Wondering how to start a digital marketing company so you can partner with great clients who will benefit from your services?

With businesses pouring more and more resources into digital marketing, the demand for specialized agencies is skyrocketing. Chances are, you see a prime opportunity and are eager to carve out your own niche in this lucrative field.

In this guide, I’ll walk you through the steps you need to take to launch a successful digital marketing agency, from the initial back-of-napkin idea to profitability.

What Do I Need to Start a Digital Marketing Agency?

Starting a digital marketing company requires a well-thought-out strategy and a solid foundation. 

First and foremost, identify an issue potential clients face, so you can develop a solution that addresses their needs. This central problem will shape all of your decisions as you create your offerings and build your brand.

At the same time, you’ll also need experience in digital marketing. Whether from previous jobs, freelance projects, or personal ventures, hands-on experience will lend credibility to your agency. Partnering with white label SEO resellers can help you delegate tasks to ensure you deliver on your promises. 

I’ll cover how to figure out what services to offer in a bit, but for now, reflect on your professional experience and how it will translate to starting a digital marketing company. 

Equipping yourself with the proper tools is another critical step. Use industry-standard software for SEO keyword research, analytics, customer relationship management (CRM), content scheduling, and other essential functions. These tools will help streamline your operations, increase productivity, and help you deliver better results for your clients.

Financial planning is also essential. Establish a realistic budget that covers initial setup costs, marketing expenses, and operational overhead. Consider costs for software subscriptions, professional services, and marketing efforts to promote your agency. 

Having a financial cushion will help sustain your business during the initial phases as you find your first client (and will protect you during the normal ups and downs of running your own business).

Most importantly, you’ll need the passion and discipline to run a business. Entrepreneurship demands perseverance, the ability to handle setbacks, and a proactive approach to problem-solving. You’ll also need effective time management and task-tracking systems to consistently deliver quality work, meet deadlines, and exceed client expectations.

8 Steps to Start a Digital Marketing Company

Ready to use your SEO and digital marketing skills to build your own business and serve clients who need your expertise? 

Let’s talk about how to start a digital marketing company from scratch.

Step #1: Research Specialities and Pick a Niche

Digital marketing is highly competitive, so it pays to be a specialist. Do online research and select a niche that aligns with your expertise and interests. 

Focusing on a specific target market, such as: 

• B2B content marketing
• E-commerce
• SaaS SEO
• Real estate

This can help you differentiate your company from competitors and attract clients who value your insider knowledge.

Once you’ve picked a niche, map out your target audience. Yes, you’ll be serving companies, but individual people will be the decision-makers. So you’ll need to get to know those people. 

Create a customer avatar, including demographics, pain points, goals, and preferences. You’ll use this avatar to map out your services and create your brand.

Scared of niching? Don’t be. A narrow target audience allows you to create targeted marketing strategies, build a strong reputation within your niche, and achieve better results for your clients.

Step #2: Define Your Services

Once you’ve determined your ideal client, it’s time to define the services you will offer. Depending on your expertise and interests, consider including:

• SEO
• Web development
• Ad campaigns
• Email marketing
• Social media management
• Content creation
• Omni-channel marketing

Be specific about what each service entails and how it benefits your clients. Clarity will help you attract the right customers and set expectations.

Looking for more help with defining your offerings? Traffic Think Tank Academy offers resources and templates to help agency owners create compelling services and write winning proposals.

Step #3: Choose Your Initial Pricing Model

Next, you’ll need to determine the digital marketing agency pricing model based on your target audience, industry standards, and the value you provide. Consider factors like the complexity of the services, the time and resources required, and the profit margins you’re shooting for.

Here are common pricing models for digital marketing companies.

A la carte: Clients select individual services they need and pay for each service separately.

• Pros: Flexibility for clients, easy-to-understand pricing.
• Cons: Potentially lower revenue, harder workload to predict.

Project-based: Clients pay a fixed price for a specific project or set of deliverables.

• Pros: Clear scope and pricing make it easier to manage resources.
• Cons: Limited flexibility, potential for scope creep.

Retainer: Clients pay a fixed monthly fee for a set number of hours or services.

• Pros: Predictable revenue, builds long-term relationships with clients.
• Cons: Requires careful management of time and resources.

Hourly: Clients pay for the actual time spent working on their projects.

• Pros: Simple to understand, easy to track time and bill accordingly.
• Cons: Potential for clients to question time spent, harder to predict revenue.

Once you’ve chosen a pricing model, a great way to define your services is to create a template proposal that outlines your services, pricing, and the expected outcomes for your clients.

Consider using an SEO proposal as a sample project. 

Proposals are one of your most valuable tools when pitching to potential customers because they demonstrate your expertise and help clients understand the value you bring to their business.

Step #4: Create Your Brand’s Concept and Identity

You’ll need a strong brand concept and identity to stand out from your competitors. 

Start by choosing the colors, fonts, and imagery that align with your brand’s personality and values. Use your colors and fonts to create a logo that visually represents your agency and appeals to your target audience. 

Then establish your brand tone of voice, which defines how you communicate with your clients and audience. Your voice should be consistent across all channels, including your website, social media, and client communications. 

Do you want to be seen as friendly, authoritative, humorous, or totally unique? Make sure your brand’s vibe is different from competitors and resonates with your target market.

Step #5: Register Your Business

Before officially launching your digital marketing agency, you’ll need to register your business with the appropriate government entities. The specific requirements and process will vary depending on your location and the structure of your business, such as a sole proprietorship, partnership, or limited liability company (LLC).

Registering your business establishes your agency as a legal entity, provides liability protection, and allows you to open a business bank account and enter into contracts with clients. While the process may seem daunting, it’s a crucial step in setting up your digital marketing agency for long-term success.

Research the registration requirements in your area and consult with a legal professional or accountant to ensure you follow all necessary steps. Generally, you’ll need to choose a business name, obtain an Employer Identification Number (EIN) for tax purposes, and register with your state or local government.

Step #6: Build a Dream Team

While handling everything on your own in your digital marketing company may be tempting, going solo can limit your agency’s growth. Building a team will help you deliver high-quality services to clients.

Assess the internal processes and roles essential for your agency’s operations, such as account management, sales, and marketing. Determine which positions require full-time employees and which ones you can outsource to freelancers or contractors. 

For example, if SEO is one of your core service offerings, consider hiring an in-house SEO team to ensure quality and consistency.

Remember that investing in your team is investing in your agency’s future, so take the time to find the right people. As you’re hiring, look for individuals with the skills and experience you need, and don’t forget about culture fit.

Step #7: Create Your Online Presence

Your agency’s website is your online business card, and it’s a crucial tool for converting leads into customers. Invest time and resources into creating a professional, user-friendly website that showcases your services, expertise, and unique value proposition.

Start by securing a memorable domain name that reflects your brand, then choose a reliable web hosting provider. Chances are you already have opinions about web hosts, but as a quick refresher, here’s what I recommend looking for:

• Reliability: Look for a host with a high uptime guarantee (99.9% or better).
• Speed: Choose a service that offers fast server response times and optimized infrastructure to provide a smooth user experience.
• Scalability: As your agency grows, your website will need to accommodate increased traffic. Select a host that offers scalable solutions.
• Security: Ensure your host provides robust security features, such as SSL certificates, regular backups, and DDoS protection, to safeguard your site and client data.
• Customer support: Your web host needs responsive, knowledgeable customer support that’s available through multiple channels (e.g., live chat, phone, and email).
• Pricing: Compare pricing plans and features across multiple hosts to find the best value for your needs – but don’t sacrifice quality for the lowest price.
• Content Management System (CMS) compatibility: If you plan to use a specific CMS like WordPress, make sure your host offers easy installation and optimization for that platform.
• Email hosting: Having professional email addresses linked to your domain adds credibility to your agency, so look for a host that includes email hosting with your package.
• Migration assistance: To simplify the process of transferring an existing website to a new host, look for a provider that offers free or low-cost migration assistance.

If you have web development skills, you can build your website in-house using WordPress or Squarespace. Alternatively, consider hiring a web designer or agency to create a custom site.

Your website should include clear information about your services, pricing, and process. Incorporate your portfolio and case studies to demonstrate your expertise and the results you’ve achieved for clients. 

And, of course, remember to include conversion-focused SEO copywriting and optimize your site for search engines so potential clients can find you online when they search for your specialty. 

Include calls to action (CTAs) throughout your site to encourage visitors to contact you or request a proposal. 

Step #8: Attract Your First Clients

Now that you’ve established the foundation of your digital marketing agency, it’s time to promote your services and attract your first clients. 

Don’t underestimate the power of cold calling and cold emailing during this process. While these methods may have a bad reputation, they can be effective when done right. Develop a strategic plan and play the numbers game. 

Customize your pitches to show that you’ve done your research and genuinely understand each prospect’s needs. 

Create a compelling agency pitch deck highlighting your services, case studies, and unique selling points.

Networking is one of the most powerful tools for growing your agency. Focus on building genuine connections with people in your industry and related fields. 

Consider actions like:

• Attending industry events
• Joining online communities
• Engaging with potential clients on social media
• Seeking out partnerships with complementary businesses

When you’re networking, offer value, share insights, and be generous with your time and knowledge. These relationships can lead to valuable partnerships, referrals, and even direct client opportunities.

Don’t forget to leverage your existing client relationships. Ask previous SEO clients (or other satisfied customers) for referrals and testimonials. Word-of-mouth recommendations from trusted sources can be one of your most valuable sources of business.

Promoting your agency is an ongoing process, so be persistent, track your results, and continually refine your approach based on what works best for your target audience.

7 Tips for Running a Digital Marketing Agency

As you get into the nitty-gritty of running your business, you’ll quickly realize it comes with its own set of challenges and opportunities. 

Let’s discuss some tips about how to run a digital marketing agency smoothly.

1. Don’t Cut Corners

As I’ve mentioned, digital marketing is competitive. I understand that it might be tempting to cut corners to save time or money. However, shortcuts often lead to subpar results, dissatisfied clients, and a tarnished reputation. Always prioritize quality and integrity in your work, even if it means investing more resources.

When executing campaigns or delivering services, follow best practices and use proven strategies backed by data. Resist the urge to take the easy way out by using questionable tactics or automation tools that compromise the effectiveness of your work.

Remember, your agency’s success depends on your ability to deliver consistent, high-quality results. If you maintain your commitment to excellence, you’ll build trust with your clients, establish a strong reputation, and set your agency up for long-term success.

2. Set Clear Expectations with Clients

One of the most critical aspects of running a successful digital marketing agency is setting clear expectations with your clients.

Develop a detailed client onboarding process that includes a thorough discovery session to uncover their goals, target audience, and unique challenges. Use this information to create a comprehensive proposal that outlines your recommended strategies, tactics, and projected outcomes. 

Be transparent about what your clients can expect from your team and what you need from them to get the results they’re looking for.

Before you begin any project, ensure your team and the client have a shared understanding of the scope, timeline, deliverables, and success metrics.

Building trust is an ongoing process, so maintain open lines of communication and provide regular updates on progress, challenges, and wins during each project.

3. Highlight Your Expertise

As a digital marketing agency, your clients rely on your expertise to guide their online success. To build trust and credibility, showcase your knowledge and experience.

Develop a strong content strategy that positions your agency as a thought leader in your niche. Create blog posts, whitepapers, case studies, and videos demonstrating your deep understanding of the latest digital marketing trends, strategies, and best practices. 

Share these resources on your website, social media channels, and industry publications to establish your authority and attract potential clients.

When communicating with clients, present your ideas and recommendations confidently, and back them up with data, research, and real-world examples. Don’t be afraid to challenge assumptions or suggest alternative approaches when appropriate.

That said, presenting your ideas respectfully and professionally is equally important. Always remember that your clients trust you to handle their digital marketing efforts, and they deserve to be treated with respect.

When offering suggestions or critiques, frame your feedback constructively and focus on solutions rather than dwelling on problems. Use language that is clear, concise, and free of jargon or technical terms that may confuse or alienate your clients. Take the time to listen to their concerns, questions, and ideas, and be open to collaboration and compromise when appropriate.

4. Surround Yourself with the Right People

As mentioned above, building a successful digital marketing agency isn’t a solo endeavor. To succeed, you need to surround yourself with a team of skilled, passionate, and reliable professionals who share your vision and values.

When hiring employees or contractors, look for individuals with a proven track record of success in their respective fields, whether it’s SEO, PPC, content creation, or web development. 

Beyond technical skills, seek out team members who are proactive, creative problem-solvers, and effective communicators. The right people will add to your team’s expertise and contribute to a positive, collaborative company culture.

5. Choose the Right Tech Stack for Your Agency

From project management software to analytics platforms, the right tools can help you work more efficiently, collaborate effectively, and make data-driven decisions in your company.

When selecting tools for your agency, consider factors like ease of use, scalability, integration with other platforms, and cost-effectiveness. Look for tools that align with your agency’s specific needs and workflows, and be open to adapting your tech stack as your business evolves.

Semrush is an invaluable tool for digital marketing agencies. It’s an all-in-one platform that offers a suite of features to support your SEO, PPC, and content marketing campaigns. 

The platform also gives you specialized tools to grow your agency by automating your pitching process, creating white-label processes, and managing workflows.

6. Be Quick on Your Feet

The digital marketing world changes daily. You’ll need to adapt quickly to respond effectively to shifts in market trends, client needs, and tech advancements.

Build a culture of flexibility within your agency. Encourage your team to experiment with new ideas, learn from failures, and iterate based on data-driven insights.

When faced with unexpected challenges or opportunities, be prepared to pivot your approach as needed. Break larger projects into smaller, manageable tasks that can be completed and reviewed in short sprints, so you can gather frequent feedback and course correct as needed.

7. Build a Culture of Continuous Learning and Improvement

Complacency can be the death knell for an agency, so commit to continuously improving your skills and processes to provide the best possible service to your clients.

Don’t be afraid to take a hard look at what’s working and what’s not. Seek out feedback from your clients, your team, and other folks in the industry, and use that input to figure out what you can do better. That might mean tightening up your processes, adding new services, or investing in the latest tech.

Make sure your team is always learning and growing. Send them to conferences, sign them up for courses, and encourage them to earn new certifications. Create a culture where everyone is excited to share new ideas and best practices.

If your agency delivers SEO services, stay on top of the latest industry trends and algorithm updates. And be ready to pivot when needed.

Want More Than the Basics of Starting a Digital Marketing Company?

Starting and running a successful digital marketing agency can be exciting and rewarding (and also lucrative!), but I’m not going to lie: You will face challenges as an agency founder. 

Our agency growth lessons in TTT Academy provide in-depth insights, proven strategies, and actionable advice from industry experts who have built successful agencies. When you join our community of like-minded professionals, you’ll gain access to the tools, knowledge, and support you need to scale your agency and achieve your goals.

If you’re looking for a supportive community and valuable resources to help you take your agency to the next level, learn more about signing up for TTT Academy.