The mark-up on a line item is a hidden mark-up. For example, if you have a hard drive at $100 and you mark it up at 50%, then your client sees the item as $150 and you get $50 profit. When delineating agency fees for talent, we recommend adding a separate line item for agency fees. Since you’re not marking up the talent for yourself, you can show the client what the mark-up is on the talent fees or you can put in the entire amount of the talent line item (in your case $540) and in the memo section put “includes 20% agency fee.”

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