The Truth About Making Money Online

If you do a quick Google search about the failure rate of online businesses you will find that most people claim that, in general, start-ups do not succeed. At first, it seemed like a reasonable statement; however, I began to question this assertion when I realized I could not find any sources to verify such claims. Moreover, it seems counter-intuitive that if most online businesses fail; then why is it still a growing industry?

By no means I am trying to imply that earning a steady income online is easy. However, I do think that if somebody makes such a bold claim they should back it up; furthermore, people who make these kind of statements, usually also want to sell you their newest way to make money online. To be honest, I do not know if most new business online fail. I am sure many of them do. What I do know is that there is a growing trend that has taken many new forms in the last few years in online business world (Rauch, J. 2012).

In his article You Inc, J. Rauch describes how some people have begun to build careers on multitasking online. He calls them solopreneurs, and gives an example of a blogger/ghostwriter/coach who combines her different skills online in order to earn a living. He also describes how these solopreneurs rely heavily on branding and reputation, comparing it to a conglomerate that revolves around the self. In other words, people online are advertising themselves as brands, so that they can sell their skills and knowledge to the public. Most of these new business offer personal and professional services such as; social media promotion, business coaching, writing, financial guidance and web design (Rauch, J. 2012).  

Another interesting paper is from the Journal of Business Studies, where they explored the business models of 69 journalistic online-only start-ups in 2011-2012 in ten countries operating a sustainable niche (Cook, C., &; Sirkkunen, E. 2013). They found that start-ups often work their way ahead by combining an adapting different revenue models into their business as a way for seeking sustainability in a competitive market situation. Additionally, they explore the idea of a niche and according to their findings; a niche is not limited to narrow-interest content serving to a specific-interest audience. Rather, a niche could also be the customization of content and service propositions that move beyond traditional methods of delivery. 

Overall, I would suggest not to be discouraged to start your own venture online. Though, there may be many difficulties along the way; the same thing happens in the offline world. Also, I would like to point out the importance increasing one's human capital. The more skill we attain the better we will be able to provide our services online. Another important point is to build one's reputation; branding is an important part of any online business, so attaining consumer loyalty is crucial. Lastly, do not be afraid to explore new ideas; niches do not have to be limited to providing obscure content for an obscure audience, instead the niche could be the way or method in which you deliver content. As difficult as one might think it might be it is possible to make a living online, and many people continue to do so. Moreover, starting an online venture usually does not involve large amount of initial investment; therefore, if one fails the cost is not so high and you could probably just try it again.

Sources:

Cook, C., & Sirkkunen, E. (2013). WHAT'S IN A NICHE? EXPLORING THE BUSINESS MODEL OF ONLINE JOURNALISM. Journal Of Media Business Studies, 10(4), 63-82.

Rauch, J. (2012). You, Inc. National Journal, 5.