I just found out my billable rate, can I use this in negotiations for a higher salary? It’s almost 5 times my hourly rate.

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Posting as :
works at
You are currently posting as works at

It won’t help you for your salary negotiations, but it will help you set a reasonable freelance rate.

likehelpful

Well, when it comes time. Senior writers can pull $1,000/day in most major markets.

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How do you think an agency makes money? Billable won’t help you with negotiating a raise. Your output, awards, growth ad leadership will.

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Only if you have a plan for lowering the cost of your health insurance, employment taxes, tour 401k match, the licenses for all the tools you use, and every other non-salary cost of keeping you employed. There are lots.

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Oh, man. Seems like you just discovered the business world. Must be great to look at things with your eyes right now.

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I’be been in fetal position sense

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.

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likefunny

More than half the money an
agency takes in, they spend on rent, healthcare, etc. After paying salaries, the margins are pretty small. Nobody is getting rich doing this anymore, except maybe the holding company execs who are skimming a percentage off the top of hundreds of agencies. But agencies are not very good businesses anymore. Don’t let that rate fool you.

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As ECD says, an agency's total staff cost is typically between 55% and 60% of revenue.

Staff cost is not just salaries, but health insurance, etc. Also it's the total staff cost - your billable hours continues to the wages of all the back office staff who the agency needs so you can do your job.

Again, as ECD says, the gravy days have been over for a long time.

I don’t see how it helps negotiations. At least not more than just stating what you’ve achieved since your last raise.

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Not an expert on this stuff but I’d think our actual hourly rates include stuff like working on retainer accounts, pro bono, admin, and of course just general things that interrupt our days.

For billing hours to an account that time is basically deep work just for that project. Again, just my thoughts 💭

Good insights, thanks everyone.

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