Business Idea

Start An Analytics Tool

About

Starting an analytics tool requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell analytics tool, or selling analytics tool online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$26.8B
revenue (monthly)
$23.6K
starting costs
$12.7K
gross margin
75%
avg product price
$29
time to build
300 months
growth
Word of mouth
business model
Software
time investment
Full time
work from home?
Yes

About

Starting an analytics tool requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell analytics tool, or selling analytics tool online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$26.8B
revenue (monthly)
$23.6K
starting costs
$12.7K
gross margin
75%
avg product price
$29

 

time to build
300 months
growth
Word of mouth
business model
Software
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $600 $4,700
Equipment & Supply Expenses $63 $200
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,750
Total Startup Costs $1,199 $25,311

Successful Businesses

Business URL Rank
Screener screener.in #2,835
Web Analytics in Real Time clicky.com #4,418
Databox databox.com #5,320
Mixpanel mixpanel.com #6,164
Supermetrics supermetrics.com #9,072
Clarivate clarivate.com #11,207
ITC - International Trade Centre intracen.org #18,787
Sisense sisense.com #19,396
iwebchk.com - Website SEO Analysis iwebchk.com #25,145
Raven raventools.com #27,805
Crystal crystalknows.com #34,507

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A analytics tool gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet as a analytics tool. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting an analytics tool, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Difficult to build trust with your customer With starting an analytics tool, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.
Complex development process. The development process for a analytics tool can be quite complex, which may cause delays and challenges when launching and growing your product.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.