Revenue Per Employee
Agency glossary · Updated July 2026
Definition
Revenue per employee is an agency’s trailing 12-month revenue divided by its full-time-equivalent headcount, including the owner. It shows whether the team is right-sized for the revenue it produces, and is a quick gauge of operational efficiency.
Trailing 12-month revenue / full-time-equivalent headcountWhy it matters
A falling revenue-per-employee often signals over-hiring, low utilization, or under-pricing. It is a fast sanity check to run whenever headcount changes.
Benchmark
Roughly $150,000 to $200,000 per employee is a healthy range for agencies, with specialists reaching more. Read it alongside utilization and margin, not on its own.
Related terms
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