Time, Utilization & Profitability
Net Margin
Definition
The percentage of revenue remaining after ALL costs — direct labor, direct costs, overhead, admin, sales, taxes. If your agency does $500K revenue with $400K total costs, net margin is 20%.
Why It Matters
The bottom line. 10-20% net margin is typical for healthy agencies. Below 10% means one bad month away from trouble.
Related Terms
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