In this article, you will quickly learn how to assess whether your agency's fee contracts are profitable
A very common question in communication and marketing agencies is whether the amounts charged in monthly fee contracts are profitable. Learn how to properly analyze that:
1. Register your fee contracts
The first step to finding out if the monthly fee is profitable is to register it on iClips. Only after this is done you will be able to measure the number of projects that have been opened for the fee contract. This information can be entered in Settings > Clients > Monthly Fee. (Image 1)
2. Relate your projects to the monthly fee
After creating the contract, it will be necessary to associate it at the opening of the project. Only then, it will be possible to know how many projects were connected to that monthly fee
3. Use the reports to measure your monthly fee's profitability
To do that, first look for the fee contracts that have been closed. The path is Contracts > Reports > Monthly Fee.
Use the advanced search field to locate the contract, searching for client, date or contract status, for example.
In Projects > Reports > Pieces Created, use the advanced search field to find the desired job. After the search, the cost value (work hour x hour value) for the job will appear
4. Annual review
To find out if the contract is really profitable, an annual review will be necessary. That is because, during the contract period, the internal cost value may vary, with one month being above the amount paid by the customer. However, in the year, the amount received may be greater than the agency's internal cost.
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