Sell to People with Money
Hormozi has a quote about solving rich people's problems.
Obviously, the rich can pay more to make it happen, so save yourself some trouble.
That’s not what this article is about.
While you should definitely attack markets with plenty of cash to go around, I’ve noticed something far more problematic for agencies.
They’re attacking markets that have no money.
The Need for Capital
Much has been written about how to identify whether marketing is growing or shrinking, how to plan and identify the percentage of market share you can take, and how to work around the competition.
I’m keeping this article straightforward.
We’re going to have a quick one-sided chat about why you need to target customers who can actually pay you.
And you might scoff and say, “Isn’t that obvious?”
No. It apparently isn’t.
In the past few weeks, I’ve seen a couple of cases stand out:
1. Selling podcast clipping services to individuals.
Most podcasts don’t make money. Look it up.
For anyone just starting a podcast, they have no money to spend on it.
Even if you were to target a business, most aren’t making money and have to spend from their marketing budget to make it happen.
There’s a far better chance you’ll get paying clients from a pool of businesses with podcasts over a year old than by targeting individuals.
2. Selling websites to solopreneurs.
Most solopreneurs don’t make a lot of money in the early days.
If you can find established businesspeople, have at it.
But I talked to an agency that wanted to “capitalize” on the growing number of people entering the soloprenuer game.
Do you have any idea how much volume you’d need to cover your expenses?
Alternatively, you could toss your morals out the window and convince them they need a $12k site to be successful.
Instead, go after established businesses.
Find the Money
I’d actually recommend most agencies don’t go into business for the money.
An agency can be a great lifestyle business, making you money while you optimize for the life you want to live.
But no one goes into or stays in business if there’s no money.
So, regardless, we need to ensure the audience we’re targeting has capital to allocate.
Again, this seems like a very simple concept, but I bet that in another week, I’ll have found at least another example living in the wild.
If your audience can’t pay, find a new audience.
OR find a different way to monetize them.
Collect or Create
There are two ways to work with leads. Collect them or create them.
Collecting is standard lead gen.
Creating is a much longer-term strategy, but it can work wonders.
Let’s say you’re a podcast marketing agency.
Collecting involves finding people who want what you have.
Creating could look like developing a low-ticket course to launch new podcasts.
If you build the course right and people get results, they associate some of those wins with you. So, when they need services later, they’re more likely to work with you.
Make it Rain
This was a short one, I know. But it was fresh on my mind and nagging at me.
Why don’t people understand this?
Honestly, it’s because they need a coach. They’re running with a great idea and have no one to set them straight.
But, if you’re a fledgling agency, you probably don’t have the capital for a coach right now.
This is one of the reasons I made a free email course on the challenges of agencies and how to solve them.
You can get it at DynamicAgencyCourse.com.