Meter
Margin per client (M)
Margin per client is the fourth C.A.L.M. meter: revenue minus allocated direct costs, per client, per month. Norm: 40% or higher, and you know which clients are under it.
Per client, not on average
An agency margin of 35% can hide three clients at 60% and two at minus ten. The meter is per client so you know which decision to make, and with whom.
Direct costs
People, freelancers, tokens and tooling allocated to the client. Not overhead. If you cannot allocate it, the measurement is the first installation.
Why first
Margin per client tells you whether growth pays. It comes before inflow and before handing over delivery. The C.A.L.M. Sprint starts here: prices indexed, scope closed, the wrong clients ended.
Frequently Asked Questions
Why 40%?
Below it there is no room to pay for the delivery to run without you, and no room for a bad month. Above it, growth funds itself.
What do I do with a client under 40%?
Raise the price, close the scope, or end the client. Within a month. Not deciding is also a decision, and the most expensive one.