Media Company

How Profitable Is A Media Company? (Updated for 2024)

Pat Walls

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Updated: October 9th, 2024

How Profitable Is A Media Company? (Updated for 2024)

So you want to start a media company?

And the first question that came to your mind was, “well, are media companies actually profitable?”

With a market size of $1.07T - there’s plenty of business to go around.

Especially considering:

You could start a media company with as low as $10
Based on our data, media companies generate an average of $2.52M per year
You could see gross margins as high as 95% with media companies

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 media company.

Let’s dive in!

Is a media company profitable?

Yes, a media company 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 $2.52M per year with an estimated gross margin of 65%, 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 media company.

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

Is a media company worth it?

If you’re wondering if a media company is worth it, the answer is a big YES. With media companies, you have the potential to earn $2.52M 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 $1.07T, 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 media company 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 media companies case studies.

Examples Of Profitable Media Companies

Here are a few examples of profitable media companies, and a few more details about them:

1. Sunlight Media LLC. ($240K/year)

After years of performing as a professional musician, Angelo Frisina developed skills in web design during his downtime on tour. Recognizing the demand for website development services, he founded Sunlight Media and grew the business through outsourcing and targeted marketing efforts. The company has since won industry awards and expanded its clientele, specializing in digital marketing services for the media and entertainment industry.

Is it profitable? Yes
How much money it makes: $240K/year
How much did it cost to start: $1K

A Pro Musician Turned Entrepreneur Earning 200K+ Per Year

Sunlight Media is a digital marketing company with a focus on web design and app development, that serves different customers across various industries, and has won industry awards and is continuing to expand in terms of revenue, enterprise productivity, and brand value.

Read this case study

Read by 4,082 founders

2. Wealthtender ($360K/year)

Brian Thorp founded Wealthtender in 2019 to provide inclusive financial advice and resources for people of all income levels. With over 40,000 monthly visitors, Wealthtender generates $8,000 in revenue each month from financial professionals who subscribe to their digital marketing benefits. Thorp identified a gap in the market for a financial advisor review platform and capitalized on new SEC regulations to launch Wealthtender's SEC-compliant online review platform, further expanding their offerings and establishing their authority in the industry.

Is it profitable? Yes
How much money it makes: $360K/year
How much did it cost to start: $100K

I Quit My Job And Built An $8K/Month Marketing Business For Financial Advisors

Wealthtender's founder Brian Thorp created an SEC-compliant financial advisor review platform which generated $8,000 a month from 40,000 monthly visitors in 2019, and now earns over $40-$50 a month from 200 paying financial professional clients, receiving over 30,000 monthly visitors and being in the first page of Google for various search terms.

Read this case study

Read by 1,986 founders

3. Life Boost Nutrition ($12K/year)

Alexandra Ng, the founder of Life Boost Nutrition, came up with the idea for her business after witnessing her grandfather struggle with bone health issues. She realized there was a lack of easily accessible, reliable information about supplements and nutritional strategies for the aging population. With her background in digital media and marketing, she decided to fill this information gap by launching LifeBoostNutrition.com, a digital platform offering comprehensive reviews of health supplements and guidance on maintaining physical and mental health.

Is it profitable? Yes
How much money it makes: $12K/year
How much did it cost to start: $3K

How My Health Blog Makes $1K/Month Through Ad Placements

Founder Alexandra Ng built Life Boost Nutrition, a digital platform offering health supplement reviews and guidance on physical and mental health, with a team of freelance writers, focusing on SEO to attract traffic and advertisers, resulting in a profitable business with a consistently growing reader base, plans for expansion, and positive feedback from readers.

Read this case study

Read by 1,537 founders

Learn more about starting a media company:

Where to start?

-> How much does it cost to start a media company?
-> Pros and cons of a media company

Need inspiration?

-> Other media company success stories
-> Marketing ideas for a media company

Other resources

-> Media company tips

How much can you make with a media company?

With a media company, you can make an average of $2.52M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $10. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a media company make a week?

Based on our data, average weekly revenue for a media company ranges around $52.4K. As such, you could see monthly revenues of $210K.

To know if your media company 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 media company.

How much do media companies owners make?

The income of a media company 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 media company is about $52.4K. 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 media company owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Media Company Profit Margins

Generally speaking, a media company 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 a media company, 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, media company 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, media company owners can ensure long-term sustainability and profitability for their business.

Media company owner salary

The salary of a media company 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 media company, in a prime position, might see an average weekly salary around the ballpark of $34.1K.

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

If you focus on these, you'll have a much higher chance of a profitable media company.

Part of

Starting A Media Company: Everything You Need To Know

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