Acquiring Minds — "The Contrarian Bet on a Digital Agency"

Host: Will Smith
Guest: George Stern, owner of Growth Marketing Media
Date: January 19, 2026

Episode Overview

This episode of Acquiring Minds dives into the acquisition journey of George Stern, who made a contrarian bet by purchasing a fast-growing SEO agency (Growth Marketing Media) in the midst of massive industry uncertainty triggered by the rise of AI and changing consumer search habits. George unpacks why he believes there’s enduring value in search engine optimization, discusses his background in business turnarounds, and shares lessons on risk, due diligence, team dynamics, and navigating SBA loans for “airball” (asset-light) businesses.

Key Discussion Points & Insights

George’s Unconventional Background & First Turnaround Experience

• Non-Linear Path

  • George’s path includes stints as a teacher, elected official, law school grad, business consultant at McKinsey, and eventually a small business operator and acquirer.

    "I'm the background of someone who doesn't know what they want to be when they grow up." — George (05:52)

• First Deep Experience: Agency Turnaround

  • Took over a hemorrhaging Amazon seller agency for a friend; profit-sharing agreement.
  • Transformed it from -20% EBITDA to +50% EBITDA in seven months.
    • Key levers: Focus (attention), building a sales process, and right-sizing the team.

    "Our sales process was virtually non-existent...making sure our paid ads were dialed and we had someone to actually return the leads..." (09:31)
    "I needed to get the team to the right size for the amount of work we were doing." (09:31)

• Agency Exit & Next Steps

  • Promoted a team member to lead the agency; maintained legacy and moved on to acquisitions.

Early Acquisition Steps: Small "Starter" Businesses

• Ecommerce Entry

  • Bought two small ecommerce companies post-agency, funded with family cash after selling their Denver house and moving to rural Colorado.
  • Ran one actively (outdoor/camping gear, specifically rooftop tents), built proprietary products, and exited for a profit; the other remains a passive, mostly neglected but still profitable asset.

• Choice of Small Ball

  • Risk aversion, lack of prior buy-side experience, and a focus on learning in safe increments.

    "I had to sort of beat [risk aversion] out of myself through repetition and so bought those two because I didn't want to bankrupt my wife and me..." (23:51)

Perspectives on Ecommerce & Digital Businesses

• State of Ecommerce

  • Was wary of ecommerce as a category for new searchers, citing tighter margins, platform risk (especially Amazon), tariffs, and greater volatility than in 2021.

    "Ecommerce is not a place I tell friends to go running to right now." (18:20) "There are a lot of things that can upset ecommerce." (20:31)

• Importance of Customer Fit

  • Passion for the customer segment is key to George.

    “I need to love the customers...that’s why I poured so much time and attention into it.” (16:15/17:00)

The Search for a Larger Acquisition — and the Accidental SEO Agency Bet

• Shift Toward IRL (Physical) Businesses

  • After building confidence and capital, George sought a bigger, stable business—preferably brick-and-mortar in Western Colorado.

• Serendipitous Deal Flow

  • Despite intent to go IRL, George kept alerts active for online businesses, leading to the discovery of the SEO agency via Empire Flippers’ email.

    “My search was pretty accidental in getting me to where I ultimately ended up...” (27:01)

• Deal Criteria & Size

  • Sought to replace (upper) consulting or previous business-owner-level household income.
  • Target: Replace wife’s (ex-McKinsey) consulting salary with a business yielding comfortable six-figure SDE/owner income (above typical $150k search budget).

• Why Go Big?

  • Small businesses bring as many problems as big ones, but for less reward.

    "The number of problems you face in business is not at all correlated to the size of the business...I wanted to actually get more reward for the work I was putting into it..." (30:46)

The Agency: Growth Marketing Media

Agency Profile

• Focus: Home services (restoration, roofing, plumbing, remodeling); some clients outside the core (dentists, advisors, etc.).
• Niche Down = Growth: Founder broadened at first, but niching supercharged results.
• Size: Mid-seven-figure revenue, low-seven-figure profit; dramatic recent growth from late 2024 - 2025.
• Seller: Former owner was a Coloradan, still hands-on for sales, highly key-man dependent at acquisition.
• Team: Existing CEO and client services head, eventually promoted to CEO/COO.

Niche and Team as Differentiators

• Niche focus in home services enabled repeatable strategies and effective scaling.
• Strong local staff presence (Colorado), partially satisfying George’s desire for IRL/team interaction.

Navigating the "Platform Risk" in Digital

• Google (SEO) = Platform Risk

  • George saw the risks acutely, especially after experience with Amazon sellers losing their livelihoods overnight via platform decisions. However, he realized every business, including local services, is exposed to some macro or platform risk.

    “I just sort of came to embrace [platform risk].” (46:50)

• Client Demand Linked to Platform Change

  • Market volatility and constant Google/AI updates increase the need for agencies.

    “As annoying as it is...the more choppy it is out there on the digital platforms, it creates demand for your services.” — Will Smith (51:27)
    “No one understands how ranking on AI is working right now. But those of us who are getting to play with it for hundreds of clients a day are going to have a lot more insight...” — George (51:35)

The AI/ChatGPT "Bear Case" and Contrarian Bet

• Industry Headwinds
  • SEO’s future is uncertain as answer engines (AI, ChatGPT) eat away at Google’s dominance.
• George’s Thesis:
  • AI changes will roll out slowly due to the Lindy effect; Google (25+ yrs old) isn’t going away soon (see Lindy effect below).
  • Local searches (Google Maps, “businesses near me”) are stickier and less affected by ChatGPT so far.
  • Agencies with strong teams will be able to adapt—“AE0” (AI/Answer Engine Optimization) is emerging, and agencies can figure it out quicker than individual small businesses.

    "I feel an incumbent advant[age]...I've got a lot of clients to run this on each day and to get those results quickly." (52:57) “If you're looking for stable, 20-year income, probably not the one. If you want upside and aren't afraid of risk, it’s a good bet.” (61:37)

Key Quotes & Memorable Moments

On Loving the Customer

George: "The takeaway on this entrepreneurship path is I need to love the customers." (16:15/17:00)

On Small vs. Big Business Problems

George: "The number of problems you face in business is not at all correlated to the size...It's silly to swing small — you're going to work just as hard and get less reward." (30:46)

On Platform Risk and SEO Volatility

George: “There’s risk everywhere...If this were easy, we would not have to convince people that ETA is a good lifestyle.” (46:50) Will: “A home services business...can be just as vulnerable to an algorithm change as a pure SEO business.” (49:49)

On AI as Risk & Opportunity

George: "No one has mastered AI search...even if someone has figured it out, it will change tomorrow...There's real value in agencies, because we're daily retesting our theories." (52:17) Will: "It's a great point—the more choppy it is out there…the more it creates demand for your services." (51:27)

On the Lindy Effect

Will (explaining): “Things die a slower death than you think...If Google's been around 25 years, it’s bound to be around another 25 years.” (63:41) George: “First...the hype around ChatGPT far exceeds the reality...It's way less than people would guess.” (65:28)

On Acquirer Involvement & Empowering Teams

George: "You are not as essential as you think you are...empowering people is a much faster path to success." (94:49) George: "I might have misstated to say I would be in the way. I think I would slow us down..." (94:50)

On Team-Dependence and Churn Risks

George: "The churn...I was unaware of how much churn we were primed for...when you grow that fast...you're just going to start churning more revenue each month..." (71:09) George: "[The seller] was still selling and selling very successfully because he was the owner...He had never really done the work to create a training program or scripts..." (71:09)

Deal Mechanics: The Airball SBA Loan Process

• Agencies (“Airballs”) are Hard to Finance
  • 5 lenders screened; most rejected quickly—no assets, fast growth = risky.
  • Large, experienced SBA banks all said "no" or dragged feet.
  • Ultimately, a local Colorado bank (First Bank) got it done—46 days from LOI to close, despite widespread advice that only “big banks” can do complex SBA loans.

    "It was the regional bank that came through and did it faster than anyone believed possible." (86:21)

George’s Current Dilemma: Portfolio Builder or All-In Operator?

• The Fork in the Road
  • Enjoys the “deal” process (finding, negotiating, fixing, moving on) and variety; has the team to empower, but also recognizes the value of increased attention on the rapidly changing agency.
  • Leaning toward building a portfolio and empowering internal leaders.

    "Sometimes the best thing you can do for your business is to step away and let others do it even better or with more passion than you." (89:29)

Industry Experience: Overrated

"One of the things massively overhyped in this world is industry-specific experience...people who are problem solvers can figure out new things..." (101:32)

Timestamps for Important Segments

• [05:52] George's background and McKinsey to entrepreneur journey
• [09:31] Turnaround levers for first agency (-20% to +50% EBITDA in 7 months)
• [13:00] Experience with buying and running small “starter” ecommerce businesses
• [18:20] State of ecommerce for acquirers in 2024/2025
• [27:01] Accidental discovery of the SEO agency deal via Empire Flippers
• [33:26] Looking for a business big enough to meaningfully replace household income; “three factors” in target size
• [39:48] Agency details: size, explosive growth, niche, seller’s involvement
• [46:50] Platform risk: Google, SEO, and how it stacks up to local business macro risks
• [51:27] SEO churn creates more demand for agencies (“It creates demand for your services...”)
• [52:17] AI/ChatGPT contrarian bet mantras; "AEO" and the future of SEO
• [63:41] The Lindy effect applied to Google, SEO, and digital trends
• [71:09] Realities of churn and key-man risk on taking over the agency
• [83:03] The “airball” SBA loan process—banks’ rejections and overcoming with a local lender
• [89:29] Decision: Portfolio vs. focus; empowering the team vs. operator involvement
• [94:49] Hot take: Most owners overestimate their essentiality—empower the team

Conclusion & Key Takeaways

• George’s journey illustrates the power of steady risk-taking through experience, and the value of focusing on teams and customers rather than fixating on products or category.
• Buying an SEO agency in the AI era is risky, but potentially lucrative for those willing to skate toward where the puck is going, not just where it has been.
• The Lindy effect, team quality, and willingness to rethink received wisdom (e.g., about “big banks” being a must for tricky SBA loans) all played a major part in George’s story.
• Empowering teams and building systems, rather than micromanaging, is a scalable path—especially in fast-evolving environments.

Contact:
George invites listeners to connect via LinkedIn (caution: frequent posting!), where he’s active in entrepreneurial communities.

Listen / Subscribe:
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