What one of marketing’s biggest names predicts for next year…

Last week, I sat in on Perry Belcher’s 2025 predictions webinar.

If you’re not familiar:

Perry is a long-time marketing veteran. He’s the co-founder of DigitalMarketer, and has built and sold multiple seven-figure businesses.

He’s got a sterling reputation for predicting industry trends.

And his outlook for marketing agencies was… sobering.

So I wanted to share a few of my notes with you.

According to Perry, the traditional agency model is completely broken.

Why?

Because the market is drowning in competition, and losing credibility!

Any teenager with a laptop and an internet connection can claim to be a “Social Media Marketing Agency.”

The barrier to entry is so low that there are (in Perry’s words) “too many shovels and not enough gold.”

But here’s the really scary part…

Many agencies pulling in $3M to $5M in revenue are actually operating at a loss, or surviving on razor-thin margins!

In this “feast or famine” cycle, agencies are:

• Constantly chasing new clients
• Neglecting existing ones who then churn out
• Ultimately spending more on acquisition than they make in profit

And it’s about to get worse.

Tools like GoHighLevel and AI are making it easier for small businesses to handle their own marketing at scale.

So the traditional “we’ll run your ads for you” model is becoming less valuable every year.

Agencies that don’t integrate AI and automation will become obsolete, especially since clients are starting to prefer software over human interaction for repetitive tasks.

So what’s the solution?

Don’t position yourself as a “marketing agency.”

Instead, become a “service provider.”

Perry advises moving towards done-for-you services to set yourself apart.

Many agencies claim to offer this, but fail to deliver.

So if you can deliver a reliable DFY service, while leveraging AI and automation, you’ll have a huge competitive advantage.

Perry also recommends:

Don’t rely purely on selling services.

Offer something tangible, like software, access to automation, or a unique and high-value IP.

Or, flip the model by giving away lower-tier services for free, and sell higher-ticket consulting or coaching on the back end.

The endgame here is to position your company as not just “selling services,” but “selling results.”

And that’s what really caught my attention…

Perry says the agencies that will survive are the ones who “can prove their value through specific, tangible outcomes.”

This is exactly why we’re such big advocates for Open Book Management!

When you have complete visibility into your financials, you can:

• Spot profitability issues before they become critical
• Make strategic decisions about automation and AI adoption
• Prove your real value to clients with hard numbers
• Build a consistently profitable agency that avoids the “feast or famine” cycle altogether

If this sounds like something worth implementing in your business:

Book a free 30-minute strategy call with me here.

We’ll talk about your goals, and how we can make 2025 your best financial year yet.

See you on Tuesday with more insights on building a future-proof agency!

— Nick Kringas
Founder of Open Book CFO