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The Average Agency Charge $190 per Hour

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# 1
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Screen Shot 2016-06-05 at 12.32.18 AM.pngHappy Tuesday Y'all.  I found this statistic.  My agency doesn't charge anywhere close to this range per hour.  We're in the $40-$60 per hour range... and we are development heavy.  I guess we are undercharging.  Smiley Happy

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Re: The Average Agency Charge $190 per Hour

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# 2
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By this scale, we are undercharging, too, @Tony_Guo.

 

We have different rates for:

1) Website design & development

2) Technology consulting & compliance audits

3) Brand building, logo design & graphic design

4) Social media marketing

5) Digital advertising: Adwords & Bing

6) Traditional advertising  

7) IT services & network admin

8) Computer repairs & custom builds

 

With that said... we are still undercharging (and know we are). I think the rates would be geo-related with larger cities typically bringing a higher rates. Competitors play a big part... as does skill set and client needs. 

 

Thanks for sharing this, Tony. Have a great week!

____________________________________________________________
Google My Business & Google Ads Top Contributor
Google Partner | GYBO Agency | Local Guide | My Profile


 


 


 

Re: The Average Agency Charge $190 per Hour

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# 3
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I agree with all of that. That's what we do too. However... it's interesting to see the market supports a $190 per hour rate for marketing agencies. I wouldn't have expected that number.

Re: The Average Agency Charge $190 per Hour

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# 4
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It is very interesting and I am glad you shared it.

I would guess that a rate that high is from large, corporate accounts. I know ad companies that work for Coca-Cola and other mega companies like that with spend levels in the millions. The agency is charging hundreds per hour. Some agencies have private jets... and they surely didn't get them charging $75 per hour. haha!

No matter how we (you and I) chalk it up... we are a great deal and are undercharging in most respects. Smiley Happy

____________________________________________________________
Google My Business & Google Ads Top Contributor
Google Partner | GYBO Agency | Local Guide | My Profile


 


 


 

Re: The Average Agency Charge $190 per Hour

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# 5
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@Tony_Guo I always take stats like this with a large pinch of salt, especially when they use terms like "above average" or "below average" agencies; just what yardstick are they using as a measure here?

 

It's possible that these are not actual quoted $ per hour figures but are instead "calculated" figures based upon number of staff and income.  If I quoted $190 an hour, I'd never get any business, but if I quoted a "15% of spend" fee for a large Account, that might well work out to $190 per hour if you calculated the actual income vs the hours dedicated to that Account.

 

Is it fair to have such a difference in apparent prices per hour?  I'd argue that it is if you're taking all the factors into account.  If I need to quote for a small job (say, producing a single script) that'll take me 2 hours, I'll quote my usual hourly rate (which is a heck of a lot less than $190).  But managing an entire Account, especially a large one, has a lot of additional responsibility and overheads and I would never seek to negotiate an hourly rate for such a commission, instead seeking a monthly flat fee.  That fee may well work out to be around $200 per hour I actually spend working on the Account, but it could still be reasonable given the size of that Account and its complexity/responsibility/spend.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: The Average Agency Charge $190 per Hour

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# 6
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If you are doing quality work then generally you have to charge $150 upwards as staff who can do that work cost that much, you are making your clients an amount that they are happy to pay higher amounts for your expertise and the results it brings.

Re: The Average Agency Charge $190 per Hour

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# 7
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The data is blended from agencies who use hourly and agencies who do it via project. I agree with the responsibility part. Part of what a larger client is paying for is the security someone with knowledge is managing their accounts. It's good to see the number though. I was thinking the average was closer to $60 an hour (including projects). Good to know that there's room for growth. Smiley Happy

Re: The Average Agency Charge $190 per Hour

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# 8
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I think.... I may have been undercharging this entire time..... haha.

Re: The Average Agency Charge $190 per Hour

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# 9
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Thanks for the very helpful reply, Jon Gritton.

Re: The Average Agency Charge $190 per Hour

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# 10
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Our agency charges a monthly rate sometimes combined with percentage of spend, though we will talk about it and break it down into an hourly rate at times. While I think it's important to track hours that go into each account, I actually think we should move away from that approach as it creates unrealistic expectations for both the client and for us as marketers. As @Jon_Gritton eloquently pointed out, there are a lot of factors that go into managing an account, and the larger the account the more complex and the harder it is to quantify as a simple allotment of hours each month. When the clients are expecting X amount of hours of work each month, they lose focus on what we're actually paid to do for them, which is market them and make them money and get caught up on whether they're getting "all the hours they paid for". And for us as marketers, it can lead to us focusing more on putting in the time than putting in the work if you know what I mean.