In a world full of competition, some businesses choose to fight back with an all-or-nothing strategy. Creating a business that only operates online means you can avoid many of the costly mistakes new and experienced entrepreneurs often make. Moreover, the ability to work remotely is both attractive and convenient for some.
Although the strategy may seem unattractive at first glance, building an online-only business can potentially be a lucrative decision. Here’s a closer look at how you can make money in an online only business.
The Pros And Cons Of An Online Only Business
Taking an all-or-nothing approach to business is rarely a good idea. The key advantage of having multiple streams of income is that you can withstand times of crisis. Having a secondary source of income allows you to pursue your dreams, no matter what. This also means you can evaluate your decision to go with an online-only business strategy with more objectivity. If you were to depend solely on your main source of income, there’s a chance you may make costly mistakes that you would otherwise avoid. For example, if your main source of income is as a real estate agent and you decide to freelance write for extra cash, but your writing is never going to be profitable, your dependancy on that one revenue stream is highly likely to cause you problems. In the event that writing for pay becomes unprofitable, you’re out of luck.
On the other hand, working in an online-only capacity presents a number of advantages. One of the biggest is the ability to scale your operations. Having multiple products and/or services that you promote and sell via online platforms like Shopify, Amazon, or eBay allows you to quickly expand your operations. The days of brick and mortar retail businesses surviving off one store are long gone. In today’s digital marketplace, every store owner can seem to be doing just fine.
The other advantage of an online-only business is that you can reach more customers. It’s now possible to have a product available for purchase from the convenience of your couch, in the palm of your hand. Moreover, with the click of a button, someone in another country can purchase your product, and you’ll be paid instamatically. For manufacturers and distributors, this is a game changer. You can sell your product across international borders with little to no effort once your online store is set up.
The downside to an online-only strategy is that it can be more difficult to scale your business. You’re essentially starting from scratch. There’s no established credibility or track record to fall back on. You’re also likely to face more competition as well. When you have a physical location that customers can visit, you have the opportunity to create a buzz or good will with your customers. Moreover, with a physical store, you have the opportunity to provide good customer service. You can take a deep breath, relax, and enjoy your newly acquired wealth. You’re finally free of your day-to-day worries. This may be difficult to do if you operate solely online. You’ll have to create your own mechanisms for dealing with customer service, shipping, and the like. The lack of a brick and mortar location also makes it more difficult to generate business leads. If you’re in sales, you’re potentially missing out on good will generated from your customers who visit the store. If you decide to reinvest the money you’re making online into more online capacity, like starting a blog or buying an online store, you’re limiting your options as to where you can reinvest your money. If you decide to keep most of the money you’re making, you’re better off investing in a tangible asset, like real estate or precious metals.
The Many Ways To Make Money In An Online Only Business
To be able to make money in an online-only business, you need to look for sources of revenue. Obviously, the most popular route is to use affiliate marketing. Here’s where you’ll find many established brands waiting to pay you for sending customers their way. Once you have a sizable audience, you can set up specialized landing pages where you’ll display affiliate banners. When a visitor clicks on a banner, they’re taken to the brand’s website where they can make a purchase or complete an action, like subscribing to a mailing list or watching a video.
Another popular way to make money in an online only business is to become a virtual assistant. Depending on the size of your audience, you can negotiate an affordable rate with businesses who need help managing their social media accounts or handling their email marketing. Some companies will even pay you to take a vacation or two. Doing some research and finding a task that you can perform remotely while watching TV or listening to music is a great way to make some quick cash. You’ll need to learn how to use various software to be able to get started. However, if you can leverage your existing skills, like writing, editing, or social media management, you can build a profitable business without having to spend a lot of money.
Creating an online-only business doesn’t mean you have to forgo the good ol’ fashioned ways of generating revenue. You can utilize existing platforms and tools to build, grow, and monetize your business. One of the more popular ways to make money online is to become a transcriptionist. You’ll simply need to listen to audio files and then type out what you hear. You get paid per piece, so the faster you can type, the better your rate, especially if you’re applying for a home-based business. In addition to making money online, you can also earn money by being a mystery shopper or buying and selling goods on Amazon. If you’re looking for an accessible way to make money, you can start a blog where you’ll write about your experience. If you’re not the creative type, you can get inspiration and create artwork for blogs, websites, or even merchandise, like T-shirts, mugs, and mouse pads. A quick Google search will give you a number of places you can sell your art online. Don’t forget about legacy earnings – many businesses started by families still make money five and six figures each year, simply by continuing the practice started by their ancestors. Moreover, if you do decide to go the conventional route and open a retail space, you can use the money you’re making to purchase inventory for your online store. In the event that you do decide to become a brick and mortar business, you can use the money you’re making to invest in new equipment and hire more staff. In today’s world, creating a business that only operates online offers many advantages, but also carries with it a number of risks. Before you make the decision to go it alone, consider all of its pros and cons. With so much competition and limited opportunities, only those who are willing to experiment, think outside the box, and are willing to try new things will survive in the long term.