Website Building Agency

How Profitable Is A Website Building Agency? (Updated for 2024)

Pat Walls

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Updated: July 23rd, 2024

How Profitable Is A Website Building Agency? (Updated for 2024)

So you want to start a website building agency?

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

With a market size of $40.8B - there’s plenty of business to go around.

Especially considering:

You could start a website building agency with as low as $30
Based on our data, website building agencies generate an average of $2.38M per year
You could see gross margins as high as 64% with website building agencies

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 building agency.

Let’s dive in!

Is a website building agency profitable?

Yes, a website building agency 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 $2.38M per year with an estimated gross margin of 90%, 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 building agency.

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 building agency is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a website building agency worth it?

If you’re wondering if a website building agency is worth it, the answer is a big YES. With website building agencies, you have the potential to earn $2.38M 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 $40.8B, 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 building agency 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 building agencies case studies.

Examples Of Profitable Website Building Agencies

Here are a few examples of profitable website building agencies, and a few more details about them:

1. Woww ($960K/year)

Felix Norton, the founder of Woww Digital, came up with the idea for his business while he was still a student studying Computer Science. He started building websites for friends and family on the side, which eventually became a full-time business. As the demand for digital marketing services grew, Felix and his team expanded their offerings to provide a holistic solution for clients to succeed online. They have achieved consistent growth, even during the pandemic, and are on track to reach their goal of $1 million MRR in 2026.

Is it profitable? Yes
How much money it makes: $960K/year
How much did it cost to start: $250

How We Started An $80K/Month WordPress Design Business [Cape Town]

Woww Digital is a Cape Town based digital marketing agency specializing in WordPress web design, achieving consistent 60% YoY growth through a pandemic and providing a complete solution to help clients start, grow and thrive online.

Read this case study

Read by 2,900 founders

2. Huemor ($3M/year)

Example: Jeff, the co-founder of Huemor, started his journey as a graphic design student who freelanced to gain experience and earn money. After feeling unfulfilled in a corporate job, Jeff joined forces with a friend to build an internal agency for a media placement company. When the work environment turned toxic, they made a bold move to start their own agency, Huemor, and haven't looked back since. They've helped over 200 companies transform their digital presence and earned over 100 international awards, while maintaining a simple, customer-focused approach.

Is it profitable? Yes
How much money it makes: $3M/year
How much did it cost to start: $0

How We Started A $3M/Year Digital Marketing Agency In Just 90 Days

Huemor is a successful digital marketing agency with over 200 company transformations, over 100 international awards, and a team beyond 40 people, scaling YoY at 74%, with an average project value of $67,500 and 2.7 year average client relationship.

Read this case study

Read by 4,258 founders

3. Antropy ($720K/year)

Paul Feakins' childhood fascination with computers led him to launch Antropy, an e-commerce web agency. Starting alone in his bedroom, he grew the company to cater to clients like The Mirror Group and Coca Cola, achieving record monthly profits of over £30k.

Is it profitable? Yes
What's the gross margin? 64%
How much money it makes: $720K/year
How much did it cost to start: $500

How I Scaled My Ecommerce Agency to $38K/Month

This case study is about a UK-based e-commerce web agency that specializes in building fast and high-converting online shops using open source software, with clients ranging from startups to well-known companies like The Mirror Group, UCL, and Coca Cola, and has recently achieved a record monthly profit of over £30k.

Read this case study

Read by 1,471 founders

Learn more about starting a website building agency:

Where to start?

-> Website building agency plan
-> How to finance a website building agency?
-> How much does it cost to start a website building agency?
-> Pros and cons of a website building agency

Need inspiration?

-> Other website building agency success stories

Other resources

-> Website building agency tips

How much can you make with a website building agency?

With a website building agency, you can make an average of $2.38M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $30. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a website building agency make a week?

Based on our data, average weekly revenue for a website building agency ranges around $49.5K. As such, you could see monthly revenues of $198K.

To know if your website building agency 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 building agency.

How much do website building agencies owners make?

The income of a website building agency 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 building agency is about $49.5K. 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 building agency owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Website Building Agency Profit Margins

Generally speaking, a website building agency can expect profit margin of around 90%. 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 building agency, 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 building agency 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 building agency owners can ensure long-term sustainability and profitability for their business.

Website building agency owner salary

The salary of a website building agency 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 building agency, in a prime position, might see an average weekly salary around the ballpark of $44.6K.

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, a website building agency is quite promising if you plan on starting such. With a market size of $40.8B, you can enjoy a potential revenue of around $2.38M per year with a gross margin of 90%.

Considering this information, you can enjoy a return of investment within 7 months, especially if you have a monthly profit of $178K. Overall, the success of your website building agency also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this website building agency is profitable.

Make sure you have a proper website building agency plan and know how to get clients for your website building agency.

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Starting A Website Building Agency: Everything You Need To Know

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