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Am I the only one who thinks a 50/50 revenue split is a terrible way to start a partnership?
We just signed a deal with a design agency in Chicago, and their first offer was the standard equal split on all projects. I pushed for a model based on actual work hours and client management, which showed our team was doing 70% of the heavy lifting. Why do so many agencies default to a simple split without looking at the real effort involved?
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ray1891mo ago
Chicago agencies are still pushing that 50/50 split? That's wild when you're doing most of the work. Good on you for showing them the real numbers!
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the_jamie1mo agoMost Upvoted
Exactly, I saw a contract last month from a big River North agency that still had the 50/50 boilerplate. The real kicker is they count "overhead" as their half while you're out there actually landing the clients and doing the creative. Showing them a breakdown of billable hours versus their admin costs is the only way to make them budge. They rely on people not questioning the math. Once you prove your work brings in 80% of the revenue, that split has to change or you walk. It's an old model that only works if we let it.
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