Comments on: Fee Structures for Internet Marketing Services http://www.audettemedia.com/blog/internet-marketing-fee-structures/ Internet Marketing Excellence Since 1995 Thu, 29 Jul 2010 11:09:57 +0000 http://wordpress.org/?v=2.6.2 By: waqas http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-420 waqas Tue, 14 Oct 2008 04:19:12 +0000 http://www.audettemedia.com/?p=233#comment-420 i agree i agree

]]> By: John Audette http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-419 John Audette Mon, 13 Oct 2008 22:41:54 +0000 http://www.audettemedia.com/?p=233#comment-419 @Tom - You are so right about trust. Trust is the glue that holds together long-term relationships. Good relationships start with at least a modicum of trust - and they grow into great relationships when everyone is loyal to that trust. @Tom - You are so right about trust. Trust is the glue that holds together long-term relationships. Good relationships start with at least a modicum of trust - and they grow into great relationships when everyone is loyal to that trust.

]]> By: Tom Hale http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-418 Tom Hale Mon, 13 Oct 2008 22:32:31 +0000 http://www.audettemedia.com/?p=233#comment-418 My approach is blended. You could say: Faith based billing backed by demonstrable ROI with the best metrics the project can implement. Fees estimated as a percentage of ad buy and refined based on actual labor hours. I work in the small business market. Without a certain amount of trust between me and the client the wheels soon come off anyway. -T My approach is blended.

You could say:

Faith based billing backed by demonstrable ROI with the best metrics the project can implement. Fees estimated as a percentage of ad buy and refined based on actual labor hours.

I work in the small business market. Without a certain amount of trust between me and the client the wheels soon come off anyway.

-T

]]> By: John Audette http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-416 John Audette Mon, 13 Oct 2008 16:31:14 +0000 http://www.audettemedia.com/?p=233#comment-416 @Matt - Thanks for the input. I got the phrase "fast ROI" from a presentation that Sequoia Capital gave to a mandatory meeting of the CEO's of their portfolio companies last week. Extraordinary meeting in my view, considering that Sequoia is one of the smartest group of entrepreneurs on the planet. The meeting was confidential, but a lot of the information has been posted online - the <a href="http://www.slideshare.net/eldon/sequoia-capital-on-startups-and-the-economic-downturn-presentation?type=powerpoint" rel="nofollow">slideshow is here</a>. I don't like the phrase "fast ROI" as it smacks of fast money, but that's not their meaning. What they are telling their CEO's is that they should not spend money on anything that doesn't demonstrate a positive and quick ROI. <a href="http://gigaom.com/2008/10/08/sequoia-rings-the-alarm-bell-silicon-valley-in-trouble" rel="nofollow">Meeting notes here</a>. @Matt - Thanks for the input. I got the phrase “fast ROI” from a presentation that Sequoia Capital gave to a mandatory meeting of the CEO’s of their portfolio companies last week.

Extraordinary meeting in my view, considering that Sequoia is one of the smartest group of entrepreneurs on the planet. The meeting was confidential, but a lot of the information has been posted online - the slideshow is here.

I don’t like the phrase “fast ROI” as it smacks of fast money, but that’s not their meaning. What they are telling their CEO’s is that they should not spend money on anything that doesn’t demonstrate a positive and quick ROI.

Meeting notes here.

]]> By: Matt@Kurb http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-415 Matt@Kurb Mon, 13 Oct 2008 06:19:33 +0000 http://www.audettemedia.com/?p=233#comment-415 Cool post John. Plenty for me to think about and I'm glad I found this blog. Demonstrable fast ROI would be the golden goose. Cool post John. Plenty for me to think about and I’m glad I found this blog. Demonstrable fast ROI would be the golden goose.

]]> By: John Audette http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-414 John Audette Sun, 12 Oct 2008 18:04:25 +0000 http://www.audettemedia.com/?p=233#comment-414 @SEO Blog - That's not faith based, that's performance. A model that I am seriously considering. I'm thinking starting a venture marketing company modeled somewhat after venture capital companies. But instead of providing capital, it will provide interactive marketing services in exchange for a return based on performance. Fast ROI is going to be critically important for all businesses as we move forward in a more challenging economic environment. @SEO Blog - That’s not faith based, that’s performance. A model that I am seriously considering. I’m thinking starting a venture marketing company modeled somewhat after venture capital companies. But instead of providing capital, it will provide interactive marketing services in exchange for a return based on performance. Fast ROI is going to be critically important for all businesses as we move forward in a more challenging economic environment.

]]> By: SEO Blog http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-413 SEO Blog Sun, 12 Oct 2008 07:09:25 +0000 http://www.audettemedia.com/?p=233#comment-413 Faith based performance pay scales have really taken off for myself. I've found a great deal of success with my strategies and the billing format seems to provide clients with what they need and want! I keep it a general rule of thumb to make the client atleast a 150% ROI before asking for a single dime! Faith based performance pay scales have really taken off for myself. I’ve found a great deal of success with my strategies and the billing format seems to provide clients with what they need and want! I keep it a general rule of thumb to make the client atleast a 150% ROI before asking for a single dime!

]]> By: Nick @ Mackerel Media http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-403 Nick @ Mackerel Media Thu, 02 Oct 2008 16:58:12 +0000 http://www.audettemedia.com/?p=233#comment-403 I should clarify - when I say simply "charge a fee", I mean that whilst you may set a time budget internally so that resources are allocated, you don't apply a time calculation to the fee charged to the client. I should clarify - when I say simply “charge a fee”, I mean that whilst you may set a time budget internally so that resources are allocated, you don’t apply a time calculation to the fee charged to the client.

]]> By: Nick @ Mackerel Media http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-402 Nick @ Mackerel Media Thu, 02 Oct 2008 16:48:46 +0000 http://www.audettemedia.com/?p=233#comment-402 I'm with the hour-based billing route at the moment - it gives clients and us sufficient transparency in arrangements and although the upside may be limited, the alternative benefit is that the better job you do, the more demand there is and the more you can charge. I remember a number of years ago that there were web development agencies springing up in London (I'm in Scotland) that worked on a profit or revenue-share basis with their clients. They invested heavily in e-commerce development on behalf of their clients and as it was pre-bubble, they expected to reap enormous rewards. No need to tell you what <i>actually</i> happened! Another way to approach billing is simply to charge a fee for your services, with no defined metric on it. If the client likes the amount you're charging, you can stand to make significant profits. I’m with the hour-based billing route at the moment - it gives clients and us sufficient transparency in arrangements and although the upside may be limited, the alternative benefit is that the better job you do, the more demand there is and the more you can charge.

I remember a number of years ago that there were web development agencies springing up in London (I’m in Scotland) that worked on a profit or revenue-share basis with their clients. They invested heavily in e-commerce development on behalf of their clients and as it was pre-bubble, they expected to reap enormous rewards. No need to tell you what actually happened!

Another way to approach billing is simply to charge a fee for your services, with no defined metric on it. If the client likes the amount you’re charging, you can stand to make significant profits.

]]> By: Al Toman http://www.audettemedia.com/blog/internet-marketing-fee-structures/#comment-401 Al Toman Wed, 01 Oct 2008 17:32:18 +0000 http://www.audettemedia.com/?p=233#comment-401 I bill by contract. I determine the project, divide it into phases. Each phase is associated with a cost. The client MUST remit the phase payment prior to any work being done. Once payment is received the phase is completed. The client must then sign off on it, then, remit the next phase payment. The contract permits both parties to know the cost of the project prior to it becoming a project. If I under estimate, my bad. Client can add on to the contract amount by contract amendment which is very typical. The contract outlines the exact details of the project. There may be a downside to this method, but it is working well for me up to this point. I bill by contract. I determine the project, divide it into phases. Each phase is associated with a cost. The client MUST remit the phase payment prior to any work being done. Once payment is received the phase is completed. The client must then sign off on it, then, remit the next phase payment.
The contract permits both parties to know the cost of the project prior to it becoming a project. If I under estimate, my bad. Client can add on to the contract amount by contract amendment which is very typical.
The contract outlines the exact details of the project.
There may be a downside to this method, but it is working well for me up to this point.

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