Why I Started Shade Digital
Scaling My Services
It was the third six figure job offer that came in in two days that got me thinking.
The companies that offered me those positions had incredible opportunities that would make a significant impact on their businesses. It was an honor to be entrusted by them.
But I kept thinking, why can I choose only one?
My passion is digital advertising and I yearn for a challenge. I started Shade Digital so I can help multiple businesses at the same time. It was a way to scale my services beyond one company.
Fixing Ad Agency Pricing
It wasn’t enough to just start a digital marketing agency, after working at other agencies and knowing many people in the business, I wanted to improve on the model. The traditional cost based, monthly retainer & hourly rates that agencies charge have a reverse incentive.
Cost based pricing focuses on charging a percentage of the clients adspend. Agencies are incentivized to keep increasing the cost to clients in order to show revenue growth for themselves.
Monthly retainer is a fixed fee every month that incentivizes agencies to work as little as possible in order to maximize the amount of clients they can take on per employee. This stretches employees thin and clients aren’t getting maximum value.
Hourly rates incentivize having lower level or less knowledgable employees do the work. That way agencies pay less in wages per employee while padding their margins. In the end, the client’s work may not be done by people qualified to do the work.
Shade Digital is different. We offer value based pricing while building in safeguards for the client. If we don’t hit the clients goals, we don’t get paid. It’s that simple. Agencies shouldn’t be paid top dollar for shoddy work. With value based pricing, we’re incentivized to hit client goals.
We still offer traditional agency pricing for businesses uncomfortable with the concept of the value based method. The idea is to give the client maximum choice and flexibility in payment options.
About Shade Digitals Founder
Ryan McDonald has managed advertising budgets over $2,000,000/month for large ecommerce companies, built lead generation programs, worked on political campaigns, grew local businesses & was a keynote speaker at a mobile conference.
Now his talent & Shade Digital, are standing by to accept your company’s challenge.