Growth Agency

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

Pat Walls

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Updated: October 6th, 2024

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

So you want to start a growth agency?

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

With a market size of $399B - there’s plenty of business to go around.

Especially considering:

You could start a growth agency with as low as $100
Based on our data, growth agencies generate an average of $575K per year
You could see gross margins as high as 95% with growth 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 growth agency.

Let’s dive in!

Is a growth agency profitable?

Yes, a growth 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 $575K per year with an estimated gross margin of 93%, 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 growth 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 growth agency is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a growth agency worth it?

If you’re wondering if a growth agency is worth it, the answer is a big YES. With growth agencies, you have the potential to earn $575K 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 $399B, 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 growth 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 growth agencies case studies.

Examples Of Profitable Growth Agencies

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

1. MOTIF® ($420K/year)

After facing several failures in his eCommerce journey, Ash, an eCommerce branding and marketing consultant, came up with the idea for his business Motif. He realized that by niching down to the Luxury Fashion industry and offering value-driven marketing services, he could attract and retain clients in a profitable and impactful way. Now, his agency maintains a 75% profit margin and has plans to expand operations and become a pioneer agency in the Luxury Lifestyle space.

Is it profitable? Yes
How much money it makes: $420K/year
How much did it cost to start: $100

How I Started A $10K/Month Growth Digital Agency For Fashion, Luxury And Lifestyle Brands

Learn how a growth-driven digital agency targeting luxury fashion and lifestyle brands grew from making $10k a month to $50k-$100k in recurring revenue, with a niche client focus, specialized content marketing, and a focus on value-based pricing and driving results.

Read this case study

Read by 6,051 founders

2. Rex Marketing and CX ($120K/year)

While leading MyWellbeing's expansion across all 50 states, Ryan Ward realized the dire need for marketing support among small mental health practices. Leveraging his growth marketing expertise and no-code skills, he co-founded Rex Marketing & CX in April 2023, quickly achieving $10,000/month in revenue.

Is it profitable? Yes
What's the gross margin? 53%
How much money it makes: $120K/year
How much did it cost to start: $500

Our Marketing Agency Side Project Hit $10K/Month In Less Than One Year

Case study of Rex Marketing & CX: Growing revenue to $10,000/month in just a year by leveraging AI, automation, and outsourcing, specializing in growth marketing, product development for small businesses in healthcare, financial services, and SaaS spaces.

Read this case study

Read by 2,385 founders

3. Rejoin Media ($1.2M/year)

Michael Gardon, the CEO of Rejoin Media, came up with the idea for his business after realizing that he wanted to break out of the 9-5 job and create a more flexible and balanced lifestyle. With capital to acquire sites and expertise in SEO and content marketing, Gardon launched Rejoin as a portfolio of web-based businesses, generating around $100,000 per month in revenue and growing at a rate of 20% per month. Today, he is focused on diversifying his business and building new products and marketing channels.

Is it profitable? Yes
How much money it makes: $1.2M/year
How much did it cost to start: $50K

CareerCloud

Discover how a founder grew their business to over 1 million users in just one year, generating $10 million in revenue through innovative marketing strategies and strategic partnerships, offering valuable insights for aspiring entrepreneurs looking to scale their own ventures efficiently and effectively.

Read this case study

Read by 1,072 founders

Learn more about starting a growth agency:

Where to start?

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

Need inspiration?

-> Other growth agency success stories
-> Marketing ideas for a growth agency

Other resources

-> Growth agency tips

How much can you make with a growth agency?

With a growth agency, you can make an average of $575K 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 growth agency make a week?

Based on our data, average weekly revenue for a growth agency ranges around $12K. As such, you could see monthly revenues of $47.9K.

To know if your growth 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 growth agency.

How much do growth agencies owners make?

The income of a growth 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 growth agency is about $12K. 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 growth agency owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Growth Agency Profit Margins

Generally speaking, a growth agency can expect profit margin of around 93%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a growth 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, growth 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, growth agency owners can ensure long-term sustainability and profitability for their business.

Growth agency owner salary

The salary of a growth 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 growth agency, in a prime position, might see an average weekly salary around the ballpark of $11.1K.

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

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

Part of

Starting A Growth Agency: Everything You Need To Know

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