Online Marketing Business

Profitability

How Profitable Is An Online Marketing Business? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is An Online Marketing Business? (Updated for 2024)

So you want to start an online marketing business?

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

Especially considering:

You could start a online marketing business with as low as $100
Based on our data, online marketing businesses generate an average of $2.02M per year
You could see gross margins as high as 80% with online 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 online marketing business.

Let’s dive in!

Is an online marketing business profitable?

Yes, an online 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 $2.02M per year with an estimated gross margin of %, you could expect to recover your investment within months or even less.

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

Is an online marketing business worth it?

If you’re wondering if a online marketing business is worth it, the answer is a big YES. With online marketing businesses, you have the potential to earn $2.02M 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 online 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 online marketing businesses case studies.

Examples Of Profitable Online Marketing Businesses

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

1. Prop Media ($186K/year)

Ebs Turner started Prop Media after realizing that traditional advertising was cost-inefficient for companies. His breakthrough came during his university years while balancing exams and entrepreneurship, eventually growing his London-based marketing agency to $18,000/month.

Is it profitable? Yes
How much money it makes: $186K/year
How much did it cost to start: $0

How I Started A $15K/Month Marketing Agency Specialised In Lead Generation

A 25-year-old entrepreneur shares his journey of starting a property marketing agency, with a current monthly income of $18,000/month, and divulges the importance of having a niche and going all-in on client results and experience.

Read this case study

Read by 6,861 founders

2. Spreadtheworld ($24K/year)

Xavier Coiffard, a developer turned solo entrepreneur, came up with the idea for his business, Spreadtheworld, after struggling to find online places to post his startup. He curated a list of 100 places and shared it on Reddit and IndieHackers, which gained significant traction. This led him to create a product, and from there, he launched several other successful ventures following a similar approach.

Is it profitable? Yes
How much money it makes: $24K/year
How much did it cost to start: $0

How I Created A $2K/Month Startup Marketing Database Using No-Code Tools

Learn how Xavier Coiffard generated $2000 per month in revenue by building 4 products in 4 months with no-code tools like Carrd, Airtable, Gumroad, and Zapier, as well as how he soft launched his products on Twitter and iterated on his launch strategy.

Read this case study

Read by 4,396 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 1,067 founders

Learn more about starting an online marketing business:

Where to start?

Need inspiration?

-> Other online marketing business success stories

Other resources

How much can you make with an online marketing business?

With a online marketing business, you can make an average of $2.02M 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 months.

How much does a online marketing business make a week?

Based on our data, average weekly revenue for a online marketing business ranges around $42.2K. As such, you could see monthly revenues of $169K.

To know if your online 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 online marketing business.

How much do online marketing businesses owners make?

The income of an online 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 online marketing business is about $42.2K. 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 an online 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.

Online Marketing Business Profit Margins

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

Online marketing business owner salary

The salary of an online 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 online marketing business, in a prime position, might see an average weekly salary around the ballpark of .

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 online marketing business may be a promising business to start - but the success of your online 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 online marketing business.