[REPLAY] Why & How to Prune Your Client Roster for Agency Growth | EP 19
Release Date: 11/18/2025
The Six Levers of Profitable Client Engagements | EP20
The AgencyHabits Podcast
Running an agency is an exercise in risk management. In this episode, hosts Peter Kang and Sei-Wook Kim break down the most significant threats that can jeopardize an agency's survival. They move beyond daily annoyances to focus on the high-impact risks that can truly put a business in danger. Using a simple risk matrix framework, Peter and Sei-Wook categorize and explore nine critical vulnerabilities, from founder burnout and partner conflict to client concentration and strategic misalignment. They provide actionable advice on how to identify, prepare for, and mitigate each risk, sharing...
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Learning From Other Agency Owners | EP19
The AgencyHabits Podcast
Great agencies are not built in isolation. In this episode, Peter Kang and Sei-Wook Kim explore the transformative power of community and peer learning for agency founders. The hosts share their personal journey from working in a silo to actively seeking mentorship and joining dedicated communities, revealing how these connections helped them avoid blind spots, gain crucial perspective, and accelerate their growth. Peter and Sei-Wook break down specific communities that have been instrumental to their journey, including Bureau of Digital, Society of Digital Agencies (SoDA), and Collective 54....
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Why Agencies Rely on Referrals But Few Treat It as a System | EP18
The AgencyHabits Podcast
Most agencies say they rely on referrals, but few treat them as a system. In this episode, Peter Kang and Sei-Wook Kim dismantle the "hope-based" approach to referrals and lay out a strategic framework for building a consistent pipeline. Drawing from the book The Referral Code, they redefine referrals as a transfer of goodwill and share actionable tactics for intentional referral generation. Peter and Sei-Wook cover how to identify the right people to ask, the critical importance of timing your ask within a "state of appreciation," and how to craft effective, open-ended questions. They also...
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How Agencies Should Think About and Manage Risk | EP 17
The AgencyHabits Podcast
In this episode, hosts Peter Kang and Sei-Wook Kim break down the six fundamental levers that drive profitability across all client engagements, whether you run fixed-fee projects, retainers, or long-term service programs. Drawing from real challenges within their own portfolio at Barrel Holdings, Peter and Sei-Wook provide a practical framework for diagnosing and fixing margin compression. They start by defining gross margin and then explore each lever in detail: from pricing and scoping to staffing, engagement design, scope management, reusable IP, and the role of automation and AI. The...
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Scaling Your Agency Beyond $2M | EP 16
The AgencyHabits Podcast
In this episode, Peter Kang and Sei-Wook Kim dissect why agencies hit this wall and what you can do to break through. They explain how founder-centric systems that work at a smaller scale become the primary constraint to growth, leading to breakdowns in client delivery, team management, and financial visibility. The hosts share actionable solutions, from improving onboarding and implementing debrief processes to strategically hiring for your weaknesses and deepening financial rigor. They also introduce the Agency Systems Playbook, a framework of five core systems that drive a scalable agency....
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How Agencies Can Be Better at Marketing Themselves | EP 15
The AgencyHabits Podcast
In this episode, hosts Peter Kang and Sei-Wook Kim tackle a common agency pitfall: treating marketing as a short-term, reactive effort only when leads dry up. They argue for a fundamental mindset shift, framing marketing as a long-term investment in reputation and awareness, similar to the compounding benefits of consistent exercise. Peter and Sei-Wook first outline the "basics" of agency marketing: from social posts and case studies to newsletters and events, and then dive deep into six specific, unconventional examples. They share their own experiences with a 24-hour website challenge and...
info_outline![[REPLAY] Why & How to Prune Your Client Roster for Agency Growth | EP 19 show art](https://assets.libsyn.com/content/195337385?height=50&width=50)
[REPLAY] Why & How to Prune Your Client Roster for Agency Growth | EP 19
The AgencyHabits Podcast
Holding on to the wrong clients can stunt your agency's growth, drain your team's morale, and cripple your profitability. This statement holds value for agency owners who are overwhelmed by client demands, feel trapped by early, problematic clients, or are struggling to focus their service offerings for maximum impact. In this episode, Peter Kang and Sei-Wook Kim tackle the difficult but essential practice of proactively reviewing and pruning your client list. Drawing from Barrel's own journey of specialization, they provide a clear-eyed framework for evaluating which clients are worth...
info_outline![[REPLAY] How Much Cash Should Your Agency Keep on Hand? | EP 18 show art](https://assets.libsyn.com/content/195337260?height=50&width=50)
[REPLAY] How Much Cash Should Your Agency Keep on Hand? | EP 18
The AgencyHabits Podcast
Profit on paper doesn't pay the bills. Learn the best practices for designing payment terms and invoicing cadences to create a smooth, predictable cash flow. In this episode, Peter Kang and Sei-Wook Kim tackle one of the most critical yet misunderstood aspects of running an agency: cash flow management. They break down the dangerous gap between your P&L's accrual-based profitability and the real money in your bank account, explaining why even "profitable" agencies can face insolvency. Peter and Sei-Wook share hard-earned lessons from their own journey, including how much cash reserve is...
info_outline![[REPLAY] How Specialization Impacts Your Agency’s Growth, Margins, and Valuation | EP 16 show art](https://assets.libsyn.com/content/194872080?height=50&width=50)
[REPLAY] How Specialization Impacts Your Agency’s Growth, Margins, and Valuation | EP 16
The AgencyHabits Podcast
Is your agency a "jack-of-all-trades, master of none"? In this episode, hosts Peter Kang and Sei-Wook Kim dive deep into the transformative power of agency specialization. They break down the critical difference between internal specialization and external positioning, and reveal why narrowing your focus is the ultimate growth accelerator for agencies under $10M in revenue. Peter and Sei-Wook share Barrel Holdings' own journey from a generalist agency serving investment banks and nail salons to a specialized leader in the Shopify CPG space. They provide a clear-eyed view of the trade-offs...
info_outline![[REPLAY] Are You Calculating Your Agency’s Profits Correctly? | EP 15 show art](https://assets.libsyn.com/content/194541900?height=50&width=50)
[REPLAY] Are You Calculating Your Agency’s Profits Correctly? | EP 15
The AgencyHabits Podcast
Agency profitability isn’t always what it seems. In this episode, Peter Kang and Sei-Wook Kim break down how to really evaluate your agency’s profit. The hosts also talks about why two agencies reporting the same margins can mean totally different things. They unpack the difference between EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and SDE (Seller’s Discretionary Earnings), showing how owner salaries, distributions, and “normalization” adjustments can completely change the story. Whether you’re thinking about selling your agency or just want a clearer...
info_outlineHolding on to the wrong clients can stunt your agency's growth, drain your team's morale, and cripple your profitability. This statement holds value for agency owners who are overwhelmed by client demands, feel trapped by early, problematic clients, or are struggling to focus their service offerings for maximum impact.
In this episode, Peter Kang and Sei-Wook Kim tackle the difficult but essential practice of proactively reviewing and pruning your client list. Drawing from Barrel's own journey of specialization, they provide a clear-eyed framework for evaluating which clients are worth keeping. Learn how to assess strategic fit, profitability, relationship quality, and operational load to make data-driven decisions.
For any agency owner ready to focus on their ideal customer profile, this episode is your guide to building a healthier, more durable, and more profitable business.
Key Moments
1. The "pruning" analogy: Why cutting clients is essential for long-term agency health.
2. How to assess strategic fit using your Ideal Client Profile (ICP).
3. The profitability paradox: Why high-revenue clients can sometimes be hurting your business.
4. Evaluating relationship quality and client-side turnover as a risk factor.
5. The critical red flags in client payment behavior and how to protect your agency.
6. How high-maintenance clients create operational load that leads to team burnout.
7. When to make the hard call: The leader's role in protecting the team and the business.
Real Talk Takeaways
1. Your client roster should reflect the agency you are becoming, not the agency you were.
2. A client that doesn't fit your strategic direction is a distraction from your goals.
3. Profitability is not just about revenue; it's about the cost of delivery and the opportunity cost of your team's time.
4. Consistent late payments are a sign of deeper issues; agencies are not banks.
5. The operational load of a "difficult" client can lead to burnout and turnover, which is more costly than the revenue they bring.
6. Pruning a client is a leadership decision that builds immense trust with your team.
7. It's better to bow out of a bad-fit engagement early than to endure a catastrophic failure later.
Timestamps
00:00 – Introduction: The Importance of Pruning Your Client Roster
01:20 – The Pruning Analogy for Agency Growth
02:15 – Factor 1: Assessing Strategic Fit & Your Ideal Client Profile (ICP)
04:23 – Factor 2: Analyzing Gross Margin & Profitability
07:17 – Factor 3: Evaluating Account Expansion Potential
09:29 – Factor 4: The Impact of Relationship Quality & Access
13:22 – Factor 5: Payment Behavior as a Critical Red Flag
16:32 – How to Handle Clients with Repeated Payment Issues
19:12 – Factor 6: Managing Operational Load & "Difficult" Clients
22:45 – The Leader's Role in Making the Final Call to Protect the Team
23:25 – Factor 7: Case Study Value vs. Overall Client Health
26:39 – Bonus Factor: Assessing Client Concentration & Reputational Risk
30:24 – Conclusion: Making the Tough Decisions for a Healthier Business
Notable Quotes
"A client that doesn't fit your strategic direction is a distraction from your goals. You have to kinda make some cuts in order for agencies to thrive in the long run." — Peter Kang on the necessity of strategic pruning
"Just because a client is paying you now and supporting your business doesn't mean they're the right fit for the next phase of your growth." — Sei-Wook Kim on evolving your client roster
"If every single opportunity where they have to pay comes with tension or friction, that might be a sign that it may not be the right fit." — Sei-Wook Kim on interpreting payment behavior as a warning sign
"The operational load of a client can cause turnover. You can lose valuable team members. It's the job of the agency leader to make this decision and build trust with the team." — Peter Kang on the leader's responsibility to protect the team from difficult clients
Links & Resources
Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/
Sei-Wook on LinkedIn: https://www.linkedin.com/in/seiwookkim/
AgencyHabits Website: https://www.agencyhabits.com/
AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/
Barrel Holdings Website: https://www.barrel-holdings.com/
Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/