Why Tech startups are the perfect customers for your digital marketing agency. If you provide digital marketing service, you probably have faced a problem when the customer pays you for 2-5 months and churns. You may think something is wrong with you, but it's not. They churned because they don't have a scalable business. How can you earn more by providing a service for companies with bad business models? It's impossible. That’s why I recommend you pay attention to the Tech Startup niche. Why selling services for tech startups is so cool? In the beginning, you need to understand how tech startups perform, because the growth model is completely different from common businesses. The main business goal of a startup is to increase the valuation of the company. You can increase valuation only by showing revenue growth. Mind you, I said revenue growth, not net income. This is extremely important to understand. Startup lives from one round of investments to the next round. In most cases, it takes 12-18 months. In that period of time, the startup has to make 2x-10x in revenue. If they don’t, they can't raise money in the next round. On average, startups invest 40-60% of a new round of investments in growth (marketing budgets). I know it because in our startup we do the same. Let's calculate. Startup raised $1.5M. In the next 15 months, they’ll spend around 800K for marketing from the investments + from their own revenue. So, every month they’ll spend 50K+ on digital marketing. You can get a piece of cake from this cash flow. Try to guess what will be next, if you provide real growth. The startup will raise the next round of 5M-10M in Round A investments and continue working with you. So you can work with this startup for a few years. But the question is how to find these startups? I will tell you that in the next posts. Keep in touch.