M2
How Much Should an Agency Owner Pay Themselves?
A clear picture of how much you should pay yourself as you growModule 2 of 10 · Owner Pay System
Most agency owners are either chronically underpaid or pulling money out reactively. Neither is a system.
Goal
Have a clear picture of how much you should pay yourself as you continue to grow.
Benchmarks: Owner Compensation (Salary + Distributions)
| Revenue Range | Owner Compensation | Your Number |
|---|---|---|
| $300K–$600K | $70K–$110K | |
| $600K–$1.2M | $110K–$170K | |
| $1.2M–$3M | $150K–$300K |
Decision Rules
- profit is < 10%: cap compensation
- profit meets target: pay within range
- profit exceeds target: distribute surplus or reinvest into the business
Tradeoffs
More owner pay reduces growth capital but rewards the founder. Less owner pay increases reinvestment capacity but limits present reward to owner.
Bonus
Agency Financial OS Calculator
Google Sheets: apply the system to your own agency in minutesA companion Google Sheet runs the math from Modules 1 to 6 automatically. Enter your numbers, get your targets.
Free
Get the Agency Financial OS
The full system, the calculator, and a weekly email for agency ownersDrop your email and we will send you the whole thing, plus the Google Sheet that runs the math for you.
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Next
Next Step
Install this with someone who does it every dayMonthly bookkeeping, Fathom-based financial reporting, and fractional CFO advisory for marketing and creative agencies doing $300K to $5M. Logan works every account.