The Agency Model Is Broken – Here’s How To Fix It

Agency owners, take a good look at ancient Rome. The ruins, the history, the grandeur—it’s all a reminder of what happens when systems that once seemed untouchable crumble.

Right now I’m on Palatine Hill, overlooking the Roman Forum, which were once the playgrounds of the elite. They thought they were on top of the world, much like today’s “Sales Bros” who chase flashy agency success without delivering real results.

But Rome fell. And so will agencies that fail to adapt.

The Harsh Reality of Agency Performance

I’ve audited hundreds of agencies, and the results are staggering. Time and again, I find businesses that have paid tens of thousands of dollars for websites, SEO, and ads—only to see no measurable results.

So called “SEO agencies” who don’t know how to make websites rank, FB Ads marketers targeting leads from other states for local businesses, and etc.

I recently audited a site that cost $20,000. Over a year later, it hadn’t generated a single phone call. Not one. And the agency owner? He wasn’t even tracking it.

This is like a person stepping on a scale and refusing to believe the number they see. Agencies that don’t measure their impact are essentially operating in the dark, charging clients thousands of dollars while delivering little to no ROI.

If this was just a few agencies, that would be one thing. But in my two decades plus of experience, over 80% of agencies chronically fail the most simple tests of competency through auditing.

The Numbers Don’t Lie

Many agency owners think their competition is the agency down the street. It’s not. Your real competition is Google, Facebook, and AI. These platforms are automating ad creation, optimizing campaigns, and integrating directly with businesses through tools like Google Business Profile and Local Service Ads (LSA).

The value an agency once provided is being systematically eliminated.

The game is changing. AI can now produce better content, generate higher-performing ad creatives, and optimize campaigns in real-time—often better and cheaper than most agencies can.

If your agency is built on white-label services, underpaid VAs managing dozens of accounts, and a lack of direct expertise, you’re already losing. Even with guides on how to hire competent VA talent, if you yourself don’t understand how to drive and measure results, it won’t matter.

Real Value Comes from Real Experiences

The secret to winning as an agency isn’t outsourcing or automation—it’s making your clients’ real experiences visible. The first “E” in Google’s EEAT (Experience, Expertise, Authoritativeness, and Trust) is the key.

Agencies that focus on showcasing their clients’ daily operations—their team, their projects, their customer interactions—are the ones that will survive. Not those who obsess over MRR or vanity metrics.

Think about it: Google, Facebook, and YouTube want real, authentic content. They want local businesses to show their work.

If you’re running ads for a plumber, electrician, or HVAC company, your job isn’t just to generate clicks—it’s to highlight the real-world expertise of that business in a way that algorithms (and customers) trust.

For example, we’ve been able to almost double Plumbing Pros LLC in Easton, PA’s phone call volume in the last 4 months. That’s because Sal Sciorta (the owner) is exceptionally good at what he does – and we amplify that in a way which shows a definitive ROI.

Agencies Must Adapt or Die

The digital agency model, as we know it, is heading for collapse. Some of the biggest names in digital marketing have already exited, selling their agencies because they see what’s coming. The Uberification of digital marketing is here—where automation, AI, and self-service tools replace the need for traditional agencies.

That doesn’t mean agencies have no future. It means the ones that survive will do two things:

1. Deliver undeniable value – If you’re charging $3,000/month, you better be generating $30,000+ in incremental revenue for your client. That means measuring results, tracking ROI, and proving your worth.
2. Streamline operations – If your agency relies on outdated models like charging $20,000 for a basic website, you’re already obsolete. Tools like WordPress Engine, AI-driven content creation, and CRM-integrated ad platforms allow you to deliver better results for a fraction of the cost.

How Can Your Agency Adapt?

Charles Darwin said that it’s not the strength of animals that shows their likelihood for survival – it’s their ability to adapt to changes. And if your agency wants to survive, you need to adapt too.

Local business owners are getting smarter. Many now understand SEO, PPC, and lead generation better than the agencies they hire. And if you’re outsourcing everything without knowing how to do it yourself, you have no way to hold your team accountable.

This leads to uncomfortable conversations and the realisation among many local service businesses that they can do a better job themselves. And who can blame them?

Agencies need to wake up. The days of selling “guaranteed leads” and hiding behind vague reporting are over. If you’re an agency owner and this message triggers you—good. That means there’s something you need to fix.

Instead of focusing on awards, networking, and industry clout, focus on measurable success. Focus on demonstrating MAA in all that you do. And If you want to do this right, if you want to build a future-proof agency, be transparent about results, embrace efficiency, and actually deliver ROI.

Because if you don’t, you’ll end up like Rome—just another relic of a bygone era, waiting for the next generation to replace you.