E-BOOK | NON-US RESIDENTS | TIPS | GROW YOUR EARNINGS | CASHCRATE REVIEW | ARTICLES | BOOKMARK ME
Why I Decided to Start an Online Business to Make Extra Money Online
My decision to start an online business to make extra money online wasnít made overnight. Prior to deciding on starting an online business, I contemplated several entrepreneurial options. As a seasoned entrepreneur, having experienced entrepreneurship for some time now, I am capable of making bigger and better decisions.
Brick & Mortar Small BusinessThis is the first thing that comes to mind for many aspiring entrepreneurs. Why? Because itís an easy solution. Just go buy a business and run it right?
I tried this avenue and although it was profitable, it just involved too many headaches. If you plan on running a physical establishment like a dry cleaners or a Subway store, you will need employees. Sometimes a lot of employees, particularly if you plan on not being physically involved in the business as much!
The more employees you have the more headaches and more liability. Employees call in sick all the time. What they do on the job is beyond your control but your responsibility if it results in a complaint from a customer. You have to pay them whether or not your business does well.
You also have heavy fixed costs that you must bear whether or not you make a profit. These are called ďsunk costsĒ. They include things like rent expense, the equipment you purchased, the insurance policy you carry, etc. You have to pony up for these expenses if you are in business. I can sit here and tell you 101 other reasons why I decided to walk away from this option.
Real EstateI also tried wheeling and dealing in real estate and although this area can be extremely profitable, I just canít get myself to see it as a business to feed my ongoing needs. I see it as a long term steady investment opportunity that pays off very well over time.
See I am a value investor, which is quite different from a speculative investor. A speculative investor would buy a piece of property and speculate that it will rise in value just to flip it. Boy I feel bad for the ones who got caught in the housing bubble. There are many that made a killing off it; however no one can predict exactly when the bubble would burst. Overall, anytime you hear the word speculation, you know you are dealing with risk. A lot of it! Speculation is synonymous with ďguessingĒ!
As a value investor, I saw good steady profits in rental income (your rents must be more than your monthly investment/payments). You will also gain some equity in your properties with the passage of time. Itís a great steady and sure long term option and I definitely recommend it.
Just make sure you study it carefully (like any other venture) before getting involved. We all hear the positive stories on the up and up, but rarely do you hear about having to pay money for property repairs and upkeep/maintenance, tenant issues/evictions, legal battles, rising property taxes, association dues and extra assessments, etc. I had to evict a tenant once and gosh that wasnít pretty for anyone involved!
There can be equally as many headaches in real estate as a brick and mortar store. However I would recommend it over a physical establishment. That is just my personal opinion.
Licensing and FranchisingThe two can be great options for someone who knows how to work the field. This works especially well for creative minds with inventions and patents. Youíd be surprised how easy it is to get a provisional patent and start experimenting and testing market demand for your invention.
To be successful however, you must spend a lot of time approaching businesses and other constituencies about your idea. But first you have to develop your idea. Some have a knack for finding a need and coming up with something to address that need instantly.
For me personally, this venture involves running around too much and at the end of the day you are at the mercy of someone else making then decision whether to buy/license your idea or not. I mean you can always take your idea to market yourself by manufacturing the product. Personally, I donít like to deal with the entire headache.
Stock Market & InvestingThe stock market is an interesting creature. You know how we all hear that many millionaires were made from dealing in the market? Well I personally have not met anyone who has become filthy over their investment lifespan. So who are all these overnight millionaires?
I am sure it is possible, and I am sure many have accomplished it. However I personally prefer value investing (mostly in mutual funds through index funds and steady funds). Value investing is slow, steady and profitable over the long run. However you canít count on it to feed you every year.
If you are counting on the market to provide your annual living expenses, you will have to earn enough returns to be able to take out money on a monthly basis. This means you cannot hold stocks for long (a huge disadvantage). In addition, you have to pay capital gains tax on all the profits you made, whether you took the money out from the market or not. There are just way too many things to consider.
It takes money to make money in the market, unless you catch a lucky break and your shares jump 200% overnight. Even that requires a heavy amount invested. After all $1,000 worth of stock will only rise to $3,000 even with a 200% increase. See my point now?
I steadily invest in the market through my 401(k) and IRA retirement plans, and they are both doing quite well. I just canít imagine working the market for a living. That is not my specialty, nor my preference. Itís great for a hedge fund manager somewhere in New York or North Carolina.
The market definitely isnít for the average entrepreneur. I always follow what Warren Buffett saysÖand that is donít get involved in something you donít know. Of course he means in the context of the stock market. However, I believe that advice is applicable to anything in life.
Play on the field that is familiar to you. And if it is not familiar, learn as much as you can about it, get comfortable and then start running around. Start first by walking however or you will fall!
Starting an Online Business to Make Extra Money OnlineBefore I get into why I choose an online business, let me spend a few lines discussing eBay. eBay as an online business is a great option for someone wanting to experiment with the Internet market (eCommerce) and test the demand/pricing for their product.
To use eBay, you need a product to sell (tangible or electronic). If you have an information based product that you created, eBay can be an instant avenue to access millions of dedicated loyal users that might be interested in your product. Of course you can also try Click Bank (excellent avenue!) to sell your eProduct.
If you have a tangible product, you need to be either unique or have a cost advantage over your competition. eBay is no longer the place where you sell stuff you find in your basement (of course you still can but for how long?). It is a place where discount merchants have flooded the market. You can find pretty much anything you want for cents on a dollar in brand new condition!
So think about what you will be selling before getting involved with eBay. Remember, itís not about what you want to sell; itís about what customers want.
Read a detailed discussion on eBay here (replace this with the keyword link to the article)
Why I chose an online businessSo are you ready for this? Here we goÖ to make a long story short, I can come up with 100 disadvantages involved in all the options discussed above. I can find equally as many advantages with starting an online business.
My decision to start an online business was based on several factors, the most important of which is the concept of passive, residual income. In all the options above, I knew that my profitability was limited to how much I could work. In other words, trading hours for dollars. Isnít this the same as a JOB? You work and your employer pays you right? What happens if you stop working? The options above are not any different in my opinion.
You also have less liability online, particularly if you are not selling a particular product. Look at this site for example. What am I selling? Nothing! All this information is free for you. Yet I am doing quite well financially ? There are many ways to monetize a website; and that doesnít have to be charging your website visitor.
Success is not guaranteed when you start an online business. You must do your research and monetize your website traffic once you get to that point. It takes a lot of time, patience, persistence and passion! Without any one of those ingredients, I can guarantee failure. You must stick with it and success is inevitable.
You can monetize your website in many ways. You can display adds for vendors, make money from Google Adsense and other Pay per Click programs, sell products, affiliate marketing referral, creating and selling an eBook, showing others how to do it and many more.
You can easily start an online business to make extra money while having another full time job. You can use the Internet anytime and from anywhere you have a connection. All you need is a computer, and laptops are dirt cheap today. Go to Dell and look at their specials section or their refurbished section. Youíd be amazed on the kinds of deals you can get. I recently bought two Inspiron laptops from Dell for my mom and sister and paid less than $500 for each. Who wouldíve ever thought laptops would become so cheap?
Starting an online business is extremely flexible. You can travel anytime and all the time! You can work on your own time from anywhere in the interconnected Globalized world we live in today. So for example if you have a traveling job like mine, you can be making extra money online from anywhere! Or you can do it as a full time venture as well!
Online businesses are also mobile and lucrative in the sense that you can take it in any direction you want overnight. Can you do that in a Fortune 500 company? I work for a Fortune 100 company with over a 250 Billion Dollar Balance Sheet. We have been trying to turn this thing for years now and progress just seems sooo slow! With your own online business, you push a button and off you go. You decide on whatever part of the business you want to work on any given day.
So yes the key is traffic. Once you have your business established you can monetize your traffic any which way you want. Websites have truly revolutionized business today and has made each and every one of us capable of competing on the cyber platform. I am sure you have heard of flipping real estate? Well that is all old news friends. The new trend is cyber real estate! Websites! Buying, selling, flipping websites! Creating websites to make extra money online! You need to join the trend and capitalize on this wonderful opportunity we have today.
Of course, having your own business, online or not comes with its tax advantages. I suggest consulting the IRS website (irs.gov) and the Small Business Administration to learn more about this topic.
You are probably thinking I am all over the place in this section of the discussion. Well that is because my mind is going 134234 times faster than my fingers. I have so much to say I can sit here and talk to you about this for months without stopping once.
To summarize, I chose to start an online business because:
SBIIf you would like to start an online business to make extra money online, I strongly recommend taking a look into SBI. SBI is not just a tool but a comprehensive business partner that will be there at every step of your journey. This website you are on is an SBI site. It may look simple, and that is the point, but it ranks very well with search engines and gets a lot of traffic.
The magic of SBI is that it letís you focus on what you do best (which is your business!) while it focuses on getting your webpages optimized, submitted to search engines and get your website higher and higher on the search engine rankings. Itís truly magical and I can speak from personal experience.
I particularly recommend SBI for a beginner. This resource is all you need to learn about the Internet, websites and how to make money from it either part time or establishing a full time business. I canít thank SBI enough for my success online.
To this day I donít think I have touched even 20% of what SBI has to offer in terms of tools, resources, free eBooks, articles, forum discussions, etc. It just never ends. There is always new stuff being added.
It can be extremely overwhelming but wonderful to have access to pretty much the entire online world in one place. The best is that everything is for free with no extra added charge! Many of the free resources you will find on this website are from SBI as well. They allow you to give it out for free because they are extremely confident in their products and know that it can work for anyone.
So if you are thinking about just getting started online with a website and experimenting with it, read here how you can build your own profitable business while experimenting with websites?
And if it gives you any comfort, know that it certainly worked for me, enough that I decided to pursue this entrepreneurial venture in my spare time despite having a six figure corporate career in a Fortune 100 company. I mean who would do that in their right mind? But my friend, I have absolutely no regrets :-)
HOME | SURVEY SITES | MAKE EXTRA MONEY ONLINE | EXTRA MONEY BLOG | PAID SURVEYS FOR TEENS | ABOUT ME | CONTACT ME | QUESTIONS
E-BOOK | WIN A FREE VACATION | MUST READ TIPS | GROW YOUR EARNINGS | SUCCESS STORIES & ARTICLES | EARN CASH BACK FROM SHOPPING ONLINE
BEST TEEN JOBS | CASHCRATE REVIEW | VINDALE REVIEW | MUST READ - SITES THAT AWARD POINTS | DEAL BARBIE REVIEW | TREASURE TROOPER | CASH LAGOON
GERMAN RESIDENTS | NEW ZEALAND RESIDENTS | CANADIAN RESIDENTS | ITALIAN RESIDENTS | AUSTRALIAN RESIDENTS | FRENCH RESIDENTS | CHINESE RESIDENTS
UNITED KINGDOM RESIDENTS | PHILIPPINES RESIDENTS | HONG KONG RESIDENTS | MALAYSIA RESIDENTS | SINGAPORE RESIDENTS
JAPANESE RESIDENTS | INDONESIAN RESIDENTS | THAILAND RESIDENTS | INDIAN RESIDENTS | BOOKMARK THIS SITE | PRIVACY | SITE MAP
COPYRIGHT© 2011. EASY EXTRA MONEY ONLINE - www.EasyExtraMoneyOnline.com - ALL RIGHTS RESERVED
Your kind donations will keep this Free Website and its related Blog and Newsletter going & growing...