I have added two new charts to the Agency Forms Section of this site. These charts illustrate how a typical advertising agency figures out budgets for yearly client fee compensation. These charts are generic and should be used as a simple guide only. All agencies have their own unique formulas for figuring out agency compensation and its a great idea to build your own model. In today's agency world, the FTE model is being used less and less as agencies develop their own unique compensation plans.

Lastly, as with all important financial decisions, utilize your accountant, these forms are for illustration purposes only. To learn more about these charts, visit the accounting section of this site for additional articles.

Simple FTE Chart Utilizing Blended Rates

FTE Chart Utilizing Individual Salaries for Staffing