How Much Does It Cost To Build An Analytics Tool? (In 2024)
Looking to start an analytics tool?
But curious about:
- how much it costs to start an analytics tool?
- what are the typical analytics tool startup costs?
- or the actual cost of starting analytics tools?
Well, we have the data to prove it, supported by real analytics tools and how much they actually cost to start.
Let's go over it.
What is the average cost of starting an analytics tool?
Based on our data reported by actual analytics tool founders, the average cost of starting an analytics tool is between $100 and $600,000.
Additionally, our data shows that the the median startup costs for an analytics tool are around $4.75K.
Remember, though, not all analytics tools are the same - and neither are people's budgets. It's important to distinguish between different levels or types of analytics tools
Real World Examples: How much does it cost to start an analytics tool?
We asked real analytics tool founders and business owners how much it actually cost to get started?
Here is what they said:
Hugo Valente
Founder of Statful ($8.5K/month)
"All the funding for developing the product came from Mindera. That funding was exclusively to pay the team costs and infrastructure to sustain the product."
Hugo Valente is the founder of Statful, a customized monitoring platform business that started in 2017.
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.
Anand Mahajan
Founder of WebMaxy ($1K/month)
"For us, taking the step of establishing WebMaxy was a challenging task. However, we were determined to develop digital products that were comprehensive and had the best-advanced features. We wanted to make ourselves stand apart from competitors, and to get an edge over them, we had to work hard."
Anand Mahajan is the founder of WebMaxy, a software tools business started in 2022 to help companies grow by providing advanced user behavior analytics tools.
TheBuilderJR
Founder of Beam Analytics ($20/month)
"We started working on Beam in October 2022 and launched it in January 2023."
[FOUNDER NAME] is the founder of Beam Analytics, a web analytics business that started in 2023 and offers GDPR-compliant alternatives to Google Analytics.
Aaron Platshon
Founder of Tap Research ($1.5M/month)
"We incorporated the business in August 2013 and raised $1M of seed capital from Angel investors in September."
Aaron Platshon is the co-founder and CEO of TapResearch, a platform for consumer insights that leverages a large-scale respondent network.
Dr. Robert Yonover
Founder of SEE/RESCUE Corporation ($20K/month)
"My first investments were the cost of a patent - approximately $10,000 and registering the domain for a cost of $12.99. Beyond that, I built all of the first generations of the product in my home laboratory using free samples from companies."
Dr. Rob Yonover is the founder of SeeRescueStreamer, a survival gear business that has been used by both military and civilians worldwide and has saved lives and gained significant media attention including an appearance on Shark Tank.
David Burgos
Founder of Ghostboard ($450/month)
"I was developing Ghostboard full-time for about 9 months using my savings. When it ran out, I looked for a job and continued working on Ghostboard some nights and weekends."
David Burgos is the founder of Ghostboard, an analytics tool for Ghost blogs that started in 2018.
Erman Kuplu
Founder of Analyzify ($12K/month)
"2 months of software builds + another 4 months for tests, and other things (website, help materials, video docs, etc)."
Erman Küplü is the founder of Analyzify, a Shopify app for data analytics that helps merchants set up and manage accurate data tracking.
Vedran Cindric
Founder of Treblle ($5K/month)
“The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much.”
Vedran is the founder of Treblle, an API management tool that has raised $1.4 million in a Seed investment round and is currently serving more than 200 customers.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful analytics tools that you can learn from.
Starting an analytics tool - what you should know:
When starting an analytics tool, it's pivotal to understand how different factors can influence the overall cost.
Initial Setup Costs
The initial setup costs can vary widely depending on the scale and complexity of the tool you intend to deploy. For a basic setup, you might spend around $500 to $2,000 for rudimentary analytics tools such as Google Analytics or smaller SaaS-based options. However, more advanced setups with custom integrations, data warehousing, and enterprise-level features can range from $10,000 to $50,000 or more.
Licensing Fees
Ongoing licensing fees are another significant cost component. Basic licensing for analytics tools like Google Analytics 360 starts around $150,000 per year. Other enterprise tools such as Adobe Analytics can have annual licensing fees ranging from $100,000 to $300,000 depending on the level of service and volume of data processed.
Customization and Integration Costs
Customization and integration with existing systems can incur additional costs. Simple integrations might only add a few hundred dollars to your budget, while extensive customization and integration with CRM, ERP, or other business systems could range from $5,000 to $20,000 or more depending on complexity.
Maintenance and Support
Beyond the initial and ongoing costs, budget for maintenance and support. Basic support might be included in your licensing fees, but higher levels of support typically cost extra. Annual maintenance costs can range from 15% to 25% of the initial setup and customization costs, sometimes adding $2,000 to $10,000 per year to your expenses.
Training and Onboarding
It's also essential to consider the costs of training your team to use the new tool. Training sessions could range from a few hundred to a few thousand dollars. Comprehensive onboarding programs provided by the analytics vendor might cost anywhere from $2,000 to $8,000 depending on the scope and length of the training.
By understanding these nuanced cost factors, you can better plan and budget effectively for starting your analytics tool. Balancing these expenses with your specific business needs will ensure you get the most value from your investment.
Potential Costs of Starting an Analytics Tool
Starting an analytics tool involves a variety of costs, ranging from software licenses to labor fees. Here's a breakdown of the potential costs you might encounter:
| Cost Category | Description | Estimated Cost |
|---|---|---|
| Development Tools | Software licenses for development tools and libraries, both frontend and backend. | $500 - $2,000 per year |
| Cloud Hosting | Servers for hosting the application, database storage, and computing power. | $50 - $300/month for small setup |
| Data Storage | Storage required for data collected from users. | $100 - $500/month |
| Software Licenses | Licenses for analytics software, additional libraries, or frameworks. | $1,000 - $5,000 per year |
| APIs and Integrations | Costs for third-party APIs and integration services. | $20 - $200/month per API |
| Labor Costs | Salaries for developers, data scientists, and engineers. | $60,000 - $150,000 per year per person |
| Design and UX Tools | Tools for UI/UX design, including prototyping software. | $200 - $800/year |
| Testing Tools | Software for automated testing and quality assurance. | $30 - $500/month |
| Marketing Costs | Costs for promoting your analytics tool through various channels. | $1,000 - $10,000/month |
| Customer Support | Setting up customer support, including CRM software and staffing. | $500 - $5,000/month |
| Legal and Compliance | Ensuring compliance with data protection regulations and legal consultations. | $2,000 - $10,000 upfront |
| Miscellaneous Costs | Unexpected expenses, office supplies, and utilities. | $1,000 - $5,000/year |
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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.
