Social Media Automation Business

How Much Does It Cost To Start A Social Media Automation Business? (In 2024)

Pat Walls

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Updated: October 8th, 2024

Looking to start a social media automation business?

But curious about:

how much it costs to start a social media automation business?
what are the typical social media automation business startup costs?
or the actual cost of starting social media automation businesses?

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

Let's go over it.

Based on our data reported by actual social media automation business founders, the average cost of starting a social media automation business is between $1,000 and $100,000.

Additionally, our data shows that the the median startup costs for a social media automation business are around $15.5K.

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

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

Here is what they said:

Justin Hartzman

Founder of Needls ($250K/month)

"The partners were able to pool together $500,000 to start the business."

Justin Hartzman is the founder of Needls Media, a robo-ad agency business that uses AI and data science to automate social media advertising for SMBs.

Read this case study

Read by 7,003 founders

Chris Williams

Founder of MeetEdgar ($333K/month)

"We did have the largest ad spend we’ve ever had that first year of our company - we spent $40k on ads for new followers."

Laura Roeder is the founder of MeetEdgar, a social media automation tool that started in 2014 and has grown to $4MM in annual recurring revenue.

Read this case study

Read by 15,322 founders

Chris Baden

Founder of FlowChat ($100K/month)

"This is such a fun part of the story! It was such a mess, ha. Plus, we bootstrapped this so we had nothing."

Chris Baden is the co-founder of FlowChat.com, a B2B sales tool business that has achieved significant revenue milestones from its inception.

Read this case study

Read by 5,575 founders

Eldar Galiev

Founder of Growave ($110K/month)

"One of the lessons that we learned from the Growave launch is that we took over six months to launch the product, costing everything. Thanks to profits from ThinkLab, we managed to pull it through. Otherwise, it wouldn’t be possible to release Growave to the market."

Eldar is the founder of Growave, an all-in-one marketing tool for Shopify brands.

Read this case study

Read by 7,293 founders

Will van der Sanden

Founder of Dux-Soup ($400K/month)

"It took 6 months of development to produce the first version of Dux-Soup that I was happy could be released and used commercially."

Will van der Sanden is the founder of Dux-Soup, a LinkedIn automation tool that helps businesses accelerate growth by generating more leads through LinkedIn.

Read this case study

Read by 8,953 founders

Alex Bozhin

Founder of Postoplan.app ($70K/month)

"We had to grow fast, but we didn’t have the funds to support such growth... Two months later, we raised another 50,000 euros."

Alex Bozhin is the founder of Postoplan, a social media and messenger marketing automation platform that has achieved significant growth and recognition in the startup world.

Read this case study

Read by 4,832 founders

Usama Ejaz

Founder of SocialBu ($12K/month)

"I was very clear that I wanted to bootstrap, so I kept the costs minimal. The legal costs, including the company formation, were the major costs. Adding all the server/infrastructure costs, I think it totaled about $2000 to start."

Usama is the founder of SocialBu, a social media management platform.

Read this case study

Read by 2,419 founders

Rohan Arun

Founder of Instoo ($30K/month)

"At the end of 2018, I decided to monetize the traffic and build Instoo, since all the other Instagram bots were failing."

Rohan Arun is the founder of Instoo, a social automation service that aims to simulate human behavior using machine learning and locally installed Chrome extensions.

Read this case study

Read by 6,710 founders

Davis Baer

Founder of OneUp ($100K/month)

"The initial launch provided the opportunity to talk to customers, work out the bugs, make improvements, and see what kind of features users are looking for."

Davis Baer is the founder of OneUp, a social media scheduling tool that helps businesses automate their social media posts and make more money.

Read this case study

Read by 7,406 founders

Geet

Founder of LinkHelp ($4K/month)

"LinkHelp was bootstrapped in the beginning and we slowly started generating revenues that helped us cover costs and break even."

Geet is the founder of LinkHelp, a LinkedIn lead generation and relationship-building tool that has users from more than 90 countries and an ARR of $50k.

Read this case study

Read by 3,483 founders

Enjoyed reading these real world examples?

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

When starting a social media automation business, there are several cost factors you should consider to manage your budget effectively.

Initial Software Investments

Purchasing software licenses is one of the most significant initial expenses. Basic automation tools such as Buffer or Hootsuite can range from $19 to $99 per month. For more advanced features, platforms like Sprout Social or HubSpot can cost anywhere from $99 to $400 per month. If you're looking to save on costs, consider open-source alternatives like SocialOomph and SEOmoz, which may provide essential functionalities at a lower price or free.

Server and Hosting Costs

Your automation services may require robust server capabilities, especially if you're planning to host an in-house solution. Monthly cloud hosting fees can range from $10 to $300, depending on the server capacity and bandwidth requirements. Opting for scalable cloud service providers such as AWS or Google Cloud allows you to better manage costs in the initial stages and upgrade as your client base grows.

Marketing and Acquisition Costs

Promoting your business is crucial, but marketing expenses can add up quickly. Paid social media ads can cost between $0.50 to $3 per click, depending on the platform and target audience. To keep expenses manageable, start with a modest budget of around $100-$500 per month for paid advertising. Additionally, consider organic marketing strategies like content marketing, which can be part of your effort with minimal immediate costs.

Employee and Training Costs

Hiring skilled employees for tasks such as programming, customer support, and sales activities is essential. Junior developers or support staff can cost between $50,000 to $70,000 annually, whereas senior roles may demand salaries of $90,000 or higher. Training programs can also incur costs—expect to spend around $500 to $2,000 annually on each employee to keep skills updated with industry standards.

Unexpected Expenses

Finally, be prepared for unexpected costs such as legal fees, insurance, and scalability issues. Allocate a buffer budget of around 10-20% of your initial capital to cover these unforeseen expenses. Legal consultations alone can run $200 to $400 per hour, so it’s wise to have an emergency fund specifically for such scenarios.

By carefully considering these cost factors, you'll be better prepared to navigate the financial landscape of starting a social media automation business.

Starting a social media automation business involves a range of potential costs, including software subscriptions, employee wages, marketing expenses, and more. Below is a detailed table listing these costs, including specific numbers and ranges where applicable.

Category	Item/Description	Estimated Cost
Software & Tools	Social Media Automation Tools (e.g., Hootsuite, Buffer, Sprout Social)	$30 - $300 per month
	Customer Relationship Management (CRM) Software (e.g., HubSpot, Salesforce)	$50 - $150 per user per month
	Project Management Tools (e.g., Asana, Trello)	$10 - $25 per user per month
	Graphic Design Software (e.g., Adobe Creative Cloud)	$20 - $52.99 per month
	Analytics Tools (e.g., Google Analytics, SEMrush)	$0 - $200 per month
Hosting & Storage	Web Hosting (e.g., Bluehost, SiteGround)	$3 - $10 per month
	Cloud Storage (e.g., Dropbox, Google Drive)	$10 - $100 per month
Labor Costs	Salaries for Social Media Managers	$3,000 - $5,000 per month per employee
	Salaries for Content Creators/Copywriters	$2,500 - $4,500 per month per employee
	Salaries for Graphic Designers	$3,000 - $5,000 per month per employee
Marketing & Advertising	Online Advertising (e.g., Google Ads, Facebook Ads)	$300 - $1,000 per month
	Influencer Marketing	$500 - $5,000 per campaign
	Content Marketing (e.g., blog content, eBooks)	$200 - $1,000 per month
Operational Costs	Office Space (optional, can be remote)	$500 - $2,000 per month
	Utilities (e.g., electricity, internet)	$100 - $200 per month
	Legal and Accounting Services	$200 - $500 per month
Training & Development	Online Courses and Certifications	$100 - $500 per course
Miscellaneous	Domain Name Registration	$10 - $20 per year
	Business Licenses and Permits	$50 - $500 one-time

Starting a social media automation business involves various costs that can add up quickly, so it's essential to budget carefully to ensure you can cover all necessary expenses.

Part of

Starting A Social Media Automation Business: Everything You Need To Know

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