Have you ever received billable hours from a marketing agency or a law firm that attempted to estimate the maximum number of hours worked to create engagement and value? Many marketing and communications agencies use either the “retainer model” (where companies pay a fixed monthly fee as part of their annual contract) or the “billable hour” pricing method as a revenue strategy.
But what are the flaws and disadvantages to these traditional pricing models? Is it still considered relevant today as industries and businesses continue to evolve in a rapidly changing environment? Below, we will try to dispel some myths and help you understand the difference between Verta’s token model approach compared to other agency models, and help raise the question, where is the future of agency pricing headed?
Transparency of Verta’s token model and why it is a better financially for customers
A typical agency model uses traditional pricing methods, where the cost of work is usually unknown. Most agencies also use “billable hours” or “recurring monthly fees” or “retainers” for services rendered.
The biggest problem with this is it’s hard to measure the actual value and cost of each marketing service. Billable hours for instance are flawed because it is in the best interest of the agency to take as long as possible to complete a project (the longer it takes, the more they make). Retainers and recurring monthly fees are paid every month regardless whether there is work done or not. It’s an expensive service that requires agencies to be available for their clients anytime, literally.
Our token model approach would save any business a significant amount of money as you have complete spending control on your tokens. Our clients only use the services they need without any restrictions or added billing. This is one way to avoid push backs from agencies and clients, who want clarity at every step.
How we value our tokens and services
Here at Verta, we have four tier packages for your content marketing needs: (1) Starter (2) Basic (3) Pro (4)Custom.
Depending on the package, our clients receive a fixed number of tokens each month to spend on any project or service they need.
The valuation of each token equals roughly 1 hour of agency work. Each service (ie. Social Media Marketing, Search Engine Optimization, Commercial Video Production, Graphic Design, etc.) has a determined token value.
Clients have the flexibility on deciding if they want to spend all of their tokens or a portion of them each month. However, the tokens expire each month and cannot be carried forward. Pay only for what you need and avoid unnecessary upsell from marketing agencies.
Unnecessary time charged out of your pocket
Each marketing service includes various rounds or revisions of work that need to take place to ensure quality standards are adhered to for each job. For example, when it comes to video editing, each reworking of the end-product means added billable hours to the project that the client pays for. Writing press releases requires various drafts before being approved to be disseminated publicly.
At Verta Marketing, we are upfront about each client’s expectations from the scope of work, to delivery timelines and the token value of our services. We do not charge for additional hours worked or any further labour needed to successfully finish your projects. You pay exactly for the work done and nothing else, giving you full accountability of what you spend.
Giving our clients and consumers more choice and flexibility
A traditional agency would give clients access to their services through a fixed contract, already laying out which services they have signed up for and will use every month.
The advantage of our token model is you don’t have to be limited by the type of service you have access to. You don’t have to pay extra either to access a different service that your company needs. We help empower our clients by offering them flexibility and choice. We also closely work with our clients to ensure that they meet their many marketing and communication goals.
Verta’s value or accountability and transparency
Our innovative pricing method is another aspect of how we contribute to accountable and transparent service. Our token model approach is simple and to the point.
It’s our promise to you to get the job done despite the number of revisions, changes and deadlines. Clarity is a quality we strive for as a communications and marketing firm.
Contact us and learn about our services
Learn more on how our token model structure and Verta Marketing can support your creative, sales, marketing and communication needs.