Cost calculator - marketing agencies

How much new business is your agency losing every year?

You sell growth for a living - but the one pipeline that fills your own calendar never gets run. Move the sliders and see what that’s costing you.

How big is your agency?
Team size · Small
15 people
3120+
What’s a client worth?
Avg monthly retainer
$5,000
$500$25k
Your market
Scales your revenue and hiring costs
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
1.00x market (revenue & cost)
Adjust the revenue, salary, and ramp assumptions
Revenue per employee (sets your revenue and the target above)163000

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

The new business you’re losing every year

~$489k-$978k/yr
That’s about 8-16 new clients a year your own pipeline should be signing. Right now they’re signing with someone else.

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

Modeled from cited benchmarks - full method below.

Build it in-house and it costs you $131k/yr - roughly 27% of your annual profit - for a build (SDR / outbound (part-time), Researcher and proposals (part-time)) you recruit and manage through a ~6-month ramp, burning about $42k before it produces a dollar. And it is still outbound only: content, follow-up, and CRM stay on you.

What you’d invest to get there: people $84k · tools $21k · your time $25k · $131k/yr
Or stop the bleeding

Revenue Engine runs the recurring pipeline work.

Revenue Engine uses AI to run prospecting, content, follow-up, and CRM as one connected system in your voice. You set the plan, rules, and approvals and can see or steer the work. No hire to manage and no six-month ramp. If we miss the agreed target after ramp while you hold up your end, your monthly management fee is waived until we recover the miss, capped at 60 days.

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.

Common questions

What owners ask before 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 real pipeline is several roles - an SDR/outbound, a researcher and proposal writer, content, and CRM/ops. A small agency can run a lean part-time version for about $97k a year, but still has to recruit it, manage it, and wait about 6 months before it produces.

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 the whole way.

What is a typical marketing agency client churn rate?

Retainer agencies churn roughly 18 to 20% of clients a year, per 2025 retention benchmarks and the ANA/4As tenure study. A working pipeline has to replace that churn before it can drive growth.

Where do these numbers come from?

US market data: BLS OEWS and SHRM for salaries and payroll load, Promethean Research 2025 for revenue per employee, Focus Digital and the ANA/4As tenure study for client churn, and Orum, Bridge Group, and DePaul for ramp.