The Three Numbers Every PR Firm Must Know
The Three Numbers Every PR Agency Must Know: 60, 3, and 150
Running a PR agency may look glamorous from the outside—client wins, glossy campaigns, maybe even a shelf of awards. But behind the curtain, success or failure usually comes down to three numbers: 60, 3, and 150.
Whether you’re just starting a PR firm or managing an established one, these numbers aren’t optional. They are the difference between a profitable, sustainable agency and one that quietly folds.
1. The 60% Rule: Staff Cost Ratio
Staff are your biggest expense. Add up everything—salaries, National Insurance, bonuses, freelancers—and divide by gross profit. That’s your staff cost ratio.
- Target: Stay below 60%.
- Best practice: Around 50–55%.
Go above 60% and you simply won’t have enough left to cover overheads, let alone profit. Too many agencies justify it with “we’re resourcing ahead of the income.” That’s code for gambling with payroll.
2. The 3-Month Buffer: Cash in the Bank
PR agencies live in a volatile world. Clients change CMOs, budgets shrink, or pandemics arrive without warning. Having a cash reserve of at least three months’ overheads is non-negotiable.
This buffer buys you time to think strategically instead of cutting in panic. Without it, you’ll be making rushed decisions with creditors breathing down your neck.
3. The £150,000 Benchmark: Productivity per Head
Productivity is a hard test of your agency’s value. Calculate it by dividing gross profit by the total number of full-time equivalent staff.
- £200,000+ per head: You’re operating at a premium. The market values what you do.
- £150,000 per head: Respectable, sustainable, above average.
- £60,000–£80,000 per head: A red flag. It means you’re competing on price—never a good long-term strategy.
The great thing about this number is that it cannot be manipulated. Gross profit is gross profit. Headcount is headcount. If productivity is weak, the only fix is a better commercial strategy.
Why These Numbers Matter
PR is a people business, but numbers are the guardrails. Without discipline, even the most creative agencies collapse under their own weight.
By keeping staff costs under control, maintaining a cash buffer, and monitoring productivity, you create a resilient agency that can survive downturns and thrive in growth periods.
Keywords: PR agency profitability, PR business strategy, staff cost ratio, PR agency cash buffer, PR agency productivity, how to run a PR firm
The Three Numbers Every PR Agency Must Know: 60, 3, and 150
Running a PR agency may look glamorous from the outside—client wins, glossy campaigns, maybe even a shelf of awards. But behind the curtain, success or failure usually comes down to three numbers: 60, 3, and 150.
Whether you’re just starting a PR firm or managing an established one, these numbers aren’t optional. They are the difference between a profitable, sustainable agency and one that quietly folds.
1. The 60% Rule: Staff Cost Ratio
Staff are your biggest expense. Add up everything—salaries, National Insurance, bonuses, freelancers—and divide by gross profit. That’s your staff cost ratio.
- Target: Stay below 60%.
- Best practice: Around 50–55%.
Go above 60% and you simply won’t have enough left to cover overheads, let alone profit. Too many agencies justify it with “we’re resourcing ahead of the income.” That’s code for gambling with payroll.
2. The 3-Month Buffer: Cash in the Bank
PR agencies live in a volatile world. Clients change CMOs, budgets shrink, or pandemics arrive without warning. Having a cash reserve of at least three months’ overheads is non-negotiable.
This buffer buys you time to think strategically instead of cutting in panic. Without it, you’ll be making rushed decisions with creditors breathing down your neck.
3. The £150,000 Benchmark: Productivity per Head
Productivity is a hard test of your agency’s value. Calculate it by dividing gross profit by the total number of full-time equivalent staff.
- £200,000+ per head: You’re operating at a premium. The market values what you do.
- £150,000 per head: Respectable, sustainable, above average.
- £60,000–£80,000 per head: A red flag. It means you’re competing on price—never a good long-term strategy.
The great thing about this number is that it cannot be manipulated. Gross profit is gross profit. Headcount is headcount. If productivity is weak, the only fix is a better commercial strategy.
Why These Numbers Matter
PR is a people business, but numbers are the guardrails. Without discipline, even the most creative agencies collapse under their own weight.
By keeping staff costs under control, maintaining a cash buffer, and monitoring productivity, you create a resilient agency that can survive downturns and thrive in growth periods.
Keywords: PR agency profitability, PR business strategy, staff cost ratio, PR agency cash buffer, PR agency productivity, how to run a PR firm