Agency Journey

How SmashBrand Gets Clients a 40x ROI with Kevin Smith

· with Kevin Smith , Founder at SmashBrand

Key Takeaways

  • Narrowing your agency's focus to a specific niche creates long-term growth that generalist positioning cannot match
  • Performance-based guarantees backed by data remove buyer risk and accelerate client acquisition
  • Use prospect theory to your advantage - data provides certainty that eliminates the subjectivity clients fear
  • Strong differentiation and positioning can generate enough inbound leads to eliminate the need for outbound sales
  • Outcome-based pricing aligns your incentives with client results and supports premium fees
  • Pattern recognition is a growth skill - the more clients you serve in a niche, the faster you spot winning strategies
  • Co-founders should play to their individual strengths rather than splitting responsibilities evenly

Gray MacKenzie is joined by Kevin Smith, founder of SmashBrand, a package design and branding agency that works with major CPG brands including G Fuel, Duracell, and 7-Eleven. Kevin shares how SmashBrand evolved from a lifestyle business into a specialty agency that delivers measurable ROI for clients - and how data-driven creative, sharp positioning, and performance guarantees fuel their growth.

From Lifestyle Business to Specialty Agency

SmashBrand did not start as the focused, data-driven agency it is today. Kevin describes the early years as a lifestyle business - taking on a wide range of branding and design work without a clear specialization. The turning point came when he and co-founder Michael Keplinger recognized that narrowing their focus would create a stronger competitive position than trying to serve everyone.

They chose to specialize in CPG package design, a decision driven by their own experience as CPG brand owners. Having operated brands that were globally distributed, they understood the industry’s pain points from the inside. That firsthand knowledge became a powerful differentiator because prospects immediately recognized that SmashBrand understood their world in a way generalist design agencies could not.

The narrower focus also accelerated SmashBrand’s ability to spot patterns. When every client operates in the same industry, the team builds deep expertise quickly. They start recognizing what works and what does not across categories, and that pattern recognition compounds over time into a significant competitive advantage.

Differentiation That Eliminates Outbound Sales

One of the most striking aspects of SmashBrand’s growth is that they generate enough inbound leads to operate without outbound sales. Kevin attributes this to two factors: differentiation and positioning.

Differentiation comes from their data-driven approach. While most design agencies rely on subjective creative judgment, SmashBrand integrates consumer focus group testing into their process. Every design recommendation is backed by data showing how real consumers respond. This approach removes the guesswork that makes clients nervous about investing in a rebrand or new package design.

Positioning comes from clearly communicating that differentiation to the market. SmashBrand does not describe themselves as a design agency - they describe themselves as a brand development agency that uses data to drive measurable sales outcomes. That positioning attracts clients who care about results, not just aesthetics, and it repels clients who are shopping purely on price.

The Power of Performance-Based Guarantees

Kevin discusses how performance-based guarantees transformed SmashBrand’s sales process. By offering guarantees tied to specific outcomes - like increased shelf performance based on consumer testing data - they remove the risk that typically makes prospects hesitate.

The key insight is rooted in prospect theory: subjectivity equals risk in the buyer’s mind, while data equals certainty. When a prospect is choosing between a design agency that says “trust our creative instincts” and one that says “here is the data showing this design will outperform your current packaging,” the data-backed option feels dramatically safer. That feeling of safety is what allows SmashBrand to close deals without aggressive sales tactics.

Performance guarantees also create a positive feedback loop. When clients achieve strong results, they become enthusiastic referral sources. And because the guarantee is backed by a rigorous testing process rather than blind optimism, SmashBrand can offer it confidently knowing their methodology produces consistent outcomes.

Outcome-Based Pricing

Rather than pricing projects based on hours or deliverables, SmashBrand uses outcome-based pricing that ties fees to the value they create for clients. When a package redesign drives measurable increases in sales velocity, the investment becomes easy to justify - even at premium price points.

Kevin walks through why this approach works better than traditional agency pricing. Hourly billing creates a misalignment where the agency is incentivized to spend more time while the client wants faster results. Outcome-based pricing aligns both parties around the same goal: achieving the best possible result as efficiently as possible.

The 40x ROI figure in the episode title is not hypothetical. SmashBrand tracks client outcomes after engagements, and the data consistently shows returns that justify their premium pricing. This data also becomes powerful marketing content, creating a self-reinforcing cycle of proof, trust, and new business.

Co-Founder Dynamics and Scaling Through Chaos

Kevin shares candid insights about the co-founder relationship and how he and Michael Keplinger navigate the chaos that comes with scaling an agency. Rather than splitting responsibilities 50/50 across all areas, they identified each other’s strengths and divided ownership accordingly. This clarity of roles reduces friction and ensures that each area of the business has a decisive leader.

He also addresses the reality that scaling is messy. There are periods where systems break, team members are stretched thin, and the founders feel pulled in too many directions. Kevin’s advice is to accept that chaos as a natural part of growth rather than a sign that something is fundamentally wrong. The goal is not to eliminate chaos - it is to build systems that help you move through it faster each time.

Resources Mentioned

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