How Much Does It Cost To Start A Social Media Analytics Business? (In 2024)
Looking to start a social media analytics business?
But curious about:
- how much it costs to start a social media analytics business?
- what are the typical social media analytics business startup costs?
- or the actual cost of starting social media analytics businesses?
Well, we have the data to prove it, supported by real social media analytics businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a social media analytics business?
Based on our data reported by actual social media analytics business founders, the average cost of starting a social media analytics business is between $125 and $400,000.
Additionally, our data shows that the the median startup costs for a social media analytics business are around $26K.
Remember, though, not all social media analytics businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of social media analytics businesses
Real World Examples: How much does it cost to start a social media analytics business?
We asked real social media analytics business founders and business owners how much it actually cost to get started?
Here is what they said:
Juan Pablo Tejela
Founder of Metricool ($750K/month)
"The business started with $10,000 that we had earned during the first few months of Metricool. We contributed an additional $10,000 from our family savings and $30,000 that my mother lent us. We wanted to avoid external financing (such as Venture Capital or Business Angels) because with $50k and some recurring revenue we could proceed even if it was a little slower at first."
Juan Pablo Tejela is the founder of Metricool, a social media planner and analytics tool that now has over 400,000 users and generates over $1 million in annual recurring revenue.
Frank Kecseti & Alyson Kate Long
Founder of Social Burro Inc. ($13K/month)
"Frank started Social Burro with a $12 stock icon, a hosting plan, and a one-page website."
Frank Kecseti is the founder of Social Burro Inc., a social media management and consulting business that operates on a retainer model and averages an income of $13,000 per month.
Oskar Eichler
Founder of Songstats ($69K/month)
"By the end of 2019, we had everything up and running smoothly and finally felt that the platform was ready to scale. At this point, we’d burnt through nearly $400,000 and only had about 200 customers."
Oskar Eichler is the founder of Songstats, a music data analytics business that aggregates insights across various music services for artists and record labels.
Aaron Beashel
Founder of Attributer ($100K/month)
"It’s completely bootstrapped, and I’m the only person in the company."
Aaron Beashel is the founder of Attributer.io, a marketing attribution tool that helps businesses understand which channels and campaigns are generating their leads, customers, and revenue.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful social media analytics businesses that you can learn from.
Starting a social media analytics business - what you should know:
Starting a social media analytics business involves careful planning and understanding various cost factors to optimize profitability and efficiency.
Initial Software and Tools Investment
The core of a social media analytics business lies in the tools and software you use to gather, analyze, and report data. High-quality, reliable analytics software can range from $12,000 to $25,000 annually. Cheaper options might be available for around $5,000 annually, but they may lack advanced features essential for comprehensive analytics. Additionally, consider any custom software development costs, which can range from $10,000 to $50,000 depending on complexity.
Hiring Skilled Analysts
Personnel costs can significantly impact your budget. Experienced data analysts command salaries ranging from $60,000 to $100,000 per year, while entry-level analysts may cost around $40,000 to $50,000 annually. Depending on the scale of your operation, you might need at least 2-5 skilled analysts in your team initially, pushing your hiring costs between $80,000 and $500,000 annually.
Marketing and Client Acquisition
To grow your business, you'll need to invest in marketing and client acquisition strategies. This can include everything from digital marketing campaigns, which might cost from $5,000 to $15,000 per month, to attending industry trade shows and conferences, which can add up to $10,000 annually. Additionally, spending on search engine optimization (SEO) and content marketing could range between $1,000 and $5,000 monthly.
Operational Overheads
Operational costs include office space, utilities, and administrative expenses. If you opt for a physical office, expect monthly rent to range from $1,500 to $5,000 depending on location and size. Utilities and office supplies might add another $500 to $1,000 monthly. Alternatively, opting for a remote working model could drastically reduce these overheads, although consider subscription costs for communication and project management tools which could be around $100 to $500 monthly.
Licensing and Legal Fees
Don’t overlook licensing and legal fees. Registering your business can cost between $300 and $1,000 depending on your state and business structure. Trademarking your brand might add another $225 to $600 per class of goods/services. Additionally, legal consultations for data privacy policies, contracts, and other legal matters can cost between $150 and $500 per hour.
Conclusion:
Understanding and strategizing around these cost aspects will make your endeavor into the social media analytics business more predictable and financially sustainable. Careful planning and prioritization can help you optimize initial investments and ongoing expenses.
Potential Costs of Starting a Social Media Analytics Business
Starting a social media analytics business involves a variety of costs, ranging from software and tool expenses to labor and operational costs. Here's a detailed breakdown of the specific potential costs you might encounter:
| Expense Category | Description | Estimated Cost (USD) |
|---|---|---|
| Domain and Hosting Fees | Purchase and maintenance of the business website | $50 - $200 per year for domain $20 - $100 per month for hosting |
| Website Development | Design and development of a professional website | $500 - $5,000 one-time |
| SSL Certificate | Security certificate for the website | $50 - $200 per year |
| Software and Tools | Analytics and social media management tools | $50 - $500 per month |
| Marketing and Sales Tools | CRM, email marketing, and other sales tools | $50 - $400 per month |
| Labor | Salaries for employees (analysts, developers, etc.) | $3,000 - $8,000 per month per employee |
| Freelancers/Contractors | Outsourcing tasks (e.g., design, SEO, content) | $20 - $150 per hour |
| Office Space | Rental or coworking space costs | $200 - $1,500 per month |
| Office Supplies | Computers, furniture, software licenses, etc. | $2,000 - $10,000 one-time |
| Legal and Accounting Fees | Legal fees for business setup and ongoing accounting | $500 - $2,000 one-time setup $100 - $500 per month ongoing |
| Marketing and Advertising | Social media ads, content marketing, SEO efforts | $200 - $2,000 per month |
| Insurance | Business liability and other relevant insurances | $500 - $2,000 per year |
| Training and Development | Courses and resources for staff skill enhancement | $100 - $1,000 per year per employee |
| Miscellaneous | Additional unforeseen expenses | $100 - $500 per month |
These costs can vary widely based on the scale and specific requirements of your social media analytics business. Accurate budgeting and planning are key to ensuring financial stability during the startup phase.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
