Website Development Business

How Profitable Is A Website Development Business? (Updated for 2024)

Pat Walls

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Updated: September 6th, 2024

How Profitable Is A Website Development Business? (Updated for 2024)

So you want to start a website development business?

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

Especially considering:

You could start a website development business with as low as $100
Based on our data, website development businesses generate an average of $4.65M per year
You could see gross margins as high as 90% with website development 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 website development business.

Let’s dive in!

Is a website development business profitable?

Yes, a website development 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 $4.65M per year with an estimated gross margin of 70%, 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 website development 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 website development business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a website development business worth it?

If you’re wondering if a website development business is worth it, the answer is a big YES. With website development businesses, you have the potential to earn $4.65M 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 website development 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 website development businesses case studies.

Examples Of Profitable Website Development Businesses

Here are a few examples of profitable website development businesses, and a few more details about them:

1. Create Circus ($288K/year)

Oliver, the founder of Create Circus, came up with the idea for his business while building his own Shopify branded business during the global lockdowns. He noticed that many stores lacked great branding and quality, so he began offering custom-built templates and designs to make stores stand out. Today, Create Circus has a turnover of around $24,000 a month and is expanding their services to include SEO, SEM, and TikTok marketing.

Is it profitable? Yes
How much money it makes: $288K/year
How much did it cost to start: $1K

How We Launched A $24K/Mo UK-Based Shopify Development Agency

Create Circus, a Shopify development agency that focuses on high-quality e-commerce store creation, started during the later end of the pandemic and has since turned over around $24,000 a month with two amazing full-time project managers and three full-time developers.

Read this case study

Read by 2,808 founders

2. Potion.so ($72K/year)

The idea for Potion.so originated from Noah's thesis that building on top of an existing platform is an effective strategy for creating an indie business. He felt that the approach leverages the established customer base and marketing channels of the platform.

Building on top of another platform is a great strategy for solo entrepreneurs and indie hackers. Your users are already there, making it easier to market your product. Many platforms even have a marketplace where you can list your product and gain customers. — Noah Bragg (Source: YouTube)

Noah had been using Notion and noticed a trend on Twitter where users were creating custom domains for their public Notion pages through a hacky project.

Observing that around 200 people were using this method, he realized there was a demand for a more streamlined solution.

This insight led him to develop Potion, which simplifies the process by allowing users to create websites with custom domains and personalized styling, while the content remains managed in Notion.

Is it profitable? Yes
What's the gross margin? 90%
How much money it makes: $72K/year

How Noah Bragg Built Potion.so to $69K ARR & Sold For $300K

Potion.so is a no-code website builder that transforms Notion pages into custom websites with personalized domains and fast page speeds, ultimately leading to its acquisition for $300K by a software engineer with a Bachelor's degree in Computer Science.

Read this case study

Read by 418 founders

3. Madwire ($102M/year)

JB Kellogg, the Co-Founder and Co-CEO of Madwire, came up with the idea for his business while interning at a travel magazine company. After realizing his talent for website design and seeing the potential for helping businesses grow through digital marketing, JB and his father decided to start Madwire and grew it into a company with over 500 employees and $100 million in annual revenue in less than 10 years. Their mission is to help small businesses grow and make a difference in their local communities.

Is it profitable? Yes
How much money it makes: $102M/year

How I Started A $8.5M/Month Company Providing Marketing Solutions To SMBs

Co-founder of Madwire JB Kellogg grew his business from just the two of them in a tiny office to over 500 employees and $100 million in annual revenue in under 10 years, by focusing on exceptional customer service and a multi-channel inbound strategy.

Read this case study

Read by 13,951 founders

Learn more about starting a website development business:

Where to start?

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

Need inspiration?

-> Other website development business success stories
-> Marketing ideas for a website development business

Other resources

-> Website development business tips

How much can you make with a website development business?

With a website development business, you can make an average of $4.65M 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 7 months.

How much does a website development business make a week?

Based on our data, average weekly revenue for a website development business ranges around $96.9K. As such, you could see monthly revenues of $387K.

To know if your website development 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 website development business.

How much do website development businesses owners make?

The income of a website development 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 website development business is about $96.9K. 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 website development business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Website Development Business Profit Margins

Generally speaking, a website development business can expect profit margin of around 70%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a website development 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, website development 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, website development business owners can ensure long-term sustainability and profitability for their business.

Website development business owner salary

The salary of a website development 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 website development business, in a prime position, might see an average weekly salary around the ballpark of $67.8K.

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

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

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Starting A Website Development Business: Everything You Need To Know

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