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I am a fast learner. Right now, I am a entry-level online marketer. I am trying to determine how much I should charge my client because their industry is different than the usual ones.

My clients are in the luxury industry so I have to research a lot of information. They are a concierge that caters to celebrities. They are more concerned towards their brand (as most lux brands are) so I cannot do a lot of tests as often as regular marketers should. The problem is, testing is the core of marketing. We test to figure out what works best for our goals. Copying similar brands in the same industry is expensive.

Right now, I get paid by the hour. The owners are old-fashioned therefore I understand why they don't want to invest in something they're not sure might work. Besides, they never really had the need to do offline marketing because they get their customers by referrals. (I just figured that I bring this up just in case someone asks about it.)

I now know that I should include overhead to my prices. Otherwise, I would not be able to run this.

Should my rates be determine by my experience-even more so-than liability? With liability I mean by the mistakes I will end up having.

Any advice or relative experiences would really help me in this as I have a hard time looking for this kind of information online and offline.

Thank you so much in advanced!

  • What exactly is your 'liability' in this case? What are you risking. You are doing some marketing for them and it will either work or not work. What is the liability you are referring to here? – PaulD Sep 18 '16 at 13:58
  • Did you mean to say "cost" instead of "liability"? Also, how entry level are you? If some clients can't pay you, or can't get good value from your services, you should avoid them. Clients that are the most difficult about the price tend to also be the clients that suck up most of your time (to the detriment of your other potential clients). It doesn't matter what their reasons are. As a freelancer, your objective is to be making a living. – Stephan Branczyk Sep 19 '16 at 17:08
  • I have no idea what the question is meant to ask. The first sentence isn't a full sentence and I've read the entire question multiple times and the best I could guess is ... "Should I charge more hourly?" which I don't know how anyone could effectively answer. – Scott Sep 23 '16 at 4:15
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You say you are an entry level online marketeer, so the old-fashioned, do business by referrals, high end luxury brand might well be a bit suspicious. High end luxury brands are probably the hardest to market online, and you can easily damage the brand with a poor ad placement, content or design. So their concerns are justified.

If they are unsure about investing in something that might not work, get paid by referral, which potentially could lead to either a fantastic income or a minimal to 0 income depending on your success. It removes their risk but means you have to know you are going to generate referrals.

What makes you think only the luxury brands need a lot of research. Any market needs extensive research. Why can you not do some testing? As you say, testing and adapting is the bedrock of online marketing, so this confuses me.

Personally, for this customer, I would lay out what I can do for them and the cost, and leave it up to them. If they want it they will pay you, if not then move on to other customers.

As an entry level marketeer, you probably need some easier projects under your belt rather than this more difficult sounding one. And yes, your experience affects price, probably more than your actual skills. If you had done online marketing for Nike, or Star Wars, then you can command a lot more confidence in the market and a much higher price. If you have only done a tiny bit of work for ABC Taxis, a small local cab firm, with minimal results, then you will command less confidence and a much smaller price.

My advice, is you should not be coercing people into doing things they are unsure about. You should be presenting your services to people that need your services, or want your services, or have your services done by someone else that you can either undercut or provide additional features to.

Good luck with it.

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The reality is they built a business on referral and if you want to help them build a brand outside of their steady referral sources. Then it is proabably best to build off their current success.

One example is, letting the luxury clients know that, If you liked our luxury service, please feel free to schedule your next visit online. If you like the way we customize our luxury products and services to your exact taste. Be sure to visit us online and note those things you would like to make sure we have available during your next visit.

Another example: The person goes to schedule their next service and the website asks, you had Charles as your server last time, would you prefer he be the one you work with this time? Last time you arrived in the evening and you ate a light dinner, do you want us to get a meal started the moment our driver picks you up from the airport?

If they serve a high end customer base, then they do things a certain way, and their clients will be more impressed with tools that increase their experience and reduce the number of specific requests they have to make to get things exactly as they want them. A company that is using all the tools of the internet to create a high end luxury experience, and make it easy to share that experience with friends and family is going to get more traction than any marketing that will get a bunch of views, unique visitors, or a viral video. For a high end luxury service, more than anything else the key factors to success are going to be about tracking data as it relates to the customers preferences.

That means you charge by the hour, because if you cannot build what they need, you need to be able to hire people who can. You also need to be able to communicate how the solution you offer enhances their existing service so that you do not have to constantly fight with them about price and value. Luxury services will spend $100 per paper plate if it means their customers will pay $1,000 per paper plate. As long as they can communicate the value to their clients, they will spend the money.

In this example I used a luxury service because I did not see that you mentioned exactly what the luxury brand is or does. If your current approach is what is working best. You need to stick with charging by the hour, and using everything you learn from this project to build the products and services you will offer to the next luxury brand.

  • You are the best. This is exactly what I am looking for! Thank you so much!! By the way, they are a concierge. It's like a "hidden" business so it's very hard to market. – Aurora Afable Oct 7 '16 at 20:20

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