Guest: Harry Sanders
Harry Sanders built StudioHawk from homelessness into a 70-person SEO agency with offices in Australia, the UK, and the US, without taking outside investment.
On this episode of the Agency Growth Club, he breaks down the three-year growth plateau that nearly stalled the business, the eight-person “pod” structure that fixed it, why he takes a profit hit rather than cut headcount in a downturn, and the hiring rubric StudioHawk uses to protect its culture while scaling.
Sanders points to a stage most agency owners don’t talk about publicly: the three-year mark. In an agency’s first year, new client acquisition typically outpaces churn, the clients are new, the relationship is new, and there’s little reason for them to leave. By year three or four, that dynamic reverses.
“Around that three-year mark, you start having natural attrition. Clients aren’t necessarily always going to be with you forever. You could be the best company in the world, and clients will still leave, new marketing manager, new direction, they want to try someone else.”
For the first time, an agency can find itself churning more than it’s signing, a shift Sanders describes as genuinely stressful for teams used to a growth-only environment.
StudioHawk had run a flat structure through its early growth, which worked while the business was small. At the three-year mark, that same structure became the problem: too many people, including SEO specialists, were making business decisions they weren’t equipped to make.
The fix was creating dedicated roles and departments, including a defined head of sales and head of retention function. Sanders is direct that most agencies never make this shift, and stagnate as a result.
Actionable advice:
StudioHawk runs delivery through “pods” capped at eight people, Sanders’ reasoning is functional, not aesthetic: beyond eight direct reports, a team stops being able to build real camaraderie. Each pod has its own name and identity (Sydney, Melbourne, London, and now US teams), which he treats as a deliberate retention lever, not a branding exercise.
Pod leaders stay on billable work rather than moving to pure management, Sanders’ view is that a team leader who isn’t in the delivery trenches with their team loses credibility fast. Leaders are measured on team performance and report into a Head of Operations, whose job is to remove friction so pods can do more billable work, not to add process for its own sake.
Actionable advice:
As a professional services business charging monthly recurring fees, StudioHawk avoids the lumpy cash flow of project-based agencies, new work is resourced against revenue that’s already committed, not revenue still being chased.
Downturns are a different problem. Sanders’ rule: he takes the hit on profitability rather than protect margin. In the last year, StudioHawk added roughly $3–4 million in Australian revenue, but profitability dropped enough that total profit landed close to flat year-on-year.
“That’s a hit that I take, and that’s good that I don’t have any investors, that we’re independent, so that I can do that.”
The logic: a downturn is when new systems and processes get built, funded by margin instead of headcount cuts, on the expectation that the investment pays off over the following two to three years.
Actionable advice:
Sanders is candid that hiring mistakes are inevitable and ongoing, the discipline is in removing a bad fit fast, since a low performer resets the standard everyone else measures themselves against.
StudioHawk’s rubric filters candidates into two camps. “Too cool for school” candidates lead with ego, jargon-heavy claims that sound impressive but wouldn’t move the needle for a client, and are screened out regardless of technical skill. The candidates StudioHawk hires for are what Sanders calls “wholesome nerds”: genuinely enthusiastic about something, supportive of teammates, with no one positioned as bigger than the team.
“We’re not a party culture. We’re looking to attract people that want strong career growth” — reinforced by a dedicated learning and development function.
Actionable advice:
Sanders’ position: good culture isn’t accidental past a certain size, it has to be deliberately designed and reinforced from the top as the team grows. StudioHawk’s positioning as a career-growth culture rather than a “big parties” culture is a conscious trade-off, aimed at attracting a specific kind of candidate rather than the widest possible pool.
Sanders traces a growth plateau to a period where he was reluctant to make necessary personnel calls at the management level. The turning point came from an MIT course exercise: imagine you were hired as an outside consultant to run this business, would you hire the person currently in charge, even if it’s you?
“I realized one of the biggest bottlenecks in the business was me. I don’t like people management, setting budgets, or going through KPIs. That’s the role of a CEO. So I put my ego aside and realized there was a better person for this job.”
Sanders moved into a founder/board-level role focused on strategic direction, and appointed Lawrence as General Manager of Australia. He credits the change with a marked improvement in both retention and sales performance, driven by having dedicated owners for each function rather than a generalist structure.
Actionable advice:
Sanders points to Lawrence and Anthony, StudioHawk’s Australia and UK leads, as examples of promoting from within rather than always hiring leadership externally. He frames this through “transformational leadership”: investing in people’s growth in a way that changes their trajectory, not just directing their day-to-day work. Both now hold equity stakes in their respective entities.
StudioHawk generated close to $500K in US revenue within its first two months after opening in Atlanta, a figure Sanders is careful to frame with context rather than as an isolated headline. The result rests on reputation and existing relationships built over StudioHawk’s UK and Australian history, not a specific paid acquisition strategy.
His advice to agencies considering expansion: choose a market based on business fit, not prestige. StudioHawk chose Atlanta over the more obvious choice of New York, based on what served the business rather than what “looked” like the right city to expand into.
Sanders ties his drive back to his own path out of homelessness and the impact he’s seen on people like Lawrence and Anthony. StudioHawk supports youth homelessness initiatives as a result. His framing: the measure that matters is who shows up for you, not what you’ve accumulated, a lens he says keeps day-to-day decisions grounded.

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It’s the point, typically three to four years in, where natural client attrition starts to outpace new client acquisition for the first time. Agencies that scaled with a flat structure often stall here, according to StudioHawk founder Harry Sanders, unless they build dedicated sales and retention functions.
A pod system organizes delivery staff into teams capped at around eight people, each with a defined identity. StudioHawk uses this structure because teams larger than eight direct reports struggle to build genuine camaraderie, according to founder Harry Sanders.
Sanders has kept StudioHawk independent so he can choose to absorb a profitability hit during downturns — investing in systems and processes — without answering to investors who might prioritize protecting margin instead.
StudioHawk opened in Atlanta and generated close to $500K in US revenue within two months, built on the agency’s existing UK and Australian reputation and industry relationships rather than a specific paid client acquisition campaign.
Sanders identified himself as a bottleneck in people management, budgeting, and KPIs — tasks he says don’t suit him. He moved into a founder/strategic role and appointed a General Manager for Australia, which he credits with improving both retention and sales performance.
StudioHawk screens out “too cool for school” candidates — those who lead with ego or jargon — in favor of “wholesome nerds”: people who are genuinely enthusiastic, supportive of teammates, and focused on career growth over agency-party culture.
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