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

How to Build an Agency That Doesn't Depend on You with Ted Harrison | Ep #897

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training [https://www.agencymastery360.com/training] Are you struggling to scale your agency or are you unknowingly the thing holding it back? At what point does your growth stop being a systems problem and start becoming a leadership one? Today's guest shares what it to break through those ceilings. After scaling quickly off the back of a strong network, he made the critical decision to systemize everything before growth turned him into the bottleneck. By leveraging documentation in a smart, intentional way, he built a foundation that allowed the agency to grow without everything running through him. In this conversation, he unpacks the realities of working with enterprise clients, the often uncomfortable shift from operator to CEO, and why—despite all the noise, AI is actually increasing the need for human judgment, taste, and leadership, not replacing it. Ted Harrison is the CEO and founder of Neuemotion [https://www.neuemotion.com/], a fast-growing B2B creative agency working with enterprise brands. Before launching his agency, he spent seven years at Twitter (later X), where he led advertiser production, helping global brands create better-performing content at scale. After navigating the chaos of a major corporate transition, Ted left to build an agency where he could control decisions, scale creative impact, and architect a business on his own terms. In this episode, we'll discuss: * Avoiding the trap of confusing early traction with a scalable model * Leveraging documentation early * Enterprise clients as a double-edged sword Subscribe App [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013]le | [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013]Spoti [https://open.spotify.com/show/0FiKuRTpkJ7OraCJBUIlr9]fy [https://open.spotify.com/show/0FiKuRTpkJ7OraCJBUIlr9] | iH [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013]eart [https://www.iheart.com/podcast/263-smart-agency-master-28334260/]Radio [https://open.spotify.com/show/0FiKuRTpkJ7OraCJBUIlr9] Sponsors and Resourc [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013]es 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 [https://e2msolutions.com/smartagency] and get 10% off for the first three months of service. Toggl: Most agencies are losing 15–30% of their profit every year: lack of time tracking, messy manual timesheets, scope creep, untracked revisions, and all those "quick" client requests that never get billed. Toggl has created a fast, interactive way to uncover exactly where your margins are leaking. Start your investigation now at toggl.com/smartagency [http://toggl.com/smartagency] and use the code SMARTAGENCY10 at checkout for a 10% off annual plans. The Hidden Trap of Scaling Expertise Leaving Twitter a year after the acquisition ultimately created opportunities for Ted's newly founded agency. Many had left long before him, had already found new jobs, and proved to be valuable contacts for potential clients. Ted tapped into this powerful network, and the access to enterprise clients helped him build momentum and fast growth. However, that same advantage creates a structural risk: those clients don't initially trust the agency, they trust you. This is where most founders get stuck. They confuse early traction with a scalable model. In reality, they've just extended their personal brand into a slightly larger container. The real challenge is transferring trust. If you don't systemize your thinking, your decision-making, and your taste, every new client reinforces dependency. The agency grows, but so does the founder's involvement. And eventually, growth slows, not because of demand, but because of capacity. Documentation as a Scaling Weapon (Not a Nice-to-Have) Luckily for Ted, by the time he started the agency, he already understood the importance of documenting processes [https://flatworm-caterpillar-3mha.squarespace.com/podcast/use-a-digital-brain-to-scale-smarter], which has helped him greatly as he initiates his transition out of operations. Instead of relying on shadowing, tribal knowledge, or ad hoc training, Ted documented his thinking through a book, internal frameworks, and structured onboarding. Every new team member consumes that context upfront. This does two things most agencies miss: First, it compresses onboarding time. Instead of months of "figuring it out," team members immediately understand how decisions get made. Second, it creates consistency without rigidity. The team isn't copying Ted, but they're operating from the same mental model. This is the difference between delegation and true scale. Without documentation, you're forced to stay involved because no one else "thinks like you." With it, you create a system where people can make aligned decisions independently, while still bringing their own perspective. The Operator → CEO Shift Is Uncomfortable (But Necessary) Ted is currently in the most dangerous phase for any founder: the transition from doing to leading. At ~20–30 employees, the cracks start to show. You can't be in every decision. You can't touch every client. And you can't be the quality control layer anymore. This is where many founders regress. They step back in when things break. They reinsert themselves into delivery. They become the "fixer" again. But that behavior reinforces the very bottleneck they're trying to escape. The real shift is identity, not activity. As an operator, your value comes from execution. As a CEO, your value comes from clarity [https://flatworm-caterpillar-3mha.squarespace.com/podcast/stop-being-your-agencys-product], structure, and direction. If you don't make that shift intentionally, the agency will stall right at the point where it should scale. AI Is Not Replacing Agencies, It's Exposing Them At his agency, Ted's team is using AI in two ways. At the client level, they're mostly building agents, using it to clean up audio and video, and using its output as a starting point. Internally, they have their own "TedGPT", which has proven to be a great tool to scale knowledge. When it comes to how his enterprise clients are using it, Ted has seen that rather than replacing agencies with AI, they're hiring agencies to fix what AI broke. Why is this? Because AI lacks taste, context, and lived experience. It can generate and optimize. But it can't decide what matters. That's where agencies still win, if they position correctly. The real risk for agencies is doing work that AI can replace. Low-level execution, undifferentiated production, and generic output are already commoditized. Enterprise Clients Are a Double-Edged Sword Something Ted wishes he'd known before working with enterprise clients is that it introduces a level of complexity most founders underestimate [https://flatworm-caterpillar-3mha.squarespace.com/podcast/most-profitable-clients-arent-biggest]. Long payment terms. Free pitch work. Endless stakeholder input. Constant shifting priorities. It's both harder and structurally different. Like most founders who have worked with enterprise clients, Ted eventually realized that the bigger the client, the more operational friction you inherit. That doesn't mean you shouldn't work with them, but it does meanyou need to build systems that protect your agency from them. Without strong positioning, pricing discipline, and process control, enterprise clients will consume your team, and your margins. 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 Bluepri [https://www.agencymastery360.com/blueprint]nt. 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.

Why Most Agency Acquisitions Fall Apart (And What Buyers Actually Want) with Azim Nagree | Ep #896

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training [https://www.agencymastery360.com/training] Why are more agencies selling right now? If this trend has made you think about selling, is it because the market is hot… or because you've outgrown your role? If you're seriously thinking about selling your business, you should know that it'll ultimately come down to whether it can survive without you, and whether you want it to. Today's featured guest breaks down what's really driving the surge in agency acquisitions right now. He goes beyond surface-level multiples and unpacks what buyers actually look for, why most founders sabotage deals during diligence, and how AI is quietly separating premium agencies from the rest. This conversation will challenge how you think about growth, ownership, and your role in the business. Azim Nagree leads M&A Origination at Herringbone Digital [https://www.herringbonedigital.com/], a private equity-backed platform acquiring and scaling digital marketing agencies. Originally trained as an M&A lawyer in Australia, Azim quickly realized he didn't enjoy the legal side of deals, but loved the strategy and deal-making behind them. Over the past 5–6 years, he's focused exclusively on agency acquisitions, working with founders navigating exits, partnerships, and scale. He brings an operator-meets-investor perspective, understanding both what founders want and what buyers actually value. In this episode, we'll discuss: * Why are PE firms interested in agencies? * 3 filters most agencies won't pass. * The silent deal killer Subscribe Apple [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013] | Spotify [https://open.spotify.com/show/0FiKuRTpkJ7OraCJBUIlr9] | iHeart Radio [https://www.iheart.com/podcast/263-smart-agency-master-28334260/] Sponsors and Resources This episode is brought to you by Wix Studio: If you're leveling up your team and your client experience, your site builder should keep up too. That's why successful agencies use Wix Studio — built to adapt the way your agency does: AI-powered site mapping, responsive design, flexible workflows, and scalable CMS tools so you spend less on plugins and more on growth. Ready to design faster and smarter? Go to wix.com/studio [https://www.wix.com/studio] to get started. Herringbone Digital: If you're thinking about exiting now, planning a few years ahead, or just want to understand your options, you should know about Herringbone Digital. They're not a typical financial buyer. They're operators who actually understand what it takes to build and scale an agency because they've done it themselves. Their approach is simple: invest in great founders, protect what's already working, and help agencies scale faster. Go to https://www.herringbonedigital.com/swenk [https://www.herringbonedigital.com/swenk] and start the conversation. [https://www.herringbonedigital.com/swenk] The Real Re [https://www.herringbonedigital.com/swenk]ason Agencies Are Getting Acquired Right Now There's a massive misconception in the market that agency acquisitions are happening because agencies suddenly became more attractive. That's not the full picture. What's actually happening is a capital problem, not an agency problem. Private equity is sitting on over $1 trillion dollars of unallocated capital. That money has to be deployed. And agencies, when structured correctly, check a lot of boxes: recurring revenue, strong margins, and fragmented markets ripe for consolidation. That's why you're seeing more deals. Not because every agency is valuable, but because capital is aggressively looking for places to go. However, you can't assume that just because deals are happening, your agency is ready to be bought. It's likely not. Buyers aren't just looking for revenue. They're looking for structure, predictability, and independence from the founder [https://flatworm-caterpillar-3mha.squarespace.com/podcast/foundation-for-eventually-selling]. If your business still relies on you for sales, delivery decisions, or client retention, it's not an asset. It's a job with revenue attached. And buyers know the difference immediately. 3 Filters Every Serious Buyer Uses Most founders think deals come down to valuation. In reality, every serious buyer is evaluating three things [https://flatworm-caterpillar-3mha.squarespace.com/podcast/private-equity-firms-buying-agencies] before they even care about price: 1. Strategic Fit Why does this deal exist? If there's no clear reason, new market, new capability, better economics, it's dead on arrival. Buying (or selling) just because it "feels like the right time" is how bad deals happen. 2. Cultural Fit This is the one founders underestimate the most. You're not just selling a business. You're entering a relationship that could last years. If there's friction early, it doesn't get better later. And forcing alignment for the sake of a deal almost always ends badly. 3. Financial Reality This is where the truth shows up. You can't "position" your way past bad numbers. Buyers will find churn issues, margin leaks, and unstable revenue during diligence. Trying to hide it just wastes months, and kills trust. The strongest sellers aren't perfect. They're transparent. The Silent Deal Killer: Founder Behavior During Diligence Here's something most people won't tell you: Deals don't usually fall apart because of numbers. They fall apart because of founder behavior during the process. Diligence takes 3–6 months. And during that time, many founders mentally check out. They assume the deal is done and take their foot off the gas. They start thinking in terms of "their problem soon, not mine." That's where things break, clients churn, and revenue dips. Key employees sense uncertainty and start looking elsewhere. And suddenly, the business the buyer evaluated is not the business that exists anymore. From the buyer's perspective, that's a red flag. The rule is simple: Run the business like you're never selling it, even when you are. Ironically, that's what makes it sellable in the first place. The Real Question: Should You Sell? Selling isn't just a financial decision. It's also a personal one. The best founders who sell have clarity on two things: 1. What they want to do next [https://flatworm-caterpillar-3mha.squarespace.com/podcast/want-to-sell-fire-yourself] 2. Whether they've truly outgrown their current role Regarding the first one, there's no wrong answer. Some buyers are looking to transition the founder out of the business in just 3-6 months. Some are looking for founders who want to stick around for a few years. The important thing is to be honest about your plans. Without that clarity, selling often creates more problems than it solves. Because removing yourself from the business doesn't automatically create purpose. AI Isn't Increasing Valuations. Bad Thinking Is Lowering Them A lot of PE firms are buying agencies based on their use of AI. Now, what these firms are looking for is AI as strategy, and using ChatGPT for content is not a strategy. That's a tool. Buyers don't care if you use AI tools. They care if AI shows up in your business fundamentals. This means that effective use of AI would show up in: * Higher margins * Lower cost of delivery * Increased retention * Better client outcomes * Faster execution If AI isn't impacting those metrics, it's irrelevant. The agencies commanding higher multiples right now aren't "AI agencies." They're system-driven agencies using AI to enhance leverage. They've embedded AI into workflows, decision-making, and delivery, not just content creation. A powerful example shared in the episode: One agency built a custom AI model for every client using all available data, sales conversations, onboarding insights, business goals. That model informs everything: * Campaign * strategy * Reporting * Communication style * Execution The result is that every client feels like the only client, without increasing workload. That's leverage. And that's what buyers pay for. Ultimately, most founders understand they need to wrap their heads around the use of AI as a strategic advantage. Whether they're really doing it or not is another issue. So ask yourself if, other than requiring your team to use AI, you're actually investing in it, whether through training, creating roles centered on AI experimentation, or providing resources to support that learning curve. If not, you won't actually affect the metrics that matter. The Bottom Line on Agency Acquisitions The agencies that sell well aren't lucky. They're structured. They've built: * Predictable revenue * Strong margins * Low founder dependency * Systems that scale Selling is just a byproduct of that. Want to Know If Your Agency Is Actually Sellable? If you're thinking about selling, or just want to build a more valuable, less dependent agency, you need to understand where your bottlenecks actually are at a structural level. If you want to map that out with real numbers, real operators, and a proven sequence, the next step is simple: Join a room where this is the standard, not the exception. Check out Herringbone Digital [https://www.herringbonedigital.com/swenk] to start a conversation. 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 Bluepri [https://www.agencymastery360.com/blueprint]nt. Designed for agency owners l [https://www.agencymastery360.com/blueprint]ike you, our Agency Blueprint helps you uncover growth opportunities [https://www.agencymastery360.com/blueprint], tackle obstacles, and craft a customized blueprint for your agency [https://www.agencymastery360.com/blueprint]'s success.

The Identity Crisis Killing Agencies (And How to Rebuild Before It's Too Late) With Jonathan Lewis | Ep #895

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training [https://www.agencymastery360.com/training] Are agencies becoming obsolete? We don't think so. However, the traditional agency model isn't just evolving, it's breaking. Today's featured guest believes the core of every business is dying and that agencies that want to adapt and win need to adopt the mindset of rebuilders. He shares why agencies have been in decline for over two decades and what it actually takes to rebuild a business that survives AI, commoditization, and shifting client expectations. Tactics alone won't help because, at its core, this shift is about identity, positioning, and stepping into a new role as someone who doesn't cling to the old model but actively creates the next one. Jonathan Lewis is the President of McKee Wallwork [https://www.mckeewallwork.com/], a brand strategy and implementation firm. Starting as an unpaid intern, Jonathan worked his way up to eventually acquiring the agency from its founders. Over the past decade, he's led the firm through a major repositioning, moving away from traditional agency work toward upstream strategic advisory. His perspective is shaped by firsthand experience navigating succession, industry decline, and the current AI-driven disruption. In this episode, we'll discuss: * The declining agency model * Why identity is the real problem * Moving upstream * The rebuilder mindset Subscribe Apple [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013] | Spotify [https://open.spotify.com/show/0FiKuRTpkJ7OraCJBUIlr9] | iHeart Radio [https://www.iheart.com/podcast/263-smart-agency-master-28334260/] 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 [http://e2msolutions.com/smartagency] and get 10% off for the first three months of service. Toggl: Most agencies are losing 15–30% of their profit every year: lack of time tracking, messy manual timesheets, scope creep, untracked revisions, and all those "quick" client requests that never get billed. Toggl has created a fast, interactive way to uncover exactly where your margins are leaking. Start your investigation now at toggl.com/smartagency [https://heist.toggl.com/?utm_campaign=37225237-podcast-q12&utm_source=partner&utm_medium=smart-agency&utm_term=heist&utm_content=podcast] and use the code SMARTAGENCY10 at checkout for a 10% off annual plans. The Agency Model Has Been in Decline for Years Most agency owners think the pressure they're feeling is recent, but it's not. Jonathan makes a strong case that the traditional agency model has been declining since the early 2000s, starting with the collapse of mass media dominance and accelerating through the rise of the internet, social media, and now AI. The old model was simple: control distribution, create decent creative, and scale results through reach. That model is gone. Today, agencies are fighting for perceived value in a world where clients question everything: speed, cost, necessity, and even whether they need an agency at all. This shows up in commoditized RFPs, price pressure, and constant comparison to cheaper or faster alternatives. The frustration many founders feel isn't personal failure; it's structural misalignment. They're trying to win using a model that no longer works the way it used to. The Real Problem Isn't AI, It's Identity A lot of agency owners are blaming AI for the disruption. That's not the real issue. The deeper problem is identity. Most agencies are built by craftspeople, designers, developers, media buyers who tie their value to the tools they use. When those tools become automated or commoditized, it creates an identity crisis. If your value is "I build websites" or "I run ads," you're in trouble. Because now those things can be done faster, cheaper, and in some cases better, without you. Your value is not the tool [https://flatworm-caterpillar-3mha.squarespace.com/podcast/is-ai-the-biggest-advantage-for-seo-agencies]. Your value is the thinking before and after the tool, the judgment, the strategy, the ability to define what should be built and why. Moving Upstream: From Execution to Worldview In 2018, Jonathan and his team made a critical shift. They stopped trying to compete on execution and moved upstream into strategy, specifically, helping clients define their worldview. This is where things get interesting. AI can generate outputs. It can execute tasks. But it still depends on inputs, the prompt, the context, the perspective. That's where agencies have leverage. Instead of being the ones producing deliverables, they became the ones shaping direction. Helping clients answer: * Who are we? * What do we stand for? * Who are we actually trying to reach? * What matters most? From there, everything downstream becomes easier, whether it's done by internal teams, AI, or external vendors. This shift moves the agency from vendor to strategic partner. And more importantly, it removes them from the commodity trap. AI Is a Multiplier, Not a Replacement Jonathan takes a grounded view of AI. AI increases productivity dramatically. But historically, when something becomes more accessible, demand increases. Lower cost per unit doesn't eliminate demand; it expands it. The opportunity isn't in resisting AI. It's in integrating it while strengthening the human layer around it [https://flatworm-caterpillar-3mha.squarespace.com/podcast/ai-fortune-10-instead-of-replacing-team]. You can use AI to analyze markets, generate insights, and accelerate content creation, not to replace thinking, but to enhance it. The real advantage comes from combining: * Pattern recognition (AI) * Judgment (human) * Perspective (worldview) Agencies that only use AI for execution will get commoditized. Agencies that use AI to amplify strategic thinking will gain leverage. The "Rebuilder" Mindset Jonathan wrote a book around the idea of becoming a "rebuilder" because that's how he sees people getting through these times of reckoning in the business. Every major shift, from the internet, social media, COVID, and AI, breaks existing models. Most people respond by resisting, waiting, or reacting. Rebuilders do something different [https://flatworm-caterpillar-3mha.squarespace.com/podcast/ai-reshaping-agencies-staying-average-kills]. They accept that the old model is broken and take responsibility for creating the next one. That means: * Rethinking how you create value * Redefining your role in the business * Rebuilding your offer, positioning, and delivery model * Leading your team through uncertainty instead of avoiding it It's ownership at a different level. And it's the difference between agencies that survive disruption and those that disappear with it. 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 Bluepri [https://www.agencymastery360.com/blueprint]nt. Designed for agency owners l [https://www.agencymastery360.com/blueprint]ike you, our Agency Blueprint helps you uncover growth opportunities [https://www.agencymastery360.com/blueprint], tackle obstacles, and craft a customized blueprint for your agency [https://www.agencymastery360.com/blueprint]'s success.

Why Hiring Without Systems Multiplies the Chaos with Chris Seminatore | Ep #894

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training [https://www.agencymastery360.com/training] What actually breaks an agency first, growth or the founder's inability to evolve with it? And at what point does hiring more people stop creating leverage… and start creating chaos? Today's featured guest dives into why he decided to close his first business, which he had grown to 22 employees, and start again solo. He needed to get away from the chaos of managing a large team, but what is the crucial mistake he can avoid if he ever wants to scale an agency team again? Beneath the tactics, it becomes clear that the role of a founder must grow if they want to build a business that doesn't collapse without them. Chris Seminatori is the founder of Get Geofencing [https://www.getgeofencing.com/], an advanced digital marketing technique that helps small and large-scale enterprises meet their sales target effectively and efficiently. Chris shared his journey from scaling a 20+ person operation in Beverly Hills to intentionally stepping away from team-heavy growth after experiencing the hidden cost: constant management chaos. He talks about the evolution of advertising, from geofencing to connected TV, and how emerging technologies like AI are reshaping both service delivery and agency efficiency. In this episode, we'll discuss: * The trap of hiring to grow * What was the crucial mistake? * Control vs. dependency * What the Navy got right Subscribe Apple [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013] | Spotify [https://open.spotify.com/show/0FiKuRTpkJ7OraCJBUIlr9] | iHeart Radio [https://www.iheart.com/podcast/263-smart-agency-master-28334260/] Sponsors and Resources This episode is brought to you by Wix Studio: If you're leveling up your team and your client experience, your site builder should keep up too. That's why successful agencies use Wix Studio — built to adapt the way your agency does: AI-powered site mapping, responsive design, flexible workflows, and scalable CMS tools so you spend less on plugins and more on growth. Ready to design faster and smarter? Go to wix.com/studio [https://www.wix.com/studio] to get started. Herringbone Digital: If you're thinking about exiting now, planning a few years ahead, or just want to understand your options, you should know about Herringbone Digital. They're not a typical financial buyer. They're operators who actually understand what it takes to build and scale an agency because they've done it themselves. Their approach is simple: invest in great founders, protect what's already working, and help agencies scale faster. Go to https://www.herringbonedigital.com/swenk [https://www.herringbonedigital.com/swenk] and start the conversation. The Trap: Hiring Only to Manage Chaos Chris's first business followed a familiar trajectory: start small, gain traction, hire quickly, and scale to over 20 employees. On paper, it looked like success, but it quickly became unsustainable. Each hire introduced new variables—different expectations, skill levels, and problems—until Chris found himself spending his days putting out fires instead of building the business. This is the inflection point many founders hit but don't anticipate. Growth creates complexity [https://flatworm-caterpillar-3mha.squarespace.com/podcast/insights-on-agency-hiring], and without structure, that complexity compounds. Instead of gaining leverage, Chris became the central node for every decision, issue, and escalation. The deeper issue wasn't the team itself. It was the absence of systems, clarity, and leadership infrastructure. Without those, hiring just amplifies chaos. Chris ultimately shut the business down, not because it lacked demand, but because it lacked structure. Why Most Founders Break When They Try to "Scale" Like many founders, Chris operated intuitively and ended up hiring before systemization. The "system" lived in his head, from how to deliver, solve problems, and serve clients. When he brought others in, they lacked the context and frameworks to operate independently. This created a loop: the team needed constant input, which pulled Chris deeper into operations, which prevented him from building the very systems that would free him. As a result, more hires led to more dependency, not less. Founders often misdiagnose the problem as "needing better people," when the real constraint is a lack of documented processes [https://flatworm-caterpillar-3mha.squarespace.com/podcast/chaos-to-clarity-thriving-agency] and clear direction. Without those, even great hires require heavy management. Scaling isn't about adding people. It's about reducing decision-making friction through structure. Without that, every new hire increases the founder's workload. The Alternative Model: Control vs. Dependency After shutting down his first agency, Chris rebuilt with a completely different model. This time it was lean, contractor-based, and highly controlled. This allowed him to maintain quality and ensure clients received the level of service he expected. The upside is clear: consistency, control, and alignment with his vision. There's no dilution of standards, no miscommunication layers, and no dependency on internal managers. For a founder who values craftsmanship and direct client impact, this model works. But the trade-off is equally clear. The business is entirely dependent on him. If Chris steps away, everything stops. Growth is capped by his capacity, and the business cannot function independently [https://flatworm-caterpillar-3mha.squarespace.com/podcast/stop-building-a-job]. This is the other side of the spectrum: instead of chaos from too many people, it's constraint from too much centralization. Both models reveal the same underlying truth: the founder's role has not evolved. The System Gap: What the Navy Got Right Looking back, Chris wishes he had implemented some of his Navy experience into his management. For instance, the military operates on clear objectives, defined processes, and structured decision-making. In that environment, the objective is explicit. Everyone understands the goal, the constraints, and their role in achieving it. Teams are encouraged to think and propose solutions, but within a defined framework. That balance creates both autonomy and alignment. Chris recognizes that he failed to bring this structure into his agency. Without clear objectives and documented processes, his team couldn't operate independently. Every deviation required his intervention. This highlights a critical shift: leadership is not about doing the work or even managing people, it's about designing systems that enable others to execute without constant oversight. The Future of Advertising: Precision, Data, and AI Chris also shares how his current agency is evolving alongside major shifts in advertising. Geofencing allows businesses to target users based on physical location, creating highly specific audience segments. Combined with connected TV (CTV), this enables precise ad delivery across devices, including household televisions. Traditional mass advertising is being replaced by targeted, data-driven distribution. Agencies that understand how to leverage this can deliver stronger results with lower spend, increasing their value to clients. Also layered on top of this is AI, which Chris used across the entire workflow, from creative development to campaign strategy. What once took hours or days can now be executed in minutes, often with better output. But while these tools increase efficiency, they don't solve the core structural problem. AI can enhance execution, but it doesn't replace the need for systems, positioning, or leadership evolution. The Real Constraint: Founder Dependency Across both versions of Chris's business, the 22-person team and the lean solo model, the same constraint appears: the business relies entirely on the founder. Whether that dependency comes from poor structure or intentional control, the outcome is the same: the business cannot grow or operate without the founder. This is the core challenge most agency owners face. It's not hiring, lead generation, or even service delivery. It's the inability to transition from operator to architect. Until that shift happens, every model, large team or solo, remains limited. 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 Bluepri [https://www.agencymastery360.com/blueprint]nt. Designed for agency owners l [https://www.agencymastery360.com/blueprint]ike you, our Agency Blueprint helps you uncover growth opportunities [https://www.agencymastery360.com/blueprint], tackle obstacles, and craft a customized blueprint for your agency [https://www.agencymastery360.com/blueprint]'s success.

Why Your Agency Can't Scale Until You Stop Being the Doer with Matt Kovacs | Ep #893

Have you ever wondered how to strike that balance between managing your team and ensuring success for your clients? Today's featured guest is here to talk about what it actually takes to evolve from doing the work to building a team that can win without you. The conversation cuts through common agency myths, like hiring better clients first or relying on RFPs, and instead exposes the real drivers of growth: team strength, leadership evolution, and structural leverage. Matt Kovacs is the president of Blaze PR [https://www.blazepr.com/], a boutique agency for lifestyle brands hungry for a piece of the market share. Kovacs brings a grounded, operator-to-leader perspective shaped by years of building and scaling a lifestyle PR agency across industries like CPG, restaurants, and real estate. His focus is on people, systems, and the subtle shifts that move an agency from founder-reliant to team-driven. In this episode, we'll discuss: * Which comes first, better clients or a better team? * The founder evolution from doer to developer of people * How Matt's team is integrating AI Subscribe Apple [https://podcasts.apple.com/us/podcast/smart-agency-masterclass-jason-swenk-podcast-for-digital/id870206013] | Spotify [https://open.spotify.com/show/0FiKuRTpkJ7OraCJBUIlr9] | iHeart Radio [https://www.iheart.com/podcast/263-smart-agency-master-28334260/] 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 [http://e2msolutions.com/smartagency] and get 10% off for the first three months of service. Toggl: Most agencies are losing 15–30% of their profit every year: lack of time tracking, messy manual timesheets, scope creep, untracked revisions, and all those "quick" client requests that never get billed. Toggl has created a fast, interactive way to uncover exactly where your margins are leaking. Start your investigation now at toggl.com/smartagency [https://heist.toggl.com/?utm_campaign=37225237-podcast-q12&utm_source=partner&utm_medium=smart-agency&utm_term=heist&utm_content=podcast] and use the code SMARTAGENCY10 at checkout for a 10% off annual plans. The Real Constraint: Founder-Centric Teams Most founders believe their growth problem is external, more leads, bigger clients, better positioning. But the real constraint is internal: everything still runs through them. Matt describes the shift from doing everything to stepping back into leadership. In the early years, he was deeply embedded in delivery, client work, and execution. That's normal. But the shift could only happen once he changed his willingness to let go. The turning point came when the agency had enough team strength and client quality to create space. That space allowed him to focus on mentoring, business development, and strategic oversight instead of execution. This is where most founders stall. They try to grow while staying embedded in delivery. The result is bottlenecks everywhere. Sales slows down. Team development stagnates. Clients remain dependent on the founder. When this happens, growth doesn't break the bottleneck. It amplifies it. The Misdiagnosis: "We Need Better Clients" What should come first, better clients or a better team? A common belief among agency owners is that landing bigger clients will solve their problems. Kovacs challenges that directly: better clients come after a better team [https://flatworm-caterpillar-3mha.squarespace.com/podcast/find-and-keep-the-right-people], not before. Without a strong team, bigger clients actually make things worse. They increase pressure, expose gaps, and force the founder to stay involved at an even deeper level. Instead of elevating the agency, they trap it. This is why agencies experience the "rollercoaster": win a big client, scramble to deliver, neglect everything else, then lose momentum. The sequence is wrong. It should be Stronger team → better client experience → higher-quality clients. Not the other way around. And that shift requires a founder to stop thinking like an operator and start building like an architect. The Hidden Cost of Not Evolving If you stay stuck in delivery, your team never fully develops, clients remain tied to you, and eventually, growth slows. This is where many agencies plateau between $1M–$3M. They have revenue, but no real structure [https://flatworm-caterpillar-3mha.squarespace.com/podcast/chaos-clarity-operational-maturity]. They're busy, but not scalable. And the founder becomes the most expensive, and least scalable, resource in the business. The Structural Shift: From Doer to Developer of People Kovacs' approach to leadership is focused on understanding people. For him, managing a team isn't one-size-fits-all. Some team members need daily interaction. Others need autonomy. Some respond to recognition. Others to responsibility. This level of awareness is what separates managers from leaders. But the deeper shift is this: the founder's job becomes developing people [https://flatworm-caterpillar-3mha.squarespace.com/podcast/700-person-agency-without-losing-your-mind], not producing work. For instance, he recently stepped back during a major pitch and allowed a junior team member to lead a critical part of it. She had developed deep expertise through personal interest, and instead of controlling the outcome, he created space for her to step up. They won the account, but more importantly, this gesture strengthened the entire organization. When founders hold onto control, they limit the ceiling of their team. When they create opportunities for others to lead, they expand capacity, without adding headcount. The New Environment: AI Won't Save You Matt explains how his team is integrating AI carefully, with guardrails, reviews, and intentional usage. It's a tool to enhance output, not replace thinking. He understands that AI amplifies whatever system already exists. If your agency is chaotic, AI makes it faster chaos. If your agency is structured, AI becomes a force multiplier. This is why some agencies will compress timelines, increase margins, and outpace competitors, while others fall further behind. The difference isn't the tool. It's the operating model behind it. 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 Bluepri [https://www.agencymastery360.com/blueprint]nt. 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