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Feb 5, 2025
Ready to break out on your own but feeling stuck? Not sure exactly how to start a marketing business? I understand completely, I’ve been in that exact position. Launching your own agency or finally going freelance feels like trying to solve a puzzle with missing pieces — you know where you want to end up, but the path there isn’t clear.
There are so many decisions to make. From defining your niche and setting your prices to choosing the right marketing agency software and finding the first clients, it’s all overwhelming.
Here’s the encouraging part: while being your own boss isn’t easy, following a proven framework will help you avoid common pitfalls and move forward more confidently. Let’s see how that works.
A marketing business involves providing strategic communication and promotional services to help other companies grow their customer base and increase revenue. These services typically include digital marketing, content creation, social media management, and advertising campaigns designed to connect brands with their target audience.
A common mistake you can make when starting your marketing business is trying to do it all: a little bit of content, some social media, throw in graphic design, and paid ads on the side. While some agencies offer a wide array of services, it probably took them a while to get there.
Start by specializing and focusing on what you can do best. It will help you provide true expertise and attract the right clients.
Let me help you break down the main types of marketing businesses. Your choice will depend on your skills, interests, and the current market demand.
Social media management sits at the heart of modern brand communication. A social media marketing agency creates engaging content, manages community interactions, and builds brand presence across platforms like Facebook, Instagram, LinkedIn, and TikTok.
Starting this type of agency makes sense if you excel at creating viral content and understanding platform-specific trends.
Take We Are Social, a leading global social media agency known for its creative, social-first campaigns. It has 19 offices worldwide and boasts clients such as McDonald’s, Under Armour, and Adidas. However, when Nathan McDonald and Robin Grant founded it in 2008, it was only a small business fighting to get noticed one client at a time.
Today, the social media and agency landscape is crowded. Still, there are also many social media tools for agencies that help them streamline operations and reach clients and audiences more efficiently.
Content marketing agencies specialize in creating valuable, relevant content that attracts and retains customers. From blog posts to ebooks, these agencies help businesses establish authority in their industries.
Animalz stands out as a successful marketing agency using specialization in the SaaS niche and advanced content planning tools to create high-impact content for companies.
This path suits you if you have strong content skills and strategic thinking abilities. As a content marketing freelancer myself, I can say that this type of business allows you to build strong, long-term relationships with clients who value clear writing and invest in making their voices heard in a meaningful way.
Influencer marketing agencies connect brands with relevant content creators and manage content collaboration campaigns.
This specialty works well if you have strong networking skills and understand creator economics.
The Influencer Marketing Factory is a good example in this space, managing campaigns that blend authenticity with commercial success. Have a look at their case studies to understand the type of campaigns you could run if you choose this niche.
SEO agencies optimize websites to rank higher in search engines and drive organic traffic.
SEO is a more technical niche, requiring deep knowledge of search algorithms and content optimization. If you enjoy data analysis and technical problem-solving, this could fit your marketing business.
For example, Ahrefs started as an SEO agency before developing its popular toolset, showing that there is a lot of growth potential in the digital marketing industry and that the thing you start can be just a stepping stone.
Email marketing agencies craft personalized communication strategies that nurture leads and drive conversions.
They manage everything from email marketing calendar planning to automation sequences. Email marketing suits you if you understand customer journey mapping and have both copywriting and sales skills. You should also be well-versed in digital marketing tools, as email marketing has a strong technology component.
If you want to study a successful example, check out Litmus, a company that has become a leader by combining strategic email marketing with innovative testing tools.
PPC agencies manage paid advertising campaigns across search engines and social media platforms. This niche demands strong analytical skills and budget management expertise.
Consider starting a PPC business if you excel at data analysis and enjoy delivering measurable results. Know that clients will expect clear outcomes and that your success will depend on delivering them. So, if you’re more of a numbers guy or gal rather than a wordsmith (though ads do need copywriting), PPC could be the right choice.
WordStream is a good example of a PPC agency that provides both free tools and paid solutions to help businesses be more efficient with their online advertising.
So far, I’ve discussed more niche agencies. If you want to provide a wider array of services, a general digital marketing agency offers comprehensive online marketing solutions, combining various digital marketing services under one roof.
If you prefer variety and have broad marketing expertise, digital marketing services could be the way to go. Keep in mind that you will be competing with large agencies that have a lot of resources to provide expertise in many areas. Not to say that you can’t do the same, but it might be more difficult when starting out.
WebFX, for example, shows how a full-service approach can create successful campaigns across multiple channels, serving diverse client needs.
Is your mind running back and forth between opportunity and fear? What happens if you start your marketing agency? And what does it mean if you don’t? Again, I’ve been there, and it’s foggy (with a chance of sunshine).
Let me share the key benefits and challenges of starting your own digital marketing agency.
Pros
Cons
Nobody built a successful digital marketing agency on day one. But everyone has had to go through the following steps. Having a structured framework like the one below helps reduce the hurdles.
Starting a marketing business requires careful planning, strategic thinking, and its own marketing strategies.
While the digital marketing landscape offers plenty of opportunities, success depends on following a structured approach. Here’s a comprehensive guide to help you build a strong foundation for your marketing agency.
Effective market research shapes every aspect of your marketing business, from your unique positioning to your client acquisition strategy. This first step reveals opportunities and potential pitfalls.
I spoke with Ryan Keiffer, Managing Partner of Track 2 Consulting, about this recently. He emphasized:
Positioning is critical to successfully build any marketing business, but it is something that can evolve over time. That said, always spend a lot of energy and research on positioning before launch. Analyze the common marketing problems you are uniquely capable of solving, what target audiences have these problems most frequently, how these targets solve those problems now, and what would motivate them to give your services a try.
Don’t think that visiting a few competitor websites will do the trick.
Monitor industry forums, social media conversations, and professional networks to identify patterns in client needs and pain points. This intelligence will inform everything from your service offerings to your outreach methods, ensuring your agency enters the market with a compelling and relevant value proposition.
Study how your potential clients communicate their frustrations, where they seek solutions, and what approaches they resist. For instance, if you notice your target audience consistently criticizing aggressive cold email tactics on LinkedIn, you might want to focus on building authority through thought leadership instead.
As mentioned before, trying to be everything to everyone might not be the best starting point. Instead, concentrate on services you excel at so you can more easily stand out among other digital marketing businesses.
What experience do you already have? Where do you excel, and what do you enjoy doing? Maybe you’re exceptional at creating social media content, or perhaps your strength lies in data-driven SEO strategies.
Consider targeting a particular industry or business size. A niche focus, such as “SEO services for SaaS companies” or “social media management for fitness brands”, makes your marketing efforts more effective.
Focus helps you develop deeper expertise, ask for higher rates, and attract clients who value your specific knowledge. However, maintain some flexibility in your early stages. Your initial business concept might evolve as you gain real-world experience and client feedback.
For example, when I started out, I didn’t know whether to focus on crafting newsletters, website content, or shorter copy for ads. However, through client interaction, I discovered a high demand for long-form content.
Let your target audience’s needs guide your specialization while staying true to your core abilities.
A solid business plan turns your vision into actionable steps. This document should outline your service offerings, target market analysis, competitive positioning, and financial projections. Think of it as your agency’s foundation.
Your plan should include specific, measurable goals for different stages of your business. Include both short-term objectives, like securing your first five clients, and long-term aims, like expanding your team or launching online digital marketing courses.
Address key aspects like startup costs, pricing strategies, and marketing tactics. While your plan will evolve, having these elements clearly defined will help you make informed decisions and track your progress effectively.
If you’ve never done this before and it feels overwhelming, consider hiring a consultant or speaking to a mentor with experience in your niche. Get help to do it right — you’ll be happy you did.
Creating detailed prospective client profiles helps you target and attract businesses that align with your services and values.
For example, are you creating a B2B or B2C business? Are you targeting big or small clients? The differences matter, as needs and pain points will be different.
Think about factors like industry, company size, budget range, and marketing needs. This targeting makes your marketing message more compelling and increases your conversion rates. However, it’s not all sunshine and rainbows.
Fab Giovanetti, Founder of Alt Marketing School, talked to me about what she found important when launching her business:
I think the biggest mistake is not making mistakes. It’s a really annoying answer, I know, but I think you have to go through some of the process. For example, accepting a client that is not the perfect fit – maybe because it’s a lesson you haven’t learned yet, or maybe because you just need to pay the bills right now. You know? So don’t lose sleep worrying about making mistakes. You need to experience some of the good and the bad and ugly of running a business, because learning how to deal with a difficult client, and learning how to say no to a client, only happens if you go through that experience and grow from it.
Your initial ideal client profile might be theoretical, based on research and assumptions. Real-world experience will refine this vision.
All freelancers and agencies have had to deal with less-than-ideal clients. But this teaches you valuable lessons about what you truly want your business to become. These experiences help you understand both who you serve best and who you enjoy working with most.
Here comes the tricky part. How do you price your services? Price yourself too low, and you’re headed to burnout and frustration. Price yourself too high, and clients may stay away.
Start by understanding your market value and the true cost of delivering your services. Consider factors like time investment, expertise level, and the actual results you deliver to clients. Factor in operational costs, including software subscriptions, team member salaries, and business development time.
Popular pricing models include hourly rates, project-based fees, retainer agreements, and value-based pricing.
While hourly rates offer transparency, they can limit your earning potential. Monthly retainers provide steady income but require clear deliverable boundaries. Value-based pricing, where you charge based on the results you generate, often yields the highest returns but requires proven success metrics.
In my business, I offer a mix of models depending on client needs and project types. I find that flexibility works best, and I periodically reevaluate and adjust my rates to ensure a good balance between market demands and sustainability.
You may need to test different models before you find your ideal one.
This might not be the most creative or thrilling part, but choosing the right legal structure and handling regulatory requirements creates a solid foundation for your marketing business.
Each business structure — sole proprietorship, LLC, or corporation — offers different benefits and protections. Your choice affects taxation, liability, and future growth opportunities.
For example, in the United States, common requirements include:
Depending on your location, requirements will vary.
Working with an accountant is important for navigating tax obligations and financial planning. They help structure your finances properly from the start, ensuring compliance with tax laws and identifying potential deductions.
Creating a strong digital presence is essential for a thriving (and surviving) marketing business.
A website that showcases your expertise, services, and successful client work is a good start. Effective website content planning ensures your site communicates your value proposition clearly and attracts your target clients.
Ryan Keiffer also highlighted the importance of strategic social media presence:
Social media is about having conversations that build relationships. On which social channels are your targets most active? Invest time there. Engage in conversations. Participate in forums. And most importantly, share useful, actionable content. If there is a budget for paid social marketing, these activities can be amplified by pushing your content out to your target audience that you might not already be connected with. But paid social alone is not enough; useful, actionable content must be the foundation.
As you manage multiple social media accounts, focus on platforms where your potential clients spend time. Use tools to schedule social media posts consistently, maintaining an active presence without overwhelming your schedule.
Your online presence should demonstrate the same marketing expertise you’ll provide to clients. Share industry insights, case studies, and helpful tips that position you as a thought leader in your chosen specialty. This builds credibility and attracts potential clients who value your specific expertise.
Strong search engine visibility is crucial for attracting qualified leads to your marketing business.
Implementing an effective SEO workflow helps potential clients find you when searching for marketing services in your specialty area. This organic discovery often leads to higher-quality leads since these prospects are actively seeking the solutions you provide.
If you have SEO expertise, dedicate time to optimizing your website, creating valuable content, and building authoritative backlinks. Focus on keywords that your ideal clients use when searching for marketing services.
Your own SEO success can serve as a powerful portfolio piece, demonstrating to potential clients what you can achieve.
Don’t hesitate to hire an SEO specialist if this isn’t your strength. While it requires an initial investment, professional SEO services can deliver long-term returns through consistent lead generation.
Let’s talk about one of the fears that might be holding you back from starting your business: getting clients.
You might be amazing at social media marketing, but lead generation for marketing agencies? That’s a whole different game.
I asked Elisa Montanari, Head of Organic Growth at Wrike, about lead generation. Here’s her take:
Driving leads to your business requires a very specific skill set you might not have acquired yet in your career, but it doesn’t mean you’re a ‘bad’ marketer—you may simply have expertise in a different aspect of the field. If you’ve never done cold outreach or lead generation, you’ll need to start learning those skills or partnering with someone who already has them.
Consider implementing multiple lead generation strategies to create a steady flow of potential clients:
Focus on methods that align with your strengths and the communication preferences of your audience. For example, if you excel at content creation, start a valuable newsletter or podcast that attracts potential clients. Excel at data analysis? Create insightful industry reports that showcase your expertise while attracting leads.
Mix traditional and digital approaches, and, most of all, don’t be shy about talking about your services.
Founding a marketing agency doesn’t mean you’re starting from scratch. Your existing network — former colleagues, industry connections, and even social media followers — can be incredibly valuable for your new business.
This perspective is captured perfectly by Fab Giovanetti:
Always keep in mind your values and what works for you as a person. How you want to show up, how you want to be perceived, and how you want to build relationships is crucial here. As a personal example, one of my values is about making marketing more human, so the last thing I’m going to do is send lots of cold outreach. I was lucky to have lots of connections and contacts in a big network. So for me, it was really helpful to do partnerships, collaborations, and getting my word out there as much as possible – using social media, but also using events, podcasts, and anything else that helps you get the word out.
Start engaging with your network before you launch. Share your expertise through LinkedIn posts, participate in industry discussions, and offer valuable insights in professional groups.
Consider former colleagues who might need your services or know someone who does. Build genuine relationships through coffee meetings, virtual catchups, or industry events.
Authentic networking isn’t about immediate sales, so don’t be too pushy. Focus on creating meaningful connections aligned with your personal and business values, and the effort will pay dividends down the road.
Happy clients are your most powerful marketing channel. While word of mouth works well, setting up a structured referral program incentivizes people to recommend your services while getting rewards.
Create a simple but attractive referral system. For example, offer existing clients a percentage off their next month’s services for each successful referral or provide a one-time bonus service.
The reward should be valuable enough to motivate action but sustainable for your business.
Make referring easy by providing clients with all the materials they need: clear program details, shareable social media content, and email templates they can forward to their network. Be specific about your ideal client profile so your customers can identify the best referral opportunities.
Most importantly, maintain excellent service quality. Referral programs won’t work if clients aren’t genuinely excited about recommending your services to their network.
When starting out, potential clients want evidence that you can deliver results. All digital marketing agencies can make vague claims, but not all can demonstrate expertise.
As Elisa Montanari puts it:
The most important move you can make is to start building proof of your results. Get a few clients in the door and ask the most successful one to become a case study. Build a valuable, detailed case study and use that to build real interest and credibility behind your name.
Document everything from day one. Track key metrics, save screenshots of improvements, and collect client testimonials. Focus on creating case studies that showcase not just the final results but your strategic approach, challenges overcome, and specific actions taken — always with client approval.
Consider sharing the success of your own marketing agency: how you’ve grown your social media following, increased website traffic, or launched a successful newsletter. Use these achievements as proof of your capabilities.
Selecting the right tools can streamline your operations, boost creativity, and create a competitive advantage. Your choice of social media management tools for agencies and client collaboration tools will significantly impact your efficiency and ability to deliver results.
Start with essential platforms that align with your core services.
If you’re focusing on social media marketing, invest in robust social media management tools that allow you to schedule posts, track engagement, and coordinate multiple clients and team members. Look for solutions that can scale with your marketing agency as you build a successful business.
Approvals, scheduling, media library, and feedback features in Planable
Consider tools like Planable that offer clients easy access to view progress and approve content, making collaboration seamless.
Social media post collaboration and approval in Planable
Remember to factor these tools into your pricing structure, as they’re an investment in your business’s efficiency and professionalism.
Yes, you absolutely can start a marketing agency as a solo entrepreneur. Many successful agencies begin as one-person operations, with the founder handling everything from client work to business development.
Starting as a freelancer allows you to build your client base, refine your processes, and establish your reputation without the overhead of a full team.
As you grow and prove your concept, you can gradually expand by partnering with contractors for specific projects before moving to full-time hires. This approach lets you scale sustainably while maintaining quality control and profitability.
Digital marketing agencies remain profitable in 2025. According to a Promethean Research 2023 study, the average profit margin for a digital agency in the U.S. has remained steady around 16% since 2015.
The good news is that marketing budgets rebounded in 2023, reaching pre-pandemic levels of 9% of revenue, according to Statista, so there is an opportunity for digital marketing agencies.
As a benchmark, single-digit profit margins generally indicate unsustainable operations, while margins above 20% represent strong performance.
Your profitability will depend on your service mix, operational efficiency, and pricing strategy. Keep in mind that highly specialized agencies or those with streamlined operations can achieve higher margins.
Sabina is a freelance writer with 15+ years of experience in the MarCom industry. Her to-do list includes helping people write better and businesses sell more through content. She is the host of Zest, a podcast that brings writing within listeners’ reach.
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