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Data M02 The Market · Agency Benchmarks

Headcount, scale, and productivity.

Locations, employees, shareholders, and revenue per employee across the Best Practices revenue tiers, 2018–2022 — the structural profile beneath the financial results. The trend: stable headcount, steadily rising productivity, and ownership consolidating at the top.

Below the growth and profit numbers sits the agency's shape — how many people, how many owners, and how much revenue each person produces. The five-year structural series reveals the durable scale story: productivity rises with size, and ownership consolidates at the top. This is the agency-profile slice of the Best Practices trend data; the companion BPS trend reference indexes all seven themes.

§ 01 · Productivity per personRevenue per employee, by scale.

Revenue per employee is the cleanest read on operational efficiency, and it rises monotonically with size — from roughly $135K at the smallest tier to $257K at the largest in 2022. The gap widened over the five years as the largest agencies improved productivity faster.

Revenue per employee (median)20182022
Under $1.25M$116,793$134,607
$2.5M–$5M$177,437$176,214
$5M–$10M$175,966$195,961
$10M–$25M$198,835$215,103
Over $25M$215,200$256,811

The top-quartile spread is wider still: elite over-$25M agencies reached $360,214 revenue per employee in 2022, a 40%+ premium over the tier median — evidence that the gap between a typical and an exceptional operation is large and durable.

§ 02 · Headcount & footprintStable structure, scaling people.

Employee counts scaled predictably with revenue and stayed broadly stable year to year — roughly 6–13 staff at the smallest two tiers, ~287 at the largest in 2022. Location counts did not scale linearly with revenue, which means footprint is more a strategic choice than a function of size — useful context for a buyer modeling post-close rationalization.

§ 03 · Ownership consolidationFewer shareholders at the top.

The clearest structural trend is ownership concentration in the largest tier. The over-$25M band's average shareholder count fell from 48.2 in 2018 to 28.8 in 2022 — a steady consolidation as the biggest agencies matured, bought in minority holders, and simplified their cap tables. Smaller tiers stayed flat at one to three shareholders throughout.

Average shareholders201820202022
Under $1.25M1.91.91.5
$5M–$10M3.94.63.6
$10M–$25M9.48.56.2
Over $25M48.243.328.8
Key characteristics of the trend
  • Productivity rises with scale. Revenue per employee climbs from ~$135K (smallest) to $257K (largest) in 2022.
  • Elite premium is large. Top-quartile over-$25M agencies reached $360K per employee — a 40%+ premium over the tier median.
  • Headcount scales, footprint doesn't. Employees track revenue; location counts are a strategic choice.
  • Ownership consolidated at the top. The over-$25M shareholder count fell from 48.2 to 28.8 over five years.
  • The $5M–$10M inflection. The mid-market is the operational efficiency sweet spot — balanced headcount and ~$190–$266K productivity.
What it means for M&A

The benchmark is the baseline, not the price.

Best Practices benchmarks don't value an agency — they're the operating baseline a valuation is built on. The profile data sets two buyer expectations: a sub-$5M target can realistically expect a 15–25% revenue-per-employee lift through integration onto a larger platform (the tier-to-tier gap is the proof), and the elite-vs-median productivity spread means retaining top-quartile talent is where post-close value is preserved or lost.

The way productivity flows into a normalized earnings figure is the financial & transactional mechanics reference.

Methodology notes

What BPS measures. The Best Practices Study tracks the operating and financial results of top-performing agencies, segmented by revenue tier. This brief reflects the 2018–2022 agency-profile series.

Medians and top quartile. Structural figures are segment medians unless a top-quartile figure is named.

Revenue per employee. Total agency revenue divided by full-time-equivalent staff — the headline productivity metric.

Frequency. The study publishes annually. Milly Books refreshes this brief with each new edition.

The seven trend themes

Explore the BPS trend data.

Open the trend reference →

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