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Four years ago, Luke Eggebraaten was generating about $8,000 in monthly recurring revenue and trying to determine whether his agency dream could become a sustainable business.
Today, Phaser Marketing generates more than $123,000 in monthly recurring revenue, serves approximately 80 clients, and employs a team of 21 people. Even more impressive, the agency achieved that growth by focusing on a niche many marketers would overlook: excavation, septic, and hardscaping companies.
For agency owners wondering how to scale a digital marketing agency without chasing every opportunity, Luke’s story offers a practical roadmap. His growth did not come from a secret funnel, a sudden viral moment, or a massive advertising budget. It came from narrowing the agency’s focus, building recurring revenue, showing up consistently, creating genuine relationships, and making disciplined hiring decisions.
Prefer to hear the full conversation? Watch the video below. Below, we break down the most useful lessons agency owners can apply to their own growth.
Start With Stability Before You Chase Scale
Luke officially launched Phaser Marketing in 2019 while continuing to work full-time.
His plan was simple: keep the security of a salary, build the agency on the side, and avoid paying himself from the business until it could support the transition.
That meant patience.
Luke did not take his first paycheck from the agency until August 2021, nearly two years after forming the company. That first paycheck was just $500 every two weeks, but it represented something bigger: the business had finally begun supporting its founder.
This early discipline gave Luke room to build without forcing the agency to produce immediate personal income. It also allowed him to reinvest in delivery, contractors, systems, and client relationships.
For agency owners, the lesson is not that everyone should wait two years to pay themselves. The lesson is that growth becomes harder when the company is under pressure to fund a lifestyle before it has built a reliable revenue base.
A stable foundation gives you the freedom to make better decisions.
Niche Down Farther Than Feels Comfortable
Like many new agencies, Phaser Marketing initially positioned itself as a digital marketing company for small businesses.
That broad positioning helped Luke win his first few clients, including a real estate company and an excavation business owned by a friend. But it did not give the agency a clear identity.
When coaches encouraged Luke to niche down, he first considered serving blue-collar businesses. That was still too broad.
Then he considered construction companies. Still too broad.
Eventually, the positioning became specific: digital marketing for excavation companies.
That decision changed the trajectory of the agency.
Today, Phaser Marketing works with roughly 80 clients across excavation, septic, and hardscaping. Instead of trying to appeal to every business owner, the agency became deeply relevant to one community.
Why a Narrow Niche Can Create More Growth
Many agency owners resist niching because they believe it limits the size of the market.
Luke’s experience suggests the opposite.
The more specific the agency became, the easier it was to:
- Understand the client’s business
- Speak the client’s language
- Build relevant case studies
- Create useful content
- Earn referrals
- Improve service delivery
- Become recognized as an industry authority
A narrow niche also made it easier for prospects to understand why Phaser Marketing was different.
“Digital marketing for small businesses” could describe thousands of agencies.
“Digital marketing for excavation companies” is memorable.
Specificity creates recognition. Recognition creates trust. Trust makes growth easier.
Be Willing to Let Misaligned Revenue Go
Niching down was not only a messaging exercise.
Phaser Marketing gradually moved away from clients that no longer fit its direction. Some clients chose to leave after seeing the agency reposition itself. A few project-based accounts were intentionally released because they drained the team and distracted from the company’s long-term vision.
Walking away from revenue is uncomfortable, especially when the business is still small.
However, not all revenue contributes equally to growth.
A client may generate income while also creating operational friction, pulling the team into unfamiliar work, or weakening the agency’s positioning.
Luke’s approach was measured rather than abrupt. The agency updated its website, announced its new direction, and allowed the transition to happen over time.
That matters. Strategic focus does not require careless client communication.
It requires clarity about where the agency is going and which relationships belong on that journey.
Replace Project Revenue With Monthly Recurring Revenue
One of the most important changes Phaser Marketing made was moving away from project work.
At one point, the agency was generating roughly $7,000 per month from projects. That revenue contributed heavily to profit, so eliminating it was not an easy decision.
Still, Luke saw the limitations of the project model.
Project revenue created a feast-or-famine cycle. The agency could have a strong month followed by a weak one. That unpredictability made it difficult to plan payroll, build a team, and create consistent delivery systems.
Phaser Marketing shifted to recurring programs instead.
A website was no longer sold as a one-time build. It became part of a monthly package that could include hosting, edits, SEO, and ongoing support.
The service did not necessarily become harder to buy. The agency simply changed the way it explained and packaged the value.
Today, the company generates approximately $123,000 in monthly recurring revenue and reports no project revenue.
Why Recurring Revenue Helps an Agency Scale
Monthly recurring revenue gives an agency greater visibility into the future.
It helps leadership estimate:
- How much revenue will arrive next month
- How many people the agency can afford to hire
- How much capacity the team needs
- Which services are profitable
- How quickly the company can reinvest
It also gives clients continuity. Rather than repeatedly approving disconnected projects, they have an ongoing team supporting their marketing.
The result is a more stable relationship for both sides.
Market Your Agency Like You Market Your Clients
Luke is direct about one point: marketing agencies should be able to market themselves.
In the early days, he used creativity and consistency rather than a large budget.
He gave away a television to create attention around the agency’s launch. He sold branded hats and included handwritten thank-you notes sealed with a custom wax stamp. He posted client visits, documented small wins, and made the company feel active even when it was still tiny.
These tactics were not sophisticated. That was part of their strength.
They gave people a reason to remember the agency.
Luke’s goal was not only to acquire clients. He wanted people in his community to know who he was, what he was building, and why it mattered.
That visibility created conversations, referrals, and early opportunities.
Build One Fan at a Time
One of Luke’s most useful ideas is to focus on building one fan at a time.
Fans do more than purchase a service. They talk about the business, refer others, share content, defend the brand, and extend grace when something goes wrong.
That kind of loyalty is difficult to automate.
A handwritten note takes longer than a templated email. A thoughtful message about a client’s family, anniversary, or business milestone requires attention. Showing up at a trade show requires time.
But those moments create relationships that competitors cannot easily copy.
Technology can improve efficiency. It should not remove the human element that makes an agency worth trusting.
Use Organic Content to Pre-Sell Prospects
As Phaser Marketing expanded within the excavation industry, Instagram became one of its most important acquisition channels.
Luke consistently followed relevant companies, interacted with their content, responded to stories, and started conversations without immediately trying to sell.
Instead of sending a pitch, he might ask how long the company had been in business or where it was located.
That small distinction changed the dynamic.
Prospects were not pushed into a sales conversation. They became familiar with Luke and the agency over time.
They saw:
- Client wins
- Team updates
- Behind-the-scenes moments
- Personal content
- Pricing information
- Industry insights
- Other respected companies working with the agency
By the time some prospects reached out, much of the trust-building process had already happened.
Luke estimates that Instagram and the agency’s podcast account for the large majority of its lead flow, with LinkedIn and newer paid social efforts contributing the rest.
Transparency Can Improve Lead Quality
Phaser Marketing publishes pricing on its website and social channels.
That may cause some prospects to decide the service is too expensive. It also helps serious buyers understand the investment before they schedule a call.
Over time, prospects see what the agency does, who it serves, and how the cost compares with hiring an internal employee.
This creates a more informed conversation.
The agency is not trying to convince every company to buy. It is allowing the right companies to recognize the fit.
Build Authority by Serving the Community
Phaser Marketing’s Dirtbag Podcast became a major part of its growth strategy.
Luke started the show with one of his earliest excavation clients. Importantly, the podcast was not designed as a weekly sales pitch.
Marketing represented only a small portion of the conversation.
The show focused on the issues excavation and construction business owners actually cared about, including:
- Cash flow
- Insurance
- Equipment
- Industry trends
- Moving from residential to commercial work
- Business growth
- Leadership
That approach made the content valuable even for listeners who were not ready to hire an agency.
The podcast now has more than 100 episodes and listeners across all 50 states and multiple countries.
The narrower the subject became, the more useful the show became to its intended audience.
A Podcast Can Support Acquisition and Retention
The podcast helped prospects become familiar with Luke before they spoke with him.
Some guests eventually became clients. Some listeners became clients after following the show for months. Others became supporters who referred the agency or strengthened its reputation within the industry.
The podcast also supported retention.
Luke noted that many existing clients listen regularly. That gives the agency an ongoing channel for sharing ideas, discussing industry changes, highlighting clients, and reinforcing the community around the brand.
Authority content is not only a lead-generation asset. It can deepen existing relationships.
Focus on Client Experience, Not Results Alone
Phaser Marketing aims for a client retention rate near 97%.
Results play an essential role in that performance, but Luke does not believe results tell the whole story.
He points to “perceived indifference” as a major reason clients leave agencies.
A client may churn because they do not feel heard, do not understand what is happening, or do not believe the agency cares about their goals.
That can happen even when work is being completed.
To reduce that risk, Phaser Marketing focuses on making clients feel understood, informed, and supported.
The agency combines two priorities:
- Deliver and measure meaningful marketing performance.
- Build a relationship in which the client feels valued.
Luke describes one of the agency’s core values as “measured excellence.” The goal is not to make unrealistic guarantees. The goal is to measure what the team is doing, connect the work to business impact, and adjust when something is not working.
That balance matters.
Good feelings cannot replace results. Results do not excuse poor communication.
Strong retention requires both.
Offboard Clients as Thoughtfully as You Onboard Them
One of the most memorable moments in the session came from a difficult client conversation.
A former client told Luke that the offboarding experience made him feel like “a bag of trash” thrown out of a window.
Luke did not dismiss the feedback.
He changed the agency’s approach.
Phaser Marketing now aims to bring the same care to offboarding that it brings to onboarding. Even when a relationship ends because the numbers no longer work, the client should leave feeling respected.
That mindset protects the agency’s reputation and reflects a deeper truth: a client relationship still has value even when it is no longer active.
Former clients may return, refer others, leave reviews, or continue supporting the business.
More importantly, treating people well is simply the right way to operate.
Scale With Contractors Before Building a Full-Time Team
Luke did not begin by hiring a large internal staff.
He built a contractor network through platforms such as Upwork and paid people based on the work available. A website developer might be paid per project. A designer might work only five or ten hours in a month.
This kept costs flexible and allowed the agency to deliver services Luke did not personally know how to perform.
At approximately $83,000 in monthly recurring revenue, the company still operated with Luke, one full-time employee, and a network of contractors and white label providers.
That lean structure helped the business remain debt-free while it grew.
Later, Phaser Marketing transitioned more work to a full-time team, gaining greater control and stronger profitability.
White Label Support Can Create Operating Leverage
Luke’s experience highlights an important option for agency owners who want to grow without building every department immediately.
A white label partner can provide specialized fulfillment while the agency focuses on positioning, sales, strategy, and client relationships.
That model can be especially valuable when the partner is able to communicate directly with clients under the agency’s brand and support the sales process.
The agency gains experienced delivery capacity without carrying the full cost and complexity of hiring every role internally.
For owners who want to spend more time working on the agency instead of remaining trapped inside daily fulfillment, the right partnership can create meaningful leverage.
How to Scale a Digital Marketing Agency One Focused Step at a Time
Luke’s growth may look dramatic when reduced to a headline: $8,000 to $123,000 per month in four years.
The process itself was much calmer.
He describes the company as focusing on one major initiative at a time, often for an entire quarter.
That discipline prevented the agency from chasing every new strategy at once.
The pattern was straightforward:
- Choose a niche
- Package recurring services
- Build authority
- Strengthen relationships
- Improve retention
- Add capacity carefully
- Repeat what works
There was no single tactic responsible for the result.
The growth came from a series of focused decisions compounded over time.
Key Takeaways for Agency Owners
Luke Eggebraaten’s story offers several practical lessons for anyone trying to scale a digital marketing agency:
- A narrow niche can create a larger opportunity by making the agency more relevant.
- Monthly recurring revenue provides the stability needed to hire, plan, and grow.
- Organic content works best when it builds familiarity before asking for a sale.
- Community-focused authority content can support acquisition and retention.
- Strong client relationships require more than campaign performance.
- Thoughtful offboarding protects trust and reputation.
- Contractors and white label partners can help an agency scale without premature overhead.
- Consistent focus beats scattered activity.
Perhaps the biggest lesson is that growth does not have to feel frantic.
Phaser Marketing scaled by staying focused, serving people well, and building one fan at a time. For agencies ready to increase capacity without giving up control of the client relationship, our white label digital marketing team can support fulfillment, assist with sales, and communicate directly with clients under your brand. That gives you more room to lead the business, strengthen relationships, and build the next stage of growth.
