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Retainer vs Commission: Choosing the Right Agency Pricing Model for Your Business

When it comes to digital marketing, there are many options for businesses to choose from, but two of the most popular are retainers and commission-based pricing models. Both can deliver great results, but the choice between them depends on the unique needs and goals of the business.

Retainer-based pricing is an excellent option for businesses that need consistent, ongoing digital marketing assistance. This model offers stability and predictability, making it easy for businesses to budget for their marketing expenses. Additionally, retainers often lead to a long-term relationship between the business and the agency, which results in better communication and understanding of the business and more effective campaigns. The downside to retainers is that it may not be the best fit for businesses with seasonal or fluctuating marketing needs, as they may end up paying for services they don't need.

Commission-based pricing, on the other hand, is perfect for businesses that are looking for a more results-driven approach. With commission-based pricing, the agency charges a percentage of the media budget for the campaigns they manage for the business. This aligns the interests of the agency and the business, as the agency will work hard to run effective campaigns that drive results and increase their earning potential. Commission-based pricing is also a flexible option for businesses with varying marketing needs. However, the downside is that it can be harder to predict expenses.

One unique aspect of these pricing models is how they can be combined to benefit from the strengths of each. For example, some agency may offer a hybrid model, where retainers cover a base service, and additional services or scope increases are charged on a commission-based model.

Ultimately, the key to success is finding the right balance for your business. Retainers provide predictability and stability, while commission models align the interests of the client and agency to drive results. Consider your budget, your marketing needs, and your goals, and work with an agency that can deliver results and understand your unique business. Contact or to find out how Planit's pricing could suit your business needs.


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