Should You Start An Agency Or A Software Business? (Neil Patel's Contrarian View)

TL;DR

Neil Patel argues that while software is often considered more scalable and desirable for public markets, agencies can be equally or more attractive if you do not plan to go public and prioritize profitability and enjoyment. He built a nine-figure agency by hiring an experienced CEO from day one, investing $5M of his own capital, and capitalizing on high client demand.

Key insights

• Agencies are often dismissed as a poor business choice because they are services-heavy and require constant client management, but they can generate high revenue per employee if they focus on large, l
• Software businesses face their own severe problems: high customer churn, easy competitor undercutting due to falling building costs, and the need to constantly reinvent or improve the product.
• The headache of managing a large number of employees exists regardless of business type; at scale (thousands of employees), the difference between 5,000 and 20,000 people is marginal in terms of manag