My business partner and I run a social media content agency (2 years old, 17 active clients). One of our founding clients has approached us about going exclusive – they want us to dissolve our agency and work only for them as their dedicated in-house marketing team.

Current Situation: – 17 clients generating solid revenue ($48K per month)

• 9-person team (2 partners + 7 staff)

• Client proposing exclusive deal has been with us since Year 1 (currently paying $9500/mo)

• They’ve grown significantly with us (but only getting ~15-20% of our bandwidth currently)

• They’re our largest single client but represent <20% of our revenue

The Proposal: – 12-month exclusive contract – We’d reduce from 9 to 4 people (me, business partner, 2 key team members) – Compensation: Base monthly retainer + 10% commission on their course/digital product sales – Scope: Personal brand, company brand, course business, potential support for spouse’s brand – We’d be walking away from 80%+ of our current revenue to take this

The Numbers Being Discussed: – $379K for the 4 person team ($144k yearly salary for me and my partner each) – Commission could add $10-50K+ if we scale their course business – This would roughly match our current personal income but with commission upside (currently making $7k a month + building cash reserve for agency) – We’d go from managing 17 clients to 100% focus on one brand ecosystem

What We’re Torn On:

Pros: – Simplified operations (1 client vs 17) – Higher personal income potential with commission structure – Deep partnership with someone we’ve proven success with – 12-month contract = stability – Elimination of constant sales/client management – Can build elite expertise in one vertical

Cons: – 100% concentration risk – Walking away from $460K+ annual revenue from other clients – Pausing agency growth trajectory (we could hit $1M+ in 3-5 years) – If it fails, we rebuild from zero – Letting go of 5 team members – No diversification

Questions for You:

1. Has anyone made a similar pivot? How did it turn out?

2. Is $30-32K/month + 10% commission fair for dissolving a multi-client agency and going exclusive? Or are we undervaluing ourselves?

3. Red flags we should watch for? Client has been great for 2 years, but exclusive relationships can change dynamics.

4. Contract terms we absolutely need? We’re thinking 12-month minimum, quarterly advance payments, 90-day notice. What are we missing?

5. How do you value opportunity cost? Is the simplified life worth the concentration risk?

6. Anyone regret going exclusive? What would you do differently?

Additional Context: – Client is ready to scale (proven product-market fit with their course) – They have budget and seem committed – We’d still own our systems/processes – Could theoretically rebuild agency if this ends

The Real Question: Are we crazy for even considering this? Or is this the kind of focused partnership that could be more valuable than spreading ourselves thin across 17 clients?

Would love to hear from anyone who’s faced a similar decision – especially if you’ve been on either side of an exclusive arrangement.

Edit: To clarify – we’re not desperate or struggling. Agency is healthy and growing. This is purely a strategic decision about depth vs. breadth.