Costs and pricing
Part of How to compare UK business-to-business demand generation agency pricing
How to compare UK business-to-business demand generation agency pricing
Compare UK business-to-business demand generation agency pricing: retainer, project and performance models, VAT treatment and the checks to make before you sign.
What to take away
- UK agencies price business-to-business demand generation in four ways: a monthly retainer, a fixed project fee, a fee per qualified lead, and a blended day rate.
- Retainers cover most ongoing programmes. Project fees suit a single audit, pilot or launch.
- Fees rarely include media spend, data subscriptions or event costs, so compare total programme cost.
- VAT is added at the standard rate when the agency is VAT registered, so a GBP 6,000 fee example becomes GBP 7,200 on the invoice.
- Give every agency the same brief, period and deliverable list before you compare numbers.
The pricing models UK agencies quote
Most agencies quote from a small set of models, and each one moves risk between you and the supplier. The model matters more than the headline rate.
Agency pricing models compared
Retainer
- Billed as
- Fixed monthly fee
- Fits
- Ongoing programme
- Check
- Deliverables per month
Project
- Billed as
- Fixed price per deliverable
- Fits
- Audit, pilot, launch
- Check
- Change request rates
Performance
- Billed as
- Fee per qualified lead
- Fits
- Short sales cycle
- Check
- Lead definition and caps
Day rate
- Billed as
- Blended rate per person
- Fits
- Overflow, ad hoc work
- Check
- Hours cap and reporting
Pricing models UK agencies quote
Billed as
- Retainer
- Fixed monthly fee
- Project
- Fixed price per deliverable
- Performance
- Fee per qualified lead or meeting
- Day rate
- Blended rate per person
Fits
- Retainer
- Ongoing programme
- Project
- Audit, pilot, launch
- Performance
- Short sales cycle, clear offer
- Day rate
- Overflow, ad hoc work
Check
- Retainer
- Deliverables per month, exit notice
- Project
- Change request rates
- Performance
- Lead definition and caps
- Day rate
- Hours cap and reporting
Retainers dominate ongoing work because demand generation rewards consistency. Ask what the agency will stop doing if you cut the budget by a quarter.
Performance deals look cheaper and are harder to police. Define a qualified lead in writing, including disqualification rules, before you agree a rate.
What sits inside a retainer fee
Two retainers at GBP 4,000 a month can buy very different amounts of work. Unpack the line items before you compare totals.
What a retainer fee covers
- Strategy and planning time with a named lead
- Paid media management, platform fees billed to you
- Content production, asset numbers and revision rounds
- Marketing automation, CRM and reporting configuration
- Data, enrichment and intent signal subscriptions
Questions to ask a business-to-business demand generation agency cover deliverable definitions, reporting cadence and exit terms. Settle those before you negotiate fees.
How VAT changes the number you pay
If the agency is VAT registered, VAT is added at the standard rate of 20% on top of the agreed fee. A GBP 5,000 monthly retainer becomes GBP 6,000 on the invoice.
VAT registered clients can usually reclaim VAT on agency services used for taxable business purposes. Partial exemption rules can reduce the reclaim.
GOV.UK explains when a business must register for VAT, which applies once taxable turnover passes GBP 90,000 across a rolling 12 months, the threshold since 1 April 2024.
A worked example on a GBP 60,000 budget
The figures below are illustrative, built to show how the models differ on one brief.
- Agency A quotes GBP 5,000 a month for twelve months. That is GBP 60,000 in fees plus GBP 12,000 VAT, so GBP 72,000 gross.
- Agency B quotes GBP 4,000 a month plus GBP 250 per qualified meeting, capped at 15 a quarter. Sixty meetings a year comes to GBP 63,000 in fees.
- Agency C charges GBP 150 per marketing qualified lead. The same GBP 60,000 buys 400 leads, but lead volume is not pipeline.
- Compare cost per qualified opportunity at each agency's own conversion rate. A lead that converts at 3% can cost more than one that converts at 8%.
Where compliance and data costs land
Outreach carries compliance costs that agencies bill for. The ICO direct marketing guidance sets out what counts as valid consent for email and phone contact, which shapes list building and consent records.
Buying signals sit in the same budget line. Our intent data and buying signals guide explains what to ask a supplier for and where the data comes from.
Third party intent data is licensed rather than owned, so a subscription can sit inside the retainer or on your own invoice.
Checks worth making before you compare fees
Ask each shortlisted agency for its company number, then read the filing history on Companies House for turnover, headcount and late filings.
Two years of accounts show whether the agency is growing or carrying debt.
Ask for two references from clients of a similar size, and what changed after month six.
Common questions
Should I choose a retainer or a project fee?
For an ongoing programme a retainer gives the agency a reason to plan ahead. Choose a project fee when the deliverable is defined and you want a fixed price.
Do agency fees include media spend and software?
Almost never. Budget separately for paid media, event costs, data subscriptions and automation licences, and confirm who each platform bills.
How do I compare two quotes fairly?
Use the same brief, the same twelve-month period and the same definition of a qualified lead. Then compare cost per qualified opportunity rather than cost per lead.
