How to Start a Digital Marketing Company: A Guide for Start-ups 

Key takeaways:  

• A digital marketing agency helps its clients advertise and sell products or services through interactive channels like websites, social media, and paid ads. 
• Search engine optimization (SEO) and setting up analytics tracking is a must for monitoring website performance, conversion, and user behavior. 
• It’s important to choose the right domain name that can represent your brand professionally and establish your values to your target audience.

Small businesses are the backbone of the US economy, being responsible for 43.5% of the country’s gross domestic product (GDP). If you’re looking to turn your digital marketing skills into a profitable business, you don’t need a huge budget or a spacious office to get started.  

Whether you’re working alone or with a small team of less than 20, with the right approach and basic tools, you can run a profitable business from the comfort of your home.  

This will show you how to start a digital marketing company, including creating a professional website using Network Solutions’ key tools such as our domain and website builder services. You can establish a strong online presence that can help reach your target audience.

What is a digital marketing company?  

A digital marketing agency helps its clients advertise and sell products or services through interactive channels like websites, social media, and paid ads. It complements conventional marketing methods (TV and newspaper ads) by connecting companies with individuals who are interested in their products or services.  

With about 4 in 10 adults being online almost constantly, a digital marketing company provides an interactive customer experience that builds a brand and fosters an online community, which leads to higher customer retention and increased referrals.  

A digital marketing company shouldn’t be confused with a full-service agency. While a digital marketing company’s expertise is focused solely on online activities, a full-service agency offers a broader marketing strategy. It handles both online and traditional advertising, including social media campaigns, billboard design, and event organization.

Why do you need a digital marketing company

• Global audience reach. A digital marketing agency allows businesses to reach a global audience. With 5.56 billion people (67.9% of the world population) accessing the internet, the potential reach is simply massive.  
• Targeted approach. Digital marketing lets businesses focus on online efforts for their target market rather than trying to reach every internet user. This yields high-quality search results by engaging with individuals who are genuinely interested in their products and services.   
• Increased engagement. A well-planned digital marketing strategy boosts engagement by using a data-driven approach, creating valuable content, and fostering a community of continuous connection. 
• Measurable results. Unlike conventional marketing that relies on hunches and guesswork, digital marketing tracks actions like website traffic, conversion rates, and engagement. This lets clients make informed decisions, optimize spending, and refine strategies to maximize budget based on actual data. 
• Adaptability. Customer preferences shift regularly, and digital marketing allows businesses to adapt to changing times by monitoring key metrics and data. 
• Cost efficiency. Digital marketing offers value for money since clients can control their spending, perform continuous monitoring, and reallocate funds from underperforming projects to high-performing ones. This ensures funds contribute to measurable business growth. 

How to create a digital marketing company  

Creating a digital marketing company from scratch can be a rewarding endeavor. However, there’s more to it than just passion and knowledge on marketing. You need to employ strategic planning from creating a website, registering a business, and getting clients.  

Follow this step-by-step guide to create a digital marketing company that has the potential for sustainable growth.

1. Formulate a business plan. 
2. Define your target audience. 
3. Establish your specialization.  
4. Register your business. 
5. Get an employer identification number (EIN). 
6. Choose your domain name and create your brand identity. 
7. Build your website and boost your online presence. 
8. Perform SEO and set up analytics tracking. 
9. Simplify services with the right tools. 
10. Create a strategy for growth.  

Step 1: Formulate a business plan 

A business plan is important, especially if it’s your first time setting up a digital marketing company or a business. Creating this document   gives you structured guidance for the following:

• Strategic decision-making. A business plan allows you to make informed decisions and focus on your long-term goals. By framing your objectives and strategies, you align your decision with your overall vision.  
• Risk management. Risks are inevitable when doing business, but a business plan, through market and competitor analysis, allows you to identify risks and weaknesses. This way, you can make timely changes when issues arise.  
• Progress measurement. A business plan comes with a benchmark for success measurement by comparing company performance to operational goals and financial projections. With this, you can decide if it’s an ideal time to expand your services or your operations. 
• Funding acquisition. Investors and lenders (banks and credit unions) require clear plans before releasing funds to borrowers. A well-researched and properly written business plan shows them that your company has revenue potential and can handle financial commitments. 

Check our quick guide on writing a business plan for more guidance.

Step 2: Define your target audience 

Identifying your target audience or a specific group that’s most likely to hire your digital services allows you to focus your marketing approach on the right prospects. 

Here are the usual factors that you need to consider:

• Demographic data. Age, gender, occupation, lifestyle, and income.  
• Behavior. Purchase history, engagement, and website interaction habits.  
• Consumer motivations. The “why” behind consumer actions (e.g., low price, speed, simplicity, savings.) 
• Psychographics. Values, beliefs, interests, personality traits, and lifestyle preferences. 
• Pain points and challenges. Specific problems, frustrations, and obstacles your prospects face daily. 
• Goals and aspirations. Short-term objectives and long-term vision for success. 
• Media consumption and information habits. How and where your prospects consume content and seek information. 
• Purchase intent and customer journey stage. Where prospects are in their buying process and readiness to purchase. 
• Subcultures and communities. Niche groups, professional associations, and communities where your prospects gather. 
• Technology adoption and digital sophistication. Their comfort level with technology and digital tools. 
• Decision-making process and influencers. How purchasing decisions are made and who influences them.

Step 3: Establish your specialization 

Due to competition in the digital marketing sector, service providers benefit from offering specialized services instead of general ones. This is because specialization implies expertise, improves campaign efficiency, and delivers better results. 

To be successful in digital marketing today, it’s better to specialize rather than be a generalist. By focusing on a specific area—like SEO, social media, content marketing or e-commerce marketing—you can become a true expert and possibly charge higher rates. 

You can even choose to specialize by industry or vertical, such as working exclusively with real estate or healthcare companies, if you have a better understanding of their unique challenges. 

To find your niche, start by looking at your existing skills and what the market needs. If you’re currently a generalist, you can transition gradually by phasing out services you no longer want to offer. Your specialization can become your biggest competitive advantage, making it difficult for others to compete with you. 

(We’ll discuss the most common specializations later below.) 

Step 4: Register your business 

Registering your digital marketing company protects your business name from reputation issues. It also prevents unauthorized and unlawful use of your company’s brand and intellectual property, protecting it against brand infringement and counterfeiting. This signals trust and credibility to your clients. 

You can take it a step further by applying for federal trademark, as it provides more extensive protection than a state trademark, which only protects against offenses within a specific state. Many digital marketing start-ups initially register state trademarks for immediate local protection and later upgrade to federal registration as they expand.

Step 5: Get an employer identification number (EIN) 

An EIN or Federal Tax Identification Number is issued by the Internal Revenue Service (IRS) to businesses. For a digital marketing agency, it’s important for various reasons: 

• Legal requirement. All US-based businesses are required to have an EIN before operation. 
• Tax reporting. An EIN is used for tax filing and other documentation tasks. 
• Separate finances. An EIN allows you to separate business finances from personal finances by allowing you to open a dedicated business bank account. By having one, you can also apply for credit, which is crucial for financial stability. 

Step 6: Choose your domain name and create your brand identity 

Your domain name is a must if you want to create your brand identity. So it’s best to choose the right one that can represent your brand professionally and establish your values to your target audience.  

It’s the foundation of your online presence, affecting how customers perceive your trustworthiness and remember your brand. Therefore, make sure that it’s clear, easy to spell and recall, and relevant to your industry. 

Here, Network Solutions’ Domain Name Search tool becomes valuable. You can access endless domain name options, enjoy easy domain name registration and management, and perform seamless domain integration.  

Additionally, our upcoming AI-powered Logo Builder feature can help you create a professional logo to help your digital marketing business stand out.  

Step 7: Build your website and boost your online presence 

A professional and well-designed website is a must if you want to create a digital marketing company that showcases your expertise and attracts potential clients.

• Choose your business and domain name. Your domain name impacts client perception; a strategic domain choice matters since it creates a first impression, showcase expertise (e.g., keyword-rich domain like digitalmarketingexperts.com, and protects brand by avoiding confusion from competitors.  
• Build core pages. Core pages are important since they build client credibility. For instance, an About Us page humanizes your brand and explains your approach, a Services Page elaborates your offerings, and a Contact Us page offers various communication channels that encourage appointments and inquiries.  
• Add security features. Website security sometimes makes or breaks client acquisition, making Secure Sockets Layer (SSL) important. It protects personal and payment information through data encryption.

Network Solutions’ comprehensive domain registration and management services can help you secure your online visibility. Afterward, secure your site, reduce data breaches, and build client trust with our SSL certificate and protect your business and clients.

Step 8: Perform SEO and set up analytics tracking 

For an agency, SEO is credibility which can translate to sustainable income. It drives organic (free) traffic by connecting with people looking for solutions. SEO also increases brand awareness by increasing website visibility to more people through mobile optimization, site speed and functionality. 

SEO is ideal for start-up digital marketing agencies looking to establish client relationships through results-driven online solutions. Proper data collection and measurement are key for demonstrating these results, which is why setting up GA4 tracking becomes a must for monitoring website performance, conversion, and user behavior.  

Check our simplified guide on how to set up Google Analytics for more information.)  

You can check out our SEO Tool to manage your own or your clients’ on-site SEO, and our professional SEO services for professional help with strategy and implementation.

Step 9: Simplify services with the right tools 

To connect with potential clients, perform services, and stay competitive, you need the right tools to simplify processes without compromising accuracy. By leveraging modern technology, you can perform tasks more effectively and efficiently. Here are some indispensable ones:

• Google Analytics 4 (GA4). GA4 is a must-have tool for tracking website traffic, understanding user behavior across websites and apps, while automating data collection. With these, you can gain valuable insights into customer behavior that you can use to improve business performance.   
• SEMrush. Many digital marketers brand SEMrush as an all-in-one service platform for SEO, content management, social media marketing, and ad management. Features like keyword research, site audit, and engagement tracking enable you to deliver an integrated digital marketing solution for your clients.   
• Sprout Social. Sprout Social consolidates your client social media accounts (Facebook, Instagram, X, LinkedIn, and TikTok) into an organized dashboard. This allows you to manage everything at one glance while providing must-have tools like individual calendars and approval processes. It also comes with smart scheduling that allows you to post content when audiences are most engaged.

Step 10: Reach potential clients and strategize for growth  

Now that you’re set up with the right tools, it’s time to acquire clients. You can simplify your acquisition approach with these proven strategies:

• Use multiple channels. Combine emails, LinkedIn outreach, online ads, and social media to reach more prospects. 
• Stay active on social media. Share your work and expertise to attract clients and build credibility. 
• Create video content. Videos build trust faster than text and can go viral, bringing in free leads. 
• Blog regularly. Write helpful content to show your expertise and improve your Google rankings so clients can find you. 

Those options are rather conventional, but they are still proven to work. 

If you’re starting a digital marketing agency with limited to no experience, include a strategy for growth since this sets a clear growth plan for long-term success.  

Start by mastering two to three core services, allowing you to hone your experience and deliver robust results. Map out training and certifications, especially for new members based on client growth. Consider basic SEO, social media management, and email marketing. 

After establishing your own system, scale up gradually transitioning to monthly retainer packages for financial stability. Over time, add higher value services and raise your rates to complement your expertise 

This approach builds a strong foundation prior to expansion.

Types of digital marketing specializations 

Let’s elaborate on Step #3 above and talk more about specializations. 

If you’re starting a digital marketing business, focusing on the right area can set you apart. While there are many digital marketing channels out there, here are some of the most common ones that still get sold: 

• Search engine optimization  
• Social media marketing (SMM) 
• Pay-per-click (PPC) 
• Content marketing 
• Email marketing

Search engine optimization 

A strong SEO strategy is built on several elements that complement each other to ensure that a website is ideal for both search engines and people. A successful SEO strategy includes the following:

• On-page SEO. This is the process of optimizing website elements to boost search engine ranking and deliver a better user experience (UX). It also signals to search engines that the website’s content is relevant and valuable for specific search queries. 
•  Off-page SEO. Off-page SEO enhances website authority through external factors like high-quality backlinks, which signal to search engines that a website is trustworthy. These links also drive referral traffic, enabling sites to reach interested users are looking for specific products or services. 
• Local SEO. This is a specialized approach that helps businesses appear in location-based searches. It’s ideal for those with physical storefronts or service areas, as it reaches nearby customers who are actively searching for specific products or services. In Google, it allows businesses to appear in Google Local pack or three local business listings that appear on search engine results pages in response to product or services queries. 
• Technical SEO. This ensures that a website meets the technical requirements of search engines so that it can be easily crawled and indexed. Technical SEO includes ensuring mobile friendliness, optimizing site speed, and using favorable site architecture.

Learn more on our simplified guide to SEO.

SMM is when brands utilize apps like Facebook, Instagram, X, YouTube, and TikTok to interact with existing customers and reach new ones to increase sales. 

SMM stands out because of three marketing components:

• Connection. Social media enables businesses to connect with customers across various platforms.   
• Interaction. Social media interactions give businesses free advertising through electronic word of mouth or when users recommend them to their “connections.”   
• Customer data. Social media platforms offer tools for data collection that enable users to gain insights into target markets and refine existing strategies.

Check out our article on how to build a social media marketing ecosystem.

Pay-per-click (PPC) 

PPC is an online advertising method where businesses pay each time an individual clicks their ad. The goal is to reach the right people and get them to visit their site or app. When properly planned and executed, the value of clicks is more than the cost.  

Unlike SEO, which takes time, PPC delivers faster results, making it ideal for new businesses or product or service launches.  

Content marketing is creating and distributing relevant articles, videos, and podcasts to attract and keep an audience. The goal is to create a brand and provide information that earns customer trust. It’s a core service that contributes to long-term success, as it attracts a target audience by offering content that answers their questions. 

Content marketing

Content marketing is creating and distributing relevant articles, videos, and podcasts to attract and keep an audience. The goal is to create a brand and provide information that earns customer trust. It’s a core service that contributes to long-term success, as it attracts a target audience by offering content that answers their questions. 

Email marketing 

This is a digital marketing method that builds customer relationships while promoting products and services, driving traffic to websites and social media channels through direct communication.  

With advanced A/B testing capabilities, it can be used to deliver measurable growth through a cost-efficient campaign.    

Start your digital marketing company with ease 

Confidence in your digital marketing expertise is a good start, but there’s more to starting a digital marketing agency than just the right idea. You know you need to have the right tools from which to build your foundation.  

You can use Network Solutions’ AI Website Builder to easily build a website that attracts potential clients. Make your site secure when processing leads with SSL certificates.

Frequently asked questions

Do I need experience to start a digital marketing agency?

Yes. Direct experience is beneficial. You should at least have some professional experience managing digital marketing clients and campaigns, either as an agency employee or at least an independent contractor. Better chances of success can come from choosing a niche, building a portfolio with early clients, and balancing service delivery with strong business operations to grow sustainably.