Online Business Ideas – Top 5 for Beginners (2019)
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The Top Five Online Business Ideas For Beginners In 2019
Having thoughts of any online business ideas? In this article, we’re going to break down the top five online businesses for beginners. And I’m going to reveal to you the number one opportunity for an online company that no one is taking advantage of in 2019. For those of you new to this blog, we build six figure automated online businesses that allow us to live a life of freedom. And on this blog, we teach you everything that we’ve learned.
If you read through to the end, you are going to learn the pros and cons of these top five businesses, their earning potential, the ease and accessibility to set them up and also the number one opportunity that no one is taking advantage of right now.
So you can go out there tomorrow and set up your online business, but before we get into the article. Don’t forget to subscribe so that when I release more marketing strategies, tactics, and stories, you’ll get notified.
Dropshipping: Shopify
The first online business idea we’re going to break down today is drop shipping. So the way that Dropshipping works is essentially is you sell products without having to keep any stock in your store.
So typically you have a store set up on Shopify. You’ll sell products via Ali Express which is the most popular platform. In the shipment details from people to make a purchase on a Shopify store to the Ali express manufacturer supplier.
They then ship the product to your customers, and typically you’re doing what you’re selling and driving traffic to the Shopify store via a Facebook app.
So that’s the general setup for a typical drop shipping store. So the pros of drop shipping and Shopify is that drop shipping is straightforward to start. You can get a website or a store set up on Shopify within one week and start making sales within a single week via Facebook ads and finding the right supplier and Ali Express. It’s a great option if you are a newbie beginner at online business. You can also make sales relatively quickly as I mentioned with Facebook and you can drive traffic straight away it does take a little bit of money to start investing in shop finally can make sales relatively quickly. But that leads me on into the cons of drop shipping and shop because it may be easy to start getting, but that doesn’t mean that you’re making a profit. It’s so easy to start is so many people starting this shop find jobs shipping businesses that it may be easy to start getting a few sales.
However other people are going to find out about that product relatively quickly. They’re going to go and copy your ad copy or page copy your store, and it’s straightforward to copy ads and Facebook now because Facebook shows all of the phone ads on your Facebook page. So those shallow barriers to entry make it easy for someone else to find the same product on Aliexpress and copy your store even if it’s a fantastic store. Copy all of your ads set up their store and start competing with you right away. What happens is you’ll set up a drop shipping store, and you might be getting sales a few months in the end.
Everyone else is going to find how to pull your product and copy your funnel precisely. So the only people really making money worth drop shipping are the ones that started 1, 2, 3 years ago when it wasn’t so saturated. And they have large stores and extensive capabilities to go and find which products are working the best. Thus they can easily outcompete you because they have much more resources much more money to invest in selling the product and buying from the manufacturers that you do.
They also don’t need to get the same products from Alibaba because they can do private label with their suppliers because they have more pull.
They have a lot more resources to offer. If you go into a Shopify and dropshipping now, you’re going to have to compete with thousands of other people doing it and the massive drop ship as they’ve been doing it for a long time will be making the majority of the money. You can see from the Facebook ads tool in this image that there are 29 people worldwide that are interested in job shipping. So you’re not going to be competing with 29 million people don’t worry only 10 percent of those people have dropped shipping stores but that’s still two point nine million people.
You’re going to be competing with and the right proportion of those already very successful dropship as they’ve been doing for years. And you’re going to be competing in the same mission with the same products as those large companies. Also in this graph you can see that Google trend over time the past two years it’s doubled the interest and dropped shipping has increased which is pretty crazy. There are more people interested in starting a shop fired job shipping store than ever before, and it’s getting more and more competitive every day. That’s not the only kind of Dropshipping and Shopify depends a lot on Facebook ads to make sales. And the problem with this Facebook is getting more and more competitive every single week cost per thousand impressions is rising and rising because more businesses are getting into Facebook and competing with you to show ads to the possible consumers B2B MP to see it’s getting more and more competitive across the board. So if you are starting a new business, it’s going to be more and more difficult to sell anything on Facebook, If you don’t already have some capital to invest. So not only is shocked find drop shipping already really really competitive in general but it’s becoming more and more expensive to use the primary tool that these types of businesses are using to sell their products such as Facebook.
And the problem with this massive competition and increasing costs is that you need to compete on price because everyone else is selling the same product as you. It’s difficult to differentiate with branding because you’re a new business you’re primarily going to be competing on price, and everyone else is selling the same product as you. So whoever can sell the product for the cheapest is the person that’s going to win is the business that’s going to win. So your prices are going to drop and drop and drop which means your profit margins get more and smaller and smaller which also makes it tough for you to compete. So there are three cons to Shopify, but that’s not the only problem because you are selling cheap products as a new dropship or a new Shopify store owner you’re selling from Alex brisk typically which typically affordable products from China. And you’re going to find that you get a massive complaint response from these cheap products shipped from China. Because people are not going to be happy with a low-quality product they are selling to them even if that was pretty cheap going to get a lot of complaints a lot of returns. The only thing you need do to obtain proof of this is to go and look at some of the Facebook groups on shop find job shopping, and you’ll see people complaining about the problems they have with PayPal and stripe and charge bags and returns and complaints.
It’s endless. So if you get a lot of complaints, your payment process can even ban you. So there’s a lot of problems with making payments and taking cash with drop shipping and Shopify and Facebook, and Google doesn’t like these little Shopify businesses as well just what it’s going to get more and more competitive to build these types of companies further advance dropship. The earning potential with drop shipping is pretty high. You can earn six-seven figures with your store. You’ve been doing it for a long time you’ve got the private label, and you’ve built a real brand around it. And these big dropship is often like to show their imposing revenue figures one hundred thousand dollars in a month for example. But the profit figures aren’t that impressive. You’re making one hundred thousand dollars, and your store is probably going to be around twenty thousand dollars profit. That’s only a 20 percent profit margin. So it’s not that great at the end of the day. Most dropship has made their money with courses in your first year of job shipping you can expect as a beginner to make 1000 dollars per month and profit which aren’t crazy good. If you survive one year, you can start making more and more 1000 dollars per week possibly. But it is becoming more and more competitive more and more expensive.
So I’m not sure those numbers are going to improve. So in terms of easing us and simplicity to set up it is effortless to set up a drop shipping Shopify store. As I mentioned, the competition is only increasing the cost increases, so I’m not sure how viable the style of business is going to be in the long term future.
Amazon FBA
The next online business idea I have for you is Amazon FBA. Now am is only FBA is a prevalent business to start online because of its ease of set up. And as you know, Amazon is the most highly valued business in the world. So it’s a good idea to partner with Amazon. There are over 2 million people worldwide selling on Amazon. So whether you’re selling products that you’ve made yourself selling products from a supplier or just selling things you don’t want you can sell on Amazon. About half of all sellers on Amazon and people like you and me and of the top 10000 sellers on Amazon 66 percent of them use Amazon FBA primarily you sell it Amazon ships. But you do need to get the product to Amazon first. You need to research products on Amazon to figure out which have a high volume with not much competition. So then you know whether it’s the right product or not, a useful tool for this is jungle Scout.
You don’t need jungle Scout but what jungle Scott will do is tell you which products, for example, have the most or least reviews which products have the most or least competition in terms of their popularity so you can calculate how much volume each of these products is getting. How many sellers are selling these products? And figure out whether it’s a perfect product for you to sell on Amazon. So I recommend using jungle scale if you are going to go to Amazon you’ve been. The first thing you do is figure out the best sellers rank or BSR for the product to tell you how popular that product is and that will tell you whether there’s a high amount of volume of people buying that product and then you’ll know whether it’s an excellent product to sell. But it’s not that simple you don’t want the products BSR to be too low. So if it’s below 250 or 100 it’s quite competitive it means that is larger manufacturers probably selling those products it will be more challenging to get supplies for those products and a lot of the nation. You can also see how competitive the product is by looking at the number of reviews it has. So in this image, you can see here we find several reviews. Typically you want reviews to be below 1000. What you’ll do is you’ll put together 30 competitors and let’s say your top three competitors who have the lowest BSR, and the highest number of reviews you want they BSR to be above 250 and they abused to be below 1000 and possible.
Now if one of your top three competitors has reviews above 1000, that’s okay but if all three do it’s going to be quite challenging to compete. The more competitors and the product category as well can be a good thing because it means that easy to set up. But also there’s more competition. So it could be a good or bad thing depends on the way that you look at jungle scale. Also has a free tool to help you figure out the size of the market. So I’ll put a link to that in the video here to see you can type it in and go check it out if you want. If you do want to go this Amazon route once you’ve picked a right product based on the BSR several views you then go to Ali Baba, and you find a revered supplier for your product. And often you’ll see in your research on Amazon a lot of the products sold on Amazon are being sold via Ali Baba because these other people selling Amazon FBA you feel like you’re going to as well. And you can backward engineer what they’ve done as long as the competition isn’t too high. You have a high enough potential volume and a low enough review after you find a right supplier for your product you then purchase products from supplier send it to Amazon set up your Amazon store, and you’re good to go from there.
Customers will buy a product on Amazon Amazon or handle all of the customer service and delivery of your product to your customers. So it makes it a very convenient easy to sit up way to start selling online. So here are the pros of Amazon FBA pretty effortless in terms of logistics and shipping you need to get the products from Alibaba for example to Amazon and then they do everything else from Amazon manages the returns for you. So that’s much easier than having to deal with the returns yourself when you’re doing Shopify drop shipping. Amazon is a massive network so they delivery speed is much quicker than if you’re to drop shipping or Shopify store. And finally, a potentially unlimited storage space because Amazon’s a large company. They have a lot of space to have your products hang out until they get sold, but there is some concern. Amazon I mean it’s a fantastic selling machine, but there are some things that you need to think about as well. It does cost money to use Amazon FBA. You need to pay to have an account. They’re selling fees these fees to add tags to your products. So there is a lot of expenses that you need to look into when it comes to selling a product.
So there are even storage fees, and if your products aren’t selling fast enough, you’re going to have to pay for the storage which isn’t cool. There’s just a lot of costs in terms of taxes selling in the US having everything stored in the US, etc.. So there are similar problems as there are with drop shipping and Shopify. Amazon has more than 300 million active users 90 million of those Prime users brains available to Prime users specifically Amazon FBA. So there’s a massive opportunity selling on Amazon because the average customer spends thirteen hundred dollars per year. Now that jungle Scott calculator that I mentioned earlier you can use that to calculate how many possible products you can sell per month with the product that you’re thinking of selling. That’s pretty awesome, and you can figure out pretty much exactly where you can do if you do decide to go through with that product and it’s completely free, and you can easily calculate your potential returns using the jungle scout calculator. They have a free calculator on the website. I’ll put on the screen here so head over to that website.
If you do decide to go with Amazon FBA, they have a lot of free tools that you can use. When looking at the Google trends and the Facebook audience tool around Amazon you can see that it is trending upwards over the past few years in terms of how many people are getting into it which means similar to drop shipping and Shopify, in general, is becoming more and more challenging to stop these types of businesses.
Now there’s not anything on the Facebook audience of course just because I guess Facebook hates Amazon but just looking at the Google trends you can see it’s going up and up and up more and more people are doing this which means it’s more and more competitive every day. Now in terms of the easiness and simplicity to sit up it is pretty simple once you have the product sit up on the store, and they’re just sitting there and selling without you having to do much once you have the ads set up on Amazon and you’ve structured your keywords properly you’re good to go. But the only thing is you are taking a risk because obviously, you do need to spend a few thousand dollars to purchase the products from your supplier and then get it shipped to Amazon for the first shipment. So you are taking a little bit of a risk, and it is a little bit riskier if you’re a beginner in the Shopify option and it is getting more and more competitive as well so it’s becoming more and more dangerous to start these Amazon FBA businesses.
Affiliate Marketing
Number three in our list of online business idea is affiliate marketing. So how does affiliate marketing work? Well, primarily you partner with the company to sell their products and services to your audience.
Most commonly this is done via an affiliate link that you have in the continuity of production. Typically you’ll sign up on an affiliate network like share a sale or commission junction or click bank or a range of the other platforms out there. There’s a lot of them will put them on the screen here for you. And these are places where you can find offers to promote buy audiences. So different types of affiliate programs you have Tier 1 which is when you get a commission when someone makes a payment from your fellow you linked tier two which is where other affiliates recommend the link via you think a million more network marketing and the more lines you go down, the more overall commissions you’ll get. But typically the commission percentage is lower. So these range of things you want to look at with different affiliate programs the different tiers that are involved whether it’s a recurring commission high or low commission high conversion rates low conversion rates and the return rates. So the typical way to go with full marketing is either video marketing say create video content, and then that video continues to link out to your office. You can even do blog posts are we are linking out by the blog post of course. And there’s a lot of affiliates on Instagram these days as well. So the pros the affiliate marketing is it’s a massive industry should be around 7 billion dollars by 2020.
The next thing is that you don’t have to deal with any complaints or to deal with customer service. Because it’s not your product, you don’t have to deal with the delivery. It’s also a low-cost business idea if you already have an audience and you start offering affiliate deals to them then you’re going to start making money pretty quickly without having to invest any money.
All you need to do is at this time. But there are some cons, of course, you don’t control the affiliate programs that you’re offering so they might change over time and could completely ruin your revenue streams. You don’t control the competition involved. It might be some competition that wipes out your affiliate link to have to rebuild from the beginning. And you also don’t control whether you’re going to make any money. I mean you’re putting all this work and building an audience and getting t affiliate links out there. What if no one clicks on these, doing pay per performance work and there’s no guarantee of revenue in terms of earning potential affiliate marketing. I have a new study here actually vague link surveying 500 affiliates to see how much income affiliate marketers are bringing in. And according to the survey, 9 percent generated more than 50000 income 9 percent. Fifty thousand dollars. It’s not a law. So it probably isn’t the best place to go if you’re looking to get a high return on the time that you put in.
And the same study at CIT that took five years on average to get to that level. That’s pretty insane putting in a lot of time to make a minimal amount of money earning potential doesn’t seem that great. And if you look at the Google trends and the Facebook audience you can see that it’s a massive, massive audience and a lot of people are interested in affiliate marketing, and it is growing over time in terms of easiness and simplicity of sit up with affiliate marketing and may be pretty cheap to sit up. I mean you don’t have to put much money, but you need to put in a lot of time an average of five years to get to 60 thousand dollars per year in income. So that’s pretty crazy. And if you’re looking for something cheap they are willing to wait a long time to get results and could be a good option for you. But if you do want to make money pretty quickly, it’s probably not a good option, and it doesn’t seem very easy or straightforward to sit up because you have to put in a lot of time to put up an audience to start making those fully offers
Consulting
Now for our fourth online business idea I have, for years Consulting has been around for a long term there’s a lot for one person agencies out there offering their brainpower, and that’s why it’s a massive industry global consulting revenues are 491 billion dollars.
That’s huge because businesses like the time and money they need to invest in things off will always be a need for consulting me always has been and always will be. So let’s get into the pros of a consulting business. The number one great thing about asking is just providing your knowledge and providing your brainpower and telling people what they should do to take their businesses to the next level or whatever specific area you’re consulting is. So if you had some expertise that you can provide you can provide your consulting services without having to do any of the handiwork yourself you know the worker bees you don’t have to go in there and do anything in the businesses. Typically you’re just providing advice and direction on weekly calls them with your clients’ needs provide them a breakdown of what they need to do for the week based on your discussion, and that’s you consulting services. The next good thing about consulting is you have a low cost set up; it’s effortless to set up your consulting service. All you need to do is reach out to people design you offer maybe even have a website or Ellington page start e-mailing calling sending letters to find some clients.
And once you have let’s say ten clients paying you a thousand dollars a week, you’re making 10000 dollars a week profit. So the number one consulting con is that it’s not a business. It’s more like freelancing you’re selling your time, and while that might be great you’re the one that’s doing all of the calls, you’re the one that is meeting with clients, you’re the one that’s going with all the e-mails. You’re dealing with everything in the business yourself you’re limited to how much you can scale this business because you’re in the company you are the business and that means it’s not a business. It’s more like a freelancing role in terms of earning potential consulting I pretty much covered that and the cons. There’s not much-earning potential in it. I mean it’s pretty easy to sit up you can get it out quickly, and you might get to that 10000 dollars a month leave relatively soon. We can’t grow beyond that because there’s only so much time you can give and he’s only so much money you can charge. Also if you look at the Google trends and the Facebook audience for consulting it’s pretty stagnant. There’s been no growth over the past few, years which means that a lot of people already doing it. It’s probably pretty saturated at this point you can probably get the style and make a decent amount of money, but you’re not going to be able to grow a scalable business with a consulting form of marketing.
But of course, it’s super simple and easy to set up these consulting businesses like I mentioned you need to have you offer start reaching out to people when you start getting clients. So if you do want to build a decent sized business quickly then consulting is a good option for you. If you know and you’re willing to put in the time yourself to do the work itself.
Dropservicing
So the number five online business idea, I mean with everyone doing Amazon FBA drops shipping and Shopify selling defective products on Facebook and everyone else doing consulting and Affiliate Marketing primarily selling their time for money there is still one option that you don’t have to sell your time for money, and you don’t have to sell defective products. You can sell excellent amazing services without having to put in any time yourself. And that’s the drop service think it’s mostly a hybrid of jobs shipping and consulting drop service things started with the question what if you could take highly skilled labor from so-called third world countries and offer that as high-quality service in your home country. Well, we would have a significant opportunity on our hands as the number one opportunity out there right now in terms of starting an online business because you can provide high-quality digital services and a product ties manufacturer where you don’t have to be there to provide the service.
You have a team that’s providing service, and all you do is the setting up of the marketing driving traffic to your offer. I mean you have an entire team built around that offer that provides that service your clients and customers without you having to be there. Everyone knows about affiliate marketing. Amazon FBA dropped shipping Shopify and consulting and making them a lot more challenging to compete in because people have been doing it for a long time already and they’ve previously masked that. And then you also have all of these people coming into it now making a very very saturated and competitive. And that makes it a lot more expensive. And take a lot longer feet to get good results with any of those business models though with drop services. It’s a lot different. It’s low saturation; there are not people doing it. It’s low cost to sit up, and it takes a little bit of time but not too much time to get everything going. Let me break down step by step. Now step number one picks any service that you can offer digital consultancies and agencies offerings such as graphic design Facebook ads, video marketing whatever it may be. These are my most recommended services based on the projected growth and the current demand we have the social media marketing agency the Facebook ads agency the virtualization agency the search engine agency and the video marketing agency.
And this is what we do. We research the market. We study the competitors and their market, and we backward engineer the system they are using. You build your order based on that backward engineered model of the market and the competitors you develop your high-quality international team you get your first sales, and then you scale and automate your business to the point that you’re able to do whatever you want. So here’s the process drop service. Number one you are often selling high ticket items, so this means 300 dollars to 20000 dollars which means you don’t so really need to sell too many of these each month to make a decent income. Each piece of the process can be fully automated from sales to project management marketing every single piece. It’s a small industry compared to the other four that I mentioned in this video like drop shipping or consulting. Just look at the Google trends here you can see there’s nothing in the Facebook audience nothing. Once you have the system set up, it’s a pretty scalable and automated boy even if you want to take it ten thousand dollars per month and leave it there automatic, travel the world do what you want. You’re good to go. But of course, with any business model, there are costs. So with drops of the main con is it does take a little bit of time to get this business set up the scale and automated ten thousand dollars.
When I started mine back in 2016, it took me three months to get my first sale it was a 1000 dollar sale, and I remember It was a pretty fantastic day. It’s pretty funny how your first sale is always the most incredible sale and then everyone after that. You don’t care about anymore; it becomes like a typical day. But three months to get my first sale around seven months to get to the point where I was making 10000 dollars per month pretty consistently wrong and in terms of earning potential. I’m not a great example I pretty much took my business ten thousand dollars per month I mean automated out there I mean just traveled around for a couple of years and only start settling down now and 2019. But I do know a lot of people with drop servicing businesses, and my masterminds and some of them are making a million dollars revenue per year which is pretty amazing. So you can grow pretty significant if you want to or you can automate it like I did 10000 dollars per month and enjoy a lot. But when we talk about the easiness and simplicity of sit up, it is pretty simple to get things set up. It is a simple process they need to go through, but it does take a little bit of time.
So those are my five business ideas for beginners, comment below which one you like to sound of. When it comes to deciding which business idea to move forward for yourself, you should look first at the data, which is going to perform the best, which is the easiest and straightforward setup, and which has the highest earning potential. also, consider which has the lowest competition but at the end of the day doing to like what you do and you might be the type of person that’s not motivated by the setting up of the business itself you might need something that you’re more interested and passionate about.
You might be the type person that’s just interested in digital marketing, enjoys building businesses like I am, focusing on the thing that brings you the most money and that’s what young most passionate because at the end of the day passion can be built over time. I guarantee you once you start making money with your business you’re going to get pretty passionate about it. When it comes to the number one option right now in terms of business, it’s Dropservicing, and as you know, I like to drop out a lot of free content around marketing strategies tactics and stories. Sara canning checking out the link below for me to teach you how to build your own online business and an automated ten thousand dollars per month so you can do whatever you want.
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