To start a digital marketing agency:
Starting a marketing business with no experience is possible. Digital marketing is a low-barrier online business, which is why it's attractive to new entrepreneurs. The Digital Agency Network said almost half of new agencies start with less than $5K capital. It usually takes six months to 2 years for a new agency to become profitable. Agencies in their startup phase (0 to 6 months) typically make around $1,000 to $5,000 monthly. Agency owners should have at least a marketing background. However, there are successful ones who started with zero experience.
Digital marketing agency owner Jason Wardop shared how to start a digital marketing business with no experience. He started small by initially offering his services to local business owners. His top clients were dental clinics and real estate agencies. He recommends starting with a $200-$500 monthly retainer fee for agency services. He warns against charging $1,500 to $2,000, as it turns away potential clients. A price point close to $500 is more sustainable and can keep clients long-term. He also offered a white-label software solution. This software handles website building, auto-responses to missed calls, and CRM. The key tools he used in his agency include a chat widget and AI-driven conversations. Jason also employs auto-missed call text backs.
With over 54,000 digital marketing agencies in the U.S., it's important to differentiate yourself from competitors. This agency owner on Reddit said it's a lot harder to get clients now. According to them, this is because of self-proclaimed "millionaire" gurus. To be a successful start-up agency, you need to cater to specific niches. Bulk of his clients were models/agencies, crypto/NFT projects, and online casinos.
I have been in the digital marketing business for over a decade. There are a lot of ways to generate and drive leads to your clients. Knowing what works for your specific situation can determine success. It's a challenge to find new clients as a new agency. They'll be skeptical about trusting you without a portfolio or experience to back you up. Inexperience in running marketing campaigns and managing ads can lead to negative results. Some clients delay their payments, while others don't pay at all if they're unsatisfied. This is why I explored another business model that doesn't bear all these risks. I have full control of the business because I generate something high-end clients pay for. I've never had a client fire me in the last 10 years.
In this article, I'll share a 13-step guide to starting a digital marketing agency with no experience. I'll also explain what to expect as a beginner in this space and the most profitable niches to explore.
1. Take an Online Agency Course
If you're curious about how to start digital marketing from home, start by studying the industry on platforms like Udemy or Coursera. LinkedIn may also offer valuable resources for SEO, content marketing, and SMM. This will help you understand digital marketing concepts and strategies in a beginner-friendly way.
YouTube also provides a wealth of free tutorials that can help build specific skills. Online communities and forums offer first-hand insights and tips from industry experts. The most popular ones are Reddit, Quora, GrowthHackers, and Moz Q&A.
Understanding the services offered in digital marketing enables effective client pitching. Having the right foundational skill set equips future agency owners. This will help them identify market opportunities and emerging needs of clients.
Focus on honing these in-demand digital marketing skills:
What to Expect When Running a Digital Marketing Agency as a Beginner
2. Choose a Digital Marketing Niche To Target
Digital marketing agencies attract high-paying potential clients if they specialize in specific niches. Specialization positions the agency as the go-to marketing solution within that sector. This fosters trust and credibility. As an authority, the agency has a better understanding of the unique needs of businesses in their category. This will help them choose the right marketing services to offer.
For example, a real estate marketing agency specializes in these services:
- Social media marketing for real estate properties
- SEO for property listings and rentals
- Content marketing that promotes property listings
Market research plays a key role in identifying the right niche. It helps identify gaps in the market and areas with demand. Studying competitors will help the agency differentiate its services.
A well-chosen niche not only enhances service delivery but also improves client relationships. By developing tailored strategies, the agency can showcase proven results. This increases referrals and repeat business.
Top Niches That Digital Marketing Agencies Should Target:
Digital Marketing Startup Services
Choose the right service so you can effectively position your agency in the market. This will help you establish a clear identity and differentiate yourself from competitors. Focusing on specific services, like affiliate marketing, paid ads, web design, or influencer marketing, will help your team develop expertise in these areas. Specialization leads to higher quality work and better results for clients.
Choosing the right services for your agency increases the effectiveness of your marketing campaigns. Niche specialization makes you an authority over certain services. It streamlines operations with repeatable processes. Databox's survey revealed 77% of agencies said they are niched. This data suggests most agencies find success in operating for a niche target. It enhances networking capabilities, since you focus on relevant groups and communities.
Top Services For Digital Marketing Agencies
Starting a Digital Marketing Agency Checklist
4. Create a Business Website
A strong online presence creates brand awareness and builds credibility for the digital agency. Your website should showcase your services. It should also feature testimonials and case studies. The website should share informative content that highlights the agency's expertise.
Create a profile on freelancing platforms like Upwork and Fiverr. Showcase your skills in these profiles to attract clients who are looking for your services. Upwork and Fiverr are additional avenues for acquiring new clients. Use SEO techniques to increase the site's visibility. Understand how to properly use keywords to increase your reach. This multi-faceted approach establishes trust and authority in the digital marketing landscape.
A business website for your digital marketing agency can cost as little as $50. You can use a cheap shared website hosting plan like Bluehost. Then secure your website domain from a low-cost domain registrar like Namecheap. You can also use free tools to build out your website, like using WordPress with the free Astra theme.
The costs to create a simple website include:
Domain Name: $10-$20 per year
Web Hosting: $5-$30 per month
Website Builder: $0-$300 per year
Website Theme/Template: $0-$200 one-time fee
Plugins or Extensions: $0-$200 per year
5. Organize a Digital Marketing Team
Determine the specific positions you need, like digital marketer, social media manager, content writer, and SEO specialist. Set clear requirements for each role. Outline the skills, experience, and qualifications you need for each digital marketing job. Establish salary ranges or rates for each position. Find talents on LinkedIn, OnlineJobs.ph, and Upwork.
- LinkedIn: Great for building a professional network. 58 million companies are listed on LinkedIn. 87% of recruiters use it to find candidates.
- OnlineJobs.ph: Specializes in Filipino remote workers. Often more cost-effective for filling certain roles. It is used by over 1 million Filipino freelancers and remote workers.
- Upwork: A large freelancing platform with a wide range of global talent. It's great for project-based or permanent positions. It's one of the largest, with 20 million registered freelancers and 5 million registered clients.
- Fiverr: Ideal for small and short-term projects. Over 550 service categories are available on this platform.
6. Employ the Proper Digital Marketing Tools To Assist Your Services
The right digital marketing tools will improve the productivity of your agency. It automates many time-consuming tasks so you don't have to do them manually. With the right tools, you can simultaneously handle multiple campaigns. It reduces manual errors so you can focus on planning marketing strategies.
Top Digital Marketing Tools
Emerging Tools
AI Digital Marketing Tools
7. Implement Digital Marketing Processes
Digital marketing agencies should have the right processes in place. This ensures operations run smoothly. A key strategy is establishing Standard Operating Procedures (SOPs). It outlines the step-by-step tasks necessary to achieve agency goals. SOPs help team members understand their responsibilities. It provides clarity and consistency across different business operations.
Key Points in Creating SOPs for Digital Marketing Agencies
Tailor SOPs to your agency's specific needs and culture.
Make them detailed enough to be useful, but not so complex that they're difficult to follow.
Use clear, concise language and avoid jargon where possible.
Include examples or templates where appropriate, especially for things like report formats or campaign structures.
Create separate SOPs for different roles or marketing strategy.
Steps to Create SOPs
Identify core tasks and determine the primary focus on the agency. This could be content creation, social media management, or communication.
Collaborate with team members to gather insights into their workflows. This will help you understand crucial aspects of each task.
Write clear and concise instructions for each task. Be specific to avoid any confusion.
Regularly revisit the SOPs to make adjustments based on feedback or industry changes.
8. Set Your Digital Marketing Agency Pricing
Digital marketing agency pricing affects client acquisition and overall profitability. Agency owners should do research before setting their price. Experienced agency owners recommend pricing services low, especially if you're new. Gradually increase your rates as you gain experience and reputation.
Use cost-plus pricing and value-based pricing to guide your pricing decisions. Cost-plus pricing involves calculating costs and adding a desired profit margin. Value-based pricing focuses on the perceived value provided to the client. Many digital marketing companies offer services ranging from $50 to $300 per hour, depending on expertise and location. Price your service according to the value you bring to your clients. Highlight unique selling propositions when you're justifying higher rates.
Expert digital marketer GaryVee of VaynerMedia says he charges new clients $3K per month. He gradually increases his rate every meeting. The maximum he charges his clients is $15K. According to Gary, figuring out the right pricing is a matter of trial and error. He made up his initial prices and adjusted them based on feedback. You become more confident in setting prices through experience.
This agency owner bills 5% to 15% of adpsend. For mid-range budget clients, the appropriate would be around 10% to 12%.
This agency owner prefers a fixed pricing scheme. He charges $400 per month or 25% of adspend, whichever is higher. This rate is almost double the average fee digital agencies charge.
9. Engage in Digital Marketing Client Outreach Strategies
New agencies often need to rely on proactive outreach methods to secure their initial clients. Since inbound marketing takes time, early efforts should focus on cold emailing and cold calling.
While inbound marketing is an effective strategy, new agencies need to be proactive in reaching out to their first clients. It could take time to see the result of your inbound marketing efforts. You need to do cold email and cold calling to get leads. This allows the new agency to quickly build a client base.
Client Outreach Strategies
10. Offer Guaranteed Results to Build Credibility
Focus on delivering measurable results to build credibility. Implement performance-based pricing models, where fees are linked to actual outcomes. This not only incentivizes effective marketing but also showcases confidence in strategies.
Targeting small B2B companies or SaaS businesses can help you quickly expand. These sectors often seek digital marketing services and are more likely to engage if guaranteed results are presented. Feature case studies and testimonials to make you more credible.
How Can You Build Credibility as a Digital Marketer with No Experience?
11. Put Together a Portfolio of Successful Client Works
A well-crafted portfolio can significantly influence potential clients. Portfolios that showcase specific metrics are 22% more likely to generate leads, according to Marketing Sherpa. Statistics show that 79% of consumers want to see case studies and client work before buying. This underscores the need for credible examples. A portfolio provides a concrete evidence of your skills and experience. This is important when you're building credibility as a digital marketer.
Displaying past projects shows potential clients that you have a track record of delivering results. 88% of consumers trust online reviews as much as personal recommendations (Bright Local). This transparency helps build trust and confidence in your abilities. Your portfolio lets you showcase your unique approach to digital marketing. It gives viewers insight into your creative process and problem-solving skills. It offers a glimpse of the types of marketing solutions you offer.
How To Build a Portfolio
Get your most successful projects.
Categorize these projects by type and prioritize your strongest pieces.
Write a brief case study for every project. This should include the project's name, challenges, goals, strategies implemented, and results achieved.
Include screenshots, graphics, or data visualizations. Use before-and-after comparisons where relevant.
Include testimonials and client feedback to support your work. Use short, impactful quotes rather than long, wordy ones.
12. Collect Reviews and Testimonials From Clients
Reviews and testimonials from clients established credibility and attract new customers. Positive feedback enhances the reputation of a digital marketing agency, especially in the B2B space. Client reviews can attract new customers and help the business scale.
Brands in the SaaS industry, for instance, thrive on social proof. Highlighting positive client experiences fosters trust and drives growth for the agency. Successful marketing agencies consistently collect and display reviews. It showcases their commitment to client satisfaction. This helps maintain a strong market presence.
13. Scale Your Digital Marketing Agency
Scaling a digital marketing agency involves expanding its reach while maintaining quality service. As the agency gains reputation, it attracts new customers, leading to increased demand. As you get more projects, you'll also need to expand your team. This allows agencies to handle a diverse range of services without compromising performance. Successful agencies like Neil Patel Digital started small. They expanded by building skilled teams, offering comprehensive services.
How Neil Patel Scaled His $100M/Year Digital Marketing Agency
Neil explained that successful agencies balance long-term campaigns with short-term performance-driven ads. He stresses the importance of being present on all major platforms to maximize brand visibility. He also highlights the massive untapped potential of micro-influencers. According to him, smaller influencers yield high ROI if integrated properly with the brand. He believes AI will have a massive impact in the long run. This tool is beneficial in optimizing ad spend and analytics.
Strategies To Effectively Scale Your Agency
Hire experts in SEO, content creation, and social media to improve service quality.
Use SaaS tools to streamline operations and improve efficiency. This approach saves time and reduces errors.
Create standardized processes for common tasks to enable quicker project turnaround.
What is the Best Business Model for New Marketers with No Experience To Start?
The best business model for new marketers is local lead generation. This approach targets local traffic, making it easier to rank for keywords with less competition. New marketers can focus on specific communities or niches. New marketers have better chance for success in local markets. It's less competitive compared to national and international markets. You also get better search volume since 46% of Google searches are for local information.
The local lead gen business builds simple websites for local small businesses. It caters to essential services providers in specific locations. It's an evergreen industry that will never run out of leads. Tools like Snapps AI streamline the website creation process. They help build lead generation sites quickly. By utilizing these tools, marketers can focus on generating leads rather than technical challenges.
After a site is built, it is then ranked on Google through SEO and backlinking strategies. Building high-quality backlinks improves search engine rankings. The backlinking strategies I developed in over a decade in the business have helped new marketers enhance their site’s visibility.
Once the site is ranked, you can generate leads from it and sell to business owners or rent out the website for passive income. This dual approach earns passive income through an automated system.
Can You Build a Million Dollar Digital Marketing Agency?
Yes, you can build a million dollar digital marketing agency. However, many new agencies fail because they can't establish a solid client base. Statistics show that 72% of companies with less than 50 new leads per month can't achieve their revenue goals. Successful agencies focus on specific niches. 63% of agencies say specialization in services is their most effective way to gain new business. New agencies should also develop a strong team and implement scalable processes. Million-dollar marketing agencies have a loyal client base that has been with them for years. They also have a strong sales pipeline. This is developed through effective lead generation and conversion strategies.
What are Ways To Grow and Scale Your Digital Marketing Agency?
Is It Worth Starting a Digital Marketing Agency in 2024?
It could be worth starting a digital marketing agency in 2024. There's fair demand for this service as 6 out of 10 businesses use digital marketing. Successful agencies like NP Digital and Ignite Visibility showed the high profit potential of this business model.
However, aspiring digital marketers should consider several factors. First, assess your financial situation. Digital marketing can be expensive. It may take a while before you see a profit from your investment. So, carefully consider if you can financially sustain the business during the initial growth phase. Next, research your local market to ensure there's demand for your services. Evaluate the competitiveness of your target market. Determine if you have the right skills to match them. Plan which tools you'll need in your new agency. Factor their costs into your business plan.
Should You Start a Digital Marketing Agency with No Experience?
You can start digital marketing with no experience. Successful digital marketers like Jason Wardop started from zero, but scaled his agency to 6 figures. As an inexperienced digital marketer, you need to exert extra effort to learn the business. Focus on SEO, PPC, content marketing, social media marketing, and analytics. Choose a niche or industry type you're comfortable with. Build expertise around that niche to stand out in this saturated market.
Inexperienced digital marketers may have a limited understanding of how different marketing elements work together. It's challenging to apply theoretical knowledge to real-world scenarios. Managing client demands can be overwhelming. There's also the pressure to prove ROI from your marketing efforts to your clients.
The best business to start without experience is local lead generation. This biz builds simple websites for local service providers and ranks them on Google. Ranked websites generate leads you can sell to business owners. It's a passive income business that does not require in-depth tech skills. The skills you need to start a local lead gen biz aren't too hard to learn.
Local lead generation has a narrower focus compared to digital marketing. It's also easier to see tangible results with local lead generation. The direct connection between leads generated and business impact makes it easier to show ROI to clients. The skill set you need to master is much simpler. No need to master every skill across multiple marketing channels.
Local lead gen clients are a lot easier to deal with. I've been in this business since 2014 and I've haven't had a client fire me. I choose the clients I want to work with. Clients stick with me long-term because they need the leads I supply them. With my business partner, Dan Klein, I've taught this strategy to thousands of students. They are now making multiple figure passive income on the internet. Over 7,000 students are already part of our community through a high-level local lead gen training.
Starting a digital marketing agency is tough. You need competent staff who is well-versed in marketing, and who also can run things while you're out of the office or doing other tasks with clients. It's a very profitable business, and if you feel that you're up to the challenge you should try it. It certainly beats a 9-5.
Thanks for sharing the informative article.
Very informative article would love a follow-up. Thank you!
This article is very informative and it is really useful to everyone thanks a lot.
Hey Raghav! Thanks so much for your kind words. I’m glad you enjoyed the article and found it useful.
Hi there! This is a nice article.
Great article. very informative and impressed thanks for sharing.
Lead Generation is the major task for every business however for digital agencies its quite complicated.
Yeah, this is why we stick to local lead generation. Over the years, we’ve found it’s the best ROI for time and resources.