THE AGENCY GROWTH CLUB

If you’ve ever worried about agency cash flow, scaling without bloat, or whether AI will replace your services, Joe Davies, co-founder of Fat Joe, has lived through it, and come out thriving.

Here’s what he has learned about building an agency that scales efficiently, protects cash flow, and uses AI without losing your edge.

Productization: The Secret to Scaling Without Chaos

Joe’s core philosophy is clear: Productize your services, or risk chaos.

“Unless you’ve productized your services, you can’t really scale. Otherwise, you’re just adding people.”

Productization means:

• Packaging services clearly

• Defining deliverables, pricing, and timelines

• Allowing clients to buy without sales calls

This approach has allowed Fat Joe to handle thousands of orders with a lean team, while many agencies with large teams still struggle to break even.

Cash Flow First: Why You Need Upfront Payments

Many agencies struggle with cash flow because they invoice after delivery and bill hourly instead of by value.

Joe’s approach:

• Take payment upfront

• Productize to eliminate scope creep

• Avoid hourly billing, which inflates payroll during downturns

“Taking payments upfront keeps your margins predictable and avoids cash flow turbulence.”

Joe recommends maintaining at least six months of runway to protect your business.

AI as Your Assistant, Not Your Replacement

While many fear AI will replace agencies, Joe sees it as a tool to enhance productivity:

• Summarising YouTube videos for faster learning

• Analyzing CSVs for pricing and forecasting

• Supporting ideation for digital PR and content

“Even if AI can run a campaign, your clients won’t. They want results, not to learn prompts.”

AI can reduce delivery time while maintaining quality, giving agencies a competitive edge rather than replacing them.

Weekly Themed Days to Stay Focused as a Founder

Agency owners are often pulled into every department daily, leading to distraction and burnout. Joe’s solution is to assign themed days to stay focused while maintaining oversight.

• Monday: Product and app improvements

• Tuesday: Marketing

• Wednesday: Services and pricing

• Thursday: Operations and hiring

• Friday: Ideation, learning, and rest

Each day has one big task tied to its theme, ensuring focus while allowing room for critical team interactions.

Acquisition Channels: Google Ads First, Then Awareness

Fat Joe’s primary growth channel has been Google Ads due to its high-intent traffic and clear return tracking.

“It’s the straightest line to get a customer.”

As an agency matures, it should expand into awareness channels such as:

• Meta and LinkedIn ads

• Podcasts

• Lead magnets

For agencies under $50K per month, Joe’s advice is clear:

“Focus completely on getting more leads first. Back-end systems can wait.”

Avoid Overcomplicated Funnels

Many agencies overcomplicate funnels with unnecessary segmentation. Joe’s approach is to keep funnels simple to ensure quick testing and refinement.

“Over-segmentation slows down learning. Keep it simple and improve your funnel over time.”

Outsourcing for Recession-Proof Scaling

Lean teams are more adaptable in economic downturns. Joe recommends:

• Using contractors and outsourced suppliers

• Keeping the core team small

• Scaling up and down with demand

“Outsourcing isn’t a dirty word; it’s how modern agencies stay profitable.”

Is SEO Dead?

Joe dismisses the idea that SEO is dead, noting that it is evolving rather than disappearing.

“SEO has never died. It evolves, but businesses will always need agencies.”

Search is shifting toward assistants like ChatGPT, but businesses will continue to need agencies to manage strategy, content creation, and distribution.

Build for Yourself, Be Ready to Sell

Joe has had acquisition offers but has chosen to continue building Fat Joe because he enjoys the challenge and the process.

“Build your business so it’s ready to sell, even if you don’t plan to.”

Key Takeaways

• Productize your services for scalable, repeatable delivery.

• Charge upfront to protect cash flow and margins.

• Use AI to augment your team and free up strategic time.

• Maintain a simple, effective sales funnel.

• Keep your team lean and leverage outsourced talent for flexibility.

• Prioritise lead generation if you are under $50K MRR.

• Prepare your business for sale, even if you are not planning to sell.

If your agency is looking to scale while maintaining profitability and avoiding unnecessary complexity, these principles from Joe Davies and Fat Joe offer a practical framework for growth.