Value Based Pricing

    • This model focuses on the value of the agency outputs or deliverables rather than inputs (resource head hours). Also known as the Pricing Model.
    • The value is determined based on market pricing, strategic importance or the activity or brand and the expected ROI on the marketing activity.
    • The marketer agrees a pre-determined value on the various outputs. broken down in line with service and creative output expectations for tangible and intangible outputs or deliverables.
    • These pre-agreed values can be paid on an output basis, bundled into a project fee or be the basis for calculating an effective retainer.
    • This can be part of a hybrid model covering some agency function only. E.g. Retainer resource to approved concept.
    • Read more about Value Based Fees here