Video Marketing Business

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

Pat Walls

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Updated: October 5th, 2024

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

So you want to start a video marketing business?

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

Especially considering:

You could start a video marketing business with as low as $300
Based on our data, video marketing businesses generate an average of $3.26M per year
You could see gross margins as high as 62% with video 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 video marketing business.

Let’s dive in!

Is a video marketing business profitable?

Yes, a video 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 $3.26M per year with an estimated gross margin of 28%, 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 video 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 video marketing business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a video marketing business worth it?

If you’re wondering if a video marketing business is worth it, the answer is a big YES. With video marketing businesses, you have the potential to earn $3.26M 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 video 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 video marketing businesses case studies.

Examples Of Profitable Video Marketing Businesses

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

1. Explainer Videoly Pte. Ltd. ($1.2M/year)

Kasra Design, also known as Explainer Videoly, was founded by Alex Safavinia. With a background in Creative Multimedia, Alex saw the potential in offering animation services to businesses. Starting with email marketing and showcasing their work on social media, the company attracted clients and grew steadily. Today, Kasra Design has completed over 700 projects, generated over half a million dollars in revenue annually, and plans to expand further in the future.

Is it profitable? Yes
How much money it makes: $1.2M/year
How much did it cost to start: $7K

My Animation Passion Led Me To Starting A $480K/Year Business

Kasra Design produces customized animated and live-action explainer videos for corporate clients, enterprises, startups, and nonprofits; it generated around USD70k in the first year and currently generates over half a million dollars with over 700 projects completed and over 400 clients from around the world.

Read this case study

Read by 3,990 founders

2. Breadnbeyond ($2.16M/year)

The founder, Andre Oentoro, started Breadnbeyond in 2009 as a digital agency offering graphic design services. However, after working on a kinetic typography animation project for a client, the company pivoted to focus solely on animated explainer videos. They have since grown their client base, become profitable from day one, and currently have 42 employees.

Is it profitable? Yes
How much money it makes: $2.16M/year
How much did it cost to start: $5K

How We Make $2M/Year Crafting Explainer Videos From Scratch

Discover how a small digital media agency scaled to a thriving animated explainer video company with 42 employees, leveraging international markets and achieving over 100% client growth annually in the early years.

Read this case study

Read by 3,256 founders

3. Lemonlight ($18M/year)

Hope Horner came up with the idea for Lemonlight when he saw an opportunity to bring transparency to the video production industry. With the average cost for a 30-second commercial at $342,000, Lemonlight offered small and medium-sized businesses access to high-quality, affordable video content through pre-built pricing menus and transparent pricing. Since its launch in 2014, Lemonlight has grown to generate $6M in sales per year, with over 7000 videos produced for more than 3000 brands and notable clients including Amazon and TripAdvisor.

Is it profitable? Yes
How much money it makes: $18M/year
How much did it cost to start: $500

How I Started A $500K/Month Video Production Company From My Bedroom in LA

Lemonlight CEO, Hope Horner, co-founded an on-demand video production company that has produced over 7,000 videos for more than 3,000 brands, generating over $6 million in sales and growing to a 45-person team, all without taking any outside capital and being recognized in Inc 5000 and Entrepreneur 360 for three years in a row.

Read this case study

Read by 18,356 founders

Learn more about starting a video marketing business:

Where to start?

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

Need inspiration?

-> Other video marketing business success stories
-> Marketing ideas for a video marketing business

Other resources

-> Video marketing business tips

How much can you make with a video marketing business?

With a video marketing business, you can make an average of $3.26M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $300. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 9 months.

How much does a video marketing business make a week?

Based on our data, average weekly revenue for a video marketing business ranges around $67.9K. As such, you could see monthly revenues of $272K.

To know if your video 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 video marketing business.

How much do video marketing businesses owners make?

The income of a video 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 video marketing business is about $67.9K. 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 video 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.

Video Marketing Business Profit Margins

Generally speaking, a video marketing business can expect profit margin of around 28%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a video 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, video 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, video marketing business owners can ensure long-term sustainability and profitability for their business.

Video marketing business owner salary

The salary of a video 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 video marketing business, in a prime position, might see an average weekly salary around the ballpark of $19K.

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

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Starting A Video Marketing Business: Everything You Need To Know

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