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5 Reasons Why an Online Business is Better

Updated on August 27, 2010

If you have the entrepreneurial spirit or want to get out of working for someone else to do your own thing, starting an online business might be a better option then the standard brick and mortar business.

There are many benefits to having an online business, here are 5 reasons why an online business is better:

Reason # 1
-Low initial start-up costs.

Heading towards an online business is the right direction to go if you're money strapped. The cost of a web domain runs for approximately $10 if not cheaper these days. Then there is web-hosting to get your domain working - that's another $5-$10 a month. So the total to start online? $15 to $25 a month. Keep in mind this is the bare minimum to start (there is also free web-hosting, but there is a lot of advice against it).

Let's not forget to mention there are also plenty of websites out there that don't charge you a penny! That's right, you can try to make money with no start-up costs at all. Although there are limitations to what you can do, the fact that they are free allows anyone to build a business online. Click here to see which sites allow you to do this.

Why is this better a better reason? Anything you buy to begin the online business such as web development software or advertisements to market your product/service may still add up to be considerably less than a brick and mortar business. You are risking just a fraction of the amount of the investment capital needed in a brick and mortar business. An online start-up gives many people with limited capital an opportunity to begin a business online.

Reason #2
-Limited overhead costs

An online business contains no lease contracts, no water bills, no maintenance costs, no insurance!

Why is this better a better reason? You automatically reduce all the major expenses that you would usually incur while in a brick and mortar business. Your online business operating expenses now consist of electricity going to your computer, $5-$10 monthly web hosting services, $10 / yr domain. Any other services you decide to sign up and pay for online will also be less monthly overhead costs of a brick and mortar.

Start Your Online Business Recommended Books:

Mastering Niche Marketing: A Definitive Guide To Profiting From Ideas In A Competitive Market
Mastering Niche Marketing: A Definitive Guide To Profiting From Ideas In A Competitive Market

5/5 Stars. Regarded as the BIBLE for online marketers. Reach your GLOBAL customers today!

 

Reason #3
-With cost-savings from Reason #1 and Reason #2, you can pass those cost-savings to the customer!

Why is this better a better reason? With so many similar products and services out there, you have the advantage of being the low-price competitor. Usually customers will come to you first looking for value - and they will purchase your goods to save money. This, of course, doesn't apply if you don't have a similar product/services. So, if you don't have similar goods, cost saving will still allow you to increase your gross and net margins, you get to keep more profit.

Also, If you don't have a product or service to sell for your online business, you can still make money from affiliate marketing or advertisements - that's almost like making money out of nothing! Just make a name for yourself and you're golden!

For brick & mortar business giant Wal-mart, saving costs for the customer is their time-tested strategy and commitment - their slogan is, "Save Money. Live Better." Usually, products at Wal-mart are lower priced compared to most competitors and that draws in customers like nobody's business. On the other hand, online giant amazon.com is giving Wal-mart a run for its money in the online business world. Amazon's prices are sometimes significantly lower on similar products online compared to Wal-mart's (plus there is no tax, in most states). However, there are disadvantages such as waiting for your items to be shipped.

Reason #4
-You can work from anywhere and anytime, and be available to to showcase your goods 24/7.

Why is it a better reason? You don't have to be confined to a certain location and your business online is never closed. You don't have to wake up every morning and join everyone else in rush hour. The internet is a huge network that enables you to work from anywhere you can connect. You can also work at anytime - the internet never shuts down.

One of the most important utilities to business is time. Going online allows your business to be open 24/7 and makes your goods or services available when customers decide to purchase them. The limitation of time keeps brick and mortar business customers out of reach. This is lost revenue!

Being online makes your products or services available when customers want them. Setting up e-commerce allows you to make those few sales in the wee hours of the morning from interested online shoppers; it eventually adds up!

Reason #5
-Reach a larger customer base.

Why is it a better reason? The potential revenue and branding of your business. Since the internet is one huge network available worldwide, you are essentially tapping it for customers on a global setting. Also, online Internet marketing is cheap if you know how to take advantage of it and make a name for yourself by branding.

The boundaries of going online are not limited to your location of origin so your income potential is huge. This may be the best reason to start an online business.

So the next time you think of starting a business, remember that if you don't have an online business presence, you are missing out on potential revenue!

Five Reasons Why an Online Business is Better.


Recommended reading:

Mastering Niche Marketing: A Definitive Guide To Profiting From Ideas In A Competitive Market
Mastering Niche Marketing: A Definitive Guide To Profiting From Ideas In A Competitive Market

5/5 Stars. Regarded as the BIBLE for online marketers. Reach your GLOBAL customers today!

 
e-Riches 2.0: Next-Generation Marketing Strategies for Making Millions Online
e-Riches 2.0: Next-Generation Marketing Strategies for Making Millions Online

Make MILLIONS Online with these Next Generation Strategies!

 

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      Jackson Tyler 

      3 years ago

      I feel reason number five of the article is the most important point that was made. The customer base is a major reason for having an online business. You can potentially reach more people sitting in your room in a week than you could in a year of brick and mortar business. You can customize your work to reach not only more people, but also the right people... your target market. https://www.emerchantclub.com/new-members.html

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