- Joined
- Nov 7, 2019
- Messages
- 225
- Reaction score
- 64
- Points
- 83
To provide some context, I have been operating a small Instagram agency for around two years. Through this experience, I have gained valuable insights into sales, marketing, failures, and interpersonal dynamics. However, the agency has not been as successful as I had hoped. Although it has generated some income, it is more of a cash flow business than a fast-growth venture. Even if I were to scale it up to $100k a month, it would demand a significant amount of time, management, and constant client acquisition.
However, there are several significant concerns with this type of business model, such as a lack of control. Instagram has the power to delete my account or my clients' accounts at any time without warning. Furthermore, there may be an outsourced person from a foreign country, such as India, with complete control over everything I do. Additionally, the app has become more tyrannical and politically influenced in various ways over the past few years. Instagram is not the same platform it was eight to ten years ago. Even when creating an account for a client, it requires constant verification through emails, phone numbers, and verified selfies. The platform claims it is for security reasons, but this is not entirely accurate. Instagram does this to track your IP address to obtain as much information as possible and scan your face for future projects, such as their recent meta initiative, so they can sell you more ads.
Moreover, there are weak entry barriers in this industry. We are competing with people on Fiverr who offer their services for as little as $100 per month, despite their lack of expertise. Additionally, a 12-year-old girl could start an Instagram agency within a few days if she were to learn the intricacies of the platform, such as hashtags, content creation, reels, watch time, and engagement. There are countless marketing agencies in the market, and although I could work tirelessly for the next decade to transform it into an eight-figure company, I would still lack control over the situation. Moreover, given how rapidly technology is advancing, such as with the rise of Meta, it's unclear if Instagram will even exist in the next decade.
Furthermore, scaling this business to $200k or $300k per month appears challenging. The only way I can envision achieving this is by exclusively collaborating with multi-million dollar corporations where we can charge them between $3k to $5k per month. My mentor has adopted this strategy, primarily working with personal brands as a "coach." However, I do not aspire to be known as a coach. Instead, I aspire to be a genuine entrepreneur who has established a company that provides people with opportunities to improve their lives. Currently, we primarily work with car dealerships, charging between $500 to $1000 per month. If we start targeting high-end car dealerships, yachts, or prestigious markets, then I can see clients justifying that price. However, the average person on the street may not be willing to pay our fees. Many clients have deemed us too expensive, which is surprising. Perhaps this is because we work with car dealerships, and they are typically bargain hunters due to the nature of their business - buying low and selling high.
The business requires a significant amount of time investment. Currently, I am the only one running the agency with a few clients. For marketing agencies to reach seven or eight figures, they typically have large sales teams and hold daily meetings to close deals. Even if we expand to 10 employees, it will still require me to operate in the business instead of being an operator of the system, which is not the ideal situation.
After running a small Instagram agency for two years, I've learned a lot about sales, marketing, failure, and people. However, the business is not a fast one as it requires a lot of time, management, and constant client hunting. There are also some major red flags, such as a lack of control due to Instagram's ability to delete accounts at will and weak entry barriers, which make it difficult to compete with cheaper services. Additionally, scaling the business to $200k or $300k a month would require working with multi-million dollar companies, which may not align with my desire to build a company that gives people the opportunity to work and improve their lives. Finally, our niche may not have the best need for our services, as many car dealerships in the UK already advertise their cars on multiple websites and some people are not interested in social media. Despite these challenges, I believe I have a solid business idea that I've been considering for over a year.
Positives :
This idea has tremendous potential for scale and growth. Based on my estimates, it could become a $50 million to $100 million company in the next 4 to 8 years. Additionally, the business model has the potential to be highly passive since the clients will be responsible for completing the work themselves, rather than us doing it for them. With effective marketing, the website could attract tens or even hundreds of thousands of visitors per day.
The business will offer time freedom as the website and marketing will handle most of the workload. We'll only need a programmer to create a fully functional website and a customer service assistant. As the business expands, we'll bring on more employees, but the goal is for me to be managing the system rather than actively working in the business.
High entry barriers. Starting this business would require a substantial investment of a few thousand dollars in marketing and website development, which is crucial. We need a functional website with a good user interface and a relational database on the backend to store login credentials and account IDs. As the business grows, we'll need more programmers to maintain the servers. Our skills in Instagram marketing will come in handy for driving traffic and attracting visitors. There are only a few competitors in our niche, with one being a dominant player, but many people dislike that website and opt to sell their products on social media instead.
The business will be fully under our control and not subject to the whims of big tech companies like Facebook or Instagram. We will be the ones in charge and at the top of the pyramid.
The demand for a replacement in the reviews section is high, as many people prefer showcasing their products on Facebook rather than using the current options.
Our Advantages :
I have been considering moving to the US and registering my new corporation in Norway. However, this would mean that I need to find a Norwegian customer service assistant in California or Florida who is fluent in Norwegian, which could be a challenge. Additionally, we would need a toll-free number, which may make it more difficult for Norwegians to reach us. Although my dream of living in Malibu and buying the next Aventador SVJ will have to wait until the company generates at least $10m-$20m in revenue.
Should I remain in Norway for the next 4-5 years and grow my business into an empire before moving to the US? Remote staff is a possibility, so that's not a concern. I'm seeking advice on what to do. Thank you.
However, there are several significant concerns with this type of business model, such as a lack of control. Instagram has the power to delete my account or my clients' accounts at any time without warning. Furthermore, there may be an outsourced person from a foreign country, such as India, with complete control over everything I do. Additionally, the app has become more tyrannical and politically influenced in various ways over the past few years. Instagram is not the same platform it was eight to ten years ago. Even when creating an account for a client, it requires constant verification through emails, phone numbers, and verified selfies. The platform claims it is for security reasons, but this is not entirely accurate. Instagram does this to track your IP address to obtain as much information as possible and scan your face for future projects, such as their recent meta initiative, so they can sell you more ads.
Moreover, there are weak entry barriers in this industry. We are competing with people on Fiverr who offer their services for as little as $100 per month, despite their lack of expertise. Additionally, a 12-year-old girl could start an Instagram agency within a few days if she were to learn the intricacies of the platform, such as hashtags, content creation, reels, watch time, and engagement. There are countless marketing agencies in the market, and although I could work tirelessly for the next decade to transform it into an eight-figure company, I would still lack control over the situation. Moreover, given how rapidly technology is advancing, such as with the rise of Meta, it's unclear if Instagram will even exist in the next decade.
Furthermore, scaling this business to $200k or $300k per month appears challenging. The only way I can envision achieving this is by exclusively collaborating with multi-million dollar corporations where we can charge them between $3k to $5k per month. My mentor has adopted this strategy, primarily working with personal brands as a "coach." However, I do not aspire to be known as a coach. Instead, I aspire to be a genuine entrepreneur who has established a company that provides people with opportunities to improve their lives. Currently, we primarily work with car dealerships, charging between $500 to $1000 per month. If we start targeting high-end car dealerships, yachts, or prestigious markets, then I can see clients justifying that price. However, the average person on the street may not be willing to pay our fees. Many clients have deemed us too expensive, which is surprising. Perhaps this is because we work with car dealerships, and they are typically bargain hunters due to the nature of their business - buying low and selling high.
The business requires a significant amount of time investment. Currently, I am the only one running the agency with a few clients. For marketing agencies to reach seven or eight figures, they typically have large sales teams and hold daily meetings to close deals. Even if we expand to 10 employees, it will still require me to operate in the business instead of being an operator of the system, which is not the ideal situation.
After running a small Instagram agency for two years, I've learned a lot about sales, marketing, failure, and people. However, the business is not a fast one as it requires a lot of time, management, and constant client hunting. There are also some major red flags, such as a lack of control due to Instagram's ability to delete accounts at will and weak entry barriers, which make it difficult to compete with cheaper services. Additionally, scaling the business to $200k or $300k a month would require working with multi-million dollar companies, which may not align with my desire to build a company that gives people the opportunity to work and improve their lives. Finally, our niche may not have the best need for our services, as many car dealerships in the UK already advertise their cars on multiple websites and some people are not interested in social media. Despite these challenges, I believe I have a solid business idea that I've been considering for over a year.
Positives :
This idea has tremendous potential for scale and growth. Based on my estimates, it could become a $50 million to $100 million company in the next 4 to 8 years. Additionally, the business model has the potential to be highly passive since the clients will be responsible for completing the work themselves, rather than us doing it for them. With effective marketing, the website could attract tens or even hundreds of thousands of visitors per day.
The business will offer time freedom as the website and marketing will handle most of the workload. We'll only need a programmer to create a fully functional website and a customer service assistant. As the business expands, we'll bring on more employees, but the goal is for me to be managing the system rather than actively working in the business.
High entry barriers. Starting this business would require a substantial investment of a few thousand dollars in marketing and website development, which is crucial. We need a functional website with a good user interface and a relational database on the backend to store login credentials and account IDs. As the business grows, we'll need more programmers to maintain the servers. Our skills in Instagram marketing will come in handy for driving traffic and attracting visitors. There are only a few competitors in our niche, with one being a dominant player, but many people dislike that website and opt to sell their products on social media instead.
The business will be fully under our control and not subject to the whims of big tech companies like Facebook or Instagram. We will be the ones in charge and at the top of the pyramid.
The demand for a replacement in the reviews section is high, as many people prefer showcasing their products on Facebook rather than using the current options.
Our Advantages :
- Our customer service is much better than the current monopoly. They have a reputation for slow response times of 4-5 days.
- Our platform will support multiple languages including Polish, English, Arabic, and others, to cater to the diverse population in Norway which includes around 10-15% of people of foreign ethnicity.
- Our pricing will be more competitive, making our product more accessible to the masses.
- We offer an easier login process without the need for a Norwegian ID number. Users can simply use their phone number or email to sign up, which is particularly beneficial for immigrants who may not have their ID number yet.
I have been considering moving to the US and registering my new corporation in Norway. However, this would mean that I need to find a Norwegian customer service assistant in California or Florida who is fluent in Norwegian, which could be a challenge. Additionally, we would need a toll-free number, which may make it more difficult for Norwegians to reach us. Although my dream of living in Malibu and buying the next Aventador SVJ will have to wait until the company generates at least $10m-$20m in revenue.
Should I remain in Norway for the next 4-5 years and grow my business into an empire before moving to the US? Remote staff is a possibility, so that's not a concern. I'm seeking advice on what to do. Thank you.
