Inbound Marketing Agency: Retainer vs. Hourly Rates

Rikki Broussard • May 31, 2022

Your business is unique. When selecting a marketing agency, the pricing offered should be equally distinctive. It should be transparent, flexible, and focused on your goals and objectives. When we provide pricing to our clients, we provide the plan that makes the most sense for the client, not the inbound marketing agency. So, which pricing model makes sense for your business - an hourly rate or a monthly retainer? In this blog, we cover the pluses and minuses of both so you can determine what's right for you. 


Using the Retainer Model for Marketing Agencies


Companies searching for substantial long-term growth are the perfect fit for retainers. Retainers provide a set of services at a set rate and sometimes a discounted rate. They also eliminate unexpected charges and provide stability in the budgeting process. Monthly retainers cut out the inefficiencies that often come with paying an hourly rate for services.


The downside of a monthly retainer is that some months, you have less work needed from your agency, so you may feel like you aren’t getting your full money’s worth. However, in my experience, this always balances out, as some months the agency spends more time on your deliverables.


Paying Hourly Rates for Digital Marketing Services


Businesses with a specific goal to achieve within a short period are ideal for hourly or project-based pricing. The hourly or project-based pricing model is an optimal pricing approach for special events, launching a new product or service, setting up software, or any web or SEO audit. There is no reason to pay a retainer for a project that has a short turnaround. With the hourly-billed project, everyone should be organized and on the same page, so most inefficiencies are eliminated before they can become a problem.

The major drawback of an hourly rate is never fully knowing what you’ll be charged month-to-month. A perfect example of this is in the legal field. Generally speaking, their pricing model is an hourly rate. I don't know about you, but when I even email my attorney, the dread sets in, because who knows how much this will cost me. I love and trust our attorney, and he's worth every penny. However, the uncertainty of what that email will cost me is frustrating. 


Furthermore, an hourly rate means that you pay for an employee’s work, regardless of how long it takes to complete. What may take one employee an hour to complete could take another two or three hours. This difference can be substantial when paying by the hour. When our agency structures retainer pricing, we base our services on the average number of hours it takes our team to complete a given task. If we go over that number, clients can rest assured that the price they pay will stay the same.


At BlinkJar, we believe the frustration caused by the "nickel and dime" approach of the hourly rate destroys any hope of building a long-term relationship with our clients. Because our interests lie in developing lasting relationships with our clients, we customize monthly retainers for them. We iron out the pricing in advance of the agreement, and the pricing stays the same month after month unless services are added. This approach allows our clients to plan their marketing investment for the entire year, eliminating the guesswork and frustration associated with the hourly rate. 


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