FB Pixel

The Case for Niching Down Your Digital Agency

A man addressing a group of men in an office

Heads up, dear agency owner! 

You’ll most likely get to a crossroads in your journey where you have to decide whether to continue to cast a wide net or niche down. 

When you get there(or if you are there now), the first thing you should know is that there is absolutely nothing wrong with reaching this point of consideration. The truth is, it is a necessary decision to make if your goal is to scale things up.

Already, you may be used to offering a wide range of services. No doubt this is profitable. However, such a broad approach may be harder to scale. You will find yourself shuttling between growing your agency and pretty much trying to be and do everything for everyone.

On the other end of the spectrum, you’ll be adopting a more finetuned and narrowed-down approach that opens up your agency to scalable growth. And this is one of the advantages of choosing a niche for your agency.

Niching Fears

As you approach the uncharted territory of a niche agency, it is normal to have some fears. As Mike Killen puts it:

“Niching down is a bit like content. Everyone preaches about why we should do it. Yet when it comes to ourselves, we have a problem where we’re biased to our own reasons as to why we can’t do it.”

Of course, the thought of shedding off several services to focus on one can be scary. You’ll have a lot of questions running through your mind. The good news is you are not alone. And it is okay if you don’t know the first thing about niching as a digital agency owner.

These fears, even though valid, are not insurmountable. Let’s take a moment to examine some common fears agency owners have expressed when deciding to settle for a niche.

  1. Missing out on other high paying clients
A man staring at an apple laptop

The thought that your agency will be settling for a niche can set you in panic mode. You sure will have a few questions bugging you.

What happens when word gets out that your agency now focuses on one service? Does it mean you will have to turn down other high-paying clients seeking a service outside your niche?

The answer is NO. You don’t have to turn down high-paying clients simply because they fall outside your niche. 

The idea behind niching your agency is that you target a defined audience with a specific service offer. This means you will focus more on understanding the pain points of that audience and tailoring your service to meet their needs. 

You are not limited to that service. You are just more focused on it. You are setting yourself apart as an expert in that niche. 

  1. The fear of picking the wrong niche

You may find yourself obsessing over the thought of picking the wrong niche. And this fear may be one of the reasons why you are hesitating to commit to one for your agency. 

What happens if, after a few months of investment into a niche, you realize you are not as passionate about it as you thought you would? Or what if it’s not just the right one for you?

The truth is, there are no guarantees that you will get it right the first time. And you will never really know until you take the risk to find out. If you pick the wrong niche, you can always step back to review and refine your choice. 

PS: Keep reading, and you’ll discover a few steps that you can take to help you pick the right niche.

The Plus Sides of Niching Down Your Agency

  1. It helps to create your unique selling point (USP)
A man and a woman high-fiving in an office

Niching down makes it easier to create a unique selling point for your agency. More so if you are starting as a niche agency.

When you are offering generalized services, you’ll have a tough time touching all the points in your branding message. But when you niche your agency, it is easy to zero in on the strong points that make your specialized services stand out.

Over time, as your niche becomes your forte, you would have built up enough credentials to strengthen your unique selling point. These credentials like case studies, testimonials, unique brand identity, et cetera, all serve to prove your credibility in your niche. And there is no telling how much this will set you apart from your competition.

  1. Limit your competition

Will you have competition when you niche your agency? Well, yes, but it will not be as much as when you were still offering a wide range of services. 

There are a ton of agencies offering general services, all fighting for the attention of the same target audience. By niching your agency, your target audience is more streamlined. And it is a suitable way to break out from the stiff competition.

With your competition minimized, it becomes easier to study and analyze the strategies of your competitors. You’ll also be able to capitalize on their weaknesses to serve your audience better.

  1. Customer loyalty

There is an abundance of agencies offering generalized services. But finding an agency offering specialized services that meet specific needs is more or less a chore for consumers. 

So what do you think happens when they discover your niche agency that focuses on solving those specific needs?

For starters, they will most likely become dependent on your services. Such customer lock-in breeds loyalty and helps to spread brand awareness. Already, it is hard to find other agencies offering the same specialized services. So it is unlikely that they will look elsewhere.

However, you must understand that such loyalty lasts as long as you continue to offer valuable services in your niche. If you compromise your standards and start offering services under par, chances are they will walk out your door.

  1. Better targeting
A macbook air on a table 

Online and social media marketing campaigns thrive on a well-targeted audience. The odds that you’ll get your targeting right with a large, widespread audience is high, especially when you have a limited advertising budget. Usually, it will involve a ton of A/B testing and optimization. 

On the other hand, it is easier to cut through the noise when targeting a niche audience. This time, you’ll be dealing with a smaller and more defined audience. Through market research, you understand your niche audience better. It is easier to define pain points, map out demographics, income brackets, et cetera.

With such detailed targeting, you’ll be able to maximize your campaigns for more effective results.

  1.  Improved SEO

Aside from the existent competition between agencies, there is also a competition online for keywords and ranking. Some keywords are more sought after than others. And this is a result of saturation in the online marketplace.

With a niche agency, the competition for keywords is not as stiff. By optimizing your website to portray specific keywords, you improve your SEO. You’ll have a better chance at ranking high for niche-related keywords and attracting more targeted traffic to your business. 

Picking a Niche for Your Agency

Now that you know the benefits of niching your agency, it is time to beat procrastination and get it done. The steps outlined below will help you get started.

  1. Define your passion and interests.
Two women using laptops

It is easy to ignore this factor when choosing a niche. By all means, don’t. 

You can indeed choose a niche you are not passionate about. But what happens when five months down the line, you are no longer excited about it? The truth is you’ll not be as productive as you should if you are not the least bit interested in the niche you choose. Chances are, you may even quit at the slightest setback.

So firstly, define your passions and interests. If you are currently offering generalized services, write a list of the services you enjoy offering. The same applies if you are starting as a niche agency. With the list, you can begin honing in on a niche. Of course, this requires you to put your strengths into consideration.

  1. Research your target audience

No matter how passionate you are about a niche, if there is no starving audience craving the service you wish to offer, there is no point committing your time and resources to it. 

This is why it is crucial to conduct detailed research and analyze your target audience. You need to determine if there is a ready market for your niche service. This research also helps you understand the pain points of your target audience better so you can customize your services in a way that solves their problems. 

  1. Analyze your competition

Now you have identified a niche you are passionate about and studied your target audience. The next step is to analyze your competition. These will be agencies that have been around that niche space for a long time. 

The goal of your analysis will be to identify their strengths, weaknesses, unique selling points, among other things you need to learn to make your agency stand out. 

  1. Evaluate the scalability of the niche

Evaluating the scalability of the niche you have chosen is crucial to assess its long-term profitability. You want to be sure that the niche you chose will offer growth opportunities. 

Get Started

It is the dream of every agency to grow. Niching down your agency might be a step in the right direction. And honestly, It is nothing to be scared of. 

Be sure to do your due diligence. Settle for a niche you are passionate about. One you will very well be excited about even when you experience setbacks. Remember, you are not stuck in the niche you choose. If you face challenges, you can reaccess your strategy and try again. We are rooting for you.

At GoWP, we have a niche agency owners group on Facebook. It is a fantastic place to ask questions, learn, share your experience, and get insight from agency owners who have been there before. We also have weekly happiness hour calls every Friday, with some of the best minds in the agency business.

Feel free to join the community.


Jennifer Alimasunya

Jennifer Alimasunya

Jennifer is a dedicated copywriter for GoWP, a company that provides exceptional outsourced Wordpress services to help agencies grow. She lives in Lagos, Nigeria. In her spare time, she writes and records music.

You’ll be joining a community of highly-vetted digital agencies and web professionals with one common goal — growth! Learn more. 


The Landing Page Builds service includes:

  • Unlimited page builds for one monthly rate
  • Dedicated account manager
  • Dedicated WordPress developer
  • At least 2 hours of daily dev time
  • Daily progress reports
  • Find out more here

The Content Edits Plan includes:

  • Unlimited content edits
  • White label help desk
  • Support ticket dashboard
  • 24/7 team of WordPress experts
Plus, everything in our Maintenance Plan:
  • Visual Validator WordPress updates
  • 90 days of off-site backups
  • Daily security scans and malware cleanup
  • Maintenance dashboard
  • Find out more here

The Maintenance Plan includes:

  • Visual Validator WordPress updates
  • 90 days of off-site backups
  • Daily security scans and malware cleanup
  • Maintenance dashboard
  • Find out more here