Why Most Agency Owners Will Fail
Just like any business, starting and running a digital marketing agency can be intimidating and hard work. While many people are able to find success, there are just as many, if not more, who fail.
So how do you make sure you don’t fall into the group of the many who fail? Well, just like everything else in life, knowledge is power. That’s why I’m here today to help you learn about the many mistakes digital marketing and social media marketing agencies make that ultimately lead to their failure. With this information, you’ll be able to see what traps you may fall into, and learn how to avoid them.
1. Lack of Education/Experience
As the popularity of social media continues to grow and people continue to spend more time online, it’s no wonder that so many people are flocking toward a career in digital marketing. However, not everyone has the experience and understanding required to make it.
If you’re just starting out and are determined to make your agency a success, enrolling in an online course or marketing school is a great way to learn and acquire the skills necessary to land clients and keep them happy.
When it comes to running a good digital marketing campaign, nothing beats experience. While learning from a textbook or course will give you an advantage over your competition, one of the best ways to gain knowledge and experience while running a campaign is to seek advice from a mentor.
Enrolling in a mentorship program is a less expensive option than a course, and will give you one-on-one access to real-life expertise. It’s also important not to be complacent when it comes to your education—even if you’ve been running campaigns for 10 years, there is always new information to be learned. Keep your eyes peeled for networking opportunities or attend digital marketing conferences so you can learn from your peers and exchange ideas.
2. Lack of Discipline
There is a lot that is appealing about starting your own business or digital marketing agency—the ability to make your own hours, have more control over your work, and be your own boss—but it takes a lot of discipline.
Many people jump into starting off on their own without realizing the many challenges they will have to face, and too many people give up easily. Whether they get lazy without the presence of a supervisor to get on their case or simply can’t handle the stress, these are all challenges you must be realistic about when thinking about starting your own digital marketing agency.
Another challenge many people face is taking on too much too fast. Remember that being disciplined goes both ways—you have to work hard enough to get clients and be solvent, but don’t work so hard that you burn yourself out. You want to be in this for the long haul, not just a short burst.
Be sure to manage your time and tasks effectively, and be on the lookout for any tools, software, or even personal tricks that will help you stay focused on making your agency successful.
3. The Wrong Priorities in Life and Business
We all want to have the perfect work/life balance, but too often new agency owners prioritize their personal life over their business, and soon enough their business is no more.
The luxury of being able to set your own hours and work wherever you please can be a double-edged sword, as sometimes your priorities can start to shift away from where they should be—on the business that enables you to live that lifestyle.
This is one of the reasons why it’s important to get into digital marketing because you have a passion for it—or at the very least, to find a niche within this industry that doesn’t make work feel too much like a chore to you. And remember that when you’re running your business properly, you will have ample time to enjoy your life.
One of the incredible perks of running your own digital marketing agency or social media marketing agency is that it does allow you to have a good work/life balance—for example, I was able to spend the beginning of 2018 on a 7 day cruise exploring Mexico, Belize, and Honduras, and that’s something I wouldn’t have been able to do if I had any other job. You just need to make sure you never forget about your business.
4. Underpricing Services
One of the trickiest parts of starting a digital marketing agency is determining how you will price your services, and unfortunately, it’s this issue that remains one of the major roadblocks to success for many marketers.
You always want to be competitive and land your client, and sometimes that will mean offering incentives for meetings with prospective clients. However, offering too much for free upfront could mean that you’re spending all of your valuable time on tasks that aren’t making you money.
It is crucial for you to be realistic about your fixed costs and the cost of labor it will require for you to complete a job BEFORE submitting a proposal. You need to weigh these costs against the profit you wish to make, while also scoping out the prices of your competitors. Remember that you want to be competitive and land clients, but not at the cost of the demise of your company.
One of the biggest downfalls of agencies that ultimately fail is their inability to price their services properly. For help with this, look to your competitor’s who have proven successful, or look online for guides to pricing to ensure you are not working for zero profit.
There are countless reasons why someone would want to start their own digital marketing agency, but it is so important to never lose sight of your goal, which should always be running a successful business.
If you’re looking for more tips on how to be successful in digital marketing, subscribe to our YouTube channel for helpful videos, or check out our Facebook to chat with other people in your field. If you have any questions regarding this article, feel free to leave a comment below!