If you're thinking about starting a Dallas marketing agency, you may be wondering, "How much do Dallas marketing agency owners make?" The answer depends on your experience, the type of agency, the right software, and other factors. Here's a quick guide to the average salary for a marketing agency owner in Dallas. After reading this, you'll have a better idea of what you can expect to make in the city, and whether the location is right for you.
Salary range of marketing agency owners in Dallas
The median annual salary for a marketing agency owner in Dallas is $111,838, making it one of the highest in the nation. That figure includes bonuses, annual incentives, and other compensation. In fact, Dallas has the highest base salary and total cash compensation of any of the nearby metro areas. The salary range is further influenced by the size of the agency and the owner's position. If the salary is too high or too low, the owner may be in breach of the laws of employment.
Cost of living
If you own a marketing agency and are considering moving to Dallas, you might be wondering how much it costs to live in Dallas. The good news is that Dallas is not as expensive as some other major cities. While housing costs are slightly higher than in other major cities, you can expect transportation and utility costs to be lower. The average income needed to live comfortably is just over $55,000 per year, making this city the best choice for a marketing agency.
Although housing costs are a primary concern, other expenses include education and childcare. In 2020, the average household in the United States will spend $7,316 on food, accounting for about 10 percent of their budget. Lifestyle expenses include clothing, entertainment, and personal care. While these aren't as important as housing and transportation costs, they can make a big difference in the bottom line. Before moving to a new city, make sure you have an accurate understanding of the cost of living in the area that you're considering.
Almost all Dallas marketing agencies operate as pass-through entities, meaning that the owners pay taxes on the profits from the business. The higher the profits, the higher the owner's "draw" from the business. As such, the amount that a Dallas marketing agency owner can expect to earn varies. For example, an owner might make $2.4 million, while a marketing agency owner with $10 million might earn $13 million.
Typically, agency owners pay themselves between $100,000 and $500k a year, though some earn upwards of $1 million annually with distributions. If the owner pays themselves less than $100,000, it may be to comply with the tax advice of their advisors. Then, they can increase their income as the agency grows. The agency owner's compensation is not dependent on how many employees they have but should be consistent with their lifestyle expectations.
Quality of life
For small to medium-sized business owners, the quality of life in Dallas is a key consideration. The city provides ample opportunities for people to enjoy outdoor activities and live in a safe community. Businesses in Dallas enjoy many opportunities for business growth. There are many businesses that offer a diverse range of services, from web development to corporate image branding. Businesses in Dallas are also able to take advantage of social media, which opens the door to communication with local residents.