The Art of Saying No to 99% of the Market
Most businesses try to get bigger by getting broader. They chase more customers, more markets, more everything. But sometimes the path to growth means doing less, not more.
I recently studied a recruiting firm that grew from $1M to $12.5M in revenue by systematically shrinking their target market. Yes, you read that right. They shrank to grow.
They started where most do - casting a wide net, doing lead generation for $3-4k per month per client. Good money, but not great. Then they noticed something interesting: their clients were making $50-100k per placement using those same leads. That’s when they decided to change the game.
Instead of serving everyone, they picked their spots. Law, finance, private equity. Instead of chasing volume, they chased value. Their average placement fee jumped to $54k. They found their sweet spot in specialized roles like female CFPs and CPAs returning to the workforce. The old saying “riches are in the niches” isn’t just clever - it’s true.
But here’s where it gets really interesting. Most recruiting firms run lean with 1099 contractors working remotely. This firm did the opposite. They built depth - seven touchpoints per client relationship. They hired W2 employees, added middle management, and created clear career paths. They even preferred hiring people without recruiting backgrounds, paying high base salaries ($80-100k) to attract subject matter experts.
The conventional wisdom says “stay lean, maximize commission splits.” They said “let’s build an actual company.” They implemented EOS (Entrepreneurial Operating System), set quarterly goals, and invested in infrastructure before they needed it.
Their marketing evolved too. While others blast endless email campaigns, they focused on building genuine relationships. They traded traditional lead generation for thoughtful demand generation. They became known experts in their verticals.
Culture wasn’t an afterthought - it was the foundation. They installed a “no asshole policy” (yes, that’s the technical term), displayed core values prominently, and emphasized collaboration over competition.
The results? Individual producers billing $700-800k annually. Teams hitting $1M+ per vertical. Total revenue growing to $12.5M. But more importantly, they built something sustainable and professional in an industry often known for neither.
The lesson isn’t just about recruiting. It’s about having the courage to say no to 99% of the market so you can say yes to the 1% that matters. It’s about building deep instead of wide. And sometimes, it’s about doing the opposite of what everyone else is doing.
That’s not just good business. That’s great business.