Not all revenue is good revenue: How to avoid the kind that hurts your business
In the early stages of growing a business, it’s easy to fall into a simple trap: saying yes to every opportunity. Every client, every project, every inquiry - they all seem like potential lifelines. After all, cash is king, and who wants to leave money on the table?
But here’s the uncomfortable truth: not all revenue is good revenue.
Some revenue comes with hidden costs that aren’t immediately visible in a P&L statement. These costs show up in your team’s burnout, in stretched timelines, in scope creep, in low-margin projects that drain your energy and dilute your focus.
If you’ve ever taken on a client that just didn’t feel like the right fit, you know exactly what we mean.
So how do you avoid the kind of revenue that actually slows your business down?
It starts with one thing: a clearly defined Ideal Customer Profile (ICP).
Why bad revenue happens
When you’re in growth mode, the instinct is to keep the pipeline full, whatever it takes. It’s natural. Saying yes feels like momentum. Saying no feels risky.
But the wrong type of work and the wrong type of clients create bottlenecks and distract from your core strengths. And they often lead to reputational risk when the outcomes aren’t as strong as you know they could be.
Bad revenue shows up when you chase misaligned opportunities and take work from clients who don’t value your expertise, or projects that demand constant customisation and hand-holding.
The end result? Your team feels overwhelmed, your profit margins shrink, and your business starts drifting off-course.
The fix: A strong, strategic ICP
Most companies treat the Ideal Customer Profile like a marketing exercise, something you hand off to the brand team to sketch out personas and buyer journeys.
But your ICP isn’t just a piece of marketing collateral. It’s a strategic compass for your entire business.
When defined and applied correctly, a clear ICP sharpens:
- Your marketing messaging
- Your sales qualification process
- Your delivery model
- Your pricing
- Your team resourcing
- And even your company culture
In short, your Ideal Customer Profile helps you say yes to the right clients and no to the wrong ones.
6 signs you’re attracting the right kind of revenue
So what actually makes a customer ‘ideal’?
It’s not just about budget size. It’s about alignment across values, operations, timing and long-term potential.
Here are six things to look for when qualifying high-fit, high-value clients:
- They’re profitable
You can serve them efficiently with minimal reinvention or customisation. Scope stays clean, margins stay healthy, and the work feels smooth.
- They share your values
Ideal customers respect your process, your people, and your time. They collaborate with clarity and integrity. You don’t need to ‘educate’ them on how to be a good client, it just clicks.
- They have an urgent need and you’re the right fit
They have a clear pain point that your business is built to solve. And they’re not just curious, they’re ready to act. The alignment between problem and solution is obvious to both sides.
- Their buying process is clear and committed
You’re not chasing ghosts. You know who the decision-makers are, they’re engaged, and the process moves at a healthy pace. There are no mystery stakeholders or endless loops of ‘let’s revisit this next quarter’.
- There’s room to grow the relationship
It’s not just a one-off project. There’s potential for a long-term partnership, cross-sell or upsell opportunities, referrals, or expansion. Good clients become great clients over time.
- They offer strategic value
Beyond the bottom line, they help position your brand. Maybe they’re a recognised name in your target market, or the work you do with them helps build your portfolio in the right direction. Some clients elevate your credibility just by association.
When you work with the right customers, everything changes
The benefits of getting your ICP right aren’t theoretical. You’ll feel it in every corner of your business.
- Sales cycles get shorter.
- Win rates go up.
- Delivery becomes more predictable.
- Your team stays energised and focused.
- And your best work ends up in front of people who actually appreciate it.
In short: you scale more sustainably.
Is your customer mix off-balance?
If your pipeline is full but you’re still feeling friction - delayed decisions, margin pressure, stressed teams - it might not be a sales problem. It could be an ICP problem.
The good news? Once you clarify who your best-fit customers really are, everything else becomes easier. Better leads. Better projects. Better results.
At Disruptive Thinking, we help growing teams identify, attract, and convert the right kind of customers, so they can scale without compromise.
If you want help getting strategic clarity on who your best customers really are, and how to find more of them, we’d love to talk. Drop me a line at yiuwin@hellodisruptive.com and let’s explore how we can sharpen your ICP and unlock good revenue.
