The Power of Networks: Why Relationships Still Drive Agency Growth 

While winning new business has always proven difficult for agencies, today’s competition for agencies is much greater. Additionally, decision-making executives have become more difficult to contact and traditional outbound marketing strategies continue to provide decreasing value. 

However, while there has been so much change in our industry, one of the greatest drivers of agency growth (referrals) still far outperforms all other areas. 

If you ask most agency leaders about where they get the majority of their “best” work, the response typically will be; People I already know and/or people that I am connected with through my network of known trusted contacts. This is no accident. The importance of relationship based growth has continued to grow in many ways as important as it was before. 

Why networks matter right now 

According to a recent study conducted by Sonnet, “67.4% of agencies are investing in developing strategic partnerships” a trend that is particularly relevant for white label agencies, where sustainable growth is often driven by long-term partner relationships rather than direct outbound sales. 

Partnerships, referrals, and shared opportunities all begin with one common theme: your network. 

You can be part of a network (as many are) and still not derive any benefits. Networks have power, but you receive back what you invest into them. 

Referrals don’t happen by accident 

Referrals have been called the “Holy Grail” of lead generation because they convert faster than most types of leads, close at a much higher rate and generally have high levels of trust with the decision maker when first engaged. 

There is however a false assumption made about referrals that they are something you either generate or do not generate. In reality, most referrals result from three main elements: 

• Visibility 

• Credibility 

• Participation (consistent) 

A network will provide the environment in which these three elements exist; but only if you are consistently showing up. 

It’s also worth calling out the other side of the coin: referrals are powerful, but relying on them alone can still create an inconsistent pipeline. That’s where a predictable sales process  becomes a smart complement to relationship-driven growth. 

Not all networks are the same 

The majority of agencies are part of multiple networks as well; however, the issue lies with determining which of these are worthy of investment — and effectively engaging with them to foster trust and create opportunity for potential deals. 

Four key networking channels that have shown consistent results when utilized properly are listed below. 

1. Quality trumps quantity in online networks.

LinkedIn may be the best known example of an online network but is often misunderstood as well. Many individuals use LinkedIn as a “numbers game” — as soon as someone sends a connection request, they accept; then measure their success based on how many followers they have. However, in reality, a small number of connected, and therefore relevant, contacts will typically produce better results than a large number of unconnected contacts. 

When considering who would view your next post, and whether it would even matter to them, is a good way to determine if your online network is strong. A typical strong LinkedIn network has a number of characteristics including: 

• Contacts were chosen and added intentionally, and not automatically. 

• Their connections/contacts have a shared interest, job title, or industry. 

• Both parties engage with each other (not just comment). 

• To improve your LinkedIn network, try the following: 

• Review your current network and posting practices. 

• Only add new contacts with relevance to you and/or your work. 

• Consistently interact with others’ posts — don’t just post your own. 

Use LinkedIn as a tool to connect professionally with others, and not just as a rolodex of contacts. 

2. Local Business Networks: Proximity Still Matters

While there’s been a shift toward working remotely, local business networks remain some of the best places to generate referrals and grow your network, especially for agencies. 

Local business networks can include groups such as the Sydney CBD Chamber of Commerce or CUB that connect business owners that live/work near one another, which creates a sense of familiarity among members. This similarity in location can facilitate creating trust. 

Some of the reasons why local networks are so valuable to agencies include: 

• Recurring in-person interactions. 

• Informal conversations outside of scheduled meetings. 

• Focusing on developing long-term relationships as opposed to simply promoting your services/pitching. 

One of the biggest mistakes agencies make regarding local business networks is waiting too long for them to start producing results. Consistency with these groups is key to building meaningful relationships. The longer you’ve built relationships within these groups, the more likely they’ll be to consider you when opportunities come up. 

3. Industry Specific Networks: Depth Over Breadth

Industry specific networks serve a unique function in growing your network. While they’re not meant to expose your agency to a wider audience, they do provide a level of focus, relevance, and peer-to-peer information exchange. 

Examples of industry specific networks in Australia include IMAA, which provides connections to senior agency professionals facing the same types of operational and financial challenges as you. Examples in the United States include Next NW. 

• The benefits of using industry specific networks include: 

• Creating strategic partnerships and collaborative opportunities. 

• Sharing knowledge and comparing benchmarks with other agencies. 

• Remaining aware of changes within your industry. 

Since all parties in the group understand the nuances and complexities of the industry, the discussions typically occur at a much higher velocity, and the relationships formed are usually stronger because of this. 

Agencies that benefit most from industry specific networks are those that actively contribute, rather than just passively consuming. Contributing through providing support, participating in panel discussions, sponsoring events, or other forms of contributing to the industry creates credibility for your agency more quickly than simply self-promoting. 

4. Industry News & Media: Stay Visible & Informed

Industry publications are often underutilized as a means of networking and maintaining your agency’s presence. Industry publications are critical components in helping maintain your agency’s visibility, reputation and awareness. 

Resources such as Mumbrella, in Australia, and Indie Agency News in the US, allow agencies to stay abreast of trends, developments, and conversations happening within their industry. Additionally, these resources provide avenues for your agency to: 

• Provide commentary on industry-related topics. 

• Offer thought leadership and opinions. 

• Remain in front of peers, competitors, and partners. 

By regularly engaging with industry media, your agency remains visible and continues to establish itself as a knowledgeable and credible entity within its industry — without coming across as overly promotional. 

Participation is the multiplier 

Across every type of network, the same rule applies: passive membership rarely delivers results. 

Simply paying a membership fee, joining a Slack group, or attending one event a year won’t move the needle. Networks work when participation is intentional and sustained. 

That might look like: 

• Attending events consistently 

• Making introductions without expecting anything in return 

• Sharing insights or resources openly 

• Following up and staying in touch 

Over time, these actions compound. Trust builds. Familiarity grows. And when someone needs a recommendation, your name comes up naturally. Regardless of which kind of network you’re in, the same holds true: passive membership almost never yields tangible results. 

Just having paid for a membership, joined a Slack community, or attended an annual meeting will get little done. Your participation must be purposeful and persistent for a network to produce results. 

• Participating consistently (i.e., going to events)  

• Making introductions with no expectation of receiving something in return  

• Sharing information (e.g., articles, research findings)  

• Follow-up and follow-through on connections made 

All of this can build trust and familiarity over time. When the right person is looking for recommendations for their business or project, your name may come up naturally. 

How to approach networks strategically 

Instead of casting your net far and wide to see where you’ll catch a few leads, it’s usually more productive to: 

• Find a smaller number of networks that serve your ideal client or partner base.  

• Contribute to those networks at a meaningful level.  

• Every year review what networks are yielding high quality referral and partnership opportunities. 

Networking is not a short term lead generation tactic; it is a long term asset for growing an agency. 

A practical takeaway 

If referrals are vital to your agency (and for many agencies they are), then you should dedicate some thought to networks as a strategy for growth. 

Ask yourself: 

• What networks do I participate in today?  

• Where am I adding value through my contribution and not just watching?  

• What would occur if I were to show up more regularly in one or two key areas? 

Networks have real, practical power. The fact that there is evidence supporting its effectiveness means that any agency that is committed to relationship-based growth has access to the benefits of networks. 

identifying what has been successful, and what may become unreliable. If this article made you think about something, feel free to forward it to someone in your network that could find value in it, or subscribe to the Sonnet eNewsletter for additional, practical ideas on how to build a healthy and consistent growth pattern for your agency.