In 2024, some of the ways to grow and scale your digital marketing agency include:
- Building rank and rent websites to generate a secondary income for your agency.
- Leveraging the 20/30/50 rule for your marketing company.
- Using AI and automation strategies for your digital firm.
- Sharing social proof like reviews and testimonials from your existing client base.
- Listing your digital business on online directory sites.
Local IQ says that the average local business spends 5%-10% of its total revenue on marketing. Meanwhile, that figure often goes up to 14% or more for growing businesses. Having a digital marketing agency allows you to cater to these companies. You have plenty of opportunities to grow. You can secure a steady stream of high-paying clients as you develop effective strategies that help them achieve more leads, sales, and revenue. The key is to be a company that specializes in a few specific services. For example, you can offer email marketing, paid advertising, or social media management. If you're an authority in that niche, you can negotiate for higher prices. This results to you making more money with fewer clients and growing your marketing firm in no time.
AltAgency founder and CEO Greg Hickman says there are 4 key phases to scaling. Agency owners should go through standardizing, optimizing, growing, and scaling their businesses. Most importantly, they should determine what their goals are. “Define what scale actually means because everyone defines it differently,” Greg emphasizes.
In 2024, the average profit margin for a digital marketing agency should be about 40%. OMG Center reports that top performing digital advertising agencies generate a 50%-60% profit margin. Meanwhile, the site says start-ups and underperforming agencies only see a profit margin of 20%-30%. To scale your digital marketing agency, you also need to keep overhead costs low. You’ll have to provide services that bring recurring revenue to your clients - such as SEO or content creation. Next, you want to develop a team of industry experts who know how to get real results for your clients.
Some agency owners also find it wise to invest in digital marketing courses. Agency Box (Dylan Vanas), Agency Dominance (Keaton Walker), and Quantum Growth (Sabri Suby) are some courses that help you go the next level. Marketing companies need to stay updated on industry trends. By doing so, they can earn big profits and have the monetary resources they need to expand.
In this article, we list 25 ways to grow and scale your digital marketing agency in 2024. We also share why your profit margins are the key to achieving long-term growth goals. Moreover, we discuss why local lead generation is a better business model overall.
25 Ways to Grow & Scale a Digital Marketing Agency In 2024
1. Develop Secondary Revenue With Rank and Rent Websites for Your Marketing Company
You can develop a secondary revenue for your digital marketing company by building rank and rent websites. This is a proven concept where you provide clients with the leads they need for their business. Hexospark reports 61% of marketers say generating leads is among their main challenges.
Rank and rent is easy. You create keyword-specific business websites in a certain location. Next, you’ll work on getting your website to the top of Google search engine results. Your site will then be visible to people searching for the keywords you targeted. It will start generating leads and you can sell your leads to local business owners. This will provide your agency with a secondary income stream.
A rank and rent business owner on Reddit shares about starting this year. They're currently making $500 a month from one website. With their strategy in place, they’re also aiming to raise their prices by $750 to $1,000 per month.
2. Leverage the 20/30/50 Rule for Your Digital Marketing Agency
The 20/30/50 rule is a financial compass to help agency owners better manage their gross profit margin. The goal is to achieve a 20%+ net margin by:
- Using 50% of your budget for overhead and non-negotiable expenditures. This includes rent, employee salaries, and necessary digital marketing tools.
- Spending under 30% on wants that aren't necessary to maintain profitability. For example, this may include expenses on software updates or advanced automation technology.
- The remaining 20% is earmarked for future goals and investment opportunities. This can include building digital assets such as a lead generation website. With this, you can create a secondary income stream for your business.
By leveraging the 20/30/50 rule, an agency can simplify its budget. Moreover, they can wisely utilize the profit they make each month.
3. Be a Hyper-Specialized Agency to Negotiate Higher Prices for Your Digital Marketing Company
Choose the niche or customer base you want to help. For example, you can target corporate advertising agencies. Next, focus on one service and one specific offer. For example, you can specialize in running paid ads or social media marketing campaigns. Work on becoming a recognized industry expert.
Provide personalized attention to your client. ViralWeb suggests that high-growth enterprises achieve 20% more growth yearly by “adopting a niche marketing approach.” Offer a turnkey, results-driven solution. As a result, you can command higher ticket prices.
4. Develop a Distinct Value Proposition for Your Digital Marketing Agency
A unique value proposition can distinguish an ad agency from the competition. It highlights why small businesses should hire your digital marketing agency. You can develop a unique value proposition by:
Show them how they can make more money by retaining your services. Focus on value. Price is only a problem in the absence of value. Know your customer and your product. How does your agency compare to the competition? What are the wants and needs of your ideal audience? Be specific and make the customer your priority.
5. Rank for Digital Marketing Agency Using Long Tail Keywords
To scale and grow your digital firm, rank for long tail keywords in the SERPs. Long tail keywords are specific search queries that often have low search volume. However, they're easier to rank for and helps you focus on a target audience. My Codeless Website says “keywords with 10-15 words in length get 2.62x more clicks than one-word keyword terms.” Other advantages of long tail keywords include:
To do this, you can use tools like SEMrush's Keyword Magic tool, People Also Ask, or Keywords Everywhere. These software can help you find relevant long tail keywords for your business.
Consider the search intent and be strategic. You can then develop topic clusters on your website. Just make sure that what you create makes sense for both the Google bots and your readers. A May 2024 report says “long tail keywords got 1.76x more click-throughs in the organic searches on Google than a super short keyword phrase.”
6. Connect With Digital Marketing Influencers
Influencer marketing is a way to scale your digital company. You get to in front of a ton of eyeballs, and reach an audience that might not find your agency elsewhere. According to HubSpot, “89% of marketers who collaborate with an influencer will boost or maintain their investment.” Influencer marketing is the new word of mouth.
This social media marketing strategy can increase brand awareness. You can also connect with a broader audience and build trust with a potential customer base. When deciding on an influencer for your marketing firm, consider:
To find niche-relevant influencers, check out marketing platforms like Grin or Mavrck.
7. Use AI & Automation Strategies for Your Digital Company
Use artificial intelligence and automation to grow and scale your digital marketing agency. AI and automation tactics can streamline tasks for your digital marketing firm. Quixy says marketers that use automation achieve a “77% increase in conversions.”
In 2024, an agency should prioritize technology tools. Hootsuite, HubSpot, MailChimp, and ActiveCampaign can help handle tasks like:
- Pinpointing high-quality leads
- Sending personalized emails
- Automating social media posts
- Composing copy for YouTube and podcast transcripts
- Tracking and monitoring performance and KPIs
- Creating customer report documents for each existing client
- Providing 24/7 customer support with chatbots
On Reddit, cronbay-tech says AI is a “game changer.” According to their post, the tool can help in “automating various tasks.” Ad optimization, content personalization, and customer engagement can be done easier with automation.
Meanwhile, 360 Integral Marketing says 51% of companies today are using marketing automation software. In 2024, AI and automation software can find patterns in user behavior. AI tools can also collect data about what kinds of copy or paid ad campaigns are most effective for your brand. Moreover, it's also a way to stay on top of changes to platform algorithms.
8. Share Social Proof to Demonstrate Customer Satisfaction With Your Agency
Sharing social proof lets you showcase what clients have to say about your digital marketing agency. Positive reviews and testimonials can help boost your business in 2024. You can increase conversions and build greater trust with potential clients. Highlight your strengths with in-depth reviews that show why you're the best in the industry.
Include the name or an image of your client. Don't just offer a one-liner or a picture of a 5-star review on your Google My Business page. Highlight certain comments and customer experiences. Consumers today are more apt to invest in a product or service that other people are already using. Exploding Topic says 92% of buyers are reluctant about taking any action “without online reviews.” Furthermore, the site says average online shoppers “expect to see at least 112 reviews” before purchasing online.
9. Boost Your Digital Marketing Agency's Web Presence with Online Directories
You can boost your web presence by listing your business in online directories. Online directories can be an effective way to build credibility and attract leads. They can give your digital company a chance to be found in more places online. Potential customers use them to search for services before deciding who to hire. As a result, you can get attention from the right people and expand your reach for fewer dollars than paid ads.
You can list your digital marketing agency on platforms like:
- Clutch
- HubSpot Partner Directory
- Google Partner Directory
- Meta Agency Directory
10. Implement Content Marketing Methods for Your Agency
Content marketing is a way to grow and scale your agency. Your business can reach more people, boost brand awareness, and increase consumer trust. According to Ahrefs, 63% of marketers say content marketing helps “nurture the audience.” Meanwhile, 50% report it helps “build loyalty with existing clients.”
Content creation is all about learning as much as you can about your target market. Where do they often hang out online? What kind of content do they prefer? What are they looking for on the Internet?
Provide the best answers to the questions people are searching for online. Then use multiple channels to distribute your content. Use your website, social media pages, and YouTube. Be consistent and share valuable information. Track and monitor your methods to know what works and what doesn't.
11. Do Email Marketing to Attract and Retain Digital Marketing Clients
Doing email marketing helps attract and retain clients for your digital marketing business. Email marketing is one of the best ways to grow and scale your agency in 2024.
Leverage this strategy is by personalizing your messages. Keep your emails short and simple but value-focused. Target River reports 79% of marketers put email marketing in the top 3 of the most effective marketing channels.
On Quora, Greis Rodriguez Delgado describes it as a cheap method to promote your brand. “Marketers can easily create unique, original, and engaging content through email,” she writes.
Greis further points out that effective email marketing messages may include:
- coupons
- gifts
- new arrivals
- product catalogs
- sales
- seasonal products
- tips
12. Provide Personalized Digital Marketing Solutions for Business Owners
Providing personalized solutions for business owners can help you scale your company. For example, customized solutions include:
- Custom video creatives on TikTok, Instagram, Facebook, and other platforms.
- Hyper-targeted content marketing strategies that speak directly to an identified target market
- Advanced technical SEO techniques like meta robot tags and XML sitemaps
According to Think With Google, 90% of marketers say “personalization makes businesses more profitable.” By customizing your service portfolio, you can gain an edge over your competition. Also, communicate with your customers regularly. Showing clients that you're invested in their long-term success can help you gain their trust.
13. Practice a Consumer-Centric Approach To Get Your Agency in Front Of The Right People
Practicing a customer-centric approach can help scale and grow your business. You can meet client satisfaction by providing a unified experience on multiple channels. HubSpot says prioritizing “customers and their unique needs” is highly important.
Post content that speaks the language of your buyer persona. Stay consistent and share valuable information. The SoftTek blog suggests that agencies that leverage an omnichannel strategy retain up to “89% of their clients.”
14. Partner With Other Digital Marketing Agency Professionals
Partnering with digital marketing agency professionals can also grow and scale your business. If your firm is an SEO authority, find an agency that focuses on building websites. You can collaborate on certain projects together. Plus you can also refer each other to your respective clients. Of course, the arrangement needs to be beneficial for both parties. Clients can benefit from this arrangement, too, since they’re getting quality service.
15. Track Digital Marketing KPIs and Metrics
Tracking digital marketing KPIs (key performance indicators) will help you boost your business. KPI is a quantifiable value that shows how well a business is performing. Knowing how your client's online presence compares with their competition can help you evaluate the next steps. With access to information, you can create better marketing strategies and get results. You should collect important data such as:
Data-driven reports help prove that your marketing campaigns are working for your client. You can use tools like Google Analytics, Ahrefs, or HubSpot to access these data.
16. Expand Your Digital Marketing Agency Service Options
To scale your digital marketing agency, you can offer additional service options. For example, you can:
- Do reputation management, search engine optimization, Google Ads campaign, and more.
- Hire or outsource tasks and become a full-service company.
- Establish reputation for offering comprehensive marketing strategies and efficient solutions.
List the services you offer. Highlight the benefits of having one firm handling a client's digital marketing needs.
17. Leverage Referrals For Your Digital Marketing Firm
Getting referrals from existing customers can help your digital marketing firm. As you deliver quality service, you can get referrals from satisfied clients.
According to SaaSquatch, each happy customer can bring up to 9 referrals. Deloitte also reports that referrals have a 37% higher retention rate. A good way to encourage referrals is by having a reward system. You can offer incentives like 10% off, a free website audit, or an extra strategy call.
18. Hire the Right People for Your Marketing Company
Hiring the right people is crucial to growing your company. You want to connect with talented individuals who can work as part of your team. Plus, the person should be committed to helping your business achieve greater growth.
During the hiring process, you should:
19. Pay Attention To Your Digital Marketing Pricing
Paying attention to your pricing allows you to align it with your business goals. You want to focus on services that generate the highest recurring monthly income. Of course, you don’t want to undersell your services. WebFX says the average digital marketing agency can charge clients the following rates:
Don't focus on selling low-cost or one-time service options. Instead, price competitively to keep your clients paying month after month. Your pricing should be good enough that you're making decent profit margins.
20. Create A Digital Marketing Brand That People Will Remember
Creating a brand people will remember leads to company growth. To do this, you’ll need to put yourself in your clients’ shoes: What are their values? What kind of content are they consuming online? How can your digital agency help them solve a problem?
To build brand awareness, you need to offer value beyond your services. Tell a story that shares content that will serve them. Learn to read the social algorithms and what content gets results. Focus on engagement and offer free advice. Highlight the benefits of working with your company. Always look for new channels and opportunities to reinvest and grow your brand. For example, you may consider starting a podcast. You can also repurpose blog content as infographics or YouTube videos.
21. Increase Your Digital Marketing Agency’s Revenue Channels
Increasing your revenue channels can grow your digital company. You can offer recurring services like SEO or social media marketing. Hence, your client continues to pay you a monthly fee. Other methods to yield secondary streams of revenue include:
22. Keep Costs Less Than The Lifetime Value Of A Customer
To grow your firm, keep your expenses lower than the LVC. Klipfolio says the ideal ratio for lifetime value to customer acquisition cost should be 3:1. This means the customer’s value should be 3x more than the cost of acquiring them.
Paid ads are expensive and only work when you pay to run them. But there are less costly ways to retain new buyers that include things like:
- Retargeting and prioritizing the right audience
- Engaging with customers on social media or other channels
- Running A/B tests on landing pages, website, and sales funnels
- Creating user-generated content and driving organic traf
Use multiple channels and test each method. See what works and where you need to tweak or pivot to keep client acquisition costs as low as possible.
23. Streamline Your Digital Marketing Systems
Streamlining your digital marketing systems can bring brand growth. For example, you can:
- Develop distinct goals around content creation, campaigns, and new client acquisitions
- Document your process with checklists, templates, etc.
- Track your data and KPIs
- Converge tools to reduce the tech and keep things simple but efficient
In any case, you want to create a digital marketing blueprint that includes specific strategies for generating more revenue streams without overspending. The more efficient your agency runs, the fewer expenses you incur. You can then have the money to hire new staff, leverage paid ads to get more clients, or buy new technology.
24. Overdeliver On Value
Overdelivering can be an effective way to increase repeat businesses and get referrals. When you go the extra mile, you make the overall client experience a positive one. As a result, they will leave good reviews for your business and happily refer you to others. Highlight quality and your unique selling point. Showcase the benefits of your services and then go above customer expectations.
However, make sure to do this with caution. Case in point, a freelancer on Reddit has a warning about overdelivering. According to the Redditor, overdelivering can bring both positive and negative results.
25. Stay On Top Of Digital Marketing Trends
Staying on top of digital marketing trends will work for your advantage. You want to be up-to-date in various technology trends, such as:
- Virtual & augmented reality
- Artificial intelligence & voice search
- Personalization & influencer marketing
- Short-form videos & transparency
According to Forbes, over 50% of mobile users in the US use voice search daily. So make it a point to:
Then, be open to new perspectives and ideas and ready to pivot your agency when and where it's necessary.
Why Profit Margins Are The Key To Expanding Your Digital Marketing Agency In 2024
Profit margins are key to expanding your agency because they show your financial stability. You can calculate your average digital marketing agency profit margin using this formula:
($100,000 - $55,000) ÷ $100,000=45% profit margin
Consider alternative pricing methods if your agency is making low profit margins. Be flexible. Provide personalized options for your clients. Next, create a choice most business owners can't refuse. In no time, you'll make a decent profit margin and grow your digital marketing firm.
How Do You Know When It’s Time To Scale Your Digital Marketing Agency?
You know it's time to scale your digital marketing agency when you have the time, resources, and stamina to grow. Important factors include:
Of course, growing your agency usually means facing greater workload. This can result to new challenges and elevated stress levels. Keep track of performance, spending, and revenue. These details are important to ensure that your agency is still making money as you scale.
Seven Figure Agency's Josh Nelson also reminds companies to focus on client happiness. “Make sure that the services you offer provide tangible, measurable results," he adds. “When you do it this way, every client tends to stick around for the long term, refers you to others, and really builds your reputation in the industry.”
Is It Worth It To Start A Digital Marketing Agency in2024?
It is worth it starting a digital marketing agency in 2024. If you’re passionate about marketing and have the skills to attract an ongoing stream of clients. However, competition can be tough these days. There are now over 54.22 thousand digital advertising agencies in the US alone, says Statista.
As an industry newbie, you’ll constantly have to prove yourself to the market. Reddit user u/bookandcompass says starting a digital marketing agency can be a long haul. It usually requires “building your own marketing and branding to attract customers.” Besides, potential clients will often look at how effectively you market your own business before entrusting their companies.
How Does The Local Lead Generation Business Model Differ From A Digital Marketing Agency?
A digital marketing agency focuses on the overall marketing journey. Running this type of business often requires skills in different areas of marketing. Your main goal is to help clients with brand recognition. That way, they can gain more customers and earnings for their businesses. Digital marketing involves the use of emails, social media channels, Google ads, and more.
On the other hand, lead generation is an important part of digital marketing. It specializes in providing clients with leads by dominating search engine results pages. Local lead generation focuses on specific locations (city or town) to maximize results.
One huge advantage of doing local lead generation is that you are using the rank and rent model. The focus is on the local market and you are using local SEO strategies to rank your sites. You can do this in as little as 6 weeks to 6 months. Once your sites start producing leads, you can sell those leads to local business owners for profit margins between 85% to 90%. In essence, you are a digital landlord who owns both the websites and the leads. You make money from entrepreneurs who need leads for their companies.
With over 41,705 unique zip codes in the USA, there’s plenty of opportunities for you as a local lead gen business owner. Since you’re targeting towns and cities, competition is not as fierce. It won’t cost much or take much time to rank your sites. Building a site often takes about 10 to 15 hours and may only cost you around $500. When done right, each site can generate a monthly passive income between $500 to $2,000. I've been doing local lead generation for years and now that I own several websites, I make up to $52,000 per month.
