How Niche is Too Niche?

Every agency owner I’ve coached worries about picking a niche that’s too small. I get it. The fear is real. But in practice, there’s a much higher chance they overcompensate and pick a niche that's too big. Both are bad. So what’s the right size? First, let’s establish what “right size” means. It’s not enough to just pick a niche; you want to own a niche. If you don’t own it, no one notices you. You’re just one of many options in a red ocean. But when you own a niche, you command maximum pricing power and your marketing gets significantly easier. That’s the dream for every agency. So, what’s the right size market for a $1M agency to own? Your mileage may vary, but here’s a starting point for you. You can run a $1M/year agency if you have 10–15 clients paying you $75k each annually. If you’re well-positioned, you can win up to 50% of the projects you pitch. Over time, that win rate can compound into niche ownership. To do that, you have to pitch 20–30 clients every year. Your…