The 4 Levels of Successful Networking for Agency Owners with Kurt Schmidt

Gray MacKenzie welcomes Kurt Schmidt to Agency Journey for a deep dive into business development through networking. Kurt is an agency founder, podcast host, author, and agency coach with 25 years of experience. He has built and run agencies, coached dozens of agency owners, and authored “The Little Book of Networking” and “The 10-10-10 Blueprint.” His approach to networking is methodical, generous, and built on genuine relationship building rather than transactional exchanges.

The Networking Success Pyramid

Kurt presents his Networking Success Pyramid - a four-level framework that builds from mindset at the foundation to growth and learning at the top. Each level supports the one above it, and skipping levels leads to the kind of superficial networking that agency owners find exhausting and unproductive.

The framework is practical rather than theoretical. Kurt has used it to generate multimillion-dollar projects from what he describes as “that little tiny sequence” of simple networking questions. The key is consistency and genuine intent - approaching every interaction with the goal of creating value rather than extracting it.

Level 1: Mindset - The Foundation

The first and most important level is mindset, which requires two fundamental shifts in how agency owners think about networking.

The first shift is from transactional networking to community building. Kurt puts it directly: “You’re kind of taught networking is a very transactional thing, but that’s not real networking. That’s not modern networking.” The old model - attend an event, hand out business cards, follow up with a pitch - does not work anymore. The new model is about building a community of people who trust you, refer you, and collaborate with you because you consistently add value.

The second shift is from showcasing capabilities to solving problems. Most agencies lead with their portfolio, their client list, or their deliverables. Kurt argues that none of that matters to a prospect. What matters is the story about how you transformed a business, how you helped a client solve a specific problem, and what the outcome was. When prospects hear a problem that mirrors their own, they lean in. When they see a logo wall, they scroll past.

Level 2: Relationships - Building Your Network

The second level focuses on building and nurturing connections through intentional outreach. Kurt recommends starting with an audit of your current and past clients. List every name regardless of how recently you worked together. Identify which ones are in growth stages where they might need additional services or where a check-in conversation could surface new opportunities.

Beyond existing clients, Kurt advocates building referral networks with complementary service providers. He uses the lawyer model as an example - specialists in one area routinely refer clients to trusted colleagues in adjacent areas, often with formal referral fee structures. Agencies can do the same thing. If you specialize in paid media, build relationships with agencies that handle SEO, web development, or branding. When a client needs something outside your scope, you refer them to a partner you trust - and vice versa.

Joining or creating mastermind groups with agency owners in adjacent industries is another tactic Kurt recommends. These groups create regular touchpoints, build trust over time, and generate referrals organically. The investment in time is modest compared to the pipeline value they produce.

Level 3: Value Creation - Becoming Indispensable

The third level is about actively creating value for your network. This goes beyond sharing content or making introductions - it means listening carefully to understand what your contacts and clients are struggling with and then offering relevant solutions, connections, or expertise.

Kurt shares a specific example of how he positions conversations: “What I’ll say is, oh, I just recently helped an agency decide on which project management software they should be upgrading to because they’re running a three and a half million dollar business on Basecamp right now.” That kind of specific, practical story communicates expertise far more effectively than a generic elevator pitch.

Providing generous referrals to trusted partners is also a core part of value creation. When you send good business to people in your network, they remember - and they reciprocate. Kurt describes this as a “rising tide lifts all boats” philosophy. The agencies that are known as connectors and problem-solvers attract opportunities that more self-focused agencies never see.

Level 4: Growth and Learning - Staying Sharp

The top of the pyramid is continuous growth and learning. Kurt specifically recommends learning from professional services industries beyond digital marketing. Lawyers, accountants, and management consultants have been refining their business development and client management approaches for decades. Agency owners who only learn from other agency owners are missing proven strategies.

This level also includes exploring alternative billing models. Productized services, retainer-based pricing, and value-based fees all offer paths to higher per-client revenue than traditional hourly billing. Kurt encourages agency owners to experiment with these models and track the results.

Staying current on emerging trends and technologies is the final element. Clients expect their agency partners to be forward-thinking. When you can speak credibly about what is coming next in your industry, you position yourself as a strategic advisor rather than a vendor.

Resources Mentioned

• Kurt Schmidt on LinkedIn - Agency Founder & Coach
• Kurt Schmidt’s Website
• Schmidt Consulting Group
• Foundry - Kurt’s agency
• “The Little Book of Networking” by Kurt Schmidt - Available on Amazon
• “The 10-10-10 Blueprint” by Kurt Schmidt - Available on Amazon
• Schmidt List Podcast on Apple Podcasts