How to Start a Viral Marketing Consulting Business

Start a viral marketing consulting business by following these 10 steps:

1. Plan your Viral Marketing Consulting Business
2. Form your Viral Marketing Consulting Business into a Legal Entity
3. Register your Viral Marketing Consulting Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Viral Marketing Consulting Business
6. Get the Necessary Permits & Licenses for your Viral Marketing Consulting Business
7. Get Viral Marketing Consulting Business Insurance
8. Define your Viral Marketing Consulting Business Brand
9. Create your Viral Marketing Consulting Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your viral marketing consulting business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a viral marketing consulting business?

Costs can vary, but there are certain ways you can cut costs when starting out with your new business. Will you start out of your home office, or will you rent a small space to do your business in? Working out of your home can be cost-effective, but working out of an office space may make your business appear more legitimate, especially if you want to meet clients in person. Office utilities, insurance, and rent, as well as the taxes of your local area, will be your major costs. Computers and software pertinent to your business can also be something you need to purchase upfront if you don’t already have them.

Startup costs can range anywhere from a few hundred dollars to $10,000. Exceeding $10,000 may be difficult unless you have many consultants lined up to work for you.

What are the ongoing expenses for a viral marketing consulting business?

Having a large portfolio of past campaigns can help get your name out there early on. Generally, directly marketing yourself to companies in need of your services will be the most effective form of marketing. 

Any professional consultant should have an effective business card that allows you to market yourself at networking and business events. 

You also have the possibility of hiring another company to do your marketing, while expensive it may free you up for more projects.

Who is the target market?

Smaller companies may be easier to serve but can often be less profitable. Creating relationships with larger companies may have the potential to lead to multiple jobs from the same client, which can help secure your business’s revenue for years to come. Clients that have not done marketing campaigns before may be harder to work with than companies that have an established brand that you can expand through viral marketing.

How does a viral marketing consulting business make money?

Viral marketing consulting businesses make money by charging a flat rate for campaigns, advice, or other planning-based services. You can also charge clients an hourly rate or, for ongoing projects, a revenue-share fee.

How much can you charge customers?

What you can expect to charge clients will vary depending on the resources you need to allocate to each project. Depending on who works for you and your experience in the industry, you will generally be able to charge larger rates the longer you have been in business and the larger your portfolio. Typically you can charge between $600 to $1,200 per hour if you are working directly with clients. Managers or younger consultants working with you will be able to charge around $400 to $900 per hour. Many Pre-MBA Consultants can charge upwards of $250 per hour.

Charging clients a percentage of revenue or sales can also make sense when dealing with larger companies. 10% to 20% is not unheard of, though anything larger would be outrageous. 

Keep in mind that many clients may also pay for your travel expenses and other services out of pocket.

How much profit can a viral marketing consulting business make?

Profit margins for consulting businesses typically remain high if you have fewer members in your company. Typically, you can expect between 10% to 12% during a typical business year. 

How can you make your business more profitable?

 Having successful campaigns that resonate with your target audience is essential, as you may become known based on your campaigns instead of your company. Exploring what your competitors are doing successfully may also help you get an edge. 

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your viral marketing consulting business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Viral marketing consulting lends itself to energetic go-getters who can surround themselves with other like-minded individuals. Viral marketing often requires lots of planning initially, but often requires quick thinking when it comes to executing the plan. Having some managerial skills, experience with youtube, understanding social media trends, and having a knack for what businesses need from their marketing are all important skills you should possess or be working towards if you want to be successful.

What happens during a typical day at a viral marketing consulting business?

Typical days will vary depending on the ongoing projects you are working on, but activities can include: meeting with clients (either in person or via video conferencing), giving presentations, and recommendations to your clients. Much of your time will be spent planning the next big viral event, video, or marketing push. Planning and scheduling is an important part of any successful consulting business but especially when it comes to marketing. Launching the right campaign at the right time can be the difference between a big hit and a dud. 

What are some skills and experiences that will help you build a successful viral marketing consulting business?

Any business consultant should have some level of experience in the industry they are trying to tackle — in this case, that industry is marketing. Having a marketing degree, years of experience working for another company, and a portfolio of successful marketing campaigns will help you on your entrepreneurial journey. Other skills or job experience can also provide you with insider knowledge when dealing with clients in these industries. If you look at Upwork's Top Viral Marketers in the United States, you can get a clear understanding of just how specialized some consults are. 

Things like Healthcare, Insurance, Credit Cards, Pharmaceuticals, and other heavily regulated industries may have specific rules and regulations when it comes to marketing and advertising, thus having a background in one of these fields can be a powerful asset when it comes to helping clients in these fields.

What is the growth potential for a viral marketing consulting business?

Many consulting firms start small, with either one or two people helping a small list of clients or one or two big clients. Generally, you will be limited by the size of your company, and since viral marketing requires a specific set of knowledge and experience, it can be difficult to find others who can fill the roles you will need. The growth of your company will generally be to free you or the other experienced consultants from doing things like bookkeeping, human resources, and other support staff roles, allowing you to spend more time with your clients and less time running the business.

Sometimes after several years, the business owner may transition into a more managerial role once several experienced consultants are hired. 

If you want growth, networking to find like-minded people will be a key skill.