Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

In this engaging discussion, Gilad Bechar, CEO of Moburst, shares insights on building a successful mobile marketing agency. He reveals how strategic acquisitions fueled Moburst's growth while retaining brand authority. Gilad emphasizes the importance of saying 'no' to unprofitable clients, even the big ones, to focus on long-term success. He also discusses raising capital smartly to maintain control, and he offers tips on identifying genuine expertise in AI and mobile spaces. It's a masterclass in scaling and strategic decision-making!

In this engaging conversation, Jennifer Spire, CEO of Preston Spire, shares insights from leading a 75-year-old independent creative agency. She dives into the importance of maintaining agency culture amidst changing times and technologies. Jennifer discusses her journey through big agencies and the importance of a hands-on leadership style. She emphasizes the value of blending generational talents, the strategic approach to hiring, and the role of AI in enhancing agency efficiency while nurturing human creativity. A true testament to adaptability and resilience!

Tyler Smith, president of Matado, a creative agency in the food service sector, shares his journey from door-to-door sales to specializing in food marketing. He discusses the transformative power of niching down and how it reshaped their responsibilities and growth. Tyler emphasizes the importance of empathy and flexible selling, as well as creating valuable resources like the Food Service Marketing Playbook. He also reflects on lessons learned from overcommitting and the significance of continuous adaptation in a changing market.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training Ever looked at your agency's bank account and thought, "We're crushing it!" only to realize two months later that half that cash wasn't really yours yet? Or maybe you've hit that milestone where you start wondering what your agency might be worth if you sold it tomorrow… but your books are a confusing mix of guesswork and gut feelings. Today's featured guest was a finance expert before falling in love with the agency world and has the experience to show how smart financial planning (not just getting more clients) can completely reshape your agency's future. From forecasting and cash flow to the hard truths about selling, this conversation is packed with real-world lessons every agency owner needs to hear. Lacie Edgeman is the partner and co-owner of PrograMetrix, a digital paid media agency that focuses exclusively on programmatic advertising. With a background in finance, she oversees operations and financial strategy. However, like most small-agency leaders, she's worn just about every hat at some point. Her unique blend of financial discipline and operational savvy has helped her agency grow smart, not just fast. In this episode, we'll discuss: The superpower too many agencies ignore. Cash vs. accrual accounting. Why you should always be tracking these two KPIs. How much cash should you keep in the bank? Subscribe Apple | Spotify | iHeart Radio 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 a Finance Major Became an Agency Owner After earning a finance degree, Lacie joined a digital agency in Austin as a billing coordinator and quickly discovered she loved the chaos. "You either love it or you hate it," she says. "I love the fast pace environment and the fact that it challenges me." That early exposure to how agencies really work, from billing quirks to client chaos, gave her a perspective most creatives never get. By the time she joined PrograMetrix, she wasn't just another partner with ideas; she was the numbers-minded operator who could make sure every big creative idea actually paid off. Forecasting: The Superpower Too Many Agencies Ignore From a finance perspective, Lacie's biggest message for agency owners is to stop running their business off their checking account. "Future planning is where most agencies miss the mark," she says. It's important to review your historical, of course, but Lacie recommends creating a forecast and revisit it quarterly. This way, if you want to add $1 million in take-home revenue, you can map out exactly which KPIs need to move to make that happen.. This is way, if you, for instance, want to add $1 million in take-home revenue, you can map exactly which KPIs need to move to make that happen. That forward focus creates smarter, calmer decisions; especially when things get uncertain. You can't sleep easy until you know what's coming in, what's going out, and how your pipeline will affect cash flow six months from now. Cash vs. Accrual Accounting: How to Stop Fooling Yourself About Profit When Lacie joined PrograMetrix in 2019, one of her first moves was switching from cash accounting to accrual accounting, a game changer for any media agency. Why? Because when you're handling large media budgets, those big lump payments from clients don't actually mean profit. Accrual accounting forces you to recognize revenue when the work is done, not when the check clears. "It's the only way to see what's actually happening," Lacie explains. Otherwise, agencies can get fooled into thinking they're thriving when all they've done is temporarily hold pass-through media dollars. For anyone running paid media, she considers accrual accounting "painful but essential." Furthermore, accrual accounting becomes critical when you're planning to sell your agency. It's not just about cleaner books, it's about protecting your valuation. In cash accounting, all incoming payments hit your revenue the moment they land, even if you haven't delivered the work yet. That can make your agency look healthier than it really is. However, a smart buyer will spot it—and they'll adjust your purchase price down to reflect any undelivered work. If you're serious about eventually selling, move to accrual accounting early so your books reflect true earned revenue. It not only helps you understand your real profitability but also builds trust with future buyers. Building the Right Financial Advisory Team for Your Agency Anyone with prior experience selling a business will probably tell you "if you're planning on selling soon, don't rely solely on a broker". Brokers are financially motivated to close the deal fast, not to get the best terms. Instead, surround yourself with people who don't have skin in the game. Considering that most agency owners probably come from a creative background, Lacie suggests finding financial mentors or advisers who will tell them what they need to hear, not what they want to hear. You don't have to become a QuickBooks expert, but you do need to understand what your financials are saying about the health of your business. 2 KPIs Every Agency Owner Should Track If Lacie were stranded on an island and could only get one napkin of financials, it'd include two numbers: Topline Revenue (excluding media spend) EBITDA (basically your take-home before taxes) EBITDA is very important here, because you can have great revenue but without free flowing funds to invest back in the business, you'll still be a red flag for potential buyers. Those two tell her almost everything about an agency's financial health. "You can only cut costs so far," she says. "At some point, you have to grow the top line strategically." The real game is in balancing both, keeping a clean cost structure while expanding profitable revenue. Owners should also understand adjusted EBITDA, which adjusts for one-off expenses, to get a clearer view of your operational performance. It's something a potential buyer would do any way to get a more accurate picture of your agency's financial health. How Much Cash Should You Keep in Reserve? Ask ten agency owners this question, and you'll get ten answers. Lacie says three months of operating cash is the industry rule of thumb, though she's heard advisers tell sellers to shrink that down to one month before an acquisition. Many would disagree with that advice, but ultimately the right number depends on your risk tolerance and client concentration. If a single client dominates your revenue, then the most important advice would be to secure a line of credit before you need it. Losing a "gorilla client" (one worth more than 20% of your revenue) can wreck cash flow overnight. A credit line buys you breathing room so you don't start saying yes to bad clients just to make payroll. Niching Down Is the Key to Profitability and Valuation For Lacie, niching down was the single best move for PrograMetrix. "When you try to be everything to everyone, you can't scale," she says. Every one-off client that doesn't fit your core offer quietly drains profit and focus. She urges agency owners to ask themselves if they're offering the right services and double down on what they're great at, not just good at. The rule is simple: the more focused you are, the more you can charge. Start by raising prices for new clients and soon the gap between legacy clients and new ones will convince you of the need to raise prices for legacy clients too. One mastermind member added $72,000 in monthly recurring revenue simply by repricing existing clients after niching. Each year, Lacie's team audits their client roster to identify accounts they've outgrown. It's never easy—many are long-time relationships—but letting go of clients who no longer fit is what creates room for bigger, better ones. Do You Want to Transform Your Agency from a Liability to an Asset? Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Draye Redfern, a serial entrepreneur and founder of Redfern Media, shares crucial insights on protecting digital agencies from potential lawsuits and cyber threats. He discusses the often-overlooked risks of 'growth blindness' and emphasizes the importance of errors and omissions insurance. Draye highlights how agencies can attract premium clients through a 'give first' mindset and effective networking strategies. With his background in risk management, he outlines must-have insurance coverages and offers innovative personalization tactics to stand out in a crowded market.

In this engaging discussion, Roger Nairn, Co-founder and CEO of JAR Podcast Solutions, shares insights on why some brand podcasts thrive while others flop. He emphasizes the importance of genuine audience connection over mere download numbers. Roger highlights that brands should focus on uniqueness, consistency, and even a touch of weirdness to foster loyalty. He also delves into why audio podcasts outshine video, advocating for a long-term growth approach that prioritizes listener retention and meaningful engagement.

Kriston Sellier, President and founder of Id8, a successful branding agency, shares her inspiring journey of transitioning from being fired to leading a thriving business. She discusses the importance of shifting from a freelancer mindset to a CEO role and the strategies that helped her grow, including building a coachable team instead of managing. Kriston emphasizes leveraging AI for productivity while maintaining human connections, and highlights the trend of larger organizations outsourcing marketing once again, creating new opportunities for agencies.

Ken McLoud, CEO of Laconic Technologies, shares insights into the smart integration of AI in agencies. He warns against adopting AI tools without real problems to solve, emphasizing strategic implementation for genuine results. Ken discusses finding AI opportunities using the Theory of Constraints and how his team built an effective AI CFO tool. He contrasts no-code tools with custom code, and highlights successful AI projects that empower teams while eliminating meaningless workloads. Expect to learn the future of AI and how to avoid costly integration mistakes!

Bill Swanston, the President and founder of Bosun, shares his journey of running an agency for over 25 years. He discusses how they survived crises like 9/11 and COVID, highlighting the importance of tracking KPIs and adapting to change. Bill emphasizes the risks of relying on a "superclient" and the strategies for empowering a team to foster growth. He reflects on their recent rebrand, illustrating how it marks a cultural shift towards team empowerment rather than founder-centricity.

In this engaging discussion, Jennifer Bagley, CEO of CI Web Group, shares her journey from corporate operations to leading a tech-forward digital marketing agency. She highlights the transformative power of AI in reshaping agency structures, minimizing middle roles, and optimizing operations. Jennifer delves into hiring strategies, emphasizing the importance of experienced talent while leveraging AI for junior tasks. With insights on sourcing top-tier AI talent and modernizing agency stacks, she reveals how agencies can adapt and thrive in the digital age.