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How to build data costs into your retainer

Work out what each contact really costs, add a buffer for losses, and price list-building into a retainer you can defend.

Article · 2 min read · Updated

Data is the cost agencies tend to guess. Then a client asks for double the volume, and the margin disappears. A clear cost per contact fixes that, and lets you quote the same way every time.

Start with the cost per contact

In ContactYard, searching is free. You use one credit when you unlock a contact's email and phone together. Credits come with a monthly plan, so your cost per contact depends on how many you use.

PlanPriceCredits per monthCost per 1,000 if you use them all
Growth$4910,000$4.90
Scale$9930,000$3.30

Unused credits carry forward for two billing months, so a quiet month doesn't have to be wasted.

Add a buffer for contacts you lose

Not every contact you unlock gets emailed. Some are removed as competitors or wrong titles. Some bounce and need a replacement. Add 15 to 25% to your contact count when you price.

Fictional client: 3,000 new contacts a month

Contacts to email
3,000
Buffer for removals and bounces (20%)
600
Credits needed
3,600
Cost at the Growth rate
About $17.60
Cost at the Scale rate
About $11.90

That is the data line for one client. Compare it to your sending tools and your team's hours, which are almost always the bigger costs.

Three ways to charge for it

MethodGood forWatch out for
Bundle it into the retainerMost clients. Simple to explainSet a contact cap per month
Pass it through at costClients who want to see every dollarMore invoices and more questions
Charge per contact above the capClients who may ask for more volumeAgree the rate in writing before you start

Tip: Bundling with a monthly contact cap works best. The client gets a clear number, and you get a limit to point to.

Quote before you sign

Because search is free, you can run the client's real filters, read the total and price the work on the same call. Check their market size first, so you only quote a campaign that can run for a year.

Common mistakes

  • Pricing on the plan cost alone. A plan serves several clients. Split it by contacts used.
  • Forgetting the buffer. Replacements are real contacts and cost real credits.
  • No monthly cap. Without one, volume creeps up and nobody remembers agreeing to it.

What to do next

Show the client what they're getting for it: report list quality every week.

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