A healthy agency will get 60-70% of its net new revenue from existing clients. This ratio is even more critical in 2023.
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Hey everybody, Drew McLellan here from Agency Management Institute coming to you again from Nassau, Bahamas, where we just wrapped up our second peer group in two weeks. One of the big topics in this peer group was how do we better grow our existing clients? I believe that 2023 is a year where we are going to have to really focus on growing the existing pieces of business we have. While BizDev takes a little longer to develop and to close, we have got to put more emphasis on growing our existing clients. Remember, 60-70% of your net new revenue for 2023 should come from clients that you had in 2022. Again, let me repeat that. 60-70% of your net new revenue. So you think what your go-get is for the year. Your go-get of the year, let's say it's $1 million. $600,000 to $700,000 of that million ideally should come from your existing clients. How do you do that? A couple things. Number one, your AEs need to have a plan. They need to have a plan about how they're going to take new ideas to clients, how they're going to learn more about the clients that you have so they can have better ideas of how to help them grow their business, and you've got to have a cadence of how and when you're going to present those ideas. Every once in a while, client growth just happens by accident: they're adding a new location, they're rebranding, they're doing something that triggers a big additional purchase for us. But in most cases, client growth is the result of really understanding our clients, really thinking about their business, really investing some time and energy into thinking about them, and being very clear and intentional about taking them new ideas and new opportunities so that you can present to them some things that they can't say no to. So 2023 is the year for growing your existing book of business. And this does not happen without a plan with your AEs. They may not know how to create that plan by themselves so you may have to sit down with them and do it together. But the good news is teach them this year and they'll be ready to do it on their own next year. Do not let this happen by accident or by chance, because it won't happen at the volume that I think you're going to need it to this year. All right? So go grow those clients! Talk to you soon.