How to start a marketing agency: Complete step-by-step guide
You’re passionate about marketing and not afraid of putting in the work. But working for someone else? That feels more like a limitation than a launchpad. You’re ready to take control, shape your vision, and build a traditional or digital marketing agency reflecting your creativity, values, and drive. Congratulations, you’re an entrepreneur!
However, turning passion into profit isn’t easy. And building and scaling a business is a long, hard road filled with many pitfalls. The good news is that armed with the right strategy and support, you can realize your dreams while avoiding costly mistakes.
Whether starting a traditional ad agency or a modern digital marketing firm, this guide will walk you through the process. You’ll discover the different types of agencies, the essential tools you’ll need, and a step-by-step plan to turn your vision into reality—whether you’re in New York, Massachusetts, California, or hiring globally.
What is a marketing agency?
A market agency is a professional services firm that helps businesses grow by promoting their products, services, or brand to target audiences. Marketing agencies develop and execute customized strategies to increase engagement, visibility, and sales. They leverage advertising, branding, public relations, and market research to help organizations meet their strategic goals in a targeted and cost-effective way.
A digital marketing agency specializes in using online channels and platforms to connect with customers. They use tools like search engine optimization (SEO), social media, and paid advertising to produce powerful and effective campaigns in the digital space.
Both traditional and digital marketing agencies offer services including strategy development, content creation, campaign management, and analytics and reporting. While traditional agencies provide a broad range of marketing options, they also include legacy media like print and television advertising. Digital agencies offer web-based strategies and solutions focusing on modern consumer behaviour and trends.
Types of marketing agencies
Before launching a marketing agency, it’s important to understand the different specializations in the marketing industry. This will help you decide which type of agency fits with your expertise and the services you aim to provide.
Traditional marketing agency
Traditional marketing agencies specialize in conventional advertising methods, including print ads, TV commercials, and direct mail campaigns. They’re best for clients looking to reach target markets through traditional media channels.
Complete digital marketing agency
A complete digital agency is a full-service agency that offers a full suite of digital marketing solutions. Typical digital marketing services include social media marketing and management, search engine optimization, content creation, influencer marketing, email marketing, pay-per-click (PPC) advertising, and web design. These agencies offer their clients an all-in-one solution for their digital marketing requirements.
Specialized digital marketing agency
Specialized digital agencies zero in on just one or two areas of digital marketing. For example, they might focus on SEO, PPC, influencer campaigns, or social media marketing. These agencies are great for clients who need extensive experience in a particular area, rather than a wide range of marketing services.
Freelance digital marketing agency
Individuals typically run freelance digital agencies, offering flexible, budget-friendly marketing services. They often focus on niche areas such as content marketing, social media management, PPC, and graphic design. They usually take on individual projects and charge clients by the hour or at a fixed rate. This makes them a popular choice for small businesses and startups with limited budgets.
Branding agency
Branding agencies specialize in creating and refining a company’s brand identity. They offer services like logo design, visual identity development, brand messaging, and strategic planning. They help businesses create a strong, consistent, and memorable brand.
Public relations (PR) agency
PR agencies oversee an organization's public image and its communications. They specialize in services like crafting and distributing press releases, crisis management, media outreach, and event planning. PR agencies help businesses build and maintain good relationships with clients, customers, and other stakeholders.
Creative agency
Creative agencies focus on providing innovative visual and creative solutions for businesses. This can include video production, copywriting, graphic design, and campaign planning and execution. Creative agencies help companies find their unique voice.
How to start a marketing agency from scratch: 8 key steps
There’s never been a better time to start your traditional or digital marketing agency. Not only is the process of building your own company incredibly rewarding, but it’s also much easier than it used to be. Startup costs are far lower, and the move to digital has made cost-effective tools available to everyone. Outsourcing critical business elements like HR and payroll also reduces startup costs, making it far easier to become an entrepreneur. With careful planning and execution, you can create a successful marketing business. Here are eight key steps to guide you:
Step 1: Determine an ideal target audience
Who are your customers? When starting out, it’s critical to identify the potential clients your traditional or digital marketing agency will serve. To determine this, lean on your own knowledge and study market demand in the areas you want to serve. What do your customers need that you can provide? Are you servicing a small market or offering your services globally? Do you want to provide services to specific groups (e.g., startups, small businesses) or sectors like retail or travel and tourism? A clear picture of your target market enables you to personalize and market your services successfully.
Step 2: Develop a detailed customer profile
Now that you’ve chosen your target market, it’s time to take a closer look at who they are. Create detailed customer profiles that summarize their needs, challenges, and objectives. What obstacles and pain points can your services effectively resolve for them? This step helps you create focused marketing strategies that appeal to clients' needs and showcase the benefits of working with you.
Step 3: Establish your specialized market
Set your marketing agency apart by specializing in a specific service or market. Whether it’s SEO, PPC, social media, influencer marketing, or a traditional marketing channel, choosing a specialty allows you to position yourself as an expert in that field. Clearly defining your niche will help attract clients and reduce competition from full-service agencies.
Step 4: Acquire your initial clients
Now it’s time to build your client base. You can do this in several ways, including tapping your personal and professional networks, cold outreach (e.g., cold calling and cold emailing), and offering a discounted rate to demonstrate your abilities. Use business platforms like LinkedIn or industry-specific forums to connect with prospective clients. Build credibility and generate referrals by delivering great results from the start.
Step 5: Optimize service execution
Delivering high-quality services consistently can be challenging, especially for smaller agencies and solopreneurs. The key is to create efficient practices and workflows. Make note of your various workflows in different areas, like client onboarding, campaign management, and results and performance analysis. How can you improve them? In many cases, the right software can make all the difference. Project management tools can save the day by optimizing your workflows, helping you meet all your critical deadlines. A well-executed plan increases client satisfaction and loyalty.
Step 6: Create a strategy for growth
Growth. It’s a double-edged sword. Too slow, and it hurts your bottom line. Too fast, and you struggle to keep up. The solution? Plan how you’ll scale your traditional or digital marketing agency over time. This includes team expansion, additional services, and targeting larger clients. Focus on building solid, long-term relationships with your current clients while exploring new opportunities through your own promotional efforts.
Step 7: Build a strong brand
You’re in marketing, so you already know the importance of establishing a brand that reflects your values and expertise. Build your brand with a compelling logo, high-impact web and social media presence, and marketing content that resonates with your target market. Branding consistency is key to building trust and standing out in a highly competitive market. If the job is too big to execute internally, look for top-notch branding specialists to partner with.
Step 8: Leverage data for continuous improvement
Today’s analytics and reporting solutions simplify measuring campaign performance and overall business success. Regularly review metrics like client acquisition costs, ROI on your marketing strategies, and client satisfaction rates. These data-driven insights help you refine your business processes and flag areas that require attention, paving the way for increased success and growth.
Best tools for new marketing agencies
Starting a traditional or digital marketing agency isn’t easy. If you’re a solopreneur or have a small team, you can find yourself overwhelmed just running the business, never mind serving your clients. That’s where the right tools can make all the difference. They’ll help you optimize your operations, allowing you to deliver exceptional customer results. These are the essential tools for new marketing agencies:
Payroll software
Payroll software simplifies the employee payment process and ensures you remain compliant with federal and state tax laws. Tools like Rippling can automate many payroll processes, including tracking hours, calculating tax deductions, issuing forms, filing taxes, and managing benefits. With the right solution, you can reduce the amount of payroll busy work, enabling your team to concentrate on more strategic planning and client services.
Mobile device management software
Mobile device management (MDM) is a software solution that allows organizations to securely manage and control mobile devices like smartphones, tablets, and laptops used by employees. It helps enforce security policies, deploy applications, and monitor device usage to protect company data.
Social media management tools
Social media management platforms like Hootsuite or Sprout Social allow marketing agencies to schedule posts, monitor engagement, and analyze performance across multiple social media platforms and channels. These tools optimize content distribution, provide insights into target market behavior, and help maximize campaign impact. Features include post scheduling, analytics dashboards, granular reporting, and collaboration tools.
Analytics tools
Tools like Google Analytics are indispensable for tracking campaign performance and understanding audience behavior. They provide insights into website traffic, conversion rates, and user demographics. Key features include customizable dashboards, real-time tracking of key performance indicators (KPIs), and integration with other marketing tools.
Automation platforms
Specialized automation solutions help traditional and digital marketing agencies manage repetitive processes and tasks efficiently. These platforms automate functions such as email marketing campaigns, lead development, SEO, social media campaigns, and tracking customer engagement. Standard features include visual workflow builders, detailed reporting tools to measure campaign performance and ROI, and integrations with other platforms.
CRM (Customer relationship management platform)
CRM systems like NetSuite and Salesforce help manage client relationships and track leads. They centralize customer information, improve communication efficiency, and help marketing agencies maintain structured pipelines. Key features include contact management, sales forecasting, email integration, and data-driven analytics.
Workforce management platform
Workforce management platforms like Asana or Monday.com are great for keeping team projects organized and on track. These software solutions make collaborating easy by assigning tasks, setting deadlines, and monitoring everyone’s workload. Features include customizable board views, time tracking integrations, and real-time updates to keep teams in sync and work more efficiently.
Benefits administration
Benefits administration software like Rippling makes it easier for agencies of all sizes to handle benefits and perks like health insurance and retirement plans. These platforms automate enrollment, help you stay compliant with federal and state regulations, and give employees self-service access to their benefits information. Additional features include benefits comparison tools, automated renewal reminders, built-in reporting, and third-party broker support.
Minimize the administrative work of building a marketing agency with Rippling
The best way to build your traditional or digital marketing agency—right from the start—is with Rippling. Rippling automates critical but tedious admin work for onboarding, payroll, benefits, labor compliance, mobile device management, and other important HR and IT tasks—so you can stay focused on building your business.
Rippling seamlessly syncs all the data you need to run payroll in minutes. Never manually enter data, like hours worked, or use a calculator to figure out overtime pay, benefits deductions, or 401(k) contributions again. This automation ensures accuracy and saves you valuable time while maintaining local, state, and federal compliance.
With Rippling, you can offer a competitive benefits package, no matter your agency size. We level the playing field by making it easy and affordable to offer world-class employee benefits. Differentiate yourself from the competition by offering attractive benefits ranging from healthcare and retirement plans to commuter perks and beyond. Even the smallest agency can provide big company benefits.
Rippling’s all-in-one platform can help you scale up your team, hire and onboard contractors, freelancers, and full-time employees in minutes. Just click “Hire” and Rippling automatically adds new team members to payroll and sets them up in the right systems.
Hiring out of state? It doesn’t have to be a headache. From automated state tax registration to remote IT management, Rippling makes it easy to hire, manage, and even offboard a distributed team.
Rippling eliminates manual and repetitive IT processes. Use a single integrated solution to securely manage identity, access, passwords, and devices. With Rippling’s IT management software, it’s easy to remotely configure, manage, and protect the computers and apps your employees use every day.
Rippling helps marketing agencies focus on what truly matters—helping clients achieve their marketing objectives while building a thriving business.
How to start a marketing agency FAQs
Can I start a marketing agency on my own?
Absolutely! Many successful agencies begin as one-person operations. Solopreneurs leverage their skills, expertise, and business contacts to grow their ideas into thriving operations. The key is to focus on your strengths and offer niche services (e.g., SEO, PPC, and email marketing) to establish yourself. Gradually expand the business as you add clients and additional resources.
How much does it cost to start a marketing agency?
The cost of starting a traditional or digital marketing agency depends on multiple factors, including size, services offered, and location. Even solopreneurs must factor in expenses like website development, business tools, legal fees, and marketing costs. According to estimates, startup costs can range anywhere between $1,000 to $30,000 and much higher, depending on the size of your venture. While there’s no one-size-fits-all figure for starting an agency, you can keep costs down by working remotely and outsourcing business tasks like payroll and benefits administration.
How long does it take to start a marketing agency?
It depends. Starting an agency from scratch can take one to three months, depending on factors like size, preparation, client list, etc. In general, the smaller the operation, the easier it is to get up and running.
Is owning a marketing agency profitable?
Owning a traditional or digital marketing agency can be highly rewarding and profitable with the right strategy. Factors that impact your ROI include your ability to attract and retain accounts, financial management skills, and the quality of your marketing services. Focusing on high-demand services like SEO consulting, social media marketing and management, and digital marketing can help boost revenue growth.
What should new agencies focus on when starting a digital marketing business?
New agencies should begin by defining their niche and building a solid business plan. Focus on marketing strategies that highlight your expertise, such as SEO, content creation, and lead generation, to attract your ideal clients. A strong online presence helps establish credibility and connect with your target audience. Whether you're launching as a freelancer or growing into a full-scale digital agency, prioritize client relationships and tailor your strategies to deliver positive results.
What do I need to know about how to start a marketing business?
To successfully launch your venture, planning is everything. Whether you aim to build a startup marketing agency or join the ranks of traditional small business marketing firms, focus on defining your expertise, dialing in your audience, and don’t forget headcount planning. When it comes to starting a digital marketing agency, emphasize innovation, client relationships, and a strong online presence to put the right pieces in place for long-term stability and growth.
This blog is based on information available to Rippling as of April 24, 2025.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
