With the digitization of the world, online businesses are flourishing like never before and the trend is likely to continue in the coming decade. They are probably the best option for Entrepreneurs to start their business.
I say this because an online business can be started with a small investment and have lesser overheads than a traditional business. Also, with traditional business, your reach is limited to your city or your country depending on the size of your business and the money you are willing to rope in. However, with online business, you can target global audience with ease.
Is Online Business Profitable?
Online business can be profitable only if you have Good And Profitable Online Business Ideas that people would love. I’ve been researching about Online Businesses for quite some time. In this article, I am going to share with you Best Online Business Ideas based on my research. These ideas will greatly help you build your online business.
Of course, where there is an opportunity there is competition too. So make sure you do your own research about the business, including financial and competition analysis before jumping on the wagon.
Most Profitable Online Business Ideas In 2016
Below is the list of the Top Online Business Ideas for you to start in 2016.
Being a blogger myself, I cannot help but put blogging on the top of the chart. Not that I am being biased towards blogging, it certainly is one of the Best Online Business which you can start in 2016.
The reason blogging tops my list is that you can start blogging with a very small investment. As long as you are willing to put in some extra efforts to write quality articles, learn and implement SEO and do content marketing all by yourself, blogging will cost you almost nothing
I started Bloggerz Arena with just $12.18 which I used to buy Hosting and Domain with GoDaddy Special $1 Hosting Plan. After buying the host, I Installed WordPress on it, chose a free theme from WordPress Repository, installed Free Essential Plugins and started writing articles.
Apart from the hosting charges, my only investment was the time and energy to research about new topics and write fresh and quality articles that will benefit my readers.
With blogging, you can make money with any or all of the below 3 methods
- Displaying advertisements on the blog, usually through Google Adsense. You get paid per Ad impression (CPI) or per Ad Click (CPC)
- Affiliate Marketing wherein you promote a company’s product or services to your readers. You get paid by the company whenever someone buys’s a product or service using your Affiliate links.
- Paid reviews and paid posts.
While all of the above methods can give you good income, most beginners often end up choosing the wrong monetization method which is one of the Reasons Why Many Bloggers Fail To Make Money. So make sure to choose a monetization method that best suits your blogging niche
2. Start a YouTube Channel
YouTube is a great way to earn money if you are capable of making Videos that people would love to watch. The videos could be anything from cooking to pranks to satire. And if you can make videos that can go viral over the internet, you can earn much more than you ever imagined.
According to Forbes, the top YouTube Pewdipie earns a whopping $12 Million per year. This is serious money by any standards anywhere around the globe.
However, at YouTube, you can monetize only original videos created by you. Copyright protected videos will either be taken down or the original video maker would be able to monetize with it even if it was uploaded by you.
I won’t get into much details about YouTube Channel as I have already written detailed articles on How To Monetize YouTube Videos and also Top 20 YouTube Video Ideas that you can use to start your own YouTube channel.
3. Web Designing
Web designing is a very good Online Business to start in 2016. With more and more people switching to blogging and also almost every small business going online, web designing would be in demand at least for next few years.
With websites like Upwork and Freelancer.com, folks from the developed countries can easily hire web designing experts from developing countries as they get quality services at cheaper rates. On the other hand, freelancers in developing nations too get higher rates than they would get with offline projects.
Many people from developing countries start their web designing career as freelancers and after establishing themselves start their own firm by hiring manpower to work for them.
You May Also Like: Beginner’s Guide To Make Money At Upwork
4. Android App Development
Android phones right now have a monopoly over Smartphones market. Its nearest competitor, IOS, is not even close enough when you consider the size of the entire Android Smartphone market. And it seems very unlikely that Android is going to get a tough competition in the near future.
This is the reason, Small Online Businesses and shopping websites are slowly moving towards android as it gives them better conversion ratio. So Android app development would definitely be on the rise for the remainder of a decade or probably the next decade too.
5. Online Grocery Shop
Admit it, we all hate spending our weekends buying grocery for the coming week. This is when online grocery shops come in handy.
One can easily buy grocery from the comfort of their home and have the same delivered for free or for a nominal fee at their doorstep. This can save them hours of finding products and standing in long queues in a shopping mall.
For entrepreneurs too, it turns out to be a better option than conventional shops. Online shops do not require you to buy a shop in costly areas. You can always rent cheap storage space on the outskirts of the city where you can store the grocery products to be delivered across the city.
A website, a bit of marketing, 3-4 delivery boys and a store manager cum accountant is all you need to start your online grocery business. Your initial investment and overheads would be just a fraction of what it could be for setting up a tradition shop.
Also, unlike local shops where you can get customers from local areas, with an online shop, you can cater to customers in the entire city.
6. Online Tutoring
If you are teacher or someone who loves teaching, Online Tutoring can be the best option for you. For me, it’s one of the best Online Business Ideas because you have to pay nothing from your pocket to be an online Tutor. No classrooms needed, no marketing costs, nothing whatsoever.
There are many websites like Tutor.com where you can join and start teaching your favorite subject. Some websites may require you to have a relevant qualification and experience, whereas others do not have any such criteria as long as you know the subject well.
Alternately, if you have money and the required marketing skills, you can consider starting your own website from scratch. This can certainly give you higher returns, but the risk-reward ratio is slightly higher.
7. Sell Online Courses
Income from online teaching is not recurring. You get paid for the number of hours you teach. However, if you wish to have a source of recurring income, you can make online courses and sell them at websites like Udemy.
The courses could be anything that people may find useful. From Maths to English Speaking to Affiliate Marketing and Money Making, you can make online courses for anything.
Apart from Udemy, you can also promote the courses on your own blog or website. By this way, you can avoid paying commissions to a third party and can offer the courses at a cheaper price. However, you will have to work really hard to promote your courses to the masses.
8. Sell Your Products On Ecommerce Websites
If you can buy certain items at a rate cheaper than market price, you can make a good fortune by selling it on Ebay. It is very easy to register with eBay. You just have to create an account there and start selling your product after uploading pictures and details about your product along with the price.
At eBay, you can sell new, refurbished as well as used items. It also allows you to sell imported electronic items without any warranty.
However, Ebay is a slightly unorganized place to sell your stuff. Many people do not prefer selling on eBay due to the frauds involved with it. Same applies to buyers. If you are looking for a more organized way of selling your products, you can become a seller on Amazon.
But, unlike Ebay, Amazon is more particular about the quality of seller associated with it. So becoming a seller at Amazon is not as easy as it is on eBay. At Amazon, it is compulsory for you to have relevant local sales tax registration to become a seller.
9. Managing Social Media Accounts
Many celebrities, as well as business owners, often hire people to manage their Social Media Profiles which includes their Facebook Page, Twitter Profile, and Instagram account.
All you have to do is reply to all the tweets and Facebook messages/posts, forward any complaints from customers to relevant department of a company and post useful content provided by the account owner or by creating the same yourself. You will also be responsible for getting more Social Media Followers for the account you manage.
To get such jobs, either you need to be Social Media Expert or have a huge fan following yourself. This is because managing Social Media profiles is not as easy as it seems. A company’s/individual’s image is at stake. So they usually prefer hiring people who have a decent experience with the same.
10. Design And Sell Products At PoD Websites
If you have a creative mind and can design T-shirts, Wallets, mugs etc, PoD websites would be the way to go for you. The best thing about selling your design through PoD websites is that you do not need to invest anything.
PoD stands for Print On Demand. At PoD websites, you can design various products with an easy-to-use designing software of the website. The designs created by you will be displayed to the thousands of visitors that visit these websites.
Whenever someone buys your product, the website will print your design on a blank product and ship the same to the buyer. From the inventory of products to printing and shipping, everything will be taken care of by the website so that you can just concentrate on designing new products.
Bonus Online Business Idea
Below is a bonus Online Business Idea for my readers.
11. Domain Flipping
Domain Flipping is one of the few Online Business Ideas that can give you huge profits with negligible risk. This is not a new business. Many people are already earning a living out of this business.
In Domain Flipping, you will be buying popular Domain Names at regular price and then selling the same at a Premium price. You can buy a Domain Name from GoDaddy for just $1. Depending on the popularity of your domain, you can sell it for as high as $10,000.
Domain Flipping is more of a part-time business wherein you buy Domain only when you sense that it will fetch you a good amount of money. It’s all about buying the right domain at the right time.
Online Business is a great way to start your business if you are low of capital. However, it is essential that you have a good Profitable Online Business Idea to start your business.
I have tried my best to cover up the Best Online Business Ideas. In case if I come across any good Business Ideas, I will surely update this article to include it.
Do you have any Online Business Idea that I failed to include here? If yes, then do let me know through the comments form below and I will make sure to include the same in the article with due credits.