So You Want to Build an Online Agency
If you’re an online entrepreneur who’s feeling maxed out, burnt out, and wondering how your business can possibly grow when you don’t have the capacity to expand any further, let me open your eyes to the possibility of an agency model business.
One of the reasons I chose to move into an agency model business, is the fact that there is literally no ceiling. You can grow your business as large as you want - it’s scalable, you can have the ability to be a multi-passionate entrepreneur, and it provides you with a sense of community and camaraderie you can’t find as a solopreneur.
Agency ownership also gives you freedom. In the online entrepreneurial space we are constantly being promised time freedom, the ability to be more present with our families, to travel more. But the reality is, as a solopreneur - do you REALLY have the freedom that’s been promised? Because when you don’t work… income stops. With an agency model business, that coveted freedom is truly possible.
Today we’re going to talk about what an online agency actually is - which may be different from what you thought it was. We’re going to dispel some of the misconceptions you may have, talk about the pros and cons (yes, agency ownership isn’t all rainbows and butterflies), and how to know if an agency is the right business model for you.
Let’s dive in!
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What is an online agency?
So many people have asked me, “I have a team. Does that mean I have an agency?”
Not necessarily. Just because you have a team does not mean your business is an agency model. It depends on the roles and responsibilities your team members are filling.
The difference is, as an agency model business, your team members are replacing you as the implementer for your clients, and they become your clients’ primary point of contact. This model allows you to fully step into your seat as CEO of your company - the visionary.
If you are still the middleman (or bottleneck as I like to say) between your clients and your team, if you’re still spending hours each week on client projects - then my friend I have some honest news for you. Your business is not scalable, because it revolves around how much YOU can do. And YOU have limits, we all do. Listen to Episode #106 of the How She Did That Podcast, for more about what an agency is, and what it isn’t.
Now, I want to address one of the biggest myths and misconceptions about the agency model.
People often think that in order to have an agency, you’re required to have a large team of 10, 20 or 100 contractors or employees. This is 100% FALSE.
You may only want or need to have a micro-agency with 3 team members - and that’s great! An agency can be any shape or size, and structured to fit your desires and needs.
🎧Related Podcast Episode: More Isn’t Always Better: Growing Your Agency’s Team Deeper Rather Than Wider
There has been a lot of talk in the online space recently around 2023 being a year of contraction rather than expansion. A lot of you may be wondering what this means for the future and questioning if owning an agency model business is sustainable. The short answer is, YES it absolutely is!
Pros of Agency Ownership
I’m a glass half full kind of woman, so let’s talk about the benefits of agency ownership first.
It’s a scalable model
We talked about this benefit above, but it is worth mentioning again. It is completely up to you how large your business grows, because as you begin reaching capacity you can always add more team members. Like I said before, the only ceiling you’ll hit with an agency model, is the one YOU set for yourself.
More time freedom
When was the last time you took a week-long vacation and left your laptop at home on your desk? Does just the idea of it make you sweat? This is a goal I set for all of the women I coach. With an agency model, I want you to build a team that you feel so confident about and can trust so deeply that you know they will run your business while you take a break and recharge. And the best part is, while you’re gone and napping on a beach or by the pool - your business is STILL MAKING MONEY!!
Agencies are collaborative
When I first entered the online space as a solopreneur, I was lonely! I missed the team and camaraderie I had at my 9-5. But as an agency owner, I am never lonely. My team is always a slack or voxer message away. We’ve fostered an environment where collaboration is encouraged and IT’S SO FUN!
▶️ Related YouTube Video: 3 Mistakes New Agency Owners Make
This video is all about what NOT to do as a new agency owner. And if you’re already doing it, how to recognize this isn’t the path you want to be on and start course correcting right away.
Cons of Agency Ownership
I’m never going to lie to you. Agency ownership is not for the faint of heart. It’s hard work, but I also believe it’s 110% worth it.
A Team Ain’t Cheap
The bigger your team, the bigger your expenses. That’s just math. There have been some weeks I’ve looked at my subcontractors’ invoices and almost fell off my chair. But that is why, as an agency you will need to price your services at a higher rate than others. Will that scare people off? Yes, some will be. But there will be plenty who will make the investment to be supported by not just one expert, but a team of them.
Team Management is Not Easy
I absolutely adore my team and love what each of them bring to the table - they wouldn’t be on my team if I didn’t! But managing so many different personalities has its own set of challenges. You will need to have difficult conversations, you may need to put out fires between team members whose personalities clash, you may even need to let team members go. And while these situations can be very uncomfortable, they are necessary for the good of your business.
Requires Serious Mindset Work
As a CEO and leader of your agency, expect to experience some mental growing pains. One of the biggest mindset hurdles I help my coaching clients through is the thought that “people only want to work with me.” These are the types of mindset traps that will keep you stuck as an agency owner. Sometimes you’re going to have to set your ego aside, as hard as it may be, and allow your team to step up and take control of certain elements of your business. You’re going to need to trust them, if you want your agency to thrive. This type of mindset work is HARD! But the growth you will experience once you’ve broken through those limiting beliefs and behaviors is incredible.
🎧Related Podcast Episode: 3 Limiting Beliefs Agency Owners Must Overcome in Order to Step Into Their Next Level
I’ve gotta let you in on this hard truth all business owners need to know- limiting beliefs will be the death of your company. Period. You cannot allow old habits to keep you from reaching your goals. And you shouldn’t let them!
Is an agency right for you?
If this rundown of what an agency model is hasn’t scared you away and you’re wondering if this could be your next step, here are five ways to know if agency ownership may be for you:
You love people! You don’t need to be an extrovert by any means, there are plenty of agency owners who are introverted, but you most definitely need to like people.
You’re 80% or more booked out in your business.
You are ready to step out of implementation and fully embrace the role of a CEO. This can be hard when you genuinely enjoy doing the day to day tasks and engaging with your clients regularly.
You have a bigger vision for your business.
I hope this breakdown of what an online agency is was helpful to you as you dream about what could be for your business in the future. If you take anything away from this blog post, remember that your agency can be completely customized to you - one size does not fit all.
Ready to continue exploring the limitless possibilities with running your own agency?
Let’s keep that journey going and join me inside my new membership for online agency owners, The Agency Alliance Membership!
I created The Agency Alliance to help you build the agency of YOUR dreams in an affordable, approachable, easy-to-implement container, that's popping bottles full of delicious agency-tailored support!
>> Learn more about what you can get as an Agency Alliance Member <<
Let’s Stay Connected
If you’re ready to get out of the doing in your online business, and ready to begin exploring the possibilities of an online agency model, I have lots of good resources to help you on your journey. I encourage you to check out my How She Did That podcast, and my Shop full of mini-courses and trainings!
Send me a DM on Instagram with any questions you have about agency ownership! @thetashabooth
- Tasha Booth, Agency Coach & Owner of The Launch Guild
Tasha Booth is an agency owner, podcaster, coach. She is the Founder & CEO of The Launch Guild - a full service launch support agency working with established coaches and course creators with Course & Podcast Launches. Her team works together to support their clients in being able to focus back onto their zones of genius.
She is passionate about helping women build profitable and sustainable agencies that they love, so they can fully step into the CEO role and create a life they dream of - one where naps are ALWAYS encouraged.
