The 3 Silent Killers of Agency Growth in 2026

Author

Nick Avaria
November 23, 2025

If you run a marketing agency, I don’t need to tell you this:

Scaling is hard, especially when you’re juggling delivery, sales, and a never-ending client list that seems to own your calendar.

And here’s the kicker: 90% of agencies are on track to lose money or shrink next year.

And most don’t even realize it until it’s too late.

After helping dozens of agency owners hit the 7 and 8-figure mark (and profit margins north of 35%), I’ve seen the same three traps hold most agencies back — no matter their size or niche.

I’m Nick Avaria, agency owner, and founder of Agency Acquisitions. Watch this week’s newsletter on YouTube here.

Trap #1: Relying on One Revenue Stream

Most agencies are overly dependent on one offer or one type of client. Maybe it’s a “done-for-you” Google Ads package or a single niche like chiropractors or eCommerce brands.

Here’s the problem:

Your total addressable market is smaller than you think.

Not every business in your niche wants to outsource their marketing. Some want training. Some want strategy. Some want to build their own in-house team.

If you’re only offering “done-for-you” services, you’re leaving 50% (or more) of your potential revenue on the table.

Here’s what to do instead:

  • Add a “done-with-you” offer (think consulting, ongoing audits, Fractional CMO, etc.).

  • Create a DIY version (recorded training, templates, or internal processes repackaged for clients).

By offering all three tiers — DFY, DWY, and DIY — you instantly double your potential market and reduce your dependence on any single client or contract.

Trap #2: Broken Client Feedback Loop

Most agencies fail because they don’t track client feedback and churn properly. Most churn is preventable, but the majority of agency owners only find out a client is unhappy after they cancel.

Everyone thinks that their churn is lower than it actually is. And it’s easy to make excuses when a client leaves. But you have to learn to recognize the danger signs early and set up an early warning system inside your agency.

Here’s how to get started fixing it:

  1. Send an Net Promoter Score (NPS) survey every 1–3 months (How likely are you to recommend us, 1–10?)

  2. Schedule a quick feedback call based on their score:

  • Happy clients (9–10): ask for a referral, testimonial, or upsell.

  • Neutral clients (7–8): identify what’s missing.

  • Unhappy clients (6 or below): fix the problem immediately.

  1. Feed those insights back into your team so you can fix what’s broken in your delivery process so that your product and services continuously improve.

It’s not sexy, but this simple system can cut churn in half and turn existing clients into a steady pipeline of referrals and upsells.

Trap #3: Misaligned Pricing & Positioning

This one’s subtle, but it quietly kills margins. If your brand, service, and price aren’t aligned, you’re either:

  • Overpriced: Clients churn quickly.

  • Underpriced: You’re overdelivering and underpaid.

  • Off-brand: You’re stuck competing on price.

Here’s what alignment looks like:

  • Your brand creates trust and authority (case studies, results, strong messaging).

  • Your service consistently delivers above-market results.

  • Your pricing sits just below your perceived brand value, making it easier to sell and leaving room for future upsells.

Agencies that get this right can charge premium rates and still keep clients long-term. These are the ones earning 30–35%+ profit margins — not scraping by on 10%.

Is your agency positioned to scale or shrink in 2026?

With budgets tightening and businesses looking to maximize every dollar they are spending on marketing, you need to be positioned well in the market, and have offers that are meeting clients where they are at.

If you can keep clients happy, and keep them for longer, then you’re on track to scale.

Even small adjustments here can transform your growth trajectory over the next 12 months.

As of now, I am fully booked through the end of 2025 and early 2026 with marketing agencies.

If you want to get on my waitlist for 2026 to help your agency scale faster and make more profit, book a time to chat to see if you’re a fit for working with me 1:1.

Nick Avaria