The internet has changed the entire business is done. In the world, as we knew it, brick and mortar businesses were the status quo. The internet has disrupted everything, are you currently aware of all the opportunities that this provides you?
Traditional Business Case
Let’s say you are interested in selling for example DIY hardware, you would find a physical store, buy inventory and you open your store for potential customers. Now let’s say that you are just starting out, you have no money for employees and you are doing most of the things by yourself, including store keeping, accounting, purchasing and maybe even cleaning.
You are located in a small town, this works to your advantage because there is not a lot of competition. On the other hand, this also means that your supply of potential customers on a daily basis is limited. Maybe your store is open from 9 a.m. until 6 p.m. aside from the 9 hours you need to spend during openings hours you will also have to clean the place, restore supplies, etc. Altogether it is likely that you spend around 12 hours at your DIY store per day.
Sure it is possible that your store is attracting a lot of customers, and maybe you like the interaction with them. But what happens if a bigger and cheaper DIY store locates in your town, directly targetting your customer pool. Because you are bound to your physical location it is much harder to pivot.
Traditional business remains a great way of doing business and for many the interaction with customers is what makes them like the business in the first case. However in a lot of cases traditional business also requires more upfront costs and investment, therefore there is also a higher risk involved.
Online Business Case
Now let’s look at how the traditional business case would work in the online environment. You would have to set up a webshop where customers can view and purchase your products. This webshop is not bound by opening hours as it is accessible 24/7/365. This means you could literally earn money while you sleep or when you are enjoying a holiday with your family.
You would still be required to have some inventory, but you would be more flexible. You could cooperate with a drop ship company for your less popular items so you would not be required to keep a large inventory. This is much different from a physical store as an empty store simply does not look appealing.
Even if your physical store has a solid reputation, the radius from where potential customers would find your store is limited. An online business, on the other hand, does not have such limitations. Sure if you sell physical products you are bound to certain shipment conditions and limitations. Depending on your type of business the world literally could be your market.
Of course, there are still cases where a traditional business has an advantage over a purely online business. The point here is that for those out there looking to become an entrepreneur, online business is a logical step that requires substantially less upfront investment.
What is Online Income?
So now that you know the differences between online businesses and traditional business, let’s talk about what exactly online income is.
Online Income, or passive income as some like to call it, is income that is generated online through an automated approach. Personally I am not a big fan of the term passive income. I believe that passive suggests that it requires less work, which is certainly not the case. Therefore, I prefer to use online income as this sets more realistic expectations.
Online income can be generated from a lot of different sources and what is suitable for you depends on your personal goals and expertise. I am a strong advocate of creating genuine business and I distance myself from all the get-rich-Ponzi’s out there. Building an honest business online to generate additional income takes time, planning, strategy, a lot of hard work and a little bit of luck.
Why Should Online Income matter to you?
If you have been thinking about starting your own business going online is the best thing to do. You have the opportunity to grow and develop yourself and your brand without exposing yourself to a lot of risks. Going online requires a very small investment in both time and money.
Once you have created a brand for yourself there are countless opportunities for you to make earn additional income both online and offline. You will have access to an infinite pool of potential audience and people to whom you can add value to their lives.
What do you think, what is your motivation for creating additional online income? Be sure to leave a comment below!