How To Start A Digital Marketing Business In 2019
Hey everyone, this is ruin. And throughout this week I’m going to be covering how to start a digital marketing agency from scratch and build it up to $25,000 per month, which is my current agency. Right now I have a small office in Connecticut and I’m really going to explain to you some of the things that I really had to consider. And then anybody should consider throughout this whole week going through this and actually going through starting out the agency.
Now before I actually get into the video. Throughout the whole week, I’ll be giving away consultation calls. So if there’s a topic that you want me to cover in terms of digital marketing, please comment down below with the topic that you want me to cover for a chance to win a 30 minute consultation call. If you have a digital marketing agency, I can certainly help you out by getting on the phone with you.
Now let’s go ahead and begin by just starting out and asking and saying actually what actually is a digital marketing agency. I think everybody on my channel is pretty familiar with what it is. But basically what you’re doing is you’re taking clients in you’re providing a service to that client and then you’re letting that client see results through time with the expectation of paying each and every month or paying for a one time service etc as like
That and it’s really important to understand that agency has a ton of different services that you can provide. So I think that’s the number one important thing is to start off with an agency is to really understand the product or the service that you have. But a lot of people don’t really understand this. A lot of people don’t understand that all the digital marketing agency really is is it’s a bridge from customer to freelancer, right? A lot of the times, including my digital agency, although we have four people in house working our agency utilizes freelancers a lot. So really, the difference is the difference between a freelancer and an agency is that the agency finds freelancers for the client, so it’s just a bridge.
A lot of the times the digital agencies aren’t actually doing the work inside the house, they’re basically just finding the customer finding the freelancers and bridging the gap. And once they do that, they get paid a percentage or a dividend or monthly retainer, whatever it may be in the middle of that transaction. So once you really start to understand that that’s your overall goal with a digital marketing agency is it really starts to shape your mindset and in this video, your mindsets really going to be shaped that’s
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So how you should act, how you should perform what daily activities or tasks should you complete day by day, if you own a digital marketing agency, I get that question a lot. And sometimes I’m gonna be real, I’m gonna, I don’t even fucking know, right? A lot of the times I come in, and there’s just a whole new thing to explore.
I come into work every single day and we’re running 25 clients per month, whatever it may be, I come into work and there’s just like completely different things that I’ve never done before my life just coming up every single day.
So in this video, I’m going to give you my past years experience as to what I’ve been doing day by day to kind of grow my agency to make sure that I keep my clients retained and to make sure that I keep my reputation up because one thing that you’ve really got to make sure you look out for with digital agency is if you’re younger, if you’re like myself, 24 years old, then you’ll know that you know, you’ve may have never owned a business before and this may be your first business that you’re running.
But we were you’ve got to remember that even though this is a digital business, you’ve still got to remember that you can’t just keep aside all of the other things that make a business great, such as customer service, such as customer loyalty, such as communication, such as
Training employees etc. We tend to forget that although this stuff is really digital, and it’s really easy to make money with, we tend to forget this is at is an actual business. So you’ve got to treat it that way before you ever start your agency. You know, keep the mindset as if you’re investing hundreds of thousands of dollars to open a franchise because if this stuff on the internet wasn’t around, opening up a business is extremely expensive, and it’s very cost for the is very risky. And you should take the same practical approach when starting your digital agency, but don’t make that hinder you from actually growing into your success. So in this video, I’m going to cover with you what I’ve been doing day to day in the past year or so, while being in the agency. And I think it’s really important that people see this just because a lot of people may think that, you know, daily tasks and activities are what it’s probably completely not. And it’s not a lot about, you know, prospecting for me, to be very honest with you. Like my first year I wasn’t going after customers because I knew for sure that in the year of 2018, I would fuck up everything.
would just completely Fuck off. I would shit on people, you know, I get bad reviews, whatever it may be, I wanted to flush all this bad shit out on the first year. So the second year when I come across, you know, growing my agency and stuff like that, when I actually have a digital marketing strategy in place to actually start growing and revenue, I can have a system in place that takes a customer from point A to point B and ruin is completely out of the scene. He’s home playing Fallout 76, he’s not at the office. He’s not fucking around. He’s not touching clients. And that’s the goal.
And I think in the first year of business when you’re doing this is to not get discouraged. I know that there’s programs out there that really they, they, you know, they,
they swear that you’re going to get this high number of sales, they swear that you’re going to get a lot of revenue coming in all of this other stuff. And although that’s like really doable, and it’s really scalable. And I think a lot of people have done that, you know, in my first year, I’m at $25,000 per month, which isn’t bad. It’s about 300 k per year plus, but with that being said, I envisioned myself when I started doing this to make like 70 grand a
month my first year because all the programs online we’re saying that but really your first year you should be looking to just completely Eat shit. Learn everything that you can about digital marketing and learn how to get results, learn a system, document everything. So in the next year when you have all that all that stuff set up when you have your payroll setup when you have your advertising budget setup, when you haven’t, you know, employee setup and you stop clients. We have all of this stuff on the second year, that’s when you hit the pavement running you know, your first year of business really look at it as a learning experience. Because the person that you are on the second year of business is going to be completely different than the first year and you’re going to wish that you waited to get a ton of customers for the second year. Look, I cannot fucking tell you how many times I say no a day to certain business opportunities. And it’s a shame because there’s a lot of revenue being left on the table. But at the end of the day, I don’t feel comfortable taking on 100 clients. I don’t feel comfortable making 100 grand a month and it’s the only reason being is because I don’t have that system in place where I can just come back
be out of the office and let the business run. Unfortunately, that’s just how the way works. I don’t really care. I’m growing into that. But I really wanted to make sure that you really understand that the first year of business, you really got to be getting some customers. Not too many, though, because you don’t want to overwhelm yourself. Because with this stuff, it does take a lot of project management actually get done. So you really got to figure out in your first year, what are you going to do day to day to make sure that you’re delivering an exceptional service so in this video I’m going to cover you know exactly what I did kind of like my first year and I’m going to show you right here throughout the whiteboard. So my first year right, I was basically just doing basic things, right.
I’ll show you some of the things that I was doing that I liked and some of the things that I was doing that I disliked and I’m just going to create a little pros and cons list here. So you can really start to see exactly what I’m talking about here. And you can start to really try to see what’s important for you to do in your first month. And what’s not important because I wish somebody showed me this as well. Right. I was tricked unfortunately.
into a lot of the programs online. One of the programs that I was not tricked by that really helped me in my first year was Joe Soto’s LCA Academy. He did a great job with that and teaching you sales and stuff like that my first year, one of the pros is I focus on service. Now a lot of people will say, Well, hey, you should be focusing on getting customers, you should be focusing on all this and that you should be focusing on really trying to scale your business.
And although that’s real, although that’s true, I firmly believe that if you’re just the best at what you do, if you’re just the best at getting results, your clients will actually refer you to other customers and your name will start to build a reputation within the industry. A lot of people what they’ll do is they’ll focus so much on sales, but they completely forget that they have kinds of service once they don’t service the client and once they keep in bad communication with the client then they start to see bad reviews online then they start to see clients firing them and when you start getting clients that fire you what starts to happen is your revenue just completely drops because your revenue is based off how many clients you can retain per month. Alright, so one of the main things that I did was as I focused
On service. Now, in the beginning of year of 2018, I had a really bad problem with service because I was focusing too much on paid ads. And I think you guys have heard me talked about this before, and there’s nothing wrong with it. It’s just I found my core competency to be SEO core competency, meaning, what exactly does your agency niche in and for me, it was SEO, I really learned the skill of actually getting a website to rank on top of Google. And I found that that skill generally lasts much longer that skill generally last better results and clients seem to be more satisfied when you’re running an SEO campaign. alongside with Facebook ads, it really just depends how you’re doing it.
Once I’ve really found my core competency once I found out the exact product exact service that I wanted to sell every single month. Well, then when I started to do when I focused on services, I really got niche down and when I was pitching down, I was looking at a few different industries and I know that there’s a lot of companies that you can market out there but I really started to look into Injury Lawyers I really started to look into Home Services I really started to look into medical just because when somebody
Makes a Google search or when somebody looks season out of this online, not only does that doctor or dentist or injury attorney have the money to pay for the service, but they’re also getting a higher return on investment when they’re getting for the service. So I also looked at realtors and stuff like that. And I stopped working with restaurants, I stopped working with all of this other stuff. So I stopped working with niche niches with low return on investment.
Because if you’re working with niches that have low return on investment, what you’re going to see is that you’re gonna have to get somebody a client 1000 new customers in order for you to just get them a return on investment. For example, a restaurant is that makes an average of $35 per table, meaning every person that eats there, every couple that eats there makes you know, they make $35 well now you’re gonna have to get them 300 something sales just to get you your $1,000 back. So if our retainer is $1,000 per month, let’s say which is very low, and we’re going to talk about pricing and stuff like that in a later video this week, but if your pricing is that $1,000 per month and you get a restaurant
You’re gonna have to get a restaurant 28 clients at 57 cents just to make you your money back, which actually isn’t that bad at all. Now, if your client is paying you 1000 a month, and they make $10,000 off of a client, well, now you’re going to have a much happier clients simply because they’re getting a positive equity of $9,000. So they’re making $9,000 off of your actual search engine optimization service, whatever it may be. So I stopped focusing on niches with low return on investment. One of the definite pros that I did throughout the year is I focused more on networking with higher end people, not just like networking with the chamber events and stuff like that.
And I will say that in my first year, that was definitely something that I did well is I networked a lot and I started networking with not only places like chamber,
you know, not only places like this, where you can actually go to your local town or city and getting to a networking event, but I also started networking with other entrepreneurs, right, and these are people inside of Facebook groups. These are people inside of all of these cool communities online.
And these people are I wanted to make sure that these people were people that I was talking to that were my end user. So let me show you an example. So if an entrepreneur is a web designer, okay, let’s say I knew a web designer. Well, that web designer is selling websites, right? At the end of the day, they’re selling websites. And if I can connect with these with this web designer, and have this web design and refer me to their clients, I get direct access to the client’s website. And then you can sell them search engine optimization service granted that that web designer wasn’t selling that but this is just a case, an example just to show you exactly what I’m talking about.
So I focused in on networking. And one of the cons that I did last year is I bought office space too soon. Okay, so I bought office space way too soon. And the reason why I say that is because when I think when I bought my office space, I was at like, I want to say, like $4,000 a month or something like that. And that was a big problem because my office space was at the time of splitting it with somebody so
Is 550 per month. And that’s kind of a lot when you’re just starting out. So when you’re just starting out, you’re going to have to test, you’re going to have to make failures, you’re going to have to eat shit, you’re going to have to literally not do well for such a long period of time that I highly recommend you save your money. If you save your money, because you’re gonna have to buy software, you’re gonna have to run ads. If you’re a person that’s using Google PPC, if you’re a person that’s may want to specialize.
If your core competency may want to be in let’s say, web design. Well, you’re going to have to, you’re gonna have to ditch out money for graphics, you’re gonna have to ditch out money for development. And a lot of the times throughout your first year you’re going to fail a lot of this stuff because your second year you your second month you your second day, you even tomorrow after you watch this video and you’re gonna be completely different.
You’re going to see that you’ve made mistakes that you’re not going to do in the future. So you really got to signify your process within the first year. That’s why I recommend not getting overhead mean I went out bought office space, which is really stupid. The office space that I’m sitting in right now right now. I don’t I don’t rent it out with anybody. It’s just completely myself.
space, I think it’s like 1500 square feet, whatever it may be. I don’t know how big it is. But basically, I bought this. And it was real big mistake when I started because I learned and tested so much. When I was starting, I’ve spent hundreds and hundreds and hundreds of dollars on my own Google PPC ads, my own Facebook ads, my own search engine search engine optimization services, sometimes they completely flop sometimes they don’t. But that’s really your goal within the first year is to figure out exactly what you’re going to use and what you’re going to test on. So you can really start refining your offer. So you can really start refining your processes. So let’s get back into it.
So that was another con that I had, and the first year now the third pro that I had in the first year is I hired people, right? I think that a lot of times, digital agencies are like scared to hire people because they don’t want to act like grown adults, and they don’t want to pay for payroll. But at the end of the day, I mean, you can’t just freelance all of this stuff, it’s going to be very hard for you to do that. Now I’m going to talk about this in a future video as to who you should hire, etc. and stuff like that. But you’ve really got to make sure that you’re hiring people.
That have a common goal is you and have a common Morales you, you know, you can’t hire somebody that you don’t get along with. And one thing that you can’t do is you can’t hire entrepreneurs that are already entrepreneurs, because they’re just going to want to work on their own business, they’re not going to give a fuck about yours. So you’ve got to really be careful with that, when you’re hiring.
I recommend that you hire people that are younger than it just getting into this stuff. Or that you hire people that are older who have already made based been through their entrepreneurship or, you know, they may have been a good writer, you know, they’re they’re delegate, you know, they’re good at project management, those are the types of people that you want to hire. You don’t want to hire somebody who’s trying to start their own company. That’s a terrible idea.
Because what they’re going to do is they’re going to come in, they’re going to learn everything that you know, and then they’re going to run off with it, and then they’re going to start their own business and compete with you directly. So that’s the definitely the pro I can make. Now, you can also say that this is a con You can also say that this was a con right here because I could have saved a lot of money while hiring that person. But now I have somebody who’s trained and skilled and knows exactly what I’ve been doing for a whole year. So when I do want to step away from my business when I do actually want to get away from clients.
I actually do want to just run the agency and just kind of like grow my own blog or something like that. I have somebody that has extreme knowledge in terms of hiring in terms of web design, in terms of SEO in terms of my market in terms of the people that I collaborate with.
And that’s kind of that level and you can kind of call it an executive assistant at the time now, it’s turned more into project management and business development. But at the time, it was kind of like an executive assistant because when I was making like, $4,000 a month, I didn’t really know what I was doing, you know, I kind of had clients was coming in, I was getting fired all the time, I wasn’t doing a great job and I was just getting fired. And that person really saw that and that allowed me to make changes into my business. So if there’s one thing that I can tell you about a person that’s hired is that they’ll have a completely different set of eyes on your business that you won’t even notice and it allows you to make better changes because of that right. So that’s definitely could be a con as well. And one of the other cons that I did when I started out my business is I really liked
Okay, this, let me get this right here. When I started my business, I really lacked client communications. Okay, now this right here is probably when I say the easiest way to go out of business, it is the easiest way to go out of business, right? If you’re lacking client communications, that’s the most important part of a digital marketing agency, right? One Agency could perform could get extraordinary results. Another agency could not not perform maybe like 25%, let’s say this agency doesn’t do as well as this agency. Well, what happens is, is the agency that’s in contact communication with the client the most as long as the work is efficient. I mean, it can’t be like terrible work. But as long as the work is comparable, the person’s going to have a better experience with the agency that’s been in communication much longer. The simple lying reason for that is although we’re looking for these digital results, although we’re looking to actually provide results for clients. We also want to make sure that we are
in constant communication with our clients, because then it’s going to give them the reasonable doubt that you’re actually doing what you’re saying you’re doing. So let me know if you’ve enjoyed this video. I’m excited for the next video tomorrow. And today, we really talked about the pros and cons that I’ve really saw inside of my first year in business, you know, my pros, I focused on service, I really became a core competency, which I recommend for everybody to do. And then I really started looking into hiring people, right, the cons, I got office space too low I was working with niches with law investments such as restaurants. If you go on my Facebook profile, you’ll see that I’ve worked with a ton of restaurants and I really lacked client communications which then turned into really bad service for the clients which then turned into damage ratings as well as you know, this client communications and just not really building the relationship well so if you’ve enjoyed this video, let me know the comment down below on a topic or suggestion that you would like me to cover in terms of digital marketing agency and I’ll see you guys in the next one.