Transition to a lean contractor model

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

What actually breaks an agency first, growth or the founder's inability to evolve with it? And at what point does hiring more people stop creating leverage… and start creating chaos? Today's featured guest dives into why he decided to close his first business, which he had grown to 22 employees, and start again solo. He needed to get away from the chaos of managing a large team, but what is the crucial mistake he can avoid if he ever wants to scale an agency team again? Beneath the tactics, it becomes clear that the role of a founder must grow if they want to build a business that doesn't collapse without them.

Chris Seminatori is the founder of Get Geofencing, an advanced digital marketing technique that helps small and large-scale enterprises meet their sales target effectively and efficiently.

Chris shared his journey from scaling a 20+ person operation in Beverly Hills to intentionally stepping away from team-heavy growth after experiencing the hidden cost: constant management chaos. He talks about the evolution of advertising, from geofencing to connected TV, and how emerging technologies like AI are reshaping both service delivery and agency efficiency.

In this episode, we'll discuss:

• The trap of hiring to grow

• What was the crucial mistake?

• Control vs. dependency

• What the Navy got right

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

This episode is brought to you by Wix Studio: If you're leveling up your team and your client experience, your site builder should keep up too. That's why successful agencies use Wix Studio — built to adapt the way your agency does: AI-powered site mapping, responsive design, flexible workflows, and scalable CMS tools so you spend less on plugins and more on growth. Ready to design faster and smarter? Go to wix.com/studio to get started.

Herringbone Digital: If you're thinking about exiting now, planning a few years ahead, or just want to understand your options, you should know about Herringbone Digital. They're not a typical financial buyer. They're operators who actually understand what it takes to build and scale an agency because they've done it themselves. Their approach is simple: invest in great founders, protect what's already working, and help agencies scale faster. Go to https://www.herringbonedigital.com/swenk and start the conversation.

The Trap: Hiring Only to Manage Chaos

Chris's first business followed a familiar trajectory: start small, gain traction, hire quickly, and scale to over 20 employees. On paper, it looked like success, but it quickly became unsustainable. Each hire introduced new variables—different expectations, skill levels, and problems—until Chris found himself spending his days putting out fires instead of building the business.

This is the inflection point many founders hit but don't anticipate. Growth creates complexity, and without structure, that complexity compounds. Instead of gaining leverage, Chris became the central node for every decision, issue, and escalation.

The deeper issue wasn't the team itself. It was the absence of systems, clarity, and leadership infrastructure. Without those, hiring just amplifies chaos. Chris ultimately shut the business down, not because it lacked demand, but because it lacked structure.

Why Most Founders Break When They Try to "Scale"

Like many founders, Chris operated intuitively and ended up hiring before systemization. The "system" lived in his head, from how to deliver, solve problems, and serve clients. When he brought others in, they lacked the context and frameworks to operate independently.

This created a loop: the team needed constant input, which pulled Chris deeper into operations, which prevented him from building the very systems that would free him. As a result, more hires led to more dependency, not less.

Founders often misdiagnose the problem as "needing better people," when the real constraint is a lack of documented processes and clear direction. Without those, even great hires require heavy management.

Scaling isn't about adding people. It's about reducing decision-making friction through structure. Without that, every new hire increases the founder's workload.

The Alternative Model: Control vs. Dependency

After shutting down his first agency, Chris rebuilt with a completely different model. This time it was lean, contractor-based, and highly controlled. This allowed him to maintain quality and ensure clients received the level of service he expected.

The upside is clear: consistency, control, and alignment with his vision. There's no dilution of standards, no miscommunication layers, and no dependency on internal managers. For a founder who values craftsmanship and direct client impact, this model works.

But the trade-off is equally clear. The business is entirely dependent on him. If Chris steps away, everything stops. Growth is capped by his capacity, and the business cannot function independently.

This is the other side of the spectrum: instead of chaos from too many people, it's constraint from too much centralization. Both models reveal the same underlying truth: the founder's role has not evolved.

The System Gap: What the Navy Got Right

Looking back, Chris wishes he had implemented some of his Navy experience into his management. For instance, the military operates on clear objectives, defined processes, and structured decision-making.

In that environment, the objective is explicit. Everyone understands the goal, the constraints, and their role in achieving it. Teams are encouraged to think and propose solutions, but within a defined framework. That balance creates both autonomy and alignment.

Chris recognizes that he failed to bring this structure into his agency. Without clear objectives and documented processes, his team couldn't operate independently. Every deviation required his intervention.

This highlights a critical shift: leadership is not about doing the work or even managing people, it's about designing systems that enable others to execute without constant oversight.

The Future of Advertising: Precision, Data, and AI

Chris also shares how his current agency is evolving alongside major shifts in advertising. Geofencing allows businesses to target users based on physical location, creating highly specific audience segments. Combined with connected TV (CTV), this enables precise ad delivery across devices, including household televisions.

Traditional mass advertising is being replaced by targeted, data-driven distribution. Agencies that understand how to leverage this can deliver stronger results with lower spend, increasing their value to clients.

Also layered on top of this is AI, which Chris used across the entire workflow, from creative development to campaign strategy. What once took hours or days can now be executed in minutes, often with better output.

But while these tools increase efficiency, they don't solve the core structural problem. AI can enhance execution, but it doesn't replace the need for systems, positioning, or leadership evolution.

The Real Constraint: Founder Dependency

Across both versions of Chris's business, the 22-person team and the lean solo model, the same constraint appears: the business relies entirely on the founder.

Whether that dependency comes from poor structure or intentional control, the outcome is the same: the business cannot grow or operate without the founder.

This is the core challenge most agency owners face. It's not hiring, lead generation, or even service delivery. It's the inability to transition from operator to architect.

Until that shift happens, every model, large team or solo, remains limited.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.