What is a marketing retainer?
A marketing retainer is a fixed fee that a business pays to a marketing agency on a regular basis (usually monthly) in exchange for ongoing marketing services.
Benefits of a Retainer Agreement
This arrangement provides several advantages for both the business and the agency.
- Consistency and reliability
- Predictable budgeting
- Long-term strategy
- Dedicated attention
- Flexibility
Typical Services Included in a Marketing Retainer
- Strategy
- Competitor Analysis
- Industry Research
- Content Development
- SEO
- Social Media
- Graphic Design
- Email Marketing
- Website Updates
- Analytics & Reporting
The Cost Factor
When hiring an agency on a retainer, you need to consider the payroll, taxes, overhead and HR resources the agency takes on by offering the retainer. Most retainer agreements equate to multiple team members from the agency working on your account. Aside from the fees, they also incur hard costs associated with software and tools the team uses to execute the deliverables. (ie. Supermetrics, Hootsuite, Semrush)
When is it a good idea to hire a marketing agency on a retainer?
- You know the areas of service you need involve multiple areas of expertise.
- The service you need is expected to be needed on a regular basis.
- You prefer to contact the services vs acquiring the overhead for 3-5 positions internally.
How much time goes into the work and what is the level of quality?
Agencies need to determine what type of tasks will be completed for each client (they are all different) and how long it will take. That needs to be compared to the quality of service.
What level of marketing expertise does the client bring to the table?
Different clients have different levels of skill related to marketing. It’s great to be able to educate, but that could be a sign they are not meeting the agency halfway and the retainer might be causing the agency to lose money through all the extra communication time needed to explain, train and answer questions.
When is the right time to review the retainer fee?
Some clients require much more effort to see results. When assessing the value, consider the complexity. Even though agency rates don’t change from month to month, the level of expertise fluctuates. For example, analytics and tracking setup is going to be a higher rate than creating a graphic for an ad.
Factor in Employees
What is the typical team assigned to a client? In a typical marketing retainer agreement, a dedicated team assigned to a client usually comprises a mix of 3 to 5 professionals. This team size allows for a diverse set of skills and expertise, ensuring comprehensive service coverage.
Consider the ROI
In addition to Return on Investment (ROI), businesses can determine the value of a marketing agency retainer through several other metrics and considerations:
- Brand Awareness and Recognition
- Customer Acquisition and Retention
- Consistency of Workflow
- Access to Expertise & Tools
- Cost-Effectiveness (Using an agency vs hiring in-house staff.)
By evaluating these additional factors, businesses can fully understand the benefits of a marketing agency retainer. This ensures they make well-informed decisions that align with their strategic goals.