Not All Revenue is Equal
TL;DR The shape of your agency’s revenue can have a massive impact on your valuation and your ability to grow sustainably. The balance between projects and retainers is the main component of your revenue profile. Fast-growing agencies completed about 25% more projects than the slow-growing ones while having about 20% fewer retainer clients. Recent market dynamics are forcing a shift away from retainers and toward projects. Client concentration is another major revenue profile component. For...