Wouldn’t it be fun to work in your PJs and earn money online? “Fun” doesn’t even begin to cover it. In fact, in this day and age, working from home is no longer a luxury. For many of us, it’s an absolute necessity. Whether you need to or simply want to, making your home into your office comes with a lot of benefits.
You save time and money on getting to and from work. You’re able to set your own hours. You get to avoid your annoying coworkers. Lastly, you don’t have to look into hiring a babysitter if you have kids. Of course, it’s not a vacation — you have to be diligent, dedicated, and responsible in order to build a career at home. However, if you’re willing to go the extra mile, you just might land yourself the best job ever.
One of the best ways to work from home is to build your own online business. When you work for yourself, everything you do goes towards improving the livelihood of you and your family. Starting a business online, while tricky at first, may also end up generating a lot of passive income down the road.
In the era of the internet, when more and more businesses have fully moved online, the ability to navigate profitable niches is going to be the key to make it or break it for you. With hundreds of thousands of people also looking to make an income from home, it’s more important than ever to have a few great online business ideas.
We have researched the web far and wide to find the answer to the question: “how to succeed when starting an online business?” and we’re pleased to report we’ve found the answers. Read on to learn all about the best online business ideas in 2020.
What are the top 10 online businesses?
Before we discuss at length which online business ideas can make money, let’s take a look at the job market as a whole. Which of those businesses are the most profitable? Which are the most common?
To begin with, let us talk about freelancers vs business owners. Are they one and the same? Not necessarily, but they can be.
When you look into the top 10 online businesses, you will find that some of them rely on a single person’s work, such as becoming a virtual assistant. This can be a single-person business where you outsource your skills to clients all over the world. This can also be a service where you manage a team of assistants that then go on to help others.
There are many ways to run a small business, but the point is that you want it to grow over time and get you to a comfortable position in life in terms of money and planning for the future.
Some of the most popular online ventures right now include:
- Affiliate marketing
- Search engine optimization (SEO)
- Selling online courses
- Online stores
- Virtual assistant work
- Graphic design
- Social media management
- Running informational/fun websites
The above fields may not be the ones that bring in the most money, but they are amongst the most popular in search results. That is not to say that there is no money to be found in these businesses. In fact, as they are in high demand, everyone has a chance to make it in one of these fields.
Some of them are highly competitive, but thanks to the fact that they are also highly sought after, they’re still decent choices if you’re looking for new online business ideas.
What is the best online business to start in 2020?
Now that we’ve talked about some of the most popular online businesses, let’s take a closer look at five of them. These are the best businesses to start in 2020 to generate passive income, interest people, and make it big while working from home.
There is a reason why we mentioned affiliate marketing right at the very top of our list in the previous section. This is a field where some people make money quite easily. After an initial investment of time and work, the most successful affiliate marketers earn up to 7 FIGURES in monthly commission!
Let’s not kid ourselves — you’re not going to get started today and have earned millions by the end of the month. But if you keep at it and follow a solid business idea, you will undoubtedly see results soon enough and money will come your way.
What exactly is affiliate marketing?
In this form of online marketing, you make a commission based on selling other people’s products. This can be done in many different ways, and most marketers do not limit themselves to just one.
Some popular forms of affiliate marketing include:
- Niche websites
- YouTube videos
- Social media advertising
- A mix of the above
Most of the time, this form of marketing includes running a website dedicated to a specific niche and relying on search engines to direct traffic your way. Creating content for this website and linking to sites like Amazon may generate sales. Once someone buys a product through your affiliate link, you receive a small part of the price.
As you can imagine, this business only becomes effective over time. When you only have one sale per week, you won’t be able to support yourself. However, the more visitors you manage to get to visit your website, the more sales you will be driving.
Running a blog
This form of business can be tied with the above, but it doesn’t have to be. Many people run successful blogs or websites without taking advantage of affiliate marketing. Instead, they generate passive income by selling ad space on their websites or promoting their own products. Businesses like this also make great use of social media to stay in touch with their reader base.
Some popular types of blogs cover topics within the following fields:
- Healthy living
- Home improvement
With such a diverse range of subjects, the sky is the limit when it comes to running your own website. Once you produce some content for your blog, it begins generating income without much extra work on your end. However, you need to update your blog regularly and build a relationship with your audience in order to get them to keep visiting the website. In this business model, you gain money for every person that views the site without the use of an ad-blocker type of software.
In general, as you get started on creating your first website, make sure to pick a subject you’re familiar with. If you talk about something you’re not very good at, your readers may leave in search of greener pastures. As long as you try to be informative and/or entertaining and follow SEO (search engine optimization) practices, you will start seeing an increase in your website traffic.
This may sound easy, and it is. Pretty much anyone can make a website with some of the freely available tools found online. However, there is one caveat: it’s important to have a good idea, to begin with.
As the internet is teeming with information, picking a very generalized niche to start with is going to set you up for failure. As an example, there are millions of websites that talk about cleaning as a whole, but what if there was a smaller niche within that field that you could talk about?
Your future website should be a direct response to what people search for on the internet. Try to find a smaller niche for yourself to attract readers and be patient. It takes time to build up to earn money through blogging, but it’s entirely possible.
Running an online eCommerce store
With services like Shopify growing in popularity, pretty much anyone can run an online store all from the comfort of their home. Starting an online shop isn’t hard at all and there are many ways to run an eCommerce business.
Like with blogs, you will need to come up with a niche for yourself. You can, of course, sell something that’s really popular — like video games or peripherals. But before you start, ask yourself: how big is the competition going to be? How many massive shops will you be competing against? Remember that these businesses often source products at cheaper rates, so beating their prices will be difficult for a small business.
Once you have a niche down, it’s good to combine your online store with a complimentary website or blog. This way, you will be able to drive sales through helpful content that attracts readers to both your website and your store.
There are two main ways to run an eCommerce store. You can either do it by sourcing the items yourself and keeping them in some sort of a warehouse (for most business owners this will just be their own garage or basement, to begin with). Alternatively, you can look into a subset of eCommerce which is called dropshipping.
Running a drop shop is an innovative business idea that relies on you being the middleman between the client and the source of the product. Dropshippers source products from other stores based on demand.
The items are sent directly to the client, while the one doing the dropshipping charges a commission for the service. This means that you pay another store for the product and get a little extra for your time.
Creating online courses
You must have heard about online courses. They are available in lots of different places. Websites like Udemy allow everyone to create their own course which is later on sold to the users at a set price. If you have a specific type of skill like programming, this could be the business idea that allows you to make money from home.
The benefit of this type of business is that you likely won’t have to do the managing of it all by yourself. Instead, your job will be the creation of helpful content that other people will learn from. The money comes from your course being sold to more and more people, so the better you are, the more you will earn.
Course creators do a variety of different things in order to market and improve their services. Your first step in this business is going to be, you guessed it, finding a niche that you’re good at.
Some of the best online courses cover topics such as:
- UX/UI design
- Graphic design
- Software (Windows, Photoshop, Excel, Linux, etc.)
- Data science
- Digital marketing
- Social media marketing (Facebook, Instagram, Twitter, etc.)
- Stock trading
- Arts (music, instruments, painting, etc.)
As you can see, there are countless different fields that you could find your way around online. An online course is a great way to help people while also earning considerable amounts of money. Course creation does require a fair amount of work, though.
If you want to make this a profitable online business, you will need to regularly update and create new content. You will also try to source the email address of every person that buys your course and contact them via a newsletter. This business relies heavily on staying in touch and keeping people interested in your future content.
While not a business per se, freelancing is one of the top ways to earn money online. You can work as an independent contractor, using your skills to help clients all over the world. If you find a good place for you to showcase your abilities, you will be able to earn a living from the comfort of your own home.
Freelancers are in high demand these days, so most people will be able to build an online business out of this if they are persistent. Freelancing may lack the job security that going into business online offers, but it also gives greater flexibility. You can easily start to freelance and maintain a day job at the same time.
Freelancing in 2020 is mostly centered around:
- Graphics, UX/UI design
- Content writing
- Marketing, SEO
- Virtual assistant work
- Social media management
- Data entry
- Customer service
- Video editing for a YouTube channel or other types of media
If you possess any of the above skills, all that remains is for you to advertise your services on various websites. Alternatively, you can make a list of companies you’d like to work with and send them a pitch. They might use your services if you impress them.
The key to being a successful freelancer is to not give up and continuously work to improve your skills. It’s also important to build connections.
Building your own online business is a way to escape the mundane 9-to-5 job that so many people wish to get away from. It’s also a way to work from home and make a decent living. And if you’re persistent and skilled, you may make a fortune out of your business.
Great ideas blow up every single day — yours might be next. Don’t wait and put your skills to good use by starting an online business today.