Point Pricing for Agencies: How to Drive Productivity, Profits and Performance with Value-Based Pricing
Presented by HubSpot
“The future belongs to dynamic agencies with more efficient management systems, integrated services, versatile talent, value-based pricing models, a love for data, and a commitment to producing measurable results.” — Paul Roetzer, The Marketing Performance Blueprint (Wiley)Standard Rate On-Demand = $1,000Register Now
A point is a fixed unit of value. It’s your agency’s value metric.
Point pricing ensures clients get the full value of every dollar spent, regardless of how much time it takes to deliver. Points provide total transparency into pricing, progress, performance and resource allocation.
Each project is assigned a fixed-point total (e.g. blog post = 3 points) based on value creation rather than hourly estimates. The point totals are standard across all clients and are determined using the Fibonacci sequence (i.e. 1, 3, 5, 8, 13, 21 . . .).
The point pricing model is built on the philosophy that if you can define the scope, which is possible with nearly every marketing agency service, then you can standardize the service and assign a set point value.
Introducing Point Pricing for Agencies
Point Pricing for Agencies is a three-course, on-demand series featuring more than a dozen exclusive resources, including pricing strategy documents, tools and templates that your agency can use to establish, launch and evolve its own point pricing model.
Each session explores the concepts and processes behind the point pricing system, and gives agencies the knowledge and guidance needed to shift to a value-based pricing model that is designed to drive productivity, profits and performance.
Point Pricing for Agencies is presented by HubSpot, a leading CRM, marketing, sales, and customer experience platform. HubSpot partners with agencies around the globe to grow their businesses by providing exceptional inbound marketing and sales service to their clients. The series is open to all agencies, but HubSpot partner agencies are eligible for exclusive discounts. If you're a HubSpot partner, click here to gain access to your unique discount code. All other agencies can go directly to the registration page.
- Three 90-minute webinars on-demand (est. 60-minute presentation and 30-minute Q&A for each) with Paul Roetzer, Founder and CEO of PR 20/20, and author of The Marketing Agency Blueprint.
- More than a dozen downloadable assets, including slide decks, templates and worksheets.
- Quarterly live video conference office hours in 2018 (March, June, September, December) for Q&A and conversations with other agencies using point pricing.
- Access to a private Facebook Group for registrants to collaborate and share. The group is moderated by PR 20/20’s leadership team.
You’ll learn how to:
- Identify and track the point pricing KPIs core to your agency’s financial success.
- Evaluate and evolve your existing pricing model.
- Drive productivity, profitability and performance through a value-based pricing model.
Take a deep dive into the origins of the point pricing model, the anatomy of how it works and guidance on how to establish and evolve your own value-based pricing model. View the full session description here.
- [Worksheet] How to calculate price per point
- [Worksheet] Sample service package chart
- [Document] Lessons learned
- [Document] 12 questions to ask of your own pricing model
[Template] Internal client services report: monthly and quarterly template scorecard and narrative
Session 2 takes agencies through the tactical implementation of point pricing. You’ll learn how to integrate the model into time tracking, project management and reporting systems, and gain access to a collection of short-cuts and templates. View the full session description here.
- [Template] Client dashboard
- [Template] Monthly GamePlans
- [Template] Invoice
- [Template] Weekly progress report
[Worksheet] Point pricing performance analysis (by industry, client, etc.)
Session 3 gives you the tools and knowledge to put point pricing into practice. You’ll learn how to educate employees, position with prospects and introduce to clients. This final session in the series will also provide an overview of how agencies can collaborate moving forward to continually improve the point pricing model. View the full session description here.
- [Document] Internal planning Q&A
- [Document] Sample employee communications
- [Document] Sample client communications
- [Document] Point pricing prospect/client FAQ
- [Template] Sample point pricing terms of agreement
[Template] Sample point pricing campaign charts (e.g. lead gen campaign, trade show, brand launch, webinar)
Questions We’ll Help You Answer
- What are the weaknesses of your current pricing model?
- What are the agency (and client) goals for the new model?
- What services does your agency provide that can be standardized (i.e. description, scope, price)?
- What is your agency’s value metric?
- What is the price per x (x = your value metric)?
- Does the price per x vary based on service package level?
- Should you publish your pricing?
- Will the model work within your existing project management, time tracking and accounting software?
- Are there options to beta test the model?
- How and when do you introduce the new pricing model to clients?
- How do you ensure loyal clients receive equal or greater value in the new model?
- How do you benchmark and monitor impact on performance—clients, agency and personnel?
The Story of Point Pricing
As Paul Roetzer wrote in The Marketing Agency Blueprint, the guiding principle behind eliminating billable hours, and other archaic, agency-centric pricing models, is that prices must be value based. This means your agency prices are determined based on perceived and actual value rather than the number of hours something takes to complete.
But, when The Marketing Agency Blueprint was published in December 2011, Roetzer and PR 20/20 hadn’t “cracked the code.” The agency had used some variation of standardized services and set pricing since its founding in 2005, but struggled to find a single value metric upon which to build a new model.
Then, in late 2012, Roetzer conceived of using points. He wanted something that felt different, but wasn’t too abstract for clients to understand. He envisioned a pricing mechanism that subconsciously conveyed that marketing dollars were an investment, not an expense, and that every dollar spent had a purpose and represented incremental progress toward a goal.
It took more than 12 months to build and test the financial and operational models (e.g. time tracking, project management, invoicing, etc.) needed to convert the agency to points, and then PR 20/20 began methodically rolling it out to clients in January 2014.
Point pricing was born.
The Impact and Spread of Points
Other agencies have begun shifting to points, and HubSpot is even advocating for the adoption of a point-based pricing system within its growth driven website design training program. Hopefully, as the industry gradually shifts away from billable hours and other more opaque pricing models, we can collectively progress toward true value-based pricing.
The Point Pricing for Agencies is designed to give firms the resources and knowledge to accelerate pricing transformation and drive productivity, profitability and performance.
Learn More About Point Pricing
- Getting Started with Point Pricing for Agencies [HubSpot Academy's Agency Pricing & Packaging Series]
- A Different Approach to Agency Pricing for Marketing Clients [Video podcast with Paul Roetzer and Jeff Julian of Enterprise Marketer]
- Pricing for Outcomes (and Profits): A Value-Based Approach to Marketing Agency Pricing [Podcast with Paul Roetzer and John Jantsch of Duct Tape Marketing]
- Point Pricing: The Story of How We (Finally) Eliminated Hours from Marketing Agency Pricing
Presented by HubSpot
HubSpot is a leading CRM, marketing, sales, and customer experience platform. Since 2006, HubSpot has been on a mission to make the world more inbound. Today, over 37,000 customers in more than 90 countries use HubSpot’s award-winning software, services, and support to transform the way they attract, engage, and delight customers. The HubSpot Growth Stack, built on a powerful, free CRM and comprised of the Marketing Hub, Sales Hub, and soon to be released Customer Hub, gives companies all the tools they need to manage the entire customer experience from awareness to advocacy.
HubSpot has been named a top place to work by Glassdoor, Fortune, The Boston Globe, and The Boston Business Journal. The company is headquartered in Cambridge, MA with offices in Dublin, Ireland (EMEA HQ); Singapore; Sydney, Australia; Tokyo, Japan; Berlin, Germany; and Portsmouth, NH.
HubSpot's Partner Certification Program is an opportunity for marketing professionals and agencies to be trained and certified by the leading provider of inbound marketing software. Certified partners are given access to educational resources, selling tools, training programs and private online communities that facilitate customer interactions and peer-to-peer communications.
Each registration is valid for a single user/license. Agencies are welcome to watch the webinars in a group setting, but additional seats are required for access to the private Facebook Group or for individual logins to the on-demand content. Additional seats are available upon request for $100 each.
Group buying/sharing of Point Pricing for Agencies is not permitted. PR 20/20 retains the right to revoke access, without refund, for any registrant who shares his/her unique login information with others without express written consent from the event organizer.
All provided materials are the intellectual property of PR 20/20, protected by copyright law and other U.S. intellectual property laws. Registrants are granted permission to use Point Pricing for Agencies materials in the operations and marketing of their agencies, but they are not permitted to resell any elements of the program. You are consenting to these terms by submitting your Eventbrite payment.