Starting a marketing agency is exciting, but it’s also tough. Many new founders struggle with where to begin and how to structure a marketing agency. You need the right tools, legal setup, and a plan to manage finances. Then, there’s the challenge of finding clients and growing your team.
With years of experience building successful agencies, Slam Media Lab (Slam) understands the struggles new agency owners face. We’ve already been through long hours, confusing processes, and a steep learning curve. In three years, we scaled Slam to generate $2M in revenue.
How to Start an Agency is a complete step-by-step guide for running your agency, so you don’t have to figure it all out on your own. Instead of hunting down resources and piecing everything together, you get a proven blueprint that walks you through every step, with templates and processes. Within our first three months of operations, we landed 5 clients.
In this article, we share tips on how to structure your marketing agency, provide examples of different agency structures, and introduce you to our course, which makes the entire process smoother and more manageable. You’ll also learn how to structure your agency to deal with challenges, as well as how to structure your digital marketing team.
How to Structure a Marketing Agency: 5 Different Structures
You need a clear structure to keep things organized. Whether you’re managing a large team or a smaller group, having a well-defined structure ensures accountability and smooth operations. Depending on the size, service offerings, and business goals, different agency structures offer unique advantages. Here’s a guide to the most common structures and when to use them:
- Hierarchical (Traditional) Structure
- Pod (Project-Based) Structure
- Matrix Structure
- Flat (Horizontal) Structure
- Freelance/Collective Structure
Hierarchical (Traditional) Structure
The traditional hierarchical structure is common in large agencies offering a broad range of services. A clear top-down chain of command has well-defined roles, and decision-making flows from the top executive down through multiple levels of management.
- Pros - Clear roles and responsibilities, high accountability, specialization within departments, and ease of scaling as the agency grows.
- Cons - Risk of siloed teams, slow decision-making, and limited flexibility in responding to changes or innovation.
Best for: Large agencies with 200 or more employees requiring distinct functional creative, digital marketing, and strategy teams like Pentagram or TBWA Chiat Day.
Pod (Project-Based) Structure
Small cross-functional teams, or "pods," work with specific clients or projects. Each pod is self-sufficient, with team members from various disciplines working closely together.
- Pros - Strong focus on client needs, increased collaboration, faster decision-making, and higher employee satisfaction.
- Cons - Difficult to scale without sacrificing quality, potential siloing between pods, and resource strain if one pod loses team members.
Best for: Mid-sized and large agencies offering clients a wide range of services for each project.
Matrix Structure
A Matrix structure is a hybrid model that combines elements of hierarchical and pod structures. Employees report to both functional managers and project leaders, allowing them to switch between projects while maintaining a home department.
- Pros - Flexibility to shift resources, enhanced communication across teams, and opportunities for cross-functional development.
- Cons - Complex reporting structure, increased management workload, and potential confusion for clients with multiple points of contact.
Best for: Agencies needing flexibility to juggle multiple projects while maintaining a strong department-based organization.
Flat (Horizontal) Structure
In a flat structure, middle management layers are minimal, and decision-making is decentralized. Employees have a high degree of autonomy and responsibility.
- Pros - Encourages collaboration, innovation, and fast response to client needs, while giving employees greater control over their work.
- Cons - Limited specialization, harder to scale, and potential confusion around roles and responsibilities.
Best for: Small, agile agencies or those with a highly collaborative culture focused on equality and innovation.
Freelance/Collective Structure
This structure consists of a network of freelancers or independent contractors who come together for specific projects. It offers extreme flexibility, allowing agencies to scale up or down as needed.
- Pros - Easy to scale, adaptable to specific project needs, and access to a wide variety of expertise.
- Cons - Less cohesion between teams, challenges in maintaining consistency, and more complex project management.
Best for: Agencies that handle a diverse range of short-term projects or those seeking to operate with minimal in-house staff. At Slam, we started this way. We figured out when we needed to hire full-time by working with freelancers first to understand our needs.
How to Structure a Marketing Agency to Deal with Challenges
Starting a marketing agency is exciting, but the path to success is full of challenges. As you grow, your tasks multiply. Balancing client demands with internal processes, managing workloads, and staying competitive requires constant attention. Here are some common challenges marketing agencies face when figuring out how to structure a marketing agency.
- Acquiring and Retaining Talent
- Finding Your Niche
- Scaling and Growing
- Managing Workloads and Deadlines
- Standing Apart from the Competition
- Choosing the Right Structure
- Tax Obligations and Legal Requirements
Structuring your agency so it can be adaptive is key to keeping your agency relevant. Slam’s How to Start a Digital Marketing Agency walks you through all the steps on how to structure a marketing agency in a saturated market.
Acquiring and Retaining Talent
Attracting talent can be challenging, especially if your agency is in its early stages. At Slam, we recommend looking for freelancers in places like Upwork and LinkedIn Jobs. You might consider hiring internationally through websites like Deel.com that help manage compliance for global employment.
Finding Your Niche
You can’t be everything to everyone. We would not recommend starting as a generalist unless you have strong skills in all those areas. Specializing helps you be remembered by your client. Are you great at design? Then, you’re the go-to design agency. Here are some of the resources we’ve created for niche agencies:
- How to Start an SMMA Agency
- How to Start a Design Agency
- How to Start a Social Media Marketing Agency
- How to Start a PR Agency
- How to Start A Google Ads Agency
Scaling and Growing
Scaling and growing your agency requires refining your internal operations and perfecting your client-facing experience. To scale successfully, you need to polish your pitch and present a well-organized front. Clients want to feel confident that your agency has the means to handle their needs. Invest in tools that streamline communication, project management, and client onboarding to maintain the high standards that got you noticed in the first place.
Make sure that each new client’s onboarding experience is smooth. Your organization will stand out if it has clear processes from the first interaction to project execution. The pitching phase is key here. Showcase your competitive pricing, niche expertise, and past results to make a further impact. The more organized and efficient your agency appears, the more trust you build.
Managing Workloads and Deadlines
With clear processes, juggling multiple projects and deadlines can quickly become manageable. A strong project management system is essential. A tool like Notion and a set of guidelines for how your team structure works will keep everyone on the same page. Project management systems also help you avoid missed deadlines and last-minute panic.
Notion is a project management system that keeps your projects organized and team members on the same page. Keep track of wikis, projects, tasks, and collaborate with team members. Notion is the all-in-one platform to plan, organize, and collaborate on projects for your marketing agency.
Interested in getting your company wiki started faster? Check out our Notion Wiki Template. It’s exactly what we use for our operations, from onboarding our clients to managing tasks!
<EMBED NOTION WIKI>
Standing Apart from the Competition
The US has over 54,000 digital marketing agencies, so the competition is not scarce. The marketing world is saturated with agencies offering similar services. So, how do you make your agency stand out? This is where your niche, approach, and results come into play.
To stand out, new agencies need an exceptional pitch that speaks directly to client needs. A strong pitch highlights how your services provide solutions that competitors miss. Offer competitive pricing with a unique value proposition to show clients that you deliver more for their investment.
Specializing in a niche market gives you an edge to position your agency as an expert in that area. Remember that your website is one of your most powerful advertising assets. Finally, focus on delivering measurable results. Show clients the numbers in leads generated, traffic boosted, or conversions increased because nothing speaks louder than proven success.
Choosing the Right Legal Structure
Choosing the right business structure, whether it’s a sole proprietorship, LLC, or S-Corp, can feel daunting but is crucial for your agency’s success. The decision affects everything from your taxes to your legal protection. It’s a good idea to consult with a lawyer or financial advisor to understand how to structure a marketing agency legally in terms of liability and long-term growth. Slam’s agency starter course covers all the aspects that go into making this decision so you can make an informed choice.
Tax Obligations and Legal Requirements
There are forms to fill out, deadlines to meet, and rules to follow. On top of that, regulations change depending on where you're operating. It’s easy to make a mistake like forgetting to register your business or missing a tax deadline that can cost you time and money. We highly recommend working with a CPA once your numbers become a bit more complicated.
The Slam Agency Starter Course for New Agency Owners
Starting an agency can feel like trying to solve a puzzle without all the pieces. Slam’s agency starter course gives you everything you need to launch your new agency. From the moment you log in, you’ll have access to an organized collection of tools, templates, and guides to simplify every stage of building your agency.
No more jumping between scattered resources. The course includes downloadable materials that cover key topics like client acquisition, project management, financial planning, and how to structure a marketing agency. The user-friendly platform makes it easy to track your progress and revisit information whenever you need a refresher.
Instead of piecing together advice from blogs, forums, and trial and error, you can follow a clear, structured path toward setting up a successful agency. The traditional route often leaves new owners overwhelmed and uncertain about which steps to take next. With the Slam agency starter course, you get a complete roadmap that guides you from idea to launch without missing any critical details.
The course teaches you how to set up your company legally, find your niche, and land your first clients. You learn how to write winning proposals and price your services. We show you how to leverage AI tools to scale your business and automate processes. By the end of the course, you’ll know how to position your agency for launch day.
How to Structure a Digital Marketing Agency Team
Building a successful digital marketing agency starts with the right team structure and roles. Here’s how to structure a marketing agency team for maximum efficiency and impact.
- Leadership/Management Team
- Account Managers/Account Executives
- Project Managers
- Digital Strategists
- SEO Specialists
- Graphic Designers/Art Directors
- Copywriters/Content Writers
- Social Media Managers
- Email Marketing Specialists
- Analytics and Data Specialists
- Web Developers/Front-End Developers
- Marketing Automation Specialists
- Accountants/Finance Managers
- Legal Advisors
Leadership/Management Team
At the top, the leadership team is responsible for setting the overall vision and strategy. You make decisions that guide the direction of the agency. Leadership shapes the company culture and sets the tone for how the marketing agency grows.
Account Managers/Account Executives
Account managers are the bridge between the agency and its clients. They’re responsible for managing client relationships, gathering project requirements, and ensuring that client needs are met on time and within budget. They also act as the voice of the client, ensuring that the internal team understands client expectations.
Project Managers
Once a client project is underway, project managers handle the details. Their job is to plan, execute, and close projects by managing timelines, resources, and communication. They work across all departments to make sure everything runs smoothly, without delays or unnecessary stress.
Digital Strategists
Digital strategists are responsible for leading successful marketing campaigns. They plan out campaigns, identify target audiences, and execute strategies that align with client goals. Audience development ensures that each campaign reaches the right people. Digital strategists also execute campaigns according to plan. Learn more about how to market a marketing agency.
SEO Specialists
SEO specialists focus on improving clients' search engine rankings through both on-page and off-page tactics. They work closely with content creators and web developers to ensure websites are optimized for search engines, driving organic traffic and improving visibility in search results. Slam’s SEO services include on-page optimization, local SEO, keyword research, and strategy that drive outcomes for your online business.
Graphic Designers/Art Directors
Focus on roles that not only drive operations but also create powerful brand assets that engage and convert your audience. For graphic designers and art directors, their work is about more than aesthetics. You want visuals that tell your brand's story and drive engagement.
Content Writers/Strategists
Content writers and strategists handle everything from blogs and social media posts to website copy and ad text. They craft messages that resonate with the target audience, supporting your SEO efforts and broader marketing goals.
Social Media Managers
Social media managers are responsible for a brand’s voice on social platforms. They develop strategies, create content, manage communities, and run ad campaigns to boost engagement and increase brand awareness. They keep a finger on the pulse of social trends and ensure the agency stays relevant.
Email Marketing Specialists
Email marketing specialists focus on nurturing leads and driving conversions through targeted email campaigns. They manage subscriber lists, design workflows, and create content that moves recipients through the sales funnel while monitoring performance to improve future campaigns.
Analytics and Data Specialists
Analytics and data specialists track key metrics, analyze campaign performance, and provide insights to refine digital marketing strategies. They help teams make data-driven decisions that optimize results and improve ROI.
Web Developers/Front-End Developers
Website and Webflow developers build and maintain web assets, ensuring they’re functional, user-friendly, and optimized for performance. Front-end developers focus on the user experience, making sure the website works smoothly and looks professional.
Marketing Automation Specialists
Marketing automation specialists are responsible for managing automation tools that streamline marketing efforts. From CRM integration to lead nurturing workflows, they ensure that everything is automated, efficient, and aligned with your goals.
Accountants/Finance Managers
Accountants and finance managers handle everything from invoicing and payroll to financial reporting. They make sure the agency stays profitable and compliant with tax regulations, while also keeping an eye on budgeting and cash flow.
Legal Advisors
Legal support you with contracts, compliance, and other legal issues. They help protect the agency from risk, ensuring that all agreements and operations are legally sound.
Tips to Start Structuring Your Team as a New Agency
When staffing your marketing agency as a new owner, prioritize roles that drive immediate value while setting a foundation for growth. Here’s how to structure a marketing agency in the early stages.
Start lean and prioritize key roles in the early stages. You don’t want the size of your team to be too large or too small. Focus on hiring for roles that can handle multiple responsibilities. For example:
- Digital Strategist/Project Manager - A dual role combining strategy with project oversight. This person can manage client campaigns, monitor project timelines, and communicate with clients.
- SEO Specialist/Content Writer - Combining content creation and SEO expertise ensures you have a strong digital presence. This individual can optimize content and boost organic traffic.
Leverage freelancers and contractors to maintain flexibility and keep costs down for roles like graphic design, web development, and copywriting. You can scale up or down as project demands shift, avoiding the burden of full-time salaries before you're ready.
Outsource non-core functions for roles like legal and accounting. As the agency grows, you can transition these roles in-house. But initially, it's more efficient to contract professionals on a part-time or as-needed basis.
As your client base expands, you can begin to specialize your teams by adding specific roles such as social media managers, marketing automation specialists, and analytics experts. Prioritize hiring for roles that address current bottlenecks or opportunities, ensuring that each new hire contributes to increased agency efficiency and client satisfaction.
Launch Your Startup with the Slam Agency Starter Course
Slam’s course provides a detailed roadmap for building your agency, including how to structure a marketing agency for long-term success. Our plug-and-play templates streamline your agency's workflows. These templates ensure you set up efficient internal processes, particularly when you’re scaling.
The legal & operational setup (Module 9) provides step-by-step guidance on forming your agency legally, for a compliant, scalable business. The course also focuses on building the right team around your niche with tips on which roles to hire first based on your agency's size and services.
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