Types of Rates in Agencies

The podcast discusses the evolution of rates in agencies. Historically, time and materials was the predominant billing model, but as agencies became more specialized, they shifted towards flat rate pricing and value-based pricing. The podcast emphasizes the importance of understanding the different types of rates, including target rates, billable rates, and average billable rates. It highlights the significance of setting rates that ensure good delivery margin, which is crucial for agency profitability.