Email Marketing Tool

How Profitable Is An Email Marketing Tool? (Updated for 2024)

Pat Walls

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Updated: October 9th, 2024

How Profitable Is An Email Marketing Tool? (Updated for 2024)

So you want to start an email marketing tool?

And the first question that came to your mind was, “well, are email marketing tools actually profitable?”

Especially considering:

You could start a email marketing tool with as low as $9
Based on our data, email marketing tools generate an average of $11.9M per year
You could see gross margins as high as 75% with email marketing tools

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 email marketing tool.

Let’s dive in!

Is an email marketing tool profitable?

Yes, an email marketing tool 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 $11.9M per year with an estimated gross margin of 65%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your email marketing tool.

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 email marketing tool is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an email marketing tool worth it?

If you’re wondering if a email marketing tool is worth it, the answer is a big YES. With email marketing tools, you have the potential to earn $11.9M 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 email marketing tool 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 email marketing tools case studies.

Examples Of Profitable Email Marketing Tools

Here are a few examples of profitable email marketing tools, and a few more details about them:

1. GMass, Inc. ($5.4M/year)

During his previous business venture, Wordzen, the founder recognized the necessity of sending personalized emails to small groups. After researching available options, he was not satisfied with the solutions offered. Therefore, he developed GMass as an internal tool to aid in managing his business. Although Wordzen failed to gain much traction, GMass proved to be successful and was featured on Product Hunt, giving him the validation that he needed to make the decision to pursue this as a business.

Is it profitable? Yes
How much money it makes: $5.4M/year

How I Launched A $200K/Month Gmail Mail Merge Tool

GMass, an email marketing platform that allows users to send cold emails and email marketing campaigns with Gmail, has attracted over 500,000 user signups, including major tech companies like Uber, LinkedIn, and Google, and now generates over $200K in monthly recurring revenue through a successful content marketing strategy and focused ad spend.

Read this case study

Read by 13,820 founders

2. SendX ($276K/year)

SendX's founder, Varun, came up with the idea for the business while working on another project called ArtCurry. He found the existing email marketing and lead generation tools to be complex and expensive, so he decided to create a platform that would solve these problems. With the technical expertise of his co-founders, they launched SendX in 2016 and have since focused on improving the product and attracting customers through SEO, blogging, and positive reviews.

Is it profitable? Yes
How much money it makes: $276K/year

How We Bootstrapped A $23K/Month Email Marketing Platform From India

SendX, an email marketing company, grew from a public beta launch in January 2017 to a profitable, bootstrapped business generating over $23k in monthly recurring revenue, focusing on SEO, offering a 14 day trial period, and prioritizing product investment and customer support to retain users, with plans to double down on the Shopify and professional blogger segments for future growth.

Read this case study

Read by 7,467 founders

3. SmartrMail ($1.56M/year)

George, co-founder and CEO of SmartrMail, came up with the idea for the business while running an online art marketplace. As they grew, email became an important revenue channel, but existing tools weren't meeting their needs. So, they decided to build their own email app for ecommerce stores, focusing on personalized content and speed.

Is it profitable? Yes
How much money it makes: $1.56M/year

How These Two Founders Built A $1M/Year Email Marketing Platform From Melbourne

SmartrMail is an email marketing app for ecommerce merchants that generated more than $50m in sales last year through sending over a billion emails and making over $100K in monthly recurring revenue, whilst maintaining profitability since the start of this year.

Read this case study

Read by 10,409 founders

Learn more about starting an email marketing tool:

Where to start?

-> How much does it cost to start an email marketing tool?
-> Pros and cons of an email marketing tool

Need inspiration?

-> Other email marketing tool success stories
-> Marketing ideas for an email marketing tool
-> Email marketing tool slogans
-> Email marketing tool names

Other resources

-> Email marketing tool tips
-> Email marketing tool quotes

How much can you make with an email marketing tool?

With a email marketing tool, you can make an average of $11.9M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $9. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a email marketing tool make a week?

Based on our data, average weekly revenue for a email marketing tool ranges around $248K. As such, you could see monthly revenues of $992K.

To know if your email marketing tool 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 email marketing tool.

How much do email marketing tools owners make?

The income of an email marketing tool 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 email marketing tool is about $248K. 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 an email marketing tool owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Email Marketing Tool Profit Margins

Generally speaking, an email marketing tool can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an email marketing tool, 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, email marketing tool 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, email marketing tool owners can ensure long-term sustainability and profitability for their business.

Email marketing tool owner salary

The salary of an email marketing tool 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 email marketing tool, in a prime position, might see an average weekly salary around the ballpark of $161K.

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

If you focus on these, you'll have a much higher chance of a profitable email marketing tool.

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Starting An Email Marketing Tool: Everything You Need To Know

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