Community Manager

How Profitable Is A Community Manager? (Updated for 2024)

Pat Walls

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Updated: October 7th, 2024

How Profitable Is A Community Manager? (Updated for 2024)

So you want to start a community manager?

And the first question that came to your mind was, “well, are community managers actually profitable?”

Especially considering:

You could start a community manager with as low as $100
Based on our data, community managers generate an average of $246K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a community manager.

Let’s dive in!

Is a community manager profitable?

Yes, a community manager is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $246K per year with an estimated gross margin of 65%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your community manager.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your community manager is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a community manager worth it?

If you’re wondering if a community manager is worth it, the answer is a big YES. With community managers, you have the potential to earn $246K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a community manager to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful community managers case studies.

Examples Of Profitable Community Managers

Here are a few examples of profitable community managers, and a few more details about them:

1. Seedscout ($108K/year)

Mat Sherman, founder of Seedscout, pivoted from being a struggling musician to a startup enthusiast, eventually creating a network that simplifies introductions for founders, investors, and job seekers. Inspired by his own challenges in raising capital, Seedscout now generates $9,000 monthly from 65 paying users.

Is it profitable? Yes
How much money it makes: $108K/year
How much did it cost to start: $1K

From Being A Musician To Founding A $108K/Year Social Network Company

Case study: Seedscout is a social network for founders, investors, and job seekers that generates $9,000 per month from 65 paying users and has attracted over 1,500 users who are open to intro requests, offering valuable networking opportunities in the startup community.

Read this case study

Read by 1,526 founders

2. Rebel Book Club ($156K/year)

Ben Keene and Ben Saul-Garner came up with the idea for Rebel Book Club after realizing they both had a habit of buying books and not finishing them. They decided to create a book club where members would commit to reading one book a month, attending a meetup, and enjoying a custom cocktail inspired by the book. The club quickly grew, and now has 570 subscribing members and generates £10,500 in monthly recurring revenue.

Is it profitable? Yes
How much money it makes: $156K/year
How much did it cost to start: $100

How Two Friends Started A $13K/Month Online Book Club From Bali

Two friends started an online book club that now has 570 members and generates £10,500 MRR, by addressing the problem of 'Tsundoku,' charging a monthly subscription fee for one non-fiction book, one inspiring meetup, and one custom cocktail, inspiring conversation and community.

Read this case study

Read by 28,696 founders

3. Vital Traffic Labs ($600K/year)

David Schlais, co-founder of Vital Traffic Labs, came up with the idea for his social media marketing agency after realizing the massive margins that larger marketing firms were making for mediocre work. With almost no experience in social media marketing, he and his partner set up their agency in a day and quickly secured their first client, leading to a successful growth trajectory and the ability to leave their 9-5 jobs within six months.

Is it profitable? Yes
How much money it makes: $600K/year

How We Left Our 9 to 5 Jobs To Start A $50K/Month Marketing Agency

This case study follows the co-founder of a social media marketing agency who left their 6-figure 9-5 jobs to build a business that has grown to between 50-60K in monthly recurring revenue in just 3 years, attributing their success to putting clients and quality of work first while scaling to new clients and opportunities.

Read this case study

Read by 8,800 founders

Learn more about starting a community manager:

Where to start?

-> How much does it cost to start a community manager?
-> Pros and cons of a community manager

Need inspiration?

-> Other community manager success stories
-> Marketing ideas for a community manager

Other resources

How much can you make with a community manager?

With a community manager, you can make an average of $246K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a community manager make a week?

Based on our data, average weekly revenue for a community manager ranges around $5.13K. As such, you could see monthly revenues of $20.5K.

To know if your community manager achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your community manager.

How much do community managers owners make?

The income of a community manager owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established community manager is about $5.13K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a community manager owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Community Manager Profit Margins

Generally speaking, a community manager can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a community manager, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, community manager owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, community manager owners can ensure long-term sustainability and profitability for their business.

Community manager owner salary

The salary of a community manager owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established community manager, in a prime position, might see an average weekly salary around the ballpark of $3.33K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a community manager may be a promising business to start - but the success of your community manager mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable community manager.

Part of

Becoming A Community Manager: Everything You Need To Know

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