The Secret Cost of Churn (And Why It's Costing You More Than You Think)

Aaron Brewer

11d • LIVE Calendar 🗓️

Hey guys

Wanna talk about something a little different today...

Most of you know I'm the "sales guy", but what often goes missed is the hole in the bottom of the bucket.

Churn.

So let's talk about something most agency owners don't want to admit.

You can’t keep your clients…

And your churn rate is probably costing you way more money than you realize.

Not just the revenue you lose when a client leaves.

But the compounding effect of not knowing it's happening.

Most agencies treat churn like a random event. A client leaves, you move on, you find a new one. That's the game, right?

Nope.

Churn is predictable. And if it's predictable, it's preventable.

But first, let's define what we're actually talking about.

Churn is simply the percentage of your client base that leaves you every single month.

So if you start the month with 100 clients and end with 90, your churn rate is 10%.

Sounds simple enough.

Let's say you're running a lead gen agency doing $50K/month in revenue with a 10% monthly churn rate.

That means you're losing $5K in revenue every single month just to churn.

Over a year? That's $60K gone.

But it gets worse.

Because now you need to replace those clients. Which means you need to spend money on sales, marketing, and onboarding to get back to where you started.

You're basically running on a treadmill.

Spending money to replace clients you already had.

Instead of actually growing.

And the worst part?

Most agencies don't even know their churn rate.

They have no idea how many clients they're losing every month.

They just know revenue is inconsistent.

They know growth feels harder than it should be.

They know something's off.

But they can't see what it is.

That's the real cost of churn.

It's not just the revenue you lose.

It's the opportunity cost.

It's the energy you waste replacing clients instead of growing.

It's the stress of not knowing if your business is actually stable.

Here's what I recommend.

Take 10 minutes this week and calculate your actual churn rate.

Pull your client list from the start of last month.

Count how many you have now.

Do the math.

See what you're actually dealing with.

Because once you know your churn rate, you can actually do something about it.

And that's when things change.

P.S. If you're just starting out and have fewer than 20 clients, don't stress too much about this yet. Churn becomes a real constraint once you're managing 20+ clients consistently. Until then, focus on getting to that point. Once you hit it, this becomes critical.

P.P.S. If you want to learn how to REDUCE your churn, practically and quickly from one of the industry's best at that very thing, attend

@Jasmine Lotomau

's Agency World call on Tuesday at 2PM EST.

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