Digital Marketing Costs: Does it Make Sense for a Small Business or Non-Profit?

Digital Marketing Costs

 

One of the first questions a potential client asks us?  “How much does digital marketing cost?”  This is often followed by, “does paying for digital marketing services make sense for a small business or my non-profit?”

 

Well as the founder of a small business, we recommend that before you reach out to a marketing agency you should have a great landing page or website already built to attract your customers.  

 

understanding your audience

 

 

Next, you need to have a good understanding of who your audience is.  Who will be buying your product or supporting your cause? 

 

• Do they live locally? Could you find customers nationwide? Internationally?
• What demographic would be most likely to purchase or donate?  Think age, gender, income bracket, interests, hobbies, etc.
• Can you offer something for free, a lead magnet to get them interested in your product or service, or involved in the cause?
• Are you telling your story? Or the story of the product or cause in a meaningful way?

 

You will spend time, but not necessarily money in this discovery phase.  A marketing professional can help you identify answers to the questions above.  But, this process works best if you have already put some effort into it.

 

Now, the reason you are here.  We’ll next review all the costs, pros, and cons of working with a marketing agency, freelancer, or consultant to drive your brand awareness and hopefully, begin to generate more revenue or increase your fundraising contributions!

 

 

 

Digital Marketing Costs: key factors

 

As your small business or non-profit grows, you will need to increase your marketing efforts to generate more revenue or donations.

 

So now there’s a choice you will need to make:

• Hire a digital marketing manager, whether full-time or part-time
• Outsource your digital marketing to an agency
• Hire a marketing freelancer

 

Hiring a Digital Marketing Manager

 

As a small business or a non-profit, you may not have the budget for a full-time digital marketing manager yet.  A typical salary for a digital marketing manager ranges between $65,000 to $85,000 a year here in San Diego, California.

 

 

Cost to Hire a Digital Marketing Agency

 

What about hiring a digital marketing agency?  Well, the benefits of working with an agency are a better ‘package deal’, more resources, and more experience in tough areas like SEO.

However, hiring an agency to fulfill all of your digital marketing needs will cost between $650-$3,000 a month.  Of course, these costs can be as high a $20K depending on your goals and your budget.

 

As an example, we work with clients on a monthly retainer to help them manage digital marketing needs such as social media, email marketing, and paid advertising on channels like Instagram, Google or YouTube.  This might cost you anywhere from $850-$2,500 a month depending on how many social channels you have, what types of ads we’ll be creating, etc. 

 

Hiring a Freelancer

 

Thinking a freelancer might be better suited to your small outdoor brand or non-profit?  Expect to spend at least $700 a month.  And, typically closer to $1,500 a month for a good freelance digital marketing manager.  Sites like Fiverr, Freelancer, or Upwork are ones we’ve used before to find freelancers.

 

So, what is the short answer to how much does digital marketing cost?  It depends.  On these key factors above, along with a few others, which we’ll address now. 

 

What’s included in digital marketing services 

 

As a small business owner, when we search for a service we need, we want to know early on how much it will cost.  Our budget is small and must be managed with hawk-like abilities!  However, when we start asking questions, we have often felt like we get to a ‘gatekeeper’.  They will not give us the pricing details but are more than happy to set up a sales call for us.  Grrr…this can feel incredibly frustrating.

So, if you’re wondering why there’s such secrecy in digital marketing costs, this is because an agency may not want their competition to know their pricing.  Or, they may feel like they could be leaving money on the table if they provide you with upfront pricing.

 

To further complicate this, there’s a number of services that fall under the digital marketing umbrella.  Prices will range greatly depending on the services you need.

 

First, let’s talk about what should be included in your pricing.  Your typical digital marketing manager, freelancer, or digital agency should be expected to perform the following tasks:

• Social Media Management
• Content Production and Blog Writing
• Email Marketing
• Search Engine Marketing (SEM), Paid Social, and Google Advertising

 

A big plus if they also have experience in the following areas:

• Search Engine Optimization (SEO)
• Graphic Design
• Photography + Videography
  
• Event Management
• Web Development
• Public Relations

 

how to determine your digital marketing needs

 

In order to further figure out what your digital marketing costs might be, whether you are a bicycle shop or a budding e-commerce lifestyle brand, start by deciding which tasks you or your team are most familiar with.  Which digital marketing services listed above are you most comfortable continuing to manage?  Which ones do you need help with?

 

If you’re a one-man or one-woman show, it’s critical to be honest with yourself about the amount of time you can dedicate to digital marketing.  Are blog writing and content production something you enjoy?  Do you have the time and resources to manage this?  Or, should you be spending your time elsewhere?

 

As an example, a dedicated fundraiser should not be splitting time managing fundraising AND marketing tasks.  They should be out having meetings with big donors, making phone calls, and pitching corporate partners.

 

 

 

Digital Marketing Needs for a Small Business or Non-Profit

 

Many of the small outdoor brands and non-profit fundraisers we work with manage their own social media channels.  While we do not recommend your top fundraiser also be in charge of posting to social, we do see employees at non-profit organizations wearing several hats.

Therefore, identify where you need the most help.  This could be with the overall strategy, SEO, email marketing, or advertising.

As an example, we support many outdoor brands and non-profits by first creating a marketing strategy for them.  Then we lay out a plan or timeline for the first 90 days.  Then, together, we determine their weekly advertising budget, and what platforms we will advertise on.  

Pro tip:  Did you know non-profits can apply for Google Ad Grants to get up to $10,000 a month in advertising, for FREE?  As a result, we work with several non-profits to run their Google Ad campaigns.

 

Budgeting: Sample Digital Marketing Costs

 

Yes, every outdoor brand and non-profit is a bit different.  However, we’ve provided a list of services below so you can begin to see what your digital marketing costs might be.  

 

Content Production and Email Marketing

 

Do you have a small outdoor brand or non-profit that needs content production, email marketing, and social media?  If so, expect to spend about $750 per month. 

 

 

Google Ads + Paid social

 

Engaging your audience where they spend time will be a key part of your digital marketing strategy.  Therefore, advertising your services or products on Instagram, Facebook, Twitter, Pinterest or LinkedIn can be highly effective in combination with organic social posting.

 

In addition, these platforms allow you to dial in your target audience.  Get them to take action.  The goal here is conversions or sales.  

 

Pricing for paid advertising management begins at about $500 per month, plus anywhere from 5-15% of ad spend going to the agency.  Keep in mind that in addition to these fees, which will cover the setup and management of your ads, you’ll need to consider how much you can actually spend on paid ads each month.  We recommend you start small, at $10 a day.  Want to dive in and get started on your own?  Here’s our step-by-step guide to running your own Google ads or creating ads on Facebook or Instagram.   

 

 

Short-term Projects

 

Are you seeking help for a small project?  Well, just like many outdoor brands and non-profits we work with, you may need our support for just a short time.  Therefore, we have both project-based and hourly rates.

 

For example, projects such as a 2-day photo and video production?  $2,500 and up based on the scope of work.  Graphic design and copywriting for a media kit or slide deck?  $600 to start.  

 

 

Coaching, Webinars and Video Conferencing

 

Need help training your team in-person or via a webinar?  Maybe someone that can walk you, your volunteers, or your newly hired digital marketing manager through any of the gray areas?

 

Well, most agencies should be able to support you with this to help you build a solid team, or to get them up to speed on a new task.  Our rates for coaching and webinars start at $150/hour, but hourly rates will vary widely depending on the freelancer or agency you select. 

 

Next Steps on your digital marketing journey

 

Now that you have a better idea of what your digital marketing costs might be, you are ready to take the next step!  Remember to start small.  Ask lots of questions.  Become familiar with the digital marketing terms and platforms before you bring someone, or an agency in to manage it for you.

 

In addition, you should know what channels you are performing the best on.  Take the time to get familiar with your Google Analytics. 

We are not the right fit for every outdoor brand or non-profit organization.  But if you’ve got a question, drop us a line and let’s navigate the marketing wilderness together.

Lastly, if you’re seeking more tips on do-it-yourself digital marketing, check out these posts:

• 7 Steps to Crafting Your Perfect Email Strategy
• How to Use Your Website to Generate Better Leads
• 8 Steps to Kickstart Your Online Advertising with Facebook and Instagram

To learn more about what we do on the regular, follow along on Top Rope Media’s adventures on Instagram, Facebook or Twitter.

 

Until next time, happy digital marketing friends!

Meredith