Business Idea

Start An Animation Business

About

Becoming an animation business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell animation, or selling animation online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an animation business ➜

Key stats

market size
$270B
revenue (monthly)
$7K
starting costs
$38.8K
gross margin
27%
avg product price
$25
time to build
6 months
growth
Word of mouth
business model
Consulting
time investment
Side project

About

Becoming an animation business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell animation, or selling animation online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an animation business ➜

Key stats

market size
$270B
revenue (monthly)
$7K
starting costs
$38.8K
gross margin
27%
avg product price
$25

 

time to build
6 months
growth
Word of mouth
business model
Consulting
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
App Creation Costs $1,000 $20,000
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $4,736
Other Expenses $0 $800
Total Startup Costs $8,604 $68,797

Successful Businesses

Business URL Rank
GIPHY giphy.com #524
Vyond vyond.com #11,267
GreenSock greensock.com #26,020
Animate.css animate.style #34,285
SVGator: Free SVG Animation Creator Online svgator.com #58,791
Cartoon Brew cartoonbrew.com #61,346
GIFGIFs gifgifs.com #63,002
Piskel piskelapp.com #64,865
School of Visual Arts sva.edu #84,379
Bloop Animation bloopanimation.com #87,853
Online 3D Animation School animschool.com #118,172

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a animation business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a animation business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Animation Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A animation business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your animation business are typically around 27%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the animation business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.