Project margin
Revenue − team − overhead → margin and profit
Input
Margin
per $1 cost: $1,43
30%
- Costs
- $35 000
- Profit
- $15 000
Project margin = (revenue − team − overhead) ÷ revenue. Healthy agency margin: 35–50%. Below 25% — the project just 'feeds' the team. Sales cost (pre-sale, discovery) is the often-forgotten part.