Start A Social Media Marketing Business
About
Starting a social media marketing business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell social media marketing, or selling social media marketing online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a social media marketing business ➜
Key stats
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
| Office Space Expenses | $40 | $2,350 |
| Employee & Freelancer Expenses | $0 | $5,500 |
| Equipment & Supply Expenses | $550 | $6,000 |
| Website Costs | $232 | $6,500 |
| Business Formation Fees | $5,600 | $20,400 |
| Software Expenses | $162 | $3,094 |
| Advertising & Marketing Costs | $0 | $2,750 |
| Other Expenses | $0 | $800 |
| Total Startup Costs | $6,584 | $47,394 |
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
Famoid | famoid.com | #21,740 |
|
Rapid boost marketing | rapidboostmarketing.com | #31,859 |
|
Cereal Entrepreneur Logo | cerealentrepreneur.academy | #103,997 |
|
The Social Media Agency That Gets Results Fast | social-hire.com | #143,711 |
|
BuySocialMediaMarketing | buysocialmediamarketing.com | #293,243 |
|
Dragon Social | dragonsocial.net | #313,675 |
|
Social Media College | socialmediacollege.com | #330,089 |
|
Smarcomms | smarcomms.com | #376,084 |
|
Kexino | kexino.com | #513,190 |
|
AT&R | atnr.pk | #679,227 |
|
McCollins Media | | mccollinsmedia.com | #697,211 |
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! |
| Traffic to your website | A social media marketing business 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 social media marketing business. 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. |
| Pick & choose the clients you work with | Social Media Marketing Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients! |
| 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. |
| Low margins | The gross margins for your social media marketing business are typically around 23%, which can make it more challenging to incur new expenses and maintain profitability. |
| Stressful work | This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments. |
| 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. |
| Work can be repetitive | You may find creating the same product over and over repetitive and tiresome. One way of avoiding this is to diversify product lines and revenue streams - this will keep things interesting! |
| 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. |
Marketing Ideas
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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
Direct sales
You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.
Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
-
3
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.
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