The Difference Between Low-Ticket and High-Ticket Clients: A Guide to Building a Cash Flow Business

When it comes to building a successful agency, one of the most important decisions you'll make is determining which clients to target. In this article, we'll explore the difference between low-ticket and high-ticket clients, and how choosing the right client size can impact your business's profitability and growth.

First, let's talk about what low-ticket clients are. For our purposes, a low-ticket client refers to someone who is willing to pay for services on the lower end of the scale, typically in the range of $1,000 to $5,000 per project. These clients often require less administrative effort and can be a good starting point for new agencies looking to build cash flow and gain experience.

On the other hand, high-ticket clients refer to individuals or businesses that are willing to pay for services on the higher end of the scale, typically in the range of $5,000 to $50,000 per project. These clients often require more administrative effort and can be a good choice for agencies looking to build a reputation and generate significant revenue.

So, why is it that some agencies choose to focus on low-ticket clients while others target high-ticket clients? The answer lies in the amount of time and effort required to deliver services to each type of client. For example, working with a $5,000 project may require just as much administrative effort as a $10,000 project or more.

When I first started building my agency, I focused on low-ticket clients because it was easier to get started and build momentum. However, over time, I realized that the most profitable work came from high-ticket clients. With experience comes knowledge of what works best for your business, and I learned to prioritize high-ticket projects to maximize profitability.

One strategy I use is to focus on a niche or general agency depending on my goals. If I'm looking to build cash flow quickly, I'll start with low-ticket clients. However, if I have the experience and resources to take on higher-level projects, I'll aim for high-ticket clients. This approach allows me to balance profitability with the need to stay busy and keep the business growing.

Another key consideration is the type of work you want to do. If you're looking to build a cash flow business and make $15-20,000 per month, focusing on low-ticket clients can be a good way to get started. However, if you have more experience and are looking to take your business to the next level, high-ticket clients may be a better fit.

The key is to choose the client size based on your goals and what works best for your business. Don't assume that just because a client offers a higher price point, it's automatically worth taking on. Admin involvement can vary greatly depending on the project's complexity, and you need to consider whether or not the extra time and effort is worth it.

One example of how this played out in my own business was when I started working with larger clients. At first, I had to take on more sales calls and administrative work, which took away from the actual work that needed to be done. However, as I gained experience, I found a sweet spot where I could deliver high-quality services for a reasonable price without sacrificing too much time or effort.

In contrast, working with smaller clients can be less efficient in terms of administration. For example, when I was working on projects with a lower ticket size, I would often find myself doing the same tasks over and over again, such as writing proposals, reviewing contracts, and building deliverables. While these tasks are necessary, they take time away from more creative and high-value work.

The bottom line is that there's no one-size-fits-all approach to client selection. What works for one agency may not work for another, depending on their goals, resources, and target market. By considering the pros and cons of each client size and choosing the one that aligns best with your business strategy, you can build a profitable and sustainable agency that brings in consistent revenue.

One final point I want to make is that it's essential to be realistic about what you're willing to take on as an agency. Don't try to do too much by taking on clients who will require excessive administrative effort. You'll find that the admin involvement of doing a $1,000 project is often similar to that of a $5,000 or $10,000 project. This means that there's a sweet spot where you're delivering high-quality services for a reasonable price without sacrificing too much time or energy.

In my experience, this sweet spot has been around the $10,000 mark. At this point, I've typically found that the administrative effort required is manageable, and the revenue generated per project is significant enough to make it worth the extra effort. Of course, every business is different, and what works for one agency may not work for another. But as a general rule of thumb, focusing on clients in the $10,000 range has proven to be a good starting point for building a profitable and sustainable agency.

In conclusion, choosing the right client size is critical when it comes to building a successful agency. By understanding the difference between low-ticket and high-ticket clients and selecting the one that aligns best with your business strategy, you can build a profitable and sustainable agency that brings in consistent revenue. Remember to be realistic about what you're willing to take on, and don't sacrifice too much time or energy for projects that may not offer significant returns. With the right approach, you can build an agency that truly delivers results.

WEBVTTKind: captionsLanguage: enso what is the difference between a $5,000 AI agency project and one that's worth $105,000 in this video I'm going to be breaking down two client projects from my own agency morning side aai and you'll get to see the differences in resources and sort of effort involved in each of these because you're probably thinking that bigger is better right but that's not necessarily the case and it really comes down to what you want to achieve with your agency so in this video I really want to give you a clear look at the UPS sort of the pros and cons for each of these U because it's not all sunshine and rainbows and there are reasons why you wouldn't want a bigger client and you would want a $5,000 one instead so I'm going to try to break things down the factors involved in making these decisions so that you can better aim your agency in the right direction whether you want to do one that's cash flowing and sort of Fairly handsfree or you're trying to build a large AI development company and start to get bigger and bigger projects and you're biding on the long term so starting off with the $5,000 project this was a client who had a business base around helping people pay less on their car insurance claims so if you're in an accident you go to a repair shop they try to see well the insurance company wants to try and put as much of it as possible on you uh but there's a where you can go back and forth with them and say no this should be covered by insurance and that's what the business was based around and they had a a human operated system for doing the sort of back and forth and analyzing if there's anything in the in the invoices that they could sort of dispute and we were able to set up an AI system to do that for them so that was a $5,000 project the $15,000 project was a complete AI SAS platform build that we did from start to finish we did all of the AI backends planning systems built it from scratch all custom coded and we also built the front end as well so we call this one a car insurance claims and this one full AI SS and this was in the healthcare industry it was uh for nurses I can't go into it too much uh but it was in the healthcare industry helping nurses to come up to speed using these AI systems that we could train them faster on um so that's the two different size projects so you got a bit of context and for the I'll put Bing Bing some some screenshots on on screen there was just a single payment for this I believe um and for this it was three different three or four different payments and this is now on a maintenance package with us where we get paid monthly to maintain it and sort of add add not add features but we're just maintaining it for now um and also being there on hand to fix any bug fixes that come along so there's a couple key areas that I want to break down for for these so you understand the associated sort of pros and cons for each right so $5,000 project by Nature uh let me draw up a bit of a table here so if I have a table here we can start to sort of lay out the difference between the two in a number of different areas then we can have prod here so the type of project we can have admin we can have sales this will make sense in a second give give me a minute sales uh then we can have the case study value we can have the profit and then we can have the duration that's a clock um and then we can divide these up so these are the different sort of factors or or costs associated with them we have the project itself we have the admin time we have the sales time we have the case study value we have the profitability or profit of the of the entire build then we have the time that it takes so uh there's also other factors which you're going to but this is this we get us started for now so we have the project here we have the 5K oh 5K and this one down here we have the 105k so just putting it on quickly we had one hour here we had here and then we had 3 hours here and we probably had about 15 here so this is the time involvement on the sales side and on the admin side so just to get this 5K deal it's not $5 it's 5,000 just to get this $5,000 deal closed we had to do a an hour's worth of sales so that might be just two two calls one Discovery call and then one follow-up call just to get started and then that went into about 3 hours of admin so throughout the duration of the project which I can put down here uh which was 3 weeks um and this one was uh s of three and a half months so a lot longer right so you can see off the bat that the smaller project is easier to get on easier to sign um there's less admin involved throughout the duration of the build um and it's done in a in a faster man time right 3 weeks to get the money um and in this case we're spending over 10 hours of messing around with proposals and going back and forth and identifying the scope because it's such a big project there are so many more questions you need to ask about the from the client and do far far more Discovery and digging to really plan out okay this is the scope of the project this is what we're going to do um and then there this kind of awkward stage where like they know what they want but they kind of want to see the designs and see the plan and it's like well you need to pay us for that so we need to do an exploration uh there's quite a lot involved here as you can so for the customer to be willing to get into a $100,000 contract there's a lot of work and sort of relationship building that needs to be done as well then we have a factor here called the case study grade um and because this is a fairly basic AI sort of system that's not too flashy um you're really getting what might be handy case stud is always going to be handy um but this one is not hugely um in terms of impressing other clients like hey we built a $5,000 system for this kind of client it's not at least for what we're doing at my my company it's not hugely impressive um but complete AI SAS build is let's well you can always be better but we'll give it a 9 out of 10 we can show our clients that we built this end to end SAS and they like well well if they can do that then I'm sure they can do everything everything underneath that uh then we have the actual profit for this so on this build it was oh it was 3,000 and on this build it was 31,000 so you can see 5,000 into 3, 105 into 31 you can see the profit margins on these are very different uh this is over 50% and this is like 30% profit margins right so uh for the amount of time you putting in this is when you need to start evaluating okay well do I want to be getting sort of better Returns on my time here cuz this is 3 weeks You' did a quick maths here and you said okay this is going to be 1,000 profit ppw $11,000 in profit per week um 3 and a half months I guess you can say that 10K per month um go down to what two 2.3 maybe 2.3 um k p p week is that right with something like that maybe about 2,000 profit per week I'll get Shan to check the M on that but yeah so keeping these in mind you're going to make a lot more money per project in terms of profitability but this is going to take a lot longer you're going to get better case studies you're going to spend a lot more time going back and forth and this doesn't even factor in the the fact that in order to get this you might have had to have three to five of these in the pipeline that we've had lot of people interested in building these AI SES with us but very few get to the point of completion because it's a 10hour sales process and then they have to make these big commitments of $105,000 so this doesn't even factor in the sort of fail rate of this so we might have to put like times five on this cuz it's five times it's failed before we even get to one but in this case we might have just had five of them and it ends up being 5 hours total so hope that gives you a good idea of the different pros and cons uh obviously bigger clients bigger projects going to take more investment on the sort of relationship building and sales side there's bigger proposals to do there's more refinement of the proposal agreeing on scope much larger timelines just in general this is going to take you like a month and a bit or more just to get them to the point where they're willing to commit um you can use what we like to do which is an exploration Milestone which I think I'm going to cover in another video but that can actually break down the sales process and get these bigger clients on board a lot sooner but you'll have to subscribe or or like or something to catch that next one cuz I want to do a whole video on exploration Milestones I don't want to get sucked into it on this and there's actually one more thing that I want to add on here um which you can call sort of company culture um and the way that these different projects have an effect um culture um I'm going to have to do a bit of a quick job on this one but the effect on company culture if you're trying to build a development team and a a a collection of people who are inspired and feel like they're working towards cool things building $5,000 chat Bots or in this case sort of automation systems is is a way to get money in the door but it's not going to fire up your a players when you're trying to bring in attract and retain high quality Talent there's only so many $5,000 little chatbot builds you can do before they start going hey look I want to either get paid more or I want to go somewhere where I'm feeling more fulfilled because they have the skills to be able to go anywhere and get hired by anyone so they're really looking for what you can add on top of just monetary which is adding some kind of interesting aspect to it like hey look I just built out an entire AI s that could revolutionize the healthcare industry or I've just built these chaps so you have to look at culture here maybe I do red um the culture and the effect of it on the company culture goes down so we saw our team our development team was extremely fired up throughout the the entire build of this CU it was cool we're working with a client that we really liked the our client is awesome and we've got them on retainer now so he's we're continuing to work with them and we're like going to build future features into the platform longer term um but our developers got to work directly with a really cool client who had great values and was excited to work with us as well and the end result was such a great for our team as as us as this this startup this AI startup that started 12 months ago 14 probably about 12 months ago now um we were able to go from these small basic jackpots right up to knocking off a complete SAS build that the client was absolutely like wrapped they were so happy with the outcome and for myself my business partner Josh my CTO Spencer for all of us to be working on this project to completion and see it come together uh was a really really great moment and a high point for us as a team and and seeing that we could do these large projects and we could pull it off together so U the culture and the effect of these larger projects cannot be understated if you want to attract quality talent and retain them you can't just be feeding them sort of small projects constantly so just keep that in mind and this brings me backgr full circle to what I was saying before and I can rub this off now which is which kind of project should you be aiming for and that comes down to what kind of agency you want to build what are your goals with this business model what are your goals with the AI space are you looking to create cash flow and just get off the ground and be able to make money online so you can go live as a digital Nomad and and go to Barley and do all this cool stuff or are you looking to build Enterprise Value build a valuable team and in that case we can kind of plot it on a bit of an axis here um between okay over here is someone who wants maybe cash flow Freedom Etc and over here you want inpr value um great team culture and really high Le capable so if you're just looking to use one of these businesses to get yourself Mak your money online and get started then you need to potentially focus on these lower clients first right you I mean by first you kind of you can't really just jump to this so you're going to have to do these first anyway in order to get up to the stage where you can have enough credibility and and evidence that you are able to able to develop one of these uh but when it comes to picking where you want to fall on this on the scale you need to keep in mind that this is not these kind of businesses are not going to uh scale to these sort of valuations and exit sort of valuations that you might be looking for here so it's more of a self-awareness thing of knowing what you want out of this opportunity um and in this case for for for myself there's costs that are involved here as you saw the there was lower profitability there's higher admin and sales sorry that's really ugly but there are pros and cons to these so in this case you're sort of Bing on a longer term play and that look I'm going to sacrifice some profitability and I'm going to have to deal with more admin and longer sales processes Etc but I'm going to be able to create more value through the team that I build and through the culture that I'm building and the Enterprise Value over all of the the organization but in this case your profitability is going to be going way up while while net profits may not be uh be drastically different it's still in terms of input and output you're getting more more juice for the for the amount of squeeze you're putting in if that's a good analogy to use um and in this case uh there's less admin admin so there is a opportunity for you to create one of these lower ticket agencies so we can say that we wanted to Niche down to these car insurance claims um it's actually quite a small Market I believe so we didn't bother niching down at morning side to do something like this we could say okay I just want to do five of these a month or let's let's say three of them a month 15K in Riv and that was $3,000 profit a piece that would probably increase over time because the first time that we built it is the hardest and we had to come up with all these systems but if I was to replicate that over to another person's uh build I've already got all the systems I just need to tweak it a little bit so the profitability actually goes much further up um let me do like an extra big Arrow there if you're going to Niche down so in this case I haven't talked about nich and general agencies for a while on the channel um but I do throughout my community um and a and things like this the difference between a niched agency and a and a general one is that you're going to be able to focus on just one particular solution or or Niche and in that case you're going to be able to roll over the tech that you've built for the PRI clients into the future one so that it means is increase profitability because you're not having to come up with a new solution every time um now very few people get to the stage of doing this properly because we like to jump around and go I mean we're even doing the same thing at morning side because of the leads that come from my channel we like to stay General and do sort of cool things wherever we think we're a good fit for them right but if you're just looking to start off get a cash flow business and be making $15 $20,000 a month then looking at okay I can just focus on these small lower ticket clients and try to get cash flow and the freedom that I want and then maybe later once you've got a little bit more experience you can try to go for the more custom projects and uh and make more money that way but it is a longer term play and if you think AI agency as a sort of development company is to play for you this is what you need to go for but if you're trying to jump to some kind of SASS and you just want the cash flow and sort of the basic team you needed to do it uh this can also be a good option too so hope that's been a breakdown of the difference between the low ticket and high ticket clients it's not bigger is not always better is what I'm trying to point out here and it does depend entirely on your on your goals in the space and one more point that I want to make is that if you were to do like why $5,000 why not a $1,000 project well you'll find when you do the old gritomatic like I did before you'll see that the admin involvement of doing a $1,000 project is about the same as a $5,000 project or even a $10,000 project sometimes so there's this this kind of goldilock Sweet Spot Zone where you're doing the same amount of admin for more money which is why it morning side we have a minimum of $10,000 project so we just ignore anything that sub $10,000 uh just cuz it's not worth the time I don't want to be getting on sales calls my business partner Josh doesn't want to take them if we're going to make $55,000 cuz we know how much time Discovery call sort of closing call write a proposal write the contract send it off build it review it build it review it we get involved something breaks it's like not what I want to be involved in not how I want to run my business which is the point here which is you need to choose the client size based on your goals with the business and I don't want to be taking a ton of of sales goals with these guys but my my team would much rather be focusing on hey looks build one or two really big things occasionally um rather than doing a sort of high frequency sty style model here so to keep that in mind that the admin you will find um there is a certain Threshold at which you don't want to take the project just because you know how much admin is involved um so yeah that's the last thing I wanted to mention but that's all for the video um if you've liked and you like seeing me walking around here in a in a singlet um you can leave a like down below and let me know also for my drawings as well so that's all with the video thanks for watching and I'll see you in the next oneso what is the difference between a $5,000 AI agency project and one that's worth $105,000 in this video I'm going to be breaking down two client projects from my own agency morning side aai and you'll get to see the differences in resources and sort of effort involved in each of these because you're probably thinking that bigger is better right but that's not necessarily the case and it really comes down to what you want to achieve with your agency so in this video I really want to give you a clear look at the UPS sort of the pros and cons for each of these U because it's not all sunshine and rainbows and there are reasons why you wouldn't want a bigger client and you would want a $5,000 one instead so I'm going to try to break things down the factors involved in making these decisions so that you can better aim your agency in the right direction whether you want to do one that's cash flowing and sort of Fairly handsfree or you're trying to build a large AI development company and start to get bigger and bigger projects and you're biding on the long term so starting off with the $5,000 project this was a client who had a business base around helping people pay less on their car insurance claims so if you're in an accident you go to a repair shop they try to see well the insurance company wants to try and put as much of it as possible on you uh but there's a where you can go back and forth with them and say no this should be covered by insurance and that's what the business was based around and they had a a human operated system for doing the sort of back and forth and analyzing if there's anything in the in the invoices that they could sort of dispute and we were able to set up an AI system to do that for them so that was a $5,000 project the $15,000 project was a complete AI SAS platform build that we did from start to finish we did all of the AI backends planning systems built it from scratch all custom coded and we also built the front end as well so we call this one a car insurance claims and this one full AI SS and this was in the healthcare industry it was uh for nurses I can't go into it too much uh but it was in the healthcare industry helping nurses to come up to speed using these AI systems that we could train them faster on um so that's the two different size projects so you got a bit of context and for the I'll put Bing Bing some some screenshots on on screen there was just a single payment for this I believe um and for this it was three different three or four different payments and this is now on a maintenance package with us where we get paid monthly to maintain it and sort of add add not add features but we're just maintaining it for now um and also being there on hand to fix any bug fixes that come along so there's a couple key areas that I want to break down for for these so you understand the associated sort of pros and cons for each right so $5,000 project by Nature uh let me draw up a bit of a table here so if I have a table here we can start to sort of lay out the difference between the two in a number of different areas then we can have prod here so the type of project we can have admin we can have sales this will make sense in a second give give me a minute sales uh then we can have the case study value we can have the profit and then we can have the duration that's a clock um and then we can divide these up so these are the different sort of factors or or costs associated with them we have the project itself we have the admin time we have the sales time we have the case study value we have the profitability or profit of the of the entire build then we have the time that it takes so uh there's also other factors which you're going to but this is this we get us started for now so we have the project here we have the 5K oh 5K and this one down here we have the 105k so just putting it on quickly we had one hour here we had here and then we had 3 hours here and we probably had about 15 here so this is the time involvement on the sales side and on the admin side so just to get this 5K deal it's not $5 it's 5,000 just to get this $5,000 deal closed we had to do a an hour's worth of sales so that might be just two two calls one Discovery call and then one follow-up call just to get started and then that went into about 3 hours of admin so throughout the duration of the project which I can put down here uh which was 3 weeks um and this one was uh s of three and a half months so a lot longer right so you can see off the bat that the smaller project is easier to get on easier to sign um there's less admin involved throughout the duration of the build um and it's done in a in a faster man time right 3 weeks to get the money um and in this case we're spending over 10 hours of messing around with proposals and going back and forth and identifying the scope because it's such a big project there are so many more questions you need to ask about the from the client and do far far more Discovery and digging to really plan out okay this is the scope of the project this is what we're going to do um and then there this kind of awkward stage where like they know what they want but they kind of want to see the designs and see the plan and it's like well you need to pay us for that so we need to do an exploration uh there's quite a lot involved here as you can so for the customer to be willing to get into a $100,000 contract there's a lot of work and sort of relationship building that needs to be done as well then we have a factor here called the case study grade um and because this is a fairly basic AI sort of system that's not too flashy um you're really getting what might be handy case stud is always going to be handy um but this one is not hugely um in terms of impressing other clients like hey we built a $5,000 system for this kind of client it's not at least for what we're doing at my my company it's not hugely impressive um but complete AI SAS build is let's well you can always be better but we'll give it a 9 out of 10 we can show our clients that we built this end to end SAS and they like well well if they can do that then I'm sure they can do everything everything underneath that uh then we have the actual profit for this so on this build it was oh it was 3,000 and on this build it was 31,000 so you can see 5,000 into 3, 105 into 31 you can see the profit margins on these are very different uh this is over 50% and this is like 30% profit margins right so uh for the amount of time you putting in this is when you need to start evaluating okay well do I want to be getting sort of better Returns on my time here cuz this is 3 weeks You' did a quick maths here and you said okay this is going to be 1,000 profit ppw $11,000 in profit per week um 3 and a half months I guess you can say that 10K per month um go down to what two 2.3 maybe 2.3 um k p p week is that right with something like that maybe about 2,000 profit per week I'll get Shan to check the M on that but yeah so keeping these in mind you're going to make a lot more money per project in terms of profitability but this is going to take a lot longer you're going to get better case studies you're going to spend a lot more time going back and forth and this doesn't even factor in the the fact that in order to get this you might have had to have three to five of these in the pipeline that we've had lot of people interested in building these AI SES with us but very few get to the point of completion because it's a 10hour sales process and then they have to make these big commitments of $105,000 so this doesn't even factor in the sort of fail rate of this so we might have to put like times five on this cuz it's five times it's failed before we even get to one but in this case we might have just had five of them and it ends up being 5 hours total so hope that gives you a good idea of the different pros and cons uh obviously bigger clients bigger projects going to take more investment on the sort of relationship building and sales side there's bigger proposals to do there's more refinement of the proposal agreeing on scope much larger timelines just in general this is going to take you like a month and a bit or more just to get them to the point where they're willing to commit um you can use what we like to do which is an exploration Milestone which I think I'm going to cover in another video but that can actually break down the sales process and get these bigger clients on board a lot sooner but you'll have to subscribe or or like or something to catch that next one cuz I want to do a whole video on exploration Milestones I don't want to get sucked into it on this and there's actually one more thing that I want to add on here um which you can call sort of company culture um and the way that these different projects have an effect um culture um I'm going to have to do a bit of a quick job on this one but the effect on company culture if you're trying to build a development team and a a a collection of people who are inspired and feel like they're working towards cool things building $5,000 chat Bots or in this case sort of automation systems is is a way to get money in the door but it's not going to fire up your a players when you're trying to bring in attract and retain high quality Talent there's only so many $5,000 little chatbot builds you can do before they start going hey look I want to either get paid more or I want to go somewhere where I'm feeling more fulfilled because they have the skills to be able to go anywhere and get hired by anyone so they're really looking for what you can add on top of just monetary which is adding some kind of interesting aspect to it like hey look I just built out an entire AI s that could revolutionize the healthcare industry or I've just built these chaps so you have to look at culture here maybe I do red um the culture and the effect of it on the company culture goes down so we saw our team our development team was extremely fired up throughout the the entire build of this CU it was cool we're working with a client that we really liked the our client is awesome and we've got them on retainer now so he's we're continuing to work with them and we're like going to build future features into the platform longer term um but our developers got to work directly with a really cool client who had great values and was excited to work with us as well and the end result was such a great for our team as as us as this this startup this AI startup that started 12 months ago 14 probably about 12 months ago now um we were able to go from these small basic jackpots right up to knocking off a complete SAS build that the client was absolutely like wrapped they were so happy with the outcome and for myself my business partner Josh my CTO Spencer for all of us to be working on this project to completion and see it come together uh was a really really great moment and a high point for us as a team and and seeing that we could do these large projects and we could pull it off together so U the culture and the effect of these larger projects cannot be understated if you want to attract quality talent and retain them you can't just be feeding them sort of small projects constantly so just keep that in mind and this brings me backgr full circle to what I was saying before and I can rub this off now which is which kind of project should you be aiming for and that comes down to what kind of agency you want to build what are your goals with this business model what are your goals with the AI space are you looking to create cash flow and just get off the ground and be able to make money online so you can go live as a digital Nomad and and go to Barley and do all this cool stuff or are you looking to build Enterprise Value build a valuable team and in that case we can kind of plot it on a bit of an axis here um between okay over here is someone who wants maybe cash flow Freedom Etc and over here you want inpr value um great team culture and really high Le capable so if you're just looking to use one of these businesses to get yourself Mak your money online and get started then you need to potentially focus on these lower clients first right you I mean by first you kind of you can't really just jump to this so you're going to have to do these first anyway in order to get up to the stage where you can have enough credibility and and evidence that you are able to able to develop one of these uh but when it comes to picking where you want to fall on this on the scale you need to keep in mind that this is not these kind of businesses are not going to uh scale to these sort of valuations and exit sort of valuations that you might be looking for here so it's more of a self-awareness thing of knowing what you want out of this opportunity um and in this case for for for myself there's costs that are involved here as you saw the there was lower profitability there's higher admin and sales sorry that's really ugly but there are pros and cons to these so in this case you're sort of Bing on a longer term play and that look I'm going to sacrifice some profitability and I'm going to have to deal with more admin and longer sales processes Etc but I'm going to be able to create more value through the team that I build and through the culture that I'm building and the Enterprise Value over all of the the organization but in this case your profitability is going to be going way up while while net profits may not be uh be drastically different it's still in terms of input and output you're getting more more juice for the for the amount of squeeze you're putting in if that's a good analogy to use um and in this case uh there's less admin admin so there is a opportunity for you to create one of these lower ticket agencies so we can say that we wanted to Niche down to these car insurance claims um it's actually quite a small Market I believe so we didn't bother niching down at morning side to do something like this we could say okay I just want to do five of these a month or let's let's say three of them a month 15K in Riv and that was $3,000 profit a piece that would probably increase over time because the first time that we built it is the hardest and we had to come up with all these systems but if I was to replicate that over to another person's uh build I've already got all the systems I just need to tweak it a little bit so the profitability actually goes much further up um let me do like an extra big Arrow there if you're going to Niche down so in this case I haven't talked about nich and general agencies for a while on the channel um but I do throughout my community um and a and things like this the difference between a niched agency and a and a general one is that you're going to be able to focus on just one particular solution or or Niche and in that case you're going to be able to roll over the tech that you've built for the PRI clients into the future one so that it means is increase profitability because you're not having to come up with a new solution every time um now very few people get to the stage of doing this properly because we like to jump around and go I mean we're even doing the same thing at morning side because of the leads that come from my channel we like to stay General and do sort of cool things wherever we think we're a good fit for them right but if you're just looking to start off get a cash flow business and be making $15 $20,000 a month then looking at okay I can just focus on these small lower ticket clients and try to get cash flow and the freedom that I want and then maybe later once you've got a little bit more experience you can try to go for the more custom projects and uh and make more money that way but it is a longer term play and if you think AI agency as a sort of development company is to play for you this is what you need to go for but if you're trying to jump to some kind of SASS and you just want the cash flow and sort of the basic team you needed to do it uh this can also be a good option too so hope that's been a breakdown of the difference between the low ticket and high ticket clients it's not bigger is not always better is what I'm trying to point out here and it does depend entirely on your on your goals in the space and one more point that I want to make is that if you were to do like why $5,000 why not a $1,000 project well you'll find when you do the old gritomatic like I did before you'll see that the admin involvement of doing a $1,000 project is about the same as a $5,000 project or even a $10,000 project sometimes so there's this this kind of goldilock Sweet Spot Zone where you're doing the same amount of admin for more money which is why it morning side we have a minimum of $10,000 project so we just ignore anything that sub $10,000 uh just cuz it's not worth the time I don't want to be getting on sales calls my business partner Josh doesn't want to take them if we're going to make $55,000 cuz we know how much time Discovery call sort of closing call write a proposal write the contract send it off build it review it build it review it we get involved something breaks it's like not what I want to be involved in not how I want to run my business which is the point here which is you need to choose the client size based on your goals with the business and I don't want to be taking a ton of of sales goals with these guys but my my team would much rather be focusing on hey looks build one or two really big things occasionally um rather than doing a sort of high frequency sty style model here so to keep that in mind that the admin you will find um there is a certain Threshold at which you don't want to take the project just because you know how much admin is involved um so yeah that's the last thing I wanted to mention but that's all for the video um if you've liked and you like seeing me walking around here in a in a singlet um you can leave a like down below and let me know also for my drawings as well so that's all with the video thanks for watching and I'll see you in the next one