How To Start A Digital Marketing Agency: Beginners Guide

How To Start A Digital Marketing Agency: Beginners Guide

start a digital marketing agency

There are many things that you must learn if you wish to start a digital marketing agency and be successful in the business. It might interest you to know that digital market spending is expected a rise to $77.37 billion. To break into this highly promising and profitable field, you will want to learn how to go about it. In this article, you will get to learn and understand the needed requirements to start a digital marketing agency.

Also related: How to make money online

Currently, companies are spending more of their marketing budgets on advertising and virtually everyone wants to get a piece of the action. In this article, I will walk you through the steps that you need to follow in starting your own digital agency. It is not out of place for you to think that a skilled individual or small team could build a fully operational digital marketing agency. Provided you have access to the right information and guidance, it is quite easy to start a digital marketing agency of your own.

The Tips You Need To Start A Digital Marketing Agency

  1. Educate yourself by learning the necessary skills

If you have asked yourself the question “should I start a digital marketing agency?” and your answer is yes, then you need to acquire the needed skills. You cannot be thinking of how to grow a digital marketing agency when you have not prepared yourself for it. First things first, you must create time to learn about the business before venturing into it. If you fail to get yourself acquainted with the necessary skills to start a digital marketing agency, failure is inevitable.

We cannot underestimate the importance of educating yourself as much as possible about digital marketing. The most successful people in the world continue to learn every day, so to be like them you must act like them. You must invest your money and time in learning. Create time to know more about SEO, email marketing, PPC (Pay-Pay-Click marketing), and creating online funnels. If possible, you will also have to know about graphic design and content marketing as well.

  1. Identify your business niche and carry out a competitor analysis

In the business of digital marketing, there is a very level of competition. Therefore, finding your niche is essential to a successful digital marketing business. By doing this, you will have to focus your time and energy on a smaller audience that is interested in what you have to offer. Once you have identified the niche that you want to focus your energy, do competitors research on those in the same line of business that you want to b part of.

It is only when you have researched your competitors that you can know how to outsmart them and take a larger share of the market. It is always advisable that you narrow your competition down to about 10-15 competitors. Once you have known who your competitors are, find out the ways that they are monetizing. It is from there that you can learn what their methods are and the things that are successful. You must try to at least identify one method per competitor; from there you can also know their content marketing strategy.

It is also important that you take a good look at how they communicate with their customers. Determine if you would use a similar approach or rebrand their strategy.

Also read: How to make money with affiliate marketing

  1. Create and develop the right business model

There are different ways that you can start a digital marketing agency. The way that you render your services as much as how you bill for your work becomes an integral part of how efficient your business is managed over time. Here are some of the most common ways to bill your clients as a digital marketer:

  • On an hourly basis

Most people opt to charge their clients on an hourly basis especially when a lot of time is spent one-on-one with the clients. The drawback is that this billing model tends to get muddy over longer and more complex service offerings. There are fluctuations in the time spent on a particular client that are common and vary greatly over time. Here, there are different factors to consider such as time spent on calls, restructuring accounts, setting up and initiating an entirely new promotion, etc.

This makes it difficult to ascertain the number of hours you spent in a week on a particular client. Unless you provide one-on-one consulting as a part of your service offering, I would stay away from the hourly billing model.

  • The flat retainer

This is probably the simplest of all the pricing models that you can select from. All you need to do is access how much the work and time for a particular client are worth and both you and the client will agree on a flat monthly fee. Aside from the simplicity of this particular model, it helps you to reduce the friction experienced when it comes to sending out the invoice. The clients are already aware of the amount it will cost them, provided you meet their expectations they won’t have any issue paying it.

The major set here is if you have a client that scales exponentially over time. You can mitigate this by having a contract with a clause that grantees that the price is for a specific period of time and once it elapses, you can renegotiate.

  • Percentage of spend

This pricing model is very popular among digital marketing agencies because it factors in the growth potential and scalability of the client. As a beginner in this business, it is may not be advisable to because you need to expand your network. The major downside of this pricing model is that there are lots of internal factors within businesses that will certainly dictate the budget. There are some factors that may be within your control and others that are outside your control.

  • Commission-based pricing model

Most of the digital marketing agencies that adopt this model often do so to gain a competitive advantage over others. The model essentially implies that you only get paid when your client makes money off a sale. The approach seems enticing at the onset because you want to build trust with a client. Most people that have experienced failures in this business will tell you that they were paying all kinds of money only for them to have no return on investment.

  1. Create a social media presence

Before you start a digital marketing agency, ensure you have drafted plans to leverage the possibilities of social media. You can create an account on social media for free, so why not take full advantage? From here, you can benefit from organic lead generation, engaging with customers, and turning your business global.


Digital marketing is a highly profitable business that can fetch you good money when done correctly. This article has presented you with tips on how to start your digital marketing agency and stand a high chance to be successful. All you need to do is put in the effort and you will see the result for yourself.

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