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Agencies are Drowning in a Sea of Sameness – How a Flawed Approach Is Killing Your Growth
The agency business model is under pressure, and not just yours, if that makes you feel any better.
With this in mind, I interviewed Stuart Dunk, Founder and Managing Director of “Don’t Forget to Look,” who sheds light on the industry’s most significant challenges and how agencies can break free from outdated practices and thrive.
For an extended version of this conversation, enjoy the video on YouTube – 22 minutes:
If you’re in a hurry, tune in to the podcast for the short-and-sweet version – 14 minutes:
Meet Stuart Dunk
In his own words, Stuart Dunk from Don’t Forget to Look helps agency owners sleep better at night. How? Through a mixture of pitch support, positioning work, ICP (ideal client profile) and outreach strategy; workshops on topics like sales, pricing, negotiation, and navigating marketing procurement, and in January ‘25, pay-to-view videos on those four workshop topics have been released.
I’m no stranger to agency coaches. Many so-called coaches are nothing but charlatans, but then I met Craig Rodney (literally The Agency Coach), and he’s the real deal – he helped us Exit Small, and last year we grew by 50% thanks to him and his guidance.
So when it comes to mentors, I’m very skeptical, but in our interview, Stuart quickly proved that he’s one of the good ones and called me out (in the nicest way) for falling into the trap most agencies face.
Thanks Stu, you lit a fire under my ass and my business is better for it.
No. 1 Myth: Creativity is a differentiator
Many agencies pride themselves on creativity, touting it as their unique selling point. But according to Stuart, this thinking is fundamentally flawed.
“How can creativity be a differentiator if every agency is creative?” he asks. “It’s the minimum a brand expects, not a competitive advantage.”
Instead of relying on generic claims like creativity, agencies must develop a distinct positioning and value proposition – one that goes beyond listing their services or stopping at describing what they do, and instead highlights the benefits and impact they bring to their clients.
The commoditisation of agencies
A well-founded criticism of agencies today is their lack of differentiation. Too many agencies list the same services, provide similar case studies, and rely on rate cards to determine pricing. The result? A race to the bottom on price and margin. The power goes to the prospective client looking for an agency, not the other way around.
“Agencies are competing on inputs rather than outputs and outcomes,” Stuart explains. “When everyone looks the same, the only way to stand out is to be cheaper, which is a zero sum game.”
Is your messaging too vanilla?
Many agencies fall into the trap of “vanilla messaging” – describing themselves as creative, data-led, or customer-centric. “These aren’t differentiators; they’re just the baseline,” Stuart warns. “To stand out, you need something different and memorable to say.”
Agencies that fail to craft a compelling narrative risk being overlooked in an already saturated market.
Who would survive in a better agency ecosystem?
If 80% of agencies were to shut down, Stuart argues that survival would hinge on four key factors:
- A positioning and value proposition that is unique and emotionally resonant.
- A USP or programs that are truly uniquely ownable by the agency. (Take your old list of services and re-package them into programs that only you can deliver)
- The ability to clearly define an ideal client profile in under 15 seconds.
- A pricing model that isn’t solely based on hourly rates, but deliverables and / or value.
We asked Stu the provocative question about what would kill-off 80% of agencies, but he diplomatically said the focus should be on helping them improve and evolve. That’s his forte.
You’re playing it safe, and it’s killing you slowly
A common criticism is that agencies opt for safe strategies rather than pushing creative boundaries. Stuart disagrees – at least partially.
“Many agencies would love to push boundaries, but they need the right brief from the client – one that outlines strategic needs, budgets, and expectations,” he says. “Without that clarity, agencies are left guessing, which naturally leads to “safer” ideas. ”
It’s a two-way street. Agencies have it in them to do better – why not ask the client great questions about their creative boundaries, and would they like to see options rather than one route? – , but clients need to play ball.
The full-service trap
The term “full-service agency” is often used to suggest safety and versatility, but Stuart sees how it can work against agencies.
“Clients don’t believe an agency can be world-class at everything,” he says. “Specialization builds credibility and differentiation. When agencies claim – and then develop – expertise in a niche, they naturally reduce competition and become one of the few go-to experts in their field.”
I’ve done that with my own B2B digital marketing agency, Shift ONE Digital. We’re not for everyone – we only attract the best companies in manufacturing, consulting, and engineering. They come to us because we know their industry and what digital marketing tactics work for that industry.
If you’re a skincare brand targeting Gen Z, we’re going to turn you down.
We are all about the non-sexy products and services!
The billable hour problem
Another flaw in the agency model is how agencies charge for their work. Stuart is a strong advocate for moving away from the hourly rate model.
“Charging by the hour doesn’t incentivise efficiency,” he states. “Rate cards shift the focus to time spent rather than results achieved or outputs delivered.”
He uses a powerful example: “If I can solve your problem in five minutes because I have 20 years of experience, should I be paid for five minutes of work or for the expertise that allows me to solve it so quickly?”
The answer is obvious. Clients pay for the years of accumulated knowledge, not just the minutes on a clock. And yet, the industry continues to cling to a model that equates time with value, a flawed assumption that devalues true expertise.
The solution? Agencies need to ditch the billable hour model in favor of value-based pricing, a model where clients pay for the outcome and impact of the work rather than the time it takes to complete it.
And that can take time.
Value-based pricing allows agencies to:
Charge based on expertise and impact, not just time.
Align their incentives with client success.
Differentiate themselves from competitors who still bill by the hour.
Build stronger, more trusting relationships with clients.
Achieve higher margins than with rate cards, because the client is shown outputs, not time trackers, against hourly rates
When agencies switch to value-based pricing, they become strategic partners and no longer just service providers. Value-based pricing is a theme in achieving differentiation, just as much as niching is a theme in achieving differentiation.
The relationship between agencies and freelancers
Many agency leaders fear that by investing too much in freelancers, they’re inadvertently training their own competition. The concern is that these independent contractors will gain valuable industry insights, develop relationships with clients, and eventually set up competing businesses.
While this fear isn’t entirely unfounded, Stuart takes a different view.
“People don’t leave companies; they leave bad bosses,” he says. “If you don’t train and inspire your team, you’ll lose them. If a freelancer is that good, make them an offer they can’t refuse.”
In other words, the real issue isn’t freelancers leaving – it’s agencies failing to create an environment worth staying in. Instead of viewing freelancers as a threat, agencies should see them as an opportunity. If someone delivers high-quality work and deeply understands the agency’s operations or client sectors they work with, why not integrate them further into the team? Offering them a compelling reason to stay – financial, cultural, or strategic – can turn a potential competitor into a long-term asset.
Stop overpaying for freelancers – the real issue is leadership
Another common complaint from agencies is that freelancers cost too much while delivering too little. When freelancers don’t fully grasp a brand’s tone, processes, or expectations, their work often requires excessive revisions. This leads to wasted time, money, and frustration.
But Stuart argues that this isn’t a freelancer problem; it’s a leadership and onboarding problem.
“It’s the responsibility of senior leadership to ensure freelancers are onboarded properly,” he states. “Without a clear process, agencies risk wasting money and undermining client confidence.”
Freelancers shouldn’t be treated as outsiders expected to ‘figure it out’ alone. Instead, agencies must establish clear onboarding processes aligning external talent with the brand’s expectations, style, and strategic goals. Set someone up to succeed, give them what they need to do a great job.
The agency model of the future
The agency model is definitely flawed, but not beyond repair. To thrive in today’s market, your agency must:
- Define a truly unique and emotionally compelling positioning. Have something different to say.
- Don’t try to compete with all agencies, or serve all brands: niche, niche, NICHE.
- Shift the conversation from lists of services and time spent, to deliverables-based work and measurable outcomes.
Stop competing on price. Start competition on value. It’ll pay off – literally.
Hear more from Stuart in our full conversion:
About the author
Dylan Kohlstädt is the founder and CEO of Shift ONE and is a digital marketing expert with over 20 years of experience, an MBA, and an IMMA Marketing Diploma. Not only does she lead Shift ONE Digital, but she also mentors entrepreneurs, sharing her expertise to help businesses grow.
About Stuart Dunk
Stuart Dunk is the Founder and Managing Director of Don’t Forget to Look, a consultancy dedicated to helping agency leaders navigate challenges in sales, pricing, negotiation, and marketing procurement. With a career spanning agency-side roles, global marketing procurement at brands like Nike and Danone, and now, as an industry consultant, Stuart brings a unique perspective on agency-brand sell-buy dynamics and growth.
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