How to Create a Facebook Ad Agency

Running Facebook advertisements is our top side hustle selection for a variety of reasons: it's flexible, easy to get started with, and pays well for the job you perform.

How to Create a Facebook Ad Agency

Running Facebook advertisements is our top side hustle selection for a variety of reasons: it's flexible, easy to get started with, and pays well for the job you perform. It is, however, scalable. Yes, you can turn this side hustle into a full-time agency that allows you to work from home while earning a great living.

The truth is that starting a Facebook ad agency is not something that can be accomplished quickly.

Developing your abilities, expanding your customer list, and learning how to run a business all require time. However, this post will lead you to answer the question of how to start a Facebook ad agency through the steps:

  • Step 1: Get good at running Facebook ads
  • Step 2: Identify your niche
  • Step 3: Determine your pricing
  • Step 4: Find your first client
  • Step 5: Start scaling your Facebook ad agency
  • Step 6: Work on the day-to-day management of your agency

Here’s how to create a Facebook ad agency in 6 steps

Step 1: Get good at running Facebook ads

You may have already learned how to run Facebook advertisements if you searched for an article on how to start an ad agency – which is great. However, what will set you apart from the rest of the ad managers out there is your ability to provide additional services to ensure that your clients receive the most bang for their buck.

Being that learning how to run Facebook ads is the most important, let’s walk through that one…

Facebook ads start with a marketing objective, which is what the goal is for your ads.

  • Awareness: You’re generating interest
  • Consideration: Get people to start thinking about your business and interested in learning more
  • Conversion: You are pushing people closer towards buying your products and services

After you've determined your goal, you'll begin targeting your audience. This can be based on their location (which is very significant for brick-and-mortar businesses), demographic data, and interests.

Understanding your client's customer base is key to targeting the proper audience. Who is a typical customer for them? What do they enjoy doing? What are their ages? Do your homework, but if you have any concerns, speak with your client.

Then there's the advertisement. A captivating message, high-quality photographs, the business name, and social information, and a call to action are all part of creating a Facebook ad (CTA).

The next stage is to determine your ad's budget, which will entail some collaboration with your client. Some companies can afford to spend more than others, while others can afford to spend but don't want to, and it's your responsibility to advise them.

The truth is that the more money you spend, the more people will view your advertisements. Your customers should spend at least $15 every day. It's a waste of time and money to do anything less.

Finally, a professional Facebook ad agency will be able to optimize advertising to increase its effectiveness. Change one aspect of your client's ad — the image, the wording, the offer, etc. Only make that one change, and then divide your ad budget between the original and the altered versions.

Keep an eye on Ads Manager to see who has the lowest CPC (cost per click), as this is usually the victor. You can experiment with different variations until you think you've nailed it, but just change one thing at a time.

The next step is to educate yourself on how to create landing pages and sales funnels. This allows your Facebook ad clients to put their new leads to good use.

Step 2: Identify your niche

You should concentrate on little enterprises rather than large corporations. Big companies already have marketing departments, and if they don't, they can outsource to a huge, well-known firm. I'm not trying to downplay the fantastic agency you're building, but you're just not quite there yet.

So you're targeting small business owners, but which ones?

There are numerous types of businesses that might benefit from Facebook advertisements. Gyms, bookstores, home improvement stores, restaurants, markets, apparel stores, service-based enterprises, salons, and real estate agents are just a few of the options.

You can choose a specialization based on your interests, work experience, education, and other factors. Knowing the jargon, the types of consumers you're after, and simply knowing individuals in the field can all help you develop your business.

But here's the thing: if you're only interested in one specialty, especially in the beginning, you may limit your growth.

Is there, however, enough massage studios to start a Facebook ad agency? Most likely not. Natural food stores, yoga studios, wellness coaches, acupuncturists, wellness retreats, spas, juice bars, and other health and wellness businesses might be added to the mix.

Being hyper-focused, in the beginning, inhibits you from seeing the potential around you, and it also puts you in danger if the industry you've built your company around suffers a setback. COVID, for example, has had a significant impact on the tourism industry.

It can assist you to continue in business if you can run ads for a variety of small businesses.

Step 3: Determine your pricing

You can charge your consumers anywhere from $1,000 to $2,000 each month, with $1,500 being the norm. People who charge more typically have more experience or are more confident in asking for what the service is truly worth. Yes, it's worth $2,000 per month, but fresh new ad managers might be hesitant to ask for that much.

If you're performing additional work for your clients, such as email marketing, copywriting, or social media management, you can charge more than $2,000 per month.

Step 4: Find your first client

You only need one client to get started. Sure, you'll go large and extend beyond this one, but the truth is that one is all you need to get started. So, how do you go about finding your first client?

Here’s where you should start:

  • Your inner circle: These are people you have personal connections with. Maybe old work contacts, people you know from college, your friends, family, and their friends and family. Reach out to people and let them know that you’re starting to run ads and that you’d love some referrals.
  • Local Chamber of Commerce: A chamber of commerce is an organization designed to promote businesses in a community. As a small business owner yourself, you can get involved and network with other businesses in your area.
  • Reach out to businesses in your niche. If there is a business owner in your niche that you’d love to work with – your favorite restaurant, the gym you work out at, where you get your haircut – send them an email and explain how you can help them grow their business with Facebook ads. Don’t forget to follow up a week or so later with another email.

But, because I'm just getting started, will anyone be willing to pay me to run Facebook ads?

Without a doubt!

Sure, it's scary to put yourself out there knowing you can get a negative response, but that's a fact you'll have to accept. While not every company will want to pay someone to run advertising, take the time to listen to them and figure out why. It assists you in improving your ability to sell yourself and your services.

Step 5: Start scaling your Facebook ad agency

There are three things you must concentrate on right now. They don't have to be completed all at once, but they are equally important, so work on them for an hour or two each day.

1. Ask your first client for a testimonial

Your client should be willing to discuss their expertise if you've been an attentive advertisements manager and have brought in leads. Plus, your client understands that word of mouth is a vital tool for establishing a firm.

You can request a video testimony or a written testimonial, both of which can be filmed on a smartphone.

Try to acquire a photo of the business owner if they do a written one. Putting a face to that voice can aid in the development of a relationship with potential clients.

2. Start a website

Your website doesn’t have to be anything fancy, but it should include:

  • A little bit about who you are
  • How you can help business owners through the services you offer
  • Your contact information

3. Start an email list

A free plug-in contact form is available on a WordPress site. Potential clients can fill out this form, which sends you an email and allows you to capture their email addresses. Even if they don't end up working with you, save their email address.

You should also look for an email service provider (ESP) that offers list management features to assist you to gather and deliver emails to anyone on your mailing list.

ConvertKit is a great tool with a lot of functionality, and it's free for lists with less than 1,000 members.

Another alternative is MailChimp, which has the advantage of being free if you have fewer than 2,000 subscribers.

Set up an opt-in form on your website to encourage people to join your email list once you've got their ESP. You'll have more success if you present them with an offer, such as "10 Reasons Facebook Ads Will Work for Your Business."

While not everyone who joins your email list will become a client, it can help you expand your client roster by reminding people who you are and what your Facebook ad agency can do for them.

To do this, get on a schedule of sending emails out every week or two. You can share all kinds of things in your emails:

  • An ad that did well for one of your clients
  • A new digital marketing tip you learned and can’t wait to share
  • Mistakes that turned into successes

Catch them with a great email subject line, be genuine, and engage with your list.

Step 6: Work on the day-to-day management of your agency

The final step in learning how to start a Facebook ad agency is to stay on top of it. Sure, this is self-evident, but there is a learning curve if you're new to entrepreneurship. You've become accustomed to being told what to do, and now you're left to your own devices.

Find tools that help you run your business

Asana is a project management tool that we use to run this business. It’s great for teams or individuals, and you can use it to create a schedule and build out ads for your clients. Here are a few more options:

  • Trello is another really popular project management tool
  • Dropbox is good for storing files
  • Loom is something we use for recording videos – sometimes helpful when you’re trying to explain something to one of your Facebook ad clients
  • CloudApp does screen recordings, screengrabs, and more
  • Slack is a way for teams to keep in touch with one another – keep this in mind as your agency grows

What’s nice is that many of these tools are free for the purposes you’re using them for, and if they’re not free, some have free trials, so you can test them out before you decide which you want to use.

Create a system that can be duplicated

Okay, this one is huge, and it can take a little time to nail down. See, as you begin taking on more clients and creating more ads, you’ll want to figure out a system that you can use over and over again. This not only increases your efficiency but will also help when you’re ready to outsource work (more on this in a second).

Here’s how you’re going to create a system for your Facebook ad agency:

  • Identify all the things you do to run your business. This is how you find clients, your onboarding process, creating ads, billing clients, answering emails, handling your business taxes, etc.
  • Break each activity down. What software are you using for each task? Is there anyone else involved? What are the exact steps you take to complete each activity?
  • Find the friction and eliminate it. Are you wasting time on something? Are you using the right tools? Are there unnecessary steps? Are your strategies bringing in results? You are taking a critical look at what you’re doing and whether or not it’s working. Make some theories about what is and isn’t working, and then brainstorm ways to improve your system.
  • Test your new system. Spend some time trying your new system – give it a good chance – and keep track of how you’re doing. Remember it takes time to get used to something new.
  • Evaluate and improve. Did your new system meet your expectations? Are you being more productive? Has it increased your leads? Are your Facebook ad clients seeing better results? If it’s not working, then tweak it and try again.

Once you’ve found something that works, you’re going to work smarter.

Outsource when it’s time

Every new business owner passes through a period where they need to outsource but is hesitant to do so for a variety of reasons. It all boils down to money and the belief that no one can do your job as well as you can. This is why your system is so valuable: you've designed a system that can be duplicated.

However, outsourcing typically allows you to concentrate your energies on what you do best, which is running Facebook advertisements! Hire a virtual assistant to manage your inbox and handle your billing. Employ the services of an accountant to prepare your taxes. When you're ready, hire someone to help you run ads.

You can also employ professionals in other fields to help you with tasks that you aren't very good at. That's why, for example, we have a site designer, SEO expert, and copywriter who we outsource. They're better than we are, which helps us build a more valued company overall.

Checklist to Create Facebook Ad Agency

  • So you have decided what you want to do with your life. You are going to create an FB ad agency that focuses on the needs of your clients and brings in passive income for yourself.
  • Identify the skills you have that you can use to create a passive income on Facebook
  • Evaluate your business needs and consider why it makes sense to outsource
  • Work on launching an FB ad agency while outsourcing parts of the business
  • Create a system for managing your business activities so they can be duplicated by others
  • Now all you have to do is get started!

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Benefits of creating a Facebook Ad Agency

  • It's a great way to make money

Whether or not you decide to contact your clients yourself, employing FB ads is an effective and valuable way to make money.

The trick in creating a successful Facebook ad agency is in understanding the needs and wants of your clients and knowing how to best use FB ads for them.

  • It's also a good way to increase your visibility and business

Regardless of whether or not you decide to take on clients yourself, creating new ads for existing clients will allow you to promote yourself as the FB ad agency that helped them create an effective campaign.

Promoting your platform as a Facebook ad agency can help give you more status and credibility. This is important if you hope to branch out and work with bigger clients later on.

  • It's a step towards building your agency and brand

By implementing systems and outsourcing where appropriate, you're taking the steps necessary to build an FB ad agency that can run without you 24/7.

As your business grows, you'll want to keep looking at new strategies and growing as a business, and by creating a Facebook ad agency, you'll be able to focus your time on more important things.

  • There are tax benefits

You'll want to consult the advice of an accountant, but if you're looking for a business that can generate passive income, creating a FB ad agency is certainly one way to give it a go.

As your FB ads bring in money for clients, this can be spent on things like your rent or other bills. You can even hire an accountant to deal with your FB ad revenue in the background.

Many people want to start a Facebook ad agency but don't know where to begin. The internet is full of articles about how to create Facebook ads for clients, but not so much information on how to set up an actual agency! Through this article, I hope to help you take the first steps in creating a FB ad agency.

Conclusion

As you can see, creating a FB ad agency is not incredibly hard and there are many benefits to doing so. By taking the steps outlined in this article, you'll be able to get your business kick-started in no time!

Right now the market is ripe for an ad agency that focuses specifically on FB ads. The difficult part lies in creating ads that produce results for your clients, but once you're able to do that, you'll be set up for success!

I hope this article has helped you understand what it takes to create a Facebook ad agency and how beneficial it can be for you and your clients.