Web Design Business

How Profitable Is A Web Design Business? (Updated for 2024)

Pat Walls

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Updated: September 13th, 2024

How Profitable Is A Web Design Business? (Updated for 2024)

So you want to start a web design business?

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

With a market size of $40.8B - there’s plenty of business to go around.

Especially considering:

You could start a web design business with as low as $30
Based on our data, web design businesses generate an average of $6.08M per year
You could see gross margins as high as 75% with web design businesses

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 web design business.

Let’s dive in!

Is a web design business profitable?

Yes, a web design 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 $6.08M 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 web design 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 web design business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a web design business worth it?

If you’re wondering if a web design business is worth it, the answer is a big YES. With web design businesses, you have the potential to earn $6.08M 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 $40.8B, 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 web design 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 web design businesses case studies.

Examples Of Profitable Web Design Businesses

Here are a few examples of profitable web design businesses, and a few more details about them:

1. Design In DC ($1.2M/year)

Ziad came up with the idea for Design in DC by combining his academic background and extensive experience in film production with his partner Rob's expertise in web design and digital agencies.

They met in Canada and shared a vision of making web design more interactive and visually compelling, integrating elements like animation and photography to enhance the storytelling aspect of websites. This partnership addressed a market need for diverse digital assets, leading to the founding of Design in DC.

Is it profitable? Yes
How much money it makes: $1.2M/year

How Ziad Foty Built Design In DC to $100K MRR

Discover how Ziad Foty turned his background in film production and web design collaboration into a thriving digital design agency, Design in DC, generating $1.2 million annually by enhancing client websites with interactive storytelling.

Read this case study

Read by 196 founders

2. Envision ($360K/year)

Leighton Taylor, founder of eCommerce marketing agency Envision, came up with the idea for his business while freelancing in web design and development. He noticed the explosive growth of Shopify as the eCommerce platform of choice and decided to specialize in Shopify-related services. Through clear communication, punctuality, and early success with content marketing, Envision has attracted and retained clients, earning approximately $30k/month in revenue.

Is it profitable? Yes
How much money it makes: $360K/year
How much did it cost to start: $0

How I Started A $30K/Month Conversion-Focused Shopify Development Agency

Founder Leighton Taylor shares how his eCommerce marketing agency for Shopify has grown to approximately $30k/month, working with about 350 eCommerce brands and an ideal client with annual revenue from $1-10 million, while focusing on clear communication, punctuality and content marketing through a podcast.

Read this case study

Read by 7,617 founders

3. Madwire ($102M/year)

JB Kellogg, the Co-Founder and Co-CEO of Madwire, came up with the idea for his business while interning at a travel magazine company. After realizing his talent for website design and seeing the potential for helping businesses grow through digital marketing, JB and his father decided to start Madwire and grew it into a company with over 500 employees and $100 million in annual revenue in less than 10 years. Their mission is to help small businesses grow and make a difference in their local communities.

Is it profitable? Yes
How much money it makes: $102M/year

How I Started A $8.5M/Month Company Providing Marketing Solutions To SMBs

Co-founder of Madwire JB Kellogg grew his business from just the two of them in a tiny office to over 500 employees and $100 million in annual revenue in under 10 years, by focusing on exceptional customer service and a multi-channel inbound strategy.

Read this case study

Read by 14,037 founders

Learn more about starting a web design business:

Where to start?

-> How much does it cost to start a web design business?
-> Pros and cons of a web design business

Need inspiration?

-> Other web design business success stories
-> Marketing ideas for a web design business

Other resources

How much can you make with a web design business?

With a web design business, you can make an average of $6.08M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $30. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a web design business make a week?

Based on our data, average weekly revenue for a web design business ranges around $127K. As such, you could see monthly revenues of $507K.

To know if your web design 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 web design business.

How much do web design businesses owners make?

The income of a web design 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 web design business is about $127K. 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 web design business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Web Design Business Profit Margins

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

Web design business owner salary

The salary of a web design 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 web design business, in a prime position, might see an average weekly salary around the ballpark of $105K.

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

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

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Starting A Web Design Business: Everything You Need To Know

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