Falcon Marketing

The 27 best online business ideas in 2021

If you are thinking of starting an online business , this is the right time. Sales revenue from online businesses is forecast to reach $ 6.5 trillion in 2022.

This shows that the number of people who prefer to buy online is constantly increasing. It is an excellent opportunity to open more eCommerce businesses .

However, success will depend on your idea. And if you don't have one yet, don't worry. In this article, we will list the best online business ideas for you to consider.

Why start an online business?

Here are some of the reasons why people decide to start businesses online:

• The popularity of buying and selling on the Internet . Although online shopping has been around for years, the pandemic has made it a more common practice.

• Flexibility of schedules and location . The owner of an online business can work from anywhere and at any time. Thus, home businesses allow you to have more time for your personal life.

• Low setup costs. Unlike a physical business, it is not necessary to rent a premises to start an online business. Therefore, fixed costs are usually much lower.

• Wide audience reach . Online business owners don't have to limit themselves to the demands of the local market to be successful. They can sell their product or service to customers around the world.

• Passive income channels . Monetization methods like affiliate marketing and online ads make it possible to make money with minimal effort.

Keep in mind that, despite these advantages, creating an online business and being successful requires a lot of effort and time.

To increase your chances of success, consider choosing an idea that suits your skills and interests. Having some prior knowledge of the industry can make running the business easier.

With this in mind, here are some of the best online business ideas to start with:

1. Become a freelancer

• Estimated earnings : The median rate for freelancers is $ 21 / hour, although the figure may vary by industry and location.

• Requirements : Skills and experience in a specific field.

With the rise of the gig economy, many people see freelance work as a viable alternative to the 9-5 routine. In fact, 75% of freelancers reported that their income increased after making this career change.

Those with some prior work experience can take advantage of their knowledge and the network they have created to establish a professional brand. Any type of work will do, although web development, graphic design and writing are the most in demand.

As the freelance market has become more competitive, you have to build a unique service to differentiate yourself. One way to do this is to define your ideal customers, as does freelance writer Elise Dopson , who focuses on B2B and SaaS businesses.

Freelancers often create a website to promote their services online. We also recommend registering with sites like Fiverr and creating a LinkedIn profile to increase your visibility.

2. Start a blog

• Estimated income : $ 100 to $ 10,000 per month, depending on blog running costs and monetization channels.

• Requirements : Writing skills, content marketing and SEO.

Creating a blog is one of the most profitable online business ideas on this list. Many entrepreneurs with six-figure incomes, like Pat Flynn , started out by blogging about their skills and knowledge for a small audience.

But creating a successful blog is about more than just sharing your ideas on a topic. When starting, remember to focus on the following elements:

• Quality of content . The more valuable the information you provide your audience, the more likely they will become loyal readers. Not to mention that the blog will have a better chance of ranking better in search engines.

• Traffic volume . Bloggers with a high volume of visitors are often more likely to attract potential business partners and sell their own products or services.

• Monetization options . Diversifying the sources of income for your blog will make it easier to get the maximum benefits. Standard methods include affiliate marketing , Google ads, and sponsored content.

3. Self-publish an eBook

• Estimated income : Depending on the platform, you can earn between 35% and 75% of the copyright for each eBook sold. Keep in mind that production costs for the book can range from $ 100 to $ 6,000 .

• Requirements : Creative writing skills

Thanks to the Internet, becoming an author no longer requires submitting a manuscript to a publisher. It is now possible to sell e-books using a personal website or self-publishing sites, such as Amazon KDP .

If you are a blogger, eBooks are ideal for bringing together the content you already have into a comprehensive guide. That's what Elna Cain does with her long articles. To add more value to the product, insert some printable worksheets.

However, self-publishing sites offer the advantage of a previously acquired audience, although you will not be able to claim the full proceeds of the eBook. This is why many writers create a site as an additional monetization channel to increase their income.

4. Launch an online store

• Estimated income : between $ 1,000 and $ 100,000 per year , depending on the size of the market, as well as the eCommerce store and operating expenses.

• Requirements : knowledge of business management, digital marketing and site maintenance.

Creating an online store is one of the most profitable online business ideas that you can try. With the right strategy, you can be the next person to launch a multi-million dollar brand.

The products and services that can be offered are endless. To have sales success assured, you can check what are the trends of the moment.

Or, try taking advantage of a micro-niche . It may have little traffic at first, but it also means low competition and considerable growth potential.

An excellent example of a successful micro-niche is Neuro , a caffeinated gum and peppermint company. The founders created the product as a healthier alternative to energy drinks and coffee.

In addition to displaying the products on your eCommerce site , you can sell on social networks such as Facebook or Instagram. Diversifying your sales channels can broaden your audience reach, which can lead to increased revenue.

5. Start a Dropshipping business

• Estimated income : $ 200 to $ 3,000 per month . Revenues may vary depending on the online store and the size of the market.

• Requirements : business management, digital marketing and site maintenance skills.

The Dropshipping is one of the best business ideas online if you want to make money from home . In this business model, you partner with a vendor to sell their products on your platform. The vendor is responsible for storing and shipping the items, while the vendor focuses on marketing the products to customers.

By not having to deal with inventory management, the start-up capital is usually much less. The average cost of creating a dropshipping site is $ 150 , which includes a web host, a domain name, and registration with a supplier directory, such as AliDropship .

Of course, keep in mind that it will not be possible to see the quality of the product or control the shipping process in real time. To avoid any problems, we recommend that you research suppliers first before working with them.

6. Resell used items

• Estimated income : $ 50 to $ 5,000 per month . The cost of the products can range from $ 0 to $ 1,000 per item .

• Requirements : business administration and negotiation skills.

If you are looking for an affordable online business idea, consider reselling second-hand items to generate profits:

• Look for good quality, unused items around your home.

• Shop for free or cheap secondhand items at thrift stores, flea markets, or websites like Craigslist or Facebook Marketplace.

Once you have the items to sell, calculate their market value to determine a fair price. One way to do this is to research at what price similar products of similar quality are sold.

In some cases, the item may need to be repaired or recycled to increase its value. So having some basic crafting skills can help, but it is not a requirement.

For more inspiration from small businesses turned big, visit Flea Market Flipper . This site offers a comprehensive course (in English) on how to make product sales a full-time job.

7. Sell artisan products

• Estimated Income : According to Recruiter , the median income within this industry is more than $ 30,000 a year .

• Requirements : craft or craft skills.

The Internet has made it easy for artisans to turn their work into a profitable business.

Unlike merchants who partner with suppliers, artisans have the advantage of selling unique products that customers cannot find anywhere else. Therefore, it is possible to charge higher prices for handicrafts.

If you need examples of successful artists selling their work online, check out Bridget Bodenham's ecommerce store .

Another way to sell handmade products online is by using Etsy. With more than 60 million buyers, this platform can make it easy to attract your ideal customers. Of course, get ready to compete for the attention of users with other merchants.

8. Sell prints

• Estimated revenue : Sellers typically charge 10-20% of total production cost to price each print.

• Requirements : Visual artistic skills, such as photography, graphic design, or fine arts.

Selling prints is one of the best online business ideas for visual artists. In addition to earning money, it offers fans the possibility of exhibiting your work in their homes.

One of the easiest ways to sell prints is to start an online store and hire a print-on-demand service, like Printful . This option allows you to make more artwork and dedicate yourself to promoting the business while you take care of the execution and shipping.

Some companies also sell full-size digital files of their prints, such as A Beautiful Mess . In this way, customers can take care of the printing and framing themselves.

9. Launch a subscription box

• Estimated Income : According to reports from Starter Story , income can range from $ 6,000 to more than $ 400,000 per month.

• Requirements : knowledge of business management, digital marketing and site maintenance.

A subscription box service is a business model that periodically delivers a bundle of products to customers, such as Dollar Shave Club .

These services have gained more ground in recent years. The reports reveal that 54% of online shoppers are subscribed to at the least one service subscription box, usually for reasons such as personalized experience and comfort.

The main advantage of running a subscription box service is that the merchant can generate recurring income and foster a long-term relationship with customers. Now, to be successful in this online business you need a product that people are willing to pay repeatedly for.

A good example is Butcher Box . This subscription service offers various types of meat, a staple for many households. The brand uses its organic sourcing as a unique selling point to offer customers more value when purchasing its product.

10. Start a consulting business

• Estimated earnings : $ 60 to over $ 400 per hour , depending on industry and skills.

• Requirements : knowledge and experience in a specific field.

This is another great online business idea for people who have advanced knowledge in a certain field. The job here is to help people solve their business problems, whether they are related to marketing, operations or human resources.

The challenge of creating a consulting business is finding clients, especially when you're just starting out. If you want a large pool of prospects, consulting firm Kate Bagoy recommends focusing on generating leads through LinkedIn and personalized emails for the first six months.

11. Do affiliate marketing

• Estimated earnings : $ 300-10,000 per day, depending on affiliate program and niche.

• Requirements : content marketing skills.

The affiliate marketing is one of the ideas more accessible online business to start. What you will have to do is:

• Promote the products or services of a brand through your content

• Include affiliate links to redirect users to affiliate ecommerce store

Typically, the promoter receives a commission every time someone clicks on the link and makes a purchase.

One way to get started with this online business is to create a blog focused on product recommendation. An excellent example is Baby Gear Lab , a site dedicated to essential products for babies.

If you want to find products to review, sign up for affiliate programs, such as Amazon Associates , Skimlinks, or Hostinger Affiliates .

12. Resell websites

• Estimated income : $ 10,000 to $ 100,000 per year .

• Requirements : knowledge of web development, web design, SEO and digital marketing.

Website reselling is a slower money generating scheme compared to other ideas on the list. However, like Yaro Starak , many entrepreneurs manage to generate hundreds of thousands of dollars with this business model.

The process usually begins with buying underperforming sites or online businesses with potential. Sites like Flippa sell and auction lots of them for one low price.

Once the deal is done, start working on the website improvements. In general, you have to increase the value of the website by adjusting its SEO structure, improving its functionality and looking for the most effective monetization methods to earn money.

The website must generate a significant amount of traffic and income before it is put up for sale. Buyers are often willing to pay significantly more for a site that shows good profitability.

To price the site, calculate your annual income and multiply the total by two or three. For example, if a store online earns $ 1,200 a year , the price can range between 2,400 and 3,600 dollars .

13. Buy and sell domain names

• Estimated revenue : $ 1,000 to $ 10,000 per domain.

• Requirements : knowledge of digital marketing.

With the right strategy, buying and selling domain names can be one of the best profitable online business ideas. Domains can sell for millions of dollars , especially if they are in high demand.

Unfortunately, domains with these criteria are rarely available. For this reason, many resellers tend to target names with local keywords, such as trabajoenmadrid.com , which tend to have less competition.

To start, look for affordable domains at a domain checker or auction sites like Sedo . Consider buying multiple names at once to increase your sales opportunities.

The next step is to search for buyers, which can be done by creating a landing page about the domain name or by emailing proposals to potential stakeholders.

14. Design WordPress themes

• Estimated revenue : $ 5 to $ 200 or more for each item sold.

• Requirements : In addition to knowledge of web design and front-end development, it is good to be familiar with CMS like WordPress .

Selling website themes is an excellent online business for web designers looking to earn extra money. As more people launch their own sites, so does the demand for easy-to-use and attractive pre-made layouts.

To increase the value of a theme, consider bundling regular updates and technical support. Another option is to offer a custom theme service. Often times, online businesses are willing to pay thousands of dollars for a unique design.

You can sell the theme on your own website or publish it in a marketplace, like TemplateMonster . This last option offers greater exposure, although it charges sales commissions.

15. Develop applications

• Estimated earnings : According to Codementor , the median wage is $ 61- $ 80 per hour .

• Requirements : knowledge of app development, UI / UX design and product management.

If you have an idea that can translate well into a mobile app, consider this business idea. Today, people turn to apps to solve a variety of problems, from increasing productivity to maintaining attention.

Those with no experience in app development can search for online learning platforms, such as Treehouse . It is also possible to use software like AppyPie to become an application developer without any programming knowledge.

Some of the ways to earn money as an app developer include showing ads and including in-app purchases. It is also possible to sell the application in markets such as Flippa.

16. Offer Social Media Marketing services

• Estimated earnings : $ 15- $ 80 an hour , depending on knowledge and years of experience.

• Requirements : content marketing skills and staying on top of social media trends.

This is a great online business idea for those with a strong social media presence. Many small businesses need a marketing expert to reach social media users, especially if they are targeting a younger group.

The job is to take advantage of all available social media marketing techniques to increase a brand's visibility, gain followers, and encourage audience engagement. These techniques can include content creation, social listening, and influencer marketing.

In addition to using your own social media profile, you can create a portfolio website or blog to advertise your services, like Nadine from The Social Shells does .

17. Work as an SEO consultant

• Estimated earnings : According to Ahrefs , the median rate is $ 68 per hour.

• Requirements : On-page, off-page and technical search engine optimization knowledge.

The SEO has become one of the most important success factors for online businesses. It is not only a profitable way to get your brand known, but also to generate high-quality traffic.

SEO consultants advise clients on how to optimize their websites for search engines. Since the job market is competitive, consider choosing a specialization or customer segment to target. This can make you the go-to person for specific services.

Finally, remember to be aware of the latest updates to the Google search algorithm to offer the latest and most relevant information to your customers.

18. Become a Virtual Assistant

• Estimated earnings : Indeed reports that the median wage is $ 19 per hour in the United States.

• Requirements : knowledge of administration and digital marketing.

A virtual assistant is a person who helps business owners or entrepreneurs with administrative tasks, such as scheduling appointments and answering inquiries.

In some cases, virtual assistants also offer marketing assistance, such as writing email newsletters and managing social media accounts. According to The Penny Hoarder , this skill set can increase the rate up to $ 60 per hour .

To start a business as a virtual assistant, search for jobs on portals like Fiverr and Upwork. Also, you can create a website to market your services, like Virtual Nina Creative .

19. Launch a Data Entry service

• Estimated earnings : Starting at $ 14 an hour .

• Requirements : An average typing speed of 60 to 90 words per minute and a good handling of data processing software.

Data Entry is an excellent online business idea for those looking for a secondary or part-time job. Many companies need professionals who document information from various sources, such as daily sales reports or meeting notes, in an organized digital format.

The faster and more accurate your typing job, the higher your hourly rate can be. Therefore, it is advisable to do some online practice courses before creating a business in this field. Websites like Keybr are good places for this.

Also, it may be a good idea to invest in a number pad to speed up your typing.

20. Offer transcription services

• Estimated earnings : Starting at $ 5 an hour .

• Requirements : Good listening skills, speed in writing, command of data processing software.

This online business idea is similar to the previous option. The difference is that you will specialize in transcribing audio files to text documents.

In addition to typing speed and accuracy, the niche you choose can affect the amount of earnings. Generally, medical transcriptionists have the highest pay, averaging $ 26 per hour . If you want to aspire to this rate, get ready and familiarize yourself with the sector.

To find transcription jobs, check out Rev and TranscribeMe .

21. Create online courses

• Estimated income : between $ 1,000 and $ 50,000 per month , depending on production expenses, online course platform, and number of students.

• Requirements : Teaching skills and experience in the subject.

This is one of the best online businesses for those who love to share their knowledge with others. Many people seek online courses to enhance their professional value and spend their free time productively.

Since the online learning market has become saturated, it may be a good idea to choose a unique topic that other programs have not yet addressed.

Crystal Dawn's course on making raw desserts is a prime example. The topic is specific and targets a niche market: lovers of healthy plant-based food.

Although there are a wide range of hosted online course platforms, we recommend creating a website with an LMS plugin. In this way, you will have full control over the teaching and monetization methods.

22. Give private lessons online

• Estimated earnings: Average wage is $ 17 per hour .

• Requirements : Experience in a school subject or standardized test, as well as teaching skills.

Starting an online tutoring business is another great option for those with a teaching background. With distance learning the new normal, many parents need help with their children's education.

Sites like Skooli are great for finding tutoring jobs. Its integrated user base will facilitate connection with students seeking your services.

After getting a sizable group of clients, create a website with your tutoring business. If you need a little inspiration, this BMAT Crash Course site is a great example.

23. Create a podcast

• Estimated income : between $ 500 and more than $ 10,000 per month , depending on the monetization channels and the number of downloads. The production can cost from $ 80 for audio equipment, recording software and hosting service included.

• Requirements : communication skills, audio editing and social media management.

Podcasts have become a popular method of content consumption, especially among the younger generations. This is why many people take advantage of this opportunity to start a podcasting business.

To set your podcast apart from the rest, consider targeting a micro-niche. An example is The Pen Addict , which focuses on topics related to pens. Although its scope seems limited, this program has managed to attract a loyal group of enthusiasts.

Create a site to host your podcasts and then upload them to Spotify or Apple Music . Don't forget to establish a social media presence to reach potential listeners.

Beginning podcasters often make money through affiliate marketing. Once your audience grows, you can create a Patreon page for fundraising purposes, or you can join an ad network like Midroll .

24. Launch a YouTube channel

• Estimated Income : $ 5,000 a month is the average salary of a YouTuber with a million subscribers.

• Requirements : communication skills, video editing and social media management.

With the rise of YouTubers, creating video content has become a viable option for starting an online business. Some channels have managed to create a six-figure revenue business model from this video-sharing platform.

There are numerous types of video content to create, many of which can be done from home. For example, product reviews, reactions, software tutorials, or cooking recipes.

If you decide to become a YouTuber, you should focus on getting a thousand subscribers and four thousand hours of viewing during the first few months. In this way, you will be able to access the YouTube Partner Program . Only then will it be possible to earn money from the channel using AdSense.

If you want to generate full-time income with less than a million subscribers, you can try doing it through Patreon crowdfunding, affiliate marketing, or sponsored content.

25. Write articles as a guest

• Estimated earnings : $ 5 to $ 2,000 per blog post, depending on length and quality.

• Requirements : knowledge of writing, content marketing and SEO.

This internet business idea is excellent for those who want to earn money writing online without creating their own blog site.

The task is to submit articles to a blog that accepts and pays guest writers. In many cases, the website owner may ask you to write the article using their name instead of yours.

Many websites are open to the publication of guest articles. It is best to choose ones that use a style and niche that you are familiar with to facilitate the writing process.

26. Write resumes and cover letters

• Estimated earnings : $ 50- $ 300 per resume.

• Requirements : In addition to writing skills and personal branding, it will be necessary to be familiar with the hiring process and the application tracking system.

Now that the job market is increasingly competitive, people need someone to write the perfect resume for them.

That's where you come in. This online business idea consists of writing resumes and cover letters for clients looking for a new job. The key is to make your application effective and increase your chances of landing the job.

To build your network, you can perform free services for your friends and family. Having a few projects to show off in your portfolio will make it easier to convince clients to work with you.

Also, having a professional certification, such as PARWCC , is good to boost credibility and increase fees.

27. Become a technical writer

• Estimated income : $ 400 to $ 2,500 per project.

• Requirements : writing, communication and research skills.

Technical writing is primarily concerned with making industry-specific ideas easier for the target audience to understand. The texts you write will generally be user guides, technical documents and manuals.

Becoming a technical writer is one of the best profitable online businesses on the list, as the demand for these professionals is growing faster than normal. Many companies need a technical writer for documentation, internal communication, and marketing.

How to start an online business

Now that you have the list of the best online businesses, it is time to choose one and get started. In this section, we will show you the steps:

1. Choose a product or service

The first step in starting an online business is deciding what type of products or services you can offer. The following questions can guide your search:

• What kind of problem do people usually ask you for help with?

• What kind of brands do you follow and why do you like them?

• What existing product do you like but would like to improve?

After jotting down a few responses, focus on the ideas that stand out to you the most. The ideal is to offer a product or service that you can produce without having to learn it from scratch.

If you want to sell a product, study the equipment and components necessary to make it or check if you have access to the companies that supply it.

If it's a service, make sure you have enough skills and knowledge that other people will want to hire you.

2. Conduct a market study

Researching the market that interests you will allow you to know if the products or services are in demand. There are several ways to do it:

• Review trends . Websites like Google Trends and Trend Hunter can show what's popular.

• Visit eCommerce platforms . Your best-seller lists can indicate what consumers are buying online.

• Use competitive intelligence software . Platforms like Owler can offer data on existing brands that sell similar products or services.

• Explore job portals for freelancers . These sites often highlight which professional services are popular.

If the market is competitive, analyze what are the gaps in the sector. Find out what these businesses still have to offer and how you can fill that space to differentiate yourself from other professionals or brands.

3. Create a business plan

Now that you know what product or service you want to offer, let's create a business plan. In addition to serving as a guide for your operations, this document can be useful to obtain financing.

There are several elements to pay attention to in an online business plan:

• The identity of the business . This look includes the name and logo. Make sure that they represent the values of your company or your profession and that they are sufficiently distinguished from other brands.

• Marketing strategy. This section covers everything related to the target market, competitor analysis, pricing models, sales channels, and promotion methods.

• Operations plan . It consists of information about inventory management, facilities, and legal requirements. If you sell products, explain how you will produce and deliver the items.

• Financial plan . This segment deals with the business budget, expenses, projections and objectives to be achieved.

4. Legally register your business

Before officially starting a business, it's good to make sure it meets the legal requirements within your industry and region.

Small businesses often register as a Limited Liability Company (SRL) . This business structure separates personal and business responsibilities, which can be helpful in bankruptcy or lawsuits.

For their part, solo entrepreneurs tend to opt for a sole proprietorship . This business structure does not require government registration, making it a more affordable option.

5. Hire a web host

It is time to create a website for your online business. First of all, we are going to choose a web hosting plan that suits your operational needs.

A freelancer usually starts with a shared hosting. This type of plan has more than enough resources for a small professional website or online resume.

Our shared hosting plan for companies is the perfect solution for this. Unlimited bandwidth and 100GB storage offer plenty of room for the site to scale along with your activities. Plus, it can handle up to 100,000 visits per month, which is great for when your online business starts to gain momentum.

On the other hand, an online store usually requires a solution with more capacity to manage tens to hundreds of product pages and other eCommerce content. Some business owners also need the flexibility to manage the hosting environment in the event of traffic spikes.

For this, we recommend using our eCommerce hosting plans . Those who have a small business can also check out our WooCommerce and PrestaShop subscriptions.

6. Register a domain name

When choosing the right domain, keep it short and easy to remember. Longer names are often more difficult to hold and pronounce.

Solo entrepreneurs often use their own domain name, while eCommerce business owners use their business name.

But there is always the possibility that the name was taken by someone else. If that's the case, look for alternatives.

One option is to include the type of business you do at the end, such as fernandezconsultoria.com or mariablancoseo.com . Be sure to avoid ambiguous symbols, numbers, and characters to keep the name readable.

In terms of length, online businesses often choose .com due to its popularity and business purpose. The price of this TLD starts at € 7.99 per year .

For a cheaper option, consider .xyz or .online, which cost $ 0.99 per year .

Users can register a domain name using our domain checker .

7. Set up your website or online store

In this step, we are going to choose a platform to build your site.

WordPress is a popular choice due to its ease of use and scalability, making it perfect for any purpose. However, some basic programming skills may be required to take full advantage of its capabilities.

For a more beginner-friendly option, we recommend a site builder like Zyro . The drag-and-drop builder allows you to insert and move items directly on the page, making it easy to see the final result.

After choosing a platform, you have to customize the site. Here is a list of steps to follow if you don't know where to start:

• Choose a suitable theme for your business

• Configure the web pages, such as the home page, About us, the Blog, Contact, Privacy Policy and Terms and conditions

• In the case of an eCommerce site, add the products, enable the payment process and optimize the purchase procedure.

• WordPress users can install plugins that suit their business needs

8. Publish and promote your business online

Finally, let's make your business known online. Keep the following tips in mind to spread the word:

• Apply the best SEO practices . One way to get a website to appear on search engine results pages is to include keywords relevant to the products or services in your content. The user experience of a site is also an important ranking factor.

• Take advantage of the right social media channels . Try to be present in the networks in which your target audience is most active.

• Send personalized emails . It's a great way to reach potential customers directly through a platform that they often use. For best results, make sure your content is concise and personal.