Lower limits... Do you have them? Should you?

[Undead Hunter]

We've recently re-launched our business - we now have a larger staff of part-timers, and a new direction. While we're targetting larger companies, and jobs in the $5k -$20+ range that use a range of writers and designers... we could still knock off some lower limit sites, perhaps using a pre-purchased template...

I'm wondering - do you have a lower limit? Do you keep them distinct and separate from your normal business... because we do have a second domain we could use to service small clients, create a "second business"... I just wonder how it would/could work...

I know we wouldn't go after smaller clients actively - makes more sense to spend cold calling time going after big fish - but there are a number of ways we could get passive clients...?

[Shane]

One of the ways to handle this is as a training ground. Give it to a seperate manager with specific targets which includes how many staff migrate to the 'larger' side of the business. If it is profitable, keep it, it will provide profit and good people that have been well screened. If it doesn't, shut it down or change the manager.

What I don't think you want to do is have the same management spend time on both large and small. The small side will always suffer.

Good Luck,
Shane

[jimbeetle]

In many businesses the smaller ticket items are the day in, day out bread and butter business that pay many of the ongoing expenses; profit comes from the large sales.

Some clients might start small and grow, the ones that have to get their feet wet before committing to larger budgets. It's much easier selling existing clients up than to try to win their accounts from other firms.

I'm not a big fan of second brands, seems to me in most instances the quality just ain't the same. If you decide to go after smaller clients consider using the same brand; you might be able to charge a bit of a premium over the usual low-end price because the customer is getting a quality house.

Just my 2 cents,

Jim