The 4% Rule that doubled revenue
Somewhere in your business right now, someone is spending an hour on a customer who pays you 40 quid a month.
Meanwhile your highest paying clients can’t even get you on the phone.
You haven’t looked at the numbers yet. I did.
At Peer 1 we had 12,500 customers. Everyone looked busy.
The engineers were busy. The sales team were busy. Customer service were busy. The system said so.
But the system had no transparency. It couldn’t tell us who they were busy for and what they were busy with.
Turns out the team was spending their time on the wrong customers.
Our highest paying clients were the most underserved people in the building.
60% of our revenue came from 500 customers. The top 4%.
And the percentage of our team actually looking after them?
I won’t even tell you that number here because you won’t believe me until you see the full picture.
Meanwhile the customers who’d never grow and who cost more to serve than they paid were getting everything.
The time. Energy. Resources.
I didn’t fire anyone. I made one change. One reallocation.
$94m to $200m.
Same customers. Same product.
Here’s the 4% rule that doubled our revenue.
Your best customers won’t complain before they leave. They’ll just leave.
If you can’t name four credible alternatives your buyer is weighing right now, your customers are deciding your position for you. One order at a time. I built a tool that fixes that in ten minutes. It’s in the video.
In Partnership with CEOfriend
Cash flow kills more good businesses than bad strategy does.
I’ve watched founders with strong revenue and a full pipeline walk into a cash crunch three weeks out.
Not because the business was failing. Because nobody was looking three months ahead.
Payment terms, payroll and tax timing open a gap that only shows up when it’s too late. CEOfriend is an AI CFO for founders.
Drop in your P&L, it runs next quarter against your actual commitments and tells you which weeks you’re going to go tight.
Takes five minutes. First month free with code STWTRIAL. Get your first month free here
- Book a call. If your appraisal system is hiding a bigger management problem, I can help you find it. No pitch. Just a clear view of what needs to change.
- Grab the book. F**k Plan B is about clear standards, strong teams and building a business that does not route every decision through you.
- Watch the £30m scaling video. See what lessons from Rackspace and Peer 1 look like when you apply them to a growing company.
- Subscribe to the newsletter. Get one practical idea each week for building a company that needs less of you, not more.
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