How Much Does It Cost To Start A Social Media Analytics Business? (In 2024)

Updated: June 21st, 2024
Start A Social Media Analytics Business

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 $50K.

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:

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.

Read by 3,879 founders

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.