Virtual Events Business

How Profitable Is A Virtual Events Business? (Updated for 2024)

Pat Walls

•

Updated: September 1st, 2024

How Profitable Is A Virtual Events Business? (Updated for 2024)

So you want to start a virtual events business?

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

With a market size of $211B - there’s plenty of business to go around.

Especially considering:

You could start a virtual events business with as low as $500
Based on our data, virtual events businesses generate an average of $3.08M per year
You could see gross margins as high as 40% with virtual events 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 virtual events business.

Let’s dive in!

Is a virtual events business profitable?

Yes, a virtual events 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 $3.08M per year with an estimated gross margin of 93%, you could expect to recover your investment within 7 months or even less.

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

Is a virtual events business worth it?

If you’re wondering if a virtual events business is worth it, the answer is a big YES. With virtual events businesses, you have the potential to earn $3.08M 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 $211B, 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 virtual events 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 virtual events businesses case studies.

Examples Of Profitable Virtual Events Businesses

Here are a few examples of profitable virtual events businesses, and a few more details about them:

1. Entire Productions ($1.3M/year)

Natasha Miller came up with the idea for Entire Productions when she was double and triple booked for private parties as a performer. Instead of turning down the gigs, she offered to bring in other talented performers and manage the whole process, unknowingly creating a mini empire. With a focus on experience design, Entire Productions has now grown into a fast-growing event and entertainment production company, primarily serving corporate clients in tech and pharma.

Is it profitable? Yes
How much money it makes: $1.3M/year

How Natasha Miller Started A $4M Event Management Company

Entire Productions is a fast-growing event and entertainment production company with an emphasis on experience design, primarily working with corporate clients including many Fortune 500 companies in the tech and pharma industries, boasting a growth of 148% and a goal of reaching $20M annual mark.

Read this case study

Read by 8,864 founders

2. Ah Real Magic LLC ($240K/year)

Gary Ferrar, a college theater major turned professional magician and mentalist, came up with the idea to start his business after performing for pediatric units in hospitals and realizing his talent for magic. He saw an opportunity in the industry, with magicians lacking internet presence and quality photos and videos. Gradually, he transitioned from performing for kids to targeting high-end clients and corporations, and now earns over $40K per month with clients including Verizon, Amazon, Google, and Facebook.

Is it profitable? Yes
How much money it makes: $240K/year
How much did it cost to start: $500

How I Started A $25K/Month Career As A Magician And Mentalist

Gary Ferrar, a professional magician and mentalist, shares how he marketed himself to high-end clients and corporations, resulting in a 25k/month career which has included performances for clients such as Google, Facebook, Uber, and Pepsi.

Read this case study

Read by 6,259 founders

3. EMS Events ($600K/year)

Amana Feline's "aha" moment came when she saw event organizers struggling with equipment rentals, prompting her to start EMS Events in 1997. Today, her company generates $50K monthly, serving 500-600 events annually in London.

Is it profitable? Yes
What's the gross margin? 40%
How much money it makes: $600K/year
How much did it cost to start: $1K

My Event Production Company Brings In $50K/Mo

Case study about the growth of an event production company in London that started in 1997, now making $50K monthly and aiming to reach $90K by offering event equipment and services such as LED video walls, sound systems, and lighting hire, serving corporate events and focusing on exhibitions for revenue growth.

Read this case study

Read by 573 founders

Learn more about starting a virtual events business:

Where to start?

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

Need inspiration?

-> Other virtual events business success stories
-> Marketing ideas for a virtual events business
-> Virtual events business slogans
-> Virtual events business names

Other resources

-> Virtual events business tips

How much can you make with a virtual events business?

With a virtual events business, you can make an average of $3.08M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a virtual events business make a week?

Based on our data, average weekly revenue for a virtual events business ranges around $64.2K. As such, you could see monthly revenues of $257K.

To know if your virtual events 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 virtual events business.

How much do virtual events businesses owners make?

The income of a virtual events 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 virtual events business is about $64.2K. 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 a virtual events business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Virtual Events Business Profit Margins

Generally speaking, a virtual events business 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 virtual events 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, virtual events 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, virtual events business owners can ensure long-term sustainability and profitability for their business.

Virtual events business owner salary

The salary of a virtual events 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 virtual events business, in a prime position, might see an average weekly salary around the ballpark of $59.7K.

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

If you focus on these, you'll have a much higher chance of a profitable virtual events business.

Part of

Starting A Virtual Events Business: Everything You Need To Know

‹

›