High margins are overrated

27 Nov 2024 · 1 min

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This content was created by Feras Alhlou. This content was uploaded by Feras Alhlou. This is a YouTube video titled "High margins are overrated" (published 2024-11-27). It features a single speaker giving advice to small service providers and agencies: don't prioritize high margins above growth, consider taking on larger or more complex projects (even at lower margins) by partnering with outside help to gain client logos, cover fixed costs (salaries, subscriptions, insurance), and build future work opportunities — noting small agencies often can't deliver big projects alone. Metadata includes a thumbnail URL and the listed content type YOUTUBE.

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But if you're just starting or you've started and you're struggling and you're not seeing the growth you want, high margins shouldn't be your only priority. Tapping into more complex projects with outside help will open future doors because you'll have client logos you can brag about, revenue to cover your fixed costs like salaries, subscriptions, and insurance, even at a low margin, and connections with clients as a potential for future work. Also, usually single or small service providers or agencies cannot deliver big projects on their own anyway.