Why Your Marketing Agency Desperately Needs to Diversify Its Revenue

How much does your agency make? It seems that more and more agencies are focusing on specialized niches to address specific pain points rather than trying to serve as a one-stop-shop for their client's marketing needs.

You can focus on the tasks you do best. Both graphic design and lead generation are under the marketing umbrella, but they require different skills. This can make an agency overly reliant on one source of income.

Changing market conditions and new competitors can quickly sink an agency with only one main revenue stream.

Even the most "established" marketing channels can be vulnerable as a result of Facebook's disappointing recent quarter. The platforms that haven't been so lucky include Facebook.

The two social media platforms that used to have millions of users are no longer around. There is still a shell of its former self. The death of your agency would be caused by the decline and collapse of any of these platforms.

Diversification isn't just about protecting your finances. Adding new products or services will make your business more profitable by giving clients a new way to engage with you. New revenue streams will help you build brand authority when executed well.

The combination of this makes your agency more sustainable and better equipped to weather the changing nature of marketing.

There are a lot of ways that a marketing agency can make money. During a recent meeting with Itzik Levy, founder and CEO of vcita, it became obvious that this was something that was present. He and his company collaborated with FCR Media out of Belgium to release a co- branded version of the vcita platform called Sitee.

By partnering with a software company, the agency was able to broaden its target market by offering a self-service track for its customers, as well as broadening its revenue stream by partnering with a software company. Thanks to better visibility into their clients' needs, the agency was able to upsell on a more tightly targeted basis.

There are mutually beneficial partnerships that can increase the efficiency of marketing agencies. Agencies can become much more profitable by collaborating with software providers and other people that can help them reach their target market.

Expanding your reach to serve new audiences is one of the things that marketing agencies should look to do. An agency with an active website could include links to affiliates in posts on topics related to preferred software tools or the internet.

Agencies expand their content marketing efforts and provide paid educational content to their audience Webinars, eBooks, guides and similar content can be used to grow your client base. You can shift to a paid model after establishing a reputation for producing quality content.

Marketing agencies shouldn't be afraid of expanding to new areas that are related to their core competencies. Adding online reputation management to your agency's offerings could prove popular with many clients. You could have more confidence in your ability to deliver quality results if you use social media for reputation management.

You should be able to identify additional revenue streams if you assess your organizational strengths and weaknesses. No matter what happens in the market, you will ensure a more stable and profitable future by creating new sources of income.