You’ve heard the old adage “less is more,” but just how true is this notion when we apply it to a business setting? For most entrepreneurs, when planning up new ways to accelerate growth and increase revenue, one of the first things they think of is bringing in more customers.
And to be honest, it’s hard to argue against that thought process. Customers are what brings in the dollars, so if you want more dollars, what do you need to do? Find more customers.
However, when you apply it to a real-world setting this logic is flawed for a number of reasons, especially when discussing service-based businesses where you trade your time for money.
Why more clients don’t equal more profit
First of all, your time is a limited resource, and the more of it you spend searching for new clients, the less time you have to actually make money. Secondly, as your client list increases, so too does your list of responsibilities, demands, and obligations, and for most of them, your company reputation depends on meeting them adequately.
And let’s not forget, searching for new clients costs money! Whether you’re spending money on marketing costs or paying to get into networking events, it’s an expense you could do without. Just about every business owner can relate to sinking a ton of money on failed marketing efforts. It’s not the greatest feeling in the world, put it that way.
Here’s the thing; sometimes, the best business decisions seem like financial suicide at first glance. Even though actively adopting a strategy to work with fewer clients appears to be reckless, rash, and downright stupid, there is a method to the madness.
Russ Ruffino, CEO, and Founder of Clients on Demand, is an advocate for this exact line of thinking, and it’s hard to contend against someone with such a propensity for delivering massive results for his students. Over the past decade or so, Ruffino has dedicated himself to perfecting his craft as a consultant, coach, and business advisor, where he now runs one of the most successful wealth-building systems around.
“Most people tend to think that more clients equals more profit. However, that isn’t the case. Sometimes the key to scaling your business faster than ever before is working with FEWER clients,” says Ruffino – here’s why:
The clients you work with matters
Working with the wrong clients can be disastrous for your business. If you still have the mantra that you should never turn down a paying client or that the customer is always right, it’s time to finally ditch this fallacy.
In the real world, bad clients will cost you money, waste your time, and damage your reputation. If you run a coaching or consultancy business, your client’s success is a direct representation of how good you are at your job. If you have a long list of failed clients, why would anybody want to hire you? This is why it’s crucial to cherry-pick the people you work with so you can create a mutually beneficial situation for everyone involved.
“You don’t want just any clients, but the right clients. The ones who are thrilled to work with you. Who understands that you’re unique and different from anyone else in the marketplace. Who show up coachable, decisive, and resourceful. Who do the work, get the results, and make you look like a rock star,” explains Russ Ruffino
When you have more time, you can deliver more value
Here’s the key to the equation. When you work with fewer clients, you have more time to invest in them, which means you can deliver more value. This has a positive compounding effect where you have a higher likelihood of providing the desired outcome for your client, and as a result, your reputation goes up, and you can increase your prices. Plus, it becomes easier for you to find higher-quality clients in the future, and you should find more work coming to you via word of mouth.
“It’s far better for everyone involved if you work with, let’s say, 5 or 6 VIP clients with whom you can provide your 110% best service, rather than spreading yourself too thin over 40 low-paying clients,” says Ruffino.
You can increase your prices
As we have touched upon a few times in this article, the only way this method works is if you are able to increase your prices and find clients who are willing to pay. Of course, this is the tricky part, but it’s usually not quite as tough as you might expect. There are certain strategies you can follow, but for the most part, it’s all about creating perceived value and positioning yourself appropriately in the market.
“We show our clients how to realize their true potential and find the confidence to charge the prices that they deserve. This eliminates the 90% of the daily groundwork that normally would have bogged them down, as their schedule is drastically reduced. Yes, this prices a lot of potential customers out, but that’s precisely why it works. It’s important to remember we operate in one of the most competitive industries globally, yet our goal is to provide our clients with the absolute best service around. In reality, we practice exactly what we teach, it’s as simple as that,” says Ruffino.
To see how implementing Clients on Demand’s strategies has worked on real-life businesses around the world, check out some of the testimonials from their clients to see just how effective it can be to work with fewer clients.
