Nowadays, there are more and more people want to make money online. You may know that many super-successful entrepreneurs are running online businesses. For example, Jeff Bezos of Amazon which is the largest retail online shop in the world, Mark Zuckerberg of Facebook which is a very popular social media platform, Larry Page and Sergey Brin of Google which is the largest multinational internet-related corporation in the world. Apart from these well-known entrepreneurs, many small business owners and individuals can also make significant money online. For instance, Kyle and Carson of Wealthy Affiliate which is my favorite affiliate marketing training platform, Jerry Huang, Peng Joon, and John Chow who are also making significant money online. Comparing with offline businesses, of course, there are also many successful icons such as Elon Musk of Tesla which is the largest electronic vehicles company in the United State, Richard Branson of Virgin Atlantic Airways which is a popular airlines company in the United Kingdom, McDonald, and Coca Cola are also very famous and traditional offline businesses.
My question is that why do we should make money online rather than offline businesses? I think there are 5 main reasons that it’s time to start your online business and make money online. Firstly, the initial cost to start an online business is very small, you don’t need to spend a lot of money to start your online business. Secondly, it’s a trend to purchase products or services on the internet. That’s why more and more people and business owners develop their online businesses. Thirdly, an online business is allowed the owners to run their daily businesses and make money anytime anywhere. Also, customers could find their desire products or services anytime anywhere. Fourthly, it is easier to sell intangible products online so that people could sell their “knowledge” in digital means. Finally, all people around the world could reach your online shop that is a website, and make money worldwide.
Reason 1: Low Cost, Make Money with No Money
The top 1 advantage to start your online business and make money online is that you don’t need to spend huge initial money to start your online business. Sometimes, you could even start to make money online without any money. For example, if you want to build a website as your online shop, you just need to spend a little money on domain registration, hosting service, website design, and copywriter, etc. Comparing with offline businesses, if you want to open a physical store, you need to spend a lot of money on rent, labor, inventory, and logistics, etc. Therefore, the initial cost of an online business is relatively lower than an offline business. A lot of small-to-medium-sized companies with a limited budget could afford the cost to start their online businesses. Moreover, even every individual could start their online businesses with a limited budget.
Sometimes, we could start to make money online without any money. You may know that there are lots of Facebook pages or IG shops on the internet. The owners of these Facebook pages and IG shops could build these pages and shops without any money, but they could promote their products or services on them. Therefore, an online business is suitable for any individual, and the return of investment could be very high. On the other hand, if you don’t want to develop any websites, Facebook pages, or IG shops, etc and you just want to work for others, you could still find your job online. For instance, you could find a lot of online jobs or freelance jobs from various websites such as Upwork.com or Freelancer.com.
Reason 2: Trend To Go Online
Due to the rapid development of technology, more and more people have computers or mobile devices to connect to the internet. They could find their products or services very easily by just a click. They could compare different products from different online shops and make inquiries to different websites at the same time. People don’t need to go to different locations to find their products and make inquiries. Therefore, more and more people prefer to purchase their desire products or services online.
According to a statistic, the market size of online shopping worldwide is predicted to reach 4 trillion in 2020. Let’s take the United States as an example, 69% of Americans have online shopping experience and 25% of Americans purchase their products at least once per month. That’s why Amazon which is the largest online shop in the world is so successful. About 47% of Americans bought their first item on Amazon. Americans are not the only ones who go online shopping. According to the same statistic, other countries such as United Kingdom, Sweden, France, Germany, Japan, Spain, China, Russia, and Brazil are also the leading countries in which their citizens like shopping online. And the penetration rate worldwide in online shopping is 47.3% in 2018.
The nice thing is that even small retailers could participate in this worldwide online shopping trend. According to the same statistic, comparing with larger retailers, small retailers may see up to 30% higher mobile conversion rates in the future. Therefore, don’t think that you can’t compete with larger companies, small-to-medium companies, and even individuals could take a slice. So, don’t miss the chance, seize the opportunity and trend to make money online.
Reason 3: Making Money Anytime Anywhere
Online business is beneficial for both business owners and customers. Online business owners could manage their businesses very easily. They just need a laptop or mobile phone and the internet, they could manage their businesses anytime anywhere. They could answer inquiries, put new products, post the latest information, and arrange logistics, etc very easily and conveniently. Moreover, an online business is usually an automated business system. Could you imagine that your automated business system is still making money for you while you are on vacation?
Online customers could purchase their desire products or services anytime anywhere too. Similar to online business owners, online customers also only need laptops or mobile phones and the internet, then they could find their products or services. They don’t need to go to different physical locations to find their products. They don’t need to bring their products from the physical store to their home. It’s because online shops will usually arrange the logistics and send the products to customers’ home automatically. Moreover, due to the cost for online business owners is relatively low so that the products or services could be much cheaper compared to physical stores. Furthermore, using mobile devices for online shopping becomes more and more dominant. According to the same statistic mentioned above, 67% of users go window shopping on their mobile phones. 77% of them will make impulse purchases and 70% of them will come back to purchase the product they saw.
In the nutshell, business owners could make money online anytime anywhere automatically and customers could also purchase their products or get their services anytime anywhere conveniently. So, why don’t start an online business which is beneficial for both owners and customers?
Reason 4: Create And Sell Digital Products Easily
Another major difference between online business and offline business is that people could transfer or sell knowledge online more easily. In the past, if you have expertise in certain areas such as computer programming, website building, cooking, playing guitar, and bodybuilding and want to sell your knowledge to others, you have to prepare a classroom and equipment for your students. But nowadays, due to the development of the internet, almost all knowledge could be sold by creating digital products such as training platforms, membership sites, ebooks, and videos.
The cost of creating a digital product is very low and it is easy to deliver digital products to your customers. You don’t need to worry about inventory because you are selling intangible products. Also, the entire selling procedure is automatic once your system is completely set up. Therefore, selling digital products online is a wonderful way to sell your knowledge and it is difficult to do that offline.
Reason 5: Money Comes From Customers Worldwide
Imagine that if you open a shop in New York, your targeted customers are probably New Yorkers. If your shop is opened in Hong Kong, your customers probably are Hong Kong citizens. If you have a musical classroom teaching guitar in London, your students are probably come from London. That means an offline business could only attract local customers, people who come from other countries is difficult to come to your shops to purchase from you.
On the other hand, an online business does not have a geographical limit. It could attract customers from around the world. It is because everybody could visit your website or online shop very easily by connecting to the internet. Therefore, an online shop could reach more customers compared to a physical store. More customers, more revenues. But the only question is how can you expose your online shop in front of visitors worldwide? The best way is to improve the Seach Engine Optimization (SEO) so that your website is ranked on the first page of Google’s search engine result page. Improving SEO is the best way to get organic traffic for free so that customers could easily find out your online shop. If you want to get more details about how to improve SEO on Google, please take a look at my article about improving SEO. Certainly, if you have a budget, you could spend some money to advertise your online shop on different platforms such as Google, Yahoo, Bing, Facebook, and YouTube.
Bonus: Make Money Online From Affiliate Marketing
I remembered that when I started to consider making money online in 2012, my idea is that I purchase some products from wholesalers, find an inventory place, build my online shop for resell, set up a payment system, and arrange logistics to customers. After a little research, I discovered affiliate marketing which you don’t need to consider the above procedures. You don’t need to worry about inventory, you don’t need to worry about the payment system and you don’t need to worry about logistics. The basic concept of affiliate marketing is that you act as an intermediary and promote other peoples’ products. You could build a website, blog, Facebook page, or YouTube channel, etc for promotion. If someone purchases the product that you promote through your links on your promotional platforms, you could earn a commission from the vendors.
There are already many people making significant passive income from affiliate marketing such as Jerry Huang, Peng Joon, and John Chow. They are just ordinary people but they don’t need to get a 9-5 job to support their living. It is because their passive income from affiliate marketing is already enough for their living. If you want to get more details about affiliate marketing and even want to start an affiliate marketing business, you could take a look at my review about an affiliate marketing training platform which is called Wealthy Affiliate. This is the only training platform that I join currently. You could get all the know-how about affiliate marketing.
Conclusion – Online Business Is High Return With Low Risk
Due to the outbreak of coronavirus in 2020, a lot of physical stores around the world have to close or shutdown. A lot of business owners and employees are affected. A lot of offline business owners lose their money and a lot of employees have to be laid off. However, this problem does not happen for online businesses. Some online businesses even get advantages from this pandemic.
In the nutshell, it is a good opportunity for you to consider starting an online business and making money online. You don’t need to spend too much money to start because the initial investment is so low. It is a global trend to run an online business in which business owners could make money anytime anywhere. Moreover, you could even sell your knowledge by creating digital products to customers from around the world. Even though you don’t want to create any products, you could still make money online by earning a commission from affiliate marketing.
If you have any questions or comments about making money online, please don’t hesitate to share it below.