Is It Worth Starting A Digital Marketing Agency? (The Surprising Truth)

Is It Worth Starting A Digital Marketing Agency? (The Surprising Truth)

hey everyone this is Ron and in today's video we're gonna be dissecting the digital marketing agency business model because if you've been watching videos on YouTube if you've been online you've probably considered creating a business where you can bring a lead to a customer and get paid for that and for that I don't blame you because many of you may not be want to work your corporate jobs many of you may not want to do that so you're looking for a way to make money online so today I'm really gonna dissect the marketing agency business model for you and show some highlights pros/cons something that you should really look into before actually starting a digital marketing agency because I'll tell you right now it's a lot of work I currently own one the company's called the Vella mark and basically what we do is we take in clients and we sell services and we provide results with digital marketing services and is that model worth it because I'll tell you right now it's a lot of work and it's a lot of stress but at the same time it could be very rewarding because of the networks in the community connections that you're making so if you want a no-bullshit video on you know just my perspective on what I think about digital marketing businesses this is the video for you so I'm gonna get right into it and talk a little bit about a digital marketing agency because really when it comes down to it it is such an easy business to start in 2018 2019 and it's only becoming more and more competitive I think in two years three years five years the markets gonna be a little saturated so right now it's literally the best time to do it if you're looking for a business plan if you're looking for a corporate plan if you're looking for something like that because what I want to make very clear today is that a digital marketing agency is very different than a freelancer a lot of the times people don't understand what the do marketing ideas or they say that they have one but it's really just them no that's not what a digital marketing agency is that's called a freelancer if you're a one-man gang you're a freelancer right when you're a digital marketing agency literally what happens is you have people that are working under you servicing clients and doing stuff like that while you're getting the sales and that's typically how the business model works and in today's video I'm really gonna show you some really powerful examples for you to look at in conjunction with the pros and the cons of starting a digital marketing agency because if you want to stay at that freelancer level if you don't want the responsibility of having employees if you don't want to manage multiple clients then continue to be a freelancer because when you're a freelancer you don't have to you know with clients emailing you are calling you all their going to meetings all day you kind of just work from your computer you set the expectation that you're gonna communicate only through email and when you have a digital marketing agency it's a little different you're kind of running around all day you're on the phone all day you're doing this all day you know you're in the car you're going to the gas station you're doing this this this you're doing all of this crazy stuff you're headed to the bank you're doing all of this crazy stuff to manage the business because there's so much going on with the business there's some people that we're gonna talk here today that a digital marketing agency has that a freelancer or a different type of business simply just does not have and these key things are really what's gonna accelerate growth if you're looking to start a digital marketing agency business because what's gonna happen is you're gonna have to figure out a way to predictably scale when I was starting out I think I took on about five clients and then I realized I needed a little help and that's when I made my first new hire so at that time I realized I need help I can't scale this business and they're not really from that point that was determining point if I wanted to take it from freelancer to the agency as many of you know I having really good opinion I ever really ever believed I should say not a good opinion but a belief that every digital marketer goes through an evolutionary stays or the stage where they start out with Facebook advertising and some type of digital advertising and then they go into SEO and more content marketing related so in this video that's kind of the perspective that I'm gonna give it to you as the marketing service that we do is SEO search engine optimization there's a lot of companies that do different services that you know you know there's companies that may specialize in facebook ads there's companies that may specialize in email marketing that's kind of like the bread and butter but a digital marketing agency and that's why I consider myself a digital marketing agency is because we have people on staff to do a multitude of services right staff meaning that they come in every day they come to the work they sit there sit in the office they do the work they put up with the clients to execute so really what goes on there is is once you have you know people doing a bunch of other skills then you're kind of a digital marketing agency if you're just running Facebook advertising for clients and you're not doing SEO websites you're not an agency you're freelancer and there's nothing wrong with that green lancers can still be hyper profitable but that's why I think you're gonna get so much value out of this video today because I'm gonna really go through my thought process and what I was going through when I was starting my digital marketing agency and when I started it wasn't you know I was very scared I didn't really know what to do I was doing ads for people I was messing up I was losing a lot of money and it's fine it happens because in any business that you're gonna start regardless if it's a digital marketing agency you're going to have failures and you're gonna spend money so I'm really gonna get into deep the digital marketing agency business model and everything about it I'm not just talking about clients I'm talking about how we're gonna service accounts you know how you know thinking about if you're if you if you're willing to hire a team thinking about if you're willing with dealing reputation thinking about with your your with dealing hiring employees I mean there's a lot of stuff that goes into the digital marketing agency that when you're a freelancer right and when you're doing one service and you're kind of just like doing with clients email to email there's much less liability and let's start off with that right away because when you think of a digital marketing agency I just want to make it very clear of what it is so basically what a digital marketing agency is it's different from the traditional marketing agency that focuses on press and stuff like that and it just does digital things so you know some products or services that are digital marketing are graphic design LinkedIn management social media management search engine optimization I mean there's a bunch of different digital marketing things that a company can do it all depends on what you really want to specialize in so for us it was search engine optimization or I should say for me I fell off I fell in love with search engine optimization you know middle of last year of this year I should say actually and I learned from some people that were really good at what they do and paying the money definitely was worth learning what they know because now you know I have a skill set a direct skill set that I can monetize make money off of eat regardless in a multitude of ways and I'm gonna show you that right now how we monetize but other than that let's say you don't have a skill set if you don't have a skill set I mean you're you're nobody if you don't have an active skill set where you can measurably bring results or you can make some kind of impact in the world you know you're nobody you need to learn a skill set a skill set is monetized okay you can monetize a skill set you know a lot of people they want to start business and they immediately want to start making money off their own money you know like investing and stuff like that but that just doesn't make sense you should learn a skill and then start making money off of services to invest in a product or so right to give you a good example a lot of the money that I'm making for my digital marketing agency is going into marketing and it's going into the course so that's exactly a direct reflection of me reinvesting right into my product because I know that you have to start with a service Sam ovens you know wonderful wonderful wonderful person makes great videos on YouTube and and basically what he says is you know every consultant has an evolution and it all starts with you know done-for-you services and then it goes into products and we're going to talk about that a little bit today because a lot of people they know that people sell a lot of courses and the reason people sell courses is because they've figured out a way to make their services into a product so in this video today I'm gonna show you exactly my strategy with that not only my strategy but really you know which ones are which ones better because digital marketing agency is really really good because you get instant cash unlike doing something like affiliate marketing unlike dudes doing something like Amazon or like doing something like that the cash is pretty instant all you have to do is know all you have to know how to do is sell a customer and get a customer to pay you to do their services the beauty of this is is a certain you know search engine optimization spend Facebook advertising spend is only going up there are only more and more people coming onto this platform and there are only more and more people being born every single day exposed to Google so the digital marketing agency isn't is a wonderful business model because it has so much relevance in today's world it's like when the first time the newspaper came out right it's the it has so much relevance right now it is the way of getting the word out it is the way of communicating online you know everything is done online I can't really think of many tasks that are done offline so I definitely think that it is a very stable business model for you to be getting into especially if you want you know if you want you know a long term if you want something that's long term if you want a business and that's what I meant before by freelancers versus digital marketing agency a digital marketing agency as a business and you have to treat it that way so you have to put money into it you have to put more money into it then you look you know to learn you have to put more money into it on products you have to put more money into it on software to make your life easier you have to put more money into it on reputation management you've got to put more money in for your own marketing you know I'm very proud to say that I do a lot of my own marketing it like this video right now for my own agency so I do the same thing with customers in a variety of ways and that all depends on the service that you want to provide with your digital marketing agency now the thing with the digital marketing agency is not only does it have you know exposure and it has you know it did its birth you know the product life cycle is still pretty young it's in its infancy stage it's not gonna hit its peak and decline for a while because the Internet is only becoming more relevant and more and more businesses are starting to hear that they need to get on social media more than let's say they don't have to get on social media so it's gonna become hyper relevant in the next few years that's a solid reason the why would recommend getting into the digital marketing agency model you know if you're looking for a solid company then this is something that you do but let me ask you a question what if you're not for a company what if you don't want to start a company what if you don't want to literally you know work every single day have employees and stuff like that then this right here is not gonna be a business model for you a digital marketing agency is definitely for somebody and I need a digital marketing agency guys I'm not talking about sitting on a beach or freelancing everything I'm talking about a company with an office location with managers with SEO specialists with Google Analytics experts with stuff like that on staff managing a bulk of clients in the area and today I'm going to cover a digital marketing agency that I completely admire so you can kind of see what a real deal looks like because if I'm putting anything on the towel on this channel I hope you guys understand that it is the real deal I'm actually living this up and I think that that's why I have so much information I talk so fast because I have so much to talk about and all of that comes with having actual you know having actual data to talk about so I'm gonna go ahead and talk about scorpioned which is the digital marketing agency that you bet if you really want to see what a marketing agency looks like this is a great agency they do it I think it's like 192 million dollars a year that's the other reason why it's good to have a digital marketing agency you're gonna make a lot more than a freelancer simply for the fact that the amount of clients that you're gonna get but you know this took multiple years and years and years of time scorpion has never you know they were they weren't like this when they started out and unfortunately people see what they see so they see this nice website with all of this crazy stuff and if they didn't get this way until you know they started implementing failing learning over and over and over again and you can tell by their by their justice of their office space that they've really figured out a system here of how to get customers in work those customers so they're happy and get results and change a business's life to get a positive testimony online and that process is replicated inside of their business and there's really three core things that they're doing inside of that process which I'm going to share with you at the end of this video and I'm gonna show you exactly what they're doing with those three core things that's really allowing them to become duplicatable and scalable and create a giant massive office space that looks like this and I'll tell you right now from somebody who knows a lot about this stuff and works with a lot of companies I will say that this site is just seriously impressive and if you go on their site and you look at their clients you know there's a lot of impressive stuff that you can find out here which is really really cool you know we've had multiple discussions at the office of talking about making a website like this for us but unfortunately it's not in the time and it's also not in the budget because making something like this would be really really expensive but I want to talk about some of the things on their website that really makes them agency like okay first things first is they have a video here and this video is of the company and in that video they talked about the clients to is branding look at the branding you know freelancers they can have branding like this it's definitely definitely possible but the goal of this website is to get people to come here and submit their information so scorpion can take them on as client and you'll see that the button right here you'll see that right away talk to an expert that's there right away you know you can talk to an expert right away and that basically goes into a system which I'm going to share with you how the system works it goes into a system that gets converted into a lead and then the salesperson follows up and closes a deal and Skorpion adds a new customer while the CEO and all of the managing partners are just banking on the recurring revenue so they figured out a way to get the customers to come to them using things like search engine optimization etc scorpion does um do a lot of advertising as well and they have a lot of brand recognition and they have a lot of partnerships which we're also going to talk about in this video but really other than that they're known for their results if there's one thing that happens with a company is if they stick around they're getting results if your company hasn't been getting results of your customers you're not going to stick around and that's just the bottom line you know you're gonna be flushed out of the market so the fact that they've been in business for 20 years really show something about their their structure in their systems within the business and everything like that so what I want to reveal the three things here today the three things that every digital marketing agency absolutely needs to hear okay if you know if you're thinking about starting an agency or if you already have an agency you know this part right here is gonna make you excited because it really is the three things that you need to focus on when growing your agency this is coming from somebody who has four people working under them right now I think we're right around 25 clients which is great and I really think that you know the system that I'm gonna teach you right now and that's in the core of every agency Skorpion does this you know Neil Patel does this all the bigger agencies are doing this it's taking customers in and it's following a system a very unique system that any digital marketing agency can can really implement and it doesn't take much it's gonna take a little a little tweaking here and there and it's gonna take a little testing but really I've funnel hacked if you would I've I've contacted all of these companies to kind of see their structure and there's just a little bit and I'm gonna tell you today what these three things are and these three things are very similar throughout each and every one of these websites so it got me thinking I'm like okay so if they're all doing this right that means that it's working so this website right here it's probably being heatmap right now meaning scorpion can probably see that I'm on this website what I'm doing on this website where I'm clicking on this website and they can probably get the data to see that and they probably analyze that data and they've probably been doing that for 20 years and when a company has been doing that for 20 years when a company has been analyzing data for 20 years and they're implementing the data what should you do should you go off and try to be unique or should you try to create your own you know your own fantasy land your own candy land you should try to create your own systems no that what you need to do is you need to replicate yeah you need to replicate it's called the remix strategy you need to replicate okay not copy don't get that confused but sheets replicate you need to follow this system and you know the systems and how they're growing their businesses what exactly you need to follow so right now scorpion just just a few thoughts right now they have a video playing in the background and the first thing that you see is we help your business went online big and bold okay and they have a video there so they're probably encouraging the viewer to watch that video I wouldn't be surprised at 44% of the people that come to this website watch that video and if not you can definitely tell that they're trying to push the video as well because it's also right here so why are they using video and this is what I mean by agencies agencies are utilizing this is something that they're doing because they have the budget to do stuff like this they're utilizing video marketing as a way to get more people to confirm their website and they tested millions of different things because if you go back on to the Wayback Machine and you put in this company domain you'll see the thing didn't have a video forever if this wasn't forever but they've seen that when they added the video they got a lot more conversions so guess what they did in a video so anybody that's doing a digital marketing agency you know you should consider doing a video this is the part of the remix strategy is figuring out what the competitors are doing that are successful and really just grinding it out until you can you can compete right so let's talk a little bit about the three secrets so there's there's really three things that will make an agency hyper profitable and I'm not saying mine the types are profitable my agency brings in twenty five thousand dollars a month and I can say that with confidence and reports but it's not hyper profitable I know I I would think like twenty five thousand dollars a month would be great and everything like that but it's not that much unfortunately after paying overhead after paying all this stuff I mean it's not that much but there's a system to it that I figured out that no longer do I have to go looking for customers because I've mastered this system and the system works pretty well it's in three steps and it's the system that all of these other agencies are using right and 25,000 I mean my goal is to get to a hundred thousand a month with the agency that's the goal and once I reach that goal you know then then I'm sure the systems in the in this and and how we do business inside of my agency is gonna differ and you guys are all gonna be able to see that because I'm gonna share some of the content like this on YouTube and what's gonna happen is is I'm going to document and really see if it's much different you know see if it's much different to actually do this you know when I have a bigger agency but right now these are the three key secrets as to what's accelerating at least my growth and keep in mind my growth is from remixes of people's growth so I've analyzed a lot of people's drugs and I found out that there's three core things that really really will report we'll have somebody grow okay and one of them is one of them is service okay right that's service that means your services get results if your services don't get results if your product does not get results you're going to be washed out of the market very quickly people are people gonna see that you have you know you have nothing to you your your tuna your tuna on the market that's not good you don't want to be tuna on the market because when your tuna on the market you get washed out very quickly right number one is service and the second thing is customer service okay many people think that everything is about digital marketing but really when you're running an agency and when you're running in customer scale and volume you need to have customer service it's just how it is you need to have customer service and the last one is reputation management okay so you have to have good word-of-mouth right you people need to be referring you people need to be talking about you people need to be you know people need to be literally referring you to other people etc these three core things right here are going to allow you to massively scale an agency it I'm gonna get much more debt so please don't go anywhere but again much more depth on each one of these okay service let's talk about the service when you think of service and you can understand this when you get a client to pay you they are expecting for you to deliver a specific service and your the service that they're expecting you deliver is all based on the expectations that you set with the client because if you set the wrong expectations or if the client is confused it doesn't matter what results you're gonna get for them they're gonna think you're good you're supposed to be doing something completely different this is why when you set your expectations inside of your service you need to be really clear cut from the debt either get go okay I'm talking like as clear-cut as possible how many social media posts are you gonna do a month how many hours are you gonna spend doing that on-page optimization on that website how long is it gonna take to add all the products into that Shopify store you really need to figure this out I'm gonna tell you the secret to service right now its billing by the hour many people they think that because you know you're offering the digital marketing service you know you should charge like a ridiculous fee you know chart all those crazy money the services but the best way to service your clients is by doing it by hour and I'm telling you this right now from experience than seeing hundreds of proposals from other agencies that and it's all by per hour so I'm gonna tell you a little bit of why it's a little bit per hour so when you think about the service there's really three layers to it right there's the service that you're delivering which can be you know whatever your agency is going to specialize in so the service that you're delivering let's just say search engine optimization right all right search engine optimization well how much money can an agency charge for search engine optimization well let's say that's $200 an hour because that is the hourly rate for an agency to do surgeon optimization and let's say you work on your average client for five hours okay so for five hours that's $1,000 a month they get search engine optimization and what they get in that search engine optimization package is three pages per month okay let's just say they get to backlink let's just say that they get you know two directories a month and let's also just say that you'll do some social signals or I'm sorry looks through Google Maps Google my business optimization okay and let's say that you called it's the local silver package okay so now what you've just done here in your service right I want you guys to really feel out where I'm understanding right I know people charge thousand dollars to teach this so really pay attention to this okay so in service right you'll see that you what we just did here by writing down and clarifying what our goal is or what a digital marketing agency does is we've just created what's called a package and this package right here this local gold or local silver package is really promising to the customer three pages per month two backlinks to directories Google my business optimization so at this point of the process the customer kind of knows and they and they know what to expect from you from now you know they know that what they're signing up for they know that you're doing three articles a month they know that and what they're gonna do is they're gonna hold you accountable to that and that's where customer service kicks in but remaining on the topic of service you need to make sure that you can implement these services so let's talk about this right how can you implement these services with a $1,000 budget and have it be cost effective for not only your agency or your actual client so three pages per month and this would have to be much more specific this would have to be you know you would probably have to say three pages per month at 350 words whatever it may be so let's just say yeah let's just say 350 plus words okay so now you have this package where you're selling and you know you know now you're starting to feel like a company you are a company once you have this package because now you know what you're selling now you know what your going to be now you know what you're going to be servicing with your customer service now you know what you're gonna be defending what your reputation management that's really what the goal of this is so let's talk about this package a little bit and talk about it like really really really really in-depth because when you look at three pages per month well the average article that you can order on this place like I writer I need articles is typically around you know seven point five right so you get three articles that's coming out of your $1,000 budget okay let's say you pay for two solid backlinks we'll say each of the links are thirty-five bucks each okay now you're at $92 two directories you can do manually Google my business optimization you could do manually so out of that one thousand dollars okay out of that one thousand dollars you are paying sorry guys I can't count out of that one thousand dollars we're paying 98 dollars and you're profiting nine hundred two dollars and the best part is everything I just showed you was outsourced so every little piece I just showed you everything the backlinks right the articles it was all outsourced and that's exactly what you can do with your agency and one thousand dollars three pages for monthly backlinks you know you just got to make sure that you're working five hours within that and that's a good time estimate for you to delegate that work it's about five hours and you charge 251 dollars an hour and if you're not seeing the beauty of this right now because what's gonna happen is clients are gonna say can you do this as this and then you're gonna have a sufficient reason to say no because you're gonna be like well mr. customer I don't want to do that for you because it's gonna deplete from the hours that we're working I feel like we should do much more high-impact things and then continue to do your 3 pages etc it's a great way to say no to your clients because one thing that I see digital agencies doing is is they're setting up the wrong expectation great and they're setting up the expectation for the short term so they're setting up expectations for like all we're gonna get results in one month and then the client burnt they burn the client and then they're not their turn is just through the roof I've had clients that I've had for 10 months 12 months over a year and all of my clients stay like this simply because it's more of just digital marketing it's I've set the right expectation with them and they know what to expect they know what's predictable if they throw $650 in they know the SEO results they're gonna get and they understand it cost a lot of money to actually get sites ranked in Google so with that being said how can you manage this package right because now that you've got this package okay how can you manage this package to avoid hit customer service issues because you've got this package well the client may want to know a few things right and keep in mind scorpions figure now back to scorpion back to what we're talking about before they've figured out their service if you go here it'll say who we helped and this is their package they have packages for people that they help for example in here they they work with legal practice healthcare system franchise or small business and they've really figured out the packages that they can work with so they've been up they've been able to scale that so when you go back over here you'll see that our next goal is to cover customer service if we're gonna be selling a product or a package we are going to have to provide an immense amount of customer service especially if somebody is giving us $1,000 per month because that's a lot of money for most small businesses especially if you're working with you know businesses that have a little less access to capital especially working with businesses that are starting out etc well now you got to provide the customer service for a month so I'm gonna show you exactly how to do that and how to keep in contact with the client a ton because I'll tell you right now one thing that clients dislike more than bad results is bad communication if you're not in solid communication with that client take this as a lesson I have been in bad communication with clients I've burned some bridges and I will tell you this right now that the best thing that you can do for yourself is to be in communication with clients so the next thing I want to talk about is reaching out to your clients so when you're setting this expectation of communication here's what you're gonna do so instead of you know just making it random um when you contact them you're gonna create a schedule and this schedule is gonna include two monthly emails okay one phone call and one report okay so it's pretty simple so let's in suis were talking about before we were creating three articles to backlinks well every week there are every two weeks right the clients should be updated you should be emailing the client saying hey what's going on this is what we've been doing so far this in this event and really figure out a system to stay in communication with the client as much as you can that's why a lot of these companies most of their bulk of employees are account executives who are taking care of the clients who are working with the clients or ensuring that when the clients have a question they're the ones to answer because the CEO definitely doesn't have time to do something like that so send out as many customer service tensions as you can because when you sending out these customer service touches what starts to happen is the client starts to trust you more they're more engaged and it's just gonna create a much much much much better experience and the last one is reputation management this one's so important right if you deliver bad results if you do some bad SEO or you some do some bad Facebook agile you do some badness in this and this the first thing that's gonna happen is that business owner is going to tell their business owner friends and especially if you're doing local SEO we're prospectively doing Facebook advertising in a local market what you're gonna notice is that all of the business owners they all talk they all want to know what's going on they all want to know who's the latest they all want to know who's the greatest they all want to tile dat people because they've been burned before they've been missing in this perform so before you start taking on clients you know as a digital marketing agency you've really got to start thinking about which clients are you gonna accept because the bat last thing you want to do is accept a bunch of clients that you don't want to work with do some terrible results and then get penalizing Google get some bad reviews on Google get some batteries on Yelp it's a bad use on Facebook whatever it may be you want to make sure that you avoid that by all means and once you do that once you figure out these three certain these three things this is essentially what a digital marketing agency is this is essentially what it is its services customer services reputation management really staying in turn in focus with being a customer service community because all you're doing is managing clients this service part all of the work that you're taking in yeah you may have employees in-house and you may have people in-house working on it but a lot of the people that are doing the bulk of the technical work such as like adding a blog to a website or doing something like on-page optimization or doing anything along those lines it's typically outsourced the reason being is because it's much more cost effective to up to off-site that service those services because you don't have to pay for payroll you don't do all this in this but if you're gonna be an agency you're gonna need people and that's that's a fact there's no way you can have a one-person agency that's just a successful scorpion 190 million dollars a year but that all depends on your goal and that's the point of this video so I really hope that this video has showed you a little more about a digital marketing agency and this kind of a this was kind of just like off the RIP so I just kind of like got on the mic and just started talking but if you enjoyed this video leave me a comment down below and I'll see you the next one


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