When running a digital marketing agency, one of the most important decisions is determining how to price your services. For agencies looking to expand their service offerings without the overhead of hiring additional staff, a white-label partnership can be an attractive solution. White-labeling allows you to outsource SEO, PPC, and social media management to third-party providers who deliver the work under your brand name. However, pricing these services correctly is critical for maintaining profitability while offering competitive rates to your clients.
In this article, we’ll explore how to set up pricing for SEO, PPC, and social media management within a white-label partnership, along with key factors to consider, strategies for determining your rates, and common pricing models.
1. Understanding White Label Partnerships
Before diving into pricing strategies, it’s important to understand what a white-label partnership entails. In simple terms, a white label digital agency provides services that you can resell as your own without their brand being visible to your clients. This allows agencies to offer a wide range of services without needing to build internal teams or expertise in every area.
For example, if you run a digital marketing agency that doesn’t have SEO specialists on staff, you can partner with a white label SEO provider. The provider will do all the work, and you will sell and deliver the results to your clients under your agency’s brand.
2. Factors to Consider When Pricing White-Label Services
The price you charge clients for white label services depends on several factors. These considerations will help you determine a fair and profitable pricing structure.
a. Service Complexity and Scope
The complexity of the service plays a significant role in pricing. SEO, PPC, and social media campaigns vary widely in scope. For instance:
- SEO could range from basic on-page optimization to complex, multi-tier strategies involving content creation, link-building, and technical audits.
- PPC services can involve simple Google Ads campaigns or more sophisticated multi-channel paid media strategies, including display ads, retargeting, and analytics reporting.
- Social media can include basic account management, content creation, engagement, and advanced strategy involving paid social ads, influencer marketing, and performance tracking.
The more complex and time-consuming the service, the higher the price.
b. Volume of Work
The size of the client’s business and the amount of work involved in delivering the service also impact pricing. If you’re managing campaigns for a large enterprise with multiple social media accounts or high-budget PPC campaigns, the time and resources required will naturally be higher.
c. Provider’s Pricing Structure
The white-label service provider will likely have its own pricing structure, which can vary based on the level of service, geographic location, and industry expertise. Understanding how much they charge for their services helps you mark up the price accordingly while maintaining a healthy margin.
d. Your Agency’s Overheads and Margins
When pricing, don’t forget to account for your own overheads, such as operational costs, account management time, and project oversight. Additionally, you need to factor in a margin that ensures profitability. This margin can vary based on the competitiveness of the market and the level of exclusivity you provide your clients.
3. Pricing Models for White Label SEO, PPC, and Social Media
There are various pricing models that you can use to charge your clients for white label services. The key is to align your pricing structure with the value provided and the service complexity.
a. Hourly Rates
Charging by the hour is a straightforward pricing model. It’s typically used for tasks that have an uncertain duration or when you need to deliver flexible solutions. For example, if a client needs ad hoc social media consulting or a quick SEO audit, hourly pricing works well.
- Example: SEO consultations or social media account assessments might be billed at $50–$150 per hour, depending on the provider’s expertise and the level of the service.
Pros:
- Transparent, clients know they are paying for actual time spent.
- Works well for smaller tasks or irregular needs.
Cons:
- Difficult to predict final costs.
- Less attractive for clients who want predictable budgets.
b. Flat Monthly Fees
A flat monthly fee is one of the most common pricing models for white label services. With this model, you agree to provide ongoing services at a set price each month. This pricing model is particularly popular for SEO and social media marketing, where consistent work is required over time.
- SEO: A basic monthly SEO service might cost anywhere from $500 to $5,000 per month, depending on the scope of services.
- PPC: For PPC management, agencies typically charge a percentage of the ad spend (usually 10-20%) in addition to a flat fee for account management.
- Social Media: Monthly fees for social media management can range from $1,000 to $10,000 depending on the number of platforms, the amount of content, and the complexity of the campaign.
Pros:
- Predictable revenue for both you and the client.
- Easier for clients to budget.
Cons:
- Can be challenging to justify a flat fee for clients who expect frequent results or instant ROI.
c. Performance Based Pricing
Performance based pricing links your agency’s earnings to the results you deliver for your clients. For example, you could charge a base fee for ongoing services and then add a performance bonus based on reaching certain milestones (like increasing organic traffic or achieving specific sales goals via PPC ads).
- SEO: You might charge a base fee for the SEO work, plus an additional bonus for ranking higher for targeted keywords.
- PPC: For PPC, you could set a commission based on the ROI of the campaign, such as a percentage of the total sales generated from ads.
- Social Media: Performance bonuses could be tied to increasing followers, engagement rates, or conversion rates from social media ads.
Pros:
- Highly attractive to clients because they only pay for results.
- Can be highly profitable if you deliver exceptional outcomes.
Cons:
- Harder to predict revenue.
- Requires careful monitoring and tracking of performance metrics.
d. Project-Based Pricing
Project-based pricing is suitable for one-time services or campaigns, such as a website overhaul or a short-term social media campaign. With this model, you quote a fixed price for a specific project or campaign that has a clear start and end date.
- SEO: A one-time SEO audit or website optimization project might cost $1,000–$10,000 depending on the site’s size and the scope of work.
- PPC: A special PPC campaign for a product launch or seasonal promotion might cost anywhere from $2,000 to $20,000.
- Social Media: For a short-term social media campaign, such as an event promotion, you could charge a fixed fee based on the deliverables.
Pros:
- Clear budget for clients.
- Suitable for one-off tasks or campaigns.
Cons:
- No ongoing revenue from the same client.
- Risk of underpricing if scope creeps beyond initial estimates.
4. How to Mark Up White Label Services
Once you’ve determined the costs from your white label service provider, you need to decide on a markup. While there’s no one-size-fits-all answer, here are some general guidelines:
SEO Services: A typical markup for SEO services can range from 30% to 100%, depending on the complexity of the work. For example, if a provider charges $1,500 per month for SEO services, you might charge your client anywhere from $2,000 to $3,000 per month.
PPC Management: If your white-label provider charges a fixed management fee or a percentage of ad spend, mark it up by 20-50%. For instance, if the provider charges 10% of the ad spend and you want to add a 20% markup, you would charge your client 12% of the ad spend.
Social Media Management: With social media services, markups can range from 40% to 100%, especially if you’re bundling several services (content creation, community management, paid ads). If your provider charges $2,000 for comprehensive social media services, you could charge your client between $2,800 and $4,000.
5. Final Thoughts on Pricing White Label Services
Setting the right prices for white-label SEO, PPC marketing agency, and social media services is crucial for building a profitable business while maintaining client satisfaction. Take the time to evaluate your service provider’s pricing, your overhead costs, and your desired profit margin. Consider using a flat fee or hourly rate for consistent services, or explore performance-based pricing for campaigns where results are more tangible.
Remember, the key to success in white-label partnerships is providing value to your clients while ensuring that your agency can sustain and grow. By considering all the factors discussed and choosing the right pricing model, you can build long-lasting and profitable relationships with both your clients and service providers.
Conclusion
Pricing white-label services such as SEO, PPC, and social media management is a crucial element of a successful partnership between digital marketing agencies and third-party providers. Setting the right price point requires a clear understanding of the service’s complexity, the work involved, and the margins you need to sustain your business.
Whether you choose an hourly rate, a flat monthly fee, performance-based pricing, or project-based pricing, each model has its benefits and drawbacks. The key is to align your pricing structure with both the value you provide to your clients and the cost structure of your white-label provider. By considering factors like service scope, client volume, and your own operational costs, you can find a balanced approach that ensures profitability while offering competitive rates.
