4 Things to Verify Before Committing to a Vertical
Corey Quinn
Founder, Deep Specialization™
Before pulling the trigger on a vertical, it pays to verify these 4 things, personal fit, existing metrics, market size, and affordability, to avoid wasted time.
Every agency founder I meet with knows which client vertical they want to focus on.
And they're usually right.
But, before pulling the trigger, it pays to prove out these 4 things:
Do we really like working with this segment? (don't downplay this one)
Do the existing client metrics for this segment line up? (retention, revenue, etc.)
Is the segment's market large enough to justify targeting? (the more businesses, the better)
Can the typical business in this vertical afford our fees? (look at their average revenue)
Knowing this in advance will CUT poor-fit verticals and wasted time.
CQ
Frequently Asked Questions
Why does personal enjoyment of working with a segment matter as much as the data?
Because sustained specialization requires genuinely enjoying the work over the long haul. Downplaying this factor risks committing to a vertical that looks good on paper but feels draining day to day.
Why check existing client metrics like retention and revenue before committing to a vertical?
Because real evidence from current clients in that segment reveals whether the fit is actually strong, rather than relying on assumption or intuition alone.
Why does market size matter when evaluating a potential vertical?
Because a vertical needs enough businesses to justify the investment of specializing in it. A promising-feeling niche with too few potential clients limits how much growth it can actually support.
Why check whether the typical business in a vertical can afford the agency's fees?
Because average revenue in that vertical determines whether pricing will actually be sustainable. A great-fit vertical on paper still fails if the typical business can't realistically afford the service.
What's the actual benefit of checking all four factors before committing?
Cutting poor-fit verticals and avoiding wasted time. Verifying fit, data, market size, and affordability upfront prevents committing fully to a vertical that wouldn't have held up under closer examination.
About Corey Quinn
Founder, Deep Specialization™
Corey helps founder-led agencies scale through Deep Specialization™ and programmatic M&A. Former CMO of Scorpion ($20M to $200M). Author of "Anyone, Not Everyone."
