One of the fine people on my email list recently got in touch with me to ask about their niche.
They're tired of seeing websites with no clear benefit to the business that paid good money for them and that's where they want to specialise. Redoing sites so they actually provide a return on investment. No new sites, just fixing old ones.
Positioned right, this can be a great niche so that's not what I'm going to talk about today. I want to key in on one sentence in the email.
Should I go for it? How common/uncommon you think this speciality is and do you think this has a shot to attract higher paying clients?
Specifically, I want to key in on 'higher paying clients'.
I know I tell you to raise your rates, but higher paying clients don't automatically equal more profit. It might equal more revenue, but more revenue doesn't equal profit. Just look at Twitter.
In a niche like the one above, if it can't be profitable in the $800 - $1200 range then I don't think you can make it profitable at $5k.
In fact, I think it's a requirement to make it profitable at the lower price point before you scale it up. If you can put the processes in place to make it profitable in the lower ranges, then when you increase your pricing you'll be directly increasing your profits.
Listen to today's podcast to here me talk a bit more about the faulty thinking of equating higher paying clients with revenue.