Email Automation Platform

How Profitable Is An Email Automation Platform? (Updated for 2024)

Pat Walls

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Updated: September 2nd, 2024

How Profitable Is An Email Automation Platform? (Updated for 2024)

So you want to start an email automation platform?

And the first question that came to your mind was, “well, are email automation platforms actually profitable?”

Especially considering:

You could start a email automation platform with as low as $100
Based on our data, email automation platforms generate an average of $3.55M per year
You could see gross margins as high as 75% with email automation platforms

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 email automation platform.

Let’s dive in!

Is an email automation platform profitable?

Yes, an email automation platform 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 $3.55M per year with an estimated gross margin of 47%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your email automation platform.

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 email automation platform is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an email automation platform worth it?

If you’re wondering if a email automation platform is worth it, the answer is a big YES. With email automation platforms, you have the potential to earn $3.55M 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 email automation platform 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 email automation platforms case studies.

Examples Of Profitable Email Automation Platforms

Here are a few examples of profitable email automation platforms, and a few more details about them:

1. COLDINBOX ($420K/year)

Arthur Backouche came up with the idea for Coldinbox while looking for a new job in growth/digital marketing. He discovered a tool to send bulk invitations on LinkedIn with personalized messages and used it to successfully engage with startups and generate leads. Seeing the potential, he decided to develop his own SaaS product, Coldinbox, which is now being used by B2B entrepreneurs, consultants, and business development managers.

Is it profitable? Yes
How much money it makes: $420K/year

How We Launched A $35K/Month Tool To Send Bulk LinkedIn Messages

Two entrepreneurs developed Coldinbox, a bulk LinkedIn messaging tool that assists B2B business development managers in converting high-value prospects into leads and customers, resulting in $35,000 in monthly profits.

Read this case study

Read by 13,677 founders

2. Stripo ($4.8M/year)

Stripo's founder, Dmytro Kudrenko, a seasoned programmer-turned-entrepreneur, identified a major gap in the email marketing industry when he realized HTML email design required coding skills that marketers usually lack. Launching in 2017, Stripo rapidly grew to one million users worldwide, generating approximately $400,000 in monthly recurring revenue by offering an intuitive, coding-free email template builder with seamless one-click exports to over 80 platforms.

Is it profitable? Yes
How much money it makes: $4.8M/year
How much did it cost to start: $100K

How We Grew Our Email Template Builder From 0 To 1M Users [$400K MRR]

Case study about Dmytro Kudrenko and his flagship product, Stripo, an email template builder for marketers that went from zero to one million users worldwide and has a monthly recurring revenue of about $400,000 in an effort to simplify the email creation process and provide flexibility in email design without coding skills.

Read this case study

Read by 7,712 founders

3. Customer.io ($49.9M/year)

Colin and his co-founder came up with the idea for Customer.io while working at another startup. They noticed that email lists were disconnected from app data, making them outdated and incomplete.

They saw an opportunity to streamline the process by breaking down barriers between developers, marketers, and product teams, facilitating better message management and sending between apps and customers.

And we saw this opportunity to breakdown the barriers between developers and the marketers and product people who were trying to modify content of the email, trying to decide when it was time to send a new email, and really streamline that process of how web and mobile app businesses create, manage, and send all of their messages between their app and their customers. — Colin (Source)

Is it profitable? Yes
How much money it makes: $49.9M/year

Colin Nederkoorn on Scaling Customer.io to $50M ARR

A deep dive into how Customer.io's founder and CEO, Colin Nederkoorn, built a successful marketing automation platform with revenue of $4.16M/month and annual earnings of $49.9M using growth strategies like Twitter engagement, landing pages, and content marketing before offering pricing plans starting at $100/month.

Read this case study

Read by 429 founders

Learn more about starting an email automation platform:

Where to start?

-> How much does it cost to start an email automation platform?
-> Pros and cons of an email automation platform

Need inspiration?

-> Other email automation platform success stories
-> Marketing ideas for an email automation platform
-> Email automation platform slogans
-> Email automation platform names

Other resources

-> Email automation platform tips

How much can you make with an email automation platform?

With a email automation platform, you can make an average of $3.55M 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 12 months.

How much does a email automation platform make a week?

Based on our data, average weekly revenue for a email automation platform ranges around $74K. As such, you could see monthly revenues of $296K.

To know if your email automation platform 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 email automation platform.

How much do email automation platforms owners make?

The income of an email automation platform 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 email automation platform is about $74K. 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 an email automation platform owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Email Automation Platform Profit Margins

Generally speaking, an email automation platform can expect profit margin of around 47%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an email automation platform, 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, email automation platform 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, email automation platform owners can ensure long-term sustainability and profitability for their business.

Email automation platform owner salary

The salary of an email automation platform 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 email automation platform, in a prime position, might see an average weekly salary around the ballpark of $34.8K.

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

If you focus on these, you'll have a much higher chance of a profitable email automation platform.

Part of

Starting An Email Automation Platform: Everything You Need To Know

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