Lately, I’ve seen many freelancers creating virtual agencies to take on bigger projects and clients.

What is a virtual agency? A virtual agency is a tight group of freelancers with complementary skills who have agreed to work together to deliver client projects.

For example, a typical virtual agency might be a programmer, a graphic designer, and a copywriter delivering complete website projects. Or it could be a writer, designer, filmmaker, and editor to create a series of film projects.

You may also consider having a larger group, with two of each discipline. That way, if one writer is busy, another one can take it.

There are many possible combinations for forming a virtual agency.

Why Form a Virtual Agency?

On Twitter, I often see freelancers giving away projects.

“I’m booked solid for the next month. Anyone want a writing project? DM me please.”

I see others not getting jobs because they don’t offer all of the required services.

I understand turning down projects that aren’t right for you. Learn to say “no” to those.

But I shudder when I see freelancers giving away good projects because they’re too busy or don’t have the right team.

Quick story: years ago, when I was freelancing, I started writing for Canada’s largest electrical utility. The first project was a small brochure. That turned into years of steady work for that client in print, web, and broadcast.

When I formed my agency, we became the agency for the utility. Over a 20-year relationship, that client produced millions of dollars in billings.

Imagine if I had given away that first project because I was too busy!

5 Reasons for Freelancers to Create a Virtual Agency

Be able to take on more and bigger projects.
Offer more services to handle all aspects of projects.
Create more sources of revenue—now, everyone in your group is bringing each other work.
You’re not working alone—you have like-minded people to brainstorm with on jobs.
You make it easier for clients. For the client, a virtual agency means one point of contact, one estimate, and one invoice for a full suite of services. So much more convenient.

The Biggest Reason to Start a Virtual Agency

When you take on all of the important aspects of a project, you have far more control. That means a greater likelihood of a successful project.

Here’s what I often see happening. A web developer only handles the development and graphic design.

First, the design probably isn’t as good as it should be. Having an experienced designer on the team would make all the difference.

But the most glaring problem is the writing, photography, illustrations, charts, and graphs.

Many developers wait for the client to contribute “content” to the project. Sometimes the developer will be given the content ahead of time to populate the site. Other times, they create a site loaded with lorum ipsum, waiting for the client to complete it.

It’s a recipe for disaster. The client may do their best but have little experience structuring information for the web, writing for SEO, or making an effective graphic presentation. A collection of stock photography and random graphics doesn’t cut it these days.

So, the development may be top-notch, but the overall presentation is weak. The site doesn’t perform as the client expected. They’re disappointed, but it’s not the developer’s fault. Yet somehow, the substandard results rub off on everyone.

This can be avoided by having a virtual agency that controls site development, design, and copy.

How Can Freelancers Start a Virtual Agency?

For this example, let’s say you’re a freelance copywriter. Many of your jobs need a graphic designer, and some web projects need a front-end developer. To form your virtual agency, find those people to be part of your group.

Perhaps you already know some of the people you want to approach. Maybe you’ve worked with them or you’ve become friends online.

Create an outline of the type of virtual agency you’re thinking of creating. A one-page overview will do. You’ll likely alter it as you go along, but having this will help you approach others.

Then start the discussion. If you don’t know anyone, post on Twitter, Slack, LinkedIn, or appropriate Facebook Groups. The point is to get the word out that you’re looking. Take the first step and invite others to respond.

Talk about the kinds of projects and clients you already have or would like to work on, how you bill, how you estimate, etc. Try working together on a few projects to see how it goes. This will give you the chance to work out any bugs in your collaborative process.

If you’re compatible, each of you should look for opportunities to bring the others into your projects.

For example, if you’ve been writing for clients, you could let them know that you now offer more services. Your team members should look for opportunities to bring you into their clients. Then, update your website and social media with new messaging.

3 Key Requirements for a Successful Virtual Agency

A virtual agency depends on having clear and honest communications with each other. During a project, you have to follow timelines and processes and meet your deadlines to each other and to the client.
A virtual agency is built on trust. This is no place for flakiness—you have to be able to depend on each other. Promises must be kept.
You need to give each other time and breathing space. If you’re going to see a client and need another team member on the job, they need to know ahead of time, so they can commit or let you know they can’t handle it.

How to Operate a Virtual Agency

Here are some guidelines on how to operate a virtual agency. Before you start working together, you should:

Understand each other’s rates and typical billing structures.
Ideally, estimate and bill the projects using fixed estimates—it’s easier to deal with than tracking hours and constantly adjusting estimates.
Agree on payment procedures. (A suggestion: pay the others as you get paid by the client. If you’re getting a deposit, divide it equitably among the group working on the project.)
As much as possible, keep the finances simple and straightforward. Don’t create unnecessary “finder’s fees” or “commissions”.
Agree that whoever brings in the project, manages the project. The others working on that project report to that person.
Only the person managing the project communicates directly with the client. It prevents mixed messages to the client.
Agree on a platform for collaboration. There are many options. Pick one and stick to it.
Cut each other some slack. As you start to do projects together, you’ll iron out your processes. Be patient with one another.

You Don’t Need the Virtual Agency for Every Project

Keep in mind you will still get projects that only require your talents and not those of the rest of your team. That’s fine, just do the project and bill it as you normally would.

But always remind clients that your group can handle larger, more complex jobs.

How to Start a Successful Creative Agency is the essential business guide for graphic designers, copywriters, filmmakers, photographers, and programmers. With over 300 pages and 23 chapters, it’s available at Amazon (Paper & Kindle), Kobo (ebook), Apple Books (ebook), and Gumroad (PDF).

Great Read!

“Loved this book. As a copywriter and content writer, I look for books that can help me strengthen my skills. Many books have too much fluff and I easily forget what they teach me. Not this one.
Andy did great providing value. This book is built on his real experience as a two-time agency owner and he offers advice for professionals at every level and age group. Great read!”

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The book is packed with useful information to help creatives start and grow their business.

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Freelancing? Create a Virtual Agency to Take on Bigger, Better Projects