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

Have you considered bringing on a partner to lighten the immense pressure of solo agency leadership? Do fears around lacking key skills or experience hold you back from taking the entrepreneurial leap yourself? When today's guest launched his first agency, self-doubt around "going it alone" led him to take on a co-founder partnership. But without aligned goals from day one, hairline fractures quickly formed. As their once amicable agency grew and priorities diverged, he outgrew the partnership and they went their separate ways. In this interview, he'll talk about why he didn't go into a partnership for the right reasons, how the dynamic between he and his partner worked, and how they went about the adjustment process after the split. Tune in if you're an agency owner trying to figure out whether a partnership would be right for you. Rob Rosasco is the founder and driving force behind Too Darn Loud Digital Marketing, a boutique agency that specializes in assisting law firms to amplify their presence and reach. Rob reflects on his early days in the industry, his eventual venture into starting his own agency, and the initial fears that led him to start his business with a partner. He goes into the dynamics of the partnership and how eventually he found himself outgrowing it, both professionally and in terms of the vision for the company. In this episode, we'll discuss: Building an exit strategy after outgrowing your partner. Dividing the agency when selling is off the table. Preparing an ironclad clause for an agency partner breakup. Subscribe Apple | Spotify | iHeart Radio Sponsors and Resources Gusto: Running payroll and benefits is hard. Especially when you're a small business. Gusto is a tool that helps make 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. Outgrowing Co-Founders: Building Exit Strategies into Agency Partnerships After working for a larger company in the legal marketing space for eight years, Rob felt starting his own business would be a natural transition. His journey into entrepreneurship began with a mixture of ambition and caution. Initially hesitant to venture solo into the competitive arena of digital marketing, he decided to start his business with a partner. This decision, born out of a desire to mitigate the challenges of launching and running a business independently, marked the beginning of a significant phase in his career. At the heart of Rob's professional expertise is a profound understanding of sales and client engagement, a skill set essential for the growth of his venture. Despite his extensive experience, he recognized the need for support in areas like back-office operations, web development, and SEO. So he resolved to partner with someone who could complement his skills and share the entrepreneurial journey. The relationship worked exactly as he had envisioned for a while, with his partner working his excellent selling skills to get clients while Rob ran the business. As the business evolved, Rob found himself at a crossroads. Both he and the agency outgrew his partner who got comfortable staying at a certain point in terms of growth. After seven years, the differing visions and philosophies between him and his partner necessitated a reevaluation of their partnership. However, their operating agreement did not include language for this specific situation where one partner was dissatisfied with the other's contribution. Rob's experience is not just a tale of business strategy and partnership dynamics; it emphasizes the importance of having clear terms in any business partnership, especially provisions for situations where partners may need to part ways due to divergent goals or strategies. When Selling's Off the Table: Divvying Up Split Partnerships Not all partnerships have to end this way. If you have a business partner and are thinking about parting ways, think hard about whether you have irreconcilable differences or just need to make a few changes. Having fundamental differences in your approach to the business, vision, and philosophy is very different from just needing a new role. If you do decide you just don't see eye to eye in the business anymore, then it's better to part ways sooner rather than later. By the time both partners accepted it was no longer working out, they considered different options like splitting or one of them buying the other out. Selling the agency seemed like a possibility in the beginning, having already received some decent offers. However, Rob and his partner couldn't agree on what constituted a fair amount. Rob pushed to buy his partner out to have the company as a whole, but it wasn't possible. Since neither of them wanted to sell, it came down to splitting their customer base down the middle. It wasn't what he wanted, but it was the solution that ultimately avoided a long legal battle. Preparing for Bitter Ends: Ironclad Clauses & Agency Breakups After the split, Rob and his former partner were able to chart a new course through thoughtful negotiation. With the client base divided 50/50, it was time to also decide who their employees would continue to work with. Four of their employees went to work with Rob while another two split their time between both as they went through the transition. As to their clients, they were informed as soon as the deal was made. However, it would be another four to six months before they'd see real changes like new bank accounts and invoices. Overall, it was a very successful transition, considering they didn't lose neither clients nor team members in the process. Golden Nugget: While their approach went smoothly, the experience revealed gaps in his agency legal safeguards. When co-founders part ways, air-tight client contracts become essential. Specifically, it's important to include a clause in your client agreement clarifying you can transfer those contracts in case of a sale. For context: smaller agencies (under $5M revenue) typically transact as asset sales. This means the buyer purchases all client contracts and can onboard accounts without seeking added approval. But without explicit clauses permitting easy account transfers, securing signatures of dozens (or hundreds) of clients amidst an agency sale sounds nightmarish. As does trying to exclude accounts unwilling to switch over. Come sale time, this clause spares chaotic scramble to confirm who stays and who goes. The buyer inherits your book of business cleanly. No need to parse accounts in the midst of a turbulent ownership shuffle.. It may feel premature early on, but it ultimately provides flexibility to pivot strategically as your agency evolves. Whether a bitter founder split or lucrative acquisition offer, you dictate the terms without complications. 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.

Are you getting ready to sell your agency? Are you looking into potential buyers? How will you protect your interests in an M&A process? Today's guest has a lot of experience, and even a book, in this area having sold the same agency twice and coming out mostly unscathed from the initial failed deal. He'll share some of the good, the bad, and the ugly aspects of selling your agency and the challenges of managing a large agency team. Tune in to gain valuable insights on navigating the process of selling your agency. David Rodnitzky is a digital marketer who started and later sold 3Q Digital, a team of 500+ rockstar/ninja/guru online marketing pros who offer expertise in online analytics, decision science, strategic consulting, creative, and conversion rate optimization. He also founded Agentic Shift, a boutique consulting firm dedicated to helping agency founders successfully exit their businesses through mergers or acquisitions (M&A). Recently, David poured all his M&A expertise into his new book, Selling Your Marketing Agency, which you can get on Amazon. In this episode, we'll discuss: The Key to managing an agency team of over 100 people. An ironclad acquisition contract clause that will save your agency. Lessons to help you avoid pitfalls in the M&A process. 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. Accidental Agency Owner in Search Engine Marketing According to David, he sort of glammed into the world of search engine marketing after started in digital marketing in 2000. He worked at a series of startups in Silicon Valley, for about eight years and moved on to a company where he found the culture was not one he agreed with. He was traveling to India three times a year to manage a team while his wife was pregnant and decided it was not a smart family decision. So he quit and set up shop in a coffee house in Pacifica, California. Soon people started calling him to help them with search engine marketing consulting and he had an agency. That agency Today is 3Q Digital, part of a bigger organization called DEPT. The Key to Managing Over 100 People: Maintaining Consistency of Quality and Processes For David, it's a lot harder to go from managing two people to 25 people than it is to go from 25 people to 100 people. No individual can manage hundreds of people. You can only dedicate so many hours per week to checking in with your team. In this sense, he has learned the importance of maintaining consistency of quality when it comes to the people he hires, as well the importance of processes. Most agency owners would agree it's relatively easy to manage and monitor two or three employees and make sure that they are doing a great job. However, the more people you hire, the more you have to delegate that responsibility and the less you sort of know about how well your team is performing. So David has learned to remain constantly obsessed with quality on the team. As to delegating, processes will be key to maintaining quality, and unfortunately, most agencies don't have many processes. At David's agency, when a client is onboarded, the success or failure of that client is based on the person assigned to that account. The results could vary since everyone has their unique ideas. That's why you'll need a solid process to ensure consistency because you can't have a brand without consistent results. An Ironclad Acquisition Clause to Save Your Agency from Ruin Initially, David wasn't planning on selling his agency, until the offers came pouring in unsolicited. So he hired an investment banker to keep track of these inbound leads and screen them to determine which ones were legitimate buyers. At this point, David decided to do a "mini process" where he sent letters to some potential buyers hoping to get official offers. The idea was to create a competitive environment and increase his company's perceived value. The result was three great offers with one clear winner. This offer was a lot higher than David had expected, as its owners were bent on buying an agency. In the end, they took the offer for $30 million in cash and $35 in an earnout over three years. But business veterans know big payouts often come with equally big headaches. So before ink hit paper, David negotiated an ironclad clause: until the full earnout paid out, he would retain absolute authority on all agencies like finances, sales, and hiring. Furthermore, if the company failed to meet the initial terms David would have the option to buy the agency back. He'd soon confirm adding that clause was the right decision. Earnout Loopholes and Buying Back the Agency to Rebuild Under the deal signed with their new parent company, David would get his earnout if he managed to double the agency's revenue in three years. They had to get from $17 million in revenue to $35 million in three years. Looking back, David believes the buyers didn't think they'd be able to do it. However, after about a year and a half, it became clear the agency would reach that goal. Unfortunately, the parent company was now facing some economic struggles and it became clear they'd be unable to pay the $35 million. This led to a second process that was the opposite of the first one. With their parent company struggling and trying to sell just two years after acquiring them, no one seemed interested in buying. Finally, saving his agency came down to securing a $5 million loan to buy it back. Under this deal, they would give the parent company $5 million in cash immediately and remove the $35 million debt obligation, to which they agreed. David took the company back and focused on scaling it and nine months later he got purchase offers once again. In the end, he sold under a traditional private equity deal. More Lessons on the Agency M&A Process Having sold his company once, David was prepared for the push and pull of negotiations and figured he'd had to make some compromises. He focused on making sure his interests were protected after the deal was done. "People are very nice during the M&A proves, but afterward it's the contract that speaks," he says. Whatever the negotiation point you want to secure, David recommends getting it in writing. You'll occasionally see a different side of people when money is involved, which is why he recommends working with people you trust and hiring the best lawyers you can. You can't anticipate any wrongdoings, but you can protect yourself to the best of your ability by looking at every corner case before the deal is signed. 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.

Are you paying attention to the changes AI is bringing to the agency world? How have you been finding ways to incorporate it to streamline processes? Would you consider hiring a dedicated innovation role to keep track of these technological advances and not fall behind? Today's guest has been in the industry for over 20 years but has been active in staying on top of new technological developments that will change how marketers operate forever. He's actively testing new uses for AI and working to keep his team excited about learning everything they can about these developments. Discover why refusing to learn and adapt will leave your agency in the past and the importance of a good AI prompt to get the best results. Jeff Lizik is the president of RedShift Digital Marketing, an ROI-focused business that defines itself as more of an "anti-agency". His team promises to increase clients' visibility, boost website traffic, and grow their business while building real relationships that will impact their businesses. Jeff shares how his accidental success as a paintball retailer led to his venture into the world of digital marketing. He also dives into the challenges he faced with Google's algorithm updates and highlights the need for agency owners to be versatile and adaptable in a constantly evolving industry. In this episode, we'll discuss: The power of an expertly crafted AI prompt. Will you eventually need a director of innovation? Why you should hire highly skilled talent sooner rather than later. From Accidental E-Commerce Success to Leading a Top Agency Jeff found accidental success in the e-commerce industry in 2001 selling paintball supplies he got on eBay. Within a year, he had sold a million dollars worth of products and became the second-largest paintball retailer globally. At one point, he even participated in the beta testing for third-party selling on Amazon. After his e-commerce venture, he initially decided to take a break and go back to a corporate job. It didn't last long though; once he missed the entrepreneurial lifestyle, Jeff started building affiliate sites and was making more money than before. However, once Google implemented the Penguin update, all its sites plummeted in search rankings. Unwilling to rebuild the sites, he decided to start his own agency instead. How Technology Has Transformed and Continues to Transform Marketing With over two decades in the agency business, the main changes Jeff sees are powered by technology; nowadays there are very efficient tools that have helped marketers improve their jobs. According to Jeff, technology has made marketers more efficient and effective in their strategies. Search engines, particularly Google, have evolved to become more complex. Everything about Google's search results has changed, such as the placement of ads at the top and the decrease in organic search visibility. But most people now rarely use Google for searches and instead rely on YouTube and other platforms. Hence, videos have become more important in the decision-making process and social media platforms such as Instagram will play a larger role in driving consumer behavior and sales. On the other hand, nothing is as simple as 20 years ago. Back in the early 2000's marketers could still scam the search engines. That's not possible nowadays, so you have to be good at your job. And we've yet to see the full impact of artificial intelligence (AI) on the industry, probably the biggest transformation marketers will go through. The Power of an Expertly Crafted AI Prompt By now we should all understand there are potential dangers associated with AI, which is why its use should go hand in hand with human oversight and the correct prompts. There's always the possibility the AI is giving you false information. Treat it as a tool, not a replacement for human expertise and judgment. AI prompts are powerful tools that have the potential to revolutionize the way marketers approach their work. They can significantly enhance productivity and efficiency by streamlining processes and reducing time spent on tasks. When it comes to creating the perfect prompts, there are already services that create these prompts for you, which not a lot of people know. These premium prompts are built by experts in the field and provide complete context and background information, ensuring that the AI understands the desired output accurately. By investing in advanced prompts, marketers can gain a deeper understanding of AI capabilities and maximize its potential. In his case, Jeff works with very detailed prompts that produce very efficient results. How does he use this tool? After uploading detailed information about his agency and the type of clients they work with, he uses AI to create different personas and works through that until he gets one ideal customer profile. He then asks the AI to create headlines based on this customer's pain points, as well as ideas for every social media platform. In detail, he's experimented using AI for several areas and can confidently say he can use it for content strategy, lead generation, topic ideas, and lead magnets, and has continued to fine-tune it to get more efficient results. Done correctly, AI prompts can be a marketer's best friend. Why AI Implementation Will Eventually Require a Dedicated Role It can be tricky to get your team excited and comfortable using AI. They've been doing things a certain way for so long that they may be wary of so many changes. Jeff is slowly turning this around by offering individual members tips and ideas for how to use their prompts and save time. Furthermore, he's also pushing for them to learn all they can about AI and its uses. Eventually, he plans to record SOPs from which they'll learn the processes he's currently figuring out. However, information about AI changes constantly, so he's been holding off on doing that for now. One important aspect of the future implementation of AI use in his agency will be hiring a dedicated role responsible for overseeing its implementation and maximizing its potential. Ideally, this role would be tied to all kinds of technological developments changing the industry, rather than just overseeing the use of IA prompts. This director of innovation would be responsible for staying ahead of emerging technologies and trends. They would be tasked with identifying opportunities for implementing AI in various facets of the agency's operations and developing standard operating procedures (SOPs) to guide the team in utilizing AI effectively. AI is set to become an integral part of the agency business, which warrants dedicated attention. In this regard, having someone in this role full-time will be crucial for potential cost savings and efficiency gains. Why You Should Hire Highly Skilled Talent Sooner Rather Than Later At this point of their agency growth, there are some roles where Jeff and his partner look to hire people with the highest skill level possible. They no longer have the time to teach them and mold them into the role. In the past, hiring people who don't have the capacity needed for the role has burnt them and made the agency worse. Team loyalty is important, of course, but Jeff now recognizes the need to prioritize the agency's growth and success. In a sense, he recommends holding people accountable. Once you do that, they'll either step up and become great in their role, or they'll see themselves out. Knowing how having highly skilled team members can significantly contribute to the agency's growth, Jeff wishes he'd invested more in talent since the beginning. However, after the pandemic, hiring outside your state and even your country has become much more common. This has opened many more options when it comes to finding talent. Hence, newer agencies are coming up in a new landscape where they can much easily find the best talent for their needs. Don't Fall Behind, Pay Attention to Coming Changes If you're not learning about AI and testing the many ways you could be implementing it in your agency, what are you waiting for? Way too many people in the agency industry are ignoring AI. Make no mistake, if you don't adopt AI, you will be left behind. By the time the agencies not paying attention to the impact of artificial intelligence start to pay attention, it'll be too late. Additionally, with the rising prices of Google ads and Facebook ads Jeff he also encourages agency owners to think about the future. What if the search is no longer affordable for your clients? How will you get eyeballs on your client's products and services? Options like video content and podcasts will be game-changers and we should all be on the lookout for more of these options before we're blindsided by reality. 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.

Manish Dudharejia, an expert in agency management and business scalability, joins Jason Swenk to discuss the value of continuous innovation and strategic thinking. They emphasize the importance of adapting and evolving business strategies over time, reflecting on past mistakes as learning experiences. They also explore the power of proactive thinking, setting personal goals, and recognizing mistakes for continuous improvement in agency growth.

Is your agency able to turn video views into paying clients? Do you know how to craft an effective video ad and test its results? Why is YouTube still the platform yielding better results for your video ads? Today's guest specializes in video advertising and knows many agencies still haven't fully tapped into the potential for video ads to engage customers and drive results. He'll unpack why YouTube specifically is the best platform for agencies to focus their video efforts and the key ingredients for crafting attention-grabbing YouTube ads that convert. Tune in to learn to maximize your video marketing efforts, leverage data-driven video campaigns, and understand the video marketing opportunity agencies cannot afford to ignore. Jake Larsen is the owner of Video Power Marketing, a video marketing agency that aims to help clients power their businesses by leveraging video and YouTube ads. For ten years his agency has helped clients understand the importance of creating the right video, targeting the right audience, and presenting them with the right offer to achieve successful results. By following this formula, agencies can effectively utilize video ads on YouTube to grow their client base. In this episode, we'll discuss: Why agencies should prioritize YouTube for their video content. 3 elements to creating a successful YouTube ad campaign. Keys to building the right message and offer. Subscribe Apple | Spotify | iHeart Radio Sponsors and Resources Gusto: Running payroll and benefits is hard. Especially when you're a small business. Gusto is a tool that helps make 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. Why Agencies Should Prioritize YouTube for Video Marketing Efforts In many cases, the reason why many people don't get the views they should be getting on their videos comes down to the platform. For his part, Jake likes YouTube as a unique platform for reaching a highly targeted audience. One of the key advantages of YouTube ads is the quality of views they offer. Unlike other platforms like Facebook and Instagram, where a view is counted after just a few seconds, YouTube considers a view when the viewer watches at least half of the ad or 30 seconds, whichever comes first. If you're using YouTube ads, you can be assured that those ads are being seen by engaged viewers likely to convert into leads or clients. Another advantage of YouTube ads is its intent-based targeting. Since Google owns YouTube, agencies can target viewers based on their search behavior on Google. For instance, if someone searches for "how to grow my marketing agency" on Google and then goes to YouTube, they'll probably be served an ad related to growing their agency. This highly relevant audience-to-message ratio makes it easier for agencies to connect with their target audience and deliver their message effectively. In terms of mindset, just remember to create ads that focus on the audience and their problems, rather than solely promoting your business or product. They suggest that great ads are those that offer solutions and make the audience's lives better. They advise advertisers to consider their target audience, how to grab their attention, build trust, and offer something that will improve their lives. 3 Elements to Creating a Successful YouTube Ads Campaign To create a successful YouTube ad campaign, Jake suggests focusing on three key elements: Can you create the right video? Can you reach the right audience? Do you have the right offer for that audience? If you can get those three elements to line up at the right time, you'll maximize your results. Agencies need to create compelling videos that resonate with their target audience and effectively communicate their value proposition. After that, they need to ensure that their ads are being shown to the right audience. Lastly, agencies need to provide the right offer that entices viewers to take action, whether it's signing up for a newsletter, booking a consultation, or making a purchase. YouTube ads offer agencies a unique opportunity to reach a highly engaged audience, and with the right approach, they can effectively grow their client base and drive business growth. What are the Keys to Building The Right Message and Valuable Offer? To successfully utilize YouTube ads, Jake recommends crafting a message that resonates with your target audience. He suggests addressing their specific pain points or needs. This requires a deep understanding of your audience and their motivations. In terms of how this message is constructed; in particular, Jake recommends not skipping these key elements: Effective hook, The problem you're trying to solve, A solution to that problem, Credibility, Call to action, And words of inspiration. You need a valuable offer to entice viewers to engage with your ad. Offer something of value in exchange for their contact information, such as a free ebook or training. By providing something valuable, you can build trust and establish credibility with potential clients. Once you have the right message and a valuable offer, it's crucial to test different aspects of your ad to ensure its effectiveness. This includes testing different videos or variations of the same video to see which resonates best with your audience. This way, you can identify which videos generate the most engagement and conversions, allowing you to optimize your ad strategy and improve your results. Are Shorter Ads Always the Best Option for Agencies? Are shorter ads really more effective? We all know people have short attention spans, however, according to feedback Jake and his team have found that their two to three-minute video ads consistently outperform 15 to 20-second ads. For Jake, this is probably due to the fact that longer ads provide the necessary time to tell a story or create a connection with the audience. Additionally, he says 15 or 20 seconds is not enough time to engage viewers and prompt them to take action. Shorter ads may work for well-established brands like Nike or Starbucks, which have already built recognition and trust among consumers. Furthermore, Google may prefer shorter ads to keep viewers on the platform for longer. As long as an ad is engaging, it can be longer than 15 or 20 seconds and still be effective. The effectiveness of ad length depends on the goals of the campaign. If the goal is to grow brand recognition and measure impressions and views, shorter ads may be more successful. However, if the goal is to drive traffic to a website, generate leads, or have viewers take specific actions, longer ads of at least 60 seconds. Ideally, two to three minutes may be the most effective. With YouTube, advertisers can target audiences who have visited their website or are on their email list. Additionally, if an advertiser has a YouTube channel with over a thousand subscribers or views, they can target those viewers with specific ads based on their previous interactions with the channel. Do You Want to Transform Your Agency from a Liability to an Asset? If you want to be around amazing agency owners who can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360. Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Do you know how to get the attention of big brands? Wondering if the glory of having enterprise clients justifies the headaches involved? Are you highlighting success stories to get attention and attract the sort of clients you want? Today's guest dissects big brand dilemmas having partnered with countless household tech names. She says cracking their codes hinges on network and leveraging your identity. We'll explore challenging elements agencies endure silently while chasing coveted opportunities. Tune in to unveil the dualities separating perception from reality when pursuing premier partnerships. Kaitlyn Barclay is the CEO and co-founder of Scout Lab, a creative communications agency specializing in branding communications and campaigns. Her agency has grown well past the million-dollar mark and works with some of the biggest brands in the world. Kaitlyn talks about her background in the tech industry and how it influenced her decision to create an agency that caters to tech companies. Tune in to learn how she decided to go all-in when promoting the agency, leveraging personal networks, and how her agency was able to establish a strong reputation and gain attention from big brands. In this interview, we'll discuss: Using your identity and existing clientele as leverage. Possible hurdles of working with big brands. Highlighting success stories to attract next-level projects. 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. Creating a Differentiated Offer to Drive Value to Clients Coming from Silicon Valley, Kaitlyn had a deep understanding of the world of tech, specifically multi-sided marketplaces. She had previously started a company in 2015 that was later acquired. Back then, she craved an agency that intrinsically understood technical founders' mindsets and markets. So she built that rare specialty boutique herself alongside a partner. The agency quickly took off from there. Scout Lab's success can be attributed to its unique approach and differentiated offering. Kaitlyn went all in promoting their services to her entire network, many of whom were working with the type of clients she eventually wanted to work with. One key aspect of their differentiated offering was a clear point of view and their ability to blend the practices of brand building with agile methodology. This unique combination allows them to create a shared language with their target clients, who are often tech-focused and product-oriented founders. Most agencies default to retrofitting versus innately knowing tech, thus Kaitlyn positioned Scout Lab through authentic insights and delivered uniquely tailored transformations. They didn't have to pretend - focused specialization allows them to stand out by simply understanding the audience Positioning Your Agency at the Edge of Culture In 2016, many things were happening in the world and many big brands made huge marketing mistakes that came down to ignorance. Big brands wanted a partner who could provide a 360-degree view of their target audience. Kaitlyn's agency promised an extraordinary amount of research on the clients' potential consumers to have a 360-degree view of the audience they want to acquire and retain. They called it "purpose-driven marketing" although she agrees the term has lost all meaning with time. However, in 2016 when brand safety was top of mind for many executives, it was extremely provocative. They were an organization that understood the needs of tech brands to launch and scale. Billion-dollar companies were looking to appeal to "the cool kids", folks who were on the edge of culture. By positioning themselves as experts on the bleeding edge of culture, Scout Lab was able to open doors and secure partnerships with these multinational corporations. Leveraging Your Identity and Existing Client Work Even though they had exactly the expertise and fresh approach big brands were looking for, how could they get their attention? Kaitlyn knows your network is your net worth, so networking plays a crucial role in approaching these clients. Representing themselves and their business in the right rooms and talking to the right people was essential. To establish a differentiated point of view, they made a list of "no's," identifying who they wouldn't work with. By staying true to their values and focusing on enabling access, they became an attractive agency partner for clients who wanted to be more agile, purpose-driven, and consumer-centric. Additionally, ScoutLab used its identity and existing client work as leverage. In this regard, Kaitlyn started to share the agency's case stories with her network, hoping to attract similar successful businesses. She also recalls how her writing paid off in spades. She wrote an article on genderless AI published in Fast Company, as a way to establish her expertise and perspective. This allowed her to represent herself and her agency when she wasn't directly communicating with potential clients. Finessing the Big Brand Balancing Act Getting prestigious big-name clients is tempting, but it's also good to be aware of the not-so-great side of things. For starters, procurement can be a complex and difficult process. This can be a stark contrast with upstart and challenger brands, where it's usually a more straightforward process. In this regard, if you're facing a similar situation you can resort to use factoring, where companies can sell their invoices to a third party for a percentage of the invoice value. This allows businesses to receive cash up front, even if the payment terms are longer. If this is not something you'd like to try, work on building a relationship with the head of procurement to ensure invoices are given priority and paid promptly. Finally, Kaitlyn recommends holding final files until payment is received as a way to ensure that you're not taken advantage of and protect your financial well-being. Other than payment terms, endless red tape also mires and sometimes kills initiatives. This can result in projects being delayed or even abandoned, which can be disheartening for the agency. It is possible to work efficiently with larger organizations, but it may not always be the case. All in all, having big brand names in a portfolio is a way to attract clients. It's a fact that big brands will be interested in an agency's work with other big brands. However, they're also very excited about an agency's work with challenger brands, because it is usually their most creative work. So make sure to highlight that work as well. In the end, it's a dance between celebrating your big wins and highlighting courageous innovations. It'll all depend on the kind of business you're hoping to attract. Boosting Human Capital to Attract Next-Level Projects Kaitlyn credits human capital investments as profoundly moving agency growth needles. As an agency, human capital is how you develop creative ideas and establish robust relationships with clients that are essential for agency growth. By offering benefits such as a 401k matching program, agencies can elevate and support their workforce, leading to improved creativity and client relationships. More recently, she's been more thoughtful about showcasing successful projects to attract more of the same kind of work. To this end, she now develops case studies to share with her network. Furthermore, the agency has applied for awards to get accreditation for these projects. It's a way to make every sale count as much as possible and attract more projects that align with their vision and strengths. Do You Want to Transform Your Agency from a Liability to an Asset? If you want to be around amazing agency owners who can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360. Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Jason Swenk and Darby Copenhaver reflect on the annual live retreat for digital agency owners. They discuss the benefits of in-person meetings and personal growth. Topics include staffing, agency values, and leadership check-ins. They also highlight the importance of evaluating team members and clients based on shared values. The podcast touches on gender diversity and the active participation of women at the retreat.

Want to achieve growth through means beyond just new client acquisition? What is profitable for one company may fail another. Today's guest knows profitable strategies demand contextualization. He built an agency helping ecommerce businesses optimize profits by leveraging his analytical skills and his desire to help people and make an impact. Learn about the many aspects beyond just creativity where an agency can come in and help drive their client's profitability. He recalls his start as a nurse and his transition to working in ecomm, as well as some lessons on how to achieve growth without focusing solely on reducing acquisition costs, and why you should never lose sight of the bigger picture. William Harris is the founder and CEO of Elumynt, an e-commerce growth agency focused on maximizing their clients' profitability with a team that gets obsessive about data to build the best-performing and most cost-effective ad campaigns. William has published over 200 articles on e-commerce and advertising leadership and will detail the ways in which he uses intelligent strategies to help eCommerce and SaaS businesses accelerate their revenue. In this episode, we'll discuss: Analyzing customer lifetime value to determine profitability. Taking comprehensive approach to advertising. How the P&L unlocks a client's full value. Remembering what matters most. 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. Podcast Takeover!! Get to know your Smart Agency Guest Host: Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason's podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he's helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and getting a new perspective to the show. Combining Problem-Solving Skills and Desire to Help People Growing up, William had a passion for inventing and problem-solving to come up with new ideas. He also had a strong desire to help people, which he pursued through a career in nursing. While working as a per diem nurse, he witnessed the hospitals' staffing challenges. Their ineffective system was leading to problems in providing adequate care to patients. This was probably a problem at a lot of hospitals, which sparked his interest in finding a solution. It was 2013 and hospital schedules were still done on paper. William met with Chad Halverson, who ran a company called When I Work, and discussed using his API to develop scheduling software specifically designed for hospitals. It was a project that could truly have an impact on both hospital administrations and patients. During their time working on this, Chad recognized William's marketing skills and offered him an opportunity to lead his marketing team. It was a chance to combine his problem-solving skills and marketing expertise. Analyzing Agency Customer Lifetime Value After his time at When I Work, William transitioned into the e-commerce industry helping different businesses achieve growth and success. The eCommerce industry was still very young and many founders entered the field with innovative ideas but lacked a deep understanding of business concepts. Rather than solely focusing on minimizing acquisition costs, William helped clients view higher acquisition costs as wise investments given sufficient customer lifetime value. To attract valuable customers, William leveraged advertising supplemented by lifestyle partnerships seeking to get involved in customers' hobbies and lifestyles. By sponsoring events or activities related to their target market, businesses can establish themselves as part of the community and build a loyal customer base. This approach not only increases brand awareness but also allows businesses to better understand their customers' needs and preferences. William attributes this focus on customer lifetime value to his background in SaaS where it is common to analyze the customer acquisition cost (CAC) to lifetime value (LTV) ratio to determine profitability. To him, it became a sort of fun math problem. Understanding where a business needs to be in terms of this ratio is crucial for long-term success. What may be profitable for one company may not be for another, and each business needs to determine its own profitability threshold. Maximizing Profitability Using a Comprehensive Approach to Advertising Many eCommerce stores fixate too much on immediate transactions over long-term profitability. A lot of these businesses just look at the return on ad spend, which while commonly used as a metric to measure advertising success doesn't necessarily reflect the overall profitability of the business. William and his team take a more comprehensive approach to advertising and marketing strategies. They look at maximizing profitability on both a unit basis and an aggregate basis. This means considering factors such as the cost of goods sold (COGS), overhead, shipping costs, and returns costs. By incorporating these numbers into their advertising strategies, they can optimize campaigns to focus on the most profitable products. Why the P&L Are Key to Unlocking a Client's Full Value Ideally, when his team is starting to work with a new client they look to get access to some basic numbers like their percentage of sales on an average basis. They understand their average overhead, shipping costs, and returns costs. Many clients will directly share their P&Ls with them or at least some kind of an analog to their P&L. While it is not common for agencies to delve into P&Ls before signing clients, William believes it becomes crucial once the client is onboarded. Surprisingly, the marketing teams themselves are often unaware of the P&Ls, which can hinder their ability to make informed decisions. Some smaller companies may be hesitant to share this information due to privacy concerns; for larger companies with complex organizational structures, obtaining P&L information may be more challenging. If a client is unwilling or unable to provide P&L information, William may choose not to work with them. Not due to a lack of willingness but rather a recognition that the client may not be ready for the agency's value-driven approach. Learning it's Not a Matter of Life and Death Before starting his agency, there was a moment where William tried to change up some things and as a result of that, he lost three good clients. At the time, he just saw it lost a lot of revenue and was concerned. What could he do? He went to his mentor, Dave Mortensen, who to his surprise, just started laughing. "It was exactly what I needed," he recalls. That reaction helped him realize he was freaking out about something that was not that big of a deal. Customers come and go. Since then, those clients have been replaced by better, bigger clients who are a better fit for his agency. Remembering What Matters Most as a Parent and Founder Parenting and running a company simultaneously can be one of the hardest things you can do. William admits that he doesn't have it all figured out. There are times when he has to go all-in on the agency to figure out particular issues. On the other hand, he also makes sure to make time for his family. As a former nurse, William remembers times when he had to hold someone's hand as they drew their last breath. Not once did someone express regret for not working more. When they had anything to say, they usually wished they'd spent more time with family and doing things they loved. Ultimately, William's advice to entrepreneurs is to prioritize and find a balance between work and family life. As entrepreneurs, it's easy to get caught up in the immediate pressures and decisions of running a business. However, if you're not making time for things you enjoy you may end up feeling burned out. Do You Want to Transform Your Agency from a Liability to an Asset? If you want to be around amazing agency owners who can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360. Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.

Branding expert Jaci Russo discusses earning your brand by understanding prospects, focusing on quality over quantity, and speaking in their terms. She emphasizes answering 'What can you do for ME?' and tailoring solutions for deeper connections in digital agencies.

Did you know time is the most valuable resource for clients? How are you helping clients maximize their time with your services? The relationship between agency responsiveness and revenue is something more agencies should be looking at closely and something that will surely give you a competitive advantage. No matter how good you are at what you do, clients are noticing the time you take to do it. They no longer tolerate months of no communication to then arise with a magical strategy. They want to know what's going on and how long you'll take to deliver results. In fact, they're even willing to pay more for speed. Tune in to hear from an expert on how you can use time and responsiveness to your advantage without making big changes to your process. Jay Baer is an author and business growth and marketing expert with over 30 years of experience in the field. He's written seven business books and owned a series of agencies for most of his career 30 years. Currently, he's "sans agency" as he just sold his global consulting firm 18 months ago. Jay shares his insights on how to create a competitive advantage for your agency. To this end, he emphasizes the need to adapt to changes in customer behavior by focusing on the importance of time and responsiveness in capturing customer loyalty and generating revenue. In this episode, we'll discuss: Prioritizing responsiveness when working with clients. Agency responsiveness as a distinct competitive advantage. A small change to make a great difference: Response without answers. Closing the uncertainty gap. 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. Other Smart Agency interviews with Jay Baer: Converting More Clients by Helping Rather than Selling Talk Triggers that Get Clients Knocking on Your Door Are Agencies Conscious of How They Spend Clients' Time? Jay has gotten into the habit of writing new books and frameworks every three years, which is the time it takes for customer behavior to change. Clients' needs and competitive advantages will change every couple of years and it's important to keep this in mind to stay ahead of the competition. His more recent research revolves around our relationship with time and how it's changed after the pandemic. "I think time is actually the only resource on this planet that we actually share equally," Jay explains. The pandemic was a harsh reminder that nothing is guaranteed and tomorrow is not promised. We have become more conscious of how we spend our time, which has led to various trends in business and personal life. After conducting extensive research on the relationship between responsiveness and revenue, Jay found that, surprisingly, two-thirds of customers now consider speed as important as price when making purchasing decisions. Causing customers to waste time can lead to financial losses. His research findings resonate with agency owners, who often find themselves in a dilemma. As customers, they desire immediate responses and efficient service. However, do they prioritize responsiveness when working with their own clients? Agency Responsiveness as a Way to Get a Distinctive Competitive Advantage Based on these findings, agencies should be using responsiveness as a distinct competitive advantage in business. Basically, with current expectations in customer service, the fastest business will win. Of course, you can also be TOO fast and lose customers' trust in the process. This is commonly seen with chatbots, where an immediate response is seen as indicative of not dealing with a person who can answer your question. In his book, Jay clarifies business owners should be looking for "the right now", which takes a clear understanding of an agency's performance. He recommends implementing a Got it audit, by answering how long does it take your clients to get a response? To get an invoice? To get a report? Basically to get any of the services your agency offers. It may seem like a basic question, but all too often agencies can't answer it. Only by knowing this can agencies identify areas of improvement and make informed decisions to enhance their operations. After all, the perfect amount of time will always be just a little bit faster than the clients expect. Teaching Agency Teams to 'Respond Without Answers' According to Jay, every agency team should be trained to "respond without answers". Basically, it'll happen from time to time that clients ask a question for which you don't have an immediate answer, so you set out to look for that answer and respond once you have it. However, what happens while you're looking for that answer? The person who asked the question has no information and they're freaking out. Instead, by acknowledging their client inquiry and informing them that their question is being addressed, you can alleviate client concerns and build trust. This small gesture completely changes their experience and helps manage client expectations. Furthermore, it can also buy you more time now that the client knows you're on it. Not only will it help you run your agency better, but improving your responsiveness efforts can have a huge impact on all your relationships. How to Close the Uncertainty Gap with Clients We live in an era where we interpret speed as caring and responsiveness as respect. As consumers, we take notice of a company's responsiveness before any money is exchanged. If there's no respect before a deal is made, there won't be respect after. Jay sees this as "Closing the Uncertainty Gap". Many agencies' tendency to make a deal and then disappear for three months while they build a strategy creates an uncertainty gap; Jay defines this gap as "the difference between what you know about what's going on and what the client knows". Clients hate waiting and hate not knowing what's going on. Technology has transformed the way we receive services, providing us with real-time updates and information. Hence, long periods of nothing while the agency works on a strategy is just not acceptable anymore. Agencies tend to fall behind in this aspect as they cling to opacity believing that clients will appreciate their "secret sauce." This is categorically wrong. Close the uncertainty gap whenever possible by creating a visual map that will inform your client of at least the main steps of your process so they understand what's going to happen and everyone's on the same page. Do You Turn Down Rush Jobs? You Shouldn't In his research, Jay was surprised to find that, not only do clients appreciate speed as much as pricing, a lot of them are willing to pay up to 50% to avoid waiting. In light of this, he urges agencies to reconsider their processes. Most agencies work with a "first come first served" order. But what if for whatever reason needs instantaneous service? "Don't turn down the rush," Jay advises. It's a great opportunity. Agencies willing to be flexible and willing to accommodate rush jobs can charge a premium for it. This way, you can cater to clients' needs and preferences while also maximizing your revenue. You'll be surprised at how many clients are willing to pay for it. Now what happens with the client who was next in line and gets bumped back? Offer a 5% discount for those 3 or 4 days of delay in delivering their project. Everyone will be happy and you'll make 15% more just for reorganizing your project plan. Do You Want to Transform Your Agency from a Liability to an Asset? If you want to be around amazing agency owners who can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360. Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.