STANDOUT agencies ensure clients aren’t too small.

STANDSTILL agencies ensure clients aren’t too big.

STANDOUT agencies ensure clients aren’t too small.

Many agency owners are concerned about a single client dominating their agency. My colleague Pete Hoole at Cactus advises all our agencies to try to ensure no single client is more than 20% of their gross profit.

As tempting as the revenue may sometimes be, allowing a “whale” client to consume you can be extremely risky.

STANDOUT agencies are acutely aware of this. My friend Gabriel Ehrlich at Remotion in Tel Aviv, not only controls the big fish, he also controls the little fish.

Gabriel has a policy that each of his smaller clients at Remotion must represent at least 20% of the gross profit he receives from his largest client.

Sound advice. Nobody wants to resign good clients, but are they really “good” if they are only able to contribute a tiny amount to your business performance?

If you have some tiny clients, are they ever going to grow? Are they contributing to your bottom line or just keeping you busy?