The 5-Phase Agency Growth Method That Tripled My Client's Revenue in 12 Months
Most agencies are stuck in what I call the "busy but broke" cycle. They're working harder than ever, taking on more projects, hiring more people, but their profit margins keep shrinking. Sound familiar?
I've been there. During my time helping scale the Nerdery from 50 to 500+ employees (earning us two consecutive spots on the INC 5000 list), I learned something crucial: growth without a systematic approach is just expensive chaos.
That's why I developed the Agency Growth Method®—a five-phase framework that's helped agencies like Red Hook triple their revenue from low to high 6-figures in about a year, and Wyrmix double their revenue while expanding their team.
Here's the exact method that's transforming agencies across the country.
The Problem: Why Most Agency Growth Strategies Fail
Before we dive into the solution, let's address why you're probably struggling with growth right now.
You're treating symptoms, not causes. Need more revenue? Take on more projects. Team overwhelmed? Hire more people. Clients complaining? Work more hours. But none of these address the underlying systems problems that create the chaos in the first place.
You're scaling without structure. The same scrappy, "figure it out as we go" approach that got you from 0 to $500K becomes the ceiling that keeps you stuck at $500K. What worked with 5 people becomes a nightmare with 15.
You're the bottleneck. Every decision flows through you. Every client crisis lands on your desk. Every strategic move requires your approval. You've built a business that can't grow without breaking you.
I know because I've seen hundreds of agencies hit this wall. The good news? There is a systematic way to approach it.
The Agency Growth Method®: 5 Phases to Sustainable Growth
Phase 1: Discover & Assess
What it is: A deep-dive analysis of your current agency operations to identify the real growth blockers (hint: they're usually not what you think).
Why it matters: You can't optimize what you can't measure. Most agency owners have gut feelings about their problems but lack the data to prioritize solutions effectively.
How it works:
Revenue Analysis: Where is your money actually coming from? Which clients, services, and team members drive profitability?
Process Audit: We map your current workflows from lead generation through project delivery to identify inefficiencies and bottlenecks
Team Assessment: Who's performing, who's struggling, and where are the skill gaps that limit growth?
Market Position Review: How do you stack up against competitors, and where are the differentiation opportunities?
Real example: When Wyrmix came to me, they thought their problem was pricing. The assessment revealed their real issue was project scope creep—they were delivering 40% more value than they were charging for. Once we addressed that, their margins improved immediately.
Your next step: Complete our Agency Growth Assessment to identify your top 3 growth opportunities. [Link to free assessment]
Phase 2: Strategize & Plan
What it is: Custom strategic planning that targets your specific growth goals across marketing, sales, and project management.
Why it matters: Random acts of marketing and scattered improvement efforts waste time and money. Strategic focus multiplies your impact.
How it works:
Growth Goal Setting: We establish clear, measurable targets for revenue, team size, and operational efficiency
Market Positioning Strategy: Develop messaging and positioning that differentiates you from the commodity competition
Sales System Design: Create a predictable, scalable process for generating and converting leads
Operational Roadmap: Plan the process improvements and team changes needed to support your growth targets
Real example: Red Hook's strategy phase revealed that they needed to move upmarket from a $ 10,000 to a $ 25,000 average project value. We developed a positioning strategy centered on their technical expertise and created a sales process tailored for longer, higher-value engagements. Result? Revenue tripled within 12 months.
Key insight: Strategy isn't about doing more things—it's about doing the right things in the right order. Most agencies attempt to fix everything at once, but often end up fixing nothing.
Phase 3: Optimize Resources
What it is: Fine-tuning your team and technology utilization for maximum efficiency and impact.
Why it matters: Your current team probably has 30-40% more capacity than you're accessing. Optimization unlocks growth without hiring.
How it works:
Team Optimization: Assess roles, responsibilities, and workload distribution to eliminate bottlenecks
Technology Stack Review: Identify tools and automations that free up human capacity for high-value work
Process Streamlining: Eliminate redundancies and create standardized workflows for consistent delivery
Resource Allocation: Ensure your best people are working on your most important initiatives
Real example: During our work with DKY, Inc., we discovered their development team was spending 20 hours per week on tasks that could be automated. Those recovered hours went directly to billable client work—essentially adding a free team member's worth of capacity.
The multiplier effect: Resource optimization doesn't just improve efficiency—it improves team morale. When people aren't fighting broken processes, they can focus on work that moves the needle.
Phase 4: Implement & Execute
What it is: Guided strategy implementation with ongoing support and accountability.
Why it matters: Great strategies fail because of poor execution. This phase ensures your plans actually become reality.
How it works:
Implementation Planning: Break down your strategy into manageable, time-bound actions
Accountability Systems: Regular check-ins and progress tracking to keep momentum strong
Problem-Solving Support: When you hit roadblocks (and you will), we troubleshoot together rather than letting you get stuck
Team Training: Ensure your people have the skills and knowledge to execute the new approaches
The "Done With You" advantage: Unlike consultants who drop off a strategy document and disappear, I stay engaged through implementation. You're building internal capability while getting expert guidance through the challenging parts.
Real example: The Rectangles' CEO, Paulina, said it best: "Kurt gives me incredibly helpful advice on growing the company, shares great ideas, and keeps me motivated with 'homework' between our sessions."
This phase is where transformation happens. Strategy is just theory until it's executed consistently.
Phase 5: Evaluate & Adapt
What it is: Continuous assessment and strategy refinement based on results and market evolution.
Why it matters: The market is constantly evolving. Your business changes. Your strategy needs to change, too. This phase ensures your growth approach stays relevant and practical.
How it works:
Performance Review: Regular analysis of what's working, what's not, and why
Market Monitoring: Staying ahead of industry trends and competitive changes that affect your strategy
Strategy Refinement: Adjusting approach based on data and results, not just gut feelings
Scaling Preparation: As you grow, your systems and strategies need to evolve, too
The evolution principle: Your $1M strategy won't work at $3M. Your 10-person systems won't work with 25 people. This phase ensures you're always building for your next growth stage, not just your current one.
Why This Method Works (When Others Don't)
It's Based on Real Experience
I didn't develop this method in a classroom or consulting firm. I learned it by actually scaling an agency from 50 to 500+ employees. Every phase addresses problems I've personally solved at scale.
It's Systematic, Not Scattered
Most agency owners try to improve everything at once—sales, marketing, delivery, team, and systems. The Agency Growth Method tackles these challenges in a logical sequence, where each phase builds upon the previous one.
It Builds Internal Capability
Rather than creating dependency on external consultants, this method transfers knowledge and builds your team's capability to sustain growth independently.
It's Flexible, Not Rigid
Every agency is different. The five phases provide structure, but the specific strategies and tactics are customized to your situation, market, and goals.
The Results Speak for Themselves
Red Hook: Revenue tripled from low to high 6-figures in about a year through strategic repositioning and systematic sales process improvement.
Wyrmix: Revenue doubled, and the team expanded within a year after addressing positioning and implementing targeted messaging strategies.
DynaPro Global: Founder Utsav went from "completely lost on how to build a sales strategy" to having "clear, actionable steps that completely shifted my approach."
However, what I'm most proud of is that these results stick. Because we're building systems and capabilities, not just applying quick fixes.
Ready to Transform Your Agency?
The Agency Growth Method® isn't magic—it's systematic business improvement applied consistently over time. But it works because it addresses the real causes of agency stagnation, not just the symptoms.
If you're tired of the "busy but broke" cycle and ready to build an agency that grows without breaking you, let's talk.
Begin with our Agency Growth Assessment to identify your top growth opportunities and determine which phase to focus on first. https://schmidtagencyconsulting.com
Want to go deeper? Book a free consultation to discuss how the Agency Growth Method® could transform your specific situation. https://calendly.com/k_schmidt/agency-intro
Remember: your agency doesn't have to choose between growth and sanity. With the right approach, you can have both.
Kurt Schmidt is the founder of Schmidt Consulting Group and former President of Nerdery, where he led growth from 50 to 500+ employees. He helps agency owners and sales professionals boost sales and improve operations through practical, proven strategies. Connect with Kurt on LinkedIn or listen to his podcast, The Schmidt List.
