#74: How AI Is Changing Agency Growth
Building an agency isn’t glamorous. Behind every “success story” there’s a decade of trial, error, and personal growth. Over the years, I’ve learned that scaling an agency isn’t just about strategy, it’s about people, systems, and leveraging new technology effectively. That’s why I was thrilled to speak with Eric Emerson, president of In Your Hand Media, who shared insights from his journey of taking a small marketing business into a nimble, innovative agency in a crowded marketplace.
In this post, I’m breaking down the key lessons for agency owners, especially those running $0-$3M ARR agencies so you can scale faster, smarter, and with less risk.
The Foundation: Know Yourself Before Scaling
Eric shared a truth that hit me: your personal strengths and weaknesses dictate how fast your agency can grow. When he started In Your Hand Media, he realized early on that he was a creative first, but finance and operations were blind spots. Without acknowledging that, growth could have stalled.
For me, I’ve seen the same pattern. If you try to “do it all” as a founder, you end up overwhelmed. Instead, your first priority should be self awareness:
Identify where you excel (strategy, sales, creative execution).
Identify where you need support (accounting, operations, HR).
Bring in trusted advisors or hire specialists early even if it feels premature.
Eric credited much of his early success to both mentorship and peer networks, which helped him fill gaps in financial and operational knowledge. This principle is critical: scaling an agency is not just about acquiring clients, it’s about building the right team and support system.
People First: Hiring the Right Talent
One of the most overlooked aspects of agency growth is finding people who stick. Eric emphasized a point I live by: agencies succeed or fail based on the team you build. There are two essential skill sets you need:
Technical specialists: the experts who execute flawlessly.
Client communicators: the people who translate results into business impact.
Rarely do you find both in one person. That’s why building layers of talent, some specialists, and some client facing is crucial.
Eric’s approach: start in the gig economy (Upwork, Freelancer) as “training wheels,” then promote the best to long term roles. This lets you test talent without long term risk and ensures that only the best fit becomes part of your core team.
Systems and Processes: Scaling Operations Without Chaos
Growth without systems leads to burnout. Eric and I dug into how AI and automation can multiply your capacity without adding overhead:
Content at scale: Using LLMs, Eric’s team generated over 1,400 vertical videos, which increased brand visibility dramatically.
10-80-10 principle: Provide 10% input, let AI do 80% of the heavy lifting, then refine the final 10%.
Company AI brain: Build internal systems where AI supports your team’s decision making, not replaces it.
I’ve applied similar frameworks with my own agencies: AI is not just a tool, it’s a force multiplier for operations, profitability, and client acquisition. The key is training your team to leverage it consistently, rather than chasing every new shiny tool.
Client Stickiness: Communication is Everything
Eric highlighted a point I deeply agree with: results alone don’t retain clients, relationships do. Many agencies obsess over clicks, impressions, or reports. But if clients don’t understand the value behind the metrics, retention suffers.
Best practices I’ve applied in my agency and observed in Eric’s:
Simplify explanations: Break down complex processes (SEO, PPC, AI workflows) to a level clients can digest.
Tell a story with data: Don’t just show numbers; interpret them and show business impact.
Invest in your team culture: A loyal team communicates better and becomes an extension of your client-facing brand.
This is why long term relationships exist at In Your Hand Media, with clients staying for 7–10 years. It’s not just the work, it’s the clarity, the trust, and the consistency.
The Counter Intuitive Advantage: Smaller Agencies Win
One of the most provocative insights Eric shared was how boutique agencies are outperforming larger competitors. Big agencies often lose intimacy and speed; smaller agencies like Eric’s are nimble, responsive, and quick to adopt AI workflows.
For agency founders, this means:
You don’t need to be the biggest to dominate your niche.
Specialization and speed can beat scale.
Integrating AI thoughtfully gives smaller teams a massive leverage advantage.
Step by Step Workflow for AI Enhanced Agency Growth
Here’s how you can replicate Eric’s and my methods:
Audit your strengths and gaps: Identify where you’re weak operationally and bring in advisors or hire specialists.
Hire in layers: Start with freelancers, move top performers to core roles.
Train your team in AI workflows: Teach them to integrate AI into content creation, client reporting, and internal processes.
Automate content & lead generation: Use AI for blogs, social posts, and tools for client engagement.
Focus on client communication: Translate data into actionable business insights and build trust.
Invest in culture: Regular check-ins, relationship building, and mentoring create loyalty.
Measure, iterate, and optimize: Use AI and internal reporting to track growth, efficiency, and profitability.
Key Takeaways for Agency Owners
Self awareness is the first step to scalable growth.
People drive results, hire slow, fire fast, and invest in talent.
AI isn’t a replacement; it’s a multiplier. Train your team to leverage it for efficiency and better decision making.
Simplifying communication retains clients. Clarity beats complexity.
Boutique agencies can outperform larger competitors through agility, speed, and innovation.
Scaling an agency is both art and science. It requires knowing yourself, hiring intentionally, systematizing processes, embracing AI, and cultivating deep client relationships. Eric Emerson’s story is proof that with the right mindset and execution, even a small agency can punch well above its weight.
If you want to go deeper, you can run the full version at agencyuplift.co/mini.
Even if you never book a call, the clarity alone is worth it.
