Marketing Agency Fee Negotiation

Most marketing deals start with flat or standard tiered pricing. That's fine. Partners have their models and they work for a lot of people. But if you want pricing that fits your portfolio, you need different tactics. Here are some approaches I've found useful as negotiation levers. I don't use all of them every time, but these questions help you understand your solutions partner better while helping them understand your business too. 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲𝗶𝗿 𝗰𝗼𝗻𝘀𝘁𝗿𝗮𝗶𝗻𝘁𝘀. "What drives your pricing model?" Most partners will tell you. Unit count, revenue, scope of work. Understanding their logic gives you room to negotiate within it. 𝗕𝘂𝗻𝗱𝗹𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗹𝘆. Instead of asking for a discount, ask for flexibility. "Can we structure this as a pilot with three properties and scale pricing based on performance?" Or "What if we commit to a longer term but start smaller?" 𝗧𝗿𝗮𝗱𝗲 𝘃𝗮𝗹𝘂𝗲, 𝗱𝗼𝗻'𝘁 𝗷𝘂𝘀𝘁 𝗮𝘀𝗸 𝗳𝗼𝗿 𝗰𝘂𝘁𝘀. "We can provide case studies and references in exchange for a reduced rate" Or "We'll handle more of the setup internally if that affects pricing" 𝗔𝘀𝗸 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲𝗶𝗿 𝗰𝗮𝗽𝗮𝗰𝗶𝘁𝘆. "How many clients are you onboarding right now?" If they're swamped, you might get better pricing by starting later. If they're light, you might get a better deal to start sooner. 𝗚𝗲𝘁 𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗮𝗯𝗼𝘂𝘁 𝘃𝗮𝗿𝗶𝗮𝗯𝗹𝗲𝘀. Don't ask "what's your best price?" Ask "How does pricing change if we exclude this feature?" Or "Is there a benefit to annual payments?" (read: can we get a discount if you get a wad of cash all at once) Or "Can we ad a min/max spend to flatten rate across the portfolio?" 𝗧𝗲𝘀𝘁 𝘁𝗵𝗲𝗶𝗿 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝘂𝗽𝗳𝗿𝗼𝗻𝘁. "Is this pricing firm or is there room to adjust based on our specific situation?" or "Can you adjust rate by property type (lower for affordable, higher for market rate) to keep overall rate flat?" You'll know quickly if they have wiggle room. You get pricing that makes sense for your portfolio. They get a partner who understands their business. And these are just some of examples - I have plenty more where those came from. 𝗪𝗵𝗮𝘁'𝘀 𝘆𝗼𝘂𝗿 𝗴𝗼-𝘁𝗼 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝘄𝗵𝗲𝗻 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗻𝗴 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀? 𝗗𝗿𝗼𝗽 𝗶𝘁 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀. Let’s talk, ❤️ LZ

If a client asks you to reduce your fees, try this. (1) Question if they’re being truthful. Some clients will seek reduced rates just for the sake of it. Under the pretense of “budgets are stretched, can you help us out”? It’s usually not true. (2) Resist the urge to avoid discomfort. I get it. You want to cave and cut their rates to solve the situation and keep the client. But you didn’t manufacture the situation. They did. You’re playing into their hand and showing your fear/desperation by caving. (3) Tell them you’ll consider the request if they’re open to running the math with you. You’ll need their YoY revenue data, transparency over what other marketing spend is doing, and their goals (if they’ve changed). If they don’t agree to this, the request isn’t fair and triggers a different conversation… (4) Run the math and prove your worth. Say your agency service ROI is 8:1. Pretty common example, but use whatever your reality is. Then, say you’re a media agency charging a 20% fee (swap this for whatever service and price you offer). - The client is earning $8 for every $1 Google/Meta/Microsoft earns - You’re earning $0.20 for every $1 Google/Meta/Microsoft earns - That’s $0.20 for every $8 revenue you’re driving for your client - So the client is earning 40x your fee (5) Put your math to the client. “Hey Jesse, I ran the math. It looks like your ROI of 800% is above target and you’re profitable. I’m unsure if you’ve ever looked at it this way, but if we’re doing our job right, you earn at least $40 for every $1 we earn from this arrangement. We feel this value merits our fees, but please call me if you feel otherwise.” (6) Offer the reduced option if the math doesn’t work. IF the math doesn’t work favorably (say, their business is struggling or their budget is stretched too thin), reduce your fee in exchange for a reduction of service and value provided. They don’t get the same for less. If they want a PPC fee reduced from 18% to 12%, that’s fine, but your deliverables (hours, channels, meetings, etc) are cut by a third. They have to understand the consequences of needlessly squeezing their agency. ____ So now the client has a choice. The ball is back in their court. You’ve proven your worth and still given them an option to reduce fees. You can in no way be considered inflexible or uncooperative. If they leave in a hissy fit bc you wouldn’t take bread from your team’s table, that’s on them and a blessing in disguise. Will you try it and let me know how it goes? Snacky 💙

“We love you… But our budget’s tight.” Sound familiar? Every speaker’s heard it. In today’s uncertain marketplace, you’re likely to hear it more. And in that moment, your instinct might be to drop your fee just to land the gig. Don’t. Here’s what I remind my clients (and myself): Fee pressure is rarely about your worth. It’s about perceived value. If buyers see your program as a “nice to have,” they’ll push for a lower price. But if they view it as essential to solving a major challenge, they’ll often find the money. This is why I always say, when selling, consider the ROI of your program. Your buyer is. The shift starts with how you position yourself. Lead every conversation with a positioning statement, the concept, and the outcome of working with you. One of my favorite lines from Book More Business: Make MORE Money Speaking is “Sell by the outcome of working with you.” Instead of saying what you do, tell them what they’ll get. Say: “I work with sales teams to increase revenue by building stronger relationships.” Not: “I deliver a keynote on communication.” Outcome statements are solution statements. They elevate your value immediately and allow decision makers to clearly see what they’re getting for their money. In other words, the ROI of you. Next, don’t negotiate against yourself. If you sense hesitation, don’t rush to fill the silence with, “I can be flexible.” Instead, pause. Ask questions. Clarify needs. Then, offer options instead of discounts. I describe silence as a “shared intimacy”. Get comfortable with it. Create a menu: · Option 1: Keynote only · Option 2: Keynote + breakout session · Option 3: Keynote + follow-up coaching or virtual Q&A, books, courses These options give them flexibility without diminishing your worth. I always say: Add before you subtract. If you must adjust, add value before you take away dollars. Finally, remember one of my golden rules: Quote your fee with confidence, then zip it. You may be pleasantly surprised. Bottom line? When you communicate clear outcomes and stand tall in your value, clients stop seeing you as a “nice to have” and start seeing you as a “need to have.” That’s when the fee conversation changes forever.

Be "𝑟𝑒𝑙𝑒𝑛𝑡𝑙𝑒𝑠𝑠𝑙𝑦 𝑝𝑙𝑒𝑎𝑠𝑎𝑛𝑡" to boost the fees AND the client relationship Kindness isn’t the opposite of firmness. In fact, the best negotiators combine both. I call it relentlessly pleasant. Fee conversations make most lawyers squirm. The biggest challenge: You want to preserve the relationship - but you also know your price needs to reflect your value. And you worry that to make the client happy, you need to lower your fees. Effective negotiators are "relentlessly pleasant". 📌 Relentless in advocating for the fees they deserve and holding firm while demonstrating the value they deliver. 📌 Pleasant in the way they work through the fee negotiation with their client and support them with empathy. You don’t need to choose between empathy and strong pricing. You can have both. Here are 4 ways to do it - straight from a recent workshop on AI-era fee negotiations: 1. Validate first. Set boundaries second. Start with: “I completely understand why this feels surprising…” Then hold the line: “…but our pricing reflects the value we’re delivering, not just the hours.” 2. Use the ‘Kind-but-Clear’ formula. A simple structure: ✳️ Appreciate ✳️ Explain ✳️ Stand firm Example: “I really value our partnership - and we’re committed to being efficient. At the same time, the real value we bring isn’t just speed - it’s risk mitigation, judgment and outcome. So the fee reflects that.” 3. Don’t negotiate in the moment. Pause. Say: “That’s a great question - let me take a moment and come back with a clear breakdown.” Pleasant = not defensive. Relentless = not reactive. 4. Let empathy lead - but don’t let it run the show. Yes, you want to be liked. But this isn’t about being agreeable. It’s about being respectful and respected. You can say no warmly - and mean it. Bottom line: Being relentlessly pleasant can be a superpower. Soft on the person, hard on the problem, as the Harvard win-win foundations always said. It’s strong price leadership - with a smile. How are you navigating this tension between relationship and price in your negotiations?