AI demands a new model of differentiation
To command a premium as AI democratises agency capabilities, CEOs must rethink their traditional approach to standing out. Agencies have long settled for superficial distinctiveness over deep differentiation. Generic offers of ‘great work for ambitious brands’ are everywhere. As are variations on ‘inserting brands into culture’ or giving clients ‘an unfair share of attention’. Without a compelling reason for clients to choose you, you’re just another option in an ever deeper sea of sameness. No wonder traditional repositioning exercises so frequently fail to create lasting change in commercial performance. Now AI is upping the ante on differentiation. The pace at which capabilities are being democratised is remarkable. And once everyone has access to similar tools, it will get even harder for your agency to stand out – let alone command a premium. That’s why agencies need a new model of differentiation – one rooted in clarity, conviction and relevance. We call this creating a ‘Market of One’. What is a Market of One? Being in a Market of One means becoming the obvious choice for certain clients when they’re facing a certain challenge. This could be literally anything – narrow or broad – from supercharging iconic brands to helping start-ups secure funding. You become the obvious choice when what you offer is unique. As your competitors increasingly offer the same capabilities, applying your experience, culture and beliefs can make your agency tangibly different for the clients that matter. You become the leader in a category defined by your own expertise. This gives you a clear and lasting competitive advantage. Differentiation is business strategy Creating your Market of One runs much deeper than external packaging. This isn’t about fancy copywriting. Instead, it’s about single-minded focus – total clarity of business strategy alongside relentless execution to make it real. You need deep conviction about who you are and the specific client challenges that you’re best placed to solve. If you’ve spent years striving for ‘uniqueness’, perhaps all this sounds idealistic. But creating a Market of One is actually based on well-established thinking – albeit thinking that agencies rarely apply. In his 1980 book, Competitive Strategy, revered author and Harvard Business School professor Michael Porter described how companies can differentiate themselves on what their customers value, or by focusing on selected market segments. Creating a Market of One combines these ideas and then extends them – defining ‘segment’ in broader, more behavioural terms than traditional verticals. Another valuable reference point is the ‘resource-based view’ (RBV) of company attributes, as popularised by Jay Barney’s 1991 article, Firm Resources and Sustained Competitive Advantage. This is about utilising the capabilities, competencies and assets most likely to deliver a competitive edge, using the so-called ‘VRIN’ model: Valuable: Solving specific problems Rare: Bringing unique perspectives and experience Inimitable: Building on authentic beliefs Non-substitutable: Delivering outcomes that others can’t. By combining focused differentiation, a discrete target audience and the application of your unique qualities, you can create your Market of One. Tangible competitive advantage Ultimately, you’re cultivating ownability – like Coca-Cola owns ‘happiness’ or Kit-Kat owns the idea of ‘having a break’. But remember this isn’t consumer branding. It’s not about fancy straplines and repetition powered by vast media budgets. Agency differentiation demands more than distinctiveness and consistency. Cutting through the noise requires a clear, tangible offer that your ideal clients can quickly understand – and value. So whether you want to accelerate from good to great, or turn around poor performance, developing your Market of One is an act of commercial transformation – and in the age of AI, an act of survival.
The Four Most Important Financial Metrics to Monitor Your Agency’s Health
Running a successful marketing or advertising agency requires more than just creative excellence—it demands a solid grasp of financial metrics that ensure the agency’s long-term profitability and sustainability. At Agency Management Institute (AMI), we’ve spent decades helping agency owners master the business side of their operations. Our goal is to keep the critical KPIs very simple so that a 5-10 minute glance at your monthly numbers should give you either reassurance that your agency is financially healthy or give you insights as to where you are off-track and how to dig in deeper to diagnose the problem. Below are four critical financial metrics we believe that every agency should monitor. Adjusted Gross Income (AGI) Why AGI Matters: Adjusted Gross Income (AGI) is one of the most crucial metrics for understanding an agency’s true financial health. Unlike gross revenue, which includes all client billings, AGI represents the revenue left after subtracting client-related expenses like media buys, printing, or freelance contractors. This is the money available to cover operations, salaries, overhead, and profit. Gross revenue is a “vanity metric” because it doesn’t reflect what an agency actually keeps to run its business. AGI provides a more accurate picture of operational efficiency and profitability. Ideal Ratios for AGI Allocation: AMI advises that agencies follow the “55:25:20” rule for spending AGI: 55% on salaries and benefits: This includes all W2 employee costs and loaded benefits like health insurance. 25% on overhead: Rent, utilities, legal fees, software subscriptions, and other operational costs fall into this category. 20% for profit: This is the amount that should be left over for reinvestment, bonuses, or owner dividends. If payroll exceeds 60% of AGI or overhead goes beyond 25%, it signals inefficiencies that need immediate attention. Unfortunately, the average agency in the US runs at less than 10% profit until they begin to measure performance against this simple metric each month. AGI per Full-Time Employee (AGI:FTE Ratio) Why This Metric Matters: The AGI:FTE ratio measures how much revenue each full-time employee generates for the agency. It’s a key indicator of productivity and profitability at the individual level. A low ratio suggests inefficiencies in staffing or underpricing services. Ideal Benchmark: Agencies should shoot for at least $175,000 in AGI per full-time employee. Agencies with an AGI:FTE ratio below $130,000 are often in the “danger zone,” where profitability is at risk. Conversely, agencies with higher ratios tend to have leaner operations and better margins. This is the most violated agency metric we see. Most agencies are over-staffed, which negatively impacts all of the other key ratios. How to Improve AGI:FTE: Evaluate team utilization rates to ensure employees are working on billable projects. Increase pricing for services if necessary to align with market rates. Avoid overstaffing by hiring only when AGI growth supports it. Client Concentration Why Client Mix Matters: Client concentration measures how much of your total AGI comes from your largest clients. While landing a high-paying client can be beneficial in the short term, over-reliance on one or two clients can jeopardize your agency’s stability if those clients leave. Ideal Range: Ideally, agencies should keep any single client’s contribution to AGI below 25%. A concentration above 30% is considered risky because losing that client could significantly impact cash flow and operations. It also leads to the client running your agency because you become beholden to that income. How to Diversify Revenue Streams: Actively pursue new business opportunities that align with your ideal client profile. Focus on upselling and cross-selling services to existing clients without becoming overly dependent on any single account. Regularly review your client portfolio to ensure a balanced mix of revenue sources. Profitability Metrics: EBITDA and Delivery Margin Why Profitability Metrics Matter: Profitability is the ultimate measure of an agency’s financial health. Two key metrics stand out: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Agencies should aim for an EBITDA margin of at least 20%. This ensures there’s enough profit left after covering all operating costs. Delivery Margin: This measures the percentage of revenue left after direct costs like salaries and project expenses. Agencies should target a delivery margin above 50%, with anything closer to 60% being ideal. Common Profitability Pitfalls: Overpaying employees due to competitive hiring markets. Underpricing services relative to their true value. Inefficient project management leading to scope creep or write-offs. How to Improve Profitability: Regularly review pricing models and adjust rates as needed. Implement tighter controls on project budgets to minimize write-offs. Monitor overhead expenses closely to avoid unnecessary spending. Tracking these four financial metrics—Adjusted Gross Income (AGI), AGI per Full-Time Employee (FTE), client concentration, and profitability ratios—provides a comprehensive view of your agency’s financial health. By adhering to benchmarks like the “55:25:20” rule for AGI allocation and maintaining a balanced client portfolio, agency owners can ensure sustainable growth while mitigating risks. Running an agency isn’t just about delivering creative work; it’s about running a disciplined business operation. Monitoring these metrics monthly or quarterly can help you identify red flags early and make informed decisions that drive long-term success.
Your Four Competitive Advantages
This article is not about your positioning, which should be truly unique to you versus other firms in your category. I’ve covered that in great detail in this look at the Waterfall of Differentiation, where you try to put competitive distance between your firm and the other firms in the same category. The simple test for whether you’ve landed on something that will actually work is easily summed up in this question: “If I withheld my services from this potential client, how long would it take them to find what they deem to be a suitable substitute for my services?” And “they” is italicized because they get to define that, not you. The answer, if they are fair about it, should lead to them to a half dozen other firms from which they can choose. Inhouse = Specialized But this article isn’t about that. It’s more about how nearly every independent firm in the comms and marketing and advertising and digital and public relations space, as an entire group, is distinct from an inhouse department (sometimes known as client-side departments). In other words, why do they hire you instead of building out their own capacity? Some do, too, and in fact 80% of companies have some sort of internal capability. Some people will say that an internal department saves money, but that’s largely nonsense. I’ve authored those studies myself and there’s no cost savings to be had. No, the best reason to build a department is the same specialization question: we are creating a mix of professionals that know our space exceedingly well. All the other things that are also true of that department (like accessibility) usually work against them and not for them. So back to the question: why do companies—even the ones with internal departments—use firms like yours? There are four eternal reasons, and it’s good to keep these in your back pocket when you are pitching your services. Some of these you can talk about directly and some you should never mention, just because, even if they are absolutely true. Your Four Unique Advantages The really healthy independent firms like yours compete on a combination of these four things. You do many things that overlap with what your client is capable of, if they have an in-house department, but they do not have any of these four things, usually: People working for them that would never be caught dead working on the client side. These are your secret weapon. The misfits and rogues who are unquestionably brilliant (and difficult to manage sometimes, too). The only way your client has access to them is via a firm like yours or in a contractor/freelance relationship. External objectivity. They aren’t so close to the situation that they can’t see things. And when you see things, you have the courage to call them out, kindly. You do have that courage, right? Nimbleness without tons of layers and procedures. Yes, you do need process at your firm, but never let it start looking like your client’s process. Start a project the very same day, put the whole team into a “quick react” mode when something happens, etc. If you charge enough, this shouldn’t be burdensome. Pattern matching from seeing many situations like theirs, assuming here that your positioning takes advantage of this and that you aren’t a generalist firm. The client will have multiple people who have been at one or two other places, but your collective history has seen 40 or 75 of these. Other than your specialization, which should lead conversations, always keep these four in mind, too. If you’re talking about other stuff, it should be secondary to these four.
The Pipeline Paradox: Why Agencies Struggle — and How AI Could Save Them
For agency leaders, there’s a persistent, maddening reality we don’t talk about enough: new business is hard. Really hard. Despite all our creativity, strategic brains, smart teams, and deep client experience, the pipeline still feels more like a trickle than a torrent. And yet — here’s the kicker — most agency clients are looking for more help, not less. Our latest national research reveals a striking disconnect: while many agency leaders fear clients will cut us out or slash budgets because of AI, clients are actually looking for our guidance. They don’t want to replace us — they want us to help them navigate AI safely and strategically. Agencies See Uncertainty Ahead, a 2025 study released this summer at the Build a Better Agency Conference in Denver, was conducted by Agency Core, a new non-profit research organization founded by myself and Brian Gerstner of White Label IQ, providing free research with and for agency leaders. It offers a deep dive into the attitudes and challenges of marketing agencies, and reveals the tremendous challenge for most agencies of maintaining a robust pipeline of right-fit clients. Leading Through the AI Revolution: The New Competitive Edge for Agencies is the latest in the 12-year Agency Edge research series we conduct with Drew McLellan at Agency Management Institute, and explores the opinions of agency clients around their agencies’ use of AI Fielded just months apart, these two studies reveal a paradox most agencies haven’t yet recognized. While many are cautiously adopting AI, worried about how clients will react, they’re also struggling to stand out and win new business. Meanwhile, those same clients are overwhelmed by AI and actively looking for strategic agency partners they can trust — not just to “use AI,” but to help them leverage it wisely, protect their brand, and gain a competitive edge. Let’s unpack what’s going on — and see how savvy agencies can flip their fortunes from frustrating to flourishing. Agencies in the Trenches: The Core Struggle The Agency Core 2025 study gives us a data-backed look into the internal landscape of small to mid-sized agencies. Spoiler: the new business challenge is real — and it’s not just a temporary dry spell. The research includes an attitudinal segmentation that reveals five different “mindsets” of agency leaders. Two say their agencies are doing far better than those of their colleagues: Thought Leaders are agencies with a clearly defined niche, strong positioning, and a commitment to thought leadership. They’re not just surviving — they’re thriving. They’re not worried about the pipeline because they’ve built a brand that attracts the right kind of attention from the right kind of prospects, and those prospects come to them based on their expert reputation. These agencies struggle less with challenges, including new business, than any others in the survey. Loyalty Builders have robust, long-term relationships with their clients. They prioritize maintaining an expert reputation while deeply understanding what makes clients leave and ensuring their client communication and reporting underscores their value. The other three segments revealed have critical issues that make new business efforts (and agency survival) much more difficult. Staffing Strugglers wrestle with talent shortages that make it difficult to even pursue new business opportunities. They can’t afford the employees they really need, and are losing current members to agencies that pay more. They’re in a tailspin of less-experienced, overworked employees and price-focused clients. Change Seekers feel pressure to evolve in the face of a changing marketplace and new technologies, but are handicapped by their focus on tactical work over strategy, which they believe clients won’t pay for. 89% of these respondents strongly agree that finding new clients is harder than ever. Cobblers’ Kids know the importance of agency marketing, but never seem to get around to doing it. Their clients love them and stay loyal, but few prospects are aware of their strong track record so they’re limited to word of mouth from their existing client base. Without more exposure to ideal prospects, their pool of new sales is severely limited. While the other respondents don’t match the Change Seekers’ extreme struggles with new business, about one-third strongly agree that finding new clients is harder than ever, and 61% cite maintaining a robust prospect pipeline as a severe challenge. This makes pipeline the #1 challenge for agency leaders by a significant margin. For many agency leaders I know, this issue has led to a disheartening loss of optimism about their agencies’ prospects in the coming years. Again, the research confirms what many of us are feeling. In our 2022 Agency Core survey, 73% of agency leaders felt strongly optimistic about opportunities for their agency. In 2025, only 47% do — a shocking drop. The Disconnect Between Struggle and Opportunity This is where the Agency Edge 2025 study flips the script. It gives us the client perspective — and reveals a giant opportunity for agencies willing to claim it. Despite the fears of many agency leaders, most clients aren’t looking to cut agencies out. They’re not trying to replace us with AI or squeeze our margins. In fact, they want better ideas, better strategies, and more guidance from agencies they trust who are experts in AI. Across the board, clients say they value agencies that lead — that offer clarity, expertise, and partnership. Not just deliverables. Not just billable hours. Leadership. And when it comes to AI — the big, scary disruptor everyone’s whispering about — most clients don’t want to go it alone. They’re not looking to become prompt engineers. They’re worried about the potential for the use of AI to create issues for their brand or fall behind competitors using it well. They’re looking for partners who can help them understand what’s possible, what’s risky, and how to use AI to make smart marketing decisions. AI: The Trust Accelerator Agencies Didn’t See Coming Let’s talk about the three client mindsets that emerged in the AI-focused Agency Edge study: AI Embracers: These clients
It’s Time to Drive Organic Agency Growth
The current economic outlook can seem frightening. P&G Chief Financial Officer Andre Schulten recently noted, “Consumers on both ends of the spectrum—low income and higher income—are reacting to the current volatility they are experiencing. We see consumption trends consistently decelerating.” P&G Chief Executive Jon Moeller added, “This new behavior is driven by worries about the future, whether over immigration policies, inflation, or how tariffs will filter down to consumers.” With consumers on edge and political uncertainty, agencies are facing a number of headwinds, including less pitch volume. Agencies everywhere are finding business development to be a greater and greater challenge. Agencies everywhere are finding business development to be a greater and greater challenge. Unfortunately, the business development strategies of many of these agencies are not up to the current challenge. Unattainable growth rates are often needed to achieve agency growth objectives The investment required and the low odds of winning pitches is debilitating Too much reliance is placed on a small group of senior “sellers” Difficulty “standing out” in pitches leads to expensive, wasteful theatrics Cold calling experiences are generally unsuccessful and demotivating If you experience some of these challenges, your team is not alone! Most agencies face these challenges – hence, an opportunity exists to reinvent the industry’s business development strategies. Many agencies approach business development with a focus on these three areas: Reviews: By far the biggest area of focus. Reviews get most of the business development resources – in people, focus and money. This is a tough focus, however, in a period of reduced review activity. Prospecting: Agencies do some prospecting, but this invariably is mostly relationship oriented. Few major accounts are landed today because an enterprising agency executive cold called an account they wanted and managed to work their way through to win the account. What happens more often is that agency executives maintain relationships and follow client executives from one company to another, hoping to land some business when the client executive has the chance to dole it out. This is a fine strategy, but not a predictable one. Current clients: Current satisfied clients are often an excellent source of organic growth – but rarely is there a devoted strategy to building business with the current client roster. Worse yet, there are very few well-conceived and effective processes in most agencies aimed at even maintaining the current clientele. For example, I don’t know of very many agencies that work with their major clients to establish disciplined, third-party-driven annual 360-degree review processes—yet our work shows that an annual third-party-managed 360-degree process can virtually eliminate performance-related major account losses. There is a better way – and if you start today, you will have a more promising future. Agencies everywhere need to turn their business development strategies upside down. Instead of the classic priority order of: Reviews Prospecting & cold calling Hoping for organic growth and praying you don’t lose accounts Instead, turn it around – and re-invent your approach to each strategy: Avoid account losses & drive organic current client growth Learn to sell – and then go get the accounts that you really want Use your newly gained sales skills to improve your odds in reviews A few words about each of these strategies: Avoid account losses & drive organic current client growth: This is where it all starts. Your senior team probably can’t do this today because their lives are overwhelmed with the black hole of major pitches – most of which end in failure. And because these senior agency execs are so distracted, they can’t love the agency’s current clients the way the clients want to be loved. The result is lost business – putting that much more urgency on the new business pitches. A vicious cycle ensues – a race to less profitability and a lousy quality of life. This is no way to run an agency. Your senior team must spend much more time ensuring existing clients are satisfied. Just one of the many ways they can do that is by championing the third-party 360 process. It is an early warning system to identify possible problems. And, in working through the process, the two parties are more committed to each other, understand each other better, and organic growth opportunities almost magically appear. This, along with training and quality performance, can be one of the best investments you can make in achieving your annual growth plans. In addition to a 360, another key to consistently growing your existing clients is to create an endless stream of discussions about their business – which can often lead to opportunities for your agency to help even more. Job #1, of course, is to simply do great work. We won’t discuss that in this article because it is so painfully obvious. If you aren’t delivering on your existing SOW with distinction, you don’t deserve additional work.Assuming you are delivering great work, here are four ideas that can add value and lead to additional opportunities for your agency: 1. Updated Strategy: A refreshed look at your client’s customer-facing strategies can be a powerful way to create important conversations about the client’s business and how your agency can help. Where possible, and certainly for important clients, we recommend that agencies make such a review a routine part of their relationship management efforts. This typically involves taking a fresh look at the client’s brand, competitors, and target audience. Look to derive important new insights where possible and recommend strategic evolutions as appropriate. 2. Provide a Competitive Review: Your clients need to understand their competitors’ strategies and tactics in order to stay current with their own marketing activities. Providing an updated competitive review to clients is a fine way to highlight your commitment to their business and to showcase your focus on their success. Has the positioning of key competitors changed? What is the focus of their current campaign work? What search terms are they buying? Has their media mix changed? What are they doing to navigate the current economic
Agency Owners: Why You Must Push Beyond SWOT for 2026 Strategic Planning
As we barrel toward 2026, the playbook for agency strategic planning is undergoing a foundational rewrite. For decades, SWOT analysis—cataloging strengths, weaknesses, opportunities, and threats—has been the opening scene for agency planning sessions. But the reality is this: the speed and depth of change in our industry mean that surface-level exercises like SWOT are no longer enough to position your agency for sustained success. The Limits of SWOT and Old-School Planning SWOT’s biggest weakness is its predictability. It feels safe, familiar, manageable. So safe, in fact, that it rarely provokes the uncomfortable conversations and creative fire that real progress depends on. The world outside your agency walls isn’t running by last year’s playbook. AI is automating core processes, client expectations are changing by the quarter, and new competitors, untethered by geography or legacy thinking, are cropping up everywhere. SWOT tells you what you already suspect. But with 2026 looming, you need to challenge every assumption and break every mold—because your clients, competitors, and team are already doing exactly that. Why Scenario Stress-Testing Matters More Than Ever Agencies must develop muscle memory for disruption. Instead of simply naming threats, imagine them landing in your lap tomorrow. What would you do if your top client’s budget was cut in half, or if a competitor offered their services worldwide for half your price? Exercises like “what if” scenario mapping force agency leaders and teams to actively plan adaptively: What do we stop, start, or change to thrive in the new reality? What early warning signs signal trouble ahead? Who on our team is best equipped for these pivots, and what mindsets will unlock opportunity in the eye of the storm? Radical Empathy and “Walking in Client Shoes” One critical planning blind spot: Many agencies don’t truly know what “jobs” their clients hire them to do—or how success is defined in real life, both professionally and emotionally. Deep-dive empathy-mapping flips the lens to answer: What does our agency solve best? What keeps our clients up at night? What would they miss most if we vanished? This isn’t about guessing, it’s about asking, listening, and surfacing unmet needs that become the seeds for next year’s service innovation. Agencies who embed empathy exercises into strategic planning find themselves offering not just more, but meaningfully better value to their evolving client roster. Reverse Mentoring, Competitor Roleplay, and Cultural Check-Ups The most powerful ideas often come from the edges, not the center. Reverse mentoring—having your youngest or newest team members lead planning sessions while leadership only asks questions—helps pop your agency’s echo chamber and see blind spots. Competitor roleplay is equally important: Imagine your fiercest rival’s pitch to your biggest client. What would they say? How would they exploit your weaknesses or copy your strengths? This is a critical exercise in agency vulnerability and reinvention.Culture must also be on the table. Agencies that scrutinize real stories about living (or failing) their values—who boldly challenge the “talk vs. walk” gap—build strategic plans that actually stick, not just sit on a shelf. The Power of Pre-Mortems and Stakeholder Pitches Ask your team: “If we failed in 2026, it was because…” and force a candid, practical risk assessment. This pre-mortem surfaces hidden vulnerabilities and sharpens priorities. Finally, every plan needs tough love from skeptics. Stage a Dragons Den panel of critical clients and staff and put your agency’s 2026 plan to the test. Their toughest questions will expose weaknesses and spark immediate improvements. Leading the Agency of the Future Preparing for 2026 isn’t about predicting the future. It’s about building a flexible, radically honest, and creative agency that’s ready for anything. The days of cookie-cutter strategic planning are gone. The agencies that thrive will be those that break tradition—challenging themselves far beyond SWOT, experimenting with new exercises, and holding honest conversations about what success truly means for clients and team alike.Now is the moment to get uncomfortable, get imaginative, and start future-proofing your agency. The world isn’t slowing down. It’s our job to stay ahead. Ready to put these ideas into action? Download our free Strategic Planning Worksheets (PDF) — packed with exercises, roleplays, and scenario maps to help your agency reimagine its 2026 strategy.
Your Agency’s Biggest Growth Problem? You’re Not Actually Different
Most agencies think they’re different. They’re proud of their work, committed to their clients, and convinced their team brings something special to the table. And honestly? That’s probably true. But from the outside, to a prospective client evaluating five different firms in a single afternoon—almost none of that stands out. Remove the logos, blur the names, and most agency websites start to look the same. Strategic. Creative. Collaborative. Full-service. Results-driven. This isn’t a marketing problem. It isn’t even a sales problem. It’s a positioning problem. And it’s one of the biggest reasons why some agencies struggle for leads while others grow on autopilot. The Illusion of Differentiation: Why Most Agencies Sound the Same Let’s be fair. Most agencies truly believe they’re differentiated—and from the inside, they are. They care deeply about client success. They’ve built thoughtful processes. They attract great talent. They go above and beyond. But those things don’t make it into the messaging in a way that resonates. Instead, they get flattened into the same generic copy everyone else is using. That’s the illusion of differentiation: you know you’re different, but your prospects can’t tell. This isn’t just a branding issue. It’s a growth-limiting blind spot. What are the most common positioning crutches? These are the three I see most often: Service-Based Differentiation“We build brands. We run paid media. We do strategy.” These statements describe what you do, not why someone should choose you. Experience-Based Differentiation“We’ve been doing this for 15 years.” That’s a credential, not a differentiator. Clients care more about outcomes than tenure. Values-Based Differentiation“We really care about our clients.” Great. So does every other agency that wants to stay in business. Agencies use these points because they feel meaningful—and internally, they are. But from a client’s perspective, they’re table stakes. The result? Prospects default to price. Or they hesitate. Or they ghost you. Not because they don’t need help—but because no one stood out clearly enough to feel like the obvious choice. So, What Actually Makes an Agency Stand Out? The agencies that grow predictably—the ones with better-fit clients, stronger margins, and sometimes even waitlists—aren’t those with better services. They’re the ones with better clarity. They’ve nailed three things: 1. Who You Help Generalist agencies believe casting a wide net creates more opportunity. But the agencies that win consistently narrow their focus to a specific type of client. They speak to that client’s world with fluency and credibility. Instead of saying “We do branding”, try “We help early-stage B2B SaaS founders launch a brand that closes their first $1M in ARR.” The specificity isn’t limiting. It’s magnetic. 2. What Problem You Solve Clients don’t hire agencies because they need a website or an ad campaign. They hire you because something isn’t working (e.g. their pipeline is weak, their conversions are low, their messaging is off). When your messaging focuses on deliverables, you’re speaking your language. When it focuses on pain and outcomes, you’re speaking theirs. Instead of “We do SEO.”, try: “We help technical SaaS companies grow organic signups by 3x in 12 months.” 3. Why You’re the Only Choice If a prospective client sees three proposals with similar scopes, pricing, and timelines, what makes you the obvious choice? Agencies that stand out don’t just describe their process—they name it, explain it, and show how it’s different. Whether it’s a unique discovery sprint, a proven methodology, or a deep specialization in one industry, that extra layer gives buyers confidence. It signals maturity. It reduces perceived risk. When these three elements work together, you don’t just look credible—you look inevitable. The Substitution Test: Is Your Positioning Actually Unique? Now, let’s make this practical. Here’s a quick gut check you can try with yourself. Take your current positioning statement and read it out loud. Now ask yourself: “If I swapped out my agency’s name with a competitor’s, would this still be true?” If the answer is yes, it’s not positioning—it’s a generic description. Common Agency Line What It Sounds Like When It’s Differentiated “We help companies grow with digital marketing.” “We help HR tech companies reduce churn with lifecycle-based content campaigns.” “We care about results.” “Our 4-part onboarding framework accelerates pipeline by 60 days.” “We do branding and design.” “We help climate startups become category leaders with investor-ready brand systems.” Real positioning should make your ideal client say: “This is exactly who we need.” What Will Change When You Get It Right? When you stop trying to appeal to everyone, you’ll become irresistible to the right ones. Your lead quality will improve. You won’t get stuck pursuing random RFPs—you’re getting inquiries from people who already feel aligned. Your sales cycles will get shorter. Your messaging will do the heavy lifting upfront, so prospects come in pre-sold. Your pricing power will increase. Specialists charge (and are worth) more. It’s not about manipulation—it’s about perceived value. One agency I worked with repositioned from “full-service digital marketing” to a firm that helps law firms land high-value clients using AI-enabled ad targeting. Same team. Same skill set. Different positioning. The result? Higher quality leads, shorter sales cycles, and more confidence in their proposals—because they weren’t just one agency among many anymore. The Positioning Reset: A 10-Minute Exercise If you’re nodding along with this but aren’t sure where to start, here’s a quick exercise you can do right now: Write your current positioning. Grab the sentence from your homepage, LinkedIn bio, or sales deck. Apply the Substitution Test. Could a competitor say this? Would it still be true? Rewrite it using this structure: We help [your best-fit type of client] Solve [the specific problem or you accomplished with them] Using [your unique process] Start by updating one asset. Choose one place—your personal Linkedin tagline, your email signature, your site’s hero copy—and test making the change there. Positioning isn’t a one-time decision. It’s a strategic asset that should evolve with your agency. But clarity now is better than perfection later. The Bottom Line? Don’t Be Better. Be Clearer. You don’t need to
Turning Creds Meetings into Second Meetings
I’ve reviewed and read countless credentials decks over the past 24 years as an agency search consultant at AAR Partners and my firm point of view is that these presentations should be referred to as capabilities decks, not credentials decks. Why is this critical? Credentials focus on your ability, resources and achievements, while capabilities emphasize the expertise you can bring to prospective clients. That expertise should leap out of the deck quickly. Therefore, it’s essential to streamline your content for maximum impact. If your deck exceeds 12 to 15 slides, it’s time to cut back. Aim for clarity and brevity. Begin your presentation not with logistical details about your agency but “why you” and by framing the discussion around the client’s specific challenges and complexities. This approach sets the stage for a compelling narrative that resonates with the client’s needs. If your case studies are text-heavy, consider trimming them down. Focus on storytelling that highlights the challenges faced, insights gained, lessons learned, and solutions delivered. Illustrate the thinking behind the solutions and of course, the outcome is just as critical as the output. This method allows you to engage your audience more effectively than a simple list of bullet points ever could. One of the most vital aspects of your presentation is the way you conclude. Instead of closing with a polite “thank you,” take advantage of the opportunity to share insights you’ve gathered about the client’s brand from your preliminary research bringing it full circle to your strategic process. These insights can range from positive to critical, but they serve a vital purpose: sparking a conversation about the marketing challenges the brand is experiencing. This shift transforms your meeting from a one-sided presentation into an active conversation, significantly increasing the chances of a second meeting. In your approach, prioritize the client’s challenges over your agency’s background. Personalize your discussion by setting up what “complex” means specifically for them. Ground insights into reality by showcasing relevant examples from your research process, demonstrating not just data but actionable intelligence. Keep your deck visually engaging. Use minimal text and more visuals to enhance engagement. Prepare two versions of your deck: one for interactive live presentations that encourage conversation, and another as a scripted leave-behind that offers detailed information for self-guided review. As you lead with case stories, once again, it is vital to aim to illustrate the measurable impact of your solutions. This storytelling approach creates a connection with the prospective client and illustrates your understanding of their brand needs. Avoid using cluttered, verbose, overstuffed decks with excessive text or failing to demonstrate a clear understanding of the client’s unique category or regulatory environment. It’s crucial to address these issues head-on to build trust and confidence. Lastly, remember that the goal is to engage and continue the discussion—not just to thank them. It’s worth repeating that it’s important to replace the thank-you slide with a teaser that invites further discussion on consumer insights. This shift not only makes your conclusion more impactful but also sets the stage for ongoing dialogue. Key Recommendations for Your Capabilities Deck Flip the Pitch Narrative: Start with the client’s challenges, not your agency’s background. Personalize what “complex” means for each client. Emphasize Insights: Showcase insights from your research process, not just data. Bring them to life with relevant examples. Shorter, Sharper Decks: Limit your deck to around 12 slides and use minimal text. Create two versions: one for live presentation and another as a scripted leave-behind. Lead with Case Stories: Highlight challenges, insights, solutions, and measurable impacts through storytelling. Engage, Don’t Thank: Replace your thank you slide with a teaser that invites discussion about consumer insights. Make Logos Meaningful: Organize logo slides by category or complexity solved to demonstrate your agency’s unique strengths. Balance Detail: Avoid overwhelming clients with too much information. Show the value of collaboration and creativity. By transforming your approach from a credentials-based presentation to one centered on capabilities and actionable insights, you can create more meaningful interactions with prospective clients. Engage them thoughtfully, provoke their curiosity, highlight business benefits, and pave the way for possible future collaborations. Implement these strategies, and you’ll see your meetings evolve from simple presentations into valuable discussions that lead to potential and successful future partnerships.
5 Legal Mistakes Your Agency is Making in New Business – and How to Fix Them
Your agency invests massive amounts of time, energy and money pursuing its new business goals. And it’s exciting when the efforts turn into a new opportunity, project or long-tem lucrative contract. So let’s not spoil that good energy by missing a legal step or making a legal mistake that will jeopardize the agency’s efforts, create unsustainable risk or cost lost profit, OK? Over the hundreds of agency new business scenarios we’ve helped counsel our clients through, these are the mistakes we see, on repeat, in agency new business. Along with some suggested fixes you can implement before your next big new business opportunity. Mistake #1: Failing to Protect the Agency’s IP in Pitches and Proposals It takes a lot of creativity and ideation to attract new business. If your agency regularly pitches new business or responds to proposal requests from prospects, you are pouring your best creative concepts, strategies, and proprietary knowledge into your attempts to attract prospective clients. Do you want to give all of that away? If you’ve decided that it’s a worthwhile investment in the potential opportunity to do so, I support you – it’s an intentional business strategy. If you haven’t thought hard about it, or it isn’t your intention read on. How to Fix It: Make it your default to implement a mutual Non-Disclosure Agreement (NDA) with the prospect before sharing any creative or strategic materials. A mutual NDA demonstrates that both parties are committed to confidentiality. It also secures your claims to the work and ideas you share with the prospect. Side Note: If you’ve agreed that the prospect will own the ideas or concepts you share in a pitch or proposal, make sure the terms are clear, specific, and any compensation stated. Worried about putting this forward to a potential client? Don’t be. Presented respectfully and in the spirit of mutuality, brands are very accustomed to the requests (in fact, much the time they’re making the request for the NDA first, although their version usually isn’t mutual). If your agency is uncomfortable requiring the mutual NDA, there are two additional measures it can take to “stake its claim” to the IP it shares in a new business conversation: Add an IP ownership ownership clause directly into your proposal or pitch documentation. This clause should that any IP shared with the prospect remains the sole property of your agency unless a formal agreement is signed and the agency is compensated. Use a copyright notice (e.g., © 2025 Your Agency Name) on any deliverables included in your pitch. Remember that copyright protects only physical or electronic assets – it does not cover ideas shared verbally with the prospect. Mistake #2: Accepting Client Contracts Without Proper Legal Review Agencies eager to close deals often sign client-drafted contracts without a full review or negotiation. This can lead to highly unfavorable terms, including relinquishing rights, delayed payments, and excessive liabilities. How to Fix It: Always conduct a thorough legal review of the client’s contract before signing. If possible, have an attorney who understands agency operations assess the terms. Pay special attention to: IP clauses that transfer ownership of deliverables before payment is made. Payment terms that delay billing or tie payment to client “approval” of the invoice. Exclusivity clauses that limit your ability to work with other clients in a vertical or region. Approval processes that are missing, undefined, or put all risk on the agency. Liability clauses that make the agency responsible for client delays, misinformation, or failure to provide assets. Where feasible, seek to lead with your agency’s Master Services Agreement (MSA) in place of the client’s contract. And always have your agency’s own MSA as a benchmark even if you frequently sign the client’s document. A major assumption we see many agencies make is that they have no leverage to negotiate terms with a prospective client. Or that a big brand will never sign an agency-provided contract. It’s not true. You may have less leverage in some situations than in others, but you should always be prepared with an adequate legal review to use the leverage that you do have. Mistake #3: Creating New Legal Documents for Every Client Engagement A major reason many agencies avoid or short-circuit a full legal review of client contracts and related documents is the perceived extra time and investment of legal fees it takes. You’re in a hurry to get the work started and get the retainer flowing. One major reason for this? Many agencies lack a standardized approach to legal documents, treating each client engagement as a one-off transaction. This creates inefficiencies and opens the door to inconsistent language, errors, and legal exposure. It also makes the process more expensive, and slower. How to Fix It: Standardize your legal documentation process. Every agency should maintain a legal document library with vetted, customizable templates, including: A Mutual NDA that can be used across different engagements. A Master Services Agreement (MSA) for long-term, complex, or high-value clients. A Short-form Terms & Conditions document for smaller, one-time projects. Templates for Proposals, SOWs (Statements of Work), Change Orders, and Client Approval Forms. In addition to creating these core documents, assign central ownership of the legal process within your agency. Designate one person or team to manage the use and version control of legal forms. No one should send a contract or sign one without going through the designated point of contact or review process. And, again: if you must use the client’s contract, compare and benchmark it against your agency’s standard legal templates. This helps you identify gaps in liability protection, IP rights, and billing terms before you’re legally bound to them. Mistake #4: Giving Away Too Much IP—Or Giving It Away Too Soon Agencies frequently transfer ownership of creative assets too early in the relationship—sometimes even before payment is made. Worse, many fail to assert rights over unused or rejected ideas, leading to lost opportunities for reuse or repurposing. How to Fix It: Use a clear rule in
Why Good Agencies Get Ghosted (And Great Ones Don’t)
The uncomfortable truth about why prospects disappear (it’s not the economy) “We had three great calls, they loved our ideas, asked for references, and then… nothing. I sent a bunch of follow-ups over the next few months, thinking they were just busy – and we never heard back. Six months later, we found out they hired another agency when the work went live.” As an agency owner, you know how confusing it can be to figure out what clients actually want. More often than not, you are ghosted or given vague feedback…left feeling totally confused on what your prospects are thinking. Here’s the uncomfortable truth: You’re not being ghosted because prospects are busy or the global economy is a mess. You’re being ghosted for one of three reasons: You haven’t properly vet them (they were never a fit and you wasted your time) You did more than your 50% (and you missed the signs that they weren’t that into you) You didn’t give them confidence (you overfocused on your “services” instead of “outcomes” you create for them) Ghosting is a problem in our industry—that is not up for debate. But we are a big part of the problem. We’ve trained our prospects (brand and business leaders) to think our time has little value. We’ve shown them we are so hungry for opportunities that we’re willing to do almost anything they want, on the most unrealistic timelines, for the chance to just pitch. We’ve taught them to be lazy by creating a brief for them. We’ve taught them to waste our time by being willing to do hours of work (hourly breakdowns, strategy, creative ideas) without any commitment. We’ve taught them to disrespect us because we’ve disrespected ourselves. The good news is, this is an issue we can change individually AND as an industry. And the first step is acknowledging the truth: you are the problem. How your sales process actually trains clients to ghost you Let’s take a step back and look at where this all starts – your sales process. Most agency websites have a generic email or a very basic form. I typically see 3 questions on an agency website form: Name Email Tell us about your project A blank box where they can give you vague information is not good enough. Typically, these forms get filled in with less than a sentence, such as “branding project”. And how are you supposed to figure out if that’s someone worth your time? You need to gatekeep your time like the premium service provider you are (or want to be). At a minimum, we need to know: Is their business or industry one you have in-depth experience in (ie, not one random case study – you have earned knowledge in this space)? Does their goal align with your expertise? Are their expectations of timing and budget aligned with your business? Are they prepared and ready to hire an agency partner? (ie, they have clear goals, a brief, a budget, a timeline, stakeholder sign off, an internal project team, etc.) A better form would include these (mandatory) questions: Company / Brand name What is the main goal or desired outcome that would make your project a success? What is your ideal timeline for starting this work and completing it? What is driving this timing? What level of investment are you prepared to make? (I like to provide tiered ranges here – starting with your minimum viable project fee) How did you hear about us / who can we thank? And to clarify – you should know all this BEFORE getting on the call with a prospect. If they don’t have this information, then it’s simply a networking call. And we don’t write proposals for networking calls. Okay, so we’re aligned that we need to improve our website forms, yes? This is a step one. The next step is key. If they passed the form test and you took an initial call with them (which, by the way, should be 30 minutes max because you’re evaluating them as much as they’re evaluating you), do not (I repeat, do not) offer to write a proposal. At the end of your initial call, ask this question instead: “Great chatting and getting to know you and your brand. What feels like the best next step to you from here?” I promise this simple question will save you hours wasted in writing proposals. Because here’s the thing…when someone offers to write a proposal, you’re not going to say no. It’s awkward to say, “you know what, we don’t think this is a fit, so no thank you”. And this is WHY the majority of ghosting situations happen. A basic rule of thumb here – if they half-ass filled out the form, were 10 minutes late to the call, are non-responsive to your emails, return that energy. Don’t proceed to spend hours writing up scenarios for them. You’re actually showing them they can do the bare minimum and you’ll still do the maximum…and believe me, if they hire you, that translates over into the client partnership. They are THOSE clients you love to hate. The 3-Step Ghost-Proof Discovery Framework Here’s the framework that eliminates ghosting before it starts: Step 1: An Informative Website Form Prospects who can’t answer this aren’t ready to partner. And it’s okay to scare off a ghost. Step 2: A Pre-Call Email This sets the tone that you are leading the process – and allows you to get a feel for their responsiveness. Generally, I would let them know who is joining the call on your side and what they can expect. Here’s an example. “Looking forward to our chat this week. To give you a sense of next steps and what to expect, this is what our typical process looks like: We’ll have a Meet & Greet this week to talk about your project and together assess if there’s a good fit I’ll have you fill out