Running agencies Piece 09 · ~8 min read

Why I built four agencies instead of one.

The brand-architecture decision behind running four specialist agencies under one operator, what it enables, and what it costs.

The most common piece of unsolicited advice I get from other agency founders is some version of: "consolidate. One brand, one website, one sales team, one P&L. You're complicating your life." The advice is well-meant and operationally wrong. The four agencies exist as four separate brands because that's the structure that does the most useful work for each of the markets they serve. Consolidating them into one would be cheaper to operate and significantly worse at the actual job.

This piece is the architecture decision, made explicit.

Why specialisation beats generalism in agency work

The pitch of a generalist agency is breadth: "we do SEO, we do paid, we do social, we do web design, across any industry, for any business size." The argument for the pitch is convenience for the client — one vendor, one invoice, one account manager. The argument against is that no team can be genuinely senior in twelve industries and seven service lines simultaneously. The work either gets staffed by junior people pretending to be senior, or by senior people whose actual expertise is in one or two of the twelve industries and who are bluffing on the rest.

Specialisation flips the trade-off. The team gets to compound expertise inside one industry — over hundreds of campaigns, dozens of clients, multiple algorithm cycles, real regulatory changes. The cost is breadth. The benefit is that the work is meaningfully better at what it does specialise in.

The four agencies, and why they're separate

Each of the four serves a market that rewards a fundamentally different set of operating decisions:

Trying to run all four under one brand would mean compromising on every single one of those decisions. The compromise version is the generalist agency the market already has too many of.

What it enables

The architecture enables three useful things that would be hard to achieve any other way:

  1. Underwriteable guarantees inside each industry. Each agency's guarantee structure is calibrated to what's underwriteable in that specific market. A blanket cross-industry guarantee would have to be set at the lowest common denominator — soft enough to be honoured everywhere, weak enough to be meaningless.
  2. Editorial credibility. Pracxcel's writing on healthcare marketing is taken more seriously because it comes from a healthcare-specialist agency. The same content under a "we do everything for everyone" brand would be discounted as marketing material from a generalist trying to claim expertise.
  3. Senior team retention. Senior specialists want to work at firms where their specialty is the centre of the business, not one of twelve service lines. Each agency can attract and retain senior talent because their seniority compounds inside the specialty rather than dilutes across categories.

What it costs

The architecture isn't free. The real costs:

What it isn't

The four agencies aren't a holding-company play, and they aren't a private-equity-style roll-up. They're each operating businesses with their own teams, their own clients, and their own commercial economics. I'm not collecting agencies for the balance sheet. I'm running them because each one does a specific job better than a single brand would, and because the work compounds across the four in ways that wouldn't compound across one.

Architecture choices that cost more to run only make sense when they make the work meaningfully better at what it does. The four-agency architecture clears that bar. A single-brand version wouldn't.

The version of this business that consolidated into one brand would be larger by some measures and worse at the actual job. I don't think the trade is worth making. The four agencies stay four agencies for as long as the markets they serve continue to reward specialisation — which, on current evidence, is longer than the generalists betting against that thesis seem to think.