Do you wonder how to start a digital marketing agency with no experience and what do I need to start a digital marketing agency?

Learn step-by-step process on how to create a strong foundation for starting a digital marketing agency from scratch in 2024.

Digital marketing is a thriving industry that will continue to grow at a rapid pace.

In 2022, the global digital marketing market is estimated to be worth over $2.5 trillion, and it is poised to grow even further!

How to start a digital marketing agency from scratch

But setting up your own digital marketing agency from scratch can be daunting – not to mention expensive.

In this article, we will outline the step-by-step procedure on how to start a digital marketing agency from scratch in 2022.

We will also provide some tips and advice on how to reduce the costs of starting a digital marketing agency so that you can stay afloat while you build your business.

So if you’re interested in knowing how to start digital marketing from home, read on!

Opportunities In Digital Marketing

How to start a digital marketing agency from scratch

Digital Marketing is one of the most popular and effective forms of advertising today. However, starting a digital marketing agency can be daunting.

We are providing here some statistics behind digital marketing to help you make a decision if you keep asking yourself if should you start a digital marketing agency.

According to Statista, global spending on digital marketing advertising is estimated to reach $876 billion by 2026. This figure is projected to grow by 20% each year.

In fact, 66% of marketers believe that digital marketing will be the dominant form of marketing by 2022, which we are witnessing currently.

These figures suggest that there is a lot of money to be made in digital marketing, which is why so many businesses are choosing to go down this route.

However, before starting your own digital marketing agency, it’s important to understand the risks involved. For example, digital marketing can be very time consuming and challenging to manage. If you’re not experienced in this area, creating effective campaigns and achieving desired results could be difficult.

Additionally, digital marketing can be expensive – particularly if you need specialized digital marketing software or tools to carry out your work efficiently.

So before starting your own agency, make sure you have a clear vision for what you want to achieve and know how much money you’re prepared to invest.

If all of this sounds like it’s worth your time and money, then follow the article to have a clear picture of how to start building your digital marketing agency today.

Before everything, let us first understand the basics of digital marketing. 

The 4Ps of Digital Marketing


People are the most important part of any digital marketing process. You need talented and passionate individuals who can help you create successful campaigns.


Platforms are essential for digital marketing success. You need a platform that can help you reach your target audience, track performance, and manage your data.


The Process is to create successful digital marketing campaigns. You need a system that allows you to track your progress and make changes as needed.


Performance is key to measuring the success of your digital marketing campaigns. You need to measure how people are reacting to your content and ads and adjust your strategy as needed.

How To Plan Your Digital Marketing Agency?

How to start a digital marketing agency from scratch

Starting a digital marketing agency from scratch can be a daunting task, but with the right instructions and resources, it can be a relatively easy process. Here are some tips on how to start your own digital marketing agency:

  • Get Organized First – One of the most important factors in starting any business is organization. If you don’t have a plan or system in place, you’re going to find it incredibly difficult to succeed.

    That’s why it’s important to get your ducks in a row before you even think about starting your own digital marketing agency.

    Start by creating a business plan and organizing your finances. This will help you track your progress and make sure you’re on track for success.
  • Find The Right Team Building a successful digital marketing agency relies heavily on teamwork. You won’t be able to do it all by yourself, no matter how talented you are.

    Therefore, it’s important to find the right team of individuals who share your vision and goals for the business. Look for like-minded individuals who will support and help you reach your goals.
  • Leverage Technology – With so many advances in technology, starting a digital marketing agency has never been easier. Utilize all the resources available to you to reach your goals.

    Use social media, online marketing platforms, and search engine optimization techniques to get your business in front of your target audience.
  • Stay Up-To-Date – One of the biggest challenges any business faces is staying competitive. If you’re not up-to-date on the latest trends and technology, you’re going to be at a disadvantage.

    Keep your team informed of the latest trends and changes in the industry so they can be prepared to respond when necessary.
  • Be Creative – The most successful digital marketing agencies are always looking for ways to push the envelope and exceed expectations.

    Be creative when developing your marketing strategies and be sure to experiment with new ideas to see what works best for your business; like starting a blog to promote your services. 

    Ultimately, starting your own digital marketing agency is a great option if you have the expertise and resources to pull it off. However, if you feel demotivated about how to start a digital marketing agency with no experience, hiring a digital marketing agency could be a better choice.

7 Steps To Start And Grow A Digital Marketing Agency

1. Domain And Hosting

How to start a digital marketing agency from scratch

The first step in starting a digital marketing agency is purchasing a good domain name and hosting for your business. This will give you a unique address that people can access for visiting your website.

A domain is your brand name. Your domain name sets a unique identity where people can access the things you share. Take time in finalizing the domain name that comprehends what you are going to offer. I would recommend you to go only with the (.com) extension.

Hosting is your resource folder on the internet. Having good & quality hosting is extremely important to your user experience. There are multiple hosting companies out there offering shared hosting, cloud hosting, or VPN hosting. All of them offer both monthly and yearly packages with a variety of features and capacities.

But for starters, I would personally recommend going with either Bluehost or Hostinger and taking a shared plan.

How to start a digital marketing agency from scratch

Being a business owner, it becomes important to understand the legal tax implications. Registering your company depends primarily on the state and country you are located in and the kind of services you offer.

Broadly speaking, there are 4 types of company classifications-
• Sole Proprietorship
• Partnership
• Limited Liability Company
• Business Corporation

For starters, it is always recommended to form a sole proprietorship entity as it is the simplest form of business type. It is exclusively controlled by one person and you just have to submit your personal documents to get started.

Additionally, you will also need to file tax paperwork and make other required filings as per the government norms. To keep things sorted, I strongly recommend consulting a professional charter accountant or a consulting firm to understand the tax norms associated with the digital marketing agency.

3. Design An Appealing Website

How to start a digital marketing agency from scratch

Your website is your own home, just online. The way you keep your website will be a deciding factor on whether a visitor is going to explore more of your content or leave. Your website should be easy to navigate and must look good on all devices. It should also include information about the company, its services, and how to contact you.

In addition, the website should include a blog or other online presence where you can post updates about your agency and what you are doing. This will help attract new clients and build trust with the current ones.

Finally, make sure to create social media profiles for your business and mention those actively on your website. Social media and digital marketing go hand-in-hand with building your company’s strong web presence on the internet.

4. Define Your Niche And Specialization

How to start a digital marketing agency from scratch

Today’s fast-paced world has changed the level of competition to a great extent. Instead of being a Jack-of-all-trades, it’s highly recommended to focus on a very specific niche. Clients always look for specialists who can perform a single action perfectly, rather than one who can claim a ton of services but execute nothing.

Some of the fundamental services that a full-fledged digital marketing agency usually offers are –
• Social Media Marketing (SMM)
• Seach Engine Optimization (SEO)
• Email Marketing
• Lead Generation
• Website Designing
• Mobile App Development
• Brand Management and many more…

Choose any one service (at max two) you are very good at and just focus on providing the best quality. It helps establish your firm as a market leader in that very niche and in turn, clients won’t hesitate in paying premium prices for your services. Once you are done mastering one niche, you may then gradually increase your portfolio of more services.

5. Define Your Payment Model

How to start a digital marketing agency from scratch

Defining a payment model is very important. No doubt!

But never get overwhelmed with creating the best payment model but lousy services. Rather, focus primarily on the quality of service that you provide to clients. If you provide better quality than your competitors, clients won’t hesitate in paying a premium price for your services.

Some of the common payment models for digital marketing agencies are as follows –
• One-time fee
• Fixed Monthly subscription
• Performance-based fee
• Service cost + a slight % of ad spend

Choose the payment model that is best suited for your agency and stick with it. You may sometimes have to alter the payment model for a specific long-term client. Don’t hesitate in making special exceptions for a long-term relationship. A clear-cut payment model makes accounting & billing easier and helps to keep your finances organized.

6. Develop A Sales Process

How to start a digital marketing agency from scratch

A sales process is nothing but a set of instructions that the salesperson should follow to convert a prospect into a customer. It may sound simple and absurd but believe me, it has the capacity to either make you or break you. Defining a transparent sales process can play a very critical role in the success of your agency.

Starting from prospect preparation to closing with follow-up calls, a good sales process should include everything that can trigger the prospect’s mindset. Many agencies miserably fail to convert even the most interested clients because of the lack of an efficient sales process.

Due to such defining reasons, it is always advisable to make enough training sessions to teach your sales team the importance of following a good sales process. Moreover, you may also use any professional CRM (Customer Relationship Management) tool to maintain the customer database. A professional CRM tool may also offer some extra follow-up and client objection handling tools which help develop a smooth sales journey.

7. Project Management & Delivery

How to start a digital marketing agency from scratch

Project management is a key part of any digital marketing agency, and it is important to have a system in place that will make the project run smoothly. Similarly, having a proper project delivery format is crucial for clients to understand what they wanted and what they are getting in the end.

One of the most important aspects of project management is timeline management. You need to make sure that you are always following the timeline set forth by your clients, and that you do not underestimate the time needed to complete a project.

Finally, it is essential to have an effective communication system in place. You need to be able to keep all stakeholders updated on the project status and resolve any problems quickly.

The Positives And Negatives Of Starting Your Own Digital Marketing Agency

Digital marketing is one of the fastest-growing industries and with good reason – it’s an incredibly effective way to reach your target market online. However, before on how to create a digital marketing agency, there are a few things to consider. Here are the pros and cons of starting your own agency.

The Positives Of Starting Your Own Digital Marketing Agency

  • You Can Control Everything
    While there are some tools and platforms that are built into digital marketing platforms, you can also control how and when your target market sees your content. This gives you a lot of control over your message and how it’s delivered.
  • You Can Target A Specific Audience
    With a digital marketing agency, you can create custom campaigns specifically for your target market and pinpoint where they live, what they’re interested in, and what keywords they’re using. This is especially helpful if you don’t have any insider information about your target audience.
  • You Can Scale Quickly
    Digital marketing agencies are typically staffed with experienced professionals who can help you quickly generate results. With the right strategy in place, you can see a significant increase in traffic and conversions within weeks or months.
  • You Can Make Money From Day One
    Unlike some other types of businesses, starting and running a digital marketing agency is typically a very profitable undertaking. This is because digital marketing is one of the most effective ways to reach your target market and generate leads and sales.

The Negatives Of Starting Your Own Digital Marketing Agency

  • You’ll Need To Invest In resources
    To be successful with digital marketing, you’ll need to invest in a good digital marketing platform, creative assets (such as images, videos, and landing pages), and lead capture tools (such as form builders or email capture forms). These resources can add up quickly, so be prepared to put in the time and money required to start your own agency.
  • You’ll Have To Manage Multiple Campaigns
    While it’s possible to manage multiple campaigns from within a single digital marketing platform, managing multiple campaigns can become cumbersome if you’re not used to working with organized data. You may also struggle with keeping track of all the different channels that your target market is using to interact with your brand.
  • You’ll Need A Lot Of Knowledge
    If you’re not familiar with digital marketing terminology or strategies, you may struggle to create effective campaigns. In addition, you’ll need to have a strong understanding of how people interact with digital content, which may not be a common skill set.
  • You’ll Need To Spend Time Training Your Team
    Without a solid training program in place, your team members may not be able to produce the high-quality content and campaigns that you’re expecting. This can lead to frustrated customers and lost leads.

The benefits of starting your own digital marketing agency outweigh the cons to a large extent, so if you have the ambition and drive to succeed, it’s definitely worth considering. Just be prepared to put in the work required to make your dream a reality.

Summing Up

In order to start a digital marketing agency from scratch, it is extremely important to have a clear understanding of the industry and what is necessary to be successful. Here are some of my personal key learnings that will help you get started effectively:

  • It is important to understand the terminologies associated with digital marketing. Terms such as “SEO,” “PPC,” and “ SEM ” all have different meanings and require different strategies when used in conjunction with digital marketing campaigns. Knowing the lingo will help you better understand how your campaigns are performing.
  • It is also important to be aware of the various platforms available for digital marketing. Not all campaigns should be conducted on Facebook, Twitter, or Google+; each platform offers its own unique set of benefits and limitations. Focusing your efforts where they will result in the most benefit for your business is essential for success.
  • Finally, it is important to have a solid plan for achieving your goals. Without a blueprint for success, it will be difficult to measure whether or not your efforts are yielding results. Creating realistic expectations and setting milestones will help you stay on track while building your agency.


Q1. How much money is required to open a digital marketing agency?

The investment required to open a digital marketing agency may range from $1200 and can go more or so up to $25000. A major chunk of money goes to the office space interior, furniture, office rent, team formation, PCs, etc.

Q2. Is it profitable to start a digital marketing agency?

Just like any other service-based industry, a digital marketing agency can also generate a consistent income for years. Being an evergreen sector, a digital marketing agency can be a highly profitable entity with returning and recurring clients for life.

Q3. How do digital agencies make money?

Digital agencies make money by charging clients for their marketing services. Some of the prominent models adopted by agencies are the Hourly model, Commission-based model, Fixed price model, and Hybrid price model.

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