Day 3

Module 1 | Focus: Client profitability segmentation

Summary

Not all clients are equal. Some generate massive profit with minimal friction. Others consume enormous energy while producing minimal returns. Today you'll segment your client base into four categories: Stars (high profit, low friction), Workhorses (high profit, high friction), Question Marks (low profit, low friction), and Anchors (low profit, high friction). Then you'll decide what to do with each group.

Key Lesson

The Pareto Principle applies with brutal force in design agencies. Typically 20% of clients generate 80% of profit. The bottom 20% of clients often consume 50% of your time and mental energy.

Action Steps

1. List all clients from the past 12 months with total revenue from each
2. Rate each client on a 1-5 scale for profitability (revenue relative to time invested)
3. Rate each client on a 1-5 scale for ease of working together
4. Plot each client on a 2x2 matrix: Profitability vs. Ease
5. Identify 2-3 Anchor clients you should transition out of your business

Revenue Connection

Firing your worst 20% of clients frees up capacity to serve (and find) more Star clients. One Star client often generates more profit than three Anchor clients combined, with dramatically less stress.

Clozo Academy Proprietary Curriculum — The Design Agency Growth System