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Calculate Client Profitability with Time Tracker

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As your business grows, you must prioritize clients that help you make the most of your time. The more clients you have, the choosier you can be about who you take on and what resources you allocate to each client. Time tracking can reveal your most (and least) profitable clients.

A clear understanding of which clients are your most and least profitable will help you make informed business decisions going forward. You might be surprised at who is your most lucrative client.

Profitability vs. Big Spenders

It’s easy to think that your most profitable clients are your largest spenders. However, profitability goes beyond big contracts and looks at how much time is spent for every dollar the client brings in.

The clients with the biggest accounts might actually require the most work. Larger clients are sometimes pickier and more demanding, which reduces their profitability. To make up for the time spent on pickier clients, many businesses charge a higher price point that covers multiple changes or ongoing support.

However, as you consider smaller client accounts, you may find you can do jobs quickly and without hassle. Smaller clients may even pay lower rates and still be more profitable because they don’t keep coming back for support or project revisions.

Why is Profitability So Important to Track?

Without tracking your projects, you might be wasting time pursuing clients who make you busy and not profitable. Time is money, so you need to track how much money is going into every hour.

You can be busy and work hard, but that doesn’t mean the pay is going to be great.

While a time tracker will tell you who is working what hours, it won’t automatically tell you which employees are the most efficient or which clients are giving you the best gains. There are several factors that go into determining which clients are the most profitable for your business.

However, you can easily use a time tracking app to figure out how much clients cost you versus how much they are spending with you. Time tracking online provides you with data needed to assess where you can increase your revenue and productivity by choosing the clients that are the best fit for your company.

It can be tempting to take on big accounts that promise large paychecks, but it might be more lucrative to bring in more mid-level or low-level clients instead.

When you can identify which clients help you make money most efficiently, you can establish a niche within your niche and target your most profitable clients. And, when you realize which clients are least profitable, it’s easy to let them go to make room for better-paying clients.

How to Identify Your Most and Least Profitable Clients

There are multiple factors that will impact who is actually your most profitable client. Let’s look at how you can discover which clients are most cost-effective for your business and which clients are essentially money pits.

Job Type

The speed of your team for different job types is likely to vary. It’s important to think about how fast you are able to accomplish the kind of work various clients are asking for. Your business will have varying degrees of proficiency with different project types and niches based on your team.

Emotional Labor

It’s exhausting to work with a client that wants to nitpick everything unless they are paying you extra in a way that makes up for it. But money isn’t always enough to make up for poor behavior.

Clients who are picky, rude, condescending, or unhappy by nature can really hurt team morale. You might find yourself or your employees distracted by the client’s behavior even after the project is complete. Clients that require emotional labor can be more time-intensive than clients who are enjoyable to work with.


Different clients may have different levels of demand. If your business includes any kind of service work, then you may find some clients have stricter preferences that end up adding time to the project. For example, larger clients sometimes expect you to follow much more rigorous branding guidelines that take time to learn and implement.

Talent Required

Different projects might require a different makeup of your team. While some clients might only need one or two people managing the account, others may need a larger group or require employees with specific skills. It’s important to know how much manpower each client requires. Not all employees are paid the same, so clients cost more if they require a lot of high-skill employees or time from upper management.

Hours Spent

It’s crucial to know how many hours are spent on each project. Without accurate time tracking, you can only guess how much time you are spending on each project.

To understand how much clients cost, you need to first know which employees are spending time on the account and how much time is accumulated for each project. Any customer support, revisions, strategy sessions, consultation time, and meetings should be included in this configuration. Not all employees are costing you the same amount to keep on payroll, so don’t consider their time equal when configuring the cost of the client. Finally, consider the emotional toll of the client and whether they bring enjoyable projects or stressful ones for your team.

Find the Right Time Tracker for Pinpointing Profitable Clients

You need a solid time tracking app on your side for accurate insights. If you are looking for a great platform to help you monitor employee productivity and calculate client profitability, we can help. Time Tracker by eBillity is a powerful and customizable tool to help you gain key insights for your business.

With Time Tracker, you will have access on your smartphone and real-time GPS tracking with geofencing. Our reports can help you see your most productive employees and consider which clients are really offering the best business.

Are you ready to find out which clients are most lucrative for your company? Learn more about project time tracking, or claim your FREE 14-day trial now!

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