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ServiceMediumUnder £500First sale: Weeks

SMS Marketing Agency

Build SMS revenue flows on Attentive or Postscript for DTC

Build SMS revenue flows on Attentive or Postscript for DTC.

As the founder of an SMS marketing agency, your day-to-day work will revolve around managing client accounts on platforms like Attentive and Postscript. You'll create and optimise SMS campaigns, segment customer lists, and analyse performance metrics to ensure high engagement rates. Engaging with clients to understand their brand voice and marketing goals will be essential, as will staying updated on SMS marketing trends and compliance regulations.

Now is an ideal time to launch an SMS marketing agency in the UK. With the rise of direct-to-consumer (DTC) brands and the increasing importance of personalised marketing, brands are looking for effective ways to connect with customers. SMS marketing boasts an impressive open rate of around 98%, making it a highly effective channel for driving sales and customer retention.

As a founder, you should have a background in digital marketing, preferably with experience in SMS campaigns or e-commerce. Expect to commit around 10-20 hours a week initially, focusing on client acquisition and campaign management. As you grow, you may need to hire freelancers or tools to scale your efforts without overextending yourself.

In 12-24 months, you could build a client base that generates monthly revenues of £1,000 to £4,000 per client, depending on your pricing model and the number of clients you secure. With a strong reputation and proven results, expanding your services to include additional marketing channels or automation could further boost your earnings.

Skills you'll need
  • SMS
  • Copy
Monetisation

£1k–£4k/mo per client

Gross margins are likely to be around 70-80%, depending on your pricing model and client retention.

Why now

The UK retail landscape is shifting towards DTC brands that rely heavily on effective digital marketing strategies. With consumer behaviour increasingly favouring mobile engagement, SMS marketing is becoming a crucial part of many brands' communication strategies.

Who pays you

Your ideal clients are DTC brands seeking to enhance their marketing strategies through SMS. They are typically small to medium-sized businesses looking for cost-effective ways to increase customer engagement and drive sales.

UK market

The UK SMS marketing industry is expected to grow significantly, driven by increased consumer reliance on mobile communication. As of 2023, the DTC sector is projected to reach £20 billion, highlighting the potential for SMS marketing services within this lucrative market.

Revenue & pricing

Charge clients a monthly retainer plus a percentage of revenue generated through SMS campaigns. This performance-based model aligns your success with that of your clients, fostering long-term relationships.

  • Basic Package: £300/month for up to 1,000 subscribers with 3 campaigns per month.
  • Standard Package: £600/month for up to 5,000 subscribers with 5 campaigns per month and performance analytics.
  • Premium Package: £1,000/month for unlimited subscribers with custom campaign strategies and A/B testing.
  • Enterprise Package: £2,000/month for large clients with bespoke solutions and dedicated account management.
Realistic year one: In your first year, realistically expect to generate between £10,000 and £30,000 in revenue, depending on your client acquisition success. Profit margins can vary, but aiming for a net profit of 20-30% is reasonable if expenses are managed carefully.

Costs

Startup costs
  • Website hosting and domain£100
  • Marketing materials (brochures, online ads)£150
  • Software subscriptions (Attentive/Postscript)£200
  • Legal fees (basic terms and conditions)£50
  • Miscellaneous (business cards, networking events)£50
Monthly running costs
  • Software subscription (Attentive/Postscript)£200
  • Accounting software (e.g., Xero)£25
  • Marketing expenses£100
  • Internet and phone bills£30

First steps

  1. 1Master Attentive
  2. 2Pitch DTC
  3. 3Charge retainer + rev share

Your first 90 days

First 30 days
  • Set up your business structure and register with HMRC.
  • Master the Attentive or Postscript platform through online training and tutorials.
  • Create a professional website showcasing your services.
  • Develop a portfolio with sample SMS campaigns and case studies.
  • Reach out to potential DTC clients via social media and networking.
30–90 day milestones
  • Secure your first client and launch their SMS campaign.
  • Gather testimonials and case studies to build credibility.
  • Refine your service offerings based on initial client feedback.
  • Implement a referral programme to incentivise existing clients.
  • Start building a social media presence to attract new leads.

How to get customers

Social Media

Use LinkedIn and Instagram to connect with DTC brands.

Networking Events

Attend industry conferences and trade shows to meet potential clients.

Content Marketing

Write articles and guides on SMS marketing to establish authority.

Email Marketing

Create a mailing list to share insights and case studies with prospects.

Tools you'll actually use

ToolCostWhy
Xero£25/monthEssential for accounting and financial management.
Attentive/Postscript£200/monthCore platforms for managing SMS campaigns.
CalendlyFree to £10/monthStreamlines client booking and scheduling.
NotionFree to £8/monthOrganises project management and client notes.
TideFreeBusiness banking with no monthly fees.

Common mistakes to avoid

  • Failing to comply with GDPR when collecting phone numbers.
  • Overlooking the importance of A/B testing in campaigns.
  • Not segmenting customer lists effectively.
  • Underestimating the need for ongoing client communication.
  • Ignoring analytics and performance metrics.

How to scale this

  1. 1Start as a solo operator focusing on a few clients.
  2. 2Build a strong portfolio and gather testimonials.
  3. 3Hire freelancers to manage campaign execution as demand grows.
  4. 4Transition to a full agency model with a team for sales and account management.

Risks & mitigations

Risk

High churn rate due to poor client retention.

Mitigation

Focus on delivering outstanding results and regular communication.

Risk

Changes in SMS marketing regulations.

Mitigation

Stay updated on legal requirements and adapt quickly.

Risk

Competition from larger agencies.

Mitigation

Niche down and offer personalised services to stand out.

Risk

Dependence on one or two key clients.

Mitigation

Diversify your client base to reduce risk.

UK legal & compliance

  • Register your business with HMRC and keep accurate financial records.
  • Consider professional indemnity insurance to protect against client claims.
  • Ensure compliance with GDPR when collecting and processing customer data.
  • Check for any local business licences required for marketing services.

FAQ

How quickly can I start making money?

You can secure your first client within weeks, depending on your outreach efforts.

What skills do I need to succeed?

A background in digital marketing and familiarity with SMS platforms is beneficial.

Do I need a team to start?

No, you can start solo and scale as your client base grows.

How do I find clients?

Networking, social media outreach, and marketing your services online are effective strategies.

What if I don't have experience in SMS marketing?

Invest time in learning through online courses and practice on your own projects.