Running a digital marketing agency can be incredibly rewarding, but understanding the actual costs involved is critical to success.
Many agency owners struggle with overhead, fulfillment, and scalability, but the smart ones know how to structure their operations efficiently.
Let’s break down what it really costs to run an agency and how you can maximize profitability while maintaining high-quality services.
The Secret to Lowering Costs: White-Label Fulfillment
The best-kept secret of profitable agencies? They outsource fulfillment. Instead of building an in-house team for every service, they partner with trusted white-label providers like Agency Elevation and Invisible PPC.
Here’s how the math works:
- White-label providers typically charge around $199 per service per client.
- If your agency offers Facebook and Google Ads in a package, your total cost per client is $398 per month.
- Agencies then mark up these services to $3,500 per month, creating a healthy profit margin.
This model ensures your clients get expert-level execution while you focus on growth and client relationships.
Account Management: The Backbone of Client Success
While white-label fulfillment takes care of execution, you still need a strong account management system. Clients expect communication, reporting, and strategic guidance—this is where account managers come in.
- A solid account manager from RepStack costs around $2,400 per month.
- One account manager can typically handle 20 clients, bringing your cost down to $200 per client per month.
Think of your agency like a restaurant: white-label providers are the chefs in the kitchen, and account managers are the waitstaff delivering the experience. Both roles are essential for a seamless operation.
Scaling Your Sales Process: Follow Proven Models
The final pillar of agency success is sales. Without a predictable lead generation and closing system, you won’t scale beyond a few clients.
A proven blueprint for agency sales is outlined in Josh Nelson’s Seven-Figure Agency book. His process includes:
- Using the Content Factory process to create industry-specific content.
- Targeting your Dream 100—the top prospects in your niche.
- Building a repeatable onboarding and retention system to ensure long-term client success.
Many agencies claim they don’t outsource, but the truth is that even major corporations rely on strategic partnerships. Take Costco—they don’t manufacture their own orange juice or toilet paper, but they trust high-quality white-label suppliers. The same principle applies to agencies.
Avoiding the “Sales Bro” Trap
Not all agencies are built the same. Some agency owners are in it purely for quick cash, prioritizing flashy cars, strip clubs, and luxury vacations over client results. These “sales bros” focus on selling but fail at operations and execution.
During my podcast session with Keigan Carthy, we also discussed why “Sales Bros” can’t scale up their agencies.
The best agencies, like those run by Danny Barrera and Jonathan Bannister, are transparent, process-driven, and client-focused. They welcome audits because they know their work stands up to scrutiny.
I had a session with Marko Sipila explaining why it’s important for local businesses to hold marketing agencies accountable using five simple steps. This is how they can avoid getting scammed by the so-called “sales bros.”
Once you scale beyond 20 clients, operational rigor and standard operating procedures (SOPs) become essential. A single sales-driven founder can’t manage everything—this is why successful agencies invest in project management tools like GoHighLevel, Vendasta, BaseCamp, LocalFalcon, and Google Data Studio.
Additionally, hiring and managing remote teams becomes critical. Platforms like OnlineJobs.ph and UpWork help agencies find skilled virtual workers, optimizing costs while maintaining efficiency.
Final Thoughts: Build for Long-Term Success
A well-structured agency is a system, not a one-man show. If you:
- Outsource fulfillment to trusted white-label providers
- Hire strong account managers to ensure client success
- Follow proven sales systems for consistent growth
- Use the right tools to manage operations and remote teams
…then your agency is positioned for sustainable, long-term success.
If you want to learn more about managing and scaling your agency, check out Agency Management.
