Why 12% Agency Pricing Is "Piracy" & Running an Agency You Actually Enjoy with Tom Downer
Tom Downer spent 13 years running paid social at Wise, Zipcar, and Fab.com before founding Elements, a growth agency built differently. After working with agencies that "sucked," he rebuilt the model from scratch. In this episode, Tom shares: • Why 12% of ad spend pricing is "piracy" and what to do instead (fixed pricing vs. profit share models) • The 70/30 framework: Measuring agency success by enjoyment, not just revenue • How to screen for clients who'll trust you vs. micromanage you (red flags to watch for) • Why async reporting beats weekly status calls (Loom + written reports structure) • The controversial take: Why most startups shouldn't invest in brand marketing too early • When to flip the switch on brand investment (conversion rates, repeat rates, economics) • Building internal AI tools (Quantax & Kima) instead of just using third-party platforms • The cost of saying "yes" to toxic clients and why revenue isn't worth it • Hiring apprentices with zero marketing experience (no degree required) Key quotes: "There's zero value in me sitting on that call every week just talking through numbers. I could have looked at that. Why? That's what I want to hear." "If your product makes sense and is sellable, there's gonna be enough people immediately in market. If you can't start selling immediately, there's a problem with the product." "Year one was 70% enjoyment, 30% grinding. This year I'm aiming for 80/20. Most agencies measure success in revenue. I measure it in whether I actually want to do this work." Perfect for: Agency founders, consultants, startup marketers, performance marketers, anyone running a service business Tom Downer founded Elements after realizing traditional agencies were too layered, too crappy, and didn't focus on what actually matters (contribution margin, not just CPA). Elements acts as an extension of client teams, focusing on growth holistically—not just media buying. Connect with Tom: linkedin.com/in/tom-downer Hosted by Luke Costley-White, Growth Marketing Lead at DOJO AI. Topics: agency pricing models, percentage of ad spend, fixed pricing, profit sharing, client selection, toxic clients, async reporting, brand marketing timing, startup marketing strategy, performance marketing, paid social, Meta advertising, AI tools for agencies, agency operations, challenger brands, growth marketing #AgencyLife #MarketingAgency #StartupMarketing #PerformanceMarketing #AgencyPricing #BrandMarketing #PaidSocial #GrowthMarketing