Agency Gross Income (AGI)
Total revenue minus pass-through expenses—representing the money an agency actually earns from client work, excluding funds collected on behalf of third parties.
Example
A PPC agency bills a client $20,000/month, but $12,000 goes directly to Google Ads spend. Their AGI is $8,000—the actual revenue they have to cover labor, overhead, and profit. Tracking AGI separately from total billings gives them an accurate picture of business performance.
Related article:
Agency Pricing: How to Choose the Right Pricing Strategy
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