Social Media Marketing Service

How Much Does It Cost To Start A Social Media Marketing Service? (In 2024)

Pat Walls

•

Updated: October 10th, 2024

Looking to start a social media marketing service?

But curious about:

how much it costs to start a social media marketing service?
what are the typical social media marketing service startup costs?
or the actual cost of starting social media marketing services?

Well, we have the data to prove it, supported by real social media marketing services and how much they actually cost to start.

Let's go over it.

Based on our data reported by actual social media marketing service founders, the average cost of starting a social media marketing service is between $30 and $2,000,000.

Additionally, our data shows that the the median startup costs for a social media marketing service are around $1.38K.

Remember, though, not all social media marketing services are the same - and neither are people's budgets. It's important to distinguish between different levels or types of social media marketing services

We asked real social media marketing service founders and business owners how much it actually cost to get started?

Here is what they said:

David Schlais

Founder of Vital Traffic Labs ($50K/month)

"The beauty of the SMMA/Social Media Marketing Agency model, and what immediately attracted me to it, was the almost non-existent start-up cost. We incorporated directly through the state, got a free business checking account, set up a website for $8 per month, bought a domain for $11 and we were in business for less than $200 total."

David Schlais is the founder of Vital Traffic Labs, a social media marketing agency that focuses on paid social advertising and lead generation.

Read this case study

Read by 8,812 founders

Frank Kecseti & Alyson Kate Long

Founder of Social Burro Inc. ($13K/month)

"Frank started Social Burro with a $12 stock icon, a hosting plan, and a one-page website."

Frank Kecseti is the founder of Social Burro Inc., a social media management and consulting business that operates on a retainer model and averages an income of $13,000 per month.

Read this case study

Read by 4,658 founders

Samuel E Gordon

Founder of NextWave Social ($3K/month)

"The start-up costs were around $1,500. From getting the legalities sorted, logos, website, the team assembled, office setup, technology, etc. We were able to sign our first client for that monthly price before even officially being ready to roll."

Samuel Gordon is the founder of NextWave Social, a boutique-styled digital marketing agency that specializes in services such as SEO, social media management, web development, and Facebook ads.

Read this case study

Read by 5,026 founders

Claire Ficek

Founder of Altar'd Socials ($5K/month)

"Starting an online business is one of the easier businesses to start since there’s not much overhead needed. All that was required of me was a website subscription (including the domain name), a scheduling platform, and a subscription to a content planner."

Claire Ficek is the founder of Altar’d Socials, a social media management company that experienced dramatic growth within its first year.

Read this case study

Read by 2,412 founders

Matt G Davison

Founder of Travel Tractions ($35K/month)

It was slow going as we had to build our customers from the ground up with a budget of around $10,000.

Matthew Davison is the founder of Travel Tractions, a tourism-focused marketing agency that achieved impressive growth even after significant setbacks.

Read this case study

Read by 2,442 founders

Gaurav Sharma

Founder of Attrock ($41.7K/month)

"Attrock is a completely bootstrapped company, and so we had humble beginnings with a tiny team and a 200 sq. ft. office."

Gaurav Sharma is the founder of Attrock, a Digital Marketing Agency that began in 2014 and has scaled to generate half a million dollars annually.

Read this case study

Read by 1,555 founders

Stephen Wright

Founder of Social Reach ($6.5K/month)

"Our start-up costs were low. My initial £5,000 investment was for store design, software and local inventory. We wanted to bootstrap as much as possible."

Stephen Wright is the founder of Micro Bikes UK, an e-commerce store that specializes in kids quad bikes, dirt bikes, scooters, and ride-on toys.

Read this case study

Read by 9,413 founders

Jeff Carrier

Founder of Restoration Digital Marketing ($25K/month)

"Starting a digital agency however is not very capital intensive, and most of your expenses scale as you grow and generate sales. The biggest upfront cost however is personnel (that’s me) and in this instance, I was already employed as the in house marketing director, so the goal was to shift some of my time to external clients as we captured them."

Jeff Carrier is the founder of Restoration Digital Marketing, a digital marketing agency dedicated to the disaster restoration industry.

Read this case study

Read by 5,919 founders

Paul Franklin

Founder of SideGains ($3K/month)

"Because I effectively started out freelancing, investment was relatively small. I bought a domain, paid for hosting, and took liability insurance to cover my client’s work. All in, start-up costs were under $1k when associated costs of registering a business are included."

Paul Franklin is the founder of SideGains, a PPC and WordPress development business.

Read this case study

Read by 6,916 founders

Jake Jorgovan

Founder of Lead Cookie ($55K/month)

"Within the first 2 weeks, I had closed $12k of MRR by selling to people within my existing network. That was rapid validation that I had something that was working!"

Jake Jorgovan is the founder of Lead Cookie, a Linkedin lead generation and appointment setting company that helps B2B companies schedule appointments with their target customers.

Read this case study

Read by 7,238 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful social media marketing services that you can learn from.

Starting a social media marketing service can be a lucrative yet complex endeavor, requiring a keen understanding of various cost factors.

Initial Investment Costs

Your initial investment can vary significantly based on several factors. Basic setup costs, including a professional website, branding, and essential software tools, can range between $2,000 to $10,000. If you aim for a more polished online presence and advanced tools, you could be looking at upwards of $15,000. It’s important to factor in ongoing expenses for software subscriptions (such as Hootsuite, Canva, or Adobe Creative Suite), which can add an extra $50 to $500 per month.

Client Acquisition and Marketing

Acquiring clients will require additional investment, particularly in marketing. Paid advertising through platforms like Google Ads and Facebook Ads can cost anywhere from $500 to $5,000 per month depending on your target audience and geographical reach. Networking events, memberships in professional organizations, and other marketing initiatives might add another $500 to $1,500 monthly.

Team and Labor Costs

Hiring staff or freelancers is often necessary to manage multiple clients and services effectively. A social media manager's salary can range from $35,000 to $70,000 annually, depending on experience and location. If you opt for freelancers, expect to pay around $15 to $50 per hour. You might also consider outsourcing specific tasks like graphic design and content writing, each typically costing between $100 to $500 per project or on a retainer basis.

Technology and Tools

Investing in the latest technology and specialized tools can streamline operations but come with costs. High-quality content scheduling tools, analytics software, and customer relationship management (CRM) systems could collectively add an annual cost of $2,000 to $5,000. Ensuring your service includes cutting-edge tools can make you more competitive, but it’s an investment that needs careful budgeting.

Legal and Administrative Fees

Finally, don’t overlook the administrative side of setting up your business, including legal fees and insurance. Initial setup with legal documentation like service agreements, contracts, and liability insurance can cost around $1,000 to $3,000. Maintaining compliance with local business regulations and taxes might require an additional $500 to $1,000 annually.

Taking these factors into account can help you formulate a more precise budget and anticipate challenges, ultimately leading to a more successful social media marketing service.

Starting a social media marketing service involves a variety of costs, ranging from essential tools to labor and operational fees.

Expense Category	Specific Costs	Estimated Cost Range
Hosting Fees	Web Hosting Plan	$5 - $20 per month
	Domain Registration	$10 - $15 per year
	SSL Certificate	$0 - $150 per year
	Website Builder/Design	$100 - $500 one-time or per year
Marketing Tools	Social Media Management Tools	$30 - $200 per month
	Design Software (e.g., Adobe Creative Cloud)	$20 - $52 per month
	Analytics Tools (e.g., Google Analytics)	Free - $150 per month
	Email Marketing Tools (e.g., Mailchimp)	$10 - $300 per month
	Content Scheduling Tools	$12 - $99 per month
Labor Costs	Freelance Social Media Managers	$15 - $50 per hour
	In-house Social Media Specialist Salary	$30,000 - $60,000 per year
	Content Creators	$10 - $60 per hour
	Copywriters	$0.05 - $0.30 per word
Education and Training	Online Courses/Certification	$50 - $500 one-time
	Books and Subscriptions	$10 - $100 per month
Office and Operational Costs	Office Space Rent	$200 - $1,000 per month
	Utilities (Internet, Phone, Electricity)	$50 - $200 per month
	Office Supplies	$10 - $50 per month
Advertising Expenses	Paid Social Media Ads	$50 - $1,000 per month
	Influencer Partnerships	$100 - $10,000 per campaign
Legal and Accounting Fees	Business Registration	$100 - $300 one-time
	Legal Consultation	$100 - $250 per hour
	Accounting Services	$50 - $200 per month

By understanding and planning for these potential costs, you can better prepare for the initial investment needed to successfully launch and sustain your social media marketing service.

Part of

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

‹

›