How to Start a Digital Marketing Agency – Easy Guide

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How to start a digital marketing agency: Digital Marketing agencies are growing at a rate of 30% per year. They provide services such as SEO, PPC, Social Media Management, Email Marketing, Content Writing, etc. These companies are also known as Digital Agencies because they specialize in creating digital solutions for their customers. In this article, you will read about how to start a digital marketing agency.

A digital marketing agency is a company that provides services related to Internet marketing. The main goal of these agencies is to increase sales through advertising. It takes a few steps to start a business today. It does not take much time or effort to start a digital marketing agency. Read this article thoroughly to know more about it.

how to start a digital marketing agency

What is a Digital Marketing Agency

Digital marketing agencies are the ones who help businesses to promote and market their products or services online. They use various methods like Search Engine Optimization (SEO), Pay Per Click (PPC) ads, social media management, email marketing, content writing, website design, etc. These agencies have been around since the early 2000s, but it was only recently that they started gaining popularity. This is due to the fact that there has been an increased demand for digital marketing services.

The growth of digital marketing agencies can be attributed to the increasing number of people using the internet on a daily basis. People now spend more time browsing websites than watching TV. As a result, many businesses are looking for ways to reach out to potential customers. There are different types of digital marketing agencies. Some focus on one particular type of service while others offer multiple services. For example, some agencies may specialize in SEO while others might offer PPC services.

There are two types of digital marketing agencies:

  • Full-service agencies
  • Niche agencies

Full-Service Agencies

Full-service agencies are those which offer all kinds of digital marketing services. They usually charge higher fees compared to niche agencies. However, they are able to offer better quality work.

Niche Agencies

Niche agencies are small-scale agencies that offer specific services such as SEO, SEM, PPC, etc. They usually charge lower rates compared to full-service agencies.

Different Types of Digital Marketing Agency Business

When you plan to learn about how to start an LLC or any type of business structure, you must be clear about what kind of business you are aiming for. For digital marketing agencies, there can be many ways to start your agency. The following are some of the most common methods used by entrepreneurs today.


Franchising is one of the easiest ways to start a digital agency. All you need to do is find someone who has already started a franchise and ask him/her to sell you his/her franchise.


Another good option is partnering with another company. You partner together, and each of you takes care of different aspects of your business. For example, you may partner with a web design company to provide website development services.


Freelancing is another popular method of starting a digital marketing agency today. You offer your services to companies and individuals.


You can also start a consulting firm. Here, you advise businesses or individuals on how they can improve their online presence.

Starting Your Own Business

This is probably the best option if you are looking for a long-term career in digital marketing. If this is your goal, then you should consider starting your own business.

How to Start a Digital Marketing Agency in 2022

Starting a digital agency is a big decision. There are so many things to think about when starting a company. First thing you need to decide on is the state you want to start your company in. Though in the case of a digital marketing agency, you can work from anywhere, you must register your business in one state.

Once you have decided the state you will start your business in, here we’ll give you some tips on how to make sure you’re ready before you launch.

1. Do Your Research

Before you jump into launching a digital marketing agency, you must first understand the industry. What does it entail? How much competition is out there? Where are the best places to find clients? Make sure you do your homework thoroughly. In the digital marketing industry, along with the popularity, the competition is growing at exponential rates. It will not be easy to stand in the crowd if you don’t have enough resources in hand.

You must have a clear idea of what kind of business structure you are aiming for, what will be your client base, what kind of digital marketing agency you will want to start, and so on. Select a unique yet catchy name for your business, register your business in the state, apply for EIN, permits, and licenses, and finally, start working on your digital marketing agency.

2. Create a Business Plan

Once you’ve done your research, you’ll need to put together a detailed plan. Write down all of the details of your business, including your vision, mission statement, goals, target audience, pricing structure, etc. Your business plan must include the cost of starting the business. Now, apart from the cost of establishing an agency, you must consider the state filing fees, taxes, and other permits. For example, if you are going to start a Montana LLC, you have to pay $70 to the state as the filing fee. On the other hand, if you start your Florida LLC, you have to pay $125.

While making your business plan, you must consider these things. Your digital marketing agency needs people if you’re offering a full package. Proceed step-by-step when you have a full business plan with you.

3. Hire Employees

The next step for you is to hire employees. You can hire virtual managers, or if you have office space, then you can hire offline people for your company. You may be thinking, “I’m going to hire employees, but I don’t have any experience.” Don’t worry! We’ve got you covered. Here are some tips on hiring employees:

  • Look for candidates with relevant experience.
  • Ask questions during interviews to ensure you’re getting the right fit.
  • Be prepared to train your team members.

4. Launch Your Website

Now that you’ve hired employees, created a business plan, and launched your website, it’s time to promote your brand. To do this, you’ll need to build a strong social media presence. A website is the best way to promote your service in any business. You need to design a proper and unique logo, a brand name, and detailed service pages to make an attractive website.

In today’s era, more than a brick-and-mortar office, it is the website that people search for at first. Your website must have all the information regarding your services, pricing, and how to contact your company so that your potential clients can easily contact you.

5. Build Relationships With Clients

It’s also important to establish relationships with clients. When you meet with prospects, ask them what they expect from you. Are they looking for SEO, PPC, content creation, email marketing, etc.? Once you know what they need, you can tailor your service offerings accordingly. In any business, especially in the digital marketing business, the user intent should be fulfilled 110%. For any digital marketing agency, it is important to keep in contact with their potential clients. It could be social media platforms, email blasting, or cold calls; building relationships with clients is important.

6. Grow Your Team

Finally, you’ll need to grow your team. As your business grows, you’ll need to hire additional staff. Before you begin recruiting, however, you’ll need to develop a job description. This document will outline exactly what you’re looking for in a candidate.

Why You Should Start a Digital Marketing Agency

Starting your own digital marketing agency is not difficult if you follow a few simple steps. If you want to become successful, then starting your own business is the best way to do so. There are several benefits associated with starting a digital marketing agency. Let’s discuss them below:


Starting your own digital marketing agency gives you flexibility when it comes to working hours. You don’t need to worry about getting up early in the morning or staying late at night. You can choose your own schedule. Also, for example, if you start an LLC in Texas for your digital marketing business, you don’t need to be in Texas all the time to operate your business.


You get freedom from having to answer to anyone else. When you run your own business, you are responsible for everything. You decide what kind of work you want to do and when you want to do it.


Starting a digital marketing agency allows you to earn money without having to go through any formalities. It also helps you save money because you don’t have to pay salaries to employees.


Running a business requires responsibility. You must take care of every aspect of your business. You should know what needs to be done and when it needs to be done.


Starting a business is a great opportunity to express your creativity. You can come up with new ideas and implement them into your business.


Starting a digital marketing firm provides you with an opportunity to build relationships with clients. This could lead to future collaborations. It does not matter whether you have California LLC for your digital marketing business or a Wyoming LLC; you can always be connected to your clients via the internet and serve them what they require.


Starting a digital marketing company teaches you a lot about running a business. You learn how to manage finances, handle staff, deal with clients, etc.


If you love doing something, then why not start your own business? Running a business is fun and exciting. You get to meet people who share the same passion as you.

Pros and Cons of Running a Digital Marketing Agency

  • You can work from anywhere in the world.
  • No commute time.
  • You don’t have to deal with clients.
  • You are responsible for your own success or failure.
  • It’s hard to find good people.
  • There is no guarantee that you’ll make money.

Benefits of Starting a Digital Marketing Agency

Having a digital marketing agency is quite profitable today. The industry has become large in no time and still growing. People are shifting from mainstream advertising to digital platforms as it has more potential clients than mainstream.

1. You get to work remotely

If you’re looking to start a digital marketing agency business, then working remotely might just be the best option for you. Working from home means that you don’t have to worry about commuting time, traffic jams, parking fees, etc. All these things can eat away at your precious time and make it difficult to focus on what matters – running your own business. If you want to run a successful company, then you need to spend quality time focusing on your business. By working remotely, you can do exactly that.

2. No commute

Another benefit of working from home is that you won’t have to deal with any commutes. Instead of spending hours stuck in traffic, you can now enjoy your free time doing anything else you want without having to worry about getting back home. In fact, if you live in a big city, you may even find yourself walking to work instead of driving!

3. Flexible schedule

Working from home gives you the freedom to set your own schedule. You can choose to work whenever you feel like it and take breaks whenever you want. There’s no boss telling you when to wake up or go to bed. You can literally sleep until noon and still not miss out on any deadlines.

4. Save money

When you work from home, you save a lot of money compared to those who work in an office. Not only does it cost less to rent an office space, but you also don’t have the additional expenses associated with commuting costs. Plus, you can easily cut down on your monthly bills since you don’t pay for utilities like electricity and water.

5. Better work environment

Since you’ll be working from home, you’ll have a private workspace where you can concentrate and focus on your work. This way, you can avoid distractions and interruptions that could affect your productivity. You can also use your home office as a place to host meetings with clients or colleagues.

Disadvantages of Starting a Digital Marketing Agency

Though the world of the digital platform is quite lucrative, however, there are some cons to having your own Digital Marketing Agency.

1. You have to work long hours

You’ll need to put in a lot of time working on your own projects. If you want to make money doing something you love, then you’re going to need to dedicate yourself to it 100%. That means no socializing, no drinking, and definitely no sleeping. Besides, you are the one who will be responsible for the success as well as the failure of your business.

2. Your clients may not pay their bills

If you don’t charge them upfront, they might never pay you at all. And if they do, they’ll probably only pay you after they’ve already spent thousands of dollars on advertising. So even though you’re helping them get free traffic, you won’t actually be making any money until months later. There’s a chance that your clients will just stop paying you once they realize they can get the same results themselves. Or worse yet, they might start charging you monthly fees without telling you about it.

3. It’s hard to find good people

The internet is full of people who claim to be experts at everything. But how many of those people really are? How can you tell whether someone’s advice is good or bad? There’s no way to tell unless you take action and try out what they say.


How do I get started with a new Digital Marketing Agency business?

The first step is to find out what kind of digital marketing agency business you want to start. There are three main types of businesses: 1) Lead Generation, 2) Conversion Optimization, and 3) Social Media Management. Each one has different challenges and opportunities. If you choose to work for yourself, you need to decide whether you want to be a solo entrepreneur or join a team.

What kind of business model works well for a digital marketing agency?

A digital marketing agency should be able to provide different types of services such as SEO, PPC, Social Media Marketing, Email Marketing, Web Design, etc. The best way to do this is to offer these services under one roof. This allows clients to choose which service they need at any given moment.

How do I get started with SEO?

The first step is to understand what search engine optimization is all about. Search engines like Google use algorithms to rank websites based on how relevant they are for specific keywords. If you want to be found when someone searches for something related to your business, then you need to optimize your website for those keywords. This means making sure that your site has high-quality content and that it loads quickly.

How do I get paid?

The best way to get paid in your digital marketing agency is through performance-based contracts. This means that you receive a percentage of revenue generated from clients you refer to your company. If you don’t want to use performance-based contracts, then you should be compensated for your work using hourly rates.

What kind of business structure should I choose for my digital marketing agency?

The best way to start a digital marketing agency is to create a limited liability company (LLC). This allows you to protect yourself from personal liabilities and gives you the ability to raise capital through equity financing. However, if you want to be able to hire staff members, then you need to form a corporation instead.

Why Start a Digital Marketing Agency is So Important

Launching a digital marketing agency could be considered as essential as ever to help businesses navigate the intricacies of this ever-evolving online world. Simply put, digital marketing agencies are crucial in enabling businesses to reach and engage their target audience effectively. Online marketing encompasses a myriad of strategies and techniques, ranging from search engine optimization (SEO) to social media advertising, conversion rate optimization, and content creation. Mastering each of these fields requires a highly specialized skill set that many business owners lack the time or expertise to develop on their own.

One of the primary advantages digital marketing agencies bring to the table is their ability to devise comprehensive and tailored strategies for each client. Recognizing that a one-size-fits-all approach often falls short, these agencies invest significant time and effort in understanding their clients’ specific goals, target audience, and unique value proposition. By doing so, they can generate effective digital marketing campaigns that grab consumers’ attention and generate tangible results.

In addition to their expertise, a digital marketing agency’s wide range of services allows businesses to leverage different channels for maximum impact. From social media platforms like Facebook, Instagram, and LinkedIn, to email marketing and content creation, agencies have extensive knowledge of the ever-expanding digital toolbox. This knowledge allows them to deploy a combination of strategies that will resonate most effectively with their clients’ target audience and drive desired actions.

Moreover, digital marketing agencies offer another indispensable service: monitoring and analyzing data. In an online environment, data reigns supreme, providing invaluable insights into consumer behaviors, preferences, and market trends. Digital marketing agencies have the technological resources and expertise to collect and analyze this data in real-time, enabling businesses to make data-driven decisions and refine their strategies accordingly. Tracking digital campaigns not only helps identify opportunities for improvement but also demonstrates the return on investment businesses can expect from their marketing efforts.

Furthermore, embarking on the digital marketing journey solo can be overwhelming for many businesses. Keeping up with rapidly changing algorithms, emerging trends, and evolving platforms can be a full-time job in itself. Trusting a digital marketing agency with this responsibility not only alleviates the burden from businesses but also ensures that strategies remain innovative and up-to-date. Agencies’ dedicated teams of experts stay at the forefront of industry changes, ensuring that their clients’ marketing tactics align with market developments, guaranteeing a competitive edge.

Ultimately, the significance of starting a digital marketing agency lies in its potential to transform a business’s online presence and success. As more businesses recognize the immense benefits of effectively conducting online marketing campaigns, the demand for digital marketing agencies will continue to soar. By providing targeted strategies, expertise across various platforms, access to crucial data insights, and simplified management of online marketing activities, these agencies play an instrumental role in propelling businesses to new heights in the virtual realm.

In Conclusion

We hope our guide has helped you understand what it takes to start your own digital marketing agency and how to go about doing so. If you want to learn more about starting your own digital agency, check out our previous articles. Share your feedback with us, comment below or contact us for more.

About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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