How To Start A Digital Marketing Agency In 2021

The one thing that has seen a tremendous change in the last two decades is the world of marketing. With the help of modern technology, Digital Marketing has taken over the place of the conventional marketing strategies. Every business is going digital in order to drive more customers and come out as a top brand in its respective domain. The term “Digital Marketing” is quite vast as it includes mobile marketing, website marketing, search engine marketing (SEO & paid advertising), banner advertising, email marketing, video marketing, and social media marketing. Every digital marketing strategy is tried and tested to ensure that they deliver positive results. The top digital marketing agencies will make a perfect blend of all the online marketing strategies to take your business several steps up. Before moving on to how to start a digital marketing company or agency, let us first discuss what is a good digital marketing company?

What is a good Digital Marketing company?

A good digital marketing company does not work on the hit and trial method. It has a team of strategists, creatives, and developers that work together from the ground up to deliver perceptible results. The company will incorporate the best marketing strategies to list your brand on the first page of SERPs, where it can reach its target customers more quickly.

How to start a Digital Marketing Agency?

Starting a digital marketing agency in 2021 is not like taking a walk in a garden, but that doesn’t mean that it is rocket science. If we make our way back to the time when it was still 2010, then the path of starting a digital marketing company was covered with more obstacles than it is today. Earlier, the majority of businesses depend on traditional marketing methods to bring customers to their doorsteps. The startup cost remained another factor that came in the way of starting an online marketing agency, and on top of that was the limited access to physical and online media.

Digital Marketing

But the time has changed and for the better. More and more organizations, irrespective of their size and niche are making their way to the best digital marketing companies to bring their business to an online platform where it can connect with its potential customers more effectively. The virtual market is growing at an enormous rate, and if you’re looking to set up a business in digital marketing, then this is the best time. Before investing in any business, one must have the required knowledge about it, and the same goes for digital marketing. If you want to be the best digital marketing company and grab a big piece of the action, then you must make your foundation strong by following the steps mentioned below:

  • Learn the necessary skills: Learning is a never-ending process, and digital marketing is one such field in which learning never stops. The one thing that is constant in the digital market is the change in trends. But the skills you have to learn before setting up a digital marketing firm is how to deal with clients and manage multiple accounts wisely. Please do not make any quick decision initially as even the top digital marketers have kept the patience to reach the place where they are today.

Entering into the digital market at a time when the competition is already too high, making your business survive is the biggest challenge. Apart from the competition, there are several other factors that you have to deal with for a better ROI. Therefore, making your organization structured to its product, culture, and leadership is crucial. Along with mastering the digital marketing skills, you should also learn how not to take things personally when your clients are stressed out and projecting stuff on you. You can offer professional services only if you have complete knowledge. If you are confused about the things, then how come you will convince your potential customers. Therefore, before starting a digital marketing agency, ensure that you have developed the necessary skills, and that involves:

  • Designing ads
  • Building landing pages
  • Creating messaging and positioning
  • Learning systems like Salesforce, HubSpot, and others
  • Tracking implementation

To acquire these and other related skills, you may first work at larger agencies, where you can also learn how to deal with pressure to deliver quality results within a decided time frame.

  • Better to practice before initiating: Having a job that pays and also spare you enough time to follow your passion is what the majority of people are longing for. If you have one, then it’s better to make the foundation of your business strong before deciding to do it full time. We would advise you to do some contracting work part-time while holding down a full-time job that will help you in many ways.

Once you start working on a contractual basis, you will get to have a glimpse of entrepreneurial life. You will understand how even a small element can help you run the entire business. If you are able to meet your contract deadlines in time, then there are chances that you will get referrals. With more customers in hand, starting an agency would be much easier than starting from scratch. Another benefit you will get is developing client handling skills, and believe me, that is going to help you in a long way. By maintaining a good client relationship, you will be able to drive more customers through referrals and expand your contractual business into a one-person agency.

  • Know your competition: The digital world is fast-changing, and there is a whole pool of organizations that are working in the same niche as you are. The stakes of your business are high that make it necessary for you to understand your competitors well so that you can create tactics to surpass them. 

For performing competitor analysis, use the same keywords that you use online to narrow down your competition only to the competitors that can be a challenge for you. Once you know what your competition is, spy on them to learn what strategies and methods they use to make their business thrive. You may take a look at their social media, blog posts, and SEO. After determining their strategies and how they present their business, you can also make similar strategies to give them a tough shot.

  • Launch your website: Once you know what your competition is, it’s time to create a website that includes the most searched keywords in the content. Your website will be the online face of your company that will assist you in driving good quality and quantity of traffic. Make sure that your website is SEO and user-friendly by incorporating the best SEO strategies.

Before launching your website, you must keep content and competitors in mind that will help your clients to find your business easily. Then buy a domain name and hosting service for your site. 

  • Build a portfolio: To come out as the best digital marketing company in the online market, it’s important to build a portfolio. When customers visit your website, one of the few things they check is the reviews that your previous customers have posted for your services. 

It will help if you create a portfolio that comprises client testimonials, in-depth case studies, headlines or snippets, and near-future goals for clients. A good portfolio will represent your ability to provide good results and help you to build clients’ trust in your business. While creating the portfolio, don’t add any information that looks over the edge, better be honest and ethical.

  • Time to set a business model: Revenue plays a critical factor while measuring the success of a top digital marketing agency. Setting the right business model will provide you with the best way to bill your clients so that you can manage your business more efficiently. There are different ways you can bill your clients which are as follows:
  • Hourly: The model is ideal when your business is dealing one-on-one with clients, and the services you are rendering them is for a shorter time span. But the drawback with this model is that the clients may question how long you spend on particular actions, and they may feel that they are being overcharged.
  • Flat Retainer: One of the best and widely used pricing models is Flat Retainer. After accessing the amount of work and time required to complete the task, you and your client can both agree on a flat monthly fee. Once you deliver the services, they know how much to pay without any need to send them an invoice.
  • Percentage of spend: Once your business is doing well in the digital market, you can opt for this pricing model. The model will help you get more money if your clients want to scale up the amount of work.
  • Commission-based: The model is used by agencies that want to get an additional benefit over their competitors. Your client will pay you the commission or the specific percentage of the price of the product or service he/she sells.
  • Step into the social world: Starting a digital marketing company and expecting that people will themselves reach out to you will bring you no benefit. At the initial stage, you have to make noise about your business, and one of the best ways to do so is to be on different social media platforms like Facebook, Linkedin, Twitter, and others. 

By making your social presence strong, you can generate more organic leads, engage with your present as well as potential customers, and expand the reach of your business.

  • When to hire: Hiring a bunch of people at the start of your company is the worst decision you can ever make. First, you have to make sure that you can survive after paying all the bills. One more benefit of starting alone is that you will be able to develop all the required skills like managing accounts, handling different tasks at once, and others. In addition to this, if you will get knowledge about the skills required, then it will become a lot easier for you to find the right person for your company.

Doing business all by yourself will help you to save time and money involved in managing payrolls, finding a place for an office, and other issues. When you find that you are getting more projects which cannot be managed single-handedly, you can go ahead with hiring the skilled people for the job. So, if you are all ready to step into the competitive yet promising digital world, then make sure that you are prepared to manage things at your end first. The path to becoming the best digital marketing agency is filled with too many ups and downs that you need to manage solely.

What after starting the business?

Your current clients cannot fuel your business till eternity. You need to develop new and effective strategies to make your business a success. If you want to be one of the top digital marketing companies in the coming time, then you have to think out-of-the-box tactics to drive more and more customers to your business. Implementing excellent strategies in your business and acquiring the right talent for your organization, you can expand your customer base and add skyrockets to your growth rate.


Below are some strategies that you can incorporate in your business to get more leads for your business and turn them into revenue:

  • Client acquisition strategies: What is the use of setting an agency if you don’t have any clients? After setting your business, the one thing you have to do is its promotion. Seek opportunities to get your business in front of the eyes of the numerous customers who are finding the top digital marketing agency to promote their brand. Never miss a chance to attend events where you can speak about your brand among the clients that fall under your niche. 

Be active on all the social media platforms and also move to the paid ways of advertising like PPC. Acquiring the targeted audience and meeting their requirements will help you to taste success in the long run. Once you start acquiring customers and still have space for more, share that you are accepting new clients along with the experience you have in a specific type of industry. Grabbing a big share of your targeted audience will add wings to your growth.

  • Expand your team: With more customers comes greater responsibilities, and to manage them, you need people with the right skillset. You can either hire new talents as employees or collaborate with other agencies. But hiring new employees will help your business in the long run. You can post about the vacancies on all your social channels as well as on job boards so that the potential candidates can apply. 

Finding the right talent to fill up the job position will help you to operate your business efficiently well. But, if you are not at a spot to hire more employees, then collaborating with other agencies can be a better option. Sometimes, working with complementary marketing agencies can be beneficial for you in the form of getting new clients. 

  • Increase your offerings: Working with complementary agencies is good, but to a limit, if you want to grow into a top digital marketing company in the online market. Coming out as a full-service agency will help you to build your client’s trust in your business. Scaling your business will be a major step on the path of your business growth as it will help you to derive more leads, better conversion rates, and enhanced ROI. 

Making a mark in the digital marketing world is not as easy as it seems. As a digital marketer, you have to do a lot, not only at the start but during the entire business cycle to generate more revenue for your business. Treat your agency as a client’s campaign and leave no stone unturned in making it fly high in the dynamic digital marketing world. Try out the above tactics to stay in the competition and make your business to be among the leading digital marketing agencies in 2021. 

What does a digital marketing agency do?

The main task of a top digital marketing company is to create a robust online presence of your business so that you can gain new customers to boost your ROI. For a better understanding of what a digital marketing agency does, let us discuss the top three areas it focuses on:


  • Business Enhancement: The best digital market company can take your business a step ahead from your competitors. It will first evaluate your brand’s needs to develop an excellent strategy that will get you the best possible outcome in the form of profits. The digital marketing company will help you determine your target audience so that all the marketing strategies can be directed to convert them into a business. With good quality leads, you can increase your conversion rate, and thereby the total revenue.
  • Develop an online hub for you: The agency will create a user-friendly website that will help you showcase your brand effectively in the digital business world. It will represent your brand as a market leader by incorporating content that will not only convey what your business is all about but also establish your brand expertise and authority online. The best digital market agency will use the most effective content strategies to get you good quality organic traffic. Social media marketing strategies will also be used to make your brand presence on different platforms like Facebook, Linkedin, and Twitter.
  • Boost ROI: One of the best services a digital marketing company offers is enhancing your return on investment. The company will evaluate your website traffic, find which online platform is bringing you most leads, and maintain a perfect balance between your marketing activities and the results they get for you. With more customers, you can increase your sales, and thereby profits.

We hope that this article has helped you to develop an understanding of the concept of digital marketing and how to start a digital marketing agency in 2021.