Using the Money-Fun Matrix to Find Your Best Clients

Your best clients share common traits. Do you know what they are, so you can find more?

The week between Christmas and New Year’s is always one of my favorite times of the year. Clients are often on vacation, email is fairly quiet, and I get a chance to dig in, clean up files, and reflect on the year’s achievements while planning the year ahead.

Many years ago, while analyzing my company’s revenues and the projects I had completed during the year, I created a simple four-quadrant analysis tool that lays out very clearly for me whether to continue working with a client, and where I should focus future business efforts.

I’ve shared this tool with solo entrepreneurs in my seminars and workshops, and it’s always a treat to see their smiles and the shift in their expressions when they realize what a positive impact this analysis can have on their own companies.

Money x Fun

While there are many filters you can use to analyze clients, this tool is based on just two factors: Money and Fun.

The Money-Fun Matrix asks the question: Was it worthwhile to work with this client, both from a professional and financial viewpoint?

Here’s how the tool works: The graph has four quadrants, based on two axes. The horizontal axis is money, moving from low to high, left to right. The vertical axis is fun, from low to high.

Think back on the clients and projects you worked on over the past year (or whatever time frame you choose), and determine into which quadrant each would fall.

Where are your clients and projects on the quadrant?

Quadrant 1 (lower left): Low Fun, Low Money

This is the worst quadrant. The work was not rewarding, either professionally or financially. These clients/projects are scratched from your list.

Quadrant 2 (lower right): High Money, Low Fun

This work did not stretch you professionally, but you were well compensated. In the ideal world, you would not need to consider this work, but bills have to be paid.

Quadrant 3 (upper left): High Fun, Low Money

These clients and projects were fun, they stretched your capabilities, but the budgets were slim and there was little or no profit to be made. This quadrant can be worthwhile if it increased your skill set, expanded your network, or led to referrals for future work.

Quadrant 4 (upper right): High Fun, High Money

This is the ideal situation. The work was challenging and expanded your skill set. The clients were appreciative, and you were well compensated. This is where you want to focus future marketing efforts—either to do more work with past clients in this quadrant, or to find other clients and projects who fit this profile.

Unless you take time to analyze your past work and clients, you won't know where to invest your time, energy, and financial resources to chart the best path for your business growth.

Chart your future

My goal each year is to work with clients who can keep me above the horizontal "fun" threshold. I don't mind doing some projects with limited budgets if they offer something else in return, such as the chance to explore new intellectual arenas or meet new colleagues.

Granted, when you're first starting your business, you may not have the luxury to turn down paying work. But as your company matures, you’ll discover that where you focus your thinking (and marketing) is often where you end up.

Use the Money-Fun Matrix to guide you in gaining clarity on what types of clients you want to serve.

Like thousands of solopreneurs who’ve used it over the years, I think you’ll find that it sharpens your decision-making about where to invest your time and energy in your solo business.

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Warm holiday wishes to those who have just joined us on this Working Solo journey as well as those who have been here since last summer when I launched this newsletter.

I appreciate you being a reader, and look forward to celebrating your solo success in 2024!