One of the most overlooked opportunities for increasing profitability in an agency lies within your existing client base. Many agencies focus on bringing in new clients to boost revenue, but one of the easiest ways to unlock hidden profits is by upselling older clients who aren’t paying as much as your newer ones—especially those you aren’t earning a good margin on.
By following this simple upselling formula, you can turn low-margin clients into profitable relationships while maintaining their loyalty and satisfaction.
1. Identify the Clients with Low Margins
The first step in unlocking hidden profits is to identify the clients in your portfolio who are contributing the least to your bottom line. Often, these are older clients who have been with your agency for a long time but are still paying lower rates from when they first signed on. Over time, as your agency has grown and evolved, your pricing likely increased for new clients to reflect the value you provide—yet these older clients are still benefiting from outdated pricing.
These clients may not even realize they’re paying less than your current market rates, and as your costs have increased, they’ve become lower-margin accounts. This makes them prime candidates for an upsell.
Review your client list and evaluate which accounts are operating on thin margins. This could be based on factors like the cost of delivering services to them compared to the revenue they generate or how much time your team spends on their account versus the profit you’re making.
2. Tailor Your Upsell Offers to Meet Their Needs
Once you’ve identified your low-margin clients, it’s time to think strategically about how you can upsell them. Rather than simply increasing their rates across the board, take a more thoughtful approach. Consider offering them additional services or upgraded packages that meet their current needs and provide more value.
For example, if a client signed on with your agency several years ago for basic digital marketing services, they may now benefit from more advanced offerings like social media management, paid advertising, or content creation. By bundling these additional services into a new package, you can justify a higher price point while delivering more value.
It’s important to frame the upsell as a win-win. Show the client how these additional services will help them achieve better results, grow their business, or solve specific pain points. When clients see the direct benefit of the upsell, they’re more likely to agree to the higher rate.
3. Address Legacy Pricing Head-On
If upselling additional services isn’t feasible or relevant for some of your clients, you’ll need to address their legacy pricing directly. It’s essential to have an open and honest conversation about the value you’re providing and the need for an updated pricing structure that reflects the current market and the services your agency delivers.
Many older clients may not even be aware that they’re paying less than newer clients, and they may be open to a rate increase if it’s explained clearly. Approach this conversation with transparency. Explain how the scope of work has likely expanded over the years, how the costs of delivering services have increased, and how your agency has grown in expertise and capabilities since they first became a client.
If you’ve been delivering results and maintaining a strong relationship, many clients will understand that a rate adjustment is fair and necessary.
4. Offer Incentives for Early Adoption
To encourage your clients to agree to the upsell or pricing adjustment quickly, consider offering incentives for early adoption. For instance, you could provide a discounted rate for the first three months of the new service package or include a complimentary service if they agree to the upsell by a certain date.
This creates urgency and makes the transition easier for clients who may be hesitant to commit to higher prices right away. By offering a tangible benefit, you make it more appealing for them to upgrade their services or agree to the new rates.
5. Maintain the Relationship and Continue to Deliver Value
The key to successfully upselling and retaining older clients is to ensure that you continue to deliver exceptional value after the upsell. Don’t just raise rates or add services without following through on your promises. Make sure that your client sees the return on their investment, whether it’s through better results, improved communication, or more streamlined service delivery.
By continuing to demonstrate your value and delivering high-quality services, you’ll reinforce the client’s decision to stick with your agency and invest in the upsell. Regularly check in with these clients to ensure they’re satisfied with the new services and feel that they’re getting the most out of their partnership with you.
Conclusion: Turn Low-Margin Clients into High-Profit Opportunities
Unlocking hidden profits in your agency doesn’t always require landing new clients—it often starts with maximizing the relationships you already have. By upselling older clients who are paying less than your current rates or offering additional services, you can turn low-margin accounts into profitable partnerships.
The key is to identify those clients, tailor your upsell offers to their needs, address legacy pricing openly, and maintain a strong relationship by delivering continued value. Follow this formula, and you’ll discover that some of the easiest profits to unlock are already right under your nose.