I recently did a video blog where I identified the factors that one needs to look at in finding the righting online business. The first of those steps is looking for an online based product or service where you don’t require a lot of involvement yourself like you would in an offline based business.
In this post I share 3 points to identify when deciding of an online product or service is right for you.
The 3 points
- Affiliate marketing Vs. Online Business: Most people may not be aware that there is a difference between an online business where it is mostly affiliate marketing, and an online business where your own product or service is being sold.
Affiliate marketing is when you sell someone else’s product or service online for a commission percentage. I generally recommend most beginners to use this route when they are looking to start a business online.
You could setup an online business where you could create or design your own product or service and sell. The advantages of this are that you take 100% of the profits, but timewise you would need to invest more compared to affiliate marketing. There are different platforms that help you build your own product or service such as Amazon and Shopify.
2. Information product/service Vs Physical Product: I generally recommend going for an information based product to sell if you are starting out online. Generally there are many different online offerings which offer education based information products, or information in the form of online skills training and building. The profit potential from information products is significantly higher compared to a physical product due to the low costs involved in forming an online information product. It is also easier to distribute online, with easier access for people 24 hours, 7 days a week.
This does not mean that having a business with a physical product sold through an online store or platform is not a good business. There could be more investment required in terms of time and money. However, if the product is your brand there is a big potential to make higher returns long term, especially if you have had experience working online.
3. Investment required: I have already mentioned that in an online business you need to invest some time and money in order to make significant progress. Most people forget to treat an online business just like an offline business. Treat as a business where you track your expenses, work out your profits, and re-invest the profits for longer term sustainability.
A note
My own experience in dabbling in different online businesses has taught me that patience and consistency are the key traits, even when finding the right online product or service to market. Be wary of offerings which promise much in a very short time; I generally am skeptical of such offers. Always remember to do your own research. The internet is full of information, but also be wary of information that can be misleading, especially from people who bash products or services purely because they did not apply themselves in the right way for such a business!
A recommended business for you
I generally prefer doing an online business which is based on information products or training. I would recommend this business which is an education company teaching people to build digital and online skills while learning how to build an online business; the beauty of this business is the opportunity to earn while you learn. Have a look and do contact me if you require more information or clarification.