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How and why invest in an internet business

Updated on February 28, 2013

Advantage of internet business

View from one of our office options.
View from one of our office options. | Source

Investing time and/or money

When starting any business there is always a time cost for money. For brick and mortar businesses the money investment is high at the start, then turns to a time investment. The success rate for this type of business is higher than for internet businesses. Our belief is the high dollar investment motivates the owners. In cases on the internet we have found the trade off more worth while when a combination of both time and money are involved. The money investment is a better motivator than time alone.

Business consulting, what we have learned

Our long term goal when starting our business was to be consultants for others starting businesses. This was our area of expertise before starting the internet business. This started for us six months into our online business presence. So far we have found that internet only businesses as such do not exist. In some way there is always a time cost offline either on a telephone, face to face, or with local appointments. Money cost offline exists also if it is only the tax collector.

Personal choices which must be made

In some cases the time cost doesn't seem worth the effort at first. As time progresses a large time investment or a small time and dollar investment can pay off well. It takes time to choose which way time and money are best spent. If a person takes the time only approach remember if you don’t reinvest a percentage of the money earned it will take even more time cost.

Tax benefits

Something else which can be taken into consideration are the tax benefits. The first two years businesses often "make no profit" however the tax benefits of owning a business make it worth while to be in business. We find it best to consult a business consultant who provides tax advise through a lawyer they provide, or your own tax adviser. When consulting we always advise getting the advice of a lawyer. You own is always the best bet however there is often a money cost involved. More often than not the cost (both time and money) of professional help is well worth it.

Do you have a passion to share

Do you believe internet business is about passion?

See results

Sage advice

There are times when the time cost factor doesn't look like for a new business it will pay off in the short term, however over time bring in more in residual income than could be made using the time otherwise. This is the premise of most internet businesses. We never advise quitting a day job until a business is earning more after reinvestment than a person is earning now.

Residual income is the benefit of internet business

We have one program where we invest time daily. Ten minutes maximum overall with some days being longer while other days are shorter, and a two one time payments of ten dollars earned from other internet sources. It is currently paying based on our ten minute daily investment. This will continue to grow over time without an increase in the daily time investment. In time, our time investment will be cut to about three minutes a day. The only “problem” with this business is it requires at least a three minute time investment seven days a week.

Advantages of internet business

Internet businesses have advantages over brick and mortar businesses in the fact they are less expensive to start and operate. They can also be run from anywhere as long as there is an internet connection or you can get signal on an internet capable phone. Careful planning (time cost) along with professional help (money cost) will always be the best way to go. If you don't have this option it can be done with a total time cost as long as you reinvest what is earned getting the professional help needed to move a business to the next level.

We ran our internet business here

With an internet connection and laptop or smart phone you can run a business anywhere.
With an internet connection and laptop or smart phone you can run a business anywhere. | Source


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    • wheelinallover profile imageAUTHOR

      Dennis Thorgesen 

      8 years ago from Beatrice, Nebraska U.S.

      RolyRetro I built a website using a free website builder which still carries the sub domain name. It is totally ad free and meant to stay that way. For some reason companies keep approaching me to add and pay for advertising on the website. To my knowledge is has never had more than 100 visitors in a week. It is also only page one under the corporate name, in reality there is no search engine optimization in place. The website is pictures with small captions on some of the pictures. The only links on the site are to those who donate pictures.

    • RolyRetro profile image


      8 years ago from Brentwood, Essex, UK

      Great hub. My niche website took 6 months to start getting real trafff, and only now after a year or so have I started to make money from advertising, and I am looking at adding products which can be purchased.

      In 2 years I am looking to quit my full time job and focus on my web businesses, including HubPages!



    • wheelinallover profile imageAUTHOR

      Dennis Thorgesen 

      8 years ago from Beatrice, Nebraska U.S.

      For many hub pages is their online business. The same rules apply. If your not interested in what you are writing you won't keep at it.

    • Gracenduta profile image


      8 years ago from Kenya

      great hub

    • wheelinallover profile imageAUTHOR

      Dennis Thorgesen 

      8 years ago from Beatrice, Nebraska U.S.

      bryan baldwin we have been in business and incorporated since Jan 2011. We have a team of experts in place who have been in internet business between eight and twelve years (who also keep current) who can take a company from no internet presence to a world wide audience within a few months.

      This is with their social media in place and working properly. Creating interest, doing all the right necessary to get the links needed for search engine optimization, as well as the correct branding. We also earn from other online and offline sources, which is necessary to support two houses and staff.

    • bryanbaldwin profile image


      8 years ago from Los Angeles

      Internet Business is an incredible tool for a rewarding career!! Kudos.

    • wheelinallover profile imageAUTHOR

      Dennis Thorgesen 

      8 years ago from Beatrice, Nebraska U.S.

      Brett.Tesol we have learned it does take time to get ranked. We have published three websites one with only the corporate logo until we finish fleshing it out. We were told time online helps. Neither site is showing up yet in a search. To my knowledge they won't be picked up by search engines yet although they have already been back linked to a PR 3 Social site. They have not been submitted to search engines.

      rajan jolly for most it does take time. We were told we were lucky, however it was choosing the right program which got our start. It was being paid to advertise for another. We still do this on a daily basis. We have never spent a dime on this program, and have kept receiving payments. With most people they see a little gain but have to wait until a certain threshold is reached before cashing out. People who are doing it this way say "I am earning". When people say they are receiving payments means money in a bank account. There is a right and wrong approach for any online business we advise taking the time to learn what is available online before "paying big dollars" and never listen to people on the telephone who are trying to sell internet products, unless they prove beyond a shadow of a doubt they can be found on line and have a good reputation.

      We never cold call anyone. It is a bad business practice. Calls are made to someone who was given as a referral using the name of the person who gave the referral, but refuse to bother people we don't know. For emails it is the same, we offer everyone who receives our information the chance to opt out, this continues with every email in the auto responder series. For those who request information outside the series we don't send repeat messages if we receive no reply. There have been people tell us "this is the wrong way to do business" even so we won't change. By respecting others we believe we are doing the right thing.

    • rajan jolly profile image

      Rajan Singh Jolly 

      8 years ago from From Mumbai, presently in Jalandhar, INDIA.

      Wheelinallover, this is interesting information. I agree internet business takes far longer and even longer when money investment is not made. Since results take a long time to show up, it needs a lot of patience to keep going at it. But this has the added benefit of a residual income which keeps growing if one is working on it with atleast some minimum time investment.

      Wonderful information. Appreciate this.

      Voted up and useful.

    • Brett.Tesol profile image

      Brett C 

      8 years ago from Asia

      Another great hub. Online businesses take time to build up, you have to put effort into them, but once they start rolling, you are on to a good thing. I normally find a URL takes about 6-12 months to get well established and good traffic, increasing steadily from there. However, this will only happen if your site is good and your content both quality and original.

      You are also right that it is about passion. At the very least, you have to be interested in what you are doing, as otherwise it just won't work long-term.

      Socially shared, up and interesting.


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