Cost calculator - marketing agencies

Your client work is quietly starving your agency’s own new business

Most agencies don’t lack demand - they lack a pipeline that gets run every week. See what yours should be creating, and what building it in-house would cost.

How big is your agency?
Team size · Small
15 people
3120+
What’s a client worth?
Avg monthly retainer
$5,000
$500$25k
Where you’d hire
Sets in-house salary rates
SF Bay / NYC Silicon Valley, San Francisco, New York1.25x
Major metro LA, Seattle, Boston, DC1.08x
National average most US cities1.00x
Mid-size metro Columbus, Nashville, Kansas City0.92x
Lower-cost smaller metros, remote0.85x
Adjust the revenue, salary, and ramp assumptions
Revenue per employee (sets your revenue and the target above)$163k

The rest change the in-house build cost only. Defaults are US market base pay, loaded 1.4x for benefits and payroll (sources below).

Months to ramp before it produces6
Backed by 500 Global.Modeled on BLS OEWS, Promethean 2025, ANA/4Asmethod below

The growth you leave on the table

~$489k-$978k/yr
In new revenue your own pipeline should create each year - about 8-16 new clients, half of them just to replace what churns.

For a 15-person agency (~$2.4M/yr implied) at $5,000/mo, national rates

Modeled from agency benchmarks - full method below.

Build it in-house instead: about $108k/yr for one new-business hire - roughly 22% of your annual profit. And that is outbound only: content, follow-up, and CRM stay on you - and it is ~6 months before the hire reaches full productivity.

Or run it as one system

Live in weeks. No new hires to manage, no six-month ramp to wait out.

You approve the plan, the voice, and the target client. From there it runs on autopilot - a team plus AI running your weekly prospecting, content, follow-up, and CRM, in your voice. New plays still come to you first. We don’t stop until you hit the goal.

Tamas at Kontext Group went from 1-2 proposals a week to 15+, right-fit only - and took a vacation while it kept running.
15 minutes - we map the bottleneck and your first 30-day target, tell you straight whether it is a fit, and what it would run for you.
How we calculated this

Built from agency benchmarks, with the math exposed.

Worked example - a 15-person agency
Revenue (15 × ~$163k per employee)~$2.4M/yr
Replace ~20% client churn (just to hold flat)~$489k/yr
Add ~20% growth on top+ ~$489k/yr
Pipeline it should create~$978k/yr
At a $5k retainer, that is~8-16 clients/yr
Revenue

~$163k revenue per employee, so your headcount sets the base. Promethean Research, 2025.

Profit

EBITDA ~20% of revenue - a well-run agency margin. Agency profitability benchmarks 2025.

Client churn

~20% of clients churn a year; a pipeline replaces them to hold flat. Focus Digital 2025; ANA/4As tenure.

Growth

A real pipeline adds ~20% growth on top of replacing churn. 2025 agency growth benchmarks.

In-house salaries

US base pay, loaded 1.4x, location-adjusted. BLS OEWS / ECEC; Glassdoor; SHRM.

Ramp

A new-business hire takes ~6 months to reach full productivity. Orum / Bridge Group / DePaul.

Illustrative defaults you can adjust - not a quote. Your exact number depends on your market and goals; we walk through it on the call.

How much new revenue is an agency leaving on the table without its own pipeline?

It scales with agency size. At ~$163k revenue per employee, a working pipeline needs to replace ~20% annual client churn just to hold flat, plus ~20% growth on top. For a 25-person agency (~$4M revenue) that is roughly $800k to $1.6M a year at stake.

What does it cost to build an in-house growth function at an agency?

A lean in-house pipeline (one new-business hire) runs about $108k a year loaded at national rates - roughly 13 to 22% of a small agency’s annual profit at a 20% EBITDA margin - and it produces nothing for its first ~6 months. A larger agency building a full function spends materially more.

How long before a new-business hire produces results?

About 6 months to full productivity, per Orum, Bridge Group, and DePaul sales-onboarding benchmarks - loaded salary you carry before it is fully productive.

What is a typical marketing agency client churn rate?

Retainer agencies churn roughly 18 to 20% of clients a year (higher for smaller and project-based shops), per 2025 retention benchmarks and the ANA/4As tenure study. A working pipeline has to replace that churn before it can drive any growth.