This episode challenges the common "agency vs. in-house" debate by reframing it around value and proper incentive alignment. It argues that focusing on finding the right partners and talent, regardless of their operational structure, is crucial for growth. The host advocates for performance-based pricing models that align agency compensation with actual business growth, emphasizing that agencies are experts in their specific function, but the ultimate responsibility for holistic business growth lies with the CEO.
Key takeaways
The 'agency vs. in-house' question is a false dichotomy; the real focus should be on finding skilled talent that delivers business outcomes, regardless of their employment structure.
Traditional agency pricing models (e.g., percentage of spend) are often misaligned. A better model involves a flat fee plus a percentage of incremental profit growth above a baseline, resetting regularly to account for seasonality and sustained performance.
Agencies offer structural advantages like broad pattern recognition from managing many accounts and robust operational systems, while in-house teams provide 100% focus and deep internal knowledge. Brands should consider what they need most for specific roles.
Before hiring an agency, ensure your core business economics (margins, repeat rates, fulfillment) are sound. No agency can fix fundamental business model flaws, only optimize their specific piece of the puzzle.
When evaluating agencies, look for a proven playbook or system, detailed process breakdowns, client references, retention rates, and the opportunity to speak directly with the account manager.
👉 Grow your bottom line: https://www.kynship.co/ Too many brands expect an agency to come in and 10x their business without fixing anything internally.In this episode, I get brutally honest about something I don’t think enough people in our world talk about: agency incentives, pricing structures, and who’s actually responsible for growth. (Hint: it’s not your agency.)I walk through why most agency pricing models are broken and how we’ve structured ours at Kynship to align incentives the right way. I also get into the real reason your business might be stuck, because growth takes way more than good ads or flashy creative. If your margins suck, if retention’s declining, if your ops are a mess... No agency can fix that for you.Growth is a team sport, and it's time we started treating it that way.Let's jump right in!Key Takeaways:00:00 Intro 00:46 Agency incentives and pricing structures01:50 Value over price02:58 How we structure things at Kynship 04:56 What most people get wrong when hiring an agency 07:54 The reality of in-house talent09:19 Exceptional growth talent is expensive10:05 Growing your business is not our job 15:23 Agency vs. in-house talent 19:29 What I want you to take away from this episode21:27 Outro Additional Resources:Follow us on X:👉 Cody: https://x.com/Cody_Wittick 👉 Taylor: https://x.com/TaylorLagace The Bottom Line is your go-to podcast for honest ecommerce conversations on profitable growth strategies. Join Cody Wittick and Taylor La
What does this episode say about paid acquisition?
The 'agency vs. in-house' question is a false dichotomy; the real focus should be on finding skilled talent that delivers business outcomes, regardless of their employment structure.
What does this episode say about founder & leadership?
Traditional agency pricing models (e.g., percentage of spend) are often misaligned. A better model involves a flat fee plus a percentage of incremental profit growth above a baseline, resetting regularly to account for seasonality and sustained performance.
What does this episode say about finance & fundraising?
Agencies offer structural advantages like broad pattern recognition from managing many accounts and robust operational systems, while in-house teams provide 100% focus and deep internal knowledge. Brands should consider what they need most for specific roles.
What does this episode say about paid acquisition?
Before hiring an agency, ensure your core business economics (margins, repeat rates, fulfillment) are sound. No agency can fix fundamental business model flaws, only optimize their specific piece of the puzzle.
What does this episode say about paid acquisition?
When evaluating agencies, look for a proven playbook or system, detailed process breakdowns, client references, retention rates, and the opportunity to speak directly with the account manager.
