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AgencyHabits

Agency compensation: A framework

Published 7 days ago • 1 min read

In this week's AgencyHabits Podcast, Peter and Sei-Wook break down the different layers of agency employee compensation: base salary, benefits, bonuses, variable comp, and equity.

What ties it together is this: comp isn't just about paying people well. It's about designing a system that's intentional, sustainable, and aligned with what your business can actually afford.

They cover why asking other agency owners "what do you pay for X role?" is mostly useless, why equity as a retention tool often backfires, and why most agencies should nail the basics - clear salary bands, structured reviews - before getting fancy with profit shares and phantom stock.

The 80/20 rule applies here. The fundamentals matter more than the bells and whistles.

If you're running an agency and comp decisions feel like guesswork, this episode will give you structure. Not a template you can copy-paste, but a way of thinking that'll help you build something that fits your business.

Want to continue the conversation?

Our next FREE AgencyHabits Knowledge Share is happening Feb 18 at 12:30 PM ET, and we’re diving deep into a topic that changes how agencies sell, pitch, and grow: Your Ideal Client Profile.

We’ll break down:

  • Who you’re built to serve best
  • What triggers make them ready to buy
  • How to define “success” so delivery doesn’t miss
  • And who to say no to, on purpose

Join us live for sharper insights, better Q&A, and a front-row seat to how other operators think. RSVP here.​

P.S. As a result of the last Knowledge Share, we built The Foundation Tool. Join us live to help build the next useful thing for you. And if you give The Foundation Tool a whirl, let us know. We'd love to hear your thoughts!

Who are we?

Hi, we're Peter and Sei-Wook, co-founders of Barrel Holdings, a portfolio of agency businesses. We also run AgencyHabits, a resource for agency operators featuring lessons learned from our various agency businesses.

Thanks for being a subscriber. If you or anyone you know is interested in selling their agency business, please check out what types of agencies we're looking for and email hi@barrel-holdings.com.

Also: Peter posts a lot of agency content on LinkedIn, give him a follow!

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AgencyHabits

Go behind the scenes of real agency businesses.

AgencyHabits provides learnings, ideas, and templates for agency operators drawn from Barrel Holdings companies. Barrel Holdings incubates, acquires, and grows agency businesses.

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