We have a very simple formula if you would like to understand how the digital marketing agency business model work, it’s actually a plan to make this agency generate revenue and increase its sales, as simple as that.
Yes, it’s shorter than what you are expected, we understand you are wondering about this short plan in one sentence.
To be able to build the right plan, you have to set one goal, the goal we already mentioned above, and to reach your main goal, we will describe each step in detail:
#1 Design of the Service
For any business model, you need to set a service list that you will use in your pitching materials and website, etc…
The service must be aligned with the market needs, that’s why you can copy this service list from your competitors, however, you have to make sure you are capable to do these services and take a chance on the market.
#2 Tools Needed to Operate This Service
To deliver these services you need tools to make it ready, for example, this services will need to hire calibers that can manage and execute this services, for example, you will not be able to deliver LinkedIn Ads as a service and you don’t know how it works or how to select the right audience.
Other tools like the agency office and its location, salaries, software purchasing, and hosting service, this is also other tools you need to be aware of.
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#3 Pricing and Find the Right Customer
The third goal is to find the average pricing package and find your customer, is these prices will give your agency a value to compete.
Which target audience do you will target? do you will only deliver B2B or you will have services for B2C and SMEs ( Small Business Owners). you must find your own and new place to deliver your business, if you will copy the same goal here from your competitors it will never work.
In this goal also you will be asked by the clients, why I should buy from you? find an answer to this question and deliver the right answer. you can find below some answers:
- We deliver digital marketing services quicker than the competitor do
- Our creatives are beyond expectations
- Our team is experienced enough to deliver such a service
- Communication skills and will give examples from our existing clients.
You should have your answer ready before finishing this goal.
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The Business Model Is Updated Every Year
Market change and you should change your business model to be aligned with these changes, it must be a fixable business model to be aligned with the upcoming situations, or global issues, like COVID-19.