Imagine, chilling on the beach each and every afternoon after just putting in a couple hours of work each day and STILL making more money than you ever did at your job.
Believe it or not, but that is completely possible if build your own online business.
Let’s break down for you to top 3 most profitable online businesses for you going into 2020 and beyond. Plus, at the end of this article, I’ll break down exactly how we used these business models to create our very first 7-figure year, so you’ll definitely want to stick around till the end.
If you are going to put the time into creating an online business, you definitely want to make sure you are going to be profitable, right? Because no matter what some of those guys out there posing in front of lambos and flashing money are saying, creating a stable, real, and profitable online business does actually take work. It doesn’t happen overnight. It’s probably more work than you first realize going into it, so let’s make sure you set yourself up to reap the rewards of your labor… so you can eventually get to the point where you are working just a couple hours a day or less and making A LOT of money.
Let’s break down the top 3 most profitable online businesses you can get started building today. We’ll start with the simplest and progress to what really has the most earning potential.
#3 Most Profitable Online Business: Affiliate Marketing
So most profitable online business number 3 is Affiliate Marketing. What’s affiliate marketing? it’s simply where you refer your audience to purchase someone else’s product or service and you get a cut or percentage of the commissions.
Now why is this such a simple and profitable opportunity? Because you can take anything you are interested in, health, fitness, gaming, fishing, marketing, & more and start building an audience online, simply by giving them some information or insights that interests folks who are curious about your topic. Then you can make a referral for a service or product that you like and think your audience would find helpful.
It’s nice because you don’t have to worry about coming up with a product or service yourself. You also don’t have to deal with actually selling. Even better yet, there’s no customer service to deal with. You simply build a targeted audience then make recommendations to that audience with a link that is unique to you.
Now there are some important things that you need to keep in mind to make sure that you are maximizing your profits with affiliate marketing.
Tip #3 You need to build an email list, moving them from just followers on social media — where you don’t own those accounts, like your Facebook business page, Instagram account, or YouTube channel, to an email list that you own.
This provides a level of stability and security for your business, since it’s one of the very few things you own online. But it also allows you to continue to market to and follow up with people.
They say that people need an average of 7 interactions at least before they are willing to make a purchase, so the more they hear from you, the more they know, like, and trust you, and the more likely they are going to be to make a purchase that you recommend.
Now if you think, nah, I’ll just stay on Facebook, I don’t need to build as email list, PLEASE think again!
I once heard Tim Ferris say, building your business on Facebook is like having the most profitable McDonalds in the world, but it’s sitting on a live volcano and it’s bound to go off at some point. And I 100% agree!
Just ask Frodo and Sam what it’s like to be on a volcano when it goes off. It’s not fun.
Personally, we’ve had 2 pages shut down by Facebook out of nowhere, without warning. It happens ALL THE TIME. I’m not saying don’t use Facebook, but I am saying move people off Facebook quickly onto something like an email list that you control and own.
Tip #2 for being profitable with affiliate marketing is to leverage high ticket digital affiliate offers when you can.
Physical products only typically pay out 5–7% of the commission price, so $5–7 on a $100 physical product.
You have to make a WHOLE LOT of sales to earn a significant income from that. Now imagine getting a sale from a digital product that pays 30–50% of the sales price, so $30–50 on a $100 product. It doesn’t take a ton of those sales to start making a real income.
Now, imagine you were able to introduce people to a low-ticket digital product, something under $50, but afterwards they went on to spend thousands of dollars with the company you referred them to, and you continued to earn 30–50% of all of those sales. It doesn’t take a lot of $1000 commissions before you are replacing your full-time income.
Tip #1 for being profitable with affiliate marketing is to play the long game and only recommend products or services that you know will truly help and serve your audience.
Don’t just go for the short-term sale. Your reputation is everything, so don’t ruin it. Always look out for your audience and only recommend things that will help them.
If you follow this advice you can leverage affiliate marketing to its full potential.
Affiliate marketing was definitely part of the picture for first 7-figure year in online business…
I’ll walk you through exactly how at the end of this article.
#2 Most Profitable Online Business: Digital Products or Services
The 2nd most profitable online business to start in 2020 and beyond is selling your own digital products or services. Now what’s great is that affiliate marketing is a simple and easy way to get started and it sets you up nicely for selling your own products as your next step.
If you build your online business that way, then you will already have an audience built up, and now you can offer an online training course, ongoing monthly membership site, one-on-one or group level coaching or consulting, teaching and helping your audience solve some sort of problem or overcome a challenge that they are facing.
You are going to have to learn how to do the selling, whether that is in an email series, on a sales page, or through a webinar. And yes, you have to handle the customer service issues like helping people who can’t log in or dealing with refunds or charge backs. BUT there is a huge financial upside to taking this on. Once you have everything up and running, you are able to make almost 100% of the commissions.
Once you have a great product or service that people love, you can fine tune your sales process and scale up the sales drastically with paid ads (like on Facebook)…. And that becomes like printing money. It can be a complete cash cow when you have it really dialed in.
A word to the wise though… before you scale up big with paid advertising, make sure you have some help in place.
Todd and I found ourselves in that very spot a couple summers ago. We had a “cash cow” and were scaling up our Facebook ads. The customer service side quickly got overwhelming because it was just us dealing with our new customers who had a wide range of needs we needed to help them with. We had to shut off our ads (killing our cash cow) until we had some people training up who could help out.
It is really best to have those folks in place first. You don’t have to hire full-time employees; instead, you can simply hire people as independent contractors or 1099 to help you out. It’s an easy way to start.
Now, don’t forget at the end of this article, I’m going to give you a bonus walking you through how we put all of this stuff together to hit our very first 7-figure year.
1st Most Profitable Online Business: Amazon FBA
The number 1 most profitable online business to start in 2020 and beyond goes to Amazon FBA! Amazon FBA is when you are selling products on Amazon and using their shipping and warehousing.
Typically, you would find a manufacturer to work with you in creating your product and putting your brand on it. You then ship them to Amazon where they sell as a Prime item.
Now there are definitely pros and cons this online business model, and I’m not going to hold anything back because I want you to make an informed decision about what you should put your time into.
The benefit of this type of business model is that you are able to leverage all of the traffic already on Amazon. People are already shopping on Amazon and looking to make a purchase. When you are at the top of the search results you are able to make sales without worrying about ads or traffic.
AND because you are using Amazon’s fulfillment network, where your product is sitting in their warehouse, they deal with sending it to the customer, and they handle much of the customer service, it can be pretty hands off, day-to-day.
On top of all this, even though the profit margins are typically less than digital products, often only between 10 to 30%, there is a HUGE financial benefit that people usually won’t ever see with the other online business models.
You can build up a successful Amazon FBA business and sell it for a big cash out.
Frankly, that is what got our attention. It’s something you can work on for a few years, creating an exit strategy, where when you get it big enough, you can get a payday of several million dollars.
So, yes, that is a huge opportunity, but as always it’s not just sunshine and rainbows. There are some downsides as well.
Amazon FBA typically has a more significant investment requirement up front.
I think we put probably $20,000 into the training, samples, inventory, etc. before we ever made a sale. Now you don’t need to make that size of an investment up front, but you do need to have the budget for it, possibly $10,000 to $15,000.
Plus, it does take a lot of research. It will be helpful if you are an analytical person as you have to sift through data to decide what products hold the most opportunity when selecting what you want to sell.
Now as we’ve gotten into the Amazon FBA world, we’ve seen a huge benefit to our previous online experience. Working as affiliate marketers, building an online brand & audience, and selling our own digital products, has taught us to be excellent marketers which provides a HUGE leg up when it comes to Amazon FBA.
So now, for the big reveal… how exactly did we reach our very first 7-figure year?
Well, it was a combination of what we just talked about, with a little spin.
I’m not going through this because you need to have this all figured out right now, but I just want to open your mind to possibilities and start dreaming of where you could go and what you could do with your business.
Truthfully, we worked hard for several years before reaching this goal and it took a TON of work. Definitely more work than we realized when we naively got started. But it was way worth it & I’d do it all again to get to where we are today. So please understand that you don’t have to know all of the steps on the road that you need to take, you just have to keep moving forward and stay focused on just the next step.
I mean, think about Frodo and Sam as they first left the Shire to get rid of the One Ring.
If they really had known ALL that would go down before their journey was done, they probably would have never left. But instead they only knew what the next step was, getting it to Rivendell. They didn’t worry about the rest. And they not only ended up saving the world, but they grew, learned, and changed in the process. So don’t worry about figuring all of these steps out right now, just focus on your next step…but feel free to dream big.
In our first 7 figure year with our online business, we made around $300,000 from affiliate marketing. We were building our email list, and let them know about great affiliate offers that could help them out. Plus, we created YouTube content that led people to our affiliate offers. So we made A LOT of affiliate sales.
We were also leveraging Facebook ads to drive traffic to a webinar where we sold a digital course. Not only did we make sales on that course, but we also had some people joining our ongoing monthly membership.
Then, on top of that, we also leveraged affiliates to sell our course for us. So, not only were we driving traffic to our offer, but we had thousands of other people driving traffic to our offer. They helped us make the sales and we paid them between 30 and 50% of the commission.
If you compare using affiliates to help you sell your products or services against running ads, it’s a smart deal. When you run ads, you are paying for traffic to get exposure to your ads- this does not guarantee sales. However, when you have affiliates promoting for you to their audiences, you are only paying if a sale is made. It’s smart and it works.
Whatever business model you chose to get started with, there are 3 critical elements you need to put into place in order to be successful and see profits. You’ll want to make sure and check out >>THIS VIDEO<< where we walk you through how to pull it all together, so WATCH THAT NEXT!
Take action, you got this. I’ll see you soon.
P.S. – If you need a step-by-step blueprint for building a profitable Online Business as fast as possible, this training is what we recommend!