As we head into 2026, one thing is clear: revenue is top of mind for agency leaders. In fact, conversations about topline growth now make up a significant share of what we discuss with clients across the agency landscape.
Whether you’re coming off a strong year and aiming for steady, incremental growth - or rebounding from a challenging 2025 - this is the moment to reset, refocus, and plan deliberately. What follows is a practical framework for thinking about revenue in 2026, grounded in fundamentals rather than optimism.
Most agencies begin their year with some version of a budget or forecast. The distinction matters: a budget is static, while a forecast is dynamic. Regardless of which you use, the real value comes from working backward from your revenue goal and asking a simple question:
What needs to be true for us to hit this number?
For most agencies, the majority of 2026 revenue will come from relationships you already have today. That’s why annual account planning is the foundation of any serious revenue strategy.
At its core, annual account planning answers three questions:
This exercise isn’t about complexity. It’s about focus. Your time - and your team’s time - is your most valuable asset. Annual account planning ensures that time is deployed where it has the highest probability of producing results.
One of the biggest risks in planning meetings is excessive optimism. Not because people are dishonest, but because human nature pushes us to overestimate our control and impress our peers.
Leaders should pressure-test assumptions:
When assumptions aren’t grounded in reality, problems don’t disappear - they’re simply deferred. And in revenue, outcomes lag effort by roughly a quarter. The later the bad news arrives, the harder it is to recover.
Once existing accounts are addressed, it’s time to talk about new business. The process should feel familiar: assign ownership, define expectations, and map effort to outcomes.
New business is inherently uncertain. You never know which conference, outreach, or campaign will work - only that the portfolio must produce a return on average.
A critical watch-out:
If more than 20% of your 2026 revenue target depends on new business, that’s a warning sign for most agencies. Exceptions exist - high-throughput agencies or firms investing heavily (10%+ of revenue) in sales and marketing - but for many, this level of dependence introduces significant risk.
Before investing further in new business, agency leaders must answer three questions clearly:
Many agencies struggle with the third question. Differentiation requires seeing your firm from the outside in - not the inside out. Without this clarity, new business efforts become inefficient, expensive, and frustrating.
Roles matter. Generally:
Founders, especially in sub-$10M agencies, cannot fully delegate revenue responsibility. If you can’t consistently attract and grow clients yourself, it’s unrealistic to expect someone else to solve that problem for you.
Even at scale, leadership remains closely involved in business development. This is true from small agencies to the largest professional services firms in the world.
Pipelines fail when accuracy fails. Overstated probabilities, outdated deals, and wishful thinking create instability - not just financially, but mentally.
A clean pipeline allows leaders to:
An ounce of caution here truly is worth a pound of regret.
As a rule of thumb, agencies should treat 10% of revenue as a ceiling for sales and marketing spend if they want to maintain healthy operating margins.
Spending more can make sense - but only with intention. The trade-off between growth and profitability must be explicit. The “Rule of 40” (growth rate + operating margin ≥ 40) remains a helpful benchmark for evaluating performance.
Hiring a salesperson isn’t a shortcut - it’s a bet.
Before making it, ask:
Sales outcomes take time. If patience isn’t available, the hire shouldn’t happen yet.
We’re entering a new business cycle. The conditions that made growth feel easy from 2014–2023 are fading. New technologies, talent models, buyer behavior, and competitive dynamics are reshaping the agency landscape.
This doesn’t eliminate opportunity - it raises the bar.
Agencies that succeed will be those willing to rethink who they are, how they create value, and how they earn trust. Because in professional services, trust remains the most durable growth engine there is.
Every client decision carries risk for the buyer. When agencies consistently earn and protect that trust, most other business problems become solvable.
As you plan for 2026, start with honesty, clarity, and discipline. The results will follow.
To listen to the full discussion Craig Baldwin, Partner at Upsourced, had on New Biz Bets, click below: