Business Idea

Start A Digital Agency

About

Starting a digital agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell digital agency, or selling digital agency online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a digital agency ➜

Key stats

market size
$49.4B
revenue (monthly)
$197K
starting costs
$27.5K
gross margin
20%
avg product price
$7250
time to build
10 months
growth
Word of mouth
business model
Consulting/Agency
time investment
Full time
work from home?
Yes

About

Starting a digital agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell digital agency, or selling digital agency online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a digital agency ➜

Key stats

market size
$49.4B
revenue (monthly)
$197K
starting costs
$27.5K
gross margin
20%
avg product price
$7250

 

time to build
10 months
growth
Word of mouth
business model
Consulting/Agency
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $550 $6,000
Website Costs $232 $6,500
Business Formation Fees $600 $4,700
App Creation Costs $1,000 $20,000
Software Expenses $150 $3,044
Advertising & Marketing Costs $0 $2,550
Other Expenses $0 $800
Total Startup Costs $2,567 $52,344

Successful Businesses

Business URL Rank
Digital Academy 360 digitalacademy360.com #21,431
City and County of San Francisco sfgov.org #30,979
LaRochester Digital Agency larochester-digital-agency.ueniweb.com #37,157
Blue Fountain Media bluefountainmedia.com #39,788
El Salvador Times elsalvadortimes.com #41,715
Digital Marketing for Local Businesses revlocal.com #72,993
Centro centro.net #79,861
Corra corra.com #98,242
Online Printing for Everyone from Digital Room digitalroominc.com #99,553
Top Digital Agency topdigital.agency #103,008
Online Marketing Gurus onlinemarketinggurus.com.au #104,522

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a digital agency can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Traffic to your website A digital agency gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet or get to work with for your digital agency. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your digital agency becomes an integral piece of their every day lives.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your digital agency are typically around 20%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the digital agency, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
High overhead expenses With starting a digital agency, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Affiliate program

    An affiliate program is a way to reward people outside your organization to share your product.

  • 2

    Word of mouth

    The most tried and true way to grow a digital agency is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to digital agency.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜