Branding Agency

How Profitable Is A Branding Agency? (Updated for 2024)

Pat Walls

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Updated: September 4th, 2024

How Profitable Is A Branding Agency? (Updated for 2024)

So you want to start a branding agency?

And the first question that came to your mind was, “well, are branding agencies actually profitable?”

Especially considering:

You could start a branding agency with as low as $100
Based on our data, branding agencies generate an average of $799K per year
You could see gross margins as high as 95% with branding agencies

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 branding agency.

Let’s dive in!

Is a branding agency profitable?

Yes, a branding agency 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 $799K per year with an estimated gross margin of 22%, you could expect to recover your investment within 9 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your branding agency.

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 branding agency is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a branding agency worth it?

If you’re wondering if a branding agency is worth it, the answer is a big YES. With branding agencies, you have the potential to earn $799K 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 branding agency 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 branding agencies case studies.

Examples Of Profitable Branding Agencies

Here are a few examples of profitable branding agencies, and a few more details about them:

1. OrangeBall Creative ($480K/year)

Beau Nordby, along with his partners, launched OrangeBall Creative in 2012, initially offering print and digital creative services. However, they realized that their clients struggled with finding the right words to describe their businesses and differentiate themselves. This led them to create Brand Bounce Bootcamp, a set of exercises designed to help businesses simplify their marketing messages and tell their stories. They now offer these exercises in a downloadable, online format, bringing affordable marketing help to small and mid-sized businesses.

Is it profitable? Yes
How much money it makes: $480K/year

How We Started And Grew A Branding Agency To $40K/Month

OrangeBall Creative's co-founder shares how they launched Brand Bounce Bootcamp, a set of brand messaging exercises that has helped hundreds of businesses simplify their marketing messages, differentiate themselves, and understand their audience's driving forces.

Read this case study

Read by 5,510 founders

2. Above 8000 Creative ($120K/year)

Mimi and Delaney, the founders of Above 8000 Creative, came up with the idea for their business after realizing the demand for affordable and high-quality branding services for small businesses. They used their experience in graphic design, photography, and content creation to offer a full-service creative agency, helping other businesses stand out in their industries. With word-of-mouth referrals and targeted outreach on platforms like Instagram, they have successfully attracted and retained clients, leading to profitability and future growth.

Is it profitable? Yes
How much money it makes: $120K/year

How We Went From Side Hustle To Profitable Agency

Above 8000 Creative is a successful creative agency started as a side hustle by a husband and wife team, specializing in graphic design, website design, photography, content creation, and Instagram marketing, and has grown to include many clients and services due to word of mouth referrals.

Read this case study

Read by 5,318 founders

3. VixelStudio ($240K/year)

At age 12, Munir's curiosity in tinkering with computers turned into a passion for web design. After various entrepreneurial attempts during college, he co-founded Vixel Studio with friends by capitalizing on ubiquitous lawn signs saying "Need a website?"—driving them to generate $20,000 per month within eight months.

Is it profitable? Yes
What's the gross margin? 75%
How much money it makes: $240K/year
How much did it cost to start: $500

$20K Per Month Agency In Just 8 Months

A young entrepreneur started a Web Design and SEO Company, Vixel Studio, generating over $20,000 per month within eight months of launch, managing over 50 clients and doubling that amount over the next four months, with a goal to generate $300,000 in revenue by the end of 2024 and scale to generate 1-4 million per year.

Read this case study

Read by 5,997 founders

Learn more about starting a branding agency:

Where to start?

-> How much does it cost to start a branding agency?
-> Pros and cons of a branding agency

Need inspiration?

-> Other branding agency success stories
-> Marketing ideas for a branding agency
-> Branding agency slogans
-> Branding agency names
-> Branding agency Instagram bios

Other resources

-> Branding agency tips

How much can you make with a branding agency?

With a branding agency, you can make an average of $799K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 9 months.

How much does a branding agency make a week?

Based on our data, average weekly revenue for a branding agency ranges around $16.6K. As such, you could see monthly revenues of $66.5K.

To know if your branding agency 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 branding agency.

How much do branding agencies owners make?

The income of a branding agency 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 branding agency is about $16.6K. 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 branding agency owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Branding Agency Profit Margins

Generally speaking, a branding agency can expect profit margin of around 22%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a branding agency, 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, branding agency 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, branding agency owners can ensure long-term sustainability and profitability for their business.

Branding agency owner salary

The salary of a branding agency 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 branding agency, in a prime position, might see an average weekly salary around the ballpark of $3.66K.

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 branding agency may be a promising business to start - but the success of your branding agency mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable branding agency.

Part of

Starting A Branding Agency: Everything You Need To Know

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