A pricing model with a big upfront fee and small recurring charge keeps customers longer than agencies that expect constant churn. If you lose 75 clients every four months, you need 100 new ones just to stay flat.
Every four months an agency may need to onboard 100 new clients because they expect to lose about 75.
You just have like a large upfront fee and then you have a smaller, you know, recurring fee on the back end. Then you can have more retention to where you get, you know, you make your profit on the front end for customer acquisition and then you have something that's recurring over and over and over and over again after that.
Right. And what's tough is that a lot of like agencies especially their business model is based off churn rate. So you're, you're like well every four months we need to onboard 100 new clients because we're going to lose, you know, 75 and that's still going to keep us on track for our growth goals. Yeah, yeah. You just don't want that sort of model that's like that. You obviously it's sustainable. It's how most have I would, I would go as far as saying most businesses are agencies are built off of that.
