Best online business models for kick-starting your entrepreneurship career

In the age of digitisation, it is a lot easier to start a business with less capital and become an entrepreneur. After all, who would not like to become a boss and make enormous money? Indeed, the internet and various social media platforms have made the world a global village; it is projected that more than 27 million Americans will not prefer traditional 9-5 jobs; instead, they are interested in self-employment.

Many of these people might start online businesses. Observing the current situation, it seems like online business models have become a "sweet spot" for everyone. Wide access to the internet and the increasing penetration of smartphones are the two biggest causes of the boom behind the online business.

Moreover, millennials prioritise comfort these days over anything else, whether they want to buy clothes or smartphones or buy medicine or book a flight ticket. Their reliance on online services keeps increasing with time, and these attract entrepreneurs to jump on the bandwagon of online business.

So before discussing the best online business models, let's shed some light on why online business models are thriving globally.

Access the Entire World at Your Fingertips

Whether you are a novice to the business world or running a well-established business, moving your business online offers you exclusive benefits in terms of reach and revenue. Innovative online business models are changing the world and solving people's common issues. Here are examples.

• Airbnb - Biggest accommodation provider without owning a single room
• Uber- Biggest online taxi booking company without having a single car
• Zomato- Popular food delivery company without the establishment of a single restaurant

Indeed, these companies have changed the way we consume various online services. Moreover, it has also ignited individuals' mindsets to become an entrepreneur. Starting an online business in this internet world is easy; from creating a website on WordPress to social media platforms for free promotions to cost-effective technology solutions, there are endless options to choose from.

Moreover, cloud technology and white label software make it easier for entrepreneurs to automate their businesses quickly. We all know how amid the pandemic, the online taxi booking market was soaring as more and more commuters prefer private and safe modes of travel.

Brick-and-mortar transport business owners have taken advantage of this for survival and deployed the Eber Taxi solution. It allows people to book a cab online and keeps businesses afloat during this volatile market situation.

Whereas, there are some other added benefits online business models offer to entrepreneurs such as:

• Wide market
• Cost advantage
• Decent income
• Easy to operate
• Offers business scalability
• Low overhead cost and high-profit margin

Rather than these, there are endless benefits online business models offer to an entrepreneur. This article will provide you with five online business models that could work for you and bring a nice passive income.

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Profitable Online Business Models

Source: Oberlo

Ideally, there are no best online business models because it's all about the idea and preference of each person. But here, we will highlight some best online business models that are gaining immense popularity and promising futures.

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Online Coaching Business

Stepping into the online coaching business seems lucrative as students' affinity towards online coaching has increased after the pandemic. Earlier, the education sector was limited to schools and colleges, but now online teaching websites and apps have transformed the way we learn.

Today, the online coaching industry is considered the fastest sector globally because you can provide your services without any geolocation barrier. Further, digital communication tools such as Zoom and Google Forms have made it even easier for students to attend classes in other corners of the world.

Fortunately, modern technological solutions today allow almost anyone to start their own online coaching business, and that also comes with an extensive range of powerful opportunities.

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Doorstep Delivery Business

Is there any individual right now who has not used online delivery apps to order products and services? Perhaps, no, right? Comfort and convenience are the two major driving factors that have bolstered the online delivery market and market giants such as Instacart, UberEats, Zomato, Doordash, etc., leaving no cornerstones untouched when it comes to delivering the best user experience.

Statista has forecasted that the online food delivery market will soon reach $1500 billion by 2023. The pandemic has added fuel to this growth because people want to enjoy products at their doorsteps without compromising safety standards.

Whether you are running a restaurant business or having a "mom and pop store," getting started with an online delivery business offers you multiple benefits and ensures double-digit revenue in the long run.

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Online Service Model

Along with selling products online, you can sell services online too. This online business model is attracting freelancers because it offers them freedom and flexibility in work. For instance, if you are an application developer but aren't willing to attend the office regularly, list yourself on well-known freelancing sites such as Fiverr, Upwork, PeoplePerHour, etc.

This online business model ensures work flexibility. Most businesses that come under this category are associated with computer work such as graphic designing, web designing, application development, video editing, online consulting, writing, translations, etc.

From a startup point of view, selling an online service is the most promising and least expensive way to launch a business. However, you need to put effort into marketing and promotional activities to attract clients.

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Sell Someone Else's Product- Affiliate Marketing

Affiliate marketing has become popular since celebrities tie-up with different brands to promote particular products. But what does it stand for? Affiliate marketing is the simple process of earning an income in the form of commission by promoting and selling someone else's products or services.

 For example, if you are running a recipe blog and have a decent following and pageviews, you can collaborate with different novice entrepreneurs to promote their products. It is a win-win situation for both. Affiliates can make any money, and startups or individuals can get better exposure for their products.

There are two major ways most people do affiliate marketing:

1. You can promote products such as ebooks, membership sites, audio or video series, etc. This type of affiliate marketing is more popular as it allows you to earn a 50% commission. People choose this business model because it offers low-barriers entry.
2. And another way is to become Amazon partners. Amazon sells millions of products right now; you can choose a particular product and later promote it. It is pretty profitable.

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Dropshipping Business

Dropshipping is one of the best online business models where you can sell products online without paying upfront for physical inventory, renting a warehouse, or leasing a warehouse to store your products. Instead of spending significant upfront costs on a product and storing that product, you create an entire sales funnel so that the actual product can be shipped directly to the buyer.

Source: Grand View Research, Inc

In a dropshipping business, you can sell products to customers that you don't own. The customers place their order with you, and then you choose the right supplier who ships the product directly to customers.

It seems simple, right? There are several reasons why the dropshipping business model is popular these days:

• No experience needed
• Launch with minimal cost
• It can be managed across the globe
• Less risk

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Choose the Best Business Model To Thrive

Statista revealed that more than 2.14 billion people are expected to buy products and services online. More people are purchasing products online, so it is not hard to see why starting an online business would be a great step you can ever take.

Moreover, you are not limited to geographical boundaries. You can attract clients, and customers and expand your business anywhere because the sky's the limit.

Don't you dream of having a first-class co-working space or working on a sunny beach with family members? Take any destination because it won't matter at all to any online business model you choose.

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Article by Deep Moteria: DCP Website Designers