In this episode of the Niche Pursuits podcast, Jared Bauman sits down with Joe Davies, the co-founder of Fat Joe, an agency that specializes in providing premium backlinks and content for agencies.
Joe shares his journey from the early days of SEO to growing Fat Joe into a successful business.
He talks about everything from productization, outsourcing, and scaling a service-based business, and how he earns $12 million a year in revenue with a team of just 15.
Watch the Full Episode
Solving a Common Problem in the SEO Industry
Joe’s introduction to SEO came unexpectedly.
After working in various roles, including at a vending machine company, Joe transitioned into SEO by chance.
By 2012, he co-founded Fat Joe with his business partner, aiming to solve a significant problem they encountered while working at an SEO agency.
Their challenge was finding reliable, high-quality suppliers for backlinks and content. After struggling with inconsistent results from freelancers and vendors, they saw an opportunity in the market to create a service that would consistently deliver premium SEO services, supported by great customer service and easy-to-use systems.
Key Early Decisions
- They identified a gap in the market for a consistent provider of high-quality backlinks and content.
- The decision to outsource rather than build an in-house team allowed them to scale faster.
- By focusing on reliability and customer support, they quickly built a reputation among agencies who shared the same frustrations.
Overcoming Growing Pains in the Early Years
In the early days, growth came quickly, but it also presented several challenges.
Fat Joe was overwhelmed by demand, with far more clients than they could handle. The initial approach involved relying on spreadsheets to manage orders, which became inefficient as the business expanded.
By the second year, they realized they needed to develop software to streamline their operations, making it easier to deliver their services at scale.
Growing Pains
- High demand and inefficient order tracking led to growing pains.
- The decision to build their own software streamlined their processes and improved delivery times.
- The lessons learned reinforced the importance of planning for scalability early on.
The Power of Outsourcing
Fat Joe’s operational success lies in its ability to outsource key functions, particularly content creation and outreach for link building.
Joe explains that while many associate outsourcing with poor quality and lack of control, Fat Joe has successfully scaled by defining clear criteria and building a system that ensures quality.
Joe emphasizes that outsourcing is not about reducing quality, but about finding the right system to manage remote work effectively. By training and onboarding a large pool of writers and content creators, they were able to scale without sacrificing output or quality.
Outsourcing Benefits
- Outsourcing has enabled Fat Joe to scale rapidly without increasing overhead costs.
- They manage a core team of 15 people, supplemented by a pool of outsourced talent, allowing them to take on a high volume of clients.
- The key to success is setting clear standards and criteria for outsourced work.
Simplifying Services for Better Scalability
Fat Joe’s transition to a productized business model has been pivotal in their growth.
Instead of offering generalized SEO services, they broke down their offerings into specific, easily deliverable components like link building and content writing. This approach eliminates ambiguity and makes it easy for clients to understand exactly what they’re buying.
Joe highlights the importance of defining services in terms of components and automating the ordering process. This productized model has allowed Fat Joe to streamline its operations, reduce custom requests, and scale quickly without becoming bogged down in bespoke work.
Benefits of Productization
- A productized service model makes it easier to manage and scale.
- Clients can easily select the services they need, minimizing back-and-forth communication.
- Productization reduces operational complexity, making it easier to project revenue and manage resources.
Targeting the Right Market
When Fat Joe started, they targeted SEO agencies directly, as they understood the pain points of these businesses.
Agencies, in particular, offer a high lifetime value because one client often brings in multiple sub-clients, expanding the scope of business. This focus allowed Fat Joe to scale without spreading themselves too thin.
Over time, they’ve expanded to serve end-users as well, such as brands and site builders, but agencies remain their primary market. Joe notes that agencies value Fat Joe’s service because it fits seamlessly into their larger SEO strategy without the need for consulting.
Key Target Markets
- SEO agencies remain Fat Joe’s most profitable and scalable target market.
- End-users like brands and individual site owners also benefit from Fat Joe’s services but with different needs and expectations.
- By focusing on agencies, Fat Joe can leverage larger contracts and a higher volume of work.
Leveraging Ads and Branding
Fat Joe’s growth strategies include a combination of paid advertising and branding efforts.
Initially, Google Ads helped them scale quickly by reaching customers actively searching for link building services. Over time, they expanded into Facebook ads, but Joe acknowledges that the strategy is more complex with this platform.
Joe also emphasizes the importance of brand building through social media and expos.
Fat Joe stands out by focusing on fun, memorable campaigns instead of getting bogged down in technical SEO jargon. Their branding efforts help create recognition and build loyalty.
Key Growth Strategies
- Google Ads provided immediate results, with a high ROI on targeted search queries.
- Facebook Ads are effective when used with a funnel approach, offering value like eBooks or webinars.
- Brand-building through expos and quirky social media campaigns has helped Fat Joe stand out in a crowded market.
The Importance of Customer Support
Customer service plays a crucial role in Fat Joe’s business model.
Despite automating much of their operations, they maintain a dedicated in-house support team that quickly addresses any issues that arise. Joe highlights the importance of great customer support in maintaining long-term relationships and generating repeat business.
Customer Support Strategy
- In-house customer support ensures fast response times and a high level of service.
- They prioritize resolving issues quickly, even offering refunds when necessary to maintain customer satisfaction.
- A strong customer support system contributes to positive word-of-mouth and repeat business.
Conclusion
Joe’s journey with Fat Joe demonstrates the power of productization, outsourcing, and scaling through smart operational decisions.
By focusing on consistency, building systems for scalability, and targeting the right market, Fat Joe has grown into a successful business with a small but effective team.
Whether you’re running an agency, a cleaning business, or even a SaaS company, the principles of productization and outsourcing can help you streamline your operations and scale faster.
For more insights from Joe, check out his Twitter and LinkedIn, or join the free community for agency owners at Scalers.so.
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