In this episode, hosts Peter Kang and Sei-Wook Kim dive into one of the most challenging but necessary decisions agency leaders face: when and how to let go of clients. As agencies grow, not every client remains a good fit. Peter and Sei-Wook break down the key factors to consider when evaluating your client roster, from strategic alignment and profitability to relationship quality and payment behavior.
They share real-world examples from their own experiences at Barrel, including how shifting their focus to Shopify-led projects meant parting ways with clients on other platforms. They also tackle tough topics like dealing with unprofitable accounts, managing difficult client relationships, and knowing when to walk away from a high-risk engagement.
Whether you're struggling with client concentration, operational overload, or simply want to build a more intentional client portfolio, this episode offers a practical framework for making proactive, strategic decisions that support long-term agency health.
Key Moments
1. Why "pruning" your client list is essential for sustainable growth.
2. How to assess strategic fit using your Ideal Client Profile (ICP).
3. When to prioritize profitability over revenue.
4. Evaluating account expansion potential vs. dead-end relationships.
5. The role of relationship quality and access to decision-makers.
6. Red flags in client payment behavior and how to respond.
7. Managing operational load and protecting team morale.
8. Weighing the marketing value of a client (case studies, brand credibility).
9. Understanding risk factors like client concentration and legal exposure.
10. Knowing when to bow out of a project, even after it's started.
Real Talk Takeaways
1. Not all revenue is good revenue. Unprofitable clients can drain resources and morale.
2. Strategic fit matters. Align your client roster with where you're going, not where you've been.
3. Payment behavior is a leading indicator of respect, and risk.
4. Protect your team. Difficult clients can cause burnout and turnover.
5. Sometimes the best business decision is to fire a client.
6. Leaders must own the tough calls. Don't push them down to the team.
7. Risk isn't always financial, reputational and legal risks can be just as damaging.
Timestamps
00:00 – Welcome to Agency Habits
00:19 – Why agencies need to regularly assess client fit
01:35 – The tree-pruning analogy for agency growth
01:56 – Factor #1: Strategic fit & Ideal Client Profile (ICP)
03:46 – Barrel's experience with platform fragmentation
04:45 – Factor #2: Gross margin & profitability
06:15 – The trap of "ossified" unprofitable relationships
07:31 – Factor #3: Account expansion potential
08:55 – How to allocate resources based on growth potential
10:18 – Factor #4: Relationship quality & access to decision-makers
12:19 – When bad behavior justifies ending a relationship
13:21 – Factor #5: Payment behavior & red flags
15:06 – Why agencies aren't banks—setting payment boundaries
17:32 – Factor #6: Operational load & team impact
20:43 – How to give feedback to high-maintenance clients
22:33 – The leadership decision to protect the team
23:41 – Factor #7: Case study & marketing value
25:28 – When you can't talk about the work (e.g., Apple)
26:38 – Factor #8: Risk (concentration, reputation, legal)
28:14 – Reputational risks and company values
29:26 – When to walk away from an oversold project
30:41 – Wrap-up: Making proactive decisions for growth
Notable Quotes
"They are the people that are paying you now and are supporting your business, but that doesn't mean they're the right fit for the next phase of your growth."
"Agencies are not banks. We're not here to lend unlimited credit to our clients."
"If you don't make the decision, it could cause burnout turnover. If you do make a quick decision, you can build a lot of trust."
"Not every client needs to be a case study, but every client should align with your values and operational sanity."
"Sometimes it's better to bow out and take the hit immediately versus a much
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Medal of Honor: Stories of Courage
Rewarded for bravery that goes above and beyond the call of duty, the Medal of Honor is the United States’ top military decoration. The stories we tell are about the heroes who have distinguished themselves by acts of heroism and courage that have saved lives. From Judith Resnik, the second woman in space, to Daniel Daly, one of only 19 people to have received the Medal of Honor twice, these are stories about those who have done the improbable and unexpected, who have sacrificed something in the name of something much bigger than themselves. Every Wednesday on Medal of Honor, uncover what their experiences tell us about the nature of sacrifice, why people put their lives in danger for others, and what happens after you’ve become a hero. Special thanks to series creator Dan McGinn, to the Congressional Medal of Honor Society and Adam Plumpton. Medal of Honor begins on May 28. Subscribe to Pushkin+ to hear ad-free episodes one week early. Find Pushkin+ on the Medal of Honor show page in Apple or at Pushkin.fm. Subscribe on Apple: apple.co/pushkin Subscribe on Pushkin: pushkin.fm/plus
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com