How did you set up your advertising agency

Establish an advertising agency - Essentials and food for thought


To calculate your agency's hourly rate, you should start with your Own costs calculate. It is certainly tempting to enter the market with dumping prices in order to attract new customers as quickly as possible. However, this strategy can be doubly in the eye.

It happens too quickly that you work unprofitable. Even seemingly simple jobs can have pitfalls that lead to delays and other problems. The less you earn on a project, the more you have to work to cover your costs. No matter how steadfast a freelancer may be, at some point they will reach their limits. Remember that with all work you should always have a minimum of personal relaxation. Constant financial worries also bring psychological pressure with them, which makes creative work even more difficult.

But there is another reason than your private protection: Strikingly low prices quickly have a dubious effect on customers. Most people understand that a good job has its price. A service provider that massively undercuts its direct competitors does not inspire confidence.

Hourly wages or fixed costs?


Tasks to be done by you must be clearly defined so that the time required can be calculated as precisely as possible. In reality, change requests from the customer, technical problems or other factors often mean that a project takes more time than planned.

Whether you prefer to bill your services by the hour or require a fixed price for a project should be decided between you and your customers. In the case of long-term cooperation over weeks and months, hourly rates are available. If a project has to be clearly limited in time - for example the layout of a brochure according to existing CI specifications - fixed prices also make sense.

In the past few years, the model performance-based remuneration increasingly found application. However, opinions on exactly how to measure success can vary widely. Therefore, you should determine in advance how the success of your services is to be measured together with your customer.

Don't sell yourself below value!


In any case, don't sell yourself below value. There are usually only a few reputable providers below the price limit of professional service providers. Make your customers aware of the great benefits they are getting for their money. Make sure your Transparent cost structure and your customers know what they're paying for.

Portals that are also used by customers looking for advertising agencies can help you as a guideline for calculating your costs. The buyer portal.de lists which hourly wages can be expected at small, medium-sized or large agencies. You can base your project prices on these market standards. Prices can vary depending on the complexity of a project. A global campaign on different media channels sometimes requires several employees to work hundreds of hours. The design of an advertising brochure, on the other hand, can usually be done by one employee alone.

Many customers value personal support and direct contact. Those who feel that they are in good hands and respected by an agency are often willing to pay higher prices for this service.

After completing an order, you can grant a grace period by making change requests and corrections without additional payments. It is up to you to clearly communicate in advance the point from which you will be charged for extra work.

Your portfolio as an advertising agency: How do you present your services?