Digital Marketing Agency Business Model
In this video, I'm going to talk to you about what exactly the digital marketing agency business model is and how it works and how you can go about starting their own digital marketing agency.
Depending on what it is that you want to provide services for. Just to start off with if you type digital marketing agency business model into Google you'll get a lot of great results. You also get a similar thing if you type it into YouTube lots of other great videos out there so don't be afraid to browse around and get lots of different opinions and lots of different ideas for many different people.
It is true that you can start one of these models with very low money which is great but the truth is that you have to provide really good services. My biggest tip is to start an agency model in something you yourself are an expert at and can create training materials on. That's going to be key to the success of your business in the long run. That's it. Let's get into it news this drawing board a little bit as an example.
So first and foremost here's you as the expert. You are good at what you do. Some sort of form of digital marketing right. And digital marketing can be all sorts of different things these days you can be a social media marketing expert. You can be a drop shipping expert. You can be an expert and really specific marketing methods like Google ads or Facebook ads or email marketing. Digital marketing can consume many different sub niches. And I would suggest picking whatever subnets that you're really really good at.
So whether it's just basically drop shipping or you know Facebook ads or through that or Google ads email marketing or social media. OK so choose a sub-niche within digital marketing that you can focus on. Another one that's really good as a CEO is a lot of digital marketing agencies that are SEO specific out there and a marketing agency in of itself offers services. You are going to offer services now to start off with services.
Type instead of drawing but that's OK to start off with. You're going to offer services as if you were the actual person doing the services yourself. Just like a freelancer. Basically a freelancer goes off and provides the services one at a time to clients right. No. But what you can do instead is you can create online training materials so videos showing yourself doing those services for your clients. OK. And then what you do is you go and hire a virtual assistant or other freelancers that work in countries that are a lot less expensive to live in like the Philippines or India Bangladesh and Eastern Europe.
These countries where the cost of living is much lower. You'll find people that are willing to work for much less than you can charge people back in countries that are more expensive to live in the United States and stuff like that because people that need those services have this business make a lot more money.
The key is arbitrage here. You're going to be selling a service like let's say you were doing a for somebody you're going to charge somebody you know maybe nine ninety-seven a month or a thousand dollars a month and then you're going to create the training materials and you're going to hire one of these virtual assistants from the Philippines India Bangladesh or Eastern Europe and you're going to pay them somewhere around maybe five hundred dollars a month to manage multiple of these accounts.
If you sell you know you start with one account and you hire one V.A. per month to run these services then you're already doubling up your money. But if you can times this by 10 or more then you have an agency and what you're doing is you're bringing in ten thousand dollars a month 9 9 9 7. And you're only maybe you bring on like two or three more of these virtual systems to manage 10 accounts or really depends on the workload and everything that needs to be done you want to make sure that you're bringing your services on time.
As you grow your business I recommend you bring on enough these days that can train themselves well enough to provide the services within the time period. It really depends. You know it can cost you maybe two or three days per 10 accounts or more or less. That really just depends. But let's just say it does cost three. It's going to cost you maybe fifteen hundred a month maybe you know whatever. There might be additional costs as well but still the differences obviously the gross margin on this is quite a lot.
That's just kind of a give or take thing maybe those 10 accounts you know there's oneV.A. working full time it's a rock starV.A. and a playerV.A. can handle those 10 accounts. That's possible. But then again what if that person gets sick misses work and stuff like that you sort of provide the work and you don't want have to do it yourself.
It's better to have at least two or three different things that are all rock stars and a players that can manage these accounts and then you can really start scaling your services and your agency model with things like webinars and you know social media marketing influencer marketing so that you can scale your services so you can start going up to 19 to 20 thousand one hundred thousand dollars a month and your service revenue and then you can hire a whole team of these people to manage them online and basically pay them you know whatever that is the going rate for them.
Now with that said it's, of course, going to cost more to hire A-players than a B player. Let's just say like your average B playerV.A. will cost you five hundred dollars a month. But you're a player will probably cost you close to a thousand dollars a month just because they know what they're worth they provide better services they're going to get the work done on time they're more trustworthy they're more dependable it's much more worth it to hire a players and the cool thing about a players to is that they probably already are experts in that niche that you're trying to provide services in so not as much training is required.
In the very beginning in your agency you might need to hire some players and train them to get the experience necessary to grow your confidence level with doing this kind of thing but then focus on hiring experts in your field and use that keyword expert when you go to hire people to make sure that you only hire people that already have the experience in the field you want to hire for and that's gonna help you really build out an agency that provides quality services to the customers quality customer service and communications. And you as the business owner should be involved in the communications on a daily basis.
Don't ever make your customers communicate directly with your base constantly as a business owner if you can communicate with your customers every day just check in make sure that they know that you know you're concerned and that you want to make sure that they're doing well and they're happy with the services that are going to make your agency really really thrive.
The other thing that's going to make your agency really really thrive is if you are the figurehead of your business all over social media so make sure that you never stop creating content. Podcasts YouTube videos Instagram videos Facebook videos wherever your audience is focused on that one platform but create that content on a daily or at least a weekly basis so that your audience is always feeling like they're getting value from that owner of the business because you're the to be the biggest salesman of your business unless you can find somebody else who is a willing do that work for you which of course is going to cost quite a bit of money which might be a good idea later on down the road. But to start an agency you have to be the figure of your business.
Those kids guys I hope you understand the agency model. I really don't see myself. You can check that out as a case study if you'd like an e-commerce paradise dot com. I specifically work with store owners of high ticket drop shipping Chop Shop and fight e-commerce stores. Very specific business model.
I have a lot of experience doing it 10 plus years and so I'm able to take that experience train this team at the base offer these services that kind of thing and then grow from there. My goal is to grow my agency really big and this I go I'm going to teach you guys on this channel how I'm doing it.