The $1M Question Every Agency Must Answer 🤔

After helping dozens of agencies become the go-to choice in their vertical, here's the most fundamental strategic decision I see founders struggle with:

Should you pursue high-volume, lower-cost clients or focus on fewer, premium relationships in your vertical?

Here's what 18 years of agency growth experience has taught me:

The size of your target market's average business revenue will fundamentally shape your entire model. 

Let me break this down:

Path 1: High-Volume Play ($1M< Businesses)

• 100+ clients at $300-2,000/month
• Profit comes after systems built
• Scale through automation
• Streamlined, productized services
• Focus on efficiency and systems

Path 2: Premium Partnership ($1M+ Businesses)
Implemented this at Scorpion, scaling from $20M to $150M:

• Fewer clients, higher revenue per client
• $2-5k+/month engagements
• High-touch service model
• Personalized solutions
• Focus on strategic growth

Regardless of which path you choose, success requires:

• Deep vertical expertise - you must truly understand your market
• Strategic partnerships - you're never just a vendor
• Systematic delivery - processes that scale
• Consistent value creation - results that speak for themselves

Your choice impacts everything:

• Team structure
• Tech stack
• Sales process
• Profit potential

The Framework I Give Clients:

Instead of asking which model is better, ask: Which model better aligns with your strengths and vision?