Agencies
Key Takeaway: The optimal way to use agencies is NOT as permanent vendors but as temporary teachers — negotiate a 6-month arrangement where they do the work AND teach you why they make the decisions they do, train your internal team in parallel, then transition to a lower-cost consulting arrangement once your team beats their results, because you'll always have more focused attention on your business than a fractioned agency rep ever will.
Chapter 15: Agencies
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Summary
This chapter covers the third lead getter: agencies. Hormozi's first agency experience was actually the right approach — he paid $750/hour for the owner to sit with him and walk him through Facebook ads live. Eight hours and $6,000 later, he had a skill that made him millions. But every subsequent "traditional" agency engagement followed the same frustrating pattern: exciting onboarding, senior rep assigned, results appear, senior rep moved to new client, junior rep takes over, results decline, complaints, brief senior rep return, eventual cancellation, search for next agency.
The core insight: agencies get worse over time because you get a fraction of their attention while every new client gets their best reps. Meanwhile, your internal team gets better over time because they're focused on you full-time. The strategy is to use this dynamic deliberately: hire agencies to learn new methods or new platforms, not as permanent lead-getting vendors.
Hormozi's current approach opens every agency relationship with transparency: "I want to learn what you do, I'll pay extra for you to explain your decisions, after 6 months I'll train my team, then we'll transition to consulting." Most agencies accept because they get a customer they otherwise wouldn't. Two agencies at once works even better — one "good enough" agency to learn the ropes, one elite agency to learn how to maximize. Compare your team's results to the agency's until you beat them, then cancel and reinvest.
The 10-point agency selection criteria uses the Value Equation lens: dream outcome they promise, perceived likelihood via recognized clients and referrals, time delay via clear timelines, and effort/sacrifice via what they need from you. Red flags: agencies found only through their own paid ads (best agencies grow by word of mouth), short-term hacks over long-term strategy, and anything other than expensive (all good agencies are expensive, but not all expensive agencies are good).
Key Insights
Use Agencies as Teachers, Not Permanent Vendors
The right model is a 6-month learning arrangement, not a lifetime retainer. You pay for their expertise AND their willingness to teach. Once your team beats their results, transition to consulting only.Your Team Gets Better While Agencies Get Worse
Agencies fractionate their attention across clients; your team is 100% focused on you. Over time, this attention asymmetry means your internal team will inevitably outperform any agency — the question is how fast you can close the gap.All Good Agencies Are Expensive (But Not All Expensive Agencies Are Good)
Price is a necessary but insufficient indicator of quality. The best agencies are found through word of mouth, have waiting lists, set realistic expectations, and focus on long-term strategy over short-term hacks.Key Frameworks
Agency-as-Teacher Model
Open with transparency: "6-month learning engagement → teach me why you make decisions → I train my team → transition to consulting." Hire one "good enough" agency to learn ropes + one elite agency to learn mastery. Compare team vs. agency results until your team wins. Then cut and reinvest.10-Point Agency Selection Criteria
(1) Referred by someone you know, (2) Recognized client portfolio, (3) Waiting list, (4) Realistic expectations in sales process, (5) Long-term strategy focus, (6) Clear requirements from you, (7) Regular meeting schedule, (8) Simple progress tracking, (9) Strong offer on all four Value Equation dimensions, (10) Expensive.Direct Quotes
[!quote]
"It cost me eight hours and $6000 to learn a skill that's made me millions."
[source:: $100M Leads] [author:: Alex Hormozi] [chapter:: 15] [theme:: learning]
[!quote]
"I can get my team as good or better than the agency in less than six months."
[source:: $100M Leads] [author:: Alex Hormozi] [chapter:: 15] [theme:: training]
Action Points
- [ ] List two advertising methods or platforms you don't currently know — research agencies that specialize in each
- [ ] Use Hormozi's opening script in your next agency conversation: "I want to learn what you do over 6 months, then transition my team to do it internally"
- [ ] Evaluate any current agency relationships against the 10-point criteria — are you getting a teacher or just a vendor?
Questions for Further Exploration
- At what company size does it make more sense to keep permanent agency relationships rather than always bringing capabilities in-house?
- How does the agency-as-teacher model interact with rapidly changing platforms where institutional knowledge depreciates quickly?
Personal Reflections
Space for your own thoughts, connections, disagreements, and applications.
Themes & Connections
Cross-Book Connections
- $100M Offers Ch 6 — Value Equation applied directly as the 10-point agency selection criteria
- Chapter 14 - Employees — The 3Ds training model applies to bringing agency-learned skills in-house
- Lean Marketing Ch 7 — Dib's approach to vendor relationships and marketing systems complements the agency-as-teacher model