Login or Join

Close this search box.

Guide to Agency Project Profitability

Individual client projects represent the basic building blocks of a successful public relations or marketing agency. Ensuring that those foundational elements generate the right margins makes the difference between a firm that operates at its full potential and those that may struggle to make ends meet.

Many agency leaders believe that their highest revenue clients contribute the most to the bottom line. In working with many agencies to examine their project profitability, it often becomes readily apparent that is not the case.

The only way to operate profitably is to control costs and price client engagements correctly.

What to Expect

This Guide provides the framework for creating and managing realistic project budgets that will help deliver maximum results for clients while also providing sustainable profit margins for the business.

You will find step-by-step guidance on how to set and follow budgets that work, including:

  • Calculating employee labor costs
  • Determining gross and net profit margins
  • Empowering project managers with budget accountability
  • Balancing transparency and legitimate confidentiality needs
  • Educating all employees to be better stewards of agency money
  • Using budgets to set effective pricing

Companion Budget Template

To facilitate your own project budgeting process, an Excel template is included that provides everything you need to get started. It incorporates simple formulas for calculating hourly labor costs, factoring in overhead expenses, and determining gross and net profit margins.

Want some help with your own agency business?

If you own a PR or marketing agency and want to drive profitable double-digit growth, we can help with audits, planning, workshops, and coaching.

Schedule a free consultation.

Never miss an article, episode, or event

Subscribe to the weekly SAGA Newsletter

Subscription Form