Small program agency quotes and fees: analysis of the value behind and composition of the

I. Factors affecting the offer

(i) Scope of service lines

1. Basic services
   • This includes the daily maintenance of the small program, content updates, data backup and other basic operations. These services are the basis for ensuring the normal operation of small programs, and the cost is relatively fixed. The general monthly cost of basic services is about several thousand dollars to ten thousand dollars, depending on the size and complexity of the small program.
   • For example, a simple enterprise display applet with less frequent content updates and a smaller amount of data may have a relatively low basic service fee. On the other hand, an e-commerce applet with more complex functions, which requires frequent updating of product information, processing of order data, etc., will have a relatively high basic service cost.
2. Core Operational Services
   • It covers key aspects such as user operation, marketing and promotion, activity planning and execution. These services directly affect the user growth, activity and conversion rate of the small program, which is the core work content of the agency and an important part of the offer.
   • The user operation aspect includes the formulation and implementation of strategies for user attraction, retention and activation, and the cost usually depends on factors such as the number of target users and the difficulty of user growth. For example, the cost of attracting new users through social media promotion and offline activities may range from tens of thousands of dollars to hundreds of thousands of dollars, depending on the choice of promotion channels, the scale of the activities and the expected results.
   • Marketing and promotion services involve a variety of tools such as search engine optimization (SEO), social media ad placement, and content marketing. The cost varies depending on the promotion platform, advertisement placement budget, marketing content production cost and other factors. For example, placing ads on WeChat's circle of friends may cost from a few thousand dollars to tens of thousands of dollars, depending on the scope and duration of the ad placement.
   • Event planning and execution costs, on the other hand, depend on the type, size and complexity of the event. A small online promotion may cost around $10,000, while a large offline branding campaign may cost up to hundreds of thousands of dollars.
3. value-added service
   • Such as data analysis and reporting, customized development, customer service and other value-added service items. These services can provide enterprises with deeper insights and personalized solutions to further enhance the operational effectiveness of small programs, but will also increase costs accordingly.
   • Data analysis and reporting services to provide decision-making support for enterprises through in-depth analysis of applet user data. Fees are generally charged on a monthly or quarterly basis, and may range from a few thousand dollars to tens of thousands of dollars per month, depending on the depth and breadth of data analysis.
   • Customized development services to expand the functionality or customize the design of the applet according to the special needs of the enterprise. The cost is estimated based on the development workload and difficulty, which may range from tens to hundreds of thousands of dollars. For example, the cost of developing a personalized recommendation system for an e-commerce applet will depend on the complexity of the algorithm and the development time.
   • Customer service, including online customer service, after-sales service, etc., to ensure that users receive timely help and support in the process of using small programs. The cost is usually determined by factors such as the number of customer service personnel, service time and service quality requirements, and the monthly cost may range from a few thousand dollars to tens of thousands of dollars.

(ii) Small program size and complexity

1. Small program size
   • Factors such as the number of pages, the number of functional modules and the amount of data in a small program determine its size. Larger small programs usually require more time and energy for maintenance and operation, so the cost of operation will be relatively high.
   • For example, an e-commerce applet with hundreds of pages, multiple complex functional modules (such as online payment, membership system, points mall, etc.) and a large amount of commodity data will significantly increase the cost of the generation of operation compared to an enterprise publicity applet with only a dozen or so pages and simple display functions. This is because in terms of content updating, function optimization, data management, etc., the former needs to invest more manpower and resources.
2. Small program complexity
   • The functional complexity of the small program will also affect the quotation. Some small programs with special functional requirements, such as real-time positioning, live video broadcasting, artificial intelligence interaction, etc., require a higher level of technology and expertise to realize and operate, which will undoubtedly increase the cost of the agency, thus leading to a rise in the quotation.
   • Take a takeaway small program with real-time positioning function as an example, in order to ensure the accuracy and stability of positioning, the agency needs to make a large investment in technical research and development, server configuration, data security and other aspects. Meanwhile, for small programs with live video broadcasting function, they need to deal with complex issues such as transmission, storage and playback of video streams, which will also increase the difficulty and cost of operation. As a result, the agency operation cost of such small programs is usually much higher than that of ordinary small programs.

(iii) Operational objectives and expected results

1. Operational Target Setting
   • The quotes from the agency will vary depending on the enterprise's operational goals for the mini-program. If the enterprise's goal is to rapidly increase the number of users, the agency may need to adopt large-scale promotional activities and user pulling strategies, which will lead to an increase in costs. For example, to attract users by advertising in multiple channels and organizing large-scale online and offline activities, the cost of these promotional activities will directly affect the cost of agency operation.
   • On the contrary, if the company's goal is to increase user conversion and retention rates, the agency will need to focus more on user experience optimization, precision marketing and personalized services. This may require more time and effort to be invested in data analysis, user behavior research and marketing strategy development, which will also have an impact on the offer. For example, through the in-depth analysis of user data, to provide users with personalized recommendations and services, to increase the user's willingness to buy and loyalty, these tasks need to be completed by a professional data analysis team and marketing experts, and the corresponding costs will be included in the offer of the generation of operation.
2. Evaluation of expected results
   • The enterprise's expectation of the effect of small program operation will also affect the quotation. If the enterprise expects to achieve significant performance improvement in a short period of time, such as doubling sales and a significant increase in the number of users, the agency will need to bear more pressure and risk, and therefore will consider the corresponding risk premium in the quotation. At the same time, in order to achieve the desired results, it may be necessary to invest more resources and adopt more aggressive operational strategies, which will also lead to higher costs.
   • On the other hand, if the enterprise's expectation of the operational effect is more reasonable and progressive, the agency can develop a more robust operational plan, and the cost will be relatively smooth. For example, if the enterprise wants to increase the user conversion rate of the small program by 20% in one year, the agency can formulate a gradual operation strategy according to this goal, allocate resources reasonably, and the offer will be reasonably adjusted according to the actual situation.

(iv) Operational cycle and modes of cooperation

1. The length of the operating cycle
   • The cycle of operation is an important factor that affects the price quoted. Generally speaking, the longer the generation of operation cycle, the lower the average monthly cost is relatively. This is because on behalf of the operating company in the long-term cooperation can better plan resources, develop long-term operational strategies, and can enjoy a certain scale effect, thus reducing the unit cost.
   • For example, a one-year OEM contract may offer a discount on the monthly OEM fee compared to a three-month short-term contract. For long-term customers, the agency may provide some value-added services or preferential policies, such as free data analysis training, regular operation summary report, etc., to enhance the customer's willingness to cooperate and loyalty.
2. Selection of cooperation methods
   • OEMs usually offer a variety of cooperation methods, such as fixed-fee model, commission model or hybrid model. Different cooperation methods have different impacts on the quoted price.
   • Fixed fee model is that the enterprise pays a fixed service fee to the agency operating company every month, and the fee is relatively stable regardless of the operating results of the small program. This model is suitable for enterprises that have clear budgetary control over operating costs, but the earnings of the agency operating company have less correlation with the actual performance of the small program, which may affect its motivation. The amount of the fixed fee is determined according to the scope of the service project, the scale of the small program and other factors, generally ranging from tens of thousands of dollars to hundreds of thousands of dollars per month.
   • The commission model is that the operating company extracts commission as compensation according to a certain percentage based on the actual performance of the small program (e.g., sales, number of user growth, etc.). Under this model, the revenue of the agency is directly linked to the operating results, which can motivate it to be more active in improving the performance of the small program. However, for enterprises, the cost has a certain degree of uncertainty, especially in the early stage of operation, and may need to bear higher risks. The commission rate is usually between 5% - 20%, depending on the characteristics of the industry, the difficulty of operation and negotiation between both parties.
   • The hybrid model, on the other hand, combines the characteristics of fixed fees and commissions, with the enterprise paying a certain amount of basic service fees and at the same time rewarding the agency operating company with a certain percentage of commission based on the performance of the small program. This model balances the interests of the enterprise and the agency to a certain extent, which ensures that the agency has a certain amount of basic income, and also incentivizes it to obtain additional income by improving its performance. The offer structure under the hybrid model is relatively complex and needs to be determined by comprehensive assessment and negotiation on a case-by-case basis.

(v) Market competition and industry levels

1. market competition
   • The level of competition in the small program agency market has an impact on the quotes. In areas or industries with fierce competition, the agency may reduce the quotation to a certain extent in order to attract customers. However, too low a quotation may lead to a decline in the quality of service or failure to provide comprehensive service content, so enterprises should not only look at the price when choosing the agency, but also need to comprehensively consider the company's strength, reputation and service quality.
   • On the other hand, some OEMs with unique competitive advantages or advantages in specialized fields may have higher pricing power in the market due to their brand value, expertise and successful cases. For example, some OEM companies focusing on a specific industry (e.g. healthcare, education, finance, etc.) may offer relatively higher prices due to their in-depth knowledge and rich experience in the industry, which enables them to provide more professional and targeted services to enterprises. Enterprises need to weigh their needs and budgets, and choose the agency that suits them.
2. Industry average
   • There exists a certain average offer level in the small program agency operation industry, which is determined by a combination of factors such as market supply and demand, industry cost structure, and prevailing service standards. Understanding the average level of the industry can provide a reference benchmark for enterprises to help them determine whether the offer of the agency operation company is reasonable. Generally speaking, the industry average quotation will be adjusted with the changes of market environment, the development of technology and the fluctuation of operation cost.
   • For example, with the continuous maturity of applet technology and the gradual saturation of the market, the competition in the agency operation industry has intensified, which may lead to a decrease in the overall average quotation. At the same time, the emergence of some emerging technologies and service models (such as artificial intelligence marketing, big data precision operation, etc.) may raise the industry's service standards and costs, thus driving up the average offer. When referring to the industry average, enterprises also need to conduct a comprehensive analysis in combination with the characteristics and specific needs of their own small programs to avoid blindly pursuing low-priced or high-priced services.

II. Breakdown of cost components

(i) Labor costs

1. Project Team Formation
   • The agency needs to form a professional team for each small program project, including project managers, operation specialists, marketing planners, designers, development engineers, data analysts and customer service personnel. Team members have different levels of expertise and experience, and their salaries vary.
   • Project Manager is responsible for the overall planning, coordination and communication and progress control of the whole project, usually with rich project management experience and industry knowledge, relatively high salary. Operation Specialist is responsible for the daily operation of the small program, user management and content update, etc., need to have good communication skills and operation skills. Marketing planners are responsible for the development of marketing and promotion strategies and activity planning programs, requiring keen market insight and innovative thinking. Designer is responsible for the interface design and user experience optimization of small programs, and needs to have solid design skills and aesthetic ability. Development engineers are responsible for the technical development and maintenance of small programs, and need to master multiple development languages and technical frameworks. Data analysts are responsible for analyzing and mining the user data of the small program to provide support for operational decisions, and need to have knowledge of data analysis and statistics. Customer service personnel are responsible for answering user inquiries and complaints, providing quality customer service, need to have a good service attitude and communication skills.
   • Depending on the size and complexity of the project, the number of team members configured will vary. In general, a medium-sized small program project team may include around 5 - 10 people. Labor cost is one of the main components of the agency fee, accounting for about 40% - 60% of the total fee.
2. Personnel wages and benefits
   • Staff salary depends on the market conditions of different positions and regions. Taking a first-tier city as an example, the monthly salary of a project manager may range from 15,000 - 30,000 RMB, the monthly salary of an operations specialist from 8,000 - 15,000 RMB, the monthly salary of a marketing planner from 10,000 - 20,000 RMB, the monthly salary of a designer The monthly salary of a marketing planner is between $10,000 - $20,000, a designer is between $10,000 - $18,000, a development engineer is between $12,000 - $25,000, a data analyst is between $10,000 - $18,000, and a customer service agent is between $5,000 - $8,000. - The monthly salary for customer service staff is between $5,000 and $8,000.
   • In addition, the agency also needs to provide employees with welfare benefits, such as social security, provident fund, paid annual leave, holiday benefits and so on. The cost of these benefits is also included in the labor cost, which generally accounts for about 30% - 50% of the personnel's salary.

(ii) Technology and tooling costs

1. Server Rental and Maintenance
   • Small programs need to run on servers, and the agency needs to rent suitable servers for its clients and carry out daily maintenance and management. The server rental cost depends on factors such as server configuration, bandwidth and storage space. Generally speaking, the monthly rental cost of a moderately configured server is between $1,000 - $5,000.
   • At the same time, in order to ensure the stable operation of the server and data security, on behalf of the company needs to be equipped with professional technicians to carry out server maintenance and management, including system installation, configuration optimization, security protection, data backup and other work. The cost of server maintenance is about $500 - $2,000 per month.
2. Software tools and platform utilization fees
   • The agency process requires the use of various software tools and platforms, such as data analytics tools, marketing automation software, social media management platforms, and design software. These tools and platforms usually require a paid subscription or the purchase of a license to use them, with the cost depending on the functionality and scope of use of the tool.
   • For example, a monthly subscription to a specialized data analytics tool may cost between $1,000 - $5,000, and the cost of using a social media ad placement platform may be charged as a percentage of the ad placement budget. Design software purchases can range from a few thousand dollars to tens of thousands of dollars, depending on the version and features of the software. The cost of software tools and platform usage accounts for approximately 10% - 20% of the total cost.
3. Small program development and upgrade costs
   • If the small program needs to be functionally upgraded, customized developed or bugs fixed, the agency needs to invest in the corresponding development costs. The development cost is estimated according to the development workload and difficulty, and generally ranges from 200 - 1,000 RMB per hour. The exact cost depends on the technical level and experience of the development engineers, the complexity of the project and the development time required.
   • For example, adding a new functional module to a small program may require development engineers to spend a few days to a few weeks to develop, test and go live, and the development cost may range from tens of thousands of dollars to hundreds of thousands of dollars. The cost of small program development and upgrading depends on the actual needs of the project, and is a relatively unstable part of the cost composition, and may be higher in some cases, especially for small program projects that require frequent feature updates and optimization.

(iii) Marketing and promotion costs

1. Cost of advertising
   • Marketing and promotion is one of the important aspects of small program operation, and advertising is a common means of acquiring users and enhancing brand awareness. The cost of advertising depends on factors such as the advertising platform, the form of placement, the time of placement and the budget for placement.
   • Common advertising platforms include WeChat advertising, Baidu promotion, today's headline advertising, jittery sound advertising and so on. Different platforms charge different rates for advertisements, for example, WeChat Friend Circle ads are billed according to the amount of exposure or clicks, with prices ranging from tens to hundreds of dollars per thousand exposures, while the rate for clicks is based on the advertiser's bid and competition. The cost of Baidu promotion mainly includes the cost of keyword bidding and the cost of advertisement display, the bidding price of keywords depends on the degree of competition and the heat of the keywords, and the cost of advertisement display is calculated according to the number of times of display and the number of clicks.
   • The advertising budget depends on the operational goals of the company and the market situation, generally speaking, the monthly advertising budget may range from tens of thousands of dollars to hundreds of thousands of dollars. For some large enterprises or highly competitive industries, the advertising budget may be higher. Advertising costs account for a relatively large portion of marketing and promotion expenses, usually around 50% - 80%.
2. Event planning and execution costs
   • The agency will plan a variety of marketing activities for the small program, such as online promotions, offline promotional activities, brand publicity activities and so on. Activity planning and execution costs include activity planning fees, activity material production costs, venue rental fees, personnel costs and so on.