If you want your agency to still be here in five or ten years, you’ll need to think about more than just selling and delivering. Over the years, we’ve seen so many bright, creative and talented agencies go under because they didn’t get the basics right when it came to the numbers within their business.
Peter Czapp, co-founder of The Wow Company and The Agency Collective, shares insights on hourly rates and how to price to maximise the profit you make. Watch this video to discover how agencies price, the average hourly rates for all levels within an agency, and the pricing secrets of the most profitable agencies.
Started in 2012, our agency benchmark report, BenchPress, has grown to become the largest survey of independent agency owners in the UK. Download this year's reports to get insights into what’s required to ensure your agency is in the best shape possible, whatever the market conditions.
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We've taken our pricing benchmarks and put them into a solo report for you. As well as sharing hourly rates, we explore different pricing models, how transparent agencies are when they price, what they charge for different levels of expertise, average project values, and what the top 25% of agencies do differently.
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"I used to be obsessed with the money, now I'm obsessed with the progress"
Dines from Studio Blup
"By focusing on sustainability, you can actually drive more growth and profit"
Jenny Kitchen from Yoyo Design
"Running my agencies to be absolutely transparent has led to better team buy in and decision making"
Steve Parks from Convivio
"I started the business with £400"
Chris Donnelly VERB brands
Being profitable is the cornerstone of a sustainable agency. However, think about profit as fuel for your journey, rather than the purpose of your agency. You won’t be able to go very far if you’re not making any money.
Beautiful businesses are designed in a sustainable way. They don’t chase growth for the sake of it. They have recurring revenue and positive cash flow that allows them to make decisions based on what is best for the long-term, rather than operating month-to-month, making decisions based on short-term horizons.
How could you redesign your business model to make it more sustainable?
The purpose of a company is not to make money. The purpose of a company is to accomplish something, to advance a greater cause, to contribute to society. Money will help you get there
This is the amount of profit you have left once direct costs, chargeable wages and freelancer costs have been removed- expressed as a percentage of fee income.
It is a key determinant of the value of your agency. We have created a helpful video explaining the process here and why it should be important to you.
“We’ve learnt so much working with the team at Wow. They’ve helped us put together and implement initiatives that have made us more profitable. This has allowed us to invest more in our agency and our people.”
We can help you do that with an Agency Profit Review. We’ll look at all the ways you can increase your profit, including reviewing how you measure up against the most profitable agencies. You’ll leave with an action plan to increase the profit you make right away. Book a chat with Rory.
As well as thinking about how we manage profit and cash, we should also be thinking about how we care for our planet. Humans are living a life that is consuming and taking away from the planet at a rate we can’t sustain. If we want our children to enjoy the beauty that is all around us, we’ll need to re-think the way our businesses impact the environment.
In 2019, Wow partnered with Offset Earth to create a Climate Positive Workforce, planting 600 trees a month to offset the carbon we produce. Click here to find out how you could do the same for your agency.
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