The average net profit margin for marketing agencies ranges from 6% to 12%. That number says two things: competition is fierce, but so is the opportunity for profitability and growth – if you know what you’re doing.
To help you sidestep the usual traps – and tap into that growth – we asked 15 agency leaders and key team members to share the lessons they learned building successful marketing businesses from the ground up.
Here’s their practical advice for starting a marketing agency that lasts.
#1 Identify your ideal customer
Many new agencies try to be everything to everyone, offering every digital marketing service under the sun. But the fastest path to a successful marketing agency is picking a clear, viable target market and designing your marketing services for their specific pain points.
That’s the lesson John Reinesch, founder of StorIQ, learned while building his own digital marketing agency.
“We settled in on self-storage and have adjusted our service to provide maximum value for this group of businesses. That meant going from only offering SEO, to adding PPC and conversion rate optimization to our offer. Once we nailed that down, the next constraint was building a marketing growth engine to consistently generate leads. We tested a lot. YouTube videos, social media organic content, cold outreach, SEO, PPC, until we found what reliably drove the right traffic and conversions.”
For John, specializing was about attracting the right prospective clients, who valued the agency’s expertise in solving their unique challenges.
This niche approach fueled targeted content creation and stronger client relationships – everything needed for a thriving business.
“If I were starting from scratch today, I’d lock in a niche from day one. Early on, I resisted it. I believed I could do SEO or PPC for anyone and didn’t need to box myself in. But the truth is, it’s almost impossible to scale or build a team efficiently without a clear niche.”
John’s advice for agencies: the narrower your focus, the stronger your brand – and the easier it is to build marketing strategies that cut through the noise and actually attract clients who stick around.
#2 Share your journey to attract the right clients
Most new agencies focus on campaigns and tactics, but Justin Herring, founder of YEAH! Local, found that the best way to generate more leads was about building visibility and trust by showing his work in the open.
Justin’s entry into consulting started with helping a friend’s local business improve website traffic.
“I stumbled into SEO consulting after helping a friend's local business improve their Google rankings, which led to referrals and eventually founding YEAH! Local.”
Word of mouth, rather than paid ads or cold outreach, became the foundation for growth.
Looking back, Justin says,
“I wish I had invested more in building systems and processes from day one—now we retain clients by having clear SOPs for everything from onboarding to reporting, but those early days were much more chaotic than necessary.”
According to Justin, you shouldn't rely on offering the same service as other agencies.
“Build a presence in your industry. Share your results, your failures, and your learning process in real time – whether that’s through social media management, blog posts, or speaking at industry events. It attracts valuable connections and makes your agency more approachable to potential clients.”
#3 Start with value, not vanity
In the marketing industry, it’s tempting for new agencies to focus on a slick website or trendy branding, hoping to impress potential clients.
Ramzy Humsi, founder of Vortex Ranker, quickly learned that the fastest way to attract ideal clients is actually to focus on real results.
“My path into consulting started as a mix of curiosity and necessity rather than a strict plan. After years of experimenting with various marketing channels, I found Google Maps SEO to be an area where I could deliver real, measurable results for local businesses. That discovery led me to focus entirely on consulting in this niche.
Finding and retaining clients today comes down to providing value first. Demonstrating success with local businesses and offering free consultations has been effective in attracting the right clients. Maintaining open communication and regularly showing progress keeps them engaged long term.
If I were starting now, I would focus more on creating helpful content and sharing insights publicly – this attracts clients who already trust your expertise. It also makes the sales process smoother by the time they reach out.”
Don’t get caught up in the vanity metrics. Make sure your marketing efforts – whether it’s paid advertising, content marketing, or social media campaigns – solve your target audience’s pain points and prove your worth through clear, client-focused outcomes.
#4 Let relationships fuel your first wins
You can master every project management tool and pay for all the latest digital marketing certifications, but Sinoun Chea, founder of ShiftWeb, says that no essential tool replaces actual trust.
The secret to finding – and keeping – your first clients is going deeper than market trends and showing clients you understand what they value most.
“It's all about building genuine relationships. I focus on understanding their core values and aligning them with my services. This alignment creates trust and naturally leads to long-term partnerships.
If I were starting now, I’d leverage storytelling to showcase successes and case studies. Authentic narratives can deeply resonate and attract clients who feel an emotional connection to the brand’s mission.”
Sinoun’s agency didn’t grow by pushing the same paid ads or email marketing campaigns as everyone else. Instead, she built a professional brand identity on real conversations, listening carefully to client feedback, and then highlighting those stories in her marketing efforts.
For creative agencies starting out, it’s this blend of authenticity and strategic planning that turns small wins into valuable connections and new leads into loyal partners.
#5 Set clear expectations – then deliver what matters
Plenty of agencies talk a big game about growth, but for Wayne Lowry, CEO of Scale, the real advantage comes from making promises you can actually keep – and building a track record around them.
Wayne started out helping businesses that were invisible on search, quickly discovering that
“Clients don’t just buy SEO services, they buy confidence in their digital future.”
At Scale by SEO, Wayne explains,
“We combine the power of expert writers with the precision of AI tools to deliver high-impact, search-optimized writing that connects with real people.”
But that’s not what gets clients to stay.
For Wayne, client retention comes down to something simple:
“The key to retention is setting realistic expectations upfront, then consistently over-delivering on both strategy and communication, because trust is everything in this business.”
#6 Use referrals to grow your agency
Many new agencies chase every possible lead. Aaron McGurk, Managing Director of Wally, discovered, that the best clients come not from cold outreach or paid advertising, but from a well-earned referral program.
Aaron’s journey started by helping friends’ businesses improve their search rankings.
“My journey into SEO consulting began after repeatedly helping friends' businesses improve their search rankings, which naturally evolved into a full-service agency.
The biggest surprise was realizing that you need solid systems for client communication and project management to scale effectively.”
How does Wally attract new clients now?
“We now get most clients through referrals and retain them with monthly performance reports and strategy sessions, but if I were starting fresh, I'd focus on building a strong personal brand in one specific industry.”
#7 Systematize early (or risk drowning in the details)
It’s easy for agency founders to get caught up in chasing client work. Ryan Young, owner of Revive Marketing Services, learned that scaling a digital marketing business requires more than just hustle.
He started by helping a local business owner with Facebook ads – a project that quickly led to more referrals. But he soon realized that
“The importance of setting clear boundaries and scope definitions could make or break an agency’s future. I learned the hard way when clients kept requesting ‘small favors’ that ate into my profitability.”
To avoid chaos, Ryan invested in systems and collaboration tools from the outset.
“Today, I find my best clients through strategic partnerships with web developers and business coaches, while retaining them by delivering monthly strategy sessions and clear ROI reports."
For Ryan, careful planning turned a handful of one-off projects into a sustainable business.
#8 Go beyond client expectations
Many digital marketing agencies start out by providing a technical service, but the real opportunity is in turning that expertise into strategic partnerships.
Or Moshe, founder and developer at Tevello, found this to be the secret behind his own company’s growth.
“With my tech background, I accidentally stumbled into consulting while helping Shopify merchants optimize their stores—they kept asking for more advice beyond just technical solutions. I wish I'd known earlier that specializing in a specific niche (ecommerce SaaS) would be more valuable than trying to be a jack-of-all-trades consultant. Today, I find my best clients through the Shopify ecosystem and retain them by solving their specific pain points with measurable results.”
His go-to strategy now? Position your agency not just as a provider of digital marketing services, but as a hands-on collaborator. “If starting now, I'd focus even more on building authority through educational content specifically for ecommerce merchants.”
#9 Build your processes and network before you need them
Adam Burrage, Managing Director at Trident, found that true growth starts with internal discipline and genuine industry connections.
“The biggest misconception about starting an agency in 2025: That you need to be everything to everyone. New agencies often try to offer every service under the sun instead of focusing on what they do best. Specialisation wins over generalisation every time."
You also shouldn't wait until you need help to start building your network:
“Build relationships before you need them. Network genuinely within your industry and with complementary businesses. The best opportunities come from people who already know and trust your work. Find businesses that are bigger than yours and connect with them, and find out what they are doing to get to that size.”
#10 Build your agency around people, not just services
A successful agency is more than its service offerings or flashy search engine optimization results. Ben Foster, CEO of The SEO Works, credits his agency’s long-term growth to a focus on team culture and clarity, right from the very first hires.
Ben says,
“One thing I wish I had known when I started is that the first 5 hires you make will be the most important in terms of setting the culture of the business. Don't make shortcuts or compromises with these people – make sure you are fully aligned on values and outlook. There will be lots of ups and downs to ride, so these people need to be resilient.”
For Ben, building an effective SEO agency is about setting a direction and getting the right people on board to drive lead generation and innovation as the agency scales.
“Define your ideal client and their core problem, then craft your offer to solve that problem. Being vague won't help anyone. Also, set up and be present on LinkedIn. Modern social media marketing relies more on people than brands. Your presence on these channels is key.”
For agencies dealing with rising startup costs, expensive market research, and the hunt for their next office space, Ben’s story is a reminder: invest in your team and culture early, and the rest will follow.
#11 Make sure you're truly "client-first"
For Kinga Edwards, CEO of BB Media Group, everything comes down to one core thing : putting clients at the heart of every decision.
“Client-first approach is often the only thing you need, and don’t tell me otherwise. You have to be client-obsessed – not just to win a client, but to keep them and make them truly attached to your agency. If your clients are obsessed with you, you’re as close as you can be to becoming irreplaceable.”
But there’s more at stake than loyalty. Kinga explains,
“When they trust you that much, they give you freedom – freedom to experiment, to bring fresh ideas, and to be truly creative. That kind of trust changes everything and turns clients into partners to let you do your best work.”
For her, it's more than delivering what’s expected – it’s about building a relationship where clients root for your success as much as you root for theirs.
That’s the difference between being just another agency and being the one clients would never dream of leaving.
#12 Filter for fit – even when you’re just starting out
It’s tempting to say yes to every prospective client when you’re building your marketing agency.
But as Matt Bowman, founder of Thrive Local, learned the hard way, not every client is a good fit for your new company – or your sanity.
Matt didn’t plan on running an agency; he just kept getting results, and demand followed.
“I helped a local business with their site, fixed a few things, got them more traffic – and they told someone else. Word got around…then, I’m running an agency. It basically happened because I was actually getting results for people.”
He admits,
“If I could go back, I’d be more careful about who we agree to take on as clients. In the beginning, we accepted any client willing to pay. Some of them were draining. They had slow communication, unrealistic expectations, and little respect for our process. This consumes your team’s time and energy. Now we filter leads more carefully. If a lead doesn’t fit our way of working, we turn it down.”
For new agency founders, the takeaway is simple: set your standards early. The right clients will value your approach and help you grow in the right direction.
#13 Your price isn’t just a number
When Nick Mikhalenkov from NinePeaks left his corporate job for what he thought would be a short stint in freelancing, referrals and results quickly snowballed into a full-blown agency. But his biggest early struggle? Pricing.
“Wish I’d known pricing isn’t just numbers, it’s positioning. Undercharging nearly burned me out. Clients value confidence as much as competence.”
For agency founders, Nick's experience serves as a warning: price isn’t just about covering your costs; it’s about setting expectations and boundaries. Undercharge, and you risk being treated like a commodity, inviting the kind of stress that kills momentum.
Nick found that value is about how you present what you do. Great clients are attracted by confidence, but retained by results.
#14 Start with results, scale with discipline
When launching a marketing agency, it’s easy to believe growth is just a matter of landing more clients.
Kevin Heimlich, CEO of The Ad Firm, shows that the foundation for a successful agency is laid in the very first wins you deliver.
“Those initial accomplishments taught me the potency of the digital marketing unit,”
Kevin says, reflecting on his transition from freelancer to agency leader.
Early on, he invested a significant amount of personal time in building relationships and wasn’t afraid to make strategic moves, even relocating his office as his team and client base grew.
But for Kevin, a key lesson came with the inevitable overwhelm of trying to do it all. That was the turning point:
“It was that important moment that prompted me to drastically reorganize our business and model, as well as improve them.”
Instead of chasing every opportunity, Kevin began to get selective, focusing only on clients where he could build long-term, high-quality relationships.
“Our devotion to a ‘we win when you win’ attitude, and our continuous learning, coupled with continuous investment in our people, is what actually helped propel us to exponential growth.”
Today, his time goes to strategic leadership and maintaining standards of excellence for every client.
#15 Deliver traction, not just talk
Dave Miller, co-founder at purple path, has a different take on what clients actually want from a new agency.
“Instead of selling retainers and waiting months for traction, we go straight to the pain point: what does the client need to move the needle, now?”
For Dave, success as a co-founder isn’t about building out the biggest menu of services, but about immediacy and focus.
“Most SaaS companies aren’t after another agency report – they need hands-on marketing execution that shows up quickly in their pipeline. That’s why we listen hard, diagnose the core problems, and deploy people who can make change visible in weeks, not quarters.”
This approach means refusing to stretch too thin. The purple path team built their agency on the discipline of tackling challenges where their skills made the fastest impact.
“We’re not here to collect monthly checks. We’re here to create real momentum… and if we can’t do that, we’re not the right fit.”
Don’t assume your value lies in having the widest service menu or the longest pitch deck. Zero in on what you can solve well and solve fast, and become known for getting results when others just talk.
Agency Founder’s Checklist: 15 things to do before (and after) launch
- Choose a niche and commit. Specialize early – focus your marketing services on a specific industry or audience pain point.
- Document your journey. Share real results, failures, and learnings through content to build credibility.
- Prioritize results over appearances. Let client outcomes – not fancy branding – do your selling.
- Build genuine relationships. Invest time in understanding clients’ goals for long-term partnerships.
- Set clear rules. Be upfront about deliverables and expectations from the start.
- Create a referral system. Encourage satisfied clients to spread the word; referrals are your most powerful (and cost-effective) marketing engine.
- Systematize your processes. Develop materials like SOPs, onboarding checklists, and project management workflows before chaos hits.
- Go beyond technical skills: Position your agency as a strategic partner, not just a service provider.
- Network before you need help: Nurture industry connections and alliances well ahead of crunch time.
- Invest in your first hires. Choose people who share your values and help build agency culture.
- Adopt a client-first mentality. Obsess over client satisfaction: trust, freedom, and creativity all flow from this.
- Screen for client fit. Learn to reject projects and clients who don’t align with your values, model, or process.
- Value your work (and price accordingly). Set fees that reflect your confidence, expertise, and the ROI you deliver.
- Start with traction, scale with discipline. Focus on delivering a handful of great results before expanding your team or service menu.
- Move fast on what matters. Identify the real pain point for each client, and act decisively to make visible progress.
Print it, pin it, check them off – then add your own lessons as you build. That’s how agencies with staying power actually get built.
It's your turn
Building a marketing agency in 2025 means offering more than just what agencies offer by default.
The real winners find a few different ways to drive value through influencer marketing, smart crisis management, or hands-on use of Google Analytics, just to name a few examples.
Focus on discipline, creativity, and follow-through, and you’ll set your agency apart. Good luck!
