Profitable online business models … 🤔
Today many are the people who launch into the world of entrepreneurship. I am often contacted by people who already have their project online and want to know the cost of SEO services to assess whether they are worth investing.
The Internet has made opening a business much easier , especially for young entrepreneurs. You can work from home and the initial investment can be minimal. But the reality is that a large percentage of companies that open today do not last even 1 year open. Why? For the same reason that the companies closed in the past, because are not profitable or because the owner is not compensated to move forward in the current conditions.
This is because creating your own business, be it a digital or analog business, and for the benefits to be stable, requires a lot of time and effort. Therefore, those who think that living on the Internet is sucked, quickly get discouraged when things are not going as well as they expected and leave within a few months.
Maybe now you’re excited about your business idea , which you think is great and 100% viable. You are convinced that it will work great and that it will not take long to generate benefits. But you must think with a cool head and ask yourself certain questions before taking the leap. First ask yourself what your purpose is, what need you are going to cover, and from there you can start a path, which is not a path of roses, much less.
Which online business is more profitable?
To know if a business is profitable, you have to ask yourself a series of questions….
What will be your fixed expenses?
Fixed expenses are those that your business will generate whether you sell your products or not. Being an online business, it is likely that you will be free to pay the rent of a local (at least at the beginning), but a website also has its expenses, such as domain and hosting . Another fixed expense would be for example the light that you are going to consume . You may work from home and this expense will go more unnoticed, but if you have between 8 and 12 hours a computer on, the lights in your office given, etc., all this counts as an expense. And of course, among your fixed expenses do not forget that you have to pay to social security when you register (and of the possible civil liability insurance that you have to pay).
How much do you need to earn to pay your fixed expenses?
Once you know what your fixed expenses are, you already know how much you should earn as a minimum to cover expenses ( profitability threshold ). And the interesting thing once you have that data, is that you do other calculations to know if your business is going to be profitable.
How much should you earn per day to reach that figure?
Whether your business is an online store or if you dedicate yourself to selling services or if you dedicate yourself to the world of infoproduct, you have to think how much you need to bill to get the benefit that you are looking for in this project.
In the case of those who sell services, it is interesting to learn how to set rates .
How many products must you sell to earn that amount?
If for example you sell a book through Amazon for € 2.99, your gross profit will be approximately € 1.3 (after the margin that the store takes and taking away VAT). If your fixed expenses are € 500, you will have to sell almost 385 books per month to cover the expenses. About 13 books a day. Do you see it acceptable? And he thinks that sales must be stable over time. If you sell 500 books the month of launch, but the following months do not reach 100 sales, your business is not viable as a fixed source of income.
The same thing happens with an online store, although at the price of the product you sell you must take away how much it has cost you to acquire that item. If you dedicate yourself to selling t-shirts for € 20 and you buy them for € 10, you take € 10 off each garment. You should sell 50 a month to cover expenses. 1.5 shirts every day, 365 days a year.
Do you already have a clientele? Are you known in the sector?
If you have worked in the sector before and already have your own clients, starting your own online business will be much easier, since it will start cover expenses and give benefits much sooner than if you have to start from scratch .
Returning to the idea that you are a writer, do you think you will be able to sell 500 books if you are an unknown author? It is very likely not. But if you have already published a book with an editorial and now you want to launch yourself to self-publishing, it will surely be easier for you because you will have some fans / clients.
With this we do not mean that if you are a stranger in the sector it is impossible to start your business successfully, but you must bear in mind that you will have to focus all your initial efforts on getting customers and “making yourself seen” either on social networks , through paid advertising, etc.
Salary and variable expenses
So far, we have focused on covering fixed expenses, but we have set aside one of the main fixed expenses of a company. The salary of its workers, in this case you. Salaries in a company are usually considered fixed expenses, because employees have to be paid month by month. In this case we have left it out (until now) because when you start a safe business you are willing to sacrifice certain things, and during the first months with which you cover expenses you can be happy. But do not forget that to what you must earn a month, you must add a living wage to you . A company will not give benefits until it covers all its expenses, including salaries, and leaves room for reinvestment and growth.
And another aspect to keep in mind that we have left out are the variable expenses . They are those that are generated by selling your product. In an online store, for example, if you plan to put free shipping costs to differentiate yourself from your competition, you will have to discount these expenses at your profit margin, and the same goes for payments with a debit or credit card, as the bank usually a percentage of the money transferred remains. Also, do not forget that if you have an online store and need to have stock, you must invest in material before you can sell it and that capital will be immobilized until you sell it.
But what really makes an online business the most profitable ? Scalability is an almost magical word in the world of online business. Do you know what it is? The ability of a business to grow and generate more money without increasing its fixed costs. A clear example of scalability is the sale of infoproducts: you dedicate time and effort to generate an online course, a book, a guide, etc., and then you can sell it countless times from your website without having to constantly be creating new products . You will have to search for more audience and to reinforce your online presence , but you will be able to keep the fixed costs stable while your sales grow.
Now that you know what to think about when creating your business, do you want us to give you some ideas about profitable online jobs?
The 7 profitable online businesses with hardly any investment
Affiliation programs are one of the models of online business most widespread and profitable there are, since they do not require prior investment and do not incur expenses neither of logistics, nor of after-sales, nor of production. Customer service is also eliminated.
The affiliate marketing system consists of selling third-party products and taking a commission for them. It is necessary to have a website, a blog or an online store with a good volume of visits to make it profitable. An approach that usually works very well in this type of business is the recommendations and product reviews.
One of the most famous affiliate programs is the Amazon affiliate program.
A copywritter is a writer who writes content for websites, blogs, virtual stores or other online businesses, etc. Companies need to strengthen their presence in the digital landscape and this implies creating text content that becomes blog posts, product descriptions, article reviews, the information that appears in the sections of a website, etc. It is easy to start working as a copywriter and start making money online, as the only requirement is to know how to write well (it is also advisable to know SEO, although it is not essential). There are platforms that connect clients and authors , such as greatcontent that connect clients with copywriters, making it easier for you to start with an acceptable workload. You can also work directly with clients, making job proposals or creating a copywriter page for customers to find you. The most important thing is that you have prepared a portfolio of texts for when you are asked for examples of the quality of your work.
Sale of online services
If you are a professional or a company, selling online services can be a good option both to create a business from scratch, and to expand the clientele of an existing business.
You will need to have a website in which to offer the services and it may also be interesting to have a blog with content related to the sector in which the services are offered for So attract new customers.
The main problem with this business model is that it is not very scalable, since the time and costs of offering the service do not vary and must be satisfied to each client individually. In addition, the company brand or personal brand is vital to get customers.
Infoproducts are a very interesting variation of the sale of online services. Unlike the latter, the sale of infoproducts is scalable and can be one of the most profitable businesses on the Internet, because what is sold is a digital product , which can be sold repeatedly and automatically through a website or blog, getting great profitability for the same product.
Online courses, video courses, ebooks, PDF guides, applications, software, etc. are infoproducts.
You can create infoproducts of almost any subject , provided there is an audience interested in the subject. To obtain profitability, it is necessary to create a quality product and this requires work and effort. In addition, it is interesting to have a base audience or clientele to achieve a good initial sales volume and that the word of mouth works.
With the new technologies this type of work has been popularized that connects virtual to companies or entrepreneurs, with people willing to free them from the heaviest or repetitive work.
A virtual assistant can perform different tasks, such as answering email, updating content, organizing face-to-face events, preparing documents, editing videos, taking care of your client’s agenda, etc.
The price of the service is usually set at an hourly price and does not require initial investment, although it is not possible to automate or scale it. To work in this sector, you can directly contact with companies, entrepreneurs, youtubers, etc., to offer your services, or register on pages such as Freelancer or Upwork.
Monetize your blog
If you have a blog with a good volume of visits per month, you can monetize it to get economic performance. The most common method of doing so is to insert third-party advertising and receive a commission for each click that is made.
Incorporating advertising to blogs is very simple. The usual thing is to register on a page that acts as an intermediary between advertisers and advertising spaces. This provides us with some lines of html code that must be incorporated into the blog and the advertising banners are changing automatically. In many cases, the ads are related to the interests of the user visiting the blog.
In addition, a blog can be monetized through affiliation or the sale of infoproducts.
Marketplaces for creatives
Enrolling in a Marketplace can be a great opportunity to do online business . This model is very common among creative people who like photography, music or are very good freelance programmers. There are marketplaces where you can upload your creations and receive a percentage of the sale in exchange every time a customer purchases a user license.
This system works well with photographs, drawings, musical jingles, songs and web templates, although it is usual not to generate large revenues unless you have a very popular product . It can be interesting as extra income. Some Marketplace pages are Fotolia, Shutterstock, Encore, Airbit and Themeforest.
As you have seen, there are opportunities to do business online with very little investment, for very different professional profiles: writers, photographers, programmers, salespeople, experts in a specific subject … Now you just have to think about what type of business they fit in Better your skills and get going.
Enjoying every day of my work helping small and medium enterprises to become visible on the Internet.