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Every person’s situation and circumstances are different in terms of time, money, experience, commitment, and expectations. I created this quiz to cut through all the noise, eliminate any confusion, and help you quickly determine which online business model is right for you. Down below you’ll see which color belongs to which online business opportunity.
Let’s Find Out Now
When most of your answers have a yellow color, we have determined that the best online business model for you and your current situation is the Affiliate Marketing model!
What is affiliate marketing briefly explained?
You basically help other businesses make sales by referring customers to these businesses. For this action, you’ll be rewarded with a commission ranging from a few dollars to thousands of dollars.
Difficulty Level: Beginner
Affiliate marketing is considered to be more of a beginner business model. Although it’s recommended to have already built a consistent stream of traffic, visitors, or subscribers through the Kindle publishing, blogging, YouTube, or podcasting models first, you can start without all of it.
Startup Costs: $100
The average startup cost for an affiliate marketing business is about $100. The initial expenses would typically be a domain name, web hosting, landing page, and e-mail management software to get started. However, it’s possible to start with $0.
Avg. Timeframe: 1 day – 6 months
The average timeframe before a newbie realistically expects to make money from affiliate marketing is 1 day to 6 months. If you already have an established Kindle publishing business, a blog that gets visitors, YouTube channel or podcast with subscribers, or an e-mail list, then you can start doing affiliate marketing and earning money right away. However, if you are starting from scratch, expect it to take 1-6 months to build that up before you can start doing affiliate marketing. If you’re willing to spend a bit more money, you can make money in as fast as one day using paid ads.
The potential of an affiliate marketing business is a seven-figure income, over $1,000,000+ per year.
Affiliate marketing can be a passive business model. Once your website or Youtube channel is up and contains enough good content, it runs by itself. However, it’s always advised that you never fully neglect your online business as there are always potential changes that can occur online and you’d always want to keep an eye on your business.
When most of your answers have a red color, we have determined that the best online business model for you and your current situation is the Dropshipping model!
What is dropshipping briefly explained?
You’re selling products to customers with your own online store, but without having inventory. Once you get a sale, you’ll buy the product yourself elsewhere cheaper and send it to your customer. This way you’ve never touched the product and are able to keep your costs low.
Difficulty Level: Beginner
Dropshipping is a good way to start making money online. Just by having an online store, you’ll learn a lot. If your store is set up, it’s just a matter of attracting enough visitors and processing the orders.
Startup Costs: $100-$250
The costs are on average about $100-250 dollars. The majority of the costs consist of setting up your online store and running ads to get in front of your customers. The key is to reinvest your profits to run more ads and make more sales.
Avg. Timeframe: 1 day – 2 weeks
The average timeframe before you’re making money from dropshipping is about 1 day to one or two weeks. It’s possible to have your shop online in a few hours to a few days and are able to run ads the same day. The more you spend on marketing, the faster you can expect a successful transaction.
The potential of a dropshipping business is a seven-figure income, over $1,000,000+ per year.
In the beginning, you need to take care of customer support, test different products and process the orders with your supplier. Once you’re big enough, you’re able to make it passive by outsourcing and putting systems in place.
When most of your answers have a green color, we have determined that the best online business model for you and your current situation is the Amazon FBA model!
What is Amazon FBA briefly described?
You’re selling products by leveraging one of the biggest e-commerce platforms in the world: Amazon. It involves buying inventory and sending it to their warehouses. Amazon does the selling.
Difficulty Level: Beginner/Intermediate
Amazon FBA is newbie-friendly, with the right training and guidance. It doesn’t require any previous online marketing or business experience. However, without a good training program or guidance, I would consider Amazon FBA to be more “intermediate” or even “advanced,” as there are a lot more logistics in it. You also need to have a bigger investment budget compared with the other business models.
Startup Costs: $1500+
The average startup cost for selling physical products on Amazon is around $1500. Most people think a lot of money is required to get started, but it’s simply not true. Depending on the product you decide to sell, you can find suppliers or manufacturers to make a product for you and start with an inventory of only 100 units. The other main startup costs would be getting a logo and label/packaging design, which can also be done relatively inexpensively.
Avg. Timeframe: 3-6 months
The average timeframe before someone can realistically expect to make money on Amazon is within 3 to 6 months. It can take time to find a product to sell and communicate back and forth with potential suppliers. Often there is some “waiting around” as you await samples to arrive from suppliers so that you can test the product before selling it. There’s also a period of “waiting around” for suppliers to manufacture and label the product, as well as shipping your inventory to Amazon’s fulfillment centers.
The potential of an Amazon business is a seven to eight-figure income, between $1,000,000 and $10,000,000+/year. Again, it’s simply a matter of reinvesting the profits to buy more inventory if the product is popular.
Selling on Amazon can be a passive business model and create a passive income stream. When you’ve figured out how to find the right suppliers, how to communicate with them, what products to sell, and how Amazon operates, your biggest task consists of making sure you’re not running out of stock.
Digital Marketing Business
When most of your answers have a blue color, we have determined that the best online business model for you and your current situation is the Digital Marketing model!
What is a Digital Marketing Business briefly described?
You’re providing marketing services in the online space. For example, running ads for companies, logo design, helping businesses with their email marketing campaigns, building websites, video editing, etc.
Difficulty Level: Beginner/Intermediate
Of course, it depends on what kind of service you offer, but in general, I would say it is considered intermediate. You do need to have specific skills as you’re selling your experience to clients. It’s possible to outsource the work, but I recommend at least having an understanding of how to fulfill the service yourself.
Startup Costs: $50+
Having a digital marketing business is actually cost-efficient. Although you can start with $0, if you really want to come across as professional, you need a domain name and hosting.
Avg. Timeframe: 1 month
The average timeframe before someone can realistically expect to make money by providing digital marketing services is within 1 month. Once your website is set up, it’s simply a matter of contacting businesses that could need your help or you can sign up on freelance websites to find a client.
The profit margin is quite high (about 90%) with this business model, and the revenue is consistent if you charge on a recurring basis. But it’s harder to scale.
Your business is selling your skills to solve problems to businesses. When you start out, you need to have these skills and are responsible for providing a good service. Once you have earned enough, it’s a good idea to outsource the work and free up your time.