3 IMPACTFUL STRATEGIES for Long Term, Sustainable Agency Growth with Seth Odell | Ep #730

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training How can you grow your agency’s client list beyond referral clients? Would you sacrifice price or length of contracts in order to attract new business? Today’s featured guest has successfully established his agency by prioritizing higher prices and maintaining a clear vision of his offerings. He emphasizes the importance of being selective with the opportunities that arise. He shares the challenges and strategies involved in growing his agency, as well as how he prioritized long-term relationships over new business. Seth Odell is the founder and CEO of Kanahoma, a performance marketing agency specializing in the education sector. With over 15 years of experience in marketing and education, Seth shares his journey from being a chief marketing officer at a university to launching his own agency during the pandemic. He discusses the pivotal moment when UCLA became his first client, propelling him to leap into entrepreneurship and the strategies he used to secure more clients and start managing the agency’s growth. In this episode, we’ll discuss: Getting your agency on its feet with a clear strategy from day one. Tactics for landing long-term contracts and increasing client retention. Getting the agency owner out of sales. Subscribe Apple | Spotify | iHeart Radio Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. When CMO Isn't the Final Destination Seth had dedicated fifteen years to marketing in the education industry before starting his agency, working in-house in roles like Chief Marketing Officer at a university system in San Diego. Initially, becoming a CMO seemed like the pinnacle of his career. However, after achieving this position, he realized he could keep pushing himself and decided to take the leap into entrepreneurship. Seth’s first client at his agency was UCLA, an amazing opportunity for a starter agency and a great chance to launch his business to success. It was a consulting agreement that covered Seth’s salary, his mortgage, and most of his expenses. 3 Strategies for Long-Term Agency Growth Build Relationships After landing UCLA as his first client, Seth formed a plan to send personalized letters and small gifts to fifty industry contacts who had influenced his career over the past 15 years. It was a sincere acknowledgment of the relationships he had built throughout his career and a good way to announce his new venture. This tactic had a tremendous impact and his agency secured two additional clients through referrals generated by this strategy. It led to immediate business opportunities and also laid the groundwork for long-term relationships. Strategic Hiring Seth was also very intentional about his service offering right from the get-go, being very selective with the opportunities he pursued, and handling things himself whenever possible. Once he started to hire, Seth took the risk of over-hiring for some positions. It could’ve backfired, but he trusted the move of hiring people he trusted and who could quickly grow into their role and make it their own. Price on Value Seth recommends charging as much as you reasonably can right from the start. He made the decision to position on premium and be both the new agency around and the one that charged the most. It seems counterintuitive, but he was willing to turn down work to keep his prices up. To him, losing work over price is an indicator that you’re pricing correctly and he was willing to lose up to 20% of new business with this strategy. He knew people were paying for more than just performance, they were paying for the confidence in future results. This way, he could hire better teams, drive better performance, and build a better reputation. Tactics for Landing Long Term Contracts and Increasing Client Retention Whenever possible, Seth likes to start client engagements with a twelve-month contract. If it’s not an option, he’s willing to do a six-month pilot. Recently, he has also introduced paid media audits, where his team conducts a thorough analysis of the client's account and provides consulting services. His agency’s growth strategy focuses primarily on client retention, aiming to maintain relationships for five to ten years rather than solely pursuing new business. There have been a couple of occasions where Seth wished he tested a client before committing to a year-long relationship. Consequently, his team is trained to assess each potential client with the mindset of determining whether the engagement is a “winnable game.” They also don’t hesitate to turn down clients who come in with unrealistic expectations. More recently, he has been able to move some of his paid media clients to three-year contracts by offering a discount and an offer to exit the contract with a 90-day notice. This alleviates the fear of being locked into a long-term commitment without recourse. While clients might feel a sense of freedom with this provision, the reality is that a 90-day notice period is substantial enough to encourage open communication about any concerns that may arise during the engagement. A successful collaboration begins with understanding the client’s needs and challenges and a great way to achieve this is through a collaborative project. Jason suggests a foot-in-the-door project where they’ll participate in identifying their biggest challenges and creating an action plan. It’s a great way to create a sense of ownership in the outcomes and help build trust as clients see their input being valued and integrated into the final product. Shifting Focus and Getting the Agency Owner Out of Sales Seth has come to recognize the importance of distinguishing between promoting himself and advocating for the solutions his agency provides. Like many agency owners, he was deeply involved in the sales process, leading clients to believe he would also be heavily engaged in product delivery. While he initially played a significant role in sales, as the agency grew, he began to step back, which resulted in some mismanaged expectations. He has since adopted a new approach, positioning himself as the product architect and his team as the driving force behind the product. By surrounding himself with a team that excels in their respective areas, he has shifted client focus away from his involvement. This allows the client space to appreciate the capabilities of the team. Additionally, Seth was taken aback by the extensive responsibilities that come with ownership. Running a large in-house agency was a challenge, but it paled in comparison to the diverse duties associated with owning a business. From managing human resources and legal obligations to overseeing finances and IT, the vast array of tasks can be overwhelming. This realization has highlighted the need to delegate responsibilities—not only to alleviate his workload but also as a vital strategy for ensuring mental clarity and operational efficiency. Do You Want to Transform Your Agency from a Liability to an Asset? Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.