We Fired Clients and Became More Profitable

Welcome back to the 118th edition of Nord Media

Today I want to talk about a strategy that feels completely counterintuitive:

Intentionally shrinking your agency to grow profit.

It goes against everything we’re taught.

Growth is supposed to mean more clients, more team members, more revenue.

But for some of the most profitable agencies we’ve seen, the opposite is true.

They’re pulling back.

Reducing client volume.

Focusing on fewer, higher-leverage services.

Streamlining operations instead of expanding them.

And in doing so, they’re earning more, working less, and building businesses that actually serve them.

In this email, we’ll break down:

• Why strategic downsizing is gaining traction

• How smaller footprints can lead to stronger margins

• A decision framework to evaluate if this shift makes sense

• An action plan to identify what to eliminate and what to double down on

Let’s dive in.

Why The “Bigger is Better” Model is Falling Apart

For years, agencies chased growth like it was the only goal.

But more revenue didn’t always mean more profit. It just meant more headaches.

Here’s why strategic downsizing is gaining momentum:

• Hiring isn’t cheap anymore

Talent costs have skyrocketed, and bloated teams are crushing margins.

• Too many services = scattered focus

Offering everything to everyone waters down your edge and overwhelms your ops.

• Client volume creates complexity

Managing 20 accounts at once might look impressive, but it often leaves little time for deep work or strong results.

• Efficiency is the new advantage

Agencies that stay lean and focused are running circles around teams twice their size.

The goal is to get sharper, tighter, and more profitable on YOUR terms.

The Hidden Margin Play Most Agencies Overlook

Shrinking your footprint doesn’t require giving up on growth.

It helps cut the dead weight so your best work can shine, and your margins can breathe.

Here’s how smaller teams and tighter offerings actually unlock more profit:

• Fewer clients = deeper impact

You’re not spread thin across 20 accounts. You’re focused, present, and driving results that justify premium pricing.

• Streamlined services = lower costs

Cutting low-margin, high-effort deliverables frees up time, energy, and payroll.

• Smaller team = less overhead

Less complexity, fewer management layers, and more agility when priorities shift.

• Focused strategy = easier scale

When you’re great at one thing, word travels faster and operations stay lean even as revenue grows.

Should you consider downsizing? Ask yourself:

• Are you constantly busy but rarely more profitable?

• Do certain clients or services consistently drain your team’s energy?

• Could you raise prices if you delivered more value to fewer clients?

• Is your team bloated with roles that don’t tie directly to client results or revenue?

If the answer is yes to two or more, it might be time to rethink what growth actually means for your agency.

Cut the Fat, Keep the Profit

If you’re ready to explore strategic contraction, here’s a simple way to audit your agency:

1. Start with a client audit

Which accounts are the most profitable per hour of work?

Which ones create the most stress or require the most hand-holding?

Don’t be afraid to let go of “good” clients if they don’t support your long-term model.

2. Simplify your service menu

Rank every service by effort vs. profit.

Eliminate anything that’s low-margin, hard to deliver, or too custom to scale.

Keep the 1–2 offers that consistently deliver results and feel effortless to execute.

3. Assess your internal roles

Who’s directly tied to revenue and delivery?

Where is redundancy or low leverage creeping in?

Realign your team around core functions and automate or outsource the rest.

4. Review your positioning

Are you trying to be everything to everyone?

Tighten your niche and reposition around your highest-leverage wins.

Clear focus brings better clients and makes ops ten times simpler.

This will protect your time, your energy, and your margins so you can scale with intention.

Final Thoughts

If your agency feels chaotic, bloated, or stuck, don’t assume the answer is more.

Instead, zoom in.

Figure out what’s truly driving results, and ruthlessly eliminate the rest.

Build around your highest-leverage clients.

Refine the 1–2 offers that deliver real profit.

Run a tighter, calmer, more intentional business.

The goal isn’t to do less forever.

It’s to reset your foundation so future growth actually pays you.

Want to learn more? Connect with me on social 👇
LinkedIn • Instagram • Twitter 

Thank you for reading! I appreciate you.

Sincerely,
Kody

Disclaimer: Special thanks to Signal Data and Marpipe for sponsoring today’s newsletter.