Starting a Digital Marketing Agency

There are many things to consider when starting a digital marketing agency. The main ones are: business model, hiring freelancers, cost, and whether to hire full-time employees. If you’re serious about starting a digital marketing agency, you should continue to learn and grow so that you can offer additional value to your clients. It’s also a good idea to specialize in a niche market. This will allow you to specialize in the type of marketing that your clients need the most.

Starting a digital marketing agency

When starting a digital marketing agency, you must plan your structure, vision, and end-goals carefully. Otherwise, you risk taking the wrong path and not having much success. One of the most common mistakes agency owners make is having conflicting goals. Whether you want to focus on search engine optimization or full-service, it’s important to know what you want from your business.

Setting measurable, achievable goals is essential to the success of your agency. Your goals should be both time-bound and relevant. Your agency’s employees will need to learn new skills and gain business experience. In addition, you must have a budget for your new projects. For example, if you want to start an agency with a minimal budget, you can hire freelancers to work for you.

Once you have a small number of clients, you can choose to offer some of these services free of charge. This will attract potential clients. Moreover, the free services will also allow you to show your results. You can also consider investing in one-stop-shop platforms to streamline processes. Another key decision you must make is how you plan to bill for your services. Some agencies charge a flat fee for their digital marketing services while others charge by the billable hour.

You must keep in mind that a larger team does not necessarily make a better agency. Many successful marketers run their agencies with small crews. Make sure that you’re not getting bogged down in the details, like answering emails for hours. You’ll have to focus on the clients and the value that you provide. Remember to avoid the temptation to undervalue your team members and charge them a fair price for their expertise.

Business model

One of the most important aspects of a successful digital marketing agency is its business model. The key to making this model work is to understand your customers’ needs. Then, you can offer them tailored services. For example, you can offer your customers a package that includes digital marketing services, such as SEO. Or, you can focus on developing individual services for specific clients.

The business model of a digital marketing agency should be flexible enough to adapt to changes in the market. Depending on the size and type of business, a digital marketing agency can offer different types of services. Typical services may include Search Engine Optimization (SEO), Content Marketing, Social Media Marketing, Paid Search (PPC), Online PR, Sponsored content, and Backlinks generation.

A digital marketing agency should also have a strong focus on customer research. This will help you position yourself and market your agency effectively. Also, you should do competitor research to understand the needs of the competition. This will help you understand their pricing and offer a competitive service. You can even mystery shop one of your competitors.

In order to create a successful digital marketing agency, you must develop a business plan. Using a business plan software program, you can create a comprehensive plan. It’s also a good idea to read samples of digital marketing business plans. These will give you ideas for what to include in your own plan. It will also give you an idea of the language to use and what sections to include in your business plan.


Setting up a digital marketing agency can be very profitable, but you will need to know how much it costs to run it. The average cost of starting a digital marketing agency is about $80 to $150 per hour. It is a good idea to start at a low rate and then gradually increase your rate as you build up your reputation. Depending on your business goals, you might also need to invest in office space and hire employees. In the beginning, it will be best to focus on a specific area of digital marketing.

Insurance is a crucial aspect of running a digital marketing agency. You will need professional liability insurance and general liability insurance. The latter will cover expenses like office accidents and computer damage. As with any other business, it’s important to establish a budget to make sure you don’t run over your budget.

Hiring new employees may prove to be difficult at first, so it is advisable to hire people who are able to work independently. Make sure your processes are easy to follow and document every step. You can also hire freelancers to handle one-off projects to keep costs low. However, hiring freelancers will also increase flexibility.

Pricing varies widely. The cost of starting a digital marketing agency depends on many factors, including your business model and the size of your company. Remember that the more experience you have, the higher the rates will be. Also, experience plays a big role in the type of digital marketing strategies you can create. A more experienced digital marketing agency will be able to deliver better results, but that will come at the expense of more work.

Setting up a digital marketing agency is a lucrative way to earn monthly recurring revenue. The opportunities are endless. As your business grows, you can hire more staff and charge higher rates for each role. This will allow you to expand your marketing strategy and grow your brand. You will also have the flexibility to work at home by assembling a remote team and operating from home via email or Skype.

Hiring freelancers vs hiring full-time employees

Hiring freelancers to do your digital marketing is less expensive than hiring full-time employees, but you may have to oversee them more closely. You can also enjoy a variety of perks. The average marketing budget is around 10% of sales revenue. This is a respectable amount, but unlikely to warrant specialized support.

While hiring freelancers may be more cost-effective than hiring a full-time employee, agencies have the advantage of more availability and can offer a team on call. In contrast, freelancers may only be available on a limited basis, and you may be unable to reach them when you need them.

Hiring a digital marketing agency is a smart long-term investment, as it will save you time and money in the long run. Monthly packages are more cost-effective than full-time salaries, and you will get the service continuity and accountability from an agency that will be with you for the long term.

Freelance workers can be cheaper than full-time employees, but you aren’t guaranteed to have the same level of expertise and dedication. Additionally, freelancers don’t have to adhere to a strict schedule. Freelancers work from home and are generally available at odd hours.

If you hire freelancers to do your digital marketing, be sure to carefully consider their experience and skill level. The freelancers you hire will be more focused on a specific marketing area than a full-time employee. However, freelancers may be unable to fully understand your requirements and expectations.

Hiring freelancers can be a good fit for small businesses. Freelancers usually work on projects that are specific to the company, with a small scope and low budget.


Networking is one of the fastest ways to get clients for your new digital marketing agency. You can meet new people, discuss your business goals, and learn about global trends. Getting to know your potential clients will help you to win their business over the long term. You should also consider joining a co-working space if you work from home.

Facility costs include rent, insurance, mortgage payments, and regular cleaning services. Other costs include non-billable employees, including sales, marketing, and human resources teams. Depending on your location, you may also need to pay for an internet and phone line. Facility costs and billing rates will vary from agency to agency.

Attending industry conferences and meetups can help you find potential clients. You can also offer your services at free workshops or host events in the community. Often, these events provide free exposure for your agency. You can also offer your services to coworking space partners. Some coworking spaces also host events, including social meetups, PR Meetups, design meetups, and other semi-related events.

A successful person never stops learning, so if you are considering starting a digital marketing agency, it makes sense to invest in a course that will help you advance your career. You can even enroll in a digital marketing course online, which will allow you to learn more about the industry and build your skills.