The mathematical reason why agencies get stuck at $50k MRR

In this web content, the author explores why agencies often struggle to break through the $50k monthly revenue barrier and reach higher levels of revenue. They identify two main factors that contribute to this stagnation: churn and owner capacity. Churn refers to the rate at which clients leave the agency, which becomes more challenging to manage as the agency grows in size. Owner capacity refers to the limitations of a single person handling service delivery for a certain number of clients, leading to a drop in quality and increased churn. The author emphasizes that a different approach is needed to overcome this barrier, as simply acquiring more clients or following a slow and steady growth strategy will not be enough.

http://jakobgreenfeld.com/agency-model

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