My Digital Agency Experience

Recently, some of my friends have started discussing the idea of opening a digital agency. About 10 to 15 years ago, I ran my own digital agency, but it wasn't successful, and I had to close it down. Nevertheless, I gained valuable experience during that time. I've decided to share the lessons I learned from the challenges I faced.

My Journey

I was trying to offer everything — website creation, SEO, technical work — without fully understanding what clients actually needed. But clients don't just want a website or SEO; they want to sell more and grow their business.
Clients often come to you wanting their problems solved, not just a product. Successful agencies build their offers around solving those real problems, not just providing tools.

I also realised that I could serve as a subcontractor for other digital agencies that excelled in holistic marketing solutions. I worked with several talented agencies that provided comprehensive services, including marketing strategies, SEO, and various forms of advertising. I focused solely on technical aspects and operated as a sub-agency. In this scenario, if a client paid 100,000 euros for these services, the agency might take around 20% as profit, leaving 80% for subcontractors like me. However, my earnings were typically around 20% of the total, while I was implementing 80% of the requirements.

Finally, I put all my agency resources into one customer who went bankrupt in 2014. I became bankrupt as well.

However, there are some observations that I noticed.

Know Your Competence, Industry, and Focus

In my opinion, one of the most important things in running an agency is to clearly understand your competence, the industry you want to work in, and your focus. You should offer only the services that you can truly do the best. If you know how to build mobile apps, don't even start working on SAP integrations. You'll probably lose your reputation and money. On a high level, everything looks the same, but your customer needs you because they need a professional in the details. Especially in the vibe-coding era, everybody can vibe-code a solution, but in the details, it would not be the thing that the customer needs.

Customers Don't Know Their Real Needs

It's important to remember that customers often face many challenges and may not fully understand how to address their problems. For instance, if someone who usually travels by train needs to get from point A to point B, they are likely accustomed to taking the train, even if it requires three stopovers, without even thinking to check for a direct bus. I made the mistake of not understanding the real need. I would sell three train tickets instead of realising they needed a bus and selling a bus ticket.

Observing Successful Agencies

While running my agency, I worked with and observed other digital agencies that were much more successful.

Some agencies specialised in just a few industries — for example, they only worked with car dealers, banks, or real estate companies. That narrow focus helped them understand their clients' needs much better. They could speak the same business language and deliver tailored solutions.

Others specialised not by industry, but by service area — some focused purely on marketing and lead generation, others built marketplaces or integrations. The key was always the same: they didn't try to do everything. They stayed within their zone of expertise.

Furthermore, some agencies concentrated on specific segments. They might focus solely on marketing, building particular types of websites, developing marketplaces, or providing integration services. It's not just about which industry to target but also about identifying a niche within the competitive landscape that aligns with your strengths.

So, focus on offering clients only the services you can deliver effectively.

Of course, there are exceptions; larger agencies like Ajima or Lebedev can work across multiple sectors due to their vast resources. However, for smaller agencies without significant staff and budgets, this approach can be challenging.

Focus and Specialisation Are Everything

Looking back, I can say that focus and specialisation play a crucial role in success. Whether it's choosing the right industry or sticking to the kind of services your team does best, narrowing your scope helps you stand out and deliver real value.

If I could give just one piece of advice to anyone starting their agency, it would be this: know your strengths, pick your focus, and build around it.