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Chapter 2: Positioning Your Expertise

Positioning is the foundation of a successful consulting practice. When you're positioned correctly, clients seek you out instead of you chasing them.

What You'll Learn

  • How to build authority that attracts clients
  • The market share vs. wallet share framework
  • How to establish expert status efficiently
  • The "hot dog vendor" approach to finding clients

Building Authority Through Expertise

"When you're recognized as an expert in your field, client acquisition becomes significantly easier."

This might sound obvious, but there's truth here. When you're perceived as an expert or thought leader, the dynamics of client relationships fundamentally change:

  • Instead of cold-calling potential clients, they seek you out
  • Price becomes less of an objection
  • You can be selective about who you work with
  • Referrals come naturally

A Real Example

Nine months into my consulting work, a breakthrough occurred when a team reached out saying:

"We've had your blog posts in our AI Slack channel for months. I finally clicked your website and saw you were available for consulting. Can you help us get to the last mile?"

They had already: - Read multiple blog posts - Shared my content internally - Built trust in my expertise - Understood my minimum engagement ($100k) - Seen me as a solution to their specific challenge

That's the power of positioning. They were pre-sold before we ever spoke.

Market Share vs. Wallet Share

To build a lasting consulting business, you need to master two engines:

Engine Definition Focus
Market Share Getting more clients Acquisition
Wallet Share Maximizing value from existing clients Monetization & retention

The Common Mistake

Many consultants focus solely on getting new clients while ignoring the opportunity to expand existing relationships. The most successful practices pay equal attention to both.

The Goal State

Your positioning should create a situation where:

  • It's a privilege for clients to speak with you (not the other way around)
  • Prospects have already been "pre-sold" through your content
  • You're seen as a specific solution to an existing problem
  • You can expand relationships over time (land and expand)

Building Expert Status

Building an online presence that generates leads doesn't need to take years. You can build significant authority in 12-18 months with consistent effort.

The Authority Formula

  1. Create content that demonstrates your knowledge
  2. Consistently address your target audience's challenges
  3. Show proof of results through case studies and testimonials
  4. Build in public so people see your thinking process

Timeline Example

  • Month 1-3: Start posting on Twitter/LinkedIn regularly
  • Month 4-6: Launch a blog on your own domain
  • Month 7-9: Develop deeper content (guides, case studies)
  • Month 10-12: Content starts generating consistent inbound
  • Month 12+: Flywheel accelerates

The key isn't producing the most content—it's producing the right content consistently.

The Hot Dog Vendor Analogy

Rather than focusing solely on making a better hot dog (your service), focus on finding hungry people (your target audience).

Where are the "hungry" clients in your domain? Look for:

Signal Why It Matters
Companies at specific funding stages (post-Series A) They have budget and need to scale
Organizations facing particular technical challenges Urgency to solve problems
Teams with time-sensitive business outcomes Willing to pay for speed
Companies that just made relevant hires They're investing in the area
Businesses announcing AI initiatives They need expertise to execute

Find the Pain

The best positioning doesn't come from what you want to do. It comes from where the pain is. Use social media engagement, sales calls, and industry news to identify where people are struggling most.

Refining Your Message for Different Audiences

The same expertise can be positioned differently depending on who you're talking to.

Example: Open Source Tool (Instructor)

Element Approach
Market Developers
Message "VC-backed AI tools get more complex over time. Instructor is simple and does one thing well."
Media Twitter (where AI developers congregate)

Example: AI Consulting Services

Element Approach
Market Engineering leaders or investors with portfolio companies
Message "VC-backed tools won't make your company better. You need better practices and processes."
Media LinkedIn (more VPs and decision-makers)

The Message Framework

Your message should answer three questions:

  1. Who is this for? (Specific client type)
  2. What problem does it solve? (Specific pain point)
  3. Why you? (Your unique angle)

Example positioning statement:

"I help B2B SaaS companies reduce customer churn by 40% through AI-powered conversation intelligence"

The Resume Trap

Avoid This Common Mistake

Many consultants' websites are essentially resumes. The problem? A resume is proof that comes after someone has defined their needs.

Your website must: 1. First articulate the problem and desired outcome 2. Then provide proof you can solve it

Compare these approaches:

Resume Style Problem-First Style
"10 years of ML experience" "Reduce model inference costs by 50%"
"Worked at Google, Meta, OpenAI" "Ship production AI in weeks, not months"
"Expert in RAG, fine-tuning, agents" "Get your RAG accuracy from 60% to 90%"

Lead with outcomes, then back them up with credentials.

Action Items

  1. Identify your hungry crowd: List 5 specific signals that indicate a company needs your help right now.

  2. Audit your positioning: Does your website lead with problems/outcomes or credentials? Rewrite your headline to be problem-first.

  3. Map your market and message: For your top 2 client types, define the specific message and media channel.

  4. Start your proof collection: List 3 past successes you can turn into case studies or testimonials.

Key Takeaways

  • Authority makes client acquisition dramatically easier. Invest in building it.
  • Balance market share (new clients) with wallet share (expanding existing relationships)
  • Find hungry clients by looking for specific signals of need and urgency
  • Tailor your message to different audiences while maintaining a consistent core
  • Lead with problems and outcomes, not credentials. Avoid the resume trap.

Next: Chapter 3: Finding Your Market →