If the entrepreneurial drive has been nudging you to start your social media agency, you’re probably ready to take the plunge.
Going by the stats, the timing seems ideal too! Social media was among the top three digital platforms for media spending in the US in 2023. Social media ad spending touched 72.3 billion USD in 2023, with investments to edge past 80 billion dollars by 2026.
So, if you’re in it for the long haul, our beginner’s guide on how to start a social media marketing agency is an excellent place to start. Read through our expert insights on what makes a social media marketing agency profitable and helpful hints to get there.
TL;DR Summary – How to Start an SMMA
Here’s a quick rundown of the top points discussed in this blog:
- The zooming popularity of social media has increased the prominence of social media marketing.
- You don’t need big-budget funding to start. A sound business plan and a good value proposition will do.
- In the early stages, identify your niche and play to your strengths.
- Expand the scope of your services gradually.
- Network for new clients – leverage social media, industry events, and personal contacts.
- Put together a competent and compatible team with diverse skills.
- Costs can be managed by hiring freelancers for specific roles.
- Be aware of HR rules and regulations as an employer.
- Use relevant software for marketing and finance management.
Understanding Your Target Audience and Niche
In the US, over 70 percent of users reported that social media promotions generated positive impressions. You can create compelling social media marketing campaigns if you play to your strengths.
Here are some quick pointers:
Identify your target audiences
First off, determine the client profile you want to work with. Develop and implement effective marketing strategies incorporating online and offline channels to attract and connect with your potential target audiences.
Focusing on a core audience will help you provide excellent services to clients requiring your expertise and skill sets. As your business expands, you can hire experts to cater to a broader audience.
Choose your niche
Taking on too much too soon could eventually cause more harm than good. Defining your niche will help you hone your expertise and gain recognition as a domain specialist. Best practices here include:
- Focus on specific industries and narrow down further by specializing in specific platforms like Facebook and Instagram.
- Studying the dynamics of each platform thoroughly to offer deeper customization.
- Enhancing customers’ experiences to put yourself on the growth path.
Research market trends and the competition
It always pays to explore opportunities to differentiate.
That being said, proper research can always be a game changer. It can help you leverage key insights to create a business strategy that bridges existing gaps and caters to your client’s unique needs.
Determine Your Services and Pricing Structure
With the groundwork laid, you can make informed decisions about your range of social media solutions.
The following approach will support business growth and profitability:
Plan your agency’s range of services
When planning how to start your own social media marketing agency, you’ll see that the competition markets themselves differently.
You can provide various services, from ad and content creation to social media strategy, tracking, reporting, and more. Nonetheless, in the initial stages, it’s advisable to concentrate on one or two specialist services.
Expand your service offerings gradually as you build your reputation in the industry.
Provide attractive service packages and pricing structures
Design simple, easily understood pricing structures for your marketing services depending on your Unique Selling Proposition (USP) and goals. Attractive pricing options, including custom packages, will enable you to match the budgets and requirements of different businesses. Here’s how you can do this:
- Work out the details of how you will charge for your services.
- The most common options include project fees, monthly retainers, and the hourly model.
- Some number crunching and competitive analysis with your key competitors will facilitate well-balanced pricing structures.
Consider factors influencing your pricing strategy
Running your own marketing agency will naturally involve costs such as:
- Administrative overheads
- Rentals
- Utilities
- Marketing
- Licensing
- Staffing
- And other related costs.
It would help to consider these factors when developing your pricing strategy.
Likewise, calculate your approximate costs of providing social media marketing services. For example, this can include the cost of managing Facebook platforms and ad content, charges for a blog, social media consulting, and other such services.
Additionally, offer competitive pricing. Evaluate the expertise and measurable outcomes you will deliver to your clients to justify the pricing.
Nurture Your Brand and USP
Building brand consistency and clearly defining your USP will help you gain trust and attract SMMA clients.
Here are our top picks for creating a solid brand and developing your USP.
Create a compelling brand story and mission statement
Showcasing your unique expertise and achievements across different platforms and channels will help build credibility and attract prospects.
Similarly, a well-crafted mission statement will provide purpose and direction for your team. And for your clients, a clear, concise, and motivating mission statement will go a long way in communicating how you add value to brands.
Ensure coherent differentiation
Stand out from the clutter by identifying your unique capabilities and core competencies, such as your creativity or understanding of a particular market. Having identified these differentiators, incorporate them into your marketing strategy.
Build a solid social media presence that makes it easier for your clients to connect with you. Begin with your updated LinkedIn profile, which you can leverage across your other profiles.
Have a viable value proposition
A value proposition is a concise statement informing potential clients how they’ll benefit by choosing you over the competition.
Like many agencies, you could craft a statement emphasizing a comprehensive suite of social media marketing services at a very affordable price. Prominently highlight it on your website homepage.
Notably, a value proposition differs from a mission statement. The latter offers an extended perspective, including the agency’s values, goals, and vision.
Find and Pitch Clients
Be prepared to proactively build your client base in the competitive social media marketing space.
The following insights can offer valuable support to your client-facing teams:
Attract clients that need your skill sets
Lead by example – build an engaging presence on social media platforms!
Other proven methods also include:
- Referrals from existing customers and your social circle
- Hosting brand awareness webinars
- Networking at events and trade meets.
- Offering discounted or pro-bono services for small organizations to showcase your brand and earn experience.
Leverage effective pitch decks
Pitch decks are visual communication tools that help to present your agency’s credentials effectively.
Create compelling pitch decks by tailoring your content to your target audience’s needs. Include persuasive details about your:
- Services
- Certifications
- Team expertise
- Value proposition
- Client testimonials
- And other impactful information.
Network with potential clients and influencers
Agencies have realized the need to build associations with creators and influencers who now work with leading brands.
For example, engaging with influencers on social media platforms by commenting, liking, and sharing content will help position you as an expert in your field.
Networking events and conferences are other terrific options for meeting potential clients and influencers and building valuable connections.
Onboard Clients and Set Clear Expectations
Congratulations on your client win! It’s time to bring them on board, understand expectations, and kickstart projects.
Here are three simple steps to nail the onboarding process:
1. Implement onboarding best practices
Initiate an onboarding call at a convenient time with the team you’ll be in daily contact with.
You could also circulate a “Know Your Customer (KYC)” form before the call – source important information, including contact details, links to their websites, and social media accounts. Doing so will enable you to clear doubts, save time, and work efficiently.
Keep the session interactive, enabling your customer to ask questions and voice their ideas.
2. Establish clear communication channels and expectations
Let your customer know the call is an opportunity to streamline team communications.
Proactively discuss accountabilities and contact persons for tasks, including decision-making, operations, and other roles. Also, set expectations about agency timelines, availability, and key contact persons.
3. Protect both parties’ interests
The onboarding call is the perfect time to get all relevant documents, NDAs, contracts, and agreements signed and returned. Protecting both your interests is the building block to a happier and mutually beneficial agency-client association.
Manage Social Media Platforms and Content Creation
Whether you’re single-handedly running the agency or have a team in place, having well-organized systems and processes can help you navigate your social media business. Dive in to know more.
Implement social media optimization
Social media optimization (SMO) helps manage and enhance your client’s online presence and content.
Leverage internet-based tools like Loomly, Hootsuite, and Sprout Social to optimize your content organization. You can also easily schedule content across various platforms and reply to engagements or comments on your posts.
Other helpful SMO tactics include:
- Adding CTAs and suitable hashtags where required
- Tagging the accounts featured in your posts
- Optimizing your links with UTM
Leverage effective content creation strategies
Implement a strategic approach to content development. For instance, asking engaging questions and customizing content to match your audience profiles can boost engagements and conversions.
Similarly, run tests and checks to identify the optimal amount of content and the correct interval to post your content without overwhelming your audiences.
Furthermore, using the right size of images and incorporating alt text descriptions, subtitles, and descriptive transcripts will help you get the most out of your campaign.
Build a strong online community for clients
An engaged social media community is your best advocate. Here are some key points to consider:
- Transparency and two-way communication help build loyal communities.
- Engage with followers’ DMs and reply to comments as often as possible.
- Use your platform to acknowledge loyal brand followers who can be a potent community connection.
- Free giveaways and attractive incentives go the extra mile in showing your appreciation to your followers.
Define, Measure, and Analyze Success
For your business to grow, you’ll need to understand which strategies are working and which need a relook.
Here are some ways to track outcomes for your social media marketing company:
Use analytics tools
Social media analytics software helps businesses easily get a fix on their social marketing campaign. The tools help spot trends, understand conversations, customer sentiment, and more. From product development and customer experience to operational efficiencies, analytics promote informed decisions.
Capabilities of analytics tools that can impact your business strategy include:
- Language processing
- ML technologies
- Segmentation
- Behavioral analysis
- Visualization
Track key performance indicators and metrics
Social media key performance indicators (KPIs) are metrics related to your presence on an individual or across all social platforms. KPIs that are specific, measurable, timely, and realistic can help you determine the effectiveness of your strategies.
Significant metrics include profile reach and impressions, engagement rate, followers, video plays, audience growth rate, clicks, and shares. You can rely on these for insights to make informed decisions.
Quantifiable actions and analytics show the ROI you’ve delivered and boost client retention.
Highlight your effectiveness through performance reports
After compiling and analyzing data, present it in a report on your website. Use social media management tools to show how you add value to social media marketing and help brands achieve their goals.
Feature written testimonials from your clients in your performance report, as they carry substantial weight. Providing insightful summaries of exemplary work done for older clients is a critical best practice.
Most importantly, ensure your agency’s social media accounts regularly update and reflect your values and expertise.
Build a Team and Outsource Repeatable Tasks
A team committed to excellence can make your agency a name to reckon with in your industry.
The following tips can help you build a robust team:
Plan your hiring and outsourcing policy
Look for people who match your company values, working style, and personal ethos. When interviewing, ensure the selected team will vibe well with each other.
Depending on your finances and requirements, you can offer full-time, part-time, remote, or hybrid work options.
There’s no compulsion to start with a full-time team. You could outsource specialist skills, like video editing and accounts management. Understand your requirements early and hire resources accordingly.
Implement hiring and management best practices
When hiring, focus on putting together a team of diverse skill sets. There are multiple roles in a social media marketing company. Prioritize which are an absolute must-have and which you can take on later.
Good management practices involve establishing clear objectives, well-defined KPIs, and metrics for monitoring objectives. Acquaint yourself with your local employment rules related to leave, bonuses, and regulations.
Finally, leverage opportunities that enable your staff to upskill whenever possible. Investing in your employees will boost their morale, motivate them, and ensure they do not leave the organization.
Collaborate to expand your capabilities
Tie-ups with agencies or hiring freelancers can also help you enhance your service range and capabilities. Ensure you have proper contracts and clearly outline these associations’ deliverables, terms, and conditions. Else, you may run the risk of them poaching your clients.
Manage Agency Finances and Operations
The quintessential purpose of every business is profits, so pay attention to your finances.
Read through our suggestions to manage your finances efficiently.
Plan for various costs
Salaries, overheads, and marketing costs are typical expenses you’ll need to budget for when starting a social media marketing business. Analyze the nature, extent, and frequency of these costs.
Switching to a more affordable subscription or contracting a job may improve cost efficiencies. Likewise, if some clients are demanding but underpaying, consider increasing your rates after a few months. Even better, scout for new clients to replace them.
Give thought to taxation, insurance, and legal expenses
Hiring a reputed accountant to audit your accounts and file tax returns on time is worthwhile. Having a legal expert on retainer or, whenever needed, to review contracts and other agreements can prevent some crude shocks in the future.
Keep a watchful eye over the process and build up your knowledge by asking questions and reading up on the topic.
Streamline invoicing, financial tracking, and bookkeeping
Invoicing, salaries, taxation, and even working out social security payments must be done on time and accurately.
Fortunately, you can opt for various online software like QuickBooks and cloud-based apps like Xero and Wave to handle your agency’s finances.
Conclusion
Starting your own social media marketing company can be creatively and financially rewarding. The competitive environment may overwhelm you if you leap into it with little thought.
To succeed in social media marketing, you must have a clear strategy. This includes patching a great team, leveraging your expertise, investing in automation, and managing your resources, including finances.
We have endeavored to provide a comprehensive guide touching upon these topics to help you get started on your entrepreneurial journey. We hope it helps!
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