Have you already been an investor? If yes, diversifying the client portfolio would be more attainable for you. In this competitive domain, revolving around one industry or client type is not practical.
As an SEO agency, you may have witnessed many businesses shutting and many industries going down in the pandemic. At the same time, you must also have learned that many businesses operate in full fledged despite challenges due to their operating approach and needs during the current scenario.
As an agency, you always anticipate a good rate of success around the year. Regardless of the industry forecast or predictions, you would want to play safe by diversifying your client portfolio.
In such cases, seeing from the lenses of investors would always be helpful for you. Investors usually have a great practice in risk mitigation. They reduce the chances of loss by investing in various shares to manage risk and achieve a balance.
To describe it using an example, let’s say you have bought shares from Audi. You think Audi has a long-term market value that would offer you success. But at the same time, you would also have a fear that Audi may not be able to deliver products per client demand.
This would reduce share value. In such cases, to mitigate risk, you will buy shares from other companies that are way more different than your previous share. In investment terms, it is also known as hedging.
Hedging means picking a share or investing in an asset to reduce your risk of price movement in your previous share. Hedging is a great approach to balance your investment portfolio.
You can also use the same formula to balance your SEO client portfolio, as risk management and client movement are part of every business. Here is why you should diversify your SEO agency Gold Coast client portfolio to reduce risk.
Understanding Whether You Need To Diversify Client Portfolio
Before you start hedging to plant safely, you need to analyse the risk and health of your current client. Here are some following determinants that will answer your greatest doubts about the client’s health in the market.
- What is the MRR or monthly recurring revenue of your client?
- Determining the goal you have set, and how is the campaign performing now?
- Numbers of conversions and monthly sessions
You can measure your current client portfolio health status by evaluating their monthly revenue. If the revenue is remarkable and won’t get affected in the future, you can hold on to the client. You can also use the past five years’ data and analyze surges and falls in revenue.
Besides, it’s a green signal if your campaign is quite performing as desired before initiating the campaign. However, if you determine uncertainty, you must start hedging immediately.
How Can You Examine Market Segments And Client Industry?
It is another lens to evaluate whether your current client portfolio would still offer you profit in the future. You can assess your current client portfolio using two measuring scales. It includes consumer behavior and market trends.
You can always examine consumer behavior by measuring their movements and activities during a particular period. When it comes to market trends, you can examine how consumers are accepting new market trends. For example, online education is a new trend in the education industry. You need to observe how the client embraces it.
Hedging Your Client Portfolio
After all analysis and examination, if you feel your current client portfolio is unstable, you should start hedging by diversifying. You can research to determine what industry is growing.
Based on MRR, you can bring in new clients to balance risk. In terms of geography, you can also expand your reach to a more robust client portfolio; you can partner with local agencies outside your boundary to bring balance.
Conclusion
Wrapping up, an investment-driven approach to diversify client portfolios is a definitive way of balancing risk. You can start hedging like investors to make a profit with diverse companies. However, make sure about market status and analysis before hedging.
We hope this article about investment-driven approaches to diversify your SEO agency client portfolio in Gold Coast is helpful to you. Do share this content on social media if you find it useful for you in any manner.