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SMS marketing is experiencing a resurgence, and agencies are in a prime position to capitalize on it. With open rates as high as 98%, text message campaigns offer a direct and effective way to reach customers. For marketing agencies, this presents a significant opportunity to expand service offerings, deliver measurable results for clients, and generate new, reliable revenue streams.

If you're looking to add SMS marketing to your agency's services, you're making a smart move. This guide will walk you through the primary ways agencies can make money with SMS marketing, from simple retainers to more complex, performance-based models. We'll explore how to structure your pricing, package your services, and demonstrate undeniable value to your clients.

By the end of this post, you'll have a clear roadmap for integrating SMS marketing into your business model. You’ll learn how to price your services competitively, create compelling packages, and ultimately, grow your agency's bottom line.

1. The Retainer Model

The retainer model is one of the most common and straightforward ways for agencies to offer SMS marketing. With this approach, clients pay a fixed, recurring monthly fee for a predefined set of services. This model provides your agency with predictable monthly revenue, making it easier to forecast finances and manage resources.

What to Include in a Retainer Package

A typical SMS marketing retainer package could include:

• Strategy Development: Creating a comprehensive SMS strategy tailored to the client's goals, whether it's driving sales, increasing engagement, or building loyalty.
• List Growth & Management: Actively growing the client's subscriber list through various tactics (like website pop-ups, social media campaigns, or in-store signage) and maintaining list hygiene.
• Campaign Creation & Execution: Crafting and scheduling a set number of campaigns per month (e.g., promotional blasts, new product announcements, event reminders).
• Automation Setup: Building automated text message flows, such as welcome series for new subscribers or abandoned cart reminders.
• Reporting & Analytics: Providing monthly reports detailing key metrics like open rates, click-through rates, conversion rates, and overall ROI.

Pricing Your Retainer

When setting your retainer fees, consider factors like the client's size, the number of subscribers, the volume of messages sent, and the complexity of the campaigns. You might offer tiered packages—Basic, Standard, and Premium—to cater to clients with different needs and budgets.

For example, a Basic package might include two campaigns per month for a list of up to 1,000 subscribers, while a Premium package could offer unlimited campaigns, advanced automation, and dedicated support for a much larger list.

2. The Performance-Based Model

For clients who are more results-driven and perhaps hesitant to commit to a fixed retainer, a performance-based model can be an attractive alternative. In this structure, your agency's compensation is directly tied to the results you generate. This approach aligns your success with your client's success, creating a powerful partnership.

Types of Performance-Based Pricing

• Pay-Per-Conversion: You earn a fee for each sale or lead generated directly from your SMS campaigns. This is easy to track with unique promo codes or UTM links.
• Revenue Share: Your agency takes a percentage of the total revenue generated from the SMS marketing channel. This model works best for e-commerce clients where sales can be clearly attributed.
• Pay-Per-Subscriber: You are compensated for each new, qualified subscriber you add to the client's list.

The key to a successful performance-based model is transparent and accurate tracking. Ensure you have the right tools and processes in place to measure results reliably. While this model can be highly lucrative, it also carries more risk, as your income can fluctuate based on campaign performance.

3. The Hybrid Model

A hybrid model combines the stability of a retainer with the high-earning potential of performance-based pricing. This structure often involves a lower base retainer fee supplemented by performance bonuses.

For instance, you might charge a modest monthly fee to cover your operational costs and time for managing the account. On top of that, you could earn a commission for every sale generated or a bonus for exceeding specific key performance indicators (KPIs), such as achieving a certain click-through rate or list growth target.

This model is often a win-win. The client gets a dedicated team working on their account for a reasonable base price, while your agency is incentivized to drive the best possible results. It offers the security of predictable income with the upside of performance-based rewards.

4. One-Off Projects & Audits

Not every client will be ready for a long-term commitment. Offering one-off projects and audits is an excellent way to get your foot in the door and showcase your expertise. These smaller engagements can often lead to more extensive, ongoing work once you've demonstrated value.

Examples of One-Off Services

• SMS Marketing Audit: Conduct a comprehensive review of a client's existing SMS strategy (if they have one). Analyze their list quality, campaign performance, and compliance practices, then provide a detailed report with actionable recommendations.
• Campaign Setup: For a flat fee, you can set up a client's SMS marketing platform, create their initial list-building tools (like keywords and web forms), and design their first few automated campaigns (e.g., a welcome series).
• Seasonal Campaign Package: Offer a special package for a specific holiday or event, like Black Friday or Mother's Day. This could include strategy, copy, design, and execution for a short-term, high-impact campaign.

Pricing for these projects should be based on the scope of work and the estimated time required for completion. One-off services are a low-risk entry point for new clients and can be a profitable revenue stream on their own.

Start Earning with SMS

Adding SMS marketing to your agency's offerings is more than just adding another service—it's about tapping into a powerful, high-engagement channel that can deliver significant returns for your clients. By choosing the right pricing model, you can create a profitable and sustainable revenue stream for your agency.

Whether you opt for the predictability of a retainer, the high potential of a performance model, or the flexibility of a hybrid approach, the key is to align your pricing with the value you provide. Start by understanding your clients' needs, define clear deliverables, and track your results meticulously. By doing so, you'll be well on your way to successfully monetizing SMS marketing and driving growth for both your clients and your agency.