The one who gives vs. one who takes
Profit and non-profit. This is how we divide the clients thanks to which the agency achieves or does not make a profit. It is likely that not all clients are equally profitable. The costs of an agency that provides a service to an unprofitable client are higher than the income from this client. The client can be looked at from the point of view of profitability from several angles.
- A loyal client who brings low income to the agency, but pays his invoices on time and is a long-term partner. After the first work disagreements, he will not leave for a new agency.
- A creditworthy client who ensures a high income for the agency. The provision of services for him is abrupt, inconsistent, and difficult to plan. He is not a long-term client of the agency.
- Pro bono client, i.e. a non-profit charitable organization that does not pay the agency for its work, or minimum applies. The agency has higher costs than income with the work for this client.
Categorization is not fixed and organizations can modify and change it. It is important that agency owners know the value and profitability of each project or client.