Investment-Inspired Techniques to Diversify Your SEO Agency Client Portfolio

What is your monthly recurring revenue versus fixed income? What type of industries or verticals do you cater for? Are you targeting new segments?

Understanding Your Portfolio Status

The first step in starting to create a working strategy for hedging is evaluating the current status, which will help you answer all the questions above.

What Is the Health of Your Current Customers’ Accounts?

One lens of analysis is the health of your client portfolio which, as an SEO agency, you can get very specific in defining.

Here are the variables you can include when assessing a client’s profile:

Various methods can be employed for tracking the health of a client, but a semaphore system helps in quickly prioritizing your account managers’ energy.

Creating a health scale of good – average – bad that you can scan in green – orange – red for each client will not only let you know what businesses are struggling or growing but will give you an overview of your portfolio that you can compare with the desired version.

If you need to understand the connection between your client portfolio and your cost structure, you can also review the resources involved for each campaign in terms of man hours, allocated budgets versus reality, and so on. Or maybe you already have an operational dashboard at hand and you can export the one-year data for analysis.

How to Assess Your Clients’ Industry / Market Segment

Another lens to use when analyzing your current portfolio is the state of the clients’ industry. In today’s uncertainty, looking at the search volumes movement and the year-over-year trends is critical to track fast changes as search data shows where demand is.

Evaluating what’s a fad and what’s here to stay in terms of consumer behaviors and industry or market trends will help you further your assessment.

For instance, a clear cut “here to stay” trend is remote working, especially for the tech industry. If you have clients in the ecommerce or Home & Deco industries, then they’re positively impacted with demand for home office equipment (furniture, webcams and headsets, ergonomic chairs etc.), as those tech companies are making sure their employees have the best context for work.

Another growing industry that is pretty straightforward is online education – an opportunity for clients in this segment or, even, for other clients to enter the world of online courses and webinars-creation:

Analyzing search trends for each client will bring you clarity regarding the state of their industry, so you’ll now have a complete picture of your portfolio:

Hedging Your Client Portfolio

Now, after the first step of evaluating your status quo, you can direct yourself to actual hedging – finding more of what industries and segments you should target.

There are a number of avenues to try when diversifying your portfolio, so let’s see what each entails.

Diversification by Industry

If you discovered the ratio of growing and decreasing industries already existing in your portfolio, then you can bring diversification to it to balance your risks.

Let’s take as an example an SEO agency that identified 30% of their MRR as pertaining to Travel. In COVID-19 times, this industry dropped by 50%. In order to apply the hedging strategy, they should drop their Travel MRR to 15% and “move” the other 15% in a growing industry like “Home & Deco” or “Health” to minimize the impact.

So based on the percentage of MRR each industry represents in your portfolio, your own preferences or expertise, and the search data highlighting trends, you can decide which industries to further invest in and which industries to balance out.

Or maybe you think it’s time to explore a new industry that is currently growing, as search data indicates a steady trend. Perhaps something like “Wellbeing”, “Fashion” or “Home improvement”.

Diversification by Vertical

If you have deep expertise in a certain area or even a strategic positioning that only caters to a specific vertical like Jazel Automotive or Gladiator Law Marketing, then diversification will take a different approach, so as to further expand your know-how.

Continuing our travel example, an SEO agency specializing in this vertical at an international level can hedge its portfolio by targeting travel insurance businesses or companies specialized in the recovery of flight expenses.

Another example would be an SEO agency focused on banking services that can further expand their expertise into fintech, targeting thriving startups and SMBs.

Think about ways that your expertise connects to other businesses in the same direction and what parts of it are translatable to those companies. That’s how you manage to balance your portfolio while maintaining your unique selling point.

Diversification by Geography

Whether your agency caters to a specific vertical or multiple industries, at some point you can ponder expanding your market reach. Hedging your portfolio through geography is, as its name suggests, diversifying the countries you sell your services in.

For instance, take these two agencies into consideration – Studio45, an India-based SEO agency and Dubai SEO Agency partnered so they can have access to new markets and expand their digital marketing offerings to new clients.

Through key partnerships or deciding to open your services to a larger market (say from Canada to North America) or an international market, diversification by geography lets your agency balance growth in terms of exploding versus tanking places.

Diversification by Turnover

One last form of diversification that we’re addressing is that by turnover.

After understanding how each client’s contract influences your MRR, you can draw some conclusions on what type of businesses you want to further target (startups, SMBs, enterprises etc.).

This step is all about research – check startup funding rounds, VC funds, and accelerators and see which businesses are getting investments, look at companies that continue to hire senior-level professionals on LinkedIn, maybe again use search data at a niche level to identify how a certain business stands.

There’s also a caveat here that can further help you in making the decision – the hard part of diversifying a portfolio while looking at the financial data may include a need to downgrade a customer that grew too much. Ideally, you shouldn’t have your portfolio dominated by one or two big companies, as it will be harder to mitigate risk.


Hedging through diversification, as a strategy to create a risk-adjusted client portfolio, involves a lot of research and a deep understanding of your agency status:

Yet, the advantages of this approach are consistent:

There are some disadvantages you need to be aware of:

To make it easier for SEO agencies to keep up to date with the client portfolio health status, we, at SEOmonitor, developed the Client Health Tracker.

As part of our agency dashboard, the health tracker helps you monitor the bad-average-good scenarios and periodically sends you alerts to know the state of your clients.

And for tracking search data at a keyword, niche, and industry level, we developed Search Trends. It’s a free tool based on year over year data that supports SEO agencies identify exploding or tanking keywords, analyze a specific website or look at a specific industry through the main keywords they’re ranking for.

These are just a part of our solutions to help SEO agencies acquire, manage, and retain more customers. Join us in our journey to bring more transparency to the SEO industry.

Bonus Tip

You can use search data in your acquisition process as well.

In order to get the attention of a potential customer, you don’t have to go the traditional route, but try to earn it through great insights. Finding out what their competitors are up to and leveraging that data as a conversation starter can help you create a favorable impression while showcasing your expertise.

With our Search Trends tool, especially the Niches feature, you can find those relevant insights to show your targeted business what their competition looks like.

Translate »