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Should social media have an incentive based billing model

August 18, 2008

Update: I’ve been thinking about this a lot today. I decided to see if anyone is talking about this online. A search for a number of things turned up no much. When I search for “Agency Compensation social media”, I found this post from Jason Oke, who doesn’t blog nearly enough anymore now that he left Leo Burnett in Toronto. I think a lot of what he says applies to digital. Especially if we have ideas to use sharing tools that are essentially free from media costs.

What if an agency puts up a Facebook Page for one of their brands (or, for the sake of this argument, input any social media tool or campaign). Now what if the page gets 50,000 fans, and has an ongoing conversation that props up the brand in the minds of people all across these interwebs?

How would an agency charge for it?

Do they submit a bill for the time spent to create it (and come up with the wonderful ideas that drive people to it, because until there is a community, it’s not going to be that great a place)?

Or do they submit a benchmark bill?

I have some ideas of my own, but if anyone out there has some good ones, I would love to hear them.
I wonder how these guys, and these guys billed? Results? Hourly? A cut of the CafePress sales (just kidding)

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3 Comments leave one →
  1. August 17, 2010 8:03 pm

    Oh gosh! This is my exact dilemma! I’m a Young Entrepreneur looking to use Social Media for marketing and PR. My boss just asked me to do some free lance with a client and they want me to manage a short Facebook campaign for them. Now I ca set up the page, I know all the rules of engagement, and have all the communication strategies set up…now how do I bill them!?!?!?! If you have ANY more helpful links I’d sooooooo appreciate it! You can leave a message at my blog or you can shout me at my twitter @Kliejay.

    I’d appreciate it so much!

    • August 19, 2010 8:44 pm

      We tried incentive billing for a client. We asked for an incentive based model, and the set about achieving the incentive. It worked the first time, and didn’t work the second time.

      I think if you bill by the hour, you undersell your knowledge. If you can bill by the project, then you’ll have much better luck. The trick is convincing the client to pay for the project. Then getting it done in a time that offers a margin.

      Good luck.

  2. November 22, 2010 6:41 pm

    I don’t think that they need to. I think that if Facebook has proven anything is that people will tell you what they think, or tell you what their doing for the sole purpose that they think that they are important or that they want to seem important.

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