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Powerful Digital Marketing

by Nick Bjorn@Nick_BjornLaunched 2012via Nathan Latka Podcast
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MRR$360k/mo
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The Spark

Nick Bjorn came to digital marketing through eight years of agency experience and a focus on search engine optimization. He co-founded Powerful Digital Marketing in San Diego with two partners, Grayson LaFriends, who handles business development and team management, and Robert Rodriguez, who handles finance. Nick runs marketing.

Building the First Version

The company launched in 2012, and Nick says it started "literally" in a urinal factory, a humble beginning for a business that became a full-service agency. Its first-year revenue was about $500K against a goal of $250K, which Nick described as a result that doubled the target. By 2015 revenue reached $3.2M, and the team grew to about 37 employees largely organically. The agency offers SEO, pay-per-click, paid social, community management, a PR department for outreach, a content department, and web services, which it combines into custom strategies for each client.

Finding the First Customers

The agency works on six-to-twelve-month contracts, which Nick said helps with forecasting and gives SEO time to produce results. Monthly engagements start around $5K to $6.5K, with retainers of $50K or more per month. Nick said the sweet spot is roughly $8K to $12K per month. When asked about current recurring revenue, Nick estimated it was about 364 thousand per month across roughly 60 clients. He also said a 2016 goal of about $6M would be a near-doubling, with a 2017 target of $10 to $11M, partly booked through annual contracts.

What Worked (and What Didn't)

The clearest example is SoccerLoco, a soccer equipment retailer the agency has served for almost four years. SEO has been central, and the agency targeted keywords such as "cheap soccer cleats," where the client ranks second, to liquidate post-season inventory. Its approach relies on topic modeling and interlinked content ecosystems, along with link building. The agency said Google's rules against paid product-review links forced it to move link building to PR professionals who build editorial relationships. Paid ads had previously failed for the client, but the agency later tuned them to a viable conversion rate. The agency also noted that the client initially pushed back on the word "cheap" before accepting that it matched what customers searched for.

Where They Are Now

As of the interview, the agency was about to close 2016 with revenue near its $6M goal and was building its own page-level analytics software. That tool would show each optimized page's traffic, lead generation, and revenue trends over time, reflecting client demand for clearer SEO attribution.

Why It Worked
  • •Long six-to-twelve-month contracts give the agency predictable recurring revenue and enough runway for SEO results to compound.
  • •Because SEO results accumulate over time, clients stay for years, as shown by a nearly four-year relationship with SoccerLoco.
  • •Pairing content, link building, and PR under one team lets the agency answer the full search-demand problem instead of selling a single service.
  • •Adapting to Google's crackdown on paid links by building editorial relationships kept the link-building engine working and protected client rankings.
  • •Building in-house tools for analytics and topic research turns internal workflow savings into a product that addresses client demand.
How to Replicate
  • 1.Sell retainers of several thousand dollars per month on 6-12 month contracts so revenue is predictable and SEO has time to work.
  • 2.Choose keywords with commercial intent tied to a specific client need, such as clearing inventory, and build topic clusters around them.
  • 3.Build interlinked content ecosystems that answer the who, what, why, when, where, and how for each product category.
  • 4.Replace paid product-review links with editorial outreach run by former PR professionals who build relationships with influencers and publications.
  • 5.Track each optimized page's traffic, leads, and revenue over time so clients can see the direct impact of SEO work.

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