Most agencies are built on a foundation of one or two anchor clients, but many struggle to break free from the dominance of these relationships.
If you have more than 20% of your revenue coming from one client, you don’t need me to tell you that you have a major issue.
Such a reliance can be draining operationally and emotionally. But it’s not just the present that this situation affects. Client dominance significantly impacts the chances of selling your business and/or the value you might realise in the future.
I always say that nobody really has a client dominance problem, only a new business problem. But I know from experience how difficult it is to break the cycle and spend time on new business rather than your client. The bigger the client, the harder it seems to be.
If you have a “whale” client…
1. New business lead generation is your number one priority.
2. Get the best contract you can with your client
3. Work to achieve and maintain a higher cash buffer in your agency
4. Use more freelance resource than you would with a balanced portfolio
As tough as it might be for some to hear: STANDOUT agencies don’t rely on one client.
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