I was getting many messages & emails on How To Start a Digital Marketing Agency. So here it is, I don’t talk here how to create your own Digital Marketing Agency. I share my story here on Why I Dropped my Decision of Creating a Digital Marketing Agency.
It was the month of March 2019.
There was a fad everywhere. Literally everyone that I knew or on Facebook Group wanted to create a Digital Marketing Agency and mints of lakhs of rupees each month. So was I.
Dreams of minting lakhs of rupees a month were sold down the throat by many marketers online. I would not blame any. There are people who are minting lakhs of rupees a month. But they are not in the majority. These are a very countable number of people. They have executed with a lot of effort. A lot of time. A lot of Failures. I respect them from the core.
Let me get back to my story.
So I was having that thought of creating my Digital Marketing agency in my mind a year back. I joined a company in March 2018. Company of size 25.
But as destiny would have it, I sat with the person who also thought of creating an agency. ( Remember the fad those days lol) 😛
I was having lunch & was having a discussion with my friend about opening an agency.
We both decided to start an agency with a job in our hands. Bought domain & hosting. Started working on designing the website when the job was over. Basically after the usual 9-5.
Now I knew that it would be very difficult to handle clients by having a job in hand. I would not have much time to cater to their needs. I was getting a sense of that. I could have been wrong but I was getting a sense of that.
So I thought I would quit my job and start working on the website & the agency full time. But the other friend didn’t agree with this. That was okay with me.
In Mid March 2018, Suddenly I quit my job. Started working on the website full time. My Uncle had an office at Thane. Few 30 kms from my home. I used to go there & design the website. In the meantime, I would decide what all services I could serve to the clients. Made a list of things.
Take a look at what potential services we decided:-
- Facebook Advertising
- Google Ads
- Web Design & Development
- YouTube SEO
- Instagram Ads
- YouTube Ads
- Snapchat Ads
- Amazon Ads
- Logo Design ( 3D Logo)
- Animated Explainer Videos
- LinkedIn Profile Management
- Twitter/FB Followers Increase
- Website Speed Optimization
- App Store Optimization
- Data Scraping
- Content Marketing
Do you see the problem? Wide range of services without any direction. I instantly knew that we need to niche down to 1-2 specific services and then broader down the road after some time.
But anyway we decided to serve major services from the above list into our website.
At that time, my friend also decided to quit. He was on notice period. Btw, he too used to come to the office after working and we used to design & talk about the agency.
But what I realized in that hurrying times, was that I used to discuss about drilling down to some 1-2 specific services but there was no proper/apt response from my other friend. I realized he too was in a hurry & not thinking much as I was.
15 days were remaining until he quit. I was at home designing the website & writing down the services I could imagine to serve.
I am an Extrovert kind of person, I like socializing. But when I was alone at home, I felt really lonely. Wonder what would happen after I create my agency. I started to think that there will be no social life. No Interaction. Just me & my friend & the clients I serve.
There were also some more thoughts that were running through my mind those days.
I always had that ideal life scenario, where I would be working for myself. Creating wealth. Making Friends. Enjoy Life & Work. Go Travel the World. Enjoy the time while working.
But when I thought about creating an agency, it didn’t seem to be happening as I was thinking 2-3 years down the line what would happen.
First of all, I knew it is really really difficult to scale up a service-based business. You could have 2 Clients Today But You cant have 20 Clients Tomorrow. It is difficult to do that.
Then Later, It is absolutely difficult to break even once you start scaling up.
Let’s take an ideal scenario.
You have two partners. After some months, You have 10 Clients for SEO. Each Client You Charge Rs 13000/month.
Your Total Revenue:- Rs 1.3 Lakh/month
Let’s run the Expenses Math Now.
Salaries of Employees assuming you hired 3 employees at Rs 14k/month:- 42k/month
Tools Expenses:- 10k/month
Total Expenses:- Rs 92k/month
Total Profit:- 1,30,000- 92,000 –> 38,000
Profit Per Partner –> Rs 19,000
Now you would say that’s flawed math. Yes, it can be. The profit can literally vary upon how you handle the situation. You would run your office from home and save rent + electricity charges. You won’t hire employees and do yourselves.
But the problem starts when you scale this up and you would want to make more profit.
Let’s say you alone want to earn Rs 1,00,000/monthly. It will be really difficult for you to run this from your home because you will hire employees and eventually you would require the office.
As you also know, You cant charge Indian Clients much (excepting a few companies). You will have big-time pitching those high paying clients to charge more than 90k-1 lakh/month.
Not to mention the stress from your clients. You think you can run a Digital Marketing agency & you won’t have a boss. You are super wrong here. Your Clients are your boss now. You cant take holidays. You will have to keep up afloat. You cant enjoy life ( Well that’s my perspective. You can disagree with me 🙂 )
Another hardcore challenge you will face is Client Retention & Client Payments. There will be delays from your clients’ payments (especially Indian) very often.
Here’s one article from Sorav Jain on 10 Hardcore Challenges of Running A Digital Marketing Agency in India
But, Running Profitable Agency is Doable. I am not saying it is not doable. You can very well run a Highly Profitable Digital Marketing Agency but the people who are actually doing this are low in number.
It is just that it will take a hell lot of effort, time & countless nights of no sleep to make that happen. Not to mention the stress.
Keeping all these things in mind, I decided I won’t build my own Marketing Agency.
I was really glad to make that decision. I would not want to do something that everyone was doing.
Now I don’t want to give advice to you whether you should go create your own digital marketing agency or not. It is totally your choice. I am no one to tell you what to do. But maybe you can read this entire article till the end to get more perspective and hopefully you will get an idea of what to do.
Messaged my friend, not to quit his job and continue further.
Here’s What I did Later
Now that I ditched the decision of building my own agency. What was my plan?
I always wanted to Sell Digital Products. I liked Writing. I used to read books & watch innumerable documentaries. I had that craving for knowledge. Believe me, I knew that You can scale up Digital Products like crazy. Literally crazily.
I decided to Sell Digital Products Online while doing my main job. As soon as my the Digital Product’s income surpasses the main income, I would quit. I am still in that process btw.
Here’s some of the Upside of Selling Digital Products:-
- No Inventory Needed
- Little to No Initial Investment
- Don’t need to be shipped
- Can be easily Improved
- Knowledge is Power.
In those times, I wrote 2 Ebooks.
The first book, I wrote was on Job Search. Remember I told that I joined this company in March 2019. I had some really nice experience in Job Search via LinkedIn and other sites.
I decided to help Job Seekers get a job using my Job Search Guide. There I explained all the strategies I used to get job offers from LinkedIn disregarding the traditional approach of going via Indeed & Naukri.
Here’s the eBook Link if you are interested & a Job Seeker –> The Most Helpful Job Search Guide For all Job Seekers!
Second Book, I wrote was one of the best that I have written until now. The Second was on Quora Marketing. Decided to Help Marketers Leverage a New Skillset using Quora.
A Complete Detailed Guide on Quora Marketing, Strategies to Make Money on Quora & 16 Chapters. This was one of my biggest achievement so far.
And you can read my experience of writing my book here –> After 21,221 Words, 30 Days & 17 Chapters Later- This Happened!
The most satisfying experience was when customers give feedback. Check some feedback here. This was the most satisfying of all.
One of the Many Feedback on Job Search Guide
One of the many Feedback on the Quora Guide
I felt that satisfaction when customers tell me that they really got some insane value from eBooks. This satisfaction I would never get running a Marketing Agency, Never.
Btw, you can get the Quora Guide here if you need one:- Quorific ( The Only Quora Growth Hacking Guide You Will Ever Need)
Here’s my Sales Dashboard Screenshot of 1 month 🙂
Getting back to the topic, the reason why I chose selling Digital Products was the freedom I get while doing so and the great sense of satisfaction from the feedback I get.
You can’t get that by running a Digital Marketing Agency. Maybe some people may get that satisfaction and its okay. They are fine that way & I am fine mine. I don’t want to throat down any decision on anyone. Everyone is running their own lives.
Also, one more big factor that contributed to this decision was rapid scaling. Of course, this is also not easy to do. If it was that easy everyone would have done it, right?
But by only selling Digital Products you cant create eternal wealth. I was also fortunate to have some talented friends right from my childhood. My friend taught me Intra Day Trading in Stock Markets. He is my best friend since 9th Standard. I am into Stock Markets for 2 years now.
I also started investing in the stock markets. Learning new skillsets. Maybe that’s another upside of not running an agency. You will not get time to learn those skills. I am glad that I am getting one.
So creating multiple sources of income, investing in businesses, traveling the world & enjoy the life that is my mantra. See, it is going to be difficult, of course. There will be failures. There will be strategies that would fail. And that’s okay. What’s more important is getting back up every time you fell.
Let me know your thoughts below on running an agency. If you are currently running an agency, do comment below what are you experiencing now. And those who still want to create agency and in doubt, do comment your queries & I will be happy to help you out.
Thanks for reading.
Do Share this Blog with someone who wants to create their own agency & still confused. Maybe they will get a different perspective this time 🙂