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What we're seeing in the market
The headline numbers are better than the mood suggests. Gross profit is at a four year high. Fee income is up. Hourly rates are climbing. But the agencies feeling that upside share something in common they've stopped selling what they do and started owning the problem they solve.
Earlier this week, I hosted a session at the CEO Summit for the Alliance of Independent Agencies on how agencies can actually stand out and stay profitable.
Here’s the key takeaways:
- The winners aren't selling hours, they're building assets. Those who've shifted to outcome based models are unlocking bigger margins, better scalability, and higher value.
- AI is creating a serious gap, and it's only getting wider. Leaner teams, smarter systems, and 12 - 15% higher profitability on average.
- Niche is power. Trying to serve everyone is a fast track to getting squeezed on price and losing pitches to someone who looks more specialist. The agencies growing fastest right now are laser focused: one problem, one audience.
Founders, ask yourself:
If your agency disappeared tomorrow, what would your top three clients actually struggle to replace?
If the answer is the team, you have a people business.
If the answer is the thinking, you have a differentiated one.
Most agencies are the first, but charging like the second.
The impact of doing this is high. This month six of our members have hit double digit growth within their first six months with us. One partner is up 30% across two quarters.
Although there are fluctuations in the market, there are agencies that are winning. This is a key part of how.
If you're ready to pressure test your positioning or pricing - you can score it here in under 10 mins.
Thinking about buying or selling one day, but not sure where to start?
Being a 3x exited founder, dealing with countless M&A deals, all while scaling - it’s never an easy process.
This is what scaling, deal ready businesses are doing right now:
- Decoupling revenue from headcount
- Having a strong, qualified pipeline in the crowded market
- Graduating from vendor to an integrated partner.
Want to know how you compare? Check out our exit readiness assessment.
Until next time.
Luke
CEO & Founder of Unusual Group
Can’t wait ‘till next month? Follow us on LinkedIn to keep up to date.
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