There are two types of “Mark-Up” for agencies. The first refers to the margin you apply to your costs when pricing out projects. We encourage agencies to target a 60-70% + Margin on their “Delivery Costs” when pricing projects. The second kind of “Mark-Up” is a “fee” applied to pass-through expenses – such as advertising spend, print budgets, hard goods, etc. Typically, this is meant to cover the internal costs associated with managing those pass-through expenses. Those markups typically range from 15-30%. At the end of the day, what’s most important is that the Agency Gross Income of any given piece of work is high enough to create a 60-70% markup – relative to delivery costs. Agency Gross Income measures the money remaining after subtracting Pass Through Expenses, and would include any “markup” that has been applied to said pass-through expenses. Remember… “Mark-Up” applied to Pass-Through Costs is simply a pricing mechanism. It’s important to quantify the amount of time, or cost, it is meant to cover and ensure a good margin is achieved with the markup that is being applied.