The four levels of agency growth

Think of this model as a pyramid; most agencies find themselves at the base but, as you progress higher, you achieve greater market trust, more effective marketing and higher profits. Let's break down each level:

Level 1: The red zone - generalist agencies

• Agencies at this level are essentially invisible in the marketplace and often unknown to potential clients.
• They are 100% reliant on the founder for referrals through networking and for closing all new deals.
• These are generalist agencies that are often stuck because the founder is overextended, helping too many different types of clients.
• They often fall below the "fear and ignorance line," believing that focusing on a single vertical will limit their growth potential.

Level 2: The vertical vendor

• Agencies at this level claim to specialize in one or multiple verticals but only at the surface level.
• They still compete heavily on price, and buyers are often skeptical.
• They begin to see the emergence of word-of-mouth opportunities and some structure in their sales process, perhaps even a junior seller.
• The key to progressing beyond this level is focusing on a single vertical market.

Level 3: The vertical specialist

• Agencies at this level have some market recognition as functional experts, but they still face skepticism and comparison shopping.
• They are often indistinguishable from other agencies specializing in the same vertical.
• They often acquire expensive leads through paid media to supplement referrals and word-of-mouth.
• Their sales systems are often too complex and chaotic.
• Agencies at this level may hit the "good enough line" and become complacent.

Level 4: The vertical market maven

• Agencies at this level have earned absolute trust and are seen as industry insiders and the safe option.
• Clients often comment that these agencies truly understand their business.
• They have a full sales pipeline overflowing with opportunities, and their sales process is a core competitive advantage.
• Agencies at this level never settle, constantly seeking to improve and become the best in the world.

Breaking free from the trap

The key to moving up the Deep Specialization Maturity Model is to challenge the myth that limiting your target market limits your growth potential. Specializing in a vertical market can actually lead to 50% faster and more sustainable growth. Furthermore, it is critical to push beyond the "good enough line". Remember, "good is the enemy of great". Aim to become a trusted source of reliable results and guidance in your chosen vertical.

What’s your next step

Consider where your agency currently sits in this model. Is it time to take a step to move to the next level? What is the one step you can take this week to elevate your agency? Just like Apple didn't stop at the iPod, good enough is never enough in today's competitive landscape. Your agency's future depends on pushing beyond the comfortable and familiar. Here are a few key takeaways to leave with:

• Deep specialization is the key to moving beyond the red zone and generalist agency status.
• Focus on a single vertical to make a significant impact and move up the levels.
• Don't settle for "good enough." Strive for excellence and constantly push for improvement.
• Become a master by being the best in the world in your chosen vertical.