Revenue concentration
Revenue concentration measures what share of total revenue comes from the single largest client, a key risk indicator for founder-led agencies.
A common warning threshold is any single client above 20-30% of total revenue: losing that account in a single quarter would materially damage the business, and the client typically knows it, which weakens the agency's negotiating position on price and scope.
High concentration often correlates with referral dependency and founder-sourced pipeline, since a small number of deep relationships tend to produce both the revenue and the referrals.
Why it mattersBuyers and investors treat revenue concentration as a primary risk factor in any valuation or acquisition conversation about an agency.
Related terms and practice.
Back to the full list.
Start with the founder-dependency audit.
Ten working days, fixed fee, a written read your team owns. The fee credits against the build that follows.