Welcome to a compelling new episode of Build a Better Agency! This week, host Drew McLellan is joined by familiar faces Susan Baier from Audience Audit and Brian Gerstner from White Label IQ to discuss the findings of the 2025 Agency Core research study. Together, Susan and Brian have launched Agency Core, a nonprofit initiative dedicated to providing agency owners with powerful, unbiased data about what's really going on in the agency world—and the latest results are as sobering as they are enlightening.

Drew, Susan, and Brian unpack the study's in-depth findings, based on responses from over 700 agency leaders. They explore the five distinct agency segments identified, analyzing which mindsets and practices set high-performing agencies apart from their peers. The discussion covers the recurring challenges hurting agency profitability and optimism, including the ongoing struggle with building a strong pipeline, the reality of staffing issues, and a noticeable decline in overall optimism among agency owners compared to previous years.

The trio digs into what's driving these trends and why, despite all the talk around new technologies like AI, the most pressing problems for agencies remain much more fundamental. You'll also hear their perspectives on the importance of specialized positioning, the power of thought leadership, formal client retention strategies, and maintaining a proactive approach to agency marketing—plus, the critical role of community and peer support in navigating tough times.

If you're looking for actionable insights and a candid, data-driven roadmap to greater agency success, this episode is a must-listen. Tune in for practical strategies and encouragement on how to move from feeling stuck to thriving, even in a changing industry landscape. By the end, you'll be equipped to make meaningful changes and inspired to take the next steps toward building a stronger, more resilient agency.

A big thank you to our podcast's presenting sponsor, White Label IQ. They're an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.

What You Will Learn in This Episode:

• • The power of niche positioning and thought leadership for agency resilience
  • Why so many agency owners are struggling and the importance of moving from tactical to strategic work
  • Pipeline challenges as the top threat facing agencies today—far surpassing concerns about AI
  • How formal client retention systems and proactive strategic thinking fuel growth
  • The critical role of reputation: it's what others say about you, not what you say about yourself
  • Team loyalty initiatives and their connection to agency performance and staff retention
  • Choosing your path: the necessity of specialization versus the struggles of being a generalist