Why You Should Not Run an Agency in 2026

If you're thinking about starting a digital agency, here's the reality: it's harder than ever. Let's explore why.

Why Agencies Struggle:

• **Commoditization of Services**
• - Anyone with a laptop and YouTube can claim to be an expert
• - Clients expect low prices, which erodes margins
• - Competing on price is a losing game

• **Client Acquisition Costs Are Exploding**
• - Every agency is bidding for the same clients
• - Ad costs keep rising, clients expect more for less
• - You're essentially using your profit to acquire new clients

• **Talent Retention is Brutal**
• - Top talent is expensive and wanted everywhere
• - Burnout is real; most agencies have 50%+ annual turnover
• - Training takes time; losing trained staff is costly

• **Scope Creep & Under-pricing**
• - Clients always want "just one more thing"
• - Budget discussions are painful
• - Profitability suffers from poor scoping

• **Technological Demands**
• - Staying updated with algorithms, platforms, tools is exhausting
• - Training staff on new tools is constant
• - Tools are expensive; small margins mean you can't afford the best ones

• **Low Barriers to Entry**
• - Anyone can call themselves an agency
• - Clients have no way to differentiate quality
• - Price becomes the deciding factor

• **Client Concentration Risk**
• - Lose one big client = financial crisis
• - Diversification takes resources
• - Long-term viability is uncertain

The Harsh Truth: Most agencies fail within 5 years. Those that survive are either: - High-end boutique agencies (very specialized) - Tech-enabled platforms (10-100x efficiency) - Niche specialists (e.g., SaaS marketing only)

What Works Instead:

• **Productized Services** - Offer fixed packages, not custom services
• **Vertical Specialization** - Master one niche (e.g., e-commerce agencies only)
• **Agency Platforms** - Use software to scale service delivery
• **Hybrid Model** - Services + SaaS product
• **Creator Economy** - Build personal brand instead of company brand

Why Marketa Survives and Thrives:

We're not a traditional agency. We're a specialized performance marketing firm with deep expertise in PPC, social, influencer, and web development. We operate with efficiency that larger agencies can't match.

Our approach: - Niche specialization (performance marketing) - Team of friends (low turnover, high passion) - Results-oriented (240% average ROI speaks louder than proposals) - Technology-enabled (we've built internal tools) - Premium positioning (not competing on price)

Thinking of starting an agency? Don't. Build something different. Build something specialized. Build a brand, not a service business.

Or partner with us. We've figured out what works in 2026.