Social Media Marketing Service

How Profitable Is A Social Media Marketing Service? (Updated for 2024)

Pat Walls

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Updated: September 4th, 2024

How Profitable Is A Social Media Marketing Service? (Updated for 2024)

So you want to start a social media marketing service?

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

Especially considering:

You could start a social media marketing service with as low as $30
Based on our data, social media marketing services generate an average of $1.2M per year
You could see gross margins as high as 75% with social media marketing services

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 marketing service.

Let’s dive in!

Yes, a social media marketing service 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 $1.2M per year with an estimated gross margin of 32%, you could expect to recover your investment within 6 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 marketing service.

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 marketing service 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 marketing service is worth it, the answer is a big YES. With social media marketing services, you have the potential to earn $1.2M 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 social media marketing service 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 marketing services case studies.

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

1. 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 8,728 founders

2. Travel Tractions ($420K/year)

Matthew Davison, the founder of Travel Tractions, came up with the idea for his tourism-focused marketing agency after scaling his previous travel startup to over 500,000 page views a month. He saw an opportunity to help other travel businesses achieve similar results and launched Travel Tractions as a productized service agency, focusing on SEO content and audits before expanding into other services like social media, PPC, and web builds. Despite facing challenges during the COVID pandemic, the company has rebuilt and grown to a monthly revenue of $35k, with a focus on client retention and a predicted triple-digit growth in 2024.

Is it profitable? Yes
How much money it makes: $420K/year
How much did it cost to start: $100

How We Started Our $35K/Month Tourism-Focused Marketing Agency With Just A Basic Wordpress Site

Travel Tractions, a tourism-focused marketing agency, which produces and optimizes almost half a million words of content a month for a wide range of travel publications and businesses all over the world, has built back up to be a formidable business today after losing 95% of its business due to COVID and many of the team two years ago, now doing around $35k/month.

Read this case study

Read by 2,364 founders

3. Attrock ($500K/year)

While working at an Ireland-based digital marketing agency in 2012, Gaurav Sharma saw clients frustrated with generic SEO packages, leading him to launch Attrock in 2014, offering customized digital marketing solutions and generating $500,000 annually.

Is it profitable? Yes
How much money it makes: $500K/year
How much did it cost to start: $1K

Starting A Bootstrapped Digital Marketing Agency At Age 24 [$500K/Year]

Attrock, a digital marketing agency, has grown its business to generate revenues of half a million dollars annually by providing highly tailored solutions to clients and prioritizing retention over acquisition, resulting in a 95% client retention rate and 25-30% YoY growth.

Read this case study

Read by 1,454 founders

Learn more about starting a social media marketing service:

Where to start?

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

Need inspiration?

-> Other social media marketing service success stories
-> Marketing ideas for a social media marketing service

Other resources

-> Social media marketing service tips

With a social media marketing service, you can make an average of $1.2M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $30. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 6 months.

Based on our data, average weekly revenue for a social media marketing service ranges around $25.1K. As such, you could see monthly revenues of $100K.

To know if your social media marketing service 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 marketing service.

The income of a social media marketing service 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 marketing service is about $25.1K. 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 marketing service 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 marketing service can expect profit margin of around 32%. 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 marketing service, 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 marketing service 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 marketing service owners can ensure long-term sustainability and profitability for their business.

The salary of a social media marketing service 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 marketing service, in a prime position, might see an average weekly salary around the ballpark of $8.03K.

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 marketing service may be a promising business to start - but the success of your social media marketing service 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 marketing service.

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Starting A Social Media Marketing Service: Everything You Need To Know

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