Farming versus Hunting

I forgot a good conversation that I had with Brent from Success yesterday. He was trying to prepare a compensation program that rewarded hunting more than farming. I am really torn about this.

1. Clearly, hunting is a good thing. Can you have too much of a good thing? This to the extent that you ignore existing customers?

2. Revenue. Profit revenue to be more exact. I personally do not care where it comes from (Within reason). the more the better. If we can add one new managed service to our existing client base, isn't that as good or better than farming? Their is a cost of adding new clients. Training them on how you do business. Are they a good customer? Do they pay their bills/argue their bills? Existing customers you know what you are getting.

3. Adding too many new customers could be a bad thing? Adding new customers usually means lots of tech time. Resolving existing issues, finding surprises and other problems. So for each additional customer, you have significant tech time invested. If you sell managed service to existing customers, then you should (If the managed service is setup right) you do not have a 1 to 1 ratio in tech time investment. So then you have to hire more techs, more operations people, and more. So do you gain anything?

4. Adding new customers does grow the business. Most of the time, growing the business is a good thing? I think that the growth has to have a purpose. Not just to grow. Increasing revenues I think should be the ultimate goal. Growing people or customers does not necessarily mean growing revenues. For sure at times, it can be the opposite.

Anyway, I am still up in arms as to the correct action. Ultimately I believe watching profit revenues is the right decision. So Brent, I am sticking with my origional opinion.