Hi there, after running a generalist digital marketing agency for some years, I've decided to niche down to email marketing for e-commerce businesses (and retargeting ads). My offer would include setting up / optimizing all the main automation sequences necessary, as well as broadcast campaigns and 3 newsletters per week. I'm planning to target established e-com stores that are already generating a minimum of $10K per month. However, I really don't know what to charge them. I've taken all the courses and so I know all the steps in theory. But I don't have actual experience or numbers to back up my offer. I can only assume that my work will result in about 15-20% extra revenue - but that's just an estimation that could be right or wrong. Any advice?
The easiest pitch would be to have a base retainer (say 1000$ a month) and then % of revenue increase since the baseline.
It makes it easy for them and is far compelling cause you are now a revenue cost rather than a recurring sunk cost.
The typical ecomm transaction has 10-12% margins? And then CAC etc has to be amortized. So you'll either have to pitch fora tiny sliver of topline or a % of profits - as that also aligns outcomes where the consultant just doesnt run promotions giving away all the margins and think short term.
Given this math, id say 10K a month revenue seems a bit early. Might want to look at ecomm stores that are a bit further along the way, or use pre-recorded content on subscription to tackle this early market (as it potentially) can become your funnel.
Answered 4 years ago
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