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Tag Archives: overhead factor

Paying peanuts? – It is not the smartest advertising agency remuneration strategy

Share45 Tweet2 +13 ShareShares 50No one wants to be paying too much for their advertising. But likewise, there are downsides to paying too little. We see it all the time, advertisers call us in because they are unhappy with the performance … Continue reading

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The importance of overhead in agency compensation

There are a number of variables involved in the most common head hour or cost based agency compensation models being: salary costs, billable hours per year, overhead and profit margin. Each of these are often contested in negotiations, but one of the least understood and often overlooked is the overhead factor.
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