In the early days of marketing agencies, the entry barrier was colossal. The overhead to create these operations in a primitive digital landscape was daunting. There was also the issue of startup costs, physical media, and headaches associated with generating an ROI for your clients. Long-term “in the red” was inevitable.
In a few months, a self-taught individual or small team could create a fully functional marketing agency (with a little help).
Digital advertising is spending more of companies’ marketing budgets than ever before, and everyone wants to get in on the action. You will find in this guide three areas you need to consider if you want to create an online marketing agency from scratch.
Gain The Skills You Need
It is crucial for you to have a working experience where your clients may work before mastering your digital marketing skills. You will inevitably become a more understanding and well-rounded professional. Taking it personally does not make sense when your clients are stressed out and possibly projecting that stress onto you.
The amount of work involved in a marketing team might seem surprising to those who have never worked on one. Even simple campaigns require skill development if the team is small. Aside from the pressure to produce, the team has learned complex systems.
This involves but is not limited to:
- Creating landing pages
- Creating ads
- Positioning and messaging
- Learn about Marketo, HubSpot, and Salesforce
- Tracking should be implemented correctly
- Promoting something for hours only to see it fail
- A substantial amount of pressure to produce
Client management has the advantage that a lot of these aspects are dealt with before they come to you. When you work on them, you have the added advantage of actually knowing what you’re doing when something doesn’t work. Having been there many times before also helps you handle the pressure to deliver quality results. Choosing a white label partnership could help you to get off on the right track.
Develop A Business Model
A digital marketing agency can be set up in a variety of ways. Managing your business efficiently over time depends on what you provide and how you bill for it.
Billing methods include:
- Flat Retainer
- Percentage of Spend
Define Your Niche
You’ll be seduced by the prospect of working with any business when you’re starting out.
Any time their livelihood is on the line, cognitive dissonance can set in. The fact is that there are thousands of digital marketing agencies and consultants. They specialize in some things, but not all.
A unique selling proposition in approaching new prospects is vital unless you get referrals like salmon of Capistrano.
The benefits of focusing your services towards a clearly defined niche include added value from being specialized within an industry or type of client. Some of the most noteworthy:
- It makes onboarding easier
- It strengthens your skillset exponentially
- It gives you a competitive advantage
Perhaps you have already taken the plunge or you are thinking about it. Making a decision and sticking with it is my advice.
It takes a lot of strength to manage your own business and enjoy the perks. Life is dramatic and you should deal with it as such. Don’t drag yourself along longer than necessary if you sense you’re not up for it from the start. Making a decision and not believing in it is a recipe for failure. Commit to it. You may find running a digital marketing agency extremely fulfilling once you do.