Explainer Video Business

How Profitable Is An Explainer Video Business? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

How Profitable Is An Explainer Video Business? (Updated for 2024)

So you want to start an explainer video business?

And the first question that came to your mind was, “well, are explainer video businesses actually profitable?”

With a market size of $37.4B - there’s plenty of business to go around.

Especially considering:

You could start a explainer video business with as low as $500
Based on our data, explainer video businesses generate an average of $839K 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 explainer video business.

Let’s dive in!

Is an explainer video business profitable?

Yes, an explainer video business 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 $839K per year with an estimated gross margin of 93%, 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 explainer video business.

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 explainer video business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an explainer video business worth it?

If you’re wondering if a explainer video business is worth it, the answer is a big YES. With explainer video businesses, you have the potential to earn $839K 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 $37.4B, 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 explainer video business 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 explainer video businesses case studies.

Examples Of Profitable Explainer Video Businesses

Here are a few examples of profitable explainer video businesses, and a few more details about them:

1. Explainer Videoly Pte. Ltd. ($1.2M/year)

Kasra Design, also known as Explainer Videoly, was founded by Alex Safavinia. With a background in Creative Multimedia, Alex saw the potential in offering animation services to businesses. Starting with email marketing and showcasing their work on social media, the company attracted clients and grew steadily. Today, Kasra Design has completed over 700 projects, generated over half a million dollars in revenue annually, and plans to expand further in the future.

Is it profitable? Yes
How much money it makes: $1.2M/year
How much did it cost to start: $7K

My Animation Passion Led Me To Starting A $480K/Year Business

Kasra Design produces customized animated and live-action explainer videos for corporate clients, enterprises, startups, and nonprofits; it generated around USD70k in the first year and currently generates over half a million dollars with over 700 projects completed and over 400 clients from around the world.

Read this case study

Read by 3,994 founders

2. Breadnbeyond ($2.16M/year)

The founder, Andre Oentoro, started Breadnbeyond in 2009 as a digital agency offering graphic design services. However, after working on a kinetic typography animation project for a client, the company pivoted to focus solely on animated explainer videos. They have since grown their client base, become profitable from day one, and currently have 42 employees.

Is it profitable? Yes
How much money it makes: $2.16M/year
How much did it cost to start: $5K

How We Make $2M/Year Crafting Explainer Videos From Scratch

Discover how a small digital media agency scaled to a thriving animated explainer video company with 42 employees, leveraging international markets and achieving over 100% client growth annually in the early years.

Read this case study

Read by 3,257 founders

3. Beep ($30K/year)

Farid Shukurov, with over 10 years of experience as a UX/UI designer, was frustrated by the cumbersome and time-consuming process of exchanging endless screenshots and screen recordings with clients for clear communication.

Despite these efforts, messages often remained unclear, necessitating further clarification.

Recognizing that existing tools were inadequate, Farid assembled an experienced team who shared his frustrations in their respective roles.

Motivated by these shared challenges, they created "Beep," a tool designed to streamline and improve this process.

Is it profitable? Yes
How much money it makes: $30K/year
How much did it cost to start: $500

How Farid Shukurov Built Beep to $30K in Just 5 Months

Learn how Beep, founded by Farid Shukurov, revolutionizes team collaboration for developers with a user-friendly platform, generating $2k on launch day through strategic sales channels like AppSumo, Reddit, and more, offering pricing tiers from free to enterprise level, and sharing key lessons for building a successful business.

Read this case study

Read by 560 founders

Learn more about starting an explainer video business:

Where to start?

-> How much does it cost to start an explainer video business?
-> Pros and cons of an explainer video business

Need inspiration?

-> Other explainer video business success stories
-> Marketing ideas for an explainer video business
-> Explainer video business names

Other resources

-> Explainer video business tips

How much can you make with an explainer video business?

With a explainer video business, you can make an average of $839K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a explainer video business make a week?

Based on our data, average weekly revenue for a explainer video business ranges around $17.5K. As such, you could see monthly revenues of $69.9K.

To know if your explainer video business 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 explainer video business.

How much do explainer video businesses owners make?

The income of an explainer video business 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 explainer video business is about $17.5K. 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 an explainer video business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Explainer Video Business Profit Margins

Generally speaking, an explainer video business can expect profit margin of around 93%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an explainer video business, 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, explainer video business 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, explainer video business owners can ensure long-term sustainability and profitability for their business.

Explainer video business owner salary

The salary of an explainer video business 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 explainer video business, in a prime position, might see an average weekly salary around the ballpark of $16.3K.

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

If you focus on these, you'll have a much higher chance of a profitable explainer video business.

Part of

Becoming An Explainer,Diy,Video: Everything You Need To Know

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