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Do you feel like growing and scaling is always a struggle? Need to differentiate yourself from other agencies? Finding success as an agency owner isn't easy. But with the right mindset, you can hit the 8-figure mark and even power through an eventual agency acquisition. Whether you want to grow your agency fast or plan on growing it to sell, you need to hear from the one and only Mitch Joel, who's done it all.
In today's episode, we'll cover:
Today, I talked with Mitch Joel, co-founder of Mirum and founder of Six Pixels Group. Joel is a marketing superstar. He was one of Canada's Top 40 under 40, does keynotes for top brands, and has a best-selling book, Six Pixels of Separation. Mitch also sold his agency Mirum to WPP (a.k.a the world's largest ad agency). And he's on the show to talk about how he was able to grow, sell, and move on from his agency.
3 Steps to an 8-Figure AgencyFor many agencies, the 8-figure mark is the "we made it!" moment. But how do you get there? Honestly, everyone's path is a little different. That being said, here are 3 universal steps you'll probably need to make.
There's another way to "make it" without hitting 8-figures. Getting your agency acquired is the dream for many of you. It happened to me, and it happened to Mitch. But what do you do when it actually happens?
Your first instinct may be to go out and spend the cash. Don't do that! You have to wait until the acquisition is 100% finalized before you celebrate. The entire process will take a while. And you need to be focused on continuing to grow your agency AND focusing on your new "biggest client" — the company acquiring your agency.
Force yourself to wait to celebrate. Afterward, you have to get used to not calling the shots. It's tough. You can always do what I did; go start a podcast. It gives you back some of the control you're used to. Plus, you get to help people out. It's a win-win!
#1 Way to Differentiate Your AgencyAre you tired of being a "me too" agency? Then change your philosophy. STOP trying to be like your competition and you do you.
Don't be like everyone else, but instead figure where you stand on these four things that set you apart from every other agency:
How can you create a differentiate using these four pillars to stand apart? First, create trust with your clients by showing tons of empathy. Develop amazing internal chemistry that is evident in the way you carry out your core values. And display the level of authority that conveys domination in your area of expertise. Then, use your messaging (website, social posts, etc.) to display this differentiation to your prospects.
Looking for a Payroll and HR Solution for your Agency?Payroll and benefits are hard. Especially when you're a small business. Gusto is making payroll, benefits and HR easy for small businesses. You no longer have to be a big company to get great technology, great benefits and great service to take care of your team.
For a limited time, Gusto is offering a deal to Smart Agency Master Class listeners. Check out Gusto.com/agency for 3-months FREE once you run your first payroll with them.
Considering a merger or acquisition to scale your agency? Wondering what's involved in selling, but overwhelmed at the thought of it all? Relax! The processes can be stressful, but it's totally manageable and can also be a great growth strategy. Whether you want to stay in control and grow your agency with an acquisition, or you want to exit your business with a massive payday, here's everything you need to know about agency mergers and acquisitions.
In this episode, we'll cover:
Today, I talked with Jose Lozano CEO of 9thWonder — a full-service digital marketing agency with offices around the globe. Jose didn't start off with a massive agency, and he didn't grow one... he bought one! After selling his company to a massive organization, he led a group to acquire an agency to scale up. Jose shares why and how to scale your business by acquiring another agency.
3 Things Agency Acquirers Are Looking ForSelling your agency is an important decision. Are you really ready to sell? What will you do after you sell? Will you merge agencies and stay on, or get acquired and move on? The answers to all of these questions matter. But, before you can even start thinking about them, you have to ask the big question — is your agency sellable?
When CMOs and big organizations look at agencies, they aren't just looking at profitability. They're looking for opportunities. Jose has done internal M&A polling, and I've talked to thousands of agency owners on this subject. Here are 3 things that make your agency sellable.
Your agency's size is not relative when it comes to stress. I've met agency owners with 3 part-time team members that were as stressed as owners with 30.
It's all about how you handle key areas of your business. What's causing the stress? Is it ops? Or are you having trouble handling team members? Whatever it is you have to pinpoint it and either hire it out or partner up with someone who gets it. Deciding to grow is a conscious choice. And it can be impossible to make that choice when you're busy managing your stress level.
Chances are, you know what's causing your stress. Maybe you're overwhelmed with finances and KPI's, or maybe you dragging your feet on hiring or firing. That's ok! If you feel like you're not cut out for the role of CEO the solution might be getting acquired or merging with an agency.
Don't be afraid to give away some of your equity to reduce your stress. Which would you rather have? Full ownership of a stressful, chaotic agency, or 80% ownership of a well-managed one?
Can You Really Grow Through Mergers and Acquisitions?Yes, you really can! Giving away equity can put you on the growth fast track. And acquiring another agency can also be one of the smartest moves you ever make if you do it right. I know what you're thinking! How do you know what your agency (or another agency) is truly worth? You can check out this video on agency valuation. Bottom line, the answer really depends: How profitable are they? What kind of niche are they in? What's their profit margin?
Check out my post on how to double your growth with an acquisition.
Looking for a Payroll and HR Solution for your Agency?Payroll and benefits are hard. Especially when you're a small business. Gusto is making payroll, benefits and HR easy for small businesses. You no longer have to be a big company to get great technology, great benefits and great service to take care of your team.
For a limited time, Gusto is offering a deal to Smart Agency Master Class listeners. Check out Gusto.com/agency for 3-months FREE once you run your first payroll with them.
Are you struggling to find the right clients? Wish your agency was working with bigger clients? Finding the right clients isn't easy — especially if you're trying to grow from freelance to agency owner. The secret is having the right qualification process and knowing who to say yes (and no) to.
In this episode, we'll cover:
Today's interview is with Jesse Witham, the Co-Founder and CMO of Search Marketing Agency. Jesse has been doing SEO since he was young (like 14!), way back when keyword stuffing and digital directories were "SEO" so he knows the complicated evolution of the field. Jesse went from freelancing to owning an agency handling over $300 million in client SEO spend. He's here to share his story about agency growth and finding the right clients.
How to Go From Freelancer to Agency OwnerGoing from freelancer to digital agency owner is natural. As a freelancer, you already have some clients— you just need to scale. So, why not start a business, hire a few people, and start serving more clients, right? While everyone has unique reasons for making the jump, they all share one thing in common — they're ready to go big or go home.
So how do you actually do make the leap? The biggest thing is making the first hire. Sure, setting up an LLC, creating a brand and logo are all important steps. But, the symbolic moment for the transition from "freelancer" to "agency owner" is that first hire. That's when you know you've gone from being solo to being a team.
And that's a lot of responsibility — suddenly you have someone relying on you. That's the magic line you cross when you go from freelancer to agency.
Your first hire doesn't have to be another creative or a salesperson. You should always hire for your weakness. You don't want a clone of yourself, you want someone who can fill the gaps you leave. Like the ying to your yang :)
Jesse's first hire was someone who could keep him organized; I usually suggest a first hire be a project manager.
3 Reasons You Should Steer Clear of Big Agency ClientsBig clients with their big budgets always seem appealing. Don't be fooled! Here's the problem with big clients — they can make or break your agency.
Whether you're a new agency owner or have decades of experience under your belt, one thing never gets easier — turning down big budgets. Sure, big clients have tons to spend on marketing. But that doesn't mean those big clients are the best way to scale your agency.
There are 3 issues with big clients.
It's important to know when to say no to clients, but the real question is — when do you say yes? The easiest way is to create some criteria. If they fit it, they're in. If they don't, they're gone. Easier said than done, I know. But letting a few rotten apples slip through can spoil the whole bunch. You have to create crystal clear criteria and stick to it.
What does this mean? It means saying no more often than you're comfortable with at first. But in the long run, you'll only be working with the ideal clients who you can really help be successful. That's a WIN!
Looking for a Payroll and HR Solution for your Agency?Payroll and benefits are hard. Especially when you're a small business. Gusto is making payroll, benefits and HR easy for small businesses. You no longer have to be a big company to get great technology, great benefits and great service to take care of your team.
For a limited time, Gusto is offering a deal to Smart Agency Master Class listeners. Check out Gusto.com/agency for 3-months FREE once you run your first payroll with them.
Would you like to master inbound marketing with killer content? Would you like your agency to generate more leads without working harder to find them? Generating more traffic and engagement is the key. And it's doing better is easier than you think when you address the right two audiences. With some strategy you can win at the content game and land your digital agency more inbound leads an ever.
In today's episode, we'll cover:
Today, I talked with Kieran Flanagan — VP of Marketing for HubSpot. Not only did Kieran help HubSpot grow into an international marketing goliath, but he's also partially responsible for growing their freemium business. We all know HubSpot is a big deal in marketing but, did you know 100% of HubSpot's customers come from the demand created by the marketing team? Kieran's on the show today to share with us the two audiences his team focuses on and why your agency should too.
Two Audiences Every Digital Agency Needs to Create Content ForHow do you satisfy the mental cravings of clients and forge emotional connections with them? HubSpot breaks their marketing department into two teams — Mind and Heart.
So, the Mind team is responsible for tactical content such as blog posts. The team figures out what people are searching and creates content around questions, concerns, and keywords based on SEO demand.
The Heart team is responsible for emotional creative, like videos and audio content. You know, the stuff that pulls at entertains or creates connections. This type of content makes people feel that working with your business will solve their problem or ease their pain point.
Here's what's great: Each team has its own content calendar, and they act independently. This way, both types of content gets full focus, and HubSpot knows it's churning out both types of content regularly.
Why the Agency Owner Should Be the Face of the AgencyWhat do VaynerMedia, Apple, and Microsoft all have in common? They all have an owner who represents the brand! You need to be the face of your agency. Now, I know that can be scary sounding. Many agency owners feel being the face of their agency is too time-consuming, but it doesn't have to be! You set the methodology. Yes - you be a leader. And no, you don't have to hustle 24/7.
It can be as simple or as complicated as you want. As always, stop doing the things you suck at and nail your strengths. As an Agency CEO, you have 5 roles in the agency and being the front-face of the company is #1.
How Your Digital Agency Can Increase Blog Site TrafficAs most everyone knows, HubSpot has some fantastic blogging tips. They do pillar and cluster model for their posts, including marketing funnel diagrams and spend tons of time and resources on the HubSpot blog. So, obviously they have some phenomenal blogging tips, right?
Here it is... drumroll please... you have to have a reason to write blogs. Wait! Before you roll your eyes, think about it. Does your agency really have a reason to create your blogs? Are you just writing "10 Reasons to Hire a Digital Marketing Agency" style blog posts (which are so clearly just cushy soft sales pitches)? Your prospects aren't stupid - they see right through that stuff. Your blog posts don't capture the heart or the mind of your prospects.
When HubSpot writes "Best Marketing Hacks of 2019" their content isn't just ranking. They're accomplishing their mission, too. They sell marketing software and their mission is to help marketers with solutions to make their jobs easier. That blog post both ranks and it furthers their mission and it caters to a specific audience with a beneficial outcome.
So -- If you sell agency services to lawyers, don't write "10 reasons you need a digital marketing agency." Instead, write a post titled "10 Ways to Get Quality Law Leads for your Law Practice" and see what difference it makes.
We've all seen tech companies explode in popularity and valuation. How can your digital agency get a piece a sweet tech venture? Check out how one agency owner is out there successfully building technology and simultaneously running a digital marketing agency -- and crushing it at both.
In today's episode, we'll cover:
Today, I talked with Bhanuka Harischandra, Founder and CEO of Surge.Global — a digital marketing and tech agency in Sri Lanka. Bhanuka's agency does everything from video to mobile to content and even SEO... but they also build tech. So, while half of Surge Global is helping businesses scale with marketing, the other half is scaling tech projects and creating tech companies. Bhanuka is here to tell us how to build tech at your agency and use it to grow and scale your business.
How to Successfully Build Technology at Your Digital AgencyTech revenue is tempting, am I right? We see these tech startups with 5 employees that scale to $500 million in a few years and it's mind-blowing. So, as an entrepreneur, you may be trying to balance your desire to chase tech with your love for agency work. Guess what? You don't have to decide between them. Instead, you can build tech and build your agency at the same time.
It's all about keeping a balance. Bhanuka's advice is to hire two separate teams. Your agency team should not develop tech projects. You need a separate R&D team to help build external and internal tech projects.
You can even create an incubator. Hire some developers to work on different projects, see which ones take off, and then scale the winners up. Bhanuka transitions R&D teams with great products into their own business and his agency remains a shareholder. It helps keep everyone focused on their unique task.
One Unique Method to Create Tons of Internal ContentCreating internal content can be a serious pain for agency owners. Here's the thing — it's super necessary to have internal content for your team to rally around. You probably have access to some great content creators; they just need a little motivation.
Bhanuka got his team to produce over 700 pieces of content in 30 days by gamifying content creation. He built an app and made a contest out of creating content. The team member who created the most content within a month would win $500. Second and third places were promised monetary prizes, too. And he compared everyone on a leaderboard to the team could view results in real-time.
In the end, Surge only paid out $800 for 700 pieces of content. That's what I call a bargain!
Here's what's awesome — Surge now has the app they developed out for other clients to use. (You can check out the app at Rallied.io)
#1 Growth Tip for New Agency OwnersIt's been nearly unanimous from my podcast guests. The #1 piece of advice is learning to say no. But, it's about more than just saying no... It's knowing how to prioritize and say no to the wrong things so you can say yes to the right things. Even Bhanuka admits his agency almost went under by saying yes to the wrong things. He says always vet your prospects before they become clients and determine:
If the answer to any of these is no, then you need to say no to working with this prospect.
Every agency wants its team to work smarter and hustle harder. But, the smart agencies know the best way to get results is with the right incentive program. On today's show, we're featuring an employee incentive model that may change the way you think about salaries and bonuses, as well as culture.
In today's episode, we'll cover:
Today, I talked with Tom Murray, Managing Director of Jump450 — a full-service marketing agency in Soho, NY. Tom's agency does something a little crazy... they give 50% of profits to its employees. He's on the show to share why and how this crazy strategy is actually growing the agency faster than ever.
5 Reasons to Share 50% of Agency ProfitsGiving away 50% of your profits may sound more like a nightmare than a strategy but the thing is — it can work. Better yet, the agency is also paying employees a competitive base salary! Sounds crazy right? Maybe. But, it has a bunch of benefits you're probably not even thinking about:
When you need someone to do SEO work, don't just hire "someone" - hire an SEO expert. This may sound obvious, but most agencies aren't following this rule. Tons of agencies just hire generalists and train for the skill. Try it the other way around.
If you pack your agency with people who are really good at one thing, everyone is going to be the best at their jobs. You can probably hire fewer people. And, best of all, your clients will get the best possible help.
Struggling to convince talent to come onboard? Consider filling in the holes with hyper-specialized freelancers.
One Big Employee Compensation SecretAre you ready for the big secret? For most employees, it's not all about the money. Your team has to show up every day for work. In fact, half their life is basically going to be spent there. So having the right atmosphere and breeding a good agency culture is crucial when it comes to motivating, inspiring, and engaging employees. Believe it or not, amazing culture is another way to compensate your team.
So, you can bonus your team or offer a profit-sharing incentive, but if your culture is garbage, the team is not going to engage. When you start thinking about salary, think culture first. You can make your team happy by providing an amazing place to work (first) and then think about the compensation model and any bonus structure.
How to Implement Profit-SharingFor smaller agencies, changing the salary structure is a breeze. But, if your agency has over 10 team members, it can be difficult to make a wide-reaching change. If you're just now considering a profit-sharing model, you'll need to spend time forecasting. The key is to build out data models and track cash flow before implementing a profit-sharing model, so you can be sure the agency can support it.
In other words... it's tough but, it's definitely doable. Because -- your salary structure could be the one thing holding back your agency's success.
Having trouble getting your agency to the next level? Want to increase agency revenue but can't get beyond a plateau? Then it might be time to get a little uncomfortable and take some risks. If you really want to level-up your agency check out the big risk one agency took which yielded 4X revenue in just two years.
In this episode, we'll cover:
Today, I talked with Chris Brencans, CMO at OnTheMap — a full-service digital marketing agency. Chris's agency does something that may sound a little strange. Half of the agency's team are salespeople. That's right! 50% of the approximately 70 people at the agency are involved in sales, and business is booming. OnTheMap's revenue has grown from $1 Million to $4 Million in the last 2 years by investing in its salespeople and taking some risks. Chris is on the show to share some tips with us.
3 Hacks Help Your Agency Level UpInbound marketing keeps you successful. But it's outbound marketing which makes you successful.
Chris's agency is 50% salespeople. They bet big on outbound, and it grew them from $1m to $4m. This isn't a one-off tactic. Neil Patel uses outbound to grow his agency, and I had one agency on the podcast who has grown to $6m in 2 years tackling outbound.
Outbound just works. You can execute it on a lean budget. There are tons of killer strategies to follow. And it's easy to get started. You don't need half of your team in sales, like Chris. It just depends on your specific processes. But you definitely need one person, or a few, dedicated to sales.
How to Hire the Right Agency Sales TeamAttracting salespeople is all about salary, benefits, and culture. Selecting the right candidate(s) is all about these 3 things.
Are you struggling to capture those big fish clients? Does it feel like your agency is constantly battling for every account? We've all been there! You've still got some growing pains. But, what if you could skip those growing pains and go right to be big leagues? Here's how one agency owner made his first client Kobe Bryant.
In today's episode, we'll cover:
Today, I talked with David Brickley, CEO of STN Digital and Host of The Business Of Social podcast. We all have our own unique origin story but, David's story is downright crazy. Not only did he score one of the biggest names in sports (Kobe Bryant!) as his very first client — he continues to work with some of the biggest names in sports and entertainment. James Harden, Shaq, Amazon, UFC, the Olympics, and even movie stars are his bread-and-butter. David's here to share his story about how you can grow your agency event while you're a small or mid-sized shop.
How to Score Big Agency ClientsWhat if I told you that David convinced Kobe Bryant to be his first client through a cold email? It's true! And, there's a lot we can all learn from that...
Scoring your first big client is all about taking chances. Get out there and chase them - because why couldn't it be you?
Forget about sticking to inbound and waiting for them to knock on your door. If there's something you want bad enough, get out there and chase it. And you know as well as I do — it only takes one big client to completely change the course of your agency.
Once you have a big name or a big brand, you can leverage them to get other big clients. It's the domino effect. And, winning with outbound doesn't require a big budget - it's all about the grind.
3 Reasons Your Agency Should Hire Some FreelancersDon't worry - you don't need a huge team to serve big clients, you may just need to add some freelancers. The gig economy is in full swing. You can talented and highly skilled freelancers to work on a project basis. And here's why:
Every year, hundreds of agencies close their doors for good... and for most of them it's not intentional, but rather the result of lacking one basic thing. They didn't adapt.
The algorithms keep changing and what worked last week or last month or last year isn't cutting it. For example, EO isn't the same this year as last year. And, it could be wildly different next year. Digital agencies have to be flexible and they need to be constantly innovating.
If you aren't creating bigger, better, and more interesting things, you're headed down a dangerous road. You can't keep performing the same old tricks; you must keep things new and evolve to the needs of your audience.
Client retention isn't all about wooing them (although the right gifts don't hurt!) It's about providing them value with innovative solutions they can't find with anyone else.
Creating video content is hard, right? It's got to be perfect lighting, sound, and of course relevant subject matter. Don't let all that overwhelm stands in your way of getting started. Video content is one of the hottest ways to attract new agency business. And, anyone can make incredible videos without a ton of experience - you just need to get out of your own way in order to get started.
In today's episode, we'll cover:
Today, I talked with Chris Deblasio, actor, producer, and CEO of Agency850, the entertainment marketing company he founded. Chris's agency shoots Hollywood-quality videos and does product placement for movies and TV. Chris went from selling yellow page ads to running a successful video agency. And, he's learned a few tricks along the way. From being comfy in front of her camera to winning with video creatives, Chris explains how video marketing can add value to your agency's services.
How to Start Making Video ContentChris makes high-quality videos at his agency but he's the first to admit you don't need fancy equipment to get the attention of your prospects. You don't need an expensive camera and a sound crew to produce outstanding videos -- just need your phone and a vision.
Want to know the big secret to making great video content? Just start!
The sooner you start, the sooner it will become second nature to you. Sure, you'll make some crappy videos in the beginning. But, you're never going to make really killer ones until you a few under your belt. No one is going to judge you by one or two stinky videos. Prospects will be looking at your entire body of content, not a few rough ones.
The sooner you start, the sooner you can find your voice. And the sooner you can cash in on video marketing – which isn't going away anytime soon.
3 Easy Video Types to Help You Get StartedHere are 3 super-easy video content types to get you started. All you'll need is a camera and a smile.
The number one tip for making videos is... drumroll, please... be yourself!
Yes! I know it's corny but it's true. Viewers want you to be genuine; this is easily the most important thing you can do to be successful with video content. Besides, no one can replicate you or your personality.
It's totally normal. Most people tend to get a little nervous when in front of a camera. When I first got in front of the camera, I looked like an Oompa Loompa :)
Take off the mask. A fake persona is obvious and copying someone else -- like Gary Vee or Casey Neistat is disingenuous. Go ahead and be yourself and give people a chance to like you for you.
Looking for a low-risk, high-result way to scale your agency? Want the flexibility to grow and scale at will? Freelancers are a great way to grab top talent in this gig economy. Using freelancers can help scale your agency faster and easier than bringing on permanent employees and the overhead that goes with them. But, the real key is knowing which roles to hand to freelancers and which roles you should not outsource. But, how about using freelancers as a core component of your workforce? I talk to an agency owner that uses both in-house employees and freelancers on almost every project. And it's helped him grow at the speed-of-light.
Today, I talked with David Freund, Partner at Junto — a web design and content agency. David's agency doesn't just use freelancers on occasion... freelancers are a core component of his agency's growth strategy, with over 25 on his team. Vetting freelancers and leaning on them to deliver cost-effective results helps Junto stay competitive in the commoditized market. And, David's here to give us some tips on when and how to use freelancers the right way in order to grow your digital agency.
How to Win With FreelancersBlending an in-house team with freelancers has a ton of benefits. Hiring a load of freelancers can help your agency go remote. And, it can definitely help you save on costs and onboarding headaches. But, the secret benefit is that it gives you insane flexibility to scale.
With a core team of employees in place, you can hire and let-go freelancers at will. As your growth has ebbs and flows, your hybrid team of employees and freelancers has the flexibility to ebb and flow, as well.
Need a new website designer? Hire a freelancer. Need fewer SEO specialists? Eliminate a few. With freelancers, you can grow and shrink at will. And, you don't have to worry about all of the junk that goes into hiring and firing. This gives you a huge advantage over your competitors who are stuck with less flexibility.
Which Roles You Should Never OutsourceAs agency owners, the thought of outsourcing talent can be terrifying. Finding and vetting freelancers can be overwhelming. And, some freelancers can be unreliable or unpredictable unless. If you've been burned before you might be scared to work with others in the future. But, here's the secret — Dave says you have to outsource the right roles.
For starters, keep strategy and project/account managers in-house. Keeping these roles strictly for permanent employees gives you the quality control that is necessary to grow your business.
The last thing you want is to lose your agency's standard or sacrifice its reputation. Having a key team of managers within your walls is the secret to keeping a high standard and reaping the benefits of the gig economy.
Your account managers act as a liaison between the agency and the client. You can structure your agency to have account managers work with the freelancers. That leaves you in charge of the big picture. But, you don't have to manage ALL of these freelancers and in-house team members at the same time.
What Not To Do With Agency FreelancersIt can be tempting to hire some freelancers, send them work, and then you deliver the end product to the client. Basically, your agency is just playing the middleman and reaping the rewards. Sounds like a win-win, right? Nope! Your agency needs to hold the reigns. You must have the systems in place to facilitate freelancers success and deliver consistent results to your clients. If the end product is a representation of your agency's work you have to have control over it from start to finish.
Your job is to provide your freelancers with the systems they need in order to succeed. And, you or someone within your agency needs to have the skillset to understand and oversee the work you're outsourcing to a freelancer. So for example, if you don't know anything about web design, don't just hire freelancers and hand over a finished website to the client. At the very least, your account manager should have an understanding of web design and work hand-in-hand with the freelancer.
3 Reasons Smaller Agencies Win BigSize doesn't matter - no, really! :) There's never been a better time to be a small or mid-sized agency. You can be nimble and agile with your clients, and you can be far more flexible than the bigger agencies. If or when prospects question your agency's size, use these benefits to spin the story in your favor:
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