How Profitable Is An Online Signature Tool? (Updated for 2024)
So you want to start an online signature tool?
And the first question that came to your mind was, “well, are online signature tools actually profitable?”
With a market size of $4.03B - there’s plenty of business to go around.
Especially considering:
- You could start a online signature tool with
- Based on our data, online signature tools generate an average of $885K per year
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 signature tool.
Let’s dive in!
Is an online signature tool profitable?
Yes, an online signature tool 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 $885K per year with an estimated gross margin of 83%, 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 online signature tool.
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 signature tool is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.
Is an online signature tool worth it?
If you’re wondering if a online signature tool is worth it, the answer is a big YES. With online signature tools, you have the potential to earn $885K 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 $4.03B, 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 signature tool 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 signature tools case studies.
Examples Of Profitable Online Signature Tools
Here are a few examples of profitable online signature tools, and a few more details about them:
1. Edusign ($2.16M/year)
Eliot and his co-founder, Dylan, came up with their business idea after facing the problem of losing multiple attendance sheets during their master's program.
To solve this issue, they initially created a small prototype to digitize the attendance sheets.
Following a few weeks of testing and realizing the potential was much larger than anticipated, they decided to develop a full-scale Software as a Service (SaaS) solution designed to cater to the needs of schools and training organizations.
Is it profitable? Yes
How much money it makes: $2.16M/year
Edusign revolutionizes attendance tracking and e-signatures for training organizations, generating an average revenue of $2.16M/year and serving over 25,000 students through digital marketing courses on Udemy.
2. MySignature ($660K/year)
While working as a marketer for a TV manufacturer, Vol realized the inefficiency of manually creating email signatures for each employee. With $10K in savings, he quit his job and launched Newoldstamp in 2015, later acquiring MySignature, which now boasts over 500K users and generates nearly $700K annually.
Is it profitable? Yes
How much money it makes: $660K/year
How much did it cost to start: $10K
Discover how Solva, the multiproduct company behind Newoldstamp and MySignature, successfully transformed MySignature from a simple email signature generator to a marketing hub, attracting over 500k users worldwide and generating almost $700K in annual revenue, all while remaining fully bootstrapped.
3. CocoSign ($240K/year)
Caroline, the CEO of CocoSign, came up with the idea for their digital signature platform during the 2020 pandemic when businesses were struggling to physically exchange documents. Recognizing the rising demand for e-signature providers, Caroline and her team set out to create an exceptional solution that offers a user-friendly interface and robust features. Since their launch in 2020, CocoSign has seen impressive success, generating monthly revenue of 67.3K from 2000 sales and experiencing a 5% increase in customers every month.
Is it profitable? Yes
How much money it makes: $240K/year
How much did it cost to start: $10K
CocoSign is a digital signature platform generating a monthly revenue of 67.3K from 2000 sales, boasting a 5% increase in customers each month, and offering valuable features such as customer rewards, API integrations, helpful customer service, and simple & effective marketing strategies.
Learn more about starting an online signature tool:
Where to start?
-> How much does it cost to start an online signature tool?
-> Pros and cons of an online signature tool
Need inspiration?
-> Other online signature tool success stories
-> Marketing ideas for an online signature tool
Other resources
How much can you make with an online signature tool?
With a online signature tool, you can make an average of $885K revenue per year (based on data reported by real businesses).
You can start with an initial investment . Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.
How much does a online signature tool make a week?
Based on our data, average weekly revenue for a online signature tool ranges around $18.4K. As such, you could see monthly revenues of $73.8K.
To know if your online signature tool 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 signature tool.
How much do online signature tools owners make?
The income of an online signature tool 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 signature tool is about $18.4K. 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 signature tool owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.
Online Signature Tool Profit Margins
Generally speaking, an online signature tool can expect profit margin of around 83%. 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 signature tool, 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 signature tool 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 signature tool owners can ensure long-term sustainability and profitability for their business.
Online signature tool owner salary
The salary of an online signature tool 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 signature tool, in a prime position, might see an average weekly salary around the ballpark of $15.3K.
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 signature tool may be a promising business to start - but the success of your online signature tool mostly depends on your effort and your approach.
If you focus on these, you'll have a much higher chance of a profitable online signature tool.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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