The Biggest Sales Mistakes Creative Agencies Make (and How to Avoid Them)

June 26

If you're a creative agency owner struggling to build a reliable pipeline, you're not alone. At Upsourced, we work with over 125 agencies, and sales is the one topic that keeps surfacing—especially for those moving from "build mode" to "grow mode." On a recent episode of the Creative Outcomes podcast, we (Craig Baldwin and Meredith Pickrell) dug into what high-performing agencies are doing right when it comes to sales—and what you need to know before making that first (or next) sales hire.

Here are the key takeaways.

 

1. Sales Success Isn’t Just About Hiring a Closer

Hiring a sales rep too early—or expecting them to solve your revenue woes overnight—is a mistake we see time and time again. The truth? If you’re running an agency under $10M, you, the founder, need to own the sales function.

Why? Because no one understands your service offering, value proposition, and ideal client like you do. Founders who consistently invest time in building relationships and managing revenue targets tend to build more resilient businesses.

 

2. Account Management Is the Real Growth Engine

The best-performing agencies in our portfolio don’t just chase new leads—they focus on expanding existing accounts. A healthy revenue target? Aim for 70% of your annual revenue to come from current clients, and 30% from new logos.

Many agencies flip that equation, especially those doing project-based work. While you can make that model work, it’s tough—it requires a high volume of sales activity and a very dialed-in marketing engine.

 

3. Understand the Difference Between Marketing and Sales

Too many creative agency owners confuse marketing with sales—and overinvest in the former. Marketing can build awareness and generate leads, but someone still has to qualify those leads, make the pitch, and close the deal. That’s sales.

In most agencies, especially sub-$10M firms, the founder should still be that someone.

Here’s a good rule of thumb: If your total sales and marketing spend exceeds 10% of revenue and you’re still not hitting growth goals, something is off. And if you’re spending 6% or less, you’re probably underinvesting.

 

4. Commission-Only Sales Roles Usually Don’t Work

If you’re tempted to bring on a salesperson on a commission-only basis, be careful. Service-based businesses don't typically generate enough volume to make that model work. Misaligned incentives, poor client fit, and low motivation are common outcomes.

The right time to bring on a full-time sales hire (with a solid comp plan) is usually when your agency hits around $8–10M in revenue. Before that, focus on creating a repeatable sales process, and track pipeline velocity (new conversations, qualified leads, proposals). That will tell you what’s working—and what’s not.

 

5. Sales Is a Long Game—Give It Time

Effort in Q1 shows up as results in Q2. Sales activities often take three months or more to turn into revenue. So if you’re launching a campaign, hiring a PR firm, or attending events, be patient. Cutting your spend after 9 months because “nothing’s worked” is the most common mistake we see.

Think of sales as planting seeds. You won’t see results immediately, but with consistent effort and a clear strategy, the payoff will come.

 

Final Thought: Sales Is Not Optional

The most successful agencies we work with treat sales and marketing as mission-critical, not as “nice-to-have” investments that get cut when budgets get tight. Whether you’re closing new logos or growing existing accounts, your commitment to revenue generation needs to be relentless.

So if you’re feeling stuck, don’t jump straight to hiring a “magic bullet” salesperson. Instead, take a look in the mirror, own the revenue number, build a plan, and get to work. Sales starts with you.

 

For more, listen to the full Creative Outcomes episode and subscribe to our channel for weekly insights:

 

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