65 Ways to Make Money Online Today (Part 2)

2. Launch and Grow a Startup

Do you have dreams of running your own business one day? Building and scaling a high-growth startup, while by far the most difficult way to make money online, arguably has the most potential upside.

By the 3rd quarter of 2017, Venture Capitalists had invested over $61 billion into close to 6,000 startups in the US alone.

There’s money in the air, and if you can successfully create an online service, tool, or marketplace that fulfills a rapidly growing need in the marketplace, you could be on track for creating a very valuable business. However, it’ll undoubtedly take an intense dedication of time, efforts, and financial resources.

Unlike a lot of the other businesses we’re going to cover, startup founders face a whole slew of variables and roadblocks that can get in the way of success.

For one, you’ll want to have a high level of domain experience within the industry your startup is going to operate. This means a deep understanding of your customers, the issues they face, and an idea of potential solutions they’ll be willing to pay for. This is the minimum you need to get started.

After that, you’ll need to be familiar with the other major players in the space who might be good partners or acquisition opportunities, as well as an intimate knowledge of how to raise funding, market your product, hire and manage the best talent, and keep yourself financially above water.

*Whew* 

Now, this may sound like a lot, but the payoff is worth it.

So where do you start when building a startup?

The most important thing you need before you do anything else is a problem. What do people need that they don’t have? What solution is currently out there that you can do better? This alone is the basis of every great startup.

Once you have that problem or need nailed, the next step is to validate that idea and make sure you’ve actually got customers who will pay for it. This means building a minimum viable product, getting objective feedback from real customers, incorporating updates, testing the market for demand, and getting pricing feedback to ensure there’s enough of a margin between your costs and what consumers are willing to pay.

Lastly, you need money to make money. Startups can cost quite a bit to get off the ground. So with your idea and market validation solidified, there are a few different paths you can follow to get your initial “seed” cash:

• Bootstrap: This means you’ll be self-funding your business. While not everyone will have the funds to pay for everything they need to start a startup, bootstrapping means that you retain 100% control over your company. If you can bootstrap your company to an exit or IPO, you’ll most likely never have to work another day in your life.
• Pitch to VCs/Angels/other investors: If you need some serious cash to grow your startup, you’ll want to put together a pitch deck and reach out to investors who might want to give you the money you need in return for a stake in your company.
• Join a startup accelerator: Another great option is to apply to a startup accelerator like Y Combinator, 500 startups, or TechStars, where a group of investors will help coach you, connect you with potential partners, and provide startup cash in return for a small stake in your company. The competition is tough to get into these, so don’t rely on them as your only path forward.

Once you’re off the ground, it’s all about customer acquisition, market validation, more funding, and growth.

Of course, that’s a simplified version of everything it takes to build your startup. Luckily, there is now more support, education, and access to funding for budding startups than ever before. And a great place to start is with this list of 101 best free and cheap online business courses for entrepreneurs I put together.

3. Build and Sell Software

Right now there’s an insatiable need for useful software.

Whether it’s an important consumer application, a specialist app to solve a particular niche problem, or even a time-wasting game you can play on your phone, you can create a massively successful business if you build software that helps people. (Look at the rise of Slack—the team communication software that went from side project to billion-dollar company in just 2 years.)

Now, I know what you’re thinking. Most of the software and apps you use on a regular basis are made by massive companies or established development studios. Well, yes. But many successful apps, particularly those in the Apple and Google stores, are created and marketed by individuals and small businesses. In fact, independent developers made $20 billion in the App Store in 2016 alone.

There are two basic ways that you can make money online by building software products.

The first follows the startup path we outlined above: You have a disruptive idea for an app or piece of software, you validate the idea with real customers, and then raise money to hire developers or a development studio to build, launch, and scale your software. If you’ve done everything right, your software will be accepted to the Apple and Google Stores and you’ll make money every time someone downloads it or pays for a premium feature.

The second (and cheaper) path assumes that you have the design and dev chops yourself to build your dream software. Naturally, it’ll take more time to get your product off the ground, but being able to bootstrap the development of your software lets you retain more ownership in your business and be more in control of your path, making this a lower-cost, but higher time investment to make money selling apps.

If you’re willing to take the time to learn the development skills necessary to build high-quality software products (or even MVPs to help you get funding), there’s a growing roster of reputable online learning platforms like Treehouse, CodeAcademy, and Skillcrush to get you the skills you need.

4. Start an eCommerce Site and Sell Physical Products

If finding a better solution to a problem hundreds or thousands of people have doesn’t seem like an option right now, you might be better off setting up a virtual shop and selling physical items.

These days, this couldn’t be easier. Sites like Shopify have made it easier than ever to build a customizable, powerful eCommerce site in a weekend and start selling products now.

This is probably one of the oldest and most time-tested ways of making money online. Plenty of digital entrepreneurs have created sustainable businesses by either:

1. Creating physical products they know people in their niche will love
2. Purchasing low cost goods manufactured in foreign countries, repackaging or combining them with other products, and selling them for higher prices on domestic online marketplaces

While you’ll certainly have higher levels of success if you can nail creating and marketing your own unique product, from my own experience (and that of many other entrepreneurs), I know the extremely high costs and risk associated with starting a product-based business.

Instead, if you can find a solid product that’s already being manufactured at a reasonable price from a marketplace like AliExpress, LightInTheBox, or DinoDirect and market it to your audience, you’ll have the start of a money-making eCommerce machine.

Now, let’s get into the nitty gritty of how your online store is going to operate.

Whether you’re selling your own new products or reselling other goods, you still have to consider how much stock you’re going to carry, how you’re going to fund upfront purchasing costs, and where you’re going to store your inventory. Remember, even if you avoid paying rent on a storefront, you still need to store your inventory somewhere.

Well. Not always. There’s another option that’s become incredibly popular in the last few years (and is my personal favorite way to operate a product business), called drop shipping.

With drop shipping, you’re effectively partnering with a manufacturer or wholesaler to sell their products. This way, you don’t pay upfront costs to buy inventory, aren’t sitting on unsold items taking up expensive warehouse space, and don’t have to deal with shipping the products yourself. You simply create your site, fill it with drop shippable products, and drive in customers, with almost everything else done for you.

Of course, there’s a higher price per product and your margins are lower, but you’re able to start your online store with little more than a Shopify theme and some hosted images of your products. When a customer makes a purchase, you in turn buy the product from your supplier who then ships it directly to your customer.

No inventory. No handling products yourself. No shipping by hand. Sounds pretty amazing.

If you want to supplement selling on your Shopify store with other marketplaces, here are a few other highly lucrative options:

1. Fulfilled by Amazon: Rather than drop shipping, Amazon lets you store your products in their own warehouses, making them available for Free 2-Day Shipping to Prime members. Which has been proven to significantly increase sales.
2. Etsy: If you’ve got handmade or crafty products, Etsy is a great marketplace to market and sell on (bonus points if your product is geared towards a more female audience)
3. eBay: The online auction giant is still in the game and especially good for selling electronics, gadgets, clothing and apparel, and accessories.
4. Craigslist: While the least scalable, it can be very cost- and time-effective to sell to people locally.

Just be sure to put a lot of care into your product listings. Everything from the titles you use, to how effective the description is at convincing potential buyers your product is better than the rest, and even taking care to shoot high quality product photos can have a dramatic impact on your sales. I recommend using photo editing tools like Fotor, which gives you the ability to edit your images, create captivating graphic designs and more.

5. Find Freelance Clients and Sell Your Services

If you have a marketable skill—like writing, designing, web development, marketing, project management, or anything else—one of the easiest ways to make sustainable extra money online is to start freelancing.

And while freelancing might not be as scalable as some of the other ideas we’ve spoken about, it’s not uncommon for solopreneurs to build healthy six-figure freelance businesses for themselves. (In fact, I’ve interviewed tons of them on my podcast!)

Today, over 54 million Americans are opting to forego traditional careers and start a freelance business.

There’s plenty of work and clients to be found. If you know where to look. To start, you need to know if there is enough demand for your skill to make it worth the effort to go out looking for work. Start by searching for freelance postings on sites like Flexjobs, SolidGigs, Contena, greatcontent or one of the dozens of other skill-specific freelance job boards.

How many postings are there for jobs similar to what you do? If there’s a decent amount and it looks like there’s steady demand, put those skills down on a shortlist and start researching the companies and industries that are hiring.

I’ve written a full guide to starting your own freelance business, but here’s a quick list to get you started:

• Decide what your goal is: Do you want a bit of extra income or are you looking to go full-time freelance? It takes time to ramp up a freelance business working from home, so it’s important to know your goals from the outset.
• Find a profitable niche: We’ve talked about this a lot. But, where are you most comfortable. What niche do your skills, values, and interests intersect? Do you have 10 years of experience as a technical writer? Do you have long-standing PR relationships that’ll be invaluable in helping startups launch a successful crowdfunding campaign? Determine what makes your value unique, and lean heavily on showcasing that strength to your potential clients.
• Identify target customers: Write down exactly who you want as your client and then start researching those companies and making your list. You’ll want your portfolio and cold emails to align with the companies you’re reaching out to
• Set strategic prices: The $37.50/hr you earn at your day job doesn’t even come close to the hourly rate you’d need to charge, in order to create the same net annual income, once you’re self-employed. This infographic on calculating your freelance hourly rate can help you decide what to charge.
• Pitch, cold email, and sign your first clients: Now it’s time to go after clients. Mention them in your content. Reach out to them over email or LinkedIn. Tailor your pitch to show what kind of value you bring to the table. (You can even read my personal cold email templates).

Lastly, remember to always have a solid freelance contract in place.

You might be working on small jobs to begin with, but getting in the habit of not starting freelance work without a contract in place can save you big time down the road.