8 minute read time
Digital marketing agencies offer a plethora of services to their clients including website development, logo design, social media marketing, and a variety of other valuable services.
But many of these services tend to be project-based and require agencies to be continually attracting new clients in order to keep the revenue coming in.
But what if your agency could earn recurring revenue that comes in every month without requiring you to win new business again and again?
In this guide, we’ll walk you through how you can sell, price, and package email marketing services to generate revenue for your agency and drive results for your clients.
Email marketing is the perfect complement to other digital marketing services you currently offer your clients.
Facebook has nearly 2 billion active users per month, and Twitter has approximately 319 million, it’s understandable that your clients may think social media is the best channel to market their businesses. But trying to market on these channels can be risky as you are always at the mercy of their algorithms that can change at a moment’s notice.
But with email marketing, you have much more control, and your potential reach is massive. According to Radicati, the total number of email accounts worldwide in 2017 is 4.9 billion and is projected to be 5.6 billion by 2019.
There are 3x more email accounts than there are Facebook & Twitter accounts combined.
On top of having a larger reach, email marketing is more effective at driving conversions. In fact, the average click-through rate of an email campaign is around 3% (of total recipients), whereas the average click-through rate from a tweet is around 0.5%.
You are 6x more likely to get someone to click-through to your website via email than you are from Twitter.
So although social media still gets a lot of attention, email marketing is a much more effective way for your clients to market their businesses. By offering email marketing as a service, you can help clients get the kind of results that will make them want to work with you again and again.
In recent years, agency margins have taken a downward turn. Studies show the top 50 agencies in the UK are experiencing the lowest profit margins in over seven years.
A key factor in these declining margins, particularly for boutique agencies, is the constant need to spend time and money trying to win new clients and projects.
Unlike website or logo design, which are inherently one-off projects, email marketing enables your agency to work with your clients on an ongoing basis and earn revenue each time you send a campaign on their behalf.
This reduces the need to constantly spend time and money trying to win new projects and allows you to focus on doing high-quality, billable work for clients. You effectively do more with what you already have. It’s a win-win.
Many email marketing tools like Campaign Monitor allow you to markup prices and bill your clients directly to account for the unique services your agency provides.
This means that you can sell the platform as your own and earn revenue every time your clients send an email campaign on your version of the platform. Agencies have earned over $25 million in recurring revenue simply by reselling Campaign Monitor using the platform to send their email campaigns.
Email marketing is a lucrative service to offer. It drives revenue for your agency while driving results for your clients. Let’s take a look at a few of the services within email marketing that your agency can offer clients:
As a digital marketing expert, you can help your clients:
As an agency, you likely have a lot of technical expertise.
This expertise allows you to offer integration services to help your clients get set up with the email service provider (ESP) of choice.
This could include:
On top of providing email marketing services, agencies can offer an email marketing tool to clients as well.
Using the agency features built into email marketing tools like Campaign Monitor, you can private-label the product as yours set it up on your domain, and provide it to clients as if it’s your email marketing tool.
You can use the simple agency interface to manage all your clients in one place, and give each client a login that allows them to manage their lists, send campaigns, and view reports.
When it comes to billing, you have multiple options that allow you to work with your clients however you choose. Agencies using Campaign Monitor can pay for the tool directly and bill clients independently or can choose to add a markup to the base price and let our billing system handle everything on your behalf, including transferring the profits from your clients’ campaigns to you each month.
To help make creating these email campaigns easy for end users, email tools like Campaign Monitor enable the creation of branded templates that end users can simply drag-and-drop content into.
Using the technical expertise and design prowess agencies have, you can design and develop beautiful email templates that your clients can simply drop content into and send out.
“The feedback we get when our clients use Campaign Monitor for the first time is how simple it is to execute their campaigns when compared to other email server providers.” – Orchard
Campaign Monitor makes is super easy to create and send email campaigns but there are always going to be clients who prefer to have you do it for them.
This is an awesome opportunity for you to provide valuable services to your clients. You can take their campaign ideas and content and turn them into beautiful, on-brand email campaigns ready to be sent to subscribers.
You can even send test campaigns to your clients for free to get their approval before sending it out to their subscribers.
The reason we’ve been with Campaign Monitor all these years is because of quality. Campaign Monitor’s emails look the best, are easy to design, and the platform helps keep us organized. – Wonderful Union
These days, the best businesses are moving beyond sending one-off email campaigns and are using marketing automation to create powerful automated customer journeys that send the right campaign to the right person at right time.
Marketing automation is as easy as setting a trigger, defining the rules, and creating the content.
You can set up any number of customer journeys using email marketing automation to help drive results for your clients:
One of the biggest benefits of email marketing is how measurable it is.
For every campaign you send, you can see how many people opened it, how many people clicked and even drill down to the exact parts of your email campaign people interacted with.
On top of that, with Campaign Monitor’s built-in Google Analytics integration, it’s easy to see what happened after the click as well, including how many people arrived at the website from the campaign and exactly what they did there.
This is incredibly valuable information, and you can report it back to your clients after each campaign you send to show how much value your agency’s email marketing services are contributing.
With in-house design and technical skills, your agency is in a perfect position to offer email marketing services that can help grow your clients’ revenue.
But how do you charge for these services so you can improve revenue for your agency as well?
There are a number of models through which you can charge your clients for email marketing services. The right one will depend on your business and how you generally prefer to work with clients, but some ideas include:
Usually best for bespoke email marketing work, you can charge your clients your standard hourly rate to do things like gather and upload their email lists, integrate their website or CRM, design & develop a template, etc.
Usually best for clients who will want to send their campaigns themselves but just need help getting started, you can offer a setup package that includes gathering and uploading their email list, building their email template, and training them to use the email marketing tool to send campaigns.
These setup packages are usually based a flat rate fee and start at around $500 depending on where the email list needs to be pulled from, what kind of email templates they require, etc.
Full-service is a great option to offer clients who understand the value of email marketing but don’t want to do it themselves.
A full-service option usually includes setting up their account (gathering and uploading their list, building an email template, etc) but also creating and sending campaigns on their behalf and reporting back on the results.
This kind of full-service offering is most commonly charged as a monthly fee based on the number of campaigns being sent and is an excellent way to secure reliable recurring revenue that you can depend on.
Offering email marketing services as part of your broader offering is a win for both your clients and your agency.
It enables you to drive business results for your clients while earning recurring revenue for your agency.
So set up your free Campaign Monitor account, brand it as your own and start offering email marketing services to your clients today.
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