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Is a SMMA Profitable? In 2024

The fact that BILLIONS of people spend HOURS each day on social media platforms, having a strong social media presence is an important component of internet marketing for modern businesses. As a result, an abundance of social media agencies (SMMAs) has popped up in recent years to fill this need.

Despite the business model’s popularity, problems such as growing paid social media ad expenses and severe competition pushing down agency margins leave many prospective online entrepreneurs wondering, Is a social media marketing agency profitable at this point? In 2023, a social media marketing agency Yes can be very profitable. Many social media agencies, on the other hand, make fundamental errors and fail. In the next article, we will discuss how much money you may make with a social media marketing agency, why many of these businesses fail, and how to prevent them.

Is a SMMA Profitable?
Is a SMMA Profitable?

Are SMMA Profitable

Because of its minimal administrative expenses and tremendous upside potential, a social media marketing agency is often a profitable one. However, like with any business effort, profitability is based on the owner’s ability to properly run the agency.
If you have no experience operating a business and make simple blunders like failing to calculate break even to determine how much you can spend and how much you can charge, your agency will most likely be unprofitable. However, if you begin your social media marketing agency with any digital marketing or business knowledge, you will have a good chance of success. what is SMMA

How much does a social media marketing agency make?

According to Agency Analytics, social media marketing agencies may make anywhere from $1,500 to $25,000 per month for a single client. According to data, the typical digital marketing agency has a profit margin of 11% to 20%. That’s some substantial profit potential, depending on how you outsource the necessary labor and expand your business!

Let’s say you have a reasonable 15% profit margin and just five clients paying you $4,000 each month for your services. In this situation, your agency would make $20,000 each month, or $240,000 per year. Your annual profit would be $36,000.

Reasons why social media agencies fail

1. Lacking the knowledge to execute

Social media platforms are common, but social media marketing agency is not.
To be effective, you must have comprehensive marketing expertise, technical awareness of platforms, and the ability to capture attention with convincing writing and appealing imagery. Many marketers advertise a social media marketing agency as a way to become wealthy quickly, but you won’t be wealthy or even successful unless you know what you’re doing and provide value to your clients.
If you don’t currently have the abilities, you may gain them by taking social media marketing classes.

2. Bad at sales

When running a social media marketing agency, you must pitch your business to potential clients. Even if you are an expert at establishing an Instagram account or running Facebook advertisements, your agency will fail unless you can convince businesses that you are their best alternative. Learn to sell yourself, or employ a skilled salesperson.

3. No leads at top of funnel

Just because you have some clients under contract does not ensure they will remain with you indefinitely. In reality, they are unlikely to, which is why you must continually seek new potential clients. Your social media marketing agency should have frequent lead generation techniques in place, such as running sponsored advertising or sending out a regular email newsletter with relevant marketing content for businesses in your specified industry segment.

4. Ignoring client communication needs

If you overlook the need of maintaining a regular contact schedule with your clients, they may cease working with you. If you don’t inform them what you’re doing for them and the outcomes you’ve achieved, they’ll wonder why they’re paying you. Set a regular meeting schedule with your clients and the outcomes of your social media marketing strategy so they understand what’s going on and know you’re actively working on their behalf. Because each customer has unique communication requirements, you may need to spend more time interacting with some than others.

Is a social media marketing agency worth it?

A social media marketing business is appealing to many prospective internet entrepreneurs. Social media marketing now accounts for 33% of all digital advertising dollars spent. That’s a sizable slice of the digital marketing pie, and it demonstrates the importance of social media marketers to businesses. Furthermore, as more individuals join social media and spend more time on these platforms, social media marketing has a bright future.

Tips for starting a profitable social media marketing agency

Hire talented people

When you create your own social media agency, you must understand your role in the business. If you try to accomplish everything, your service will suffer and you will most likely burn out. Accept the role of leader of your digital firm in order to attract clients and engage colleagues to assist you in carrying out the job for those clients.

Pro strategy for hiring with no capital: First, focus on signing a client. You can have your client pay you at the beginning of the month and then hire a freelancer to do the work and pay them at the end of the month. 

Charge by the hour

Charging by the hour guarantees that you are adequately compensated for your work as a social media marketer. Not all duties, however, should be rewarded similarly. Running sponsored social media advertising requires far more knowledge and work than hashtag searching for posts. As a result, it’s ideal to base your hourly fee on the job you perform the most, or to charge a different rate based on the activity.

Package your services

Packaging services together helps you to provide a greater value to your clients while also increasing your income.

Expand into other adjacent services

Your clients’ digital marketing requirements are likely to extend beyond social media. You may earn extra money by providing additional connected digital marketing services. As a social media marketer, you already need to develop material, therefore you might give your clients content marketing services such as video creation or graphic design.

Partner with other agencies

Collaboration with entities that specialize in providing services outside of your area of expertise provides several advantages, including:

allowing you to provide greater value to your clients
Get more leads and clients.
Earn a finders’ fee or commission on the work you refer.

Run a referral program

Running a referral program for current clients is a terrific method to boost client satisfaction and gain new clients if you want to develop your firm.uhj


If social media marketing seems like a good business prospect for you, here’s how to get started. However, make sure you do your homework by looking at other online business options as well. You may determine that social media marketing is the greatest choice for you, or you may discover that other alternatives, such as affiliate marketing or Youtube automation, are a better fit for your objectives. Whatever digital marketing approach or online business model you use to create money, you must keep your goals in mind every day and put out constant work if you want to achieve them.