Starting an Advertising Agency Key Terms

When starting an advertising agency, key terms help you focus on success

By A Antonow

Starting an advertising agency can be a daunting task. There are employees to hire, a business to name, clients to acquire, an office to set up and financing to set up, to name just a few tasks the average entrepreneur must face. For the average person starting an advertising agency, there are many choices to make, and these key terms can help focus your energies.

Advertising agency

An advertising agency is a company that helps its clients with communications, marketing and work related to creating and distributing ads.
Try: Marketing Teacher has a detailed guide to advertising agencies that includes an explanation of the components of an agency and the roles an agency plays.

Company structure filing

Filing a company structure involves deciding whether your company will be an LLC, a Sub Chapter S Corporation or another type of business. This type of filing -- usually done with the help of an attorney -- can help limit your liability in the event that your new business encounters legal problems.
Try: Tribble Ad Agency has an explanation of the types of company structures it is possible to select when starting an ad agency business.

Ezines

Ezines are electronic magazines. These publications are very cost-effective to start and many new advertising agencies establish ezines in order to have ad space to sell and have forums where they can promote clients' ads.
Try: StartupBizHub has a comprehensive explanation of ezines and how they can be used to start an advertising agency.

Multi-level marketing (MLM)

Multi-level marketing (MLM) is a form of advertising where employees are trained to sell products for commission. Due to the inexpensive nature of this advertising model, some new advertising companies begin by offering MLM programs.
Try: Today's Funda has a comprehensive explanation of MLM and how it can help entrepreneurs launch an advertising agency.

Advertising agency employees

At the beginning, you may be the only person working at your agency, so you will need to learn how to complete the various jobs. As your company becomes successful, you may need to hire advertising agency employees who will take care of the financial, creative, and administrative tasks.
Try: The American Association of Advertising Agencies has detailed information about every type of advertising agency employee. It is a useful list to review when starting your own advertising agency.

Advertising agency business plan

Before you begin your ad agency, you will need a business plan, which is a document that details your ideas for your company, including information about expenses, expected income and location of your business. You will need your business plan to apply for financing, to set professional goals, and to communicate with potential business partners or investors.
Try: Business-Plan-Made-Easy has a good explanation of what an advertising agency business plan is and what issues need to be considered to create a good plan.