Episode 56: Stop Selling Services and Start Solving Million-Dollar Problems
Behind the Agency Podcast with Michael LaVista, Founder & CEO of Caxy
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Prefer the highlights? Key takeaways and summary below.
TL;DR – Key Takeaways
Most agencies lead with their capabilities. Michael learned to lead with the problem instead.
Caxy pivoted from offering "apps" to solving million-dollar inefficiencies, and started landing bigger deals.
The "bandwidth check-in" strategy with existing clients now drives 50%+ of growth.
Measuring outcomes and mapping problems back to real dollars changed the nature of their sales process.
Great customer experience is underrated, everything from invoices to delivery shapes loyalty.
Hiring got easier once they embraced tools like Innermetrix to map roles to aptitudes.
Mistakes like vague goals or junior hires owning AI innovation signal bigger mindset gaps.
Does This Sound Familiar?
Your deals sit between $50K and $150K, and they've sat there for years. The work is good and the clients are happy.
But you're still the vendor they call after the strategy got decided somewhere you weren't invited.
So every pitch turns into a comparison. Your rates against someone else's rates, your team against their team, your process against a deck. And nothing in that conversation is about what the problem is costing them.
Michael LaVista spent ten years selling services at Caxy and nobody cared. When he started leading with the problem instead, the default deal size went from $100K to $500K.
Caxy is 25 years old and has pivoted five or six times to get there. So this is a long arc, not a trick.
His best growth move costs nothing. It's a quarterly bandwidth check-in with clients he already has, where he asks whether they'd want his spare capacity or whether he should put it elsewhere.
That one question closes at 80 to 100%, and it now drives more than half of Caxy's new business.
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Meet the Guest
Michael LaVista is the Founder & CEO of Caxy, a software and AI consultancy that helps companies eliminate back office bottlenecks through smarter systems. What started as a side hustle making CD-ROMs evolved into a nimble, outcome-focused partner for growth-minded clients.
Episode Summary
1. From Musician to Founder
Michael's journey into tech wasn’t planned. He left a music career and stumbled into entrepreneurship with high school friends. After many pivots (and some CD-ROMs), Caxy became what it is today.
2. Why Services Sell Poorly (and Outcomes Sell Big)
"I spent 10 years offering services, and no one cared. When I started solving $10M problems, things changed."
Agencies often sell what they do (apps, branding, marketing). Caxy shifted to selling what clients want: outcomes. The "we help Fred copy/paste less" pitch was replaced with solving operational blockages worth millions.
3. The Simple Conversation That Drives Growth
Michael’s go-to move? Quarterly check-ins with existing clients:
"Hey, we're growing. If I had 1-3 people worth of bandwidth available, would you want them or should I put them elsewhere?"
It almost always surfaces new work.
4. Their Sales Framework
Get the numbers: Where are they today? Revenue, margins, blockers?
Define the vision: Where do they want to go in 3 years?
Identify the gap: What’s stopping that growth?
Dig into the impact: What happens if it isn’t fixed?
Then (and only then): Propose a solution.
5. Hiring Hacks
After years of instinctual hiring, Caxy now maps team fit using Innermetrix assessments. They know what patterns work best for PMs, developers, and leads—and use skill tests to validate fit.
6. Lessons from Growth Tactics That Flopped
Early AI offers flopped because they sold the tech, not the value.
Cold email, swag mailers, and ads all failed when the message missed.
The big unlock? Realizing, "Nobody cares about us. They care about their problem."
7. Mindset Myths Busted
"People think big companies only buy from big companies. But new tech levels the field. Smaller firms often do it better."
Michael also challenges the idea that interns should "do AI." His advice? Don’t put your most strategic opportunity in the least experienced hands.
Notable Quotes
"You don't need a sales team—you need client-facing strategists."
"When someone says no for the right reason, they come back."
"Our invoices didn’t reflect value. If I got them, I’d lose my mind."
"Agencies are in the hospitality business. Clients remember the experience."
Related Episodes
Ep. 12: Strategy Is the Only Thing That Cannot Be Commoditized
Ep. 2: You Cannot Sell Consulting and Implementation at the Same Time
Ep. 16: Your Agency Is Not Bad at Marketing. It Is Underfunding Growth.
Learn More / Get in Touch
Visit → https://caxy.com
Email → [Reach out via site]
LinkedIn → https://linkedin.com/in/michaellavista
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