![How to plan and track the budget of your social media management service [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_947c7931-ba5d-4780-823b-7aa6ba804c02.png?v=1715856553&width=1100)
If you don’t plan and track your social media budget properly, you're setting yourself up for failure.
When we developed our strategy pack for social media managers, we saw a lot of professionals struggling with finances and planning.
They were disorganized, had no grasp of ad spend, and were drowning in financial troubles despite having substantial engagement and reach.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your social media finances around and set you on the path to success!
Get the budget tracker tailored for social managers
Most social managers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for social managers
Here is an example of a (very) detailed budget for a social media management business, to give you some inspiration
1. Office Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Office Rent | Lease for office space | $2,000 | $24,000 |
| Electricity | Power consumption for office equipment | $150 | $1,800 |
| Water | Water usage | $50 | $600 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Insurance | Property and liability insurance | $200 | $2,400 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Social Media Manager | 1 | $4,000 | $4,000 | $48,000 |
| Content Creator | 2 | $3,000 | $6,000 | $72,000 |
| Graphic Designer | 1 | $3,500 | $3,500 | $42,000 |
| Community Manager | 1 | $3,000 | $3,000 | $36,000 |
| Ad Specialist | 1 | $3,500 | $3,500 | $42,000 |
3. Software & Tools
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Social Media Management Tools | Hootsuite, Buffer, etc. | $200 | $2,400 |
| Graphic Design Software | Adobe Creative Cloud, Canva Pro | $100 | $1,200 |
| Analytics Tools | Google Analytics, Socialbakers | $150 | $1,800 |
| Content Scheduling Tools | Later, Planoly | $50 | $600 |
| Stock Photos & Videos | Subscription to stock libraries | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Influencer Collaborations | Partnerships with influencers | $300 | $3,600 |
| Print Advertising | Flyers, posters, magazine ads | $100 | $1,200 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of office equipment | $100 | $1,200 |
| Office Supplies | Stationery, pens, printer ink, etc. | $50 | $600 |
| Licenses & Permits | Business licenses, software licenses | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $200 | $2,400 |
| Staff Training | Training programs and materials | $100 | $1,200 |
Some social managers make 5x more profit than you!
We have studied the strategies of the best social managers in the world. Replicate them now!
What are the biggest expenses for a social media manager?
Be mindful of these pitfalls. Here are five major costs every social media manager needs to consider, along with some tips on how to handle them wisely.
- Content Creation CostsCreating high-quality content can be expensive. You’re dealing with graphic designers, photographers, and copywriters, and prices can vary based on expertise and demand. To keep these costs in check, you should focus on repurposing content, negotiating better rates with freelancers, and using cost-effective tools. Finally, it's easy to overspend by producing too much content or opting for high-end services that don’t add enough value.
- Advertising SpendPaid ads are essential for reaching a wider audience, but they can quickly drain your budget. This cost is always high because you need consistent ad spend to maintain visibility and engagement. You can optimize ad costs by targeting your audience efficiently, using A/B testing, and monitoring ad performance. However, be careful not to overspend on ads that don’t convert or underfund campaigns that show promise.
- Software and ToolsManaging multiple social media accounts requires various tools for scheduling, analytics, and content creation. These tools are essential but can add up quickly. To optimize these costs, choose software that offers multiple functionalities and negotiate for annual subscriptions. Overspending often happens when you subscribe to too many specialized tools that overlap in features.
- Training and DevelopmentKeeping up with the latest trends and algorithms is crucial, but training can be pricey, whether it's online courses, workshops, or certifications. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in expensive courses without a clear return on investment.
- Client Acquisition and RetentionThis includes everything from networking events to CRM software. These are expensive because building and maintaining client relationships are crucial for long-term success. Optimize by investing in effective CRM tools and maintaining regular communication with clients. You can overspend by attending too many events or using high-end CRM systems you don’t really need.
How to spend less with your social media management service?
Here are practical tips to help you, as a social media manager, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Content Creation | Collaborate with local photographers and videographers for high-quality content at lower rates. |
| Advertising | Utilize targeted ads on social media platforms to reach your specific audience and maximize ROI. |
| Software Subscriptions | Choose multi-functional tools that offer a range of features to reduce the need for multiple subscriptions. |
| Influencer Partnerships | Work with micro-influencers who have high engagement rates and offer value-for-money collaborations. |
| Graphic Design | Use free or low-cost design tools like Canva and train your team to create visually appealing content. |
| Analytics | Leverage free analytics tools provided by social media platforms to track performance and adjust strategies. |
| Training and Development | Take advantage of free online courses and webinars to keep your skills up-to-date. |
| Scheduling | Use free or affordable social media scheduling tools to plan and automate posts. |
| Stock Photos | Utilize free stock photo websites or create your own photo library to avoid recurring costs. |
| Community Management | Implement chatbots for initial customer interactions and FAQs to save time and resources. |
| Market Research | Conduct surveys and polls on social media to gather insights without additional costs. |
| Networking | Join free online communities and forums for social media managers to share tips and resources. |
| Content Repurposing | Repurpose existing content across different platforms to maximize its value and reach. |
| Freelancers | Hire freelancers for specific projects to avoid long-term commitments and overhead costs. |
| Contests and Giveaways | Partner with brands for co-hosted contests and giveaways to share costs and increase reach. |
| SEO Tools | Use free SEO tools to optimize your content and improve organic reach. |
| Video Editing | Utilize free or low-cost video editing software to create engaging video content. |
| Event Coverage | Use live streaming features on social media platforms to cover events without additional equipment costs. |
| Brand Monitoring | Set up free alerts and use social listening tools to monitor brand mentions and sentiment. |
| Collaborations | Collaborate with other social media managers for cross-promotions and shared resources. |
| Content Calendar | Maintain a content calendar to plan and organize posts, ensuring consistent and timely content delivery. |
| Hashtag Research | Use free tools to find trending and relevant hashtags to increase the visibility of your posts. |
| Customer Feedback | Encourage customer feedback through social media to improve services and build community trust. |
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Expenses that are just useless for a social media manager
Yes, some expenses for your social media management are just unnecessary. They don't contribute to increasing engagement or improving your brand's online presence.
| Social Media Expense | Reason It's Useless |
|---|---|
| Expensive Graphic Design Software | High-end design tools are often overkill for basic social media graphics and can be a drain on the budget. |
| Premium Stock Photos | Unless you need very specific images, free or affordable stock photo options are usually sufficient. |
| Excessive Paid Ads | Spending too much on ads without a clear strategy can lead to poor ROI. |
| High-End Video Equipment | Top-of-the-line video gear is not always necessary for social media content and can be cost-prohibitive. |
| Print Advertising | Traditional print ads often have a lower return on investment. Don’t include them in your social media strategy. |
| Multiple Social Media Tools | Using too many tools can complicate your workflow and increase costs without adding significant value. |
| Excessive Team Members | Overstaffing leads to higher labor costs without necessarily improving content quality. |
| Premium Analytics Subscriptions | Expensive analytics tools often offer features you don’t need and can be a waste of resources. |
| Exclusive Content Licenses | Paying for exclusive content can inflate costs and complicate your content strategy. |
| Costly Influencer Partnerships | High-end influencers are not always necessary and can be a significant expense. |
| Custom Branded Merchandise | Personalized merchandise is a minor detail that most followers overlook, and it can be expensive. |
| Unnecessary Software Subscriptions | Paying for software with features you don’t use is a waste of resources. |
| Premium Social Media Courses | Most social media knowledge can be gained from free or affordable resources, making expensive courses unnecessary. |
| Extra Social Media Accounts | Maintaining more accounts than needed increases operational costs and dilutes your brand message. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Rebranding | Constantly updating your brand can be costly and disrupt your online presence. |
| Expensive Giveaways | Elaborate giveaways are often ignored by followers and add to the cost. |
| High-End Content Creation Tools | Luxury tools are prone to damage and expensive to replace, often going unnoticed by followers. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Content Designs | Frequently redesigning content is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our social media budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your social media management service!
Managing a budget for a social media campaign when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw your entire strategy off course.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you always scrambling to keep up with the latest trends and algorithms. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, stretching every dollar and barely making an impact. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your engagement and reach. More engagement means more visibility and more opportunities to convert followers into customers.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your engagement by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of social media accounts just like yours. Get them now!
Make your social media management service more profitable
We have studied the strategies of the best social managers in the world. All their tactics are explained in our pack!
