Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
Have you ever wondered 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 have worked with over 400 agencies and taught them how to scale their businesses.
As a result, I have seen consistent patterns and characteristics in those who grow effortlessly…
Unlike those who get stuck for years – no matter how hard they work.
I noticed a key difference in approach.
I will illustrate this one difference with a story.
Once Upon a time…
Two marketers have completed their business studies with the big plan of starting their own agency.
Ready to conquer the world, they started cold calling, sending emails, and doing whatever it took to get customers.
And even though they had the SAME level of work ethic and talent…
One of them now has an 8-figure agency.
The other of them is still freelancing doing odd jobs and barely making ends meet.
What did the successful person 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 to only serve plumbers and be the best damn plumbing marketer in the world.
With the goal of making their pipeline fuller than a broken toilet pipe.
He mastered the art of niche-making 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, turning away customers can seem scary… and it might feel like you're limiting yourself by focusing on only one type of customer.
But it's exactly the opposite. You are actually limiting yourself by doing everything for everyone.
Niche downsizing can help increase your sales two to three times
One of my clients, Lauren, ran a digital agency that offered everything there is.
Social media, paid ads, web development, SEO, and she offered it to clients across many different industries.
Because of this, her agency was stuck at $25,000 a month and she couldn't break through.
Additionally, she and her team worked much harder than necessary and operations were chaotic.
Every customer needed different things, required individual customization and nothing was standardized.
We sat down to review all of their previous clients and discovered that doctor's offices were their best clients.
They were easy to sell, lasted the longest, and gave her the least amount of headaches and discomfort.
So she changed her entire business model to ONLY serve this industry.
She then developed a standardized offering for this industry instead of customizing everything.
An offer for a target market. She then began emailing companies in her niche with her new offering.
The results?
She doubled her sales and grew to $52,000 a month in less than four months.
And all of this with just one simple change. A decision that can make everything easier, and you can do the same.
You see, most agency owners and marketers start with one or two clients and then get referred new clients from different industries.
Before they know it, they are marketing everything to everyone and have NO idea who their ideal customer is.
The problem with running a business this way is that it is no longer scalable.
Every single new customer requires a lot of research, thought and intelligence.
Since every new customer has different needs, this leads to a lack of standardized processes and systems.
This leaves the founder stuck in the company and unable to hire a team.
The other problem that arises is acquisition.
There are hundreds of thousands of agencies in the world, and it's really hard to stand out from the crowd.
Unless you specialize.
If you specialize in a niche – say SEO for plumbers…
Then you're not competing with every other agency on the planet. You don't look or sound like her anymore.
Now you have created your own little pond where you can be a big fish.
There are far fewer agencies that specialize in plumbing or SEO, let alone both. So you eliminated the competition with one decision.
If a plumber were to look at two agencies – one that is 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 like them.
Not to mention, marketing is easier when you have a clear niche in mind.
You know who you are writing your content for…
You also know who to send emails and social media DMs to…
You know exactly who to target with your ads.
You know which podcasts you should be booked on
And so on and so on.
You can also charge any price you want. Because you won’t be compared to the hundreds of thousands of agencies out there – you now have a unique offering.
Deciding on a niche makes it easier to market, sell, and scale.
You just have to be good at doing one thing for one person and then you can build systems and processes around that. This way you can hire a team to take on the task and work less.
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Now how do you do that? What if you don't know who your ideal customer is?
Step 1: Review your current and past customer list.
Write down every single client you've ever served and group them by niche. Industry, location, size, etc.
Once you've grouped them together, a niche may already stand out as your preferred type of customer.
If not, use my 7-point checklist and rank each niche on a scale of 1 to 5.
These 7 criteria points make a great niche.
#1 – Total Addressable Market:
How many companies are there in this market? Is it big enough to support your larger goals? Is the market shrinking or growing? Make sure the niche is big enough for you and doesn't shrink.
#2 – Purchasing power
Is this market (or at least part of it) able to afford what you want to charge?
Consider whether you have received frequent pricing objections when selling to these people in the past.
#3 – Lifetime Value
How long did these customers stay? Were they one-off projects or did they stay with me forever?
The greater the lifetime value, the more money and time you can invest in customer acquisition.
If the niche typically changes within a few months or only works with you on quick, one-off projects…
Then you have to invest as much energy in sales and marketing to keep the business afloat.
#4 – Strong need and pain
Does this market have an important problem that needs to be solved? Or is what you sell just “nice to have”?
In the latter case, it becomes very difficult to attract customers.
If they can't live without your solution, acquiring customers will be a piece of cake.
#5 – Desire to resolve this pain
It's one thing for a market to have a problem, but it must also have a desire to solve that problem.
Even if they have the need that you fulfill, that's not enough – they also need to care about fulfilling that need.
#6 – Easy to get to
Is the market relatively easy to find online? Can you reach them across most advertising platforms and social channels? Are your groups and communities online?
When you target businesses that are difficult to reach online, you create an additional barrier to your success.
Step 2: Choose a niche after evaluating each of your previous customers.
Add up all the rankings and select the number with the highest score.
Don't worry about making the wrong decision.
Consider this an experiment.
You are not tied to your new niche, you can always switch back in a few months if it doesn't work out.
Step 3: Create a pre-built offer for your new niche
The point of niching is to create more focus and simplicity in your business
Part of it is about WHO you sell, part of it is about WHAT you sell to them.
Start by choosing 1 problem to solve for them and 1 solution to that problem.
List what the services will be and what you want to charge.
Keep it simple! You can build on this later.
Step 4: Test the water and land 5 new customers.
Before making drastic changes to your business, such as: E.g. saying goodbye to customers, changing your branding and website…
First, test the framework and see if this new niche is the direction you want to go.
Get about five more customers and that will be enough to determine whether these are really our ideal customers or not.
You might think they are at first, but you'll know for sure when you serve more of them.
Summary…
You now know the problems that come with being a jack of all trades with no clear focus.
Every new customer is a lot of work and requires individual adjustments…
And it's difficult to attract new clients because there's nothing special about your agency. You will look and sound like everyone else.
That is, if you limit yourself to one niche and sell 1 offering to 1 target market…
Your workload will decrease. Each new customer will be easier to serve than the previous one.
You'll become world-class at helping your clients with all that focused repetition
You will quickly make a name for yourself and become a big fish in a small pond.
Growing, scaling, acquiring and retaining customers becomes easier in every way.
Plus, you'll have more fun and the business will be simpler and easier to run.
And with this knowledge…
You have learned the 5 easy steps to niche building.
So…
Time to get to work!
Put this into practice and watch how it transforms your business.
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
