The old way of running an agency is on its last dance

I see the same questions asked by agency owners every day.

“How do I scale my agency”, “How do I consistently fill my pipeline with high probability leads?”, “What are the magic words I need to say to close deals?”?

During my 10 years of growing and selling agencies, I too asked the same questions.

These are great questions and it’s excellent that these people are searching for answers. It means they want to better themselves and their business.

However, most of the advice they receive is anchored in an outdated growth strategy that no longer works.

They are dished advice like “Just do more SEO” “Offer a new tool/service” or “Run cold outreach to random people”.?

Relying on these low-brow tactics to build a successful agency(or ANY business for that matter) no longer works because EVERYONE does them.

And since everyone does them, they become FAR less effective because everyone sounds and looks the same as each other.

They blend into one big cup of muddy water; categorised as every other lazy agency that does not research what the client needs.

The traditional agency model is on its way out

A large majority of agencies use generalised language to create their position in the market. Using things like “SEO for eCommerce” “We will grow your business” or “Creative development for enterprise”.

They use their CAPABILITY and sometimes attach it to an INDUSTRY. They do this so they can be “specialised”. But so many other people use a similar position, so they are not so special any more.

They position themselves as being an expert yet a client can have just as much knowledge on a generic topic (because info is basically free now)

The information edge they had over clients is very disappearing. The only way they can sell themselves is by providing delivery resources to action tasks.

Here is the thing, tools are so advanced now that the tasks agencies would charge $1000s 3-4 years ago can be done in a few minutes and a subscription.

Think about what else these tools will be able to do in another 4 years.

Things are changing, fast

The cracks are starting to show. 2020 gave us a huge pump of artificial demand, but the steam is running out.

Agencies have to sell to less-than-ideal clients, picking up short-term patchwork jobs just to keep the lights on.

And when a good client does come across them; said client has no why though should go with a specific agency because they are all positioned very similarly!

So the client either:

1. Picks the cheapest option(because if you are the same as everyone else, the only lever you have to close a deal is to be cheaper)
2. Picks who they think the market leader is (because they associate with the leader as “good”)
3. Finds independent talent who can deliver better outcomes in 40 hours of work for the same price that an agency charges for 4-6 hours (most clients see more hours = more impact)
4. Does nothing at all (because they are so damn confused they don't even know what problem an agency will solve them)

The sad reality is that if agencies don't move their focus away from tactics and into strategy, the information triage they relied on will be gone.

The team of people “doing” the work won’t have work to do.

There is a blindspot

Some people choose not to believe this because of a bias of “doing it the old-fashioned way works”.

But their customers believe it, and they are the ones paying the bills.

And if they believe it, they will make it happen. It is already happening.

The only way out of this hole is to create a niche that you can dominate (note, niches aren’t ‘found’, they are created)

The way out of the trap

Position yourself as different. People want different more than they want better (read Play Bigger)

• Understand what problem you solve
• Make sure the problem is big enough for them to take immediate action
• Create a unique solution to the problem.

If the problem doesn’t resonate, frame a different problem until you find one that does.

Don't throw a menu of services at them like everyone else does.

Understand their painful problem and create a unique solution.

Do this and you will create your niche.

People will seek you out

Once you have a niche, people will demand to work with you because they view you as the only agency that has a solution to their problem.

1. Focus on a painful problem and create a different solution
2. Move your focus away from tactical deliverables and into strategic outcomes
3. Create a niche you own, be in demand and have no competitors because they see you as different, make way more $$$

Do this and your agency will become irreplaceable.

PS - Replace “agency” with any professional services firm and the same applies.