How Much Does It Cost To Start An Online Business?

Hello, Income Insider. In today’s issue we'll tell you how much money you need to start your online business. You'll also find an inspiring success story about Eben Pagan, who built a $20 million per year online empire from a simple dating advice newsletter. Plus, we'll break down affiliate marketing in the simplest terms possible - so simple, even a 5-year-old could understand it!

Enjoy today's issue and shh, stay on the inside!

Q&A

Q: Hi Kumaran, I'm excited about starting an online business, but I'm worried about the startup costs. How much money do I actually need to get started? I've heard some people say you need thousands of dollars, but that's not really in my budget right now. Can you give me a realistic idea of what I'm looking at financially?

A: I’ve got good news - starting an online business is actually much cheaper than you might think. You can get up and running with just a few hundred dollars, which is far less than most people expect.

The main costs you'll encounter are for essential tools like your website domain name, sales funnel building software, and email newsletter service. These are the backbone of most successful online businesses, and thankfully, they're quite affordable.

To put this in perspective, compare it to other types of businesses. Many offline businesses require significant loans or investors to cover costs like rent, inventory, and staff. Even some online businesses, like e-commerce stores, can require substantial upfront investment in inventory. The informational business model we've discussed is much more cost-effective.

Here's another tip to keep costs low when you're just starting out: take advantage of free trials. Many software services offer 14 or 30-day free trials, allowing you to test them out before committing. This can help you get a feel for what works best for your business without any upfront cost.

Remember, the key is to start small and reinvest your earnings as you grow. You don't need to have every bell and whistle from day one. Focus on the essentials, create value for your audience, and scale up as your business starts generating revenue. With this approach, you can launch your online business without breaking the bank!

Secrets To Their Success

Eben Pagan, better known by his pen name "David DeAngelo," is a highly successful entrepreneur who built his online information company, Double Your Dating, into a $20 million per year online business.

Pagan started Double Your Dating with a simple email newsletter offering dating advice for men. The cornerstone of Pagan's product line was his ebook, also titled "Double Your Dating." This digital product distilled his core teachings and became a bestseller in the online dating advice niche.

Building on the popularity of his ebook, Pagan developed a range of more advanced products, included "Interviews with Dating Gurus," a monthly series where Pagan interviewed various experts in dating and relationships, and "Advanced Dating Techniques," a comprehensive video program that delved deeper into the concepts introduced in his ebook.

Eben has since moved on from the dating advice niche (since he’s now a husband and father!) but the reason we wanted to profile him is because his approach still works today. His success in building a multimillion-dollar business around information products paved the way for countless others in the online education and coaching space, and he now teaches business advice.

Today’s Takeaway

Focus on building your email newsletter list because that's where the real money is. It lets you build multiple streams of income online.

Think of your email list as a group of friends who want to hear what you have to say. Unlike social media, where your posts might get lost, emails go straight to people's inboxes. With an email list, you can tell people about products you like (and earn money when they buy), sell your own stuff like ebooks or courses, offer your help as an expert, or even get paid to mention other businesses.

Every email you send is a chance to help your subscribers and possibly make some money. The best part? Email works better for making sales than most other ways of reaching people. By growing your list and sending helpful emails, you're setting up your online business to last and grow over time, no matter what you decide to sell in the future.

Get Inspired

Explain It To Me Like I’m 5

Today: “Affiliate Marketing”

Affiliate marketing is like being a matchmaker for products and customers. Imagine you have a friend who makes amazing cookies. You tell people about these cookies because you think they're great. When someone buys the cookies because of your recommendation, your friend gives you a small reward as a thank you.

That's basically how affiliate marketing works online. You find a product you like and get a special link from the company that makes the product. You then share that link with other people - maybe on your blog, YouTube channel, or social media. If someone clicks your link and buys the product, you earn a commission.

You're not selling anything directly. You're just connecting people with products you think they'll like, and getting a reward when they make a purchase. It's a way to earn money by recommending products or services to others, without having to create, store, or ship anything yourself. The company handles all the sales and delivery - you just focus on spreading the word.

We hope you enjoyed today’s issue and see you next time.

Stay on the inside track,

Kumaran Ganesh
Founder, Income Insider