Hey, Empire Builders! In this article, we’re going to talk about the three best online businesses for beginners to start in 2020. I wanted to go over the top online businesses that anyone can start without a huge investment or any experience. While some online businesses for beginners require a massive budget with substantial overhead costs, some need a much smaller investment. Those are the ones we’ll be talking about today.
1. Ecommerce and Dropshipping
This is my favorite option. It’s the best business for beginners because of the low risk involved. If you don’t know, ecommerce and dropshipping are terms for selling products online that your supplier sends to the customer, in exchange for a cut of the profits. It’s that simple. Dropshipping allows you to cut the usual costs for inventory and shipping.
For example, with my dropshipping business, when someone buys something from my website, the supplier is notified and they ship it out. I never even see the product in person. It’s just my job to sell it, the supplier does the rest, and I make a cut of every sale.
It costs as little as $250-$500 for ads to get started. That may seem like a lot, but it really isn’t considering that it’s your cost for starting your own business and gaining financial freedom. This is pretty much the lowest start-up cost you’ll find. It’s going to take an hour or two a day to learn enough to be successful. But the more you invest, the more you get out.
How to Start an Ecommerce or Dropshipping Business
You need to pick a product and make sure it’s something people want. Google “list of hobbies,” and nearly everything on that list is a good choice. The best advice I can give you is to choose something you genuinely enjoy and find interesting. That’s the difference between waking up every day excited to get to work and being stuck in a daily grind.
Once you pick a hobby — gardening, for example — go to Amazon and search it. You want to sell what people are already buying. Remember KISS: Keep It Stupid Simple. When you look through the results, there are a number of physical and digital products. That’s how you know it’s a good niche with multiple options.
Pay attention to the “frequently bought together” section, which tells you what else you can sell and each product’s rank. If the ranking is under 20,000, then that tells you there’s a demand for it. Going to AliExpress will then show you how many units are sold, and you can find a supplier with a cheap enough per-unit cost to make you a good profit. While dropshipping is one of the best online businesses for beginners, it’s not just for beginners. As you learn, you can scale up your business and create multiple businesses.
2. Selling Digital Products
This includes courses, PDFs, and other digital media. The profit margins are high because it doesn’t cost money to make, so it’s pretty much 100% profit. While it doesn’t take a large monetary investment, you have to invest a lot of time into it. You must position yourself as an expert that people trust so they’ll want to learn from you, and that can be tricky if you’re just starting out on online businesses for beginners.
If you want to sell high-ticket digital products ($1,000+), you’ll need to create free content every day to show your expertise, entice them to learn more, and build that trust. If you’re selling cheaper digital products ($5-$50), then all you need to do is add value by solving a problem.
As far as the budget for this, if you’re working on the lower end of the price range, you can advertise for free. If you’re going to use ads, though, I always recommend a $250-$500 minimum.
How to Start a Business Selling Digital Products
Again, take advantage of Amazon. When you type in the example niche — gardening — you’ll see many books available. You can also sort by category for books if you don’t see any pop up immediately. You can do the same for video content.
This provides a clear picture of what information products are being purchased and what problems they try to solve. First, decide on your price point, which should generally be $5-$50 or $1k. This will help you determine what kind of informational products to look into creating. This can range between a short how-to guide and an in-depth video course.
Udemy will give you a better idea of in-demand courses. Type in gardening again; there’s a lot to choose from. The course description will tell you what people are learning. You can sell courses here without spending ad money, too.
If you want to sell text-based information products, you can write your own or go to The PLR Store to buy one. You can buy the rights to content and sell it, make improvements, whatever you want. If you type in gardening, you’ll find a pack of articles on low maintenance gardening, something you can sell for $10+ while only paying $5.99. Dress it up with images and fonts to make it look worth the money. Then you can sell it on ClickBank without paying to advertise.
3. Affiliate Marketing
One of the most popular online businesses for beginners is selling products for someone else and making a commission for every sale — that’s affiliate marketing. This is especially easy if you already have an audience from another business or website where you can promote products. Then this is a no-cost way of making money/ If you only promote products with a good reputation that work well and add value, then it’s also risk-free. If, however, you use your business platform to promote a product to your audience that’s of poor quality or doesn’t work, then you’ll lose trust and business. So, make sure you’ve tried it and really want to recommend it.
How to Start an Affiliate Marketing Business
ClickBank can help with this too. Use their navigation bar to find products you’d want to sell. Let’s use gardening again. Once you find one you want to sell, click promote and you’ll get a custom affiliate link. It’s that simple. Don’t forget to buy and test the product first before endorsing it. Then all you have to do is drive traffic to their site, and when someone buys something, you earn a commission.
The great thing about these online businesses for beginners is that they work well together, too. Maximize your profits by integrating them into one business model. If you want to learn more and make more, sign up for my masterclass, where I’ll teach you how I made a full-time income online with a 5-page funnel — all without touching a product, building a site, or investing in ads. I’ll even throw in the $100k funnel template FREE just for showing up. Get ready to build your empire!