I’ve research a lot of online businesses since 2012, and in 2019 when I look at the landscape of all the online entrepreneurs out there, these are my top 3 home based businesses available today that people are having the most success in, and imo these have the ROI to back it up, has the biggest bang for your time spent.
I have personally made money with all 3 businesses: dropshipping, Amazon FBA & Lead Generation.
80% of my online income comes from my lead generation business, more on that later.
3. Drop Shipping Business using Shopify & Facebook Ads
I put this business in the number 3 spot. Certainly has some attractive features that makes it one of the most doable businesses for a beginner.
Drop shipping is a business model where you ship physical products from suppliers overseas directly to your customers.
Therefore there is no need to purchase inventory so you can start this business at relatively low cost.
Just some cost for the domain, hosting & shopify account. The main expense will be the FB ad cost.
Keep in mind tho that Facebook will utilize your daily ad budget whether you’re making profitable sales or not.
So the challenge is to pick a product that converts really well.
Most of the time products that sell well on FB are products that catches attention, if it has some fad or viral nature to it the better.
You’re mostly going after impulsive purchases.
With these kind of products the question then becomes how long will these products stay profitable?
They all seem to inevitably saturate the market and the drop shipper will need to research for new products he/she can sell.
The advantage of this business model is that while the product is converting & selling well, you can scale the FB ads rapidly and suddenly in very short period of time you could be selling that product to hundreds of thousands of people around the world.
Here are the pros & cons of this business summarized.
- Easy to get traffic using Facebook Ads
- You don’t have to buy inventory
- Ease of setting up online store using Shopify
- Model after other people’s success
- Plenty of overseas suppliers to work with
- Getting more competitive
- Facebook ads tend to burn out eventually, products don’t seem to succeed over the longterm
- expensive ad costs
- Dealing with ongoing customer order fulfillment issues: returns, chargebacks, complaints, product breaking
2. Amazon FBA Business
Amazon FBA stands for “Fulfillment by Amazon” meaning that all you have to do is order inventory and ship it to one of many Amazon warehouses and they’ll manage the inventory, package the products & ship the products out to customers for you.
They’ll also handle returns.
This was originally created to help small brick & mortar mom & pa shops get online.
Now in 2019, this has become the hot new online business opportunity that everyday people like me & you are participating in.
What’s the challenge?
Well just getting your product listing on Amazon is not enough to suddenly begin raking in the dough.
You actually have to rank your listing so that it begins showing up on page 1 of the search results.
The success of your product listing is heavily affected by the # of reviews you have on your product.
Because ranking is heavily determined by the conversions, which means how many people visit your product listing versus how many people actually buy.
And customer’s buying decision is heavily influenced by the # of reviews.
This can be bit challenging for a new product listing because as of 2016 Amazon no longer allows incentivized reviews. Which was in the past you could offer your product at discounted prices in exchange for a review.
Well, there are ways around this that Amazon FBA sellers are coming up with to overcome this limitation such as running Facebook Ads and creating an email list to market your Amazon products to, then asking for a review after wards. Since one of the disadvantage of Amazon FBA business is that unlike dropshipping shopify, you cannot collect customers emails.
But once you do rank a product listing and it starts getting positive reviews organically, then you have a business that’s generating income for you with free traffic, which is much better than having to pay for ad costs & ongoing work to maintain ad performance.
- Amazon is responsible for 44% of all online sales
- Amazon has that strong customer loyalty & trust
- There are so many different products you can choose from, still many niches that is not saturated yet
- Once a product ranks & begin generating sales, it can be pretty profitable for the longterm
- Cuts a lot of the headaches of traditional physical product business of inventory management & shipping
- Can be difficult to get your product ranked and get positive reviews for it
- Its getting more competitive every year to rank new products
- It can take some time to launch your first product, first you have to find supplier, then you have to order bulk and wait for the products to get made & shipped to the Amazon warehouse (typically 4-5 months before product listing can be created)
- Some risks, up front investment in inventory no guarantee of product becoming successful
- Inability to collect emails from your customers
1. Local Lead Generation using Free Traffic
This is actually my favorite model (yes I’ve tried e-commerce & Amazon FBA) because I don’t have to deal with physical products & on-going work required to fulfill customer orders. I’m simply generating leads using simple websites that rank organically in Google and generates free traffic which means once the initial work has been put in to set up the lead gen properties they turn into passive income streams.
For example this is one of my limousine rental lead gen site I own in Lansing, MI. I haven’t touched this site since 2014 and its been making me $750 every month.
This business model is very simple.
You set up these properties across the web that generates leads for small business owners, they generate more revenue because of your leads (which is all tracked), then the business owners pay you monthly to continue to receive the extra leads that’s generated by you.
They’re happy as a clam to pay you monthly because they can clearly see that your leads are making them more money.
Many of my clients pay me 10% of the business that I bring to them.
- So many cities & niches out there, there’s plenty of opportunities (no signs of saturation)
- these lead gen site require very little to no maintenance once they’re all set up
- you own the digital assets so you have the control, biz owner has to keep paying you or you can choose to send the lead to someone else
- much more scalable than e-commerce because you’re not dealing with physical products
- sometimes a lead gen property might take longer than you expected before it begins generating revenue (typically takes 2-6 months)
- sometimes it can take a while before you find the ideal business owner to work with
- takes longer & more initial work to generate traffic versus Facebook ads
- must be willing to talk to other business owners
I’ve personally found the most success in building my 6 figure online business by doing local marketing using the lead generation business model of owning your own lead gen assets. This coaching program is what taught me this business model and what has finally given me the financial freedom to be able to quit my 9 to 5 and live my life on my own terms.
I’ve got clients paying me monthly since 2014 and I hardly ever talk to them. Its because my lead gen sites continue to produce results day after day and I really don’t need to ever look at them once the initial setup process is finished.