Agency Business Model | Explained

Why an agency business model?

Basically, it means providing a particular service as a company.

There are multiple benefits of being an agency and it has its own pros and cons. Personally, I believe it is one of the best ways for an individual or an expert to grow in a particular field with a good team.

So today in this blog I will tell you everything about the agency business model.

Advantages of an agency model


You may get high ticket clients as you are an expert in that field and gain benefits over individuals you can also take a high level of projects at a time.

Less competition

As you are the only professional or have gained authority you can then compete very well in the market.

You will get very little competition and get long-term targeted clients.

Less cost is required to start

There is a very less initial investment to start the agency especially if you have very good skills in your area.

Deliver high value

As an agency you build a very qualified team around your skills and services which brings high value to the clients.


You can pretty much be profitable from starting as you are dealing with your own rates as long as glands are willing to pay it.

Disadvantages of the agency model


You can scale as you increase clients and have the capacity to handle it so it doesn’t have scales like a product.

But it is not always necessary if you build a model or process where you can expand as your clients grow. It is a very good business to do.

Decrease of clients and services needs

Let’s say you specialize in WordPress development what if wordpress goes down in trend in the future and a new website builder takes place of it then your agency will be in trouble

To avoid this problem you will need to upgrade yourself from time to time and introduce new services as per market.

Components to build a successful agency

Choosing the right service and niche

You have to choose and target a specific client base to get high value for that you have to be very specific at what you are offering so basically and USP of your company

It can be anything it might be speed, quality, or any problem which make you special in your niche

For choosing niche

Personally, I think niche something which you love and have expertise in can be anything like any industry, any particular skill, or even demography.

Make sure it has enough scope of work, not just a small category

Try to find upcoming in trendy niche

Team building

To build an agency the most important thing is building a high-quality team which are ready to accept any challenge prices may vary according to different agencies

In my opinion, these 3 skill sets are important to run any agency.

Marketing team
Sales team
Service team
Some other like Lawyer or CA (they can be part-time or outsourced)

There can be individuals as well as groups of people for a particular team

You can build an in-house or remote team according to your needs.


Try to automate as much as work possible is it reduces times and efforts like:

marketing automation such as automated social media content promotion auto engagement systems and many more

Sales automation you can build templates, automated email follow-ups, etc

Some other automation like team management and communication automation, readymade templates, etc

Feedbacks and testimonials

You have to include testimonials and listen to all the feedback given by your clients. It will help in gaining trust and reputation over time.

How to get high ticket clients

Well, every agency has different methods of getting clients but you have to take an Omnichannel approach in your related field to get valuable clients.

It can be organic as well as paid.

let me explain with an example let’s say I run a short video-making and marketing agency which only focuses on targeting influencers to grow their following.

So where can I find clients?

Social media channels

Obviously, this will be my first choice but it is tricky to choose which social media for me it will be YouTube, Instagram, Facebook mainly but for a B2B agency it can be LinkedIn or a specific Facebook group, etc.

In social media also you can attract clients by giving some free value and content also you can do paid advertisements with targeted ads.

Let’s say I only want Indian Hindi speaking influencers to work with so I have to target metro cities of India

Manual outreach

If I am sure that I want to work with this influencer I can manually outreach them on their email for social media profiles, find their contacts, and start a conversation.

For search outreach, you may have to follow up many times to convince them.

You may find a similar individual or companies that you can target in every field.

SEO or through your own website

I’m a target highly buyers keywords on Google through blogs or advertisements let’s say in my case it can be social media agency in Bangalore or any other city or make content around how shorts video creation and Marketing can increase their conversion

Hope you got my point it mainly depends on the services you are offering and where your client probably can be

Some common tools required to start an agency

All agencies have different requirements but these are some tools required nowadays:


In these modern days, every service provider will need a good website to maintain reputation, gain extra leads and reach out to more and more people.

There are many good website builders available that are easy to manage you can use

Content creation

You may need copies, graphics, videos, etc enter tools that can make it. It will Fast forward content needs and qualities.

Team management tool

You should have clear channels for communication and project deliveries or any team-related work internally. You have to find tools for it according to your business. It can be a single tool as well as a group of tools.


You will need solid CRM software to manage your client’s relationships.

Accounting tools

As an agency, you have to maintain all your invoices, contracts, and other important documents. An accountant may be needed with accounting software.

In my view, these can be some of the basic tools which will be needed to run a professional agency. I have not told any name specifically, it may depend from agency to agency.


This article will be benefited in understanding the agency model mostly freelancers should start agency modal as well

Let me know in comments how you run your agency or are you willing to start it

how to open an agency business?

You can start small and eventually grow as per needs is the best way to open an agency also there is be some upfront cost too

How to register Agency?

Well, Every region and situation has a different method of registering their company. So I recommend getting some advice from your local advisers.

How can an agency be profitable?

It really depends on your skills and how well you can make profits there may be losses too. Make you take every decision carefully as an owner.

What is a remote agency?

It is a completely online agency which means all members work remotely and there are many automation and tools involved. This type of agency has grown nowadays. There are many benefits and disadvantages too for such agencies.

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