Digital Marketing Business

How Profitable Is A Digital Marketing Business? (Updated for 2024)

Pat Walls

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Updated: October 8th, 2024

How Profitable Is A Digital Marketing Business? (Updated for 2024)

So you want to start a digital marketing business?

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

Especially considering:

You could start a digital marketing business with as low as $8
Based on our data, digital marketing businesses generate an average of $1.43M per year
You could see gross margins as high as 95% with digital marketing 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 digital marketing business.

Let’s dive in!

Is a digital marketing business profitable?

Yes, a digital marketing 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 $1.43M per year with an estimated gross margin of 23%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your digital marketing 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 digital marketing business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a digital marketing business worth it?

If you’re wondering if a digital marketing business is worth it, the answer is a big YES. With digital marketing businesses, you have the potential to earn $1.43M 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 digital marketing 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 digital marketing businesses case studies.

Examples Of Profitable Digital Marketing Businesses

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

1. Watson Digital ($233K/year)

Jacob Dazzeo, founder of Watson Digital, came up with the idea for his online marketing company after working in a digital marketing company and realizing he could offer services in conversion rate optimization, pay-per-click advertising, and social media remarketing. By leveraging his expertise and forming strategic partnerships, Dazzeo was able to replace his corporate salary and achieve a four-hour workweek within a year of starting his business.

Is it profitable? Yes
What's the gross margin? 90%
How much money it makes: $233K/year
How much did it cost to start: $100

Leaving A Corporate Job To Start A $6K/Month Conversion Rate Optimization Company

Founder Jacob Dazzeo shares his success story of building Watson Digital, an online marketing company, in less than a year which completely replaced his corporate salary and cut his workweek while focusing on products that help businesses grow their online sales funnel.

Read this case study

Read by 6,847 founders

2. Custom Creatives ($3.6M/year)

Rahul Alim, the founder of Custom Creatives, initially started his career in sales, but after leaving Realtor.com, he started his own company offering marketing services to real estate agents. However, it wasn't until a client requested a banner ad that he pivoted to focus on digital marketing, and CustomCreatives.com was born. Since then, the agency has grown to serve a wide range of industries, and their emphasis on providing value and superior service has helped them retain clients for over a decade and achieve consistent seven-figure revenue.

Is it profitable? Yes
How much money it makes: $3.6M/year

How I Started A $100K/Month Digital Marketing Agency

Digital marketing agency founder Rahul Alim shares how he grew his business to consistently generate over 7-figures in revenue year-over-year and retain clients for many years through affordable digital marketing strategies that employ the CAP method (Customer Acquisition Program).

Read this case study

Read by 10,688 founders

3. GreenBanana ($7.2M/year)

Kevin Roy, co-founder of GreenBanana SEO, came up with the idea for his business when he realized that clients were looking for simple and quantifiable results from SEO and digital marketing campaigns. After a difficult client meeting, he decided to focus on pay-for-performance SEO and transparent reporting that centered around customer goals and lead generation. With 16 employees and $6 million in revenue, GreenBanana SEO has been listed on the Inc 5000 for the past three years.

Is it profitable? Yes
How much money it makes: $7.2M/year

How I Started A $600K/Month Performance-Based Digital Marketing Company

GreenBanana SEO co-founder Kevin Roy explains how his digital marketing company grew from just two employees working on a beer pong table to 16 employees generating around $6 million in annual revenue by focusing on pay-for-performance SEO and being transparent with reporting.

Read this case study

Read by 7,817 founders

Learn more about starting a digital marketing business:

Where to start?

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

Need inspiration?

-> Other digital marketing business success stories
-> Marketing ideas for a digital marketing business
-> Digital marketing business slogans
-> Digital marketing business Instagram bios
-> Digital marketing business Instagram captions

Other resources

-> Digital marketing business tips

How much can you make with a digital marketing business?

With a digital marketing business, you can make an average of $1.43M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $8. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a digital marketing business make a week?

Based on our data, average weekly revenue for a digital marketing business ranges around $30.2K. As such, you could see monthly revenues of $121K.

To know if your digital marketing 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 digital marketing business.

How much do digital marketing businesses owners make?

The income of a digital marketing 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 digital marketing business is about $30.2K. 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 digital marketing business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Digital Marketing Business Profit Margins

Generally speaking, a digital marketing business can expect profit margin of around 23%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a digital marketing 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, digital marketing 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, digital marketing business owners can ensure long-term sustainability and profitability for their business.

Digital marketing business owner salary

The salary of a digital marketing 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 digital marketing business, in a prime position, might see an average weekly salary around the ballpark of $6.95K.

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

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

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Starting A Digital Marketing Business: Everything You Need To Know

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