Social Media Management Business

How Profitable Is A Social Media Management Business? (Updated for 2024)

Pat Walls

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Updated: October 8th, 2024

How Profitable Is A Social Media Management Business? (Updated for 2024)

So you want to start a social media management business?

And the first question that came to your mind was, “well, are social media management businesses actually profitable?”

With a market size of $9.2B - there’s plenty of business to go around.

Especially considering:

You could start a social media management business with as low as $3
Based on our data, social media management businesses generate an average of $1.53M 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 social media management business.

Let’s dive in!

Yes, a social media management business 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 $1.53M 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 social media management business.

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 social media management business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

If you’re wondering if a social media management business is worth it, the answer is a big YES. With social media management businesses, you have the potential to earn $1.53M 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 $9.2B, 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 social media management business 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 social media management businesses case studies.

Here are a few examples of profitable social media management businesses, and a few more details about them:

1. SocialBee ($0/year)

The idea for SocialBee emerged when Ovi Negrean and his team were working on a different startup called Nugget, which provided condensed quotes from books. While promoting Nugget on social media, they realized the potential of social media as a powerful marketing tool, but there were no affordable, all-in-one solutions for managing social media effectively. They identified this gap and decided to create a tool that could help small businesses manage their social media from a single dashboard.

They initially built internal tools to automate the promotion of Nugget, which saved them time and increased their productivity. Recognizing the broader potential, they conducted research and validation by getting customer feedback and assessing market needs. This iterative process helped them refine SocialBee and add features that addressed the specific pain points of small businesses, such as scheduling posts and automating content.

One challenge they faced was ensuring their tool was both powerful and user-friendly, especially for small businesses with limited resources. By focusing on simplicity and continuous improvement based on user feedback, they overcame this challenge and established SocialBee as a comprehensive social media management solution. Key lessons learned included the importance of validating the idea with real users and being open to pivoting based on feedback.

Is it profitable? Yes
How much money it makes:

How 2 Founders Built SocialBee into a Leading Social Media Tool

Read this case study

Read by 25 founders

2. Qnary ($6.6M/year)

Bant Breen, the Founder of Qnary, came up with the idea for his business while working as the CEO of a paid search and social media agency. He noticed that there were no tools available to help individual executives optimize their online presence, so he set out to create a platform specifically tailored to their needs. Since its launch in 2012, Qnary has grown to have thousands of clients and offices in New York, Barcelona, and Sydney.

Is it profitable? Yes
How much money it makes: $6.6M/year
How much did it cost to start: $1.2M

How I Started A $550K/Month Executive Online Reputation Management Solution

Qnary founder Bant Breen built and grew the executive reputation management and talent branding solutions company, now with thousands of clients globally, with a monthly revenue of $550k by developing a tech-enabled solution that optimizes an executive’s online presence, generates thought-leadership content, and grows followers and engagement.

Read this case study

Read by 7,993 founders

3. Conversion Perk ($540K/year)

Devjeet’s journey began during the Great Recession when he couldn't land a traditional tech internship, leading him to discover digital marketing. With just ₹2.5 lakh (USD 3,500) and a vision to make digital marketing the main focus, he founded Conversion Perk in 2018, now generating many times the initial investment and recognized as one of India's top PPC Management Agencies.

Is it profitable? Yes
How much money it makes: $540K/year
How much did it cost to start: $3K

How I Started A $500K/Year Digital Marketing Agency From India

This case study article showcases the journey of Devjeet, the founder of Conversion Perk, a digital marketing agency. With an initial investment of just ₹2.5L, the company has achieved impressive milestones, becoming partners with industry leaders like Google and Amazon and generating a monthly revenue that is many-fold more than the initial investment. The article also highlights their strategies for customer attraction and retention, including mastering the digital landscape, focusing on SEO, utilizing platforms like Upwork, and employing personalized email marketing campaigns.

Read this case study

Read by 1,767 founders

Learn more about starting a social media management business:

Where to start?

-> How much does it cost to start a social media management business?
-> Pros and cons of a social media management business

Need inspiration?

-> Other social media management business success stories

Other resources

With a social media management business, you can make an average of $1.53M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $3. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

Based on our data, average weekly revenue for a social media management business ranges around $31.9K. As such, you could see monthly revenues of $128K.

To know if your social media management business 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 social media management business.

The income of a social media management business 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 social media management business is about $31.9K. 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 social media management business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Generally speaking, a social media management business 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 social media management business, 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, social media management business 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, social media management business owners can ensure long-term sustainability and profitability for their business.

The salary of a social media management business 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 social media management business, in a prime position, might see an average weekly salary around the ballpark of $20.8K.

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 social media management business may be a promising business to start - but the success of your social media management business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable social media management business.

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