This is a broad list that depends on the senior management roles you have in your agency. From the list below I would rank in order of importance: Cash, Revenue/FTE, EBITDA, Client Churn, and Unburdened compensation as the top 5 things to track monthly. [Reporting: monthly, quarterly, yearly]
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Book a Call | Agency Acquisitions
| Role | Metrics | Metric target | Formula |
|---|---|---|---|
| P/CEO | Total cost of sales | < 15% | Sales & Marketing Cost / AGI |
| Sales | Sales team cost | < 7.5% | Sales Cost / AGI |
| Mkt | Marketing team cost | < 7.5% | Marketing Cost / AGI |
| DF | SG&A | < 20% | (Sales, Marketing, General cost/ AGI |
| Mkt | Unburdened compensation | < 30% | Payroll without Benefits & Bonuses / AGI |
| P/CEO | Admin compensation % | < 15% | Executive salary / AGI |
| P/CEO | Client Churn per month/yr | Mo. < 2.5% Yr. < 30% | See the formula in the CEO section |
| P/CEO | Rev/FTE (yr & mo) | 220k+ | Total AGI / # of all employees |
| P/CEO | EBITDA | > 35% | Ensure it's based on AGI |
| Finance | Cash | > 60 days(all expenses) | Cash / $ spent per day avg. |
| Finance | DSO | < 20 days | (Accounts Receivable/Net Credit Sales)x Number of days |
| P/CEO | MRR | >85% of revenue | MRR/AGI |
| P/CEO | Revenue | 25% YoY Growth |
AGI = Agency Gross Income = Topline revenue – Cost of goods sold of reimbursable revenue