How to Start a Webinar Business

Start a Webinar Business by following these 10 steps:

1. Plan your Webinar Business
2. Form your Webinar Business into a Legal Entity
3. Register your Webinar Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Webinar Business
6. Get the Necessary Permits & Licenses for your Webinar Business
7. Get Webinar Business Insurance
8. Define your Webinar Business Brand
9. Create your Webinar Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Webinar Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Webinar Business?

Unlike many startups, the costs involved in opening a webinar business are fairly minimal. When developing your business plan, include the following items in your budget:

• Computer(s)
• High-speed internet
• Webinar software - Industry leaders encourage new business owners to thoroughly research their options before settling on a software solution. Attendees should not have to download anything to watch the webinar. The platform should be intuitive, with the capability to chat, offer Q&A sessions, poll viewers, and send out reminder/follow-up emails.
• Webinar kit - Kits include webcams and headsets and range from $200-$400
• Proper lighting
• Video, music, and stock imagery licenses
• Tool for payment processing

Minimize your initial expenses by working out of a home office. Just make sure the setting is professional and free of distractions.

What are the ongoing expenses for a Webinar Business?

Industry leaders report a total cost of $1,125 plus employee salaries for each webinar created. While these costs will fluctuate depending upon the specifics of each project, below is a breakdown of what your budget will look like:

• Webinar platform costs - $495
• Equipment - $30
• Advertising and marketing - $600
• Keynote speaker/presenter fees - Since hiring an expert presenter can prove quite costly; most webinar businesses utilize members of their workforce.

Who is the target market?

When mapping out a business plan, it’s important to consider what audience you plan to cater to. If your goal is to create webinars for organizations marketing their products/services, your marketing strategy should target businesses in need of your expertise. If you plan to take a more learning-based approach, your target market is anyone interested in the subject(s) you plan to teach.

How does a Webinar Business make money?

Hosting live, online events featuring verifiable experts on a particular subject is the most direct and profitable way for a webinar business to generate revenue. Organizations have now begun recognizing the value of webinars as part of their marketing strategy and are now hiring webinar companies to organize and host events to help promote their products or services.

How much can you charge customers?

There are a number of factors that should be taken into account when setting the price for a particular webinar. If you have direct competitors, what does their fee structure look like? What does the attendee have to gain from attending? Will this benefit them personally or professionally? Recent research by Leading Learning indicates the average webinar price is between $1.04 and $2.27 per minute, with most classes lasting between 60 and 73 minutes.

How much profit can a Webinar Business make?

If you host two webinars a month, limit capacity to 35 attendees, and have a fee of $199 per client, your business will gross $13,930. Annual total earnings would then be just over $167,000.

How can you make your business more profitable?

To boost annual profits, business owners are encouraged to make on-demand webinars available after the event has concluded. Recent reports indicate that as many as 25% of consumers attending webinars do so from their mobile devices. When shopping for the webinar provider that best fits your needs, consider partnering with one that is mobile-friendly and does not require downloads or plugins.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Webinar Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a webinar business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Have you become the authority in your niche? Do others look to you for your guidance and expertise in your industry? Are you eager to share your knowledge with others? Are you technologically inclined? If so, launching a webinar business may be the ideal business venture for you.

What happens during a typical day at a Webinar Business?

When not working to promote your business and gain new clients, your days will be spent putting your skills into action. Once you have determined the subject of a webinar, you will need to draft an action plan, outlining goals and specific tasks. A timetable should be mapped out with clear goals regarding when each assignment should be completed. Following this timeline, deviating only when absolutely necessary, will help minimize unexpected roadblocks and expenses.

Once the action plan and timetable have been defined, each task should be delegated to various team members, playing on their individual strengths and knowledge. In the week or two leading up to the live webinar, your team should go through several dry runs. This gives the speaker an opportunity to practice, test the software, and help identify and rectify any potential issues.

What are some skills and experiences that will help you build a successful Webinar Business?

As a webinar business owner, it is important to remember that attendees are looking for premium content. If a stock photo doesn’t match the content or it is riddled with spelling errors, your business will suffer. Therefore, attention to detail is of the utmost importance. Presenters must have a strong command of the English language and have mastered the art of communicating with individuals from a wide range of backgrounds. Marketing experience and mastery of the technical tools utilized by your company will also prove paramount to long-term success.

What is the growth potential for a Webinar Business?

Webinars are now recognized as one of the top ways for businesses to generate leads. In fact, 61% of marketing teams use webinars as part of their content marketing strategy. This fact, coupled with the fact that this business model is not constrained by factors such as time and location, ensures the potential for significant long-term growth.