Revenue vs Profit: How much are online businesses really making?
It seems everywhere you look on social media, people are making filthy amounts of cash living the 4 hour workweek. Claims of making $100k, $200k, $300k per month are everywhere and the influencers conveniently leave out that this is revenue and NOT profit and definitely not income.
So how do you compare and contrast business models to see the average amount of net profit per month vs revenue? How can you see the real numbers of an online business?
Enter the online business brokers:
Brokers like Empire Flippers usually show an amazing amount of data on a wide range of business types, including monthly revenue, and monthly profit.
Let’s take a look:
This FBA business is making an average of 16,173 net profit per month, but an average of 216,079 in revenue.
That leaves us with a NET margin of 7.48%
Here’s another one:
This isn’t an Amazon business, instead it’s Amazon Associates and Display advertising.
Notice a difference?
Monthly Revenue: $7,550 Monthly Net: $7311
Net margin of 96.8%
There are benefits to both businesses, but I’d probably pick the 2nd one.
Check out the EF marketplace today and see how you stack up vs similar businesses.