Lately, there seems to be quite a bit of debate over the profitability of running a Facebook Ad Agency - is it worth it? Is it a thing of the past? Questions like that have been floating around out there for a good while now, and we’re here to tell you, they’re all right. And all wrong. 

Because in the end, the profitability of your Facebook Ad Agency is directly related to your willingness to hustle for it. Like with pretty much, any other business, a Facebook ad agency might be the best thing you ever do, in terms of money, but also of learning and discovering new things. 

In this article, we’re going to be talking about how to start a Facebook ad agency, but also about how to be successful once you’ve created it. We know it’s a long article, but bear with us, ‘cause it’s going to be worth it. 

What does a Facebook Ad Agency do?

Hey, maybe you’ve run ten of these already, or perhaps you’re still very new to the field. We don’t judge. In fact, we try to make our material as accessible as possible so that newbies and old-hands both have something to glean from it.

A Facebook Ad Agency takes over another company’s Facebook ad campaign and runs it for them. Like the ad agencies of yore (think Mad Men), a Facebook ad agency hires professionals to work on the best possible ads for their clients. These are people who’ve studied and trained to understand the best campaign strategies and know all the best tools available.

In other words, the people at an ad agency won’t just make you an ad, but they will craft one with all the potential to rake in big money. 

Right, so when you look at it like that, it seems pretty much like a no-brainer that a Facebook ad agency would be a profitable business. 

But is it?

Have you ever stopped to wonder what the pros and cons of running a Facebook ad agency are? Not to worry, because we have, and we’ve laid them out for you. 

Some of the main advantages… 

One of the main reasons Facebook ad agencies are still going strong in 2020 (and will keep doing so in 2021) is the Covid-19 pandemic. With the recent events that have taken over the entire world, Facebook has seen a surge in traffic (not that it wasn’t busy enough already). That means you have more people spending more time on the social media platform, and for an ad agency, that translates to impressionable public. With people at home being bored because of lockdown regulations, they’re now much more likely to be swayed by a compelling Facebook ad since that might relieve the boredom.

 

The past year has also seen a huge shift in the online medium for a lot of companies. That means that for you, as the CEO of a Facebook ad agency, there is an even larger clientele, made up of both small and big businesses. Like it or not, business owners have been forced to re-focus their attention and up their online game (which maybe wasn’t that strong before. 

Aside from these, of course, there are all the other great pro points that we already know (social media marketing is the way of the future and all that), but we won’t bore you with them. We just wanted to highlight why running a Facebook ad agency today is even more profitable than it was a year ago.

 

But what about the negatives?

Indeed, there are some downsides to having a Facebook ad agency, like… Insane competition. The Internet has seen a massive rise in freelance work. Today, anyone from anywhere can be a “Facebook Ad Expert”, and many ad agency owners get scared of that. These so-called pros are offering to do ads on the cheap, and maybe at a faster turnaround. And while we’re not looking to bad-mouth these people, it’s crucial to bear in mind that often, the quality of work isn’t as great as it would be for a professional ad agency. So yeah, you’re going to see some insane competition, but that’s just part of the hustle!

 

Another fear people have about Facebook ad agencies is a somewhat mistaken belief that Facebook is on its way out. You might’ve heard it said that “Facebook’s for old people”, with the younger generations using Instagram and Snapchat and so on. Still, at 2.6 billion monthly users, Facebook is actually seeing an increase in popularity right now. 

Right, so we’ve convinced you about starting that ad agency? We knew we would! So let’s see just how to start a Facebook ad agency in some easy, understandable steps!

How to start a Facebook Ad Agency

• Step 0 - Polish your ad campaign first

Would you trust a restaurant owner who won’t eat at their restaurant? We wouldn’t either, which is why it’s vital that before you go out into the world, you work on some sweet ads for your own business first. Remember that the first thing potential clients will do will be to check your online network, so you want them to see a bustling, highly in-demand, and highly attractive page!  This shows them that you know how to start a Facebook ad agency and how to grow a business.

 

• Step 1 - Figure out who you want to work with

Now is a great moment for you to decide what industry you want your ad agency to cater to, exactly. Generally, there are two types of clients in the SEO world, those with high lifetime value and those with low lifetime value.

Basically, the high lifetime value clients are the people who rake in big bucks on one deal. A real estate agent, for example, is an HLV, as is a doctor.

A low lifetime value client is a business that makes a far lesser sum but brings in many clients. A restaurant, for example, would be an LLV. 

A big part of starting a Facebook ad agency is just figuring out if you want to target one group or both. 

Pro Tip: Try to choose clients you are comfortable with because that will shine through your campaigns. The first step to making a great ad is that you believe in the product, so try to steer clear from customers you have a hard time believing. 

But how to find these clients?

Well, while we encourage you to shoot for the moon, try to keep it a little more localized in the very beginning. Reaching out to niche local businesses increase your chances of finding customers. 

Why niche? Because marketing for a real estate agent will be very different from marketing for a restaurant, and trying to do it all at once can give the impression that you’re all over the place. And that’s not something potential clients want to see.

Why local? Because they allow for an in-person approach, which is 10x more preferable to an online one. Working with a local business is easier because it will enable you to understand their potential clientele better. 

Right, so what should I look for in a potential client?

When you’re first learning how to start a Facebook ad agency targeted, say, at restaurants, don’t just randomly approach all restaurants in your area. Do a little background check first, since that will help you narrow down potentially good clients. 

• The right client should have an active Facebook page;
• The right client should have a fairly appealing website;
• The right client should have at least a couple of years of experience;

Why do these things matter so much? Because they show you these businesses already care about making a good impression. As a potential restaurant client, you wouldn’t be too tempted to go there if you couldn’t find them on Facebook, would you? Exactly. And besides, if these people don’t see the importance of having a Facebook page, it’s quite likely they won’t see the value in a Facebook ad agency either! So once you’ve scouted potential local clients, it’s time to move on to the next step…

• Step 2 - The Golden Pitch

So you know who you’re targeting and hopefully why you’re doing it, which means it’s time for the in-person appearance we mentioned earlier. Head on over to their local business, but not before doing some research on them, their products, their brand history, and so on. Just like you would research a company to look good in a job interview, never go to a pitch meeting without a brief history in mind.

Right, so how do you deliver the golden pitch? You don’t because the golden pitch is not actually a pitch. 

Do you know how we talked about insane competition earlier? And what do you think all those other companies do when approaching a brand? They pitch them an offer. This means your potential customers are already sick and tired of some “we can turn you into the next Jeff Bezos” spiel and won’t be too impressed when you hit them with it. 

So instead of strolling in and giving them that non-sense, try to figure out another way to show off your skills. 

What’s the no.1 thing that an ad agency needs to be able to do? Grab attention. So go grab theirs. Don’t use an overly sales-y approach because that usually fails to impress people. 

A cool thing you can do is hit up your local coffee shop and purchase two dozen coffees (or bagels, or donuts, or cookies… you get the picture). Next, go drop your surprise delivery at your potential client’s office/restaurant/gym, along with a little note or business card, so they know who the treat is from. Naturally, you’ll follow this up with a more traditional approach and then move on to your actual sales pitch, but this gets them on your right side and makes them curious about your brand before you even pitch them.

Another great strategy that we love is drafting up a mock ad for them and camping out in front of their business. Or preparing a dozen fliers for their business, and then dropping those. That’ll get people talking, because who did this? Who brought these in? And more importantly, who commissioned them? 

In other words, you want to grab your potential customer’s attention before you move in for the pitch.

Pro Tip: Another good way to get clients is to offer your services for free, at first. Chances are if people have used (and liked) your services for 14-days or even a month for free, they’re quite likely to be willing to pay for them. 

• Step 3 - Figure out your pricing

The next big step in on how to start a Facebook ad agency is figuring out how much you’re going to charge. Ideally, do this before you go hit up any local businesses. On average, a Facebook ad agency will charge more for a high lifetime value client than for a low one.

Always attune your pricing to your client’s projected income. 

Generally, an ad agency should charge between $1,000 and $1,500 a month (per client). If you’re looking at a small, local LLV business, then you might consider toning that down a bit toward $700 to $1,000 a month.

Aside from your client’s reputation, the pricing will also vary depending on your location, your own experience in the business, etc.

• Step 4 - Get your first client to help you

There’s no way around it. The thing that attracts most people to a company is other customers. To get people interested in your new ad agency, you need to show them the results you’ve had with your first client, and you want to do that as swiftly as possible.

Once you’ve closed the deal with your first customer, reach out and see if they’d be willing to do a video testimonial for you. Nothing over the top, just a quick video will do the work stating their name, that of their business, and what a great experience they’ve had working with you. 

Once again, people don’t want to see that you know how to start a Facebook ad agency. They want to see you know what to do with it.

So film this testimonial that you can then use on your own website/social media. 

Pro Tip: Ask your initial client if they can give some referrals. Keep it casual; just “if you can think of anyone who could use this service” works. Business-owners know all sorts of people from all kinds of business areas, and there’s no telling where your next client will come from! 

• Step 5 - Reach out to the next potential customer

Now that you have a testimonial, things should go a lot easier for you, but do follow the same steps as for your first client. If you also managed to get a few referrals from your existing client, reach out to those, and use your connection to your advantage. 

But what about the actual work?

You might’ve noticed that we didn’t mention anything about doing any actual ads for your clients in this guide to how to start a Facebook Ad Agency. That’s because we assume you’re good at what you do. And you should, also.

What you need to remember is people are going to question you. A lot. 

You’ll be meeting a lot of resistance, a lot of doubt, and “I don’t need this” or “can you do this for less money”. Now, that’s where assuming you’re good at what you do comes in. The worst thing you can possibly do right now is negotiating with doubters (or even worse, downplaying your skills). 

You need to display a lot of confidence here because you will meet people who want to get a better deal. If you sense a client is playing with you or trying to short-change you, don’t be afraid to walk away. Because if you are, your clients will feel it, and then they’ll have you in the palm of their hand.  

If they’re not interested, tell them it’s fine and get up to walk away. More often than not, they’ll chase after you, and if they don’t, they probably wouldn’t have made a good client anyway.

How to start a Facebook Ad Agency - Final Thoughts

So we’ve shown you How to start a Facebook Ad Agency. You will need to hustle for a bit. And you will need to show these potential clients your best stuff. Be bold when approaching new clients and never ever doubt your skills. Because if you’re confident you can get excellent results, your clients will be, too! 

What have you learned from our guide on how to start a Facebook ad agency? Anything you’d like to add to the above?