Business Idea

Start A Digital Marketing Business

About

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

If you're interested in how to sell digital marketing, or selling digital marketing 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 marketing business ➜

Key stats

market size
$49.4B
revenue (monthly)
$147K
starting costs
$27.3K
gross margin
23%
avg product price
$6000
time to build
10 months
growth
SEO
business model
Subscriptions
time investment
Full time

About

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

If you're interested in how to sell digital marketing, or selling digital marketing 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 marketing business ➜

Key stats

market size
$49.4B
revenue (monthly)
$147K
starting costs
$27.3K
gross margin
23%
avg product price
$6000

 

time to build
10 months
growth
SEO
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $500 $5,000
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $3,050
Other Expenses $0 $800
Total Startup Costs $7,466 $46,911

Successful Businesses

Business URL Rank
Semrush semrush.com #1,932
Digital Marketing Institute digitalmarketinginstitute.com #10,512
Thrive Internet Marketing Agency thriveagency.com #13,373
Marketing Land marketingland.com #16,121
ezrankings ezrankings.org #25,970
Omnicore Agency omnicoreagency.com #27,422
Technology Advice technologyadvice.com #29,949
Bahamas Local bahamaslocal.com #47,380
Social Beat socialbeat.in #48,957
OuterBox outerboxdesign.com #58,532
DSIM dsim.in #66,379

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!
Traffic to your website A digital marketing business 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 as a digital marketing business. 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 product or service becomes indispensable to your customer.
Pick & choose the clients you work with Digital Marketing Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
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.
Longer Sales Process A digital marketing business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your digital marketing business are typically around 23%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the digital marketing business, 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.
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)
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

Marketing Ideas

  • 1

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

  • 2

    Facebook Community

    A Facebook Community refers to a Facebook page dedicated to a topic or an experience owned collectively by the community connected to that page.

    The Community page allows the admin to connect with others who share similar interests and experiences.

    Facebook communities are a great platform for growing brand awareness and marketing your products.

  • 3

    Email marketing

    Email marketing is the act of sending a commercial message to a group of people using email.

    Marketing via email is a highly effective strategy used by entrepreneurs to advertise, request business, or to build brand awareness.

    According to Backlinko, shoppers spend more when marketed to through email, compared to those who do not receive email offers.

    Therefore, email marketing is an essential tool that helps entrepreneurs to reach target audience.