Link Budget Planning
Every link budget splits into transit (what goes to vendors) and margin (agency revenue) under a fixed ratio. Learn the math and the monthly cycle end to end.
What you'll learn
- Understand the transit/margin split and how it's calculated
- Learn the full monthly cycle from board setup to closing
- Know the standard board fields and what each role owns
- Avoid the most common budget-calculation mistakes
The Transit / Margin Split
The client-facing price for each link already includes agency margin. A fixed ratio (commonly 85/15, adjustable month to month by department leadership) splits that price into Transit — the ceiling of what can be paid to vendors — and Margin — the agency's revenue on that line item.
| Link type | Qty | Unit cost (vendor) | Client budget | Transit | Margin |
|---|---|---|---|---|---|
| Outreach (DR50+) | 2 | $300 | $750 | $600 | $150 |
| Digital PR | 1 | $1,200 | $1,500 | $1,200 | $300 |
| Press release | 1 | $510 | $638 | $510.4 | $127.6 |
| Total | 4 | — | $2,888 | $2,310.4 | $577.6 |
The Monthly Cycle
- The SEO specialist creates a board item for the period, fills in link types/quantities/vendor unit cost from the price matrix — the board auto-calculates client price, transit, and margin
- The link-building PM verifies the board matches the link strategy document and requests the budget from the account manager
- The account manager invoices the client, then records the payment once received — never adjusting the underlying calculation themselves
- The PM places orders with vendors, capped strictly at the transit ceiling
- Vendors place links and report placement dates in a shared tracking sheet
- The PM closes the period once all links are confirmed placed, recording the actual transit spent
Common Mistakes to Avoid
| Mistake | Correct approach |
|---|---|
| Entering client price instead of vendor cost into the strategy | Only the vendor unit cost from the price matrix goes in — the board calculates client price automatically |
| Manually recalculating transit | Transit is an automatic formula field — never compute it by hand |
| Closing a period without placement dates | Never close without dates — they're required for accounting reconciliation |
Key Takeaways
- Every client-facing link price splits into Transit (vendor ceiling) and Margin (agency revenue) via a fixed, adjustable ratio
- The monthly cycle runs: strategy setup → PM verification → invoicing → vendor ordering (capped at transit) → placement → closing
- Never enter client price into the strategy — only vendor unit cost; the system computes price/transit/margin automatically
- Account managers invoice and record payment but never touch the underlying budget calculation
- A period can't close without recorded placement dates for every link — this is required for accounting