Critical Advice For Starting An Agency

Sabri answers a viewer asking whether to build a niche or general social media marketing agency. He recommends beginners or people seeking a modest "lifestyle" business choose a niche because it's easier to learn, replicate services, and requires less advanced skill. For those aiming to build a much larger agency, he argues a generalist (broad) approach can scale bigger but demands substantially higher skills across advertising, copy, funnels, sales, and staff. He frames the choice as an optimization problem: decide whether you prioritize quick income/lifestyle or building large-scale impact.
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This one comes in from Rodney Torosa. Hey, Sabri, I'm planning to build a social media marketing agency. What is your advice for me as a beginner? Go niche or general? Thanks. Right. This is a question that is rampant. Like, there's these two schools of thought of like, should I niche down or should I go general? Right. And it really depends on how good you are. Right. And that's a conversation that most people want to avoid. Like, people's default situation in this consulting space is to go niche. Right. And the reason for that is if you're a newbie and you're just getting started and your skills aren't sharp, it is very easy to go for a niche and and learn to master the principles in that niche and build a little business. So if you're trying to build like a lifestyle cashflow business where you earn 80 to 100 grand a year and you don't have any aspirations of building something that is huge, then I think going down the niche option makes the most sense. And it makes the most sense in the beginning because the skill set level required in order to do it, you can kind of create like, you know, canned and clone services that you can apply to clients within that same industry. Therefore, the body of expertise doesn't need to be really deep. Right. For me personally, it's a very boring problem to solve. Like, if you're just working with real estate agents and that's all you do day in, day out, it's very, very monotonous and it doesn't take a great level of skill and nor will you ever be able to build something that is, I'm not going to say never build something that's really big, but you really want to go wide and you want to be able to create a service that's going to benefit a lot of people and go out to the coldest level of traffic and speak to a huge broad audience at the same time. It takes infinitely more skill to be able to do that at every single step of the way. It takes more skill in terms of creating advertising that will be potent enough to resonate with people from all different industries and that are experiencing the same problem than it is to just speak to one person. You can get a lot more cut through. Your copy has to be a lot better. If it's a much more broader offer, the funnel has to be way better, way longer. Your sales process and your salespeople have to be a lot more skilled as well. The people that work within your organization and within your agency also have to Be more skilled because they need to know how to basically attack the problem at its root cause and solve that problem rather than just looking at, oh, here is the lotion that I, that I've made, that I know works for all real estate agents. And let me just to go and apply this lotion. So it's really, you know, I believe that we are rewarded by the complexity and the depth and how big problems are in the marketplace and how many people that we can obviously help. So going niche allows you to help a niche of people on a problem. But if you're going for multiple different niches and something that's broader and being like a generalist, then typically, you know what I. Is that you can build something that is a lot bigger. There will be a lot of gurus that will be outraged by that statement that I have made. Right. But like, when you really think about it, okay, and you just like, forget about everybody's opinion and you just look at the facts and you have a look at, well, you have digital marketing agencies and they're kind of like, you know, will have been up until now like the stepchild of a traditional advertising agency that have been around for hundreds of years. And what did those business models do? Did they just specialize in just dealing with banks and Coca Cola or Cola brands or fast food chains? Or do they have clients from all different walks? Because those guys are doing multiple billions of dollars in revenue. Right. And you'll typically find that they've gone down the more generalist approach. So really, to answer your question, you have to first think about what is it you're optimizing for. Are you just trying to bring some cash in the door, build a little lifestyle for your business? If that's the case, definitely going for a niche offering is going to be a lot quicker and easier for you to get up and running with a lot less heartache. If you want to build something a lot bigger than yourself, then I would suggest going down the general route. So I hope that helps. Hey guys, if you enjoyed this video, make sure that you click the like button and subscribe. We're dropping a video on YouTube every other day, and if you've got any questions about any of the content that I covered in this video, just basically leave a comment with heysubree in the comments section. And every week we're also trying to go through all those questions and get them answered. So go ahead, click subscribe and we'll see you in the next video.










