Why your agency will crash

The world is driven by INCENTIVES.

When working on a business model, review the incentives that drive it.

In the case of a classic agency, the incentives are fucked (eventually).

As an agency owner, your goal is to maximize profits . To do that, you need more clients. To get clients, you spend time finding them. Then you deliver on your offer.

If you want to scale, you hire more people. More sales people, more delivery people.

That' s where most people don't see the switch:

You go from an agency owner leveraging knowledge to deliver solutions ... To a talent management company.

The more clients you get, the more fragile your business becomes, because:

• Churn happens. Talent and clients leave .

• You rely on humans. Humans get sick, tired, bored.

• Great talent is hard to find. Scale demands more of it.

To sum it up simply and "50 IQly":

Because the value you provide them dilutes as you scale.

Incentives are wrong.

How to escape this crash and become anti-fragile ?

Focus on what's scalable with zero marginal cost: Your time isn't. Your knowledge is.

This is where the new switch happens: Don't switch to a talent management company. Switch to an education company.

Elevate your positioning: Charge more, deliver more value to fewer clients.

Then, package your expertise into frameworks, templates, systems. Things people consume without your time being involved.

That's how you go from “done for you” to “built once, sold infinitely.”

Whether 5 or 500 people use your service costs you 100x more. Whether 5 or 500 people learn from you costs the same.

That's anti-fragility.

See you in the trenches,

-K