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Ayy we got a real business school grad over here. Mr numbers
Rising Star
Well I’m 6’0 and our ceilings are around 16ft +/- and you figure the avg for all is around 5’9 so we have about 10’3ft of headroom.
What
Yes margin. My agency is pushing for a larger margin and I don’t think that’s possible so I need more examples. Someone please help.
Chief
Since nobody is answering your question and they’re just making fun of you, I’ll try to tell you what I know, which isn’t much.
I’m a creative, not a business person. I currently work freelance and got to peek at the budget numbers that someone shared by mistake with me on a folder that had other stuff.
I’m working with a partner and we both were curious how much the agency was making off of us. We were getting a decent rate. The budget for this particular project had what they were charging the client for our time, plus the agency staffers which were a CD, a couple account people, a strategist. This was for the creative conception phase. Then the production budget. They were charging the client for people who were not touching the project. At least when we started it. Some may have been there in the earlier exploration phases, but we never saw them, except in a project pitch deck with their bios. These were higher up account directors and a GCD. The strategist was there for one meeting where he basically approved everything we did and had zero comments. That was the last time we saw him.
Anyway, after all those costs taken out (really just the people who were actually working on the project in the concept phase, and the production budget), there was about the same amount for “agency fees”. So it was basically a 100% markup.
Which seemed a little insane to me. But I’m not familiar with those numbers and have no comparison. I don’t know if this is the norm or not.
ACD2 - The norm for freelance rates is generally 50% of the client billed rate. I’ve seen this at multiple agencies.
Not all of that other 50% is profit tho. It pays for agency overhead as well - non billable staff, non billable time (like internal projects + management), software licenses, tech, agency expenses, etc.
Max Headroom?
Margin?!?
Unfortunately I haven’t found a room to get head. Not enough office space anymore. Wby?
I need examples to show my boss an average creative department margin. Please anyone help.
Rising Star
This is really a question for finance and hr and heavily reliant or the clients scope which is different for all.
Do you mean overhead? Like, how much is the agency spending just to keep the literal lights on?