Question for those involved in pricing / P&L management: what is your overhead / cost / profit breakdown?

I’m curious to see how standard this is across agencies. For example, what I have seen is:

Overhead (including exec salaries) - 40%
Project Labor / Costs - 40%
Profit - 20%

What have you experienced?

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

And to clarify, I mean targets, not necessarily actuals.

20-30% is a general target but does depend on what type of service you’re offering (digital, media, shopper, etc.)

For OH in a retainer (for example), typically look at salary X 2.5-3.0 per FTE to ensure margin and costs are covered.

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