Project Management Tool

How Profitable Is A Project Management Tool? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Project Management Tool? (Updated for 2024)

So you want to start a project management tool?

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

With a market size of $66.4B - there’s plenty of business to go around.

Especially considering:

You could start a project management tool with as low as $500
Based on our data, project management tools generate an average of $1.84M per year
You could see gross margins as high as 70% with project management 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 project management tool.

Let’s dive in!

Is a project management tool profitable?

Yes, a project management 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 $1.84M per year with an estimated gross margin of 76%, you could expect to recover your investment within 15 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your project management 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 project management tool is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a project management tool worth it?

If you’re wondering if a project management tool is worth it, the answer is a big YES. With project management tools, you have the potential to earn $1.84M 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 $66.4B, 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 project management 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 project management tools case studies.

Examples Of Profitable Project Management Tools

Here are a few examples of profitable project management tools, and a few more details about them:

1. Client Portal ($132K/year)

The founder worked previously as a freelancer. She faced difficulties in finding a suitable platform to manage her clients' project assets. Despite trying different project management tools, the quality of these tools proved to be subpar, which led to her using email as the primary mode of communication.

Determined to find a better solution, she decided to create her own platform. She developed a page on her website that allowed clients to log in and access all the project assets that had been collected. She shared her experience with others about the portal and how it had helped her manage customer projects. After receiving a lot of encouragement from her peers, she eventually decided to sell it.

Is it profitable? Yes
How much money it makes: $132K/year
How much did it cost to start: $5K

How I Built A $7K/Month WordPress Plugin Because I Needed The Product

Laura Elizabeth built a $4-10k/month lightweight project management tool for WordPress called Client Portal, which provides clients with a branded, accessible space to access project deliverables and status updates, and has grown organically with the aid of podcasts, email courses, and Google searches.

Read this case study

Read by 11,963 founders

2. Minor Workshop ($1.44M/year)

Paul discovered his business idea while working at an e-commerce company in 2012, where he transformed team efficiency using Asana, leading to a validating bonus from his employer. This insight into productivity tools eventually grew into a consulting business that now generates $90,000 monthly.

Is it profitable? Yes
What's the gross margin? 70%
How much money it makes: $1.44M/year
How much did it cost to start: $500

How I Started A $1M/Year Productivity Consulting Business

This case study article showcases the success story of Paul, who built a profitable consulting business focused on Asana and Pipedrive, generating around $90,000 in monthly sales from consulting and subscription fees, with a margin of 80% and a customer base ranging from solo operators to big enterprise clients.

Read this case study

Read by 2,033 founders

3. GitScrum ($600K/year)

Renato Marinho came up with the idea for GitScrum out of frustration with ineffective project management tools and inefficiencies he observed as an IT manager. He noticed how poor communication and inadequate time management were obstacles, preventing teams from reaching their full potential. Inspired to create a solution that would enhance productivity and make work more enjoyable, Renato sought to develop a user-friendly project management tool grounded in Agile and Scrum principles.

Initially, GitScrum began as an open-source side project on GitHub, where it quickly garnered global support from developers and IT enthusiasts. This broad interest affirmed the demand for such a tool, prompting Renato to refine his initial concept. Through active feedback collection from early users, Renato iterated on the software, adding features that aligned with his vision of promoting meritocracy and performance tracking within teams.

One of the key challenges Renato faced during the ideation phase was finding a way to make the tool accessible to both technical and non-technical users. By leveraging user insights and maintaining a focus on simplicity, GitScrum was able to strike a balance between robustness and ease of use, which has been a cornerstone of its success. This journey taught Renato the value of community engagement and the importance of continuously adapting to feedback to refine the product.

Is it profitable? Yes
How much money it makes: $600K/year

How One Founder Scaled GitScrum to $600K Annually in Just 12 Months

Read this case study

Read by 14 founders

Learn more about starting a project management tool:

Where to start?

-> Project management tool plan
-> How to finance a project management tool?
-> How much does it cost to start a project management tool?
-> Pros and cons of a project management tool

Need inspiration?

-> Other project management tool success stories
-> Marketing ideas for a project management tool

Other resources

-> Project management tool tips

How much can you make with a project management tool?

With a project management tool, you can make an average of $1.84M 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 15 months.

How much does a project management tool make a week?

Based on our data, average weekly revenue for a project management tool ranges around $38.3K. As such, you could see monthly revenues of $153K.

To know if your project management 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 project management tool.

How much do project management tools owners make?

The income of a project management 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 project management tool is about $38.3K. 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 project management tool owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Project Management Tool Profit Margins

Generally speaking, a project management tool can expect profit margin of around 76%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a project management 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, project management 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, project management tool owners can ensure long-term sustainability and profitability for their business.

Project management tool owner salary

The salary of a project management 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 project management tool, in a prime position, might see an average weekly salary around the ballpark of $29.1K.

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

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

Part of

Starting A Project Management Tool: Everything You Need To Know

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