Social media has revolutionized how we connect, communicate, and learn, becoming a vital platform for business owners to reach and engage their target audiences.
However, most small business owners struggle to dedicate time and resources to developing and executing effective social strategies tailored to their niche clients. This is where social media marketing agencies (SMMA) prove valuable.
For those seeking a scalable entrepreneurial venture with life-changing income potential, launching a profitable SMMA provides a compelling path worth exploring further.
What is SMMA?
First things first, what does SMMA stand for? Put simply, SMMA means social media marketing agency.
These agencies provide a range of services that use various social channels to assist business owners who want to connect with and engage with their target audience.
SMMA’s are adept in creating and executing social media strategies, including but not limited to ad campaigns, social media management, email marketing, content creation, funnel building, and more.
Is SMMA Saturated?
No, SMMA is not truly saturated yet, and it’s worth pursuing. While interest and competition have grown in recent years, there remains a substantial opportunity for new entrants to launch successful agencies by targeting untapped niches and providing specialized services.
The key is to adopt a focused approach instead of trying to be everything for everyone.
For instance, general social media marketing aimed at large corporations is likely saturated. However, an agency concentrating solely on social media for local dentists or gym instructors possesses room for penetration before saturation hits.
Niche specificity allows charging premium prices due to deep expertise while still addressing unmet needs.
Restaurants illustrate this well – with around 750,000 establishments in the US alone, an agency signing even 1% indicates 7500 potential clients!
There are also more than 113,000 gym, health, and fitness clubs and 200,000 dentists in the United States alone. So, anyone telling you there is a shortage of clients out there is just not looking in the right places.
How Does an SMMA Work? What Do SMMA Do?
A social media marketing agency works by essentially taking over a company’s social media strategy and management. This alleviates these companies from handling the demands themselves, freeing time and granting invaluable expertise.
The day-to-day tasks can include:
- Creating engaging social content (videos, images, captions).
- Running and optimizing paid social campaigns.
- Crafting comprehensive strategies for platforms like Facebook, Instagram, and LinkedIn.
- Designing lead generation funnels to facilitate sales.
- Building email lists and marketing sequences.
- Analyzing campaign statistics and offering improvements.
- Providing consulting calls to guide overall growth objectives.
So, through exceptional social media marketing, SMMA services execute an end-to-end plan to boost brand visibility, website traffic, followership, leads, and sales.
What Services Do SMMA Provide?
While offerings differ across agencies, most provide a suite of social-focused services either á la carte or bundled:
- Social Media Management – Content creation, community management, analytics.
- Paid Advertising – Paid campaign management across platforms.
- Content Marketing – Visual assets (graphics, videos), copywriting, email newsletters.
- Funnel Building – Lead capture and sales funnel creation.
- Consulting – Target audience research, branding, high-level strategy.
This versatility allows an SMMA agency to completely outsource an organization’s social media endeavors for a transparent monthly fee.
Benefits of Starting an SMMA
Before detailing how one goes about building an SMMA, it helps to frame why so many entrepreneurs find the concept appealing enough to pursue.
When executed effectively, SMMAs can unlock compelling benefits compared to other business models.
Flexibility and Low Barrier to Entry
As a scalable and profitable digital business model, SMMA offers budding entrepreneurs some unique benefits:
- Low Initial Investment – With no inventory or warehousing demands, launch costs are minor (domain, hosting, software access). This permits bootstrapping, i.e., funding from client profits.
- Location Independence – Completely web-based work allows owners to run operations remotely while traveling. Meetings are conducted online.
- Unlimited Income Potential – High-ticket recurring revenue combined with an indefinite client ceiling makes this model financially alluring. Top agencies generate 7 figures.
- Business Flexibility – Lean initial team and autonomous structure means minimal offline responsibilities. The schedule can be molded around lifestyle.
- Replicable System – Once processes are set for client fulfillment and sales, multiple teams can replicate them for scalability.
Scalable Earning Potential
Perhaps the greatest benefit lies in the high-income ceiling that SMMAs possess, anchored in recurring monthly retainers from clients versus one-time project fees.
An agency with just 10 clients, each paying $5000 monthly, clocks $600,000 in yearly revenue (excluding new sales).
Typical profit margins range from 30-50% after contractor/tool expenses, paving the path toward 7-figure owner earnings.
Continual client addition provides theoretically unlimited expansion room – once the client fulfillment process is systematized through procedures, multiple sub-teams can replicate it, facilitating scaling.
This generates passive wealth compounding for those executing correctly.
Specialized and Modern Approach
Unlike old-school marketing agencies, SMMAs focus exclusively on social channels and small business owners.
This allows them to offer highly customized solutions around platforms like Facebook and Instagram instead of superficial blog posts or basic email blasts.
They pour efforts into gaining measurable ROI through lead funnels and sales vs. vague brand-building.
SMMAs provide modern digital solutions tailored to helping companies directly generate revenue on autopilot.
Is SMMA Profitable?
Yes, SMMA is highly profitable. As detailed above, combining lucrative recurring revenue through monthly retainers and wide profit margins contributes to solid profits.
Agencies charging each client $3000 per month require just 8-10 clients to generate over $300,000 in yearly earnings.
The capability to continually add clients and services ensures earning potential is essentially very high.
How to Start an SMMA
Starting a successful social media marketing agency (SMMA) off the ground requires thoughtful planning.
There are four key phases to focus on when figuring out how to start a social media marketing company from scratch:
1. Research and Positioning
Do thorough research to find an untapped industry that sorely needs social media help but is ignored by most agencies. For example, plumbers, lawyers, or chiropractors.
Identify one main pain point concerning the niche’s social media efforts through simple conversations with actual potential clients in that market. Keep it focused.
Synthesize findings into an Ideal Customer Profile (ICP) defining demographics, challenges, and value expectations.
Choose a niche industry vertical allowing extensive specialization – examples include healthcare, financial services, home services, etc. Avoid overly broad positioning like “social media for business.”
2. Hone Your Service Bundle
Create customized service bundles catering specifically to the selected niche, integrating offerings like graphic design, community management, and funnel building.
Outline at most 3 to 4 specific offerings that can immensely impact the revenue for those clients.
For example, a PR firm may need a strong visual brand identity and a LinkedIn lead generation funnel. That’s your golden package.
Price it reasonably based on real value-added, not arbitrary figures. Test it with 1 to 2 eager prospect clients open to feedback. Adjust as required to make a tangible difference in what those customers care most about.
3. Structuring and Launch Prep
Outline a one-page business plan including niche, services, operations blueprint, multi-year projections, and milestones. Plot realistic financial and client number targets.
Legally register business incorporation paperwork and trademarks to limit liability risks.
Design an industry-specific brand identity and book initial software tools enabling service delivery like social media management and design.
Build a professional website showcasing founder credentials, services, glowing testimonials, and case studies establishing authority and trust.
4. Gain Clients and Streamline Delivery
Here are things you need to do to streamline your client acquisition and delivery:
- Begin selling to niche prospects through personalized outreach, conveying value.
- Offer discounted intro packages or free audits to secure initial clients and funnel feedback into service optimization.
- Strive to overdeliver enormous real outcomes for early clients willing to take a chance on you. Turn them into vocal champions.
- Use quantified statistics, testimonials, referrals, and their expanding engagement as outstanding portfolio proof that compels others in their circle to hire you too.
- As clients start coming in, standardize processes for client onboarding, content development, campaign management, and reporting based on early customer interactions.
- Monitor key performance indicators daily across clients, including engagement rates, conversions, and ROI using analytics. Identify quick win optimizations.
- As first clients renew beyond intro offers, focus intensely on perfecting end-to-end fulfillment. Gradually systematize service delivery, facilitating future scaling.
- Reinvest early profits into contractors filling skill gaps like graphic design and PPC ads for greater service coverage. Build a team sustainably aligned to client growth.
If you feel overwhelmed or lack the knowledge to get your own SMMA off the ground successfully, consider enrolling in Prospecting On Demand’s elite coaching program for agency owners.
Our team of experts will provide you with the step-by-step guidance, resources, and mentorship needed to establish your agency and scale it to 7-figure MRRs.
Quick Comparison For Entrepreneurs
If you’re an entrepreneur exploring potential online business opportunities, assessing how the SMMA business model stacks up against other options can help with decision-making.
Comparing key attributes helps frame the overall landscape.
SMMA vs. SaaS
SaaS requires developing in-house tools or software to package as products for end-users. Complex tech builds rarely generate revenue quickly without substantial capital investment.
SMMA, however, starts selling from day one by simply leveraging platforms like Facebook, TikTok, and YouTube to grow clients. Less technical expertise is needed while the profitability timeline is vastly accelerated.
Affiliate Marketing vs. SMMA
Affiliate marketing earns sales commissions promoting third-party products to consumers. Income relies entirely on continuing to drive customers individually to partner sites.
With SMMA, personalized services are delivered directly, leveraging social channels for complete control and recurring monthly income from long-term client contracts.
SMMA vs. Digital Marketing
Digital marketing encapsulates all online channels, including SEO, PPC, email marketing, and content creation.
SMMA specifically utilizes major social networks like Instagram and TikTok as the focal point for providing marketing services.
Frequently Asked Questions (FAQs)
Below are some common frequently asked questions surrounding SMMAs:
Are there any untapped SMMA niches?
Yes! We have identified some overlooked and unsaturated niches that show strong potential for SMMAs.
These include:
- Home automation,
- Car restoration,
- Private chefs,
- eSports,
- CBD/hemp industry,
- Sustainable fashion,
- Health and wellness coaches,
- Customized pet products,
- Language learning services,
- Green energy solutions,
- Virtual reality experiences,
- Nonprofit organizations,
- Dentistry,
- Real estate agents,
- Remodeling companies,
- Luxury watchmakers,
- Car customization companies, and
- Cosmetic surgery.
What makes these niches promising is that they have a dire need for improved social media marketing to reach their target audiences, yet most agencies ignore them.
What is a media buyer in SMMA?
A media buyer in an SMMA context is someone who specializes in purchasing and managing paid advertising campaigns, usually on social channels like Facebook or TikTok.
This entails creating and optimizing ads, setting budgets, tracking key metrics, and ensuring positive ROI.
What is SMMA cold calling?
SMMA cold calling refers to the outbound sales method of contacting prospective new clients over the phone to pitch services and book sales calls.
Calls typically follow a script framing the agency’s value proposition and differentiators to pique interest for further meetings.
How much do SMMA charge?
SMMA pricing models generally fall under two structures: percentage-based fees or recurring monthly retainers. The former ranges from 10-25% on ad spend or sales generated, while retainers often start around $1000 to $3000+ per month based on services, deliverables promised, and business size. Many employ tiered packages.
Can you do SMMA under 18?
Yes, starting and operating an SMMA before turning 18 is generally possible. However, those under 18 should research requirements and considerations in their state to ensure proper business registration and tax compliance.
In some states, minors may need to initially open the business under their parent’s name and then transfer it once they turn 18. Having a parent’s involvement can also help with signing client contracts if required.
Close mentorship, starting slowly with services you can deliver or outsource, focusing locally, and highlighting age positively will help convince clients.
Do you need a website for SMMA?
SMMAS should build a professional website to exhibit services, work samples, case studies, and client testimonials – serving as critical sales collateral to attract and impress prospects.
Without one, an agency loses credibility and discoverability.
However, you don’t need to make it too complex. You can build a simple one using ClickFunnels and just get started.
Do you need an LLC for SMMA?
Legally registering an SMMA as a formal limited liability company (LLC) structure isn’t mandatory initially but is recommended for liability protection and tax savings as income grows.
Optimally complete after securing the first few clients and establishing some revenue flow to minimize setup costs.
Conclusion
Starting a social media agency is totally exciting – who wouldn’t want to build a business that can make serious money?
But pulling it off means learning a ton of specialized skills, which can feel super hard and confusing on your own.
Leveraging an experienced mentor is invaluable in such cases.
Prospecting On Demand has built multiple 6-7-figure agencies, and we’ve helped over 150 students launch their competitive agencies.
Our Elite training program breaks everything down step-by-step – how to get clients, deliver work that matters, and even build a team. Plus, you get support to actually make that happen.
With expertise like that, the next step is to book a free strategy call with our team to assess if and how we can help you get started.