Have you considered hiring remotely to help cut costs? Where would you look for remote employees that are still a good culture fit? Finding the right talent can be very challenging even if you’re looking locally. Trying to find great talent in a different country could be next to impossible without the right help. Today’s guests run an agency that offers white-label services and runs highly efficient recruitment services for US companies. They’ve perfected a process to find the best talent in Latin American countries and connect them to small and medium US companies looking to source top talent. They’ll reveal the basic parameters they consider as part of their recruitment process and how they match candidates according to their clients’ needs.

Carlos Corredor & Antonio Santana are the co-founders of Condor Agency, a digital marketing agency that helps US companies become more competitive by leveraging the best talent in Latin America. They serve as an agency partner that offers managing services and also recruits talent directly for their clients.

In this episode, we’ll discuss:

• Finding a gap in the market and providing high-quality services.
• Tapping into the Latin American market to source top agency talent.
• Understanding clients' needs and best interests.

 

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Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and getting a new perspective to the show.

 

Finding a Gap in the Market and Providing High-Quality Options

Over ten years ago, Carlos and Antonio were on the client side of the business, unimpressed by the quality of the work from agencies. Some didn’t understand their business and took forever to deliver results. Fortune 1,000 companies and other big clients get most of the agency's attention. Seeing the low quality of service agencies provided for small and medium businesses, they realized there was an opportunity to serve that sector.

Their agency, Condor, began as a managed services agency that worked with B2B companies in consulting, finance, and IT. They leveraged Latin American talent to help small and medium US companies grow. Years later, as things changed with the pandemic and people seemed more open to the idea of hiring remote talent they also started recruiting directly for their clients. Their recruiting service is targeted at agencies, offering an opportunity for smaller agencies to find skilled talent at more affordable rates.

Connecting US Companies with Untapped Latin American Talent

Coming from Venezuela where salaries were much lower, Carlos and Antonio were struck by the cost of agency work. This was especially shocking considering how little attention agencies pay to small and medium clients. However, they had a lot to learn from the US market.

Living in Chicago, they could see agencies delivering top-notch, specialized work. Nonetheless, they paid much more attention to the bigger clients. As a result, smaller clients were not seeing the same level of service or results. They were built to serve Fortune 1,000 clients, charging around $200 an hour or more. They were also very well structured, with dedicated teams handling the different service areas.

Hence, if they were serious about entering the agency space, Carlos and Antonio needed to play in the same league. They needed to offer quality and speed in order to be competitive in the US market.

Additionally, they understood Latin America is a great source of untapped talent that most US agencies hadn’t considered. At first, they struggled with employee retention and learning to be leaders. With time, they developed a solid recruitment system.

Prioritizing Soft Kills and a Good Culture Fit for Agency Roles

As an agency constantly looking for talent, Condor has a scoring system to assess candidates’ skills. One of the most important factors is proficiency in the English language. These candidates are referred to American companies so they must be able to maintain conversations and provide clear explanations.

Soft skills are also highly valued, as well as being a good culture fit. They’d rather hire someone who is passionate about learning and improving than someone with the right skills who’s just going through the motions. Ideal candidates are excited to be challenged and willing to learn from their mistakes. They look for a winning mentality, not necessarily about never losing but taking the right lessons. For the technical skills, they have a number of tests based on the needed skills required by clients.

Condor's clients are agencies looking to fill positions such as account managers, paid media analysts, designers, email marketers, and SEO experts with 3+ years of experience. However, sometimes clients are willing to take candidates with less experience but with great personalities and a willingness to learn. It just depends on their urgency to fill the position and how much training is necessary.

The Five Steps to Source the Best Agency Talent in the Latin American Market 

Carlos and Antonio developed a layered process meant to assess many aspects and weed out uncommitted candidates.

1. LinkedIn messages. To start, they have a dedicated team to contact people through LinkedIn. This team messages about 1,000 people yielding about 100 responses.
2. Basic information. Before an interview, candidates fill out a form with basic questions like salary expectations.
3. First interview. Candidates get scored on a scale from 0-5. Those who pass the first interview with a score of 3 or better go on to the next step of the process.
4. The test. Selected candidates are tested in a simulation scenario in order to demonstrate their skills or solve a complex issue.
5. The panel interview. The leadership team interviews the candidate in a panel format. They ask them situational questions and it's a much more candid-style interview where candidates tend to be very honest and transparent.

They weed out candidates who are not a good fit by following this 5-step process. This way, they’re able to refer at least five great candidates to their US clients. Their process has come a long way; 3 years ago it would take them a couple of months to find one qualified candidate. Now that they’ve perfected the process, it takes them about two weeks to get 5.

Understanding Clients' Needs and Best Interests

Once a client comes to them, how do they know whether to stick to offering recruiting services or offering agency services? A big factor for them is whether they have the bandwidth and expertise the client needs. If they do, especially when it comes to management, then it makes sense to offer their in-house services. If not, they offer to build a team ready to perform and dedicated to that client.

Ultimately, the goal is to help clients save time with a plug-and-play team that knows what they’re doing to achieve successful results.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you letting fear stand in the way of success? Have you ever lost a big opportunity because you wanted it too badly? Are you guilty of skipping your own processes only to have it bite you in the ass down the road? Often time entrepreneurs get overly focused on a specific outcome and ignore the bigger picture. Today’s guest has started many businesses with more than half being lessons on what not to do. He shares several of those lessons and the most important, million-dollar lesson that helped him get over his fear, trust the process, and double the agency's MRR.

Derrick Kuhn is the Founder and Managing Director of Brillity Digital, a full-service digital marketing agency. He’s had a total of eleven businesses over the years and considers Brillity to be the culmination of everything he has learned. Now he leverages that experience into an agency that combines business consulting with a true digital marketing strategy.

In this interview, we’ll discuss:

• The $1 million lesson of not niching down early enough.
• Losing a big opportunity and respecting the process.
• Listen more and talk less to increase agency sales tenfold.

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Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

Growing Up with a Passion for Business

Derrick always wanted to be an entrepreneur, taking after his dad, who was a mega-success in the corporate world. Growing up seeing his dad’s business success infused a passion for becoming an entrepreneur.

His first opportunity came right before graduating from college. Some of his friends were programming geniuses but had no idea how to run a business. They had around $100,000 in uncollected Accounts Receivables and needed his help. He collected most of it in about a week just by taking action. It didn’t take massive business skill but he knew he had what it took to make it as an entrepreneur.

The Million Dollar Lesson of Not Niching Down Early Enough

Derrick warns us to be careful of getting overly focused on a specific outcome versus the larger picture. Some agency owners put on horse blinders and will step over a $1 Million opportunity while looking for the $100,000 one.

Opportunities in the digital space are infinite. There’s no use in saying only one tool or path will get you to success when that is constantly changing. People who focus on only one way to do things and don’t adapt will not find the success they want. However, on the opposite side are the agency owners chasing 1,000 things at once. This was one of Derrick’s mistakes.

In his last agency, he found great success in the healthcare space. They grew tremendously within that niche accumulating a lot of expertise and a good reputation. However, he didn’t recognize the golden opportunity to stay in a high-demand niche market. On the contrary, after separating from his agency partners and starting his current agency, he decided to cast a wide net to land clients in a variety of industries. Looking back, walking away from the equity he built in an established niche was a wasted opportunity.

Derrick says he abandoned his niche because it was the first time he was a solo agency owner without partners and felt fearless. Being responsible for his team he knew immediate cash flow was super important, but in his haste to grow the new agency, he overlooked the value he'd already built in the healthcare niche. In his mind, once he figured out the new business he’d go back to the idea of specializing. Nonetheless, he did end up losing valuable time establishing his new agency's expertise.

A Lesson on Respecting Your Agency's Sales Processes

After analyzing strategies for engaging new prospects, Derrick decided to put them through what he calls the Apex Strategy Process. Basically, this is a stage to set expectations, do research, map out the ROI, etc. Unfortunately, when the agency had an opportunity to get what would’ve been its biggest client in years, the team got too excited and skipped this step. They went straight for the close on a big contract and wound up losing it.

At that moment, Derrick decided every sales process, marketing, etc. needs to be funneled in through this strategy. Prospects who don’t want to go through the process are not ideal candidates to work with the agency. It soon paid off.

By committing to the strategy, agency sales increased tenfold. The lesson is -- respect your own processes!

Why Asking a Lot of Questions is a Key Part of Sales

Part of Derrick’s strategy to succeed with clients is asking a lot of questions. When it comes to sales, success increases when prospects spend more time talking and you spend more time listening. There’s value in asking questions and actually listening to clients. The more they talk, the greater chance they’re likely to buy.

A lot of agency owners will chat with the prospect and think they immediately know what they need. However, if you jump to tell them what they need to do right away they likely won’t believe it. Instead, ask detailed questions and try to understand their business first. Naturally, the conversation will lead to saying, “Based on what you told me, I believe we should do…” That way, they’ll see you’re coming from a place of authority in the business and follow your lead. In fact, taking the time to listen will lead to more insightful questions.

A correct diagnosis only comes from asking the right questions and really listening to the answers.

Harness the Fear and Trust the Process

Derrick has learned to take his time before making big decisions and letting his panicked mind settle down. Taking the time to consider big moves helps you feel more empowered to hold the course after the decision. After losing that big deal, the pivotal point in Derrick's mental shift was a conversation with Jason that regained his confidence. Derrick realized he had a great process in place but he hadn't fully committed to it. He let his fear of losing the prospect cloud his judgment of how he knew things should be done.

Does this mean he now leads his agency without fear? There will always be moments of self-doubt. However, fear, like stress, can be very powerful when harnessed correctly.

Taking the time to think about your response to a situation and trust your processes is how you can harness the fear.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you considering adding video services to your digital agency? Do you use video as part of your agency marketing strategy? Do you know how to leverage the power of video for you and your clients? Video is an integral part of any successful marketing strategy; particularly when video case stories are included. Nothing engages an audience as effectively as video content. Furthermore, it’s a great way to showcase your brand's personality, build authority, and improve SEO. As a video marketer, today’s guest understands that people remember, share, and buy stories. He shares what many people get wrong when they roll out video content and the best way to get fast results with video marketing.

Ian Garlic is the founder of Story Crews, a video marketing agency that helps clients tell their stories in video. His team focuses on collecting, crafting, and delivering emotional video stories that help his clients get more leads, better clients, and more sales. He’s also the creator of the Garlic Marketing Show and Authentic Web Agency.

In this episode, we’ll discuss:

• Why is video the best foot-in-the-door offer for your agency?
• How video helps with client retention.
• The best approach to add video services to your agency.

Subscribe

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Sponsors and Resources

E2M 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.

 

Leveraging the Power of Video Stories to Sell Results

Fifteen years ago, Ian was working for Thomson Reuters as an SEO consultant in Long Island. He had left his career in commercial real estate to pursue his passion for marketing but was not doing well at all. Looking at what the best consultants in the company did, he realized they all collected stories they would later use while selling. To change things up, Ian decided he would collect those stories in video. With video, it's easier to convey emotion and more easily show people what they need to see. This strategy was the move that transformed everything for Ian. He was no longer selling websites or SEO, he was selling results.

After adding video to his strategy, Ian quickly grew to be among the top-ranked in the company for the next few months. However, he started noticing all marketing looked the same, which made clients hungry for something different. Luckily, this was back in 2007-2008 after Google purchased YouTube, and Ian knew this would change everything. Shortly after, he left the company to start his own digital agency.

What Makes Video the Best Foot-in-the-Door Offer?

Ian believes video is one of the best foot-in-the-doors offers that exist. With video case stories, the client talks about themselves. Most like video format and it is approved quickly. Clients get results quickly from the video too. It just comes down to having the right systems.

When done the right way, video as a foot-in-the-door offer is an effective way to gain more clients because the content is 100% unique. Furthermore, doing shoots with a client means spending the day with them strategizing, which will make them feel like you’re an extension of their business. It’s an opportunity to improve your clients’ results by really diving deep into their business.

How Video Helps With Client Retention

At his agency, Ian started selling websites and SEO, with the video strategy as just part of the package. However, slowly his clients began to realize the power of video. They feel video built their authority in the industry and helped elevate the know, like, and trust factor by being genuine.

Videos can quickly become the best metric to measure success. Ian's agency sends clients very detailed reports – which most don't read. However, bringing eager customers to your clients thanks to video content is what keeps them coming back.

Starting with the Right Strategy to Get Fast Results with Video

Many people start uploading videos to YouTube one day because they have a great idea and want to try it out. Very few, however, have a strategy behind that video content, which means they ultimately don’t see results.

According to Ian, people don’t get results fast enough because they start too far from the right place. Even Gary Vaynerchuck made nothing from YouTube for a couple of years. However, he had the determination, money, and time to keep going. Most people give up after not seeing results for the first six months. That’s why Ian starts with video case stories, which get people results faster.

Nonetheless, faster results don’t mean clients get an influx of cold traffic right away. It can be six months before they start seeing results and one year until they have a successful YouTube channel.

For agencies, one of the most common issues is speaking to the real problems of your target audience. Agencies tend to go for videos aimed at the masses in order to get a lot of views. However, the masses aren’t the ones who hire digital agencies.

The Best Approach to Add Video Services to Your Agency

You don’t need movie-level production equipment to start adding video to your services. According to Ian, you’re better off starting with a partner when it comes to adding any service. This way, you can focus on what you do best and have the proper guidance to integrate the new service into your agency.

There are 3 ways to add video services:

1. Build a production team. This is what Ian calls the hard option. You’ll need to have a strategy to sell it and hire at least five people to form three departments for production. You need a pre-production team to take care of timing, scheduling, location, etc; videographers for your production team, and a post-production team. It’s overwhelming and it's a process that took Ian years.
2. Hire film contractors. The second way to approach this is to hire videographers to handle all aspects of the process. You can find a few good ones in your search. The problem, however, is figuring out how to sell or package the offer, knowing timelines, and how to price it properly.
3. Find a partner. This is usually the best way to start out with a new service. Find the support of a partner with experience in the field who can help you integrate it into your agency. You can focus on what you do best and use the new service as a differentiator.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program enables you to take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you trying to grow your agency fast? Trying to posture as a big agency to impress clients? There are a lot of big decisions to make when you're growing. However, you could be making mistakes that actually hold back agency growth. Today’s guest learned some lessons from growing too quickly the first time. He shares what he learned and how he overcame it to grow more consistently. He talks about leaning too hard into vanity metrics and hiring a team too soon as well as which roles to hire first.

Christopher Marrano is the founder of Blue Water Marketing, a digital agency that works with direct-to-consumer brands to generate sales using SEO, Google ads, and Facebook ads. Chris started his agency focusing on SEO and grew quickly solely with referrals. However, he did not know which systems to implement to scale and it almost failed as a result. He soon learned from his mistakes and now has a successful agency that continues to grow.

In this interview, we’ll discuss:

• The downside of growing too quickly.
• Why you shouldn’t get sidetracked by vanity metrics.
• Why sales should always come first.
• A strategy to fill your agency’s pipeline by trusting your results.

Subscribe

Apple | Spotify | iHeart Radio | Stitcher | Radio FM

Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

The Downside of Growing Your Agency Too Quickly 

In 2010, Chris was fresh out of college and into a job market still feeling the impact of the '08 crash. Finding his first job after studying advertising took longer than expected, he ended up working at a pretty prominent agency. He worked on big accounts like Lending Tree, Match.com, and National Geographic. It was the perfect preparation for the complexities of agency work.

Since the digital revolution hadn’t taken the world by storm yet, he was still working on traditional media. He later worked on the client side while learning more about the new digital technologies. Eventually, he needed a break from the corporate ladder and started to freelance, which led to his starting Blue Water Marketing in 2016.

Chris’ agency broke the six-figure mark very quickly. After reaching that milestone, he went straight to renting an office, hiring a team, and focusing on a niche. However, within a year everything came crumbling down. He was forced to lay off his team, working alone in that office space with the one client he’d had from the start. This led him to question the decision to even start the agency.

Are You Getting Sidetracked by Vanity Metrics?

Vanity metrics have always been a thing. Even when Jason was growing his first agency, conversations with other agency owners would eventually lead to asking “How many employees do you have?”. If they didn’t have 50 or 100 employees, they would posture based on media spend or revenue. Looking back, it never really mattered -- it's more about the value you provide not the size of your team. That said, there are still people that see a big office and a big team as indicators of a successful agency. However, the move to virtual meetings has made it so that in-person client visits are few and far between.

The problem wasn’t his vision but rather giving too much value to vanity metrics. Nowadays, his vision hasn’t actually changed much since that first attempt. In fact, maintaining that vision is what helped him get through the difficult times. He let himself get carried away by the vanity of being perceived as a legitimate business. Having a team and an office made clients take his agency seriously and, he thought, would help attract more clients. It was sort of the Field of Dreams approach of “if you build it, they will come.”

Chris still values having his team work in the office, for at least part of the week. But now it’s not about the vanity metrics but rather because he likes the camaraderie and relationships the team can only build while working in the same space.

Defining Your Worth as Agency Owner

When everything was crumbling at his agency, Chris took a step back to figure out what went wrong. He brought in a person to work with him on an effective way to grow and scale the agency. They knew there was something there but first, they had to figure out the why behind the failure. This person is now his agency business partner and they’ve continued to focus on things they can improve each quarter. They also work hard to identify and speak to a unique audience and develop effective processes for their teams.

From that experience, Chris learned measuring his self-worth based on competitors' and clients' perceptions isn't good for the business. Currently, he focuses more on team unity and growing effectively while providing the best service.

Who to Hire First and Why Sales Are the Key to Agency Survival

One of the first mistakes Chris made after growing quickly was focusing on hiring for the wrong roles. Once he had an office space, he hired four people. The first was a graphic designer. Looking back, he realizes this was a big mistake because his agency did not offer those services. He also hired a website designer, a Google Ads expert, and an account manager.

If he could go back and do it all over again, now knows sales is the key to survival. At the time, it felt important to hire for fulfillment but that is pointless if you don't have any clients. He realizes he should have approached it differently, focusing on getting the clients first and then hiring the staff as the work grew. Sales always need to come first, followed by delivery.

A Strategy To Help Fill Your Agency's Pipeline

Another thing that really helped the agency grow is having enough confidence to ask clients for testimonials. Chris needed to learn to trust the relationships he has with clients and that they would feel comfortable recording testimonial videos.

They start with a list of ten questions and let the client focus on the ones most important for them. The end result was some very powerful videos about the results achieved by the agency. They have built custom landing pages based on what the topic of the client videos and post them on Instagram and Facebook.

This strategy was a game changer when it came to the agency's pipeline. Now they have a predictable pipeline of prospects that they can pick and choose. One month they may onboard five big accounts and the next they may take no new clients while they focus on the new ones.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you charge for strategy or give it away for free? Are your prospects aware of the value of your thinking and research? Charging for strategy benefits both the agency and the client but so many give it away. However, when you charge for strategy, you'll grow faster and easier. Instead of giving away value for free, you can improve your processes and offer a highly detailed offer and a productized option. Today's guest found himself in this situation as his agency started to grow. He feels one of his biggest mistakes was not charging for strategy sooner. Now his team gets paid for thinking as well as doing. Here's how you too can charge for your brainpower right now.

Spencer Powell is the owner of Builder Funnel, a strategic marketing agency focused on helping design-build remodelers and custom home builders achieve sustainable business growth. With a combination of inbound marketing, software, and proven strategy, they shorten their clients' path to revenue and profit goals.

In this interview, we’ll discuss:

• Why giving away strategy is a mistake.
• Agency and client benefits of charging for strategy.
• Giving your sales team tools for success.

 

Subscribe

Apple | Spotify | iHeart Radio | Stitcher | Radio FM

Sponsors and Resources

E2M 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.

 

Why You Should Get Paid for Strategy

Spencer’s journey in the agency industry started twelve years ago. Not knowing a lot about the business, he made mistakes early on. One of his biggest mistakes was not charging for strategy. Building a highly specialized offer and charging for strategy completely transformed the agency. So how did he turn it around and start getting paid for the thinking and the doing?

Like any new agency, the first years are all about gaining clients’ trust and figuring things out. That is why giving away strategy didn’t seem like a big mistake at the time. A couple of years down the line, however, they became much more focused and experienced. Spencer realizes now they should’ve started charging for strategy.

Their process includes looking into clients’ Google Analytics and putting together a custom game plan which took significant “thinking time”. So they add that time into the proposal. According to Spencer, it is part of the plan they present and it makes sense to include it in the proposal. He wants his proposals to have some element of customization to them. Adding "thinking" and research is a logical part of creating a really good plan.

The Agency and Clients Both Benefit When You Charge for Strategy

The shift to charging for strategy is fairly recent for Spencer's agency. It all started with setting the goal of becoming the best agency for remodelers and custom builders. They picked a very narrow niche and started working towards that north star.

Spencer knows ensuring that #1 spot would take a lot of groundwork to create a sound strategy and great execution plan. As they listed all the things they should do to create the best possible plan, the steps kept increasing. It was a good opportunity to justify charging for strategy. When strategy is billable, they’re able to spend an appropriate amount of time on it.

In hindsight, their free strategies weren’t customized enough. All their clients got similar steps to follow. Now, they take a few weeks to review a clients’ analytics and come up with a custom, detailed 12-month plan.

Building a Sales Team and Giving Them the Tools to Success

Two or three years down the line Spencer realized the need for salespeople selling custom marketing plans. But what level of knowledge and experience would his agency sales team need? Do they need to know the remodeling industry? How to sell and market within it? He was convinced he would never find salespeople with this specific expertise, so he decided to productize.

Now, Spencer is three months into hiring his first salesperson. When hiring, he didn’t look for agency experience. He specifically searched for a person with experience in their niche The new addition to the team worked out perfectly and he can already see the benefits. However, you can take someone who’s really good at sales and teach them the industry and services if you have the right systems in place.

With a productized offer, salespeople learn how to manage sales objections and value points. Eventually, as CEO you only need to assist with sales to add color and track progress. The key is to provide them with a solid process and the right tools.

Stories as part of the toolkit. Why is the agency owner always so good at sales? Because they have the stories and can use them on sales calls to draw in prospects with details on how they helped past clients. When you start sharing those stories with your sales team they’ll start seeing results right away. Eventually, they’ll have their own stories.

Shorten Your Sales Cycle and Increase Your Closing Ratio

Back when they improved their processes and stopped offering strategy for free the agency’s sales cycle was around 3 to 4 months. Their closing ratio has definitely improved since then. According to Spencer, this is most likely thanks to the positioning of a blueprint. Prior to the change, they were positioned from a brand perspective thanks to their niche. However, they still offered a list of deliverables similar to everyone else. Now, they have a $20K offer that includes an extensive questionnaire and a 4-week period to get a detailed plan with 12 months of deliverables.

That blueprint is presented to the client who has the option to implement it themselves. They get access to the agency’s training videos and SOPs to execute the plan. Companies under $2 million and over $15 million end up executing the steps in the blueprint internally. But the middle sector is Spencer's target. They’ll almost always move forward with the agency to implement the blueprint.

Filling Your Pipeline by Creating a Community

Overall, Spencer's agency is closing the same percentage of retainer deals and unlocking another option for people who want to self-implement. The feedback has been great because many people actually want to learn to do their own marketing. As an aside, they’ve also launched a website theme for their target industry based on conversion principles, layouts for portfolios, about us, etc. It’s modeled as a design-build approach mirroring their industry.

These options have also led Spencer and his team to create a community of companies learning to market with their tools. This fills their pipeline with prospects that can afford to pay for the agency for marketing services in a couple of years.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program enables you to take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Could your ego be standing in the way of your agency's success? Do you want to perform at peak level but struggle to break through an invisible ceiling? It might be time to reinvent and put energy into a mindset that helps you get there. There are a lot of people claiming to know the “secret to success” but most ignore the core issues of the mental game. Today’s guest has been the coach to pro athletes, public figures, and leaders by helping them improve performance by starting with improvements to their mental game.

Todd Herman is a global leader, speaker, author, and mentor who helps amazing talent, like Kobe Bryant, reach a new level in their careers. He coaches elite pro athletes, leaders, and public figures on the topics of performance, strategy, mindset, and execution. Todd is an insider in the thought process of not only elite performers but legends in their fields.

In this episode, we’ll discuss:

• Overcoming ego death by developing an alternate persona.
• Separating the different sides of your identity.
• Being authentic and intentional as your identity superpower.

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Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

The Path of the Mental Coaching Game

Todd got his start in 1997 coaching high school football players and got really good results by helping them with their mental game. Back then, mental game coaching wasn’t really an industry, a market, or even a niche. Nevertheless, he got results and parents started reaching out to pay for private coaching lessons.

Since his coaching career started in the world of sports and being a big believer in mentorship, he reached out to Harvey Dorfman, a giant in the mental game industry. With Harvey, he got to go behind the scenes and see what it’s like to work with professional athletes. This is how he started moving more into the world of peak performance and mental game coaching.

Since then, Todd has improved his methods and moved on to coaching Hollywood and Broadway talent, and top CEOs. Whatever his clients are trying to conquer, he usually goes back to the principles of the inner game, strategic game, and execution game. With this, he builds programs and systems to tackle their goals.

As Todd's coach, Harvey had a huge impact on his career. His best advice was that you don’t need to act a certain way in order to deliver value. He didn’t need to be the kindest or the most aggressive or appear a certain way to help his clients. He just needed to be honest and use everyday words, without the need to posture with big words.

Overcoming Ego Death by Developing a New Persona

Todd met Kobe Bryant when the athlete reached out to his coach Harvey while going through a difficult time due to a public scandal. It was 2003 and Harvey described it to Todd as Kobe's “ego death” or an identity challenge. Harvey referred Kobe to Todd at that time, as he specialized in that kind of crisis for athletes.

As Todd explains, when an athlete needs to step into a new world or new type of challenge, like a college athlete going to a professional league, they need to shed some of their old identity. The longer it takes them to do that, the greater the chances they’ll never succeed in that new area.

At that time, Kobe was going through a moment that forced him to shed his image as a young, naïve player. This was the source of his crisis and he needed to figure out a new identity to get back in the game. Todd worked with him to cultivate a new image of Kobe, both ON and OFF the court.

With Todd's help, Kobe developed an aspirational persona of a stone-cold killer who never gives up -- The Black Mamba. Naming the persona is an important part of the process that helps people tap into their alter ego. Kobe attributes his moment of clarity to the movie Kill Bill where he discovered the black mamba and instantly felt inspired and connected to it.

Developing Your Own Alter Ego Persona

People tend to think they can get to the same success level by modeling their life exactly like celebrities. In reality, the idea is to look at them as sources of inspiration. If you take Kobe and The Black Mamba as the source for your alter ego, you won’t see similar results. An alter ego has to inspire you with its attributes and qualities; then customize that to your current ambitions.

Any person looking to build their alter ego should be very honest about what they want. The problem is that many people don’t know how to articulate it. This is the basis of the alter ego you end up creating. In Kobe’s case, the black mamba was created to help him get through a very specific moment in his career. It was meant for a specific role -- not every aspect of his life.

If you think about the roles in your life, which one is giving you the most challenges and struggles? Which one do you feel the most trapped by? There should be some element of playfulness and creativity in building your persona.

If you’re an agency owner who's feeling trapped, what’s an area in your life where you could be more playful?

The Importance of Separating the Different Sides of Your Identity

The black mamba was only one part of Kobe’s identity created exclusively for the basketball court. This is how we should approach high-performance alter egos. They are meant to help us excel in a specific area where we’re struggling and remain separate from other facets of our lives.

Your alter ego helps you reach very specific goals in one area but it is not who you are.

If you’re an agency owner, maybe you need an alter ego for that side of your identity. Maybe you need an alter ego for being an author or podcast host. Seeing yourself as just an entrepreneur is what makes it so difficult for some people to exit the business and give up control. This mindset gets in the way of agency growth because owners don’t know who they are outside of the business.

As human beings, we love to attach labels to ourselves and label others, as well. Labels can be very empowering. However, when you’re about to make a shift make sure you have the right narrative of yourself. For instance, Todd recommends switching the entrepreneur label to “I am entrepreneurial”. This way, if you sell your agency you don’t lose your identity. An entrepreneurial nature is something you can take anywhere, into anything.

Being Authentic and Intentional as Your Identity Superpower

Nowadays we hear a lot about authenticity and how it's the best way to succeed. However, Todd believes there’s an argument to be made about the results you get when you adopt a persona that helps you get ready to perform at the level you want to be.

Todd believes intentionality with identity is a superpower. If you’re a public speaker, the person who’s on stage catching the audience’s attention won’t necessarily have the same energy as the one answering their questions after you leave the stage. And that’s okay.

In a study conducted at the University of Minnesota, a group of grade 1 and 2 kids were tasked with grabbing a set of keys and finding the correct one to open a padlock. In reality, the test was about resilience. The key was not there but how long would it take them to give up?

The second part of the test included the same exercise but this time, the kids got to dress up as either Batman or Dora the Explorer. The time they spent trying to open the door increased drastically. In their normal clothes, they gave up quickly. However, as a dressed as a character they had a mindset shift. That is the power of an alter ego.

As you step onto the stage, in front of a camera, or whatever your platform -- adopt the identity of a winner or a fighter who gets the job done.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you feel stuck on how to unlock your agency's growth potential? Are you struggling to communicate your agency's competitive advantage in order to stand out? Most entrepreneurs hit a point where the old strategies don’t work anymore. There’s when growth requires a different skill set to take your agency to the next level. Today’s guest has centered his career and agency around figuring out the secrets to rapid growth. He shares some of the common mistakes he sees clients making, and how you can prepare your team for quick growth.

Mark Patchett is the founder of Growth Shop, a digital agency specializing in growth marketing. His agency provides brands with a proven methodology that removes the guesswork with the firepower of a team that will help them grow. They’ve helped build brands like Victoria Beckham Beauty and hundreds more. Today he’ll break down his thought process around growth and how to understand your position in the market.

In this episode, we’ll discuss:

• How positioning creates a competitive advantage.
• 3 mistakes that prevent you from understanding growth.
• Preparing your team for rapid growth.
• Using reviews to understand your position in the market.

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Sponsors and Resources

E2M 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.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and getting a new perspective to the show.

 

How Positioning Creates a Competitive Advantage

Positioning is a tricky beast. Mark's competitive advantage is that his agency team has actually built companies in the past. Most performance agencies do some Facebook ads and maybe ad creative. However, when you have experience building a  company you know this is just a fraction of it. Having in-depth knowledge of entrepreneurship means Mark's team can take the conversation beyond just Facebook.

Furthermore, his agency offers a platform where clients can see all relevant data in one unified view. Clients get an executive view with all the key data in order to pinpoint why their business is performing well or not.

3 Mistakes That Prevent You from Understanding Growth

As someone who’s looked under the hood of many big companies, Mark has seen some of the biggest mistakes they make when it comes to understanding growth:

1. Not understanding attribution across different platforms. They may say Facebook isn’t working because they’re not making as much as they’d like to from it. However, once they learn about the blended metrics they understand it might be doing more than they think.
   

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2. Neglecting conversion rate optimization and positive reviews. Their clients learn if they increase the conversion rate, lifetime value, and average order value by 26% they’ll be making more money without spending more money.
   

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3. Assuming customers understand the brand. In these cases, they use a reverse elevator pitch. Basically, as soon as someone lands on your homepage, without even scrolling, they should be able to tell exactly what you do uniquely. Most companies don’t pass that test.

Using Reviews to Understand Your Agency's Position in the Market

As part of their onboarding research, Mark’s team uses what he calls one of the easiest hacks in marketing. Instead of expensive brainstorming sessions to answer the question “Who are we?” companies should be looking at their customer reviews.

For starters, export all your reviews and run a Wordlab analysis. You’re looking for positive and negative reviews so you can extract common themes. How are your customers talking about your brand? What’s resonating with them? They will be things that stand out or patterns you'll find.

Next, do the same thing with your competitor's reviews to find out what they're doing well and not. Learn what your clients really care about and use that information to build your next ads instead of doing expensive consulting activities.

Preparing Your Agency's Team for Rapid Growth

Not everyone is ready for fast growth and it can break a business. Rapid growth can be exciting for many, but client service and operations people usually just see it as a tsunami coming at them.

To prepare client services for the onslaught of new business, his team does a lot on the automation front. There are options like AI chatbots that get great results. However, the biggest hurdle is in delivery. Most client service problems are under control if your product is good and on time. If you really want to grow quickly, you’ll find money comes out as quickly as it’s coming in.

The key is to plan for growth and be proactive, rather than reactive.

Hiring People with the Ambition to Start Their Own Business

At his agency, Mark handles a team of people working from all over the world. Their core values are “smarter, faster, happier”; which stands for being able to build big things while getting better at it and enjoying the process.

This goes back to his days working at venture-backed companies where the mission was hitting the goal, or "crash and burn." As a result, people dealing with that type of pressure were completely burned out. It was that negative experience that helped Mark discover the kind of culture he’d create at his agency.

Mark still handles all first-round interviews where he gets a good sense of someone’s ability to fit in with the agency's culture. He learns this fairly quickly by finding out how they deal with problems in their lives. Next, he has the candidate work on a paid test project where they get access to anonymous data. They mostly look for entrepreneurial people that have the drive to start their own businesses. This may seem counterintuitive, but Marks sees it as helping build phenomenal talent that can later become a client or the agency could even invest in their startup.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

What key metrics are you tracking for your agency? Do you know which KPIs are crucial for making proactive decisions to benefit your agency? There are 4 key metrics that enable you to see into your agency’s future and make smarter growth decisions. Today’s guest runs a CPA advisory firm that provides agencies with the tools they need to come up with original solutions for their unique challenges. He shares the four key metrics every agency should be tracking to predict their future moves.

Jody Grunden is the founder of Anders CPAs + Advisors, a virtual CFO group focused on the creative agency space. His team serves as a catalyst for those striving to achieve their highest potential and carry this mentality on to their clients and community.

In this episode, we’ll discuss:

• Crucial metrics to track for your agency.
• The target average utilization rate for agencies.
• Assessing profitability and gross margin to make adjustments to your prices or staff.

Subscribe

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Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

The 4 Crucial Financial Metrics You Should Be Tracking for Your Agency

Jody and his team help their clients focus on their goals and achieve their highest potential. They help improve their client's business by teaching them to focus on four main metrics:

1. Cash metrics
2. Production metrics
3. Financial metrics
4. Pipeline metrics

Keeping track of these metrics makes a huge impact on your agency allowing you to predict your cash position every month and make key decisions ahead of time rather than being reactionary.

1. Cash Metrics

This is annualized revenue; something all agency owners should have knowledge and control over. Keeping track of how much cash you have in the bank determines your next steps in the business.

The goal is to have at least 10% of your annualized revenue in the bank at all times. So if you have a $3 million agency, you should have $300,000 in the bank. Why ten percent? This amount covers 2 months' worth of expenses for a service-based business. Of course, this is the minimum. It's better to strive for 30% or six months' worth of expenses.

There’s no right or wrong answer. Some agencies are fine with 4 months' worth of expenses in the bank, some need less. How do you decide on the percentage your agency requires? Just look at your different risk factors. Are you focusing most of your resources on just one client? Do you have older, retiring partners? In those cases, there is high risk and you need a higher percentage. Do you have high recurring revenue? If so then 10% is fine. Anything over 6 months might be overkill and money you could be using to reinvest in the agency.

Why You’ll Need at Least Three Different Bank Accounts

Jody usually advises clients to have three different bank accounts; a tax account (for 40% of net income); an operating account (money to pay bills), and a cash reserve account (a money market account or a high-interest savings account). Just keep in mind that if that money is sitting in your operating account, you’ll be losing opportunities. The name of the game is making money on your money.

Jason and Jody agree that you should also get a line of credit when you don't need it. Treat it as a safety guard and preferably have it renewed every two years instead of annually. It’s not designed to be used on a daily basis. That’s what your cash reserve is for.

2. Production Metrics

This is the metric agencies use to build a solid forecast. This forecast should be dialed into your non-financial metrics and may change every month. There are two very important metrics to getting that forecast right:

• Utilization Rate -  what your team is working on and the percentage of their total hours spent on billable work.
• Average Build Rate - which is not what you’re charging clients but rather the work being done. If you charge by the hour and you’re not accurately tracking the time spent working that reduces your average build rate.

These two metrics will help build a dynamic forecast because it’s all based on people. You’ll be able to build a month-by-month forecast and break down exactly what your agency should do on a monthly basis to achieve your revenue goals.

Average Utilization Rate for Agencies

How many hours does an agency typically work? This varies from agency to agency but on average they expect to work 30-32 (billable) hours per week. This is a benchmark of the number of hours you expect your workers to put in each week.

Basically, the number of billable hours (work hours minus culture hours) divided into the number of available hours will give you your utilization rate. The average utilization rate for agencies is around 60%. However, your agency should strive to achieve your forecast projections.

3. Financial Metrics

Assessing profitability and gross margin. Compare your agency to the competition and to your forecast. Comparing to everyone else will give you an idea of whether you’re in the ballpark but more importantly, how well you're forecasting.

To assess your overall profitability, first look at your net revenue. This is basically revenue minus hard costs. Once you have that, subtract all costs associated with production (anyone who works in the business), including fully-burdened costs like 401K and health insurance. Your goal as an agency should be about 50% net revenue.

Additionally, your overhead costs like marketing expenses, business development, and facility costs should be no more than 35%. So, net revenue (50%) minus overhead (35%) = a gross margin bottom line (15%). Ideally, you’ll want to get gross margin up from 15% closer to 25%.

Try to focus not only on things you can cut back but also if it’s time to increase prices. Planning to increase staff by 5%? Then you should probably also raise your prices or your margin percentage will shrink.

4. Pipeline Metrics

The cash, production, and financial metrics will help you build a great model to predict exactly how much you’ll hit each month. However, it can all crumble pretty quickly without the pipeline metric. This metric helps keep an eye on what you have under contract for the next three months and when you’ll need to make adjustments according to the amount of work.

For instance, if you have 65% under contract for the next three months that’s fine and it’s the typical number for your agency. However, if you’re at 80% or 20% capacity then you’ll need to make some adjustments.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

How often do you look at your agency's churn rate? Do you know the lifetime value of a client? What are your client retention strategies? Do you dedicate time to client retention like you do to client acquisition? It all starts with monitoring the right metrics, understanding what clients really want, and being proactive in client services. Today’s guest is an agency sales and client service expert who manages end-to-end sales activities for a white-label agency. She shares the key metrics you should track and tips to help you master client retention.

Kushbu Doshi is the VP of Sales and Customer Service at E2M Solutions, a white-label agency with clients around the world. She is a customer service specialist with a passion for strategizing, making realistic action plans, and following up on their implementation to get real results for agencies. Kushbu has been on the show before to talk about how to improve your customer service.

In this episode, we’ll discuss:

• How to calculate client retention rate.
• Questions that lead to better client retention.
• Dedicating time to retain existing clients.
• Important KPIs to improve agency-client relationships.

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How to Calculate Your Agency's Client Retention Rate

The team at E2M Solutions has created metrics meant to track their performance in terms of client retention. The most important step to start getting a sense of how your team is doing with client retention is establishing your client retention rate. You can figure this out by establishing how many clients you have at the start of the quarter (S) and at the end of the quarter (E).

Client Retention Ratio = (E ÷ S) x 100

So basically, if you have 100 at the start of the quarter and 80 at the end of the quarter, your retention rate will be 80%. Ideally, your client retention should be above 75%. Any number below should be something you address with your team to find out what’s not working out.

Effective Ways to Master Client Retention

Client retention starts with the sales conversations and setting the right expectations from the very beginning. There are many things you could start doing at your agency to increase retention level.

For instance, after calculating your retention rate, you can appoint a client service person to start tracking client success. E2M decided client service has to be a stand-alone role instead of something handled by the project manager or the team working directly with the client.

This person ensures the client is happy and the agency is matching client expectations. They have keynotes for every client containing their goals for the next 1-3 years. These details help the agency determine how to work with the client, what may not work, and how to upsell or cross-sell new opportunities to extend the relationship.

Additionally, they also do periodic calls in which they go over expectations and progress. Basically, it’s about keeping an eye on your clients and staying curious about their plans for the future. Are they open to expanding services? What kind of niche do they want to target next?

Ask Bold Questions and Improve Client Communication

Kushbhu's team is trained to ask bold questions in the sales call to find out why clients want to be associated with their white-label agency. What are the major pain points her team will solve? If you can get clients to talk about their whys, you’ll come out confident about exactly what they want. Many times these conversations help reveal what the client thinks they want is not actually what they need.

Additionally, in most cases, clients are pleasantly surprised to receive this type of personalized attention. This type of action helps win trust and mutual respect.

Do You Dedicate Time to Retaining Existing Clients?

Kushbu strongly believes the time spent getting more leads should match the time spent retaining existing clients. After all, if your churn rate is high then what’s the point of just focusing on getting more clients?

The E2M Solutions team dedicates a specific day of the week to review existing clients' challenges. Are those clients working well with the current team? Are they matching the delivery times of previous weeks? A review of these metrics determines whether they’re on the right track to retain clients. The rest of the week is dedicated to new client acquisition.

Many people don’t focus on retention until they lose a few clients. Once they think they figured it out, they move on to the next issue. With a client service team in place, E2M always has dedicated efforts to client retention.

Using AI to Figure Out What Clients May Like

Kushbu and her team are starting to experiment with AI to see how to best utilize this tool. For now, they have been using ChatGPT to create personas and ask them about specific scenarios.

For instance, they have tried the command: “if you were a client success manager what would you do in this scenario?” They also share a client’s characteristics and preferences to then ask what it thinks their client would like. In Kushbu's experience, AI comes up with really good recommendations.

Important KPIs for Improving Agency Client Relationships

Other important KPIs are the Lifetime Value (LTV) and Customer Acquisition Cost (CAC) ratios. Keeping track of these has helped the E2M Solutions team understand where they’re at and the kind of positioning they need. Another important metric is the average amount of time clients stay with you so you can increase the duration of the relationship.

Kushbu suggests agency owners use these metrics instead of relying solely on churn and retention ratios. It's important to always be looking at these numbers by calculating them every quarter instead of just at the end of the year.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

How are you branding your agency? Do you treat the agency like a client and market purposefully? Your agency’s brand is much more than just a name or logo. The way you brand your impacts the type of clients you attract. A rebrand can be daunting. However, sometimes it’s the best way to regain control and attract your ideal clients. Today’s guest purchased an agency and decided to strip it down and rebuild the agency she envisioned. She shares the reasons for the rebrand and some of the surprising results in her team and marketing efforts.

Avril Tomlin-Hood is the CEO and Founder of boa, a Vancouver-based digital marketing agency specializing in media buying. After committing to elevate companies that want to effect positive change, boa now works exclusively with plant-based and sustainable brands. She recalls why she decided to rebrand her agency after six years and her surprising new role at the agency she enjoys more than expected.

In this episode, we’ll discuss:

• Rebranding to build the agency you really want.
• How a mastermind helps combat isolation.
• The surprising way a podcast can change your agency.
• Why you shouldn't forget to invest in your agency.

Subscribe

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Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

Rebranding to Build the Agency You Really Want

Ten years ago, Avril worked at a media buying agency. After four years there, the owner was ready to move on to other things, so Avril took over and bought the agency. The agency has gone through a few iterations doing white labeling services and branded agency work.

A year ago, after a failed employee acquisition, she realized it was time to invest in the agency’s brand to be in more control. In hindsight, the acquisition was never going to work because the structure didn't allow for independence. Once the deal fell through, she knew it was time to try something different and focused her energy on an agency rebrand.

Years after acquiring the agency, she had never really invested in the brand. It was sort of just there while the actual work had shifted to white labeling services. Hence, despite having owned the agency for many years it never felt like it was actually hers.

She renamed it boa and decided to focus less on white labeling and more on media buying. The shift also includes working exclusively in a niche of brands that want to have a positive impact on the planet.

Finding an Agency Community to Help Set Goals and Combat Isolation

Lots of agency owners feel like they're making decisions on an island. The game changer for Avril is following a friend’s advice to get a coach. This way, she got the help she needed to figure out her goals, strategy, and the support she needed to get there.

Furthermore, joining a mastermind like Agency Mastery made a big difference when it came to combating isolation. The community really helped her work through her feelings of being stuck. It also helped her see the options and opportunities for the future, by meeting people who were three or five years ahead in their agency journey.

Finding an Integrator and Focusing on Building a Leadership Team

We all know how hard it can be to find great people. One of Avril's most significant successes in this area was hiring a trusted "right-hand" person who has been moving into an operations position. This person fills the role of the Integrator and her addition to the team has been a game-changer for the agency operations.

Avril's own role as Visionary has helped her have a clear and defined vision for the agency. She is no longer in the weeds and can focus on the agency rather than being stuck in it. This is something she now communicates to her team. She focuses more on reaching the agency's goals and measuring KPIs that matter in the process.

Avril believes growth is all about building a leadership team. Right now, she requires all hires to have leadership potential so they can manage a team in the future.

The Surprising Way Starting a Podcast Can Change Your Business

Recently, Avril has added podcast host to her role. Starting a podcast wasn't in the original plan but she has found it is a great way to grow her agency's audience. It was hard to get her head around the concept and she didn’t know what she would talk about on the show.

In the end, she realized the podcast didn’t have to focus on what the agency does. It should focus on her target audience, which is why she interviews innovative and sustainable brands.

The podcast has actually made it easier for her to reach out to her ideal clients. Instead of sending a cold email, she invites them to the podcast as a thought leader on sustainable brands. It’s a smart strategy for business development. It has also helped her understand the importance of branding herself, which wasn't a priority at first. Now she sees branding herself can be very beneficial for the agency as well.

Growth Takes Investment and Getting Out of Your Comfort Zone

For a long time, Avril was really good about keeping solid profit margins. However, this also meant she was limiting the agency’s growth. Staying in your comfort zone is not necessarily best for agency growth.

If you’re feeling too comfortable, you’re probably not pushing enough. Growth takes investment, which is something Avril is taking seriously by treating the agency like a client. Now when they look at investments like media planning, marketing planning, etc. the agency is included.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you have a personal brand? Did you create your brand with purpose and intention? Does it speak to who you are and your mission? Do you know how you can use it to create the opportunities you want to access in your career? Today’s guest is a branding expert who created an agency focused on one-on-one brand development, coaching, and consultation for women leaders. After 20 years of helping create and fine-tune brands, she shares the right questions to ask yourself in order to unlock your brand. She also explains why the process could even make you uncomfortable.

Laura Barnard is the founder of Breakthru Brands, a brand-building agency that empowers women leaders. Her team works to empower women and the LGBTQIA+ community to break through barriers and close gender gaps in leadership. Laura breaks down her agency’s process to help unlock their clients’ brands, and why it’s so important to know yourself and your purpose to create a successful brand.

In this episode, we’ll discuss:

• Lessons on branding from big corporate brands.
• 3-Steps to unlock and activate your brand.
• Finding inspiration and purpose in your agency's vision.

Subscribe

Apple | Spotify | iHeart Radio | Stitcher | Radio FM

Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists helping digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and getting a new perspective to the show.

 

Lessons About Branding from Working On Big Brands

Laura’s impressive background includes an MBA from the University of Chicago and a degree in Psychology from Harvard. However, if you ask her what influenced her journey the most, she’ll say it was basketball, both playing in college and then coaching. It provided her with the discipline and leadership skills she uses in her career. Basketball was also how she got to know the first female leader that inspired her current path.

Looking back at her career, Laura spent over 15 years working in corporate America focusing on brand management. Business school is when she first understood brand management. She was eager to apply her passion for psychology in her desire to understand why people think, act, and behave in the ways they do. Brand management emerged as a way for her to bring psychology into sales, strategy, and business management.

Leading strategy for iconic brands like Skittles and Wrigley's, she worked to help big brands create an impact. It was a great opportunity for her to learn as much as she could about the business. The #1 lesson she took from that time was the importance of knowing your consumer really well. Understand what motivates them. Find out what they need and what benefits they are seeking. Laura also learned to manage large businesses with cross-functional teams, five-year plans, etc.

Later on, working with Haribo, she had the chance to step into a leadership position and help a big brand establish itself in the US. By the end of that experience, it was that her future in the industry was to break out of stifling corporate America and make her own path as an entrepreneur.

Finding Inspiration and Purpose In Your Agency's Vision

After fifteen years of climbing the corporate ladder and improving her skills, Laura relocated with her family. New jobs, new schools, and new surroundings required some time off. She took the pause she needed to reflect on her next chapter.

This was an opportunity to work in brand management but do it with more autonomy, more ownership, and ultimately with more purpose. She was inspired to use everything she had learned about brand management to start her own company advancing women leaders.

This thinking led her to one of her first inspirations, her former basketball coach, Kathy. She wanted to help Kathy increase her impact as a woman leader and get her messaging to a wider audience. This experience helped shape her agency's vision of growing a network around sports leaders and eventually in other industries as well.

 

3 Steps to Unlock and Activate Your Own Brand

Laura’s team has helped over 100 women leaders define and activate their brands. In time, they’ve refined and adjusted what they do to form a very effective 4-week process that is clear and effective. Overall, the process is divided into three basic phases:

1. Discovery. During the Discovery phase the team works to help people get to know who they are. This process helps them get clear on who they to themselves and for others, as well as what they want to stand for. It may be uncomfortable for some clients. In fact, Laura believes if they’re not making the client uncomfortable, they’re not doing their jobs. It also includes interviews with key stakeholders who can speak to the clients' strengths and abilities and say things clients will probably not tell about themselves.
   

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2. Defining. The interview and discovery process helps Laura’s team determine the clients’ purpose, mission, and vision. This is what they call brand values which become somewhat of a north star.  Furthermore, many times a leader will come to them at a time of inflection and change. The agency helps define the paths they can take and opportunities to position themselves to have a greater impact.
   

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3. Unlocking. This is the deliverable phase where they craft the brand story. Once the values and paths are defined, how do you brand yourself and tell your story? A brand story is a 2,000-word narrative that clearly states why they do what they do. This way, they can start shouting it to be world by speaking about it, writing about it, going on podcasts and interviews, etc.

Gaining Intentional Growth By Knowing Who You Serve

For Laura, intentional growth starts with knowing who you are and who you serve. Be clear on your clients' needs and try to match that as uniquely as you can. For Laura and her team, the way to make the business their own was to focus on building leadership brands for women.

Of course, this also means they can't help everyone. This is why they also grow through strategic partnerships. They know sometimes they must refer clients to agencies that will be better equipped to help them. They are also always on the lookout for partnerships with larger organizations that can help them grow their networks. These can be big organizations that have large groups of women leaders and get curious about what they do and how the agency may fit into that.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you driven to grow your digital agency fast? Are there drawbacks to growing your agency too quickly? One agency went from chaos to $5 Million by doubling every year. However, growing too fast without the systems and processes to support it makes agency owners feel like they’re always trying to catch up. Today’s guest is the founder of one of the fastest-growing businesses in Dallas in 2022. Quickly reaching many milestones in a short time made it difficult to build the structure for that growth to continue. She shares some of the aspects she focused on, the roles she sought to fill, and the systems put in place to ensure her agency’s success without growing too fast.

Antonella Pisani is the owner of Eyeful Media, a digital marketing agency focused on paid social, paid search, SEO, copywriting, and digital strategy. Antonella’s agency reached a 1000% growth rate in just one year. Although it was an incredible achievement, it also meant she constantly felt like she was trying to catch up to their growth and couldn't really focus on setting the agency’s structure.

In this episode, we’ll discuss:

• The chaos of growing too quickly.
• Which agency roles to fill to create the right infrastructure.
• How to avoid scope creep to keep projects within budget.
• Why you need to focus on leadership training.

Subscribe

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Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

Overcoming the Chaos of Growing Too Quickly 

Antonella’s agency grew very quickly, reaching a 1000% growth rate in just a couple of years. She constantly felt behind because they experienced 10 years' worth of growth in just one year. Looking back, that level of growth and chaos kept her so busy she failed to implement this structure much sooner. There are some things she wishes she had structured from day 1.

It’s not uncommon for entrepreneurs to thrive and even get energy from the chaos around them. However, not everyone thrives from chaos. Some people need more structure to be successful in their roles. So it's important to create a structure to allow employees to onboard quickly and get up to speed.

Three years ago she decided it was time for a “year of infrastructure”. As a first step, she and her team thought about the software pieces they needed in order to grow. They had some things figured out, like the software for billing clients and time tracking.

As she looked at the available solutions, she realized the choice was about what type of business she wanted to build in terms of culture and values. It’s not necessarily something you want to rush. Infrastructure can be created over time as you figure out what you want and what type of business you're creating.

Who to Hire to Create the Right Agency Infrastructure

After putting the software solutions in place, Antonella knew she needed to find solutions to help the agency scale. Her focus was adding people to the agency in a way it would not end up diluting the quality of work they did for clients. Of course, you have to get to a certain level before you can afford hiring managers. So once they started to grow, it was time to make some hard choices. Instead of hiring someone for SEO, they would focus their efforts on finding a group director or project manager.

For Antonella, setting up the proper infrastructure started with implementing the software, hiring the managers they needed, and going back to check if they needed to make changes to the initial software.

That year she focused even more on hiring people with experience to then build teams underneath them. She knew it was important to create the right hierarchy rather than having too many direct reports herself.

Avoiding Scope Creep In Order to Keep Projects on Budget

Coming from a role as VP of Global eCommerce for a big brand, Antonella had an idea of how much she needed to charge clients. She started charging $250 an hour on their first few projects. The biggest challenge was learning how to charge fixed-rate strategy projects, where she became her worst enemy.

Pro tip: When clients keep coming with requests and it’s not clear to them whether it’s out of scope or not, it’s best you take control of the situation. Say “it’s no problem but this is out of scope." Clarify this one time you’ll do it for free and send a $0 change order that they have to sign. This way, they’re aware they’re getting something they should be paying for. Next time they come to you for something like that, they’ll know it’s out of scope and expect to pay.

Boosting Efficiency by Focusing on Leadership Training

Right now, Antonella and her team are done with setting up the systems to increase efficiency. The current focus is on automation and giving the team time to analyze and interpret data. Her agency does a lot of training, which is a point of pride for her. They’re trying to lean more into that with a focus on leadership development. Training the next generation of leaders is something that helps the agency be stronger and more efficient.

Sometimes you hear the people who got your agency to a certain point won’t get you to the next level. However, if you invest in leadership and training, this isn't necessarily true.

Antonella believes in making this kind of training available at every level in order to help create a common language that helps boost efficiency. It hasn’t been easy focusing on these things while growing so fast, but they know it will be critical to continue to scale while maintaining their client and employee experience.

Growing Too Fast and Saying No to the Wrong Clients

Is it necessary to pull the brakes when your agency is growing so fast? For Antonella, her agency grew entirely from word of mouth. For a long time, when they got to the conversation of “should we start to market ourselves?” they decided to put it off. Essentially, they wanted to wait until the agency’s structure was in place and all operations were running smoothly before starting to think about other marketing channels.

As the agency grew, they also learned to get comfortable saying no to the wrong prospects. It was their way of making sure they didn’t implode. Saying no is a very powerful way to set your agency up for success.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

2023 recession talk: pull back or grow? For the first time ever, Jason Swenk, agency owner, advisor, podcast host, and speaker, is interviewed on his own show! Darby turns the tables on him in this episode, where they discuss mistakes, regrets, and the path to becoming an advisor. Jason also talks about why he feels recessions offer opportunities. He shares his views on an economic downturn and how you can grow when others give up. Don't let fear take over, be proactive and tune in!

Jason Swenk is an Agency Advisor, speaker, and podcast host who literally wrote the book on growing and scaling a successful digital agency. Jason started, grew, and sold an 8-figure agency and today is a shareholder in another multi-million dollar agency. For the first time ever he’ll be interviewed on his own podcast to talk about some of the mistakes he regrets and the path that led him to become an advisor.

In this interview, we’ll discuss:

• Ways being reactionary gets in the way of growth.
• How a recession is an opportunity for growth.
• How to get ahead of difficult conversations.
• The 3 best reasons to sell your agency.

Subscribe

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Sponsors and Resources

E2M 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.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Darby Copenhaver is the Agency Scale Specialist at the Agency Mastery 360, which provides agency owners with the coaching, community, and tools needed to scale and find their freedom. He helps agency owners scale through a proven framework for growing their agencies faster and connecting with other amazing agency owners. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

How Being Reactionary Gets in the Way of Growth

Jason's journey to success in the agency industry was not without its challenges. In the early days, he found himself being reactionary, a major roadblock to growth. However, he learned from this mistake and discovered that having a clear focus and target clientele was key to achieving growth.

As with many business owners, Jason had to grapple with the decision of whether to sell his agency or continue to run it. He started his agency during the dot-com era, hoping to grow it for a year and then sell it. But after the market crashed and he came to enjoy the business, his feelings changed. He realized that the desire to sell or keep going depends on where you're at in his life and the agency's growth trajectory.

Why Recessions are an Opportunity for Growth

Interestingly, Jason also saw recessions as an opportunity for growth. In the early 2000's dot bomb and again in 2008, as the market was crashing, his agency was reaching new heights. He and his partner invested more and found strategic partners, which helped them weather the storm and come out even stronger.

Overall, Jason's story serves as a reminder that success in the agency industry requires a combination of strategic planning, adaptability, and perseverance. By staying focused, taking advantage of opportunities, and being willing to evolve, agency owners can achieve long-term success.

Are you ready to tackle the tough conversations and come out on top? Jason, an agency owner, knows how difficult it can be to approach clients with their concerns and hesitations. But with a little transparency and a lot of courage, Jason was able to ease their worries and showcase the many opportunities that lay ahead.

Being Proactive with Difficult Client Conversations

But what if your clients just aren't ready to take the leap? Jason suggests making a top 100 list of ideal clients who share your values and can afford your services. Back in 2008, when his agency was struggling to stay afloat during a market slowdown. This strategy proved to be a game-changer. Jason was able to catapult his agency to new heights by targeting clients who were willing to invest and grow despite the challenges.

Of course, there were some bumps in the road along the way. Some clients froze or reduced their budgets, which meant Jason had to make some tough choices. But by freeing up resources and replacing those clients with new ones, he was able to weather the storm and come out stronger than ever before.

3 Big Mistakes as an Agency Owner

Looking back on his 12 years as an agency owner, Jason knows there are a few things he would have done differently.

1. Firing Sales Too Fast. He regrets firing a salesperson too quickly without offering more support and guidance.
   

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2. Talent from Big Agencies Doesn't Equal Growth. He also learned the hard way that hiring people from bigger agencies doesn't always translate into success at a smaller agency. They are often not very resourceful in a more intimate agency setting. He learned it's more important to hire based on core values instead of just bringing people from the top.
   

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3. Not Delegating the Manager Role. Perhaps most importantly, he recognized management skills are crucial to team success. Now he knows he needs to hire people who are good managers and can get by with some guidance and coaching.

3 Reasons It Might Be Time to Sell Your Agency

If you're thinking about selling your agency, Jason has some advice for you too. He urges you to take a step back and ask yourself why you're considering it in the first place. Is it because you're burned out and no longer enjoy the work? Or is it because you need the money for other reasons? Maybe there's a bigger opportunity waiting for you out there. Whatever the case may be, make sure you're clear on your reasons for selling before you take the plunge.

Jason warns against being too reactionary to the market forces that come your way. Instead of simply reacting to the challenges and opportunities that arise, agency owners need a clear vision. It's important to be clear on where you're headed and goals you want to achieve. By designing your agency around your goals and values, you'll be better equipped to weather the ups and downs of the market and come out on top. So why not take a chance, make that top 100 list, and see where it takes you?

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you an in-person agency with office space? Are you a fully remote agency? Both models have benefits and drawbacks for the agency and your team. However, one agency is thriving on a hybrid office model that provides flexibility and freedom while maintaining culture and inspiration. Overall, most talent wants the flexibility of working from home but also appreciates the importance of in-person work. Today’s guest ran a traditional in-person agency for 20 years. After going remote during the pandemic, shares how he made the decision to remain flexible with office attendance while maintaining collaboration and connections.

Dean Trevelino founder and co-CEO of Trevelino/Keller, a boutique PR, and marketing agency based in Atlanta. As one of their core values, they believe focusing on staff should be part of the agency’s DNA. Part of prioritizing their employees’ needs has been deciding on a structure that works for everyone. Full-time in the office, fully virtual, or the option to do both.

In this episode, we’ll discuss:

• Will your team lose passion if they're fully remote?
• Benefits of a physical office.
• How a hybrid office model increases employee retention.

Subscribe

Apple | Spotify | iHeart Radio | Stitcher | Radio FM

Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists helping digital marketing agencies keep their clients happy. With the help of Dot's knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you at the crossroads of deciding how big to grow your agency? Bigger isn't always better; in some cases, it makes more sense to create a lifestyle business. It's important to have a clear vision for your agency. For some, that means growing to 7- or 8-figures. However, for others, it means keeping a small, nimble team with lots of control over processes. This is why some agency owners decide to either wait until they feel ready to take on that challenge or continue to thrive as a boutique agency. Today’s guest made the decision to run a small operation where she still feels in control of the agency operations.

Rebekah Edwards is the owner of Clara, a digital marketing agency in the SEO and content space. Her agency niche is in the health and wellness space. Clara creates the clearest, highest-value, and most trustworthy SEO on the market. Since 2019, their team has been propelling clients to become expert voices in their fields. About a year after starting the agency, she realized she could start growing the operation, hire more staff, and take on more clients. However, it would’ve been a huge undertaking that didn’t fit with her busy personal life. She is sharing why she decided to remain in control of her agency operations by keeping it small. In the years since the agency has actually dropped clients and is doing better than ever.

In this interview, we’ll discuss:

• Deciding to stay small and retain control of your agency.
• Dropping clients and saying no to the wrong clients.
• Common mistakes when trying to grow.

Subscribe

Apple | Spotify | iHeart Radio | Stitcher | Radio FM

Sponsors and Resources

E2M 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.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Darby Copenhaver is the Agency Scale Specialist at the Agency Mastery 360, which provides agency owners with the coaching, community, and tools needed to scale and find their freedom. He helps agency owners scale through a proven framework for growing their agencies faster and connecting with other amazing agency owners. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

Rebekah had never worked in the agency space before. However, she had worked as a freelancer in different areas for many years and was the managing editor for a website that saw tremendous growth. She decided to build an agency as she needed help and didn't have the time to fully invest in each of her clients. Together with her husband, they developed a system for hiring writers and editing things on the backend. They did this by doing white-glove work for people who would benefit from content-led SEO without Rebekah having to do all the work.

Using SEO as a Lead Generation Platform

Rebekah's agency uses SEO as a lead generation platform by creating long-form educational content in the health and wellness niche. This strategy enables them to create the type of results that appear when people Google questions like "why do I get headaches in the morning?" Companies can then convert those people to leads, sales, etc.

Staying Small to Retain Control Over Agency Operations

Despite many agency owners aiming to grow into one of the best agencies in the US, Rebekah doesn't necessarily want her team to be passionate about their jobs. Instead, she values them being good at their jobs, so they can finish and get home to their families. After creating the agency, Rebekah had to decide whether to continue scaling or carry on as a boutique agency. Being a boutique agency suited her role as an adoptive mother to two teenagers. She and her husband decided a lifestyle business was better suited for their needs. Rebekah can still act as a project manager and ensure that every client gets the promised results. She is open to scaling in the future, but the point of having an agency was to be with her family and have a more flexible schedule

.

Dropping Clients and Saying No to the Wrong Ones

To prevent the agency from taking over her life and decisions, Rebekah plans to drop some clients this year. This way, the agency will be operating with fewer clients than they've had in a long time. Building a social media presence has helped her find her audience, and this way, she can scale without having to say yes to every single client.

Common Mistakes to Avoid When Trying to Grow

In the past, Rebekah made some common mistakes by trying to expand her service offering and train in-house staff to take on some of her tasks. However, this didn't resonate with what she ultimately wanted for the agency, and the team performed poorly in those cases. Rebekah feels more freedom to say no to the wrong clients now that she's back in her role as a project manager. There's a clear direction for the agency, and she's in control.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Why do your clients hire your agency? Do you know the struggle or challenge that led them to you? Many agency owners think they know these answers. However, a deeper search could lead you to change your entire strategy. It starts with simply asking clients what they expect and need. Armed with this information you can rethink who and how you're marketing to your prospects. Today’s guest talks about two mistakes he made at his agency and how he learned the importance of defining the client's north star in order to know what they really want.

Valentin Radu is the CEO of OnmiConvert, an agency that provides e-commerce services to improve conversion rates and grow faster with their AB testing platform. The agency also has software, which helps them serve as a bridge between agencies and clients. Valentin also runs the CVO Academy, which seeks to democratize the way people grow in retail and e-commerce.

In this interview, we’ll discuss:

• 2 Mistakes to avoid early on.
• Learning to target the right prospects.
• A shift in mindset that helps you realize results.

Subscribe

Apple | Spotify | iHeart Radio | Stitcher | Radio FM

Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists that will help digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers, agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

2 Early Mistakes to Avoid in Your Agency

Starting a business is a challenging venture. It requires patience, dedication, and most importantly, a willingness to learn from mistakes. Valentin's company learned this the hard way. Initially, his company consisted of just a software division. However, they soon discovered that their ideal customers needed not only software but also services. This led to building a consulting arm within the company to work like an agency for large companies. It was a hard moment, but it ultimately improved their services.

Valentin's agency encountered two mistakes that nearly ended their agency. However, learning from them ultimately improved their services.

The first mistake was venturing into consulting services without fully understanding the results-oriented nature of the agency world.

The second mistake was trying to serve all types of customers and markets, which burned a lot of money on a go-to-market strategy that ultimately led to increased churn rates.

Learning to Target the Right Prospects

After realizing that going after every prospect they could find wasn't working, Valentin's team began to put all their existing customers under the microscope. Customer research became the basis of their methodology to improve customer lifetime value. They found out who their best customers were and why they were buying from them. This allowed them to position themselves as the solution for similar prospects.

Defining the Client’s North Star Metric

Valentin's agency developed what they call the "North star metric" for each of their customers. They reinvestigated existing clients, even after two years, to have a direct account of what they expected to get from the agency. Some of the responses were surprising. They found out that many customers appreciated their creative solutions and saw them as an extension of their teams. They weren't really after the numbers but rather stayed for the innovative ideas.

Interviewing existing customers can be a great way to unveil hidden struggles and lead to real progress. It can change not only reporting but also marketing once you understand what your ideal client wants.

Why You Need a Mindset Change to See Real Results

Clients want a partner that will help them figure out their business model. It's essential that agency owners are willing to adapt to these changes. Valentin's agency handles data that show how much agencies are struggling to work as a bridge between clients that are using their technology and agencies looking for customers.

Valentin believes the entrepreneurial journey is, in part, a spiritual journey. It's not just about the likes and the zeros, but also about who you are becoming in the process. Many entrepreneurs get comfortable and don't make any more progress. This means they end up with a mediocre company or struggling to find reliable people that would take their business to another level out of fear of change.

Preventing Costly Mistakes

Valentin's company learned the hard way that starting a business requires patience, dedication, and a willingness to learn from mistakes. They had to adapt to the changes in the market and redefine their ideal customer. They had to redefine their reporting and marketing strategies to meet the needs of their clients. Above all, they had to change their mindset to see real results.

If you want to start a business or take your existing business to the next level, it's essential to understand the importance of adapting to changes in the market, defining your ideal customer, and interviewing existing customers to understand their struggles. You must also be willing to change your mindset and embrace the challenges of entrepreneurship to see real results.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you delegating effectively in order to grow your agency? Do you have a satisfying work-life balance? Or are you working yourself to death? A lot of agency owners hit the early milestones by hustling hard. Many believe they are the only ones capable of doing specific tasks the right way. But this superhero syndrome ultimately gets in the way of your growth and results in being burnt out. Today’s guest saw rapid growth with his agency, hitting the $1 million mark in just one year. However, he shares the toll it took and what he would do differently.

Daniel Englebretson is the co-founder and CCO of Khronos, an account-based marketing agency helping B2B companies create demand generation from the ground up. His team assists clients as they validate, refine, and execute their go-to-market strategy by running targeted account-based programs that deliver a real pipeline. Daniel has spent most of his career in B2B marketing and is passionate about helping businesses solve problems.

In this episode, we’ll discuss:

• Value-based pricing and charging what you're worth.
• Key roles to hire in order to boost agency growth.
• Staying motivated after working around the clock.

Subscribe

Apple | Spotify | iHeart Radio | Stitcher | Radio FM

Sponsors and Resources

E2M 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.

 

Value-Based Pricing and Charging What You're Worth

Daniel began his career in B2B marketing immediately after college when he was recruited to work on a demand generation project. Over the next few years, he honed his approach and skills while working on similar projects. He met his future co-founders as they collaborated on several projects. Together they developed their methodology for scaling up demand generation. Their goal was to revolutionize the sector by assisting businesses that had an old-school approach.

The agency's first retainer was for $3,000 and was signed three months after Daniel quit his job to focus on building the business. However, it wasn't until two months later that the agency signed what he calls their actual first retainer, in the $15,000 range. From that point on, it took them only a year to reach $1 million. They have grown the agency 2X every since then.

Daniel envisioned building and selling Account Based Marketing programs for the same price it would cost to hire an ABM director, around $15,000 per month.

Related: How the Right Foot in The Door Offer Helps Land Bigger Retainers

Key Roles to Boost the Agency’s Growth

Since the agency aimed to be its clients' fractional ABM team, the most critical role to fill was operations to help document processes. From there, their most significant hires were for process execution and staffing customer services.

Daniel and his partners initially had reservations about hiring more leaders, but they recognized their blind spots and brought in an account manager to help define what customer success would look like for them and the roles they needed to fill. However, they later realized they had leaned too much on expensive leadership, which did not work out.

Staying Motivated After Working Around the Clock

While reaching $1 million in just one year was impressive, Daniel and his partners paid themselves the bare minimum that first year, allowing them to reinvest in the agency. Daniel handled all client-facing tasks and worked around the clock. He eventually realized the importance of work-life balance and separating his personal and professional identities. This led to reorganizing the company and having all client-facing roles roll under him, giving him the chance to focus on his role as the visionary.

Daniel recommends having a coach, partner, therapist, or adviser to bounce ideas off. Often agency owners struggle to find someone to advise them when they start their agency journeys on their own. Turning outside the agency to find a coach or adviser can help owners get through the low points.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Have you used LinkedIn to generate leads for your agency? Do you know how to access your ideal prospects on LinkedIn? A lot of people get LinkedIn messaging wrong their results show it. It can be a very valuable platform when you use it the right way and master the type of messaging that gets engagement. However, very few do it right. Today’s guest has a lead generation agency that specializes in creating targeted messages that generate responses from your ideal prospects. He shares common mistakes agencies typically make on LinkedIn and tips for improving your LinkedIn outreach.

Nick Verity is the CEO of Cleverly, a LinkedIn marketing agency that uses data from thousands of outbound B2B campaigns to send proven, personalized messages to your dream clients on this platform. His team leverages high-performing data to engage your most qualified decision-makers, driving them directly into your sales funnel.

In this episode, we’ll discuss:

• Common mistakes with LinkedIn messages
• How to get LinkedIn messaging right.
• Accessing your ideal prospects on LinkedIn.

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Sponsors and Resources

Dot & Co: Today's episode of the Smart Agency Masterclass is sponsored by Dot & Co, client management specialists helping digital marketing agencies keep their clients happy. With the help of their knowledgeable account managers agency owners can step away from the day-to-day and focus on driving results. Check out dotandcompany.co/smartagency and get 20% off your first month working with them.

 

Starting Out as a Lead Generation Agency

Nick got into the agency world figuring if he learned how to market he would always have a job. His business partner used to work in lead generation for a big tech company and had successfully used LinkedIn to create leads for himself. Of course, experience with lead generation came in handy when they decided to create an agency.

Their original offer was a ton of volume on LinkedIn with fully done-for-you copywriting and targeting. It was very successful and they were soon charging $800 per month to send 2,000 connection requests on LinkedIn. However, things have changed since LinkedIn has limited connection requests to 400 per month.

The Unusual Path that Led to Scaling the Agency

Looking back, Nick sees they failed to work on filling their sales pipeline faster. Basically, they stuck to the same 20 clients for about a year. They were doing so much for these clients that it was difficult to focus on bringing in more business. This meant their agency growth plateaued.

The eventual solution was dropping prices and making a switch to fully backend scalable operations coupled with a lot of automation. This was the solution they needed in order to scale. It was the key to pulling themselves out of the business. For Nick, making those changes and being delegating work is what made the difference between scaling and staying at the same level as other agencies.

Many agencies take the opposite route of having fewer clients and charging more, but this is the change Cleverly needed in order to scale.

The Most Common Mistake People Make on LinkedIn

Most people ignore the "salesy," persistent messages we normally get on LinkedIn. You can see them from a mile away. According to Nick, most people get on LinkedIn thinking they’re just going to pitch and sell, which leads to the many irrelevant messages we all know. With automation, it becomes even worse as they start to spread the same irrelevant messaging even more. It fills inboxes with the same type of generic messages and drives people away from the platform.

Like cold calling and cold email, there are ways to make it work, there are just very few doing it right.

How Can You Get LinkedIn Messaging Right?

• Step 1: Targeting. People usually look for copy hacks to improve their LinkedIn success. However, Nick says it all starts with targeting. Half the reason people assume the message is spam is because they see “I’m an insurance agent or real estate broker” and think “I don’t need this.” Think about targeting first. Don't just target everyone. Instead, niche down and make sure to hit relevant people. List your clients and try to target similar individuals. This way, you're saying something credible and relevant which increases the chance of success. At his agency, they use Sales Navigator to build a hyper-niche list of around 1,000 prospects.
  

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• Step 2: Mindset shift. You’re not on LinkedIn to sell. Instead, your goal is to start conversations and build a network. When you change your mindset to starting conversations, your messages are shorter and you'll learn to ask good discovery questions. Instead of pitching, lead off by providing value for free and see where it goes.
  

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• Step 3: The conversation. You can start the conversation by boosting their ego. Complement them on the work they’re doing and be specific on where you think they’re doing really well. Next, you make a low-friction offer that’s not a sales pitch. For instance, invite them on your podcast or offer to send a video with valuable information. After that, it’s all about the delivery. If it’s a video, for example, make sure it’s really well done and actually offers valuable, relevant information.

What Makes Engaging LinkedIn Posts?

Most LinkedIn posts get little to no engagement but Nick says there are a couple of types of posts that outperform others.

First, if you want to go viral, focus on HR and stories. Most people on LinkedIn are not big CEOs, they’re employees. It may be corny, but people really resonate with stories about overcoming failure; like “started from the bottom and overcame all obstacles” or “I was fired and now I’m a top performer”.

Nick also likes to post value-added content, like a post about his agency’s strategy and then offering a complete guide for people who comment. These posts can include video and images as long as it’s not just a repost and you’re adding something exclusively for this platform.

It’s worked so well for them that they managed to scale their agency to 1 million with just LinkedIn outreach and Google ads.

Tips for Accessing Your Audience on LinkedIn

If you’re not getting the results you want on LinkedIn, Nick suggests using the search bar to look for ideal prospects. Send at least 15 connection requests per day. Customize each request by saying something personalized based on the prospect’s profile. Usually, three to eight of your new connections will accept, which validates that your ideal audience is accessible.

It’s also a good idea to stick to the channels you master as you grow your agency. His agency expanded to a total of 8 channels only now that they’re over $4 million. They get leads off Twitter and do SEO but he recommends getting very good at maybe one or two as you start off.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Does your agency have a defined niche? Do you serve a specific industry or work in a specific vertical offering? We always hear the riches are in the niches, but it's all about balance. Growth comes from serving the right clients with the right offering. Boost client retention when your agency's positioning is clear on who you serve and the solution you provide. After all, you can’t be everything to everyone -- you'll just end up a generalist, 'me too' agency. However, choosing a vertical and horizontal niche might be too limiting at first. Niching down too much and too quickly can leave your business vulnerable to the whims of the market. Today’s guests learned this after seeing exponential growth and then panicking once a change in the algorithm threatened their business niche.

Adam Smith and Laura Hanlon are owners and Co-Directors of Pink Leopard, a growth acceleration agency that helps e-commerce brands grow and scale through the power of paid social, search, and email. The majority of their clients are female-owned e-commerce brands with a primarily female clientele. This wasn’t always the case, however. In its early days, the agency was exclusively focused on Facebook ads.  However, a shift in the market forced them to reconsider if they perhaps niched down too, much too soon.

In this interview, we’ll discuss:

• Discovering a niche is too limiting.
• Growing from 1 hire to a team of 20.
• Boosting client retention with the right offering.
• Time tracking to increase profitability.

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Sponsors and Resources

E2M 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.

 

Starting an Agency and Selecting a Business Partner

Initially, Laura worked in network marketing and used social media to launch and grow brands, as she had done with her own. It was a very different time and organization was the only thing you needed to grow. However, she quickly identified that paid social ads were the key to helping brands get to the next level.

During that time, she also found a passion for e-commerce and started her own e-commerce store. In hindsight, it was too much on top of her agency work, but it helped her understand her clients’ struggles. As her business grew, she was still a one-woman show getting more and more business thanks to referrals. This is when she thought about Adam.

They had known each other for years, he also wanted to start a business, and his experience in business development and employee engagement complemented her own experiences. He was an ideal match for a business partner.

Growing from the First Hire to a Team of 20

With Laura selling and Adam handling operations, the agency grew quickly. After just six months they hired an account manager to alleviate the handover from sales to delivery.

This meant Laura could focus on running accounts while the account manager handled the back-and-forth with clients. However, when the pandemic hit, as it happened to many, agency growth soared. They quickly went from a 2-person operation to a 20-person team.

Not every new hire was successful. In fact, they made the common mistake of hiring someone very junior when they didn't have the time to train him. Adam and Laura learned they needed to hire skilled experts, which proved to be a great move. Now, they have specialists leading and growing the teams while they focus on growing the agency.

Can an Agency Be Too Niched? 

At first, Pink Leopard worked exclusively with Meta (Facebook) in the e-commerce space. They felt confident to be starting out with a clear idea of their niche and audience. They grew significantly during the Covid pandemic when a lot of brands moved to an e-commerce model or stepped up their e-comm presence. However, growth during the pandemic was very hard to maintain two years later, when things got back to normal. Additionally, the Apple/iOS changes removing data sharing were catastrophic for them as a Facebook agency.

They actually lost a few clients, who were cutting costs after growing too fast during the pandemic. A lot of this had to do with taking on the wrong clients, Laura admits. In 2020 and 2021 they were taking on many businesses without properly vetting them. They later discovered these clients weren't a culture fit.

In the end, they learned relying on a single platform like Facebook was just too risky. They pivoted to being all-in with e-commerce and diversified their services to include email marketing and Google ads.

How to Boost Client Retention with the Right Offering

Diversifying their service offering actually turned out to be a massive client retention piece. It has also helped with growth as they established trust with their clients.

Their new expanded offering helps attract partners who understand the value of a marketing mix including discovery, intent, and retention. Their services are much more robust, now. Which helped improve client retention because they’re no longer reporting on just one channel's performance. Now that they’re working on email, Facebook, and Google, their reports are true reflections of the results they're getting for clients.

How Time Tracking Helps Track Profitability

If they could go back, Adam and Laura would take a closer look at their pricing model a lot sooner. Most agencies are guilty of starting out with lower pricing to attract clients and grow. But it’s important to implement time-tracking to really track where your team is spending time and which projects/clients are actually profitable. The next step to being profitable is saying no to the wrong clients.

It's a risk many agency owners are afraid to take however it's very liberating when you turn away clients that you know aren't the right fit.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Not sure why you're stuck trying to scale your agency? Growth vs Scaling? What's the difference? There are four main reasons some agencies never scale. Today’s guest has accumulated nearly 15 years of experience in the agency business and shares how he stays focused in order to scale. He also shares lessons that helped him get through difficult and why is usually the agency owners standing in their own way of scaling.

Wayne Mullins is the founder of Ugly Mug Marketing, a boutique agency with 14 years of experience. The agency's design approach places a lot of emphasis on content and understanding the audience to convey an effective message. Their core value is that results should never be compromised for the sake of "good" design.

In this interview, we’ll discuss:

• Why your agency needs a north star to stay focused.
• The difference between scaling vs. growth.
• How agency owners sabotage their growth by not adapting.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

Why You Need a North Star 

Don't let the name fool you; Ugly Mug represents the agency's philosophy of prioritizing results. It originates from a quote by David Ogilvy, where he said “I rather you show me an ad that’s ugly and effective over one that is beautiful but isn’t." This quote became Wayne's north star, keeping him from getting sidetracked by awards and accolades. Instead, he believes that agency owners should focus on solving clients' problems and getting results.

What's the Difference Between Scaling and Growth?

Scaling a business and growing it is often confused, with the latter becoming a buzzword. According to Wayne, scaling involves having more free time and working only in the areas you choose. However, growth leads to time constraints and doing things you hate. To scale, you need to have the right mindset, systems, and processes in place.

4 Reasons Why Some Agencies Are Not Scaling

1. The owner's mindset is the main reason why agencies fail to scale. In the beginning, Wayne's ego played a significant role, and he enjoyed being the hero who saved the day. However, he realized that he needed a clear vision of where he wanted the agency to go to communicate it to his team. That way, they could make better decisions, and he wouldn't become a hindrance to growth.
   

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2. Many agencies fall into the scale hustle trap when they hit certain levels of revenue or employee numbers, believing that they only need to work harder to get to the next level. However, the key to scaling is having the right systems and processes in place, documenting them, and trusting your team to have autonomy.
   

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3. To scale, you need to balance alignment and authority. Without autonomy, everything is controlled, and without alignment, there's chaos. Everyone must be aligned with the agency's vision, and team members must have autonomy to make decisions.
   

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4. Ideally, you want to stay around the complexity line, which indicates that you're growing. The faster you scale, the more chaos you feel, but if you pull back, you're sabotaging future growth. Feeling overwhelmed means that there's too much on your plate, and you need to adapt your processes to grow.

Wayne's philosophy is that agencies should focus on delivering results and solving clients' problems rather than just winning awards. Scaling requires the right mindset, systems, and processes, as well as a team aligned with the agency's vision and autonomy to make decisions. Don't be afraid of complexity, adapt to it, and keep growing.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Considering adding software as a service to your offering? Do you have a SaaS idea in mind? Having proprietary agency software is a great way to meet the needs of your clients. However, building it is no easy task and often takes longer than expected. Today’s guests created an email marketing system which led to building their agency back in the early 2000s. They share lessons learned and challenges overcome in the process of building their email marketing agency out of a SaaS model.

Robert Dodd and Joe Solano are the founders of XL Technologies, a digital agency specializing in helping US-based real estate brokers grow and scale their brokerages. They have over 20 years of experience and help their clients using their proven and tested agent acquisition framework.

They also created proprietary software for real estate brokerages, which they use to help get clients better results from their campaigns. Their product, and the one that actually got their partnership started, is eCampaignPro. This email marketing system helps build targeted agent-to-agent email marketing lists.

In this interview, we’ll discuss:

• Discovering the right niche and selling a solution.
• The #1 common mistake sending cold emails.
• Recommendations on building your own SaaS.

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Sponsors and Resources

E2M 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.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and getting a new perspective to the show.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you have passion for your agency and clients? Have you identified your agency's purpose? Do you know your why and does your team buy into your vision?  One agency had a hard time with this and decided to begin a startup incubator to fill the void. The results have been amazing for the agency, the team, and their clients. She managed to create a very cool agency model that both creates opportunities for startups with a lot of potential and also provides investment opportunities for her staff, even in the early stages of their careers.

Laura Hutfless is the Co-Founder at FlyteVu, an entertainment marketing agency that helps brands connect to consumers via pop culture and purpose. Their work varies depending on the client, but it includes music events, influencers, endorsement deals, and more recently gaming. In short, they help clients try to keep up with pop culture and stay at the forefront.

In this interview, we’ll discuss:

• Why agency projects need to have a purpose.
• The process for working with incubator clients.
• Advice for agency owners starting to invest.

Subscribe

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

 

Why Every Agency Project Should Have a Purpose

Laura started her own agency, but her niche was something she stumbled upon accidentally. Before starting the agency, she worked in the talent agency CAA brokering deals between talent and corporate brands. As brands began to spend more on entertainment and influencers, Laura was asked to work for them. She saw the need to help companies navigate the new influencer culture to stay relevant to younger consumers, which led her to start her own agency.

She wanted to take on as many clients as possible to help these companies make sense of this new landscape. However, she felt that she was only helping people who already had a lot of money just make even more money; and she began to lose her passion for the job. To combat this, she decided that every project at her agency would have an actual purpose. This means working on either a movement, a change in culture, or a gift bag.

Laura also applied these principles to her incubator clients, investing only in startups she truly believed in and incorporating causes that were close to her heart. Laura wanted 20% of the agency's revenue to go to charity. So, she created the FlyteVu fund, which clients, teams, and vendors can access, and which can reach up to $1 million dollars each year.

One of her agency's first clients was Bumble. Although they did not receive equity, it was a mutually beneficial partnership that allowed the agency to earn credibility and learn a lot about the process and what a brand like that needs. Laura wanted to set up a startup incubator for future opportunities and to help entrepreneurs with great ideas and no funds. Now the agency has enough staff and hours to dedicate to these kinds of projects without taking payment.

The Process of Working with Startup Incubator Clients

When choosing incubator clients, Laura looks for mission-driven brands that resonate with her and her team's values, ensuring that it is something they believe in. There is a dollar amount attached to the equity they will receive in the company. This determines the hours spent on that client, and they are capped on the number of hours. Laura also looks at the brand's growth plan, strategy, and where they are in their timeline to better understand what the agency's role is and how far they can get them.

Laura's agency offers services for incubator clients for a year. After a year, they can either go off on their own or retain FlyteVu as their agency and pay their fee. Laura also pays for the equity of companies that are not yet at a point where they can benefit from their services.

When it comes to having dedicated teams, Laura only sees the need to have a separate account team. She wants to offer her staff opportunities for investment and wealth-building, which she never had as a young executive. By setting up her own incubator, Laura is able to give back and provide opportunities for entrepreneurs while also benefiting her agency.

 

Advice for Agency Owners who Want to Start Investing

If you’re interested in setting up an incubator, Laura recommends you start small. It has taken her agency some time to figure out a process that was right for them and she is thankful she gave herself that time. “You don’t have to dive in a big way,” she says. A lot of these startups need a phone call a month or some advice. These entrepreneurs don’t have the connections you have and at the beginning that’s a huge part of the agency’s involvement.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you want more clients? Thinking about increasing your offering to attract more clients? Truth is, the opposite strategy is what helps a lot of agencies grow. Scale back to scale up! That's what this agency did when they took the scary approach of cutting back on their service offering and niching down. However, the results speak for themself.  That is how one PR agency went from functioning as a full-service to niching down and focusing on just one area. Learn the motivation that led to making this transition and how he prepared for it.

Matt McAllister is the Managing Director at Candor Content, a content marketing agency that helps technology companies grow by driving organic traffic and generating inbound leads. Their content programs turn websites into organic traffic magnets by publishing content that attracts visitors, builds trust, and forges enduring relationships. With a team so passionate about writing and content marketing, it’s hard to believe the agency was first focused on PR. Matt offers some insight into that transition process and their eventual success.

In this interview, we’ll discuss:

• Simplify your agency service offering and say no to the wrong clients.
• Going all in on niching down.
• Is the emergence of AI affecting content marketing agencies?

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Sponsors and Resources

E2M 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.

Shifting Focus From PR to Content Marketing

Matt started his agency 12 years ago, initially focusing on the PR side of the industry. At that time, he believed that most companies allocated a budget for public relations and that he would find clients easily. He did not consider content marketing because it was not yet a big thing. However, he had a content-centric approach to doing PR, offering to publish articles, research reports, and take over clients’ blogs.

Around 2015, HubSpot became popular and many companies realized the power of inbound marketing. They needed content to fuel their inbound engines, so Matt and his team focused more on creating content. However, in the early days of his agency, they fell into the trap of trying to be all things to all people. They gave clients a full-service offering where they would do anything needed, including branding, design, and positioning. This approach proved to be very stressful because they were a small team and had to rely on freelancers.

Simplifying the Agency Offering and Saying No to the Wrong Prospects

Eventually, they realized that it was time to strip down their services and focus on what they enjoyed doing the most. Niching down and saying no to the wrong customers is a natural part of growing an agency. But it's not as simple as it may sound. You have to consider possible risks and start implementing it with some clients first to assess the response. The hardest part will be drawing a line in the sand and start telling clients you will only work on a specific space. This involves offering referrals for all those wanting other services outside that expertise.

It's important to take the time to feel well-prepared for the shift. Too many agency owners pull the ripcord too early and go back to what they feel is safe before seeing results. Fortunately, they started to see results right away. Existing clients responded with more budgets for content creation, something they already knew his agency was good at. Additionally, new prospects trusted them in this area of expertise. They figured they must be really good at that if they were willing to focus on that one area.

Going All In On Niching Down to Attract More Clients

Realistically, you may go through a few rough weeks where you lose clients that don’t fit your new niche. The important thing is to push through that point. Matt’s agency lost about 10-15% of its overall revenue at first. "It was scary," he admits, "we’re a small agency so this was a significant part of our revenue for sure." He was definitely tempted to take some of the PR work opportunities that they have following their shift to content. Thankfully, his partner reminded him they needed to go all in on their strategy for it to work. Big changes like this benefit from having people around you who will hold you accountable for your commitment.

If he could go back to the agency’s first few years, Matt would have brought on help sooner. It’s common for agency owners to decide to do everything themselves at first to cut costs. "I called it an agency," he recalls, "but it was me and a couple of freelancers." Looking back, he would have liked to have more trust in the project and given more work to other people.

Scaling Back Services to Scale Up the Agency

As far as the transition, he would have more faith that it would all work out in the end. It certainly would have saved him some sleepless nights. Moreover, he would have cut down the agency’s services even more. It was a gradual transition, starting with the PR and messaging, and positioning offering. However, they kept doing email marketing and other services that they eventually dropped. Nowadays, it’s clearer for him that the agency shines when it comes to SEO, lead generation content, and brand generation content.

If you want to scale up, you must be willing to scale down first. In order to figure out how to strip down your offering, ask yourself two questions:

1. What would I do if I only received my payment after having performed?
2. How can I be the best at what I do and be clear about that?

How is the Emergence of ChatGPT Affecting Content Agencies?

Many in Matt’s team are writers and journalists who are very passionate about their craft. Understandably, a lot of writers are a bit nervous right now about the emergence of AI writing tools. There’s a lot of talk about these tools replacing writers. Matt doesn’t think this will be the case.

AI provides writers with the tools to get better ideas, get over writer’s block, and have the potential to make them better editors. Like anyone in the content creation space, he’s been following this technology closely and he’s excited about it.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you feeling threatened by AI? Are you worried that it could replace your agency's creative work? There are so many uses for artificial intelligence and it is here to stay. So it's time to embrace it and unlock the power of AI for your agency's growth. From creating meeting summaries to building websites, there are so many applications people aren’t talking about yet. Today’s guest has explored many of these tools at his agency and offers a few tips on the ones you should be testing to become more productive.

Carl Cleanthes is the founder of Epic Made, a digital art and animation studio that does most of its work in the entertainment advertisement space, including NFTs and PFP collections. In his agency, Carl has implemented the use of AI to generate images that can serve as a reference for the work they do. However, he has also discovered other very useful AI applications that any agency owner can implement to boost productivity.

In this interview, we’ll discuss:

• How AI is helping creators and agency owners.
• The benefits and power of AI in creative work.
• Will AI replace your agency?

Subscribe

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Sponsors and Resources

E2M 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.

 

How AI is Revolutionizing Creative Work

The conversation around AI is a layered and complex one, and not without controversy when it comes to copyright. At its core, however, artificial intelligence is a tool to help make human beings more productive, more creative, and allow them to execute their ideas faster and on another level.

Many people became aware of AI tools mostly through the use of ChatGPT or some image-generating artificial intelligence software. In reality, AI has been around for a long time but what’s really getting people excited now is the machine aspect of it.

The Benefits of AI in Creative Work

Pumping in a data set and creating content from that seemed like a distant possibility not very long ago. Now, AI’s ability to do this is just getting better and better, with the possibility to generate tons of content in just seconds.

This record-breaking shift to AI we’re seeing with ChatGPT is largely thanks to how intuitive it is. The ability to just drop an idea there and get very good and in some cases amazing quality text that needs very little editing is something that is helping get productivity to levels we could only dream of in the past.

Will AI Replace You or Your Agency?

Of course, not everyone has a positive interpretation of these developments. Some people fear AI will replace them. Instead, we should reframe it as adapting to the many ways in which AI can help us improve what we do. For writers, it’s a great tool to get that first idea to start your text. In fact, people who are just using it to create a text and then copy and paste are missing out. The real great results will come from combining the ideas the AI can give you with your own writing.

Carl doesn’t believe AI can fully replace human creativity. It will, however, hurt the bottom of the market. It won’t make sense to pay someone to do something you can now do yourself with AI.

The Power of AI in Business Productivity

Most agency owners have heard of ChatGPT or Jasper. However, their widespread use has made some people think this is the first AI tool of their kind. This is not true at all; these types of tools have been available for years and have many uses.

For instance, Carl uses Fireflies and Otter AI, which are AI bots that join your meeting, record it, transcribe it, note all the questions, and automatically email that to everyone in the meeting. He also uses Midjourney for image generation. In this case, he uses it to generate ideas instead of manually searching for references on the internet. It’s a good way to get a sample of what’s out there on the internet with the added benefit of saving time.

For copywriting, he uses some of the more known ones and also recommends Neuroflash. These tools are not only great for generating ideas for posts but also a good way to spice up an email or get a start on tedious tasks like writing a letter of intent. There’s still much to learn about the subject, so the important thing is to stay informed and constantly learn about this topic. You’ll find AIs for building landing pages, thumbnails, creating websites, so many functions most people are not yet aware of and that can really help you boost productivity.

TikTok is a Good Place to Start Researching AI Applications

Many people are unaware of the vast range of AI tools available, from building landing pages to creating websites. TikTok is an excellent platform to start researching and learning about AI applications, with informative and easy-to-digest content.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Did you know that applying behavioral science to your agency's work will result in better outcomes for your clients? By utilizing research-backed methodologies, you'll gain a competitive advantage. With extensive research on how to decipher customer thought processes, behavioral science is an incredibly useful tool for influencing and predicting their behavior.

Our guest today, Shirin Oreizy, is the founder and CEO of Next Step, a marketing agency that specializes in using behavioral science and research methodology to help clients achieve their marketing goals. Their approach is different from traditional marketing, which often puts all customers in the same box. Instead, Next Step seeks to de-risk the process and provide evidence-backed results. Shirin discusses the basics of the behavioral science approach, why it is so useful for agencies, and how her agency's methods lead to the best possible outcomes for clients.

In this interview, we’ll discuss:

• The role of behavioral science in digital design.
• 4-phases to use behavioral science to your agency's advantage.
• The importance of process transparency to gain clients’ trust.

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Sponsors and Resources

E2M 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.

An Under-Utilized Tool that Became the Agency's Differentiator

Behavioral marketing agencies have changed the way companies approach business, by offering unique solutions and products designed to meet the specific needs of their clients. While many agencies may rely solely on website design, graphics, and typography, successful agencies understand the importance of behavioral science in creating unique products and driving conversions. Shirin's interview explores the four-phase methodology used by her agency to leverage behavioral science, as well as the benefits of process transparency in driving sales.

The Role of Behavioral Science in Digital Design

The gap between what we know we should do and what we end up doing is significant. Behavioral science takes into account the fact that people’s emotions, environment, and social factors heavily influence their decisions. By studying these behaviors, agencies like Shirin's can identify gaps in existing marketing plans and develop tailored solutions that meet the unique needs of their clients.

Understanding Human Behavior to Design Unique Solutions and Products

Behavioral science is a social science that takes into account many external factors. It's important because people’s emotions, environment, and social factors heavily influence their decisions. Behavioral scientists take into account things like people’s laziness, biases, and heuristics, which are often overlooked in traditional marketing practices.

The 4-Phases to Use Behavioral Science to Your Agency’s Advantage

Shirin's agency has developed a research methodology called the science of design, which uses behavioral science as the backbone to understanding a situation. It’s a combination of qualitative and quantitative research to try to figure out why consumers prefer a product or ad. The 4 phases are as follows:

1. Behavioral Science Assessment: Their behavioral science researchers analyze how the client is currently marketing. They identify gaps and issues that can be addressed immediately.
2. Qualitative Research: This phase involves talking to about 10 people to verify the agency is moving in the right direction.
3. Quantitative Research: This phase involves testing the different hypotheses against each other. The goal is to figure out what works. The test groups have significant numbers so there is no question about the results.
4. Incorporating the principles: Designers and copywriters get involved to incorporate these principles into the work they’re doing for the client.

Why Process Transparency Will Help You Sell More

Process transparency is one of the core principles of behavioral science. Research shows that human beings value effort, hence explaining the process behind a product or service ensures clients will value the result more. Clients with information about what happens in the background are willing to wait longer, increasing the likelihood of driving conversions.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you have trusted referral partners? Every considered merging with an agency partner? A merger can be a good way to expand your service offering, but surviving a merger is a whole other thing. The right partner gives you access to highly skilled professionals, more creative ideas, and proven methods to maximize success. Today's guest found a great, longtime partnership. However, when it came time to merge their agencies, both opted to maintain ownership of their individual entities. He explains the thought process behind this decision and the road that led to his eventual acquisition.

Gus Wagner is the president and owner of The Rocket Group, a full-service agency based in Missouri. In its long history, the agency has worked in all sorts of different sectors with businesses, organizations, and nonprofits; focusing on government communications and politics. Established as a virtual organization since its beginnings, the agency has always worked with independent contractors to help build and perform their client marketing tools and activities. For this episode, he recalls his agency journey and how he and his partner decided to set up a separate agency to work together and not lose control of their individual businesses.

In this interview, we’ll discuss:

• Protecting agency ownership when collaborating with a partner.
• Should you sell your agency to a competitor?
• When and how to announce an agency acquisition.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

 

In 2001, Gus, a sales and marketing manager for different manufacturing companies, quit his job and decided to start his own agency. After 21 years of working with The Rocket Group, he had completed numerous opportunities and projects, specializing in tools to help his clients communicate online and in the real world with their customers and prospects. Gus is also a certified social media strategist and enjoys training interested parties in these ever-changing modern communication platforms. Over the years, he has made valuable strategic partnerships, with some colleagues working with his agency for more than 5 years. On a daily basis, his agency works with 19 state associations, 200 individual member public utilities, and one national organization.

Protecting Agency Ownership While Collaborating with an Agency Partner

However, there was a time when Gus decided to set up a separate agency to protect ownership of his original business. This happened when he officially formed an agency partnership to maximize his success. Instead of merging their agencies, they created a third entity owned by both of businesses. Whether because of different industry niches or partners who didn’t want to get too involved in the entire agency’s operation.

Many agency owners are always networking and passing business back and forth but keep their businesses separate. In fact, clients are often aware of this. For Gus and his partner, it was a case of simplifying things for the clients. This way, they would have to deal with one entity instead of two.

It seemed like the best way to go about these partnerships since Gus also didn’t want to sell a piece of his agency. This is because many businesses don't want to give up ownership of their organization, especially to someone they don't trust. When it comes to selling your agency, there are many things to consider, such as your employees, clients, and the value of the agency itself.

Should You Sell Your Agency to a Competitor?

If you decide to sell, it's important to make sure that the buyer is someone you trust and that the process is done right. In Gus's case, he was approached by a competitor who wanted to acquire his organization. They accepted and closed the deal in March 2020. The buyer was a known competitor who had been working with the same pool of clients for some time. It was a smaller agency trying to win social and digital campaigns for public utilities. They were trying to do it differently and weren't being very successful with that client base. They were put in touch by a client who had worked with both and they got to compare strengths and weaknesses. The conversation grew from there.

At that time, Gus’s agency was growing more than he and his partner were comfortable with. Hence, it was attractive for them to form a larger structure to take over that growth. It took about six months from the initial conversation to signing the paperwork and making the announcement.

How and When to Announce an Agency Acquisition

Announcing an agency sale can be challenging as clients may assume the services will quickly lower in quality. However, if you wait until they have positive comments about the service to announce the sale, they’ll see there was nothing to worry about. In Gus’ case, the buyer was excited about the purchase and the new capabilities it brought for their agency, so they made the announcement right away.

Gus has been in this industry for over 21 years with The Rocket Group and about 15 years before that. He advises keeping things simple, keeping your eyes on the prize, and keep moving forward and upward. He also emphasizes the importance of protecting ownership of your agency, which he did by setting up a separate agency and forming agency partnerships. This way, you can maximize your success without giving up control of your original business.

 

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you running your agency, or is your agency running you? Are you lacking the freedom you thought you'd have in your agency? Many owners start growing their agency, getting more clients, and hiring more people and quickly find they’ve built a prison for themselves. Today’s guest went through this and came up with a method to regain freedom and buy back your time. He now helps clients set up systems to identify their buyback rates and delegate tasks so they can maximize time and revenue.

Dan Martell is the CEO of SaaS Academy, the largest coaching company for software CEOs. He has owned and sold several agencies and continues to invest and buy companies through his company, High-Speed Ventures.

As a troubled teenager, Dan discovered his obsession with computer programming while serving time in a detention home. Many years later, he started and sold several companies. He has two venture companies and has been an angel investor in about 50 companies. He is currently CEO of SaaS Academy and is further developing his personal brand as an author. Today, he talks about his new book, Buy Back Your Time, where he details the method he created to help business owners regain their freedom.

In this interview, we’ll discuss:

• How to calculate buyback rate and conduct an audit of your time.
• 3 mistakes entrepreneurs make when they reach the pain line.
• 5 key hires to help you delegate and reclaim your time.

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Sponsors and Resources

E2M 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.

 

How to Calculate Your Buyback Rate

The “buyback rate” is a concept that many entrepreneurs are embracing to avoid the “pain line.” This is the point where they can no longer balance their personal and business life. Dan's book explores the buyback rate in-depth and discusses how it can help you build a successful business while enjoying your personal life.

Dan, the author of Buy Back Your Time, teaches entrepreneurs to calculate their hourly revenue value to determine their buyback rate. To do this, divide your annual income by the number of hours you work per year, then divide that amount by four. The result is your buyback rate.

Calendar Audits to Identify Tasks You Can Delegate

Once you have your buyback rate, it's time to audit your calendar. Dan advises clients to audit their calendars for two weeks, highlighting tasks they enjoy in green and tasks that drain their energy in red. Each red task should be rated on a scale of one to ten based on the cost to outsource it. Tasks rated as one will cost ten dollars to outsource, tasks rated as two will cost twenty-five dollars, and so on.

After classifying tasks, Dan suggests that you work through the $1 tasks, the ones that will cost the least to outsource. While this might not free up a lot of your time at first, it's important to build the muscle of delegating.

Dan warns that buying back your time isn't about going to relax. It's about using that time to generate more revenue for your agency. It's important to avoid the "pain line," the point where people start making rushed decisions.

The "pain line" can cause entrepreneurs to stall, sabotage themselves, or sell their business, even if it's thriving. Dan has developed a replacement ladder with five levels to help you buy back your time gradually. The levels are Executive Assistant, Delivery, Marketing, Sales, and Leadership.

 

 

The Five Steps in the Replacement Ladder

Dan suggests starting with an Executive Assistant, who can help with scheduling and administrative tasks. Next, hire for Delivery, so you can delegate client work. Marketing and Sales come next, where you delegate lead generation, conversion, and follow-up. Finally, when you have a team in place, you can focus on Leadership.

Dan emphasizes that buying back your time isn't a one-time event. Instead, it's a loop that you should continually refine. It's essential to solicit feedback from your team to prevent stagnation.

In conclusion, the buyback rate is a useful concept for entrepreneurs who want to balance their personal and business life. By identifying the tasks they can delegate, entrepreneurs can focus on generating revenue and avoid the "pain line" that often causes them to stall, sabotage themselves, or sell their businesses. The buyback rate allows entrepreneurs to buy back their time gradually, building a team that can take over their day-to-day tasks, and create a successful business while enjoying their personal life.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

What are you doing to keep your team happy? Do you have an amazing culture? Is your team passionate about the agency's vision? Do they understand their growth plan beyond their current role? Your employees are your most valuable asset. That's why one agency owner shares his strategy for maximizing employee happiness and how that's led to massive productivity for his e-commerce media agency.

Samir Balwani is the founder and CEO of QRY, a media buying agency for e-commerce and direct-to-consumer brands. Their media methodology and testing framework called the QRY Paid Media Process has enabled e-commerce brands to reach new customers and accelerate growth.

In this interview, we’ll discuss:

• The importance of people management for team happiness and productivity.
• Favoring process-driven thinking and management layers.
• Thoughts on DTC moving to an in-store product line.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

Importance of People Management for Employee Happiness and Productivity

People management is a critical factor in keeping employees happy and productive, yet it's often overlooked by many businesses. Samir, the founder of an agency that specializes in working with direct-to-consumer e-commerce brands, understands the importance of prioritizing people management. He's implemented various strategies at his agency to ensure that his team is engaged and motivated, even as the company has grown.

One of the keys to maintaining a sound work environment is to create a culture of feedback and communication. Samir has implemented 360 reviews, growth plans, and annual plans to help his team stay passionate and excited about their work. He also recognizes the importance of preventing burnout by ensuring that workers feel valued and appreciated. Allowing employees to voice their concerns and be heard is a crucial part of creating a space where they can thrive.

Favoring Process-Driven Thinking and Management Layers at his Agency

Another critical aspect of people management is fostering a process-driven approach that doesn't hinder innovation. Samir believes that layers and organizational structure are essential to allowing people to learn from those with more experience. His agency has a coordinator level, a manager and strategist level, and a director level, which has helped to empower employees while also providing them with the support they need to grow.

Being a Data-First Business and Sharing Valuable Information

As a data-driven business, Samir's agency collects a lot of valuable information about the e-commerce marketplace. They've created a benchmarks page to share high-level trends and KPIs with their clients. This helps to build trust and demonstrate their expertise.

Should Direct-to-Consumer Brands Make the Move In-Store?

Samir also believes that direct-to-consumer brands will need to reconsider their approach to brick-and-mortar stores in the coming years. These stores can provide valuable validation and brand awareness. However, they may not be the best fit for every brand. Working with wholesale partners like Target can be a more strategic way to build brand awareness. It also allows a brand to grow without cannibalizing a company's entire product portfolio.

Improve employee happiness and productivity in your agency. Take a cue from Samir and prioritize people management. By creating a positive work environment that values communication, feedback, and innovation, you can set your team up for long-term success.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Are you in the growth phase or the scale phase of your agency journey? Do you need generalists, specialists, or both? Knowing where you're at is the key to knowing who to hire to get where you're going.  Today’s guest is in the scaling phase and believes this is when an agency needs to hire specialists. Before that, it’s all about hiring generalists that can handle multiple tasks and get the business to the next stage.

Manish Dudharejia is the founder and president of E2M Solutions, a full-service, white-label digital agency. His agency works as a trusted partner to scale your agency business behind the scenes. E2M has been serving agencies for 10 years and currently works with about 130 agencies across the U.S.

Manish is a valued partner of the show and as a repeat guest, he shares his experiences solving some of the most common agency growth challenges. In this episode, he shares some of the hiring decisions that may be holding back agency's growth.

In this interview, we’ll discuss:

• When to hire a generalist or a specialist.
• The differences between the growth phase and the scale phase.
• Why automation is the next step after hiring specialists.

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A Common Hiring Mistake for Agencies in The Early Growth Phase

If you’re past the initial growth phase with your agency, what would you have done differently to scale faster? Like many agency owners, Manish didn’t know a lot about building a team back when he started his business. More than 10 years later, he has learned that when you’re starting an agency or you’re in the growth phase, you want to make sure you start off with a team of generalists.

Generalists are people who are not necessarily tied to a specific role. They are able to work in several different roles during the agency’s growth phase. After reaching certain goals and entering the scale phase is when you need to hire specialists.

After opening his agency for business, Manish started looking for specialists right away. He figured he couldn’t run the agency without them.

The Importance of Hiring Generalists in the Early Growth Phase

When starting an agency or in the growth phase, it is essential to hire individuals who can be flexible and perform multiple roles. These individuals, known as generalists, can provide much-needed support in various areas, allowing the agency to save costs and reduce the number of people to manage. Hiring generalists during this stage also enables the agency to avoid having idle employees and ensures that the quality of work does not compromise.

3 Advantages of Hiring Generalists

In the early growth phase, it is common for agency owners to approach growth-related problems by hiring more people. However, this approach can be both costly and time-consuming, especially if the right employees are not found. On the other hand, hiring generalists provides several advantages, including:

1. Reduced Costs: By hiring generalists, the agency can combine multiple roles into one, saving on costs and reducing the number of people to manage.
2. Increased Resourcefulness: Generalists are known for their resourcefulness, which is an essential trait in the early growth phase. These individuals are versatile and can perform multiple tasks, providing the agency with much-needed support.
3. Improved Quality of Worhttps://jasonswenk.com/amazing-agency-talent: Hiring generalists ensures that the quality of work does not compromise, as these individuals can perform multiple roles and provide support in areas where it is needed.

The Right Time to Hire Specialists

As the agency moves from the growth phase to the scale phase, it is time to start thinking about hiring specialists. Specialists bring unique skills and expertise that generalists may not possess, and they play an essential role in scaling the agency. Once the agency has reached a certain level of profitability and established a talent pipeline, it is the right time to start thinking about hiring specialists in each department.

Hiring generalists in the early growth phase is crucial for the success of an agency. These individuals provide versatility and resourcefulness, saving the agency costs and improving the quality of work. As the agency moves from the growth phase to the scale phase, it is the right time to start thinking about hiring specialists who bring unique skills and expertise to the business.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you want your eventual exit to benefit many instead of a few? Want to motivate and empower the team by making them personally invested in the agency’s success? Have you thought about employee shares or stock options? Learn what you should do and what to avoid in this situation from the CEO of an employee-owned agency. It was an unconventional exit strategy by its owner. However, it the new ownership structure offers many benefits for all involved and is a very interesting way to positively ensure that everyone at the agency has skin in the game.

Leeann Leahy is the CEO of VIA, a full-service advertising and marketing agency based in Portland, Maine. They are an award-winning team and one of the largest independent agencies in the business. How did they do it? Many years after its creation, the last remaining original partner decided to build a very interesting ownership structure that would benefit all employees instead of a select executive team. Leeann discusses the process of putting such a structure together, the challenges, and the many benefits it creates for the business culture and overall employee commitment.

In this interview, we’ll discuss:

• How to set up an employee-owned agency and mistakes to avoid.
• Finding the right agency employee ownership option.
• Why successful ESOPs start with a foundation of good culture.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

 

Create Something Larger than Yourself with an Employee-Owned Structure

In a sense, Leeann grew up in the agency world. She was a child actor in several commercials, so she grew up around the business of advertising. At one point in her life, she swore off that world. However, she fell right back into it with account planning. Since then she has had a successful career working at both large and small agencies. Ten years ago she moved to Portland, Maine and became the CEO of a very interesting employee-run project.

When the agency was created, its three owners had a vision of creating something larger than themselves. This is why they named it VIA (Vision, Instinct, and Action) instead of something tied to the founders. Over the years, two of the partners left and, as the last one prepared to step away from his active role, the agency got a lot of acquisition offers. With Fortune 500 clients and awards for best culture, the agency was a valuable asset for any buyer. Instead, the remaining partner had something very different planned for his exit strategy. He set up an agreement whereby he would give the agency to the employees.

This was not a typical employee-ownership program. It was completely bespoke, with lawyers and accountants advising against it. However, they started a program measuring the agency’s performance each year and if they reached certain metrics, the owner would gift a portion of his ownership in the form of options.

The program, which they called VEEP (VIA's Employee Equity Program) was meant to last for ten years. Fortunately, they were actually able to do it all by year seven.

Finding the Right Agency Employee Ownership Structure

Seven years after starting VEEP, employees could convert their earned "options" into shares. This is when they realized the lawyers and accountants were right.

The original agreement had the best intentions; however, it didn’t take tax implications into consideration. The problem was that the conversion from options to shares was prohibitively expensive because of the agency's growth over the years. As a result, they were forced to reevaluate their situation.

They looked at many different types of structures that didn’t involve giving up their independence. In the end, they landed on an ESOP (Employee Stock Ownership Program), a program overseen by the government. It has huge tax exceptions, so there are benefits for both the employer and employees. It is basically set up as a qualified retirement plan.

Now everyone at the agency is given more shares every year at no cost to themselves. That grows over time and, by the time they leave the agency, they’ll have something they can roll over into an IRA or cash out. This way, they’re actually earning as the agency grows and everyone is invested in the agency’s success.

3 ESOP Models Depending on the Owner’s Future Role in the Agency

Does the owner get paid out in an ESOP structure? The short answer is yes. Of course, they had to find a way to make it work both for him and the employees.

In VIA's case, the owner was paid out in two segments with a down payment and the rest over time. Technically, it was all done through a trust. They set up a trust that "bought" the agency and allocated shares to the employees. This way, the Board of Directors would still govern operationally while a Trustee Committee oversees the Board.

It was a complicated feat to pay out the owner and recognize the value he had gifted employees over the years. It involved a lot of legal math and the collaboration of many lawyers and accountants. Depending on how you structure it and what the owner wants their future role to be, they can still have residuals or be completely out.

The owner payout in an ESOP can work in 1 of 3 ways:

1. The owner receives 100% of the buyout through a note with an interest rate or participation in the ESOP.
2. It could be through a down payment to the owner and a note for the remainder.
3. Funding can be sourced from an outside, third-party.

Pros and Cons of an Agency ESOP

To take a similar route with your agency and have successful results, the first key is having the desire for everyone to benefit, as opposed to just the founder and a small executive team. This doesn’t mean they’ll all benefit equally but rather in an equally fair manner based on their contribution and compensation.

People get nervous around ESOPs because it generally involves taking on debt to buy out the founder. This debt gets paid first, even before the owner’s note, so the government knows you’re repaying it. Furthermore, you have to hold a certain amount of cash in reserves for when people redeem shares.

At Leeann’s agency, they set up the ESOP so only employees can hold shares, but this also means the agency needs to be ready to buy people out when they leave.

There are some ties to it for the employees, like paying a penalty if you decide to take out the shares before reaching a certain age. Nonetheless, the big benefit for the business is the ability to operate as a tax-free organization.

Investing in Good Culture and Commitment to the Agency’s Success

Being in a creative industry, it’s important to provide a work environment where employees feel motivated and inspired. The key to achieving this is keeping them happy. This agency invests in its happiness factor by providing its team the opportunity to work for themselves. It’s an interesting approach to the problem of employee engagement by offering benefits linking the overall agency’s performance to the team's personal gain.

Of course, this structure is not without risks. It’s built in a way in which, if you maintain a good culture and an engaged employee base, they’ll be invested in the agency’s success. If people are not engaged and it’s just a job to them, then it all falls apart. On the contrary, if they understand the agency’s success is their success, then odds are it won’t fall apart.

To ensure they give a space where employees can voice their concerns, VIA introduced VN Voices. It’s a new figure apart from the Board of Directors and the Trustee committee called the Associates’ Panel. They’re a group of seven volunteers who represent the employees. They raise issues affecting the team and bring them to the Board and Trustees.

A Successful ESOP Starts with a Foundation of Good Culture 

If you’re interested in creating something similar to the model Leeann’s agency came up with, she recommends having a well-established culture. “It’s just not something you can create on top of it,” she says. VIA already had a culture of investing in happiness, people, and fun. They invest a ton in mental health and creating an equitable environment to introduce diversity. Investing in your culture is a good way to invest in your agency’s future. “No matter where you land, you’ll be passing on something more complete if you invest in the culture,” Leeann assures.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you want to grow your agency through an acquisition? Would what it would look like to merge with an agency offering complementary services? What if you could expand your team by acquiring another agency's talent?  An acquisition might feel impossible, but done right can be an amazing growth strategy. Today’s guest never thought he would acquire not one but two agencies. He saw acquisitions as an impossible growth strategy that required enormous amounts of cash. In the end, it was just about finding the right partners. He is on the show to share his experiences buying out his partners and eventually making two acquisitions.

Todd Neinkirk is the co-founder of Four Kitchens, a digital agency that makes websites for organizations that educate, advocate, and reform. Their team builds digital content platforms, design systems, and apps for ambitious organizations. After nearly selling his agency and then growing back stronger and expanding his team and offering through acquisitions, he shares some of the changes he made to get to this point, as well as some of the unexpected challenges of the acquisition process.

In this interview, we’ll discuss:

• Taking a big risk to rebuild after a failed acquisition.
• 3 big structural changes to grow your agency.
• Why acquisitions aren't an impossible strategy.

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Sponsors and Resources

E2M 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.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: Darby Copenhaver is the Agency Scale Specialist at the Agency Mastery 360, which provides agency owners with the coaching, community, and tools needed to scale and find their freedom. He helps agency owners scale through a proven framework for growing their agencies faster and connecting with other amazing agency owners. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

Taking a Big Risk to Rebuild the Agency After a Failed Acquisition

Todd started the agency with several partners he met working for a student publication. With over 16 years in the business, they worked with large media companies and small non-profits, education reform groups, and universities. Over the years, however, his other partners wanted out of the agency.

At the start of the pandemic, he still had one partner left. They were coming out of a rough year and Covid affected the agency much earlier than other organizations in the US and Canada. The agency kicked off 2020 with a massive gap to fill with clients, with things only getting worse later that March. Luckily, they didn’t have to adjust to remote work, since they’d made that transition years before. However, they weren’t at all sure about their chances of pulling through.

They started looking for a way out and reached out to an agency that could acquire their business. The acquisition didn’t work out and with PPE loans starting to take shape, it suddenly seemed there was a way out. Todd took a risk and made his business partner the same acquisition offer in order to assume 100% ownership. It was a bold move at such an uncertain time but he is thankful he took the risk.

It took a lot of readjusting, rethinking the way they did business, and making pretty significant changes in early 2020. However, he got his investment back by the end of the year and went on to have a very successful 2021. Not only did Todd and the team manage to get the agency profitable again, but in 2022 they acquired several other agencies to expand the business. He is the sole owner of the agency which is the largest it has ever been.

3 Necessary Structural Changes to Grow the Agency

When it came to the agency’s second chance, Todd didn’t have a magic formula. In fact, much of what he did were necessary steps for growth (niching down, building a leadership team, etc). However, it took hitting bottom and almost selling the agency for him to be ready to face the hard truths.

For starters, Todd focused on the key people in leadership positions. He knew the ultimate outcome for the agency would largely depend on the mindset of the people at the top. It’s not even about what they do, but their approach and attitude can change the tide and really influence people’s commitment to the work and overall enthusiasm.

Taking the risk to assume full ownership of the agency and commit to its success reinvigorated Todd. It motivated him to put in the extra effort to make the agency as successful as it could be. With this in mind, he dared to address 3 fundamental issues he’d avoided:

1. Leadership changes. Some people in the leadership team weren’t in the right role. They had gotten the agency to where they were, but weren’t the right person for the next stage of its growth.
2. Marketing. The agency’s marketing strategies just weren’t working. Fortunately, they kicked off a marketing engagement with an outside agency in 2019. It was a big investment Todd had avoided but it started to show results in mid-2020.
3. Niching down. It was very important to be really specific about where they spent their time. This meant focusing on what they did best. In order to do this, they deprioritized leads that did not fit their expertise.

Building a Culture of Trust with Over Communication and Transparency 

The start of the pandemic was not an ideal time to make serious changes in any business. However, for Four Kitchens, it was necessary. The team needed reassurance Todd would empower the right people and make necessary changes.  Most importantly they needed to understand the vision of what success looks like.

Of course, at this point, everyone was paying close attention to these changes. To address the team’s concerns, he committed to communicating next steps, pipeline, and what else is on the table at least once a week. Ultimately he gives his team credit for rallying around the agency and showing enthusiasm about the new things they were trying. Not everything worked; some of the people they hired for leadership positions weren't the right fit, for instance. In one case, they had 100% turnover in one team and had to rebuild. However, the commitment to over-communicate with the team established a culture of trust.

The degree of transparency they had at the time about the agency’s finances is not necessary now. They have scaled back on these open-book meetings. If they get to a similar situation in the future, the team knows Todd will be forthcoming with information.

Why Mergers and Acquisitions Are Not Impossible with the Right Partner

Todd used to look at acquisitions as an impossible strategy for his agency. He had always assumed it required an enormous amount of cash on hand to even consider an acquisition. From a business standpoint, it is a great growth strategy. However, it seems overwhelmingly complex, and expensive.

This changed in early 2021, when a friend and fellow agency owner decided to retire, and reached out to let him know she was looking for the right partner to take over. Fortunately, they structured a deal that worked financially for both parties. The two agencies complemented each other as partners should, so they ended up forming a true merger.

This success gave Todd the courage to approach an agency in Costa Rica less than a year later in order to acquire their team.

A merger that helped reduce turnover. The Costa Rica team was part of his vision for international expansion but it also ended up being a good investment to reduce employee turnover.

Like many agency owners, Todd had regularly lost developers to tech companies offering up to 50% salary increases. How to fight this? A friend recommended hiring developer teams overseas and really investing in their compensation. Most people who hire international teams are just hiring cheap labor to feed bottom-line growth. However, if you really invest in those employees, you’ll end up with the same level of talent while also creating loyalty with a competitive salary.

How Different Acquisitions Present Different and Unique Challenges

After going through two acquisitions, one of the things that surprised him the most was how they differed from each other. With the first acquisition, it was a very small but very efficient and integrated team. The merger's influence on his agency’s structure was unexpected.

Todd's existing agency had much better ways to do things like technical strategy. In this sense, it was truly two equal organizations coming together to form a much better agency. The challenge was making sure they didn’t change anything the smaller agency was doing really well. Their processes were so efficient they heavily influenced how his agency would work from then on.

On the other hand, the second acquisition posed different challenges, mainly because it was an international organization. They had to create a separate entity to acquire that agency. Todd found doing business abroad is very different. Even simple things like opening a bank account proved to be very difficult and the process took several months. Thankfully, they had proper guidance and everything worked out.

Don’t Let an Acquisition Deal Take a Life of its Own

For those considering an acquisition as a means to grow, Todd advises not letting the deal take on a life of its own. Don’t lose sight of the fact that you’re not just trying to make the deal work. Ultimately, you’re trying to improve your existing agency. It’s very easy to slip into a mindset where you just think about the transaction as the thing you’re chasing. It should never be like this. The main focus should always be the outcome of the transaction.

That outcome won’t be immediate, it may take a year or two and you should prepare for this. An acquisition will fundamentally change your organization and you have to be prepared for this. Work with both your existing team and your incoming team because they will be the key pieces of that transition.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you have the confidence to charge what you're worth? Do your clients understand your agency's value? Understanding your value is an important part of growing your agency. It requires strategy and attracting the right clients. Most of all it requires a lot of confidence. If you truly believe in yourself and your pricing, the right clients won't think twice about paying it. Today’s guest specializes in taking her clients to the very highest levels in the market. She believes agency owners need to stop charging mainstream prices and start charging luxury prices in order to scale faster.

Kathryn Porritt is the owner of Icons Incorporated, a boutique agency that helps personal brands make the transition from mainstream pricing to luxury offers. Their clients land multi-million dollar deals in one transaction! They usually have big consulting gigs and commercial deals. Icon's job is to create connections for people for the sake of leveraging their personal brands at the very highest level.

In this interview, we’ll discuss:

• Growing your agency by starting at the top.
• Positioning yourself as the best at what you do.
• Why niching down is an important part of finding confidence.

Subscribe

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Sponsors and Resources

E2M 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.

 

What Are You Left With if You Don’t Build Your Brand?

When they start their business, agency owners tend not to put enough into growing their own brand. The thinking being it is essentially to not get too involved so the agency is more attractive for potential buyers upon the owner's eventual exit. For her part, Kathryn has gone through a similar process where she created, grew, and sold an agency. After the sale, she thought “what am I left with?” Without another business, advisory gigs, or book deal to fall back on, she had to take the lessons learned and start over.

After that experience, she advises agency owners to work on both their personal brand and the agency’s marketing in parallel. In the end, it takes time to build a personal brand into something profitable -- and now is the right moment to start. Even if you ultimately decide to sell, if you’ve protected your personal brand, you probably have a list of people who will follow you on other projects. That’s freedom. It allows you to explore other things once you sell. This way, you’ can build a profitable brand and have a legacy.

Starting at the Top and Growing Your Agency With a Luxury Pricing Model 

At some point, agency owners wanting to grow their business need to increase prices. Most of the time, they don’t even have a reason to justify their current prices. For Kathryn, part of the problem is most have experience with charging mainstream prices. Mainstream business strategies teach an ascension model, where you start from the bottom, build an audience, increase your offers, and eventually find people who will pay high ticket prices.

The core problem is most agency owners are not aware there’s a different way to get to the top. They don’t teach you the luxury strategy. The main difference between the mainstream and luxury models is that the latter will start at the top and then works its way down to still create an impact.

In essence, with the luxury model, you understand you have a true leadership position in the market. These are trendsetters and are not looking to the market for answers about what they’re building.

When you start at the top, you’re in the #1 position and work with fewer clients. For agencies, this means working really deeply with a handful of clients. Kathryn finds clients who work at this level are easier to work with.

Of course, you have to be really good at what you do. If you can provide a really specific world-class solution to a problem, then you can absolutely start at the top. The key element is having the audacity to go after a core set of clients who will invest heavily to have that world-class proximity.

How to Position Your Agency in a Luxury Model

According to Kathryn, in order to position yourself in a luxury model you must drop humility at the door. It sounds harsh, but it doesn’t mean you can’t be a good or nice person. There’s also no need to post pictures with a private jet and brag about how much money you have. In reality, it’s about showing such a level of confidence and certainty that you are magnetic. Kathryn calls it “iconic embodiment” which is the moment where you step into the most arrogant version of yourself. This is the key to positioning the luxury model.

If, as an entrepreneur, you can walk into a meeting, sales call, or pitch with that level of power and the knowledge that you’re the right person for the job, you’ll be unstoppable.

What if you don’t think you’re the best? There is a space for all experts to claim as their own and where they can with all certainty and integrity claim to be the best. You may not be the best in the world for everyone. But you can certainly be the best for the right people. It shouldn’t be about pretending but rather about really believing you’re exactly what that client needs. This is why niching down and knowing your audience is such an important part of finding your confidence.

In the end, knowing your worth is a very attractive quality. If you don’t know it, then nobody else will.

Is this the Right Time to Charge Luxury Prices?

With the economy being what it is right now, you may want to change your offering a bit and work with a handful of clients who can afford it. If you’re starting to find it quite difficult at the low end of the market, is there a strategy where you could work with clients more deeply? Think about how you could restructure your agency so that you’re providing more attention to each client and be paid at a higher level.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

What do you think about hustle culture? Do you have a healthy work-life balance with your agency? Does your team? As the owner, you set the tone for the agency's culture. And what is important to you by extension becomes important to the team. Today’s guest owns a boutique agency she started after quitting her job in the tech space after feeling exhausted from 80-hour work weeks. She started fresh in Belize with a new mindset about the type of work-life balance she wanted and the culture she’d create for her agency.

Jeanna Barrett is the founder and Chief Remote Officer of First Page Strategy, an award-winning remote growth marketing agency. She has 17 years of inbound marketing experience working with venture startups, digital agencies, and fortune 500 companies.

Six years ago, Jeanna left the US and built a business in Belize. What started as freelancing grew into a full inbound marketing agency with 40+ experts across the globe. Beyond the success of her agency, she’s most proud of the culture she was created with her remote team. Jeanna encourages different passions outside of work and promotes a healthy work-life balance. She shares her journey of creating an anti-hustle culture for her agency.

In this episode, we’ll discuss:

• Recovery from the hustle culture and burnout.
• Prioritizing boundaries to create healthy agency culture.
• Embracing your team’s passions and hobbies.

Subscribe

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

Podcast Takeover!!

Get to know your Smart Agency Guest Host: John Corcoran is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

Recovering from the Hustle Culture and the Burnout it Causes

In 2016, Jeanna was living in San Francisco and felt burned out by the non-stop work hustle and grind culture. She realized the “dream offices” popular in the tech world, with free lunch, snack bars, entertainment, and laundry service exist only to justify 80-hour work weeks. Jeanna was ready to leave the perks behind.

She was eager to live a life where she didn’t have to work all the time. She wanted time and freedom to focus on the things that make her happy.

Building a business in Belize may not be what she originally intended, but it is exactly what she needed to have a work-life balance. It is an opportunity to create a work culture valuing and encouraging different passions and pursuits outside of work. Her agency focuses on employee performance based on tasks completed and not on the amount of time spent in front of a computer.

A Lesson on the Benefits of Doing Content Marketing Right

Fortunately, after 15+ years of working in marketing, Jeanna had a network she could tap into. She was looking to work as a freelancer and started by calling old clients and colleagues. Eventually, her freelance business evolved into an accidental agency.

Getting her first big client was a lesson in content marketing. At one point, Jeanna wrote an article about how she left her career and moved to the Caribbean. It offered advice for people looking to do something similar and work remotely. In the article, she mentioned the company she used to establish her business as an LLC. Ironically the company had fired their SEO partner and contacted her to take over the role. She had not yet formed an agency but decided to give it a try.

She started with a small entry-level contract, so she just hired two consultants to work on SEO content. After that, they scaled every year, based on the services and the needs they cover. By year two, she added another three people to work on that account, and year three added another three employees.

At first, they worked exclusively on content creation but as the relationship developed they slowly added other services like email marketing and lead generation.

Prioritizing Boundaries to Create a Healthy Agency Culture

Since the beginning, Jeanna had a certain culture in mind for her agency. It was always one of the most important pieces of what she was trying to build. To avoid going back to old habits that ultimately burn people out, she focused on building a culture where the work would not leave employees feeling exhausted or stressed. No one is happy working under those conditions. Instead, she created a work environment that encourages a work-life balance. You are more efficient when you're not constantly replacing people and everyone is noticeably happier.

It would’ve been easy to go back to old habits, which is why Jeanna is obsessive about boundaries. For instance, she follows certain routines like blocking her calendar to ensure she schedules time to exercise and have lunch at a certain time. It’s more about making sure she takes care of her health. This is what works for her; however, it varies person to person. This is a conversation she has with all employees. It’s important for them to know which boundaries will help keep them delivering great work while remaining healthy and happy.

Boundaries with clients. If you’re going to respect boundaries within the agency, they should be established with clients as well. As a boutique agency, they only take on the business they can handle. They talk about their boundaries as a team and are very strict about adhering to them - even with clients. Ultimately, it’s about setting and managing expectations.

Should Your Agency Invest More in PPC or SEO?

One of the biggest objections to inbound and content creation is it takes too long to see results. Clients likely have to wait 6-8 months to see results. It is more of a long-term strategy when you’re using PPC ads to pull people in.

Clients tend to fall into the trap of overly investing in PPC and under-investing in SEO and inbound. PPC is an expensive but powerful engine. Some spend $50+ for one click, and even then, how many clicks does it take to convert a customer?

It is very competitive out there and if your competition is using PPC then so should you. However, Jeanna feels clients could be investing more evenly in what they put into PPC and the long-term strategy. Investing in a long-term strategy will get their business to the first page and ultimately reduce their PPC spending.

As an expert in SEO and inbound marketing, she says no brand has ever regretted investing in quality content marketing.

Changing Your Mindset to Retain a Happy and Fulfilled Team

You may really love your digital agency but there’s probably a lot you’re passionate about outside of work. This is true for every single team member and it's something Jeanna tries to find out during the interview process. She has discovered one employee has a cookbook, others are runners or had a band. It’s a great way to realize the different types of people within the agency and presents the opportunity to highlight or celebrate these passions. It’s important to encourage these outside hobbies because happy and fulfilled people are better workers.

A change in culture requires a change of mindset. If you’re under-investing in building your agency’s culture, the first thing to change is your mindset. Putting a number on how much you should spend makes no difference if you don’t believe in its importance.

Important Investments in Your Agency's Growth

Ultimately, the first significant change is hiring a leadership team. It’s one of the most important steps in realizing you don't need to micromanage people so they produce good work. It's also a way to get yourself out of daily operations and focused on scaling your agency.

Another important investment for growth is an amazing project management system. All your agency work goes through this system and it’s worth the investment, especially if you have a remote team. With a remote agency, the PM software is the central system that sort of becomes your "office space" and should be prioritized as such.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you feel like you're in no man's land? Growing beyond the $1 Million mark and beyond 7 figures can be a very gray area where the agency is making more money but the owner is working more than ever. This is no man’s land and it's a sign you need a strong leadership team to get the agency to the next level. Today’s guest is an accidental agency owner, like most, who found the transition to Agency CEO reignited her interest in the business. She now runs an agency that serves its clients and aims to have an impact on the community.

Ruth Bernstein is CEO and co-founder of Yard NYC, a New York-based creative agency that helps turn brands into cultural beacons. They’ve worked with brands like Amazon, and Walmart with the belief that purposeful brands can both drive cultural relevancy and good business. After growing as an agency and getting past certain milestones, they have also worked to turn themselves into a brand that creates change.

In this interview, we’ll discuss:

• How to raise prices and charge what you're worth.
• Why culture misfits that can cost your agency big opportunities.
• Navigating no man's land by hiring a leadership team.

Subscribe

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Sponsors and Resources

E2M 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.

 

Starting a Female-Led Agency During the Industry’s Mad Men Era

Ruth and her partner Stephan worked on the client side in London and had never worked at an agency. At one point, while working with media companies, they started looking for agency partners in the fashion, wellness, and beauty space. They were looking for partners who could bring strategy to the table, were female-led, and really understood how to work with in-house teams. It was the '90s and still the “Mad Men” era in the agency space and none of the candidates met these requirements.

This is how they became accidental agency owners. They had never worked for an agency or run one but their search on the client side revealed there was a niche for this type of agency. Coming from the client side, they already had credibility and went for big-brand clients right away.

How Culture Misfits Can Cost Your Agency Big Opportunities

Mistakes help us grow. And one of those from Ruth's early agency days was delegating negotiations with a prospect to a consultant. It wasn’t right for the agency and nearly made them lose their first really big project. At the time, Ruth was in charge of strategy and Stephan was heading up the creative side. Neither of them had negotiated an agency deal. Since it was a big client, they figured it would be best to delegate negotiations to a consultant who could help make sure it was solid.

Unfortunately, the consultant’s tone and manner of handling the deal nearly made them lose the client. In hindsight, this person did not align with the agency's culture or vision. The client approached Ruth and Stephan because they knew and trusted them.

As a result, they learned communication is a key piece in showing prospects what it's like working with their agency. There’s nothing wrong with getting help in areas you don’t have experience. However, in this instance, they just needed the confidence to handle it themselves.

How to Raise Prices and Charge What You're Worth

Pricing is not easy. You have to do your homework and understand competition and what the client is willing to pay, as well as your own value.

As a smaller agency working with both bigger and smaller clients, Yard NYC geared prices toward smaller clients. However, it got awkward when those clients started growing and it was time to raise prices. For a lot of agency owners, this is a really difficult conversation.

Usually, it’s more difficult to raise prices for legacy clients than for new clients. Even some of the mastermind’s members with very successful agencies have gone years without raising prices to legacy clients. Under Jason’s guidance, they learned to look at the opportunity cost between new and old clients. At the point where the difference is just too big, it’s time to approach those clients, have a conversation about value, and explain a price increase. Almost all clients admit they’d been expecting a price raise and had no objections. By raising prices on existing clients you can increase revenue without increasing workload.

A Non-Traditional Approach to Partnering with Clients

After years in the agency business and witnessing success stories for many of her clients, Ruth realized there were other ways to gain from a client’s growth.

The team at Yard NYC came up with a partnership program of co-investing in some client businesses and providing marketing. They work with some clients who receive venture capital funds and saw the clients' business transformation. The value-added and brand-building were great; after five years they would sell and capitalize on the investment.

It’s not the typical client-agency relationship, but for Ruth, it’s an opportunity for getting more involved on the venture side.

How to Navigate No Man's Land By Hiring a Leadership Team

A lot of agencies fall into a kind of “no-mans land” between the $1 Million and $7 Million revenue mark. It’s a point where, after bringing in more people, the agency is making more money. However, agency owners are working more and making less.

This is the point Ruth realized it was time to build an executive leadership team. At some point, you have to bring in people to be the brains of the operation. There comes a moment as you scale where growth starts to demand a stronger foundation; not only for your own freedom, but so your organization can thrive. Surround yourself with people smarter than yourself.

Hiring leaders is a necessary step but one that usually leaves agency owners feeling like the business no longer needs them. Ruth's transition to CEO came naturally since they wanted a female leader for the agency. In a sense, this shift renewed her interest in the business. It was an opportunity to get out of her comfort zone and grow. She didn’t feel like she wasn’t needed but rather she was needed in new ways.

The beauty of having the right team and amazing culture takes a huge load off the agency owner. We’re all creative people who want to make, create, and transform. As you grow, your personality will emanate from the business, which doesn’t mean you have to be involved in every aspect of it. It’s important to build a leadership team and create a culture that encourages growth and involvement. By building a strong culture, you create the basis for the agency to run without you.

How to Make an Impact While Reinvigorating Your Team’s Passion

Doing great work while also having an impact. Agencies are constantly serving their clients and making great things. That takes up a lot of their time. However, agencies also have the power to put their creative abilities to good use. There are many other things you can do to impact on your community.

Ruth wanted to galvanize her team and put their voices out there as a women-led business. They organized a campaign around women's values. It not only created incredible buzz and managed to raise awareness, but it reinvigorated the team and get them excited about making a difference.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

If you’ve been paying attention, then you know this is the year for AI content creation like ChatGPT. (Even Ryan Reynolds and Mint Mobile know it  :) Should your agency be using it too? Are you worried about turning off clients over this technology? Or could you make more money using it?  There are drawbacks, which is why agency owners need to know the best way to leverage AI for content. Today’s guests are experts in content creation as they talk about pros, cons, and how agencies can use AI like ChatGPT to be more efficient and grow their business.

Ryan Sargent is the Director of Content Marketing at Verblio, the world’s friendliest content creation platform. Verblio builds content marketing for other marketers at scale by pairing specialized, niche writers with marketing agencies and marketing professionals. Verblio is a preferred partner of the show and Ryan is a repeat guest who brings amazing insight.

This time, he is joined by Megan Skalbeck, the content marketing manager at Verblio handling strategic initiatives.

The team at Verblio are experts at content creation and have done a ton of research on how agencies can leverage the power of Artificial Intelligence and AI tools.  You can check out their survey results at verblio.com/ai. With those results in mind, they shared some of their conclusions on the best ways to use AI for content creation while keeping high quality standards.

In this interview, we’ll discuss:

• How agencies can make more money by integrating AI tools.
• Weaknesses of AI and a hybrid plan for using them effectively.
• Why aren't more agencies using AI?
• 3 tips for making AI more effective for your agency content.

Subscribe

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

Links to other episodes featuring Ryan Sargent:
https://jasonswenk.com/creating-content-for-clients/
https://jasonswenk.com/content-creation-team/

How Agencies Can Make More Money by Integrating AI Tools

Where do content creation experts stand on whether or not to use AI? Basically, if your agency isn’t planning on using AI at all in 2023, you are making a mistake. On the other hand, if you think AI is going to replace freelancers, fool Google, and you’ll never need a writer again, that's also a mistake.

The reality is, agencies need to be using AI as soon as the next few months. We should all learn to use AI not as a catch-all, but as an actual tool. To this end, work with people who really understand AI.

Find the balance. As it stands right now, AI tools can produce a lot of words. However, there are a lot of weaknesses:

• Factual accuracy. There’s actually no guarantee the content produced by an AI is correct.
• Sentence structure. A blog post created by AI does not necessarily have a logical structure or make sense at all.
• Weakened SEO. Google knows AI-generated created content apart from what is human-written.

It is tempting for agencies to look at AI as a way to produce content at a much lower cost. However, with these weaknesses, the best alternative is a hybrid approach. Take content created by AI and improve it with human editing.

We shouldn’t view AI as a service or a finished product. It can do great work in saving writers from a blank page. With the right prompt, AI is great at generating ideas and continuing thoughts. As long as the writer is there to review and (probably) make significant edits, it can be really effective.

First Steps to Integrate AI as Part of Your Strategy in 2023

Curious about AI? Try a free version of any of the existing tools. This way, you can get a sense of their potential and learn how it works. If you’re not interested in exploring these tools in your own time, work with someone who is doing this. The important thing is to have a vision of how to integrate these tools into agency work. Don’t try to just jump into technology because it’s new without a vision for how it serves your agency. You don’t want to be the agency getting content that ranks but doesn’t convert and never makes money for the client.

AI is an incredibly powerful tool. However, it will add costs, both financially and in terms of time and effort. Instead of hiring an entire team of in-house writers or relying on the free version of the AI tool, find a partner who can provide AI expertise.

Why Aren't More Agencies Using AI for Content?

Can agencies use AI to make money? Yes, absolutely. But are they doing it yet? Verblio’s recent marketers survey reveals NO, agencies are actually lagging behind in the use of AI tools.

Verblio found agencies have been slow to adapt because they’re afraid of losing clients. They fear it could break trust or threaten the agency's position with the client. But, how true is this? Clients look at agencies as the experts to tell them if they should be using AI or not. The key is transparency. No one should be using AI to save money and hide it from the client.

The use of AI also depends on the type of agency. A branding agency won’t get as much use of AI as an SEO agency trying to produce content as rapidly as possible.

There is also an advantage to having the surge of AI now as opposed to 10 years ago. The Google algorithm is much better now at rewarding quality results. The algorithm doesn’t care how the content was created - it only cares about answering the searcher’s query.

All AI content is not created equal.  How you plan to use it determines how efficient it proves to be for your agency and the results it achieves for your clients. For instance, if you’re creating content around cutting-edge technology, it will not give the best results. AI is great for local SEO on more general topics because it’s been trained with existing online content.

3 Tips to Make AI Effective for Your Agency's Content Creation

1. Be transparent about AI use. Don’t underestimate the importance of being transparent with clients regarding your use of AI. Some of them may be concerned you’re not using it enough, or on the contrary that you’re overdoing it. An honest conversation about this allowing them to voice their concerns goes a long way.
2. Human intervention makes it work. Figuring out the best way to use AI is really important to get the best results possible. Take whatever the tool creates and give it a quick edit. To really get the most out of AI, have a human involved in the process providing structure and input throughout.
3. Find a partner. The current economy makes the use of AI very valuable. It’s not a time when many people are able or willing to hire an entire writing team for content creation. You can instead find a partner and leverage AI to create a lot more with less.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (Attract, Convert, Scale) so you can create predictability, wealth, and freedom.

If you're in the early stages of your agency, what should you prioritize in order to grow? With so many things to track and so many hats to wear, how do you know what's most important? What deserves your time and attention? As a solopreneur with a startup, building relationships and establishing values for your are crucial for growth. Yet, some owners are not equipped to maintain these parts of the business. So, how can you prioritize these factors when growing your agency?

Today's guest, Christy Pretzinger, understands that solopreneurs are not in a position to oversee relationships consistently. That's why she hires compatible talent to help her develop and sustain team-building programs and workshops. These initiatives cultivate a supportive culture and ensure her team embodies their values. Christy talks about maintaining a positive company culture and explains the importance of relationship building, how she attracts like-minded people and her strategies for maintaining client and employee relationships. 

In this episode, we'll discuss:

• Why it's important to build relationships when seeking opportunities.
• Strategies for maintaining client and employee relationships. 
• Growing an agency during uncertain and challenging economic times.

Christy Pretzinger is the President and CEO of WriterGirl, an agency that helps hospitals and healthcare organizations create patient-friendly website content to grow their brand and strengthen their position in the marketplace. Since 2005, Christy has grown WriterGirl from a freelance writing business into a nationally recognized healthcare content consultancy. She is passionate about building environments where people can thrive and strives to reinvent how we view the work world. As an experienced entrepreneur, Christy shares her experiences with younger agency owners to help them grow.

 

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Sponsors and Resources

E2M 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.

Podcast Takeover!!

Get to know your Smart Agency Guest Host:  John Corcoran is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

Episode transcript:

John Corcoran  0:00  

Hey, I'm John Corcoran taking over for Jason Swenk in this episode of The Smart Agency Masterclass, and I run Rise25 and Rise25. We are an easy button to help businesses get more clients and referrals with done-for-you podcast and content marketing. And for over a decade, we've been helping companies to give to their best relationships and partnerships through a podcast. I also am a longtime podcaster and have done Smart Business Revolution Podcast since about 2010. And I got to know Jason by listening to his podcast, and then we joined his Digital Agency Elite Mastermind, we've attended his events. And we wanted to learn from someone who grew in multimillion dollar operation with over 100 staff and then sold it. So if you are an agency that wants to grow, contact Jason and his team because they can help go to digitalagencyelite.com. But you can also email support@Jasonswenk.com.

And so I was also honored when he asked me to take over the show as a guest host. So check out today's episode with an amazing agency owner. Today we've got Christy Pretzinger, and Christy is the owner and CEO of WriterGirl. It's a fast-growing organization that creates content and provides strategy for hospitals, and healthcare organizations across the United States. Christy went from being a freelancer to an agency owner. So we're going to talk about that journey. And she uncovered her passion for creating an environment where people can thrive writing a book on sharing your experience around doing that, just that. And one of the things that she talks about, and we'll talk about this interview is about viewing culture through the lens of a balance sheet, and helping fellow business owners and others who have a direct impact on the culture.

So Christy, I'm excited to hop into those topics. And first, let's start at your origin story, how you got into the agency world into becoming an agency owner, you'd been a freelancer, and you actually ended up, you knew a woman who a former client of yours, who'd started your company, WriterGirl, and you ended up partnering up with her. So talk a little bit about how that came about.

 

Christy Pretzinger  1:55  

Okay, thanks for having me, I'm happy to talk to you. That's, I guess, an interesting story. She was a client, and she brought me on as a partner, and really kind of to sell, you know, stuff that it was a company at the time that did advertising copy. So it did like headlines and naming and things like that. And a year later, her largest client, she really kind of had one client. And he was indicted and imprisoned actually for tax fraud. So she was expecting a baby and was obviously made her very nervous. And she wanted out. And so I bought her out for a pittance. And basically got the name of the company which is WriterGirl. But I had to pivot pretty quickly because there was no client anymore. And started seeking out more long-form content, because that was the kind of writer that I was. And you know, as the Queen, Oprah says, luck is preparation meeting opportunity. And so what happened is that through a series of events, a hospital group was redoing, they were merging and renaming actually. And they needed three websites done for each one of their three hospitals. And they had to be done pretty much simultaneously, the marketing director of that hospital group had been a former client of mine when I was a freelancer. So she reached out to me and thought that most of the content was done. And I came to find out like a week in that literally nothing was done. And I had like 35 writers on it, you know, within like 20 minutes. And then once we finished that it was a huge learning curve. But fortunately, it was going so quickly, that we could make mistakes, and then fix them without really causing any issue. And so by the end of that, I thought, well, I'll bring teams of writers to hospitals. 

John Corcoran  3:42  

And so it just seemed right? Yeah. Before we get to that, I want to ask you about how you brought in that first big project. You know, was it it was a kind of a case of fake it till you make it, you know, you saw the opportunity? There must have been part of you that was saying, oh my gosh, wow, this is like a massive project for me something bigger than I've ever handled. So, you know, I'm wondering how you set yourself up, for lack of a better term to take on that big project?

Christy Pretzinger  4:14  

Well, I'll talk about I won't talk about the one that made me decide to go into hospitals really was kind of an accident. So I'll talk about how I actually deliberately went out and got one because that's more interesting. And what happened? There were two things. One of them was I went to, I'm in Cincinnati, I went to The Ohio State University and ended up landing their business for a small project, just like a just a brochure at the time. But she was saying they had a whole bunch of work to do. And if we could do this well, but she was warning me that the medical director had an undergrad in English and then, you know, had gone on to get his MD and she said he hates everybody's writing. And when we did this, he made two changes and it was like commas, and she couldn't believe that. And so then she gave us a very large project to do the website content for their heart hospital, and that was probably the time the biggest single project we'd ever had. And I honestly wasn't sure if we could do it that I've thought, well, I done that other hospital project, I did have some writers, I had done some learning. And I knew how to project manage that kind of thing. And I had a really good relationship with the client at Ohio State. And for me, I've always found, especially when I was building the business, that having that really, really working to build that relationship with the client was key to being able to not only produce excellent work, but get the grace if you made a mistake. Because I would always say nobody will work harder than me to find something about you to like, because, you know, clients can be challenging, right and personally, and what I think and there's gotta be, there's gotta be a point, like, I had to work with one of her employees, and this woman was very challenging. But over time, we finally did build a relationship, and then it just made it so much better. So that then you feel like you can, if you make a mistake, you can acknowledge that and they'll give you the grace to fix it. So me relationship building has always been key. But then this was an interesting one to the next really big one. This was when I landed $150,000 from one client, and we'd never ever, ever had that kind of money. It was Indiana University. And I went through I'm a WeBank, a woman-owned business, which has never gotten me anything except this one time. I called the diversity person, who in this instance, was a man, which usually isn't that it was. And for whatever reason, he's like, Okay, I'll connect you with our marketing director, which was like, Oh, wait, why? And he got me on the phone with them. And that hospital system at the time, had to use it or lose it budgetary thing. And they had like foreign $20,000 That was going to go away had been earmarked for something. And it didn't fit in, or I think it had been earmarked. And the work didn't get done in that calendar year, or whatever their year was academic year. And so they said, Can we give you a check for $450,000? And then work it off? And I was like, Well, yes, you can.

John Corcoran  7:06  

That was not a hard Yes.

Christy Pretzinger  7:10  

I can complete again, luck is preparation, meeting opportunity that was just me calling and thinking, Well, why don't we try getting in this way? And

John Corcoran  7:20  

that's great. That's great. How did you make that transition from being a freelancer to managing teams of writers? And all the different challenges that come from moving from one to the other? Can you talk about that?

Christy Pretzinger  7:37  

Yeah, it's interesting. In retrospect, now, I have a few different experience shares, I guess, around that. One of them is that when I became a freelance writer, a long, long, long time ago, I did it because I was a competent writer. I never wanted, I didn't have a passion to be a writer, you know, I was a good writer, I made a good living as a writer. But it wasn't, it wasn't my passion. So when I started building WriterGirl, I wasn't feeling like I had to hold on to being a writer and wasn't like, oh my gosh, this is who I am. This is my talent. So as it started growing, I used to write project manager. And so the first thing I let go of was the writing. Because it wasn't my passion anyway. And I was okay at project managing, I'm really, especially now, I'm not a detail-oriented person, I would really have to really put on that hat and do that. And then sales came more naturally to me, but at that time, as it is for most people building a business as a solopreneur, you know, at that time, you're like, Okay, sell, sell, sell, sell, project, manage product, manage, and, you know, farm out the work to writers, and then oh, crap, there's nothing in the pipeline, sell, sell, sell. You know, I mean, most people know that drill. So that was how I mean, like, a lot of people I was doing that the difference for me was unlike people who maybe are engineers and, and do something in an engineering field, or a doctor or like a dentist or something like that. I'm not the only one with the skill set. So I was able to move out of those roles. And because I had done all the roles, I knew what was required. And I could hire people that were better at it than I had been. And that was really key. I don't think I knew that at the time. But I also never had a lot of ego around that. And I know sometimes that that's again, an experience share that I see, especially with younger businesses where they think well, I'm the one who's the best at that. I'm like, well, that's great if you want to have a job for the rest of your life. And there's nothing wrong with that. I didn't want a job for the rest of my life. So I was always really happy to hire people that were you know, better, faster, stronger than me in whatever capacity that was.

Strategies for Maintaining Client and Employee Relationships

John Corcoran  9:41  

Yeah. Now I know one of your passions now is building maintaining a culture within your company. And you were telling me beforehand that one of the things that you've always believed is if I couldn't build a business based on kindness, I would go back to being a free Freelancer so that was important to you. Was there a point Lean was our breaking point, like sometimes I talk to business owners and they realized that their culture is off. They don't like their own culture. Sometimes they have to fire a bunch of people to change the culture. Was there anything like that? Or what was the realization that culture was really important to you as you built your business?

Christy Pretzinger  10:17  

Well, I think because when I started freelancing, I had left a job because I felt completely unappreciated and taken advantage of, it had been a really good situation for a period of time. And then it just stopped being a good situation. And largely because the woman who had been my boss left, and I think she had shielded me from a lot of things and had promoted me and champion me. And that was wonderful. Then she was gone. And I was like, wow, this is a mess. And I didn't like that at all. And I had had a lot of jobs, I'd moved around a lot before I only worked in the workforce for I don't know, what, seven years before I started freelancing. And so and I think I'd had like four or five different jobs, I stayed about a year and a half the last one I was there for, I think, for years. So I'd seen a lot of different things that workplaces that weren't necessarily that appreciative or kind to their people. So for me, it was always from the outset that I wanted to do that that was a core belief of mine. And I think, again, looking back on it, at the time, I have grown and changed but at the time, because of my own insecurities. I wanted to be everyone's favorite client, meaning all the 1090 nines, the contractors that I would hire, I wanted to be their favorite client. And I wanted to be every client's favorite vendor, I wanted everyone to like me. And so I thought that maybe I guess maybe kindness was a core thing. It's always been a core thing for me. And then once I never had to fire anybody, because of culture until many years later. And that was just a situation we knew was going awry anyway. But really, the people that are drawn to this organization seem to be of like mind. And that has been I don't know what that's about. I don't know what that magic is. Because that's actually been true in most aspects of my life, too. I haven't had a lot of negative people around me, generally speaking.

John Corcoran  12:10  

There isn't, is there anything that you do deliberately in the hiring process, or in your own content marketing, that you put out on your own website that would attract people like that? Yes,

Christy Pretzinger  12:22  

very much. So I mean, I think that there's a lot of people when people look at our website, especially if they're women, because it is a woman in business, and it's called WriterGirl. And they're like, oh, I want to work there, I think it would be fun. And we are very, pretty loud and proud about our values, which are we are empowered, curious, kind and fun. And so we do that in our own content marketing, we talk about that we talked about, we have a program called kindness counts, and we use that the organization to go out and do things in the community, you know, whether it's, you know, volunteer someplace, or go clean up, you know, something that's a mess, things like that. We also do something called moment makers that we do for our clients. So we try and mark a moment for them if they get married, if they have a baby if something happens, and so we do something. And we actually have a file within our SharePoint called moment makers, where we can put all that stuff so everybody can see it, and drawn it and build on it. So all of those things we do talk about quite a bit. And then the people that work for WriterGirl talk about it a lot. And they tend to have their friends want to come work and their friends tend to be project managers and writers or content strategists and things like that. So we get a lot, a lot, a lot of people that way.

Growing an Agency During Uncertain Economic Times

John Corcoran  13:29  

And did you know many companies when COVID hit in 2020 film that they had to make deliberate changes to their culture, because all of a sudden, everyone's dispersed? They're not under the same roof? I don't know if they were before. But did you have to make any deliberate changes in order to maintain that culture that you wanted when COVID hit?

Christy Pretzinger  13:48  

Well, what's interesting is when I was building the business, as I started hiring people, I never wanted an office because I would have to go there. And I didn't want to have to do that. I didn't like that whole environment. And, again, I think I've shared with you, John, that my goal was always to work as little as possible make as much money as possible. So I didn't want anybody to see that I wasn't going to the office. And so I mean, I was hoping that would happen at the time, it didn't you know how it is, when you're building a business, it's like working 24/7. But I was hoping to get to the point where I am now where I don't, don't work as much. So we've been virtual from day one. So we did not miss a beat when COVID hit. And in fact, what we were able to do was help a lot of our clients who you know, largely work in hospitals and healthcare and some agencies that serve you know, like big agencies that are full service agencies that also are clients of ours that serve hospitals and health care and help them figure out how to do that virtually. You know, are there different tools that you use? How do you collaborate? How do you make sure that you still feel like you have a culture going on? And so much of it has been ingrained in us that we never had really pulled it apart before. And looked at it doesn't like well, why does this work? You know what, what is the magic that makes it a an environment where people do truly feel like they can thrive.

John Corcoran  15:03  

Yeah, some companies like Zappos, for example, developed a whole b2b culture consulting division, I interviewed the head of it a bunch of years ago. Were you were you it? Was this something that you just kind of did as, as an add-on without charging for it? Or did you ever think like, you know, we have built a really good culture, we should turn this into its own business initiative?

Why It's Important to Build Relationships When Seeking Opportunities

Christy Pretzinger  15:26  

You know, we never really did. It was just, it was really more ad hoc. And again, it was building those relationships with our clients. I mean, our mission is we build relationships, one word at a time. And then our values are, we're empowered, curious, kind and fun. So that kind of underpins everything that we do. So if we had a client who's like, Oh, my God, I'm working from home, my kids are homeschooling? I'm not really sure. And we were always like, Okay, first of all, just don't worry about it. It's fine. I got kids here, too. It's okay. Let's just make this work. And then they'd be like, Well, how do you? I don't even know how to use Zoom. What is this? Like? You know, so just helping people with things like that? Yeah. Now, with the, with the book that I'm writing and things like that, that's that really, it's not so much about being a revenue generator, fine. If it is, it's really more about having an impact on other business owners, you know, like us, that have a direct impact on culture, probably more smaller business owners, although within an organization, I've never worked in huge fortune 500 companies, but you know, the smaller groups within organizations have their own cultures, right, within a huge organization. So, my mission, personally, is to sort of reinvent the way people look at the world of work by making it someplace where it is literally life, work, balance, not work life balance. Hmm.

John Corcoran  16:38  

I want to ask you also about you niche down and decided that you wanted to work with hospitals. Talk a little bit about that. thought process behind that, and how you did that. And were there bumps along the road. I mean, there's been major health care legislation that has come down in the last 15 years, I don't know if that ever, you know, changed the way that you had to operate.

Christy Pretzinger  17:03  

Well, you know, what's interesting is chaos creates opportunity, right. And if, if nothing else, you can say that healthcare in the US is chaotic. When we started working in healthcare, only trying to think like, even I know, 11 years ago, I think that the Affordable Care Act had just passed a little bit before that. So there were all sorts of things and hospitals, it was really just chaotic. They didn't even know how to price anything. And that was one of the requirements at the time. Because they would just build it all into the, you know, the CAT scan that you had, or whatever, they have no idea how much surgery costs, how much anything costs, I still don't think they do. But that was a general idea of trying to control costs by at first understanding them. So we had a lot of communication, there was a lot of opportunity for communication there. In terms of getting into it. As I said, After that one client hired me, it just I looked around, I was like, there are hospitals everywhere. And they must be doing things like this one is doing like, you know, doing entirely new websites where they have so much content that has to be written, who's going to do that? It just seems like a really, it seems simple, you know, you tell yourself the necessary lie, right? It'll be easy. That'll be easy. And that looking at hospitals, and at the time, strictly content, not even content strategy was like we write words on the page. And the reason I did that was because that's what I understood. I didn't want to try and sell at the time search wasn't even a big deal. But I didn't want to do web development or design or any kind of that because I didn't understand it. And I didn't want to look stupid trying to sell something that I really didn't understand. So we ended up probably inadvertently, narrow, narrowly niching in a way that worked really well it ended up being a very narrow and very deep niche. We've never had any problem having growth numbers within just that narrow niche.

John Corcoran  18:53  

I want to ask you also about you mentioned earlier about the importance of relationships. And you said it's always been about the relationship with the client. But you're at a size now where I'm sure all the relationships don't go through you. So as you as you grew to a larger point, and you had to step away, step back and let others manage those relationships. How did you you know, oversee that process to ensure that other members of the team were building that relationship in the way that you really wanted it to be built.

Christy Pretzinger  19:26  

You know, it's so interesting, because so much of things around culture and relationships is fair. It's very esoteric, isn't it? And it's kind of hard to quantify it, which is exactly what I'm trying to do by looking at culture through the lens of a balance sheet. So one of the things that because first of all, I was bootstrapping it, it grew slowly. So I would still be involved at some level and I could see how someone was working. I did once have a project manager who was working with me and she started behaving very passive-aggressive manner to me. What the time I didn't realize she was treating the client that way. I thought she was just doing that to me. Well, then we went to a client meeting. And I saw how angry the client was with her. And I was like, Oh my gosh. So that was a big learning. For me. It's like, oh, however they treat me is how they're treating the client. So I started sorting for that, and watching the kind of people who would be more interested in a, what's the word, not a transactional relationship, but solicitous relationship and appreciative relationship. And then what because I was still, like I said, I was still involved, at some level for quite a long time, I could observe that and see, you know, what's happening here. And also, another thing that I did very early on is we use the Enneagram as a tool. And even when we were much smaller, we have an Enneagram, coach, who types everyone. And then, when we were much smaller, we had full company groups, when they were like, I don't know, seven or eight of us. And we would have workshops, full day workshops. So we really understood and dove into that. And I don't know if anybody, any of you or the audience are familiar with Enneagram work. But if you have an excellent coach in the Enneagram, it's more about your motivation, and really understanding why someone does what they do. And so when you know that about your coworkers, it, it builds empathy for them. So like when I was still managing more people, like, say, for example, I had an employee who was a three and I had to kind of, I can't remember what I had, it was gonna be a challenging conversation. And so I was able to call the Enneagram coach and go, What should I, okay, this is what I have to do, which I do. And she was able to coach me through and say, Well, remember, as a three, she needs to feel like, she looks good, and that she's winning. And so I could communicate to her in that way. And so we did that a lot. And so there's this core group that has a real solid understanding of that. And we are continuing to build that out, we've grown, you know, we added, I don't know, 15 people all at once we doubled in size, like within a six month period. And those people don't have as much core knowledge about that as the rest of us. But we are actually bringing everyone in town for a retreat, and a big part of that is some Enneagram work to let people know how to use that. Did that answer your question?

John Corcoran  22:10  

Yeah, nothing I want to ask about, which I think is fascinating. I can't tell you how many businesses, I've talked to business owners I've talked to where, you know, they've experienced these big downturns and they're predictable after nine eleven.com, meltdown, 2008, COVID, that sort of thing. And you say that you've actually you actually grew through these time periods. So I'm wondering if you could unpack that a little bit kind of reflect back on you know, the years with WriterGirl and why you think that was the case?

Christy Pretzinger  22:43  

Again, some of it, I'm so not a, well, here's your technique, kind of business owner, I'm much more esoteric than that. So for me, when we grew in, oh, eight and nine, I had a coach say to me, that WriterGirl is you and it won't grow until you do. And so I've very deliberately spent time every day on personal development. For me, some of that was kind of some sort of some spiritual kind of reading. I didn't read a lot of business books, I've never been a big business book reader, I don't, they just don't interest me that much, generally speaking, unless they talk a lot about culture and things like that. So I did a lot of a lot of that kind of work. And that was when we actually hit a million for the first time when I did all this work on myself. So I don't think that's a coincidence. I think that that correlates, especially when you are a sole owner of a business. And I think even if you're a partnership, you know, being able to grow yourself, and recognizing your blind spots, your weaknesses and embracing those, you know, and like I hire for my time I would hire for my weaknesses, I knew that this was not a strength of mine, I'm going to find someone who's got that as a strength. So through it just coincided that spiritual work that happened to coincide with the big Oh, eight, nine, downturn, and our business just grew phenomenally now. I'm trying to think I didn't hire my first salesperson until this is 22. And she's been here 11 years today. So until 11. And that was a big deal. Hiring a salesperson was huge, because that took me out of the day-to-day sales. And I actually hired her and said, go build it

John Corcoran  24:18  

Relate to the relationship piece as well, because the salesperson is building the relationship. And so she was when you hired her 11 years ago, and you have the same salesperson level, you have more but still have her she was 27.

Christy Pretzinger  24:29  

She's 38 She had just gotten married, and now she has five kids still works full time. So I've literally watched her, you know, grow up. And it's, you know, really,

John Corcoran  24:41  

what do you think that relationship work? Well, because again, another one that I've heard a lot from business owners is they go through different sales reps.

Christy Pretzinger  24:48  

Yeah, I've had the same sales rep and the next sales rep has been there, eight or nine years. So, you know, I think part of it is that and I would really love to ask Reba that's Her name this question. But I think what she would say is that I always knew that you had my back. You know, when I hired her, I had just gotten that big $450,000 piece of work from IU, I handed that over to her and paid her commission on it. And she worked it very hard and earned it because I knew from watching some of the businesses, I didn't want to compete with her, I didn't want to be out selling against my salesperson. So everything I did was to set her up for success. And so when I first was hiring people in those roles like that, I tried to do everything I could to, to make sure they were going to win. And she always knew that and saw that. And, and in fact, has said many times, you know, we have we very much appreciate each other that, that she's always felt taken care of, for lack of a better word by me. And she said a lot. You know, we've been through a lot in 11 years, a lot of family things have happened on both sides. And, you know, she's always had a very supportive environment for when these things happen.

John Corcoran  25:57  

I mentioned, I touched on COVID briefly, but can you talk a little bit about how that downturn starting in March 2020 affected your business?

Christy Pretzinger  26:07  

Yeah, when it happened. I told everybody because we were already all virtual. I said that anybody who wants a job with WriterGirl through all of this will have a job. We are not letting anybody go during COVID. There's not gonna be any reductions in staff or anything like that. You said that early on. I said it right away. I said, Yeah, guess what, because because of our model, you know, we work with so many contractors, we could just shrink the contractor pool and bring the work into the people and keep them busy. If we needed to. That did not happen at all. Partially, largely because we worked in health care, and talk about chaos, right? I mean, that was completely chaotic. And they still needed to communicate to people and communicate differently. They might not even more. Yeah, yeah, differently, and more. And so we were able to help meet that need for them.

John Corcoran  26:54  

Yeah. So but you did have to pivot though, to different types of communications. Right. Okay. Yeah. So like, communication. Okay. Okay. And did that feel like, well, we got to do what I gotta do? Or did it feel like, okay, here's what we're gonna, you know, an opportunity for us. I mean, sometimes companies resist thinking, okay, maybe this moment shall pass. But then as it goes on, they realize, oh, you know, we really do need to meet this demand in the marketplace, we can't build that big website project, because they put it on hold, we've got to help with the crisis communications, when we could do that.

Christy Pretzinger  27:26  

Because again, we have, you know, we have 29 or 30 employees. And then we have upwards of 80 to 99 writers that have been trained through the WriterGirl Academy. So they've been, you know, they've been vetted and trained. And we have, like a database of areas of expertise. So some of them might be marketing writer, some of them might be highly skilled medical writers, some of them might have crisis communication and PR experience. So we could pull from that, as well as recruit for that, if we needed it. I think we did a few if I'm recalling correctly, a few kind of crisis management. Like, you know, binder kind of things for people that could then be adapted for whatever crisis they're facing. COVID was the one that let's make it as kind of like, put crisis here. And then these are the things that you have to do. And we were able to do that. And I think we might have leveraged that, and done that for a few different clients at the time and said, Hey, we know how to do this, we can help you do this, because it could talk about their communication plan and the different kinds of things that they needed to do. You know, we've always had a big group of people that we were always willing to pivot and do something new. And again, I never once saw there's someone who's like, well, I don't know if we know how to do that. But the person who does our recruiting is like, Well, we'll find somebody that does, it all figured out and done that, you know, and I'm sure it was during COVID, that we started working with some consultants on various things. And one of the things that they helped us do was guide us through developing an ideal client, and then red, yellow green projects with those clients. And so then that helped us to kind of narrow down so we weren't, again, niching even further, to make sure that we know these are things that we do, we do not do a lot of medical content writing, it's very expensive to find those people. It lowers our margins. It's challenging, because we don't do a lot of it, it's hard to source it. So that becomes a red product project that we probably wouldn't take on unless it was with an ideal client, and they really, really needed it. And then we would do that.

John Corcoran  29:27  

You mentioned WriterGirl Academy, that sounds like not a small endeavor to build that out. Talk a little about what that looked like and why you decided to create that sounds like a training program for your writers.

Christy Pretzinger  29:39  

Yes. And that was many years ago, I kept wanting to do it. And we probably gosh, we probably had six or seven employees. And I kept saying I really want to WriterGirl Academy. And then I realized absolutely no one is scared of me because nobody was doing it. But I also wasn't forcing it to you know, be done. So then the person who is now one of my EVPs of operations, I really want it for Gonna be an employee. And I think she's been here eight or nine years now. And she had contracted with us before, and I reeled her in and didn't have actual work for her. So I said, Here, just go build out this, you know, right URL Academy. And so with absolutely no training or instructional design background, she did. So she didn't even know what a learning management system was. And I forgot to tell her because that is not my strong suit details. And so, but she did, she built it out, and over time, has adapted it and changed it and added to it. And at one point, my intention was to build that up as a separate business. And I did kind of try that. And I wanted to fail fast if it wasn't going to work. And I think it was, I had the idea so many years ago, that if I would have done it, then but I didn't have the time, the money or the resources. By the time I had the time, money and resources, the moment had passed. And it was going to take way more money and a lot more of my time that I was willing to invest. So I did it and was like, nope, not doing that. It was gonna be called wonder writer. And then we just I scrapped that, but we have all the content we developed for that, and brought that into the writer girl Academy. But it's still it's, you know, it's still a challenge to keep it updated. Because unless you have a full time, you know, learning management, I mean, you know, person who's an HR instructional designer, it's challenging to keep that up to date, but we do a fairly good job of it, and everybody does is run through that.

John Corcoran  31:23  

Right, right. And you see that that helps get people prepared to hit the ground running and to do the job. 

Christy Pretzinger  31:29  

Yeah, yeah, a lot of it is training them on the right or go away. And now we'll be training them because we're making a big investment in Salesforce. We've been using Salesforce, but we're vastly upgrading it so that it will be good for the next five years at least. And there's a portal that our 1090 nines can now access, they have not been able to access Salesforce prior to now. So now they will and we're getting rid of all these other things like base camp and you know, harvest time tracking all these different kinds of things. So we'll do a formalized training for them on this. So and that will be part of the academy as well.

John Corcoran  31:59  

Got it. Got it. Well, this has been great. Christy, thanks so much for your time, where can people go to learn more about you connect with you learn more about WriterGirl?

Christy Pretzinger  32:07  

Well, they can find me on LinkedIn. Unfortunately, somehow, again, I've hit my limit in technology, somehow I have two profiles on LinkedIn. And I've never bothered to get rid of the one that's wrong. But the one that has more than 500. You know, connect is me. Feel free to connect with me on LinkedIn. You can also find us at writergirl.com. And you can email me directly. I'm Christy@writergirl. I'm happy to talk with younger businesses that would like experience share. I also do offer coaching. And I'm happy to talk with people about that. And I really, as I said earlier, I think that it is so invaluable when you are a young growing business to find places like you know, Jason Swenk mastermind, like Entrepreneurs’ Organization because they're like-minded people who can help you scale so much more quickly than I did. So I would highly recommend that.

John Corcoran  32:58  

Yeah, absolutely. I second that. Christy, thank you so much for your time.

Christy Pretzinger  33:02  

Thank you, John. Appreciate it.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Looking to improve agency margins and profitability? Which key metrics are important to track? Are you paying yourself a salary? How much cash should you have in reserve? If you’re hoping to sell soon, you shouldn’t underestimate the importance of starting to pay yourself a salary. Potential buyers will pay attention to this and many other details you could start to work on right now. Today’s guest owns a CPA firm focused on helping agency owners scale by getting their finances in order and avoiding the biggest mistakes in agency finances.

Chris Hervochon runs Better Way CPA, a CPA firm that specializes in virtual CFO services for agencies. Over the past eight years, his company has provided services to marketing agencies and nonprofits all over the US. He provides some insight into the key metrics you should be measuring, why you should pay attention to your gross margin, and more.

In this interview, we’ll discuss:

• Avoid the biggest mistake in agency finances.
• How to increase your margins.
• Why you should pay yourself a salary.
• Key metrics to manage agency cash flow.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

The Biggest Mistake in Agency Finances

The biggest and most common mistake Chris sees agency owners make with their finances has to do with cash management. Usually, they fail to understand how cash moves in and out of the agency. Also, how it’ll move into and out of the agency in the future. This is critical because it’s how you can really understand how to grow in the future.

As an owner, you must understand the way cash moves within the agency impacts clients, the work you do for them, and how you collect payments. This impact the people you pay to work for the agency. All of this helps you get a clearer vision of how you’re going to scale and bring in the next client.

Pay Attention to These Key Metrics

• Profitability. When it comes to profitability, you need to be over 15% or 20% to be good. 15% or less is when the alarm starts ringing and you need to pull some levers to figure out what’s going on.
• Net income. If you’re using some sort of accounting software and looking at P&L, net income is your bottom line.
• Gross margin. This varies wildly across agencies because every agency operates so differently. In this particular case, measure yourself against yourself and track that over time. Make sure you’re maintaining or increasing margins over time.
• Cash reserves. Every business should set aside cash reserves to fund growth. They help pay for unexpected costs that occur throughout the year, and they're often kept in your business account.
• Pipeline. Make sure to have a process to measure your pipeline. This bleeds into your forecast and indicates what roles you need to hire, when, as well as who you need to fire and when.

Why You Need to Pay Attention to Gross Margin

Gross margin is your revenue minus variable expenses (cost of sales). This is the percentage of revenue you can keep in order to pay fixed expenses and then pay yourself. In short, the costs you’re going to incur every time you generate a dollar.

If your margins are very low, it's hard to pay for fixed expenses needed to operate the agency and deliver your services. If you don’t have enough money to pay your team, for example, you might start making bad decisions, like cutting staff, expenses, and software. At that point, you don’t even have enough to pay yourself as agency owner, which is definitely a problem.

This is why you need to pay attention to margins and make sure you have enough money every time you generate a dollar of revenue to pay those expenses. In the end, having revenue is good, of course; however, there’s really no point to it if it won’t allow you to pay for your fixed expenses.

What Works for Agencies When it Comes to Increasing Margins?

According to Chris, pricing and how you price will always be the biggest lever you can pull to increase profits. This may be difficult in our current economic times. However, that’s your biggest opportunity to move the needle. How can you increase prices?

1. Build up value so you don’t face pushback from clients when it’s time to raise prices.
2. Have value conversations with your clients.
3. Ensure your sales and pricing functions are split.
4. Be open to flipping some internal capacity to external capacity and bringing in contractors. This can be beneficial and prove to be more cost-efficient than having a full-time employee.
5. Cut unnecessary software costs. Take a look at who’s using what software and get rid of what's not needed.

It's Important to Pay Yourself a Salary as an Agency Owner

Many agency owners don’t realize the importance of paying themselves a salary. They skip the salary to increase profitability. Paying yourself little to no salary just to be at 30% profitability is not an option if you want to sell one day. A prospective buyer will look at agency finances and see margins are good because you’re not paying yourself.

How much should you pay yourself? To determine the average salary of an agency owner in a given area, Chris’ team does a regional compensation study.

They take the owner’s functions in the agency and determine how proficient they are at these tasks. Next, they assign an hourly rate based on the bureau of labor’s existing data. Then add that up and have what the agency owner should pay themselves from payroll. The resulting salary is just low enough to save in taxes while also satisfying the IRS. The rest of the agency owner’s compensation is taken out as a draw or distribution. The amount of that draw depends on how much cash you can take out of the agency

Make sure you have an adequate cash reserve to get you through difficult times and invest in the agency. It’s a balancing act between what the agency owner should be making and planning for taxes.

Average salary for agency owners: For agencies around $1 million, most agency owners Chris has worked with have salaries ranging from $175,000 to $225,000 for an agency operating profitably. For agencies closer to $3 million, the agency owner’s salary doesn't necessarily increase much. It is roughly the same for tax purposes. The draw is where there's an increase and takes total compensation to around $500,000.

How to Project Your Agency’s Future Investments

Usually, investments in your agency’s future are in capacity. This means “people costs” such as equipment, bigger space, etc. The best way to calculate this is by putting together a capacity model and figuring out which roles you need to fill, the amount of work they’ll take on, and how much they’ll cost. Forecast that into the future and see what it does to your cash flow.

From a cash flow standpoint, look ahead to six months. Maybe the results of that tell you that in seven months-time you won’t be able to make payroll. However, knowing now gives you enough time to do course corrections.

How much should you have in cash reserve?

Typically, Chris wants his clients to have between 2-6 months of fixed expenses in cash reserve. Chris conducts a brief study of the clients' plans to spend and invest in order to assess and make a recommendation. Most agency owners land between 3 ½ to 4 ½ months cash reserves needed.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

What do you need to know about selling your agency? Is the market right for a sale or acquisition? What does a successful M&A deal look like? It's actually a good time to sell and there’s no shortage of buyers. If you are prepared and have guidance, an acquisition can be smoother and faster than you think. Today’s guest specializes in mergers and acquisitions in the agency space. In this conversation, she shares how to realistically determine your agency's valuation, two common questions about acquisition deals, and what you can expect when you sell your agency.

Amanda Dixon is the founder and CEO of Barney, an M&A advisory firm for agencies. In her career, Amanda went through a couple of exits as an entrepreneur and describes the experience as atrocious. She saw a need for a company that understands the valuation of digital assets. As a result, she created a firm that has helped over 150 media, marketing, and tech companies through acquisitions.

In this interview, we’ll discuss:

• How long does it take to sell your agency?
• How to realistically determine your agency valuation.
• Answers to 2 common questions about M&A for digital agencies.

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E2M 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.

Selling a Digital Agency In an Unrepresented Market

After growing her own business in the digital space, Amanda decided to sell and started looking for a professional valuation. Unfortunately, she found herself surrounded by people who just didn’t understand new technologies and how to value digital assets. She was selling her own, life-changing agency but felt ignored by the market. Since larger firms were not returning her calls, she went with a broker who didn’t have the experience or sophistication to sell a business the size of hers and the results were not quite what she expected.

Through that experience, Amanda discovered a huge opportunity for a niche firm for this kind of acquisition. Businesses valued <$250 million needing national buyers were severely underrepresented. So seven years ago she started her firm to help guide agency owners going through that same process.

How Long Does It Take to Sell Your Agency?

Selling your agency can be a painful and complicated process. Many times, agency owners get into it not really knowing what to expect. It can drag on for a long time if, for example, the buyer keeps coming back with last-minute changes. In these situations, agency owners may be afraid to pull out of the sale for fear or financial repercussions.

In the height of the pandemic, without in-person meetings, the process took around 90 days. With in-person meetings back, this adds a couple of weeks and sometimes months to the process. Overall, in the worst-case scenario, it is currently taking her team around 5 months to complete a sale.

For Amanda, the most eye-opening discovery working in M&A is that it doesn’t have to drag on forever. For starters, one of the things that delays the process the most is finding the buyers. Since her firm is focused on digital-based business, that part of the process is faster. Approved sellers that work with them are referred to several interested potential buyers. This is good because deal fatigue is a very real thing.

Having a buyer pool interested in your particular industry helps to create a sense of competition. With several potential buyers, you can have more control and ultimately choose the one that makes sense financially and fits your team and your culture.

How to Realistically Determine Your Agency Valuation 

Agency owners are typically very eager to know their agency’s worth. The multiple of EBITDA formula is a good place to start and is what Amanda’s team analyses first.

EBITDA = Earnings Before Interest Tax Depreciation Amoritization

Of course, this doesn't offer a clear picture of the agency’s financial state. For instance, they see many agencies that have grown too fast and have too many team members. In these cases, since their margins may be low, it’s hard to judge financial health with just the multiple of EBITDA. On the other hand, if an agency isn’t staffed enough and are at a breaking point, they may have 50-60% margins which is not scalable.

The next step is determining where the agency falls within Barney's valuation range. They consider factors like client concentration and new client acquisition. Of course, agency owners don’t always agree with the results and believe they’re worth more. However, it is a very efficient formula for determining agency’s value.

Why Agency Owners Need Executing a Profitable Acquisition Process

Many agency owners are caught offguard when someone shows interest in buying their agency. This results in wasting a lot of time and the sale never happening. Amanda strongly believes most agency owners need representation through the acquisition process.

They need the support to ensure the terms of the purchase are clear and negotiated in a way that protects them. For instance, a buyer may say they’ll pay you $10 million for your agency. In reality, they may intend to pay $5 million and the other half is contingent on what happens post-transaction.

Looking for M&A advisory services can also help you find more buyer options. Amanda’s team is often approached after an agency owner has an acquisition offer. They will guide them through that offer, of course. However, it is more advisable to meeting with other potential buyers, just to see what else is out there.

When to Bring an Accountant or Lawyer into the Acquisition Process

To be clear, an accountant should be part of an agency well before you even start thinking about selling. Having clean financials is crucial to getting through the finish line. If your books are a mess, sort that out before starting the acquisition process.

When it comes to an attorney, the point of bringing them in may depend on the size of the agency. Some prefer to bring them in at the LOI phase. However, most don’t choose to do so until they have prepared the purchase documents.

An important rule of thumb is choosing one with experience representing digital agencies. In general, the terms and specifics are different in the digital space. Like, non-competes average 5 years in the agency business. Retaining an attorney with this type of experience will make sure this doesn’t restrict your ability to form another agency in the near future.

2 Common Questions About Digital Agency Mergers & Acquisitions

1. How Do Earnouts Work?  Acquisition advisors love a deal where the owner gets to capitalize on how the agency continues to grow after the transaction. However, earnouts are tricky. The key is that the earnout shouldn’t be tied to rapid growth. In essence, it is intended to be protection for the buyer in the event of catastrophic implosion. But when you're on the seller side, it's not something you can control so make sure you’re happy with however much you get at the closing table.
2. Are Agency Rollups a Good Idea? In theory, doing a roll-up is a great idea. Unfortunately, most of the time integration is much harder than people think. Buyers want integrated agencies to become a well-oiled machine with systematized processes. It is possible, however, merging multiple agencies doesn’t increase their value unless you prove cross-selling services to a unified client base. Until you’ve done that and have historical churn numbers on your clients, a rollup doesn’t provide a lot of value.

Why You Shouldn’t Feel Pressured to Sell

Many agency owners may have concerns about what’s happening with the current economy. However, Amanda says the agency space is seeing strong interest from buyers. There are still many more buyers than sellers in agency M&A.

The market isn’t going anywhere so you shouldn’t be pressured to sell. And if you do want to sell, it is not a situation where you won’t find buyers because of the economy. This industry is only growing, so no matter where you are in the process, you’re in a great place.

Do You Want to Transform Your Agency from a Liability to an Asset?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Would you like to increase agency lead generation and have so many prospects you get to pick and choose who you want to work with? Finding the right lead gen strategy is an important part of your agency’s growth. Today’s guest has found a simple framework that worked for him as well as many of his clients. By just fine-tuning 3 aspects of most lead generation strategies, you could be quadrupling leads in just one month.

Dave Valentine is the owner and founder of Avadel Agency, an outsourced sales & development rep agency that helps clients fill their sales pipelines and book meetings. He owns eight businesses and tested the success of his lead generation framework in several different industries. Today he shares how going back to the basics can help you quadruple your leads and unlock a new level of growth.

In this episode, we’ll discuss:

• Why a quality case study should be kept short and to the point.
• How an outrageous offer can help you get your agency to seven figures.
• Inventive ways to use old tools that are regarded as outdated.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease of their process and their large pool of crowd-sourced writers.

 

 

Dave is an entrepreneur who started his first agency at the age of 25. Looking back, he has made some common mistakes, like making his agency a catch-all and trying to be everything for everyone. In spite of this, he built the agency over 7-figures. However, relied too heavily on him and clients expected Dave to be involved in everything.

In the end, this led him to sell his former agency and start Avadel. Now, growth comes not from relying on one person but from how they generate leads.

3 Things To Increase Agency Lead Generation in 30 Days

According to Dave, increasing your agency’s lead generation in record time will require just three key elements:

1. Quality case studies. Most people think a quality case study needs to fill two pages or more to get client’s attention.  Dave believes all you need is a sentence that follows this formula: We work with X company and got Y results in Z time. Additionally, if "Z time" is 90 days or less, it is incredibly compelling. When you put that in an email or an advertisement piece, it will get people’s attention.
2. Outrageous offers. Dave credits this element with helping him get six of his businesses to seven figures. An outrageous offer is something that sounds too good to be true. Actually, it is a way to increase your profits and book more meetings. More meetings give you an opportunity to assess clients so you can pick and choose the ones you want to work with. It’s really about understanding what your deliverables are and how good your team is.
3. Cold emails with creative follow-up. 86% of the meeting booking they do at Dave’s agency come through cold emails. This statistic surprises most people because we all tend to shut down this kind of outreach. We get hundreds of emails every day from people trying to sell us something, so how do you cut through the noise? Dave recommends those emails be short and to the point. “Two to three sentences is the sweet spot,” he says. Also, look to create human connections. Let it come across that they’re dealing with a person, not a bot. Lastly, he uses creative direct mail follow-up, like a piñata with a QR code that sends them to a calendar to book a call.

Dave has found a lot of success in taking these strategies seen as old and outdated and leveraging them to generate new business.

Why You Need an Outrageous Offer to Attract Leads

The "outrageous offer" is a bold move that can bring great results for your agency. It’s always a great way to stand out and put pressure on the competition. Of course, you have to be careful in how you word it. Don’t promise something you can’t deliver. A good way to ensure you’re not over-promising is putting conditions around the offer.

For example, if you're a web design agency, you can guarantee you’ll have a client’s website ready to launch in 12 weeks. The condition is they get you all the information required within the indicated timeline. It’s a way to hold clients accountable for their outcomes.

This doesn't work for every type of agency and sometimes you have to take some risks.

When creating an outrageous offer for a flight school, Dave and his team offered a test flight at $49.99. Most flight schools make a similar offer at a much higher price point of $300, because it covers gas and the pilot’s time. Their outrageous offer meant losing some money. They trusted the process and as a result, saw a 4x increase in lead generation with the same ad spend. And, their close rate stayed about the same! In the end, they soaked up all the leads their competitors were getting.

Over the years, Avadel has successfully repeated this strategy for different industries.

Gaining the Client’s Trust so They’ll go All in on the Bold Strategy

Increasing lead generation isn't just about the agency. It’s also about creating opportunities for clients to engage with you. Right off the bat, Avadel does this by acknowledging when a client books a meeting. When a meeting is booked, the prospect receives a video from Dave talking about the challenges that probably led them to his agency and thanking them for taking that step. It’s a simple thing that clients find really helpful.

In every sales conversation, they try to anticipate the client’s objections and proactively address them. They acknowledge some of the most common concerns and offer a money-back guarantee. This way, the client can move forward and go all in on Dave’s strategy with ease.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Is your digital agency too reliant on you? Are you always putting out fires and answering questions? Is your team empowered to succeed without you? It's all about being intentional with how you spend your time and creating the processes to support your role as agency CEO. In this episode, a time and profit expert shares ways you can stop being the superhero at your agency and instead be the super visionary.

Mike Michalowitz is an author and entrepreneur who focuses mostly on researching ways to make businesses run more efficiently. In this research, he noticed most businesses starve for profitability and very few achieve it. He's been on the podcast twice before chatting about his books: Profit First and Clockwork. His book and framework, Profit First, has changed the way many small businesses approaches profitability. One of his other best sellers is Clockwork, where he disrupts the "hustle harder" mindset. He's sharing how agency owners can reinvent their role in the agency to work less and still do the things they love.

In this episode, we’ll cover:

• Why you should strive to be the super visionary instead of the superhero.
• How a four-week vacation can help you ultimately exit operations.
• How to start empowering your team.
• Do you know the most important function at your agency?

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

Why Your Superhero Syndrome Is Your Agency's Bottleneck

Agency owners are commonly the bottleneck at their agency. The processes make it so everything has to go through them. It’s not efficient at all, causes a clog in project completion, and exhaustion for the agency owner. Michael calls this the Superhero Syndrome.

Many agency owners believe they are the best at everything and can fix everything. They are the agency’s superheroes. However, having a superhero fix everything ultimately weakens the police department. This is what happens to agency teams. They can become too dependent on the owner always solving issues. According to Michael, instead of being the superhero, agency owners should strive to be super visionary.

What the agency really needs is for the owner to have a clear vision of where the agency is going and then drive the team to get there.

How to Set Yourself Up as the Super Visionary

Part of having the clarity to become a super visionary is empowering your team to follow your vision, as opposed to you making the decisions. Michael believes the easiest way to position yourself as the visionary starts with one word: shareholder.

The term entrepreneur has become overused. It used to me "someone who had an idea then took the risk of organizing a team and resources to pursue it." Now, it’s become “someone who works like an animal.”

On the other hand, a shareholder is someone who receives earnings and never says “I need to go to the company to solve something.”

As an agency owner, you’ve taken on an extraordinary risk the only shareholder. Only about 15% of the population ever takes this risk and 3% manage to do it successfully. Sure, in the beginning, you’re the only resource and work a ton. However, you should exit operations as soon as possible.

As a shareholder, you should create jobs. By doing the work yourself you’re stealing the job from people who want and need it. Michael believes viewing yourself as a shareholder, you'll have a better understanding of your role as someone who takes care of strategic planning, vision, and creating jobs.

It’s important to remember you have the right to reinsert yourself into work in a way that gives you joy. If you love sales, then find a way to assist in sales without it being fully dependent upon you. That’s perfectly valid; just make sure the agency can run without you.

Creating an Agency that Runs Without You 

How can you prepare your team for your ultimate exit from operations? Michael recommends the “four-week vacation” in which you spend four consecutive weeks away from the agency with no physical or online connection.

Why four weeks? He looked at how much time goes by before a business starts repeating cycles. Across all industries, it is monthly. Therefore if an owner is able to be away for 4 weeks, then they can be absent forever.

The challenge for any agency owner who wants to exit operations is to book a four-week vacation at least two years from now. If that gives you too much anxiety, it’s probably an indicator that you have a problem. In the end, this test is more about the agency having a vacation from you than you getting a vacation from it.

People tend to think working on the business instead of in it is something that happens after you work hard enough. It’s actually the result of a lot of intentional planning and preparation. That day may never come if you don't plan for it.

Extending the Four-Week Vacation on All Levels

After his four-week vacation and making sure everything ran well without him. Michael’s team approached him to talk about a new problem. The agency worked well in his absence, which was great. However, his tasks had fallen on other people and now the rest of the team was too dependent on those in charge.

The answer Michael came up with was repeating the formula. Everyone would take a four-week vacation. Not at the same time, of course, and planned a year in advance as he had done. This way, everyone has to prepare processes and backups to cover while they are on vacation. As a result there’s always a backup -- not only for vacations but also when someone leaves.

Life happens and this method means the agency doesn’t suffer as a result. He looks at it as an intentional fire drill to ensure a smooth transition in case something does happen.

2 Steps to Empower Your Team 

1. Move to a delegating leadership style. The deciding style is when you’re in control of all the decision-making. For instance, you explain a task to an employee and answer their questions when they come back with doubts. On the contrary, a delegating style is all about the outcome and empowering employees to determine how to get the end result.
2. Capturing processes. SOPs are relevant but are usually stale and hard to execute because it’s a lot of information. As soon as an employee is assigned a new task, they should record training of the work. If they can teach it, they've mastered it. Furthermore, each new person can record new things added to the process. Should anyone leave, the new person assigned to that task can go back to previous recordings and learn.

What's the Most Important Function at Your Agency?

The QBR or Queen Bee Role concept is about looking at what nature does and translating that to business. In a beehive, the most important function is the production of eggs. Everything else is secondary because the survival of the hive depends on it.

In any business, there is one single most important activity. However, some agency owners may not know what it is. Michael teaches clients how to identify principal activity so it is prioritized and protected at all times. Most small businesses tend to think everything is important and never see exceptional progress. It's especially important your agency team understand that important activity and their role in elevating it.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Would you like your agency to be more profitable? Have you analyzed which of your clients are profitable and which engagements are losing money? You may feel you're doing everything right but still aren't profitable. However, it could be just a case of learning how to assess each client's profitability and raising prices on legacy clients. Today’s guest shares ways you can learn about agency profitability and increase your profit margin.

Russell Benaroya is the owner of Stride Services, a digital agency that provides outsourcing, bookkeeping, accounting, and CFO services for digital agencies. They provide timely, accurate, and actionable data so business owners can make decisions based on hard facts. In this episode, he shares some steps to assess whether a client is profitable, why you should look at your service as a product, and much more.

In this interview, we’ll cover:

• How to make smart, profitable decisions to grow your agency.
• 3 Questions to determine why an account is not profitable.
• 2 Steps to evaluate if a client is profitable.
• Raising prices for legacy clients.

Sponsors and Resources

E2M 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.

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How to Smart, Profitable Decisions About Prospective Clients

For Russell, the agency space is at an interesting point where agency owners are starting to learn more about the type(s) of clients they serve. It’s important they understand each engagement and the level of profitability it brings to the agency. It is a moment of opportunity and transition where agency owners must be informed and armed to make smart decisions.

How can you make smart decisions for your agency's profitability?

Financial information isn’t particularly telling for many agency owners. It doesn’t tell them anything about how to act around a particular engagement. Russell believes you have to keep peeling back the layers to get to the information that really matters. Basically, you need data on how much revenue you’re making for a client but also what costs, time, and direct expenses are you putting into the client?

With this information, you can assess whether or not they are profitable for the agency. If the answer is no, then why and what can be done about it? This investigation leads to taking action at the client level.

2 Steps to Assess a Client’s Profitability

Russell’s agency uses these two techniques to help agencies that need to assess whether or not a client is profitable:

1. Viewing financial and time data in one place. Let’s say you’re using Harvest for time tracking and have some direct expenses sitting on Quickbooks online. Russell and his team bring that into a unified environment and quantify the value of the time put into an account. Once they put that information together, it becomes easier to see the client or engagement's profitability.
2. Understanding the shadow bill rate. This is especially relevant for agencies on retainer-based agreements or monthly recurring revenue (MRR) subscriptions. The shadow bill rate is a fairly easy calculation that takes into account the monthly recurring revenue and what you would be billing if you charged hourly a rate equal to the resources needed for that client. That ratio is what Russell calls the “win for all” and it’s an indication of whether or not your MRR is sufficient for a level of profitability.

3 Important Questions to Measure Agency Profitability

If you had to track just one metric in an agency, Russell recommends it’s the golden metric: the “win for all” ratio. He feels it is the single most important metric that forces you to ask yourself:

1. Did we price this client incorrectly?
2. Do we have process issues affecting our efficiency?
3. Are there issues on the client side keeping us from being effective?

This is the biggest driver for assessing profitability and becoming self-aware of what's standing in the way.

How to Increase Prices to Legacy Clients

There are many reasons your "win for all" ratio may be low; pricing is just one of them. If that is the case, it’s time to ask yourself how many clients you have on legacy pricing. It’s common for agencies to have more than a few clients at almost half under current prices. There’s a huge opportunity cost there.

As humans, we avoid conflict which makes it hard to increase prices. Instead, most people start to over-service clients to make sure they’re very happy and then increase prices. However, this is not the right way to go about it and involves spending more resources on that client.

Russell says agency owners need to have a “state of the relationship" discussion. This allows the opportunity to understand how the client views the work and then explain it’s time to increase prices.

What’s the best way to approach a client and make the account profitable?

It is particularly hard to support a client who is out of scope if you don’t have the data. Once you start the conversation, clarify there’s a difference between what you originally agreed upon and what you're doing now. That means you’re operating out of scope. Going forward, try to look at your agency services as a product... And a product has standards. When you articulate those standards and the tasks associated to create that product it will be easier to evaluate if your actions are within the scope of that product or not. It’s an objective way to be unemotional about the work.

Measuring Profit Margin of a Healthy Digital Agency

If you’re an agency owner interested in measuring your clients’ profitability, you can start by measuring the gross margin. Gross margin is revenue minus direct costs associated with serving that customer. Typically, you want gross margin to be between 50% and 55%.

If you’re in an investment year that number is lower. However, growth investments are very important for the future of your agency,  so keep that in mind before freaking out over your income statement. It is a variable that is dependent upon if and when you want to sell your agency.

One mistake Russell sees agency owners make is not taking a good salary for themselves in order to increase their margin. This isn't a good idea and becomes just an artificial achievement.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Happy clients grow your business. So what is the secret to happier clients? Is your agency making a good first impression? Building a rapport with them on a human level? How are your setting your agency apart from the competition?  We talked to one agency owner who always prefers to go for a true connection by building the relationship first. When it comes to employees and clients, he prefers creating genuine bonds that lead to a better agency and an overall better work environment.

Tom Jauncey is the owner of UK-based agency Nautilus Marketing, a full-service digital agency specializing in WordPress and Wix. His agency works with clients on SEO and social media strategies to deliver a wide range of digital solutions on a worldwide scale. In the journey to growing his agency, Tom has relied on the value of human connection for his team, clients, and partners. Today he'll share how he makes a good impression on the first call with a client and what he has learned about hiring for culture.

In this interview, we’ll discuss:

• Why the first call is about the client.
• Building a rapport with clients to gain trust.
• How to make a good first impression.
• Forming a team and building a sense of culture.

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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Why the First Call Should Be All About the Client

As another accidental agency owner, starting an agency was never part of Tom’s plan. He went to drama school and had been on TV shows and movies. He started working in content creation as a freelancer while going on casting calls. He did social media for a couple of small and medium businesses. With time, clients kept asking if he could also do graphic design and other agency work. He found freelancers to help him with those new tasks and over time built an agency with a team of 17.

Tom doesn’t see himself fitting in with the typical agency model. He loves to surround himself with “fellow nerds” and prefers to get to know clients well. In fact, prospective clients typically say they are different than other agencies in the UK. He describes himself as a people person and hates agencies that see their clients as cash cows.

Client onboarding a client at his agency starts by asking them about their problems. What are they worried about? What do they think they need? Most agencies follow a set process for each client on the first call. However, at his agency, the first call is more about building a rapport with the client. According to Tom, if you have a good strategy ready but don’t work on having a good rapport with your client, you’re setting yourself up for failure.

The first call with your client is all about them. One good way to ensure you’ll have a meaningful conversation is to send a video clearing up the most common questions before the call. This way, you’re getting that out of the way and can focus on getting to know them.

Making a Good First Impression and Starting Off a Positive Relationship

For Tom, focusing on the human connection is the key to standing out among so competitor agencies that treat all clients the same. Another important differentiator is the follow-up. After every call, he likes to set aside a few minutes to prepare the proposal. This way, not even twenty minutes after the call the client gets an email linking to the proposal. Clients appreciate having this level of dedication and it’s a good way to kick off things.

Bad first impressions. On the opposite end of the spectrum, a bad first impression is trying to sell something without first building a rapport. Maybe you’ve received the kind of LinkedIn message where someone goes straight into sales mode claiming you’re in the same industry. It’s not a good look and an awful way to make a first impression. This type of tactic tends to be a massive turn-off. It has made many move off LinkedIn because they feel constantly bombarded with sales pitches. By starting a conversation and building a relationship where you’re not immediately asking someone to buy something you’re much more likely to get them on your side.

Going Beyond Skill When Hiring Your Agency Team

In the five years since he started the agency, Tom has really learned to value his team. He believes in hiring people smarter than him because it has been key to his agency’s success. Having the right people in the right seats means less micromanaging. He trusts after he makes the sale, his team will deliver exactly what the client expects. It also means someone has his back when the client is asking for something outside of his expertise. Having a reliable team has been the most important piece in scaling his agency to where it is now.

How he finds the right people. At first, he just started hiring people who had the skills needed. There was no real criteria beyond ability at that point. However, as the team began forming the people who didn’t fit in stuck out, whether not agreeing with their ethos or not getting along with other team members.

As they started to need additional team members, he refined the hiring process. While years ago it might have been just about doing the work, now he likes finding out more about the person. What did they enjoy? Did they like to learn? This has helped him get a better sense of whether a candidate or a potential client will work well with his agency.

Knowing and defining your culture helps you stop being a yes-man. It prevents red flags when bringing in new hires and new clients.

Why You Shouldn’t Underestimate the Value of Strategic Partners

In order to maintain a pipeline, you need three different lead generation channels: inbound, outbound, and partnerships.

Don’t underestimate the value of having strategic partners. Building relationships is a great way to scale, especially when you’re starting out. Tom has a few referral partners he calls whenever his agency is not able to take on a client.

His agency is also a Google partner and Wix partner, who also provide leads as part of their agreement. Tom’s message for agency owners who are just starting out or looking to grow is to go for those connections that can prove to be very valuable.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Does your agency align with a purpose or cause? Are you hiring diversly to bring in different viewpoints? Today’s guest has a lot of experience working with non-profits, which is how she's become an expert on purpose-driven marketing and recruiting, as well as avoiding natural bias in business. She shares some of the ways she implemented purposeful branding and diverse hiring in her agency to bring positive changes and grow her agency.

Lyn Wineman is a marketing veteran with over 30 years of experience with award-winning work. Her agency Kid Glov has been recognized as one of the best places to work in Lincoln, Nebraska. They are a marketing, branding, and advertising boutique agency with about 25 employees that helps clients create exceptional brand experiences. Their name goes back to taking great care of their clients, their brands, and the people within their culture.

In this interview, we'll discuss:

• Where to start and how to execute a rebrand.
• Removing bias and diversifying your team.
• Taking on clients that align with your agency.

Sponsors and Resources

E2M 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.

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

How to Rebrand and Get More Attention for Your Brand

In 12 years, Lyn’s agency has helped over 100 non-profits with their brand messaging and strategy. In some cases, this entails tightening up their tagline and message, while in others it goes all the way to their logo and name. Overall, non-profits with great branding tend to do better, get more recognition, and are generally easier to find.

When it comes to rebranding your business, Lyn reminds clients that no one will ever create something that is universally loved. “It’s better to be the pistachio-flavored ice cream than the vanilla ice cream that no one loves”. You can accomplish more with something a small percentage likes than something 100% of people are willing to ignore.

Where to Start When Doing a Rebrand for Your Client or Your Agency

Since they work with non-profits, Lyn and her team knew their process needs to be focused and affordable. They start with a discovery session with key leaders of the non-profit. There, they talk about what makes their brand and where they see themselves in the future. This is followed by an online survey and a competitive review. Finally, they do a brand archetype profile and create a brand strategy and positioning statement.

Next they strategize the launch plan including who they need to talk to and how. To this end, they help clients plan meetings, presentations, and parties to present this new identity to their employees, the board, top donors, partners, and finally the public. They also help with their website and anything else to ensure their name and new image are well received.

Because the process of rebranding many times includes a new name for the organization, Lyn warns clients they will get comments about how it was unnecessary to do this. People are usually comfortable with the familiar and react negatively to change. However, changes to their client’s image and branding are done as the result of a lot of studies. It’s all about thinking outside of the box and garnering attention.

How Purpose and Implied Bias Play a Role in Branding

Data shows that >70% of people nowadays want to align with brands making a positive impact in the world. This percentage is even higher when it comes to younger generations who want to work with brands that make a difference. Lyn’s agency has always had a strong focus on non-profit. With these new trends, they’re getting more and more companies come to them to create purpose-driven messaging and social impact campaigns.

Part of the challenge creating a campaign is identifying implicit biases in a message. We all have biases we may not even notice. In these cases, the first step is awareness. It requires willingness to look within and identify some of their own biases as an agency as well as the customers’ biases.

Often these beliefs are not rooted in bad faith and are just the result of our surroundings. Making an effort to improve this is not just the right thing to do. Data shows how increasing diversity and inclusion in advertising translates to more conversion and sales. It is an excellent way to build trust and relationships with your clients.

Opening the Door to Speaking to Different Audiences

Seeing the growing interest in purpose-driven marketing, Lyn’s team now receives bias training. They also include a questionnaire as part of their onboarding to open the door to bias discussions. As for their internal operations, they have started focusing on what they can do to give back as part of their discovery process. This simple question helps identify potential causes to aligned with.

Almost every single member of her team felt they didn’t have an implicit bias, which is how people usually feel. Going through the bias training helped them realize we all have biases. Being aware of this helps open the door to positive change.

In marketing, we’re all taught to zero in on our primary audience and speak mainly to them. Bias training has helped Lyn and her team ask themselves how they can think about the audience differently and ensure they’re not just zeroing in on a 1-person audience. Instead, they focus on opening up and accepting that audiences are changing and whoever your buyer persona is today may not be so in the future.

Removing Bias and Diversifying Your Team

All this talk about biases and implementing diversity into your work with clients is meaningless unless you also make it part of your agency. Diversity in among your team leads to different points of view and often to better work. We all have different learned experiences we bring to every situation. A diverse team will certainly give you different results which is good for your agency.

For Lyn, it hasn’t been easy to achieve, but it starts with the hiring process. They changed their job descriptions and set new interviewing and hiring policies to help open these doors. For instance, instead of requiring a specific level of experience they now offer a training runway to bring in people without the experience but are otherwise a good fit. Furthermore, they’re creating an agency advisory panel with members of different cultural competencies.

Taking On Causes That Align With Your Agency Values

When you take on a cause, ask yourself is this in line with our agency's values? Do we have something of value to add to the conversation? Will most of our clients be in agreement?

Of course, not all clients will be passionate about the same causes. However, if you’re attracting clients that are a good fit for your agency, most of them will be supportive of the cause you choose.

Three Pillars to Cultural Success

Lyn’s agency has lost just one employee over the last year. It is quite the accomplishment in the midst of “the great resignation”. It has a lot to do with how she takes care of her agency employees as her primary job. Their "Creative Nirvana Project” is focused on creating the best environment for doing creative and strategic work.

The project started with three sessions for her creative team.

• Session 1: In the zone - is focused on questions like “what does it feel like when things are great and feels like you can’t fail?” They then analyze how that situation looks for each employee.
• Session 2: Bummer - is not as positive but equally important. Here they ask the team to describe what it looks like when things suck. They focus on what makes a situation not great.
• Session 3, The path - the last session focused on drawing a path asking "how do we get from where we are to where we need to be?" And "what are some quick wins and big things we can do?"

It is like such a simple principle, yet it has helped them get great feedback and be on the list of the best places to work in their state. Moving forward, they realize creative Nirvana needs to be a pillar of the whole agency and include all teams (not just creative).

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you have an agency business partner? Are you considering bringing on a partner? Or experiencing challenges with your partner? Many people are afraid to start an agency with a partner because they think it will end badly. And it's true, striking the right balance with a partner is no easy feat. However, finding a partner that compensates for your shortcomings makes it all worthwhile. Today’s guests have had a successful agency partnership for over a decade. As expected, they have faced challenges along the way and found success by inserting their own style into their agency formula.

Alexis Krisay and Melissa DiGianfilippo are the owners and partners of Serendipit Consulting, a full-service marketing and creative agency in Phoenix, Arizona. They’ve been partners at their digital agency for almost 15 years. It seems like a long time to work alongside a co-owner. However, with backgrounds in PR and marketing, they found they complement each other very well over the years. Recently, they started a podcast together called Will it Stick that covers bold marketing campaigns and PR stunts.

In this interview, we’ll discuss:

• The secret to a successful agency partnership.
• Why key differences can lead to synchrony.
• How a mastermind can help you get intentional about your business.

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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The Learning Curve After Starting a Digital Agency

Alexis grew up being familiar with the agency world. Her father owned a digital effects agency in LA and she visited the studio all the time. She loved the relaxed and fun environment and aspired to create something as cool. However, she never actually thought she would have an agency. She met Melissa working together for a real estate developer. That’s when they discovered they made a really good team and thought it would be cool to have a project together. After securing a few freelance clients, they knew it was time to leave their jobs and officially start their agency.

There was a learning curve, of course. They charged their first client $8,000, which seemed like a pretty good deal at the time. However, they quickly learned to take the project scope into account. They were doing everything for this client and the amount of travel warranted a much higher price.

The Secret to a Successful Agency Partnership

As Jason says, when it comes to partnerships, “you either know the bad partner or you are the bad partner”. That’s not necessarily the case here. Sometimes a partnership lasts a couple of years and then one partner gets bored with the business and wants to do something else. Maybe the agency outgrows one of the partners and they are no longer relevant. Working with agency owners from all over the world Jason has known many successful partnerships. How do some agency owners make it work?

Alexis and Melissa have encountered challenges, of course, but their partnership has continued to work. Most of all, they credit the immense respect they have for each other. They respect each other’s passions, opinions, and expertise and work hard to each stay in their separate lanes. According to them, this respect makes it so they’re not afraid to “fight productively”. These arguments are productive because leave the conversation with a full agreement on both sides. There’s no “I told you so” when you reach a compromise.

This synchrony certainly didn’t happen overnight, but with practice they’ve come to know each other really well. What works especially well for them is they each compensate for the other one’s shortcomings. Each has her own area of expertise and respects the other. If a situation requires one of them to cover for the other, they’ll of course do it. However, when in doubt, it’s better to pause and say “this is my partner's expertise. I better call her to be sure”.

Aligning Goals in Agency Business and in Life 

Making sure your goals for the agency align is one thing, but your overall goals must also align. If you and your partner are at different points in life then you might want different things from the business. If one of the partners is much older, then they may be looking at exiting sooner. However, there is room for some differences to improve the relationship. If you look at each of their profiles, Alexis and Melissa are very different from one another.

This works really well for the agency because one of them is the visionary while the other is the planner. Why does this matter? In the end, your partnership affects far more than just the agency. It affects your entire life, so make sure to enter that “business marriage” with someone that complements you.

Get Intentional About Your Agency With the Help of a Mastermind

About five years into the business, Alexis and Melissa joined an entrepreneurial organization. Joining this group helped them get intentional about building their business. Up to that point, they treated the agency as a way to work while taking care of their families.

Getting to the million-dollar mark helped them realize they had the resources and employees to do something really special. The organization helped them get serious about treating the agency like a real business instead of a hobby or lifestyle choice. With this new perspective, they focused on growing and scaling the agency.

Once they got clear about their goals, the agency started growing fast. In fact, they reached $2 million in just two years. With the help of advisors, they were exposed to different proven systems like EOS. In the end, they adopted a mismatch of different systems and found a formula that worked for them.

Finding their own version of a system was part of their journey to define themselves as a unique agency that doesn’t necessarily work as any other agency out there. Alexis and Melissa don’t want to be like the agencies they worked for in the past. They find that trying to do things the traditional agency way leads to stagnation. On the other hand, going back and following their own path has led to success.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Have you ever asked your team what they don't want to do anymore? What would your employees eliminate, if they could? One agency owner started asking these important questions and unlocked rapid growth by implementing their ideas and truly innovating processes. For his agency, niching down and adopting innovation as an agency value made all the difference. He discusses how he implemented those changes and the 5 big questions you need to ask your team.

Josh Webber is the co-founder of Big Red Jelly, an agency focused on digital branding, web design, and development. His team helps businesses focus on all the steps a business should complete before working on advertising and marketing.

Although his agency is five years old, Josh has been in the agency world since graduating college, working at several agencies around the country. As is often the case, his agency started as a full-service digital marketing agency. The decision to niche down came after the pandemic. This marked a point where his team started to focus on what they did best: branding. The decision led to exponential growth for his agency. He now shares how focusing on innovation and making the jump to niche down changed everything.

In this interview, we’ll discuss:

• How to make innovation a top value at your agency.
• Why innovation can also mean simplifying processes.
• How to get a fresh perspective to bring new ideas.

Sponsors and Resources

E2M 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.

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Overcoming Hard Times By Niching Down

For Josh's agency, the two years leading up to the pandemic were years of slow and organic growth. Once Covid hit, more than a third of their clients had to close shop and were unable to pay invoices. It seemed as good a time as any to do something they’ve been discussing for a while and niche down. Josh had been listening to several experts talk about the importance of niching down and owning your niche. Ultimately, they pulled the trigger and it was the best decision they have ever made. In fact, their finances started to improve almost immediately.

If anything, Josh only regrets waiting so long to do it. Luckily, he was able to turn the regret into creating a culture of innovation within the agency. Innovation is probably at the heart of most agencies' mission and vision. What’s actually hard is clearly defining it with actions.

There is a gap between how many agencies place innovation as one of their top values and how it’s actually one of the lowest when it comes to seeing this investment take place. Most agency owners want to be innovative but fail at “how”.

How Can You Find and Implement Innovation Within Your Agency?

In the agency world, you’re either moving forward or going backward. What can you do to make sure you’re always moving forward? Josh and his team organized a vision meeting where they defined innovation for their agency.  They started by “abolishing” some terms like “that’s just the way it is” and “this is how it’s always been”. By doing this, they started recreating their culture.

The concept of innovation in the agency space is usually attached to creative roles, which is a mistake. Anyone can innovate and it’s the youngest people on the team who usually bring a completely unique perspective. So, step one for Josh's team was deciding that innovation would be a huge part of the agency moving forward. Secondly, they focused on meetings, processes, and implementing tactics to ensure this.

Making huge changes in the agency is never easy and some team members may not be on board. In Josh’s case, about 30% of the team weren't accepting of the changes. It was his opportunity to see who was willing to be part of an agency transformation. There will always be people who don’t like change. However, in the digital marketing space you have to be innovating and changing or you will be left behind.

5 Questions to Kickoff Innovation in Your Agency

After defining innovation and bringing ideas to implement it, the team next focused on what they could remove from their processes. The idea was to get employees talking about things they were tired of doing and it was a big success. You can become so inflated with processes and SOPs the question “what can we remove?” brings a lot of suggestions. This helped Josh see innovation doesn’t have to be adding more and more. It can also be about removing what no longer serves a purpose for the agency.

In advance of the meeting, Josh sent his team some questions to get them thinking about what should be eliminated:

1. What would you like to do more of?
2. What would you like to do less of?
3. Is there something that has always confused you?
4. Is there something that you have always disagreed with?
5. What do you think could be removed that would lead to better results?

The exercise led to a lot of ideas which, Josh admits, were spot on. It can be hard to hear because some of the things your team wants to eliminate might be things you put into place. But that is what innovation is all about -- change and growth.

Next, they focused on questions about the leadership and the founders. Does X do something that distracts you? You’ll need to have thick skin to listen to what your team has to say, but it’s a great exercise.

How Masterminds Can Help Get a Fresh Perspective on Your Agency

Those meetings were such a success they turned into an annual event for his agency. Every year they organized meetings to tackle: how can we renew? What can we change? What can we add? And the second half focuses on what they can remove and simplify. The big takeaway has been simplicity. These meetings have helped his agency build its culture of innovation and allow its team to bring their own perspective.

More recently, they are focused on the importance of getting external motivation outside of the agency. It’s about maybe finding a peer group or mastermind and learning from someone with a new perspective. Oftentimes, it’s the agency owner who gets to experience these things, but they are trying to come up with ways for employees to also have these experiences.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you trapped working 24/7 in your agency? Do you know who to hire and how to empower them to make the right decisions? How do you build the culture for a growing team? Discover how one agency owner built and scaled a successful agency with multifaceted hires who wear many hats. She is currently working on her building her second agency and shares some of the lessons she’s bringing to round two.

Gina Michnowicz is the CEO and CCO of The Craftsman Agency, an agency specializing in experiences and creating magical moments. They work with clients that want to do something innovative across the digital space and also in-person events. They started their journey working with big clients like Disney and Cisco, although they also work with some small and medium brands as well.

In this interview, we’ll discuss:

• Finding your first employees who can wear many hats.
• Creating the right culture and empowering your team.
• How to avoid burnout as an agency owner.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

 

Starting an Agency with Big Clients Right Off the Bat

For Gina, ending up as an agency owner was the moment her career came full circle. Right out of college she interviewed at an advertising agency. However, they didn’t have any open positions at that moment so she ended up working in HR. She then worked at a management consulting company running part of the digital practice. The idea of starting her own agency came from others who enjoyed working with her and offered to be her first clients. This is how Gina's agency started with two big clients, Cisco and VMWare --  a big break for a young agency!

While most agencies work for many years to earn big clients it can also be quite challenging considering they can be very complex and political. Big brands tend to be siloed, which can make things difficult.

Luckily, Gina is very good at picking the right clients and was able to handle it as a new agency.

Hiring Multifaceted Talent to Get Your Agency Off the Ground

Gina started working by herself but reached the breaking point very quickly, during the first quarter. She was lucky to have someone from her old job who wanted to work with her. It turns out this was a very multifaceted person who could wear many hats. Finding this type of talent is super helpful when you’re starting out and don’t have a lot of resources.

More recently, she continues to rely on more traditional ways to look for new talent for her agency. She is very active on LinkedIn, where she built a large network she can rely on when it comes to looking for new talent. She also uses ads, although they tend to bring in more unqualified candidates.

Gina's agency is in the process of creating an intern program to receive candidates from some great schools. She finds this is a great place to start recruiting because today, young adults graduate with fantastic instincts and insight.

Creating Culture By Getting to Know Your Team 

Your team members need to feel empowered to make decisions. Admittedly, it’s hard to let go of control. Gina sometimes catches herself wanting to intervene and take control of a situation. In these cases, she reminds herself the leadership team can handle it.  It's not only okay to step back, it's important to do so.

It's also important to make sure the leadership team is very connected. If you are disconnected at the top, this feeds into the rest of the team. As leaders, we have to show up as our best selves. If we’re not, permeates the rest of the organization.

It also comes down to relationships. Are you working on building relationships with your team? Do you know them as people beyond their agency role? Get to know the person, not just project manager. Talk to your team about what they are passionate about, and what they like doing. It’s important to create opportunities and spaces where these conversations happen naturally by encouraging team activities.

How to Avoid the Burnout Point

Having trusted key employees who became her right and left hand helped Gina avoid the trap of overworking. She delegates important tasks to them and keeps a healthy work balance.

Unfortunately, one of those key employees had an unexpected leave during the pandemic. In order to stay profitable, Gina and her other trusted employee took on those tasks and worked non-stop during the pandemic. As a result, the agency had a phenomenal 2021 but they were both burned out by the end.

To reclaim her time, she made herself a new routine that includes time to meditate and walk each morning and small workouts throughout the day. Blocking time to rest has also worked. Now, she now tries not to pack her entire day with meetings if she can avoid it. You have to create rules for yourself and be strict about following them to have the time to focus on yourself. Finally, it’s all about knowing when to take time off, which she now does and encourages in her employees.

Why Engagement is the Key to a Successful Remote Model

If you’re managing a fully remote agency, Gina advises you to be really engaged and ensure your employees are also engaged. Engagement is a big factor in seeing whether or not someone is happy and passionate in their current role. Lack of engagement stems from a variety of factors. As a leader, it’s your job to try to understand what can be done to help someone be comfortable with their role in the agency.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Want to make better hires? Looking to improve your agency's employee retention? Many times, a high turnover rate is a consequence of a flawed hiring process. You need to understand what you're looking for and how each person will contribute not only to the agency's effectiveness but also to its culture. Today's guest has developed a system that took his agency's employee retention from 30% to 80% by just adjusting the way they assess new hire candidates.

Shannon Hansen is the owner of Lightfoot Media, a full-service agency focused on helping companies maximize their ROI. He started his first business at age 21 and learned lessons as some of those ended in bankruptcy. In 2012 he ended up in the digital industry figuring out how to make money online with mortgage lead generation. Over the years, the business expanded as he figured things out. He has experienced both great successes and great failures that led him to regroup.

For Shannon, being on such a good path and then having everything go south was an opportunity to stop and wonder: what happened? He learned lessons and figured out how to move forward after picking up the pieces and starting over once again. Starting over led him to what he describes as the most fulfilling stage he has ever reached in business. He hopes it can help others too.

In this interview, we’ll discuss:

• What are you doing wrong in your agency's hiring process?
• The six-step framework to transform your agency hiring process.
• Understanding what drives your agency employees.

Sponsors and Resources

E2M 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.

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

What Are You Doing Wrong in Your Agency Hiring Process?

CPRMPPS is the roadmap Shannon now uses in many business areas. However, this winning formula actually started with his staff. In a span of six months, his agency lost four senior-level employees. It was a big blow for his agency and he admits they were not equipped to fill these positions internally. Shannon and his partner didn't understand how they ended up in the position; they weren't all bad apples. After much reflection, it all came back to the hiring and employee selection process.

So how could they improve their hiring process? What should they do to avoid similar situations in the future? This is how they came up with a system consisting of 6 steps (abbreviated CPRMPS) to their new hiring process. Basically, these steps serve as a guide to quickly tell whether a person is a good fit for the agency or not.

According to Shannon, hiring individuals that fit with this model has increased their employee retention rate from 30% to 80%. It really marks a before and after in terms of the agency’s culture. As a team, they are now much more effective and the atmosphere is incredibly positive.

With this process, Shannon and his team score candidates in each of the following categories from 1 to 10. No person who scores lower than 7 in any of these areas is considered to be a good fit for his agency.

6-Step System to Transform Agency Employee Retention Rates

1. Coachable: There are two main things you should be looking for in this area while interviewing: 1.) Do they ask questions? 2.) Do they take feedback? It’s pretty straightforward, yet very few people ask questions even if they’re encouraged to. This can typically indicate they’re not coachable. Of course, it could also mean the person is shy about asking questions, but this can also be tested in the next step.
2. Problem-solving: The team tests candidates on the skillset needed for their role. The team takes this opportunity to test the person with a particularly difficult problem to solve. They are once again encouraged to ask questions. If they are not willing to ask questions when facing something very difficult, then they’re definitely not coachable. It’s safe to assume that, if hired, they would face very difficult situations on the job. It’s a bad sign if they’re not capable of asking for help.
3. Reliable: When looking at a candidate’s resume, Shannon considers 3+ years at a particular job as a sign of reliability. It’s not necessarily a game-changer, especially if they’re really young. However, they also test reliability based on when they show up for the interview. Early or on time is great, however late by 15 minutes or more, is an instant deal breaker.
4. Motivation: This is the central piece of this hiring system. What drives a person to do what they do? It’s normal for people to have more than one motive but the primary is what you’re looking for. Identifying the candidate's motivation is key because it can either be really great for the agency or really distracting. Some common motives include helping, creativity, and growth. There are also no-go ones like power and control, which are red flags for poor candidates.
5. Personability: This step is all about considering how much time would you be willing to spend with this person. Will they vibe with your team on a personal level? Would you ask them for dinner at your house? It’s really important for culture and the team members judging this usually give very similar scores.
6. Superpowers: This final step is optional but consider, what are they really best at and is it something your team is missing. There are plenty of people on Shannon’s team who don’t have a superpower and are great team members. However, there are people who can make a huge difference with their potential to drive the agency forward in one particular area. This will influence the person’s future role in the agency.

Understanding What Really Drives Your Employees

For Shannon, learning to discern motivation was by far the hardest part of mastering the hiring system. It's not as straightforward as just asking them. It requires practice and intentional listening to discern their true motivation.

Like anything - with time, the team learned about different motives or drivers and why some are good fits for the agency and others aren’t. Some are not adequate for different reasons, whether they go against the agency's core values or simply don't fit within the culture. Ultimately, understanding them helps Shannon see how the wrong hire could damage the agency’s growth.

Once you really understand a candidate's true motivation and how they change the way you can work with a person, you also start thinking about how people with different motives can work together. You get the best work out of a person once you understand what drives them.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Would you like to build authority with a speaking career? Want to generate new agency business from a stage, unsure how to get speaking engagements? As an agency owner, speaking can be lucrative when you’re speaking at the right events and to the right audience. However, there are some things you should be clear on before you begin. Today’s guest has been a public speaker for over a decade and now prepares others for the speaking life. He shares a few tips on how to start your journey to build a successful speaking career.

Grant Baldwin has been in the speaking industry for most of his career. He now runs a speaker coaching company called Speaker Lab, where he teaches people how to find and book paid speaking engagements. After being a full-time speaker for ten years, he was frequently asked what it takes to make it as a speaker. So he decided to start teaching the ins and outs of finding and booking speaking gigs.

In this episode, we'll discuss:

• The five steps to building a speaking career.
• Knowing where to find your audience.
• Strategies to get noticed by event planners.
• Money is not the only way to get your value back.

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5-Step Roadmap to Build a Successful Speaking Career

Booking speaking engagements is a great way to build your personal brand. It's also a great way to build your agency’s brand and attract more clients. Grant teaches the Speaker Success Roadmap which goes through the five S.P.E.A.K steps to help you build your speaking career:

S - select a problem to solve: This is a good first step for any type of future speaker. You should be able to answer: Who do I speak to? What problem am I solving for that audience? Many agency owners make the mistake of wanting to cast the net as far and wide as possible. People who do this tend to say they speak to “people” and have a message for everyone. The more clear and focused you are, the easier it is to find and book gigs.

It may seem counterintuitive but focus on being really good at one thing. Doing this makes it easier to book gigs on a consistent basis. You may think that big agency personalities like Gary Vaynerchuck tend to speak to everyone, but it hasn’t always been like that. Gary actually started off talking to wine people. That’s how he started building his brand. Once you get start building your brand, you can branch out to broader audiences.

P- prepare your talk: This step is about being very clear about the solution you’re providing to the audience’s needs. What are you doing to provide this solution? Will it be through webinars, seminars, or maybe keynotes? They all work; it’s just about being clear on the means of delivery that works best in your case, for your audience.

E - establish yourself as the expert: Two key marketing assets all speakers need are a website and a demo video. Your demo video is like a movie trailer, a short video (2-3 minutes) that sparks people’s interest. This video helps event planners get a sense of your style and whether or not you’ll fit with their audience.

A - acquire paid speaking gigs: This is the part you want to fast-forward to. A common mistake speakers make at this point is doing nothing. They have the first three steps so they figure now they just sit and wait. Unfortunately, it just doesn’t work like that. You need to have a system and a process in place to actively reach out to at least five events and generate momentum.

K - know when to scale: A lot of people interested in speaking are also interested in writing or consulting. Of course, it is possible to do all these things, but Grant argues not all at once. It is up to each person to figure out how speaking fits into their overall plans and goals.

Building Your Speaking Brand by Knowing Where to Find Your Audience

In his case, Grant has a website for his agency and a different one to promote his speaking brand. Both websites point to each other and serve two different purposes. If a potential client wants to learn how to get more speaking gigs, they’re directed to Speak Lab. If they want to hire Grant as a speaker, they’re directed to his personal page.

However, once you know who your audience is and have a website, you can’t just post the link on social media and wait for clients to come. When you’re clear about who you’re speaking to, it’s easier to find events where you could potentially speak.

Where does your audience gather? If you’re running a digital agency, you probably already have an idea of the types of events, gatherings, and associations they are attending. Once that’s clear, it’s a matter of reaching out to the event planner and conferences and starting a conversation about why you’re a good fit for their audience. It’s not about convincing them to hire a speaker; they were already going to do that. It’s more about presenting yourself as the best option.

Like with agency clients, you may reach out and find the planner is not hiring at the moment. Nonetheless, reaching out and starting a conversation is a good strategy and requires discipline and commitment.

How to Make Contact and Standout from Other Speakers

According to Grant, you can focus on events you’ve personally attended before. In this case, you may already know the event planner or can get an introduction if you know another speaker at the event. Speaking is very much a momentum business; the more you speak the more gigs you’ll continue to book. Initially, it may feel like you’re pushing a boulder uphill. But if you plant enough seeds, you’ll see some results.

Simple strategies like sending an email can be perfectly effective too. Grant has booked many events by cold emailing people. However, if you’re sending a 90-paragraph email about how awesome you are, no one will read that. The goal of an email is to get a reply -- keep it short and simple. That is the type of email most likely to get a reply.

Of course, short and simple doesn’t mean vague. Instead of asking “are you hiring speakers?” you can ask for more detailed information. Mention you came across a conference they’re having and were curious to know when they’ll start reviewing speakers for it.

How to stand out: What if you get a reply saying the review process won’t start for another two months? Then that’s an opportunity to ask if it’s ok to reach out again in two months. They’ll say yes to that because they don’t actually expect you to do it. Very few would. So when you actually reach back, you’ll be showing them what it’s like to work with you and giving them reasons to consider you.

Why You Shouldn’t Speak for Free

Speaking for free is okay, as long as you know why we’re doing it. Some speakers may think they’re doing it from the goodness of their hearts and someday they’ll get the return. Speakers are not running a non-profit, they’re running a business and they should treat it as such. As a speaker, you are providing something of value and it’s important to receive something of value in return.

This value may or may not be in the form of a check. For example as an agency owner, speaking at the right event might land you three new clients. This is worth more than what the event would have paid you.

Grant has even offered to speak at an event for free or at a discount on the condition that the event planner introduces him to other event planners. Getting introductions that can lead to other gigs is valuable to him.

Will Speaking be an Important Part of Your Business?

Agency owners looking to build a speaking career should be clear about the role they want it to have in their lives and their agency. There are speakers who do hundreds of gigs per year and others who do three. Both are fine. Just try to figure out which one works for your lifestyle and your agency.

Speaking can be a very lucrative way to grow an agency, and it should be treated like it. Try to treat it like a serious part of your business plan if you’re expecting it to bring great results for your agency.

Are You Looking for a Mentor or Trusted Advisors? 

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you looking for the right formula to take your agency into the multi-millions? Getting to the million-dollar mark can happen easily, but getting to the multi-million level takes strategy. It's all about building processes, hiring a team, and choosing a niche so you continue to grow. Today’s guests found themselves in a situation where they needed guidance to take their agency to the next level. They share the #1 most instrumental decision that changed their agency, key steps to their successful growth, and more.

Chase Williams and Ryan Klein are the co-founders of Market My Market, a digital agency that uses marketing and systems processes to help law firms and franchises grow. They do organic in the digital space, such as SEO, content marketing, web design, lead gen, and more. Over the years, they have set their agency apart by not taking a "package approach." Instead, they are look for gaps and put together plans for their clients based on newly identified opportunities in their digital marketing. This approach has helped them build long-term relationships and take their agency to the multi-million dollar level.

In this interview, we’ll discuss:

• #1 most important decision to spark real change in your agency.
• Searching for the right salespeople.
• 4 key decisions to get over the multi-million dollar mark.
• What to look for in an ops manager.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

 

#1 Most Instrumental Decision Sparking Change in Your Agency

Ryan and Chase were working 9 to 5 jobs at a law firm and an agency. They kept getting approached by friends to build websites, which they didn’t actually know how to do. However, since it meant extra money, they were willing to learn. Soon they were working 60+ hours a week, so they decided to quit their jobs and focus on their new venture. They went on to bootstrap the agency from Chase’s basement in Brooklyn. Years later, they now have 37 employees in two offices.

Chase recalls, the most instrumental decision they made to spark true change for their agency was working with Jason for guidance. With his support, they started focusing on niching down. First with a specific core service of SEO and next a vertical niche in law firms, which accounted for 60% of their clients.

At the time, they were taking any type of job pitched to them, whether logos, websites, or graphics. Once they started to focus on helping law firms and building processes around that, they saw a real change. This was really important to building a proven system they used in order to adapt and scale.

Finding the Right Salespeople with an Aggressive Commission Structure

At first, Ryan and Chase didn’t realize how difficult it is to find a good salespeople. They started by hiring a very charismatic person who didn’t have a lot of experience. After about six months of educating and working on his skills, they felt he could do it on his own. However not long after he left the agency to work for another company. After all the time and resources spent mentoring him, this left them feeling deflated.

This so common - agency owners are their own best sales person. Looking back, they were trying to learn what works and what doesn't. Furthermore, they understood no one is going to pitch the agency's offering better than you. Their best find came once they were willing to poach talent and pay them really well. The alternative is taking the time to train younger, inexperiences sales people who take their new skills elsewhere, or more seasoned sales people incentivized to stay. In short, they pay a decent base and offer bonuses that are basically a piece of what the person sold.

It’s tough to find good salespeople and even tougher holding onto them for a long time, but this approach has really worked for them.

What to Look for in a Agency Operations Manager

When it came time to look for someone to handle operations, Chase and Ryan went for the office manager route. This led them to a couple of administrative people who were highly organized. Ultimately, it came down to high-level organization and an awareness of the need for processes and systems.

The person they found had worked for several startups and local governments but never actually at an agency. This can be a major plus. Finding someone who has experience building systems and can bring their particular experience to the agency world can lead to a great fit.

4 Key Moves To Will Help You Get Beyond Million Dollar Mark

1. Focus on the proposal. The proposal is the driving tool documenting everything you’re going to do for the client. This is where you reassure them they made the right decision. It is a contract, but it is also a narrative walking the client through the plan. Coupled with sales, the proposal drives home why you’re the right partner for this client. When you take the time to create a well-constructed proposal, you’ll stand out against other agencies. Rather than just pointing out numbers, tell a story and explain where they’re at right now and where they can get with your help.
2. Hire an in-house content team. It is a lot of work putting together an in-house team. However, it allows you more control and it’s a great benefit for clients. Your agency is more of a partner, rather than a commodity when you have an in-house team of writers who specialized in creating the content your client needs. It's an added benefit that you should also add to your proposal.
3. Implement EOS. Implementing Entrepreneurial Operating System can provide you with a ton of insight. Of course, it does entail a lot of change and shifting mindset. It’s also not something you can do half-way or it won’t provide the expected results. But when you go all-in with EOS you really see the results for your agency. To ensure success, consider hiring an EOS implementer. You’ll see better results than if you try doing it yourself.
4. Time tracking. Make sure everyone on your team is time-tracking. It may sound too like you’re micromanaging them and most employees will not like it. However, the data it provides is very useful. It leads to important discussions like if a client is over capacity, is it time to upsell them? Will you need a new SEO person soon based on the amount of work? It also helps you decide when it was time to raise prices. Without this data, you’re just shooting in the dark and hoping something sticks.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

What big agency failures have you had? How did you overcome them? Most people don’t like to talk about failure but we all know it's part of being an entrepreneur. The road to growing your agency is filled with them and it’s good to reflect on how we deal with failure. It's also important to look back on things that seemed like the worst-case scenario can turn out to be blessings that lead us to new and exciting paths. Today’s guest has turned his past failures into an opportunity to share the lessons that can come from failures.

Justin Skinner is a self-proclaimed professional failure. He's also an entrepreneur, author, and podcast host. When Justin's dream of becoming a professional baseball player didn't take off, he focused on graphic design and photography. He ended up working at a couple of digital agencies and eventually became a real estate entrepreneur. Neither of these careers was what he thought but he found great success and happiness in this unexpected path. Most recently, Justin has been spreading the word about the benefits of failure with his book and podcast, The Professional Failure.

In this episode, we’ll discuss:

• Trying to minimize the risks when growing his agency.
• Learning from his failures as a leader.
• The big failure that changed his career path.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

The Road to Growing an Agency is Filled with Failures

In the agency business, the road to growth and success is normally filled with a list of failures. People normally want to hide those failures and not talk about them. The truth is even big names like Frank Kern has experienced some failures in their incredible career. It's an inevitable part of learning and growing.

Agency owners may get to the point where they want to give up and see no way out other than selling. Jason sees this type of exhaustion all the time when advising agency owners. However, he believes discussing failures can help you realize you’re not alone and find solutions faster.

There are many different ways to go about building an agency. For Justin, it made more sense to grow with contract workers. According to him, this allowed more flexibility and freedom from project to project. The agency did end up having one key employee who did a great job. However, they end up never adding other employees.

The benefit of course is that they didn’t have to worry about employees in slow months. It definitely depends on how you want to manage your agency and the vision you have for its future. In Justin's case it was the best decision because it provided clarity on their bottom line and allowed them to forecast net earnings for the year.

Biggest Failure Turned into a Huge Success

Justin has had several failures in his career. One that turned out to be a big success down the road was his dream to play professional baseball. He played in high school and college and had several friends who got drafted so he assumed he would too. This dream never came true. Although he was crushed, he now realizes his life wouldn’t have led to him growing a successful business and becoming an author if he had continued to pursue a career in sports. Losing this dream led to many opportunities he couldn’t have imagined at the time.

It’s all part of learning to identify yourself with who you are rather than what you do. Justin realized he wanted to be a resource for others, whether he was an agency, owner, baseball player, or realtor. This has really helped him find joy in whatever he’s doing. Pivoting is part of life and sometimes you’ll find you no longer enjoy what you’re doing, so it’s good to know you can pivot to something else.

Lessons in Agency Leadership

One of his biggest failures was when he hired the agency’s one and only employee. Since he was used to working exclusively with contractors, it was hard for him to manage someone else’s time. He didn’t know how to train an employee and wasn't clear on the tasks required for the job. Without clear direction, the employee had nothing to do sometimes, which led to frustration for both.

Justin had to learn how to become a better leader who is clear about his expectations.

When you hire someone you shouldn’t assume they’ll know what to do. Keep in mind why you are hiring this person. You’re probably trying to save time. However, if you can’t figure out how to communicate their tasks properly, you’ll find yourself giving instructions over and over. The result of this poor communication actually adds more work, instead of saving you time.

Jason has struggled with this in the past and he realized he needed someone to manage and guide these new employees. He recognizes he doesn’t have the patience to do it himself but he still makes sure new employees receive proper training.

On the flip side, Justin thought he was empowering his employee by giving them the freedom to choose how to organize their day. In reality, the lack of clarity and direction left ambiguity as to priorities.

This "failure" turned into 2 huge lessons:

• Be more organized, and
• Give clearer instructions and realize we’re all different and everyone has different ideas about which are the boring or interesting tasks

Next time you feel like you've experiences a failure, consider what lesson it's actually teaching you.

Want the Support of Amazing Digital Agency Owners?

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How will your agency face an economic recession? Does your positioning allow your agency to evolve and come out stronger? If you haven’t been preparing for a similar scenario, now is a good time to make some changes. Think about your agency’s position in the ecosystem of today’s market and how it could pivot to improve it. Today’s guest has seen some tough times in his 10 years in the business. He shares some of the changes agency owners can make to adapt and thrive during a recession.

Manish Dudharejia is the founder and president of E2M Solutions, a full-service white-label digital agency. His team works mainly with digital agencies to help them solve their bandwidth problems. After 10 years in the business, E2M has worked with over 450 agencies across the country and currently has a staff of 160 people.

He's a repeat guest and friend of the show, who has shared the complexities of the Principle-Agent problem and big decisions for a successful agency. Today he's helping us learn about surviving and thriving in an economic downtown.

In this episode, we'll discuss:

• How the right positioning is the key to facing a recession.
• How, even in the middle of the recession, your agency can keep growing.
• Why a recession is a time of opportunity for small and mid-sized agencies.
• How to can face possible layoffs if business slows down.

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How to Prepare Your Agency for a Recession

To survive a recession, your agency needs a very strong position in the market and products/services that solve real problems. With a clear vision of your agency’s positioning and offer you’ll know exactly who your clients are. This requires some reflection about things you can improve and simplify in your offering.

Regardless of a recession, if you’re having issues with onboarding, then you have a problem with your product or service. A recession is a great time to test out your product or service. If there’s an absolute need for what you offer, then your agency can go through a recession seamlessly.

One mistake agency owners make during a recession is to stop offering some services. Many assume that, if things are slowing down, the business slows down as well. This isn’t necessarily the case.

A recession is still an opportunity to make the most of your existing clients. It's easier and more economical to retain existing clients than find new ones. The key is being more communicative with your clients. Reach out and start a conversation to find out what they need. Are there any other ways your agency could be helping them?  You can do this without sounding “salesy” but by listening, taking a genuine interest in their business, and looking for new opportunities.

2 Tips to Keep Going During a Recession

1. Continue marketing. During hard times, agencies should continue marketing and producing content. Write a weekly post and send a newsletter to clients to make sure they’re engaged. You want to ensure your customer service is top-notch so you’re not losing your existing clients. This is how your agency will continue growing in a recession.
2. Be flexible. A little bit of understanding, empathy, and flexibility goes a long way with both existing and new clients. This applies especially to brands and industries being heavily affected by the recession.

Why Agencies Have a Good Chance Withstanding Hard Times

Agency services, like website building and maintenance, are essential for companies. Even in the middle of a recession, businesses want their websites to be up and running. They are still likely to hire agencies for essentials like websites, SEO, and content as a way to engage new clients.

Don’t assume a recession means staying put and waiting for the fall. Embrace new activities and services and maximize other areas where you can. A recession may be a time when your agency loses some clients, that is true. However, it can also be a reset and an opportunity to go after new clients at a higher rate.

Agencies that survive in a recession are the ones who get really specific about the clients they’re going after and the problems they solve. Of course, people freak out when things start to slow down. Nonetheless, this won’t last forever. At some point, they’ll see the need for marketing to accelerate their business. The economy is cyclical and it will come full circle again.

Recession Can Be an Opportunity for Agencies

Mid-size and enterprise-level businesses look for cost-effective solutions in times of recession. This means it’s a good time for small to mid-size agencies to land an enterprise-level client. In a recession, those clients won’t look for enterprise-level agencies because of the cost. That also means an economic downturn is a great time to pivot your messaging and position your agency to tap into new opportunities.

A lot of agencies don’t realize their positioning might be off during difficult times because they’re just trying to survive. You need clarity to figure out your positioning and rethink your offering. How can you do it? Try to find ways to keep it simple. It can be one of the hardest things to do. However, when you position yourself the right way you'll land the right clients and take advantage of new opportunities presented in a recession.

Facing Possible Layoffs Within Your Team

Layoffs are one of the things agency owners fear the most about a recession. You may feel responsible for employees and dread the moment when you have to consider making job cuts. This isn’t necessarily the worst thing. For starters, doing it in sooner than later helps them find something else quicker. Also, it's a chance for you to really evaluate your team and choose just your best people.

In 2017, Manish was in the position of letting go part of his team. After that, he thought about how to better position the agency. They decided to pivot and become very specialized in a few services.

This is an exercise he recommends for every agency owner when on the brink of recession. He believes all agency owners should take some time at the end of the year to reflect on their agency's results. Consider where you can make improvements. This is an area he urges agency owners to listen to their clients. If possible, he recommends doing a survey with some simple questions like “is our offering simple or is it confusing?” “is our pricing simple or is it confusing?”

Client feedback is your starting point for resetting and simplifying your offer for the next year. He finds every time he's done this exercise his agency becomes stronger.

Be Obsessed About Freeing Up Your Time

Finding the time to focus on what needs to change and ways to improve the agency becomes easier the better you get at delegating it. Another thing to ask yourself in an end-of-year reflection is “what are my current tasks at the agency?" and “could somebody else be doing this?”

If the answer is yes, it's time to find the right person and delegate it. The more time you free up from daily tasks the more time you can dedicate to working in the business and strategies for how to pivot during a recession.

Want the Support of Amazing Digital Agency Owners?

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Are you considering a merger in the future? Have you thought about the logistics of managing the resulting agency? How would the structure of that newly merged agency look? There are many things to consider with a possible merger, like making sure it equally benefits both the team and the clients. Today's guest entered into M&A as the solution for the future vision of his agency. He was lucky to find a merger partner who turned out to be a great fit for his managing style, which is key to their success.

Kevin Hourigan is the president of Spinutech, a digital marketing agency that takes a data-driven approach to craft measurable results for clients. Originally, Kevin founded Bayshore Solutions, which offered web design services, interactive marketing, and e-commerce for clients in 55 countries since 1996.

More recently, Kevin and his new partner decided to merge their agencies becoming an end-to-end solution offering greater value to clients. He now chats about the decision to go ahead with the merger and how they structured the resulting company.

In this episode, we’ll discuss:

• Surviving economic downturn and adapting to the market
• How to structure and lead an agency after a merger.
• Building culture and inspiring a large team.

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

How to Adapt to the Changing Market Needs

Back in January 1996, only 1% of companies had a website. At the time, Kevin owned an outsource-IT company that helped small businesses manage their servers. He and his team also liked building websites and offered that service to clients. However, the most common response was “what’s a website?” Other clients would argue they didn’t need one. So at first Kevin’s company was marketing a product that companies didn't understand or value.

He recalls, about six months after they started offering website development some of those clients started calling them back. That’s how they started and slowly grew their model to building a 10-page $5,000 website. By 1998 the team had grown from 3 people to 30 team members and continued to grow to 250 team members by the year 2000.

Little did they realize, the burst of the dot-com bubble was just around the corner and they were once again left with a 20-person team. It was a stressful time, with many businesses around them disappearing. They managed to stay afloat by adapting to the market which resulted in keeping some core clients.

Lessons and Recovering from a Down-Turned Economy

Looking back, it’s easy to see the mistakes made during the dot com bubble. The growth was immense and came in too fast. Many businesses spent money they didn’t have on the best websites and the consequences were disastrous. After going through such a rapid decline, going from making 250K per project back to 15K per project, why continue?

Kevin was actually ready to quit at that point. He came close to going public with the company and already had a couple of angel investors. Although he felt it wasn't a viable plan, the investors wanted to move forward because they believed he could make it. And his agency did make it -- years later he was able to buy out those investors.

Three years after scaling back to a 20-person staff they had grown to 50 employees again. The agency figured out who they serve and the value they brought to those clients. Economic growth and recession is cyclical, but your agency can survive and even thrive in a tough economic climate

What is the Future for Agencies? 

Kevin owes much of his success to his ability to adapt to the market. While his company started out as an IT services business, he realized web development was the future. Even though clients didn’t see it right away, they eventually came around and embraced the internet era.

Then in 1996, his company went full-on with web development services. That was their sole focus for a while until the digital marketing side of the agency emerged. Once again they adapted to the demands of the market.

What’s next for the future of agencies?

Kevin believes the future of agencies relies on staying two steps ahead. The way agencies stay in the game is always being ahead of emerging technologies and being digital experts to their clients. As long as agencies maintain a level of expertise to help their clients grow their businesses, that’s how they stay relevant and necessary.

Using a Merger to Achieve Your Vision and Goals

Kevin’s goal for his agency was to become an end-to-end solution for customers – handling copywriting, web design, social media, etc. However, his team at Bayshore Solutions did not check all those boxes. They needed more team members who were experts in their areas and had more complex capabilities. This is why the merger was an easy decision for him.

He looked at partnering with a company he knew well. It belonged to an old friend at a competing agency. They both realized working together would help offer a better career path for their team and increase their value to clients.

What You Should Consider Before Starting a Merger Process

If you’re thinking about going through with a merger, here are some of the things Kevin recommends you keep in mind:

• What does this mean for the clients?
• How does it benefit the team?
• How does it benefit the newly merged agency?

All of these aspects are very related and therefore need to be equally served. If the merger only serves one or two of these entities, one will be disappointed which creates the risk of a merger burdened by friction and frustration. If you value all three and ensure both cultures gel well, the result is an overall better agency.

Other aspects include the financial component and how involved you see yourself being in this new agency. Do you see yourself having an active or inactive role? This is a huge factor to consider prior to starting any M&A process.

How to Structure the New Agency After a Merger

The role you assume in the agency following a merger depends on how involved you want to be. For Kevin, it has been an evolving journey. He and his partner are 50-50 partners and early on they decided how that would work.

Both partners weigh in on very important decisions. Kevin is the executive in charge of web design and development while his partner oversees the marketing area.  Furthermore, his partner is very focused on culture so he handles that aspect. Meanwhile, Kevin is a numbers guy, so they really complement each other in terms of managing the business.

When it comes to their differences, they agree not to discuss diverging opinions in front of the team. Instead, they work it out privately and deliver one united message. This is what gets communicated to the team, so as to not confuse them.

This is not something they considered prior to the merger. They focused on how both agencies complemented each other and were lucky to find out later they also complemented each other's managerial styles.

Management and leadership styles are something to take into consideration if you’re thinking about a merger.

New Leadership Layers and Creating Accountability

From a team member perspective, the merger meant new layers of leadership that didn’t exist in the original agencies. The merger created many new management roles, many were filled by existing employees and a few by new agency hires.

For Kevin, the key to changes such as this is leveraging traction. Everyone at the newly formed agency knew who to turn to for help and who is in charge of what. The road to getting that sort of traction started with putting together an accountability chart. This has evolved as the agency has grown with new roles and management positions being created.

#1 Key to Agency Operational Success

Kevin and his team have an Entrepreneurial Operating Systems (EOS) integrator at the agency implementing “pure EOS”. What this means is the agency stays as close to the original system as possible.

Kevin says many businesses say they use EOS, yet they haven’t defined the integrator and visionary. What they are doing is a very light version of these principles where they pick and choose what they implement and, in the end, this holds them back.

Kevin and his partner run. their agency following an operating system that has been proven by many successful companies before them instead of one created by them. This entails many hard decisions but it's worth it. After all, this framework has been successfully implemented by over 80,000 companies. It may not be perfect, but Kevin attributes much of their success to closely following the EOS framework.

The Key to Building Agency Culture with a Remote Team

Today, with offices all over the country and more than 165 employees, the agency still chooses to work mostly remotely. Their offices are open for the staff to work on-site if they choose. There are often about 25-35 employees in the office every day.

However, to maintain culture they organize events designed to attract everyone to the office, such as an All Team Meeting. On those days, they serve lunch, and generally, many more people show up wanting to interact with their coworkers. They also have one person in the organization dedicated to serving the team and the culture. This ensures they have all sorts of virtual and in-person activities to build camaraderie and inspire the team.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

How many hours per week do you spend working IN your business? Do you need a better work-life balance? Would you like to focus just on the work you really like? One agency owner went from dedicating 50+ hours/week to her agency to working 10-12 hours per week. She did it by recognizing her strengths, setting up the right systems and coaching her team.

Andrea Jones is a social media strategist who runs OnlineDrea, a digital agency operating done-for-you social media services. They handle all social platforms and do content creation from video editing and graphic design and primarily work with online business owners in the coaching services. A big shift in her personal life limited the time she could dedicate to the business. Therefore Andrea drastically changed the way she ran things. Fortunately, she managed to do it in record time and found it was just what her agency needed.

In this interview, we’ll discuss:

• Transitioning out of client work and into the CEO role.
• Scaling back from 50+ hour workweeks to 10-12 hours.
• Coaching your team and building the right culture to take a step back.

Sponsors and Resources

E2M 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.

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Are You Afraid of the Word “Agency”?

Andrea has always loved the internet and the process of content creation. She started a blog in 2004 and even a YouTube channel in 2007. What really jump-started her career was moving to Canada, where she started freelancing and slowly built a team. However, she admits she was scared of the word agency; so for many years she thought of herself as a freelancer who “just happened to have a team”.

Her work as a freelancer started as a necessity while she worked on her legal status in her host country. Nonetheless, in time she realized the repeatable nature of social media had landed her a really good agency business model.

Removing Yourself from Client Work and Scaling Back to 10 Hour Work Weeks

If you’re an agency owner, it’s not uncommon to work 50+ hours a week. Maybe you love your agency and don’t even realize you also need a break.

Andrea went through a similar situation where she was working 50-60 hours per week. She says she wasn’t looking for a way out because she really enjoyed the work. However, when she got pregnant, she knew she couldn’t get through such long work days.

She made a decision and started removing herself from client calls, hired more staff to support clients, and hired her first official employee. This made a real difference, although she admits it was a long journey. In the past, every time she iterated the structure of the agency she was still at the center of it. It was only after she got pregnant she realized everything was still going through her. The real change came once she accepted this wasn't sustainable any longer.

Making this change was no walk in the park. It was easier than it could have been thanks to getting super clear about agency culture. She took the Clifton strengthsfinder test and her second strength turned out to be positivity. She had never seen it as a strength before, but she realized that’s why some people worked really well with them.

So when it came time to remove herself from sales, she knew she needed account managers with the same energy and she leaned on that in their training.

Andrea knew she got it right when she got a message from a client praising her team’s work. It is a difficult realization that clients don't need you, but it is exactly what frees up your time to do other things!

Transitioning from Owner and Strategist to Agency CEO

Changing the agency's structure also meant changing Andrea's role. She went from leading strategy to coaching her team. Instead of just being an agency owner, she really transitioned in the role of Agency CEO.

It was a big change but she now feels more like a mentor than an expert. In essence, instead of being the person who provides the solution, she guides her team to finding the solution. 

The downside -- some of team members didn't make the cut. Not everyone was on board with this new direction or stepped up to the plate for their new responsibilities. Some people did end up leaving, which presented some unforeseen difficulties. In the end, this created more space to hire the right people and bring on new talent.

Try to Not Rush the Process and Get the Support of a Mentor

Agency owners need to proactively take steps to reduce the amount of time working in the business before they’re burned out. Rather than being reactive out of necessity, you can set a reasonable timeline to do it successfully.

It took Andrea about six months to achieve great results with her team. She admits a more realistic timeline would be a 1.5 years to account for unforeseen challenges. It was just one month before her due date and she managed to figure it out thanks to her team. Nonetheless, taking the time to do it without rushing out of necessity is ideal.

A longer timeline provides time to test-run. Andrea and her team tested the results of her coaching efforts once she had her baby. Since having the baby, they’ve had some time to fine-tune the process. She really recommends giving yourself the time to practice not being around and actually limiting your hours. There will be things you may not have considered, like sharing your passwords, that can go much better if you run a test first.

Finally, one key element Andrea cannot recommend enough is getting the advice of a mentor. As an agency owner, you probably feel that if you managed to grow a successful business figuring this out can't be that hard. However, consider how much you would be helping yourself by getting the support of someone who has done it before. Andrea’s mentors helped her through many unforeseen bumps in the road so she is thankful for having had support.

Are You Looking for a Mentor or Trusted Advisors? 

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Does your agency develop content for clients? Do you have an in-house content team or outsource? What issues have you run into building your content team? The key to amazing content is building an amazing team. However, a common struggle for agency owners is not knowing the right structure or managing style. Today’s guest will share some insight on what to look for when putting together your content team and the right questions to ask to ensure you’re getting the best talent.

Ryan Sargent is the Director of Content Marketing at Verblio, the world’s friendliest content creation platform. Verblio builds content marketing for other marketers at scale by pairing specialized, niche writers with advertising agencies and marketing professionals. Ryan has been on the podcast before talking about Verblio’s agencies are using content marketing.

As content director, he knows his share of building and managing a content creation team. Recently, and thanks to Verblio’s new podcast, he has had the opportunity to talk to other team managers from different agencies and learn that they all pretty much share the same issues, which he will explore in this interview.

In this episode, we’ll discuss:

• Where to start when building your content creation team.
• Asking the right questions to ensure you’re hiring the right person.
• The best way to manage your content creation team.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

 

Where to Start Building Your Content Creation Team

When it comes to building your team, structure is very important and the order you make your hires will set the stage for future success. For starters, you want someone who really owns the manager/editor role. This will be a linchpin of the team structure.

Usually, someone on the director level will have to work a lot on strategy. This is particularly true for in-house teams. The team manager must know the type of content the team is creating and why they’re creating that content. Management may not be the most attractive part of the job, but ultimately someone has to make sure that everyone’s on schedule and the lights stay on. If you can fill that seat with someone who specializes in project management, you’re off to a great start.

A lot of times, people bring in a CMO person that will focus on strategy but are not willing to roll up their sleeves. What you need is a managing editor that can write content, develop a process, and then manage people under them.

Why Your Should Develop a Process Early

Something that Ryan kept hearing is that having a process is critical to ensuring that, whatever strategy you’re pursuing, you’ll find success. The process will allow you to generate content from a lot of different sources. If done right, you’ll set up a process that will be repeatable and will generate efficiency all on its own.

Creating the Content In-House or Outsourcing?

Ryan was surprised to learn that when it comes to content, everyone’s doing it a bit different. When it comes to where agencies are getting their content, the hybrid model is apparently very common. For every agency that is producing its content in-house, there are multiple that outsource at least part of it.

The same is true for in-house teams. This is a place where agencies and in-house marketing teams are operating in exactly the same way. Everyone’s mixing and matching, often depending on the type of content and industry.

Should the Content Manager Read Every Piece of Content?

Not all agency owners are equipped for managing teams. Some prefer to make the right hires from the start, give them the direction, and let them manage. People management is hard and can be tough to juggle with all the responsibilities that come with being an agency owner.

Because of this, some of the same issues kept coming up and no definitive answer is yet available. For instance, as a content manager should you be reading every single article produced by your team? Furthermore, once they’re producing dozens of articles a week, does your answer change? For Ryan, if you’re running a content team then yes, you should be reading everything.

However, he does agree that a content manager should only be reading pieces that are mostly finished. This is because:

1. He wants to show his team that he trusts them, and
2. He loves the creativity that comes out when he’s not constantly reminding his team of the content strategy.

Asking the Right Questions to Find the Right Talent

When you’re hiring people for your in-house content team it’s all about asking the right questions. Ryan likes to open the interview asking about the best piece of content they’ve ever written, followed by how did they know it was their best piece of content. Both answers are important. This way, he hopes to hear about something that isn’t a standard piece of content. Also, they would ideally talk about ways of measuring content success that are more conversion-centered than Google analytics.

For freelancers, his go-to question is “how did you become an expert in this topic?” The hardest part of outsourcing content is getting a writer that really knows the industry. For agencies, that problem is magnified because every client is in a different world and you need to find writers that can manage all those different verticals. The ability to vet a freelancer often comes down to that and the brief; a good follow-up question would be “what are the most important things you need in a brief?” If they talk about industry knowledge, sources to get started, content strategy, and most importantly, the purpose of this article, then you have a great candidate. If you get questions more directed at a style guide and less about coming up with the knowledge required to come up with the article, it’s probably not a right fit.

 

Want the Support of Amazing Digital Agency Owners?

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Have you heard of the four-day week? Is it something you've ever considered for your agency? Many people feel it is a good way to find the work-life balance we all dream of, while others argue it's not practical. Today’s guest decided to give it a try and now explains how he came to that decision and how it has worked out for his team.

Chris Free is the president and partner of Chromatic, a web development agency that has been in the business for 15 years. As a remote agency since its beginning, Chris and his team work to create a sense of camaraderie among employees. They wondered if a reduced work-week would make it even harder. He shares why and how he decided to implement the 4-day workweek and the result so far.

In this episode, we’ll discuss:

• Why they decided to try the four-day week.
• The process to implement this new work style.
• His team’s response and productivity results.

Sponsors and Resources

E2M 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.

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Do You Need a Break from Hustle Culture?

Chris always dreamed of owning his own business, although he never pictured it would be a digital agency. After graduating with a degree in interactive media, he figured he would work in video production. However, he quickly realized there were no such jobs he could find in Chicago, so he leaned on his programming skills. He ended up at a 10-person startup advertising.

His work at the agency helped him realize he had a ton of value to offer, so he joined two developer friends and started looking for clients. Just a couple of years later, they bought out the original founder and started adding more partners and employees. For him, the most challenging moment was when they started growing and he didn't have time to work on what he loved. As an agency owner, he was in sales and dealing with management problems and felt trapped.

After years of growing his agency and working on sides of the business he didn’t really enjoy, he pondered the idea of the four-day week.

How to Start Slow With Flexible Time Off

Chris learned about the concept of the four-day week while reading about the downside of hustle culture. This book explains that you need to build a rest ethic as much as you build your work ethic. At the time, they needed a change so he and his partner agreed to test it out at the agency. They started by implementing a half day off every Friday. The results on the business side were not really impactful. However, on the human and cultural side, it was tremendously beneficial.

Their staff absolutely loved it, especially after the recent pandemic-related burnout that everyone lived. The result has been so successful that he sees no way back.

3 Common Concerns When Moving to a Shorter Workweek

1. Financial Concerns. In the beginning, Chris was worried about torpedoing the business, which had never had any debt. He and his partner chose to start with half days off in the summer months, from from Memorial Day until Labor Day. Once the test was over they realized it had not had any material impact on their finances, so they continued through the rest of the year. When that test was successful, they decided to extended it to the entire day off. In terms of the benefits, their profitability isn’t up yet, but they expected it to be a longer play that pays for itself in terms of culture and retention.
2. Clients Buy-In. How would clients feel about it? In the beginning this was a pressing concern for Chris. However, the response was surprisingly positive. Of course, there are still ways for them to contact the team in case of an emergency so clients don't feel abandoned on Fridays.
3. Company culture. Chris and partners were concerned about fostering camaraderie among the staff. They’ve been remote since day one, so building culture has always been a conscious effort for them. While agencies that have an in-person model create that camaraderie naturally, remote agencies work hard to manufacture it. They have continued doing this with team retreats and weekly calls where they don’t talk about work. Overall, the staff is very happy with the change to a 4-day work week.

How to Be Better Leader and Prioritize Self Care

For many years Chris has had a hard time with work-life balance. He realized prioritizing his own well-being would make him a better leader. Transitioning to a shorter workweek was the push he needed to really take that seriously.

It's not uncommon for agency owners to get burnt out from long hours and oftentimes working on parts of the business you don’t necessarily enjoy. It might seem counterintuitive to take time off, however taking care of yourself is the key to success. Your future self will thank you.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

What is your client onboarding experience like? Is it seamless and easy? Do your clients feel important and seen? This is the first impression new clients experience with your agency and it might be the most important interaction. Today's guest has been an agency owner for more than two decades and has adapted to the many changes in the industry. He shares how he has adapted to changes in the market, how he has an agile approach to project management and the most common mistakes in building the customer onboarding experience.

Michael LaVista is the founder and CEO of Caxy Interactive, a Chicago-based software and technology agency that helps companies unlock 4-5x growth by setting up new and efficient systems. Their expertise includes user-centered design, content management systems, e-commerce, mobile app development, and much more.

Michael is also the author of Superpowered, a book that goes over the seven leadership superpowers that technology executives can use to grow a more profitable organization.

In this episode, we’ll discuss:

• The benefits of an agile approach to project management.
• Ways to attract great agency talent.
• Avoiding mistakes in new client onboarding.

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

When it Comes to Agency Growth, Either Adapt or Die

Michael has been in the agency business since the “dot-com boom” in 1999 when his agency helped clients adapt to the arrival of this new tool. Back then, they believed all you needed was a great idea, then smack a “.com” on it, and you’d make a million dollars. “It was like the wild wild west,” he recalls.

Over the years, they’ve had to change their focus five or six times, from e-commerce to content management and more. Agency owners know you either evolve or die, so after their past focuses were commoditized to audiences they finally landed on offering tech solutions for business growth. They help companies whose current systems impede their growth. With their help, they unlock 4-5x growth. Over several decades in the business, they’ve amassed a remarkable client list, including Motorola and North Western University.

Roadmapping Growth By Updating Client Technology Systems

Michael’s agency creates a technology roadmap for profitable companies that want to grow but still run on spreadsheets and home-grown strategies that don’t scale. They re-engineer their clients' businesses taking advantage of available technologies. As much as we’re all aware of the available tools, not many are implementing them from a digital transformation point of view.

They commonly run into companies with systems designed around how they worked at some point in the past. A company starts as a single store but as they grow to multiple locations it may have new challenges. So, instead of being based on an idea, these companies’ systems are based on things that can easily go wrong. What happens then? What Michael’s agency does is helps these businesses engineer a system that will help them grow and open up.

A common misconception about their agency is their work with a company changes everything and replace employees with technology. According to Michael, in all the years working with different companies, upgrading their systems has never resulted in massive layoffs. Moreover, commonly the person doing the mundane tasks eliminated by the new systems are the owners and executives.

Benefits of Taking an Agile Approach to Project Management

In his career, Michael has learned the human mind is set up believing it knows step-by-step how something works.. The reality of course is that any big project has unforeseen complications. In these cases, you should be ready to adapt.

This is why he likes to use the agile approach to project management, meant to help teams deliver results with fewer headaches. In short, they lay out a general plan highlighting what they want to accomplish and they prepare for the fact that the “how” will likely change depending on circumstances. This allows them to deliver exactly what the client is paying for with the right priorities. Having a list of priorities ensures they always know what they should be focusing on in case the plan changes. For example, if you have prioritized ten goals you know number 10 is a good candidate to be modified.

For Michael, this is a good way to work transparently when it comes to what’s really happening at any time. It’s much better than letting the client believe the project will be finished by an exact day and time.

2 Big Mistakes in Your Agency Clients' Onboarding Experiences

In his agency, Michael has seen thousands of customer onboarding experiences. Two big mistakes are:

1. Making it all about the agency. Some companies build their customer onboarding experience by thinking only about what they need. They approach it with “Here are all the things we want” and “This is what we need you to do”.
   Instead, it should be mutual and, best case scenario it should be easy and seamless. Your customer onboarding is the first contact they’ll have with your process and it will leave an impression, so make it a good one. There may be a ton of stuff you need them to do, but do you really need all of it right away?
2. Not thinking about the entire client experience. Set up success early on by looking at the whole picture. Consider the entire client journey from the moment they sign on. Look for ways to set them up for success by preparing them for the most common struggles. You should always be aware of the hurdles new clients struggle with and be proactive in helping avoid or solve those. Track the entire experience to really understand their pain points, where people get stuck, what they are nervous about, etc.

Developing Ways to Attract Great Talent

Michael admits his agency needs to work on their methods for recruiting. He’s not alone; agency owners can get so busy with the work they don’t focus enough on their own marketing. You should always be hiring and part of this is to constantly communicate your culture. In Michael’s case, the most difficult hire has been developers who know what they’re doing. His agency is now developing a strategy for creating media to market his agency’s approach to technology with a spotlight on the developers. This shows viewers who they are as a company, what they do, and attracts employees that are a good fit.

When it comes to internal processes, Caxy Interactive focuses on creating a great project management communication system. They're empowering developers and trusting them to work without someone watching over their shoulders all the time. They focus on communicating what was going on, asking for input and ideas on a daily basis. The feedback is good and developers are positively surprised.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Have you built a scalable lead gen system to boost your agency’s growth? Most agencies start with referrals. But eventually, you need a reliable lead generation system to keep your pipeline full. Today’s guest found himself at that point when his agency reached $80K in revenue, at which point he realized the agency needed to step up in terms of lead generation to reach multi-million in revenue.

Jeremy Moser is the co-founder and CEO of uSERP, an SEO agency that earns SaaS companies high authority backlinks on the most coveted websites. When it came time for his agency to outgrow the referrals model, he turned to several strategies that helped his agency exponential growth. He now reflects on the lessons he learned about agency growth, the process to building his lead generation system, and why he picked Twitter as the platform to build a network and brand.

In this interview, we’ll discuss:

• Going beyond cold emails to get past the $80K mark.
• Why Twitter is a great place to form connections.
• Podcasts as useful tools for SEO.

Sponsors and Resources

E2M 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.

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Helping Build an Agency Before Becoming an Owner Agency

Jeremy landed a job right out of college at a general marketing agency and web development firm. During his time there, he got to see a massive transformation after the founders split and went on to create separate agencies. Jeremy ended up staying with one of them and spent five years witnessing its growth, from being the only employee to being one on a team of 30.

During this time, he got to see the highs and lows of building an agency, seeing it go from a project to an actual company with organization and structure. Helping build the agency and witnessing the trials and triumphs, and what worked and didn’t is what helped him decide to eventually start his own venture.

Figuring Out How to Build a Lead Gen System

Up until about the $80K mark, Jeremy’s agency grew pretty much on referrals. He was tapping into his existing network, approaching past clients from his previous job by offering new services. It proved to be a good growth path for the early stages of the agency. However, they realized it just wasn’t sustainable if they really wanted to continue growing and reach multi-million in revenue per year. It was time to be intentional about lead generation by being active and aggressive about it.

However, referrals aren't scalable. So a lot of agency owners at this crossroads decide to hire a lead gen agency. Both Jason and Jeremy disagree with this strategy.

Jeremy says hiring a lead gen agency to do cold emails for your agency won't work without brand awareness first. It’s very unlikely in the early stages of your agency you’ll find high-profile clients simply by sending cold emails. As a result, he put his efforts into the long game with social media and organic content. For Jeremy, this worked better than the alternative of hiring a lead gen agency. It was a good way to build connections with founders and marketers at different companies, and it was one of the major drivers for them to scale past $80K per month.

Using Twitter to Make Real Connections

When he turned his attention to building a following on social media, Jeremy focused especially on Twitter. When he joined he didn’t really see much potential there to actually connect with people. However, at some point, there was a big shift in the algorithm and the platform's users.

He started posting what he was doing for his agency; sharing their wins and losses helped him build connections with other agencies and brands. He realized many of his Twitter followers were working at big companies. He decided this was the right platform to reach them on a personal level rather than someplace more transactional like LinkedIn.

While LinkedIn is always more sales-driven, with people trying to build connections on that basis Twitter was a more organic way of meeting people.

2 Strategies That Helped Build the Agency’s Brand

Other strategies that helped boost his agency’s growth included creating content for third parties and an acquisition that led to their foot-in-the-door offer.

1. Guest blogging: Try being an expert contributor for industry news outlets. Jeremy is a writer for Search Engine Journal, a top SEO publication. In the long run, this was a good lead gen strategy in the long run. They write detailed articles about SEO and link building that their potential clients could be interested in. This in turn gets them a lot of articles linking back to them or referencing them and ensures people searching for this information find uSERP.
2. Acquisition and the FITD:  Jeremy's agency acquired a SaaS company which they had a relationship with their as a customer. A lot of SaaS companies – their ideal clients – used it as well. It provided a way for them as an agency to start building a relationship with potential customers. It created a good entry-level foot-in-the-door offer where a SaaS company could pay $200/month for this software. They actually ended up closing a good amount of deals from this acquisition.

The Positive Effect Podcasts Have SEO for Your Agency

Podcasts are a very useful tool when it comes to SEO for a number of reasons:

• When you are a guest on a podcast, you almost always get a link back from doing it. Those natural links are always important. Whether they publish it on their site, social media, or their blog it has residual effect on your SEO.
• You also get the opportunity to repurpose content. If you’re writing about a subject you also recorded a podcast on, you can transcribe the recording and optimize it.
• Adding a podcast or video to existing content increases the value of that piece as a whole. By adding audio or video you can appeal to different types of learners because not everyone is going to want to read your super-long blog post.

Lessons in Agency Growth

One big lesson for Jeremy in his growth journey was investing in good talent. It may be hard to hire great talent right from the start because you just don’t have sustainable cash flow. However, once you get to a certain point with your cash flow and have a good client roster it is definitely something you should invest in.

Jeremy finds any time he feels uncomfortable with the amount he was paying for a seasoned senior hire it ended up being the best decision. It frees up a lot of time he redirects to focus on other aspects of the business. When he does that,  revenue climbs aggressively.

Now, he makes it a point to always think about things he is doing that somebody else could take over.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you spend too much time in endless meetings? Do you have the right systems in order to be efficient with your time? Are you ready to reclaim your time and focus on working on the business? Today’s guest helps his clients use technology to implement automations and SOPs to build an ideal future for them. In this interview, he shares his personal experience learning to reclaim his time to strategize, plus ways he makes more time to work on the business and how you can do it too.

Marquis Murray is the CEO and founder of Ditto, a systems improvement consultancy helping customers get the most out of technology by improving how they work, aligning their teams, and helping them understand the current state of their business. They help clients work toward a future where they can set aside time to focus on their goals.

In this episode, we’ll discuss:

• First steps to implementing the systems to reclaim your time.
• Benefits of communication with clients and employees.
• Setting aside blocks of time to work on the business.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

How to Stop Wearing All the Hats as an Agency Owner

Marquis started his career as a digital marketing manager for another agency. He left this job because he wanted to start his own business, be the boss, and make his own hours. Unfortunately, as agency owners know, that’s not always how it plays out. However, he is thankful he had some of those lessons early on.

As he started gaining clients and growing his team, he quickly found he was no longer able to wear all the hats. He was spending a lot of time in HR and onboarding. He didn't have any systems in place so his team kept coming to him with the same questions. Out of frustration, Marquis started building systems and visually documenting how he did things to send to his team when they had a question. In time, this evolved into the standard operating procedures and work templates his agency has today.

He sees this a lot with clients building a business and realizes there’s much more involved in actually scaling the business. One of the places where business owners are commonly not spending enough time is in internal team onboarding and communications.

Now, when someone joins Ditto's team they receive what he feels is a well-thought-out overview of their responsibilities and available resources. Without those systems in place, he finds confusion and frustration. Setting up expectations from day one minimizes those feelings and everyone is more productive.

Start by Documenting Your Own Tasks

Normally, when we talk about SOPs, people can get overwhelmed and don’t know where to start. A great place to begin is your own role. Whether you’re writing it down on paper or using a screen share tool like Loom, document what you do and get it out of your head. You can set apart a day or part of your day where you don’t use your phone or computer, just a pad and a pen, and write down everything.

Start by answering “What am I responsible for?” You may be responsible for sales, so document what that looks like. What does it look like when you close a sale? Record sales calls -- good and bad -- for training purposes. What do you do next? Where does the invoice get sent? How do you set up a project brief for a new client coming in? Whatever your current responsibilities, start there.

First, take a review of your days and identify what you are doing right now that you could delegate. Which meetings can you eliminate or delegate? That will free up some of your time so you can document tasks your team should be doing and get more efficient. Set reasonable expectations for yourself and know you won't be able to do it all at once.  Start small so you don't get overwhelmed and you'll eventually find the freedom you deserve.

4 Ways to Categorize Your Responsibilities 

Marquis suggests sorting your tasks and responsibilities into these categories:

1. Do - urgent and can't be done by anyone else
2. Defer - can be completed later, when time allows
3. Delegate - something that is able to be completed by others
4. Delete - unimportant or won't drive the business forward

There’s no silver bullet for everyone, the idea is to get started and implement what works for you.

Benefits of Constant Communication with Agency Team and Clients

The worst mistake you can make with your team or clients is to assume communication has happened. We tend to believe just because we communicated something once everyone has received the message and understands it. In reality, you can never communicate enough. If you’ve only shared it once, you should probably repeat it at least three more times.

When it comes to internal communications, you can try different communication methods like documenting something in video and writing it down different learning styles can retain that information.

Frequency is another big point in communication. Doing it once is not enough. For instance, as part of their sales process, Marquis’ agency details what a customer can expect signing on with them from onboarding to the first few weeks. This is reiterated in the proposal and also in the kickoff meeting. It is repeated over and over again. That information will always be available for them in their Slack channels and in an email sent by the agency.

This was all implemented because they got feedback that clients felt in the dark about many things. There’s so much you can improve if you for feedback and are willing to listen to your clients. As the leader, it is your responsibility to ensure it is taken seriously and implement steps to make sure that future clients don’t run into the same issues.

Set Non-Negotiable Blocks to Reclaim Your Time

Marquis is a big fan of time blocking and getting time in the business to focus on what you need to do and what the business needs you to do to continue to grow effectively. He has non-negotiable blocks in his calendar to work on sales calls and set expectations for the next day.

It is very important you respect the time you block off. You set that time apart to grow your business and work on things that you otherwise wouldn’t. As an agency owner, you can find sometimes you’ve scheduled back-to-back meetings all day. That is the time you’re giving away for free to everyone else. This is how you get burned out, overwhelmed, and frustrated. You wake up one day and find you hate the job you've created for yourself. This is why your priority should be setting up systems to work on yourself and your goals with the agency.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you have 1-2 big clients making up most of your revenue? Is the majority of your agency's livelihood tied to just one major account? Riding the wave of a super client can be nice while it lasts but when the client leaves you will be forced to make some difficult decisions, just like today's guest. The choices are to shut down the agency or rebuild and hope for the best. Learn what he did to get through this predicament twice and how he protects his agency from it ever happening again.

Andrew Greenstein is the co-founder and Co-CEO of SF AppWorks a digital agency dedicated to exploring and harnessing new technology. With 10 years in the business with his current agency, Andrew recalls a few instances where they’d been on the precipice looking down and have managed to rebuild. In this episode, Andrew talks about ways to avoid this happening to your agency and the systems he has in place to avoid it happening to him agency again.

In this interview, we’ll discuss:

• Falling into the trap of having a “Super Client.”
• Buying your agency more time to work things out.
• Proactively preventing the super client trap.

Sponsors and Resources

E2M 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.

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Falling into the Super Client Trap

In 2008, Andrew’s first company created a music platform that grew and got to partner with MySpace before having to shut down and start over. The plan was to assemble a team of developers and designers build websites and apps for other companies. The idea was to use funds from that company to build another startup. That never happened and over ten years later that agency turned out to be their most successful startup.

In their first few years with the agency, they needed a foundational client to get things going. They that client by helping one of his friends build a marathon training app. Of course, they had other clients and made several other websites but this client accounted for most of their revenue. Once the marathon app failed to secure another round of funding and shut the project down, they were left desperately looking for a client that could replace them.

Riding the Wave and Forgetting to Develop Your Sales and Marketing

Andrew and his partner decided to go back to their day jobs and kept working on the agency in their free time. They did eventually get other clients about a year later and one of them became their next super client. They poured everything into working with this client while working alongside a larger agency. Over the next four years, they grew their team from two developers to thirty. They had enough cash flow to invest in the agency, grow their team, grow their services, and explore new areas. Life was good and they felt everything was falling into place.

However, they were growing on the back of one super client and, therefore, were not developing their own sales and marketing. Once that client shut down the project, they were left without a stable income.

When you’re riding the wave, everything is exciting and it seems like nothing can go wrong. We see this type of thing happen all the time. Maybe the agency owner is just too busy with all the growth and doesn’t consider “maybe we have too much revenue tied to this client”.

Like Andrew, you may be aware your agency is too reliant on a client but there’s just no sense of urgency to remedy the situation. However, when the moment came, he wondered why he didn’t prepare more aggressively. In the battle between urgent and important work, they had spent all their time working on the urgent and not enough on the critical task of diversifying.

Buying Yourself Time So Things Can Work Themselves Out

History repeated itself and the first decision they needed to make was what to do with a decent-sized amount of money they had in the bank. Should they just shut down the agency and walk away with the profit? Or take that money, reinvest it, and hope it worked out?

Because they loved their team, they decided to try to figure it out and came up with two strategies to keep the agency alive:

1. First, they really needed to work on marketing and sales to attract and convert new clients as quickly as possible. They hired an agency to help them with sales outreach.
2. They also decided to use their human resources to build an internal startup to go the investor route after six months.

Neither of these plans worked.

In retrospect, Andrew sees that sales outreach is a mixed bag and an aggressive way to get clients. If you happen to get some clients with the right message at the right time, it can work. One introduction can lead to a long relationship, especially in the software business. However, it takes a time to build it.

In the end, what did work was a hybrid of both plans. They needed to buy time to let things happen. The longer you can stay alive, the longer you give yourself the opportunity for something to happen.

For example, people that left the super client's failed project ended up in new jobs and started calling on them. Indirectly one failed super client led them to four or five new clients. Since they had kept the team on standby, they had the resources ready and could reengage to build new relationships.

Should You Let People Go When Cash Flow is Tight?

Andrew says logically, the right call in a super client trap is laying off part of your team. Keeping his staff on standby waiting for something else to come up was definitely a coin flip. Fortunately, it happened to work out. However, he advises anyone in the same position to reduce their team.

It’s hard, but it’s usually better for your team in the long run so they don’t lose other opportunities. He learned this the hard way when he waited too long to make the right decision and let some people go. The experience has helped him reshape his values of communication and transparency.

Proactively Preventing the Super Client Trap

Today SF Appworks is more proactive about preventing the super client trap. They look at their clients, revenue, and expected contract end dates every week and strategize around it. They meet and focused on risks, biggest client that is most likely to end their contract, and the second largest client that may grow.

When they do lose a client they immediately consider how many more clients they can afford to lose and become proactive in figuring out solutions.

Admid growth, like everyone the pandemic caused more strain on the agency. They ended up waiting it out and eventually began to grow again.

Their approach now is to consider: “Can we buy ourselves more time?”
"What do I need to prepare for next?”
“Are we giving enough time to the problem?”

Their philosophy revolves around being patient and allowing enough time to figure out the situation at hand.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you have issues with employee retention? Are wondering what you can do to make your agency a more attractive place to work so you stop losing employees to the competition? Today’s guest has made retention a huge focus in the development of his agency. So much so that he’s only lost two employees to the competition in the past three years. He now shares how he realized it's all about focusing on the right things. He's sharing some of the most important areas you should be working to improve employee retention.

Rob Gaedtke is the president and CEO of KPS3, a digital agency that builds brands and creates technology that moves people to action. They are now about 64 full-time employees with roughly $9 million in revenue and continually work on ways to take care of their most valuable resource, their employees. In this conversation, Rob shares some of the important questions you should be asking to reduce yourself in order to employee turnover.

In this episode, we’ll discuss:

• 4 steps to help you stop losing employees.
• Keeping track of employee progress and being open to change.
• How to empower employees and encourage their growth.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

Learning to Value Your Most Valuable Asset

As an agency, your employees are your most valuable resource. After all, we are in the service industry and people are our bread and butter. So much so that keeping that talent could be even more important than keeping clients. If you manage to keep the right employees, they’ll keep the clients. Likewise, if your employees are happy, your clients will also be happy.

Rob and his team have been focusing on this as the agency grows. What they found is that if you’re focusing on the right things you have a better chance of retaining your staff.

For instance, are you losing employees to other agencies or to different passions? Are you filling the ranks with your own team or are you having to look outside the agency? These are important questions that could lead to why you keep losing talent.

4 Steps to Help You Stop Losing Employees to Other Agencies

Making big statements like "employees are our most valuable asset" sound like an empty platitude unless you’re making the right moves to show this appreciation.

At Rob’s agency, they took these 4 steps to stop losing employees:

1. Be in it for the right reason. Your goal really has to be the development of the employee as a person, even if it comes to losing them.
2. Have financial transparency. Everybody can see the agency’s full financial statement. They know how what it costs to run the agency and how much profit goes back to the owners and employees.
3. Have an open door policy. There’s this idea that it's bad when someone leaves you to go do something. Rob believes we need to break that connotation. When an employee leaves, they’re not doing it to hurt you. They’re doing it because it’s what's best for them. It’s easy to take it personally, but if you step back it opens the door to part on good terms and to have them even returning at some point if it makes sense.
4. Encourage personal growth. A lot of employees may leave a job because they want a promotion. But growth opportunities should be available for them within your agency. Rob also believes if somebody wants to grow in an area where your agency doesn’t have business in, you could give them the opportunity to develop those skills. Even if it’s half-price or at a loss. If you put it in the education bucket, it’s benefitting an employee. The same goes for a different industry that the agency doesn’t normally work in.

Keeping Track of Employee Progress and Being Open to Change

Rob’s agency has strategic growth initiatives to get employees off on the right foot. They have mandatory reviews that occur after someone's first 30 days, 60 days, and 90 days. After that, the review meetings happen at the six-month mark and eventually become annual. The idea is to get a fruitful discussion going beginning the first month and then get more in-depth as time passes and more goals are met.

On top of that, everybody is encouraged to have weekly one-on-one discussions. A lot of the discussions are focused on what each employee needs and what the agency can do to support their goals.

Also, the agency is open-minded to employees changing departments if they are not enjoying the work. A department change is very important and something you can only ever address if your manager is tracking your progress.

Encouraging and Empowering Agency Leaders

When an agency is growing, you have to make sure the leaders grow with it. Every worker needs to feel challenged, respected and empowered. You can have a fun agency where everyone is having a great time -- but smart people also want to be pushed and challenged. If you’re micromanaging and they don’t feel empowered, you’ll lose them.

At Rob’s agency, they give people the opportunity to grow and manage people. If someone expresses an interest in growing support that by including them in their management and leadership training. Rob also encourages people to talk about their goals and where they want to be.

You need to promote it on one side and on the other make sure it’s actually available and allow people the opportunity to grow.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see what you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you tracking your agency’s gross margin? How about the EBITDA? KPIs are super important and something every agency owner should be aware of. But which KPIs you track depends on the priorities you set for the agency. Do you want to grow fast? Are you planning to sell soon? Having a clear vision and goals makes a difference when it comes to what you're measuring. Today’s guest shares the most important KPIs he believes all agencies should be keeping track of and what you can do if some of them dip below where they should be.

Jon Morris is the CEO of Ramsay Innovations, a company dedicated to helping agencies get greater insights out of their finances so they can grow at a faster rate. In his area of specialty, Jon is used to advising companies on ways to improve their finances and now shares some of that useful insight.

In this interview, we’ll discuss:

• The most important KPIs for agencies.
• What to spend on sales and marketing.
• Revenue as a percentage of client base.
• Dos and Don’ts of using a line of credit.

Sponsors and Resources

E2M 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.

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How a Minority Investment Can Help Growth

Jon started working from his home in 2004 in an agency called Rise Interactive. Several years later, he took a minority investment and grew it into one of the largest independent digital agencies, managing about $250 million in media before he sold it.

When he took the minority investment, his agency’s fees were around $20 million. At the time, he wanted to invest more in sales and marketing. Their mission as an agency was to be the leader in leveraging data to help brands make smarter marketing decisions. However, the reality is that if you line up 50 agencies they would all say that they are data-driven. They had to answer why they were more data-driven than the rest.

$20 million in fees may seem like quite a lot. However, the cost of building technology and putting together a sizeable team is a major investment. Looking back, he knows taking the minority investment was the best move because back then he just didn’t have the capital for the technological investments.

When you build technology you need a fully dedicated team that eats, sleeps, and dreams the product. Every agency has a very standard leadership structure, with a client service team, a sales a marketing team, and operations and finance teams.

In their case, they added another pillar that was product development and strategy, which included:

• UX developers
• Engineers
• Product developers
• Development Operators
• Quality Assurance

The Most Important KPIs for a Digital Agency

For Jon, the most important KPI for an agency is gross margin, which is different from adjusted gross income. The first thing you need to do to get to your gross margin is to know your revenue. He breaks revenue into two categories: gross revenue and net revenue.

Having worked with many agencies by now, Jon knows it’s not very easy getting these numbers. Often times it’s a matter of getting the data clean to figure out net revenue vs. gross revenue. A lot of agencies are very focused on payroll divided by revenue as a ratio. However, payroll generally includes everything from sales and marketing to operations.

What you want to do is get to your costs of service. To do that, you need to go through every single line item to determine whether or not it is dedicated to client work. If you have an employee that is dedicated to a client’s paid search campaign, then that’s going to be a cost of service. On the contrary, an employee dedicated to HR is not a cost of service.

On average, his clients are at a 40% gross margin when they start working with his agency and their goal is to get them to 50%.

Why Cost of Service is the Most Important KPI?

If you are selling something for $1 million and you get $500,000 in fees and $500,000 in gross margin, then you now have $500,000 to put back into your business or in your pocket.

However, if that same $1 million is costing you $800,000, you only have $200,000 to invest in your business.

Therefore, you can have two agencies doing the exact same thing both around $5 million in net revenue. In the end, one made a profit of $1.5 million and one lost a few hundred thousand dollars. The difference is their gross margin.

Percentage of Revenue Spent on Sales and Marketing

The next metric you should be focusing on is what percentage of net revenue you’re spending on sales and marketing. Again, divide your payroll to group sales and marketing people into "sales and marketing costs". In theory, if you spend on sales and marketing you have a better chance of growing than if you don't.

What you're willing to spend on sales and marketing directly impacts your growth:

• Spend 0 and 5% of revenue on sales and marketing says you’re not that serious about growth.
• If you’re between 5% to 10% spending, you’re where everyone else is in terms of the importance of growth.
• Spending more than 10% means you’re very serious about growth.

Of course, it’s fine if your focus right now is not on growth. For instance, one of Jon’s clients is focused on increasing their revenue per employee and is interested in growing moderately. It will depend on your priorities. Some agency owners may just want to optimize their gross revenue to maintain their lifestyle business.

On the other hand, some of Jon’s clients don't spend anything on sales or marketing. To him, it was unbelievable that an agency could believe so little in marketing.

Where Should Your EBITDA Be?

The golden rule for agencies is to have 20% topline growth and 20% EBITDA. If you’re planning to sell to a holding company, they’ll expect you to have 20% EBITDA.

However, Jon has a different philosophy. If you can make a positive investment in your agency it’s okay for you to have a lower EBITDA.

If you hire a salesperson who brings in a client that ends up being a retained relationship, that’s fine, as long as you measure the percentages and outcome you’re looking to make. Keep in mind, if you want to build a big agency without outside capital, lowering your EBITDA target will give you more money to invest in the business.

Bottom line, your business is the best investment you can make.

How Much Cash Flow Should Your Agency Have?

Jon believes everyone should have two bank accounts at minimum, three if you manage media.

• Operating Account: this is the one you’ll use to pay your employees, taxes, and bills. You should always have 1 month of payroll and 35% of your quarterly profits in this account. It should be enough to pay your bills at any given moment in time.
• Savings Account: Here you should have your monthly overhead. Double the sum of all your expenses (like payroll, sales and marketing, traveling, and entertainment x 2). Rule of thumb for savings is two months and could be up to six months if 1-2 clients make up most of your revenue or if you are project-based.
• Media Account: This is not your money. You have a fiduciary responsibility to make sure that money is completely separated and you’re not using it for anything other than the client ad spend.

Looking at Your Revenue in Terms of Percentage of Each Client

How much of your revenue do your top five clients represent? For instance, one of Jon’s clients has 123 clients, and the top 18 account for half their revenue. It's important to understand your agency's client concentration and strategize to reduce it.

Whenever Jon won a big account that became a large percentage of their evenue, he increased his sales and marketing to go win the next big account. He was really, understandably, scared of being dependent on any single customer.

Dos and Don’ts of Credit Lines

Jon and Jason agree if you have a positive 12-month trailing EBITDA, you should get a line of credit. However, you shouldn’t use it to use it fuel the growth of your business but rather for cash management purposes.

If you have a big account like Procter and Gamble – known to pay in a net 120 days – you may want to use a line of credit to make payroll. It may be an account you really want but you can’t negotiate better payment terms and that’s fine. Having a line of credit is important in those scenarios. Where you shouldn’t use it is to invest to grow your business.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you struggle with educating clients on relevant messaging? Great messaging addresses the audience's emotional connection with an issue and sometimes that means it's not all about the product. Educating clients on looking beyond their product can be tricky. However, once they understand it they'll see significant growth. Today’s guest increased his client's topline revenue from $35 million to $230 million in just 18 months by understanding who their message was aimed at. For his second podcast appearance, he discusses how he fell in love with helping challenger brands and how he helps them rise above the plateau to success. He also shares 2 mistakes you might be making that are costing you money.

Bill Harper is the founder of WM Harper, a strategic branding agency focused on brands in need of transformation. His team helps companies that have hit a plateau. These are challenger brands that haven’t quite hit their potential goal and need help figuring out how to get to the next level.

In this episode, we’ll discuss:

• Why clients need to understand it's not always about the product.
• Building an agency machine that runs itself.
• 2 Mistakes are a big waste of time and money.

 

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

 

Helping Brands Understand Relevant Messaging

Bill has worked with many exciting companies in his career but BMB&B is probably where he learned the most. There, he got to work with big-name brands and got inspired to start his own agency. He has built several businesses from being a consultant to running an agency. However, as he puts it, once you’ve been bitten by the ownership bug it’s practically impossible to go back.

Working with a company like Blockbuster, Bill realized sometimes the agency does not have a lot of influence to change big brands. Typically, this type of company is very focused on maintaining its position in the market. That is what keeps them up at night. However, Bill fell in love with helping brands with billion-dollar potential but stuck in a multimillion-dollar universe.

These brands just need a push to go from an awkward stage to center stage. Most of the time, they have similar strategies to the bigger players but they haven’t figured out how to implement them yet. If the client is willing to embrace a change in the way that they think about relevant messaging, they help them create a path forward that makes sense and helps them scale.

How to Get 3X Top Line Revenue in 18 Months for Your Client

Part of Bill’s journey with clients is getting them to understand what they want is people’s attention. Sometimes is not really about the product, which can be hard for clients to accept. It’s not about listing the new features and talking about the tech. That is what everyone else is doing. When you’re doing research, look for the thing people engage with emotionally.

For instance, his agency once made an ad for Delsey luggage where they removed all the technical details about the product and focused on being lightweight. The emotional connection was in the audience’s frustration with travel. It had changed from being something exciting into being inconvenient. The idea was to address this existing frustration by focusing on how the product leaves the consumer in a better emotional state. Once you find what consumers are either striving toward or moving away from then you have something to play with. Few brands have logged into that insight, but once they do, their growth is significant.

Another great success came when his agency helped the Breast Cancer Index achieve sixfold growth of its top-line revenue. The client originally asked them to increase their top-line revenue from $35 million to $250 million within 3 years. They exceeded expectations mainly by understanding who they needed to address. In the case of this hyper-specific test, the way to get oncologists’ attention was by giving patients the information they need to begin the conversation. With a combined strategy of influencer marketing, digital marketing, trade shows, and event marketing, they were able to reach $230 million in just 18 months.

Building an Agency Machine That Can Run Itself

What Bill recalls from his first few experiences as an agency owner is valuing the work when he should have been thinking about the value of the agency itself. With time, he learned ultimately it is about making sure the owner is NOT involved in every aspect of the business. You need to build an agency machine that can run independently from you. This requires a solid understanding of who you’re working with and a solid process for hiring the right people. That transition, which of course did not happen overnight, made the biggest change.

Learning how other people view the agency’s value was instrumental. Bill realized the most important things to him were not necessarily important to everybody. For instance, in the early stages, he did not realize the importance of not being involved in the business.

When you start an agency, you wear all the hats. And if you do it well, by some point you give them all away. So many leaders feel the need to be involved, as though the agency will go off the rails without them. However, this is indicative of someone who is just trying to protect a lifestyle rather than grow a business.

Hiring for Values to Build a Great Agency Culture

Bill used to hire almost exclusively based on talent but was struck by how hard it was to create agency culture. Most recently, he shifted to hiring for personal values. Of course, talent is not disregarded, but values are the deciding factor. He no longer expects people to find joy in his dream. He prefers to hire someone who is chasing their own dream, as long the agency fits into it.

Furthermore, he watches out for people who are running from something and looks for the ones who are running toward something. It’s more about their goals than about their history at other companies. He understands if someone wants to use their time at his agency to learn and someday have an agency of their own. Knowing this gives him an understanding of how they value their time there.

Another change he introduced is letting employees write their own development plans for the year. He used to do it himself but this way they get to define the things that excite them the most. In doing that, he finds out what’s important to each employee and what they dislike about their job.

Now that he focuses on bringing in people who value the same things, building a great culture is no longer a hard task, even in these times of virtual workplaces.

2 Common Mistakes That Are a Waste of Money

1. Buying growth - There is a misconception that you can continuously buy growth. People have become so fixated on buying their way to success but there's no rationale behind it. Trackability gives people a false sense of security, which has manifested in everyone's lack of patience. We all want immediate results. However, trying to AB test your way to success will most likely lead you to unnecessary spending.
2. Adopting new tech - Entrepreneurs commonly race for the newest thing whether or not it makes sense for your brand. The truth is you don’t have to be on every single social media platform. You just need to be present where your audience congregates most. If you build a following on just two platforms where your audience is, you’re already ahead of the competition!

At the end of the day, it all comes back to the metrics of the company. Once you take the eye off that ball because you’re fixated on the idea of buying more, you may as well be burning your money. Bill’s advice is “don’t be dazzled by the movement, be dazzled by the achievement”.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you live by your agency’s core values? Have you spent time defining those values? Do you communicate them with your team? Many accidental agency owners haven't however it is a critical component of growing your business. For some, it's a one-time exercise that is just as quickly forgotten. Your values are the guiding principles leading the way your agency team operates. Today’s guest shares how he built a value-based agency, how these 5 core values affect everything his team does, and the biggest challenges he has faced while scaling his agency.

Will Roberts is the founder WebBox, a digital marketing and web design agency that collaborates with clients to create unforgettable experiences and campaigns. His agency strives to provide a relentlessly responsive service, which is one of its core values. Will shares why each of those values is an important pillar of how the agency operates and how he has chosen to celebrate his team’s small victories.

In this interview, we’ll discuss:

• Building an agency based on 5 core values.
• How to solve your recruitment woes.
• Learning to celebrate small victories.

Sponsors and Resources

E2M 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.

 

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Being the Change You Want to See in the Agency World

Like many agency owners, Will started doing some freelance work for some friends and family to gain experience. He got paid £75 for his first website – which he laughs about now. He quickly learned working for friends and family was not the best strategy, but thankfully he started getting calls from local businesses wanting his services. It was the first step toward growth.

He was still halfway through university in 2008 when, after a few interactions with agencies, he became interested in the industry. One of the big problems he saw was that agencies didn’t really care about their clients. Regardless, he knew there was potential for someone willing to raise the game by introducing some changes.

Building a Digital Agency Guided By Core Values

Plastering your values on your meeting room wall and actually living those values are very different things. Will had the opportunity to see how some agencies worked back when he was in college. He saw many things that could be improved and decided to build something different. He noticed a lack of direction resulting in poor client service. Employees were often not really aware of or held accountable to the company’s core values.

For his part, Will has worked to build a value-based agency. It is an important part of who they are as an agency. His team is even encouraged to bring up if they ever feel the agency is doing something that is contrary to these values. Everything they do goes through five core values that were part of creating an agency that was focused on users and clients.

5 Core Values that Steer Agency Growth

1. Collaboratively Creative. They try to not go into meetings with an attitude of “it’s our way of the highway”. Instead, they open the conversation with their intent to collaborate. Mutual respect is key - clients know their niche really well and his team knows UX. Bringing those two together ensures better results.
2. BrutallyTransparent. As an agency, you have information that can make or break a client’s website or online presence. Some agencies may choose to withhold that information. However, WebBox chooses to be transparent. Many times what a client wants is not necessarily what they need. Getting them to understand this leads to difficult conversations. This transparency also goes through to their accounts. They share timesheets with clients so they know how their resources are being spent.
3. Seriously Skilled. WebBox brings on highly skilled specialists only. This is true for both clients and team members, who are actively encouraged to set time to train and get better at what they do.
4. Proactively Ambitious. As an agency, they want to be ambitious and keep growing, but they are also ambitious for their clients. Client growth is also their victory as an agency.
5. Relentlessly Responsive. It is not unusual to wait days and even a week to get a response from an agency. Will decided his agency would make it a priority to get back to clients quickly, within the hour. They believe if they’re going to partner with clients, then they’re going to be there when they need them.

Challenges He Has Managed to Overcome While Growing His Business

1. Keeping their sales pipeline full. An important part of scaling your agency is putting systems in place to keep your pipeline full. If your agency is still 100% project-based, remember your pipeline can be a risk. This was the case at Will’s agency, so six years ago they introduced retainers and also added PPC management to their services. This way, they have balanced their income to a point where 60% comes from project-based and 40% from recurring revenue. This move has really helped them grow their team and also provided a solid base.
2. Finding the right people to join the team. His agency has struggled with recruitment as they grew and the team couldn’t keep up with the demand. Since then he has built a recruitment funnel, a very important step in any agency’s journey. After you build a sales system, it’s time to put together the right team to continue to scale your agency. The search for this team is a continuous effort, so you should always be recruiting.
3. Finding time to work on the business. Will has been able to carve out some time each day to work on the agency rather than in it. Most agency owners will have a hard time getting to this point. You may think your responsibility is being the hardest working member of the team. However, being the first to get to the office and the last one to leave will only result in one thing: burnout. Will now sets apart half an hour in the morning where he focuses solely on strategies for the business. It’s all about figuring out time rules to create to keep yourself accountable.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you struggling with client acquisition? Do you offer a ton of services but still can't scale? Wonder what else you could be doing to get the attention of the right clients? In today’s episode, we’ll learn how an agency went from getting most of its business from cold emails to evolving its acquisition model. Our guest also shares the mistakes he made in his first two agencies which led to massive success the third time around and a merger deal which led to more growth.

Chase Dimond is a partner at Structured Agency, a highly-collaborative eCommerce marketing agency. With three agencies under his belt, Chase now reflects on past mistakes and shares how he grew this agency to a team of 100 people working from 6 countries working with brands doing 7-9 figures online.

In this interview, we’ll discuss:

• Mistakes and learning what not to do with your agency.
• 3 challenges of an agency merger.
• 3 ways to acquire new agency business.
• Tips for growing a following on Twitter.

Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

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Learning Hard Lessons on What Not to Do to Grow a Digital Agency

Chase formed his first agency as a side gig hustle from his full-time job out of college. As a kid who, he admits, thought he knew more than he actually did. He didn’t have case studies but he was lucky to purchase a dating website for Bernie Sanders supporters that ended up going viral. It was the best way to attract clients and he learned a lot from the experience. They quickly scaled that agency to $30K per month on the side of their full-time jobs, but offering 8 different services as a side gig wasn't sustainable. The partners disbanded the agency and focused on their full-time jobs.

A couple of years later, he gave it another try at creating an agency with some friends. Admittedly the lessons learned the first time didn't stick. This time, they got it to about $80K/month but went their separate ways after a falling out.

From that experience, he knew he wanted to start an agency with a singular focus. Email had been at the core of everything since Chase's first business, so in 2018 he started an email marketing agency for eCommerce brands. They later merged with a paid social agency in 2020 servicing similar clients so now they can offer both customer retention and acquisition to their clients.

Looking back, he can see that in the first two agencies he made the mistake of trying to offer too many services right away. It was impossible to staff and predict demand for each offering. This time around he's been successful because they focused on doing one service well and then merged with another agency offering a tangential service.

3 Challenges with a Digital Agency Merger

Recently, his agency merged with another agency that had been a close referral partner for many years. They actually helped his agency early on with getting their first clients. They were already familiar with each other and offer complimentary services which naturally went together. They realized with more agencies specializing, brands have 8-12 agencies. They decided it would be best to bring together two core services under one roof and one P&L to keep servicing the same clients.

There are still a few things lingering even though it's been 2 years since the merger:

1. Establishing a united brand. They haven’t figured out how to unite under one name. Clients know and refer to them by their separate names, making it difficult to establish a united identity. However, they might not have to. In Jason's experience, he prefers keeping the agency’s name and identity so clients don’t get confused.
2. Cross-selling services is harder than expected. They used to sell people on an email campaign, which is a very simple service to explain. But now they have to sell clients on paid ads as well, which is more complex and has a lot of moving parts. Figuring out how to cross-sell and educate clients is really important. Without it, the agency loses opportunities because your clients don’t know or understand the services.
3. Realizing shared costs and infrastructure. They still have operations on each side and haven’t really crossed the chasm of understanding the other person’s business model, how to offer their services, and how they differ.

3 Strategies to Acquiring New Agency Business 

1. Building the Founders' Personal Brand

In 2018, a lot of their business came from cold emails. Now they have evolved into content marketing, strategic partners, and developing the founders' personal brands. In this way they are focused on podcasts interviews, speaking at events, and creating out content to attract clients.

2. White Labeling

One of the things they did early on is become a white-label partner for big agencies. Big agencies not specialized in email marketing would bring them in as a partner agency. Many are not willing to be a white-label partner for other businesses, but it has been a really great way to build case studies.

3. Strategic Partnerships

Another big source of business are partnerships, which came in three shapes: tech partners, influencers, and other agencies. Tech partners, like Klaviyo, work best when partnering with a fast-growing tech brand. Another way to gain authority is by partnering with other personal brands or influencers within your client niche. Lastly, is other agencies. The easiest way to build your agency in the very beginning is to get in bed with other agencies and have them white label you. The key is finding the right partner who accepts your agency and its processes without .

Tips for Growing Your Following on Twitter

Chase now focuses on developing his brand on Twitter, LinkedIn, and short-form video. He has between 70K-80K followers on Twitter and is getting about 3 million impressions every single month on his content. For him, growing on Twitter is all about:

• Consistency: tweeting about four times a day.
• Threads: they take a lot of time to plan and you really have to know how to make them hook audiences and keep people interested. But they work wonderfully once you do.
• Distribution: getting the right people to comment, like, and retweet your content.

Once he had that in place, Chase also started to run ads targeted at his followers with relevant content he wanted them to see, like his threads. So he’ll use ads to retarget his own content to people. He’s also started to build a network of specific pages. For example, he has “email of the day” thread, where he shares screenshots of emails he likes.

Because Twitter is his biggest platform, any content that works there gets repurposed for other platforms. For example, if one of his tweets is a hit, it will go on his IG and LI. For the most shared tweets, he’ll do a video later on.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Have you considered creating a course to attract clients? How about having so much business you need to start a waitlist? Creating a course is one way to pour your knowledge and experience into content that gains interest in your agency services. Today’s show guest started making courses and offering mentorship which eventually led to a mastermind, where clients and potential clients share ideas and experiences. She's sharing how this positive for her agency led to having a waitlist of clients wanting to work with them.

Katie Wight is the founder and CEO of KWContent, a social media marketing agency specializing in growing audiences, engaging consumers, and amplifying clients’ impact through their best-in-class content and social media strategy. Recently, Katie decided to offer courses where brands get access to her agency’s frameworks and methodologies. Today, she shares the success this move turned out to be for her agency.

In this interview, we’ll talk about:

• Toxic leadership that holds back the team.
• Generating so many leads you can pick and choose clients.
• Developing your own client community or mastermind.
• The biggest lie about agency growth.

 

Sponsors and Resources

E2M 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.

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Toxic Leadership That Holds Back the Team

After a great experience in her first job, Katie worked for several months at a company where the toxic work environment fostered by the leadership led to very high turnover rates. At first, she was very excited to work with them. However, she slowly realized they didn’t necessarily live their external company values and mission. This was an immediate turnoff for someone who really values company culture. Additionally, she went from having flexible work hours to having to adhere to a strict work schedule.

Lack of alignment and a roadmap makes it really hard to delegate tasks. It eventually became an obstacle when Katie was setting up the company’s content strategy and growing the brand on social media. Unfortunately, this had been previously handled by the founder, who did not provide proper direction. It was a situation where the company leader was not ready to delegate control of the company’s social media. Without this support, she just couldn’t do her job properly.

As agency owner, most of us aren't prepared to be good leaders from the start. It's not something that comes instinctively to most, however, stepping down from certain tasks is a necessary part of your agency’s growth. In cases like this, failing to do so turned the owner into the problem. Why are so many amazing brands terrible places to work? It all comes back to leadership.

Following this experience, Katie did the math on how what it would take replace her income. And suddenly, she had started an agency.

Generating So Many Leads You Can Pick and Choose Clients

Back in 2019, Katie’s agency reached $500K in revenue and she started delegating some of her work. She knew she needed to systemize everything so she spent time and resources building that out. If you’ve gone through this process with your agency, you know that systemizing your creative process is no easy feat but it was just what needed done at that point.

By the time the pandemic hit in 2020, she had a very small team and no "essential brands" as clients that could keep functioning during the lockdowns. It was a scary time but it became clear she had to lean into the educational component as a pivot for her agency. After spending so much time systemizing her process, she was ready. It was perfect timing since a lot of smaller brands were trying to figure out how to pivot online.

The agency's first course offering was a very comprehensive view of the purpose of social media marketing: what it’s meant to do, how to systemize it, and align it to your goals.

It helped a lot of clients understand what they needed to focus on and what work they could stop doing. Some of them finished the course and asked for more or even mentorships in specific areas. Yet others wanted to hire the agency for their services.

This was game-changing for Katie's agency because it brought a lot of business to the agency.  While they used to pay for leads, now they have a waitlist for calls and scan the list of companies to pick and choose who they want to work.

Offering Mentorship and a Client Mastermind for Additional Growth

The first year of the course went really well and it impacted their sales, conversion rates, and overall business. Everything seemed to be working and attendees were asking for more. They also learned a lot about who they were capable to advise and the kind of work they most enjoyed doing.

It was clear, following the course people wanted to work with KW Content. And they were being asked for more than just social media. A lot of people on her team had worked for big brands that had gotten to the level where their clients wanted to go. This experience established authority within her team and they were confident that they could advise clients on growth. The next natural step was forming a mastermind.

A mastermind is an opportunity for your clients to talk to each other and share what’s working for them. If you can get them together as an added bonus of working with you, it can be beneficial for all. Also, by just connecting people you are almost ensuring your clients recommend your services to others.

The Biggest Lie about Agency Business Growth

For the first couple of years of the course, Katie and her team just tried to deliver everything clients wanted. Because of this, they ended up burnt out. After working themselves to exhaustion and needing a break, Katie learned the importance of measuring happiness as an important KPI.

The biggest lie about business growth is the more you do the faster you’ll grow. It used to be "hustle harder, " right?  Instead, Katie realized her agency has continued growing without being IN everything. What she recommends for agency owners feeling burned out right now is to never bite off more than they can chew. It may sound like a crazy thing to say to entrepreneurs, but the best advice for her is to find something you do very well and stay focused on that.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you too involved in your agency’s operations? Too stuck working IN the business to work ON the business? It's time to fire yourself from some of operations tasks and increase agency valuation. Removing yourself from daily operations is a great way to prepare your agency for an eventual sale and increase its valuation when the time comes. Start by identifying tasks you don't like as well as the ones someone else could do much better.

Tom Foster is the founder of Foster Web Marketing, a digital agency that helps doctors and lawyers get in front of their ideal customers. Clients usually come to them to build their websites, but many choose to also have them handle aspects like website optimization and content creation. After transforming to a fully virtual model, it took an acquisition offer for Tom to realize he needed to change some things in order to increase its value.

In this interview, we’ll discuss:

• Preparing your agency for a future sale.
• The different approaches to sale.
• Firing yourself from your agency tasks.

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

What's your agency's valuation? Get the formula here.

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

Are You the One Bringing Down Your Agency's Valuation?

Tom originally entered the world of technology to focus on sales and marketing in 1991 after serving a six-year tour in the Marines. Right after the Marines, he went to work in software sales doing cold calls, fax blasts, and selling translation software. He ended up being very successful early on and got into the software business in the floppy disc era.

After forming his own agency, Foster Web Marketing, Tom started working on an all-in-one solution SaaS for website building. Creating his own software was a big undertaking, but there weren’t as many options back then. The platform, called DSS, continues to be part of his agency’s main offering. The platform offers CMS, CRM, lead management system and SEO tool, social media tools. Everything you’ll need for DIY digital marketing.

Recently, he received an offer to sell his agency. Although it was very flattering the time just wasn’t right. However, it helped him realize he needed to fix some things to increase the agency’s value to where he knew it could be. The most noticeable problem was that Tom was involved in everything. As the agency’s visionary, he knew he needed to fire himself that were not the most effective ways to spend his time.

Try a Different Approaches to Grow Agency Sales

For Tom, constant communication is the most important aspect of training someone in a new task in your agency. Of course, he also likes to hire people who bring their own experience. He recently hired someone with a lot of experience in a different area of sales. There are different types of sales people and different approaches to the sale:

• Hunters find prospects and generate interest
• Trappers close the sale

Tom used to exclusively hire trappers but now he wants a more well-rounded sales team. Rather than just continuing what he has done over the years,  he's looking for a new or different approach. He understand what he's been doing has gotten the agency where it is. However, in order to grow it's important to hire someone to get them to the next level.

Fire Yourself From Agency Operations

When he first started the agency, Tom coded, designed, wrote copy -- all the things! Recently, he has been delegating most of those tasks, or as he calls it, firing himself from his many jobs. He trusts his team to do a much better job. It wasn't easy at first, but he started by delegating any task he didn’t like and things he knew someone else could do better. He has a great agency team who he trusts and feels comfortable leaving the job to them.

You might be the person holding back your agency growth. Consider all the tasks you're doing. Which ones can be delegated? Which don't you like or aren't good at? Lean on your team and delegate outcomes. There are probably tasks you really enjoy doing and don’t want to let go of, and that’s fine. Tom still jumps into sales and marketing once in a while but acknowledges those can't be his focus while also focusing growing the agency.

Creating a Strong Agency Culture While Being Fully Virtual

When the pandemic started, Tom's office had a staff of 30. Like many businesses in the light of Covid-19, they swiftly moved to a remote team overnight and got stuck paying rent for an empty office for two years. In the end, it worked out well because going virtual allowed them to become more efficient and effective. As a fully remote agency, Tom sources talent from different parts of the country. Expanding beyond geographic limits has allowed him to hire amazing talent. It has also allowed him to keep talent that decided to move away from the DC area after the pandemic.

That said, company culture is a very important element of any successful agency and Tom admits it’s really hard to do over Zoom. How do you inspire a remote team and maintain culture? Keep your staff content by creating a good work environment. It’s not just about giving them a raise, it's about treating them with respect and protecting them from abusive clients.

Tom also believes in creating bonding moments in a virtual environment. He encourages game nights and morning meetings with the entire staff, where managers go over the most important things that happened the day before and the agenda for the day. This is a way to keep the entire staff in the loop when it comes to what’s happening in the company.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Agency owners make important decisions every day. But, what are the most important decisions to grow your agency? How can you make sure you’re making the best ones for the agency? Simply put, the biggest, most important decisions are the ones that positively impact your agency in the long term. Those are the ones made with the future of your business and your employees in mind. Today’s repeat guest has run a successful agency for ten years and now shares why he believes agency leaders should focus on making 10 big decisions per year while sharing a few of his in 2022. He also tells us why CEOs should allow themselves to be bored in order to spike creativity.

Manish Dudharejia is the founder and president of E2M Solutions, a full-service white-label digital agency. His agency works as a trusted partner with agencies to scale their business behind the scenes. E2M has been serving agencies for 10 years and currently works with about 130 agencies across the U.S.

Reflecting on the agency’s 10 years in business, he now identifies the changes that would set his business on the path of growth.

In this episode, we’ll discuss:

• Why agency leaders should make 10 big decisions in a year.
• The yearly exercise to assess your past decisions.
• Why you shouldn’t fear boredom.

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How to Make the Big Decisions and Grow Your Agency

As an agency CEO, there are always a thousand things to do and many people depend on you to make the right call at any given moment. Manish believes that a CEO’s job is to make 10 big decisions every year and tries to live by this. His agency turns ten in 2022 and that adds up to a hundred BIG decisions made over the years.

Some of the most important decisions he has made led his agency to where they are right now. To him, being an observer and learning what not to do helped him build a successful agency right from the start.

Decision 1: What is the right leadership style for your agency team?

Manish started his career working at two companies where he learned how leaders should not treat their employees. He never felt like his well-being was a priority. One of the things that struck him the most was employees being micromanaged and not given room to grow. When it came time to form his agency, he asked himself “what’s something I always looked for in an employer?” He also thinks about these lessons when he’s making a decision as an employer and thinks about whether a decision would make sense to him if he were an employee.

Companies solely focused on growth and profit end up being terrible places to work and have subpar customer service. However, companies that strive to be either employee-focused or client-focused greatly benefit from this approach because they are not putting themselves first. In the end, Manish is building his agency as a combination of these two approaches. An agency with a humanized approach to customer service which prioritizes employees.

Decision 2: How do you manage employee satisfaction and retention?

Manish says he has no strict budget when it comes to spending on employees. Usually, business owners create budgets at the start of the year, but he prefers to not set a limit and spends as much as necessary. Manish views this type of spending as an investment rather than an expense. His philosophy is “let’s do what is needed”.

Decision 3: How do you show appreciation to your team?

He also pays particular attention to payroll by paying top-dollar in the industry and never late paying his 150 employees. He knows how important this is for employees and has greatly helped his agency with retention. Employees feel taken care of and he’s very proud of that.

Employees are also an important element in his decision-making. If you’re about to make a decision, you should ask yourself whether the result benefits everyone at the agency. Remember short-term decisions to save money will not have long-term effects. If it works for everyone, then it will have amazing results in the long run.

Early Agency Mistakes: Trying to Do Everything for Everyone

Within the first 3 years, his agency was seeing great success and started jumping into trying new technologies like mobile app development. Trying new technologies is not a bad move, of course, but trying everything dilutes your team's focus.

Decision 3: What are your agency's strengths?

Dabbling in too much diluted Manish's agency's profits, because the revenue generated in some areas was then put into developing these new services. They kept growing, but the profits weren’t there.

It was the information era and people got easily distracted by every new development. The moment there was new technology available, every agency wanted to be among the first to implement it into their services. Years later, this is still the case many times. There’s nothing wrong with wanting to be at the forefront of new industry developments. In fact, many times it is the only way to get ahead of the competition before the new space gets crowded. However, at some point, the novelty around these new technologies wears off, so rather than jumping from one technology to another, Manish prefers to focus on solving larger problems for his clients.

On the other hand, a way to continually try new things while also staying focused is to have an incubator division within the agency. Bottom-line, the key is to remain hyper-focused so you don’t dilute the work you’re doing.

Decision 4: What is your agency's CORE service offering?

Manish has concentrated his efforts on running an agency focused on one space -- white labeling to solve problems around customer service. When you’re starting an agency or any business you have a growth mindset. However, we often ignore the fact that, as the agency, the market also continues to grow.

With that in mind, Manish has set out to keep his agency hyper-focused on core services and in the niche of servicing only digital agencies. This has helped his agency achieve success and growth over the past ten years.

Decision 5: What can you learn from the past?

Many years ago, Manish started analyzing the prior year and taking a step back to assess how to improve its services and restructure its offering. One of the best decisions that came from those yearly meetings was productizing their service, which led to tremendous growth.

Doing this yearly exercise gives a clear idea of what’s working for your agency and what’s not. It also serves to trace the path of what to do for the following year.

In the agency business, we’re constantly looking forward to what’s next. Set aside some time to look back one year or even further in the past and realize what worked and what needs to change in your agency. You can implement this tactic in several areas. For instance, rather than just looking at new lead magnets, also look at old blog posts that did very well and think of ways to optimize that content and do similar posts.

Why Agency Leaders Need to Trust Their Gut

Manish is a quick decision-maker, so if he thinks a decision is the right one he acts on it right away. Some people stop themselves from making the right decision because they don’t haven't figured out the "how." Don't let this stop you from setting the right course for your agency.

The "how" is part of what you’ll figure out later on. At one point, he decided that, since his target audience was mostly in the US he should move there. It was a bold move, but he says it’s the best decision he’s made. He learned a lot, met a lot of people, and got a better understanding of how his clients think. He took those new experiences and has been working on improving his agency ever since.

Other than trusting your gut and making quick decisions, Manish recommends educating yourself as much as you can. He dedicates a lot of time to learning about human psychology and how the mind works. This has helped him a lot in making decisions in complex situations.

Entrepreneurs and Visionaries Should Not Fear Boredom

A wise agency owner makes sure there's always free time to do meaningful work. If you really want to grow your agency, make a list of the tasks you do and ask yourself “is this something that could be done by someone else?"  If the answer is yes, then start looking for that person. It's important to know when it's time to delegate, automate, or eliminate tasks to free up time for more significant work.

Many agency owners fear this point where they can have more free time for themselves because they fear boredom. Boredom is not bad. Boredom leads to creativity and creativity leads to productivity.  This creativity is vital for the role of a CEO in any company.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you searching for ways to stand out from your competition? Niching down is one way to do it, but that alone might not necessarily cut it when it comes to getting noticed. One school of thought drilling down even more in a technology or service vertical. And don’t underestimate how far genuine honesty and asking the right questions will take you when it comes to earning authority and trust.

Adam Pearce and Peter Gardner are the CVO and CEO of Blend Commerce, an e-commerce customer experience agency for Shopify businesses. Adam and Peter believe that Customer Experience (CX) is the cornerstone of both customer acquisition and long-term customer retention. They focus obsessively on improving clients’ CX pre-, during-, and post-purchase. They’ve been through some rocky years as they grew their agency but the real change began once they learned to see each others’ strengths and built a community of agency owners willing to help each other.

In this interview, we’ll discuss:

• Figuring out your agency’s direction and niche.
• Developing strategic partners and allies instead of competing.
• 4 tips to build client trust and stand out from the competition.

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

Tough Lessons About Working with an Agency Business Partner

Neither Adam nor Peter were working in e-commerce when they first met through their wives. They both had the idea of starting their own businesses and found the right vehicle when they learned about something called Shopify. Adam was a bit skeptical at first, but he joined Peter and they started their agency journey with Peter in charge of development while Adam handled marketing. Seven years later, they have grown from a team of three to 20 people.

They’ve seen some rocky times in their agency, of course. One thing they wish they would’ve learned sooner was understanding each other better. Failing to do so sooner was the root of most of their problems. They’d always been clear about what they wanted to achieve with the agency but they both had very different ideas about how to get there.

Adam is a very structured thinker and planner while Peter is more of an idea man. They were pretty much opposites in that sense, which is why they clashed. The light bulb moment came once they realized rather than getting upset at each other for doing things differently, they could just work on different parts of the business while aiming for the same goal.

Is Choosing a Niche Enough to Help You Stand Out?

The answer is: not necessarily.

Picking a niche is an important part of your digital agency growth. Many agencies start doing a little bit of everything and eventually specialize in something they’re great at. Picking a vertical like WordPress or Shopify usually depends on getting an early start. For instance, just picking Shopify as a niche won’t cut it nowadays because the market is saturated. When Adam and Peter first started they were one of maybe two agencies in that niche. Now there are many and as a result, they’ve had to niche down further.

They niched down in the service offering by moving more into the retention side. Now they see themselves as a customer experience agency and focus more on the long-term value of a customer for their clients. They were smart in realizing the necessity to be laser focused, not just in the Shopify space but in picking a service vertical as well.

They think they have missed out on work due to a lack of experience in a particular service vertical. However on the other hand, they also win a lot of projects because there are not many agencies that specialize in lifetime value before, during, and after the sale.

Why Other Agencies Are Potential Allies Instead of Just Competitors

If you feel you have to destroy your competition, you may be missing out on valuable strategic alliances. Adam and Peter have always treated other agencies like friends and partners. It's something we promote and encourage with our Digital Agency Elite Mastermind members as well.

Early on and not knowing how to get more clients, they decided to approach bigger more established agencies. They presented themselves as a trustworthy referral partner and asked them to send any leads they didn’t want their way. Before long, they actually did start receiving referrals from these bigger agencies.

Of course, they also found agencies that were less than willing to engage with them. They even got some competitors trying to stop their progress. Luckily, they had already built good relationships with many agencies so these attempts not only didn’t work, but backfired.

It’s a mentality they still practice now that they are a bigger agency as they try to help smaller start-up agencies. Ultimately, there is enough business for everyone and they don't see a need for a "destroy the competition" mentality.

Furthermore, you can learn from other agency owners. If we were all more willing to have honest conversations with other agency owners, we would realize we've all had many of the problems and even offer useful tips to each other.

4 Tips To Build Trust and Makes You Stand Out From the Competition

1. Be honest even when it's hard: Honesty set you apart from the competition. If the client has unreasonable goals or expectations, just be honest and tell them. Maybe they’ll decide you’re not the right agency for them, but maybe they’ll hear you out and listen to your ideas.
2. Don’t try to sell everything at once: You probably want to sell a client X, Y, and Z but you know what they really need at the moment is just X. Sell them X, do a great job and build trust. Then, once they trust you, upsell Y and Z. Moreover, not everyone can afford everything at one time. Doing it progressively is the best way to consider the client while still increasing your sales.
3. Ask the right questions: Many clients come in with an idea of what they need, like a redesign of their website store. However, once you start asking the right questions and get them to think about the problems they’re experiencing you realize that’s not the solution at all. Being willing to challenge them on the real problem will help you establish trust.
4. Be willing to educate them. Saying “just trust me” doesn't cut it. Really explain where they’re at and the plan on how to get where they want to be. Explain it almost to the point where they could just do it themselves. They won’t, that’s why they’re looking for someone to do it for them. Plus if they really understand, then you successfully showed them they can trust you instead of just asking them to trust.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

How do you leverage relationships to get results for your clients? How can you leverage an acquisition to grow your agency faster? Today’s guest has a lot of experience in targeted product sampling and built her agency around taking products directly to consumers. It’s an industry where getting the product into the hands of the right influencers will make all the difference and your success will hinge on building the right relationships. She also used acquisition to grow her agency faster and tells us it's not as daunting as it seems.

Laurel Rundle is the founder of Aha! Marketing, an agency focused on targeted product sampling. They deliver millions of samples to consumers each year to thousands of locations by putting clients' brands at the center of human interactions already happening. They’ve worked with companies like Gerber, Gillette, and Dove to drive trial and awareness of their brands.

In this episode, we’ll discuss:

• Working with big brands to get their products in consumers' hands.
• Leveraging partnerships and influencers.
• Using acquisition to grow your agency faster.

Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

Sponsors and Resources

E2M 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.

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Starting a Digital Agency Based on Consumer Behavior

Laurel had worked in retail but was not very aware of product sampling when she went to an interview at Samples Incorporation of America. She got the job and worked there for many years. By the time she left she developed an interest in consumer behavior. She went right to starting Aha! Marketing, which is her digital agency focused on consumer behaviors with the goal of getting as many samples out as efficiently as possible.  Her agency works across brands, categories, and audiences which makes the work very interesting.

It is a fun business for her and she loves figuring out each campaign depending on the product and where they find the preferred consumers. Every brand campaign is delivered through one of their proprietor networks. Potential consumers aren't approached randomly but rather a part of a carefully selected group.

Finding the Right Influencers for a Product Launch

If you’re searching for restaurants online and a friend recommends one, you’ll probably go to the one your friend recommends. That is the same response Laurel and her team tries to recreate by working with influencers. There’s nothing quite like trying a product yourself. However, opportunities for this had been limited during the pandemic. Now, two years later, there are many renewed opportunities to get in front of consumers.

One of the markets where they’ve been making a lot of progress is new moms. They typically reach expecting and new moms through OBGYN practices and a network of midwives and doulas. Influencers normally have many questions about the product quality, brand, and logistics of receiving the products. If you are prepared to answer these questions and they like the product, you’ll make a very valuable relationship. These influencers are people who normally have a close relationship with new moms so their recommendations are at the top of their considerations.

Her agency works with other agencies as well as with brands directly. It involves a lot of detailed logistics to get the brands out there. If they agree to recommend the products, influencers are expected to provide feedback and probably photos. Finally, the number of samples depends on the brand. Some are sent to hundreds of locations and others to thousands of locations.

Working With Brands To Do Targeted Product Sampling

When it comes to working with the brand, it starts with the type of campaign they’re trying to build to determine the best approach for a particular product. Some other basic information includes how many samples they’re sending and how many consumers they want to reach. For some campaigns, they rely on intermediaries. For instance, for one campaign they targeted people at gyms and had intermediaries approach the trainers to recommend the product to their clients. They got feedback from both the intermediaries and the consumers.

They usually recommend brands add a QR code on the packaging of the sample because it helps drive responses. Furthermore, they often organize photo contests with cash prizes. They did it recently with Dove samples and they got back really creative photos of people in bubble baths with the soap. They can also add an offer or coupon, which works based on the brand’s target audience, product, and which offers have previously seen some success with their audience. This is done with a survey gathering useful information.

If possible, Aha Marketing likes to have the opportunity to work with the brand around how a sample is designed. They have an interest in the packaging and how it relates to the sample distribution. For example, is it in a tube or a packet? How efficiently can they pack it? Can they reuse material?

But not all campaigns involve a physical product. They recently worked with the National Cattlemen’s Beef Association in a campaign to educate new moms on the importance of beef as a first food. The campaign had educational purposes and included white papers for the physicians and displays for their waiting rooms.

Acquiring Another Agency to Grow Faster

Last year, while in the Goldman-Sachs program, Laurel had the opportunity to acquire another company in her space. The program helped her realize how this opportunity could really help grow the agency faster. It solved a lot of things for them, like getting access to some larger accounts and acquiring clients that complemented the ones they already worked with.

Most agency owners find the prospect of buying an agency too daunting a task. Of course, it does involve a lot of preparation but Laurel maintains it was the best decision for their growth. She was careful to involve trusted experts to give her the best advice possible. Other than that, she let the numbers tell the story. By the time she had the right offer, she knew she couldn’t let it pass. The deal was structured in a way that she couldn’t lose. She even recalls it as a fun process from which she learned a lot.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Would you like to dive into the NFT world? Agencies are finding ways to use NFTs to connect their clients with their audiences. What's an NFT and how can you get in on it? Today’s guest has worked with big companies that recognized their potential as collectibles. He also created his own NFT project with a charitable and environmental focus and now shares his experience.

Chris Madden is the cofounder of Matchnode, a digital ad agency with clients that include the Chicago Bulls, Lending Tree, New Balance, and many more. He also started Seabums, an NFT project that focuses on massively improving ocean health that has donated more than $140,000 to ocean charities. Chris had been studying the rise of NFTs and learning how his clients were successfully implementing them into their businesses. Eventually, he decided that diving into the experience was the best way to learn.

In this episode, we’ll discuss:

• How to land big brand clients.
• How to get started in the NFT world.
• Getting creative with NFTs for clients.

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

Subscribe

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

From Starting Small to Getting Their Dream Client

Matchnode started as a small agency with no outside funding and worked with whatever clients they could get. It was mainly a Facebook agency and expanded to Google ads and other paid ad platforms. Chris and his partner slowly built the agency and one day they got the most amazing lead off their website: the Chicago Bulls. By that point, they had done the work to be visible by such a big organization and were ready for the task.

Basically, his agency helps the team sell tickets by promoting things like family night or different theme nights. They have a budget for each season and an expected return (about four dollars per every dollar spent). They then meet with the Bulls’ creative team to figure out how they can turn their digital content into great paid social media ads that drive returns.

There are a lot of moving parts to figure out, but they are continually working to track better and convert better. Overall, it has been a great experience and has led to several other clients in that space. These opportunities are thanks to all the work they did since their first year.

Helping Clients Transition from Traditional to Digital Marketing

Now the agency works with big established brands who, after a long history of working with traditional marketing, are embracing digital marketing. Their marketing budgets used to focus largely on traditional marketing and now it is more focused on digital. Matchnode helps them make the transition.

It’s very different from working with digital native companies where the senior executives may understand the importance of having a presence in the digital space. With these types of brands, there is some resistance from executives who don’t really understand digital and need to be won over. Because of this, the language they use to talk about metrics, and way that they approach the problems changes.

According to Chris, one of the most effective weapons against this resistance is numbers. With digital, the numbers are so clear that clients unfamiliar with this space are often surprised. They may be familiar with more traditional means like a billboard, but when they see how detailed the results for a digital ad are, it’s very convincing.

Diving into the World of NFTs

Chris had been watching the development of the crypto space and wanted to dive deeper. As a digital ad agency working with the clients they worked with, it became clear to him that digital experiences were moving toward NFTs. He decided the only way to really learn was to jump in with a project of his own. He created Seabums, an NFT project with the mission of massively impacting oceans’ health. The first collection dropped in December 2021 and so far Chris has been enjoying the experience.

Working a lot with Facebook, he and his team witnessed how the digital space was changing. They purchased bitcoin as an agency and prepared for a future in which digital interactions and digital networks would be owned by people instead of centralized systems.

With NFTs came the chance to own any digital object. In the broader landscape, NFTs are still limited in terms of their use but Chris believes what really matters is the piece of the crypto industry that has garnered more attention from the general public. They seem easier to understand than previous crypto movements that were truly financial in nature. It is a really fun and accessible way to dive into crypto.

He also had the opportunity to see how some of his clients were using NTFs. For example, Matchnode works with the Chicago Bulls, and they started to offer NFTs as collectibles that could win fans special perks. Fans with a certain pair of the collection win tickets or a day on the bench, which added to its value and turned it more into an experience.

Creating an NFT Project With a Charitable Component

As he got into NFTs, Chris saw one of the criticisms was that they are shallow and short-termed. Therefore, adding a charitable component seemed like the best way to add meaning. Chris had been playing with ideas to organize an environmental project to do cleanups. Once he found a partner, they defined the project, centered it around the ocean, and got to work. There are 10,000 pieces in the collection, all completely unique.

Basically, those who purchase these pieces will get full ownership and the right to do whatever they want with them. For instance, they can build a business around it and create and sell merch. 20% of the amount paid will go to charity. They’re also working on future components for this project that include a space in the Metaverse and games exclusively based on Seabumps.

Chris actually set up his NTF project in a way that he cannot change the price after they have been put for sale. Back when they were getting ready to launch their project, they studied the market and looked at similar projects. Since they had the charitable element and the idea of making this a project that would invite people who had never engaged with NTFs, they settled on a lower price.

Things like NFTs and the Metaverse are signs that the virtual world is becoming increasingly important for people. Through them, we now have ways for users to own digital objects and create their digital identities.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

How can you boost agency profitability? Do you have a clear plan for being profitable? Some agency owners start out thinking they want to get to $100 million. But, whatever you expect to get at $100M, could you get it at $10M? How about right now? Most likely, what you really want is freedom. Today’s guest found out getting there is just a matter of setting up the right processes and having the right team. In tandem, these two elements remove the owner from daily operations and eliminate the need for your input at every step.

Chris Rodgers is the founder and CEO of Colorado SEO Pros, a boutique SEO agency that helps market leaders solve complex SEO challenges. His team achieves big results with an exceptional SEO strategy, AI technology, and top talent. He shares his experience in his first few years with his agency, and how he learned the importance of knowing the agency’s value and having the right people in the right seats on the bus.

In this interview, we’ll discuss:

• Early mistakes when you’re building your agency.
• Why raising prices is a real game changer to increase profitability.
• Changing your hiring strategy to get the right people on the bus.

Sponsors and Resources

E2M 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.

 

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Treat Your Agency SEO As Important As Your Clients' SEO

Chris started his career working in corporate marketing. He was first attracted to the digital marketing side because of all the data and tracking and the transparency it provided. When he moved to Colorado, he worked as a senior analyst for an agency and, after a failed venture, eventually decided to create his own agency.

His agency started in his home office with an intern that showed up to work in his pajamas. (#Agencylife, right? :) He first started contacting businesses ranking on the second page of Google results to tell them why they needed SEO. Their answer: What is SEO?

Chris knew he needed to change his approach and went back to work on his own website’s SEO. Eventually, his website knocked down the biggest company in Colorado for the #1 spot in Google results and they started getting leads from all over the country.

This was a huge step for his agency and got them to a new level where they were actually struggling to keep up with demand. At this point, it was still a two-person operation and both he and his intern were SEO specialists. He still needed to figure out how to build an agency around their SEO services.

Common Struggles the Early Years of Running an Agency

Lack of knowledge on building a business around his skills led to some early mistakes. Chris and his team started off offering custom solutions as a way to differentiate from their competition. However, they experienced years of setbacks by not having the correct processes in order to scale.

By the second and third years, Chris had periods where he really couldn’t afford the salary for his team. The swings of the business were especially hard. If they lost a client, all of a sudden he had to skip a paycheck for himself in order to make payroll for everyone else.

For a couple of years, every time he felt they were starting to grow, there was a new setback. It seemed like he was never making enough money to pay his employees what they needed to make while also growing his agency.

The True Game Changer to Increase Your Agency’s Profitability

Things started to change once his agency got to $1 Million revenue and beyond. There was just more room to breathe. Chris focused on determining their ideal client. In order to grow the agency’s reputation, it needed to work with higher-profile brands on large and complex projects. They searched for brands that recognized the value the agency brought and paid accordingly.

However, the true game changer was raising their prices. They doubled their minimum prices and increased their contract length. They were finally getting paid on the value they delivered. In part, they were able to do this because they had a vault of case stories and a reputation for success.

In hindsight, Chris realizes that while considering the value the agency delivers what he did in the backend was sabotaging the effort. Always be aware of the value you provide.

Don’t start out too eager, doing too much for your first big clients. They can leave you in a heartbeat. Instead, start the year by setting clear goals for your agency. Look at the value you deliver. Think about the salary you personally want to make that year. Then ask:

• What revenue does the agency need in order to make that happen?
• How many clients do you need in order to get there?
• How much would you need to charge?

Break it down to smaller, attainable goals and then reach for them. If you just have the mindset of getting as many clients as you can, you're creating a big headache for yourself.

Getting the Right People On the Bus So You Can Charge More

Chris recalls advice from another agency owner about addressing management issues. He was essentially told to get the wrong people off the bus, which he proceeded to do.

In the beginning, his agency focused on hiring and training new talent right out of college. It seemed like the best approach compared with hiring more experienced professionals requiring a higher salary and still needing some training.

However, years later Chris found they did not have the acumen and experience to deliver at the level needed to raise prices. As a result, they changed their hiring philosophy and started hiring more experienced talent. Now they have a staff of twelve with over 100 years of combined experience and lower turnover. It has been the best way to ensure a high-level experience for their clients.

When it comes to retaining employees, Jason says you’ll have a better chance with workers who have a lot of experience in a different field. If they are willing to learn, it can work out better than hiring young workers who receive your training and then leave after one or two years.

Also, don't forget to take culture into account as a very important part of your hiring process. For Chris, it's been a striking difference, and he doesn’t have an endless stream of fires to put out. Things are now stable and growing.

Don’t Feel Guilty About Your Hard Earned Freedom

A more stable situation at the agency allowed freedom from being bogged down by emails and meetings. He no longer handles everything and his team has things under control. This gives him more time to focus on CEO-specific tasks but it also sometimes makes him feel guilty.

As an agency owner, it’s completely normal to feel displaced when going from working non-stop to finally having some freedom. You’re so used to having a long list of things to do and suddenly finding no one seems to need you anymore leaves you feeling useless or insignificant.

However, remember this is what you’ve been working for since the beginning. Don’t feel guilty about the time you get to spend on your hobbies and family. This is what helps you recharge and have more energy to pour into your business strategy and vision. Also, it doesn’t mean you’re out of it forever. Many agency owners work out a happy medium according to how involved they want to stay. You can find a way to be relevant and just do the things you love without doing all the things -- that is called balance. 

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

What story are you telling prospective clients about your agency? With audiences getting savvier about skipping over or blocking traditional marketing, it’s important to tell a story that engages your audience. Today’s guest specializes in creating such narratives for his clients and offers some tips for agency owners who want to leverage this strategy.

Zachary Slingsby is the founder of Human Factor Media, an award-winning branded content team that makes short films for brands. Their creations drive higher brand recall, awareness, and affinity than any other form of modern marketing. In this interview, Zachary explains how his love for stories led to a career creating content that resonates and why your agency's branding should not be an afterthought.

In this episode, we’ll discuss:

• How to be better at storytelling.
• Change the narrative and stand out.
• Why your branding should not be an afterthought.

Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

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Agencies Must Be Intentional About Marketing Their Brands

Zack’s love for stories began with his love of film and literature. However, for him the traditional artistic path was filled with a number of frustrations so he decided to change course. Marketing provided the perfect niche to use this skill set in a time when brands are now acting as stages for their audiences. Engaging and entertaining storytelling is now a must for modern companies and a major focus for anyone developing their brand.

It’s common for agency owners to forget to market their own agency. Many expect to have time to develop their branding later but find that is not really the case. Many agency owners work around the clock and don’t have the systems in place to create the freedom or lifestyle they've wanted since the beginning. You’ll find that, unless you’re very intentional about treating your agency like a client, it won't happen. Most never put the effort they should into their own marketing.

Why Storytelling is an Important Marketing Tool

Storytelling may be a bit of an overused term by now, but to Zack, it’s the best invitation to let your audience know “this is who I am”. Good storytelling is an effective and, in some ways, very simple way to get people to join your culture. In essence, commerce is all about lowering the uncertainty about one another so that we can exchange value. This is where true narrative value becomes an asset.

It’s a superpower that small companies can really tap into. A commerce giant like Amazon can never hope to feel like a local presence in the user’s life. By contrast, agency owners can use storytelling to create fans that later become clients. Let your audience know who you are outside of work so they can feel they know the real you. Instead of looking to compete with big brands or big-name agencies, offer something they can’t.

Why You Must Create a Narrative That Wins Your Audience's Attention

Every brand and agency has similar marketing options thrown at them. Because of this, their value propositions look strikingly similar, especially if it’s a niche with a lot of competition. Those companies will often end up competing in the same space, using the same marketing, and the same messages.

So, why not try to use narrative value to distinguish yourself? With so much competition, the way you speak to people becomes the only value you have. The way brands like Lexus, Patagonia, and Northface are committing to storytelling tells us they’ve identified something about where the market is. Users want brands to get past the age of commercials. We expect brands to compete for our attention in the same way that our favorite media company does.

Jason likes to use the example of Apple -- they don't sell products in their ads. They create a vision and tell a story. The launch of the iPod wasn't just another MP3 player, it was "1,000 songs you can store in your pocket."

You Don't Have to be Big on Every Platform

So how can you use narrative to your advantage? You know that including a healthy dose of video in your marketing will make a great difference, but it doesn't mean you know how to use it. There are incredible success stories like Gary Vaynerchuk, who built his agency empire on video content. Everything changed once someone on his team started following him around to film his day and make daily vlogs.

Of course, this won’t necessarily work for everyone; we don’t all have adventure-filled days. You can also find successful examples of agencies that have created a presence on YouTube by making their team and office part of their content.

In any case, Zack’s advice is to choose one platform and focus on growing your audience there. It doesn’t have to be all of them. This way, you can commit your resources to a particular endeavor. If you manage to grow one channel to thousands of subscribers, you’re ahead of the competition. But it's not all about vanity metrics, so don't get too caught up in the numbers.

Just remember that it can’t be an afterthought, there has to be a process and a well-conceived plan as well as someone dedicated to making and posting this content. Spend some time thinking about what bringing your values into a story looks like. If you don’t think you’ll have a lot of time to create content, Zack has clients who just film for one week a year and create enough content to post twice a month.

Finally, keep in mind this is a long-term strategy. Consistency really is the ultimate virtue. You just need enough success to keep them coming back.

Your Agency's Branding Should Not be an Afterthought

It’s easy to think creativity is separate from your business goals. You may even delay some of the most experimental projects for your agency. You think you’ll get to it once you have more time, more budget, more freedom. However, working on your branding should not be dismissed as an afterthought.

With the emergence of so many new voices and people spending money to skip ads, the creative factor can be the key element you need to get their attention. Stop thinking of it as the luxury of a few big players and start seeing it as what it is, an indispensable part of your agency’s strategy.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you dedicate time to work on your agency’s marketing? Would you hire a dedicated team to handle your agency’s short-term and long-term marketing strategy? Today’s guest talks about two common mistakes that sabotage your pipeline and how he built a dedicated marketing team for his agency.

Jeff Gapinski is the founder and president of Huemor, a web design agency that focuses on building memorable website experiences. They focus on helping their clients vastly improve your key metrics, and display your brand with pride. After eleven years in this business, Jeff says the biggest change came with building a sustainable pipeline by focusing on his agency’s marketing.

In this episode, we’ll discuss:

• Building your agency team around your needs.
• 2 mistakes to avoid in building a sustainable pipeline.
• Long-term and short-term strategies for marketing your agency.

Sponsors and Resources

E2M 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.

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Building Your Agency Team Around Your Needs

Jeff had been freelancing since college when he got a referral for a very good opportunity for e-commerce. Ecommerce was quite new and, although he was a talented designer, he knew he would need help. He put together a team to tackle this challenge and the client was pleased with the results. It was a natural progression from there to forming an actual agency.

After finding a cofounder for his agency adventure, Jeff went on to hire several former classmates for key roles. He admittedly built the team around the needs of their original client but quickly figured out this was not sustainable in the long term. Subsequently, the agency went through a couple of iterations as they shaped the team to what it needed to be.

For the first few years, he was the sole project manager, which he acknowledges lasted too long. It wasn’t until year three they finally hired a dedicated project manager. By contrast, the agency now has six project managers and a director of projects. Things now run much more smoothly.

2 Mistakes that Sabotage Your Agency Sales Pipeline

When it comes to building a sustainable pipeline, Jeff believes agency owners make two common mistakes:

1. Falling back on their network. Many fall into the trap of using their immediate network to get business. This usually consists of contacts from past jobs and referrals from existing clients. Ultimately it is a very limited pool.
2. Not marketing the agency. Agencies seldom spend time working on their own brand identity. In fact, they tend to end up with a very generic site and generic marketing you can theoretically stamp any logo on.

Work on Your Branding to Differentiate Your Agency

Always keep in mind brand identity is paramount for an agency. It is the foundation you build on to get business. However, many agencies use their website primarily to show their clients' work and hence their identities become their clients. Of course, you don’t want this because clients will likely change over time.

With this in mind, Jeff and his team set out to create a very distinct visual identity. They created a mascot featured on their website which sets them apart from other agencies. They tied their website and mascot to the concept of space, which relates to the idea of breaking boundaries and going to places unknown. These elements tie their brand identity together. According to Jeff, it has been a huge differentiator for the agency and they have gotten positive feedback from prospects and clients.

Short and Long-Term Strategies to Build a Sustainable Pipeline

You should be thinking about your strategy in terms of long-term and short-term moves. Companies, in general, make the mistake of trying to do all the strategies at once. With this method, nothing really gains traction.

A long-term strategy should include any sort of owned media as a cornerstone of your brand. This will take six months or even longer to gain traction. This includes podcast, SEO, and content marketing.

Of course, you also need a short-term strategy to bring in results while you set your long-term strategy into motion. This includes things like paid ads, cold LinkedIn outreach, paid social, etc. Both are essential because one is sustainable and built for the long term while the other secures opportunities immediately.

For their long-term strategies, Jeff’s team writes long-form content targeted at marketing managers, produces long-form articles once a week, and then adapts those for email distribution and posts on LinkedIn and other social channels. They also plan to eventually start a podcast.

 4 Key Hires to Build Your Dedicated Marketing Team

It’s normal to get distracted by client work and as the agency grows you may find there is less downtime to dedicate to agency marketing. You maybe won’t have the means to hire a dedicated team from the very beginning, but it’s a worthwhile investment. Jeff attributes the agency’s exponential growth over the last two years to hiring a dedicated marketing team comprised of:

• Marketing Coordinator
• Copywriter
• Designer
• SEO Specialist

It was a big investment to make, and you can rely on freelancers at first. However, Jeff says it wasn’t until they made the decision to invest in a dedicated marketing team that he started to see the results.

Don’t procrastinate working on your own brand as an agency. It’s an element that will help you succeed. You may not see the results in the short term but it will build up to be a very valuable investment.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Is it time to replace yourself within your agency? Could you grow faster with by bringing on someone in a president role? What do you expect from someone in this seat? Today’s guest was brought into a digital agency to help run the business as the owner stepped back. He now recalls his journey adjusting to the role of president and gives tips on what you should expect when you start looking for someone to replace you.

Chintan Shah is the President of KNB Communications, a full-service marketing and PR firm dedicated to healthcare, especially in the area of health technology. He started his career in marketing, product development, and product management, and eventually found himself leading a sales and marketing division for a medical device company.

After overseeing an agency’s integration into this company, the agency owner actually reached out to him to let him know she was looking to step back from daily operations. She needed someone to help her run the agency. Fortunately, Chintah was looking for a new adventure in his career, so it was perfect timing on both sides. He has now been leading the agency for six years.

In this episode, we’ll discuss:

• Where to start the search for new agency leadership.
• Leveraging experience in sales as the president of an agency.
• 4 KPI's that define and measure the success of new agency leadership.

Sponsors and Resources

Wix: Today’s episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

Related article:  https://jasonswenk.com/digital-agency-ceo/

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Filling a Key Agency Role Starts With Your Personal Network

The way this agency owner reached out to Chintah is a perfect example of how you should start with your personal network. They had worked together for three years previously, so it was natural to share the need to hire and ask for candidate referrals.

When you’re looking for someone to replace you, you may not want to start by openly broadcasting your intentions. For instance, you can start by reaching out to former clients and contacts within your network to let them know that you’re looking for someone.

It's important to understand the criteria of what you’re looking for. What do you want that person to do? Make a list to identify some of the top criteria, which will depend on your priorities. You may be looking for experience or someone who brings something new to take your agency to the next level.

Do More Sales Equal Faster Agency Growth?

Chintan believes there are a lot of similarities between the sales side and the marketing side of a business. Sales is part of the few key components that will help grow your agency. Do more sales fix a growth problem? As a former salesperson, Chintan believes this is not the case at all. Of course, it is part of overall agency success, but you have to have scalable processes and tools, and technology to help you grow.

As he started this new phase of his career, he leveraged his experience as he learned other parts of the business.

1. Learning about the agency’s growth.
2. Bringing in new business.
3. Defining core capabilities.
4. Looking for new growth areas.

He also immersed himself in the PR aspect of the agency, an area where he really leaned on his team’s expertise and willingness to teach him. At one point, he thought he needed to have a key role in all aspects of the business. However, he learned that having confidence combined with the right processes is the key to letting go and trusting the team.

Hiring an Outsider to Run Your Digital Agency

Chintah’s advantage when it came to fitting in with his team was that many of them already knew him. Furthermore, at the time he joined the agency, the team had shifted after a few key players left. The timing was ideal for an outsider to come in and run the agency without causing unnecessary friction.

Some things changed in the hierarchy as their relationship changed from working as a client to working in the company. It was Chintan to establish a new type of relationship with the team.

Looking back on the process, he admits he could have been more aggressive in getting new clients. When he came in and started assessing the state of the agency, he took a look at their clients. He worked on really defining the agency’s capabilities and growth potential. However, a lot of their digital marketing services needed improvement. In hindsight, he should have leaned into that faster to secure new agency business and grow a little bit faster.

4 KPI's that Will Help You Define Success Running an Agency

Most agency owners should not be in a position of managing the full team. As you grow your agency, you’ll need to delegate several things while you focus on strategy. One of those delegations is management (and there are only 5 roles of an agency CEO.)

As you probably do with clients, it’s good to sit down and define aspects of what success looks like. A good place to start is with realistic growth expectations and additional investments. In short, it's about having a business plan that says “this is what I expect.” Following this, make sure to assess on a quarterly and monthly basis to really see how they are doing.

There are 4 KPI's to assess when defining success:

1. Top line revenue and net income.
2. The number of clients in the portfolio.
3. Ability to upsell or cross-sell existing clients.
4. Size of the team.

Looking at all those things and finding where you may be over-leveraged and where you may not have enough resources. It is a balance that takes learning and that can vary for different types of agencies.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you tired of waiting for clients to provide content? Is your agency thinking of offering content creation as a service? The demand for content is on the rise and research shows content creation is profitable for agencies. However, many agencies are not using content creation to its full potential because they don't understand the value of content marketing in 2022.

Ryan Sargent is the Director of Content Marketing at Verblio, the world’s friendliest content creation platform. Verblio builds content marketing for other marketers at scale by pairing specialized, niche writers with advertising agencies and marketing professionals. The team at Verblio are the experts at content creation and he's sharing secrets on ways agencies can make better use offering content creation and strategy for their clients.

In this episode, we’ll discuss:

• 5 ways agencies use content marketing in 2022
• The disconnect between agency and in-house client content strategy.
• Why is it harder for your content to rank?

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Sponsors and Resources

Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers.

 

5 Ways Agencies Use Content Marketing in 2022

To continually keep the pulse on how audiences consume content, Verblio does an annual 'State of Digital Content' survey gathering information from the market. In its third edition, received data from 450+ marketers with a focus on digital agencies. The results were segmented based on the size of the agency. They got some fascinating takeaways from it, including:

1. Content creation is profitable: At least 75% of participants expressed that content is very profitable at their agencies. This presents a really clear sign that content is something people pay attention to and that agencies will continue to offer. Creating content for your clients not only increases productivity (you're not waiting for them to provide it), it also increases profitability. Win-win!
2. It's all or nothing: Agencies are either "all in" on content or not; and the numbers show it. According to the results, bigger agencies recognize the power of content. They report that 75% of their revenue comes from content creation. By contrast, smaller agencies reported < 50% of their revenue comes from content. Ryan believes this indicates some smaller agencies are discounting content while bigger ones recognize it as a money maker and a core part of their service.
3. Content creation is on the rise: Increasing from the past, more agencies are producing 10 or more pieces of content per client. In past surveys, most agencies reported producing 5 pieces of content per client. The demand is there -- is your agency helping service the demand?
4. Core content is still king: Agencies are still focused on the bread and butter of core content, like blog posts and landing pages. Most are not diversifying in other forms like podcasts, for instance, which are far more time-consuming. Content marketing is vast, but core content is still king (even in a changing economy).
5. In-house content creation: Most agencies surveyed produce content in-house. When they outsource content creation, they usually do so through freelancers.

Disconnects Between Agency Content vs Client Content

One thing Ryan finds particularly interesting is that in-house marketers look at conversion stats as a measure of success. Meanwhile, agencies are more likely to look at engagement stats. If agencies look more at conversion stats they would find this resonates more with clients because that’s what the in-house teams are focusing on.

Also, in-house teams are far less likely to find content refreshes compelling. Agencies see the value of refreshing existing content and consider it low-hanging fruit. In-house client teams don’t see value in refreshes and therefore don't prioritize it. The roles reverse when it comes to ebooks and white papers, which in-house marketing teams see as powerful tools, but agencies don’t focus as much on.

Is it Getting Harder to Create Successful Content?

A generalized feeling is that it’s getting harder to create successful content. So if you feel like it’s harder to rank or get social engagement, you're right!

Demand for content is growing. However, the increase in demand is also the reason it's getting harder to see those conversions. Readers are getting pickier and there’s a lot of mediocre content out there.

We’ve entered an age of content in which the audience knows to ignore the banner ad. Because of this, your content must accurately show intent and provide value.

A Happy Medium Between Education and Entertainment Content

What is the right balance between content that informs and educates versus content that entertains? Getting it right depends on how well you know your audience and understand the purpose of the content.

For example, if you’re a B2B company very focused on education and all of the sudden decide to create an entertaining ad, you shouldn’t be surprised if it doesn't work. People are not coming to you for that type of content. So you either need to work on showing them you do both, or you need to bake entertainment into your brand. If they expect entertainment aspects in your voice and tone, then there’s a logical way to incorporate that into your content.

It comes down to knowing your audience and managing expectations.

Related: Building a successful agency by putting people first.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you offer too many agency services? Are you trying to be a jack-of-all-trades, making you the master of none? Does your broad service offering dilute your team's focus? Today's guest is an e-commerce expert whose agency works exclusively with one e-commerce platform he believes is better than the rest. In this interview, he talks about what's next in e-commerce and what you should look to improve in your website.

Guillaume Le Tual is the Founder and CEO of MageMontreal, an agency committed to building powerful e-commerce websites to increase clients' sales. They work exclusively with the Magento platform. Why? According to Guillaume, the agency tried working with other platforms and found Magento is the best open source e-commerce platform on the market.

In this episode, we’ll discuss:

• Narrowing your agency's service offering.
• Hiring for culture fit and values.
• Niching down to avoid diluting your team's focus.

Sponsors and Resources

E2M 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.

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Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

Narrowing Your Service Offering and Focusing on a Horizontal Niche

Guillaume started his career as a visual artist building background art for clients like The National Bank of Canada and Warner Bros. He gained experience in web design, digital marketing, and e-commerce and eventually decided to start his agency, MageMontreal.

According to Guillaume, he and his team tried dozens of other e-commerce platforms before settling on working exclusively as a Magento agency.  They offer complete e-commerce website design and development, maintenance, and integration of Magento with third-party software.

Now, they are one of very few Magento-certified agencies in Canada and can see the best decision for their business was focusing on one very specific niche and cutting down on their service offering to be the very best at just one. Remember, a niche can be a specific market (vertical niche) or a specific skillset (horizontal niche).

What’s Next in E-Commerce?

Guillaume says we’re still a long way from truly developing AI to what we’ve seen in movies. Most companies are not at a point where they are truly using AI. However, it is used in for things like product recommendations. Using Adobe Sensei, for example, users can get product recommendations based on shopper behavior, popular trends, and product similarity. If a suggestion does not convert into a sale, next time it will make a different suggestion, which indicates that the machine is learning. That would be the low-hanging fruit available right now. It can also be used to improve the search bar, for example, to get more relevant search results.

It’s really a step-by-step process to integrate this technology into your company. It requires prior steps like cleaning up your data and standardizing your processes to be able to implement this. After implementing marketing automation at every step of your email process and onboarding process, the next level would be using AI to help you run that.

There’s also some interesting work done with progressive web apps (PWA). Basically, this is a hybrid between a native app and a website so you get the benefits of both. So even though it’s a website, in terms of maintenance you don’t have to constantly download the latest version of the app. It’s a website, so you always have the latest content. It also has some limited offline capabilities. And it includes push notifications for marketing like you would have with a native app.

Hiring For Values and Resourcefulness

When it comes to his hiring process, Guillaume prioritizes the agency’s values. He recommends not overcomplicating it and having a list of three or four things the candidates must comply with. “Do not compromise when it comes to your values,” he advises. Whether it’s sales or HR, if the candidate does not meet these requirements, they’re not the right fit for your agency. Also, take your time with the process if you have to because rushing leads to mistakes.

Above all, he prioritizes a strong work ethic and desire to provide the best possible service. He asks candidates to provide examples of times they feel they provided excellent customer service. He also looks for resourcefulness. Sometimes it can be an issue when an employee comes from a big company to work at a smaller agency. They might be accustomed to having more resources, and it’s important to Guillaume the employees show they can figure out creative solutions without those resources.

Replacing Yourself in the Daily Agency Operations

He recently hired a Head of Project Management, an operations role not yet running without him. Originally, he was going to hire from within but was surprised to find an outside person who fit this role.

After making sure it was a good fit for the agency, he delegated tasks and immediately saw a difference. It was a game changer between when he organized everything a having a person with operational expertise. With someone in charge of organizing the pile of things to do and delivering on all of it, he completely removed himself from the client services process.

Stop Diluting Your Team's Focus and Be an Expert

Do you offer a very wide set of services? Looking back, that was MageMontreal. They handled everything from website building and design, SEO, pay-per-click, social media, IT support. At one point, Guillaume checked Apple’s website and realized he offered more services than Apple.

He decided at that point this needed to change because doing too much was diluting his team’s time and focus. You can successfully offer such a wide variety of services, but you need a staff of hundreds in order to do it properly. So, he decided to cut down his offering and focused on just their expertise. Overall, his agency helps clients with website building and some consulting. However, for other services like marketing and hosting they usually refer clients to their partner agencies.

Want the Support of Amazing Digital Agency Owners?

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Are you having a hard time finding the right candidates to fill roles on your team? Does your hiring process take culture fit into account? A solid hiring process is key to agency growth. Today’s guest has worn many hats in her career in the agency world and has learned to always keep the recruitment pipeline full at all times. How can you manage to do this? It’s a combination of various steps.

Amy Pyles is the president of Saxum, an integrated digital agency that works with brands balancing purpose with profit. In her role overseeing the inner workings of the agency, Amy relies on her leadership team to create the type of culture where they set up people for success and keep the agency steering towards its goals.

In this interview, we’ll discuss:

• Building agency culture and constantly recruiting.
• Keep your recruitment pipeline full at all times.
• How to grow your agency team talent.

Sponsors and Resources

E2M 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.

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Cultivating an Agency President from Within

Amy is not the owner of Saxum but does operate the business. Her agency career started right after finishing her master’s degree. She started as employee number 25 at an agency that was just starting its growth journey. It was 2008 and Twitter had just come out, Apple was about to launch the new iPod, Facebook was just opening up to work as a marketing platform for brands, and everybody was building custom websites and apps. With so much happening, it was definitively the right place and right time to enter the digital marketing space. She left the agency 8 years later as a business with 250 employees, offices across the country, and working with brands like Walmart.

She started working with Saxum right away to lead their digital practice. Over the years, she led some departments, was promoted to Chief Operating Officer, and now has the role of President.

Creating Agency Culture That Supports Constant Recruiting

Many agencies have a hard time bringing in talent and building up the team to keep up with demand. Amy finds one of the most important elements when recruiting is having a clear purpose for your agency. Being able to connect with purpose on the talent side has been an important piece of how they recruit. Her team leverages culture as a key operational element in growing the agency. Thanks to their culture partner, Giant Worldwide, they also have a framework to manage culture and talent development. And, they take several steps to ensure their talent pipeline is always full.

Remember: You should always be hiring! Sometimes agency owners will say they’re having a hard time finding talent but if you go to their website there's for recruiting. This should be clear as soon as a user enters your website that you are hiring. Set up the right systems to create your recruitment pipeline and be consistent in keeping it active.

At Amy's agency, everyone knows that “what gets measured, gets managed”. As you focus on operations, think about what you’re measuring (and don’t measure too much!). That’s what will get managed. It’s been pivotal in the way her team builds competency and builds the discipline needed in operations.

6 Steps to Keep Your Recruitment Pipeline Full at All Times

At her agency, senior leaders are responsible for filling the pipeline for their departments. Basically, they should always have in mind at least two positions they should fill next and ensure these steps are covered:

1. Developing relationships: Each team leader should think about where they could be developing relationships with possible recruits. This could mean keeping an eye on other agencies in case they want to “poach”.
2. LinkedIn: Their LinkedIn is always running and Amy says they get great input from there.
3. Paid ads: A part of any serious recruiting effort.
4. Referrals: This is a piece people tend to lose sight of. However, the best source of freelance talent and full-time talent is from existing employees. So they try to incentivize that and hire from within their network.
5. Internship program: They have a robust intern program that has worked great for them. Ideally, they’ll have up to ten interns to grads working at the agency at any given time. Keep in mind that bringing in interns to your agency won’t save you any time. In fact, it is a long-term strategy and requires a lot of time and planning to do it well.
6. Quarterly meeting: Finally, they have a quarterly meeting where every department head goes through the pipeline.

As to the question of hiring junior or more experienced staff, her agency does prefer to hire junior staff and train them. Of course, you will need to hire more experienced talent sooner or later. Keep in mind this will be the most difficult task when it comes to recruiting and integrating them, but it is a necessary step.

A System to Improve Interactions as an Agency Leader

Working with Giant Worldwide, Amy’s agency has learned to work with its Five Voices Framework to build liberated leaders. This framework helps employees understand themselves better, understand others, and identify their blind spots. As a leader, it helps figure out how to better communicate with others and greatly improve interactions.

At Amy's agency, the conversation about voice starts in the interview process. This way, interviewees understand how they will fit into a role and how they would interact within the team dynamics.

Investing in Development and Promoting Your Agency Team

Amy’s team implements all the typical tools and growth guides managers use to encourage growth among employees. They are also big believers in real-time feedback and maintain that 1,000 small conversations lead to more growth than one big conversation. As a strategy to help people set goals and keep an eye on skill gaps, employees get an annual stipend to spend on personal development. Of course, the agency also offers training for the team.

When it comes to promoting people to team leaders, Amy doesn’t believe tenure necessarily dictates capability. For her, it’s more about having had the right exposure to perform at the next level. It also depends on what each employee wants. Not everyone is interested in managing people. There’s a place and a need in every agency for managers that lead people and for experts that make sure to deliver a great service.

Transitioning Roles from Agency COO to Agency President

Amy has worn several hats at Saxum, including leading their digital department, COO and more recently as the company’s President. As COO, she oversaw HR admin operations, project management, and she retained the leadership of their digital practice. Most of her time was spent on project management and workflow to get all of those pieces to work together and produce for the agency.

Now as President, she also oversees the creative department and client service. All services now report to her from a quality perspective and she relies heavily on each of those department leaders. Amy has worked in different roles in her past agency experiences, leading client service, project management, digital strategy, etc., and she realizes now the importance it all had to prepare her for the role of COO.

It's difficult to hire someone outside who starts working as the agency COO. If you’re looking to fill the position of COO, you want someone who understands the different nuances of working in your agency while bringing a systemized approach in efficiency and effectiveness.

Jason has coached agency owner clients who bring in a COO from the outside by first bringing them in as a consultant. They try this for a few months until they understand how the agency operates. It's a low-commitment way of testing things out before making it official. He feels Bringing someone new in with a heavy title before they get to know and earn the trust of the team is setting them up for failure.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you an accidental agency owner trying to grow fast? Rapid agency growth isn't necessarily the best way to grow. When you're going through the ups and downs you want to get to the other side quickly. But slow and steady wins the race and for one agency, hitting the one million dollar mark changed everything. He went from running a “mom and pop shop" to growing a 10-person agency. He shares how he recovered from rapid growth by getting focused and his lessons on the importance of branding while growing his agency.

Robert Giovanni is the CEO and co-founder of IronPlane, an agency dedicated to designing, building, and optimizing exceptional eCommerce experiences. Robert says he's made mistakes and learned a lot in the process of growing his agency. He experienced the awkward stage of an agency’s growth of being in no man's land. He now offers a perspective on how to get your agency past that awkward growth stage with lessons he's learned over the years.

In this episode, we’ll discuss:

• Getting over $1 million in revenue.
• Choosing ideal clients and firing ones that aren't.
• Getting comfortable hiring in advance of need.
• Branding your agency and your team.

Sponsors and Resources

E2M 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.

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Discovering the Opportunities in eCommerce

Robert discovered opportunities in selling online back in 1988 when he sold a chess set. He built a website to sell this set purchased in Russia and sold it for around $8,000. He quickly started to buy and sell products online, which eventually led to requests to build websites for other people's product sales. And with that, an accidental agency was born.

Step by step they started to build a relationship with clients, many of which he retained for several years. Before he knew it, he was operating a digital agency that started to grow. Robert's perspective always focuses on helping clients figure out what they wanted for their business (drive revenue, improve their bottom line.) By 2012, he knew it was time to get serious with its branding to further it's his agency's growth.

Getting Over the Million Dollar Mark

According to Robert, reaching that milestone took about three to four years. In the beginning, he had about two big clients and, as he describes it, he was a "glorified consultant." He hired another person to help him with daily tasks when the agency was near one million and felt content. This was until one of his clients decided to end their contract abruptly. It was a big blow for the agency and Robert knew in order to prevent something similar from ever happening again he needed to make things more official.

He worked on defining the agency’s purpose and branding. He hired more people and really prioritized getting out of operations so the agency was not a one-man show. It took another three years, but after these changes, the agency finally got past one million.

Choosing Your Ideal Clients and Firing Clients That Don't Fit

After getting past the point of being a “mom and pop” agency with only 2-3 big clients, there was still much to learn. At the start, the agency was taking any client that came their way. They were trying to grow and it seemed foolish to turn away any client at that point.

This is a normal part of any agency’s growth process. You feel afraid of turning down any business opportunity; even if you know a client is not a good fit. However, it's important to recognize the importance of choosing clients that are a good fit for your agency so you can wasting time on the ones that aren't.

For Robert, it was when the agency had grown to about 10 employees. He was no longer part of every sales call and had a number of good clients. There was a particular client that was never a good fit and the team knew it from day one. However, it was a big project and they signed the contract anyway. What proceeded was weeks of Saturday calls and nightmare meetings until Robert decided to end the relationship. It was the first client he had to fire and it turned out to be the point where he sat down with his team to talk about being pickier with potential clients.

From this moment on, they worked to better define the agency’s values and make sure they were clearly stated on their website. He knew his agency could bring tremendous value to any client. But the client's values needed to match the agency's  or they just wouldn’t be a good culture fit.

Failing to define these values will leave you directionless in your agency journey.

Rapid Agency Growth and Losing the Human Touch

In early 2020, Robert felt the agency was really hitting it when it came to marketing and bringing in new clients. However, the team was failing in terms of building relationships with clients and understanding their needs. One of Robert's top priorities is building solid client relationships and offering more than just mechanics. By that time, their churn rate started to increase and Robert got worried.

Robert believes the agency should always continue to have a human touch as one of its core values. When a client did not renew their contract and the team could not pinpoint the reason, it indicated a disconnect between client and agency. It was time to re-assess and re-evaluate their client relationships.

Should Your Agency Hire Talent Before There Is A Need?

Robert’s agency has a longer sales cycle, which makes it easier to predict resource needs a few months in advance. Because of this, he is comfortable hiring today for what they will need a few months down the road. When it comes to their clients, they do a review that gives them a pretty good idea of whether that project will turn into a long-term contract. Their shortest contracts are generally about a year.

This is not the case for every agency. Having a long sales cycle provides confidence and a sense of certainty. It's really all about your sales cycle and forecasting the need of bringing in-house talent versus whitelabeling.

On the flipside, hiring before bringing on clients, you may feel pressured to take on clients that are not a good fit just to pay the bills. This is a sure way to end up with clients that abuse your team and disregard your value.

Branding the Agency or Branding Your Team?

Robert's agency has a brand voice and clear values to help attract the right clients. And by the time they got branding down, he started thinking about his team. Many of the people on his team have been with the agency for a long time and are all-stars in their area of expertise. So, they launched YouTube videos and podcasts showcasing team members talking about what they know best. Doing this has done more for the agency’s credibility and authority than anything else they had previously done.

If you’re thinking about taking similar steps, know that you can go even further. Highlighting your team is great of course, but what about starting a podcast (it's easier than you think!) and highlighting your ideal clients?

#1 Lesson in Agency Growth 

The most important thing Robert has learned over the years has been to stay focused. It can be hard when you’re starting out and you want to try everything. You don't want to miss an opportunity to be ahead of the curve. However, he recalls that the agency was really at its best once they got focused and avoided distractions. He’s also not afraid to give away expertise. He’s gotten more traction from talking with prospects and giving them the advice more than anything else.

Remember people want to see that you really understand their needs and are an authority in your field. This is what establishing yourself as a trusted advisor is all about. Don’t be afraid to talk about what you know or give away too much information. At the end of the day, they won’t be able to get better results with that information, they’ll still need you to execute.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

What are your goals for agency growth? Would you like to grow your agency to 7- or 8-figures? That is exactly what this agency owner did when he built a highly successful $50 million-dollar agency with a team of 400 people. He did it by staying ahead of the curve with technology and building leaders who evolve with the growing agency.

Robert Henderson is the co-founder and CEO of JumpCrew, an agency that generates demand for 2B2 customers by building a qualified pipeline through fully dedicated sales teams. Robert has built a successful agency by growing in the direction of the market, staying ahead of the curve, and building strong leadership.

In this episode, we’ll discuss:

• The future of marketing in the metaverse.
• Staying ahead of the curve with technology.
• Building a leadership that evolves with your agency.

Sponsors and Resources

E2M 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.

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Building a $50 Million Dollar Agency

Many agency owners starting out are interested in “tricks” to get ahead and grow their agency as fast as possible. They seem so interested in growth they don’t stop to think about the value they should be providing. When he started out, Robert saw many businesses shied away from learning how to acquire new clients. Communicating value is something he really leans into with each new client.

He doesn’t sell a one-size-fits-all solution because it's specific enough or aligned with what the client needs. Instead, his team focuses on how to deliver value in a way that aligns with the client’s goals. Also, they are self-aware enough to turn away clients when they feel that they can’t deliver this value. Whatever the reason, they try to be really candid about good and bad fits.

The most important piece of building a successful agency is aligning with the right people. Every business is ultimately about people and when you create an environment where each team member is an expert in their area you don’t need to know everything. Partnering with people who really know about their particular area will you set your agency up for success. The secret is having people that are really good at executing what they know.

The Effect of New Technologies and the Metaverse on the Future of Marketing

Robert and his team learned the power of content marketing while automating content for local businesses. They learned what the market needed by being in the mix. They grew in that direction by adding new products and services based on the feedback from clients.

Robert is a believer in new and emerging tech tools and giving platforms the credit they deserve as they develop. Sometimes we can’t imagine the progress a new technology will represent in our particular space. For instance, 10 years ago no one was interested in being a guest on a podcast and now they have become a very popular marketing vehicle.

Looking ahead, Robert believes in ten years from now the meetings we’re having on video today will all happen on the metaverse. People from all over the world will gather in a space that feels very realistic. The adoption of mediums like the metaverse will come with the technology and infrastructures to support them. At this point, adopting this new technology will maybe shape the way the supporting technologies start to develop.

He believes the possibilities are endless as we still can’t imagine the many ways that we’ll use it. The development of paid search started with the rate of adoption of social media platforms. Similarly, the development of the metaverse as the possible future of paid ads will depend on how people start to adopt this new technology.

These tools are bound to change the way agencies work and advertise and, of course, being the first to adopt them successfully would be a great advantage. We need to continue to study and educate ourselves to be able to see where it is heading.

Staying Ahead of the Curve with Technology

Staying ahead of the curve is mostly about educating yourself and trying to understand what the opportunities look like to capitalize on them as they come. We’re in a learning phase for technologies like the metaverse. We know it will be a part of the future but we don’t know exactly how that will look. Right now it’s about trying to create more connectivity between your team in what is set to be a more sophisticated environment. Robert believes this is the low-hanging fruit available right now for all until we can figure out how to get our partners and clients into it.

However, the technology is still in the very early stages. For instance, no one wants to work 6 to 7 hours with the VR goggles on. There’s still a long way to go before it is adapted to everyday use and usage is what will help shape that.

Evolving Team Member Roles as the Agency Grows

One of the most difficult phases for his agency was at a point when a lot of things were working great but they couldn’t figure out why some others were not working at all. In hindsight, they just didn’t have the right infrastructure and didn’t have all the right people in the right seats.

It’s really fun to be part of so much growth but it can also be a struggle to remain motivated and challenge yourself every single day, month, and year. Robert's leadership team has been with the agency since they were just ten people. This team has helped grow the agency to over 400 people. How did they do it?

First of all, they’ve had to continue growing themselves. Their role in the agency business has changed and they’ve reinvented themselves several times. Being open to the idea of constantly evolving in order to be able to grow has really helped them support the agency’s growth. Each employee remains flexible and open to change for their own growth as well as that of the agency.

Building Leaders Who Help Grow a Strong Agency

Robert built the leadership team in such a way that they've basically been with him since the very beginning. Of course, they were not all prepared for a leadership role from the beginning. Building an agency as a team of just 10 people helped a lot when it came to building camaraderie. They had different titles but were very much equals and shared the same values. It also helped build a level of communication not often seen in a team where they are able to have hard conversations and be very honest with each other.

Robert also encouraged an environment for taking risks. He feels it is important to challenge leaders to take risks without the fear of making mistakes. This doesn’t mean they make mistakes all the time, but in order to go for innovation, the team needs to know that it’s ok if something doesn’t work out as they’d hoped.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Would you like to attract more clients with outbound sales? Do you need to build a successful sales team that gets results? Today’s guest is a sales expert who helps agency owners get out of sales and build a successful sales team. It’s all about building consistency and using your network to create relationships that will help you grow your agency.

Dan Englander is the CEO and founder of Sales Schema, a B2B agency that secures ideal prospect relationships. His team goes out to the market and helps clients get meetings and focus on new business. Earlier in his career, he led new business for a creative services company and helped them get to seven figures. After starting his agency in 2014, he has learned a lot about how companies go after new business. More recently, he shares his perspective on sales and how to improve at it in his new book, Relationship Sales at Scale.

In this episode, we’ll discuss:

• How agencies can do better at outbound sales.
• Using your network to get to your ideal clients.
• What works when it comes to finding and training salespeople.

Sponsors and Resources

E2M 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.

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When is the Right Time to Transition Out of Sales?

Transitioning out of sales requires two main steps, according to Dan: who's doing what and developing consistencies in the sales process.

We all fall into the trap of dedicating too much time and energy to clients and none to your agency. Once you stop focusing on sales you’ll be on another level to focus on growing your agency.

If you’re an agency owner and the salesperson, think about spending half your time on sales. Eventually, get yourself to the point where you can just focus on the top of the funnel and have someone help set meetings. Clear the other half of your time to focus on your agency.  Do this with the mindset of gradually getting out of sales altogether.

Agency owners commonly try to hang on to sales because they feel clients only want to talk to them. That’s a misconception, considering how many owners have managed to grow their agencies to massive proportions by getting out of sales. It’s not the easiest thing to do, but once you have a repeatable sales process it becomes easier to get someone else in that seat.

Where do some agency owners go wrong with this transition? They jump to it too early before figuring out the repeatable process. They just throw a salesperson into it the mix and expect them to figure it out. That sets them up for failure and, once they do, it is easy to convince yourself that you’re the only one that can handle sales successfully.

How to Create a Repeatable Sales Process

Agency owners struggle, sometimes for years, to find the right salesperson and this has a lot to do with having the right systems in place. Dan likes to break it down into a process where you start at the very top of the funnel.

• Think about how you’re getting meetings.
• Break down your conversion process from the first appointment to the proposal.
• Follow that with breaking down the process from proposal to close.

Of course, this may vary depending on how complex your sales process is -- documenting everything is key in order to set up your salesperson for success.

When it comes to how to get meetings, Dan and his team find outbound is a really good way to do it. Whatever you’re selling it stands to reason that your market will be relatively small. Your target audience is not everyone in the world so you don’t have to build a massive inbound funnel. There are really a finite number of relationships you can build in your area. With outbound, you can start building those relationships before the client actually has a need. Then you are top of mind when the need is there.

Building Relationships With Outbound Sales

One of the things Dan's agency does for clients is referral-driven campaigns where they make a list of ideal clients and identify who could introduce them to those clients. Basically, they identify friends of friends, narrow them down to contacts in the first degree and ask for an introduction to someone in their network. A lot of people have no problem making that connection once you’re upfront about what you want.

They usually start with an accounts-based list of thousands of companies. Instead of trying to find the golden company that you may want to work with but have no meaningful connection to, find a number of companies you’re actually connected with. The connection you make as a result might not get you a campaign that lasts very long, but it will help you get that level of trust in order to get you a referral.

What Works When it Comes to Finding Salespeople?

This is something Dan still struggles with to this day. Being a sales hirer is part of your job as an agency owner and part of getting out of sales. You have to dedicate part of your time to finding the right salesperson and training them because you’re essentially investing in someone that’s going to help your agency grow.

Dan's agency gives the hiring funnel as much importance as the sales funnel.

Also, to weed out candidates that are ultimately not a right fit Dan usually asks for video interviews. It’s a way to see how invested the candidate is and avoid wasting time on long interviews in-person interviews. Once he’s made that hire, he invests in sales training every week. New team members do role-playing exercises and listen to sales calls every day to get ready. It is a lot of work, he admits, but it is worth it.

Another good tip is to not assume the person is perfect for the job after a good interview. Ask the candidate to make a 90-day plan and see if what they present truly aligns with what you need.

Finally, don’t underestimate the importance of not just hiring the right person for the job. It's equally important to put together the right framework for your salesperson to model, evaluate, and make new recommendations on.

How to Face Client’s Skepticism

The hardest part of sales is getting someone to agree to take your call. Once you’ve done that, they are now investing time. They would not be spending time in that conversation if they didn’t have a specific need. Just make sure the conversation flows in a way the client is comfortable and feels heard. Spend more time listening than talking. Give space to ask questions and don't make the prospect feel interrogated.

Don’t underestimate the importance of asking the right questions to pull the client in. A lot of salespeople tend to push a lot and makes people feel they have to push back. It’s a completely different thing to present yourself as the trusted advisor through the right questions.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Have you clearly identified your place in the market? Have you selected a core leadership team to help you take the agency to the next level? Do you unknowingly have a principle-agent problem?

After 10 years in the business, one successful agency owner shares the steps he followed to skyrocket growth. He covers everything from the importance of having a top-notch leadership team to communicating the goals and vision and solving the principal-agent problem.

Manish Dudharejia is the founder and president of E2M Solutions, a full-service white label digital agency. His agency works as a trusted partner to scale your agency business behind the scenes. E2M has been serving agencies for 10 years and currently works with about 130 agencies across the U.S.

In their growth process, Manish has had to learn to manage big teams of over 100 people, as well as create a culture that prioritizes employees and identifies leaders within the organization.

In this episode, we’ll discuss:

• Finding your agency's place in the market
• Tips for managing a large team of over 100 employees.
• Identifying the principle-agent problem and how to solve it.

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Finding Your Agency's Unique Proposition and Providing Value

According to Manish, understanding his agency's unique sales proposition was a key factor in its success. He was clear early on that his core expertise was more about sales, branding, and customer service. He knew that is what he needed to offer clients in order to provide value. And, he never stopped learning about leadership. Like most agency owners, Manish didn’t know anything about hiring and training a team when he first started. Now he manages a team of nearly 150 people.

Another key aspect of E2M's growth was understanding what the market needed and how to serve those needs. Manish understood India is one of the countries with the highest number of English-speaking young people. This makes it a great place to outsource services. The resources and opportunities were there to create a company very competitive in this space. It just took having great systems in place and a really professional, prepared team.

It’s about having the self-awareness to identify how you fit into the industry. What are your strengths? How does your expertise fit what clients need from you? Manish saw a gap in the agency space where agency owners didn't have time to invest in hiring and training a team. That’s where his team comes in to white label when agencies need them most.

Finding and Managing Your Core Leadership Team

A lot of agency owners struggle with operations and growing a team as the agency scales and needs to expand its staff. They may go from having a team of five to a team of 20 and feel overwhelmed. Manish now manages a team of nearly 150 and his management philosophy is to have a core leadership team. He usually works closely with his 6-7 leaders and makes sure they know who is responsible for what.

It’s important your team leaders understand and communicate the agency’s culture, vision, and goals. Failing to do this leads to a disconnect between the employees and the overall agency’s goals.

Where can you find top talent to lead and manage your agency team? Manish believes in building leaders within the company rather than hiring outside talent. He believes there is always someone out there who would love to do a job you hate doing. Instead of holding on to tasks you don’t like for fear no one else can do it, find someone you trust that can take it over. He is also against micromanaging and believes that if you chose someone to be part of your leadership team is because they’ve proven themselves and you trust their judgment.

The Principal-Agent Problem and Why You Need to Solve it

Manish recently learned about the theory of the principle-agent problem. Fortunately, he had been taking the right steps to face it. It is the root of most problems related to employee and client dissatisfaction. It is basically a conflict between the priorities of a person you’ve chosen to represent you vs. the priorities of the client. The root begins when the incentives of the agent and the principal do not match.

Manish uses the example of Uber and how their main customer dissatisfaction problem begins when the incentives for the principle (the client) – getting to their destination and enjoying a good service – do not align with the incentives of the agents (the drivers) – completing as many rides per day as possible.

As an agency owner, you are essentially hiring people to provide a service that satisfies the clients’ needs. However, you should always make sure to put the right incentives in place so those employees are also satisfied. Remember your employees are your most valuable asset, so if they’re not happy something definitely must change.

3-Step Framework to Getting the Right People in the Right Seats

Once he found his place in the market, Manish focused on having the right people in the right seats. In short, he attributes his success to implementing this framework:

1. Identify the core leadership. These are employees with key abilities that could be utilized to relieve you of unwanted tasks. If you put the right people in the right seats, you’ll never have to worry about motivating them.
2. Address any principle-agent problems. Incentivize your team that is a win for them as well as for the client in order to produce a successful customer experience.
3. Create a culture where the team feels valued. Help your employees rally around the common goal where they can feel their contribution matter to the overall agency's goals.

Setting Goals to Continue the Agency’s Growth

Manish sets three main goals for each quarter. They also clearly communicate how each team member will contribute to achieving those goals. Sharing the agency’s goals helps every team member feel they share in and are a part of those goals.

Give your employees goals rather than just tasks to do and they’ll feel included, valued, and a part of something. This also help them understand their impact on the organization. Of course, one way to recognize their work is monetary compensation but it can’t be all about money or you’ll end up losing your team.

Interested in Seeing if E2M Solutions Can Help Your Agency?

If your agency can use the help of a white label partner, check out E2M Solutions and join the hundreds of other agencies who have trusted them.  For a limited time, E2M is offering Smart Agency listeners an amazing discount, that you can check out here.

How can you propel agency growth while removing yourself from operations? How can you manage a fully remote team while keeping an active, fun work culture? What is it like to work with big tech brands? Today’s guest saw a huge jump in her agency's growth during the pandemic and discovered the benefits of growing a remote team. Now she is figuring out what an agency office like looks like for her team in a post-pandemic world.

Lisa Larson-Kelley is the founder and CEO of Quantious, a premier marketing agency specializing in emerging technology. She’s grown the agency from a 2 person operation to a team of over 15 people working with the biggest names in tech, like Meta (formerly Facebook) and Shopify to name a couple. Her agency growth started to really take off just as the pandemic hit and she found many benefits in working remotely.

In this episode, we’ll discuss:

• Creating an agency that becomes a trusted partner for big brand clients.
• The benefits and opportunities of working remotely.
• The most important decision for massive agency growth.

Podcast Takeover!!

Get to know your Smart Agency Guest Host:  Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and bringing a new perspective to the show.

Sponsors and Resources

E2M 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.

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Building an Agency as a Trusted Advisor in the Tech Sector

Lisa started her career in design back when working in tech didn’t seem like an option. She was passionate about tech and coding and eventually became part of a group of developers that worked at Flash Media. Joining Flash was the perfect jumping point to get back into coding and on the development side. Her work in app development opened the door to attend conferences as an expert and continue to learn about tech. For years she was immersed in emerging technologies, first as a developer herself, and then as a trainer and marketer.

As a marketer, she knows how to tell complicated stories in a simple manner and built a team of like-minded people. Her agency has become a trusted partner working with the biggest names in tech like Meta and Shopify. Working as a secret weapon for these companies, they work on things like back-office operations and augmented reality experiences. With Meta, they worked on ways to show the many possibilities of using their collaboration software for businesses, Workplace, which they had struggled to market.

Typically, her agency is called to assist a company that is adjusting to its growth process. They need support from an experienced team that can help them with onboarding, documentation, and processes. Their mission is to make their client look good and don't really feel a need to have the spotlight.

Finding Success in a Transition to a Fully Remote Team

Lisa was just thinking about investing in a bigger space to accommodate new team members when the pandemic started and she was forced to make the drastic shift to going fully remote. They were about 10% remote before, with some of the team working from home at least once a week. However, it was still a big adjustment to make overnight.

We all remember how uncertain those first few weeks of the pandemic felt and the struggle to get used to the new reality. Thankfully, they got settled into the new situation quickly and Lisa realized it was actually going really well. The work didn’t stop for her agency, as more and more companies were interested in the tech they needed to go fully remote. The work grew and so she needed to hire more talent. She realized she wasn’t necessarily limited to hiring in New York area any longer and started recruiting all over the US. It was a shift that really enriched the quality of their work as an agency. Instead of investing in a bigger office space, she figured out how to manage people across different states.

Now they focus on keeping everyone connected with daily meetings, Slack, and some creative solutions like work games. They have “Teaser Tuesdays”, where everyone competes in games like Wordle as a way to connect and have fun. All in all, they make sure to celebrate birthdays and anniversaries, invest in professional development, and show their appreciation to keep the team motivated and creative.

What is the Future of Remote Working?

Lisa sees a lot of push and pull over staying remote or going back to the office in the tech world. On one hand, a home office is now very ingrained in the younger generations. On the other, many insist going back to normal should include going back to the office. Each has its own set of pros/cons, of course. There is a beauty to working in person and seeing your co-workers at the office. However, putting effort into providing remote opportunities is also very important.

Furthermore, not everyone wants to go back to the awful open-floor offices that were so popular before the pandemic. It is a complex issue that can’t be solved by just ordering everyone back into the office but rather requires reimagining how that would look in a post-pandemic world.

Benefits of Having a Remote Agency

Working remotely has actually helped Lisa’s agency in many ways. For example, diversity of time zones within the team has been a major benefit. There are team members in different time zones working closely with clients in different areas. There’s also the flexibility of working a schedule to accommodate to your activities. This allows everyone to work during the time of day when they are the most productive.

If you have an open mind, you can also see the benefits of having different points of view on something. Lisa is in New York and someone from New Mexico or Florida will have different points of view and have different ideas.

#1 Most Important Decision to Propel Agency Growth

Hiring a VP of Operations was a crucial move that really impacted Lisa's agency’s growth. For a long time, she was sitting in two seats. Letting go of operations and starting to think bigger was a total game changer! It’s a huge decision because you want someone who will maintain the same level of detail in the decisions they make.

In short, her process included:

• A year documenting all the things she was doing.
• Listing the tasks she was ready to delegate to someone else.
• Developing a job description based on all that information.
• Working with a recruiter specializing in filling the integrator position.

It still took a while, but she eventually found the perfect person for the job. They connected and she understood the agency right away.

Best Agency Advice: Hire Slow, Fire Fast

The most impactful advice she’s gotten, which goes back to her biggest struggle, is to let people go when it’s time. Don’t hold on and give them three or four chances to improve. You’re holding them back and holding your agency back from what it could be accomplishing. Since Quantious grew from such a small team, it was especially hard for Lisa to recognize when moving on would be best for the agency. In her opinion, the sooner you can do it the better -- or as they say, hire slow and fire fast.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Would you like to get out of your agency’s daily operations? Do you want more time to work on the business rather than in it? Have you set up boundaries and the right systems to make that happen? Have you made the key hires to help you do it smoothly? One agency owner found a way to force herself to exit from day-to-day operations in order to create more work-life balance.

Jessie Healy is the founder and CEO of Webtopia, a digital agency focused on e-commerce growth for sustainable and purpose-driven product brands. She started to build her agency around her freelance business and quickly grew it into a successful remote agency. However, she found herself basically chained to her desk and made a few key decisions to correct that.

In this episode, we’ll discuss:

• How your values can help you select a niche.
• Force your own exit from day-to-day operations.
• A hiring system that eliminates 90% of bad matches.

Sponsors and Resources

E2M 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.

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Transitioning from Freelancer to Agency Owner

Jessie was 7½ months pregnant when she lost her job and turned to freelancing. It’s something she was already considering but had delayed because she was unsure how to start. She wondered: How do freelancers get business? Where do they find clients? Thankfully, it was not as difficult as she thought. She posted her skillset on a forum and started getting work right away.

Jessie started her agency as a freelancer and first-time mom who wanted a flexible schedule. As she grew her business, she first hired other female freelancers looking for the same type of flexibility. However, the workload increased and she found herself in management hell. She was chasing people down to make deadlines and attend meetings. In the end, she realized if she wanted any sort of work-life balance and growth for her agency she needed an in-house team. They continued to be a fully remote agency but as employees now, every team member is committed to the agency and committed to the process. She no longer had to chase after her team because they were online when she needed them to be. It was a key turning point for her agency.

Building an Agency as a Trusted Partner For Clients

As the amount of work grew, Jessie realized there was an opportunity to fill a gap in the market. She had worked on the client side and found that, even with a good budget and hiring experienced agencies, she could not make them show up to calls. She felt there was a gap in the market for agencies that would work as a partner for clients.

So from the get-go, her agency started to work with small e-commerce companies as their marketing department.  They focused on the creative side of storytelling as well as the science of media buying. According to Jessie, most agencies were focusing just on the media buying aspect but her agency stood out for focusing on both. They also focused on strategy, which she felt from her experience on the client side that agencies were really lacking.

How Your Personal Values Can Help You Niche Down

Jessie admits that in the very beginning she was willing to do any sort of agency work for £50/hour. She would even take on menial or boring tasks like paid search. That is until she learned about the benefits of niching down.

Ecommerce became the obvious choice for her, since she had always been focused on consumer marketing.  Additionally, sustainability has always been the most important value for her so she brought that to her agency work.

When you have strong values for your agency, eventually you'll find yourself working with brands that share those same values. As time went on, she noticed they were working with a lot of female founders and a lot of sustainable brands. Jessie figured they were repelling brands that did not share those values and attracting the ones who did. She took to LinkedIn and started posting about sustainability. Eventually, she started working with charities and participating in tree planting activities and slowly built a clientele that resonates with her values.

Now the agency is approached more and more by sustainable brands that share her passion. As When you find your agency's unique identifiers, implement the change you want to see in your agency and you’ll attract people with the same values.

4 Key Agency Hires to Exit Yourself From Daily Agency Operations

When she moved to New Zealand, it put a lot of distance and time difference between Jessie, the team, and clients. She spent a year planning the move during a time when she felt she was constantly chained to her desk. She felts she was always either answering emails or jumping into meetings. Moving gave her some freedom but she knew she needed to make some key hires first.

Never be shy about hiring senior staff who have the experience to take over without the need for extensive preparation. Jessie hired four key roles to ensure everything would run smoothly without her:

1. Head of Operations
2. Director of Paid Social Strategy
3. Director of Google Ad Strategy
4. Commercial Director

With others dedicated to specific parts of the business, this freed Jessie up to focus on the 5 roles of an agency owner. Some clients still request Jessie or want face time with her so she makes time twice a week for those meetings. However, she is very strict about how much time a week she will devote to this.

It’s a change any agency owner can implement by having clear boundaries. Jessie moved to a different country, but even if she hadn’t she believes she would have eventually gone in this same direction because the way she had been overworking was not sustainable.

Setting Up a Hiring Process That Eliminates 90% of Bad Matches

Those four key roles were a critical part of her plan to exit day-to-day operations. So how did she find the best talent to hire? Two of them were promotions from within the agency, which is why you shouldn’t forget to empower your team’s growth. For the other two, her agency tested several sites but generally found LinkedIn was the best source.

They typically post the job in remote workgroups and do cold outreach, where they send messages with the job description. After that when a candidate looks promising, they have a cleverly built funnel setup. The funnel uses marketing language and leads to a series of tasks that includes written tests and videos to make sure the candidates expresses themselves correctly. This process ends with a series of interviews to evaluate both technical skills and culture fit. It is a carefully constructed process that eliminates 90% of bad matches.

Remember you must hire the right culture fit. Skills can be taught and learned, but culture cannot.

You probably won’t set up the perfect hiring system for your agency on the first try. However, it is a way to ensure that you won’t lose a ton of time in interviews with people that ultimately don’t have what it takes to be successful on your team.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

When was the last time you raised your prices? Do you know your profitability on each of your clients? If you haven’t raised your prices for legacy clients in a while, you’re probably losing thousands of dollars of revenue. Fear of increasing prices is a very common issue for agency owners. However, overcoming that fear might be easier than you think once you get out of your own head.

As Agency Scale Specialist on our team, Darby Copenhaver talks with hundreds of agency owners and finds that one of the most common fears is raising prices. It is a hard conversation that you should have with yourself and your clients. If you are transparent and communicate your value it will never come as a surprise.

In this episode, we’ll discuss:

• Agency owners’ fears around raising their prices.
• Understanding and communicating your agency’s value.
• Good systems to raise your prices and be more profitable.

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2 Most Common Fears Around Raising Agency Prices

Darby spends a lot of time helping agency owners get to the next level and says many of them are scared to raise their prices. For the most part, they seem to be fine with raising prices for new clients but stop themselves from increasing for existing clients. They will typically justify the decision by saying those clients helped them get to where they are now. However, that is like not taking credit for all the work you’ve done to grow the agency.

1. Loyalty to Legacy Clients - As an agency owner, you may feel a certain sense of loyalty to your oldest clients. They’ve probably been with the agency for years and it’s logical that you want to continue that relationship. You may also believe in order to raise prices, you need to provide additional value. However, if you’ve been working with a client for five years you should consider that you are most likely much better at what you do after five years of experience. Those clients are now getting a better quality of services and strategy for what they were paying five years ago. This is not how it works in any other industry.
2. Balancing Capacity and Pricing - Another big challenge agencies face is bandwidth. They find it hard to keep up with fulfillment and delivery as the agency grows. By not raising your prices, you’re handcuffing yourself to a client at a discounted rate. Meanwhile, you’re bringing in new clients at higher prices. It will take you the same amount of time, effort, and energy to complete the tasks for the legacy clients as for a new client. Basically, you won’t have the time and bandwidth to bring on more new clients paying the right price. In this sense, your loyalty is getting in the way of your growth.

Understand and Communicate Your Agency’s Value

Darby usually asks agency owners if they are effectively measuring and communicating client success frequently enough. It is commonly a question that takes agency owners a few minutes to answer and very few have a good answer.

Communicating client success can be a challenge depending on the type of agency. To start, focus on asking the right questions. You should really know what the client cares about from your onboarding process. This way, you can know what to measure for success.

If you’re doing that part correctly and getting it right from the beginning then you’re setting yourself up for success. You’ll be able to relate back to them the results that you’re getting in a matter that they know, understand, and care about.

Communicating the value you’re providing to clients is also crucial when it comes to the team. Your team should understand the value of their work for each client and why you charge what you charge. If you’re not communicating value efficiently to your team then you’re probably not communicating it to your client either.

3 Good Systems For Raising Agency Prices

• Have a healthy sales pipeline. You have to have predictability so you can be selective. If you’re raising prices for new clients coming in, you should have new opportunities lining up right behind them in case you need to rethink your pricing strategy. At the end of the day, it’s an experiment, so make sure you have a plethora of opportunities so you’re not just relying on the few you have in front of you.
• Include price as part of your success conversations. Part of the success conversations you should be having with clients needs to be laying the ground for upcoming price increases. Talk about what you’re investing in new technology, talent, training, etc. In short, all the things the "behind the scenes" things they don’t see but are contributing toward getting them more effective results.
• Start with the right mindset and expectations. Be prepared to lose clients as a trade off for more profitable ones. Expect that you may lose a few legacy clients and set the new pricing in a way that you'll be OK when that happens. Digital Agency Elite Mastermind members have said after getting the courage to double their prices and preparing to lose a few clients they ended up not losing any because their clients actually expected the price increase.

Training Agency Clients to Expect Price Increases

This is something that Jason and Darby discuss with mastermind members all the time. It’s part of building a relationship with your clients. You don’t go for the long-term, hard sell right away before you gain their trust. It’s a lot to ask someone to enter a long-term commitment, like a retainer, solely based on case studies and past successes. Instead, start with a foot-in-the-door offering.  Build a relationship, show some results and some wins which naturally lead to talking about a long-term commitment like a larger project or retainer work.

By doing that, you’re already building a relationship and trust where you’re no longer competing for price. You’ve proven you can get the results you promised and the price won’t matter. It also won’t be difficult to justify because there is now a foundation and an understanding of the value you bring to their company.

Other than that, once there is a relationship you should train your clients to expect a price increase at least once a year. If there are big gaps of time between raises then you're training them to see it as a rare occurrence.

By contrast, if each year you raise a percentage based on inflation and upgrades and you’ve already established communication with them where they understand the results you’ve gotten for them, they won’t question it.

Check out a Foot In the Door Framework with 90% Close Rate:  https://jasonswenk.com/foot-in-the-door

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Want more brilliant Agency Scaling Advice from Darby?

Check out one of his other interviews  or book a blueprint call with him and get a plan specific to your agency's scaling needs.

Has your agency struggled through tough times? Could you pivot quickly if necessary? Back in 2020 many businesses, including digital agencies, were scrambling to adapt during the covid pandemic. Today’s guest got her agency to the other side and almost back at pre-pandemic revenue. To do that, she put together a series of guiding principles her agency team sticks by as they search for ways to carry on. She shares lessons on why building leaders and leveling up leads to amazing agency growth.

Robin Blanchette is the founder and CEO of Norton Creative, an agency that specializes in the restaurant industry. With a niche like restaurant hospitality, her clients were particularly affected by the pandemic and subsequent lockdowns. Many in her situation tried different approached and found what worked for them. For her, it was 50% about diversifying and 50% digging deeper into her niche.

In this episode, we’ll discuss:

• How the pandemic affected her business.
• The principles that kept her team afloat.
• The importance of building leaders.

Sponsors and Resources

E2M 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.

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Choosing an Agency Niche Based on Experience and Passion

Robin was not an agency person by nature. She worked for an agency once in her 20s and never wanted to do it again. She had a background on the client side so as CMO and Media Director got to work on all the pieces of running marketing for restaurants and developed a real love for that industry.

Although she really enjoyed this work, she was also a single mother of small children. She was looking for something that would allow her to be more present in her kids’ lives. She naïvely thought running her own company would allow her that time and the agency was born from the idea.

Choosing a niche was a no-brainer because Robin already had a background in the restaurant industry. That’s where her heart is and what she is drawn to. Could she sell other things if necessary? Yes, but that’s where her expertise is and where she shines. Since then, they’ve worked with about 150 restaurant brands whether for projects or partnerships.

Adapting Your Agency Model In a Downturned Economy

In early 2020, most of Robin's clients were in the restaurant business and were closing due to the lockdowns. She had the worst week of her career as many clients couldn’t pay. Many were laying off staff and even she had to let go of some employees. It was a tough time, but one of the things she remembers is everyone's level of compassion and understanding. Even laid-off employees understood the decision and Robin really felt a sense of community in those moments.

Thankfully, not every client had to shut down; many changed their model to drive through and delivery and kept going. A lot of people used creative measures and figured out how to stay in business during those months. This helped Robin and her team stay afloat and keep fighting as well.

Some may think the pandemic proves that choosing a niche could be a negative. And back in 2020, Jason advised mastermind members to dedicate 50% of their efforts to continue to support their industries and 50% of their resources to explore new industries that were thriving with the new events.

For her part, Robin decided to go even deeper into the restaurant industry. They did a lot of pro bono work and provided support to their clients. They also did a ton of branding work for digital businesses, which they now continue to do for bigger brands. All in all, they did some work outside of their niche while also digging even deeper into their industry kept them afloat in these difficult times.

4 Guiding Principles for Getting the Agency Team Through Tough Times

The pandemic was certainly a hard time for many businesses. Agency owners had to get creative and look for new opportunities to get their agency past these difficulties. Like many, Robin did think of shutting down at some point. After all, she didn’t have to answer to shareholders. However, her team was looking to her for leadership. Inspired by them, she decided to not give up and figure out what was next for the agency.

Everyone had to be focused and working, so she created these 4 guiding principles:

1. Focus on what you can control. Don't waste time or energy on things you can't control. Instead of worrying about the unknowns, what do you know to be true and how can you use it to your benefit?
2. Get comfortable getting uncomfortable. Every member of the team needs to be flexible and take on new tasks and truly be a team player, even when something is a little outside their comfort zone.
3. Assume positive intent. The uncertainty of a health crisis and changing economy is unsettling but international positivity is the only way to get through it.
4. Don’t waste the crisis. Think about how to leverage the forced changes into ways of leveling up or renewing the business.

Leveling Up & Building Leadership

Robin’s principles for the pandemic are values any agency owner can implement at any time. You don’t need a global crisis for your team to understand the agency’s mission, vision, and values. When you have guiding principles, your team feels empowered to make decisions that meet the guidelines you've established.

Robin believes the measure of success for her guiding principles is the fact that the agency made it through and returned to their pre-pandemic revenue. Those principles helped not only to grow the agency but also to build leaders in the organization.

Coming out of the pandemic also helped her commit to leveling up in every way. It’s something her agency is applying to talent, and partners. She took this opportunity to turn into the best version of herself, which it’s really something we should always strive to do.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

Would you like to create more freedom in your agency? How can you spend less time making decisions? How can you make the right decisions to grow your agency without too much emotion or personal bias? It's time to improve your decision-making skills and spend less time on small agency tasks. Today’s expert uses science to explain how you can greatly improve your decision-making skills in order to create the role you really want within your agency. All you need is discipline and the right framework to keep yourself accountable.

Dr. Frederic Bahnson is a surgeon who found a new career path in coaching. Initially, he needed information on how to make a career decision and found valuable resources that helped him not only with his career but with other aspects of his life. He decided to share those tools and created his own framework, which he now shares in his book Better Than Destiny.

In this episode, we’ll discuss:

• Why struggles with decision-making could start with your ego.
• 3-step framework for making better decisions
• How to know when it's time to replace yourself in daily agency operations.

Sponsors and Resources

Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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The Process and Skill of Decision-Making

As much as we theorize about decisions, we can all fall into these same mistakes again. Decision-making is a skill and as such, you’ll get better with practice. You develop a framework, evaluate how you’re doing with it, get feedback, and observe the results about why something might have gone wrong. Sometimes you can attribute a bad outcome to bad luck.

You can’t control everything, but always make sure to assess the results you get from implementing the decision-making process. Pay attention to how you go about making important decisions and see if it’s effective, and if not, go back and revise. The important thing is to have a process.

Being Honest and Self Aware Making Decisions for Your Agency

You can approach decision-making from many angles. Dr. Bahnson encourages us to remember we all have biases and blind spots. You may have tendencies to go for things that will be beneficial in the short term but not so much in the long term. There are systematic ways in which we make decisions that are not in our best interest or fail to follow through with the decisions we’ve made.

We find ways to justify this to ourselves but if we were honest we could identify the patterns of how we consistently fail to make the best decision or double down on a bad decision. We fool ourselves into thinking we can’t give up on a project because we’ve already invested so much in it. You may think giving up is admitting the resources you poured into something are really lost. That leads to you digging and digging deeper into a hole, ultimately not where you want to be.

Is Your Ego Playing a Role in Making the Right Decision?

Some of it is ego and some of it is just your ego tripping you up into thinking you’re being objective. You think you understand yourself well enough not to worry about biases. Recognizing your own biases when you’re calm does not mean they won’t be a problem for you. That perspective disappears once you’re in the heat of the moment. You start to make decisions based on your emotional reaction or the status quo and not consider that you’re being affected by your blind spots. This is something that we can much sooner recognize in another person than in ourselves, which is where our ego comes into play.

Should we completely remove emotion from the equation when making an important decision?

No, Dr. Bahnson does not recommend that. Understanding how we feel about something is an important part of the decision-making process. The idea is to use emotion as a piece of information but it shouldn’t be in the driver’s seat when we’re making a decision. One way to do that is to have a process you can implement as a series of steps to making a sound decision.

3 Step Framework to Making Better Decisions

1. Decide how much time, effort, and resources are worth spending on a particular decision. Don’t fall into the trap of small decisions when you’re building your agency. Otherwise, you may end up spending too much time on things like what color to paint the walls. It’s not that the details don’t matter, just not so much if you’re doing it at the expense of strategy.
2. Think about what’s important to you when it comes to a particular decision. People approach different decisions in different ways depending on their priorities. What are your priorities and how much of a role do they play in the decision you're making?
3. Consider your options and narrow them down to a few viable ones. If you determine the decision is in fact important and you need to spend time on it, figure out how to thin out your options by identifying a top few that you’ll spend time researching. It becomes less overwhelming when you have a few concrete options to consider.

Deciding When to Step Out of Daily Agency Operations

A common decision agency owners face at some point is when to step out of daily operations. It is one of the most important decisions you’ll need to make for your agency to start empowering your team and grow. You need to be clear on the direction you want to take your agency and which skills you personally bring to the table. If you’re honest with yourself, you’ll be able to identify tasks someone else could be doing much more efficiently so you can focus on agency growth.

As he details in his framework, Dr. Bahnson suggests that you start by recognizing all the little things that you’re spending time on, like making follow-up customer calls. Whatever it is, if it’s taking up more time than building your strategy then you should ask yourself if you’re better off paying someone to do that. That person would at least be able to put 100% of their attention on those tasks. You shouldn’t spend more time on the day-to-day operations than on the big initiatives for your agency. Instead, try to focus on things that will matter two or three years down the road.

Why Do People Struggle So Much With Delegating?

It requires a certain level of humility to recognize you might like how you do something but someone else could do a much better job. It can be hard to admit for an agency owner who built their business from scratch. However, it is very likely someone who doesn’t do it exactly your way could actually get better results doing it their way.

When is it time to start looking to replace yourself in some agency tasks? When you assess how you’re spending your time and realize you’re focusing too much and spending too much time on small tasks. If you’re spending more time on a three-day framework than you are on three-year planning and strategy, it’s time for a change.

Decision-Making for Agency Owners

Similar to Dr. Bahnson’s framework, Jason advises mastermind members to consider two things when they are making a decision:

• Is it going to save you time?
• Is it going to give you freedom?

If you want your time and freedom to be a priority when it comes to agency decisions, then it could be useful to create rules and make decisions based on the rules. Giving yourself rules around decision-making is a good way to keep yourself accountable. If it’s well thought out, these rules will be easy to follow and something you can evaluate and update.

Giving yourself a goal with rules will force you to focus on what truly matters. You just need to be honest about the amount of time and energy a decision is worth. Dr. Bahnson says a good rule of thumb is asking yourself -- how much will that decision matter in three days, three months, and three years from now?

Growing an agency, you need to focus on the three-year term. You shouldn’t be focusing on the three-day horizon. You won’t have the energy to focus on both and do it well.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

What is the life cycle of a video marketing agency? How can you transition from accidental agency owner to something else in order to fulfill your goals? What does life look like after you sell your video marketing agency? Today’s guest hadn’t seriously considered selling until he stepped back to realize the bigger picture. He remembered his original goals and realized there were other projects he wanted to focus on. This guest shares the way he started and grew his agency into something a team member actually wanted to buy. He also shares how he created a smooth transition for the buyer and decided what is next in his entrepreneurial journey.

Doug Dibert is the founder and creator of Magnfi, a video software platform, and also the founder of Crossing River, the video marketing agency he recently sold. Like most agency owners, he fell into the business by accident when he started making wedding videos and soon turned that into a business. However, as Doug grew his agency he started thinking about selling and pursuing his filmmaking passion.

In this episode, we’ll discuss:

• How to differentiate your video marketing agency.
• Knowing how and when to sell your agency.
• Finding the right buyer for your agency might be easier than you think.

Sponsors and Resources

E2M 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.

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Starting a Video Marketing Agency

Doug went to film school and actually started using the school’s equipment to do paid jobs. He mostly worked filming weddings and got inspiration from a class on documentaries to try to apply those techniques to his wedding videos. So he took the material he filmed at one of those weddings and made a small trailer video. He posted it to social media and went to sleep. The next morning, he had thousands of views, shares, and messages from brides asking if he could do the same for their wedding. After a while, he also started getting requests from businesses that wanted to invest in video marketing.

This is how the agency was born. They produced videos for businesses all over the world and focused on small to medium-sized businesses. Then the '08 recession hit and the agency lost all its marketing clients. Thankfully, the wedding video business stayed strong so the agency stayed afloat and also started to do videos for social media.

Video is such an important tool and every company should utilize it. Back then, Doug had a hard time standing out among big video production companies. He thought about how to differentiate himself and concluded that instead of being a video production company they would focus on video marketing strategy. Their services went beyond creating video content. It included helping clients optimize their YouTube channels and animate their logos. They especially focused on creating content around the client’s strategic goals. The word got out and they became the go-to video marketing agency for businesses.

Creating a Platform to Systematize Video Content Creation

Back in 2015, Doug rejected a few clients who wanted to film videos on their phones and send them to the agency to be turned into professional-looking video content. He didn’t see the potential at the time. Later Doug realized 90% of his clients wanted videos shot and edited the same way. He got the idea to create a platform to systematize video content creation.

Simple videos like testimonials, “about me” videos and expert tips are the core of what every business needs to see some real growth. With this in mind, Doug set out to create this platform for low-cost video content creation. His goal was to satisfy 90% of clients' needs and, in case they wanted something more personalized, they would pay an extra fee for those services.

Seeing the Bigger Picture and Deciding to Sell Your Agency

Doug’s big goal when he started was to make movies. The opportunities to create videos for companies came by chance and the agency started to grow. He had people willing to invest in him as an entrepreneur who wanted to see if he was able to grow a business, so he focused on that.

The shift in his mentality came from having a business coach who helped him see the bigger picture. He learned you have to continuously open your mind to new possibilities or you will remain stagnant. When his coach realized he wanted to make movies, she asked “why not next year?” He had been thinking about growing the agency more and delaying selling a bit longer. However, thanks to his coach he started thinking --  “why not next year?”

Back then he was stuck being the hands-on agency owner who wanted to do everything. This shift encouraged him to start hiring people to replace himself and focus on what he did really well. He hired amazing talent, built a great team, and started to focus on the business aspect of the agency instead of the creative aspect.

Finding the Right Buyer Might Be Easier Than You Think

In his case, Doug had no strategic team or advisors come in and help him prepare to sell. It was actually one of his editors who expressed interest in buying the agency. After looking into the agency’s recurring revenue, clients, assets, etc, the editor decided to buy. They also paid cash, so there was no finance clause or several payments over a period of time. In the end, the entire process from the conversation to selling the agency took about 3 months.

Doug also mentioned he was building a video editing platform and agreed to refer video production clients to the agency. In the end, he ended up staying at the agency for another year. He presented the new owner as his new partner so he could start building relationships with the clients.

Continuing his work at the agency and having other projects also helped Doug find purpose and fulfillment. Overall, the transition after selling your agency can be hard. You may expect to feel euphoric and end up thinking “what do I do now?” This is why you should always dedicate time to think about your life after the sale. Do you want to travel and rest? Maybe start another business? Or just focus on other projects? Whatever it is, knowing that there’s something else will help you avoid the emotional fallout that comes right after selling your agency.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

Is your agency purpose-driven? A shared purpose is something your employees will rally around and identify with. It is critical to create a sense of belonging and have their buy-in. Today’s guest built a successful agency with a great culture his employees really appreciated. When he exited the agency, he felt so inspired by the outpour of messages from those impacted by its culture that he decided to write a book on creating an agency with a purpose and a soul.

Ralf Specht is an author and business leader dedicated to making soulless companies a thing of the past. As the CEO of a global digital agency, he focused on building a culture focused on connecting the different teams. Years later, he received many messages thanking him for the agency culture he had created.

In this episode we’ll discuss:

• His proven framework for building culture.
• Why you should have a purpose if you want a successful agency.
• How he made culture a hard fact.

Sponsors and Resources

E2M 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.

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Building a Global Agency

When Ralf accepted the challenge of creating a global agency, it started with offices in four countries and 80 people. It was certainly a challenge but he remembers it as the highlight of his career. He focused on creating a sense of belonging and a culture that really motivates employees.

All companies should have a purpose and a soul and that should come before any revenue goal you may have. You should also have core values that speak to the behavior you want to see in your agency. This will be the way to establish yourself and really start growing.

By the time he left years later, Ralf had grown the agency to 19 offices and 1200 people. When he retired, he received many messages thanking him for the culture he had created for the agency. He felt this message was too valuable to keep it to himself, so he was inspired to write Building Corporate Soul and Beyond The Startup.

3-Step Framework for Building a Great Agency Culture

Hiring based on beliefs, attitudes, and soft skills are buzzwords that get thrown around a lot these days. In their beginnings, Ralf and his partners sat down to think about the culture and values they wanted to see in their agency. At first, they set out to write a list of the behaviors they wanted to see in the agency. This proved to be difficult so they changed their approach to list the behaviors they did NOT want to see. It was easy starting from there and it also helped them shape an idea of who they wanted to become.

This exercise eventually led them to figure out their purpose. It’s an exercise he recommends to all agency owners because answering the question “why are you here?” will be crucial to implementing this framework:

1. Shared Purpose (Being): We’ve been discussing purpose in the agency world for years. However, Ralf believes that if the end game of a purpose conversation is a great PowerPoint deck, then you achieve nothing. He prefers to talk about shared purpose, which has to be a.) shared by the company’s leadership and b.) shared with all stakeholders.
2. Shared Understanding (Believing): This includes all strategic elements like the mission, vision, and values plus an often overlooked fourth element “spirit.” For Ralf, spirit speaks to the intended company culture. As the agency leader, what sort of culture do you want to see in the organization?
3. Shared Behaviors (Belonging): Studies show that the number one reason why employees are now leaving their workplaces in spades is that they don’t have a sense of belonging. The real work will start after you have shared purpose and shared understanding defined on paper. Up to that point, it is all about strategic thinking. Now you have to actually make sure that the behaviors in your agency reflect what you wrote to establish shared behaviors.

Agencies are not any different than any other company in the sense that they very much need to implement these principles as much as they would recommend their clients to do so.

Creating Consistent Culture Across Different Agency Offices

Ralf’s agency started as a global agency, which posed the challenge of building a culture where the different teams felt part of a whole. To address this, he and his partners enforced a single P&L mindset and a mantra of better, faster, cheaper, with an emphasis on better always being #1. With that, everything within the organization was set up to support collaboration rather than competition between offices. They also designed complementary roles across the four offices. Therefore, the offices had to work together or they would not be able to deliver on the various client briefs.

As to the belonging element, Ralf believes if a CEO tells you his agency has a soul, it doesn’t necessarily mean anything. If you want to know whether or not a company has a soul and a great culture you don’t need to ask the CEO. You should ask the employees  - they are the soul of the organization.

This is why he implemented a formal evaluation structure four times a year. Under this structure, every manager talked to their team to understand what mattered to them. This evaluation included which parts of the company worked for them and which didn’t. Those evaluations included a score and financial benefit depending on the score and worked very well for them.

Finally, they implemented exchange programs to encourage better communication between the different offices. This way, employees had the opportunity to make connections and understand other work cultures.

A Great Culture Gets You Through Difficult Times

In his book, Ralf studies cases of companies that do culture right. There’s so much to learn from companies like Airbnb and Salesforce that place belonging at the center of their operations. As we know, culture really shows when things get difficult. It’s always easy when things are going well and everybody feels good. However, not every company has a culture that can get them through the bad days.

Airbnb gave a great example during the pandemic when the hospitality industry went through some really difficult times. You may not know that this company had to let go of 25% of its workforce. This is because they did it the right way. We all learned of similar cases where the companies, unfortunately, did everything wrong (like firing hundreds of employees via a Zoom call) and the whole world knew within a few hours.

Airbnb had been honest with its staff since the beginning of the pandemic. It was unknown territory for everyone, after all. They sent several memos throughout the year with updates and finally sent a written communication notifying them of their decision and detailing their reasons.

The main reasons this was such a great example in protecting culture through difficult times is:

1. The company made sure the people who had to leave didn’t leave with a trauma.
2. Those who stayed understood those who were leaving were a critical part of the company’s success thus far.
3. The people who had to leave received a lot of support from the company.

All in all, it was a master class in ensuring that your company’s soul remained intact after such a difficult time.

Why Internal Culture is #1 in an Agency's Reputation

When we talk about culture, there is this perception we’re talking about an airy and soft thing. Ralf made it a hard fact. This is why his book contains real-life examples of companies with souls. Employee votes really matter more than anything else when it comes to the companies’ soul index. When it comes to agencies, they are companies like any others and should strive to have strong cultures.

However, it is common to see an agency’s value propositions do not match its external value propositions, which are usually about what they do for their clients. In fact, very often there is no internal value proposition. There should be one and it should be in sync with the company’s external value proposition. Studies indicate that internal culture is one of the most important factors of a company’s reputation. You can’t fake it. It has to be real and it starts with a shared purpose.

To create a sense of belonging:

• Ask yourself, what does it feel like to belong in your agency?
• How can you create belonging and help others feel like they belong there?

Some people want to build a $100 million agency and have no purpose beyond that. As someone who’s run a very successful 8-figure agency, Ralf says you don’t get to that level of success without a purpose. Remember without a purpose and something they can get behind employees will not feel identified with the company or feel empowered to make decisions. This way, the company will never run without you, which should eventually be one of your goals.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

Do you want to scale your agency but fear growing too fast? Today’s guest was part of the exponential growth of a big-name agency and never thought he want to work in the agency business as a result. However, he took the lessons learned from that experience and grew his own agency making sure to work on what he loves and build a team around what he doesn’t.

Hernan Vazquez is the co-founder of Scale Driven, a digital agency that helps clients develop high-level marketing strategies that generate revenue at scale. He was part of the success of Frank Kern's agency and its eventual failure when they grew too much, too fast. . He later took those lessons to start implementing the benefits of developing your own brand to grow your agency faster.

In this episode, we’ll discuss:

• Why you should do what you like and hire for what you don't.
• Why it's normal to question owning an agency.
• Lesson learned from fast, exponential growth.

Sponsors and Resources

Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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Hernan has been in the digital agency business for the past 14 years. Throughout his career, he always did media buying, SEO, and paid media work for a few clients. He was also the marketing director on the client side for several brands.

At one point, when he was feeling burned out from all the work, Hernan sat down and wrote out the amount of time spent on each job, the revenue per hour it brought him, and the fulfillment he got from each. In the end, agency work was the most profitable and fulfilling. So he decided to go all-in and the agency went from being an afterthought to being his sole focus.

Do What You Like and Build a Team Around What You Don’t

Hernan has built several teams for agencies and he has always been involved in every aspect, from operations to marketing. However, those experiences have helped him realize he does not enjoy the operations portion of the business as much. If he were to start over, he would hire leaders faster.

Oftentimes, agency owners are a bit cautious when it comes to starting to fill roles in the agency. This is commonly out of fear they won’t sustain the business enough to make payroll. This was certainly the case for Hernan, but now he realizes there are creative ways to compensate and motivate employees independent of revenue and cash flow.

For instance, he later hired someone in charge of recruiting and developing new talent. He offered that person a percentage of revenue and they accepted. He is now building a sales team and the sales director was offered a similar deal. As he has learned, you don’t necessarily need cash flow to afford those salaries; you just need the right people who share your vision and can maintain mutual trust for building the agency.

Hiring people who excel in areas where you don't allow you more time to focus on the things you truly enjoy. Being self-aware of what you like and are good at is the key to knowing what pieces you can delegate, eliminate or hire for.

It's Normal to Question Owning an Agency

Agency owners can get to a point where they are working on things they don’t like and feel exhausted. Many feel like prisoners to the agency they've built and this is typically when they start looking for a way out.

For Hernan, he was working as Frank Kern’s main ad guy and then transitioned into the role of CMO. He ran ads for 30+ clients and also did some coaching for Frank's students. When the agency started to grow, he also had to hire media buyers and train them. However, when Frank partnered with Grant Cardone and the agency saw exponential growth, going from 30+ clients to 220+ clients in eight months was a huge adjustment.

The team went from a handful of people to a staff of more than 60. They were also getting a lot of different types of clients, which is not what they were used to. The problem with explosive growth was, that although the revenue and demand were there and they were hiring people to keep up with the demand, they just couldn’t catch up to the demand operationally.

Hernan was stuck hiring and training a lot more media buyers and handling the ads for many more clients while also running the marketing for his own agency. He understandably ended up burned out and wanting an exit from the agency world.

Lessons Learned From Fast, Exponential Growth

After a year of feeling burnt out, Hernan observed other agency owners who really enjoyed the work. “What are they doing differently?” he thought. The difference was they were operating in their area of expertise.

Hernan is a marketing guy who really enjoyed that aspect of the business but got stuck deep in operations. That’s why he no longer enjoyed the work. He thought if he could just rebuild that concept of the agency on his own terms and without compromising on the things that he didn’t like to do, it would work.

One of the things he learned was it’s not about having an endless supply of clients but about having the right clients. They were at one point taking anyone and everyone and servicing all types of companies from webinar funnels to car dealerships. He knows now, it's better to grow slow, find what you're best at and be an expert in one area.

If you build a system, it will get you enough potential clients so that you can pick and choose, you’d guarantee that

1. You’ll only do the work that you can deliver on.
2. You can charge the right amount.
3. It won’t take too much time.

Some agency owners fixate on building a big agency they're willing to sacrifice anything for it. They’ll end up 60  years old,  realizing life passed them by and they didn’t enjoy it.

The Importance of Creating a Personal Brand

For agency owners, creating your own brand is as important as growing your agency's brand. It is the best way to turn on the faucet and bring in the people you need. Of course, the goal isn't bringing in more clients than your team can handle but rather being able to pick and choose the clients you want to work with.

Hernan and his team have been working on rebuilding his personal brand. After being on both sides of the equation, he sees having benefit of hiring for a role that puts a lot of value and brings in clients. Now he’s starting to apply this and it is impacting the business on many levels. As expected, they get a lot more people wanting to work with them, but they are also very motivated from the start and they stay longer.

His message for agency owners is doubling down on content and putting advertising dollars behind that content for your ideal demographic. This is the #1 strategy that has a long-lasting impact on your business.

For the 3 Golden Rules on Scaling and more on scaling your agency, click here to be redirected to Hernan's page.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you setting up the processes you’ll need to sell your agency one day? How would you go about weeding out the red flags to identify the right buyer? Today’s guest started his agency at 25 and didn’t think he’d ever want to sell. The pandemic made him reconsider, but he needed to find the right buyer. Someone that would benefit his clients, his team, and allow him to still be a part of his agency's future.

Aaron Levenstadt was working at Google when he started offering SEO consultancy services to referred clients. When some of them asked for on-going support, he started Pedestal Search. His agency focuses on helping businesses drive more productive traffic from search engines to their websites or stores. Now, years later, he found the right buyer and continues to be a part of his agency’s growth.

In this episode, we’ll discuss:

• How he decided to sell.
• Red flags in possible buyers.
• How to identify the right buyer for your agency.

Sponsors and Resources

E2M 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.

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A Lesson on Accelerating Agency Growth Early-On

Aaron started his agency charging $6K a month for SEO and analytics services, which was great for a new business. He believed rushing to scale too fast could affect his ability to provide a good service. It took him 6-7 years to get over the $1 million mark.

There were many lessons involved over the years of that agency growth process. One big lesson was learning how to explain what they do as an agency. Part of niching and finding your audience involves learning to clearly explain what you can and cannot do for clients. Once they nailed that part and had the processes to support it, growth accelerated. He also chose this time to start raising prices now that the agency had found an audience that resonated with its message.

Getting Serious After Hitting The $1 Million Dollar Mark

Getting to the $1 Million mark was the moment when Aaron actually started to get more serious about the agency’s future. He and his team laid out a blueprint of how the company should run and got to work. It was a good moment for him to start replacing himself in several tasks and move to more of a strategy-based role.

Basically, they developed an organizational chart where they could look at ratios of account strategists to see how many clients each could handle comfortably. The result was 4 to 9 clients per strategist depending on the size of the account.  They then added an execution and delivery layer to the chart and started filling those roles, which freed Aaron to focus on more strategic and directional level thinking for the agency.

Two Major Red Flags in Vetting Potential Buyers for Your Agency

Selling the agency was not the goal from the start. Aaron saw himself working in the agency until the end of his career and saw no need to sell it. This is where having guidance like the Digital Agency Elite Mastermind is really helpful. Aaron didn’t really consider acquisition seriously until some of his mentors started to ask questions about his future and legacy. Questions like “where do you see the agency going in the future?”, and “are you planning to grow your staff of 25 employees, or to 50 employees?” got him thinking

Around that time, he started to get emails from companies interested in buying his agency. It was the start of the pandemic and he got regular inquiries. However, he still wasn’t sure.

In dealing with potential buyers, Aaron found a few red flags he shared:

1. Why are they interested in your agency in specific? If they cannot articulate a reason then they are just shopping around and are not serious.
2. What is their reason for acquiring an agency? Are they buying to grow in a niche? Do they want to expand in a specific service area? Are they buying you for your team and processes? If they are not anchored to a why then aren't legitimate.

If you’re going down the path of deciding to sell, you need to understand where a buyer is coming from and where they are going. In Aaron's experience, buyers back then were only thinking about the low-interest rates and didn't have a real plan. A serious acquirer needs a full plan to cover different key factors like the culture fit which is so important for the possible success of a merger.

Identify the Right Buyer With a Commitment to Your Agency Vision

Aaron finally found the structure and vision he was looking for when he started talking to a buyer with a very clear vision from the beginning and showed a sort of confidence in what they could do together. Of course, there were difficult points where Aaron was not sure if he wanted to go through with the acquisition. He had built this agency working by himself with his laptop and meetings clients at a Starbucks or a restaurant. It was his baby.

However, throughout the entire process, this buyer proved to be the sort of person that does what they say they’re going to do. A reliable buyer provides a sense of relief because an acquisition is commonly a time-consuming and stressful undertaking. Aaron was able to visualize himself working with the new, merged company and that the acquisition would benefit his clients and his team.

Additionally, this buyer’s ability to work with his agency leaders really helped drive value for his clients and provided valuable opportunities for his team to learn and grow.

Things He Would Change That Could Have Boosted His Growth

Things turned out pretty good for his agency, but if Aaron could go back to when he was starting out in the industry he would be much more intentional about defining his ideal client sooner. His advice is to focus on finding your niche and audience early on. This empowers you and your team to say no to everything else and has a big impact on your growth.

He would also hire an operations manager a lot sooner. As an agency owner, it’s a commitment to start hiring for key roles, but having someone that can be responsible for running operations is incredibly helpful. Thinking back, Aaron now sees with a team of about 10, is the ideal time to hire someone to ensure operations run smoothly.

Agency owners are mostly visionaries and are not particularly good with management. You need the “how” people that take care of the logistics to implement your ideas and get you where you need to be. This is the first step in setting up the systems to eventually sell one day.

If the owner is doing everything, the valuation and the opportunities to sell will go down rapidly. An operations manager will help you both have more free time and focus on the vision for your agency.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

Would you like the confidence to raise prices and triple your agency’s growth? Are you ready to empower your team and transition to a true Agency CEO? That's exactly what today’s guest has been able to do over the past couple of years. She is on the show talking about overcoming her two biggest challenges: removing herself from sales and the fear of raising prices. What she realizes now is that she was standing in her own way and letting go has actually led to amazing agency growth. Taking a leap of faith and reinventing her role was what her agency needed to reach its full potential.

Audra Brehm is the founder of Brehm Media, a social media agency that focuses on the fashion and beauty world. As she grew her agency, she doubted whether clients would see their value and agree to pay once she raised her prices. As CEO, she realizes the right client will see the agency’s value even when you don’t.

In this episode, we’ll discuss:

• Raising prices to affirm your agency's value.
• Determining which clients are a good fit for your agency.
• Empowering your agency team and removing yourself from agency sales.

Sponsors and Resources

E2M 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.

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Why Raising Prices Affirms Your Agency’s Value

Audra was looking for a new job in Denver when an interviewer asked her why she hadn't opened her own agency. She really couldn’t come up with a reason and thought "why not?"

That company ended up being her first client and, as she’s embarrassed to admit, she started charging $800 a month for social media and marketing services. She was just excited to be starting her own business. Entrepreneurs commonly become a "yes man" in their early stages and figure they’ll eventually get other clients and raise their prices.

Audra admits she hasn’t always had a good idea of her agency’s value, but listening to their clients talk about the agency was an excellent way to understand their worth. If the client could see her agency as its marketing arm and an extended family, then she knows they are positioning themselves as a valuable partner.

As someone who loves to learn, she strives to always be ahead of the curve. If they can do that as an agency, then she knows they are providing value. So then, why wouldn’t people pay what they charge?

The thought of raising her agency's prices used to be terrifying. Every time they increased, Audra worried she would lose clients. If she could go back, she would tell herself not to be so afraid. It’s ok if clients decide to leave after you raise your prices. The ones who stay are the right clients.

In retrospect, Audra thought the agency would be ruined with a reputation of being too expensive. Now she realizes her agency’s value and knows the importance of raising prices. The reputation isn't about being too expensive, it's about being receiving the elite value Brehm Media provides.

Transitioning Out of Agency Sales and Empowering the Team

As the agency has grown, Audra had a really hard time taking a step back from sales. She doesn’t like to feel out of control, however, empowering the sales team meant putting control in other people’s hands. Getting out of day-to-day operations was the first time that she actually questioned what she was doing in the agency.

In time, she found a new way to continue participating in the sales cycle by handling the final sales calls with new clients. She found that relationship-building before taking on a client is actually her favorite part of the sales process. So instead of taking herself completely out of sales, she gets to engage and learn more about clients while still letting go of some control and empowering her team. Plus, she feels clients appreciate the fact that the entire agency has their back, including the owner.

It can be hard for many digital agency owners to transition out of day-to-day operations, but finding ways to still be part of your agency will help you with that transition. Later on, you may even find that you don’t need that small role anymore.

Audra has embraced her role as CEO and realizes the team won’t need her as much. Now she can really live the work-life balance agency owners strive for. Last year was the first time she went on a family vacation and didn’t take any business calls or check emails for two weeks. She had confidence that her team could handle anything that came up.

Finding Ideal Clients That Are The Right Fit For The Agency

It’s good to be self-aware enough to recognize when your agency can't deliver the results clients expect. For instance, if a client expects a 10x return in a month and you know you can’t deliver, then tell them. Are there agencies out there that could get them there? Yes, but it’s better not to promise a deliverable you know you probably can’t reach.

For Audra, this is the first step of avoiding the wrong clients that are not a good fit for her agency. Other common red flags a prospect won’t make a good client include asking to split monthly payments into multiple charges. This clearly shows they cannot afford you. They have a cash flow issue and are banking on your agency's results in order to pay moving forward. Another issue is clients who think that they know more than the agency does. This fosters a very toxic environment where the client does not treat the agency as a partner but expects more of an order taker.

To qualify a prospect, Audra's team asks what a prospect's monthly revenue is just to be sure that they can afford her agency. They also want to see what else they're spending on other marketing efforts. This helps the Brehm team learn whether the client is diversifying their marketing budget on other vehicles.

Audra says to run the other way if you encounter a company that cannot explain who they are and its future vision. If they can’t answer where they hope to be in 6 months, 1 year, and 10 years, it's a massive warning sign.

Getting Through the Rough Patches in Your Agency Journey

Audra feels a lot of people don’t believe in what’s possible for themselves and only see the obstacles. You need to have clear goals for your business. That’s something you should look for in clients and that you should have for your agency.

Having an agency is a rollercoaster but the highs should outweigh the lows. And if they don’t, then maybe you should reconsider if this is what you want to be doing. In the end, you should be proud of what you built, the business, the lifestyle, and your team.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

 

Check out Audra's previous interview:  https://jasonswenk.com/digital-agency-ceo/

Are you trying to improve your client retention rate? How often do you communicate with your clients? Building a good relationship with your clients starts immediately after they sign on to work with your agency. Today’s guest takes us through his process of creating a level of trust with clients that make them want to stay. With clear goals set from the start and constant communication, they’ve only lost one client in ten years!

Jeff Barnes is Chairman of Barnes Health, the strategic healthcare marketing, and public relations agency be started in 2003. He began his career in the healthcare marketing and public relations space on the client side 34 years ago. Being able to look at things from the client’s perspective has been a plus for him as he has really focused on building good relationships with them. He sets clear goals and always makes them feel like they are the priority.

In this episode, we’ll discuss:

• Keeping client churn rates at a minimum.
• Why constant communication and a clear process are the key.
• Why you should strive to find clients that really fit with your agency.

Sponsors and Resources

E2M 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.

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Jumping From the Client-Side to Agency-Side

Jeff had been working in healthcare marketing and public relations for 15 years before joining “the dark side” of the agency world. Basically, he wanted the freedom and more flexible hours of being an agency owner. Back then, there weren’t many marketing firms in the healthcare niche, so he saw a good opportunity.

Barnes Health started with one client and the agency has grown significantly since. He still has that first client and, actually, a total of four legacy clients that have worked with the agency for 20 years.

Jeff has always preferred to work with a retainer pricing model. Some agencies may feel clients take advantage of working under a retainer expecting too many services under the retainer umbrella. However, the most important advantage for Jeff is having a guaranteed revenue, which helps him sleep at night. Nowadays, retainer clients account for about 95% of the agency’s revenue.

How to Keep Agency Client Turnover Rate At a Minimum

The average agency turnover is 25% for a variety of reasons. With these statistics, Jeff usually gets bewildered looks when he says he’s only lost 1 client in 10 years.

What’s his secret? Well, he’s learned from speaking with his clients most agencies are exceptionally good at the front end. They sell their services with a dynamic attitude and promise that gets clients excited for working with them. However, client success is an important KPI and many agencies fail when it comes to customer service.

There are two components to an agency 1) client acquisition and 2) client service.

It is a lot easier to retain an existing client than to get a new one, so Jeff focuses on providing great customer service to keep the turnover rate at a minimum. He has trained his team to communicate with clients on a regular basis and have a quick response time for any questions they may have. Each client, big or small, should feel like they’re the #1 most important client.

Remember if you neglect clients, they’ll probably start wondering why they’re working with you and start looking for other opportunities. Answer the unasked questions -- and if you don't communicate it, they don't know it happened.

Setting Clear Goals to Get Clients On Board With Your Strategy

The moment a client agrees to work with your agency, you should quit promoting yourself and immediately transition to learning as much as you can about that client. Focus especially on their goals, objectives, and the criteria under which your work will be measured for success.

The more educated and informed you are about every aspect of their operations, the more valuable you can be to your clients. Jeff’s team typically gets clients to sign off on the strategic plan that they build together. They list the goals and objectives with clarity on who is responsible, the timeframe, and how success is to be measured.

The overall strategy is documented and everyone on the team and the client is familiar with each step. It may be revised from time to time, but the client should always have access to the documents.

Maintaining A Good Relationship With Clients

Jeff favors constant communication with clients on a regular basis, even daily at times. In his opinion, this shows the agency is a very valuable resource for them. If there is no communication for three or four days, his team reaches out to make sure everything is in order - follow up on an email or run an idea by them.

He also emphasizes how important it is to do this with both smaller and bigger clients. The amount of attention should not vary based on size or a client's portion to topline revenue.

Moreover, this way of working helps you be more selective with your clients. If you don’t feel like communicating constantly with your clients, then there’s probably an issue there. Don’t take in clients that you don’t want to communicate with. You’ll start resenting them and feel burnt out.

Adapting Your Agency To a Changing Market

The one constant in life changes, and in the agency world, you better be ready to adapt to a changing market. Jeff has had a long career and in those years he has learned to adapt to the internet, websites, and social media. New things are coming now with novelties like the Metaverse and NFTs which he says he will leave to his team to understand and educate him.

To adapt to changing times, he likes to hire young professionals who understand and are using the newest technologies. It’s so important to stay ahead of  new trends because a lot of the work marketing firms do has to do with consultation. Staying on top of emerging technology, educating and informing clients about new tools is the best way to present new ideas to your clients.

However, Jeff says he is careful to not portray his team as being good at everything. It’s better to actually be great at one thing than to pretend to be good at everything. As a client, he always asked agencies what they were great at. If they answered everything, he knew they weren't a good fit.

Your Goals Should Reflect the People You Want to Work With

It's important to have clear goals of what you want to accomplish in your agency. Your goals should go beyond a revenue level. Go deeper with your goals and really create a future vision. What type of lifestyle and freedom do you hope to have? What do you need in order to really love your work and your business? Do you know what sort of people you want to work with?

For his part, Jeff credits his love for the business a being selective with which clients his agency takes on. In 20 years, he has been fortunate to never have felt like quitting. Regular communication with clients does not frustrate him because he actually likes the people he's working with and doesn't have any “nightmare clients.”

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you planning to sell your agency at some point in the future? How are you preparing to make the process easier for yourself and your team? Our guest for this episode created a lifestyle business that allowed her to lead the life she wanted. When she decided to sell, she realized the business was already set up to work without her, which made for a pretty seamless selling process when the time for an acquisition came along

Jodie Cook is an entrepreneur, writer, and athlete who started as a freelance social media manager. She created and successfully ran her social media agency, JC Social Media, for ten years -- even growing it during the pandemic. She's sharing the story of how she grew her agency and sold it, without an earnout, in 2021.

In this episode, we’ll discuss:

• Why she decided to sell her lifestyle business.
• How she prepared for the selling process.
• Why you should hire a broker.

Sponsors and Resources

E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions. E2M is 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.

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Building and Growing Her Agency

As often happens with agency owners, Jodie started as a freelancer and went on to create her agency once she had too much work to handle on her own. To promote services, she went to networking events telling people she was a social media manager until she got a few clients. After a while, she got to a point where she had a full-time job worth of work for herself and could choose between continuing as a freelancer or building a team.

As for hiring, Jodie says she stuck to hiring other social media managers. It was a role she knew and could evaluate and train for and as a result, she developed a successful training process.

However, she also sees her agency could only ever grow as far as her own knowledge would allow. And in hindsight, it would've made sense to scale by hiring for roles that are not her strength.

Setting Up a Lifestyle Business

Agency owners get into the business for various reasons but at some point, we can all expect to have some degree of freedom. Jodie found herself as the owner of a big agency where everything relied on her and didn’t feel happy. This is when she did something that would change her life and her agency. She created a document with four columns where each column represented a step for how the business would start to change to a lifestyle business that could run without her.

This was a very important exercise that would later allow her to be better prepared for a sale later on. The four columns contained:

1. Every single process that happened at the agency
2. Who was in charge of every task (at that moment, it was pretty much all her)
3. Who would be in charge in the future (either by getting promoted or looking for a new hire)
4. Her plan (actions she needed to take and even dates)

Growing the Agency Through the Pandemic and Beyond

Back in March 2020, just as the world changed with the pandemic, Jodie had been running her agency as a lifestyle business. She usually traveled for a couple of months of the year and the business ran very well. She was no longer needed there all the time for things to work correctly.

This all came crashing down with the start of the pandemic. Clients in the hospitality and travel sectors were suddenly out of business and the agency shrunk by about 25% in one week. The shift meant Jodie got back to being very much involved in the business.

Initially, she tried to figure out how to make a shift in the changing economy. This included a decision on whether or not to lay off part of her 16-member team. After a team meeting, they decided to carry on, secure the clients they still had, and work to look for new clients.

The agency offered online webinars, replacing all their in-person events, and started to build the business back up. They not only managed to get back to where the business was before March 2020, they actually grew past it.

Preparing to Sell a Social Media Agency

With the agency back on track, Jodie asked herself what was next. She could easily go back to having a lifestyle business, but she really didn’t want to be pulled back by another emergency like this one. So she made the decision to sell in August 2020.

Once she got intentional about an acquisition, Jodie started to reach out to people that knew more about the subject and could point her in the right direction. The key is not discussing an agency sale with your team and just having a small group of trusted people who can help you navigate the process. Keeping it quiet until you have signed agreements saves you from hearsay and speculation by your clients and team.

She eventually started working with a broker who clarified how to prepare for the sale process. Basically, it entailed setting up processes, a second tear management team, and documentation. Jodie was relieved to see most of this was already in place because of how she set up the agency to begin with.

This gave her the opportunity to sell faster and be comfortable meeting with potential acquirers. She wasn’t selling in a desperate moment, loved her team, and actually raved about them so it was genuinely easy to convince buyers how great her agency was. Furthermore, this helped her feel more like she was interviewing the buyers instead of them interviewing her.

Successful Interviews with Potential Buyers

When discussing either a sale like this or even interviewing prospective clients, you want to feel in control. The person who is more eager to speak and prove themselves has lost control of the meeting. A possible buyer might even think you have something to hide if you seem too anxious.

As Jason advises, you want them to speak first because whoever speaks last is now in control of the meeting. Also, this way you can listen to them talk about their agencies and their plans for the future. Jodie listened to potential buyers first and then offered relevant information about the agency. If she had spoken first, she would probably go on tangents that didn’t really matter to them, which could ruin the meeting entirely.

Letting the potential acquirer speak first also gives you time to evaluate them to see if their agency is a good fit with yours. Remember, culture fit is one of the most important aspects of a successful acquisition.

Selling Your Agency Without an Earnout

All in all, the purchase process took six months, which is pretty quick for this type of transaction. There were two months of meetings with potential buyers. This was followed by two months of heads of terms with three of them, and then two more months of due diligence.

Initially, the three offers they got included an earnout and tied the purchase of the business to Jodie's role in earnout period. Basically, they wanted her to take care of the team and sales which would get her more involved in the business rather than stepping away, which was the goal.

Ultimately, she was able to convince the buyers against the earnout. Clients tend to grow attached to agency owners in the sales process and they only want to deal with them. They agreed to have no earnout and the handover process took two weeks.

It takes a lot of confidence to get the deal you feel is best for you. Don’t be scared into accepting the first offer-- have a number in mind before negotiations begin and be prepared to wait for it.

Is it Important to Get an M&A Broker?

Jodie did consider handling the sale by herself. If you commit to learning everything you need to learn for this process, it may be the best course for you and your agency. However, looking at the hours she would have to invest into this each day (at least 10 or 12) she decided labor would be best put into continuing to grow her agency. She opted to look for and hire a broker.

If you’re working with a broker, remember they are incentivized to get you a sale but not necessarily to get you the best possible deal. Sometimes brokers won’t educate you on whether you could be making a better deal, so remember to learn as much as you can about the process. Have the confidence to say no and wait for a better offer. It will save you a lot of regrets.

When looking to hire a broker, Jodie discovered many don't charge based on the completion of the sale. They charge a monthly fee and hence they may not necessarily be as invested in selling your agency. Because of this, she made sure to ask for completion rates and chose someone with a very high completion rate.

Jason also recommends using a broker that charges an upfront fee, another fee once you get to the LOI, and a percentage of the exit. No recurring fee. This means they have more skin in the game are more invested in selling your agency.

Life After Selling Your Agency

Life after your agency’s sale could be more difficult to adapt to than you imagine. A lot of agency owners feel depressed and purposeless after selling their life’s work, and it’s understandable. Your "why" for selling should be very clear from the beginning. Additionally, you should start planning for your post-sale life and have other projects in mind so you can find your new purpose.

Jodie visualized the sale and had in mind the exact amount she wanted from the sale. She also had plans to travel and start a new stage of her life. It looked slightly different than she had planned, as it was still the middle of the COVID restriction. However, she took the time to figure things out and even wrote a book, Ten Year Career.

Niching Down to Be a  Successful Social Media Agency

When she first started her agency in 2011 she says it was still possible to be a general social media agency. That is something she would change if starting an agency today. “I don’t believe you can be a general social media agency. I believe you have to have a niche,” she says. She would choose a vertical and horizontal niche. Then her agency would be experts in a specific space like Instagram for restaurants or TikTok for dentists.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

Does your agency's branding stand out from the competition? Is your offering and positioning unique? Does it establish your agency's authority in your niche? Today’s guest explains how he turned his speaking career into a thriving agency thanks to smart branding.

Travis Brown is the founder and CEO of Mojo Up Marketing+Media, an agency focused on building unstoppable personal and company brands. Travis has been building his brand since long before stepping into the agency world. Now, with his diverse and talented marketers, he helps others figure out and grow their brands.

In this episode, we’ll discuss:

• Getting started with public speaking
• Leveraging speaking engagements to grow the agency
• What works with branding.

Sponsors and Resources

E2M 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.

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Taking the First Steps in the Public Speaking Space

Before ever thinking about starting his agency, Travis began a successful career as a motivational speaker. One of the most valuable lessons he learned was that the hardest part wasn't the speaking itself, it was getting people to pay him to get on their stage and speak.

He hired a coach early on who taught him to invest time in figuring out his brand and unique positioning. Once he learned to do that for himself, it led to more than 2,500 paid talks over 10 years.

Travis started out speaking about leadership, management conflict, and corporate training and eventually turned to youth speaking. Later on, he got a creative position as America’s anti-bullying coach, where he could use his experience while also having a big impact. This new role was an opportunity to get to another level as he toured the country and had interviews on national TV. In hindsight, this taught Travis the power of creating unique positioning in the market where, instead of competing with anybody else, he was complimenting them.

After many years in that industry and working as VP of marketing in a bank, he decided to start his own agency to help other people build their brands.

How Can You Start a Speaking Career?

It is a powerful feeling to get up on a stage. It’s the sort of experience which changes how people see you. In fact, Travis now rejects invitations to tradeshows without a speaking engagement. He recognizes the moment you step on a stage people will look at you as an expert, which is a game-changer for elevating your brand.

Try to link speaking engagements to your area of expertise and your core beliefs so you really come off as an expert. Travis always takes the topic he’s asked to develop and links it back to his branding, which is his specialty.

How can you start? He recommends starting local. If you have a niche, look for an opportunity to do a breakout session. For example, if you specialize in marketing for dentists, reach out to the local dentist association. Once you do find an opportunity, build the presentation thinking like a marketer:

• Have video and engaging content.
• Offer valuable nuggets of info.
• Have a free offer to get them into the funnel.

Following that, focus on leveraging the first speaking engagement into another and then another. Before you know it, you’ll be on a big stage with an audience filled with your ideal customer avatar. Being on stage will put you in the position of being the expert who can help them. They’ll get in line to hire you and your agency.

Turning Speaking Career Into a Thriving Agency

Travis says he has done it both the right and the wrong way. When he started his agency, he had accumulated a lot of experience in elevating himself and his brand. However, he didn’t know how to grow an agency. He got out there and got a lot of business for the agency with his brand. He soon learned it couldn’t be all about him. It had to be about the team and the focus really needed to shift to showcase their abilities.

His first attempt to do this didn’t go as well as expected. It was done too quickly and it didn’t make sense to remove him so fast when his personal brand was driving all the revenue. He had to start over and get to a point where he transfers the knowledge and credibility over to the agency.        

A perfect example of how to do this right is Gary Vaynerchuck and Vayner Media. Gary is the brand, but clients never expect to work directly with Gary himself. Travis has started to introduce his audience to his team, instead of just making it the Gary show. This is how Travis is rethinking his model.

Building your personal brand can be the fastest way to bring in revenue for the agency. You just need to know how to do it correctly so the agency can shine as well.

What Has Worked for His Agency’s Branding

Right now Travis and his team are leaning into the “diverse and talented” core of the agency. They realized they have a very diverse team, which is not common at all. The team of 15 people includes black men and women, Asian women, and Hispanic and white women. That diversity led to opportunities with companies that are looking to:

1. Work with a diverse agency, and
2. Trying to figure out how to get a similarly diverse team.

Now they are focusing on helping clients tell a story and develop an impactful brand through the lens of diversity. This way, they can help tell diversity stories by actually being one. They recognize that the diversity within the team helps them be that much better at telling diversity stories.

A lot of agencies may say they are diverse but can’t actually back it up. Credibility is so important nowadays and people are able to tell if you’re claiming you can do something but not actually doing it yourself. For his agency, diversity has become an important part of who they are and it also works as a unique identifier, which all agencies need.

What Are Your Agency’s Unique Identifiers?

Travis believes your agency should have its own “three uniques,” which are three things that identify and differentiate your agency. Some other agencies maybe have one or even two similar differentiators, but no other company should have those exact three since they are true to your specific DNA.

These identifiers will help you create your own unique persona as an agency. Those are your core values and how you will get very different types of people in your team to all work towards one single goal.

Moreover, being clear about your brand and core values will help you find like-minded individuals to join your team. For Travis, diversity is part of the agency’s culture and what he is building. He is passionate about building a brand and telling a story to help his client make the most impact and he wants a team that is equally passionate about that.

2 Tips on Hiring and Client Success

Travis likes to make sure that whoever his hiring is really passionate about doing the thing they’re hired to do. A lot of times in an agency you’re trying to fill some roles quickly. You end up hiring someone who is good but is not necessarily passionate about their role. In hindsight, he would really slow down and make sure people convince him that they want to be in their position within his company.

He also wishes he had spent more time understanding how to create a better client experience. His agency's end product is always good, but the process was sometimes a bumpy ride for clients. Now he really wants to focus on making the entire experience exceptional from start to finish.

Improving Customer Experience

Remember that you may be celebrating every time to make a sale, but the client is probably thinking “did I make the right decision?” A good way to ease their anxiety is to immediately communicate with them after the sale. Jason likes to send quick personalized videos where he welcomes the new client and offers a few pointers. People are usually surprised to learn his videos are not automated. This is why it’s worth it to think about ways to make each client feel appreciated. That extra effort will definitely separate you from everyone else.

Travis has learned there’s a difference between having a talented team and having a successful process. A successful process leads to a great experience. You need to map out every single instance within the client journey where you can impact and connect with them.

As the lead strategist in his agency, he has also learned once clients get to a stage where they’ll be communicating directly with the team, they feel abandoned by him. He empowers his team and lets them do what they do best. However, he is working on finding a way this in a way clients still feel taken care of.

As an agency owner, you need to position yourself as a thought leader and make it clear at some point clients will be working with the team.  Build up the team and make sure they know they will get better results than if you took care of every single aspect. Also, map out the process so they’ll know who they can turn to at each stage of the process.

Should We Look for Mentors in The Agency World?

After years of building his business from scratch, Travis admits he would’ve liked having someone to turn to. Nothing like that existed when he or Jason were building their agencies, but it is the entire reason behind the mastermind. Jason's goal is to be the resource he wished he had when he was starting out.

Think about how many times you’ve given advice to your team or partners. You probably can’t seem to do that with yourself and it’s because you are too attached to your business and your way of doing things to see other possible ways to approach a solution to your problems.

If you learn to ditch the competition mindset and look at it more as a community that understands and supports your most difficult challenges, then you won’t need a mentor.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.

Is it time to pick another niche for your digital agency? There are tons of benefits of niching down. However, there are a lot of concerns about making big changes and focusing on a specific industry. The good news is there are ways to test out a new niche instead of going all-in.

Alano Vasquez is the founder and CEO of Cyberwhyze, an agency that helps cyber security companies become brands that scale. Although he found success and even more room for opportunity in this space, he has had other failed attempts at niching down and understands it can be scary to choose a new market and fail. However remember, failures are just lessons to help you move closer to success!

In this episode, we’ll discuss:

• Failures that become lessons learned when niching down.
• Testing out a new niche, rather than going all-in right away.
• Having the right team in place to give your freedom in your agency.

Sponsors and Resources

Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free.

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First Steps and Lessons Learned When Niching Down

Alano was working in sales at a tech startup right out of college. He was laid off, unfortunately, but when another startup hired him, he soon realized they had no marketing. He decided to use what he had learned and focused on becoming a full-staff marketer.

After learning the tech industry and creating his own agency, Alano started working by with any client in the B2B space. He worked with education, healthcare, and fintech companies trying to offer as many services as he could. Within 3 or 4 years, the agency hit a ceiling of about $1.5 million in revenue.

In trying to work out a solution, Alano noticed a lot of density with the agency’s cyber security clients. However, at the time he actually decided they would focus on the tradeshow space. It seemed like the right choice at that moment. Unfortunately, this happened right before the 2020 pandemic and the end of all in-person events for quite a while. They had spent time and resources on experiential and interactive marketing when everything went virtual because of Covid.

How to Identify a New Niche for Your Agency

After his first failed attempt, Alano and his team went back to the basics and turned to the opportunity in the security space he had noticed before. They focused on branding and content creation for cyber security companies.

Before you pick a niche you pretty much start working with everyone so you can start to see what you like and do really well. You can see where you have success and start weeding out the things that you don’t like or do well. To his surprise, Alano quickly realized this new market presented a big runway of opportunities and was dealing. His agency Cyberwhyze started working with big brands sooner than he thought. He has rushed to create the capabilities in order to keep up with what the clients wanted from his agency. Now sees a possibility to double down on this niche.

You Can Test Out a New Niche Instead of Going All In

In hindsight, his agency would have niched down much sooner had he followed the advice he now gives to his clients. Some of his clients have a few verticals and try to put out a lot of broad-stroke marketing, trying to make it a one-size-fits-all. He finds clients tend to do this to avoid going through the process of creating an entire website for each vertical. Instead, Alano suggests creating a funnel with positioning that speaks to each specific persona.

Agencies can also apply this same principle. There’s no need to build an entire website for a new niche, just build a funnel, test it out on LinkedIn and run some Google ads. It serves as insurance to make sure you’re not going down the wrong path and it might help you feel more at ease when you eventually decide to go all-in.

The Value of The Cheat Sheet as a Lead Magnet

Coming from sales, Alano and his partner knew very early on they did not want to give away strategy for free. They found a way to productize strategy and sell it as a core component of their work.

A good way to attract new clients to your strategy is a cheat sheet. CMOs love them and even bigger brands use them. Cheat sheets come in many forms and you can use them as an opportunity to offer something really valuable while capturing data to continue marketing to your prospects.

Cyberwhyze offers a cheat sheet paired with a video webinar that explains how companies can use it to their advantage. This has helped them build trust and led many people to their website. Even some big brands have contacted him based on their cheat sheet, so the agency didn’t have to jump through hoops to get their attention. It’s all about realizing there’s really no reason to offer strategy for free and later feeling remorse for it.

Having The Right Team to Provide You Freedom in Your Agency

Agency growth is also about continuing to refine strategy and making sure the right people are in the right seats. Agency owners are normally the think tank of the business and the ones coming up with all the client strategies. This could be because it is expensive to replace yourself in that role early on. In fact, most agencies don’t seek to do this until they hit the $5 million mark. For Alano, you have two options when it comes to replacing yourself in the strategy role:

1. Do it anyway and maybe offer a profit share if you feel you can’t quite afford it yet.
2. Keep trying to do all the strategy but become a bottleneck for your own business.

For Alano, it made sense to do this early on, even before hitting $1 million. It was the best decision for his agency. His clients have come to really like the person he hired for this role. The benefit for Alano is peace of mind and freedom. He is able  to take a vacation and only work until 5 PM knowing the agency is taken care of by his head of strategy.

The idea of replacing yourself might be uncomfortable. However, the sooner you can replace yourself as the head of strategy the better if you’re going after bigger projects. Remember, you probably started this business to eventually have more freedom.

This resistance could also stem from the fact that they don’t know the steps they need to take to make sure that this new hire will work. Agency owners are usually visionaries and many struggle with execution or hiring for execution. You need clarity of where you’re going and who you’re going after from the beginning. This way, your team will feel empowered to make decisions without you. Once you have this, you can hire the right person to replace you.

Staying True to Your Why as Your Agency Grows

Alano had to figure out his agency’s growth before getting to this point. He went back to the basics to figure out his individual why and his agency’s why. But don’t forget, figuring out your why should be followed by communicating it to your team and revisiting it from time to time to keep everything cohesive.

In this new stage, he is thinking beyond bootstrapping. He will now look at acquisitions, as he continues to explore his niche market.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you measuring your client retention rates? Do you trust your team will build good relationships with your clients? A lot of agency owners focus on making the sale but neglect customer service. Today’s guest will talk about why you may be losing clients and why it's important to have someone dedicated to client success.

Khushbu Doshi is a customer service specialist with a passion for strategizing, making realistic actions plans, and following up on their implementation to get real results for agencies. She leads the customer service and sales division at E2M Solutions, a full-service white label partner that helps agencies scale their business.

In this episode, we’ll discuss:

• What works when it comes to improving your retention rates.
• Effective agency-client communication.
• How you should structure your customer service.

Closing the Gap Between Sales Promises And Customer Service Reality

Agency owners commonly focus on signing the deal and ringing the bell when they finally get that client. As important that is, you definitely don’t want to drop the ball when it comes to following through in customer service. If you do, you’ll end up losing clients and wondering why you have a high turnover rate.

Why is this so common? As a customer service specialist, Khushbu believes many agencies rely too much on the newest tools and miss the human-oriented approach. In a world of modernization, we all lean on technology to do things for us. This can be great for freeing up more time to focus on the things you do best. However, when it comes to customer service, it can lead to paying less attention to new customers and turning your attention to getting new sales.

It’s common to see a discrepancy between the possibilities that agencies present to customers during the sales process and what actually ends up happening. To begin bridging the gap, we should focus on the fact that the values you show on that first call with the client should be consistent in their journey with your agency. This is the only way to really earn their trust.

Managing Client Expectations After the Sale is Made

We’re not saying you shouldn’t try to improve sales or use new technological tools available to improve operations. However, once the deal is closed and you have a new client, make sure all the promises made during the sale are actually met. If you promise the client they’ll have tons of communication and feedback calls and then you don’t really do that, you’re already starting on the wrong foot.

Clients may be very skeptical at the start of the relationship and may even start to question the decision to work together. They need to feel reassured that you're a trusted partner who looks out for them and their interests.

Think of it this way, if you don't communicate it -- as far as the client is concerned, it didn't happen. Take immediate action whenever is required and immediately act once the client expresses concern or raises a red flag. Make sure that their journey with your team is seamless.

Structure the different stages of your agency sales process. Once a client gets to a new stage, introduce them to the team members they are going to be working with, rather than just having a salesperson just disappear. That same salesperson can be the one to explain from now on, they will be working and communicating with a different team. Also, as part of the onboarding process, define the process and roles within the agency. Let clients know who on the team is responsible for each part of the process so they know who to turn to when they have a question.

How Often Should We Communicate With Clients?

This will obviously change depending on the stage of the client’s process with your agency. In the beginning, clients need more frequent communication until they trust your methods and see results. Khushbu says her clients start with weekly meetings with the customer service team to ensure a seamless journey.

This allows her team to meet clients’ expectations and learn about their concerns as they move through the first stages. Apart from the weekly calls, she underscores the importance of letting clients know exactly what the team is doing. They should know the research they are doing, the number of team members working on it, something new added to the pipeline, and the time dedicated to these details.

Additionally, try to personalize communication with each client by offering alternatives and asking what they prefer (email, Slack, etc.). Remember sometimes a phone call is the best way to let your client know you are invested in the work you do for them. Nothing replaces a personal touch.

Communicating to Clients in a Monthly Newsletter

Khushbu suggests creating a monthly newsletter for clients detailing what the team has been working on that month. Rather than being skeptical about your work, they will start to trust that you know what you are doing and will be glad to have all details about the next moves.

In fact, many agency owners who started to use the monthly newsletter come back to Khushbu to tell her it has helped increase retention rates.

It’s all about attention to detail and customized communication with clients. Instead of spamming their inbox, prepare something that speaks to the specific plan and the results the team has been getting from the campaigns. They want real data and real information. When they get that, they know you are the one to trust.

Plan for Success: It’s important that you are constantly planning new things for your client and showing them what you’re planning to do. As mastermind member Deacon likes to say, “if you don’t have a plan for your client, they’re going to give you their plan, and it’ll never work.” You’ll be forced to follow their plan and then have to take the blame once it doesn’t work.

Should Agencies Have a Particular Role Around Client Success or Customer Service?

There’s certainly a need for roles focused on making the customer service experience the best it can be. We see agencies with poor retention rates that have not realized the huge gap between the picture they presented in the sales call and what they continue to present to clients afterward. A client success manager role is a must since there’s a thin line between salespeople and customer service. This is why these teams need to work closely to make sure that the experience is consistent with the client from the onboarding to the customer service and deployment.

These issues tend to create an internal battle. You may be very good at sales, but if you don’t believe that your team can deliver on what you’re promising then you’ll never get your client’s trust. You may be confident enough to sell but if you’re not confident about what will be delivered, clients will see right through that. Working on your customer service will bridge the gap between client expectations and the reality they get.

Using automation is helpful for some things and frees your time up to focus on other things. Don't focus too much on a particular template or tool when the way to take your customer service to the next level is great, personalized attention.

Want the Support of Amazing Digital Agency Owners?

If you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency, go to the Digital Agency Elite to learn all about our exclusive mastermind.

Are you a proactive or reactive agency owner? It's common to come into the business not having a full understanding of what it takes to grow your agency or the type of issues you could face. Today’s guest tells us about the process of growing his agency, ditching the competition mentality, and how he wants to help agency owners prepare to grow their businesses.

Bear Newman founded his agency Bear Fox Marketing with the belief that running a digital marketing agency specializing in SEO wouldn’t be as difficult as it actually was. Years later, he says it was one of the best things he ever did but admits he wasn’t quite prepared for some of the challenges. He has overcome a lot of obstacles, including losing clients that accounted for more than 50% of revenue. Now, with a full staff of employees and as he starts to step away from day-to-day operations, he crafted The Bear Fox Principle, a book to help prepare agency owners for what they should expect in the path of growing their business.

In this episode, we'll discuss:

• Running an agency is more than just knowing how to do the work.
• Why one client shouldn't be more than 20% of total revenue.
• Why winning doesn't mean crushing every other agency.

Sponsors and Resources

Agency Dad: Today's episode is sponsored by Agency Dad. Agency Dad is an accounting solution focused on helping marketing agencies make better decisions based on their financials. Check out agencydad.money/freeaudit to get a phone call with Nate to assess your agency's financial needs and how he can help you.

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Running an Agency Is More Than Just Doing the Work

Bear was doing SEO work as a freelancer when he decided to open his own agency. “I may not have fully thought through that career move,” he jokes. At the time, his reasoning was just, why not? How difficult can it be? He soon realized there’s a lot more to running an agency than just being able to do the work.

For starters, he had no idea what he should charge clients in order to run a successful business. For his first SEO account, he planned to bill $750 a month. That has definitely changed by now.

He also had to figure out every side of the business, from sales to servicing and marketing. Now his agency has great client reviews and is the #1 rated agency in Idaho. He has employees that are much better at selling the agency’s products and work on marketing, ads, and creative content to keep the pipeline full.

There's a Lesson in Every Experience While Growing Your Agency

A lot of agency owners live by the words “if you fail to plan you plan to fail.” Bear does believe in the importance of planning, but he also knows that you can’t plan for everything and tries to figure it out whenever he can’t. For example, he once got a meeting to pitch for the largest pest control company in the Valley. The marketing director quickly let him know he was just meeting with him as a courtesy because he was never getting that account.

Instead of feeling bad, he decided the experience of pitching the project would be enough. With that in mind, he went ahead with the pitch, trusting it would at the very least help him improve. In the end, he ended up winning the account.

Once he did get the account, however, he had no idea what to charge. Some people may say he should have anticipated that, but for him, the beauty of the agency world is also having the confidence to say “whatever comes at me, I’ll figure it out.”

Stages of Starting to Build Your Digital Agency Team

For Bear, his search for an agency team really began when he realized he was unable to keep up with the workload. He wanted to maintain the quality of work and didn’t want to be everything to everybody.

Like many agency owners, he focused on specific challenges. Bear knew needed a team of specialists who were really good at what they did so he could start to delegate tasks.

When he started his search for employees, the most important quality for him was having the right attitude towards hard work and never choosing to do the minimum.

Candidates were offered a client brief and the opportunity to create 2-3 Facebook ads and landing pages. If they only did two, he knew it wasn’t a right fit for him. It was important to find people who always strive to do everything above and beyond for clients and the agency.

The Worst Thing His Agency Overcame

The first year of Covid was the hardest for his agency. Two of his clients were making the transition to handling their marketing in-house and they accounted for about 53% of his total revenue. It was a really hard time, but he had to come up with a solution. He could either downsize and prepare for the loss in revenue or he could face the problem head-on.

He decided to hire a sales team to get that revenue replaced. Of course, the team was going to need time to set in and build the funnel. Bear made the bold move of hiring two salespeople, just in case one of them failed. If this didn’t work, he would lose the cost of both of them, but it proved to be the right decision. By the end of the year, they grew by 70% and now one of those salespeople is his VP of Operations.

Lesson learned: As Jason tells his Mastermind members, having one client account for 50% or even 20% of your revenue is definitely too risky and just not smart. Bear realized this and was already thinking about the options by the time the clients pulled out. However, he learned he needed to be more proactive than reactive in these types of situations.

Agency Owner Transitioning Out of Day-To-Day Operations

After hiring the right team to keep the agency’s momentum going, Bear is trying to extricate himself from day-to-day operations. At some point, every owner reaches a point where they need to spend more time working on the business rather than in it.

Bear now oversees staff training and overall tries to keep an eye on their metrics, clients, and set the course for the future of the agency.

With the right systems in place, the agency is getting all the pieces together to really accelerate its growth. For Bear, it’s like building an engine. The more expertise you have the better engine you can build, which will be your foundation to really move forward to the next stage of your growth.

Why You Need to Ditch the Competition Mentality

After all the ups and downs experienced with his agency, it was really important for Bear to create a guide for agency owners who are just starting in the industry. The Bear Fox Principle is a book about what it takes to build a successful digital marketing agency.

A lot of agency owners don’t know what they need to understand in order to grow their business. The book goes over the metrics you should know and what you need to understand to make a campaign successful. It also touches on integrity and how you can do what’s best for your client as well as your company. Both parties have to win and not because you win somebody else has to lose.

The “crushing your competition” mentality is a pervasive attitude in the agency world. Even Jason used to think that making it in his market meant crushing every other agency. That’s not true. You can learn a lot from people in your industry if you open up your mind.

Remember that success is created, not taken from someone else. Even if you don’t get a particular account, that doesn’t mean you won’t get another one. You just have to be resourceful.

Want the Support of Amazing Digital Agency Owners?

Do you want to be around amazing agency owners that can see you may not be able to see and help you grow your agency? Then go to the Digital Agency Elite to learn all about our exclusive mastermind.