Coding Business

How Profitable Is A Coding Business? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Coding Business? (Updated for 2024)

So you want to start a coding business?

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

With a market size of $10.6B - there’s plenty of business to go around.

Especially considering:

You could start a coding business with as low as $250
Based on our data, coding businesses generate an average of $259K per year
You could see gross margins as high as 30% with coding businesses

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 coding business.

Let’s dive in!

Is a coding business profitable?

Yes, a coding business 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 $259K per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

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

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

Is a coding business worth it?

If you’re wondering if a coding business is worth it, the answer is a big YES. With coding businesses, you have the potential to earn $259K 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 $10.6B, 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 coding business 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 coding businesses case studies.

Examples Of Profitable Coding Businesses

Here are a few examples of profitable coding businesses, and a few more details about them:

2. UltraShock Gaming ($15K/year)

Hassan, the founder and CEO of UltraShock Gaming, came up with the idea for his indie game marketing firm when he noticed the struggles indie game developers faced in getting their games on large PC platforms like Steam. Inspired by their frustrations, he decided to create a platform to help these developers with marketing, copywriting, and beta testing in exchange for a percentage of profits. With a community of over 500,000 gamers, UltraShock Gaming has generated $15k in revenue per year, with $12k in profit.

Is it profitable? Yes
How much money it makes: $15K/year
How much did it cost to start: $4K

How I Started And Sold A $15K/Year Video Game Marketing Business

Aspiring founders looking to start a profitable business can learn from the story of how Hassan founded UltraShock Gaming, an indie game marketing firm, built up an audience of over 500,000 gamers, and generated $15k in annual revenue (with $12k profit) in just 2 years by offering marketing and advertising services for indie game developers.

Read this case study

Read by 4,553 founders

3. Creme Digital ($1.2M/year)

Jacob Klug, a 20-year-old entrepreneur, launched Creme Digital at 17 after realizing the power of no-code tools like Bubble during the COVID-19 pandemic. His high-school hustle turned into a $100k/month business, building apps for startups and Fortune 500 companies alike.

Is it profitable? Yes
What's the gross margin? 30%
How much money it makes: $1.2M/year
How much did it cost to start: $250

I Built A $1.2M No-Code Agency At 17 Years Old

Scaling from a high-school side hustle to a $100k/month powerhouse, this case study shows how leveraging no-code tools and a bi-weekly subscription model can turn a fledgling startup into a successful digital agency with 30% net profit margins.

Read this case study

Read by 6,068 founders

Learn more about starting a coding business:

Where to start?

-> How much does it cost to start a coding business?
-> Pros and cons of a coding business

Need inspiration?

-> Other coding business success stories

Other resources

-> Coding business tips

How much can you make with a coding business?

With a coding business, you can make an average of $259K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $250. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a coding business make a week?

Based on our data, average weekly revenue for a coding business ranges around $5.39K. As such, you could see monthly revenues of $21.6K.

To know if your coding business 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 coding business.

How much do coding businesses owners make?

The income of a coding business 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 coding business is about $5.39K. 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 coding business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Coding Business Profit Margins

Generally speaking, a coding business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a coding business, 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, coding business 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, coding business owners can ensure long-term sustainability and profitability for their business.

Coding business owner salary

The salary of a coding business 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 coding business, in a prime position, might see an average weekly salary around the ballpark of $4.85K.

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

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

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Starting A Coding Business: Everything You Need To Know

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