Low Code Platform

How Profitable Is A Low Code Platform? (Updated for 2024)

Pat Walls

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Updated: September 19th, 2024

How Profitable Is A Low Code Platform? (Updated for 2024)

So you want to start a low code platform?

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

With a market size of $16B - there’s plenty of business to go around.

Especially considering:

You could start a low code platform with as low as $250
Based on our data, low code platforms generate an average of $15.7M per year
You could see gross margins as high as 90% with low code platforms

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 low code platform.

Let’s dive in!

Is a low code platform profitable?

Yes, a low code 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 $15.7M 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 low code 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 low code platform is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a low code platform worth it?

If you’re wondering if a low code platform is worth it, the answer is a big YES. With low code platforms, you have the potential to earn $15.7M 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 $16B, 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 low code 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 low code platforms case studies.

Examples Of Profitable Low Code Platforms

Here are a few examples of profitable low code platforms, and a few more details about them:

1. ShipFast ($600K/year)

Inspired by a tweet from Pieter Levels, who builds startups with just a laptop and no employees, Marc decided to start building his own products.

Over the course of two years, he successfully shipped 16 different products, ranging from AI tools to SaaS.

Throughout the building process, Marc noticed that he was doing the same things repeatedly, which was taking up a lot of his time.

He realized that creating a code boilerplate could help him build products much faster, and he was sure that others would find it useful as well.

In just one week, he built ShipFast and launched it on Product Hunt.

Is it profitable? Yes
What's the gross margin? 90%
How much money it makes: $600K/year
How much did it cost to start: $0

How Marc Lou Made $528K In 4 Months With A Simple Code Boilerplate

Computer science graduate Marc Lou founded ShipFast, a platform that reduced time spent on launching startups by providing a boilerplate, resulting in $6,000 in revenue within 48 hours and a successful Product Hunt launch with 3,000 visitors in the same period.

Read this case study

Read by 5,041 founders

2. Budibase ($1.99M/year)

The co-founders had previously developed internal applications and business apps in their careers. They realized that building these applications was not only expensive but also not the best use of developer time. Additionally, they found that it was not the most enjoyable part of software development.

They also observed that companies often used a variety of different SaaS products, paid for expensive subscription support contracts, and generally had to work around the tools and their APIs to get them to work together.

They set out to create a low-code platform that allows people to efficiently create different tools.

Compared to other platforms, we wanted Budibase to be as accessible and open as possible, with a real focus on user experience and ease of use, which is why it's open source and self-hostable, in addition to our cloud-based solution. — Martin McKeaveney, Co-Founder, Budibase (Source)

Is it profitable? Yes
How much money it makes: $1.99M/year

How Michael Shanks Built Budibase To $2M ARR

Budibase is a low-code platform solving the problem of costly and time-consuming app development, with a growth strategy that garnered 2000 prelaunch signups in just 8 months, pricing structured to support growth, and an impressive average revenue of $166K/month.

Read this case study

Read by 353 founders

3. Retool ($90M/year)

After graduating from Oxford University with a degree in philosophy and computer science, David Hsu founded Retool six months later.

During his time at university, he developed Cashew, a payment app for the UK market. While building his startup, David encountered the difficulties of creating and expanding internal tools for tasks such as KYC and fraud management.

He observed that engineers often had to develop admin dashboards from the ground up, and he found this process to be undesirable. This experience inspired him to create Retool, a low-code tool designed for both technical and non-technical developers.

Is it profitable? Yes
How much money it makes: $90M/year

How David Hsu Scaled Retool To $93M ARR

"Retool founder David Hsu revolutionized software development, generating an impressive $7.5M/month and $90M/year in revenue since 2017 without writing code from scratch."

Read this case study

Read by 525 founders

Learn more about starting a low code platform:

Where to start?

-> How much does it cost to start a low code platform?
-> Pros and cons of a low code platform

Need inspiration?

-> Other low code platform success stories
-> Marketing ideas for a low code platform

Other resources

How much can you make with a low code platform?

With a low code platform, you can make an average of $15.7M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $250. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a low code platform make a week?

Based on our data, average weekly revenue for a low code platform ranges around $327K. As such, you could see monthly revenues of $1.31M.

To know if your low code 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 low code platform.

How much do low code platforms owners make?

The income of a low code 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 low code platform is about $327K. 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 low code platform owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Low Code Platform Profit Margins

Generally speaking, a low code 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 low code 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, low code 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, low code platform owners can ensure long-term sustainability and profitability for their business.

Low code platform owner salary

The salary of a low code 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 low code platform, in a prime position, might see an average weekly salary around the ballpark of $271K.

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

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

Part of

Starting A Low Code Platform: Everything You Need To Know

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