Leverage AI for SMART Marketing Insights with Erik Huberman | Ep #640

How are you planning to leverage AI for marketing insights? Want to know the best tools to utilize artificial intelligence in your agency? For years, we’ve known AI would revolutionize marketing through real-time insights and automation. However, for it to provide accurate insights and recommendations, it needs a comprehensive understanding of how a company is performing in relation to the overall market. Today's guest knew this was where AI was moving towards and decided to jump to the challenge of building a platform that would best utilize these developments for agencies. He'll share his journey from identifying AI as the future for agencies to years of failed attempts at development and finally finding the ideal partner to build his vision. He also talks about what he looks for in an acquisition and how he deals with burnout. Erik Huberman is the founder of Hawke Media, an outsourced CMO and marketing team that customizes data-driven, performance solutions to help launch, scale, and invigorate businesses. Check out Erik’s previous interview, where he talked about setting financial goals, his marketing methodology, and his book, The Hawke Method.  In this episode, we’ll discuss: Learning to align systems to talent. Why he set out to leverage AI for marketing insights. Can agency owners avoid burnout?   Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Sponsors and Resources Agency Analytics: Today's episode of the Smart Agency Masterclass is sponsored by Agency Analytics, an automated client reporting solution for marketing agencies. Go to agencyanalytics.com/smart to sign up for a 14-day FREE trial and see how life feels on the other side of manual reporting madness. Podcast Takeover!! Get to know your Smart Agency Guest Host: Dr. Jeremy Weisz is the co-founder of Rise25, an agency that helps companies launch and run podcasts profitably. He followed Jason’s podcast and eventually joined the mastermind and has been a guest on the podcast before. Today, he’s helping Jason bring something new to the Smart Agency podcast audience by interviewing a special guest and getting a new perspective to the show.   Early Lessons on Aligning Systems to Talent to Boost Retention As an entrepreneur, Erik had started a few e-commerce companies and was unimpressed by the agencies he had worked with. He decided to form a small team that could assist his clients and quickly saw a positive response. Initially, he attracted people to work with him for a low base pay and a percentage of revenue. In his mind, the sky was the limit and any one of those workers could make a lot of money under that model. However, within six months most of them were gone. This is how he realized most people are not entrepreneurial and would rather have consistency over volatility. With this lesson learned, he pivoted to attract talent seeking consistency over shoot-the-moon potential. With the model adjusted, growth exploded and revenue was $1 million in their very first year. As expected, the growth percentage leveled off, but steady year-over-year expansion continued. Erik realized different motivations drive people. Some thrive on uncertainty, but most need security. Neither is right or wrong - smart leaders align systems to talent. Once he matched incentives to appetite, talent and growth flourished. Know your team and they'll drive you anywhere. Why You Should Stay Ready to Replace Irreplaceable Talent After starting several enterprises Erik learned you’ll always be hiring and rotating key roles. Would it be ideal to find the perfect person who will stay for the next 30 years? Of course! However, life happens so now he stays ready to perpetually replace irreplaceable talent. Except one - his strategist-turned-president partner. So far, he’s the only hire who came into the agency with an attitude of owning his work, treating it as more than just another job. He definitely earned the leap from employee to co-owner carrying that weight from day one. It’s a decision Erik definitely doesn’t regret. When it comes to building leaders, he has also learned the importance of dedicating more time to their training. “I used to just rush through meetings with my leaders,” he admits. Now he prefers to spend time in the weeds with them and collaborate, instead of just expecting them to solve any problem that may come up. Building a Platform to Leverage AI for Marketing Insights Seven years ago, Erik had a meeting with Marcus Shingles and Peter Diamantes. They talked about rapid disruption and got to wondering about what was going to disrupt marketing agencies and what they do. At the time, Marcus and Peter thought it would be freelancers. Erik disagreed and leaned more toward AI as a disrupting force. In his opinion, AI would first offer insights into an agency’s marketing channels to see what’s working and what’s not. At some point, instead of just telling you what wasn’t working, AI would also offer to fix it for you in real time. Their response to his predictions was “Well, why don’t you build that?” His company was young but he decided to jump at the challenge. Step one had to be data. He would need data from thousands of companies to educate an individual platform. Next, he focused on building a visualization platform that would do an automated audit to show companies how they’re performing and where they can do better. Six long years later, the platform vision was still incomplete. Three failed tech teams couldn't deliver. Then he was approached by a dashboard developer who had the missing puzzle piece. Erik had the data and team; they had the tech. A partnership was born. Although slow, their collaboration clicked - seamless negotiations gave way to immediate execution. Today, they have over 2,000 customers and growing. Why No Acquisition Should Move Forward Without the Right Culture Fit For acquisitions, Erik seeks agencies that complement Hawke Media's core. Geographic fills, service expansions, strategic bolt-ons - any over $1M revenue with scale potential. He loves founder-led shops where Hawke's infrastructure can partner to rapidly expand capable teams 8-9X in just a couple of years. However, without cultural alignment, even winners go nowhere. So beyond financials and operations, Erik probes for shared values and vision. With those locked in, holding back becomes impossible. They nourish talent and stoke significant growth. In the end, systems may stimulate but only engage humans who are able to innovate. That's why no acquisition moves forward without the right cultural fit. The rest can be learned, but passion and purpose must already live within. Can Agency Owners Avoid Burnout? Before this year, Erik never understood the talk about burnout. He had never experienced it. Now that he has, he can only say it’s inevitable, despite preparation and passion. Building a business is hard. Even someone like Mark Zuckerberg, who built one of the biggest companies of our generation, has to deal with stress and burnout. It won’t always be butterflies and rainbows. Add that to the stress of the state of the world and, overall, mental health is not great for most adults right now. Personally, he prefers to put things in perspective because stress can affect your ability to function in your everyday life. Does this really matter? Is it worth so much stress? Is it worth compromising his health for? Other than that, he makes sure to meditate and exercise and informs himself to understand the market. Being very aware of the shifts in the economy, how they have historically played out, and how you can prepare for hard times can really help reduce the fears that come with uncertainty. Do You Want to Transform Your Agency from a Liability to an Asset? If you want to be around amazing agency owners who can see what you may not be able to see and help you grow your agency, go to Agency Mastery 360.  Our agency growth program helps you take a 360-degree view of your agency and gain mastery of the 3 pillar systems (attract, convert, scale) so you can create predictability, wealth, and freedom.