Digital Goods Platform

How Profitable Is A Digital Goods Platform? (Updated for 2024)

Pat Walls

•

Updated: October 6th, 2024

How Profitable Is A Digital Goods Platform? (Updated for 2024)

So you want to start a digital goods platform?

And the first question that came to your mind was, “well, are digital goods platforms actually profitable?”

With a market size of $79.6B - there’s plenty of business to go around.

Especially considering:

You could start a digital goods platform with as low as $100
Based on our data, digital goods platforms generate an average of $980K per year

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 digital goods platform.

Let’s dive in!

Is a digital goods platform profitable?

Yes, a digital goods platform 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 $980K per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your digital goods platform.

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 digital goods platform is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a digital goods platform worth it?

If you’re wondering if a digital goods platform is worth it, the answer is a big YES. With digital goods platforms, you have the potential to earn $980K 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 $79.6B, 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 digital goods platform 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 digital goods platforms case studies.

Examples Of Profitable Digital Goods Platforms

Here are a few examples of profitable digital goods platforms, and a few more details about them:

1. Streamloots ($1.8M/year)

Vicent, co-founder and CMO of Streamloots, came up with the idea to help streamers monetize their audience and not rely on third-party platforms like Twitch, Youtube Gaming, or Facebook Gaming. They created a marketplace where viewers can buy real-time interactions with streamers, allowing streamers to sell the gift of interaction in the form of chests. They have since grown to have a community of more than 12K active streamers and earned over $1M in revenue in the last quarter.

Is it profitable? Yes
How much money it makes: $1.8M/year

How We Started A $150K/Month Platform Where Streamers Can Monetize Their Audience

Streamloots is a marketplace where viewers can buy real-time interactions with live streamers, allowing content creators to monetize their audiences and earning over $1M in just the last quarter with a community of more than 12K active streamers.

Read this case study

Read by 11,128 founders

Learn more about starting a digital goods platform:

Where to start?

-> Digital goods platform plan
-> How to finance a digital goods platform?
-> How much does it cost to start a digital goods platform?
-> Pros and cons of a digital goods platform

Need inspiration?

-> Other digital goods platform success stories
-> Marketing ideas for a digital goods platform

Other resources

-> Digital goods platform tips

How much can you make with a digital goods platform?

With a digital goods platform, you can make an average of $980K 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 12 months.

How much does a digital goods platform make a week?

Based on our data, average weekly revenue for a digital goods platform ranges around $20.4K. As such, you could see monthly revenues of $81.7K.

To know if your digital goods platform 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 digital goods platform.

How much do digital goods platforms owners make?

The income of a digital goods platform 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 digital goods platform is about $20.4K. 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 digital goods platform owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Digital Goods Platform Profit Margins

Generally speaking, a digital goods platform can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a digital goods platform, 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, digital goods platform 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, digital goods platform owners can ensure long-term sustainability and profitability for their business.

Digital goods platform owner salary

The salary of a digital goods platform 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 digital goods platform, in a prime position, might see an average weekly salary around the ballpark of $17K.

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

If you focus on these, you'll have a much higher chance of a profitable digital goods platform.

Part of

Starting A Digital Goods Platform: Everything You Need To Know

‹

›