What the top 10% of agencies are watching in 2025

Hey there,

Welcome back to Agency Finance Letters. This week I have a nice insight for you. 

This is something I found that over 90% of the agencies I speak with are completely unaware of. Yet it’s also what the top 10% are focused exclusively on…

If you want the real sauce, I went into more detail here plus I shared how one client of ours managed to add $45K/month by doing this (without signing a single new client). 

Watch it here:

Why You Should Pay Attention

In today's world of crazy-high acquisition costs and shrinking budgets, chasing new clients is getting harder.

Yet most agencies keep doing exactly that.

However, after studying 100+ top agencies like NP Digital and WPP's portfolio companies, I've found the elite ones are not just focused on acquisition (and also not just on “churn” alone).

They are thinking bigger than that.

They are focused on Net Revenue Retention (NRR).

• NRR shows if you're actually growing client value over time

• NRR exposes whether your services deliver real results

• NRR reveals if you're building something sustainable

• NRR predicts long-term agency health better than almost anything else

The Hidden Financial Drain

When your NRR sits below 100%, you're in trouble. You're constantly fighting just to stay in place:

1. Clients leave or spend less

2. You burn cash replacing that revenue

3. Your margins shrink

4. New clients start at lower value

5. Repeat forever

Meanwhile, agencies with 110%+ NRR grow automatically each month - WITHOUT spending more on acquisition.

The Money You're Leaving on the Table

Most agencies I see leave 15-30% of potential revenue untapped. That's money sitting right under your nose from clients who already trust you.

Why does this happen?

• No system for offering additional services

• Account managers focused on keeping clients, not growing them

• No clear path for clients to buy more from you

• Reactive support instead of proactive value-building

Turn NRR Into Your Growth Engine

Here's how to make NRR work for you:

1. Track it properly - I'll show you exactly how in the video

2. Spot growth opportunities - Look for clients hitting limits with current services

3. Create natural next steps - Make it obvious what service comes next

4. Make success plans - Map out clear value milestones

5. Shift account management - Move from problem-solving to value expansion

The agencies that nail this see 120%+ NRR - they grow by 20% yearly even without new clients.

In the youtube video above I explain exactly how you can calculate NRR and there’s a tracker you can use right away.

Till next week, Joey

P.S. NRR only works if your retention is solid. If you're losing clients, watch this video first where I show how we helped an agency cut churn in half: