[commonlisp94]

> switched to products

This is always a temptation for agencies which almost never works out. They underestimate the effort to build a product. They also typically don't have the skill or experience to build a high quality product that can compete with the whole world.

[matthewcford]

Perhaps, I know around 5-6 agencies that have made this work.

I don't think they underestimate the effort or lack the skills; the issue is trying to do both - grow the agency and launch a product.

The ones which made it either split the agency or stopped doing client work.