In Episode 30 of Two Pixels Off, Mike Janda and Brad Hussey tackle an often-overlooked yet crucial topic for creative entrepreneurs: the concept of Opportunity Lifetime Value (OLV). For many freelancers and agency owners, evaluating client relationships solely through the lens of immediate project revenue can be tempting. However, Mike and Brad illustrate why a short-term mindset may cost businesses the opportunity for significant long-term gains. This episode explores how understanding and prioritizing OLV can be a game-changer in establishing sustainable growth and resilience in a creative business.
What is Opportunity Lifetime Value?
The term Opportunity Lifetime Value is an expansion of the more commonly known Customer Lifetime Value (CLV). While CLV measures the potential revenue a client might bring over time, OLV takes a broader perspective, focusing on the potential growth, future projects, and referrals a small initial engagement might lead to. Janda and Hussey emphasize that these "small" projects may open doors to bigger opportunities if handled strategically, encouraging viewers to consider each project’s long-term potential rather than just its upfront dollar value.
Building Long-Term Client Relationships Like a Game of Chess
Mike Janda compares client relationship-building to a game of chess: every interaction should be intentional, considering not only the current "move" but also several "moves" ahead. By nurturing smaller engagements thoughtfully, creative entrepreneurs can develop trust, build rapport, and establish a reputation that may lead to substantial future projects. For example, a small logo design project might initially seem minor, but with proper follow-through, that client might later return for a comprehensive branding package, website design, or ongoing digital marketing support.
Real-Life Examples of Client Growth Through Small Projects
Both hosts share examples from their own experiences, illustrating how small projects led to significant long-term client relationships. They explain that, in many cases, small businesses or startups have limited budgets initially. However, as these clients grow, so does the potential for larger projects and higher fees. Even modest beginnings can result in loyalty and continued collaboration if the client feels valued and understood.
The Role of Data-Driven Decisions in Evaluating Client Potential
Data plays an essential role in identifying clients with high Opportunity Lifetime Value. Janda and Hussey discuss the importance of tracking metrics such as repeat engagements, referral frequency, and project scalability to make informed decisions about which clients to prioritize. By analyzing this data, agencies can more accurately estimate each client’s long-term value and decide where to focus their efforts for maximum returns.
Rethinking Minimum Project Sizes
One of the common practices in the creative industry is setting minimum project sizes to filter out smaller, less profitable projects. While this strategy can save time, Mike and Brad suggest reconsidering it in light of OLV. For instance, while a high minimum may deter clients with limited initial budgets, it may also close the door on potential future partners who could become significant clients over time. The hosts recommend a balanced approach that considers both current capacity and long-term value.
The Power of Small Engagements
In the latter half of the episode, Janda and Hussey emphasize the power of small engagements. These projects offer creative entrepreneurs a chance to showcase their expertise, professionalism, and dedication. Small engagements, in particular, can serve as low-risk opportunities for clients to "test the waters" with a new agency or freelancer, potentially leading to trust and expanded project scopes in the future.
Avoiding Sales Call Avoidance
Many creative entrepreneurs hesitate to engage in sales calls with smaller clients, fearing they may be time-consuming with limited payoffs. However, Mike and Brad argue that neglecting these calls could mean missing out on valuable insights into potential OLV clients. Small clients who express a strong interest in the business’s services might be more motivated and loyal, making them worth the investment.
Why Small Projects are Worth the Consideration
In creative entrepreneurship, overlooking small projects and setting strict minimum project sizes can inadvertently shut the door on significant long-term opportunities. This episode of Two Pixels Off highlights that evaluating clients and projects through the lens of Opportunity Lifetime Value can bring transformative results. By considering the broader relationship potential, nurturing client relationships strategically, and making data-driven decisions, creative professionals can create a solid foundation for long-term growth and sustainable success.
About Two Pixels Off
Hosted by Brad Hussey and Michael Janda, Two Pixels Off is a podcast dedicated to helping creative entrepreneurs run successful businesses. The show covers everything from marketing and pricing to project execution and profitability, all aimed at empowering creative professionals.
If you’re interested in actionable advice for headline writing and other content strategies, tune into Two Pixels Off on your favorite podcast platform, or visit TwoPixelsOff.com for more episodes.