The Agency of Tomorrow Needs Profit Today
Ask yourself: does running your agency feel easier than it did a year ago? If the answer is no, good. Because that probably means you’re paying attention.
The truth is: the world your agency was built for is disappearing - and it’s not coming back.
The Squeeze is On
We’re not in some golden era anymore. The middle-of-the-market agencies - where most of us live - are getting squeezed out. Why? Because:
Clients expect more for less.
Procurement has sharpened its teeth.
Affordable AI tools make “good enough” creative $50 software a month.
In-house teams are absorbing what used to be your bread and butter.
What used to work - volume, commoditised services, bandwidth - doesn’t fly in this new climate.
The Apple
Picture an apple. The juicy flesh in the middle? That’s the meat of commoditised agency work: repetitive services, task-driven deliverables, easy-to-outsource output. That’s what a lot of agencies are built on… and what AI and in-house teams are now swallowing whole.
But the skin - thin, tough, protective - that’s the top 1%. That’s where agencies that wrap around technology instead of fighting it live. That’s where you add real value clients can’t buy off the shelf.
If you want to survive - let alone thrive - you need to build in the skin.
Why Profit Isn’t Greed… It’s Ammo
Profit isn’t a leftover luxury. It isn’t what’s left after you’ve done the work. Profit is what you build first.
Without profit, there’s no way to:
Invest in better talent and systems.
Say “no” to clients who drain you.
Fire bad clients.
Sunset commoditised, unprofitable services.
Raise your prices.
Build a business with real margin - not just volume.
If you don’t build for profit now, you won’t be able to survive the next wave of change.
What Does It Look Like to Build for Profit?
Here’s a playbook for shifting your agency from “survive” mode to “scale” mode:
Open your P&L. Get real about your margins - after paying fair salaries.
If profit is under 15%, act quickly.
Cut one thing that drains margin.
Raise price on at least one service (ideally more).
Book a strategy day. Revisit your niche, positioning, pricing.
Systemise, automate, delegate… don’t rely on hustle.
Focus on deep domain expertise, premium positioning, and strategic thinking that can’t be replaced by an algorithm.
This isn’t easy - it might require tough calls. But that’s how you build an agency worth owning.
The Bottom Line
The agencies that will thrive in the next 12–24 months won’t be the busiest. They’ll be the clearest.
They won’t try to be all things to all people. They’ll pick a lane… and dominate it.
They’ll lead with insight, not execution. They’ll be built for profit, not pipeline.
The gap is widening now between the top 1% and everyone else. The only real question is:
Which side of the apple are you building for?
If you’re ready to make the shift - to become leaner, smarter, more strategic - we’re here to help.
