Business Idea

Start An Animation Business

About

Starting 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
$38.7K
gross margin
27%
avg product price
$25
time to build
6 months
growth
Direct sales
business model
Consulting/Agency
time investment
Full time

About

Starting 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
$38.7K
gross margin
27%
avg product price
$25

 

time to build
6 months
growth
Direct sales
business model
Consulting/Agency
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $525 $5,500
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
App Creation Costs $1,000 $20,000
Software Expenses $150 $3,044
Advertising & Marketing Costs $75 $4,736
Other Expenses $0 $800
Total Startup Costs $7,617 $69,730

Successful Businesses

Business URL Rank
Vyond vyond.com #11,267
Explainify explainify.com #232,401
Animax Designs animaxdesigns.com #1,634,658
drive80 drive80.com #10,236,611

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

    Word of mouth

    The most tried and true way to grow a animation business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 2

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to animation business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.