Hi I’m Praneeth Kumar.
In this blog post I will explain whether it is worth starting your own digital marketing agency or not.
You can refer to my guide to learn more about how to start a digital marketing agency from scratch or if you are new to digital marketing you can learn how you can start digital marketing from home in 2021.
So without further ado let’s get started.
Here is a 30000 foot view of the blog.
13 reasons why it is worth starting a Digital marketing agency.
There are 13 most important reasons why you should start a digital marketing agency in 2021 & beyond.
Let’s take a look at them in detail.
1. Make money.
Yes you read it right, by starting a digital marketing agency you can make a good amount of money from it.
Of course you will not be making money immediately as you start your agency since
you don’t have much experience or any customers and no one really knows your brand online but as you grow with more customers and people start to know you in the specific industry, you can start charging a good amount of money for your services.
When you see your digital marketing agency growing every year then you can consider hiring freelancers and automate the process with step by step checklists and procedures and this is how you can make money passively by running a digital marketing agency.
You know they say, making money while you sleep is kind of a reality if you work hard towards your profession for a couple of years straight.
There are many popular digital marketing Agencies which make thousands of dollars every month in revenue, to be specific, webfx which is one of the leading digital marketing agency around the world it is estimated to make around 98 million dollars every year as a revenue.
That is incredible, these guys make more than 8 million dollars in revenue each month. Obviously the income fluctuates every month with new clients coming in and old ones exiting.
That is the figure you can achieve, if you are at the top of the industry, but on average, depending upon your country location, your experience, skills and your customer reviews you can easily make more than $1000 every month with your agency.
According to reliablesoft, an average junior digital marketing professional with no large experience can make around $40k a year.
The fact is that most digital marketing Agencies charge their clients based on retainers on monthly basis, so it is not the matter of how many number of clients you acquire to your marketing agency but,
If you just stick with a few and deliver them consistent results over a period of time they will stick with you in the long term on monthly basis and
you will keep on getting recurring income every month and you can also sell additional affiliate products to your clients when offering your service related to that industry to make additional income every month.
And even in the bad times and during the recession and slow economy of your country you will still make money because even any one of your clients stop taking your services you will have other clients who will take your services and
You can get more clients through referrals and from your own personal network as well and your business does not get affected much by any government policies or recession or anything like that because your work is very closely related to getting more sales for businesses.
If this doesn’t convince you that starting a digital marketing agency is a highly profitable business then let me tell you the next thing which will definitely motivate you to start one if you can.
2. Digital marketing is the future.
Believe it or not digital marketing is present and future for businesses.
According to techcrunch, COVID-19 pandemic accelerated the shift to e-commerce by 5 years.
E-Commerce Giants like Amazon have seen a 40% hike in growth and sales during the covid-19 pandemic because people were not allowed to move outside and to follow social distancing norms and lockdown rules in many countries worldwide.
Even many other activities like education, entertainment, work and meetings have shifted to online platforms like zoom calls and people started using ott platforms like Netflix more than before due to covid.
According to statista, 3.8 billion people use a smartphone which is approximately 48% of the Global population.
Social media platforms like Facebook have a total user base of 2.8 billion worldwide which is nearly one third of the Global population.
According to Oberlo, 3.5 billion searches take place on Google every single day which is equal to 40000 every second that take place on Google and half of the product searches happen on Google itself.
I can list down an infinite number of statistics and data to prove my point that digital marketing is the future.
And as we all know where there is a demand there is also a profit and money you can make in the market, these are the basic laws of economics.
3. Build a strong network of brands & influencers.
I am sure you heard of this amazing quote,
Your network is your networth.
That is 100% true.
And by starting a digital marketing agency you can build a strong network with other brands and businesses and increase your network and eventually net worth as well.
Since you are starting a digital marketing agency you will be offering services to only entrepreneurs and business owners and if they really like your service and therefore your service to help their business grow, you can get more customers to your agency with referrals and word of mouth marketing.
This is the real benefit of starting a digital marketing agency and having a strong network of people and connections.
Another benefit is that since you will be working very close to many entrepreneurs and business owners you can learn about them, get to know their ideas and thought process and you can even find new mentors for your life.
All these things and knowledge you gain can help you start your own business on the side.
4. Flexible life.
What’s really amazing about digital marketing is that you can work from any part of the world and still make money.
Yes you can work from your own bedroom wearing your pajamas as well.
Because most of your work will be done online and all you need is an Internet connection and a desktop in order to start working and complete the task.
For example I am a blogger and SEO specialist,
I work In my bedroom at my house in India and I get customers and people visiting my website from all over the world.
This way, I can schedule my own working hours and avoid moving to the office which will save a lot of cost, energy & time of commuting and I can also spend quality time with my family members.
That is really awesome.
5. Easily scalable.
Even if you start alone with your digital marketing agency as you grow with more customers and more revenue you can constantly hire new freelancers and new people and include them into your team and
scale your marketing agency from local customers to International customers worldwide.
Because of that you can easily scale your digital marketing agency whenever you want by constantly hiring new people into your team and automating the process using many digital marketing tools.
6. You are building an asset.
Starting a digital marketing agency is one of the best assets you can build for your life.
Assets are properties that will help you make more money in future.
Since you are offering services you will have to create an agency which will have some value in it as your agency gets growing with more clients and more customer reviews your company’s valuation will also increase because more people will respect your agency and get to know your brand.
- You will also have step by step processes and checklists that are proven to give results.
- You may also have a highly trained and professional team.
- You will have people’s trust and build a brand that people know and respect.
All of these things cannot be built overnight but it can definitely generate revenue in the long term.
Even the personal brand cannot be bought or sold to other businesses but starting a digital marketing agency can be sold as it has some valuation like any other business because of the list of assets I have mentioned earlier.
Most of digital marketing Agencies are sold up to 5x of their annual revenue and most large digital marketing Agencies usually consider purchasing the small agencies to make more money and build their brand in more countries.
7. Easier & less risky to start than a product-based business.
Starting a digital marketing agency and offering your service as a product is an easier and less risky business model compared to starting other businesses that are based on products.
The reason is simple,
When you start your own business of selling a particular product then you will have to create the right piece of product that matches the People’s needs and wants or you have to purchase the products in bulk that do so and
you will have to store them which can cost you additional money and you will have to do all the packaging, maintenance and transportation and other things that require more money.
If you either do not estimate the market needs, demand and the value of your product properly, or due to competition people start using other companies products than yours then you could lose all the investment you made.
But, since you are starting a digital marketing agency you are not offering any physical or Digital product to your clients rather you are offering your own service sparing your time.
Because of that you don’t have to worry about any products, manufacturing, storage, maintenance,
transportation, etc costs, even if you don’t properly estimate the Market needs and demands, you will not have much loss and you can easily shift and recover with new techniques in your skills.
You are working for people as a replacement to get the job done, saving their money and time.
8. Do what you love.
Another benefit of starting a digital marketing agency is that you can do what you really love and are fond of.
There are lots of different digital marketing skills you can choose to become a specialist like SEO, SEM, PPC, website design, content marketing, and email marketing, etc.
You can choose which of the skills that you really love and have good knowledge about and you can become an expert in that industry for a specific segment of the audience, and
you can start offering services to that specific audience and make money eventually offering your services inreturn.
You can also outsource the work that you are not really interested and passionate about so that you can focus on things that really matter to your business and that you enjoy doing.
9. Challenge yourself.
Starting a digital marketing agency is similar to starting any other online business like blogging and Drop shipping.
So you will have to face similar challenges when you start any other online business like,
No clients, no fame & recognition, no money.
You might have to live a frugal life for some days or a few months.
It is not always a struggle and a hard thing to start a business like digital marketing agency sometimes it is also fun for some people to start a business from scratch and make it big,
It gives people a lot of fulfillment and happiness and purpose and if you are one of those people who like to start and grow businesses, then starting a digital marketing agency should be your next project,
it can give you new experiences and more relationships with other people and knowledge about the industry.
Also when you have a team you have the power to build a right work culture and environment for your team members which can be a challenge or an opportunity to show your leadership skills.
10. Help others & live a meaningful life.
If you lack meaning and purpose in your life then starting a digital marketing agency can be really helpful to restore that purpose and meaning in your life back, let me tell you how.
As you start your own marketing agency you will be offering services to many business owners and companies worldwide and when these companies make more revenue and sales you will not only help those
business owners grow but you’ll also help those specific countries grow by their economy as well as when businesses grow.
Along with that you will also have to pay taxes to your own Government and country and you will be helping your own country and economy grow and you will be contributing to the GDP.
Apart from that if you have a big, and large digital marketing agency, you can hire freelancers online and you can give them employment and change their life for the good and help them grow better in life.
Last but not least you can help people who are the consumers and customers to find the right product and service which can help them solve their problems by making the right business easily visible for the customers online.
This way you can live a more meaningful and purposeful life each and every day.
11. Constantly learn and improve your skills.
Another important benefit of starting a digital marketing agency is that you can constantly learn and gain new skills and knowledge in the industry.
You can say the digital marketing disadvantage is that it is constantly changing so there are two ways to look at it,
One way is that you should be constantly learning and improving your skills and gain new knowledge and keep yourself updated with the latest and best practices in the industry.
Another way to look at it is that because the digital marketing industry is constantly changing with new algorithm updates in Search Engine Optimisation to new policies in social media platforms like Facebook and changing people behavior and
new social media platforms like clubhouse and tiktok which were not there before, you will not live a boring or mundane life as an entrepreneur doing the same things over and over again.
You will constantly learn, improve and gain new knowledge and skills, grow in your life and career as you start your own digital marketing agency in order to succeed and bring results to your clients.
12. Boss-free life.
By starting a digital marketing agency you don’t have any boss or any other person who is dictating you or leading your way and directions ahead.
This way you can schedule your own working hours, you don’t need to follow anyone’s rules, you can get rid of office politics and practices to impress your boss for salary and position hikes.
You can set your own working charges and become financially independent if you want to because you are not limited to a particular paycheck every month.
13. Create a product and sustainable income in the long term.
The last important benefit of starting a digital marketing agency is that because you will be working close to many business owners and you will be helping those businesses get more sales directly working with the audience on digital platforms,
you exactly know what kind of problems that the audience is facing, needs & wants, you also have a clear understanding of the audience characteristics.
This knowledge and experience of working very close to business owners and with the audience can help you a lot for you to create your own product both physical or Digital by working very close to business owners and selling it to the audience.
In such a case your product will not fail in most cases because you create a product that matches your audience needs, you properly estimate the market size and you know what it takes to be successful since your experience of working with businesses over the period.
All these experiences and knowledge you will be getting is priceless and can help you in exceeding in your career and making more money in the long term.
Because of all these amazing reasons I would highly recommend you to start your own digital marketing agency.
Here are a few guides to help you with digital marketing.
- How to start a digital marketing agency?
- How to learn digital marketing from home?
- How much does it cost to start a digital marketing agency?
- Digital marketing business ideas.
With that said let’s conclude the blog post.
These are all the important reasons you need to know about why to start a digital marketing agency.
Do comment down & share your views on why start a digital marketing agency.
Share this blog post with your family and friends if you have found it helpful.
I will catch you next time till then keep learning and keep growing.
Hi, I am Praneeth Kumar [19 years aged guy] founder and owner of this blog, I am a blogger and an online entrepreneur by passion and a college student in the Arts Education branch, You can learn my story from a college student to a blogger on the about me page.