small studios making a profit?
small studios making a profit?
Out of context: Reply #13
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- nthkl0
The hourly burn of a small shop is less than a larger shop, which has the man power to justify owning the account. Though, all those individuals will be booked on other projects, so the agency will outsource to another small vendor.
Project budget from client to agency: 250k
Internal burn of agency (Charged to client at $150/hr): 70k
Actual burn of agency for full time rate of employees: 16kOutsource cost to vendor to do majority of project, say a 4 man shop: 20k.
Actual burn of 2 people working on that project from the vendor: 8kVendor profit 12k. Sleep = 0
Agency profit 214k - Sleep = 8 hours a night