Wordpress Plugin Business

How Profitable Is A Wordpress Plugin Business? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

How Profitable Is A Wordpress Plugin Business? (Updated for 2024)

So you want to start a wordpress plugin business?

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

Especially considering:

You could start a wordpress plugin business with as low as $20
Based on our data, wordpress plugin businesses generate an average of $401K 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 wordpress plugin business.

Let’s dive in!

Is a wordpress plugin business profitable?

Yes, a wordpress plugin 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 $401K per year with an estimated gross margin of 35%, you could expect to recover your investment within 9 months or even less.

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

Is a wordpress plugin business worth it?

If you’re wondering if a wordpress plugin business is worth it, the answer is a big YES. With wordpress plugin businesses, you have the potential to earn $401K 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 $, 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 wordpress plugin 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 wordpress plugin businesses case studies.

Examples Of Profitable Wordpress Plugin Businesses

Here are a few examples of profitable wordpress plugin businesses, and a few more details about them:

1. LifterLMS ($750K/year)

Chris Badgett noticed a problem during his time running a WordPress agency where they built high-end training-based membership sites from scratch. There wasn't an all-in-one solution that combined membership, LMS, eCommerce, and gamification functionalities. This problem became clear from his personal experience working with clients who needed comprehensive and integrated learning management features.

To validate the idea, Chris proposed the concept to his existing clients and received encouraging feedback, leading to the development of LifterLMS. They started with pre-sales and got 42 customers, including some high-end agency clients, which further validated the need. Balancing resources between client work and product development was a challenge, but they managed by reinvesting service profits into the plugin.

The key lesson Chris learned was the importance of validating the idea with real customers and being willing to invest heavily in development while keeping a close connection with the target audience's needs. This approach ensured that they were solving a genuine problem effectively.

Is it profitable? Yes
How much money it makes: $750K/year

How Two Founders Bootstrapped LifterLMS to $750K ARR in Revenue

Read this case study

Read by 11 founders

2. 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 11,967 founders

3. Barn2 Plugins ($1.44M/year)

Katie and her husband Andy founded Barn2 Plugins in 2009 as a web design shop. They saw the opportunity to transition into a product business and identified gaps in the market by leveraging their insider knowledge of the industry and researching pain points online. They started with their first product, WooCommerce Password Protected Categories, and focused on low-cost, low-risk solutions that could be quickly developed and launched. Through content marketing and targeted advertising, they have been able to attract and retain customers, generating over $100,000 in monthly revenue with their 16 products.

Is it profitable? Yes
How much money it makes: $1.44M/year
How much did it cost to start: $0

We Now Sell Over $1.2M/Year Of Plugins

Barn2 Plugins, founded in 2009 by a husband-and-wife duo, sells innovative software products generating over $100,000 in monthly revenue aimed at website owners on the WordPress and WooCommerce platforms, with their first product, WooCommerce Password Protected Categories, launched to market after identifying a gap in the industry.

Read this case study

Read by 4,394 founders

Learn more about starting a wordpress plugin business:

Where to start?

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

Need inspiration?

-> Other wordpress plugin business success stories
-> Marketing ideas for a wordpress plugin business
-> Wordpress plugin business names

Other resources

-> Wordpress plugin business tips

How much can you make with a wordpress plugin business?

With a wordpress plugin business, you can make an average of $401K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $20. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 9 months.

How much does a wordpress plugin business make a week?

Based on our data, average weekly revenue for a wordpress plugin business ranges around $9.17K. As such, you could see monthly revenues of $36.7K.

To know if your wordpress plugin 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 wordpress plugin business.

How much do wordpress plugin businesses owners make?

The income of a wordpress plugin 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 wordpress plugin business is about $9.17K. 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 wordpress plugin business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Wordpress Plugin Business Profit Margins

Generally speaking, a wordpress plugin business can expect profit margin of around 35%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a wordpress plugin 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, wordpress plugin 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, wordpress plugin business owners can ensure long-term sustainability and profitability for their business.

Wordpress plugin business owner salary

The salary of a wordpress plugin 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 wordpress plugin business, in a prime position, might see an average weekly salary around the ballpark of $3.21K.

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

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

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Starting A Wordpress Plugin Business: Everything You Need To Know

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