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Are you spending tons of time researching and trying to figure out which of the best online businesses to start is?
If you are, then this blog is PERFECT for you!
When I first started, I spent TWO MONTHS trying to pick the business model that I thought would be ‘perfect’ for me.
Guess what?
The business I ended up picking, sucked.
I hated it.
Then I just gave up.
I completely wasted all that time and money, all because I didn’t do my proper research before-hand.
I just gravitated towards the first shiny object that the guru’s made me “believe” was the easiest…
So, I’m going to keep that from happening to you!
(Because that really sucked)
And that’s truly why i’m making this blog.
Not only will it save you a ton of time and frustration…
But this way you will have all of the research already done for you, to make it easier for you to pick which one of these 3 online businesses works best for you.
Furthermore, below I put together a complete pros/cons list for all 3 of the best online businesses to start!
Enjoy!
#3 of: the best online businesses to start is… Dropshipping
Dropshipping is a retail fulfillment method that doesn’t require you to hold inventory. (also known as e-commerce)
Instead, when you receive an order, you then purchase the product from a third-party vendor who then ships it directly to the customer.
Dropshipping, likewise every other business model out there, has its own fair share of pros and cons.
The way most people start with dropshipping, is on Shopify (the platform) with AliExpress (the e-commerce website you order products on) the sister site of AliBaba. People call it: Shopify Dropshipping.
And at the beginning when I said I hated the 1st online business I chose to start…it was dropshipping.
Now, i’m not saying that YOU shouldn’t start with dropshipping… Just take it with a grain of salt.
Anyways, here are the pro and cons of Shopify dropshipping with AliExpress.
Pros Of Dropshipping
Low Startup Cost
Firstly, The cost of starting a Dropshipping business is very low compared to the most online businesses. Furthermore, you get to escape expenses like getting a warehouse and maintaining the inventory you stock in it.
No Housing Your Own Inventory
When doing Dropshipping, you don’t have to worry yourself with buying the product in bulk for warehousing. You don’t get to keep products you aren’t going to be selling anything soon or worse nobody wants these products.
You’re not the one in charge of packaging the products you sell. In other words, the retailer does all that.
Variety Of Products To Sell
There’s a huge variety of things you can sell. Since you’re not restricted by limitations of space and overhead cost, you have the choice to offer a large variety of products.
Run Entire Business By Yourself
You can be a lone wolf when it comes to Dropshipping. Since you’re not handling the products physical, you really don’t need any assistance.
Well, if it gets to a point where you start making lots of sales and it becomes tasking to handle by yourself, then hire a virtual assistant to help you out.
Run The Business From Anywhere
This is a type of online business to start that will give you the flexibility to work from home, a café or any other place that suits you.
This is because all you need is a laptop (or phone… although i wouldn’t suggest only using that) and an internet connection.
Also, it’s something you can definitely start by doing part-time.
Cons Of Dropshipping
Very Competitive
Since the barrier to entry is low, it means that there’s a lot of competition. The thing about saturated markets is that you have to stand out in order to succeed.
High Cost To Acquire Customers
There’s a high cost to acquire new customers in Dropshipping. This is because there’s a 1% – 3% conversion rate.
Most times people just go with paid advertisement. Meanwhile, there isn’t going to be a lot of repeat customers with this method.
Low Profit Margins (20%)
One of the beauty of Dropshipping is that you don’t have to deal with overhead of owning and managing your own inventory. But this is a double edged sword.
Since there’s no bulk inventory, there’s invariably no bulk pricing. In short, you’ll likely have to pay more for each item. And that means your prices won’t be as competitive, therefore leading to less profit.
Hence, such a situation will make it hard for you to cover business expenditure like marketing, managing orders and maintaining your website.
Hard To Find Winning Products
It’s pretty difficult to find winning products. Without proper research you might just end up buying courses you don’t need, and subsequently spending money on products that won’t convert.
The thing about Dropshipping is that, you’ll probably have to test different products to find the winning product.
I had to go through ten different products before I found a decent winning product. It was in the form of the posture corrector and it was a success.
Wait! Was it?
I later discovered I spent more in marketing the product and other business expenses. So, the winning product wasn’t really winning (pun intended).
No Control Over Inventory
The supplier might just claim to have 500 items in stock when he really has none. You’ll be the one to face the customer’s wrath when all goes sideways.
Additionally, if you’re just starting out, make sure you look for high-quality suppliers to work with. Above all, it will save you from a lot of headaches in the future.
No Branding On Packages
Since your product doesn’t have your brand name or logo on it, your customers can easily focus on the brand and forget about the shopping experience.
A brand that doesn’t have customer loyalty won’t have regular traffic to sustain its online presence, especially a business model like Dropshipping.
Long Shipping Times
This is one of the biggest setbacks of dropshipping. From the little profits you’ll make, will include hidden charges like chargebacks and returns. It’s certainly a bunch of stuff you really don’t want to deal with.
I’m not saying that this isn’t one of the best online businesses to start as a beginner, but it has a high risk factor because of needing paid ads. Just keep that in mind.
Anyways, that about wraps up the shopify dropshipping pros and cons.
I gave them the bronze medal!
And here is the complete slide for Shopify Dropshipping w/ AliExpress:
#2 of: The Best Online Businesses to start is a… Social Media Marketing Agency
If you enjoy using social media to connect with others, then starting a social media marketing agency might be for you. Here are the pros and cons of running your own social media marketing business.
Pros Of Starting A Social Media Marketing Agency
Little Or No Startup Cost
It doesn’t require much investment or equipment to start. A computer and good internet is sufficient.
Start Making Money Fast
If you know what you’re doing, you can start making money fast. Just put yourself out there and try to convince others of your skills.
Also, it gives you the ability to charge customers by doing recurring billing.
Run Your Business From Home
As a social media marketer, you can run your business from home or anywhere that has an internet connection.
Cons Of Starting A Social Media Marketing Agency
A Lot Of Moving Parts
It can be challenging at times. Especially when it comes to managing the business.
You’ll have to stay on top of changes in algorithm, company policies and other aspects of the social media platform you’re using. Without the required knowledge you can’t deliver the best results for your clients.
Handling Target Audience
You need to have an understanding of how to engage with potential customers for your clients.
You’re not representing yourself but the company. So, you need to know how to set the tone and attitude on the company’s behalf.
Can’t Scale Without Employees
When your clientele starts growing, you’ll be faced with trying to organise several social media platforms. And it’s crucial you meet the social media needs of every client.
At this stage of your business, you have no choice than to hire someone to help you out. And this comes with its own set of challenges.
So, I’m gonna end it there for the SMMA pros and cons…
I gave them the silver medal!
And here’s the complete list for Social Media Marketing Agency:
And last but the not least…
#1 Best Online Businesses to Start in 2019 & Beyond is… Affiliate Marketing!
This is my favorite business model. And 100% the best online business you can start in 2019 and beyond.
I’m sure you’re curious why I said so…
Well, Affiliate marketing brings unique opportunities, and it can be started with little or no capital.
So… What is Affiliate Marketing?
Affiliate marketing is when you get a sale for someone purchasing a product, software or service through a personalized link that is given to you by an Affiliate program.
Virtually every business that has an online presence runs an Affiliate program. Amazon, for example.
It’s a genius way of marketing, without having to pay big bucks to advertise on billboards, radio, or T.V. And all they gotta do is pay you a commission on each sale you make.
It’s a win-win situation for both you and the merchant.
Click here to check out my: FREE Training on Affiliate Marketing.
Or you can just continue reading and you’ll see all of the pros and (kinda) cons of affiliate marketing.
Pros Of Affiliate Marketing
No Technical Skills Required
You don’t need to be a marketing guru to be an affiliate. You can learn along the way. There are tons of ways to run and manage an affiliate programs, either organically or through paid campaigns.
That’s the main reason I think this is one of the best online businesess (if not, THE best) to start. Because paid ads are a very expensive lesson that you don’t want to have to learn by doing it the hard way. And you can use all FREE traffic and it works really well!
It also gives you the opportunity to utilize any digital skill set you already have.
With continuous practice you can identify the platforms that works best and brings the most profit. Then, you can optimize and repeat the process.
Very Low Startup Cost
The cost of running an affiliate business, especially in the beginning, is almost non-existent.
You don’t have to create a product, manage inventory, do customer support or any of those head aches associated with other industries.
After signing up for an affiliate program, you place your affiliate links on your website or blog, and you can start selling right away. AND many other ways that you’ll learn in the training! 😉
Since you aren’t really spending much in the way of creating or managing a product, you can start making money from your first sale.
High Profit Margins
As an affiliate you earn only a fraction of the sale. With high volume of sales, your profit margin is very high.
This is coupled with the fact that you can promote multiple products from different merchants with no overhead cost.
This fluidity means you can change programs at will. If you discover that a program is a sinking ship, you can easily switch to another product that will bring you success.
Run Entire Business By Yourself
You can basically run the entire business by yourself without the help of anybody. From setting up your affiliate links to marketing the product.
Run Entire Business From Home
Technically, being an affiliate makes you a freelancer. You get to choose your working environment and business activities.
Moreover, you can be anywhere in the world that has an internet connection and operate you affiliate business.
Passive Income
Affiliate marketing is a great source of passive income. You get to keep your 9 – 5 job while being an affiliate or run other internet based businesses. If you choose to do it full-time, then get on with it.
However, you should take note that affiliate marketing is a performance based income. So, if you’re lazy or looking for a get-rich-quick business, then I hate to burst your bubbles, affiliate marketing is not for you.
Cons Of Affiliate Marketing
No Control Over Affiliate Programs
One of the downsides to affiliate marketing is that you have no control over the program. That is to say, you’re subject to the rules and conditions.
If the things like pricing, updates, and customer support is not handled right by the merchant, it can have an adverse effect on your business. A good affiliate program today may turn out to be bad tomorrow.
You Can’t Establish Your Customer Base
Finally, the simple truth is that being an affiliate means you’re helping the merchant build his customer base and not yours.
Which means a customer will only purchase through your affiliate link once and you won’t get credit for future sales…
So, they definitely retrieved the gold medal!
And here is the finished Affiliate Marketing slide:
Actually that last statement wasn’t entirely true…
You USUALLY wont make any money from a customer again after the initial purchase…
UNLESS – the affiliate programs offers recurring commissions, sticky cookies OR if you happen to capture their email BEFORE they buy through your affiliate link.
And if you don’t know, a sticky cookie is a piece of code that basically sticks (no pun intended…ok maybe it was) to anyone that buys through your affiliate link and it allows you to get paid for every single future sale that person makes through that specific affiliate program.
If only there was a company that offered sticky cookies AND recurring commissions…
And a software that made it simple for you to you to capture their email before they even got to see the product you’re promoting…
It Does Exist and ClickFunnels is The Software
ClickFunnel’s affiliate program offers recurring commissions with 40% going to your on every single payment. They have sticky cookies as well!
The best part?
They make creating beautiful email optin pages (where you can collect emails) so simple to create, my 90 year old grandmother could do it in 20 minutes. And that is just the simple truth.
Not only do you NEED ClickFunnels for Affiliate Marketing (in my opinion) You need it for any business that wants to convert customers, into buyers…
I’ll make it easy for you…
Anyone or any business that wants to make more money…NEEDS ClickFunnels!
It’ll turn any business, online OR offline, that isn’t already using it… into an automated money machine that works for you around the clock!
If you don’t believe me, check out the my FREE training!
And you will learn how you can get the entire funnel (a.k.a. the entire business) uploaded into your own account in seconds, seriously…in seconds. And it’s all with this little-known secret, called a share funnel!
Click HERE to get your FREE Training and see how amazing a funnel actually looks!
Conclusion:
As a show of appreciation, I got an extra little bonus for ya since you made it to the end:
If you want to download the slides and have complete pros/cons for the 3 best online businesses to start for your own safe keeping to look back on…
Click here to download the slides.
Thank you for reading,
