Starting an SEO business (or any business) requires incredible resilience, determination and good old-fashioned bullheadedness to succeed. This much is certain. My product can decimate the time it takes get started, but make no mistake that owning any successful venture will be a stroll through the playground. I’m sure Rand Fishkin himself would agree with that particular sentiment.

Still you ache for the consummation that creating your own business can only bring. Fortunately for you my friend, you don’t need to be SEOMoz to be a success in this industry.

Set Realistic Goals

Its human nature to be disheartened by existing competition. It’s the type of discouragement that prevents many an online entrepreneur from even trying. The mountain seems too high to scale and may not be possible to climb in the first place. But to know whether or not you can indeed conquer the bluff, you must be willing to take the first step forward.

It took SEOMoz years to weave their many “buckets”: a membership site, consulting, trade shows, a paid marketplace directory, DVDs. And don’t expect it to take you any less time to create something similar.

But all this doesn’t mean you can’t be a success with less. Define what success means for you. If it’s simply being able to provide a comfortable living for yourself and family. This will make the process infinitely easier. If you intend to be an industry leader, you’ll have some work to do.

Niche Down

In the beginning, most entrepreneurs agree to niching down. This is easy when providing SEO services. Become an “expert” in providing search-engine optimization services for a specific industry. Plastic surgeons, lawyers, chiropractors, auctioneers, restaurants, psychics, it doesn’t matter. Just wipe the dust off your local phone book and start seeking out opportunities. This one of the fastest and best ways to become recognized in an industry.

Imagine being the first person to introduce the concept of SEO to a group of chiropractors at the local back and spine convention. An incredible opportunity no doubt. But the thing is, opportunities like this exist everywhere right now. Start developing an SEO business that caters to a specific niche and you’ll be successful.

Pace Yourself

I’m progressing forward with my own business in much the same way, step-by-step. Even in the creation of this website, I don’t even have a product to sell while writing this post! Yet the ultimate goal always remains in sight. I can’t conquer the mountain in a single bound, but with continual progress I know that I will.

Remember, becoming an industry leader takes time. There’s no shortcuts to building brand recognition and trust among clientèle. But with handwork, persistence, and some strategic niching down you can be successful.

I’ve got a secret. Most successful SEOs don’t build their client list through paid or organic search traffic. In fact, many don’t need to advertise at all. How do they do it? By leveraging the networks of their existing clientèle to uncover new customers.

This might sound like an obvious strategy, but it’s one that’s being overlooked by SEO companies. Most important, this approach works and there are a couple core reasons this technique is so powerful when acquiring new clients.

Immediate Trust: As an SEO professional you might find this hard to believe, but its absolutely true. Most small-business owners have a difficult time finding an SEO company they can trust. A recent phone conversation with a prospective client opened my eyes to this common problem. Nearing the end of a call the prospect shared some of his past experiences of SEO companies courting his business when he shared his dissatisfaction with the process. “The only thing SEO companies make you want to do, is not make any decision at all.” he explained.

But by coming into this conversation as a referral, I’d already established trust. This lowered the prospects guard and allowed us to have a candid talk about what his needs and the workload involved for success. If I had not entered the call as a trusted resource, it would have been much more difficult make this connection.

Higher Conversion Rate: Nothing is more painful than courting a client–or woman–for a month or two just to have them run off to a competitor. Although this will happen from time to time when operating an SEO business, you can cut down on these situations with solid referrals.

Now that we’ve covered the benefits of using referrals to build your SEO business, let’s look at some easy ways to start building those referrals now:

Ask for referrals. Sounds too easy right? Many companies don’t think to do it. Numerous clients might happily provide you with additional contacts. But if you don’t ask them, it’s unlikely the thought will ever cross their mind.

Follow up on referrals. And ask your clients about them regularly. On your next phone call try asking, “Have you spoke with anyone who could benefit from my services?” Train your clients to be on the prowl for possible contacts and you’ll have more work than you know what to do with.

Help clients identify good prospects. For example, if you’re working with a law firm they no doubt have a number of profitable contacts they represent. Explain what makes a good connection and the types of businesses you can help.

Get Introduced. Don’t just get a name and telephone number. That’s almost useless. Set up a conference call where the existing client can introduce you and your business. From there you can explain how SEO services would improve his or her business.

In conclusion, leverage your clients’ social networks. Your clients’ suppliers, vendors, consultants and contractors could all use improved online visibility. Next, implement these referral building techniques to develop your client list even further. It’s the cheapest and easiest way to grow your SEO business.