How Much Does It Cost To Start A Branding Agency? (In 2024)
Looking to start a branding agency?
But curious about:
- how much it costs to start a branding agency?
- what are the typical branding agency startup costs?
- or the actual cost of starting branding agencies?
Well, we have the data to prove it, supported by real branding agencies and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a branding agency?
Based on our data reported by actual branding agency founders, the average cost of starting a branding agency is between $100 and $100,000.
Additionally, our data shows that the the median startup costs for a branding agency are around $1.25K.
Remember, though, not all branding agencies are the same - and neither are people's budgets. It's important to distinguish between different levels or types of branding agencies
Real World Examples: How much does it cost to start a branding agency?
We asked real branding agency founders and business owners how much it actually cost to get started?
Here is what they said:
Elva Li
Founder of Elva Li Luxury Branding ($10K/month)
"I started the business with the offer of branding and website design. I offered some free sessions and low-priced services in the beginning in order to build my portfolio."
Elva Li is the founder of ELVA LI Brand.Style.Design, a boutique branding house that specializes in luxury branding and website design for female entrepreneurs.
Mimi Council
Founder of Above 8000 Creative ($10K/month)
"Luckily, we didn’t have to finance anything for this business as we are a service business... This allowed us to not have to put any money into the business - well except for a few hundred dollars for our website."
Mimi and her husband Delaney are the founders of Above 8000 Creative, a creative agency that started in 2017 offering services in graphic design, website design, photography, content creation, and Instagram marketing.
Teju Aluko
Founder of Branperience ($8K/month)
"I got started with about $65 in my bank account... I had spent about $40 of the $65 I had to jump-start my business - the initial capital."
Teju is the founder of Branperience, a full-service brand experience firm that started in 2018 and has seen a yearly revenue increase of 22-37%.
Munir Alsafi
Founder of VixelStudio ($20K/month)
"Within two weeks of buying the domain vixelstudio.com... Purchased a course for $500.00."
Munir is the founder of Vixel Studio, a Web Design and SEO Company in Ottawa that has quickly scaled to manage over 50 clients and generate significant monthly revenue.
Dávid Pásztor
Founder of UX studio ($169K/month)
"To create a company is a bit more expensive. There are lawyers' costs, and you need a minimal amount of financial assets, but having a digital service business that I already started as a contractor, these were easy to manage."
Dávid Pásztor is the founder of UX studio, a user experience design agency based in Budapest, Hungary, that provides a wide variety of UX-related services to clients worldwide.
Catherine Nguyen
Founder of Catherine Nguyen Photography ($8.3K/month)
"For me the biggest challenge was start-up capital. I had just finished studying photography and basically, I did not have any. Fortunately, I had acquired the equipment needed during my time in school and I started working with a real estate photography company called Open Homes Photography. The market was hot, and I shot about 140 homes that summer."
Catherine Nguyen is the founder of Catherine Nguyen Photography, a Raleigh-based advertising and editorial photography business specializing in residential and commercial interior design and architecture.
Laurids Kern
Founder of Indiebrands ($1.3K/month)
"I managed to grab 10 domains that I liked for about $300, and started designing logos for them."
Laurids and David are the founders of Indiebrands, a business that sells company names accompanied by logos and domains, offering branding solutions primarily for indie hackers and startup founders.
Spencer Patterson
Founder of Spencer Patterson ($140K/month)
"Starting this business with just $6,000 from my savings was a risk. Fortunately, the ongoing costs were minimal; initial hosting was under $100 per month, and other expenses totaled at most $500."
Spence Patterson is the founder of a SaaS paywall platform for content creators, launched in 2019, and which grew to generate between $125,000 - $142,000 in Monthly Recurring Revenue.
Aun Ali
Founder of Aun Digital ($20K/month)
"Starting Costs: Office Setup: Rent and setup costs for a small office space in Dubai costed us $10,000. Equipment: Computers, software licenses, and office furniture was purchased for $7,000. Website Development: Initial version of the website was launched under the budget of $8,000. Legal and Licensing Fees: Registering the business in the UAE costed us $5,000. Marketing and Branding: Initial marketing materials and branding efforts were done under the budget $6,000. Total Approximate Starting Costs: $42,000."
Aun Ali is the founder of Aun Digital, a web design company in the UAE that offers a range of digital marketing and IT services.
Kara Brook Brown
Founder of Waxing Kara ($33K/month)
"While I am genuinely unable to outline my costs here and now I can tell you that I spent as little as I possibly could for as long as I could, and did as much of the work that I could on my own."
Kara Brook Brown is the founder of Waxing Kara, a business that creates delicious natural Bee Inspired® food products and skin-loving bath and beauty goods.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful branding agencies that you can learn from.
Starting a branding agency - what you should know:
Starting a branding agency involves navigating various costs which can vary considerably based on decisions you make.
Initial Setup Costs
The initial setup costs can range between $5,000 to $50,000 or more, depending on the scale you want to start. Essential expenses include registering your business ($100 - $500), legal fees ($500 - $3,000), and initial marketing expenses ($1,000 - $5,000). Avoiding lavish office spaces and opting for a home setup or coworking space can save you a significant amount initially.
Office Space and Equipment
Renting office space can be one of your biggest expenses. A small office in a major city might cost between $2,000 to $7,000 per month. Conversely, working from home or choosing a coworking space can reduce your costs dramatically to around $200 to $500 monthly. Additionally, budget for essential equipment—computers, design software, and office furniture—ranging from $3,000 to $10,000.
Staffing Costs
Hiring skilled staff, such as graphic designers and account managers, is crucial but can be costly. Salaries for experienced professionals can range from $50,000 to $100,000 annually per employee. To manage costs, consider starting with freelancers or part-time staff, which may cost between $20 to $75 per hour based on expertise.
Marketing and Networking
Effective marketing is essential for growth. A basic website setup and maintenance could range from $2,000 to $10,000. Additionally, allocate funds for online advertising and network events—these can cost anywhere from $1,000 to $5,000 monthly depending on scale and reach. Leveraging social media and personal networks can also be cost-effective methods to attract initial clients.
By carefully managing these aspects, you can control your expenses and set your branding agency on a path toward sustainable growth.
Potential Costs of Starting a Branding Agency
Starting a branding agency involves various costs that can add up quickly; these include everything from initial setup and tools to ongoing operational expenses.
| Cost Category | Description | Estimated Cost Range |
|---|---|---|
| Business Registration Fees | Legal costs for registering the business and obtaining necessary permits. | $100 - $500 |
| Office Space | Rent for office space or co-working space. | $500 - $2,000 per month |
| Office Supplies | Furniture, stationery, and other office essentials. | $500 - $1,500 |
| Computer & Software | High-quality computers, design software (Adobe Creative Cloud, etc.). | $1,000 - $5,000 |
| Website Development | Costs to design and develop a professional website. | $1,000 - $10,000 |
| Hosting Fees | Monthly or yearly fees for website hosting services. | $10 - $50 per month |
| Marketing & Advertising | Initial costs for advertising and promoting the agency. | $500 - $5,000 |
| Branding Materials | Business cards, company profile, pitch decks. | $200 - $1,000 |
| Professional Services | Legal, accounting, and consultancy fees. | $500 - $3,000 |
| Graphic Design Tools | Additional tools such as Sketch, Figma, etc. | $100 - $500 per year |
| Internet & Utilities | Monthly costs for internet, electricity, water, etc. | $100 - $300 per month |
| Salaries/Wages | Costs for hiring employees or contractors (designers, marketers, etc.). | $3,000 - $15,000 per month |
| Insurance | Business insurance policies (liability, property, etc.). | $500 - $2,000 per year |
| Training & Development | Workshops, courses, and continuous education for employees. | $200 - $2,000 per year |
| Client Management Tools | CRM software to manage client relationships. | $50 - $300 per month |
| Backup and Storage Solutions | Costs for cloud storage services like Google Drive, Dropbox, etc. | $10 - $100 per month |
| Miscellaneous Expenses | Unforeseen expenses or additional small costs. | $200 - $1,000 |
Overall, the initial and ongoing costs of starting a branding agency can vary widely depending on the scale and scope of the business, but a thoughtful budget can help ensure smooth operations and growth.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
