One of the main focus areas of our work with agency clients is on project and service level profitability. Often the path to improving this profitability - especially for retainer work - involves expectation setting, eliminating scope creep, and managing to an appropriate utilization and leverage model. But sometimes these things aren’t enough, and the only way to salvage firm-wide margin is to part ways with a bad fit.
"Your $50,000/mo clients tend to be less demanding than your $5,000/mo clients."
Karl Sakas, industry veteran and consultant, has an enormous amount of experience working through this issue with his own clients.
In our sit-down with Karl, we explore these situations, including the Pareto principle phenomenon that the clients demanding the most effort often produce the least revenue / profit, and we discuss how to consider eliminating these poor relationships.
Watch the video below!