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Do you treat your team like employees or like people? Every agency owner should recognize the immense value of their team and ensure they are treated with the utmost respect. This may entail parting ways with toxic clients, as the well-being of your team is irreplaceable.
Our guest today faced challenging times during the pandemic when they had to terminate their agency's largest client to prevent the team from burning out entirely. It was a difficult decision, but it ultimately demonstrated how much he valued his employees, leading to a shift in the company culture and a newfound appreciation for their skills, which could be harnessed for incubator businesses. Tune in to discover how he faced the loss of a big client to choose the team that was making his dream a reality and how celebrating the small wins helps keep everyone sane and focused.
Miles Marmo is the founder of Agency Squid, a boutique consultancy and creative agency based in Minneapolis. He shares his journey of building a successful agency, navigating challenges, and creating an incubator agency model, as well as the importance of understanding consumer segmentation, industry trends, and merging it with creative outputs.
In this episode, we’ll discuss:
Learning to savor the small wins.
Choosing your team over a bad-fit client.
The benefits of incubator brands for agencies.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesClutch: This episode is sponsored by Clutch, the #1 marketplace for agencies just like yours. With their innovative process, your agency will be matched with highly motivated buyers looking for the exact services you offer. Leave the lead generation to Clutch and let your team focus on delivery. Get started for FREE at clutch.co/smartagency by creating your agency profile.
Why Agency Owners Need to Savor Every SuccessMiles, a former athlete with experience working in agencies on the brand side, never anticipated becoming an agency owner. However, his entrepreneurial spirit was ignited by his competitive nature and desire for some degree of control over his work. His love for working with people also made entrepreneurship a natural fit for him.
Overall, he describes owning an agency as a rollercoaster with exhilarating highs and challenging lows, so maintaining a sense of balance is very difficult. In this sense, Miles tries to always remember to celebrate the wins, no matter how small.
Agency owners often dwell on losses and setbacks, leading to demoralization. Success is almost expected and therefore not celebrated as much as it should be. Instead, Miles believes that celebrating even minor wins not only boosts morale but also provides a sense of accomplishment and validation for the hard work put into the agency.
Undoubtedly, agency owners will face common struggles and moments of doubt and burnout when they feel like giving up and taking a job instead. However, he believes that by focusing on celebrating wins and finding joy in the successes, they can stay motivated and inspired to continue growing their businesses.
The Make-or-Break Moment: Choosing Your Team Over a Bad ClientOne of these hard moments happened to Miles during the pandemic, when he faced the tough decision to part ways with a major client who negatively impacted the agency's culture and caused burnout among employees. It was a moment where he even questioned whether he had chosen the right career path and his effectiveness at managing his team
Although difficult, it became clear the client would never be content with the agency’s work. This decision ultimately led to a sense of relief and a reshaping of the agency's values and its approach to new business. In the end, prioritizing the team's welfare was crucial for the business’s overall health and success.
Letting go of a client that negatively impacts your culture is a way to show your team that you value them much more than any client. At the end of the day, as an owner, your team is building your dreams and is your greatest asset. You can always get more clients, but assembling a great team is difficult.
For Miles, the key to a successful agency lies in the team that supports it so he greatly values having a team that believes in the vision and works towards achieving it. This sense of unity and shared purpose not only motivates everyone but also leads to better results for the agency.
The Double Benefit of Incubator Brands for AgenciesDuring the pandemic, Miles recognized the potential of his team's unique skill set and saw an opportunity for them to embark on more fulfilling and lucrative creative endeavors. In this sense, he highlights the importance of allocating time effectively and setting boundaries to ensure the team focuses on client work as well as internal projects. Many agencies leave creative projects for later and prioritize client work. However, by managing time wisely and dedicating specific days for internal work, the agency can balance client demands and working on their own brand.
In this regard, Miles discusses the benefits of leveraging his team’s skills to build incubator businesses where they can gain valuable experience and expertise that can be applied to client work. It gives them a playground to creatively express themselves without the limits usually imposed by clients, as well as rare access to the full supply chain logistics and insight into the impact of a design decision. While dedicating time and commitment to these ventures may be challenging, the benefits far outweigh the effort.
Why Neglecting Self-Care Ends Up Affecting Your AgencyBeing your best self is crucial for success, which is why Miles stresses the importance of mental health in this industry. Neglecting self-care can lead to a decline in performance across all aspects of life.
With a one-year-old at home, Miles has gained a new perspective on the significance of self-care and how neglecting personal well-being can have far-reaching consequences. Delaying self-care until a specific goal is reached is counterproductive, as one's well-being directly impacts performance and overall satisfaction.
Seeking support from an entrepreneurial community or a therapist can provide invaluable assistance during challenging times, ultimately leading to improved performance, success, and contentment in both professional and personal realms.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Are you prepared to elevate your agency team and pave the path to success? As your agency expands, the need to grow your team becomes inevitable, and having standard operating procedures (SOPs) in place beforehand can save you a lot of headaches.
Today’s guest went through a rapid growth phase with his agency and found he was ill-prepared to delegate responsibilities and clearly define tasks. As a result, he lost employees and clients but has since learned that SOPs should be in place before hiring and that a good SOP takes him out of the process as quickly as possible. Tune in to gain valuable insights on navigating the complexities of scaling an agency effectively.
Robert Brill is the owner of Brill Media, a white-label media buying agency that helps clients supercharge their business. At his agency, Robert works with a fully remote team of passionate experts and has created a culture of promoting from within, keeping the team members engaged, upskilled, and motivated to take leadership roles.
In this episode, we’ll discuss:
When rapid growth meets poor processes.
Consistency and clarity as a result of proper SOPs.
How to correctly implement SOPs.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
From Dreams of Advertisement Glamour to Owning an AgencyIn a departure from the most typical agency owner narrative, Robert says this is the only thing he’s ever wanted to do professionally. Growing up, the idea of working on high-profile projects, like commercials, sounded like a dream to him. He craved the recognition that would come from showcasing his work. “I didn’t have the ability to become a rock star, so I went into advertising,” he jokes.
After working a couple of marketing jobs as a college student, he continued that path following graduation and spent the next ten years in the advertising business. By 2013, he still had a love for the business but felt himself becoming a bad employee. The desire to operate according to his vision and the prospect of reducing the stress of taking time off motivated him to establish his own business.
Most agency owners know that - contrary to his expectations – running his agency demanded even more and he ended up working twice as hard. However, becoming a CEO and taking on more responsibilities was the only path to what he wanted and it was a big motivator for him.
What Happens When Rapid Growth Meets Poor Processes?Once you start gaining traction with your agency and your brand attracts more clients, you’ll need to be prepared to start hiring as the amount of work increases. For Robert, however, it was particularly challenging since he had to triple his staff throughout one summer.
The big lesson Robert took from that summer is that he should have started hiring sooner. It felt like a big risk earlier in the life of the business. However, he’s learned that of all the big risks, this is one he should have taken sooner.
Initially, he hired people he had worked with previously, assuming they would excel in their roles without much guidance. However, within six months, one of his key hires quit due to dissatisfaction with the lack of structure, organization, and process within the business.
At this point, no one was happy, — not Robert, the new hires, the existing hires, or the clients. It took him six months to figure out the missing piece was standard operating procedures. Simply put, the lack of clear guidelines, workflows, and systems was leading to confusion, frustration, and ultimately, high turnover rates.
Consistency, Clarity, Growth: The Impacts of Finally Implementing SOPsAgency SOPs sounded like the most boring thing in the world for Robert. However, after hiring a Chief Operating Officer who created his agency’s first SOP, he quickly saw the benefits that come with sticking to your processes and refining them over time.
Now everyone on the team understood what was expected of them because they knew where their responsibilities started and ended. As a result, they were more satisfied with their job and stayed longer. The agency’s output grew stronger, everything ran smoothly, and clients returned.
With proper SOPs, Robert also has a better understanding of which steps of the process need documenting while still offering enough autonomy for his team to feel empowered. Furthermore, he has seen the importance of actually enforcing the SOP after it’s created, otherwise it’ll be useless.
Six years later, his staff once again doubled, but with the proper systems the agency’s revenue stayed consistent over time, and turnover was greatly reduced for both clients and employees.
3 Steps to Correctly Implement Agency SOPsAccording to Robert, it’s important to start building SOPs before hiring new employees to streamline processes, prevent mistakes, and ensure consistent quality in operations. Clearly defined SOPs help to avoid the chaos and confusion that can occur when knowledge is only held by a few individuals. For him, the process of implementing new SOPs generally goes as follows:
Identify the tasks involved.
Document the process while performing it yourself.
Delegate the tasks.
Hiring first and letting that person figure out the process seems like a less effective approach to Robert. For starters, figuring out the process first can help you pinpoint the person you’ll need for the task.
Tip: There should always be someone in charge of the SOP, updating and refining it, and ensuring its implementation. Additionally, you can appoint another team member who normally would have nothing to do with that particular part of the process and ask them to follow that SOP to see if they can find any gaps that can be corrected to create a more effective guide.
How Outsourcing SEO Expertise Unlocked New OpportunitiesAfter five years of trying to figure out SEO for himself, Robert finally hired an expert who did a year’s worth of work for him and dramatically changed what he understood about SEO. This investment not only improved his business's SEO strategy but also allowed him to speak more confidently about marketing in general, create content on platforms like YouTube and TikTok, and potentially offer SEO services in the future.
As a result, he’s learned that a proactive approach to learning not only benefits the individual but also the team and the business as a whole. In the future, Robert may want to change his offering to include SEO services, and investing in expert training can lead to improved performance, increased efficiency, and better results for the business.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Is your agency work affecting your family life? Are you challenged by finding the right talent to assemble a team to take over some of the work? Today’s guest thought she’d always be a solopreneur but as her workload mounted, she realized she needed reinforcements to maintain her level of service and keep clients coming back. Getting the right talent to balance it all was not easy but she relied on a largely untapped talent pool: moms looking to keep their careers thriving while raising their families. In this episode, Sara discusses her experiences scaling her agency and balancing motherhood with a creative career.
Sara Jensen owns Brighter Messaging, a digital agency that helps small businesses manage their online presence and generate leads through content-based marketing. Sara shares her journey from being a solopreneur to running a digital marketing agency.
In this episode, we’ll discuss:
Building a compensation model to empower your team.
Taking advantage of the largest untapped talent pool.
Getting wiser about client choices.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesClutch: This episode is sponsored by Clutch, the #1 marketplace for agencies just like yours. With their innovative process, your agency will be matched with highly motivated buyers looking for the exact services you offer. Leave the lead generation to Clutch and let your team focus on delivery. Get started for FREE at clutch.co/smartagency by creating your agency profile.
Delegating for Success: From Solopreneur to Agency OwnerStarting as a freelance writer, Sara began to build her agency right as she had become a first-time mother. That was twelve years ago and she was building her agency from the ground up while navigating motherhood. At the time, she was ghostwriting, blogging, and juggling clients' demands. As the business grew, clients began requesting more services, and Sara realized she needed to level up by building a team.
The first role she hired was a virtual assistant, although she admits to being hesitant and unsure of how to work with someone else. Despite her initial reservations, Sara took a leap of faith and trusted her VA to help her navigate the process of delegating tasks and creating processes.
One of the key challenges she faced was the fear of losing control and not being able to deliver the same level of quality to her clients. This fear is common among entrepreneurs who are used to doing everything themselves. However, Sara's willingness to trust her team members and let go of some responsibilities ultimately led to the growth and success of her agency.
Incentivizing Success: A Compensation Model to Empower Your TeamSara’s assistant was the first person to introduce a project management system – Asana – to the agency, changing everything about how they worked. To this day, it’s become an essential element of how her team works together and how she manages to get her ideas from her notepad to the team.
Having introduced a more structured system to the team’s everyday work and communications, Sara understood the importance of building processes and started to do so herself, a task she later delegated to the new project manager. For her, having consistent processes is a huge piece that helps set clear expectations for everyone on the team.
Another important factor for finally letting go of many tasks was being intentional about the compensation piece. At her agency, the team works as contractors and they’ve structured their compensation model around client retainer packages. Each role within the agency gets a portion of those retainers, as an incentive to be more invested in the client’s success.
By building trust, setting clear expectations, and providing opportunities for growth and development, agencies can create a culture of success and achievement that benefits both the team and the whole agency.
Taking Advantage of The Largest Untapped Talent PoolAnother important aspect of how Sara has structured her agency to serve the interests of the working moms that mostly make up her team is offering flexible hours and part-time work. Most of her team members have side gigs and are in some stage of motherhood figuring out how to have a career while still dedicating time to their families.
For Sara, offering flexible work to moms is a very important part of her business model. In her view, moms are a largely untapped talent pool simply because they opt out; they don’t think they can work while taking care of the family and most companies certainly don’t offer choices for them to do so.
Getting Wiser About Your Client Choices to Prioritize Your Family LifeFor agency owners, their family life suffers if they fail to flip the switch from agency mode to family mode at the end of the day. However, Sara believes it’s misleading to think of it as something you can switch on and off. It depends on the day and what she’s doing. In her experience, it also gets easier when you get wiser about the type of clients you choose.
Setting expectations and boundaries early on is a big part of ensuring clients respect the balance between work and family life. Sometimes this means the agency loses certain opportunities that just weren’t the right fit. However, by making these choices the team solidifies the values they uphold and stays within that lane.
In Sara’s case, it took a long time to get to a point where she could prioritize family time and set boundaries with clients. In this sense, a big part of this shift came from investing in coaching to clarify what she wanted their life to look like and defining her values and goals. Through this process, she was able to identify the types of clients that aligned with her values and boundaries.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Do you prioritize new clients or building lasting relationships? Would you be willing to lose money on a client in order to build a long-lasting relationship? Today’s guest has built two successful agencies banking on the power of planning for the long term instead of focusing just on the numbers. She’ll explain how she and her partner formed their vision of an agency where people could do their best work, clients felt heard, and it would all translate into business. Tune in to learn all about the visionary approach that led her and her partner to success.
Kim Lawton is a successful agency owner with two agencies under her belt. She’s the founder of Inspira Marketing, a 300-employee agency reaching the nine-figure mark, as well as the president and CEO of Enthuse Marketing, a purpose-driven group committed to building brands through effective experiential marketing strategies. She shares her journey building two agencies and discusses her approach of over-resourcing client relationships, her role as the chief possibilities officer and president/CEO, and her entrepreneurial journey from a young age.
In this episode, we’ll discuss:
The four pillars of relationship building.
Risking losing money for long-term client relationships.
Strategic hiring to fuel growth.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
The Four Pillars of a Relationship-Driven AgencyAlthough she’s an accidental agency owner, according to Kim she’s been an entrepreneur since the age of fourteen, when she managed her father’s pizza shop and fell into the role of marketer. It wasn't until years later, working at an agency during the rise of experiential marketing, that she truly started to believe in her marketing abilities. It was there that she met her current business partner.
As Kim and her partner dreamed of owning their own agency, they kept a journal to define the key elements they wanted to include. Their primary focus was creating a place where people felt seen, heard, and empowered to do their best work. They believed this would translate into a successful business.
Rather than focusing on the numbers, hourly billing, or time spent on each account, like most agencies, they made the strategic decision to invest in relationships over profit. As they planned how this would look as a profitable business, Kim and her partner decided their agency would be built on four main pillars:
People: Their investment in talent.
Organizational development: Tools they invest in that help people do their jobs more effectively.
Client leadership: How they show up for their clients.
Growth and reputation: They measure the previous three elements and look at that to establish how the agency performed that year.
It may seem counterintuitive for business owners who prioritize profit margins and bottom lines, but it was a conscious choice to become their clients' preferred solution, even if it meant potential short-term financial losses. Their long-term relationship investment approach not only allowed them to create long-lasting relationships, but it was also a good way to quickly identify bad clients. If the client didn’t value the time they were investing in their project, it was easy to say goodbye to them and not look back.
Maximizing Client Relationships: A Strategy for Long-Term SuccessHow do you start to set up a structure where the business is set to lose money with each client for the first year? Kim suggests allocating a portion of marketing expenses to client service. This approach allows agencies to prioritize nurturing existing client relationships, leading to increased business opportunities and revenue.
Of course, it wasn’t a reckless strategy, Kim and her partner set a maximum 15% loss threshold per client and assigned specific departments to absorb these costs. They also regularly evaluated the value provided to clients and sought to exceed their expectations.
Despite occasional overinvestment in certain clients, they take pride in sustaining numerous client relationships over sixteen years.
Pro tip: Kim and her partner went above and beyond for their clients and meticulously tracked any additional hours spent outside the scope of the project and presented these as zero-dollar change orders. This showcased their dedication and established a strong foundation for future collaboration. This transparent and proactive approach not only fostered goodwill with clients but also paved the way for potential opportunities in value-based pricing and performance-based marketing.
Consistent Outreach for Consistent Results: Leveraging Cold CallsCold calling has proven to be a successful strategy for many agencies and it has certainly been the case for Kim. In the initial stages of the agency's development, one of its primary objectives was to transform cold calling into an effective strategy. Today, at their agency, this approach is known as the "nifty fifty" and has resulted in a steady stream of opportunities and business expansion. Kim and her partner committed to contacting a set list of 50 individuals each week, holding each other accountable for completing these calls.
For Kim, it’s all about timing. There’s a right time and place for these calls, but by regularly reaching out to her network and staying connected with past clients, they were able to uncover new opportunities, referrals, and partnerships that ultimately contributed to the success of her business.
Balancing Client Needs and Agency Vision: Their Path to a Second BrandThe opportunity for their second venture came from a client engagement, prompting them to develop a specialized team dedicated to delivering the client’s brand message within the hospitality industry. As discussions progressed, the client realized that their agency's brand, focused on experiential and client-facing elements, did not align with their objectives. They sought an approach more grounded in education, prompting whether establishing a dedicated business department would suffice.
Kim and his business partner's wife, an educator eager to reinvigorate her career, collaborated on a program tailored to the client's requirements. While the results met the client's expectations, a new challenge emerged: the exclusive focus on the program overshadowed the agency's identity. Consequently, they restructured the agency to revolve around the new program, shifting the focus from the client to the new business.
Strategic Hiring to Fuel GrowthKim and her partner were deliberate in their approach to building their agency, understanding the impact of every hiring decision on the agency's success. They were determined to avoid the common pitfall of reactive hiring that leads to a cycle of downsizing and expansion. Instead, they focused on strategic, long-term growth and sustainability, ensuring that each new team member added value to the agency.
In order for this to work, they instilled in their team the importance of considering the long-term effects of their hiring decisions and aligning them with the agency's annual plan and budget. Employees were involved in the decision-making process, fostering a positive work culture and team cohesion, ultimately leading to improved client satisfaction and retention.
Effective delegation is also crucial in maintaining balance within the team. In this sense, Kim’s agency used a specialized company to conduct weekly assessments measuring employees’ strengths and weaknesses. This approach allowed the agency leaders to gauge each team member's performance in real time and identify areas where they excelled or struggled.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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What sets high-performing agencies apart from their low-performing counterparts? How are you positioning your agency for success? Our guest today is a seasoned business executive with extensive experience in product marketing and sales leadership. In his current role, he collaborates with agencies and gains insights into what separates successful ones from the rest. Tune in to gain valuable perspectives on agency performance and growth strategies.
Tim Condon is the Chief Revenue Officer of Clutch, a one-stop-shop were businesses can identify leading service providers through an innovative research process that melds the best of traditional B2B research and newer consumer review services. He discusses the difference between high-performing and low-performing agencies and shares insights from working with professional services companies and marketing firms, highlighting key factors that contribute to agency success.
In this episode, we’ll discuss:
Focusing on organic growth.
Making 100,000 leads in one day.
Shortening the sales cycle.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesClutch: This episode is sponsored by Clutch, the #1 marketplace for agencies just like yours. With their innovative process, your agency will be matched with highly motivated buyers looking for the exact services you offer. Leave the lead generation to Clutch and let your team focus on delivery. Get started for FREE at clutch.co/smartagency by creating your agency profile.
Organic Growth and Operational Excellence Build a Scalable AgencyFrom his many interactions with agencies at Clutch, Tim has gathered some great intel on what is working for the most successful agencies. First, they start doing something they are really good at and focus on organic growth. Many prominent agency CEOs initially honed their skills in website development, later expanding their expertise to encompass SEO and pay-per-click advertising to drive increased traffic.
As these successful agencies matured, they strategically planned their expansion into new areas, leveraging their organic growth to thrive and deliver exceptional outcomes. Also, Tim has observed a crucial aspect of sustained agency growth lies in establishing a robust infrastructure. Agencies that have mastered this have implemented comprehensive systems for lead tracking, incentivizing sales teams, and organizing their operational structure. These systems are essential for ensuring seamless operations and maximizing growth opportunities.
Without a solid foundational framework, agencies may encounter challenges in effectively attracting, converting, and scaling their business. But by implementing streamlined processes, performance tracking, and identifying areas for improvement, they can enhance their lead generation, and client conversion, and ultimately scale their business to new heights.
Leveraging Brand Power and Partnerships to Land 100,000 Leads!As CRO at Clutch, Tim has seen many different and innovative approaches to generating leads but especially remembers a time when he was working at the Washington Post. At that time, he was tasked with building a platform to showcase the Post’s potential as a local resource with a lot of local merchants.
The Washington Post faced competition from larger companies like Groupon and LivingSocial, so Tim capitalized on the assets at his disposal, particularly the Post's strong brand and local market distribution, to build a robust email list.
Strategically aligning with Papa John's, Tim proposed a mutually beneficial promotion that involved giving away pizzas in exchange for registrations on their site. The campaign's resounding success resulted in 100,000 new leads! And consequently, 100,000 Papa Johns pizzas delivered — which solidified the partnership between the two seemingly unlikely partners.
This was by far the best promotion either brand had done and Tim made it happen by leveraging his assets and knowing competitive dimensions. He needed emails and had something the competition didn't, a well-established brand with a huge market distribution.How can you create lead gen that results in 100,000 new leads? Tim’s advice is to carefully assess the core requirements, leverage existing assets, and identify the dimensions crucial for a competitive edge.
Too many agency owners focus on immediate sales. However, by prioritizing email address collection, businesses can establish direct communication with potential customers, nurture leads over time, and increase conversion rates. Additionally, by standing out in the market and using creative approaches to engage with prospects, businesses can differentiate themselves and achieve sustainable growth in a competitive business environment.
The Power of Foot-in-the-Door Offers to Shorten the Sales CycleAt Clutch, they conduct an annual survey on the sales cycle and, according to the results, 50% of agencies say their sales cycle expands to over a month, while 20% say it’s over three months. These findings are consistent across professional services and underscore the importance of implementing effective systems to convert leads into clients.
This is where a "foot in the door offer" comes in as a powerful strategy for agencies to shorten their sales cycle and secure new clients. With this approach, you offer a low-cost or low-commitment initial service to potential clients to establish trust, build rapport, and demonstrate value. It’ll be the first step toward upselling additional services or projects to the client, ultimately leading to higher revenue and long-term relationships.
Jason believes selling a foot-in-the-door offer helped his team establish a relationship and build a high-level plan to solve a huge gap the client hadn’t noticed. This way, they position themselves as an advisor and get a project sold before other agencies can come back with their proposals.
Ultimately, implementing a foot-in-the-door offer can help you drastically reduce your sales cycle from months to just a few days, so ask yourself how do I get my foot in the door? How do I get the attention? How do I get my foot in the door? And then what is that upsell to get your clients to where you need to go?
The CRM Advantage: Enhancing Agency Performance and Client EngagementOne key component of a successful foot-in-the-door offer is investing in a CRM system. Having a CRM system in place is crucial for agencies to effectively manage their client relationships and drive business growth as a tool that allows them to track and organize client information, communicate effectively with clients, and streamline their sales and marketing processes.
According to Tim, when agencies lack a CRM system or fail to utilize it effectively, it can be a red flag that their systems are not in place. This can lead to disorganization, inefficiency, and missed growth opportunities.
Investing in a CRM system can help agencies stay organized, track client interactions, and nurture relationships effectively, which is the sort of investment that will differentiate high-performing agencies from low-performing agencies.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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What would you do if you sold your agency tomorrow? Are you clear enough on your purpose that you could keep on creating value? Today’s guest is the founder of a beloved app that changed the way people drive nowadays. He eventually sold that company but hasn’t stopped looking for ways to improve people’s lives through his startups. He’ll share what he’s learned from failure, why he was out of the company as soon as he sold, and why you should always look to understand users to create real value. Tune in to learn valuable insights into building successful startups.
Uri Levine is the co-founder of Waze, a popular app that helps users have a better driving experience, get to their destination faster, and avoid speeding tickets. After his business was acquired by Google a decade ago for over $1 billion dollars, Uri went on to focus on other ventures. He more recently wrote the book Fall In Love With the Problem, Not the Solution.
He shares his entrepreneurial journey, from creating Waze to building Moveit, and discusses the importance of solving real problems to achieve product-market fit and the impact of failing to do so.
In this episode, we’ll discuss:
Fall in love with the problem, not the solution.
Cracking product-market fit.
Making hard choices with conviction.
What comes after selling an agency for $1 billion.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
Find a Problem Worth Solving: Advice for Agencies to Create Lasting ValueYears ago, Uri had the chance to meet one of his technological gurus – Steve Wozniak – at an event. He got to take a picture with him and that exchange inspired a chapter of his book called “Understanding Users”. In it, he explains there’s no right or wrong way to use a product, something he always tried to take into account when it came to Waze users and how they overcame problems.
In his view, every entrepreneur should start by solving a problem. “Think about something worth solving,” he advises. If a lot of people have the same problem, speak with them, understand their perception of the problem, and only then set out to build the solution. For Uri, this is the only way to guarantee that you’re creating value. Instead, starting with the solution may lead to creating a solution that no one was asking for.
Uri encourages entrepreneurs to find a problem worth solving and make it the North Star of their journey. This way, you’ll be much less likely to deviate from the path toward your goal and much more likely to succeed. To agencies, he reminds them that the problem is a significant part of their marketing. The story you’ll tell about the problem is much more compelling than one about the solution. An enticing story will help you make customers care, and if they care, they’ll make you successful.
Biggest Successes and Failures Outside of WazeAlthough Waze has over 700 million users, and even more use Moveit, neither is Uri’s most successful product. His most successful venture was a voicemail company called Converse Technology. At the time, it had many more users than either Waze or Moveit and it was a massive success. Years, later, he switched to software development, always looking for innovation and change.
On the other hand, his first startup focused on mobile email and it became his first big failure. Uri knew focusing on a problem worth solving was the starting point for any successful venture. This should always be followed by speaking with potential consumers. This way, you’ll see whether or not they share your vision of the problem. If not, they may still point you to a different approach to the problem.
Unfortunately, Uri found a problem worth solving that later disappeared. Someone, in this case, Blackberry, had solved it better. It was time to pivot to a new problem.
Define Your Agency’s DNA Early in the Creation ProcessFinding a problem and identifying a proper approach to a solution are the surest ways to create a venture with a better opportunity to succeed. However, a major part of your happiness in an organization will revolve around the people you surround yourself with, rather than you and what you’re doing. Because of this, Uri believes the agency’s DNA and the culture you build around it will be just as important as the mission you have.
This is something you can start to create from day one, as Uri did with Waze. From its creation, he decided the company would be the best place to work at and built the culture around that idea. Since then, he’s built more companies and always makes sure to define their DNA early in its creation process. The result will be nearly no attrition because you’ve created a favorable work environment where people want to stay.
Beyond the Myth of Overnight Success: Cracking Product-Market FitHalf of all startups will fail as a result of not figuring out their product-market fit, which simply put entails figuring out how you create value for customers. If you can’t figure that out, then your business doesn’t have a future.
There’s only one metric when it comes to product-market fit: retention. If you create value, customers will come back. If they don’t, then you’re either too complex and they can’t figure out the value or you’re not creating enough value.
Think of the apps you use every day like, Netflix or Facebook, and ask yourself what’s the difference between how you use it today and how you used it on day one. There is no major difference. Once companies figure out product market fit they don’t change it because that’s the value they bring to customers. What users don’t know is how long it takes a company to get that product market fit just right.
New companies compare themselves to these giants and assume they’re failing if they haven’t made it big by the two or three-year mark. In reality, none of these big brands was an overnight success and we’re just not aware of how long it took them to succeed. For Waze, it was four years and it took Netflix ten years.
Creating value for customers is a continuous process that requires time and effort. It’s not an overnight process.
Why CEOs Should Make Hard Choices with ConvictionEver since he sold Waze ten years ago people have asked Uri whether he still thinks it was the right decision. For him, there are no right or wrong decisions. There’s just deciding on making no decision.
Some people prefer to remove all emotion to make decisions based purely on the logic of what would be better for the business. For Uri, the most important thing is making hard decisions with conviction, which is a crucial skill for a successful CEO.
For instance, there’s a chapter in Uri’s book called Firing and Hiring, inspired by conversations with CEOs regarding their underperforming teams. In most cases, they knew exactly which employees were just not cutting it and had known for some time. For Uri, the big problem in these cases was that CEOs were being too slow to make hard decisions because they’d have to assume responsibility for the consequences.
If you struggle with an underperforming team, Uri recommends you take a look at any team member and ask yourself would you hire them today knowing what you know about their work? If the answer is no, then fire them immediately. It’s advice he believes can be applied to anything in life, your professional path, your relationships. If you’re not happy with where you are, then start making changes in order to change that today.
Selling for $1 Billion & How Embracing Failure Can Take You Closer to SuccessPeople may be surprised to hear that Uri was out the door the day after selling his company for $1 billion. However, by that time, he was already thinking of new startups he wanted to build, so this was the right move to close that chapter.
Furthermore, he says that, contrary to what people may believe, the sale did not mean he was walking away with $1 billion in his pocket. By that time he owned just 3% of the company and after taxes and a divorce, he was left with far less, which he mostly invested in his new startups.
Nowadays, he spends his days coaching different startups Some of these could become even more successful than Waze at some point, while others will probably end up being big failures. The prospect of failing is not one that plagues him too much since, in his view, failure is an inevitable part of the entrepreneurial journey, but it is through these failures that one can learn and grow.
At the end of the day, if you want to create new things you’re set to fail. Over the years and by accumulating new failures, he has managed to become statistically more successful thanks to the experience he has gained.
Selling Your Agency: Key Considerations and Uri's Advice on Timing and MotivationsIf you’re trying to figure out the right time to sell your agency, Uri believes you should consider whether the offer you’ve received is life-changing or not. If it is, then it merits serious consideration. Additionally, if you have aspirations to pursue new ventures and innovate to benefit others and revolutionize the industry, selling may be the right move.
On the other hand, if you believe you’re company is a once-in-a-lifetime thing then you should keep it. Don’t sell unless you know what you’re going to do next.
Above all, avoid selling solely due to exhaustion and the desire to rest, as this may lead to restlessness sooner than expected. Entrepreneurs are inherently driven to create and take action and often find it challenging to embrace prolonged periods of rest.
Finding Purpose in Value CreationNowadays, Uri feels happier and more fulfilled than ever and it’s because in the last decade, he was finally able to figure out who he is and who he wants to become. He now states confidently that his purpose lies in value creation and he finds equal enjoyment in both creating something himself and guiding someone else to do it.
Finding a purpose will center you, the sense of purpose and impact on the world can lead to greater happiness and satisfaction in one's work. Finding something you’re good at and that people will pay for will be the cornerstone of your happiness. Identifying one's strengths and finding a market for them is pivotal for personal contentment. When coupled with a meaningful mission to make a positive impact, it becomes the key to enduring happiness.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Does your onboarding process set new hires up for success from day one? Do you believe the hardest part of adding new team members is the hiring process? Today’s guest believes most business owners disregard the importance of the onboarding process, which can affect a new hire’s chances of success in the agency. He goes over the many aspects you should improve for properly onboarding a new team member and why you don’t want to waste the time, money, and effort put into the hiring process by doing a bad job with onboarding. Learn valuable insights and strategies in setting up new team members for success and avoid pitfalls in hiring remote staff.
Noel Andrews is the CEO of JobRack, a hiring service that helps agencies find great remote talent from Eastern Europe and South Africa. As someone who focuses on finding the best talent and matching them with agencies looking to hire remotely, Noel knows the significance of prioritizing onboarding to ensure successful hires and discusses common mistakes agency owners make during the hiring process.
In this episode, we’ll discuss:
Common onboarding mistakes you should avoid.
How to kickstart a new hire for success.
Effective remote team onboarding strategies.
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Sponsors and ResourcesCopper: This episode of Smart Agency Masterclass is sponsored by Copper, a CRM solution built specifically for agencies that use Google Workspace. Its CRM integration works seamlessly with Gmail, Google Calendar, and Drive, so you never have to switch tabs to add leads, track email conversations, find files, or manage tasks in your marketing or sales process. Head over to Copper.com/agencies and get a free trial exclusively for Jason’s listeners!
The Biggest Onboarding Mistakes Agency Owners Make When HiringWhether you’re hiring remotely or locally, hiring is hard so once agency owners get to the last stage of hiring and they’ve got a start date confirmed they breathe a sigh of relief thinking their job is done. However, this is not true. The next step now is onboarding and it is a critical stage in the hiring process that is often overlooked, with the most common mistakes being.
Not preparing for it.
Not prioritizing it.
Failing to adequately prepare for new hires leads to inefficiency. This looks like: no email access, Slack use, or client accounts ready on someone’s first day in the office. Even at big companies, it may take three days to get a new hire a laptop. It’s both a waste of their time and a terrible first impression.
For Noel, proper onboarding is a twelve-week process, where you’ll gradually provide them with the context they need to work in your agency. During this process, you should be preparing people with the background of who your clients are, what your services are, and why you do things the way you do. It’s the sort of detail that will help workers go above and beyond for the company.
Neglecting or rushing through the onboarding process can result in wasted time, money, and effort invested in the hiring process. Just like onboarding a new client, the first few weeks should be about how excited you are about them joining the team and offering everything they’ll need to set them up for success, foster a positive work environment, and ultimately improve retention and productivity in the long run. Especially if it’s a remote position, where you’ll have to be very intentional about making sure you’re giving them all the tools for success.
Emphasizing Values in the Onboarding ProcessWhat Simon looks for in each team member will, of course, depend on the role. However, all his account managers, recruiters, operations managers, and customer success managers roles involve dealing with people, whether clients or customers.
In this sense, their energy and attitude play a big role in how they’ll do working in his agency. Of course, attitude is something that cannot be easily trained which is why hiring individuals who align with the company's values is the only way to ensure new hires will be a good fit for the organization and contribute positively to its culture. Not everyone has the ability to make people feel comfortable in a call or interview and that will play a big role for Noel.
Overall, he’s always looking for people who will be good at communicating and being part of the team.
4 Essential Elements to Kickstart Success for a New HireIdeally, any onboarding process will have a few elements that make it a great starting point to cement the relationship that the new employee and agency will form in the coming weeks and months. To build a successful onboarding process, Noel believes in the first week employees should at least:
Get to a place where they understand the agency and its values.
Know what’s expected of them in this new role.
Understand the KPIs and metrics they’ll be measured against.
Have a clear idea of what the onboarding process will be like.
Get Onboarding Right From Day One: Effective Remote Onboarding StrategiesManaging a remote team can be tricky, especially when it comes to training a new member and making sure they understand how everything works. Noel adopts a hands-on approach by closely supporting the new hire, dedicating daily meetings to guide them through the onboarding process and address any queries that may arise.
Additionally, he adheres to what Dan Martell calls the 10-80-10 principle in his book Buy Back Your Time. Basically, when delegating a task, 10% of the total time dedicated to delegating should be explaining the task, 80% should be dedicated to the actual execution, and then 10% should be checking, reviewing, and providing feedback by the manager. This is a critical part of the process since no new hire is going to instinctively know how to do things, even with the available SOPs.
A good way to help employees get comfortable with communicating their plan for the day and ask questions is to have them answer these three items at the start of each day:
What did you do yesterday that was impactful?
What’s your plan for today?
Do you have any questions?
It’s a quick way to assess who will adapt to the agency because people who actually share their plan for the day and aren’t afraid to ask questions are usually more proactive and make for a more successful hire overall.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Is the fear of failure holding you back from taking the first steps to establish your brand? Are you hesitating to start a podcast because you believe it would only be worthwhile if it garners millions of downloads? Our guest today is a true trailblazer in the podcast industry, having successfully built a thriving agency around his initial decision to create a show dedicated to entrepreneurs. Tune in for an insightful conversation on the power of pushing boundaries and the value of trying new things in the ever-evolving world of podcasting and entrepreneurship.
Pat Flynn is the serial entrepreneur and podcasting pioneer behind Smart Passive Income, a massive podcast with a long history of teaching entrepreneurs proven strategies to run and optimize their businesses. He’s also the founder SPI Media, an agency that helps people launch and grow their brands. Pat’s podcast was actually the inspiration for the Smart Agency Masterclass podcast and now he joins Jason to discuss the importance of taking risks and embracing failure as part of the learning process.
In this episode, we’ll discuss:
What’s holding people back from starting a podcast?
Mastering the podcasting game.
3 key principles for brand success.
Letting go to grow: lessons on delegating.
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Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
Navigating the Evolution of Your Brand and BusinessJust like Pat has inspired so many entrepreneurs, he was inspired by the Internet Business Mastery to start his own podcast in 2007. The result was so terrible he never released that episode and it took over a year for him to gather the courage to try again. After finally releasing his first episode in 2010, he’s started several other podcasts and has amassed around 80 million downloads and a massive following.
Much has changed since he chose Smart Passive Income as the name for his brand and “passive income” has recently gained some negative connotations due to influencers promoting the idea of making money without putting in even 1% of the work. As a result, some big brands are hesitant to partner with a business associated with the term.
Of course, this is not what Pat teaches in his content, and, although he is now referring to it as just SPI, a rebrand is probably in the future to welcome as many opportunities as possible.
Currently, Pat is running a business with 11 employees, which is something he never would’ve thought he’d do. Back when he started his business, he dreamt of running a very lean operation working exclusively with contractors.
As the years went by, however, Pat felt a calling to help as many people as possible and he needed to bring the very best talent to the business to help him realize that. Once he had a team, especially his partner and CEO who took over project management and finances, Pat was able to focus on his zone of genius, doing interviews, building relationships, and going to events.
Focusing Too Much on the Numbers: The Misconception Holding People Back from PodcastingFor Pat, the number one reason people refrain from starting a podcast is the fear of wasting time. Things have changed a lot since he started and now it has become such a saturated space that he can’t blame people for thinking theirs may just get lost in the multitude of new releases each day.
Pat challenges agency owners to ask themselves, how many more clients do you need to make a positive impact in your business? Could a podcast help you close more business by attracting potential clients who wouldn’t otherwise find your agency? If the answer is yes, he suggests tailoring podcast episodes to appeal to potential clients and help them feel at ease about engaging with the agency.
In this sense, a podcast would provide the opportunity to define a much deeper relationship with your prospects than you would with a simple YouTube video. It’s quite a powerful connection you can create with a podcast with the way you as the host can become someone’s companion as they travel, walk their dog, or just go about their lives.
Mastering the Podcasting Game: Strategies for Building a Successful PodcastWhen it comes to creating a successful podcast that resonates with a wide audience, having a clear vision and set goals is crucial. Merely hoping for a stroke of luck after posting your podcast episodes will likely lead to disappointment and frustration. Therefore, Pat suggests starting with a well-defined purpose and message.
Additionally, he recommends seeking assistance with the editing process early on. Podcasting is a lot of work, from planning to recording and editing and you may end up feeling exhausted, potentially discouraging you from creating content consistently. Lean into the parts of the process you enjoy the most, which will probably be the planning and creating connections, and you’ll start to see those connections lead to relationships and introductions to people who can open more doors.
Don’t lose sight of the benefits a podcast can truly bring to your business. This can happen when you focus exclusively on the numbers and get easily discouraged by low viewership numbers. Instead, focus on how an interview can lead to other opportunities; for instance, interviewing an industry leader can lead to being invited as a speaker to their event. Furthermore, it’ll allow you to pick their brain and position yourself as an industry expert just by having that connection with them.
Pro tip: Before he had his current numbers, Pat was able to get big interviews with figures like Gary Vaynerchuck by timing them just as they were releasing a new book. If you’re looking to get big names, this is when they are far more likely to take every interview opportunity they can to promote their work.
Humanizing Your Brand in the AI EraA lot of people hesitate on whether or not they should create a personal brand. Pat believes that with the surge of AI, having a brand now becomes even more important. With everyone using AI and automating processes, a personal brand means creating a way for people to connect with you, to create a connection that is just not possible with faceless corporations and automated response systems.
In this sense, he also emphasizes the need to understand what a personal brand is and what it can offer. Basically, you’ll need to have a clear idea of what you stand for, what are your values, and how the work you do reflects that. People want to connect with others who share the same values, which means that not putting yourself out there will make you a human AI no one can relate to.
3 Key Principles for Brand SuccessBack in 08, when he recorded that first podcast that never saw the light of day, Pat could’ve never imagined the evolution of his brand and the level of success he’s seen over the years. Like most people, he was afraid of failure and thought he was unprepared to venture into the entrepreneurial world.
With time, he’s discovered experience would be the best teacher and the importance of solving a problem, which is why his guiding principles formed over years in the industry are:
Worry about failing as fast as you can: Pat cautions agency owners against letting perfectionism lead to getting stuck. “The riskiest thing you can do now is play it safe. Bold actions lead to bold results.” Playing it safe can actually prevent you from adapting to changes and trying new things because what worked in the past may not work in the present. To progress and grow, one must be willing to take risks and try new approaches.
Serving first: Focusing on solving a problem for others and providing value will help you build trust, loyalty, and ultimately, financial success. For Pat, this emphasizes the idea your earnings are a byproduct of how well you’re serving your audience. Consider this rather than solely focusing on making money.
Building community: Pat believes in the power of connection and belonging, which he fosters at his agency by creating safe spaces for his clients to come together. It’s not only about finding an audience or how well you serve your audience. It’s also about getting your people to find each other. Strengthening the bond between agency and clients will help future-proof your brand by creating a loyal and engaged community.
Partnerships, Delegation, and Prioritization in Agency LeadershipPat’s partnership with his now friend and CEO was the leverage he needed to start to transition away from the parts of the business he least enjoyed. Looking back, he realizes he was holding himself and the business back by not letting go sooner. It was not easy for him, as he sometimes regressed to try to get too involved and micromanage the team.
To him, it’s like holding on to a ladder that takes you to a certain height while trying to climb a new one that will take you higher. In the end, as long as there’s open communication and a shared vision between partners, it’s okay to let go and not fear that the agency will get off track. Additionally, Pat underlines there’s no immediate need to train someone as CEO to have that kind of support. You may just need a business manager, which is a common struggle for agency owners.
For those grappling with where to direct their attention and energy, Pat recommends delineating personal and business priorities. "If you haven’t sat down with yourself, your partner, or your team to define your priorities, you’ll feel busy while getting nowhere. Once you do, things will start to align," he advises.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Do you want to sell your agency at some point? Do you know where you want to take your business before you’re ready to search for a partnership? Today’s guest started his agency at just twenty-three years old and was ready to sell ten years later, when his business was thriving and had a solid position in a coveted niche. However, the selling process was not as smooth as he hoped and he soon found himself looking for expert advice to understand a complex process that was sure to take a lot of his time for months on end. Tune in to learn how he navigated the M&A process while prioritizing clients and employees, and creating the ideal work environment for his team.
Simon Cristal is the founder of SWC Partnership, an international full-service marketing agency that helps clients increase lead generation and brand awareness by developing strategies and creative ideas. Last year, his agency was acquired by a global independent agency, which he says was a natural process and a great experience overall. Learn his insights on building a client-centric agency, the importance of taking care of clients, and the type of help you’ll need for a smooth acquisition process.
In this episode, we’ll discuss:
Positioning and prioritizing profitability.
From Zero employees to selling an agency.
The agency owner’s roadmap to M&A.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesCopper: This episode of Smart Agency Masterclass is sponsored by Copper, a CRM solution built specifically for agencies that use Google Workspace. Its CRM integration works seamlessly with Gmail, Google Calendar, and Drive, so you never have to switch tabs to add leads, track email conversations, find files, or manage tasks in your marketing or sales process. Head over to Copper.com/agencies and get a free trial exclusively for Jason’s listeners!
Lessons in Pricing, Positioning, and Prioritizing ProfitabilitySimon was born into the advertising world, with his father owning an agency that exposed him to the creative realms of design and copywriting from a young age. As he grew up, Simon navigated his way through several London agencies, honing his skills and gaining valuable experience. Surprisingly, the opportunity to set up his own agency came up earlier than expected. He knew he’d wanted to do it at some point in his career, although he didn’t expect to do it at twenty-three.
Simon started his agency with zero clients, which looking back was a risky move. He did, however, have a clearer vision of pricing. His first client was a big German dairy company and he knew the most effective approach to earn their respect was to refrain from underbidding.
It took around five years for him and his team to start really focusing on B2B and position themselves as specialists in helping brands connect to international audiences. This proved to be a savvy move, as the pandemic forced blue-chip businesses to seek out more affordable, niche agencies like Simon's, with their unique expertise in global brand-building.
In the ten years since starting the business, Simon has seen the importance of surrounding yourself with a good team to get through all sorts of situations. They operate under a very lean model since, in his view, it should never be about how many employees you have but about the type of business you build and whether or not it’s profitable.
This approach to building a passionate team and providing the best possible work environment helped him grow his business, and create great client relationships. It was even a deciding factor when it came to selling the agency.
Inspiring Creativity, Delivering Impact: Secrets of a Thriving Agency MindsetSimon used to believe the agency should be focused on making sales. This has changed with time, as he realized they needed to focus on taking care of clients and looking for ways to help them succeed. It’s a friendly approach that sets the tone for a good agency-client relationship. For him, if you have great clients, great people, and great processes, the financials will take care of themselves.
Furthermore, Simon recommends using the NBAT framework (Need, Budget, Authority, Timing) as a practical way to ensure you’re picking the clients you can really help and offer the best results to. At his agency, they also use WIDI (I Wish I Did It) as a way to spark employees’ creativity. They organize a monthly meeting where people will take examples of great marketing they wish they had come up with. It’s a great way to stay inspired by innovative marketing strategies and continually strive for improvement. Taking a step back from the daily projects and allowing yourself to be inspired by others’ work will help you evolve and get better.
Working in the creative industry is fun and Simon believes it’s important to enjoy that. By being inspired, thinking outside the box, and prioritizing client satisfaction, businesses can differentiate themselves from competitors and create impactful and memorable campaigns. In the end, it’s the truly creative ideas that make for ads that people will remember for years to come. Here are Jason’s and Simon’s picks for some of the most memorable and impactful ads they’ve seen. What are yours?
From Zero Employees to Selling the AgencySimon had always envisioned selling his agency at some point, and as the 10-year milestone approached, he realized that the timing was perfect. The agency had a strong track record of business success, impressive client retention, and a stellar team.
A point of pride for the agency was its commitment to creating a work environment where employees felt valued and motivated to stay long-term. Hence, when it came to finding the right agency to be acquired by, Simon prioritized the benefits for his clients and his team. Cultural alignment, opportunities for growth, and a shared vision were all essential considerations in the decision-making process.
Taking the advice from past podcast episode guests who spoke on this topic, Simon appointed an M&A advisor and conducted thorough research; This way, he was able to navigate the complexities of selling an agency and find a suitable partner. Even so, he was surprised by how much he underestimated the time the process took. It was a lengthy eight-month journey from the initial conversation to closing the deal.
Agency Owner's Roadmap to Mergers & AcquisitionsOverall, the selling process was a great experience and an undeniably time-consuming process. Sometimes, M&As may seem purposely dragged on for too long to make the seller feel they’re already too compromised and can’t back out or they would have lost all their time and effort. The right guidance and support will help you avoid that, although it is ultimately a process that can’t be rushed.
Simon’s best advice for other agency owners is to get the right help if you know you lack the proper knowledge and to leave all M&A activities outside the normal work hours. This way, it won’t take over your work day and you can make sure to keep the focus on the agency, as well as not feel you lost valuable time in case it doesn’t work out in the end.
Another key point was testing out the partnership before fully committing to it. Just like dating before getting married, doing trial projects or meetings can help both parties assess if their cultures and values align. As an agency owner selling your business, Jason recommends making sure you understand the buyer’s integration plan. It’ll say a lot about their motivations for the purchase. This step can help prevent any potential conflicts or misunderstandings down the line.
Other than that, he suggests investing time and resources into post-merger integration activities. Face-to-face meetings, team-building exercises, and collaboration opportunities are essential for fostering a cohesive and united team. These efforts not only enhance communication and trust but also contribute to the long-term success of the merger or acquisition.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Have you ever doubted your ability to steer your agency toward greatness? Does your team follow your lead on the decisions you make to get there? Many agency owners face this internal battle, questioning if they truly have what it takes to lead their business to new heights. Today’s guest has conquered those self-doubts and forged an unwavering confidence in his leadership abilities. He has grown his successful business over the years, gaining confidence as he accumulated more experience. Although he doesn’t regret past decisions, he realizes he could have retained a majority stake in his company and made it on his own had he trusted himself as he does now. Listen to the full episode to learn about his experience growing his agency and how he built the confidence to succeed.
Torey Azure is the CEO of Brandcraft Agency, a full-service agency that deals in videography, creative, digital marketing, and branding. Tori shares insights into his journey and the importance of having the right message for the right audience to improve digital channel performance.
In this episode, we’ll discuss:
Uncovering what clients need.
Building up leaders.
The confidence to not hesitate when making decisions.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
3 Key Strategies for Authentic Client InteractionsBack in high school, Torey was able to blend in with different crowds, being the jock who was also voted as ‘most artistic’ in his class. Thinking back on that time, he realizes that the ability to relate to people from different backgrounds and industries has helped him succeed as an agency owner. It’s not about liking to be the center of attention but about having emotional intelligence and connecting with clients and colleagues on a personal level.
If you’re someone who finds it hard to network and especially starting a conversation with a stranger, Torey believes the most successful interactions will come from these 3 key strategies:
Don’t have an agenda. Speak confidently without thinking about what the other party may want to hear, and learn to quickly identify when someone should or shouldn’t be a client. This will come from practice and being in many different situations with different types of people.
Learn to really listen to people. Instead of pitching yourself, take a true interest in the other person. It will make for a much more enjoyable and memorable experience for them.
Genuinely curiosity about people. Find out why they started their business. With the pandemic and so much time spent on digital environments, it’s as if people have lost the ability to riff off in a conversation and be invested in what the other person is saying. However, it’s a very important skill to help prospective clients feel comfortable.
Make a Lasting Impact and Avoid the Order-Taker TrapTorey believes his job as a marketer is to uncover what the client needs, which is not necessarily what they think they need. This approach is crucial for providing effective solutions and adding value to clients' businesses.
Too many agencies fall into the trap of being order takers, simply doing what the client asks without questioning or understanding the underlying problem. This mindset can lead to short-term gains but ultimately results in a race to the bottom competing to offer the lowest price. Instead, Torey advocates for taking the time to truly understand the client's needs and challenges, even if it means challenging their initial requests.
It’s a lesson Torey has learned through experience when in the past his agency created a good strategy to find the client’s audience but it turned out to be the wrong message and the wrong time.
Instead of looking at surface-level problems like lead generation issues and attracting clients through low prices, try asking probing questions and analyzing the client's past experiences with other agencies. You could identify patterns and the potential root causes of their struggles.
Empowering Leaders by Cultivating IndependenceHe felt proud the first time Torey realized the agency had signed a new client and delivered the results without his intervention. He is currently focused on elevating his team to foster the leadership necessary for this to continue. There is no definitive formula for achieving this goal, but he emphasizes the importance of creating enough momentum to allow team members the freedom to fail. They may struggle to gain essential experience and knowledge without the opportunity to make mistakes.
While it may not be ideal for the agency to endure losses that could have been prevented, granting team members the freedom to learn from their mistakes is crucial for developing resilience and problem-solving skills, which are vital for long-term success. This approach may be nerve-wracking at times, but it is essential for personal and professional growth.
In Torey's experience, there were fewer failures than expected. Instead, there were mainly different approaches to tasks, but no catastrophic failures that resulted in losing a client. This is fine as long as everyone agrees on what the deliverables are and what the client expects.
Furthermore, to start letting them solve issues on their own, you can use the 1-3-1 framework. If an employee comes to you with a problem, turn it into a learning opportunity by asking them to come up with three possible solutions for that problem and then you’ll ask them to choose one. Eventually, they’ll stop coming to you and just come up with the solution on their own. Ultimately, if you’re trusting them to handle the task it’s because you believe they’re ready.
Strategic Sacrifices and Lessons LearnedStaring the agency around the time of the collapse of the housing market meant a lot of struggles and no clients at first. Back then, Torey felt he needed people around him to help him scale so he decided to sell a majority stake in his business. In hindsight, he sees this as a move born out of desperation since he had a clear enough vision and he would have eventually gotten there on his own.
It also wasn’t about the money, as not a lot of money was exchanged. In the end, his biggest regret is giving up too much and not keeping a majority stake himself. However, he recognizes he just didn’t know back then, which is a must to have a clearer picture when it comes to negotiations.
Get Unstuck in Your Agency: Build the Confidence to SucceedWhen it comes to decision-making, Torey believes leaders should have the ability to make prompt decisions, take decisive action, and not become mired in overanalyzing every detail. This may lead to making some decisions without fully calculating the risks, but for Torey, the growth you gain is worth it.
Being able to make quick decisions when needed says a lot about a leader’s confidence in themselves and their team. Torey trusts his instincts and prefers to move and implement instead of thinking too much about it and losing momentum. Whenever he feels the need to consult on a decision, he reaches out to other entrepreneurs he respects and who have been through similar situations. Most of the time they only reinforce what he was already thinking, but sometimes that’s what you need.
Learning from both successful and unsuccessful decisions is crucial for personal and professional development. Ultimately, the greatest regret would be failing to make a decision. Having the confidence to take action and live with the consequences not only yields valuable insights but also contributes to making more informed decisions in the future.
Cultivating Self-Trust by Embracing UncertaintyFor many, trusting yourself and your decisions will take practice, and the more you do it the more comfortable you’ll feel. Torey rarely second-guesses himself and once he makes up his mind to do something, he gets to work. For him, this is a crucial skill for any agency owner who wants to test things and move to the next level. In this sense, it helps him to think there’ll never be a point in his agency’s growth where he feels 100% sure of the next step. Each step of your growth will come with its challenges and, even though he’s learned a lot as an entrepreneur and continues to implement those lessons into how he operates the agency, more revenue doesn’t guarantee having everything figured out.
Looking back, challenges have taught Torey that all problems are solvable, and by planning, and knowing how to identify the real problem, he and his team will surely come up with a solution.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Do you fear missed opportunities if you define a niche or turn away less-than-ideal prospects? Today’s guest started his agency as a college student and pivoted to digital services as the internet barely became a thing. One of the biggest shifts and struggles in his journey has been overcoming the fear of tuning down revenue and letting go of the notion that his way was the only approach clients would respond to. Tune in to learn valuable insights on navigating the agency landscape, committing to a niche, and maintaining a thriving business while prioritizing well-being.
Brendan Chard is the owner and founder of The Modern Firm, a digital marketing agency for solo and small law firms. His team helps attorneys build an online presence tailored to their needs and creates client partnerships at a pace that feels right for them.
Brendan shares his journey of starting initially as an IT business and evolving it into a successful agency serving clients nationwide. He discusses the importance of avoiding burnout in the agency world and the elements you need to find the right balance between fulfilling work and owning your time.
In this episode, we’ll discuss:
Overcoming the fear of turning down profit.
Managing workload with forecasting and hiring ahead.
Lessons from a workaholic anonymous.
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Sponsors and ResourcesCopper: This episode of Smart Agency Masterclass is sponsored by Copper, a CRM solution built specifically for agencies that use Google Workspace. Its CRM integration works seamlessly with Gmail, Google Calendar, and Drive, so you never have to switch tabs to add leads, track email conversations, find files, or manage tasks in your marketing or sales process. Head over to Copper.com/agencies and get a free trial exclusively for Jason’s listeners!
How the Right Mentorship Turned a Side Hustle into a Digital AgencyStarting out in his dorm room at college, Brendan initially focused on providing IT services for small businesses. He had a knack for repairing computers and his results gradually led to being connected with several law firms that kept recommending him to others in the legal space. This was during the early days of the internet when clients began requesting website development in addition to IT services. Despite initial skepticism about the internet's longevity, Brendan transitioned to website development and digital marketing.
It was a unique time for him to start the agency since being in business school gave him access to a lot of tools and mentors available to guide him through the process. He learned a specific business strategy one day, tried it the next day at his agency, and then reported back to professors.
Overcoming the Fear of Turning Down Revenue for Focused GrowthIt took about eight years for Brendan to get his agency to the 7-figure mark. He recalls several bad decisions in terms of clients/projects taken to get there, which he now actively avoids.
In light of this, he focuses more on finding the perfect client fit, although he admits it’s something he still struggles with. While his agency operates in the legal vertical, they eventually discovered that their optimal niche was working specifically with solo and small law firms. They found that collaborating with larger firms resulted in increased stress and less enjoyable projects, as committees rather than individual owners made decisions.
Nonetheless, finding their perfect niche and learning to say no to the wrong clients didn’t happen at the same time. Brendan was very clear on the agency’s focus and knew it was better equipped to work with small forms. When it came to rejecting someone who was just not the right fit, however, it meant turning down potential revenue. It’s taken several misses to learn that, ultimately, not working with the wrong clients leads to a more streamlined and successful business model.
Why Forecasting and Hiring Ahead Is The Best Practice For Manageable WorkloadOne key moment for the agency came when they figured out systems to filter out unsuitable prospects and hone in on their ideal customer avatar. This shift coincided with Google's rise as the dominant search engine, resulting in a surge of organic leads and referrals. It marked a significant leap forward. However, the influx of work soon outpaced their capacity, prompting a reassessment of their hiring needs.
Until that point, Brendan was focused on growing the business conservatively, with a team intentionally built to manage the workload and balance the work without getting overwhelmed. Brendan knows it is important for businesses to find a balance between taking on new clients and ensuring they can deliver high-quality work to existing clients. At some point, however, it became common to constantly play catch up with hiring new team members as the business grew, which quickly became exhausting.
More recently, they’ve developed systems to hire ahead to avoid burnout and ensure sustainable growth. Hiring ahead of the curve allows them to bring on new team members before they were desperately needed, giving space for a smoother onboarding process and a more manageable workload for everyone involved. This way, new hires can be trained properly and have a smaller workload instead of being thrown into the fire.
Avoiding Burnout: Lessons from Workaholics AnonymousFor agency owners, burnout is mostly the result of comparison with other entrepreneurs and convincing yourself you’re lagging. As someone keenly aware of the risk of burnout, Brendan has made a conscious effort to avoid the pitfall. Nonetheless, early in his days of owning the agency, he did end up attending Workaholics Anonymous meetings, where he learned two valuable lessons:
1. Letting go: The meetings were spaces where he got to turn off all devices and be present. As a result, he was able to focus on something else and the agency didn’t burn to the ground while he did it, proving he had done a good job training his team.
2. Putting things into perspective: At the meetings, Brendan was surprised to see many of the other attendees were pastors. He learned that as spiritual leaders, they support their communities through the hardest times in their lives, including the death of loved ones. This helped Brendan put things into perspective. Agency work may feel like life and death matters sometimes but the sense of being tied to the agency is more the result of poor management.
The Wake-Up Call That Shifted an Agency's Course Towards Better LivingAlthough it’s not the most popular concept, Brendan believes that lifestyle should be a central focus when building a business. For him, his values around time and autonomy are baked into the core of how his agency operates.
It’s a philosophy that was forced on him after his son was born with a potentially serious medical condition. As it dawned on him that this was something he needed to focus on and that meant delegating, he trusted his director to take over sales, which ultimately led to a positive outcome. Entrusting his director with sales responsibilities resulted in a positive outcome, highlighting the significance of empowering and collaborating with his team. It was a game changer that changed the course of his agency.
As the business grows, agency owners shift their focus from day-to-day operations to strategic vision, team development, relationship building, and understanding key performance indicators. It can be a challenging transition, but it can lead to greater success and fulfillment in the long run.
Letting Go of Control to Find Balance in Agency Operations and LifeBrendan's reluctance to give up control of agency operations stemmed from his firm belief that there is only one correct way to do things or that clients will only accept one specific approach. In reality, granting his team the freedom to find their methods often leads to better results. Moreover, there is far more room to explore and experiment with new approaches than he may have realized. In the end, clients are primarily interested in the outcomes.
This is the first step to giving yourself the space to create balance in your life. For Brendan, that means making a good income, interesting work, with flexibility and autonomy over his time. The balance is crucial for overall satisfaction and fulfillment in both personal and professional life and is something he always keeps in mind when he thinks about the agency and the life he wants to build.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Are you struggling to keep your clients happy and retain their business? How do you prepare your team to create the best client experience? In today's competitive market, delivering an exceptional client experience is paramount. Our guest today is a true master of client service, leading a team laser-focused on understanding each client's unique needs and proactively crafting tailored solutions that address their pain points head-on. Tune in to learn strategies for client retention and growth in your agency business.
Khushbu Doshi is a customer service specialist passionate about strategizing, making realistic action plans, and following up on their implementation to get real results for agencies. She leads the customer service and sales division at E2M Solutions, managing a portfolio of 200+ agency clients, and works closely with a team of 20 to ensure client satisfaction.
She’s been on the show before discussing ways to improve customer success and reduce churn. Int his episode, she’ll share insights into the importance of building trust and providing value to clients to foster long-term relationships.
In this episode, we’ll discuss:
Strategies to building trust and efficiency.
Understanding client needs.
Reviving client engagement.
The always & never exercise.
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2 Reasons Agencies Lose ClientsClient satisfaction and retention are crucial for any business and building trust through efficient service is a key way to grow your client base. In essence, there are two main reasons an agency may be losing clients:
1. Clients don’t understand the value your agency is providing, or
2. You’re bringing on the wrong agency clients.
To illustrate the impact of client satisfaction, Khushbu talks about the Delta 4 Framework, a way to rate client experiences that can be applied to products and services. Results of this framework will show your service’s efficiency, with a rating of four or above indicating that clients are unlikely to switch to a less efficient option. In the case of Uber versus traditional cabs, Uber's efficiency rating was eight, hinting that clients would rarely go back to using regular cabs.
Businesses can then keep track of their efficiency and rate themselves in terms of client satisfaction or a particular project. According to Khushbu, results from applying this framework should be met with the curiosity to find out “why” and what’s behind said results. If clients are unhappy with the service, why is that? The answers will help you define a roadmap to deal with those metrics.
Efficiency is not just about completing tasks quickly, but also about providing a seamless and effective experience for clients. When a service is efficient, clients are more likely to share it with others, leading to word-of-mouth recommendations and further growth for the business.
Understanding Client Needs and Tailoring Solutions for SuccessEveryone brings a different set of expectations to the agency-customer relationship. Agencies should try to understand their clients’ pain points better. At E2M, they focus heavily on defining these pain points during the first client call and then tailor their offering to fit the solution that particular client needs.
For example, if a client lacks technical expertise, the agency can step in as a technical expert to provide the necessary support. If a client struggles with communication, the agency can act as a project manager or account manager to streamline communication processes and save the client time.
This approach is crucial in ensuring that clients save time and become more efficient, ultimately leading to a more successful and fruitful relationship between the agency and the client.
Furthermore, Khushbu highlights the importance of ongoing communication and follow-up with clients even after delivering a service. Checking in with them and ensuring the solutions provided meet clients’ needs and expectations helps the agency continue to build trust and strengthen the client relationship. It’s a proactive approach that not only helps retain clients but also establishes a reputation as a trusted and reliable partner.
Unlocking Agency Growth by Harnessing the Power of Existing Client RelationshipsIf you’re looking to elevate your agency's growth strategy, 70% of your success lies in your existing client base. It's all about deciphering the right metrics, tracking client health, and mastering the art of scaling relationships to ensure a seamless dance of value delivery and exceeding client expectations.
One of the main KPIs to track is the client retention ratio, which measures the percentage of clients that continue to work with the agency over time. Khushbu and her team take it a step further by categorizing clients into green, yellow, and red zones, unveiling insights that guide tailored strategies. From nurturing green advocates to championing red and yellow clients with extra attention, this personalized approach paves the way for sustained growth and client satisfaction.
Reviving Client Engagement with Success Stories & FOMOEver wondered how to rekindle the spark with clients who've gone MIA? It's a common fear — reaching out could lead to cancellations. Khushbu recommends approaching them with success stories, highlighting how they could be using their plan and the results they could be getting.
Try to stir that competitive spirit in them that says, “If this other client is getting these results why can’t I?” She describes it as creating FOMO around your services and the benefits they could be getting from the plan they’re already paying and it’s a way to be proactive in identifying and addressing challenges before they escalate.
Agencies must be more proactive about assessing the value they are providing to clients. Outsourced solutions may be seen as implementers or order takers, but Kushbu knows the importance of taking care of clients in a strategic way. By asking questions like "Are we delivering value?" and "What are the results we are actually delivering?" agencies can stay ahead of potential problems and ensure that they are meeting their clients' expectations.
Using ‘Always and Never’ to Train Your Agency Team to Deliver Exceptional ServiceFor Khushbu's team, client satisfaction is at the core of everything they do. But how do you ensure that your team is consistently delivering exceptional service? She has a few exercises up her sleeve that are game-changers.
One of her favorites is the "always and never" exercise – a simple yet powerful way to get everyone on the same page. Team members list out the things they always want clients to say about their service and the things they never want to hear. This exercise helps team members understand what clients expect from them and how they can work together to deliver exceptional service.
Once those lists are created, it's time to roll up their sleeves and get proactive. The team dives into contingency plans and potential solutions for any problems that could lead to client dissatisfaction. It's a preemptive strike against potential pitfalls. Additionally, Khushbu regularly asks team members the hardest problem they’ve solved for a client. This way, they’ll be more conscious when it comes to asking themselves “Am I solving the client’s problem right now?” It’s also a way to constantly capture client success stories.
With exercises like this, her team is primed to deliver exceptional experiences that keep clients coming back for more.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Would you say your agency is like your baby? Could you be so emotionally attached to your business that you may be stifling its growth? Today’s guest will share his experience growing an agency and the turning points that allowed him to make real progress in its growth. From learning to communicate his agency's vision in a way that inspired buy-in to the surprising struggle of carving out space for a personal life amidst the chaos of entrepreneurship, his biggest challenge was letting go of the belief that he alone was the driving force behind its success. Tune in to learn his valuable lessons and tips for agency success.
Suken Shah is the owner of Envision Marketing, a digital agency that works with clients to find the right strategy that will them find success online. They mostly work with small businesses to help them build their website, SEO presence, and get more leads. Suken shares insights and stories from his 10 years of agency growth and the mindset shift required to see real agency growth. Tune in to learn his valuable lessons and tips for agency success.
In this episode, we’ll discuss:
The problem with calling your agency “your baby.”
Learning to communicate your worth.
The power of communication and transparency.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesCopper: This episode of Smart Agency Masterclass is sponsored by Copper, a CRM solution built specifically for agencies that use Google Workspace. Its CRM integration works seamlessly with Gmail, Google Calendar, and Drive, so you never have to switch tabs to add leads, track email conversations, find files, or manage tasks in your marketing or sales process. Head over to Copper.com/agencies and get a free trial just for Jason’s listeners!
Embracing the Entrepreneurial Leap & The Unexpected Realities of Agency LifeSuken never had concrete plans to establish an agency. His journey into the world of digital marketing began when he was offered a teaching opportunity at the University of Nevada. Eager to excel in his new role, he delved into digital marketing, eventually formalizing his business as an LLC and initially running it as a side venture. He approached the transition from his corporate job with caution, gradually embracing the potential of his digital business as it gained traction.
As he embraced his new role as an entrepreneur, the most unexpected aspect of owning an agency was the sheer amount of effort required to build a team, attract and retain clients, and steer the business in the right direction. Suken was taken aback by the challenge of taking breaks and carving out personal time amidst the demands of the business.
Initially, he anticipated owning a business would allow him to maintain a similar income level as with his corporate job while having more free time. However, the reality was markedly different. As an agency owner, he found himself being the first to arrive and the last to leave, bearing the brunt of responsibility and often being the scapegoat for any misstep.
Driven by the fear of losing clients, Suken dedicated himself to client acquisition and business growth. His commitment to delivering exceptional results led to organic growth through client referrals, solidifying his agency's reputation.
The Problem with Calling an Agency “Your Baby”Suken is still navigating the process of relinquishing control over certain tasks, acknowledging that it's a work in progress for him as a business owner. Delegating tasks used to be a struggle for him as he wanted things to be done a certain way. His agency, in many ways, has been like his 'baby', making it emotionally challenging to entrust control to others. This emotional attachment is a common experience among business owners who have poured their time, energy, and passion into nurturing the growth and success of their ventures.
After years of dedicated efforts to witness the gradual growth and success of an agency, it has become a source of immense pride. However, this attachment can sometimes lead to decisions being influenced by emotions rather than what is truly beneficial for the business's growth and success. Moreover, tying one's identity exclusively to the business can also impede growth by hindering the ability to delegate tasks and gain trust in the capabilities of a team. When a business owner views themselves as the sole driving force behind the agency's success, it may be challenging to empower team members and entrust them with greater responsibility.
Gary Vaynerchuk and VaynerMedia is a great example of how to do this right. He’s an incredibly successful agency owner, podcaster, and YouTuber yet he would most likely refer to himself as a creative and describe his qualities rather than define himself by what he’s doing at the moment.
Ultimately, building a successful agency requires a shift in mindset from being a hands-on entrepreneur to becoming a strategic leader. This transformation involves acknowledging one's strengths and weaknesses, delegating tasks, and empowering employees to take ownership of their responsibilities.
Quantifying Your Agency's Value Beyond Billable HoursWhile having made progress in this area, Suken acknowledges he is still in the process of determining how to accurately price the agency's services based on the value they offer to clients. Quantifying the value of the services provided involves a deep dive into self-discovery and self-assessment and can be quite challenging, as it is a subjective process that evolves.
It is most likely inevitable to undercharge clients at some point and it did happen to Suken; however, through experience, client feedback, and a proven track record of success, agency owners can develop a better understanding of their worth and the impact they have on their clients' businesses.
An essential step in determining the agency's value is to begin tracking results. Whether it is revenue, leads, or website traffic, measuring metrics that are crucial to clients can effectively demonstrate the impact of the agency's work. This approach will assist in effectively communicating the agency's value and setting prices that align with this value. Suken began taking measurement more seriously around five years ago and has since become more disciplined and proactive in this aspect.
The Power of Communication and Transparency with Your Agency TeamSuken's top priority this year is to enhance agency communications, and he knows the work starts with him. He places great importance on actively engaging with team members and clients to ensure alignment and progress toward shared objectives. As part of this, he plans to conduct regular meetings and encourage team members to communicate extensively with clients through various channels.
Moreover, he advocates for transparency when it comes to addressing project challenges. He believes in openly discussing hurdles and potential issues with clients, rather than solely focusing on successes. He emphasizes the value of honest conversations, as he believes they can lead to effective solutions. Instead of the common practice of masking results or showcasing only positive outcomes, he believes that honest dialogue can foster trust and positive relationships with clients.
Furthermore, Suken's team has gotten better at preparing and communicating comprehensive plans to clients. They have established a thorough onboarding process, involving multiple team members in client meetings and documenting essential information to ensure everyone is aligned and working towards a common goal. This commitment to transparency and collaboration not only builds trust with clients but also sets the stage for the successful delivery of results.
Creating Effective Connections Strong Team CultureRunning a virtual agency, Suken is aware that building rapport virtually is not the easiest thing to do. Still, it can be effective in creating a sense of connection and understanding between parties. In any case, effective communication goes beyond just meeting in person. It also involves actively listening, showing empathy, and being present in conversations.
Furthermore, clients are becoming more aware of how technology can streamline processes and reduce costs, leading to a shift in expectations when it comes to meetings and communication. Being mindful of these changes and finding ways to leverage technology to improve efficiency will help agencies adapt to meet the needs of their clients while still delivering high-quality services.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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As an agency owner, have you explored the possibilities of content creation? Has it proven effective in building an audience or generating leads? Today’s guest is an agency owner who has been writing books and collaborating with different publications for years. However, he finds that, for marketers, content doesn’t really bring a lot of leads. For him, it’s all about the credibility and trust you build through that content. He’ll discuss why content creation nowadays is all about credibility and learning to adapt to leverage new tools. He’ll also share why he chose an agency model that veered away from the more common use of RFPs and how it helped him tap into a well of talent waiting to find a meaningful job. Tune in to hear his thoughts regarding RFPs vs, referrals and the tools you should be leveraging in your content creation.
Scott Gillum is the founder and CEO of Carbon Design, a B2B marketing services firm that uses the power of audience insight to increase conversations, engagement, and revenue for clients. Scott shares how his agency has evolved its model to focus on efficiency and effectiveness for midsize companies by utilizing all contractors.
In this episode, we’ll discuss:
The agency model that helps you tap into a well of talent.
Moving away from RFPs.
Why content is KEY.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
Building an Agency Model Around Work-Life IntegrationSince his start in the industry, Scott has been always intrigued by engagement rates and frequently referred to Gallup’s data – a multinational analytics firm that conducts workplace consulting research – and found the results were frankly concerning. In the 25 years that Gallup has been measuring employee engagement rates, it has never been above 32%. Additionally, at least 15% of the surveyed employees felt actively disengaged.
Scott also worked as a management consultant for a while and observed people usually leave their jobs to attend to family life responsibilities like taking care of their kids or sick parent. He could see how much they struggled to balance both and ended up disappointed. Around this time, he was in conversations with an agency that offered him to work on a different and very meaningful project.
He pitched the idea to build a model that would allow an agency to tap into a well of talent looking for meaningful work but have to deal with the difficulties of being a main caretaker. “There are 5 million stay-at-home moms looking for meaningful work. It’s unused capacity we could tap into,” he explains.
The decision to engage solely with contractors also significantly influenced the agency’s operational approach. Scott notes they operate entirely on referrals, focusing on inbound leads and project-based work rather than traditional retainers. This is how his agency has operated for the past six years.
Referrals over RFPs: The Power of Building Relationships in Agency BusinessIn the agency world, one of the traditional approaches to acquiring clients involves responding to Requests for Proposals (RFPs). These documents outline the client's requirements and ask agencies to submit proposals detailing how they would meet those needs. However, there is a growing trend among agencies to rely less and less on engaging in the RFP process. It’s a shift that highlights the power of building relationships and trust with clients, and the benefits that come with it.
In their six years operating, acquisition of business has been the hardest part for his agency. Being 100% referral-oriented, they don’t typically respond to RFPs, don’t believe in retainers, and focus exclusively on doing good project-oriented work, building trust, delivering quality work, and fostering long-term relationships with clients. Their goal is that clients are completely satisfied with the results and hire them again.
For agencies seeking to move away from RFPs, a potential approach could involve offering a reduced fee for a consultation to gain a better understanding of the prospect's needs. Spending at least one hour to build a tailored plan based on the client's input can demonstrate the agency's commitment. If the client approves the plan, they can choose to engage with the agency, or implement the plan themselves. If the client is dissatisfied, they receive a full refund.
How do you respond to an RFP? Watch this 2-min video for Jason Swenk’s answer.
Content is KEY: From “Publish or Perish” to “Adapt or Die”Writing, podcasting, and video creation are great lead generators in sales and things agency owners are encouraged to do to attract clients. However, as an author for several publications and books Scott finds that marketing is much more about building trust, establishing relationships, and ultimately driving business growth.
Content creation allows agencies to showcase their expertise, build credibility, and connect with their target audience on a deeper level. By consistently putting out valuable and engaging content, agencies can attract new clients, retain existing ones, and differentiate themselves from competitors. In Scott's case, he predominantly produces informative material based on client research and experience. Two additional ways for him to leverage his writing to build relationships could be to:
1. Approach industry experts for interviews, thereby enhancing audience trust and fostering connections, and
2. Take his research and advice to other formats like audio and video.
With the widespread popularity of audio podcasts and video content, it's crucial for agencies to adapt their content strategy to align with their audience's preferences. The emergence of AI tools that facilitate script creation and video editing underscores the need for agencies to be open to experimenting with new formats and embracing emerging technologies to remain relevant and competitive.
Establishing Trust Through Content: The Role of Credibility and ExperienceWith content creation becoming much more accessible thanks to AI tools, the other side of the coin is that a lot of bad content is thrown into the mix. According to Scott, some of this content is concerning because it has no knowledge or research to back it up. “We have a generation now that understands marketing tools but doesn’t understand marketing very well,” he says.
Credibility will make the difference between audiences more keen on either receiving well-researched facts or the opinion of a trusted source. In this sense, experience will play a crucial role in establishing credibility. The audience will typically look at someone’s practical experience in a particular field before offering opinions or advice. For instance, young life coaches who may not have experienced enough in life to truly understand and guide others will likely have low credibility compared to their more experienced counterparts.
Ultimately, credibility and experience go hand in hand when it comes to creating content. By combining a strong knowledge base with practical experience, content creators can establish themselves as trustworthy sources of information and opinions. This, in turn, helps build a loyal following and enhances the impact of their content.
AI Tools You Should Check Out in 2024AI tools have been ubiquitous in the past year, and this year promises even more potential for those in the industry looking to leverage their capabilities. Scott utilizes widely used tools such as ChatGPT 4 and has recently partnered with Cassidy, a company that offers AI tools for website content creation and image generation, which can also aid in brainstorming. Scott finds that other tools frequently require updates, leading to the need for continuous adjustments to yield accurate results. In this sense, Cassidy seamlessly integrates with G Suite, allowing it to analyze files, proposals, emails, and more to facilitate content creation.
This type of AI tool can be extremely beneficial for small business owners and agency owners who are juggling multiple tasks and responsibilities. With the right information, AI tools like Cassidy learn from you, work for you and can help content creators save time and effort by automating certain processes and getting assistance in pulling relevant information from past projects. Will AI replace agencies? No — and learning to efficiently use these tools opens a lot of doors.
Overall, Scott remains optimistic about the potential of AI tools to be additive rather than replacing human workers. He emphasizes that AI tools can assist teams in finding past project work, pulling relevant information, and overall making the job easier for content creators.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Are you fed up with the revenue roller coaster? Ready to get off and build an agency business model focused on sustainable profits? Maybe you’ve heard the saying "revenue is vanity and profit is sanity.” Our featured guest today experienced significant sustainable growth after breaking free from the “revenue trap.” By shifting the focus from revenue to the bottom line, he saw a remarkable shift, leading to financial stability and long-term sustainability. Listen or read to discover how this agency owner navigated through adversity, turned his business around, and expanded his team to more than 700 members.
Robert Berkeley is the co-founder of EKCS, a creative agency specializing in turning ideas into multiple assets. His team works with brands, agencies, and media companies as an extended team that helps them overcome creative production challenges, gain efficiencies, and improve ROI. Robert shares insights on partnership dynamics, dealing with negative people, and the importance of course correction when a business is heading in the wrong direction.
In this episode, we’ll discuss:
The key to partnership longevity.
Escaping the revenue trap.
Balancing client acquisition and retention for manageable agency growth.
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Sponsors and ResourcesCopper: This episode of Smart Agency Masterclass is sponsored by Copper, a CRM solution built specifically for agencies that use Google Workspace. Its CRM integration works seamlessly with Gmail, Google Calendar, and Drive, so you never have to switch tabs to add leads, track email conversations, find files, or manage tasks in your marketing or sales process. Head over to Copper.com/agencies and get a free trial just for Jason’s listeners!
The Key of Partnership Longevity: Respect, Trust, and Value AlignmentDespite their different styles and personalities, Robert and his partner work very well together thanks to a shared set of values and mutual respect. For Robert, their differences mean they can be great in the sum of their parts, which has been proved time and time again over twenty years together.
Business partnerships really are like marriages and their success often hinges on respect and trust between the individuals involved. Without respect, there’s no trust, and without trust there’s no way to make it work. In their case, Robert and his partner have a fundamental desire to maintain that respect, which keeps them from overstepping boundaries and helps make decisions that align with their shared values.
In their partnership, all major decisions are taken together and they would never make a key hire or approve any major move without the other’s knowledge. This allows them to communicate honestly and have each other’s back if those decisions don’t go as planned. When there is respect in a partnership, there is a willingness to listen, compromise, and work together towards common goals.
Navigating Declines in the Industry and Pivoting to ProfitabilityWith two decades of experience in the industry, Robert and his partner have weathered their fair share of setbacks and missteps. One of the biggest examples of this happened around their third year in business. They hadn’t quite broken through and did not have authority in the industry. Desperate for business, they eagerly pursued any opportunity that came their way.
Their initial foray into Google Ads led to a promising prospect in the form of a newspaper, which seemed like a solid bet at the time. Being good at what they did, they succeeded where others failed. However, the newspaper industry's rapid decline soon rendered their services obsolete, forcing them to reevaluate this niche.
After refocusing their efforts and downsizing the business by approximately 20%, they successfully navigated through challenging times. Seeking new avenues to leverage their skills, Robert recognized the potential in serving markets that prioritized quality over price, leading them to collaborate with creative teams. Many agencies and brands have creative teams but lack the resources or desire to manage production in-house due to fluctuating demands or limited creative capabilities. This became their main target and the right formula for his agency’s growth.
Why Focusing on Revenue is a MISTAKELooking back, Robert realizes that before pivoting, he and his team were overly focused on chasing profits rather than prioritizing revenue, which turned out to be a regrettable mistake. As the agency expanded, it became tempting to chase top-line dollar and assume that the costs would take care of themselves. However, focusing on profit means prioritizing the bottom line and ensuring that the business is financially stable and sustainable, making strategic decisions to maximize profitability and minimize costs.
One key lesson Robert shares is the importance of forecasting and planning for growth. By closely monitoring predicted revenue and aligning all departments within the company, including finance, operations, HR, and technology, his agency anticipated their needs and made informed decisions about hiring and resource allocation. This approach ensured that when a client required 20 or 30 people, finance was aware of the impact and costs, and HR was prepared to start recruitment.
Having a system in place ensures that new business won’t overwhelm the agency and prepares the business for growth without being caught off guard by sudden changes in demand. Robert also learned the importance of embracing CRM tools. Many agencies underutilize their CRM systems, missing out on valuable insights and growth opportunities. Rather than treating it as a glorified rolodex, investing time and effort into configuring and optimizing your CRM system can fully leverage its capabilities.
Pro tip: After many years of mocking the idea of having a business coach, now Robert says he wouldn’t do without one and it’s a move he highly recommends to all agency owners.
Setting Manageable Agency Growth by Balancing Client Acquisition and RetentionIn recent years, his agency’s efforts to build a more sustainable operation have led them to focus on a more customer-led approach to service delivery, instead of an operations-led approach, which supports their growth mission.
Looking ahead, Robert believes a 20% to 30% growth rate allows them to grow successfully and sustainably while maintaining their EBITDA and continue providing a great service for clients.
If you have a similar goal, remember it's crucial to consider churn when setting growth targets. Despite the agency's success in retaining most clients over the past four years, Robert acknowledges the impact of churn. For instance, if the agency plans to add $1 million but loses $200K due to churn, plan for $1.2 million growth instead.
Furthermore, it's essential to allocate a budget not only to acquiring new business but also to nurturing existing client relationships. Upon reviewing their client portfolio, Robert recognized the untapped potential for providing additional value. The agency is now actively working on demonstrating to clients how they can further benefit from the relationship to achieve their business objectives.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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When was the last time you stepped back to evaluate whether your agency's strategy is truly aligned with your core mission and values? Is your team buying into the overall vision? Are they motivated and understand their role in the vision? If not, it’s time you start integrating vision and strategy for more effective results. Today’s guest has set himself the mission of saving small businesses from failure by teaching them how to combine their vision with effective strategy. He thinks agency owners should think about strategy a lot sooner to avoid moving blindly with no particular purpose in sight. In t his episode, you’ll learn how having a clear vision statement can motivate your team and drive growth.
Jimmy Newson is the founder of Moving Forward Small Business, a membership-based organization that helps businesses grow and achieve their goals through practical and actionable advice. As a business and growth strategy consultant, Jimmy has worked with organizations of all sizes, but his specialty lies in working with small businesses and entrepreneurs. Jimmy is also a contributor and member of Leadership Network with Entrepreneur.com, where he shares his expertise on small business management and growth.
In this episode, we discuss:
Integrating strategy for clearer and more effective results.
Why you should rethink and adapt your strategy.
Building a purpose-driven team.
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Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
Strategy Can SAVE Small BusinessesAt his organization, Jimmy’s ultimate goal is to save one million small businesses from failure by 2050. Why small businesses? According to Jimmy, 99% of businesses in the United States are small businesses and the failure rate among them is alarmingly high. “You have to start questioning why that is,” he says.
Jimmy's personal experiences have given him a deep understanding of small businesses' challenges. Despite working with large organizations, he deliberately maintains a small team and leverages available technology to bridge the gaps. His goal is to empower small businesses to thrive by implementing effective strategies that ensure financial success and long-term sustainability.
Is a clear vision enough to create this sustainability? Jimmy highlights the need to create a business plan that aligns with your vision, mission, and purpose. He also stresses the need for a strategy that outlines the rules of engagement and guides decision-making. This strategy will become the guiding force that will keep the organization on track and allow business owners to make decisions that align with their vision and mission.
Once established, new opportunities for your business should always be examined under the guise of “Does this align with my strategy?” By aligning opportunities with their strategy, business owners can ensure they are moving in the right direction and avoiding potential pitfalls.
Is it Time to RETHINK Your Strategy?Most agency owners start out being good at something – whether Google ads, website building, etc. – However, once they step into the role of entrepreneur, they encounter various unfamiliar aspects of the business. “You don’t have to be good at all these things,” Jimmy clarifies, “but you have to be aware of them.” It’s about figuring out how to address these aspects of business without shouldering them on your own, which would probably not provide the best results.
The logical step is to hire a team and start delegating tasks. However, before that be sure to build a strategy that provides a path to reduce uncertainty around the future of your business. By developing a roadmap for their business, agency owners can navigate challenges and obstacles with greater ease.
Additionally, Jimmy suggests reevaluating and revising the strategy regularly to evolve and refine your vision and strategy and thus adapt to changing market conditions.
Building a Purpose-Driven Team to Cultivate Employee Motivation and CommitmentOnce you’ve established and integrated a strategy into your agency’s mission and vision, how do you get people joining your organization to buy into that vision? They should be aware that their role isn't just a job; it's a mission fueled by the agency's core values. This is the power of having a compelling "why" behind your agency's vision.
As Jimmy emphasizes, people aren't just motivated by products or services; they crave purpose. When employees believe in the organization’s mission and values, they are more likely to be engaged, motivated, and committed to their work.
Having a strong "why" behind the agency's goals can help employees self-validate their reasons for being there. This sense of purpose not only benefits them but also the organization as a whole.
As a leader, it's your responsibility to provide employees with the necessary tools and support for success, while highlighting the significance of their work. Helping them see the bigger picture and understand how their contributions make a difference will significantly boost their motivation.
This is a key lesson that Jimmy learned the hard way, leading him to now refer to key team members as stakeholders. To him, a stakeholder is anyone associated with your organization who should be aware of their importance in its mission and purpose.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Is your agency leveraging CRMs to tailor personalized client experiences and nurture long-term client relationships? Are you tracking customer interactions from first message to delivery? In the dynamic world of agency-client interactions, CRM tools play a pivotal role in streamlining operations and enhancing customer experiences. Today’s guest has made customer satisfaction his focus even since his start as a graphic designer and now offers a CRM system designed specifically with agencies in mind. Tune in to learn valuable insights on client management and relationship-building strategies for agencies.
Steve Holm is the CEO of Copper, a CRM company that helps agencies track clients from initial interest to project delivery. He discusses the importance of building better relationships with clients and shares his background as a graphic designer and his experience in digital product development.
In this episode, we’ll discuss:
How design can translate to customer value.
Crafting a success path for designers at your agency.
How to effectively use CRM to navigate customer relationships.
One CRM designed specifically for agencies.
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Understanding How Design Can Translate to Customer ValueSteve's journey began as a graphic designer, crafting yearbooks for elementary schools using InDesign. He then transitioned to digital design at an agency collaborating with Facebook on feature and product development. Through his network of industry connections, Steve ventured into partnerships with various companies, eventually assuming a leadership role in product management.
His background in design and product management equipped Steve with the skills to create a vision and roadmap for his company based on the impact they aim to have on customers.
Since the beginning, Steve has seen that design can directly impact customer satisfaction and, as a result, business success. To him, the most important thing to keep in mind as you design is “what is the value this is giving to customers and how can I make a connection between my design and the value they’re receiving?” Making this connection leads to increased revenue or reduced turnover.
In his view, this approach translated well into the role of CEO, as he understood the significance of prioritizing customers, designing with the end consumer in mind, and working backward to the technology, rather than starting with the technology and trying to sell it. It’s a philosophy very similar to that of Steve Jobs, who believed in designing products that cater to the needs and desires of customers.
Establishing a Clear Path to Success for Designers at Your AgencyAs a designer who eventually transitioned to management roles, Steve knows that trajectory depends on the person. Throughout his professional journey, he has strived to elevate the role of design within strategic discussions to provide more avenues for designers to find fulfillment.
Establishing a clear career path for designers, encompassing both technical expertise and management responsibilities, is crucial for retaining top talent. However, not all designers aspire to or are suited for managerial positions; some excel as creatives and prefer to stay in that role. The problem is that in certain organizations managerial roles are perceived as the sole route for designers to have a significant impact on the broader vision.
At his organization, Steve focused on granting design a strategic role in project development. Addressing the issue of impact makes it easier to understand a designer's motivations for role transitions, their objectives, and how to support their success.
When designers only see themselves getting ahead by moving into manager roles, Steve perceives it as a flaw in company operations. Designers should have more participation in strategic decisions. By exposing them to the right conversations and strategies, agencies can leverage their expertise to drive innovation and create customer-centric solutions.
Navigating Your Agency’s Customer Relationships with CRMCustomer relationship management (CRM) is a crucial aspect of any business and, as such, agencies should provide world-class relationship building across every touchpoint in the customer journey. It’s the way to engage prospects and close more deals, as well as, retain existing clients to grow those accounts.
With ten years of experience in CRM and looking at it from end to end Steve believes it’s important to provide the utmost quality at every step of the process. How are you engaging with customers from the moment they reach out? How are you interacting? Are you making sure to get feedback on what went well and what can be improved post-interaction? The right answers to these questions will help you remarket and grow your business from existing clients.
For Steve, a key practice in this process is to have a CRM that tracks all these interactions, documents, and tasks for the post-sales, and project delivery stages all in one place, as well as trying to automate as much as you can. Automating relationship building at scale will allow you to improve overall efficiency across the customer journey.
Two Key Aspects to Get Better Results from Your CRM SystemThe main problem with CRM is data integrity because it is only as good as the data you put into it. Do you have the right data in the system? Without accurate and up-to-date data, the CRM system becomes ineffective and may lead to missed opportunities or miscommunication with clients. In this sense, Steve recommends automating data entry and integration with other tools such as email and calendar platforms to ensure your CRM system remains reliable and useful for managing customer relationships.
Another key aspect of using CRM effectively is customization. Different businesses have unique workflows and processes, so it is essential to have a CRM system that can be easily customized to fit specific needs. This includes setting up multiple pipelines for different types of customers or projects, and being able to adjust and tweak the system as needed to align with changing business requirements.
The CRM Designed Specifically for AgenciesCopper CRM, Steve’s business, recently reset their focus to relationship-intensive businesses, such as agencies, consulting firms, and financial services, which rely heavily on building and maintaining strong relationships with their clients, rather than focusing on high-volume leads and deals.
Copper serves as both a CRM and project management system, which sets it apart from similar businesses. This integration allows clients to seamlessly track the entire client relationship, from pre-sales to post-sales, in one tool.
With Copper, agencies can focus on growing their business knowing their CRM is set up for success.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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How do you prioritize between family time and business responsibilities as an entrepreneur and parent? How is that balancing act working out for you? Being an agency owners and a parent can be a bit of a mess and there’s no magic formula to balancing parenthood and being an agency CEO. For some parents, this means a lot of guilt about not spending enough quality time with their kids or not being 100% focused during family hours. Today’s guest started her entrepreneurship journey while eight months pregnant and has been constantly learning ever since. She’ll share some of the boundaries she’s learned to uphold to protect her family and rest time. She also explains why hiring was a daunting but key step towards improving both her personal and business life.
Audra Brehm is the owner of Brehm Media, a social media marketing agency focused on the beauty and fashion industry. She’s been on the podcast before talking about raising agency prices and why it does not scare away the right clients.
As a business owner and a mother, Audra discusses the challenges of balancing life and work, going back to starting her agency while eight months pregnant and learning to embrace imperfection. Tune in to hear insights on making it work and finding success in business while navigating the demands of family life.
In this episode, we’ll discuss:
The boundaries need to balance motherhood and being an agency CEO.
Embracing imperfection to find work/life balance.
how hiring the right team will set you free.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
The Balancing Act of Being a Mom and an Agency CEOBalancing work and family is a common struggle for many individuals, especially for moms running their businesses. Audra jumped into the adventure of being a business owner while still eight months pregnant with her second child.
It was not exactly her plan. Freshly moving to Colorado and interviewing for jobs, she was presented with the choice to either relocate to Florida for work or start her own consulting firm with that brand as her first client. Being a self-declared bad employee, the possibility of becoming a business owner appealed to her even while eight months pregnant and she jumped at the opportunity.
Although excited about launching her business post-baby, managing both her business and family proved to be a challenging task. Many working moms grapple with the fear of neglecting their families while pursuing their professional goals. The initial years were particularly demanding for Audra as her business demanded a significant amount of her time. Over time, she learned to prioritize her time commitments alongside her financial objectives. Failing to uphold self-imposed time boundaries can lead to feeling torn between family and business responsibilities. Now she has non-negotiable boundaries such as being present during weekends or after a certain hour.
Does this mean she advises postponing starting a family until after establishing your agency? No. There’ll never be a perfect time to have kids, just like there’s never a perfect time to start a business. Audra’s advice is to stop pushing things off and just treat both with care. If you aspire to have a family and run an agency, you will find a way to strike a balance. It's a challenging juggling act that requires diving in and taking action rather than waiting for the ideal moment.
Finding Work/Life Balance Through Delegation and Goal SettingLike Audra, many agency owners experience the guilt and stress that often come with trying to juggle both family and business. She’s found the way to be present in both aspects of life is to set clear boundaries. She has also learned to delegate tasks, set goals, and communicate with her children about the demands of her work. This open communication has allowed her to involve her children in her business and help them understand the importance of her work.
Similarly, Audra prioritizes quality time with her husband, who also serves as her COO. They have intentionally set aside dedicated hours each week to simply enjoy each other's company without discussing work or family matters. This practice helps them nurture their relationship beyond their roles as parents and business partners, preventing burnout from an exclusive focus on work.
Of course, accepting imperfection will also be key to finding peace as you try to balance both worlds. Audra believes even the smartest and most successful people have figured it all out yet. It’s a real struggle to maintain a good family life, be an engaged significant other, and have a successful business all at the same time.
“It’s a grind all the time and it’s okay to acknowledge that,” she says.
As a mom and a business owner, Audra knows giving herself grace and recognizing that it is okay to make mistakes or fall short is not only ok, it’s essential.
Hiring, Firing, and Finding the Right Employees to Set You FreeOne of the key lessons Audra strives to impart to her kids is that you don't have to wait until retirement to start living life to the fullest. It's possible to build a thriving business while raising a family - the key is learning to find joy in the journey, through both the highs and inevitable lows.
Will there be challenging days where you feel stretched thin as a manager and parent? Absolutely. But there will also be triumphs when everything clicks into place. The path is about embracing the ebb and flow.
For Audra, one of the biggest game-changers in her work-life integration has been making the right hires, even if it represents an initial financial strain. Once intimidated by the prospect of expanding her team, she can attest that leaping to bring on supportive talent was one of the best decisions for her agency's growth and her own sanity.
With around 15 employees now, Audra can step away trusting her team will handle everything. "Are we the biggest agency? No. But I can walk away and come back without anything going up in flames," she remarks.
Of course, building a solid team is an ever-evolving process. It requires having the humility to learn from hiring missteps, the courage to make staffing adjustments when someone isn't the right fit, and the wisdom to provide learning opportunities that unlock each person's potential. By staying open-minded, nimble, and committed to continuous improvement, agency leaders can assemble a talented crew that propels the business forward while enabling a sustainable work-life balance.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Gary Vaynerchuk and Steve Jobs both became the face of their brand, but could this marketing strategy cost you when it’s time to sell your agency? How can you avoid becoming the brand to build a ‘sellable’ agency? Today’s guest is an entrepreneur who has successfully started and sold four businesses. He discusses the value of personal brands in relation to company success and delves into the challenges faced by service companies in building assets compared to tech or SaaS startups. Tune in to learn about common mistakes made by agency owners when considering selling their businesses and the pitfalls of an obsession with scale.
John Warrillow is the founder and CEO of The Value Builder System, a sales and marketing software for business advisors to find, win and keep their best clients. In addition to having started and exited four companies, John is the best-selling author, Built to Sell: Creating a Business That Can Thrive Without You.
In this episode, we discuss:
How to add value to your agency.
Build a ‘sellable’ agency.
Equity rolls vs. earn-outs.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesCopper: This episode of Smart Agency Masterclass is sponsored by Copper, a CRM solution built specifically for agencies that use Google Workspace. Its CRM integration works seamlessly with Gmail, Google Calendar, and Drive, so you never have to switch tabs to add leads, track email conversations, find files, or manage tasks in your marketing or sales process. Head over to Copper.com/agencies to get a free trial just for Jason’s listeners!
How Businesses Fall into the Revenue PitfallAgency owners and service-based businesses often fall into the trap of overvaluing their companies when considering selling them. This common mistake is rooted in their relentless pursuit of growth and expansion. As a public, we tend to idolize big companies as opposed to good companies. This can turn into an obsession that leads agency owners to focus solely on increasing revenue, rather than building systems and processes that can make the business less dependent on the owners and founders.
This fixation on growth typically results in rainmakers focusing predominantly on their sales expertise, which, while driving business growth, also increases dependence on the founders. Paradoxically, this dependence diminishes the overall value of the business. For John, the obsession with growth does agencies a great disservice by creating a culture of focusing solely on revenue.
Consequently, businesses become so intertwined with the owner's presence that they essentially create a job for themselves rather than an asset that can thrive independently. This realization can be a bitter pill to swallow for many agency owners, especially when they recognize that their ego often drives these attitudes. By subscribing to the notion portrayed in "Mad Men" that their primary role is that of the charismatic pitchperson, they inadvertently create successful jobs rather than valuable assets.
An Easy Method to Add Value to Your AgencySo how can you avoid the revenue pitfall? John recommends agency owners take their CEO hat off from time to time and replace it with that of the parent of the business. In this sense, rather than micromanaging employees to hit revenue goals, empower them to take ownership of their work. They will feel greater pride and engagement, enabling the agency to thrive with or without you.
By prioritizing long-term sustainability you can increase your agency’s value and make it more attractive to potential buyers. It's not just about winning big clients or receiving accolades, but about creating a valuable asset that can stand the test of time.
John also introduces the concept of assessing agency services according to how "teachable, valuable, repeatable" (TVR) they are to make strategic business decisions based on this. The TVR framework encourages agency owners to assess each service based on how teachable it is to their team, how valuable it is in terms of differentiation from competitors, and how repeatable it is in terms of recurring revenue.
According to John, aency owners should focus on services that score high on all three criteria, as these are the services that will ultimately lead to a more sustainable and scalable business. This is not necessarily easy. Getting rid of some low-scoring services may mean walking away from 90% of your revenue. If this is your case, you can jettison the lowest-scoring services at least once a year.
Striking the Right Balance as an Agency CEOBuilding a business that can run without you and that you can eventually sell will also require you to make the transition from agency owner to CEO. This means assuming different roles like setting the vision for the agency, being the face of the organization, understanding the financials, and coaching and mentoring the leadership team.
Personally, John disagrees with Peter Drucker’s notion that the two key functions that a CEO should focus on are product development and sales/marketing. In the context of an agency, the CEO should prioritize activities that drive revenue and attract new clients. “If you’re doing those two functions, your business is worthless without you” he argues.
CEOs who are too public-facing and personally branded may undermine the value of their agency when it comes time to sell. This is because potential buyers may view a highly visible CEO as a risk factor, leading to a larger portion of the deal being tied to an earn-out agreement. Therefore, CEOS need to strike a balance between being the face of the organization and focusing on the core functions of sales and marketing.
How to Avoid Becoming the Brand: Tips for Becoming a “Sellable” AgencyWould VaynerMedia continue to thrive without Gary Vaynerchuk? Just like Apple continued to grow without Steve Jobs, the most important element of that business is Gary’s framework and methodology. What people like Steve and Gary did very well in each case is that the brand supersedes the individual.
In Gary’s case, many people might not realize who he is as a creator or tie VaynerMedia to him. In any case, building a powerful brand that can grow even in your absence is all about branding processes and not just people. Of course, a strong personal brand can be beneficial but it is also essential to establish the processes that drive the business. By doing so, agencies can create value beyond the individual personalities of their founders or leaders.
For agency owners who include their name in the agency name, John suggests branding the processes; for instance, “3 things we do before onboarding a new client”. Codify and brand these processes to create a more valuable and attractive asset for potential buyers. This way, agencies can demonstrate a level of consistency and professionalism that goes beyond any individual's involvement in the business.
By establishing and branding the processes that drive the business, agencies can create value that is sustainable and transferable, ultimately leading to long-term growth and success. It’s something you can do in stages and could take 2 or 3 years complete. It’s an important element of reducing dependency on individual personalities and create a more valuable and attractive asset for potential buyers.
Equity Rolls vs. Earnouts: One of these will cost you MILLIONSThe classic way an agency is sold is you get approached by the buyer who says they’re willing to pay X multiple for it. However, once you take a closer look at that price, it’s really 40% upfront, with the other 60% tied to an elaborate earn-out component where you become an employee of another agency.
Alternatively, John highlights how private equity companies are increasingly doing "roll-ups" to consolidate agencies, especially in ad tech and tech-enabled services. In an equity roll deal, the seller gets some cash upfront but rolls the remaining amount into an equity stake in the entity owning the agency. This provides pros and cons compared to an earn-out model and gives owners more control over the transition.
Equity rolls like majority recapitalizations allow owners to sell just a portion of their shares to receive some liquidity. This payout offers financial stability to pay off debts or invest elsewhere while still having skin in the game to take risks growing the agency. However, selling a majority stake means giving up decision-making control. Owners must be comfortable with a new role and adapt to having outside stakeholders that may bring conflicting interests, especially regarding earn-outs or integrating services across divisions.
For its part, an earn-out means you’ll lose control of the agency, so be aware of the potential pitfalls of this structure. Instead, Jason suggests a different approach where the seller prioritizes receiving cash upfront and maintains control over the company until the earn-out or period of time is completed. This gives the seller more agency in the sale process and reduces the risk of losing control over their business.
All in all, as a seller, be aware of what the acquirer is trying to do, their motivations, and how that aligns with what you want to determine whether or not an earn-out makes sense for you.
Prepare Yourself Against the Potential Pitfalls of AcquisitionsThere are potential pitfalls in agency acquisitions and it’s important to be cautious when considering selling or merging with another agency. Typically, as a seller, you have to be aware of the fact that you’re becoming a minority shareholder and giving up entrepreneurship for a job. Just be vigilant and protect your interests.
Do your due diligence when considering an acquisition and thoroughly evaluate the potential buyer and ensure that the terms of the deal are fair and beneficial to the agency. Furthermore, be wary of offers that may seem enticing on the surface but could ultimately result in a loss of control or value for the agency.
The most important way you can protect yourself is to understand the true value of your agency before entering into any acquisition agreements. Don’t allow yourself to be swayed by promises of high valuations or potential growth opportunities without thoroughly evaluating the risks and potential drawbacks of the deal and ensure that all parties involved in the acquisition are aligned in terms of goals, vision, and values to avoid potential conflicts down the line.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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Do you have enough of an appetite for risk to trigger exponential agency growth? Have you considered strategic partnerships as a growth strategy? Today’s guest changed the music scene for entrepreneurship and managed to grow his agency from $2 million to $16 million in just two years. How’d he do it? After getting past common initial struggles like developing sales and hiring the right people, he focused on strategic partnerships and found the right formula to scale his marketing agency. Tune in to learn from his incredible growth story and strategic approach to agency success.
Alex Rossman is the owner of Rossman Media, a socially led digital marketing agency that serves brands of all sizes to help them grow online, with a particular focus on social media. Rossman’s award-winning team is positioned for global expansion. He discusses the importance of having an appetite for risk and thinking long-term about company growth.
In this episode, we’ll discuss:
Learning when to hire employees.
8Xing a digital marketing agency.
How to minimize the risks in an agency acquisition.
SubscribeApple | Spotify | iHeart Radio
Sponsors and ResourcesE2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.
When to Hire Employees For Your AgencyAlex started out as a musician and was actually signed by a record label and touring at some point, all while maintaining a corporate job. However, the corporate job was draining and the music gigs weren’t profitable so he needed another way to balance his creative side while using his experience with sales and marketing. This led to his start in the agency world back in 2017.
Over seven years of steering his agency, Alex pinpoints hiring as his biggest challenge. Though his hands-on experience gave him insight into each role's requirements, finding candidates who could confidently take the reins proved difficult. Like many founders, Alex struggled to prioritize - should he start by beefing up sales or operations?
Eager to scale rapidly, Alex also fell into the common trap of over-hiring. Buoyed by high growth, he staffed up quickly rather than strategically. Soon he was building the plane while flying it, scrambling to course-correct profitability and organization.
To surmount hiring hurdles, agency owners need self-awareness around strengths, weaknesses, and business stage. Rather than focusing on rapid growth alone, smart hiring means filling gaps with experts who complement the existing team. This prevents overstretching capabilities and sets an achievable path for sustainable scaling.
Looking back, Alex wishes he balanced ambition with patience. Hiring is never easy, but by aligning roles and capabilities to the agency's most pressing needs, founders can build a thriving team equipped for the long-haul.
Centering the Utilization Rate to Increase Agency SuccessHaving learned from over-hiring missteps, Alex now centers his growth strategy on utilization rate and team optimization - two pivotal aspects for agency success. By closely tracking utilization, he ensures his team effectively spends time on client work, driving productivity and profitability. Now, Alex and the team rate incoming leads as high, medium, and low, which plays into how they decide to hire based on the amount of work they’ll have in the coming months.
Focusing on high-impact tasks and leveraging each team member's strengths, or "superpower," will also help you ensure you’re optimizing team performance and maximizing productivity. This approach not only benefits the agency but also serves the individual team members by allowing them to excel in their roles and contribute to the company's success.
Moreover, with an adaptable mindset, Alex continuously reevaluates team efficiency as the agency evolves. Assessing performance, identifying improvement areas, and adjusting roles over time is key. This may involve revisiting responsibilities, offering training, or reallocating resources to tap the highest potential impact.
8Xing HisAgency in Just Two YearsThe driving force behind the remarkable growth of his agency lies in strategic acquisitions. As the agency owner, Alex has diligently focused on enhancing services for clients and nurturing relationships with both clients and employees. Additionally, he dons his investor hat to assess the industry's current fragmented landscape. Recognizing an opportunity, Alex leveraged mergers and acquisitions to bring on board companies that not only aligned with the agency's culture but also addressed operational gaps.
In 2022, their pivotal acquisition involved the purchase of a complementary social media agency, a move that facilitated horizontal integration and bolstered the management team with fresh talent and clientele. Buoyed by this success, they have subsequently completed three more acquisitions, significantly fueling their expansion.
The Required Mindset Shift for Explosive GrowthIn the competitive agency world, organic growth hovers around 10% and, for Alex, thriving in this environment requires embracing a new mindset that welcomes calculated risks. For this, agency owners must step back from day-to-day operations and chart a course for where they envision their company in the next five years. This long-term perspective is essential for pinpointing growth opportunities and forging strategic partnerships that can propel the agency to new heights.
In light of this, Alex initiated discussions with agencies he had built strong relationships with over the years, exploring potential mergers. His approach was all about identifying the right agencies to acquire that align with his goals and values.
Successful mergers and acquisitions can yield numerous benefits, such as bolstering the management team, expanding the customer base, and venturing into new industries.
Of course, strategic acquisitions will also require agencies to assess the potential risks. “Do not think that you’re just buying a company to multiply your company by two or three,” Alex advises. Factor in potential setbacks like employee and client retention issues to better prepare for the challenges that may come with integrating a new agency into their existing operations.
Trying the Acquisition Growth Strategy? Minimize the RisksFor agency owners considering the acquisition growth strategy, Alex suggests starting small to minimize risk with the initial deal. In his experience, they began by acquiring a small lifestyle business with strong client retention and a vision that aligned with their agency's goals. Subsequently, they progressed to larger acquisitions with the second and third deals.
By effectively integrating and expanding these smaller acquisitions, the agency can confidently pursue larger opportunities. For funding, Alex eventually explored debt financing to support growth beyond what the agency's profits could sustain. This allowed them to secure the necessary capital for larger acquisitions and expedite growth. However, it's important to exercise caution when taking on debt and avoid personal guarantees to mitigate financial risks.
Agency Integration: How to Succeed after Mergers and AcquisitionsThe hardest part of agency growth through acquisitions is not the buying process, but rather the integration and scaling of the acquired agencies. Successful integration requires careful planning, clear communication, and a focus on aligning processes, systems, and cultures. You don’t want to come in and suddenly change everything that made that agency what it was.
Alex advises against quick changes and instead embraces the existing culture, systems, and processes of the acquired agency. Don’t rush into making changes that could disrupt the organization. Instead, take the time to assess the strengths and weaknesses of the acquired agency, identify key personnel and clients, and create a timeline for integration that can lead to a smoother and more successful transition.
In this sense, having a dedicated team or individual responsible for integration can also be beneficial. Alex handles some of these tasks and then hands them off to his directors. However, he’s planning to turn this into a dedicated role and have someone focused on identifying synergies, streamlining operations, and ensuring a successful transition for both parties involved. By having someone dedicated to integration, agencies can avoid overloading existing leadership teams and ensure that the process is given the attention and resources it deserves.
Do You Want to Transform Your Agency from a Liability to an Asset?Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.
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