Why Our Marketing Agency Has Just One Hourly Rate

January 7, 2025

In the world of marketing agencies, one billing system reigns supreme. Most agencies use a tiered billing structure where employees are charged out at different hourly rates based on their titles and seniority.

For example, an Associate might be billed at $150 per hour, while a VP could command rates upwards of $600 per hour.

We disagree with this system.

Why Our Marketing Agency Uses a Flat-Hourly Rate for Everyone

At Blue Compass, we've decided to do something different: everyone, from the CEO to the interns, is billed at the same hourly rate.

This approach stems from our philosophy that every team member's contribution is equally valuable. We don't believe in a hierarchy where one person's time is worth more than another's.

Instead, we treat our team as a cohesive unit where no one member is more important than another. This doesn't mean that everyone's role is identical — we all have different responsibilities and roles — but it does mean that everyone's time is valued equally.

This flat rate system reflects our core company values. We don’t want a hierarchy of titles dictating someone's worth.

The Flaw of Assigning Different Hourly Rates to Employees

I'm seen many agencies set up complicated pricing structures for clients based on the variety of titles or levels of seniority of their employees. This approach not only creates an overly complex system for the client, but puts great emphasis on the value (or lack thereof) of the team members who work on the account.

I've seen clients push back when they realize they have a "low-level" employee spending too much time on their account. Isn't their brand worth more than the time of an inexperienced associate? This system simply puts too much emphasis on the independent individuals that do the work and not enough on the team overall. 

The Universal Hourly Rate is Simple to Manage

Our single hourly rate isn't just about team spirit; it also simplifies billing.

Instead of clients having to navigate through multiple hourly rates, they deal with one straightforward rate. Many agencies have 10+ hour rates that clients must juggle. Our approach is simple and avoids headaches. 

Critique of the Single Hourly Rate

Some may argue, against the flat-hourly rate, saying in the end, the client is charged the same anyway because our hourly rate probably represents the average hourly rate of another agency.

This critique misses the broader point: this system is about more than just numbers; it's about demonstrating our ethos as a team, not just a collection of individual contributors.

Is this single hourly rate the best model for every agency? Perhaps not. Different advertising agencies might find that a different billing structure suits their culture and client base better.

However, for us at Blue Compass, this has proven to be an excellent way to do business, and both our clients and team have responded positively to this approach.