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Net Profit for Online Marketing Service Businesses

by Headstart
5 replies
This is definitely a question that gets overlooked, probably because there's a hundred different answers that could come up.

Im interested in what type of net profit you guys are seeing from your Online Marketing Service Businesses. I've heard anywhere from 20% for larger operations (2 mill +) to 50% - 60% for small operations (let's say 30k a month and under).

I know there's a few of you running larger businesses any feedback is appreciated!
#businesses #marketing #net #online #profit #service
  • Profile picture of the author DABK
    If they're making $30k or less a month and have 60% profit it's because they're not calculating profit accurately.

    Specifically, they don't separate profit from salary. The salary they're paying themselves but consider profit.

    If they were to do that, profit would be lower, in many area, at $30k a year, there's no profit, there's loss... Because, to hire someone with sufficient skill to replace yourself with costs $45k a year (my area).

    I have this talk to owners of appraising companies who worked in the company. And accountants (of all people).

    There's an accountant who has 3 other accountants working for him, he swore his profit margin was 45%. Till I asked him to find someone to do what he does and figure out how much he'd have to pay. After he did that, his profit margin dropped to a bit less than 9%.

    Originally Posted by Headstart View Post

    This is definitely a question that gets overlooked, probably because there's a hundred different answers that could come up.

    Im interested in what type of net profit you guys are seeing from your Online Marketing Service Businesses. I've heard anywhere from 20% for larger operations (2 mill +) to 50% - 60% for small operations (let's say 30k a month and under).

    I know there's a few of you running larger businesses any feedback is appreciated!
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  • Profile picture of the author aars14
    Net profit for an online business can be different according to different perspective,

    Let's suppose you include your monthly expenditures in cost or you don't, even this line makes a difference.

    The next will be, what are you offering exactly, are you selling a service or a skill or a product?

    The profitability ratio will be completely different for those, and now going to other factors such as :

    Your existing popularity, like your company get's popular by passing each year, thus the advertising costs get's down.

    Anyway, i think, a 30 to 50% profit is a good profit generally, but again it's a very wide term and it will different from company to company, case to case.
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    • Profile picture of the author DABK
      If you don't include your expenses, you're not calculating net profit, though.


      Originally Posted by aars14 View Post

      Net profit for an online business can be different according to different perspective,

      Let's suppose you include your monthly expenditures in cost or you don't, even this line makes a difference.

      The next will be, what are you offering exactly, are you selling a service or a skill or a product?

      The profitability ratio will be completely different for those, and now going to other factors such as :

      Your existing popularity, like your company get's popular by passing each year, thus the advertising costs get's down.

      Anyway, i think, a 30 to 50% profit is a good profit generally, but again it's a very wide term and it will different from company to company, case to case.
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      • Profile picture of the author aars14
        Originally Posted by DABK View Post

        If you don't include your expenses, you're not calculating net profit, though.
        The trouble here is, people consider themselves there personal expenses, not company one.
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        "Stuck With Adwords/PPC Campaigns? Want to Increase Conversions? Setup New Campaign? Improve current Adwords Performance Contact Google Certified Partners." -Warrior Forum Thread
        Have you Started following my Aliraza.co - Internet Marketing Blog?
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  • Profile picture of the author Oziboomer
    There was a post I contributed to that went into not only calculating your profits but it contained some tools you could use to manage your business.

    The details are here:
    http://www.warriorforum.com/offline-...sses-fail.html
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