Tool Gate · How it works
How the Customer Concentration Risk gate works
How the Customer Concentration Risk Gate grades a revenue book: top-1 and top-5 customer share scored into a 0–100 number, and a survival gate where losing your #1 dropping you below break-even forces DANGER — which is how a 51 that reads CONCENTRATED still fails.
How the gate works
This tool grades how dangerously concentrated a revenue book is. Each control is marked from your own evidence and weighted into a 0–100 score — and then the score is run past a gate that can only make the verdict worse.
The 2 weighted controls
| Signal | Weight |
|---|---|
| Top-1 customer share (28% anchor) | 60 |
| Top-5 customer share (53%) | 40 |
| Total | 100 |
The verdict bands
In survival mode, if losing your #1 customer would drop revenue below your annual break-even, the verdict is forced to DANGER no matter how the concentration score reads. Concentration is only as dangerous as your ability to absorb the loss, regardless of the score.
In the worked sample it scores 51 out of 100 and still reads DANGER — The revenue mix scores 51 — CONCENTRATED, not yet DANGER on the numbers alone. But with a $78K/mo cost base, losing the anchor client (28% of revenue) leaves $720K, below the $936K annual break-even. The survival gate forces DANGER: concentration is only as dangerous as your ability to absorb the loss. The one thing to fix first: Grow other accounts by about $120K to bring the anchor client under 25% of revenue — no need to fire anyone..
Common questions
Can something score well on the How the Customer Concentration Risk gate works and still fail?
Yes. The weighted score is run past a worsen-only gate — the Survival — that can only make the verdict worse. In the worked sample it scores 51 out of 100 and still reads DANGER, because the revenue mix scores 51 — CONCENTRATED, not yet DANGER on the numbers alone. But with a $78K/mo cost base, losing the anchor client (28% of revenue) leaves $720K, below the $936K annual break-even. The survival gate forces DANGER: concentration is only as dangerous as your ability to absorb the loss.
What is a worsen-only gate?
A dispositive rule that can only lower a verdict, never raise it. One fatal flaw overrides an otherwise-good score, because a single disqualifying gap shouldn't hide behind a high average. The tool also names the one thing to fix first — here, "Grow other accounts by about $120K to bring the anchor client under 25% of revenue — no need to fire anyone.".
Your numbers only, computed offline. Grades a revenue mix, not a person. Not financial advice.
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<iframe src="https://redhub.ai/visuals/tool/customer-concentration-risk-gate.html" title="How the Customer Concentration Risk gate works — RedHub AI" width="760" height="1460" loading="lazy" style="border:0;width:100%;max-width:760px"></iframe>
<p style="font:14px/1.5 system-ui,sans-serif"><a href="https://redhub.ai/visuals/tool/customer-concentration-risk-gate">How the Customer Concentration Risk gate works</a> — by <a href="https://redhub.ai">RedHub AI</a>, the AI that tells you when to doubt it.</p>Image + link — a static picture for any blog
<a href="https://redhub.ai/visuals/tool/customer-concentration-risk-gate"><img src="https://redhub.ai/visuals/tool/customer-concentration-risk-gate-share.png" alt="Diagram of the Customer Concentration Risk Gate: two weighted concentration controls, a survival gate, and a revenue book scoring 51 that still reads DANGER." width="760" loading="lazy" style="max-width:100%;height:auto;border-radius:16px"></a>
<p style="font:14px/1.5 system-ui,sans-serif"><a href="https://redhub.ai">RedHub AI</a> — the AI that tells you when to doubt it.</p>
This is how Customer Concentration Risk Gate works. More diagrams in the Visual Field Guide.