How much do online business owners earn? |

The largest revenues are generated by businesses in the e-commerce, services and SaaS industries

Source: Flippa market information from 3 years ago (2022-2024) | Image source: Flippa

The financial performance of online companies varies greatly depending on the type of business. E-commerce, service-oriented, and software-as-a-service (SaaS) companies tend to earn the best compared to ventures based on marketplaces, mobile applications, and content. For example, mature e-commerce companies boast an average monthly revenue of $21,497, with the top quartile reaching $59,021 and the top 10% earning an impressive $119,141.

The success of e-commerce businesses in recent years can be attributed to several factors. First, the widespread consumer shift towards online shopping, particularly accelerated by the pandemic, has increased demand for e-commerce platforms. Additionally, new order fulfillment methods – such as Fulfillment by Amazon – and advances in digital marketing strategies have improved the scalability offered by e-commerce business models.

Similarly, service-oriented and SaaS businesses are seeing significant revenue growth, with average monthly revenue of $13,898 and $17,252 respectively for mature ventures. These companies thrive by providing specialized products and services tailored to the specific needs of customers. The specificity and personalized nature of these offerings often lead to higher pricing levels and recurring revenue streams, which improves your bottom line over time.

In contrast, marketplaces, mobile apps and content-based businesses face greater challenges in generating revenue. Marketplaces often struggle to achieve scale due to intense competition and the need for significant investment in platform development and user acquisition. Mobile apps face monetization hurdles due to market saturation and users’ reluctance to pay for app downloads or in-app purchases. Similarly, content-based businesses also face monetization challenges as revenue streams rely primarily on advertising or subscription models, which do not always translate into significant profits. Additionally, wild fluctuations in organic traffic due to Google algorithm changes can lead to uneven revenue growth.

Below is a complete breakdown of average monthly income by age and business type. Monthly revenues from the top quartile and top 10% of companies are also provided for context.