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“How much should I pay my agency?” you ask.
I will tell you.
As much as required to cover their direct salary cost, recoup their overhead and make a fair and reasonable profit.
What is that? You want a dollar amount? Okay.
What is the agency going to do for you? And how often?
And how efficiently do you work with the agency?
Is everything at the last minute?
Or do you have rounds and rounds of changes just trying to get the work approved?
To calculate how much you need to pay the agency you need to know the answers to these questions:
One. What is the agency going to do or produce for you?
Two. What is the level and type of resources they require to do this work based on the way you work with the agency?
Three. What is the mix of resource required in regards to senior and junior and in-between?
Four: What is the cost of these resource based on the quality of people capital required?
Five: What is a fair and reasonable overhead and profit margin?
Five questions that allows us at TrinityP3 to accurately calculate the answer to your question.
So how much should you pay your agency?
If you want to find out the answer, let me know. At TrinityP3 we have answered this question for hundreds of advertisers in more than 45 different markets around the world.
I am confident we can answer it for you.