Revenue is energising. It feels like momentum. New clients, bigger projects, invoices raised… but here’s the truth that many agencies only learn the hard way: turning over more doesn’t mean keeping more. You may hit all your revenue goals, but all the while you are draining your cash, burning your team and chasing the wrong type of clients. What matters more is not the size of the top line, but what you keep on the bottom. Your margin is the measure of a sustainable, scalable agency.
So what’s the answer? The key is to understand the key profit metrics every agency should be tracking and then model them as levels for commercial control. Modelling your margins in this way will allow you to spot inefficiencies, build pricing confidence and protect your profit.
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