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How to Start a Marketing Agency: What I Did at 25

How to start a marketing agency in six steps: learn the work, pick one service, form an LLC, price a retainer, sign three clients. The order I followed at 25.

Federico DonatoneBy · Founder & CEO, Growth Cab
How to Start a Marketing Agency: What I Did at 25

To start a marketing agency, learn the work inside someone else's agency first, pick one service for one type of client, form a company, price a monthly retainer, and sign your first three clients through your network and outbound before you spend money on a brand. It is close to the order I followed before launching Growth Cab at 25.

On November 5, 2026 I posted my timeline from 18 to 27 on LinkedIn. Twenty-two, first job and five side businesses that all failed. Twenty-four, Sydney to master the agency game. Twenty-five, back to Italy for six months to launch Growth Cab. Twenty-six, our core business established in the US.

Federico Donatone in a navy sweater and sunglasses on the waterfront in front of the Lower Manhattan skyline
Federico Donatone
Federico Donatonein
Federico Donatone
Founder & CEO, Growth Cab · This article started as a LinkedIn post

“18 yrs old: Moved to Milan to study philosophy. 19 yrs old: Tired of uni, traveled 25 countries.”

Read the original post →

How Do You Start a Marketing Agency?

You start a marketing agency in six steps, and the order matters. Most people begin with a logo and a name. I would begin with the skill and the first client, because those two make the rest worth paying for.

How to start a marketing agency: six steps, in the order I would do them again
StepWhat you doDone when
1. Learn the workA year inside an agency, or one service you already deliverYou can do the job without a tutorial
2. Pick one service for one buyerFor example, outbound for B2B software, or SEO for dental clinicsYou can say it in one sentence
3. Form the companyLLC with your state, free EIN from the IRS, business bank accountYou can send an invoice
4. Price itMonthly retainer with a fixed scopeOne page says what is in and what is out
5. Sign three clientsYour network first, then cold email and LinkedInThree retainers are paid
6. Systemize deliveryTemplates and checklists, then AI agents and peopleThe work runs without you on every call

Can You Start a Marketing Agency With No Experience?

You can start a marketing agency with no experience, but you will pay for it with your first clients' money and your reputation. The cheaper route is to get the experience inside someone else's agency. That is why I moved to Sydney at 24 before launching Growth Cab.

If that is not an option, pick a service you already deliver well for yourself. You ran ads that worked for your own project. You grew your own LinkedIn. Sell exactly that, to people like you, and nothing else.

How Much Does It Cost to Start a Marketing Agency?

The legal side of a new agency usually costs under $300, according to the SBA. The IRS issues an EIN for free online, and its own page says you never have to pay a fee for one. Your state charges a filing fee to form an LLC. That fee changes from state to state, so read it on your secretary of state's website before you budget.

One catch if you live outside the US: the IRS online tool needs the responsible party's SSN or ITIN. Without one, you apply by phone, fax or mail.

The real cost is time without income. Until three retainers come in, you are paying for your own months. Budget for that gap first and for tools second. A domain, email, a CRM and a list tool are enough on day one.

On structure, the SBA describes the LLC as protecting your personal assets in most cases while profits pass through to your own tax return. For a one-person agency that is usually the sensible default. LLC members still pay self-employment tax, so talk to an accountant before your first invoice.

Should a New Marketing Agency Pick a Niche?

A new marketing agency should pick one service for one type of buyer. In Promethean Research's 2025 numbers, agencies that cut services grew fastest and averaged a 30% net margin, a figure Promethean calls directional. Agencies that added services earned below-average margins.

Marketing for businesses is too wide to sell. Outbound for B2B software companies selling into the US is narrow enough to win. Narrow also makes your first clients easier to find, because a buyer you can describe in one line is a list you can build in an afternoon.

Here is how I would build a B2B lead list for that one buyer.

How Do You Get Your First Clients for a Marketing Agency?

Your first three clients come from two places: people who already trust you, and outbound to people who do not know you yet. Start with the first group. Write to every founder and manager you have worked with and tell them, in two lines, the one thing you now do and for whom.

Then go outbound. Cold email and LinkedIn messages still work when every message is written for one person about a problem they actually have. Promethean's data adds a useful nudge: larger engagements came with better project margins, so aim at buyers who can afford a real retainer.

Before the first paid client, do the work once for yourself or one friendly company and write down the numbers. A buyer who sees one real result stops asking how long you have been in business.

If you need a starting point, here is a sample cold email to a potential client you can adapt.

The same one-person rule works for LinkedIn lead generation.

How Should You Price Marketing Agency Services?

Price a monthly retainer with a fixed scope, and avoid selling hours. Promethean Research warns that AI is making some clients expect execution to be faster and cheaper. Price by the hour and every hour AI saves goes back to the client.

Write one page per offer: what the client gets, what they do, what is out of scope, and the monthly price. If a prospect pushes back, cut scope and keep the rate. Among the 59% of agencies that track it, Promethean measured an average project margin of 35% against a 13% net margin, and says the gap between the two is where the agency business is won or lost.

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Is Starting a Marketing Agency Worth It in 2026?

It is worth it if you sell expertise and a system, and risky if you sell hours of execution. The average marketing agency in Promethean's sample made $1.96 million in revenue at a 13% net margin, about $255,000 of after-tax profit. Across all digital agencies, studios with fewer than 10 people averaged 19%.

Agency economics at a glance (Promethean Research, 2025 data, published April 19, 2026, read November 5, 2026)
MetricBenchmark
Marketing agencies, average revenue$1.96M
Marketing agencies, average net margin13%
All digital agencies, studios with 0-9 staff, net margin19%
All digital agencies, 50+ staff, net margin8%
Average project margin, agencies that track it35%

AI is the reason I would start one now. At Growth Cab, nine AI agents run parts of our own go-to-market, from LinkedIn posts I approve myself to lists on Clay and follow-up emails after sales calls. A small team with a good system can serve clients that used to need a much bigger agency.

If you want to try it, here is a free library of 282 Claude Code agents you can put to work in a new agency.

Where it breaks is the founder. Promethean notes that many studios are highly founder-dependent, with one or two owners selling, managing clients and protecting quality. Great margins, and a business that stops the week you stop.

I wrote about that trap, and the years that compound before it, in founder led growth.

If you run a B2B company and want that kind of system on your own pipeline, this is how we do go-to-market consulting at Growth Cab.

Frequently asked questions

How do I start a marketing agency with no money?

Start with a service you can deliver alone and sell it before you buy anything. An EIN from the IRS is free, and the SBA says registering a business costs less than $300 in most cases. Sign one paying retainer, then spend its first month on the tools you missed.

Is starting a marketing agency profitable?

It can be, with thin margins. Promethean Research found the average marketing agency earned a 13% after-tax net margin in 2025 on $1.96 million of average revenue. Across all digital agencies, studios under ten people averaged 19%. A narrow service, retainer pricing and few layers of overhead are what push an agency above the average.

How long does it take to start a marketing agency?

The paperwork is quick: an LLC filing with your state, then an EIN, which the IRS issues online immediately once the application is approved. The business takes longer. I launched Growth Cab during six months back in Italy at 25, and our core business in the US was established the following year.

What services should a new marketing agency offer?

One. Choose the service you can already deliver with results and the buyer you understand best. Promethean Research's 2025 data shows agencies that reduced their services grew fastest and earned the highest margins. Add a second service only when existing clients ask for it and are ready to pay for it.

Sources

Promethean Research, How Profitable Are Digital Agencies?, published April 19, 2026, read November 5, 2026.

U.S. Small Business Administration, Launch your business: choose a business structure, read November 5, 2026.

Internal Revenue Service, Get an employer identification number, read November 5, 2026.

Federico Donatone, 18 yrs old: Moved to Milan to study philosophy, LinkedIn, November 5, 2026.

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