Start A Chatbot Development Business - Business Ideas

Start A Chatbot Development Business - Business Ideas
Start A Chatbot Development Business

Businesses use conversational AI chatbots to take customer engagement to the next level. Typically, chatbots deliver consistent responses to customers, which helps the business avoid issuing irrelevant or misguiding details to the customers.

As more people focus on using the internet in shopping, education, and research, businesses are deploying chatbots to provide 24/7/365 support to their customers.

For example, online shoppers interact with businesses through chatbots, while students can use chatbots to help their studies and research.

Therefore, starting a chatbot development business can be a lucrative venture.

Starting a chatbot development business requires a great deal of effort, dedication, and most importantly passion.

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

Key Stats

market size
$143B
starting costs
$16.8K
gross margin
83%
time to build
360 days

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
App Creation Costs $1,099 $20,099
Software Expenses $162 $2,894
Advertising & Marketing Costs $0 $2,500
Website Costs $13 $215
Training & Education Expenses $0 $850
Total Startup Costs $1,274 $33,558

Successful Businesses

Business URL Rank
ManyChat manychat.com #5,920
Chatfuel chatfuel.com #13,008
Rasa rasa.com #54,883
Surbo surbo.io #117,327
Maruti Techlabs marutitech.com #137,454
Open-Source Conversational AI Platform botpress.com #193,143
Paradox: Meet your AI recruiting assistant, Olivia paradox.ai #199,656
Live helper chat livehelperchat.com #218,001
BotsCrew botscrew.com #274,758
Avaamo avaamo.ai #306,162
Karma karmabot.chat #364,732

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!
Rewarding work Starting a chatbot development business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
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 chatbot development business gives people a reason to visit your website and to keep coming back to you!
No overhead costs To get your chatbot development business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
Cons Description
Crowded Space Competition is high when it comes to your chatbot development business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
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.
Longer Sales Process A chatbot development business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Isolation Often times, as a chatbot development business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes As a chatbot development business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Pat Walls,  Founder of Starter Story
Want to find more ideas that make money?

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