How to Start a Shorts Agency with Submagic in 2026
Why a Shorts Agency?
Short-form video is the highest-demand content format in 2026. Every creator, coach, and brand needs Shorts, Reels, and TikToks — but most don't have the time or skills to produce them consistently. This creates a service gap that you can fill.
A Shorts agency takes long-form content (podcasts, YouTube videos, webinars, interviews) and turns it into 5–20 short clips per piece. With Submagic handling the heavy editing work, you can serve multiple clients while keeping overhead near zero.
The Business Model
Service: Turn clients' long-form content into short-form social clips Pricing: $500–2,000/month per client (5–20 videos/month) Cost: $19/month for Submagic Pro (unlimited exports) Time per video: 5–10 minutes (AI editing + light review) Profit margin: 90%+
Step-by-Step Setup
Step 1: Define Your Niche
Focus on a specific type of client — YouTubers, business coaches, SaaS companies, fitness creators, etc. Specializing makes your marketing more effective and your editing faster (you learn the content patterns).
Step 2: Set Up Your Workflow
- Client sends you a long-form video (Google Drive, Dropbox, or direct upload)
- You upload to Submagic
- AI processes and generates clips with captions, B-roll, and effects
- You review and make light adjustments
- Export and deliver to the client (or post directly to their accounts)
Step 3: Create a Portfolio
Process 3–5 sample videos for free to build a portfolio. Use public content from your niche (with permission) or create your own. Show before/after comparisons — raw long-form content vs. polished Shorts.
Step 4: Find Your First Clients
- Direct outreach: DM creators on YouTube and Twitter who post long-form content but don't have Shorts
- Social proof: Post your own Shorts showcasing the editing quality
- Freelance platforms: List on Fiverr, Upwork, and PeoplePerHour
- Content marketing: Create content teaching about short-form video strategy
Step 5: Price Your Services
| Package | Videos/Month | Price | Per Video |
|---|---|---|---|
| Starter | 8 | $500 | $62.50 |
| Growth | 16 | $900 | $56.25 |
| Scale | 30 | $1,500 | $50.00 |
These prices are competitive for clients and highly profitable for you. A single Growth client at $900/month takes roughly 3–4 hours of your time monthly.
Step 6: Scale
With 5 clients on Growth packages, you're earning $4,500/month working ~20 hours. To scale further:
- Hire a VA to handle client communication and uploads
- Train the VA to review AI-generated clips
- Focus your time on client acquisition and quality control
- Add premium services (custom thumbnails, posting strategy, analytics reports)
Keys to Client Retention
- Deliver on time, every time. Consistency matters more than perfection.
- Batch process. Do all clips for a client in one session — more efficient for you and the client.
- Track results. Show clients their short-form views and engagement metrics monthly.
- Suggest improvements. Recommend content topics and formats that perform well as Shorts.
- Be easy to work with. Simple communication, clear deliverables, no drama.
Revenue Potential
| Clients | Package | Monthly Revenue | Monthly Hours |
|---|---|---|---|
| 3 | Growth | $2,700 | ~12 |
| 5 | Growth | $4,500 | ~20 |
| 10 | Mixed | $8,000–10,000 | ~35–40 |
A Shorts agency powered by Submagic is one of the most accessible and profitable AI-powered service businesses you can start in 2026. Low startup cost, high margins, and growing demand.