Why Most Agencies Waste Money on Consultants (And How to Be the Exception)

Why Most Agencies Waste Money on Consultants (And How to Be the Exception)

Many believe this will be a big year for the ad industry. Budgets are up. Enthusiasm is up. Technology is revolutionizing the game. You know it will be a good year when holding cos are merging and gobbling up agencies, and PE firms are investing in agencies like never before. Just when you thought the ad world couldn’t get any more crazy-exciting, welcome to 2025.

Considering the potential for aggressive agencies, you may need help getting a bigger slice of the pie. Good news! There are tons of help available, including more consultants than ever before. Whatever you need, it’s out there. Some specialize in the structure and operations of an agency. Some specialize in finding and recruiting agency talent, while others specialize in agency M&A and PE. And, of course, there are too many so-called “agency growth consultants” that specialize in business development, about 134,000,000 entries, according to Google. That’s a lot of help, including me.

When investing in an agency growth consultant, you want to ensure you get the most from your investment. The value is palpable in my area of expertise: new clients, new work, new revenue. For this endeavor to be successful, it cannot be a one-way street. The agency and the consultant must work together from beginning to end to ensure the greatest result. If they don’t, neither will be happy in the end.

To get the most value from hiring an agency growth consultant, your agency needs to be strategic and proactive. I’ve been working with agencies for over 20 years, the last nine as a consultant, and I know firsthand why some agencies do very well while others do not. I offer the following 14-step framework for before, during, and after you engage a consultant to help ensure maximum return on investment.

1. Pre-Engagement: Laying the Foundation for Success

• Do Your Homework: Before reaching out, thoroughly review the consultant’s website and any other available content, reviews, and affiliations. Understand their exact areas of expertise, the types of agencies they typically work with, and their overall approach. Pay attention to:
• Services Offered: My website highlights services like agency positioning, sales process optimization, and day-to-day prospecting. Ensure the services fit your agency’s current needs.
• Target Audience: Do they primarily work with agencies of your size and specialization? Look for red flags, such as many clients in other industries like accounting, law firms, or real estate. I work exclusively with ad agencies: creative, marketing, brand, digital, PR, multicultural, experiential, influencer, and every kind of agency.
• Testimonials and Case Studies: Look for testimonials or case studies that resonate with your agency’s challenges and aspirations. This can give you confidence in their ability to deliver results.
• Identify Your Challenges and Goals: Before the initial consultation, clearly define the key challenges your agency is facing and what you hope to achieve with a consultant’s help. Be specific. Instead of “we need to grow,” think specifics:
  • “We need to improve our new business win rate.”
  • “We want to attract larger, higher-value clients.”
  • “Our agency positioning is unclear and doesn’t differentiate us.”
  • “We’re struggling to scale profitably.”
  • “Client retention needs improvement.”

One of the benefits of an agency growth consultant is their outsider, unbiased perspective. Be open to hearing their diagnosis. It may be something different. If it is, be confident you understand why and adjust accordingly. Clear, mutually agreed goals will allow you and your consultant to focus efforts and measure success.

• Prepare for Honest Self-Assessment: Be ready for a candid and potentially uncomfortable assessment of your agency’s strengths and weaknesses. A good consultant will challenge your assumptions and point out areas that need improvement. A great consultant will lay it all on the table: the good, the bad, and the ugly. Approach this process with an open mind and a willingness to change. After all, you will be the biggest beneficiary of success.
• Gather Key Agency Data: Compile relevant data points that will be useful for the consultant to understand your agency’s current state quickly. This might include:
  • Financial performance metrics (revenue, profitability, utilization rates).
  • New business pipeline and win rates.
  • Examples of pitch decks, both won and lost.
  • Client list, current and former, and retention rates.
  • Marketing and sales materials.
  • Mission, vision, purpose, agency roadmap
  • Team structure, roles. Previous experience and any specialized expertise.

2. During the Engagement: Active Participation and Implementation

• Be Fully Engaged and Responsive: Treat the agency growth consultant as a partner. Be present and actively participate in meetings, workshops, and strategy sessions. Respond promptly to requests for information and feedback. The more you put in, the more you’ll get out.
• Open and Honest Communication: Be transparent about your challenges, concerns, and aspirations with your consultant. Honest communication is crucial for him to provide tailored and practical advice.
• Challenge and Question (Constructively): Don’t be afraid to ask clarifying questions and challenge recommendations but do so constructively. Engage in healthy debate to fully understand the rationale behind the advice and how it applies to your agency.
• Prioritize and Implement Recommendations: Consultants provide advice, but the agency needs to act. Make sure they prioritize recommendations and develop a clear implementation plan. Likely, you can’t do everything at once. But don’t let the insights gather dust – actively implement the agreed-upon strategies as quickly as possible to gain the full value of the consultation.
• Track Progress and Measure Results: Set up key performance indicators (KPIs) to track progress against your goals. Regularly review these metrics with your consultant to assess the effectiveness of the implemented strategies and make adjustments as needed.
• Leverage Specific Expertise: My work focuses on competitive analysis, differentiation, positioning, sales messaging, prospect modeling and ICPs, list building, marketing automation, AI, prospecting, sales support, presentations, content development, writing, email, and other agency growth services. This is a long list, so focus your engagement on issues that align with your agency’s priorities. For example, if you’re struggling with prospecting, actively work with them to refine your sales process and messaging.

3. Post-Engagement: Sustaining Momentum and Long-Term Value

• Maintain Momentum and Accountability: Consultant engagements are often time-bound. After the formal engagement ends, ensure you have internal systems and processes in place to maintain momentum and accountability for implementing the agreed-upon strategies.
• Regularly Review and Adapt: The ad agency landscape is constantly evolving. Periodically review the strategies and processes implemented with your consultant’s guidance and adapt them as needed to stay ahead of the curve.
• Stay Connected (Strategically): Consider maintaining a strategic relationship with the consultant, even after the formal engagement concludes. This could involve occasional check-in calls or project-based consulting for ongoing support and fresh perspectives.
• Measure Long-Term ROI: Continue to track the KPIs you established during the engagement to measure the long-term return on your investment in consultancy services. This will help you assess the overall value and inform future strategic decisions.

Hiring an agency growth consultant can be a valuable investment for any size or type of ad agency seeking to scale, improve profitability, or refine its market position. However, to maximize value, the agency must proactively prepare for the engagement, actively participate during the process, and diligently implement and sustain the changes post-consultancy.

The number one reason agencies fail is because they don’t continue implementing the recommendations. That is why, unlike most other consultants, I offer fractional business development services. I will take your new playbook and do the day-to-day activities necessary to find, attract, and win clients for you. I don’t just tell you what to do. I show you by doing it, setting the benchmarks for success, optimizing the process, and training agency personnel to take it over and keep the momentum going.

No other consultant treats your project as a true partnership, both in theory and practical application. And by being actively involved each step of the way, the voice, messaging, and brand will be authentic and genuine to you and your agency, hand in glove. Regardless of who you use, a consultant can be your impact multiplier during this exciting year. Think big, but act quickly. You’ll be down one quarter before you know it.

Happy Prospecting!

I’ve got lots more practical advice on ad agency business development and am happy to share. Find time on my calendar, and we can debate the pros and cons of an agency growth consultant or whatever is on your mind. If you liked this post, let me know in the comments. If you’d like to get these posts in your mailbox every month, sign up for my New Business Newsletter. While you are at it, let’s connect on LinkedIn. Finally, if you know anyone who might benefit from this newsletter, please forward your copy. #LetsGrow!