Parakeeto’s Post

Hot take: One of the most overlooked aspects of value-based or outcome-based pricing is attribution. Value-based or impact-based pricing sounds great in theory—charge based on impact, not hours. But here’s the problem: proving that impact is getting harder, not easier. There was a time when attribution was difficult because the technology was non-existent. Over time, attribution became easier and more accurate. In recent years, privacy laws and data restrictions have us going backward. I've yet to meet a marketer who feels confident that their attribution is both 100% accurate and precise. It's not to say that being able to accurately attribute results is always a prerequisite for value-based or even outcome-based pricing, but in many cases it is. However, the practicality and feasibility of not only achieving good attribution but also having enough access and control around that information is a topic I don't see discussed very much despite the growing popularity of these pricing models. Beyond that, it's also a big reason agencies struggle with client churn. Despite often delivering a lot of value, it can be challenging to empirically measure and prove that value to clients. I had the pleasure of discussing this, among many other interesting things, with Mari-Liis Vaher, MBA on our latest episode of the Agency Profit Podcast, which comes out tomorrow. If you want to learn some strategies to help you prove your value to clients so you can earn more and keep clients longer, don’t miss this one. What’s the biggest challenge you’ve faced in proving your agency’s impact? Drop it in the comments, I'd love to hear from you. #AgencyProfit #ValueBasedPricing #MarketingROI #AgencyLife