How do you start a paid ads (PPC) agency business in 2027?

Startup costs: Very low — $1K-$4K. Google Ads + Meta Business Manager free, tracking via GA4 + server-side tagging ($50-$200/mo for Stape or similar), reporting via Looker Studio (free) or Whatagraph ($200/mo), LLC, laptop. Budget is the client's, not yours.

LLC / contracts / insurance: LLC essential — you're spending six and seven figures of other people's money. E&O insurance $1K-$3K/yr is non-negotiable, especially for ecom clients. Contracts must clarify: ad-account ownership stays with client (never under your MCC permanently), payment for ad spend never flows through you (use client's card directly), 30-day exit clause both ways.

Customer acquisition: DTC ecom and lead-gen B2B are the two main buyer pools. Cold email + Loom audit video showing wasted spend works. Affiliate/referral from web design and CRO agencies is the hidden channel — pay 10-15% rev share for first 6 months. LinkedIn for B2B, Facebook groups for ecom founders.

Revenue model: Retainer + % of spend. Common: $2.5K-$8K/mo base + 8-15% of ad spend above $20K/mo. Pure % of spend is being phased out (clients hate it when scaled). Performance-only deals are a trap unless you have runway.

Year-1 reality: $70K-$200K solo if you land 4-6 retainers. iOS privacy + cookie deprecation make attribution harder — clients churn fast if you can't show MMM-style or incrementality reporting.

Honest: agencies live and die on attribution stories. Learn incrementality, MMM basics, and post-purchase surveys or you'll lose every QBR.