How to Start a Successful Facebook Ad Agency in 3 Steps

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How to Start a Successful Facebook Ad Agency in 3 Steps

Social media sites like Facebook can be a powerful tool for businesses to advertise their products and services. The only problem is that many businesses do not have the time to learn how to really harness the potential advertising power of this social media platform.

That is where you come in.

If you are looking for a side hustle that is flexible, in-demand, and inexpensive to start, then you may have found your fit in a Facebook ad agency. You don’t even have to be a marketing whiz to start one! As long as you are willing to put in the time and effort to learn how to effectively run a Facebook ad account and appeal to a potential client, you can certainly run this type of digital marketing business.

Ready? Keep scrolling for our guide on how to start a Facebook ad agency.

Step 1: Do Your Research

What Does a Facebook Ad Agency Do?

Essentially, a Facebook ad agency creates and manages Facebook advertising on behalf of other businesses. The ads aren’t necessarily limited to just Facebook, as they can also be posted on Messenger, Instagram, Audience Network, or all of these at the same time.

All of the details surrounding running Facebook ads are beyond the scope of this article, but if you want a more detailed overview on how to create Facebook ads, check out Create Facebook Ads on Facebook Blueprint.

Before taking on any clients, you will want to make sure you know all of the ins and outs of Facebook advertising and running ads, so be sure to thoroughly do your research. There may not be an official college course on the subject, but between the Facebook website and other informational blogs out there, if you are willing to put in the time and effort, you should be able to get a pretty good idea of what goes into a successful Facebook advertising campaign.

You may also want to look into how to tailor these ads to work best for different types of businesses, target audiences, and their objectives. Facebook advertising campaign options vary for each custom audience you cater to as a Facebook ads manager.

Do I Need Any Licenses or Permits to Open a Facebook Ad Agency?

To operate your Facebook campaign legally, you will likely need a business license as a Facebook ads manager, but the rules surrounding this can vary depending on where you plan on operating your Facebook ad and marketing agency.

You may also require other permits and licenses, but this again depends on your state and/or county, so get in touch with your local county clerk or other government officials to figure out exactly what is necessary in your case.

What Are Some Skills or Experiences That Will Help You Build a Successful Facebook Ad Agency?

Facebook Ads logo displayed on mobile phone

Two of the most important things you will need to know is how to work with Facebook Ad Manager and Facebook Pixel. Learn everything you can about these programs to make the most out of them for your clients.

It is also helpful if you have some other advertising and marketing skills, though you certainly don’t have to go out and get a degree! However, if you know something about sales funnels, have some copywriting skills, and know about some of the details surrounding effective ads, like ad size, then you will be off to a great start.

Finally, it will be extremely helpful if you have good customer service and sales skills. To get clients, you will need to sell yourself and your agency to get them to trust you with their advertising needs. Try coming up with a good sales pitch to land clients, and then work on keeping them by being knowledgeable, professional, and good at solving problems.

Step 2: Figure Out Your Costs

What Are the Startup Costs for a Facebook Ad Agency?

There are very few startup costs for a Facebook ad agency. You will, of course, need a place to work, a decent computer, internet connection, website and…that is about it in terms of the absolute essentials! If you are looking to cut costs when you are first starting, you could easily run your Facebook ad agency from home for free, but you may consider renting out an office space if you could use the extra room.

If you are working out of your house, you probably already have a computer and internet connection to use for your business. The next thing you will want to invest in is a website and domain for your business. You need somewhere for people to contact you and learn more about your agency and its services. From there, you may then want to look into a project management tool to help build ads and keep track of your schedule.

Finally, while Facebook applications like Facebook Business Manager, Ad Manager, and Pixel are free, you may need a bit of extra money to spend on Facebook ads when you are first getting started. Before landing any clients, you may want to test your skills by offering free ad campaigns for those willing to take a chance on your new agency.

Facebook only requires you to spend about $1.00 per day for advertising, so a couple of free ad campaigns will certainly not be costing you thousands of dollars. This will also allow you to test out different kinds of ads to see which are the most effective before you start investing more into campaigns, so it can be a valuable part of the process.

What Are the Ongoing Expenses for a Facebook Ad Agency?

Since the only piece of physical equipment you need to run a Facebook ad agency is really just a computer (and office space, if applicable), then most of your ongoing expenses will have to do with your online presence. You will need to keep up with your Internet bills, domain and website fees, and, most importantly, your Facebook ads.

Again, you only have to spend about a dollar a day to keep your ads going, but you will likely want to spend much more than this to effectively run an ad campaign for clients. The more you spend, the more likely people will see the ads, but you will need to make sure you stay within your budget. This is why it is so important to keep an eye on your different ads and tweak them as needed to see which ones are the most effective and worth your investment.

Step 3: Make a Profit

How Much is the Facebook Ad Industry Worth?

The social media advertising market, in general, is worth about $138.2 billion worldwide in 2021.

What is the Growth Potential for the Facebook Ad Industry?

The growth potential for social media advertising is projected to grow at a CAGR of 7.17% by 2025. If it does, it will be worth about $182.3 billion worldwide by 2025.

How Do You Market a Facebook Ad Agency?

Creating ad on facebook page on laptop

Finding clients can be the most difficult part of starting a Facebook ad agency. The first step is identifying your target market, which will likely be small businesses, as big businesses typically already have a marketing team in place.

Once you have determined your target audience, it is time to get out there and find some clients. Reach out to the small businesses you already know and have a relationship with, see if any friends or relatives know of anyone who would benefit from your agency, and, if all else fails, do some cold calling, emailing, and knocking on the doors of other small businesses. You could even join your local Chamber of Commerce to network with other businesses in your area. Many people like to support local small businesses when they can, so shopping around for potential clients locally may be your best option when first starting out.

Though it can be intimidating, do not be afraid to put yourself out there! Unfortunately, this is where a lot of people fail at this type of work, as they are not willing to put in the time and effort it takes to land potential clients.

How Much Should I Charge for Facebook Ads?

A lot of Facebook ad agencies charge clients a monthly retainer between $1000-$2000 per month. This cost includes both the price of running the ads on Facebook and your agency’s fee. What you end up taking home as profit really depends on how much you spend on the ad campaigns. If you are charging this much, you certainly aren’t going to be spending the minimum of $1 per day!

For example, if you are charging your clients $1500 a month, a more reasonable amount to spend on social media advertising may be $500-$800, with the rest going into your pocket.

Any Other Tips for Jump Starting a Facebook Ad Agency?

Sure! Here are some other tips to help get your Facebook ad agency started:

  • Get customer testimonials. Consider waiving your agency fee in exchange for customer testimonials. The client would still pay for the ads, but you will get the testimonial and experience instead of money in return. You may also land a long-term client this way!
  • Create your own Facebook ad campaign for your agency. This will allow potential clients to see the kind of work you do while letting you try out different types of ads.
  • If you don’t want to or cannot get out in the physical world to find clients, try establishing yourself more in the digital world. Make social media pages for your agency, start an email list, join online groups and discussions, and create a blog.
  • Be sure to check out our other posts for more ways to start your side hustle!

ABOUT THE AUTHOR

Matt Williams is a partner at Side Hustle Startup, a company that helps entrepreneurs create and build their own side hustles. Matt has created brands for himself in the past and loves to help others do the same. He's married to Amy, who he met while attending college in Illinois. They have one dog named Leonard.
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Matt Williams is a partner at Side Hustle Startup, a company that helps entrepreneurs create and build their own side hustles. Matt has created brands for himself in the past and loves to help others do the same. He's married to Amy, who he met while attending college in Illinois. They have one dog named Leonard.
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