What Should You Do When Your Agency Gets Hit With a $10K Surprise? with Pete Kleinjan | Ep #818

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A surprise $10K tax bill nearly knocked Pete Kleinjan off course—but he learned that trusting experts, keeping perspective, and staying outcome-focused is what turns agency chaos into long-term growth. If you're facing curveballs, this episode is your mindset reset.

• Why SEO isn’t what you sell, it’s what it gets your clients.
• The tax mistake that cost $10K (and what Pete did right).
• How to lead through chaos with perspective, not panic.
• Why timeless principles beat trendy tactics every time.
• How realness (not AI avatars) builds lasting trust.

1. Clients buy outcomes, not SEO jargon: Sell the lakehouse dream, not the traffic report.
2. Tax mistakes can kill momentum. Hire experts early: A $10K bill could’ve derailed everything, but Pete owned it and leveled up his support team.
3. Stay resilient when the storm hits: Business will test you. What keeps you going is clarity, not hustle.
4. Tools change, principles don’t: Focus on client results, clear communication, and solving problems—not shiny new platforms.
5. Authenticity wins: Forget perfect video. Scrappy, honest content builds trust that converts.
6. Sell what they need, not what you want to deliver: Pete got a client for life by solving a $0 “do not index” issue. That’s value.

What’s the most unexpected challenge you’ve faced as an agency owner? How did you handle it when things went sideways?

Agency life is full of curveballs, and the only way to keep your business alive is by maintaining perspective and resilience when the unexpected hits.

Today’s featured guest once thought he would lose all the progress he’d made with his agency when the state hit him with a surprise $10K sales tax bill he didn’t even know existed. But now, he looks back and laughs, recognizing that getting through it came down to trusting the right professionals and staying the course.

He firmly believes that keeping your business afloat for the long haul means remembering why clients hire you in the first place — and that focusing on the outcomes that matter is what builds trust and closes deals.

Pete Kleinjan is the founder and owner of Tiger29, an SEO agency that helps local small businesses achieve their sales goals. His agency isn’t a sprawling team of 50; it’s a small, sharp crew focused on what small business clients actually care about: more phone calls, more leads, more sales.

In this episode, we’ll discuss:

• The real reason clients want SEO.

• A lesson on team + preparedness.

• Perspective & resilience when things go sideways.

•  Why you should focus on what won’t change.

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Pete’s first job right out of college was doing credit card collection. It was awful but it trained him in being on the phone multiple hours a day having difficult conversations, which led to his next job selling wheelchair-accessible vans.

As a salesperson, he quickly realized the key to more sales wasn’t grinding harder—it was getting more qualified leads. After he communicated his drive to help bring in more leads, the company’s developer threw him a Wikipedia link to SEO, and Pete dove in, learned FTP, and started tweaking pages himself. That hands-on hunger turned into a full-fledged agency by 2009.

It’s a story he still tells prospects because he knows clients don’t want SEO; they want what SEO brings. They want sales, the Cadillac, the lakehouse dream—not rankings or traffic screenshots, and leading with that terminology could just push them away.

Pete urges agency owners to remember this because it speaks to what small business owners care about: “How do I get more of the customers I want?” When you lead with jargon, you lose your prospect. Lead with the transformation.

A couple of years into his agency, Pete received a letter from the state labeled “sales tax review” (not audit, but let’s be real—it was an audit). Turns out, in South Dakota, consulting services are taxable, and the state decided local SEO link-building and citation placement fell under “taxable consulting.” This little “surprise” ended with Pete writing a $10,000 check to the state.

For a moment, Pete considered fighting it and asked his attorney brother for advice. However, his brother put it in perspective for him: pay the $10K or pay a lawyer to sue and likely have the state fight you all the way to the Supreme Court. It wasn’t fun, but it was the best decision for his peace of mind.

For him, the big takeaway was: Hire a good bookkeeper and CPA who know your local tax nuances. You don’t want to be the expert in tax law, just like your clients shouldn’t have to be experts in SEO. Pete chose not to pass that bill back to his clients because it was his mistake, and it would be unfair. But it also taught him to be proactive in areas outside his zone of genius by building a team of experts who handle the boring (but crucial) details.

Pete’s tax story caused sleepless nights at the time, but looking back, he laughs about it. Because here’s the hard truth about agency ownership: Money challenges, curveballs, and “surprise” bills are going to happen. Your ability to weather these storms without spiraling is what separates owners who build sustainable agencies from those who burn out.

When you’ve been in the game long enough, you realize it’s never all rainbows, and there’s always something around the corner that could trip you up. But when you remember why you’re in business—to build a life you love, not just a bigger agency—it becomes easier to shake off setbacks and focus on what matters: your health, your team, your freedom, and your ability to keep moving forward.

In a recent interview, Jeff Bezos was asked about how he thought things would change in five years. His answer was that instead of obsessing over what will change, he prefers focusing on what won’t change.

No matter what, clients will always want results. They’ll always want things on time. They’ll always want problems solved by real humans who care. Whether you’re using AI, TikTok or any other platform, those core truths will remain.

We can often get distracted by tools and trends (AI, new social platforms, “the next algorithm hack”). But the tools in your box will change; your job—to deliver transformation to clients—will not. Build your business around timeless principles like clear communication, trust, and delivering results, and you’ll outlast any trend.

With the coming wave of AI avatars, deepfakes, and synthetic influencers, how should agency owners use these tools while maintaining authenticity?

Yes, you could deploy an AI influencer for your agency, especially if you’re camera-shy. But as Pete shared, their social media commandment #1 is “it has to be real.” Their scrappy videos may not be as polished as some big agencies, but they convert because they’re authentic, quirky, and genuinely helpful.

In a future where clients may question if what they see online is real, your authenticity will become your moat. Using AI should amplify your agency’s personality, not replace it, so let your realness be your competitive advantage.

A small business owner struggling for two years with a site that wouldn’t show up on Google. Why? A simple “do not index” box was checked in WordPress. Everyone else was trying to pitch her a free “strategy call” (AKA sales call), but Pete charged for an SEO Power Hour, solved her problem immediately, and won her trust.

The takeaway for Pete was that it’s good he didn’t default to “selling a new website” when a client came for SEO. Don’t push a service because it’s your highest margin offer. Sell what they actually need. When you do, you become their trusted advisor, not another expense they’re trying to cut.

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