That’s right.
This blog post is going to show you how to build the most profitable online business possible.
Of course, it will be a legal business and there will be no snake oil that you’re selling.
Oh, there also won’t be any Multi-Level Marketing or stuff like that.
This is a business that you’ll love to build and grow.
However, there is something that you have to promise me. Once you learn about this business you’ll share it with as many people as you can.
Why?
Because it’s only fair.
It’s not fair for you to have this information and for others not to.
You might think that this is crazy because if you tell others then you’ll have a crazy amount of competition, but that isn’t going to be the case.
The more people you tell, the better off you’ll be, trust me.
I know that part sounded like some MLM stuff but it isn’t.
You’ll see.
I guess the first thing we should cover is what are profits?
What Are Profits?
Revenue - Expenses = Profits
That’s putting it simply. It’s the amount of money that your business makes minus the money that you need to spend to keep it running.
Basically what you have left over at the end of whatever time period that you decide.
So if you make $1,000 in a month with a business, but have to spend $100 on your salary, then your profits are $900.
Got it?
Something to keep in mind is that over time when you get really good at this business thing, you’ll want to pay yourself a salary.
You’ll want to talk to an accountant about this stuff, but I bring this up because I don’t want you to think that as you grow your business, that all of the business is yours.
You should pay yourself a salary (and yes, you can still take out more as owner shares), but you want to see the profitability of your business which means your salary is now an expense.
It’s hard to tell if your business is profitable or not if you’re taking all of the money each month.
Again, you’ll want to talk to an accountant about this stuff. I’m just letting you know so you don’t go broke when you think that you’re actually rich.
Maximizing Profit
So looking at the formula above how do you maximize profits?
Pretty simple, right?
You increase your revenue and decrease your expenses. That will lead you to a higher profit.
Simple math!
This is why starting an online business can be so attractive. You can scale your revenue without increasing your expenses that much.
With a brick and mortar business this becomes a little bit harder. For example, a restaurant can only seat so many people so there is a ceiling to their revenue. They have to keep a close eye on both revenue and expenses.
With an online business there is no ceiling to your revenue because all you have to do is reach more people that are interested in what your offer.
So that’s the thing, what is YOUR business?
The Most Profitable Online Business to Start
The most profitable online business that you can start is selling information products.
That’s it.
That’s the big thing.
What are information products? They can be a number of different things.
- Courses
- Books
- Webinars
- Challenges
- Memberships
- Printables
The list really could go on and on.
So why is this the most profitable online business that you can have? Because the cost of storage for any of these things is almost zero depending on the solution that you go with and once you’ve created it, then you’re done.
From there it just comes down to marketing it and getting people to buy it.
It’s like you only have to create one pizza and then you just get people to come and eat it.
Forever.
The Financials
If you don’t believe me, let’s look at the numbers.
Let’s say you’ve created a course on making wedding cakes. That sounds like a fascinating course!
You’re selling it for $149 because wedding cakes can be pretty expensive, plus, if you learn how to make them then you can have your own wedding cake business.
You decide to host the course on Thinkific which actually allows you to host your first 3 courses for free.
Awesome, right?
You also decide that your best bet for promoting this course is with a YouTube channel. Well, you don’t need to spend any money to start a YouTube channel.
In fact, you don’t want to buy any fancy equipment to start since you love how the videos look when you record them from your phone.
You do buy a domain because it’s always wise to have a domain for your business. You buy that from Hover for $15/yr and you want to host the site somewhere.
You aren’t building a crazy site, but you want to have a couple of pages explaining what your business is and you want people to sign up for your mailing list so you can stay in contact with them.
You purchase hosting from Siteground and you decide to use Flodesk for your emails because they create beautiful emails and you get unlimited subscribers.
Alright, we can see here the costs aren’t going up that much.
The course is done and now it’s just a matter of getting people to buy it. Right now I won’t go into the details of that but let’s just say that your YouTube videos are so great that you’re able to get 10 people a month to buy your course just from the link you include in your YouTube description.
Just 10.
That’s $1,490 a month.
Subtract that from your expenses and you’re looking at ADAJFADFLKAJFAOFIJAF.
Now, you might be saying this isn’t fair because you haven’t paid yourself out yet and you’d be correct. So you take a little for yourself because the plan is to re-invest the money into the business if needed.
You’re not done yet though.
Let’s say you also get 100 people to sign up for your mailing list each month. The more popular you get, the more people sign up but to keep this scenario simple, we’ll just say 100 people a month for right now.
You’re able to convince 10 people each month from your list to buy your course.
Instead of $1,490 a month you’re now doing $2,980 a month and you didn’t have to increase your expenses at all.
And the amazing this is, this is just from 20 people buying your course.
After 6 months things have evolved.
You have another course and this one shows people how to start a wedding cake business. This one costs $499 because it’s really in-depth and awesome.
Yep, you still have your wedding cake making course as well and just for fun let’s say you still have 20 people a month buying it.
But now, because of your YouTube channel and awesome videos, you have 10 people a month, JUST 10, wanting to get into the wedding cake business and so they buy your Wedding Cake Business course.
Let’s look at the numbers now.
$2,980 + $4,990 = $7,970
That’s not too shabby right? And notice I didn’t throw out any crazy numbers at you.
This is just 30 people, each month, buying something from you.
Not hundreds. Not thousands.
And you’ve stuck with your exact same expenses.
Because you’re now making almost $8,000 a month consistently you’re able to give yourself a normal paycheck. Let’s say $4,000 a month because you still want to scale your business.
You also decide it’s time to buy a new camera because there are some fun things you want to do with YouTube so you spend $3,000 on that.
Oh, you also upgrade your Thinkific account because you want more of the added features.
After all of that you still have a profit and it’s not like you’re going to spend $3,000 each month on a camera.
Oh, did I mention, that you continue to scale your business each month?
How realistic is this?
Very.
In fact, I stuck with very low sales numbers just to show you that it doesn’t take much to make a healthy income from this type of business.
But since this was a made up example I think it’s only fair that we use a real-life example.
Something that maybe you can relate to even more.
And for that we are going to turn to NobleKnits.com run by Nancy Queen.
The $10,000+ a Month Knitting Business
Now, when you hear about a knitting business making 5-figures a month it’s easy to think that their expenses must be crazy high.
I mean, yarn isn’t free!
However, what if I told you that the business made its money by teaching others how to knit?
That’s what Nancy Queen does.
But Nancy didn’t start off selling courses on knitting.
She started off the same way a lot of bloggers do and that’s by trying to get a ton of traffic and make money with ads and affiliate marketing.
She was actually doing pretty well by blogging standards. Between $2,000 – $3,000 a month because she gets a healthy amount of traffic to her blog and she has a growing YouTube Channel.
Nancy was doing all of the right things if that’s how you want to make money.
The problem with this though was that she wasn’t getting the most revenue possible out of her audience.
I know that sounds like I’m saying she needed to squeeze the juice harder but that isn’t the case.
What I’m saying is if that you’re getting over 100,000 people to see you every single month, then you should be making more than $0.02 per person.
So Nancy decide to create a course. It didn’t take her long she since had plenty of experience creating videos with her YouTube Channel.
She launched the course and in the first month made over $10,000.
You don’t have to take my word for it, you can watch this wonderful interview with her here.
She didn’t have to throw down a ton of money.
She didn’t have to do anything drastic.
She simply made the most out of the audience that she was building.
A Business for Everyone
That’s beautiful about an info product business is that anyone can start one.
You might not think you have it in you but you definitely do because you’re an Experience Teacher. I won’t get into what that is, but because you’ve lived a life, you have something to share that someone is willing to pay for.
If you want to learn more about starting and building this type of business then check out our resource below.