Hot take: I used to think a 30% profit margin was the only goal for my agency.

After losing a key client in Austin last quarter, I switched to focusing on client retention first. Now I aim for a 20% margin but work to keep clients for at least 24 months, which has actually raised my total profit. How do you balance margin targets with keeping clients long term?

3 comments

3 Comments

gavin92815h ago

It's not just about the total profit number though. You also free up a ton of mental energy not having to chase new work all the time. That stability lets you plan better.

casey78715h ago

Yeah, the "total profit" part is what really matters. A buddy of mine ran his shop into the ground chasing those high-margin, one-off projects. He finally switched to aiming for reliable, repeat work with a smaller cut each time, and now he sleeps a lot better. It's like what @the_ben said, it just makes the whole business feel solid. You stop sweating every single project cost and start building something that lasts.

the_ben19h ago

Totally agree! We made the same shift and it's been a game changer for our agency's stability.