OK it may have taken me a ridiculously long time to
realise this but I can now finally acknowledge that working for an unprofitable
client is in fact more damaging to your agency business than not having that client at
all. Plus it isn't the best for the client either, despite the bargain they might think they're getting.
For years I had always justified taking on lower value
work if there was capacity in the business as I felt it was better to be busy, plus it may open
the door to extra work in the future. However this is what I've learnt:
2. Looking busy is not the same as making money. Like the
saying goes turnover is reality and profit is reality. Low value clients just
tie up resources. If you have spare capacity then use it on promoting your own
business through social media, networking and content generation.
3. Low value projects can cost almost as much to service
as high value projects. I'm talking about all those hidden costs of planning,
reviewing, reporting, invoicing, credit control and so on. In fact in my
experience some low value clients can actually be more demanding and time
consuming than high value ones.
4. Low value work is bad for staff morale. People want to
be valued and no matter how much you try and make your team feel like you value
them it's only part of the picture, if deep down they know the client doesn't
value their work enough to pay a fair price.
5. Ultimately, low value work will not get results. This is especially true now for SEO where the shortcuts have been steadily blocked
off by Google until the only effective techniques involve a more manual
approach that relies on credibility and trust.
Now this is all looking at the downside but what about
the upside? What can happen when a client pays a realistic fee for the right amount
of work which is needed to get results. Take this example.
We had a client we'd worked with for about 6 months on a
very low fee as it was the first SEO work they'd ever had, but in all honesty
we struggled to make a breakthrough for them plus they had a number of
technical issues with their website. We took a break and went to see them,
explained what more we could be doing and why, got the site issues fixed then,
and only then resumed work at a higher fee level. After just two months they are now seeing sustainable website traffic increases of over 250% and that's per month!
Now as the owner of the business I still retain my
prerogative to help people out now and then with some discounted work. But now
I show them the real price and what they are getting as discount so they
appreciate the true value of what they are receiving. Plus I now have a great
team around me to keep me on the straight and narrow!
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