How to build a business case for a social media agency

Key takeaways

A social media agency business case answers one question: how many extra customers does the fee need to pay for itself? For example, a £1,500 monthly fee against £500 profit per new job breaks even at three extra jobs a month. Add the risks, the measures and a review date.

• Start with the break-even: fee divided by profit per new customer.
• Example: £1,500 a month at £500 profit per job needs 3 extra jobs.
• Include your team's time saved as well as new sales.
• Set a review date three months in, with agreed measures.

What is a social media agency business case?

A social media agency business case is a short document that sets out the cost of an agency, the return it needs to deliver, the alternatives, the risks and how success will be measured. It helps a director, partner or board approve the spend on evidence rather than opinion.

• Social media agency pricing in the UK
• When does a social media agency pay for itself?

How do you build the case in five steps?

Build the case in five steps, each on half a page. Keep the numbers simple and label any assumption clearly, so the person approving it can challenge the right thing.

• 1. State the problem: what is not happening now and what it costs.
• 2. Cost the options: agency, hire, freelancer or do nothing.
• 3. Work out break-even: fee divided by profit per new customer.
• 4. List the risks and how each is reduced.
• 5. Set measures and a three-month review date.

• In-house versus agency social media for UK businesses

How do you work out break-even?

Divide the monthly fee by the profit from one new customer. As an illustrative example, a £1,500 fee and £500 profit per new job means three extra jobs a month cover the cost. If customers return, use profit over their lifetime instead, which lowers the number needed.

• Customer lifetime value: what a social customer is worth

What should you include besides sales?

Include time saved. If the owner or a manager spends six hours a week on social media at £40 an hour, that is about £960 a month of time returned to other work. Recruitment, reputation and support for other channels are real benefits too, but harder to count, so list them separately.

What risks should the case cover?

Cover the risk of poor results, long contracts, losing account access and slow approvals inside your own business. Each has a simple control: a rolling monthly term, your business owning all accounts, agreed measures and one named approver.

• The cost of a bad social media agency

What does this look like in practice?

A pattern we see with UK professional services firms: a marketing lead wants an agency but the partners see it as a cost with no clear return. A one-page case with a break-even figure and a three-month review usually moves the conversation. Global Bridge Labs (GBL) helps clients put those numbers together before any commitment.

• See client work
• Social Media Marketing for UK businesses

Business case checklist

Make sure the case includes these.

• The problem and what it costs now.
• At least two costed alternatives.
• A break-even number of customers.
• Risks and controls.
• Measures and a review date.

• The cost of a bad social media agency
• Temporary social media cover: maternity and absence costs

Next step

Tell us your fee range and the value of a typical customer. We will help you work out the break-even number for your case.