It's 2023 and the subscription economy is within full swing. Several years ago, the old saying was, “There's an application for that.” Today it's, “There's a regular membership for that.”
According to Forbes Magazine, the subscription e-commerce market generated a lot more than $2.6 billion in sales in 2023. You can get a subscription to just about all you could ever want-software, clothes, makeup, toys, and even internet marketing services.
Digital marketing services? Yes, that's right. For a recurring monthly fee, you are able to hire a marketing agency to perform marketing services for you personally. It may sound easy because it takes the guesswork out of your marketing costs, however it might be too good to be true.
Why Are Marketing Agencies
Moving to the Subscription Model?
Marketing agencies which have switched to some
subscription-based model probably have trouble collecting fees from
project-based clients. They've also realized the amount of money they are able to make
billing by the hour or day is restricted. The bottom line is, they need recurring
revenue, and subscriptions can make that the reality.
Subscription Marketing Services
Aren't the Standard Model
Subscription services are relatively new towards the marketing industry
and aren't the conventional.
When you hire a traditional full-service marketing agency, you receive several advantages over a subscription service. Based on Active Web Group, the largest benefit is the fact that you will be provided with a merchant account manager who knows both you and your business extremely well.
If you're serious about growing your company, talking to random representatives when you really need support won't cut it. A personal account manager is backed with a team of seasoned professionals employed in tandem to assist your company achieve its objectives.
RELATED ARTICLE: THE MARKETERS’ GUIDE TO GEOFENCING
With an electronic marketing agency using traditional billing, your projects will most likely incur extra hours. On the other hand, you will be billed fairly and just for actual work the agency performed. In short, your cost is likely to be less than when you pay a premium for any subscription.
Subscription Models Mostly
Help the Company, Not the Client
Marketing plans which are subscription-based are only for creating predictable revenue for the agency. Subscriptions generate more revenue for the agency. But what about you because the client?
Does a regular monthly fee ensure the agency will work a particular quantity of hours? Will you, as the client, get credit for unworked hours? Will the agency even keep a record? These questions are essential to answer before you sign a contract.
Generally speaking, monthly subscriptions are inflated to cover extra work. That's precisely how it works. It is because there is no way a digital marketing agency would risk pricing their dues at cost.
For this reason, clients don't understand they're paying far more per hour for marketing services. All they are fully aware is that they don't have to worry about surprise fees. But doesn't it be preferable to pay more than any project estimate in case your cost is cheaper overall?
Subscriptions Open the Door to Low-Quality Services
Also, be mindful of subscription-based marketing agencies that provide the same cookie-cutter services to any or all clients regardless of clients’ unique needs. What’s more, the cost of these services is generally less than fees you'd pay to reputable agencies. That’s because the quality and value of the services are lower.
Is a Subscription exactly the same
like a Retainer?
While there are similarities, there is a difference between a subscription and a retainer. Although both need a monthly payment, a retainer almost always is an agreement made after you've launched an advertising and marketing campaign.
With an advertising and marketing agency on retainer, you're paying a monthly fee for long-term maintenance services based on your contract. For instance, your monthly retainer fee might cover continued e-mail marketing services and PPC ad management for the next 6 months.
RELATED ARTICLE: KEEP YOUR EMAIL CAMPAIGN From the SPAM FOLDERS IN 4 EASY STEPS
The work will look different from month to month, and paying the retainer fee guarantees the company will perform certain duties based on the agreement.
For instance, email marketing is an ongoing process requiring monthly maintenance. This month, your marketing agency might spend five hours integrating your email marketing with social networking. Next month, they may spend 3 hours checking along with the data to determine the outcomes.
Either way, you pay the same rate per month because you've old rapport with the agency and want these to continue to perform the meet your needs.
Subscription Fever Is here now
to Stay
When a trend hits the digital world, it always sticks around for a while. Subscription-based billing isn't any exception. The subscription model isn't necessarily bad for marketing. However, you need to agree to it with caution and just whether it benefits you around it benefits the marketing agency.
