actually going to be hosting that
competition on every new video on this channel for the foreseeable future it's not going to be
three people that win though it'll be one person so one person out of everyone that comments within
the first 24 hours will be randomly selected using a random comment selector to win a affluent merch
kit because it's going to be a t-shirt and a hat those designs might change from time to time as
well so make sure you have your notification belt turned on so you get notified when we bring out
new content because if not you're going to miss the first 24 hours and we've already drawn the
winner by then so make sure your notification bell's turned on drop a comment down below today
so pricing so it's really important we get this right when we first start now and i know pricing
is something that causes a lot of anxiety for new start agency owners and some instances mean they
don't even start their agency because they're intimidated by the amount they're quoting for
businesses but i think it's really important to understand that as an agency owner regardless of
whether your services ads or web design or email marketing whatever that may be for whoever it may
be we're trying to help someone increase their revenue we're trying to help someone increase
the amount of money they're making on a monthly basis and therefore our service is very valuable
so it's value-based pricing and it's not time-based now with the majority of
industries out there let's say we're working in a full-time job we're working based on our time
we paid a salary based on the amount of time we spend in the office right now gone are the days
when we'll charge people based on our time we'll leave that in employment that's why we started a
company in the first place right because if we're charging people based on our time the only thing
that we have control over is our hourly rate okay we don't have control over how many hours we have
in the day once we're at max capacity the only thing we can do to scale our agency is increase
our hourly rate so never charge people based on the amount of time it's going to take you
to fulfill a task only charge people based on the amount of value you're going to be bringing
to them now granted that's something that's pretty hard to quantify as a new start agency for someone
who's never run ads before it's very daunting to approach a business in their local city and quote
them upwards of a thousand dollars for a service that they don't really understand themselves i
know that's how i felt right at the start when i signed my first restaurant client i had a ton
of imposter syndrome but i still managed to get them over the line and then i had to figure out
how to run ads i remember the quote that richard branson said at the time which stuck with me was
if you ever get offered an opportunity that you don't know how to fulfill say yes and then learn
later so i had to learn facebook ads after i signed that first client and i actually managed
to get them some really great results sure it took me a couple of weeks of learning how to get them
those results but the campaigns did really well and i ended up working with them for almost a year
what i really think would help any of you guys who are just starting out in your agency
to help you through that initial imposter syndrome is understanding the value we can actually bring
to these companies so let's do a quick bit of maps let me get this phone on record let's say
we're working with a dentist okay because the majority of you guys are going to be working
with local businesses when you first start out i wouldn't recommend going into ecommerce okay so
restaurants gyms dentists uh anybody with any kind of lead generation or base service okay so real
estate any service builders contractors the list really is endless it's not a niche video but let's
say we're working with a dentist and they offer invisalign okay this is a brace system okay it's
internationally recognized it's around 4k for this brace so let's say we're starting off on
a small budget of 500 now i'm going to give you some averages on what to charge in a moment but
with this client we've got 500 ad spend per month for this dentist okay now we can get
invisalign leads internationally a high average of around 50 dollars per lead some agencies might be
able to get 20 or 30 dollars some might get 60 we're going to use 50 that's 10 leads 10 leads
on a 4 000 service okay so that's a potential 40 000 here if we closed everyone but realistically
we are just not going to do that the conversion rate is probably going to look something like
25 on people that actually come in and are sold to by the dentist so if we figure out 25
that's 2.5 people we can't have half people so we'll round it down that's two people
for a four thousand dollar service that's eight thousand dollars for this client take away our ad
spend the 7500 take away our service charge which might be another 500 on top of that that's 7 000
operating profit now sure that business has to take away their costs but it's still going to be
massively in profit from our service it's an eight times return on investment for this
business that's where the value is and that is why these clients will spend the amount of money
that we are quoting them for our service because it's an extremely valuable service and once we've
got these results for them once we're not going to spend 500 on the next month we're going to spend a
thousand dollars or maybe two thousand dollars or five thousand dollars and we'll scale up over time
now granted realistically if you're winging it with ads and you're self-taught you're not gonna
get results like that straight away it's a chicken or the egg type situation and that's okay we have
to start somewhere someone asked me this morning what's the best way for me to learn facebook ads
and test out facebook ads before i sign the first client and i said well if you're already taking a
course and you already know what strategies you're going to take the only practice you're going to
get is signing up that first client you can't set up a dummy facebook account and start running ads
to make believe numbers in a make-believe store because it's not real and you don't have real-life
factors coming into play there so you have to sign up your first client and learn on the job like i
did and like 99 of agencies out there do and i'm gonna cut the [ __ ] and air out the elephant in
the room ninety percent of agencies out there the first one or two clients they're probably
not getting any good results for and that's okay because they're learning and as long as they've
done their research they're not just going in completely blind and they're following a strategy
that's been proven to work for the niche that they're working with before them then they're
gonna improve and they're gonna get better they have to start somewhere and that's just
the reality of it now i'm going off tangent here let's go back to pricing you guys want to know
exactly how much you should be charging clients so i'm gonna give you some figures to go away with
an action but it's really important to note that there are so many variables that come into play
when quoting a client i'm going to give you the averages of what you should charge when you're
first starting out but we want to consider how busy this business is how much money they're
making how much they actually can afford and what service we're offering i'm talking specifically
about ads okay if we're offering facebook ads or youtube ads or google ads whatever ad service
you're offering how much we should charge in that instance when we're first starting out so on the
basis of local brick and mortar businesses because that's where we're going to be starting initially
we need that common ground with people you want to charge a maximum of 1 000 or pounds per month
for your service charge okay but you can go down as little as 250 dollars i wouldn't go below that
because you really are devaluing yourself but the key when you're first starting is to not be greedy
you just need that first client what is more valuable than money when you're first starting
as an agency it's case studies it's results it's testimonials because those are the things
we can use and leverage to sign up new clients a testimonial one good testimonial is worth more
than six months on a 1 000 retainer i would take that all day long if i was starting my agency from
scratch so the focus is just getting that business over the line i'm fed up of seeing people out
there being like oh you need to charge a thousand dollars on every single client when you're first
starting it is complete bs the most valuable thing when you're first starting an agency
is testimonials is case studies and results okay prioritize them over money because if
you prioritize money when you're first starting you are going to fail just get results for people
have them shouting about you and that's what's gonna help your business grow
i got to ten thousand dollars a month pretty much all on referrals i got my first few clients and i
was getting referral after referral after referral i didn't have to do outbound sales and so that's
what you want to be able to do as well and the only way we can do that is without being greedy
so a thousand dollars a month maximum but charge as little as 250 get that person over the line
don't just go in with a really cheap price try and go in at the higher level to start off with
and engage the conversation okay let's break that down a little bit further so companies with a high
ticket service or product like dentists they can afford a thousand dollars a month all day long
restaurants on the other side might only be able to afford five 500 small gyms will only be able to
afford 500 okay a chiropractor maybe 500 as well but a hair transplant clinic or an aesthetics
clinic they can afford a thousand dollars so you need to think about how high ticket the services
okay and make sure your pricing that you quote is relative to that now the ad spend that you charge
needs to be the equivalent of at least 100 of your service charge do not fall into the trap
of quoting less for ad budget than service charge because if you quoted a thousand dollar service
charge don't quote 500 ad spend because you need to free x your money before the client even makes
a profit it makes no sense and i'm talking from experience i did this myself my first couple
of clients i was greedy for cash high service charge low ad spend and it was this uphill battle
constantly and i see so many agencies make the same fundamental mistake they are greedy for cash
instead of being greedy for results so if you've got a client on a thousand dollar service charge
500 ad spend my recommendation to you would be take 250 of your own money at that service
charge and put it in the ad spend so you're on 750 750. the ad spend ideally needs to be
a minimum of a hundred percent of the service charge if you can get them to spend more on ads
than your service charge then we're already winning because it's so much easier to get results
because we're dwarfing the service charge so much quicker so just follow that rule for christ's sake
now that's local brick and mortar we also have e-commerce as well which are online businesses
for more established agencies i'll touch on this very briefly but if you want me to create more
in-depth video on e-commerce charging because there's different beasts drop it down uh comment
down below and i can create that in the future with e-commerce the same rule applies for 100 ad
spend equivalent that applies for any industry regardless of where they are or what they're
selling um always make sure it's a minimum 100 equivalent with e-commerce you need way more ad
budget an absolute minimum of a thousand dollars a month don't even entertain anything lower than
that same for your service charge don't entertain anyone who doesn't want to pay a minimum thousand
dollars per month in the ideal world it needs to be 2 000 plus on ad spend starting off with
an e-commerce business though we won't even entertain a conversation with an econ business
unless they're prepared to spend a minimum of two thousand dollars a month in their first month and
then we'll scale them very aggressively after that but econ businesses are for established agencies
once you've got results through local brick and mortar first start there before you even think
about ecom companies if you want me to create a video around ecom charging then i can do so
because we do some pretty amazing things like charging percentages as well so we charge them
a percentage of the amount of money we're actually making them we've had clients pay upwards of fifty
thousand dollars for one single month's commission as an econ client for our established agency the
affluent agency but that's a conversation for another time you want me to talk more about that
drop a comment down below and i will do but for now i just want to finish off with this one point
do not be greedy with your service charge that is the most important thing that's the most important
factor when you're quoting anybody when you're first starting out because testimonials case
studies and results are way more valuable than money when you're first starting out sweet cheers