[webproducers] Re: Agency rates

  • From: Alicia L.Cervini <alicia@xxxxxxxxxxxx>
  • To: webproducers@xxxxxxxxxxxxx
  • Date: Mon, 29 Sep 2003 08:49:26 -0700

I'm an experienced PM who took a two year hiatus to go to grad school.   
A lot has changed.  No need to be puzzled.

I'm looking for ball park figures.  Not interested in something as out  
of date as 1996.  Not interested in anything so specific as to threaten  
or reveal anything about a particular agency.

You seem to be saying there are so many variables that there's no such  
thing as a ball park figure for rates anymore, and I just find that  
hard to believe.


On Monday, September 29, 2003, at 04:25 AM, Ari Feldman wrote:

> I doubt you will find an agency that will reveal their rate
> structure due to its competitative value.
>
> For a starting point (but woefully inaccurate), you might take a
> look at the 1996 book "Web & New Media Pricing Guide."
>
> However, I'm puzzled by the original message poster since most
> experienced PMs would already have a general idea of production
> costs for different disciplines (e.g. designers, programmers,
> sysadmins, etc.) from handling previous web production budgets.
>
> It's also important to recognize that agency rates are a
> function of the organization's overall cost/profit structure -
> e.g. overhead (office rent, utilities, equipment expenses, staff
> salaries, staff benefits) + reputation, creative capital,
> desired profit margin, etc.
>
> For ex: Agency X may charge more for the same service than
> Agency Y because their overhead is higher but so is their
> quality of work.
>
>
> Actually, the hardest part of the process is determining rates
> post-dot com crash. Back in 1999 and 2000, it was easy -
> everyone was charging more or less the same because the market
> could bear it.
>
> Nowadays, a lot of people still in the biz are now freelance and
> their rates vary wildly depending on their skill, experience and
> specialty and all-too-often, clients will choose on price and
> not on quality because budgets are smaller.
>
> Geography is also an important factor. Someone in Boise, ID wil
> almost always be cheaper than someone in New York, NY due to the
> huge differential in living expenses.
>
>
>
> --- Dan Horning <dan@xxxxxxxxxx> wrote:
>> I'd ask this same question on the wwwac.org list...
>> This has come up many times there too
>>
>> - Dan Horning
>> 1-866-284-3150 (Toll-Free)
>> President:
>>      Technical Evangelism &
>>      Media Systems Administration
>> MX2 Productions
>>      Media from concept to execution.
>>
>>> -----Original Message-----
>>> From: webproducers-bounce@xxxxxxxxxxxxx
>>> [mailto:webproducers-bounce@xxxxxxxxxxxxx] On Behalf Of
>>> Alicia L.Cervini
>>> Sent: Sunday, September 28, 2003 8:11 PM
>>> To: webproducers@xxxxxxxxxxxxx
>>> Subject: [webproducers] Agency rates
>>>
>>>
>>>> Hello all,
>>>>
>>>> I was just brought on as a PM at an interactive agency in
>> LA.  They
>>>> began as a shop dedicated to broadcast work and shifted
>>> over onto the
>>>> web side of things about a year ago.  As such, i am the
>> only PM on
>>>> staff who actually knows anything about web production and
>> what it
>>>> entails.
>>>>
>>>> My problem: This shop is somewhat naive when it comes to
>>> handling the
>>>> web side of things.  I suspect that they are underbilling
>>> clients and
>>>> over paying freelancers for production work.  Not a good
>>> thing.  Does
>>>> anyone know of a resource on the web that lists typical
>>> rates?  Or is
>>>> there anyone at an agency that would be willing to share
>>> their shop's
>>>> internal/external rates? (I don't know if that's a
>>> sensitive question,
>>>> so forgive me if it is)
>>>>
>>>> Thanks for any advice!
>>>>
>>>> alicia
>>>>
>>>
>>>
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>>
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