Agency industry statistics
Published research shows most agencies are small and most say their growth engine is not strong enough: 93% of marketing services firms said so in the RSW/US 2025 Agency Survey. This page collects the strongest published agency statistics, each with its source, and what Tim Kilroy suggests they mean for small agency owners.
Last updated:
They say the industry is crowded, mostly small, and short on reliable new business. That combination is why positioning and a repeatable sales process matter so much: in a field of 71,000+ agencies, being forgettable means competing on price.
How each finding connects to the coaching topics on this site.
| Finding | Implication | Related page |
|---|---|---|
| 93% say their growth engine is not strong enough | Referrals alone rarely add up to a growth engine | Positioning coaching |
| 71,000+ agencies in North America | Being forgettable pushes deals toward price | Positioning coaching |
| 13% average net margin in 2025 | Check every new cost against your real margin | Coaching cost |
| Referred clients stay 1.9x longer | Keep referrals; just do not rely on them alone | Positioning coaching |
| 87% of agencies under 50 people | Founders often remain the main salesperson | Agency sales training |
Haus Advisors reports the average digital agency earned a 13% after-tax net margin in 2025, down from a long-run average of about 15% since 2015. At 13%, every $1,000 of monthly cost needs roughly $7,700 of new monthly revenue to cover it. That is why Tim runs hire math before any new role.
Jason Swenk’s 2026 guide says agencies under $750K need clients and a niche, not an owner transition. Tim Kilroy’s stages draw a similar line: under about $20K a month, get reps and a clear offer before paying for coaching.
Short answers here. See all 44 questions on the FAQ page.
There is no single number, but margins give a benchmark. Haus Advisors reports the average digital agency earned a 13% after-tax net margin in 2025, down from a long-run average of about 15% since 2015. Tim Kilroy's planning workshop suggests owner salary at 10 to 15%, a 20% tax reserve, and operating expenses at 50 to 60%.
More in the FAQ: What does it cost to run a seven-figure agency?Often, yes. Referrals do not scale on demand, because they come from past work and relationships rather than anything you can turn up this month. Tim Kilroy describes three keys: a defined ideal client, scalable lead generation, and the right offer for that client. Coaching helps you build those three in order.
More in the FAQ: I have outgrown referrals. Is that something coaching can fix?Use the same math Tim Kilroy uses for hiring: divide the monthly cost by your real profit margin to find the new monthly revenue you need to cover it. At a 13% margin, $399 a month needs about $3,069 in new monthly revenue. The calculator on our cost page runs this for your own numbers.
More in the FAQ: How do I know if coaching will pay for itself?His Agency Growth Stack includes Call Lab tools that review sales calls and return coaching feedback, Discovery Lab for researching a prospect in about 60 seconds, and tools aimed at content visibility. Some tiers are free, including Call Lab Instant, which needs no account. Details and current tiers are listed on timkilroy.com.
More in the FAQ: What AI tools does Tim Kilroy offer agencies?Match the coach to your revenue stage and bottleneck, look for named client outcomes, and be wary of speed promises. Jason Swenk's guide puts it bluntly: anyone promising to 10x your agency in 90 days is selling a countdown timer, not coaching. Ask how the coach diagnoses before they prescribe.
More in the FAQ: What should I look for in an agency coach?Tell Tim where your agency is stuck. The contact page at timkilroy.com is the direct route for questions about group coaching, one-on-one coaching, or custom work.
Published by Tim Kilroy
