When building a base of clients it helps to rank them high-to-low by annual revenue generated and then to map out how ideally you would like to see the same in the future.
It is common to find that:
- A disproportionate share of revenue comes from relatively few clients.
- It is wise to target to increase the amount of revenue from the largest clients.
- A good strategy is to seek to add one more large client (as opposed to a lot of small ones).
- Tracking clients by revenue size brings focused attention on the right things for growth.
- The initial question: “how many clients generate more than $1M/year?” ideally morphs over time into “how many clients generate more than $5M/year?”.