The Agency Leverage Framework
Use agencies to learn skills fast, not to become dependent on them
Hormozi's Agency Leverage Framework flips the traditional agency relationship on its head. Instead of hiring agencies to do advertising forever (which creates dependency), he hires them to TEACH his team how to do it. The pitch: 'I want to work with you for 6 months so I can learn how you do it. I'll pay extra for you to explain your decisions. Then I'll train my team, and we'll switch to a lower-cost consulting arrangement.'
The framework has a natural progression: hire a 'good enough' agency to learn the ropes, then hire an elite agency to learn how to maximize results. Compare your team's results to the agency's until your team consistently wins, then cancel and invest the savings into scaling what you learned.
Hormozi spent $6,000 across eight one-hour sessions to learn Facebook ads from an agency owner. That skill has made him millions. Every subsequent agency relationship followed the same pattern: learn, train team, outperform, transition to consulting, then cut loose.
- Use agencies to invest in skills you can keep forever, not to outsource work you'll always need done.
- Your team gets better over time because they focus on you full-time, while agencies split attention across clients.
- Start every agency relationship with a purpose AND a deadline.
- Hire one 'good enough' agency to learn the ropes, then one elite agency to maximize results.
- All good agencies are expensive — but not all expensive agencies are good.
- Decide If an Agency Makes Sense Right NowIf you have no money, learn through trial and error — agencies are out of the question. If you have money and want to learn a new method or platform, an agency can shortcut years of trial and error.
- Set Terms with a Purpose and DeadlineTell the agency upfront: you want to learn what they do, you'll pay extra for explanations, and after 6 months you'll transition to consulting. Most agencies accept this. If one doesn't, move on to the next.Pro tipBe willing to negotiate — at some price, it's worth it for both of you.
- Learn and Train Your Team SimultaneouslyWhile the agency works, have your team shadow and learn. Document everything. Apply the 3Ds (Document, Demonstrate, Duplicate) to transfer the agency's skills to your team.Pro tipRecord calls and sessions with the agency. Rewatch them to catch what you missed.WarningBudget for overlap — you'll pay the agency AND your team simultaneously during the learning period.
- Compare Results Until Your Team WinsRun your team's efforts alongside the agency's. Track results for both. When your team consistently beats the agency, transition to consulting-only at a reduced rate.Pro tipIt used to take Hormozi a year to get his team better than an agency. Now he can do it in six months or less.
- Transition to Consulting, Then Cut LooseSwitch to a lower-cost consulting arrangement where the agency helps if you run into problems. Stay in consulting until you feel like you're teaching them instead of them teaching you — then end the relationship.
Unable to afford traditional agency services with his low gym margins, Hormozi asked an agency owner to teach him for $750/hour. Over eight sessions ($6,000 total), the first two were observational, sessions 3-4 put Hormozi in the driver's seat, and by sessions 7-8 he no longer needed help.
When Hormozi wanted to learn YouTube, he hired two agencies simultaneously: one 'good enough' agency to keep him committed and do platform legwork, and a second elite agency at 4x the price to teach deep content strategy. Once his team's videos outperformed the agencies' videos, he dropped to consulting only.
Hormozi's first agency experience was born from desperation — he couldn't afford to hire an agency traditionally, so he asked one to teach him instead for $750/hour. Eight sessions later, he could run Facebook ads like a pro. After spending over 10 subsequent agency relationships following the traditional model (and watching results suffer every time his senior rep moved to a new client), he realized his first experience — using the agency as a teacher — was the right approach all along.