How to Start a Marketing Agency in 2025: Easy-to-Follow Guide

New year, new goals, new resolutions! If you’ve already written down your list of resolutions to start a new business in 2025 and you’re considering making your way into the marketing industry, this article is for you!

At Reply.io, we’ve prepared an easy guide for entrepreneurs and marketers to discover how to start a digital marketing agency (or any other type). We cover every aspect, from creating a business plan to types of agencies, target audience selection, types of services, registration, and the tools you need.

Let’s not wait any longer and start putting those resolutions into action!

What’s a marketing business?

First, let’s understand what “marketing” is. It refers to the set of activities, processes, and strategies that aim to create, communicate, and deliver offers or messages of value to the public and consumers about a product, brand, or service. 

So, when we talk about a marketing business, we are talking about a company that manages all the marketing activities of a brand or company using strategies, techniques, and practices that allow it to add value to brands or products. 

What’s its objective? 

• Attract new prospects
• To make known or consolidate the brand
• Boost sales. 

Marketing agencies connect brands and companies with their public. How do they do it?

Through the planning, developing, and implementing advertising campaigns, market segmentation, a company’s public relations, marketing in social media and other communication channels, branding, and web design.

A marketing agency is not only limited to promoting a product or brand but also participates in product management, selection of sales channels, and pricing. 

Now that we know what it is let’s see how profitable this type of business is!

Why should you start a marketing business?

Starting a marketing business can be a strategic and highly beneficial decision. Why? According to a HubSpot report, “more than 60% of companies consider their digital marketing key to business success.”

Nowadays, consumers have migrated to online platforms to purchase products and services, which has increased the demand for marketing services for brands and businesses. These services open space in their industry through content strategies, social media advertising, and digital marketing.  

Did you know that scalability is one of the main advantages of starting a marketing business? You can start with a small, home-based agency and expand your services as you acquire more clients. Also, the cost of entry is relatively low compared to other industries, as most of the necessary tools are available online.

Let’s talk business!

Profitability is key in any business. The return on investment (ROI) in digital marketing can be significant. According to Statista, “for every dollar spent on email marketing, companies can expect a return of $42.” 

In addition, the global digital marketing market is expected to reach $786 billion by 2026, with a projected annual growth of 17.6%.

The formula is given, we have increasingly connected consumers + companies that want to add value to their products. What is needed? A well-structured marketing business. 

What are the types of marketing agencies?

Before entering this industry, you should know that not all marketing agencies are the same. There are more than a dozen types of agencies, and this varies according to the kind of services they offer:

• Full-service marketing agencies are a one-stop solution encompassing all marketing aspects, from strategy to execution, allowing brands to take a cohesive approach to their campaigns. 
• Digital marketing agencies are ideal for increasing web traffic and improving conversion through effective digital techniques.
• Creative agencies focus on design and visual conceptualization, providing innovative ideas to help a brand stand out. 
• SEO agencies specialize in optimizing a company’s online presence in search engines, working on both on-page and off-page SEO.
• Social media marketing agencies focus on creating and maintaining an active presence on social platforms, strengthening the connection with consumers. 
• PPC and advertising agencies generate immediate traffic through paid ads, maximizing the visibility of products and services.
• Content marketing agencies are experts in creating quality content that attracts and retains the audience.
• Public relations agencies work to improve public perception and strengthen brand recognition. 
• Email marketing agencies optimize campaigns to maximize conversion rates.
• Branding agencies are in charge of defining and establishing the identity and voice of a brand. 
• Market research agencies provide data and analysis to support strategic decisions.

Each type of agency plays a crucial role in the marketing ecosystem, and choosing the right one depends on each company’s specific needs.

How to start a marketing business?

Now, it’s time to get down to business. We created a friendly guide to help entrepreneurs and new marketers understand the process of forming an agency and the tools and resources they need to plan correctly and take the first step into the industry. 

Let’s get started!

How do you research the market and plan your business?

It’s important to understand what exactly you’re doing. 

Here are 6 key steps for you to conduct your market research:

1. Define your objectives: establish what you want to achieve with your research. This may include understanding your target audience, analyzing the competition, or identifying market trends.
2. Do secondary research: if you haven’t done the first one, you might ask about why do secondary research. We mean gathering existing information from third-party research, such as industry statistics, market reports, and competitor analysis. Sources such as academic studies, government reports, and industry data can all help you understand the marketing industry. 
3. Primary research: get to work! conduct surveys, interviews, or focus groups to get direct feedback from potential customers. This will allow you to understand their needs and preferences.
4. Do a competitor analysis: determine your direct and indirect competitors. Evaluate their strengths, weaknesses, prices, and marketing strategies.
5. Segment your market: identify different groups in your target audience and define their demographic, age, occupation, interests, and behavioral characteristics.
6. Business plan development: integrate the findings into a plan that includes vision, mission, market analysis, marketing strategies, financial projections, and an operational plan.

What’s the right niche for your marketing agency?

This may be one of the questions you have once you have started researching the market.

The truth is that choosing the right niche for your marketing agency requires careful analysis. How do you do it? First, identify your strengths and specializations. Remember that in your market plan, you evaluated your competition. Now, it’s time to analyze yourself. Do you have experience in social media, SEO, or content marketing?

Research the sectors that could benefit from your services. Growing niches like technology, healthcare, sustainability, and e-commerce may offer attractive opportunities. Analyze the competition in these niches. Look for a market where demand outstrips supply, allowing you to stand out.

Note: Consider your interests and passions. Working in a niche you are passionate about will motivate you and allow you to better connect with your customers and move forward to overcome challenges. 

Also, evaluate the profile of your ideal client: Are they startups, SMEs, or large corporations? This will be very useful for defining your approach, tone, and marketing strategies. 

Extra tip: test the market through pilot campaigns or targeted content to validate your choice before committing fully.

What’s the best business structure, and how do you register your agency?

When selecting the business structure for your marketing agency, you should consider several factors, from the size, vision, and legal liability you wish to assume. The most common options include:

Self-employment/freelancer/sole oroprietorship: Ideal for starting on your own, with less upfront costs and easy to manage. However, your legal liability is unlimited, i.e., you are responsible for the debts and obligations of your business. Your assets and liabilities are not separate from the capital of the company. 

Partnerships:

• Limited liability company (LLC): This protects your assets (home, cars, accounts, etc.) against business debts and is suitable for small teams. In addition, profits and losses can be transferred to your personal income without paying corporate taxes. However, its members are self-employed in the LLC and must pay Medicare and Social Security taxes. 
• Corporations: A corporation is a legal entity separate from its owners. Corporations can generate profits, pay taxes, and be held legally liable. We recommend it, if you plan to scale or attract investors.

Steps to register your agency:

Who’s your target market, and what services will you offer?

If you have already selected your target audience, here are some services you can offer them. 

• Digital marketing includes SEO, SEM, social media, and email marketing strategies. It is aimed at companies looking to increase their visibility and reach online audiences.
• Content marketing: Focuses on creating and distributing valuable content to attract and retain an audience. It is aimed at brands that want to educate or entertain their audience while building trust and authority.
• Relationship marketing: Seeks to build long-term relationships with customers. It is geared towards companies that value customer loyalty and personalized customer service.
• Traditional advertising includes media such as television, radio, and press. It is aimed at a mass audience and is used by brands that want to reach a large audience quickly.
• Market research: Provides analysis and data on the market and consumers. It is aimed at companies that must better understand their target market before launching products.

What are the tools you need for your marketing agency?

The tools and resources to use will depend on your agency type, audience, and the services you offer, but the most common ones are as follows.

• Project management software: To plan and organize tasks like Trello or Asana.
• Search engine analytics and metrics tools: Google Analytics and SEMrush help evaluate digital marketing performance.
• Social media platforms: Hootsuite or Buffer facilitate the management of publications and engagement analysis.
• Graphic design software: Canva and Adobe Creative Suite help create attractive visual content.
• Customer Relationship Management (CRM): HubSpot or Salesforce helps manage customer relationships.
• Email marketing tools, such as Reply.io, are necessary for creating and agilely managing effective email marketing campaigns (inbound, cold email, warm email, follow-up, etc.).

How do you set your pricing and create packages?

Setting prices and creating packages for your marketing agency is not as difficult as it sounds; it can even be an exciting part of your venture. First, you should research how much other agencies charge for similar services to get an idea of the price range and what they are willing to pay. 

After that, you must consider the investment in tools, software, and salaries if you decide to have employees, and make sure that the sum of all your costs leaves you a margin to earn. Analyze well the margins you need to guarantee your profit, avoiding that you don’t stay in the red.

A good strategy you can implement is to create different service packages. Consider offering a basic package for customers looking for the essentials, an intermediate package with additional features for customers with higher requirements, and a premium package offering all your available resources. This way, customers can choose the option that best suits their budget and needs. 

You must be clear about the value you offer to help your customers achieve accurate results. Offering something unique can justify higher prices. Focus on clearly communicating how your services can help you solve problems and achieve your goals. The key is to show complete transparency to build trust.

As your agency grows and becomes better known, you periodically review your pricing to adapt to market changes or new client requests.  

How do you develop a marketing strategy? 

Developing an effective marketing strategy is key to ensuring your agency’s and your client’s success. First, you must define your objective by asking yourself what you want to achieve, such as attracting new customers, increasing brand awareness, or even increasing sales of a specific product. 

Next, you need to know your audience by researching your ideal customers: What do they like? Where do they spend their time online? Based on that, create buyer profiles that specify their tastes and needs. The better you understand your target audience, the easier it will be to attract them and keep them connected to you.

Another essential step is to analyze your competition to understand their strengths and weaknesses. This will give you the necessary information to detect opportunities to stand out. To have a clear view of the big picture, it is advisable to use a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).

Then, you must define your message to be attractive and relevant to your audience. Think of something that captures their attention, feels authentic, and reflects your brand’s personality. Regarding where to publish this content, think about social media, email, SEO, or digital advertising that best aligns with your audience. 

Then, organize a content calendar that establishes what you will publish, when, and on what platform, including different formats such as blogs, videos, or social media posts. Keeping a consistent schedule is crucial to keeping your target audience engaged and helps increase your chances of being found on Google.

Finally, you must establish metrics and KPIs (Key Performance Indicators) to check if your strategy pays off. You can measure web traffic figures, conversion rate, and social media engagement regularly to adjust as necessary and improve for better results.

How do you automate sales for scalability?

To automate your sales when thinking of how to start a digital marketing business, you should first implement a CRM (Customer Relationship Management). For this, you can use tools like HubSpot or Salesforce, which allow you to manage all your contacts and track your interactions with them. This way, you can clearly see who to contact and when.

Then, implement platforms like Mailchimp or ActiveCampaign to create automated email campaigns sent to your leads at different sales funnel stages. For example, when people subscribe to your newsletter, you can automatically send them emails promoting your services to keep them interested.

You should also follow up on leads through tools that allow you to set up automatic reminders so you don’t have to remember who you wrote to and when. This way, you won’t miss the opportunity to follow up and maintain a fluid conversation with your audience.

Remember to use chatbots on your website to help you answer common questions from your visitors and collect important information about them. Based on this, you can classify your leads and direct them to your sales team if they are ready to move to the next purchase step.

Also, clearly define your sales funnel to automate certain tasks. So when a customer reaches a specific stage, trigger automatic emails or reminders. Finally, evaluate metrics regularly by implementing analytics and tracking tools to analyze how your automated sales are going, and if something is not working, adjust your strategy. 

In summary, automating your sales saves you time and helps you position your business in the marketplace. This allows you to focus on building strong relationships and growing. Only by implementing these practical tools can you achieve this.

How do you perfect your services?

Perfecting your services is essential to satisfy your customers and help your business grow. 

Here are some tips that can make this process easier for you:

• Listen to your customers: To know exactly what is working without asking them directly, you can do quick surveys or have informal chats to get their opinions. This way, you can identify what they don’t like and consider it to improve your services and attract more interest in your products.  
• Analyze your work regularly: Review past projects and ask the participants about their experience and what they want to improve. With this performance data, you can identify patterns and see which campaigns are more successful or which services are more requested so that you can focus on what aspects to improve.
• Keep up to date with market trends: The marketing industry is constantly changing, so it is crucial to stay abreast of developments. To do so, we recommend reading relevant blogs, attending webinars, and participating in conferences, including virtual ones. 
• Create a learning environment in your team: encourage all employees to share ideas for improvement and organize training workshops to build a new perspective that makes a difference.
• Dare to experiment: try new strategies or services and analyze how your audience reacts. You can adjust a plan to improve your services if it doesn’t work.

How do you hire your first employees?

Hiring your first employees is a big step for your business, and the process can be exciting, although it can be a bit overwhelming. Here’s how to do it effectively.

Before you make a job offer, it is crucial that you clearly define what you need. You can do this by listing the tasks you want to delegate. Once you have determined your requirements, write a simple but attractive job offer that specifies what you expect and what you offer. 

Then, post the job offer on platforms like LinkedIn, Indeed, or even your own social networks, and if you know people in your network who might fit your profile, promote it. When you start receiving applications, review them in detail, and after filtering them, conduct interviews to learn more about the candidates’ capabilities.

Finally, make sure you do a good onboarding. When you select a prospect, take the time to welcome them and show them how everything works. Implementing this action makes it easier for prospective employees to feel like they are part of the team from the start, which makes a big difference in their motivation and performance.

How profitable can a marketing business be?

Profitability can vary quite a bit in marketing businesses, but the options are interesting. The good news is that you can make considerable profits if you are strategic and work hard enough.

First, you should evaluate the market because there is a great demand for marketing services, especially with the current focus on the digital world. Companies are always looking for ways to stand out, and if you offer something that stands out above them, you will be more successful.

The profit margins on these types of businesses are good. Depending on your services, you can set prices ranging from hundreds to thousands of dollars. For example, if you run digital advertising campaigns, you increase the chances that customers will pay more because they see that the investment can generate significant returns.

In addition, if you decide to offer service packages, you can maximize your revenue more efficiently. This fixed income can be considerable by recurring customers paying monthly for various services. Another aspect to consider is that you can increase your rates as you gain more experience and reputation. 

Digital marketing can be very profitable if you implement the strategies correctly, provide a good service, and maintain a proactive approach.

What challenges come with running a marketing business?

Running your own marketing business can be exciting, but you should remember that you have to face several challenges. Here are some of the obstacles you may encounter along the way. 

• Attracting customers: There is a lot of competition in the market nowadays, so it is increasingly difficult to attract customers. Therefore, it is necessary to look for creative ways to stand out and demonstrate your value. 
• Keep up to date with trends: The marketing world is changing due to the constant implementation of new platforms and technologies. Always learning and adapting is crucial, as what worked a year ago may not be relevant now. 
• Keeping up with your workload: As your business grows, the number of projects and clients increases, which can be overwhelming. That’s why you must meet deadlines, maintain quality of service, and don’t let stress consume you. 
• Time and financial management: When you are your boss, you must be responsible for the creative side and all the administrative work. Although tasks such as invoicing, accounting, and managing your motivation often go unnoticed, they are critical to the success of your business. 
• Meeting customer expectations: Customers’ wants and needs sometimes differ. That’s why you need to manage that line to ensure they are happy with the results, which is often tricky, especially if you have to meet tight deadlines or unforeseen changes in the project.

Prepare for Success in 2025: Create your Marketing Agency Now!

And here is how to start a digital marketing agency with no experience. It definitely can be exciting as the industry grows, presenting a wide range of opportunities for you to take advantage of. By starting a marketing business, you embark on a profitable career and become a strategic ally for other businesses interested in growing.

Follow our guide to harnessing the potential for profitability in this sector by maintaining a clear vision, sound strategies, and a willingness to adapt, and you will grow exponentially in the exciting marketing landscape.