How To Start A Digital Marketing Agency? – [Read This Guide]

The prospects for creating a digital marketing agency 20 years ago were slim, as the field of digital marketing was in its infancy at the time. The potential for growth and success was likely significant, but the limited digital framework made it a daunting task.

However, the chances of creating a digital marketing agency today are likely to be very good, as it has become an increasingly important part of any business’s marketing strategy.

With more and more people using the internet, (an average of 5-6 hours daily), and digital technologies to connect with businesses, the demand for effective digital marketing services is high. There is a growing need for expertise in this area.

Additionally, the increasing competition in the market means that businesses are looking for specialized, high-quality digital marketing services, which presents an opportunity for a well-run agency to succeed.

The purpose of this guide is to make this journey somewhat easy for you on how to start a marketing agency. Because I believe that, with correct guidance, effort, determination, and hard work, you can achieve anything.

Things To Know If Starting A Digital Marketing Agency

There are a few key things to consider if you are starting a digital marketing agency. First, you will need to have a strong understanding of digital marketing techniques and strategies, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, content marketing, and email marketing.

It’s also important to have a solid business plan in place, including a clear understanding of your target market and how you plan to differentiate yourself from competitors. You will also need to establish a budget and identify potential clients or partners.

Finally, it’s crucial to stay up-to-date with the latest industry trends and best practices to provide the most effective services to your clients.

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Is digital marketing a good option?

Well, if you are bothered by the above question then, I suggest you go through these features carefully:

Now that you are convinced about starting one. Here’s presenting some of the important things that you need to know to start a digital marketing agency.

Focus on Acquiring Digital Marketing Skills

The first and the most vital step to starting your digital marketing agency is the need to develop the skills required for this business.

Digital marketing skills are important because they can help you effectively promote your business or organization online. With the rise of the internet and social media, having a strong digital presence has become essential for success in many industries.

The three most important digital marketing skills anyone can have, are:

  • The ability to create and promote engaging content: This includes writing compelling copy, producing high-quality videos and images, designing ads, and using marketing tools such as email and social media to share your content with your target audience.
  • The ability to use data and analytics to improve your marketing efforts: This includes the ability to collect and analyze data on your audience and their behavior, as well as the ability to use this information to make informed decisions about your marketing strategy.
  • The ability to adapt to changing technologies and trends: Digital marketing is an ever-evolving field, so it’s important to be able to stay up-to-date with the latest technologies, trends, and updates and to be able to adapt your marketing efforts accordingly.

There are numerous other skills that you have to focus on. Digital marketing alone has a lot of areas of interest. There’s SEO, social media, Content, Email -marketing, and Google advertising. You can avail of online courses to gain expertise in these areas. Or you can always consider working for a marketing firm for a while.

Industry/company experience can play a vital role in the development of future marketing professionals. Learning the nuances of a company setting helps you get a hands-on understanding of the tools, and software involved, and more importantly dealing with various clients with different demands and goals.

Business skills will not require you to have specific technical knowledge. However, having basic skills like management of time, the responsibilities of an HR, knowing invoicing & billing, etc are part of the process. While you make use of these skills, you should also focus on building relationships.

Some of the key benefits of building valuable relationships include:

  • Strong relationships can help improve communication and collaboration, which can lead to better teamwork and more successful outcomes.
  • Building valuable relationships can also help enhance your reputation and credibility, which can be beneficial for your personal and professional reputation.
  • Strong relationships can also open up opportunities for growth and development, such as access to new networks and resources, and the ability to learn from others.

Apart from that, you need to have confidence in yourself. Remember, even Mark Zuckerberg was once an amateur.

Coming Up With The Right Business Model

You need to come up with a well-thought-out business model to set yourself up for long-term success. It is indeed the most challenging aspect of building a marketing agency from the ground up.

Business model

You need to determine the type of digital marketing agency you are going for, the strategy you are going to employ, the services you will offer, and finally how you are going to set up the billing.

Type Of Agency

  • Full-service agency: In this model, your agency offers a range of marketing services, such as advertising, branding, public relations, and digital marketing. You may work with a team of specialists to provide these services to your clients.
  • Boutique agency: In this model, your agency specializes in a specific type of marketing, such as social media marketing or content marketing. You may have a smaller team of experts who focus on providing high-quality services in this area.
  • Virtual agency: In this model, your agency operates primarily online, with a team of remote workers who provide marketing services to your clients. This can be a good option if you want to have a flexible and scalable business model.
  • Freelance agency: In this model, you are the sole owner and operator of your agency, and you offer your marketing services as a freelancer. This can be a good option if you want to have complete control over your business and if you prefer to work on your terms.

Decide On The Kind Of Services You Want To Offer

  • Digital marketing: This type of marketing uses digital channels and technologies, such as websites, social media, email, and mobile apps, to reach and engage with customers.
  • Content marketing: This type of marketing focuses on creating and sharing valuable, relevant, and consistent content to attract and retain a clearly defined audience.
  • Social media marketing: This type of marketing uses social media platforms to connect with customers and promote products and services.
  • Search engine optimization (SEO): This type of marketing aims to improve the visibility of a website in search engine results pages, through techniques such as keyword research and link building.
  • Email marketing: This type of marketing involves using email to send messages to customers and potential customers, to promote products and services, and build relationships with them.
  • Affiliate marketing: This type of marketing involves promoting products and services on behalf of other companies and earning a commission for each sale made through your referral.
  • PPC, or pay-per-click, is a type of digital advertising in which advertisers pay a fee each time one of their ads is clicked. This is a common model for search engine advertising, where ads appear in the search engine results pages.

    Advertisers bid on keywords that are relevant to their products or services, and their ads are displayed when someone searches for those keywords.

Who Are You Going To Target?

B2B and B2C are two common types of business models, which refer to the relationship between a business and its customers.

B2B, or business-to-business, refers to the relationship between two businesses, where one business sells products or services to another business. For example, a manufacturer selling its products to a retailer would be a B2B relationship.

You can start by reaching out to decision-makers at the companies you are targeting and setting up meetings or calls to discuss their needs. It is important to get to the point and be prepared to answer any questions they have and provide any information they need to make an informed decision.

A well-established digital marketing agency in Utah, Avalaunch media, is a very good example of B2B marketing.

B2C, or business-to-consumer, refers to the relationship between a business and its end customers, who are individuals. For example, a retailer selling its products to consumers would be a B2C relationship.

It is important to focus on creating an emotional connection with potential customers. This can be done through storytelling and creating content that resonates with them on a personal level.

Billing Setup

  • Hourly billing: This is a common billing method for marketing services, where you charge your customers based on the number of hours you work on their project. This can be a good option if you have a clear idea of how long a project will take, and if your customers are comfortable with paying based on the time you spend on their project.
  • Project-based billing: With project-based billing, you charge your customers a fixed fee for the entire project. This can be a good option if you have a clear scope and timeline for a project and if your customers are willing to pay a fixed fee for the project.
  • Retainer-based billing: With retainer-based billing, you charge your customers a monthly fee for a certain number of hours of work. This can be a good option if your customers need ongoing support and if they are willing to pay a regular fee for your services.
  • Performance-based billing: With performance-based billing, you charge your customers based on the results you deliver. This can be a good option if your customers are willing to pay based on the value you provide and if you are confident in your ability to deliver results.
Billing Setup

Defining Your Goals And Objectives

Identify the purpose of your business. This will help you determine what you want to achieve with your business and will provide a guiding principle for your goals. Conduct a SWOT analysis which involves examining your business’s strengths, weaknesses, opportunities, and threats.

Set specific, measurable, achievable, relevant, and time-bound (SMART) goals. Communicate your goals to your team so that everyone is aware of what you are trying to achieve and can work together to achieve your goals. Monitor and review your goals regularly.

Goals and objectives

Use an OKR framework. A goal-setting framework that helps organizations align their goals and measure their progress. It involves defining specific, measurable goals that an organization wants to achieve, along with a set of key results that will indicate whether the goals have been achieved.

Coming back to that digital marketing agency in Utah, (Avalaunch Media). They use OKR and have had significant results in growing their company in the US.

Choice Of Correct Tools

You need to have a bunch of tools for the smooth functioning of an agency. Although, the correct ones. Some of the important tools would be:

However, some other free tools that you can avail yourself would be:
Skype, Google Docs, Forms, Slides, Data Studio, Analytics, Keyword Planner, Search Console, and Tag Manager.

Scaling Your Marketing Agency

Scaling a business is an important part of your growth for several reasons. But before you think of taking such a step, the company should be highly proficient in the services they are offering. Refining your skills and building up a team of highly talented individuals can do your business the world of good.

By growing and expanding your agency, you can take on more clients and increase your revenue, which can help your business become more successful and sustainable.

Scaling can also enable you to offer a wider range of services and solutions to your clients, which can help you to differentiate your business from competitors and stay ahead of the curve.

However, you should be wary of the costs to be incurred during this process. One of the main financial constraints of scaling a marketing agency is the need for additional funding.

As the agency grows and takes on more work, it may need to invest in additional resources, such as hiring more marketing professionals, purchasing new technology, or expanding its office space. These investments can be costly and may require the agency to seek additional funding from investors or other sources.

Think Hiring Contractors

Hiring contractors can be an important part of running a marketing agency. Contractors can provide specialized skills and expertise that may not be available within your existing team. This can be particularly useful if you are working on a specific project or campaign that requires specific knowledge or experience.

Additionally, hiring contractors can be a cost-effective way to access the talent and resources you need, as you can typically hire them on a project-by-project basis rather than incurring the cost of hiring a full-time employee.

Furthermore, working with contractors can give you the flexibility to scale your team up or down as needed, depending on the workload and demands of your business. Overall, hiring contractors can be a valuable way to help your marketing agency grow and succeed.

The important aspects an agency needs to look at when expanding are:

  • Hiring and retaining top talent
  • Managing growth and expansion
  • Maintaining quality and consistency
  • Maintaining strong relationships with clients

Overall, scaling a marketing agency can be challenging, but with careful planning and execution, you can overcome these challenges and achieve success.


Since you have reached the end of this article, it is safe to assume that your amateur businessperson self has gotten some clarity, to at least begin with.

In conclusion, starting a digital marketing agency can be a rewarding and exciting venture. By understanding the basics of digital marketing and developing a clear plan, you can lay the foundation for a successful business.

Everyone has a different journey, with challenges and opportunities different from each other. With hard work and dedication, you can build a successful digital marketing agency that helps your clients grow and succeed.

It would be rather foolish to compare your strategies with someone else’s. However, if you have got some other points to share with our readers, be our guest. Connect with us in the comments section below.

We’d love to hear back from you.

Author Bio:
I am a professional content writer and have been at it for the last 10 years. I worked at a freelance marketing agency based in Germany, as a content writer, working closely with their SEO department. I want to share my expertise with your readers. It gives me immense joy to add value to people’s lives.