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Making Real Money Online – Online Vs Offline Business Compared

January 22, 2008 by Amit Bhawani

I am always contacted for make money online tips or some information on the best pay per click programs or the best affiliate programs. All of you guys want to make some quick bucks but dont really have a idea how hard it is to make money.

Before you plan to make money online you should first compare a Offline Business with a Online Business. Normally many bloggers just buy a domain name, search for a free webhosting or cheap web hosting companies and install a wordpress blog , add adsense with a couple welcome articles and expecting huge returns.

Now lets talk if you were running a Offline business and were going to start a small consultancy firm or lets say a small shop/store where you will need the following :

Virtual Real Estate Online Business

Offline Business Vs Online Business

  • Shop – A Place to perform on your business : .Com Domain Name – 2000$ Minimum Budget Required
    Normally the cost to purchase a shop or lease a shop costs a lot and ranges from 2000$ incase of leasing security deposit advance or else pay upto 10000$-20000$ minimum for a small/tiny shop. In case of online business a domain name costs you just 10$/year for a new domain registration or costs a lot based on purchases of premium domain names. Now you need to compare these both and plan how much you can invest for a domain name and if you are serious you should have a minimum budget of 2000$.
  • Interior Decorator Shop
    Virtual Home Shop

  • Shop Decoration Interiors : Website Design – 2000$ Minimum Budget Required
    For making your store look good you need to get interior decorators design the complete store with glass and other cool stuff, good furniture and professional management team. In case of Online Business you need professional web designers and programmers to develop custom scripts or customise the available open source scripts.
  • Office Launch Promotion Ribbon

  • Launch Promotion : Press Release Promotions – 1000$ Minimum Budget Required
    When the time comes to open you new store you need to invite many people and add up some freebies or discounts for initial sales and this can cost a handsome amount of money because quality is very important during this stage. In case of Online Business you will need a minimum promotion like press releases in websites like prweb.com, initial PPC advertising, banner advertising, paid reviews in heavy traffic websites to gain traffic and getting exposed.
  • Shop Store Products

  • Store Products : Website Content – 5000$ Minimum Budget Required
    When you start a store you obviously need a minimum amount of products which will be sold and you need to have around a minimum of 5000$ worth stuff in your store or godown to handle the initial customers and later increase the stock based on increasing customers and their demand. Similarly when you start a new website you need a minimum amount of content or stuff related to your website for making your first time visitors happy. If you are getting content in terms of articles then for 5000$ you cannot expect more than 500 articles if they are written by professional article writers and this is the minimum amount of content which would be enough for a visitor to bookmark/subscribe to your website.

Conclusion on Real Money Online : Till now if you sum up the current expenses for opening a small store or a website it comes to around 10000$ and if we talk about the sales and profits, you can guess that if you sell 5000$ worth of stock in your store you can normally make around 10% net profit which comes to 500$ and on the other hand a similar online business with 500 quality articles would keep paying you 500$ Online Business Income Money every month till the website is live, which clearly shows that Online business pays off every month what offline business pays onetime. Other expenses in online business can be Search Engine Optimization payment to get your website rank better and stop advertising via ppc in order to gain free traffic and get your domain more authority in the search engines in long run.

You should have already understood by now the differences between Online and Offline business , now just try to implement in the above mentioned figures and you can obviously make money online very easily. If you invest 50$ on a website you cannot expect more than 100-200$/month , but if you invest seriously in a planned way you can onviously become a rich jerk and have a serious business which can later be sold for 15-20x times the monthly revenue.

I hope you guys would have got a good experiance now and would get started into making some serious money online with some serious investment and expecting excellent results.

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About

My name is Amit Bhawani and here I like to share my internet/tech experience with my online readers. You can follow me on Twitter, Facebook & Instagram at @AmitBhawani I am also the Editor-in-Chief of PhoneRadar & Master Gadgets

About Amit Bhawani

My name is Amit Bhawani and here I like to share my internet/tech experience with my online readers. You can follow me on Twitter, Facebook & Instagram at @AmitBhawani

Comments

  1. Amit Nyamtabad says

    January 22, 2008 at 6:28 pm

    Hi Amit, that is a nice read.
    I think that is the reason smart guys market online. πŸ™‚
    Good comparisons made.

  2. Kanav says

    January 22, 2008 at 6:29 pm

    Hey Amit ,

    Nice comparision , Could you put some more light on how can we optimize our 500 article site to get even better ROI.

    Heads up for this blog post

    Cheers

  3. Arpit says

    January 22, 2008 at 6:31 pm

    People think that its an easy job to earn money online. But its not.
    You need a hell lot of skills, knowledge, patience and hardwork to create a stable online revenue stream.

  4. Madhu says

    January 22, 2008 at 6:34 pm

    hi amit, good post, as i personally experience the offline business, i think this online business is very good if made a serious attempt rather than the offline business. i think i too also continue with the same rather than other jobs.

  5. Ankur Gupta says

    January 22, 2008 at 6:38 pm

    Nice post amit.
    I also keep wondering on this topic sometimes πŸ™‚

  6. Abhishek says

    January 22, 2008 at 6:39 pm

    Excellent comparison made Online Vs Offline.. Almost all topics u covered which are essential and relevantly linked to both side of works… Nice work It’ll help me hopefully.. πŸ˜€

  7. Sharat Jaswal says

    January 22, 2008 at 6:40 pm

    Honestly, i earn more from offline business. But i think i agree to most of your post. Online business is not bad at all. Hard work pays sooner and pretty well in online business.
    Good article!

  8. Selvam says

    January 22, 2008 at 6:55 pm

    Thanks for offering Great info. Keep it up amit… πŸ™‚

  9. Abdul Vasi says

    January 22, 2008 at 7:06 pm

    Excellent Review. Agree with most part of the review though i believe certain online business need support from offline facility to sustain.

  10. amitbhawani says

    January 22, 2008 at 7:12 pm

    You are right Abdul Vasi, it again depends on the business you are into, but the ones which need support from offline facility will also need a lot more investment which can be around 10x times more than the above budgeted expenses. Online business if taken seriously would be the best of all.

  11. Aditya Kumar Singh says

    January 23, 2008 at 11:53 am

    You need skills to start a online business. Those skills can’t be acquired in a school / college or from some book. You need to learn it by self doing. Sooooooo , i guess the first few years is wasted in learning the right ways and techniques. I still feel what i was doing from past few years was a joke. You need to waste some time learning.

  12. Abhilash Pillai says

    January 23, 2008 at 12:30 pm

    $10000 pulled me to this page, lol. Nice topic however, a person who can open an online business is always capable of doing an offline business. But all people who can do an offline business cannot do online business. lol

    I guess everybody knows this. Online business needs high technical and marketing skills and also updates of frequent developments.

    Naturally one who is capable of online business should concentrate on it and can have a offline business for support as a contingency measure. (see what happened to stock markets, india :)) )

  13. John says

    January 23, 2008 at 3:07 pm

    Great post Amit. I believe online business has more security than off-line business. There are so many untoward incidents that might destroy your off-line business like the recent fire at Burrabazar in Kolkata which has rendered jobless to 3000 shop-owners and many more who worked in them.
    It is not all if they get insurance money because their network is destroyed.
    On the otherhand, if some one puts in the same amount of capital and efforts online, returns are not bad – but they won’t get destroyed either.

  14. Narinder singh says

    April 26, 2008 at 5:23 am

    plz give me details of your business

  15. Narinder singh says

    April 26, 2008 at 5:37 am

    plz give me details step by step to start business

  16. Roshan says

    May 10, 2009 at 8:34 am

    Thanks for the great info. But I don’t have the required budget. Can you tell me some low budget ways?

  17. ways to earn extra money says

    October 15, 2009 at 8:39 am

    It is true indeed that there are countless ways to earn extra money. One is through the use of internet. If a person is comfortable with new technologies such as the internet, then he might be a perfect candidate for a freelancing job. In this way, you can make extra money online. Just unleash the secrets of squeezing the potential of the internet and you can for sure gain a huge income from it. Do you have any other useful online money-making insights?

  18. anil kumar pathak says

    July 20, 2010 at 6:20 pm

    You need skills to start a online business. Those skills can’t be acquired in a school / college or from some book. You need to learn it by self doing. Sooooooo , please sir to send online data entry work . urgently quick fast.

  19. phani says

    October 12, 2013 at 4:33 pm

    hello sir, i want some help from you, can u plz suggest me to which advertizing company i should apply for add??

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