8 Steps on How to Start a Digital Marketing Agency

Starting a Digital Marketing Agency in 8 Steps

While the process of starting a digital agency can be different for everyone, these steps will help entrepreneurs confidently break into the digital marketing world. Good luck!

1) Educate the Agency

Before leaping into the world of digital marketing, get to know the industry. Entrepreneurs who take the time to study the competition, understand key concepts and build and perfect their own digital skills achieve more than their counterparts.

Formal Education

First, those in the digital marketing field usually have a bachelor’s degree in one of these fields:

• Website or Graphic Design
• Liberal Arts or English
• Digital Media
• Communication
• Marketing and Advertising

While this degree may not be necessary for every agency head, experience in one or more of these fields is helpful. While digital marketers focus on online content, they also often have to oversee and manage team members.

Facebook, Google Ads, YouTube, and more offer degrees in digital marketing certification as well. A digital marketing certificate or online course is not essential, but it can be helpful in providing practical knowledge of the field.

Concepts to Focus On

The key for firm presidents and owners is understanding the industry and its fundamental concepts. These include:

• Content marketing
• Graphic design
• Email marketing
• Pay-per-click (PPC) and Cost-per-click (CPC) marketing
• Search Engine Optimization (SEO)
• Online Funnels

The best digital marketing agencies feature individuals who strive to never stop learning. Therefore, in addition to studying the basic principles of digital marketing, entrepreneurs should stay abreast of new developments.

2) Find the Agency’s Niche

Entrepreneurs know a good idea when they see it, and many individuals are exploring new careers as digital marketers and opening up agencies. This increase in digital marketers means that competition is fierce. Finding a specific niche for the agency allows it to stand out from the other companies.

A niche is a certain classification or a focused category that makes the agency appealing to a select audience. The audience might be smaller, but if you choose the correct niche and fulfill customer expectations, the clients will be explicitly interested in the firm’s services.

A well-thought-out niche allows the business to stand out. For example, agencies with an original brand and logo that offer specific products to their target audience have found their niche.

An Example: Dan’s Digital Agency for New Music

Dan has always been a music fan, so when he gained the knowledge and capital to open his marketing agency, he knew it would focus on music.

New bands need a digital presence, and Dan fills that space. He can even tailor his clients to specific genres of music if he wants to narrow the focus further. After a few months, Dan focuses on digital marketing for singer-songwriters who have some successes under their belts but have not yet broken into the mainstream. Through Dan’s calculated marketing campaign and knowledge of music and digital marketing, he quickly grows his client list.

Finding a specific niche for a small business is vital. Dan’s example shows that a niche is created through research, knowledge of the target customer base, and willingness to set the business apart.

3) Research the Competition

When a small business knows its rank among competitors, the business owner can strategize how to get ahead. Research is the key to this valuable knowledge, yet many entrepreneurs are unsure how to correctly analyze the competition.

Competitor Analysis

When analyzing the competition, businesses can use their matching SEO keywords. Depending on the size of the local area and the reach of the business, focus on about 7-14 competitive companies.

Next, business owners should know identity how their competitors are creating revenue. Which methods are succeeding, and which are failing? This comparative study can help a marketing agency optimize its strategies while leveling the playing field. For example, digital marketing agencies commonly make money in several ways, including:

• Selling a physical or digital item
• Lead generation
• Commissions
• Donations
• Coaching
• Affiliate sales
• Advertising

Competitor Methods

It is just as important to figure out what the other agencies are doing to create a buzz and target their chosen demographics. In addition, examining the strategies of other companies can help businesses fine-tune their marketing methods.

For example, are competing companies succeeding with social media outreach and content such as videos and posts? Or are they using SEO to communicate with prospective customers? From blogging to podcasts, there are more and more methods to try out, allowing companies to find out what works best for them.

4) Launch a Website

A digital marketing agency’s website is the epicenter of its activity. Nowadays, a dynamic and routinely updated website is a source of business and profits.

Business owners should check out their competitors’ websites as they design their own and solicit client feedback. Depending on the agency, websites can be equipped for direct sales, appointments, email, and even chat options. If the marketing agency is just starting up, there may not be a budget for a web designer. However, many easy-to-use content management systems, such as WordPress and Squarespace, do not require specific skills.

Decide what type of content the website will feature, choose a design, and select a hosting service and domain name. The domain name should coordinate with the name of the agency.

Instead of creating the company’s website as another task to cross off the list, consider it an opportunity. When websites are full of interesting, on-brand content, prospective and returning clients spend more time on them. In addition, brief videos, links, and messages from the agency’s owner can make the site stand out and compel people to connect with the agency.

5) Create a Portfolio

Potential clients want to see a comprehensive portfolio of the agency’s work. Unfortunately, building a portfolio can be difficult when a digital marketing agency is just starting since the company is still becoming established. Luckily, most clients understand that many new ventures simply do not have many clients yet.

One way around this is for the owner or another manager or employee to bring in clients from past positions at other firms. However, this is not always possible.

Many digital marketing agencies offer discounted or free services for the first 6-12 months to attract new customers. These agencies bet that their hard work and excellent service translate to valuable reviews and client testimonials.

While the content in portfolios differs, a complete portfolio should include:

• Headlines or article snippets about the agency
• Case studies
• Client reviews and testimonials
• Upcoming goals for the client

Although some companies exaggerate in their portfolios, resist that urge. Instead, portfolios should be created ethically and represent an honest rendition of the facts.

6) Establish a Business Model

There are three main ways that digital marketing agencies bill their clients. This choice depends not only on the size of the business and its accounts but on personal preference.

Three Styles of Billing

• Hourly Payment: When a company deals with a series of brief jobs, this method works well, but scaling up too many hours for one client can be difficult.
• Flat Retainer: This simple method involves a flat fee, usually for one month. It is important to establish clear rules, such as what happens if a client ends the job early or changes expectations.
• Percentage of Spending: This method relies on the agency, which receives the correct payment from the employee’s diligent efforts.

7) Create Social Media Profiles

Social media is a must for digital marketing agencies. When technology-based agencies are on the cutting edge, they must take advantage of suitable platforms, from TikTok to Facebook.

In addition to lead generation, social media offers an easy, free way to engage in dialogue with customers. Social media also has a global reach and is great for expanding a company’s customer base.

Platforms and Methods

Facebook, Twitter, LinkedIn, Instagram, and more can all be used in a variety of ways, including:

• Posting pictures and videos of products and services
• Establishing a consistent tone
• Interacting with clients and prospective clients
• Spreading the word about new products and the brand
• Promoting sales, discounts, contests, and more

Networking with other businesses via social media is also invaluable. For example, collaborations between two or more brands can be founded on social media, allowing each company to profit. In addition, LinkedIn is an excellent platform for engaging with similarly minded local businesses and sometimes even forming business partnerships.

8) Generate Leads

On some level, every business struggles to generate leads at first. One of the best things to keep in mind is the answer to this question:

Who is the digital marketing agency’s target customer?

YouTube and Video Content

With that question confidently answered, businesses should start a YouTube channel. One of the best ways to generate leads is through regularly posting video content. This content may include:

• Popular marketing topics
• News about new digital technology
• How-to content
• Client reviews
• Case studies
• Interviews with the Agency owner

Blogging

Creating articles is not enough. Digital marketing agencies need to pay attention to the performance of their blogs and see what articles perform best. Sometimes, the blog’s title is the main factor in its performance. In addition, learning about the preferences of the target demographic helps fine-tune methods such as blogging.

Affiliate Marketing

Affiliate marketing is another invaluable method for reaching the agency’s target audience. Joining with affiliates expands the company’s reach and helps locate new clients. Some agencies send “cold” emails, but we do not recommend them because many of these messages never make it past the spam folder.

Instead, research the companies you want to partner with and craft emails based on their characteristics. This process shouldn’t take too long, and email is free.

There are many methods for generating leads, some of which come down to the business owner’s preferences and experience. Other times, the methods used center on the skills of employees.

Is Starting a Digital Marketing Agency Worth it?

The dynamic field of digital marketing is experiencing strong and sustained growth. Plus, starting a digital marketing agency is a relatively affordable venture. Therefore, when a digital marketing agency generates leads, creates a buzz, and works diligently, they are in the best position for success.

Therefore, the answer to the question “is starting a digital marketing agency worth it?” is a resounding yes.