Importance of Niche Specialization for Agencies

Guiding over 250 agency M&A journeys has taught me things you won’t find in textbooks. But there’s one nugget of wisdom for founders that tops them all: The secret sauce to success isn't in the range of services you offer; it's in mastering that one service that you can truly call home. 🏡 Imagine a bustling digital business, teeming with talent. What sets the best apart from the rest? Through countless consultations, I've observed that the agencies thriving and commanding premium valuations are those with an unwavering focus on a singular niche. 🌟 💫 I'll let you in on a story. We once partnered with an agency with a flair for podcast placement for B2B companies. When they first approached us, they were a jack-of-all-trades, master of none. We told them they had a choice: either they could sell now at a lower valuation, or spend a year or two getting really good at a niche and make top dollar. But amidst this array of services, their passion for podcasts was unmistakable. They spoke of it differently; their eyes lit up, their energy shifted. It was their calling, yet they hesitated to narrow their focus, fearing they might alienate potential clients. We watched from the sidelines as they embarked on a journey of specialization. They dove into market research, identifying the unique needs and challenges of B2B markets desperate for innovative ways to reach their audience. They honed in on their pitching strategy, developing unparalleled expertise and case studies that demonstrated clear ROI. The transformation was remarkable. Not only did their client base grow, but it also became more targeted. They attracted real estate developers and agencies looking for exactly what they excelled at. They went from being one agency among thousands to the go-to experts in B2B podcast placement. Their brand became synonymous with innovation in a niche where they once feared to fully commit. 🚀 Most importantly? They eventually sold for an astonishing sum (which is why I’m being coy about specifics). 😉 So, my advice? Embrace your unique strengths. Dig deep to uncover that one service or skill that not only sets you apart but also ignites your passion. Build your brand around this core competency, and watch as your agency transforms from one of many to one in a million. Remember, in a world where everyone is trying to do everything, the real winners are those who dare to do ONE THING really well. Become indispensable in your niche, and the market will find – and reward – you for it. 💡 #AgencyGrowth #NicheDown #MandA

Today’s post is mostly for freelance strategists, studio founders and job seekers. I talk to a lot of you, and hear some version of the same question: How do I find work? Here’s my advice: First, I get what makes strategists valuable. Perhaps our core value to agencies is that our processes and training allow us to solve almost any kind of problem. We’re flexible. Ambidextrous. Swiss Army knives. Utility infielders. And this is PRECISELY THE OPPOSITE of what gets you hired for a project. What most hiring managers are looking for is not someone who can solve a range of problems, but someone with deep expertise at the very specific problem that they need solving. They don’t want someone eager and ambitious, willing to learn and stretch into new roles, even though that’s exactly what helps get you promoted at your agency job. No, they want someone who has solved this exact same problem for other companies in their industry, someone who has done it so many times that it bores them. It’s like if you tear your ACL and are looking for a surgeon. You don’t want someone whose specialties are listed on their practice’s website as “ankle, elbow, shoulder and knee injuries.” No, you want the doc whose only work is fixing knees. Athletes' knees ideally, because those knees are mission critical. We see the same thing in our industry, right? “Looking for a planner with expertise in sneaker culture.” “Healthcare industry expertise required.” “Who do I know who has done social strategy work in hotels and hospitality?” They all say the same thing - “I’m looking for someone who knows exactly how to do this because they’ve done it before. Because I don’t want to make a mistake and hire the wrong person.” If you’re a “freelance brand strategy director” you can probably do any of those 3 jobs above. But you’re not going to be chosen for any of them. And among the hundreds of applicants, you’re probably not even going to be considered. So my advice is to niche down to a specialty. Aim to not just be an expert, but to become the world’s leading authority on - something. "Become" is the operative word there. You're probably not that expert yet. It takes work - choose your focus, study it, talk about it, write about it. Force yourself to understand it well enough that you can go public with your POV. That helps ensure your mastery, and begins to visibly position you as the expert. I get that adopting a narrower POV may feel limiting. It is - by definition. But it’s also the core of strategy, which is making choices about what not to do. By narrowing your focus you’re deciding not to go after everything, but to focus your efforts where you have the greatest chance of success. Once you get in, you can fan out to other work. And over time your niche can broaden, making you attractive to a bigger pool of clients whose problems you’re still uniquely qualified to solve. But it starts with becoming a world’s leading authority in something, however small.

For agencies that consider themselves "specialists": every quick win outside your niche slows the compounding of your expertise. A couple examples from our Barrel Holdings agencies: Barrel has been steadily sharpening its edge in CPG commerce selectively taking food & beverage clients with omni-channel needs & stacking relevant case studies; and BX Studio has continued to go deeper into Webflow, helping launch several client sites each month while uncovering new integrations & edge cases. Choosing those lanes was easy. Staying in them when a warm, slightly off-track lead arrives is the real test. When we do veer, the true cost rarely shows up on the P&L: - Three to nine months of team effort spent solving problems that don’t deepen our mastery - Case studies that never make the portfolio because they don’t fit our story - Lost momentum while a more disciplined specialist agency widens the gap Maybe you end up pivoting and new opportunities open up because you didn't "limit" yourself. This is the story generalists embrace and it works out well for some and backfires for others. There's nothing wrong with doing many things for many types of clients, the full-service industry-agnostic path has plenty of success stories. But to waffle midway between specializing and being generalist is a dangerous place to be. Our record isn’t spotless. We’ve chased “adjacent” projects that later felt like detours. The takeaway isn’t to never deviate. It’s to weigh every opportunity against the long-term compounding of expertise you mean to build. Before saying yes to the next appealing yet not-our-ICP/specialization opportunity, ask yourself: Will this deepen the capability our future clients will prize, or is it just short-term revenue dressed up as growth? == 🟢 Join 1,300+ other agency leaders and get insights delivered weekly at AgencyHabits. No generic fluff, just real lessons learned from running our Barrel Holdings agencies.

Marketing teams are shrinking. We can thank AI and era of efficient growth for that. The obvious consequence? The rise of ‘the agency partner’. I spent the last two decades running and owning agencies. Also spent over 7 figures acquiring 2 of them (New North & Spoke) in the last 2 years. And in these 2 decades, I've never seen a shift this big. With the rise of AI, many organizations are pulling back on full-time marketing roles. Marketing teams keep getting smaller and smaller. They’re automating tasks and stretching resources in new ways. This may sound like a step backward for marketers (and agencies), but it doesn’t have to be. The right agency partnership can bridge the gaps created from AI and smaller teams. Here’s how agencies can fit with small, scrappy teams moving forward: ➡️ Specialized Expertise The agencies that stand out aren’t generalists. They’re highly specialized, focused on specific marketing channels and verticals. Imagine an agency that doesn’t just “do podcasts”—they produce video podcasts for B2B tech companies. Or, perhaps they manage paid media specifically for health tech companies. This level of focus is hard to replicate in-house. Agencies with a specialized service AND industry expertise bring deep knowledge and understanding of niche audiences (across their specific vertical). This means they’re uniquely positioned to produce results that align with nuances in your industry. ➡️ Strategic Connections to Business Goals Most internal teams can execute campaigns, but drawing a clear line between tactics and tangible business outcomes—pipeline growth, revenue impact, retention—is challenging, especially with limited resources. That’s where the right agency can step in. Instead of handling isolated tasks, agencies with a strategic outlook work directly toward business outcomes, bringing impact that resonates at the highest level of an organization. When agencies narrow in on a very specific target market, they don’t just complete tasks—they align with business goals and share accountability. So I'm doubling down on these two areas. On one hand, I’m committed to creating specialized agencies that serve niche markets while also connecting the dots with full-service offerings. Every piece is tailored to help small, scrappy B2B tech marketing teams do more with less, in a way that truly impacts the bottom line. ---------- Small, scrappy marketing teams, 'fluent' in AI. Partnered with highly specialized, highly strategic agencies. A winning combo.

I'm going to share how I took my SEO agency from a scrappy startup to a 10 million dollar powerhouse: Now, this wasn't an overnight success story. It took years of hard work and strategic decision-making. But if I had to pinpoint the key factors that propelled us to that $10 million per year mark, it would be these three things: → specialization, → scalability, → and systems. Let's talk 𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻: Early on, I realized that being a jack-of-all-trades in SEO was a recipe for mediocrity. So, I made a crucial decision - to focus on one specific service I knew we could deliver better than anyone else: helping websites build authority. This specialization made our messaging crystal clear. We weren't just another generic SEO agency; we were the go-to experts for businesses looking to establish themselves as industry leaders. This allowed us to hone our skills, refine our processes, and consistently deliver exceptional results. But specialization alone wasn't enough. We also had to focus on 𝘀𝗰𝗮𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆: As demand grew, we couldn't just keep throwing more bodies at the problem. We needed 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀 to scale efficiently while maintaining quality: Invested heavily in developing robust project management tools, training programs, and automated workflows. We built a well-oiled machine that could handle an increasing workload without sacrificing personalized attention. These systems were absolute game-changers, allowing us to take on more clients and expand into new markets. Of course, none of this would have been possible without our unwavering commitment to delivering value. We weren't just selling SEO services; we were partners in our clients' success. So there you have it - specialization, scalability, and systems, coupled with a focus on delivering value, were our secret sauce. If you're an agency owner or entrepreneur looking to level up, find your niche, build scalable processes, and never lose sight of what truly matters: your clients' success.

The Secret to Landing Higher-Value Clients The best clients aren’t the ones hunting for discounts, they’re the ones looking for experts. But here’s the thing: most agencies never land them. Why? They’re afraid to specialize. I get it. Niching down feels risky. But when you don’t, you blend in. You’re just another agency in the crowd. The agencies landing higher-value clients? ↳They know their niche and own it. Here’s how: • Pick an industry you know inside and out. • Show what you’ve done for others in that space (case studies, success stories, etc.). • Focus on clients who care about results, not saving a buck. Specialization isn’t about limiting yourself, it’s about standing out. 3 Ways to Niche Down: 1. Look at industries where you’ve already had success. 2. Highlight specific wins (what worked, and why). 3. Speak your clients’ language. When they see results they understand, trust builds fast. When you specialize, you don’t just compete, you lead. What’s one niche you’ve thought about but haven’t tried yet? Let’s chat! 👇

It’s been 10 years since I launched my WordPress website development agency. One lesson stands out: Knowing what to focus on. Here’s why focusing on a niche has worked for us: 1. 𝐒𝐩𝐞𝐜𝐢𝐚𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐜𝐫𝐞𝐚𝐭𝐞𝐬 𝐦𝐚𝐬𝐭𝐞𝐫𝐲 We focus entirely on WordPress design, development, and maintenance. This level of focus has helped us become experts, and clients trust us because we solve their specific challenges. 2. 𝐑𝐞𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐛𝐮𝐢𝐥𝐝𝐬 𝐭𝐫𝐮𝐬𝐭 Clients want more than just good work. They need a partner who’s reliable and responsive. Being dependable keeps clients coming back. 3. 𝐍𝐨𝐭 𝐞𝐯𝐞𝐫𝐲 𝐜𝐥𝐢𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐟𝐢𝐭 We’ve learned that the best partnerships come from working with clients who value our specialized approach. Not every client will, and that’s okay. It hasn’t always been easy, but staying true to what we do best has been key. #b2bmarketing #webdevelopment #wordpress

When Julia Devine and I first started consulting for nonprofits, we thought we had the perfect approach. As former nonprofit employees, we wore a lot of hats—fundraising, marketing, operations—you name it, we’d done it. So, naturally, we decided to offer every service we knew something about. Our thinking? The more services we offered, the more versatile and appealing we’d be. We could show nonprofits we were a “one-stop shop” for any challenge they faced. But here’s what really happened: we overwhelmed potential clients. When we’d sit down with a nonprofit to discuss their needs, we’d rattle off a list of dozens of services. Instead of helping them feel confident, it created confusion and uncertainty. We learned the hard way that offering a laundry list of services isn’t a recipe for success—it’s a recipe for overwhelm. Our advice to new nonprofit consultants: Pick one area to specialize in. Become known for your niche. You want people to remember what you do, and that only happens when your message is clear and focused. Specialization helps build a strong reputation, makes referrals easier, and turns marketing from a challenge into a breeze. What’s your area of expertise? Pictured: a screenshot from our list of services before we decided to niche down. 🤭

When I first started my recruitment agency I chose to be laser-focused on a specific niche. (Most new recruiters do the exact opposite.) Lots of recruiters try to be everything to everyone. They’re afraid to "miss out" on potential business. But here's the uncomfortable truth I've learned after nearly a decade in this industry… The more specialized you become, the more valuable you are to clients. Think about it from their perspective - who would you rather work with? "I'm a general recruiter who can find anyone for your company" "I specialize in finding senior React developers with fintech experience in hard to fill regulated markets" The choice is obvious. When you're specialized, everything changes: > Your calls sound more confident and authoritative. > Hiring managers trust you immediately because you understand their world. > Your outreach emails get higher response rates because you speak their language. Even if you're brand new, it gives you an instant credibility boost that overcomes your lack of track record. But here's the best part - it works regardless of your background. If you have professional experience in a field, that's your natural specialization. But even if you're switching careers completely, deep passion and dedicated learning can quickly make you sound like an insider. (I've seen recruiters with zero experience become respected authorities in their niches within months just by immersing themselves in the industry's language, challenges, and community.) The counter-intuitive truth… Narrowing your focus doesn't limit your opportunities - it multiplies them.

After generating over $5M+ in agency revenue (and helping many other agency owners do the same), I've realized there are 5 core pillars that MUST be in place to scale to 7-figures and beyond. Miss just one of these, and you'll be stuck on the revenue rollercoaster indefinitely. 1) Niche Specialization "The riches are in the niches." Don't try to serve everyone. Pick one niche and become THE go-to expert. 2) Compelling Offer Your offer should be so irresistible, prospects would feel STUPID saying no. Solve a burning pain, deliver massive ROI, and charge a premium for it. 3) Automated Lead Gen Manual prospecting won't cut it. You need a lead gen SYSTEM that runs 24/7 without your involvement. Cold email, LinkedIn, paid ads - whatever works for your niche. 4) Rockstar Team You can't scale alone. Build an all-star team of A-players who are better than you at their specific roles. Don't settle for average. 5) Optimized Operations Chaos kills growth. You need airtight SOPs, efficient workflows, and clear KPIs to keep everything running like a well-oiled machine. Master these 5 pillars, and your revenue will soar to heights you never thought possible. Ignore them, and you'll be stuck in the feast-or-famine cycle forever. The choice is yours.