It’s a great big world of opportunity out there.
Marketing Agencies see all the opportunity and say, “Let’s help our clients bring in the BIG BUCKS… and let’s earn our fair share of the profits too!”
But not all niches are set up to be Ideal Clients for a Marketing Agency.
Why? It has little to do with the clients themselves and more to do with the industry they’re operating within.
The Best Type of Client for Marketing Agencies:
The IDEAL niche for a marketing agency is one where the client gets paid up front for their services OR at the time the service is rendered.
Why? Cashflow. The quicker cash flows into the client’s pocket the faster they see results (and the faster the agency owner gets repeat business.)
Imagine providing services… but the client doesn’t see a return on investment until 3 to 6 months later…
Anybody who has worked for these types of clients knows it’s not uncommon to be asked to wait to get paid.
Of course, it’s not a nice situation to be in when you have employees and expenses to pay.
It’s not the client’s fault, necessarily. I would suggest it’s largely to do with the industry they’re in.
The Worst Niches for Marketing Agencies:
Real Estate Agents – Agents are set up to get paid last… After the client has found the house of their dreams, after they have received funding from the bank, and after the transaction has gone through.
The whole sales process can take months and many agents earn a paltry sum for their efforts.
Not only that, the industry itself is shifting so that agents are seen as simply facilitators of the transaction, rather than their traditional role as trusted advisors. That results in shrinking profit margins.
Nearly all the information a home buyer needs is available online (or at least that’s what they think.)
Even if this isn’t necessarily true, the perception is becoming an uphill battle to overcome for agents.
Insurance Agents – There’s a long lead time and paid search traffic is dominated by major national companies. (This is the case with real estate agents as well.)
Big corporations price out the smaller operators from paid search (the kinds of clients who are most likely to hire a smaller marketing agency.)
Paid search is one of the easiest ways for a marketing agency owner to help their clients… and leaves you without this valuable tool to get your clients some quick wins (and cash flow).
General Practice Doctors – Would you want a discount brain surgery? I didn’t think so…
This is why general practice doctors aren’t getting compensated as well as they should.
There’s simply too much bureaucracy, paperwork, and competition from big corporate providers who keep pushing profits to razor thin margins for general practice MDs.
Retail and Salons – Direct Response marketing would work very well for these types of businesses except…
However, the low profit margins discourage such types of business owners from “taking a risk” on direct marketing.
Could a marketing agency successfully help these kinds of “worst niche” business?
Yes, of course. Marketing would help any kind of business. I know agency owners doing quite well in all of these niches.
As long as you know the challenges facing you and you’re prepared to overcome those challenges, anything is possible.
I’d leave it up to your personal discretion if this is a valuable use of your time as a provider of marketing services and the kind of business you want to create.
My recommendation: Aim for niches where your client’s are paid up-front or at the time of service.
Quicker cash flow means quicker tangible results and makes it easier for you to earn repeat business.