Social media agency quote vs estimate: what is binding?

Key takeaways

A social media agency quote is usually a fixed price for a defined scope, while an estimate is a best guess that may change. If you accept a quote, the agency should not charge more unless the scope changes. An estimate allows variation, so ask for a cap. Check whether figures include VAT.

• Quote: a fixed price for a defined scope.
• Estimate: a best guess that can change.
• Ask for a cap on any estimate.
• Check whether VAT is included.

What is the difference between a quote and an estimate?

A quote is a firm offer to do specified work for a specified price; once accepted, it is generally binding for that scope. An estimate is an informed guess, often for work whose size is uncertain, such as fixing a messy ad account. The wording on the document matters.

• Social media agency pricing in the UK
• What a good social media agency proposal contains

When can the price change?

Under a quote, when you change the scope: more posts, extra platforms, urgent turnarounds or extra revision rounds. Under an estimate, when the work proves bigger than expected, ideally only after the agency warns you. Agree that any change needs your written approval first.

• Quote: changes only with scope changes.
• Estimate: may move, ideally with a cap.
• Extras: written approval before work.
• Rush work: priced separately.

• Social media agency rush fees: what urgent work costs

Which is better for a buyer?

A quote gives certainty and suits defined work such as a monthly retainer or a set campaign. An estimate suits uncertain work, but only with a cap and regular updates. If the work is clear, ask for a quote.

When is a fixed quote unrealistic?

For audits of accounts nobody has looked at, recovery work after a hack, or projects that depend on your team's speed. Forcing a fixed price there leads agencies to pad the quote. A capped estimate with a check-in point is fairer.

What does this look like in practice?

A pattern we see: an estimate for a set-up runs well over because tracking is broken. Agreeing a check-in after the first few hours, with a revised figure before carrying on, usually avoids surprise invoices.

• See client work
• Social Media Marketing for UK businesses

Quote or estimate checklist

• Check the document says quote or estimate.
• Confirm scope is listed item by item.
• Ask for a cap on any estimate.
• Check VAT is shown clearly.
• Require written approval for changes.

• Am I paying my social media agency too much?
• Paying a social media agency in equity or services

Next step

Look at your last agency document. If it says estimate and has no cap, ask for one before work starts.