hourly rates Archives by Mark Murnahan

Social Media Marketing Pricing Like Cab Rides by the Pothole

I find that a lot of people are curious about breaking down marketing services like social media and search engine optimization to an hourly rate. I know this, because a lot of people search the Internet for pricing information and find me.

Silly me, I don’t have a standard rate sheet, but I will tell you why. I don’t know how much it will cost to perform SEO or social media marketing until I know what a company wants and needs from the services.

I understand the concern of marketing cost. After all, the reason for a company to spend money on marketing is to achieve a higher profit. This means the cost of marketing will be a factor. However, it is too common that the only set of numbers a client will clearly understand is the outgoing money, while they ignore the more important numbers such as accurate projections, goals, and increased profit.

The cost of marketing is not the same for any two projects, because the associated tasks are as different as the company itself. More importantly, marketing is something which spans the life of a company, and not just a set of tasks that are finished in a set number of hours. If you shop for marketing by seeking to buy a set of tasks, then you are essentially dictating a job, rather than letting the professional do the work they are trained to perform.

Reasons Marketing Cost Varies, and Menu Pricing Fails

Menu style pricing works great for some marketers, but it can create a huge disaster for the client. I don’t have time to list all the reasons the cost of marketing can vary widely, and you don’t have the time to read that list. I’ll give you a few points to consider.

Some companies will have well-formed projections of their market potential, and some will have already done the research to know how many people they must reach to achieve their goals. Some will have a targeted marketing strategy already prepared, and most will need help improving it. Some will have already performed A/B testing to determine their optimal conversion rate. Some will have creative ideas for their marketing, and even have talented people to help implement it.

Some companies have all of these things in place, but this is often not the case. Instead, I find that they come to me asking me to do whatever it is I do, without really even knowing what needs to be done. Then, without understanding the tasks, or reasons for them, they want a shortcut answer to “How much does it cost?“

The question of how much it will cost, without a clear idea of what is needed, or what will actually improve your return on investment is an easy way to waste money and time doing the wrong things. It is like shopping for a dentist by seeking the cheapest price for a filling while what you really need is a root canal. Worse yet, it is like telling the dentist how to perform the filling, and asking for a discount because you used less Novocaine. With that kind of thinking, should there really be any wonder why most marketing fails?

Dictating Social Media Tasks is Like Telling Your Cab Driver to Swerve for Giraffes

Would You Buy a Cab Ride Priced by the Pothole?

It makes me wonder how many companies pay their building lease by the hour. What if they booked flights by the mile? Would you pay extra to fly around a storm? Would you tell the pilot which way to fly, or would you rely on the professional?

Some things just don’t sensibly calculate in the terms we think they should, or wish they would. It is not always because somebody is trying to hide an obscene profit. Many times, it is because the cost would be outrageously high to account for each item granularly. Imagine trying to account for a cab ride that includes a charge for every time the cab hits a pothole and gets a little closer to needing a new set of tires or shocks. Should stopping for traffic signals cost more to account for the brake wear, or should we burn more gas and take the longer route to avoid them?

The challenge for a lot of people to realize is that the cost of any product or service will be built into the price. The cab driver will need to receive more money for his job than what it cost him, so he sets his pricing and maintains his car to optimize his earnings. If you asked him to itemize each thing, you would have to pay him for that extra time he is doing accounting instead of driving his cab. If your driver lets you blindfold him and direct him how to drive, you are both foolish.

My point here is to express how easy it is to make mistakes when shopping for and comparing services in an unfamiliar industry. In the industry of online marketing, if you pay for somebody to account for every hour, you will likely pay a lot more for the extra accounting.

Then again, I guess I shouldn’t complain if somebody wants to pay me for the hours I lie in bed at night staring at the ceiling as I ponder how I can make them more successful tomorrow than yesterday.

Related Articles:

Photo Credits:
Costa Rican Pot Hole! by Arturo Sotillo via Flickr
Cone & Pot hole by oknidius via Flickr

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Hourly Rate for Setting Up Social Media Profiles?!

My blog is often inspired by things that happen in my real life. It is easier to tell something from experience than to make things up. Sometimes those things which happen in real life make me want to scream! I am going to share a good example.

I received a call from a friend yesterday. My friend was seeking some advice about social media, so I was delighted to provide my assistance. The question created one of those moments when I want to scream, pull my hair out, and choke people. My friend wanted to know how to set an hourly price to set up social media profiles for companies.

The question was important to her, because an advertising agency she works with had come to her asking for an hourly rate to help set up client’s accounts on Facebook, Twitter, and etcetera. She was caught off guard by their request, and so she asked me for an opinion of what it is worth.

My friend is a relatively popular blogger, and avid user of social media, but she is not really in the business of social media marketing. Strangely enough, they thought she could help. Since she does not want to turn away business, I feel for her dilemma. In this case, I suggested that providing a service that creates a zero net gain, or even a loss to the client is a good reason to either further educate the client, if they are open to learning, or to walk away from the offer.

I suggested that an hourly rate for setting up social media profiles, as with any other marketing or public relations service, should have a basis in the value to the client. In this case, the value would be minuscule, if not negative, and I explained some reasons this is the case. Of course, it began with the logic that any company who needs somebody just to set up their profiles is not likely to use those profiles for any significant benefit.

Creating social media profiles has extremely low value without a strategy, and without the manpower and mindpower to use them well. If they had that manpower, and more importantly, the mindpower, they wouldn’t need my friend at all. It all got me to thinking that it is like a dog chasing a train. What will the dog do if he catches it? The dog doesn’t know, and so the dog will not get much benefit from the chase.

I want to tell you a couple reasons this is a formula for failure.

Social Media Profiles Do Not Provide Value!

I understand that this may not make perfect sense to everybody, but I am going to try to make this easy. Sure, there are a lot of people who do not know how to get their name on Facebook, or how to create a Twitter username. My mother would not have a Facebook account if I had not set it up for her. My mother is not running a business and trying to promote her name, either.

Think for a moment … If my mother was in business, would it make sense to have somebody set up her account just so she could say “I’m on Facebook and Twitter”? What good is that? Is it so that people who already know who she is could magically flood her with new business? Why would they do that? Let me tell you the truth about this … They won’t!

The value of social media comes when you actually give people a reason to chose your company over the squillion other options out there in the marketplace. If you don’t have a clear reason for people to choose you over a competitor, or to recommend you to their friends because your company is awesome, what is the point? Is it the visibility that is so enticing? I want to assure you that there are millions of visible people who are failing in business. Having a social media profile is not going to make you more successful, and is very unlikely, in itself, to make you more visible.

A lot of people obviously do not yet understand that social media profiles are not going to spew crude oil or reveal a hidden gold mine. Perhaps everybody around you says “You have to be on Facebook” or “There are people making tons of money on Twitter.” The thing they don’t tell you, and probably do not realize, is that social media is not like a Hollywood “Field of Dreams” method for easy success.

This mentality is something I really try hard to understand, and I even try to be compassionate and patient about. The challenge is that when I explain it to people with solid proof, but they still have to learn things the hard way, I end up feeling bad for not having the strength to help them. That is crazy, right? I should not feel guilty for other people’s unwillingness to believe the truth, but I still do.

What About the SEO Value of Social Media Profiles

A lot of people seem to be convinced that there will be a big SEO (search engine optimization) benefit by having a lot of social media profiles. Social media can have an amazing impact on search engine rankings, but it is not why some people think, or hope, or would ask you to believe. The benefit comes when social media is used well, and more of the right people learn about your offerings and share it across their networks and link to your website from other places, such as their blogs and websites.

I understand how the false notion can seem almost logical, because each of those social media profiles will have a link to their website, and more links are a good thing.

There really is a lot of SEO value in social media, but it takes more than just setting up unused profiles. Otherwise we would all be in a race to have the most social media accounts. Some people are, but not the wise ones … not the informed ones. If you ever actually thought that the SEO comes from unused and unknown profiles, think again! Of course, most of the people seeking to pay for such a service would never take the time to read and learn about this, but for your amusement, I offer you some articles on the matter as follows:

100 Social Media Profiles or 1,000 … How Much Do You Want to Waste?

There is a constant pipeline filled with desperate companies hoping and begging for a quick and easy fix to increasing their business’ profit. However, with each company that sets up their social media profiles and endures the failure of short-sighted thinking, comes dozens of their friends and colleagues who will learn from their failure. This means that the pipeline will eventually slow down, and people will have to start thinking before they earn.

When Marketers Sell Negative Value, They Destroy Their Own Market

There is a rule in marketing that a lot of people try to overlook, but it is to their eventual regret. Regardless of the client’s request, it is the duty of a marketing professional to be sure that the client receives more value from the relationship than its cost. This goes for advertising agencies, independent marketing consultants, and in-house marketing departments.

The rule works like this: If the client / company receives less value, in the way of increased business, than the cost of the marketing efforts, it is not sustainable! Trying to work around this rule is like rubbing a lamp and hoping that a money genie will somehow magically come and make up for the screwups.

I realize that the conventional thinking is to give the client what they ask for, and to take their money. I see that as a huge mistake, and proof of a marketer who does not adhere to the same standards they expect of their clients. Good marketing consultants help clients to maintain their marketability and to avoid taking hazardous shortcuts. If the consultant just takes the money and gives a client what they ask for without questioning it, they are not doing their job.

As long as people are set on believing the myths of social media rather than the truth, they may as well say a toast to their own failure.

My Answer to This Question

My answer, if somebody asked me how much it would cost to set up their social media profiles would be something like this:

It will cost a bare minimum of $5,000 per month, and quite easily over $25,000. It will come with a whole lot of market research, strategy, implementation, and a well-forecasted return on investment. That means it will pay you a lot more than you pay me, but that is only if I believe in your company enough to hang my reputation on it. That does not happen with companies who are resigned to believing that simply “being on social media” will increase their profit. Thank you, but no thank you.

If you run your business by placing cost above value, you are making a big mistake. Instead of pouting about how much a successful marketing campaign will cost, it is better to focus on how much it pays. Then the more important factor is how to get your hands on the money it will take to achieve the results you are after.

Related Articles:
Yes, I put these here for you to read. I think they can help to emphasize why simply setting up social media profiles without a good strategy is a waste of time and money. You already have an idea whether you can afford me or not, so don’t worry … I am not selling you anything, and my prices will not go down just because you read more of my blog. Enjoy!

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SEO and Web Development Hourly Rates

Hourly rates for SEO (search engine optimization) and Web development are confusing. As a Web developer and SEO, I am very often asked to produce a Website development quote, without the client giving all of the facts. The most important thing to remember is that there is no apples-to-apples comparison.

Website Development Hourly Rates

When you compare the hourly rates of two different Website developers or SEOs, you are really only looking at a fraction of the picture. If “Web Developer A” charges $85 per hour, and “Web Developer B” charges $150 per hour, which one is a better deal? There is a missing variable in how much and how well either of them can produce the results. If “Web Developer B” has a decade of experience and can finish the same task in half of the time, “Web Developer A’s” hourly rate just became $170 per hour ($85*2).

Another strong factor is that although there are standards for Web programming, there are many “correct” ways to produce a project, and usually the “correctness” will come in different degrees. This requires a question of how correct you want it. Two Web developers will likely never produce the exact same results. Thus, the comparison of hourly rates is already flawed.

SEO Hourly Rates

When it comes to SEO, many of the tasks are even less defined than Web development. Determining the best SEO between “SEO A” and “SEO B” it is like comparing two brains, which stumps even the most brilliant Neurosurgeons. There are many skills that we share, but there are also many varying opinions on the best practices. There is only one number one position in each search engine for a given keyword or keyword phrase. That is the goal of the SEO, but the methods used to get there often vary greatly between SEOs.

Reduce Hourly Rate Confusion

Perhaps the most challenging and confusing thing about shopping for Website development or SEO is how much a Website should cost. As I have strongly suggested before, it is best to set a budget. Here is a clip from another of my blog posts:

“Hiding your expected budget is like going to a realtor and saying that you want to buy a house and hiding your budget. If they do not know your budget, they can show you homes all day but you will both be spinning your wheels and never get anywhere.”

When a Web developer or SEO provides a proposal based on only a portion of the client’s objectives, they will always be wrong. I can appreciate the notion of “shopping around”, but to shop without a budget serves nobody at all, and may land you with “Web Developer A” who can potentially cost you more. When it comes to shopping for SEO services, the largest cost is often in the cost of lost opportunities.

Getting the Right Cost Quote

I have produced quotes to shoppers who simply refused to give me the whole picture, only to have them compliment me greatly but say that they believe I am “out of their league”. The fact is that I write quotes ranging from a few thousand dollars on up to many tens of thousands of dollars. It is always based on the information I am given. No two companies place the same importance on Internet marketing, thus, their needs and expectations of both performance and cost will always be different. Without clarifying the needs and expectations for both parties, nobody wins.

How Much Does a Website Cost?

“How much does a Website cost?” is very often the first question I hear from a prospective client. I have answered this question in so many ways over the last decade that I get a chuckle remembering some of my answers.

If price was truly the primary concern, every Website would be free. A quick Google for “free website” returns well into the hundreds of millions in results. There is surely a reason that I still have a job. So why do so many people still ask me the question: “How much does a Website cost?”

Whether you are a prospective Website purchaser or a Website developer, an answer for the question of how much a Website does or should cost is just a Google away. If you Google “How much does a Website cost?“, you will find that the query will return tens of millions of results. With this many people either asking the question or offering their answer, the question becomes very confusing. So what is the missing link?

Fortunately for you, I have your answer, and I will tell you how much a Website should cost. My answer may not be exactly what you want, but if you will take just a few minutes to read this article, I believe I can save you a lot of headache and help to clarify this sensitive topic. What I hope you will get from this are the matters that lie beneath this question.

I did not lose you yet, so clearly you either have a reason to know the real cost of a Website, or want to know how to answer this question for your clients.

Website Developer vs. Website Purchaser

We do not have to be enemies. When people ask how much their Website will cost, it is easy to let the whole relationship go sour and take on a feeling of haggling at a used car lot. For just a moment, let’s try to look at this from the two respective points of view.

How Much Does a Website Cost?: The Client’s Viewpoint

I am a Website developer and search engine optimization guy, so I am trying to keep bias to a minimum, but I think I get it. If I am even partially correct, please give your comments below.

As a prospective customer, it is very reasonable to want to know how much something will cost. A very common view of the value of something is how much somebody is charging for it … the price tag is what determines its value. When there is not a set price tag, it is easy to be a bit skeptical about it, and to question the methods or motives of the seller. Certainly, most of the things you shop for will have a price tag. There are not a whole lot of things for sale that do not have a defined cost, so it is not unreasonable to ask how much your project will cost. Skepticism is the easiest defense, so it makes sense to keep pressing for the answer.

I believe that the legitimate question of cost is placed first for many reasons. Some of these are as follows:

The client wants to know “Are you out of my league?” or “Can I afford your services?”
The client wants to have a ballpark idea of the cost to expect, which is very reasonable.
The client has already asked around and has an idea in mind, and wants to compare.
It is the first thing on their mind, and the best ice breaker.
They just want a “simple Website” and it should be easy to price.

Addressing these from top to bottom, I would suggest these points to consider.

Are you out of my league?: I find that most people looking for a Website can afford most developers. The question really becomes how much of their time you can afford. Generally, just a little bit of a good developer’s time is worth much more than a lot of a bad developer’s time. There is not much room for error in a competitive market, and avoiding errors is imperative.

Ballpark Website cost: Seeking a “ballpark” idea of cost seems reasonable, but there are many ballparks to consider. Playing fields vary greatly, and Comiskey Park is a lot different from a neighborhood sandlot. Connecting the analogy to you, consider Comiskey to be reaching a global audience and filling the bleachers, and the sandlot a way to tell your friends and family about yourself on your new Website.

Some developers will have a strict minimum project, but other developers are capable and willing to help you play ball on either field. The latter is often your best asset, so you should hear them out.

Shopping around for rates: This is a reasonable reaction to any market. A reasonable skepticism should be held while hiring any professional. The unfortunate challenge here is that all things are not equal. In fact, nothing is equal here at all. The same cost will produce different results with different developers. If any two Websites were created equal, there would be two number one positions in Google. If any two developers were created the same, somebody is cloning more than just sheep these days.

Most people will agree that the dentist advertising a “cheap root canal” or a heart surgeon offering to trade for services is a little bit scary. No two developers are created equally. You will never see the same results from two developers. This notion is as statistically significant as the number of developers.

The Best Icebreaker: Price is a great way to get started, but the question is always deeper than just that. If price was the primary concern, every Website would be free. A quick Google for “free website” returns hundreds of millions of results. There is surely a reason that I still have a job.

How Much Does a Website Cost?: The Web Developer’s Viewpoint

When this question arises, the developer often has a feeling that price is the primary objective, and the purchaser anxiously awaits an answer they can live with. If the question of cost is not answered upfront, the client’s perception can become that of the Website developer holding out their answer while they sum you up to see how much money they can squeeze out of you. A tragic end to this dilemma is often that the Web developer will give the wrong answer. The wrong answer can hurt both parties, and it is wrong however you look at it.

As a developer, I sincerely want to answer the questions of cost, but the right answer usually requires more input than a client wants to offer. I know that if I do not give some answer, my prospective client will not hear anything I say, because all they will hear during my consultation is the sound of a cash register. When I have done my job well, and I explain all of the benefits they will receive from my work, it should sound really costly. After all, there is a lot that goes into doing a job right. If all of my work sounds like a trip to Wal Mart for a garden hose, I have let the client down because I did not give them the information they deserve to know about my work and the Website development industry.

How Much Does a Website Cost?: The Perfect Website

If there was ever a perfect Website, most of us could agree that Google is the one. Google is clearly the biggest and greatest resource on the Internet. Some people would say Amazon is the best, from a retail standpoint, and some would choose eBay. The fact is that if any one of these Websites was the perfect Website, the project would be all done, and they could fire their staff and save millions of dollars in Web development cost.

If you think a Website is ever fully completed, you may be looking at it from an item viewpoint. That is to say that you just want a Website to have a defined stopping point. This is often the kind of site used to show off a “Home”, “About Us”, “Services” (or Products), “Testimonials”, and “Contact Us” pages. If this is you, I will enjoy talking with you because this is very simple work and I will happily make you an offer anywhere from $29 and up. Even the $29 cost will include a content management system to allow you to very easily update your Website and it will include a really pretty design. This is a fine solution for some companies, but it should be clear that this is a minority. Even plumbing companies and ditch diggers are finding great benefit from the ability to collect payments online, manage project data, simplify requests for proposal, synchronize Quickbooks with their Website, manage their client relationships, and much more.

How Much Does a Website Cost?: A Simple Website

Every viable developer has a Squillion potential clients who ask for a “simple Website”. When you say “simple Website”, the clear and obvious question from a proper and studied developer is “if you want it so simple, why are you asking me?” Although a miserly approach can be beneficial for some companies, the fact is clear that even then, there should be a consideration of tomorrow. Your Website development should never be seen as an open and closed book. You will need the service again in the future, and if you choose well early, you will be better equipped to rise above the wave and achieve happy surfing.

Cost of Missed Opportunity: A Case of Bargain Shopping

One case of bargain shopping that I am still vexed by is a local association of Realtors. This is an organization that has spent many thousands of dollars on Website development over the years, and still has a huge problem. They are very aware that the statistics agree that over 90% of new home purchases begin online, and they are quite convinced that they have a strong need for my service.

The present iteration of their Website was produced after I declined their business a year and a half ago because the budget they had in mind would have actually caused an upfront cost to my company greater than they were willing to spend. The budget discussed at the time was less than the cost of a 1985 Honda accord with 250,000 miles on it, and I am not exaggerating! It would have actually cost me more in the first 30 days to take the account than they were willing to pay in a year. They are now on their fourth version of the site, and they have had regular committee meetings for over a year to determine the best approach to their needs. I have been informed by multiple members of the committee that it is agreed that they want to use my services, but they still have to clear it with the board. This is a prime example of the cost of missed opportunity that can come from delaying the inevitable and simply doing things right the first time.

Another horrible scenario of hiring the wrong developer is the company who is hit with a claim of copyright infringement. This is described in my recent article, “Image Copyright Infringement and Enforcement“.

How Much Does a Website Cost?: Beating the Jones’

The bottom line of Website development cost is that what you spend on your Website will always be outdone by one of your competitors. If you do not think outside the box and make every attempt to use what your developer knows to your advantage, what you spend may be wasted. Having a bright and resourceful Website developer in your corner is an asset that defies the simple questions of upfront cost, and deserves a close look at the relationship opportunities between you and the developer.

The cost of a Website is a burning question that is on the mind of nearly every first-time Website buyer. Many times, the questions are much different after a miserable failure in hiring the right Website developer. I have countless clients return to me after hiring the wrong developer with a clever sales pitch and a bargain basement price.

Set a Website Budget

Avoid the pitfalls and set a budget. You will be much better of to set a budget before you start shopping, and share that budget with your prospective developer. This is not a secret, and it will serve you well to share it with your developer. When you do this, you can use your time shopping with a much better angle. With a budget, you may ask developers how much they are willing to give you for the money you have to spend. Make the budget reasonably flexible and be willing to hear the developer’s ideas without concerns that they are trying to upsell you and scam you. If they know you have a budget, and the amount they have to work with, their brilliant ideas will often be more to your benefit than theirs.

Tell the Web Developer Your Budget!

Hiding your expected budget is like going to a realtor and saying that you want to buy a house and hiding your budget. If they do not know your budget, they can show you homes all day but you will both be spinning your wheels and never get anywhere. You may think Website developers will try to get all the money they can from you. This may be the case, but if you have it in your budget, do you really want the Website developer to short-change you and offer you less than their best offering? It is common that the level of work you will receive grows exponentially with the amount of money you are willing to spend. Also, if the developer feels like they are getting a great deal, they will have much more incentive to give you all of their best work. I, for one, love to show off for my clients, and if I have enough budget to “WOW” them with my work, it serves me to do so, because they will refer others to me because I was so awesome to work with.

Keep your Fingers Crossed!

Until you spend enough time to fully learn any trade, the professional will always have the upper hand. As long as this is the case, you are much better off by appealing to their sense of pride in providing the best work for your money. A budget will always set a parameter to equalize the field. Then, every developer has your guidelines in mind for impressing you with their skills.

Website development is not unlike any other profession in that it pays to hire the best and most reputable and work forward from there. The big disparity in Website development is that it is an unregulated industry where every joker with a computer can build a Website. Cost should be a secondary concern, and become a consideration of not only today, but what you want and expect long into the future.

Please feel free to contact me at my direct line, toll free, 866-A-Web-Guy (*REDACTED DUE TO AGING WEBSITE*) to answer questions, vent your frustrations, or to build you a fantastic Website.

Author Mark Murnahan is the Chairman and CEO of YourNew.com, Inc. and provides SEO consulting services to companies and non-profit organizations. Mark Murnahan may be reached toll free at 866-A-Web-Guy (*REDACTED DUE TO AGING WEBSITE*) for consultation.