XenoPsi Restructures to Create Two Business Units and Wins Lunazul Tequila

By The Chicago Egotist / May 26, 2022 /

As agencies struggle to be relevant and profitable, one agency has flipped the standard model of hourly billing to a shared risk relationship. Capitalizing on its growth and the growth of its clients,   XenoPsi, which is distinguished as a ‘skin in the game’ growth partner for digital-first brands, is relaunching into two distinct companies that better address the client needs brought on by its recent rapid growth. The new companies will focus primarily on brands in the D2C and CPG markets.

One of the new entities is Method1. It is being established as a digital-first creator of marketing systems that utilize behavioral science and creativity to develop campaigns that elevate brand preference and accelerate business growth for its clients. It was recently named agency of record for Lunazul Tequila after a competitive review.

Meanwhile, the second entity – Function Growth – will focus on providing strategic guidance and advice to start-up companies and entrepreneurs, advising senior leadership on strategic decision-making as a growth acceleration partner. Function Growth embeds its leadership into client brands to deliver true partnership in marketing.

Formerly, both practices were part of a single XenoPsi offering. The new individual entities are being created to address the needs of clients with specific go-to-market needs. Function Growth will work with brand and company owners seeing fast turnaround work while Method¹ will work on more traditional marketing and advertising engagements. 

XenoPsi founder MichaelAaron Flicker said, “We have installed proven leaders, and full leadership teams, in both of these companies to better position them to help their client partners grow even faster and to ensure they keep pace with the rapid evolution of their disciplines.  True to XenoPsi’s business heritage, Function Growth and Method¹ will share risks and rewards as real partners with their clients while delivering laser-focused category knowledge and a granular understanding of their respective markets.“

Function Growth and Method1 will maintain XenoPsi’s core operating philosophy of aligning their financial interests with their clients’ though innovative and varied remuneration models. These range from equity and revenue-shares, to an in-house venture arm that invests in startups that Function Growth develops and brings to market, making XenoPsi unique in the advertising and marketing landscape.

Management for the two new companies is already in house. Kyle Hoffman, who joined XenoPsi last year, will oversee Function Growth’s staff of 30 growth consultants as Director of Growth Strategy. Inaugural growth partners clients include Shady Rays, Wellow, Benchmark Insights and Solvasa Beauty. 

Paul Nelson, who recently joined the company from Arnold Worldwide, will oversee the Method¹ team of 50 as Managing Director. Legacy clients include Evan Williams Bourbon, Elijah Criaig, Blackheart, Larceny Bourbon, Heaven Hill Distillery, DoubleVerify, Lubert Adler Real Estate Funds, and Versa Capital Partners in addition to new client Lunazul.

Flicker will assume the title of Founder and President of both companies. XenoPsi continues to oversee investments and will support both companies by assuming management of shared back-office functions such as business strategy, information technology and talent management.