Building and running a successful agency is no easy feat. It requires not only talent but also business acumen, sales expertise, and a strategic mindset. Having built several agencies, made countless mistakes, and learned from them, I want to share insights that can help young and growing agencies navigate their own journeys more efficiently. From acquiring Fortune 500 clients to optimizing sales cycles and avoiding common pitfalls, these lessons stem from decades of experience.
Starting and Scaling an Agency
I launched my first agency in 1990. At its peak, we generated $7 million in revenue with an 80%-90% gross margin and a 35%-40% net margin. Today, we operate at a lower revenue level—around $350K-$450K annually—but with similar profitability and much lower overhead. More importantly, I’ve structured my business to allow me a 30-hour workweek and semi-retirement, a goal many agency owners should strive for.
The key to sustainable growth is learning from experience—both yours and others’. I had numerous mentors, coaches, and consultants who helped me grow, and now I want to pass that knowledge on to others.
Breaking into Fortune 500 Clients
Many agency founders dream of working with top-tier clients. Our agency secured major contracts with companies like Rockwell, GE Medical, Kimberly-Clark, Harley Davidson, Abbott Laboratories, and many more. How? A combination of:
Leveraging relationships: Some clients followed my co-founder from her previous Omnicom agency.
Positioning and PR: While we aimed to be a strategy-focused agency, we were initially perceived as a ‘hot multimedia company’—a positioning that unexpectedly attracted big clients.
Industry Networking: Attending trade events and building a strong local presence in an industrial-heavy region like Milwaukee helped us gain traction.
Shortening the Sales Cycle: The typical sales cycle for large accounts can be a year or more, but by quickly qualifying prospects and confidently pushing for decisions, we significantly reduced the time it took to close deals.
Shortening the Sales Cycle
Many agency owners mistakenly believe the sales cycle is beyond their control. But the reality is that controlling the process leads to better efficiency and less wasted effort. Key takeaways include:
Get to ‘No’ Faster: Most prospects will never buy, so the sooner you disqualify them, the sooner you can focus on real opportunities.
Set Clear Expectations: In the first meeting, establish that a go/no-go decision should be made within two conversations. If they need to ‘think about it,’ assume it’s a ‘no’ and move on.
Confidence Matters: When you demonstrate that you don’t need them more than they need you, you position yourself as an expert rather than a desperate vendor.
Finding the Right Team and Leadership
Hiring the right team is one of the toughest challenges for any agency. One mistake I made early on was assuming only industry veterans could run my operations. Over time, I realized that strong operational talent can come from various backgrounds—sometimes even from unrelated industries. For instance, I once hired my bass player, who had experience running catalog production for a major audio company. The key is to:
Develop clear operational guidelines so new hires can integrate seamlessly.
Pay top talent well—a strong director of operations is worth every penny.
Look beyond traditional agency hires for leadership roles.
The Importance (and Misconceptions) of Niching Down
Many agencies resist niching down, fearing it will limit opportunities. But without a niche, it’s easy to become an opportunistic agency that takes on too many different types of work without building expertise. A well-defined niche makes marketing, sales, and operations much more effective. However, there are countless ways to niche:
By industry (e.g., healthcare, finance, tech).
By service (e.g., strategy consulting, UX design, performance marketing).
By client type (e.g., startups, enterprise clients, government contracts).
The Role of Content and Marketing in 2025
Many agencies struggle with balancing sales and content marketing. While content builds credibility and nurtures leads, it rarely converts clients immediately. The priority should always be mastering sales first. That said, strategic content marketing through LinkedIn, blogs, and case studies can reinforce credibility and visibility.
Growth Strategies: Incentive-Based Pricing, Expansion, and Recurring Revenue
Performance-Based Pricing: Many clients request it, but most balk when they realize how it actually works. Agencies must still charge a base fee to cover costs and add performance bonuses for meeting KPIs. Many clients abandon the idea once they see the terms.
Geographic Expansion: In today’s world, geographic proximity is less of a constraint, making remote work and virtual collaborations a viable option.
Recurring Revenue Models: Moving away from one-off projects toward retainer-based contracts stabilizes cash flow but requires a strong value proposition to justify monthly fees.
Effective Lead Generation Strategies
The best sales channel for your agency depends on your niche. However, strong methodologies across multiple channels yield the best results:
Cold outreach (email, LinkedIn) – Works if you have a refined sales process.
Networking and events – Still valuable for high-ticket services.
Content marketing – Builds authority over time.
Paid ads – Can generate inbound leads but requires significant investment.
Avoiding Common Pitfalls
Having navigated the agency world for over 30 years, I’ve seen (and made) many mistakes. Some of the most common include:
Not understanding true operating costs.
Failing to develop repeatable sales processes.
Lowballing prices to win clients, leading to bad deals.
Spending too much on unnecessary office space.
Doing too much speculative work for potential clients.
Final Thoughts: Would I Start an Agency Today?
Given the current challenges in the industry—including a growing trust gap between agencies and clients—I’m not sure I’d start an agency from scratch today. Many firms are now scaling by acquiring other agencies instead of growing organically. However, for those committed to the path, mastering sales, operations, and positioning is more critical than ever.
For anyone looking to grow an agency efficiently, my biggest piece of advice is to get professional sales training, be ruthless with qualifying leads, and build a business model that supports both profit and quality of life. The agency world is tough, but with the right strategies, it can also be incredibly rewarding.
