I turned down 30 clients last month.
People think I’m crazy. "That's like $200k you could’ve made…".
But here's what happened instead: We signed 2 perfect-fit clients at higher rates, got 3 referrals, and our retention jumped to 100%.
Most agency owners fail because they're optimizing for the wrong metric. They're counting clients instead of building a brand that attracts the right ones.
The Birdhouse will do about $2M this year doing the OPPOSITE of conventional wisdom.
Here's what actually matters:
→ Take care of your team like they're partners
Every quarter, I sit down with each person and ask: "What are your goals? Are we helping you hit them?"
When your team is growing personally and financially, they'll run through walls for their clients. Our ops manager started as an EA in 2022. She stayed because she knew we were building something together.
→ Invest in networking without calculating ROI
I spent $30k flying to events and client meetups my first year. No immediate return. Just conversations and connections.
A year later, those "random" conversations turned into $200K in referrals. Every mastermind, every conference, every client meeting in-person compounds over time.
→ Build a brand people want to be part of
We have custom jackets. Bird-themed Slack emojis. Vintage cartoon aesthetics. Pokemon cards at my desk (bird-types only).
Sounds extra? Maybe. But the brand isn't just marketing. It's retention, recruitment, and referrals wrapped into one.
→ Be "the guy" in your niche
We’re not the best marketers in the world. But we are absolutely THE BEST at what we do.
Twitter. LinkedIn. Threads.
When someone asks "Who should I talk to about growing on X?" they tag me or mention The Birdhouse. That positioning is worth more than any ad spend.
But here's the most counterintuitive part:
I refer out more people than I sign. Dozens of leads every month, but we only take 1-2 clients.
Why? Because I'd rather have 10 perfect clients getting incredible results than 50 mediocre ones churning every quarter.
When someone isn't a fit, I send them to another agency I trust. That person becomes a fan. The agency I referred them to sends business back. And my reputation stays intact.
(Shoutout to my friends in the industry, we own this sh*t)
The shift that changed everything:
Stop selling. Start consulting.
On every call, I ask: "What's your actual problem? What's your revenue? What have you tried?"
If we're not the best solution, I tell them. Sometimes I send them to a competitor. Sometimes I give them free advice and send them on their way.
Last month, I referred someone to a different agency. Two weeks later, that agency sent me a $100K client because they weren’t the best fit.
Law of reciprocity is real.
One more thing most people won't tell you:
Do the unscalable stuff as long as you can.
I still do every client onboarding call. I still build their profile setup. I still send them resources that aren't part of our service.
We're at $2M. I could delegate it. But clients pay a premium because they know I'm not just the sales guy - I'm in the trenches with them.
If you're under $10M, white glove service isn't a luxury. It's your competitive advantage.
The bottom line:
Your agency isn't a numbers game. It's a reputation game.
Turn down the wrong clients. Invest in your team. Build a brand that makes people want to be associated with you. Be the obvious choice in your category.
The money follows when you stop chasing it.
Hope this helps.
Cheers.
Marcos
P.S. - The video version has even more nuance, check it out:
