If you’re reading this, I assume you’re already considering a move into online marketing.

This is a lucrative and exciting field, bringing in high six-figure incomes for individuals who can successfully operate and grow a successful digital marketing agency.

However, operating a digital marketing agency isn’t cheap. You’ll need to invest in software, tools, and specialists. Which leads us to our next question…

How Much Should You Spend on Software and Tools?

When considering a move into the world of digital marketing, you’ll inevitably be bombarded with questions regarding software and tools. How much should you spend on them? Which ones are worth investing in?

The truth is, it’s difficult to give an exact figure since the cost of these goods varies from company to company. However, we can definitely give you an idea of what you should spend based on industry standards and what type of agency you’re planning on starting up.

A digital marketing agency that focuses heavily on performance marketing will require extensive software and tools for optimising campaigns and measuring results. As a startup, you’ll most likely have to allocate a large sum for the initial investment in technology. This is especially the case if you want to be able to operate on a high scale.

Conversely, if you’re a freelancer or a small business owner who wants to invest in technology that can be used to reach more customers, a social media manager tool or a content strategist tool are good options to consider.

When choosing software and tools for your agency, make sure to invest in quality and avoid cheap knock-offs which won’t give you good results. As a startup digital marketer, you’ll have limited funds so you’ll need to be selective in choosing which products you invest in. The better the product, the more you’ll benefit from it. At the end of the day, you want to invest in tools and software that will make your job easier and give you more time to focus on growing your business.

What About Specialists?

In addition to software and tools, you’ll also need to invest in specialists. These individuals will be critical to the success of your agency. To give you some idea of what you should spend on them, let’s look at the cost of a typical digital marketing apprentice.

If you’re considering a move into the world of digital marketing and you haven’t yet started your agency, it’s probably time to start considering salaries. While it is possible to find skilled individuals who will work for less, you’ll need to allocate more money for payroll. As a small business or a freelancer, you most likely won’t have the funds to invest in specialists. Which leads us to our next question…

How Much Should You Spend on Payroll?

As we mentioned above, you’ll need to invest in specialists. However, you should also consider investing in staff. When choosing staff, make sure to select qualified individuals who can bring value to the agency. If you’re looking for the cheapest option, you’ll most likely end up with individuals who are unqualified. This can lead to legal issues and costly mistakes. Make sure to vet your potential employees thoroughly before offering them jobs. Since this is your initial investment, you might as well choose individuals who are already equipped with experience. It will save you both time and money down the line if you can get employees who are already qualified.

As a new business owner or a freelancer, you most likely don’t have the funds to invest in specialists. So, how much should you spend on payroll? Well, it depends on your situation. If you can afford to, you can invest in a part-time employee who will work remotely. If you’re looking for a more traditional agency environment, you can hire a full-time in-house employee.

Where Do You Invest Your Money?

When preparing to enter the world of digital marketing, it’s important to consider where you want to invest your money. Which leads us to our last question…

Where Do You Invest Your Money?

If you’re looking to enter the world of digital marketing as a freelancer or a small business owner, you most likely don’t have the funds to invest in expensive software and tools. However, you do have money to invest in a quality server. This is the place you should be putting your money. A reliable server will make a world of difference. It will reduce your headache of struggling with technical issues and it will speed up your workflow. This, in turn, will make you more efficient and capable of producing great work.

If you’re looking for a more traditional environment, you can invest in an office or an agency space. This will give you a dedicated space for your employees to work in. Having a dedicated office space will contribute to your productivity and hopefully, make you more money.

Now that you have an idea of how much should you spend on software and tools, it’s time to consider how much should you spend on specialists. To give you some idea of what you should be spending, let’s take a quick look at the cost of a social media manager. A social media manager can be expensive to hire but if you’re looking for someone who is experienced and capable of doing the job efficiently, it’s definitely worth the investment.

The role of a social media manager is to set up social media accounts for your company or brand and engage with your audience through these platforms. The social media manager will work with you to select the right platforms for your company, analyse your results, and create content that will continue to engage with your audience. Depending on how large your audience is, how often you engage with them, and how much you invest in pay-per-click advertising, this role can get quite expensive.

If you’re looking for an in-house social media manager to save you money, consider a freelancer or an agency who can offer you personalised service. Getting a personalised service social media manager who is skilled and experienced will save you time and money.