Ever wonder what the most successful agencies did differently than everyone else?
Was it luck, skill, hard work, the industry they chose, or something else?
Through my consulting work at Revenue Boost, I’ve worked with and taught over 400+ agencies how to scale their business.
From this, I’ve seen consistent patterns & traits in the ones who grow effortlessly…
Versus the ones who stay stuck for years – no matter how hard they work.
One key difference in approach stuck out to me.
I’ll illustrate what this one difference was with a story.
Once upon a time…
Two marketers graduated from business school with big plans to start their own agency.
Ready to conquer the world, they started cold calling, cold emailing, and doing everything under the sun to get clients.
And although they had the SAME levels of work ethic and talent…
One of them now has an 8-figure agency.
The other one of them is still freelancing odd jobs, barely making ends meet.
What did the successful one do differently?
He took a big risk and started turning down clients and projects.
Instead of offering everything to everyone, like most agency owners…
And being a jack of all trades but a master of none…
He decided only to serve Plumbers and be the best dang’ plumbing marketer on the planet.
With a goal to make their pipeline fuller than a broken toilet pipe.
He mastered the art of niching down and realized it would be easier to be the biggest fish in a small pond.
And you should too – and in this article, you’ll learn exactly how to define your own niche.
Now it may seem scary to turn down clients…and it may feel like you’re limiting yourself by focusing on only one client-type.
But it’s exactly the opposite. You’re actually limiting yourself by being everything for everybody.
Niching Down Can Help 2x-3x Your Revenues
One of my clients Lauren ran a digital agency offering everything under the sun.
Social media, paid ads, web dev, SEO, and she offered it to clients from many different industries.
Because of this, her agency stayed stuck at $25,000 a month and she couldn’t break through.
On top of that, she and her team worked so much harder than they had to and operations were messy.
Every client needed different things, required customization, and nothing was standardized.
We sat together to audit all her past clients, and we found that Medical practices were her best clients.
They were easy to sell, stayed the longest, and gave her the least amount of headaches and complaints.
So, she changed her entire business model to ONLY service this industry.
Then, she developed a standardized offer for that industry, rather than customizing everything.
One offer, to one target market. Afterwards, she started cold emailing businesses in her niche with her new offer.
The Results?
She 2X’d her revenues and grew to $52,000 in monthly revenue in not even four months time.
All from making one simple shift. One decision that can make everything easier, and you can do the same.
See, most agency owners and marketers start out with one or two clients, and then they get referred new clients from various industries.
Before they know it, they’re marketing everything for everyone and have NO idea who their ideal client is.
The Problem with Running a Business This Way Is That It Becomes Impossible to Scale.
Every single new client requires a ton of research, thought, and brainpower.
Because each new client has different needs, it leads to having no standardized processes and systems.
Which keeps the founder stuck in the business and unable to hire a team.
The other problem that arises is acquisition.
There are hundreds of thousands of agencies on the planet, and it’s really hard to stand out.
UNLESS you specialize.
When you specialize in a niche – let’s say, SEO for plumbers…
Then you aren’t competing with every other agency on the planet. You don’t look and sound just like them anymore.
Now, you’ve created your own tiny pond in which you can be a big fish.
There are way fewer agencies that specialize in plumbers or SEO, let alone both. So, you’ve eliminated the competition with one decision.
If a plumber was looking at two agencies – one that was a general digital agency and one that specializes in helping plumbers…
They almost always choose the agency that specializes in their industry and has testimonials from people just like them.
Not to mention, it’s easier to market when you have a clear niche in mind.
You know who you’re writing your content for…
You know who to send emails and social media DMs too…
You know exactly who to target in your ads….
You know what podcasts you should get booked on
And so on and so on.
Plus, you can charge whatever prices you want. Because you aren’t compared to the hundreds of thousands of agencies out there – you have a unique offer now.
Committing to one niche makes marketing easier, it makes selling easier, and it makes scaling easier.
You only have to be good at doing 1 thing for 1 person, and you can build systems and processes around it. This way, you can hire a team to take it over and be able to work less.
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Now how do you do it? What if you don’t know who your ideal client is?
Step 1: Audit Your Current + Past Client List.
Write down every single client you’ve ever served, and group them by niche. Industry, location, size and so on.
Once you group them together, one niche might stick out for you already as your favorite type of client.
If it doesn’t, use my 7-Point checklist and rank each niche on a 1-5 scale.
These 7 criteria points are what makes a great niche.
#1 – Total Addressable Market:
How many businesses are in this market? Is it large enough to support your bigger goals? Is the market shrinking or growing? Make sure the niche is big enough for you and that it’s not declining.
#2 – Purchasing Power
Is this market (or at least a segment of it) able to afford what you want to charge?
Think back to if you’ve received a lot of pricing objections when you’ve sold to these people in the past.
#3 – Lifetime Value
How long did these clients stay? Were they one-and-done projects or did they stay with me for eternity?
The bigger the life-time value, the more money and time you can spend to acquire a client.
If the niche typically churns in a few months or only works with you for quick, one-off projects…
Then you’ll have to spend so much energy on sales and marketing to keep the business alive.
#4 – Strong Need & Pain
Does this market have an important problem to solve, one that they have to fix? Or, is what you sell just a “nice to have”?
If the latter, it’s going to be very hard to get clients.
If they can’t live without your solution, then getting clients will be a breeze.
#5 – Desire to Solve that Pain
It’s one thing for a market to have a problem, but they must also have a desire to solve that problem.
Even if they have the need that you fulfill, that’s not enough – they also have to care about fulfilling that need.
#6 – Easy to Reach
Is the market fairly easy to find online? Can you reach them via most advertising platforms and social channels? Are their groups and communities online?
If you’re targeting businesses that are hard to reach online, you’re creating one extra barrier to your success.
Step 2: Choose 1 Niche After Ranking Each of Your Past Clients.
Tally up all the rankings and pick the 1 with the highest score.
Don’t worry about making the wrong decision.
Consider this an experiment.
You aren’t married to your new niche, you can always change back in a few months if it doesn’t work out.
Step 3: Create a Pre-Packaged Offer for Your New Niche
The whole point of niching down is to create more focus and simplicity in your business
Part of this is about WHO you sell, part of this is about WHAT you sell them.
Start out by choosing 1 problem to solve for them, and 1 solution to that problem.
List out what the deliverables will be and what you want to charge.
Keep it simple! You can build upon this later.
Step 4: Test the Waters and Go Land 5 New Clients.
Before you make any drastic changes to your business, such as letting go of clients, changing your branding and website…
Test the waters first, and verify if this new niche is the direction you want to go.
Go land another 5 clients or so, and that’ll be enough to identify if these are really our ideal clients or not.
You might think they are at first but you’ll know for sure once you serve more of them.
Wrapping Up…
You know now the problems of being a jack-of-all-trades with no clear focus.
Every new client is a ton of work and requires customization…
And getting new clients is difficult because there’s nothing that stands out about your agency. You’ll look and sound like everyone else.
This means when you do niche down, and sell 1 offer to 1 target market…
Your workload will decrease. Each new client will be easier to serve than the previous one.
You’ll become world-class at helping your clients from all the focused repetition
You’ll quickly develop a reputation and become a big fish in a small pond.
In every way, it’ll become easier to grow, scale, attract, and retain clients.
Plus, you’ll have more fun and the business will be simpler & easier to run.
And with this knowledge…
You’ve learned the 5 simple steps to niching down.
So…
Time to get to work!
Put this into practice and watch it transform your business.
[TAG5]The post Profit More, Work Less: 4 Steps to Niching Down For Your Agency appeared first on DigitalMarketer.
Frequently Asked Questions
What are the six most important questions entrepreneurs should ask?
Motivation is the key ingredient to any business. You won't get out of bed each morning if you don't have motivation. You'll have trouble completing projects without motivation. Without motivation, you can't even reach your goals. How do we find our inspiration?
You may wonder, "What motivates my mind?" The answer may surprise you. This question might be one you've asked yourself for years. If you don't ask yourself this question, then you are missing out on one the greatest rewards of your life: the opportunity to discover your motivation.
Nothing is more motivating than knowing why you exist. You will then realize what drives yourself. Your purpose becomes clearer. Why are you caring? This will help you stay motivated.
Look within to find your motivation. Ask yourself these questions:
- What am I passionate about?
- What makes my heart beat faster?
- What's the thing that makes me happy?
- What gives you butterflies in your stomach?
- What makes me feel alive and connected?
- What keeps you coming back to your projects again and again?
Once you have your answers, it will be possible to determine your true motivations.
You can find your motivation to get through tough times. You will find strength whenever you need it. It will make you work harder. You will be motivated to achieve your goals.
If you're anything like me, you will never stop searching for your motivation.
Consider what drives you today. You might be surprised at your discoveries.
What motivates entrepreneurs?
Passion drives us. But, we have an inborn desire to create something meaningful and make a difference. To make a significant difference in our lives and the lives of those we love.
To give back. To help others. To leave behind a legacy.
We do it because we love what we do. Because we feel called to live life fully, and have success in the things that matter most.
We are driven to fulfill a sense purpose and mission. This cannot be accomplished by money alone.
Finding a way to mix business and pleasure is the key. This is where entrepreneurship becomes more than just a job; it is a lifestyle.
Because of this, I am passionate about helping entrepreneurs succeed. My goal in helping entrepreneurs achieve financial freedom and make a lasting difference in the world is my goal.
I am living proof that creating value is better than anything. Sharing your knowledge and expertise with others.
It's not enough just to build a great service or product. It is essential to understand your customers' motivations and what they want. They want what they need.
Doing so will help you to always improve your offering. You will always be able to provide more value.
You will attract more customers if your products and services are more valuable. You will also sell more products and more services if you have more customers. You will also generate more revenue if you sell more services and products. In the end, financial independence is possible if you are able to generate more revenue.
You see, money does not always equal everything. It's the means to an end. It's not an end in itself.
You cannot only focus on your money if you want to have a happy life. Make a positive impact. Contributing. Be a part of a legacy. Create something unique. Something unique. It adds meaning and purpose to your life, as well as those of others.
Entrepreneurship requires risk-taking. It doesn't necessarily mean that you have to follow certain rules. Flexible means being open to change. Adapting. Adjusting. Improving.
As long as you stay true to yourself, keep your values intact and maintain integrity, you won't fail.
Entrepreneurship should be considered a calling. A vocation. The chance to give back. To create wealth. To shape history.
These are the things that will make you the best version you can be.
You will never stop.
What is the importance of motivation for entrepreneurs?
Motivation is what drives us forward when things seem difficult or hopeless. Motivation gives us the courage to face our fears, and makes decisions that may seem impossible or risky.
Motivation is also a driving force behind success. Lack of motivation can cause us to become lazy, unmotivated or unproductive, ultimately leading to our failure.
You can unlock your potential by finding ways to motivate you. This means finding a way to stay motivated throughout the day.
You can think about it like a muscle. The stronger it gets, the more you do it. It will weaken and atrophy if you don't exercise.
Entrepreneurs who are self-motivated are some of the most successful. They set goals and plan the steps to reach them.
But there are times when you may need help staying motivated. Here are three easy steps to keep you going.
Step 1) Get inspired. Find an example of someone who inspires. Someone who is already doing what you desire.
Step 2) Set small goals. Each goal should be achievable. The next step is more important than the end result. By breaking big goals down into smaller ones, you'll be able to reach them faster.
Step 3. Reward yourself. If you have achieved your goals, give yourself rewards. You don't need a reward to be material. It could be as simple as taking the time to do something that you enjoy.
Remember, motivation is a choice. Choose to be happy, choose to be successful, choose to live life abundantly.
If you're ready to transform your life, get started today. The first step is to decide to change. Next, take action. Get started now on your journey to living the life you desire.
How to motivate yourself as an entrepreneurial leader?
It is important to find someone who motivates you to do the things that you want to do. Ask someone who is working hard for his goals about how they did it.
Ask for help, listen, learn, and most importantly, keep it coming. Admire someone who is successful.
To be that person, do everything you can. Learn from them. Take their advice. Follow their example.
Keep moving. Keep moving. Never stop learning. Never give up.
Never allow anyone to tell you that your abilities aren't possible. Don't listen to anyone who tells you there is no path.
Even though you may fail, that doesn't make it any less valuable. Failure is an opportunity for growth. To learn more. To push harder.
Failure is only another step on your journey to success.
Get started today! Do something today that will get you closer to your goal.
Why wait?
What are five key factors that motivate entrepreneurs?
Motivation is the key to success. Without it, there would be no success. In fact, without it we wouldn't even exist.
Motivational psychology is the study and analysis of human behavior when motivated. When motivated, we do amazing things. However, motivation is not unlimited.
The five most important motivating factors are:
- Autonomy - The freedom to choose
- Mastery - The ability to master skills
- Purpose – The sense of purpose
- Relatedness - The feeling of belonging
- Reciprocity, the desire to give and receive
These motivators could be useful for your business. Each perspective offers a different view of why people behave the way they do.
An individual may seek autonomy to be able to choose his own path. Or he might want to mastery because he wants more skill at his job.
You can go on and on. These are just some examples of possible motivations. There are many others. However, which ones might be most applicable to your particular situation. This is entirely up to you.
Write down three words to describe your ideal working environment. Take those words and adapt them to your current workplace conditions.
If you find it difficult to think of ideas, try asking yourself this question: "Why are I doing this?" This will help you to identify your goals.
Once you understand what you want, then you can figure out where your current position is. This knowledge will help you decide if you should make any changes.
If you don’t wish to change anything, then it’s time to consider your options.
However, if you are looking to make positive changes in your life, you will need to begin thinking about how to motivate yourself.
Which motivator is the most powerful? It's hard not to say. Instead of focusing on one factor, try focusing on all five.
This will enable you to reach your ultimate goal: being a successful entrepreneur.
What keeps you motivated to be an entrepreneur?
My greatest motivator is freedom. There are limitations on how much people can earn, save and invest, buy, borrow, rent or drive, eat, sleep, play, and fly in this world. However, these limits do not apply for us. We are free to pursue our dreams and make them come true.
But we cannot let ourselves become enslaved by these limitations. We lose sight of the fact we are in control of our destiny if we do. We are the captains of our ships. We are the architects and creators of our lives.
I am driven by the desire for wealth that is beyond my wildest dreams. To build businesses that transcend life. To build businesses that will change the way people live for ever.
To create stronger businesses than any governments, more influential as any religion, and longer lasting than time.
This is why I am here. I'm working hard to help entrepreneurs grow their businesses faster than anyone else. Because when you succeed, everyone wins.
Statistics
- "Most of the time when people ask me about motivation, 80 percent of the time, I attribute it to gratitude. (entrepreneur.com)
- “Life is 10% what happens to you and 90% how you react to it.” (oberlo.com)
- “If you look to lead, invest at least 40% of your time managing yourself – your ethics, character, principles, purpose, motivation, and conduct. (americanexpress.com)
- “Effective communication is 20% what you know and 80% how you feel about what you know. (americanexpress.com)
- According to analysts, Johnson has high appeal in all four quadrants tracked at the multiplex: male, female, over-25 and under-25. (forbes.com)
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How To
How do I keep my enthusiasm high while starting a company?
It is essential to create an income stream in order to make money online. This means developing a way to generate consistent revenue from your website.
It is easy to solve customers' problems by creating products. How can you create these products, though? That's where the real fun begins.
There are two options for product creation. The other is to create a great product idea and spend hours perfecting the idea. This is probably the best approach.
However, there is another option. It's possible to simply ask, "What problem are I trying solve?" and then proceed to find a product that solves that problem.
This is called the "find-a-problem" method. You're likely to find a problem on another site if you use the "find-a-problem" method.
Once you have found the problem, it is time to decide if you want or not to solve it. There are three basic questions you need to answer:
- Is it worth the effort?
- Is it possible to solve it?
- Will it pay?
You have the foundation for a product that is successful if you can answer all three questions. Now, you need to think about how to package the product.
Most businesses fail because they lack a plan for generating recurring revenue. But once you develop your plan, it becomes easier to keep going even after you run out of ideas.
Sometimes you may find yourself with more ideas than time to put them all into practice. You can assign tasks to others in your team or hire freelancers.
You can stay motivated as long you grow your income stream.
Keep in mind: If you are determined to put in the effort, you can achieve anything. So why wait? Get started now!
Did you miss our previous article...
https://consumernewsnetwork.com/technology-news/foundations-of-agency-success-simplifying-operations-for-growth
