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You’d have to know overhead, etc. which differs by market. But, in my experience, 150 rates correspond to people making 50-80k. A wide band, yes, I know. People billing 180 made 80-120 ish. And people billing 90-120 made 35-60ish. I didn’t mange people billing at 250 and up so I only assume they made more than me!
thanks so much for sharing, vp1! you rock
In general, I look at it like this. I have to generate 3x my salary as income for whatever business I work for. 1x to cover my salary, 1x to cover my benefits, and 1x for the business to make a profit. If you’re being billed at $150/hr your pay could be around $50/hr. If you work 50 weeks a year at 40 hours a week that’s 2000 hours which at $50/hr is around $100k a year. Of course we work in advertising so we never work 40 hour weeks but that’s generally how I look at it. You have to factor in experience and seniority as well.
I used benefits as a broad term. You would also factor in things like office rent, hardware/software, building insurance, security, parking ... things like that.
(Salary + 18%/ 1680)*2 + 30%. That should put you in the ballpark
Also margin
wow, i've never thought about it like this. but when you think about it, it's a great way to tell if you're getting underpaid.
Or is it not that simple?
Some agencies charge a conformed rate, meaning it’s the same hourly charge whether a junior or a C-suiter works on it.
Question is are they billing that based on a rate card or your actual comp package
About 105-110,000 as a full timer
I was listed at 170 and made 115