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5-30-2019
Sam Maher

Hey Nick, Thanks for posting this. I've been going over this in depth to try to get a better handle on how we are scoping out client projects but I've been having trouble replicating some of your numbers. You mention Client Retainer COGS hours as being 20/mo for the project but then list 30 total hours of work time. Also, your COGS Cost Total is listed as $3,474.73 but when adding the numbers above I get $4,784.70. Using your blended rate for $5000, shouldn't the client be receiving more along the lines of 22.5 hours of work? Last, how do your labor costs translate to your rates? Thanks again.

3-11-2019
Martin

This is really helpful... Thanks for sharing Nick

2-25-2019
Relevance SEO Top 10 – 25th February 2019 - Relevance

[…] 5. Our Minimum Engagement is $30k – Here’s Why […]

2-21-2019
Vladimir

Nick, very interesting article, and those principles apply well for a software service business. But I can not figure out how did you come up with a total in table "Client Retainer COGS" - I can not come up with a total whatever I add up :). What is "Internal meetings - 6 - $2,386.68"? That's 397.78 an hour? Is it a total duration of meeting involving several people? In that case it would be clearer if you put all man-hours involved. Also why do not you "externalise" your meeting cost for your clients? Does it mean that clients would better digest that your charge out rate is 10x of pay rate, rather then hearing that so many hours are taken by communications? I am very curious.

2019-02-28 15:03:10
Nick Eubanks

Hey Vladimir - More than happy to walk you through how I'm getting to the numbers for the meeting costs. So for our average client project team, if you take the hourly cost of every person on that team, and add them together, the total internal cost is $397.78 per hour. This is based on adding in the cost of 1 hour of time for each of the project team members (Director, Client Strategist, Outreach Strategist, Content Strategist, Digital Designer, SEO Strategist, and Web Developer) which you then multiply by 6. Those 6 hours represent an average of 1-2 project meetings per week. When this is discussed with clients during the sales process it actually tends to create more trust and confidence since the clients know they're getting the full attention of their project team on a weekly basis.

2-21-2019
Samuel Lavoie

Thank you for this transparency. I share the needs for better pricing of most SEO/Content Strategy agency's work as being strategic and high impact, thus commanding premium engagement fees.

2-20-2019
YoastCon Overshadowed by Twitter Storm: Joost de Valk

[…] John’s Tip: Our Minimum Engagement is $30k: […]

2-20-2019
Jerry Dornbach

Great article Nick. Thanks for sharing this info!

2019-02-28 15:03:38
Nick Eubanks

Thanks so much for reading Jerry!

2-17-2019
#370 WP-Tonic Round-Table Show on Friday 15th at 8:30am PST

[…] John’s Tip: Our Minimum Engagement is $30k: […]

2-14-2019
Dylan

Thanks for sharing Nick. I'm in the first week of soft-launching a new agency.. it's going great so far.. but this really puts a lot into perspective. Cheers!

2019-02-28 15:04:34
Nick Eubanks

My pleasure Dylan - that's the whole point; to help agencies realize that pricing needs to be an "all things considered" activity to support long-term, sustainable growth.

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