One of the most frequently asked questions that seems to surface again and again is "How do I start an online business with very little money?"
Unlike brick and mortar businesses that frequently require retail or office space, inventory of products and an in-house staff, an online business can be run from home with no inventory and outsourced staff.
This entry will lay out the absolute bare essentials needed to start your own online business and provide you with a few optional suggestions which can help accelerate your business.
Please note that there is nothing new here. I am simply illustrating the absolute basics of what you need to get started.
1) Decide what your business is going to be about.
Evaluate your own gifts, talents, abilities, passion, knowledge and skills to determine if there is something that is a natural fit for you.
The main methods of making money online include content sites, information products, affiliate marketing, membership programs and coaching programs. The easiest ways to get started are with content sites and affiliate marketing.
What is the content model?
It's creating content that others will find interesting, valuable, humorous or some other adjective that would indicate they will enjoy what you write and want more.
For most people starting with a content site is best. Once you have a content site it can be leveraged to launch out the other four types of businesses.
It doesn't cost you a dime to figure out what you want to be when you grow up. It just takes imagination and desire.
Believe me. I am always reevaluating what I am doing and figuring out what I really want to do next. Hopefully this is a process that never fully ceases.
And once you get into content-creation mode, it can be monetized a number of ways.
2) Register a domain and set up a hosting account.
This is the first item that is going to cost you some money. The good news is that we are talking very little money.
Once you decide on your business model, select a domain name that effectively represents who you are. I recommend sticking with a .com domain extension and avoid hyphens and long domains when able.
When you select your domain name, it isn't a bad idea to consider keywords that should appear in your domain. It's not an absolute must, however. Some of the most popular websites have names that were never seeking to get search engine traffic for their name. After all, what's a Yahoo, Amazon, eBay or Google? Yet they have all become household brands due to the quality and value they provide.
Always seek to provide value first and foremost. You will have a much better chance at succeeding.
You can register your domain name at any of dozens of places, but it makes sense to do it where you are having your site hosted. (If you are totally new at this, hosting just means the place where your website resides. It has to live on a computer somewhere so that people can access it!)
I use and recommend HostGator. It will cost you approximately $8 for your domain registration which is good for one year. And their Baby Hosting Plan gives you unlimited domains, disk space and bandwidth for just $7.95/month.
Because I use their service (I have FOUR HostGator servers) I am comfortable affiliating with them and recommending their service. Click the link below and use coupon code "joelcomm" at checkout to save 10% off your order.
Joel recommends HostGator
3) Install and use WordPress to create and publish your content.
WordPress is the easiest way to get your content online. Best of all, it is free. You can download the software right away at WordPress.org.
Once you have the software, you will want to select a template. This will determine how your WordPress blog is laid out. You can purchase professionally created templates, but there are also a number of free ones you can choose from.
If you don't know where to start, simply Google free wordpress templates.
With software and template in hand (or at least in mind), ask yourself if you are technically able to set these up. If so, good for you! But if not, you'll want to hire this task out. Remember that this is a one-time setup. Once your blog and template are set up, you are good to go.
So I recommend outsourcing it to a pro on Elance.com. Elance is a great place to outsource everything from graphic design and html to articles and accounting. You name it and you can find someone who can do the job at a fair price.
Expect to pay no more than $50 to have WordPress software AND your template installed on your HostGator server.
Note: Due to the number of people interested in pursuing this model we are in the process of putting together a program that will provide hosting and a WordPress template fully installed. I'll let you know when it is ready to go.
4) Have your site professionally designed.
With a template installed you will need someone with graphic design skills to make it look sharp. Do NOT skimp on this. First impressions mean a lot. If people see amateur design they are not likely to look upon your blog favorably. If its worth doing, its worth doing right.
Once again, graphic design can be outsourced on Elance. However, I have two other sites I recommend to get graphic work done.
99Designs.com and Design OutPost are both populated with professional designers looking for work. The cool thing about these sites is that you can post a project for a nominal fee and some designers will create a look and feel for you on spec. That is, they will compete for your business and you get to choose which designer to work with based on their prototype. It's a great way to see a number of different concepts for your site without having to pay to see them. You only pay once you select a designer to work with.
5) Add content. And then... add more content
Content is king. And content is Ka-Ching!
Information makes the web go 'round. People search for information online non-stop. It's your job to create compelling content that others will find interesting, valuable or humorous.
Why do you read my blog? Content.
What's stopping you from doing the same thing in your niche? Nothing.
You can write it yourself, outsource it or make it user-generated. But whatever you do, make content creation an ongoing part of your online business.
6. Establish and maintain a social media presence.
In order to make money with your online business, you must have site visitors. Traffic is the Holy Grail of the Internet. You could have the most beautiful site with the most compelling content in the world. But if no one knows your site is there it just won't matter.
Since we are discussing launching your business for less than $100, you should look to the best sources of free traffic. This is where social media comes in. It's all free.
I use a four-prong approach to social media. It consists of Twitter, Facebook, LinkedIn and YouTube.
I've conducted webinars on three of these and happy to offer them to you for free. Visit Joel's Social Media Bootcamp to get instant access.
And if you haven't read Twitter Power, I invite you to download two chapters for free.
7. Monetize your site.
Once you have a content-based site it becomes an organism that grows over time. As long as you continue to add valuable content to your site, each new article or entry becomes another opportunity for people to find you. The more value you add and the harder you work to get the word out, the more likely your success.
At this point you will want to monetize your content. There are a number of ways to do this.
Google AdSense, Kontera ContentLinks, Chitika Premium Ads, Banner ads, Affiliate links and paid links are just a few of the ways you can monetize your site. To download my free books on several of these, read this blog entry.
8. Take it to the next level
What does this mean?
It means if you have the time, resources and money to get very serious about your online business, there is no end to activities and tasks you can do.
Search engine optimization, traffic generation strategies, monetization strategies, social media, affiliate marketing, product generation, list building and more await those who want to dive in and go for it.
This is where it can get very confusing for people. That's why I recommend that you nail down the basics first and then learn what next steps are needed to get where you want to be.
I'm going to insert a shameless plug here because I do have something which I believe will be of great use to you, regardless of where you are in your online business.
The Secret Classroom is a product of mine that was created during the filming of The Next Internet Millionaire.
Since we recently released it in digital format (for instant access) and lowered the price to $47, I've been getting numerous compliments and kudos on how valuable this content is.
Just yesterday, the following comments appeared on this blog...
"I subscribed to your newsletter just a few days ago. First I joined The Secret Classroom and watched all the videos. This was really impressive, energizing and inspirating. I din't had a clue of who you are actually before I joined. Sorry about that, but I was quite new to this whole blogging thing. But I liked what I saw and decided to check out your blog. BTW: I really love The Secret Classroom. Now I'm actually watching some of the videos the third time..." - Mariam"Now that I know what was in there (cause I've watch every single minutes of it), I seriously would be ready to pay 25K for it. No kidding. Maybe it's because I'm a newbie, and everything in there was new to me, but still. It was at minimum an incredible short-cut to the info needed to start flying on your own on the internet. Avoiding many "not to do" and "not to go". So Joel, for that, thank you, and your a sick human being to give that away! Cause yeah!, 47$, it's a freaking gift!!!" - Mathieu Arseneau
"I only recently started getting your newsletter. we have been watching Secret Classroom - that's awesome stuff and great information. thanks for putting that together and making it available." - Angie
These are just some of the comments we are receiving related to this system.
I've shown you how to get started with your online business for less than $100. In fact, you've still got enough money left over to invest in The Secret Classroom.
Go check out the page at SecretClassroom.com and be sure to let me know what you think.
And of course, I invite and welcome your comments related to the content of this post. Helpful? Not so much? Want more? Let 'er rip!
Hey Joel, I have been following you since time immemorial, it seems like and I learned a lot of things from and for this, I thank you. Among those eight recommendations of yours, I did all seven of them but one and still I'm not doing well. And it's not from lack of effort because since I started, I work eight hours a day, every day. Neither is it from lack of money because I've already spent over $10,000.00 and I don't want to spend anymore.
Evelyn Guzman
http://www.homebusinesssteps.com (If you want to visit, just click but if it doesn't work, copy and paste it onto your browser.)
Hi Joel,
I wish you'd written this post a few years ago! :)
Kind regards,
-John.
Joel,
Very succinct; straight to the point. It won't happen overnight, but if someone follows straight through your advice and keeps working it, they have a good chance of creating something they can take pride in.
Good advice to 'keep it simple' and stick to a direct plan.
Michael
"The easiest ways to get started are with content sites and affiliate marketing."
Will you be writing about affiliate marketing next? I want to start affiliate marketing. Tks
Note: above name is in my mind right now but I want to register it if availabe and use it to do affiliate marketing of info products, money making and health related ebooks
Great post,
great info,
simply goes back to basic with everything
have already used some of your nmaterial,
but will be using some from this post
thank you
joel thanks, I will always learn from this place. because I am still a beginner. and also I hope you will spend your time to give a comment on my blog is joel. thanks
Comment to "6. Establish and maintain a social media presence."
I've been starting to suggest to people that this is what they should do first. If people can't bother to add a few tweets a day to twitter or a facebook posting once a week or participate in a couple of groups in linked-in, they're probably not going to be very hungry to post a bunch of content on their wordpress site either.
I think today someone just starting out really needs to just learn to "enjoy" being online before going in for the kill to actually make money online.
Hi Joel,
Just a comment on your note, I see that you are with hostgator really good hosting company by the way.
( Note: Due to the number of people interested in pursuing this model we are in the process of putting together a program that will provide hosting and a WordPress template fully installed. I'll let you know when it is ready to go.)
I invite your users and you too of course to try our hosting services with us at domainmarketstore.com, we offer free automated install of wordpress, e-commerce, picture galleries and many other applications with all our hosting plans which start at $7.99/month, and our domain name registration services start at $8.99/yr, and if you order your hosting account annually you can get a 10% discount using the following code at checkout 50CN10
Joel, are you sure its 99designs.net, i go to the dot com one (no matter if you dont approve this post - delete as will) :)
P.S
did you know ALL your mail goes directly to my spam mail box, always has done, no matter what i do, it keeps going in there.
Hey Joel,
Nice summary. I absolutely agree. In order to start a successfuly business, you have to learn the basics first! In my opinion, these are the hardest part of the whole thing. But once you have your feet on the solid ground, you can start climbing.
Thank's for mentioning my comment ;)
I have made writing about you joel, please check. give me your comments
Thank you for such great content. It is interesting that my business partner and I decided to create a website to teach some of the basics for people looking to start making money on the internet. We are also offering this step by step fundamentals site for FREE.
http://www.wealthchanging.com/payitforward
I look forward to linking people to this blog and also promote them to use Classroom Secret as one of the high quality affiliates people can promote with confidence.
Joel,
You bring up a lot of good points but if I may...
You can get Hostgator for much cheaper than 10% off. There are coupons codes all over the Internet offering one month of Hostgator shared hosting for 1 penny. Yup...just one penny. I think one such word code is "wordpress". One can Google for "Hostgator hosting coupon 1 penny" or some such and find some more.
Also...I would NEVER, EVER register a domain AND host at the same company. NEVER!
That's a big no, no in my book. While Hostgator is unlikely to go under since it's a large company you never know.
Since it doesn't hurt to register a domain at a true domain registrar and keep your domain registration and hosting separate...why not? It's a win and a safeguard. It's better to spread out such things.
Aside from the possibility of a hosting company going belly up (unlikely with Hostgator) if things go sour at one's hosting company and you want to move to another host, having a separate domain registration takes the move out of the hands of your hosting company. It's entirely under your control and simply a matter of changing the DNS servers.
Also...while I agree that one should have a nice site I think it is a good thing to point out that such a nice design does not necessarily involve including Flash, JavaScript, Videos, fancy menus and the like. I mean look at the simplicity of Google or Twitter. Very little if any fanciness there.
There really is no need to outsource site creation if one is inclined to spend a few days reading and learning on their own. If a person doesn't get all needlessly fancy on their web site, and from a ranking standpoint there is absolutely no need to do so, they can set their own site up even if by hand coding the HTML in a matter of days and save themselves the money of paying someone to do it for them.
Or they can go on craigslist and let the developers fall over each other to outbid each other in their effort to make some money in our tight economy (I know...as I am a web developer myself).
Lastly I would never recommend that anyone focus on getting social traffic for something like a site where Adsense is the main way of monetization. Social traffic does not traditionally convert well for Adsense clicks. Such traffic just wants to chat and talk and otherwise flirt around between social sites to...well...socialize. They are not necessarily looking for what a site is target toward respecting a particular keyword phrase. Search engine traffic on the other hand is.
So while there are plenty of ways to get traffic I think it's important to determine beforehand what kind of traffic one wants and whether persons coming through a certain venue (such as social web sites) will convert well.
Just some additional thoughts.
Thanks for sharing Joel.
Carlos
Great overview and I agree, but unless you can demonstrate an immediate return on investment in first month, few will continue longer than three months, especially if a mandatory auto ship is required. I found only one business which is under $100. to start, but more important, the average customer will save over $200. on what they would already be purchasing elsewhere for more, up to 50% more, so this really got my attention.
We have all heard we should only choose a consumable product or service to sell, and I agree, but how many MLM companies are even closely competitive with mainstream products in stores. Why else do the hype the income, because they would have no consumers if there were not the distributors own purchases, big problem and reason most fail, most cannot sell overpriced no name products.
What is the number one consumable product in the world? What does everyone want or need to do in this severe recession? They want to save money, and in this one and only company, everyone will save an avearge of $200. in first month and only need $69.00 to start their business. Nowhere in the industry have I seen a return on investment in first month in business and not even count any commissions?
Success to all,
That is a great breakdown of step by step for everyone.
thank you for taking the time.
My biggest question is what SEO techniques do you think it would be most valuable to start working on if considering an outsourcer. I have a couple review sites that helped me decide where to look for different sources so if you want to write a review of the companies you like that would be great because people go on the sites all the time to make choices
Web hosting reviews : http://www.top5webhostingreviews.com
Outsource Reviews: http://www.top5-websites-to-hire-a-freelancer.com
Autoresponder Reviews: http://www.top5autoresponderreviews.com
Your input will help others make the right choice.
Any one with SEO tips feel free to email us
Jeremy
http://www.top5autoresponderreviews.com
Top 5 Autoresponders and Reviews from real people
Thanks for that. I shall give it a try.
Hi Joel,
"...Helpful? Not so much? Want more? Let 'er rip!"
We have to say it's an exellent resume about starting an online business.
We wish we read it 3-5 years ago.
Thanks Joel.
Lena & Dima
Publishers, InternetBusinessBTS.com
Here's a couple suggestions for Step 5. If you have trouble coming up with ideas for blog posts, look for questions in your niche posted on Yahoo Answers and then give an original answer on your blog, using the question as your post title.
Before you post any article or blog entry enter your primary keywords in a keyword tool to find additional relevant keyword phrases for your copy. As you do the research it will also spawn ideas for more articles.
And finally Joel apparently neglected to include Step 9, which is his link for my 22 Day Internet Marketing Bootcamp..
http://www.adsense-secrets.com/22days.html
Thanks joel i always learn something new from every post!! Thank you for your help
This is a great post, very helpful for newbies.
Thanks Joel for this very valuable information. I have been giving my team these steps as well but you put it so clear and concisely. I will visit yor site often.
JacquelineMcGinnis.com
Thank you Joel, Yesterday I asked you to give free resources, an voila, today you did!! You are magic! I was suprised and excited that even though I am new to this internet game and just feeling my way around that I am at the tail of step #6 and the beginning of step #7! And I actually did it in the right order!
In an effort to continue step #6 Let me just say: "KidsThatRide.com is a valuable community resource to Buy/Sell/Trade used sports gear in your local community". (Is this a social network?)
Thanks again, Barbie@KidsThatRide.com
Keep up the great work, you inspired me today!
Barbie
Hey Joel,
I enjoy reading your blog posts and getting ideas and tips on earning money online. You can really start an online business for $100.00 and in some cases less than that. I started my online business for less than $50.00! I got plugged in and follow your e-mails and your blog posts. If anyone would like to review my online business, go to my FREE website and watch the 3 short videos under the Opportunity Tab. You can also give away a FREE website to Non-Profit Groups to help them raise funding for their organization and you earn income too. Go to: www.SeeTheFreeVideo.com
Hello Joel,
There's one problem with your suggestion. There's a significant amount of effort invested before you even know if the thing's going to make any money. Just the "social media presence" alone is a giant time sucker. What happens when you pour your heart and soul into steps 1-6 and then bomb on step 7 (monetization) because no one wants what you've got? (Voice of experience -- I've been there.)
How about finding a hungry crowd and then feeding them what they want?
For me the problem is time. I'd love to see a related article titled, "Starting an Online Business with Just an Hour a Day." :)
Best wishes,
Chuck
I'm proof that you can succeed online with little knowledge and little money. BUT! It does not happen overnight, it does not happen working an hour a day and it's not so easy that everyone can do it.
Learn SEO, learn about keywords, learn about title tags! If you create a 100 page website it should have 100 different title tags, 100 different keyword targets, 100 images with 100 different alt tags. You do that and I guarantee you'll make something.
A five page website that says homepage at the top of each page will fail, guaranteed!
I created a website that was getting good enough traffic and enough click thru's that I sold it for five figures. The subject matter? Dog/puppy name suggestions. I'm not a guru and I have not purchased a course in making money online. I researched, tested, researched, tested and then did that twenty more times.
Learn to adapt, change and evolve! If it's not working, you've got to try different things, different ideas and different tactics. And yes, you might waste 80 hours on a something that does not succeed but how will you ever know?
You can do it.
Great info for anyone wanting to get their online business up & running for practically nothing.
One thing to bear in mind though, is that while this business model has the potential to generate a very nice income, it won't happen overnight - what you get out of it will be dependent on what you put into it in terms of effort & commitment.
Thanks for mentionning me in your "shameless plug" of "The Secret Classroom" :-0 I've been an accessory!!
Seriously bud... Anytime ;-)
OK. First comment. It's not a nice one. But it's not directed to Joel, but to some of you replyers folks : STOP PLUGGING YOURSELF IN HERE! You make of this place look like a freaking salesletter... It's a blog! You leave comments about the content of the blog. A blog! Not a PLUG!
There's a way to do this, and your all wrong. If only you were suggesting something else than your own product. That'll have some credibility. But when I see your sending us to your own site or product, I totally lost interest.
Sorry but I had to get it out of my chest. It's SPAM guys. Nothing else.
Second thing : Everyone that keep asking for more about this or that, more specification, ..., just go "The Secret Classroom"! Seriously! Go read the salesletter of that product. You'll get everything you need. And more! JUST GO!!! NOW!!!!!! STOP LOSING TIME!!!!!!!
And thanks for sharing Joel. Useful as usual. Your the man.
Mathieu Arseneau
THANK YOU FOR THAT INFO. I HAVE WORK TO DO NOW. I WAS ALSO READING YOUR EBOOK THAT I DOWNLOADED AND HAVE READ UP TO THE REFERRALS PART AND I NOTICED THAT YOU SHOWED A SCREEN OF THE ADSENSE PAGE THAT I SHOULD GO TO TO GET REFERRALS. PROBLEM IS MY TABS ARE NOT THE SAME AS YOURS ON THE SCREEN. MINE ARE ADSENSE SET UP,GET ADS, MANAGE ADS, COLOR PALETTES ECT. MINE DOESNT SHOW PROGRAMS AT ALL. HELP
MAGGIE
Thanks Joel. This is valuable info even for us who already started an online business.
Dusan
Hi,
I am freelance programmer and build over 200 websites for online publishers. Using drupal and wordpress. In my view this post is simply birds eye view to start online business. I started online business with $0 dollars and making good income. I am following Joe since his first addition of Adsense secrects and earning lot of knowledge. This is my first ever post on any of his post.
Above idea is perfect.
Just Understand my idea below.
Count students in primary school --> than count students in high school -> than count college and university students. On all levels students strength will decrease. Did you think all primary students will become scientist. Or great computer programmers?
Its all depend on concentration and choosing right way to make decisions. Believe my 50% customers fail online because their are trying to find one night rich game. But its impossible in this cruel world. You need to take step, wrong or right, test everything. Only those find holes who love to spend their efforts.
I am living where no one have internet info but I am living much better than landlords because of internet.
Ateeq khan Sahiwal Pakistan.
I really enjoyed reading your ideas Joel and the responses. I've been using computers since 1986 and the Internet since not long after that.
Anyway I purchased two "blank" websites about a year ago and have been working full time, including many weekends, to get one off the ground. I don't have it monetized yet but will shortly. I only have about 30 unique visitors per day and need to get it to way higher then that.
I started my new site a few weeks back and am looking forward to being successful with that one. It is amazing how much I've learned.
Sometimes it is a bit overwhelming. I have not made anything from my site but I will continue on until I am successful. I am bound and determined to get there and hope all of those that are working at it are successful as well.
thanks joel for your recommendations, but i feel what most marketers are lacking as well as most programs is Traffic. If we don't know how to get targeted, consistant traffic we are dead in the water. this i believe is essential.
good
Thank you very much for your assistance. You are great. Not flattering, telling the truth.
sounds all real simple and easy :-)
simple and straight to the point.
definitely a good overview guide for the newbies..
though i would say many may tend to just read and not take action..coz they are afraid to even spend money on hosting and domain name.
Joel,
This post is oustanding ,
I am one of the person who has learned actualy every thing from you .
I should thank to you , i am one of your big fan ,if it happens to come to India , i am thinking of making an event , i want to take you to indian Audiance , through other media.
Joel, if you need any help with setting up WordPress blogs for people, I'm your woman. :)
"Note: Due to the number of people interested in pursuing this model we are in the process of putting together a program that will provide hosting and a WordPress template fully installed. I'll let you know when it is ready to go."