The short answer
To price digital marketing services, first calculate what an hour of your time must earn (monthly costs and income goal ÷ billable hours). Estimate the hours each service takes, add a margin, and package services as monthly retainers with a one-time setup fee. Keep ad spend separate from your fee, state what is and isn’t included, and review prices every 6 months.
Before you start
By the end of this SOP
A price list with packages, setup fees, inclusions and terms you can send to clients.
- Time
- 60–90 minutes
- You’ll need
- Your monthly costs, income goal, and a list of services you offer.
- Who does this
- Freelancers and agency owners.
About this SOP: why it matters, where and when
Why it matters: Clear, cost-based prices protect your income and make proposals faster.
Where: A Google Sheet and your proposal template (SOP 038).
When: When starting out, and every 6 months.
Stage 1
Find your hourly floor
- 1
Add monthly costs: tools, internet, rent share, equipment, taxes, savings, plus the income you need.
- 2
Estimate billable hours: about 60% of working time (the rest is sales, admin and learning). For example 160 hours × 60% ≈ 96 billable hours.
- 3
Hourly floor = total monthly need ÷ billable hours. Never price below it.
Stage 2
Estimate service hours
- 1
List hours per month for each service, for example Meta ads management: setup 6 h, weekly optimisation 8 h, reporting 3 h, calls 2 h.
- 2
Add 20% for revisions, messages and surprises.
- 3
Price = hours × hourly rate × (1 + margin). Round to clean numbers.
Stage 3
Build packages
- 1
Create Starter, Growth and Premium packages; each with platforms, number of campaigns or posts, reports and calls.
- 2
Add a one-time setup fee for tracking, account setup and audits, usually equal to or more than one month’s fee.
- 3
State clearly: ad spend is paid by the client directly to Meta or Google and is not part of your fee. Mention GST if you are registered.
- 4
List exclusions: content shoots, website development, extra platforms, rush work.
Stage 4
Protect your pricing
- 1
Ask for payment in advance each month, with a 3-month minimum term for ads and SEO.
- 2
Handle scope creep: “Happy to add that; it’s ₹X extra or we can swap it for Y this month.”
- 3
Raise prices for new clients first, and for existing clients with 30 days’ notice, every 6–12 months.
Practice & check
Now do it for real
Reading is not doing. Open your own account and complete this task before you move on.
Practice task (5 min)
Calculate your hourly floor and price a Meta ads management package with a setup fee and three inclusions.
Prove it
Two questions. Get both right and this SOP is done.
Common questions
How much should I charge for social media management in Kerala?
It depends on scope and experience. Calculate from your hours and costs instead of copying others’ prices, then compare with the market.
Should I charge a percentage of ad spend?
Some agencies do for large budgets. For small budgets, a fixed fee is fairer and more stable.
Do I need GST registration?
It depends on your turnover and clients. Check with a tax professional.
Done. That’s a real skill, not a certificate.
Next: SOP 354 — Run a Monthly Client Reporting Call That Keeps Clients →
Want to do this on real client budgets, with a mentor checking your work? That’s Level 2 at Unlearn. See the Digital Marketing track