Losing a client almost WIPED OUT their agency... ?????? This is exactly why I've heard many agency veterans (like Jay, Drew & Karl) recommend keeping a close eye on the % of total revenue taken up by your largest client(s). If they leave--it could be disastrous. This was *almost* the case for Michael Davern & the team at Incept. 3 pieces of advice he shared for other agencies: 1) Don't let one client take up nearly 50% of your revenue, as they did. 2) Don't ignore your contingency plan. Make sure you're taking steps before they decide to leave to backfill that revenue. 3) Don't brush off early warning signs. Just because a new client is willing to write a big check (or multiple checks!), doesn't mean they're a good, long-term fit for your agency. Are their expectations in line? Can you establish a healthy working relationship? If red flags appear, don't shove them back down! What would you add to this list? #B2B #marketing #digitalagency #agencygrowth #agencylife btw...thankfully Michael & his team lived to tell the tale, including how they survived the loss of a MAJOR client and what they're doing differently now. He shared the whole story on the Agency Builders Podcast this week (link to the full episode below).
When an agency has a gorilla, they will often say -- "we really need to level up our biz dev efforts to balance the gorilla. We'll do that as soon as we aren't so busy." Which never happens... and then when they get the word that the client is leaving... it's too late. Landing any client is hard. Landing a client that covers 50%+ of your AGI within 30-60 days is a whole different level of hard.
Logan Thanks for sharing your interview with Michael Davern, and thanks for the shoutout! Anything to help agencies avoid the consequences of Client Concentration.
Thank you for having me on, Logan! I hope this helps another agency avoid this pitfall.
Making marketing clear & effective | Christ Follower | Director of Growth at Business Builders & Agency Builders
1 个月Check out the full conversation here: https://podcast.agencybuilders.com/2417433/episodes/16522020-one-client-almost-wiped-out-their-agency-how-they-survived