Start a Social Media Marketing Agency
SMMA Money Worksheet
Companion to the lesson "The honest money: retainers, churn, and the real math"
1. Retainer Band Inputs
Reference rows are sourced market figures (dated threads read for shape, not this quarter's price list). Fill your own price in the right column.
| Band | Course reference | Your price |
|---|
| First-year planning band (middle of what the dated threads show) | $400 to $1,000 per client per month, rising as proof accumulates | |
| Dated thread low end (2018) | $150 to $550/mo plans; one shop fell from $750 to $997 down to $300 to $350 | |
| Dated thread (2021) | new manager $300/mo across four platforms; peers reported at $1,000 to $1,200 | |
| Contested ceiling (2021 thread) | $2,000/mo for three posts a week, called extremely overpriced | |
| Full-service local agencies | $2,500 to $10,000+/mo | |
| Course pricing design (pilot and tiers) | pilot $300 to $500; tiers $500 to $800 and $900 to $1,500/mo | |
2. True Hourly Rate Calculator
Delivering for one client takes about 15 to 20 hours a month when you are new (operator consensus). These numbers define your effective hourly rate more than any price sheet does.
| Line | Worked example | Your numbers |
|---|
| Monthly retainer | $600 | |
| Hours per client per month | 15 | |
| True hourly rate | $40/hr | |
| Low case: $400 at 20 hours | $20/hr (happens to everyone at least once) | |
3. Tax Set-Aside Line
| Line | Reference | Your numbers |
|---|
| Tax set-aside from every retainer (structure and state dependent) | 15 to 30% (self-employment tax floor about 15.3%) | |
| Tool stack per month (scheduler + design + invoicing) | about $20 to $50; Meta Business Suite scheduling is free | |
| Income illustration: $7,500/mo gross | about $90k/yr revenue, about $50k/yr income after tools, tax set-aside, and unpaid sales time | |
4. Churn-Replacement Calculator
The single most important calculation in the course. Worked example, assumptions labeled: $6,000/mo target revenue at $750 per client.
| Line | Worked example | Your numbers |
|---|
| Monthly revenue target | $6,000 | |
| Retainer per client | $750 | |
| Clients needed | 8 | |
| Annual churn rate (social-media specialty; small agencies run ~32%; retainer-based agencies average ~18% with a ~56-month lifespan) | 46% | |
| Clients lost per year | 8 x 0.46 = about 3.6 (roughly one every three months) | |
| New clients to sell per year just to stay flat | 4 | |
| Peak firing risk window | the first 90 days; about 48% of departing clients cite dissatisfaction with delivery | watch months 1 to 3 |
Revenue is not income. From every retainer, subtract tools, taxes at 15 to 30% depending on structure and state, unpaid sales time, and the hours you deliver. Your sales engine is not a phase you graduate from. It is a permanent department: one hour a day, five days a week, starting the day you sign your first client.