About the Company

Salt Water Digital is a digital marketing agency that focuses on search engine optimization (SEO), pay-per-click advertising (PPC), and web development. The company works primarily with small businesses that generate revenue ranging from $300,000 to $5 million annually. The team consists of nine employees, including co-founder Steve, who works alongside Dan to grow the business. The agency is committed to helping small and medium-sized enterprises by improving their online visibility and digital performance.

The agency originally began by offering SEO services but later expanded its offerings to include web design and PPC in response to market demand. Today, Salt Water Digital provides a range of high-leverage digital services that help clients free up time and increase profitability.

Idea Behind Company

The idea for Salt Water Digital stemmed from Dan Thompson’s desire to escape the corporate lifestyle. In 2011, while working in the oil and gas sector, Dan began teaching himself web development and SEO in his spare time. He launched an affiliate site called ExerciseFoamRollers.com, which experienced moderate success. However, the real turning point came in 2012 when Dan was laid off from his job, allowing him the time and financial security to focus on entrepreneurship.

Dan and his best friend launched multiple affiliate marketing websites, earning up to $15,000 a month at their peak. However, after a Google update decimated their income, they pivoted to creating Salt Water Digital, which was born out of necessity and the realization that their skills in SEO could be applied to help other businesses.

Creating the Company

After their affiliate marketing sites were hit hard by a Google algorithm change, Dan and his partner decided to shift their focus to building an agency. Initially, Salt Water Digital struggled with branding, pricing, and client acquisition. They started by offering SEO services to local businesses, many of which were also struggling and often challenging to work with due to their high expectations and reliance on digital marketing for revenue.

As the business grew, they diversified their offerings to include web design and PPC, which helped attract better clients and improve cash flow. Through partnerships with larger agencies and a solid reputation for quality work, Salt Water Digital was able to scale and stabilize, rebranding from "my local SEO" to Salt Water Digital.

Launching the Business

Salt Water Digital experienced two major launches. The first occurred in 2015-2016, when Dan's partner secured partnerships with agencies that white-labeled their services. This move allowed Salt Water Digital to scale from zero to $300,000 annually. These partnerships provided access to larger clients and budgets, while the agency filled in gaps in specialized services that other agencies lacked.

The second significant launch came after the sale of two Amazon FBA brands that Dan and his partner had built. In late 2021, after fulfilling their contract to manage the brand they had sold, they redirected their full attention to growing the agency. This renewed focus allowed them to push Salt Water Digital’s growth further and establish new lead-generation sources, including a strong presence on Twitter.

Earnings

Today, Salt Water Digital generates $89,000 in monthly revenue. Dan and his partner each earn $80,000 annually, with the company maintaining a net profit margin of 17%. They are actively working toward improving these margins to 20% while increasing the salaries of their employees and scaling their business to $720,000 annually. The agency is also exploring ways to diversify its lead generation, with a particular focus on enhancing SEO and turning it into a reliable funnel for new clients.

As they continue to grow, Dan and his partner are mindful of the balance between expanding the business and maintaining manageable workloads, aiming to cap their growth at around $1 million annually with a small team of eight employees.