Every agency term, in plain English.
The operations, pricing and client terms agencies use every day - retainers, SOWs, scope creep, MRR, utilisation and more. Each one is a plain-English definition with a real example, a formula where it helps, and links to the tools and templates that put it to work.
100 terms
Terms starting with A
Account management
The ongoing work of keeping a client successful, informed and happy after the sale - the relationship side that drives retention and growth.
read →Accounts receivable (AR)
The money clients owe an agency for work already invoiced but not yet paid. A large or ageing balance is a cash-flow warning sign.
read →Agency of record (AOR)
A formal, ongoing arrangement in which a client names one agency as its primary, exclusive provider for a discipline - like advertising or PR.
read →Annual recurring revenue (ARR)
The value of an agency's recurring revenue expressed over a year - essentially MRR multiplied by twelve. A headline measure of the recurring book.
read →Average revenue per account (ARPA)
The average recurring revenue each client brings in - total recurring revenue divided by the number of clients.
read →Terms starting with B
Bench time
Paid time when a team member has no billable client work - the costly gap between projects that drags on utilisation and margin.
read →Billable hours
Hours worked that can be charged to a client, as opposed to internal or non-billable time. Tracked to protect margin and inform pricing.
read →Blended rate
A single average hourly rate across a mixed team (junior to senior), used to simplify pricing and quoting.
read →Brand guidelines
A document defining how a brand should look and sound - logo use, colours, typography, tone of voice - so it stays consistent everywhere.
read →Break-even point
The level of revenue or billable work at which an agency covers all its costs - below it you lose money, above it you profit.
read →Terms starting with C
Capacity planning
Matching the team's available billable hours to the work in the pipeline, to avoid both overload and idle time.
read →Case study
A short story of a client result - the problem, what the agency did, and the outcome - used as proof to win similar work.
read →Cash flow
The timing of money moving in and out of an agency. A profitable agency can still fail if cash runs out before clients pay.
read →Change order
A written, approved record of any change to a project's scope, timeline or fee before the extra work begins. The antidote to scope creep.
read →Churn
The rate at which clients (or recurring revenue) leave over a period. For agencies, lower churn compounds into far higher lifetime value.
read →Client onboarding
The process of welcoming a new client - collecting assets and access, setting expectations and kicking off - so delivery starts fast and churn risk drops.
read →Client portal
A secure, branded space where a client logs in to see deliverables, files, invoices and updates instead of chasing them over email.
read →Client retention
The share of clients an agency keeps over a period - the flip side of churn, and the foundation of stable, compounding revenue.
read →Client status report
A regular update that shows a client what has progressed, what is next, and any risks or decisions needed - so they stay informed without chasing.
read →Content calendar
A schedule of what content will be produced and published, when and where - the plan that keeps an ongoing content engagement on track.
read →Cost of delivery
The direct cost of producing client work - mostly the billable time of the people doing it, plus any project-specific expenses.
read →Cost-plus pricing
Setting a price by taking the cost to deliver and adding a fixed markup or margin on top. Simple, but it ignores the value the work creates for the client.
read →Creative brief
A short document that aligns an agency and client on the goals, audience, message and constraints of a creative project before work begins.
read →Cross-sell
Selling an existing client a different, complementary service alongside what they already buy - widening the relationship.
read →Customer acquisition cost (CAC)
The average cost of winning a new client, including sales and marketing time and spend. Compared against lifetime value to check that growth is profitable.
read →Customer lifetime value (LTV)
The total revenue an agency expects to earn from a client over the whole relationship. A core input for how much you can afford to spend winning clients.
read →Terms starting with D
Definition of done
A shared, explicit checklist of what must be true for a deliverable or task to count as complete - removing ambiguity over 'finished'.
read →Deliverable
A specific, tangible output an agency commits to producing - a report, design, campaign or asset - usually with an acceptance criterion.
read →Deposit
An upfront payment a client makes before work begins, securing the booking and funding the early stages of a project.
read →Discount
A reduction from the standard price, given to win or keep a client. Easy to offer, but it comes straight out of margin and can anchor expectations low.
read →Discovery call
An early conversation where an agency digs into a prospect's goals, problems and constraints before proposing or pricing any work.
read →Terms starting with E
Effective hourly rate
What a piece of work actually earns per hour once you divide the fee by the hours it really took - regardless of how it was priced.
read →Escalation
The agreed path for raising a problem - a missed deadline, a complaint, a blocker - to someone with the authority to resolve it.
read →Terms starting with F
Fixed-fee pricing
Charging one agreed price for a defined scope of work, regardless of the hours it takes. Gives the client certainty and puts overrun risk on the agency.
read →Freelancer
An independent contractor an agency hires on a flexible, per-project basis to add skills or capacity without a permanent hire.
read →Full-time equivalent (FTE)
A way of expressing mixed full-time, part-time and freelance hours as a number of full-time people, used for capacity and cost planning.
read →Terms starting with G
Gantt chart
A visual timeline that shows a project's tasks, their durations and how they overlap or depend on each other.
read →Gross margin
The share of revenue left after the direct cost of delivering the work (mostly billable staff time). The clearest measure of whether projects are profitable.
read →Terms starting with H
Terms starting with I
Ideal client profile (ICP)
A clear definition of the clients an agency serves best - by industry, size, budget and needs - used to focus sales and marketing.
read →Indemnification
A contract clause where one party agrees to cover the other's losses if certain things go wrong - a core way agencies and clients allocate risk.
read →Intellectual property (IP)
The ownership rights to creative and technical work - designs, code, copy, brand assets. Agency contracts must say who owns what, and when.
read →Invoice
The document an agency issues to request payment for work done - listing the services, amounts, terms and due date.
read →Terms starting with K
Kickoff
The first working session of a project, where the agency and client align on goals, scope, roles and timeline before delivery begins.
read →Kill fee
A pre-agreed payment owed if a client cancels a project partway through, compensating the agency for reserved time and work already done.
read →Knowledge base
A central, organised store of an agency's documented processes, templates and answers - so information is found, not re-asked.
read →Terms starting with L
Lead generation
The work of attracting and capturing potential clients - through content, outreach, referrals or ads - to feed the sales pipeline.
read →Lead qualification
Assessing whether a lead is a genuine fit and likely to buy - by budget, need, authority and timing - before investing time in pursuing them.
read →Letter of intent (LOI)
A short document signalling that a client intends to proceed, often used to start work before the full contract is signed.
read →Liability cap
A contract clause limiting the total amount one party can be held financially responsible for - usually capped at the fees paid.
read →Terms starting with M
Markup
The amount added to a cost to reach a selling price, usually expressed as a percentage of the cost - how agencies make margin on time and pass-through costs.
read →Master service agreement (MSA)
The overarching legal contract that sets the standing terms (liability, IP, confidentiality) between agency and client. Individual projects run as SOWs underneath it.
read →Milestone
A significant checkpoint in a project, usually marking the completion of key deliverables and often tied to a payment or approval.
read →MRR (monthly recurring revenue)
The predictable revenue an agency earns each month from retainers and recurring work. The foundation of stable agency finances.
read →Terms starting with N
Net profit margin
The share of revenue left as profit after all costs - delivery and overheads - are subtracted. The bottom-line measure of agency profitability.
read →Net promoter score (NPS)
A measure of client loyalty, based on how likely clients are to recommend the agency, scored from -100 to +100.
read →Net revenue retention (NRR)
The percentage of recurring revenue retained from existing clients over time, including expansion and minus churn. Above 100% means you grow even without new clients.
read →Niche
A focused specialism - a specific industry, service or audience - that an agency builds its positioning and expertise around.
read →Non-disclosure agreement (NDA)
A contract in which the parties agree to keep shared confidential information private. Common before an agency and prospect exchange sensitive details.
read →Non-solicitation clause
A contract clause stopping one party from poaching the other's clients or staff for a set period - common when agencies use subcontractors or freelancers.
read →Terms starting with O
Terms starting with P
Pass-through costs
Third-party expenses an agency incurs on a client's behalf - media spend, software, print, stock - then bills back, often with a markup.
read →Payment terms
The agreed rules for how and when a client pays - amounts, due dates, deposits and what happens if an invoice is late.
read →Pitch
An agency's persuasive presentation of how it would solve a prospect's problem - the moment it makes the case to win the work.
read →Positioning
How an agency is perceived in the market relative to alternatives - the distinct space it owns in a prospect's mind.
read →Pricing tiers
Packaging a service into several priced options - often good, better and best - so clients choose a level rather than haggle over one number.
read →Productized service
A service packaged with a fixed scope, price and process so it can be sold and delivered repeatably, like a product. Improves margin and scalability.
read →Project management
The discipline of planning, coordinating and tracking a project's scope, timeline, resources and people so it ships on time and on budget.
read →Proposal
The document an agency sends to win a project - setting out the client's problem, the proposed approach, deliverables, timeline and price.
read →Terms starting with R
RACI
A responsibility matrix (Responsible, Accountable, Consulted, Informed) that clarifies who owns what on a project - useful for client and internal clarity.
read →Rate card
A published list of an agency's standard hourly or daily rates by role, used as a starting point for quotes and negotiations.
read →Realization rate
The share of worked hours that actually get billed and paid, after write-offs and discounts. Where planned revenue leaks away before it reaches an invoice.
read →Referral
A new prospect introduced by an existing client or contact - typically the highest-converting, lowest-cost source of agency work.
read →Request for proposal (RFP)
A formal document a prospective client issues inviting agencies to bid for a project, setting out requirements, scope and selection criteria.
read →Retainer
A recurring arrangement where a client pays a fixed monthly fee for an agreed set of services or capacity, rather than per-project. Retainers give agencies predictable revenue and clients priority access.
read →Retrospective
A structured review after a project or sprint, where the team reflects on what went well, what did not, and what to improve next time.
read →Revenue per employee
Total revenue divided by the number of full-time staff - a quick benchmark of how productively an agency turns people into income.
read →Revenue run rate
A projection of annual revenue based on current performance - taking a recent period and extending it across a full year.
read →Revision round
One agreed cycle of client feedback and changes on a deliverable. Capping the number of rounds is how agencies stop endless tweaking.
read →Terms starting with S
Sales pipeline
The set of potential deals an agency is working, organised by stage from first contact to signed - a forward view of likely new revenue.
read →Scope creep
The gradual expansion of a project beyond its agreed scope without matching changes to time or fee - the most common margin killer for agencies. Controlled with explicit out-of-scope clauses and change orders.
read →Scope of work
The specific work included in an engagement - the deliverables, boundaries and exclusions. A clear scope is the main defence against scope creep.
read →Service catalog
A defined menu of the services an agency offers, often with set scopes and prices - making it clear what clients can buy and for how much.
read →Service level agreement (SLA)
A commitment to defined service standards - like response or turnaround times - usually attached to a retainer or support arrangement.
read →Sign-off
A client's formal approval that a deliverable or stage is accepted - the agreed point at which it is considered done.
read →Sprint
A short, fixed block of time - often one or two weeks - in which a team commits to completing an agreed set of work.
read →Stakeholder
Anyone with an interest in or influence over a project - the client's decision-makers, end users, and the agency's own team.
read →Standard operating procedure (SOP)
A documented, step-by-step process for a recurring task, so it is done the same way every time regardless of who does it.
read →Statement of work (SOW)
A formal document defining the scope, deliverables, timeline and payment for a specific project between an agency and client. Often sits under a broader MSA.
read →Subcontractor
An external specialist or agency brought in to deliver part of a project, usually under the lead agency's brand and contract.
read →Terms starting with T
Termination clause
The part of a contract setting out how either side can end the engagement - notice period, final payments and what happens to work in progress.
read →Testimonial
A short endorsement from a happy client, used as social proof to build trust and win new work.
read →Time and materials (T&M)
A pricing model where the client pays for the actual hours worked plus any expenses, rather than a fixed price. Flexible, but it puts overrun risk on the client.
read →Time tracking
Logging the hours team members spend on each client and task, so an agency can bill accurately, measure utilisation and price future work.
read →Terms starting with U
Terms starting with V
Terms starting with W
White label
Delivering a tool or service under the agency's own brand, so the client only ever sees the agency - not the underlying provider.
read →Win rate
The share of proposals or qualified opportunities an agency converts into signed work. A core measure of sales effectiveness.
read →Work in progress (WIP)
Work an agency has started but not yet billed - effort already spent that has not turned into an invoice or cash.
read →Stop defining the work. Start running it.
Forge builds, hosts and runs the tools behind these terms - client portals, onboarding flows, time trackers - from a few plain-language questions.