Table of Contents

18 Ways an Online Business Can Improve Your Life in 2024 (Modern vs Traditional)

October 9, 2024

Online Business Benefits You Can't Resist

The ways an online business can improve your life in 2024 include:

Supporting a healthy work-life balance
Promoting higher profit margins
Providing personal growth opportunities
Giving a sense of purpose
Offering a flexible schedule
Automating business processes
Providing remote work opportunities
Allowing access to the global market
Offering financial stability
Enhancing your health and well-being

Flexible lifestyle, financial freedom, low startup costs, and personal growth are the benefits of online business. Unlike a traditional business, you can work from anywhere and set your own hours. This helps you balance your personal and professional life. You also have the potential to scale globally and earn passive income. Plus, it challenges you to develop new skills, think creatively, and push boundaries. The best part is that you can get started by creating a basic website for as little as $50.

Pat Flynn began his online business journey in 2008 after he was laid off from his architecture job. He first started blogging to share his knowledge about passing an architectural exam. When he saw that people were willing to pay for study materials, he decided to sell them. This opened his eyes to the potential of earning a living through online business. Today, Flynn is one of the most successful online business entrepreneurs. He has several successful ventures such as Smart Passive Income and Switchpod. His net worth is over $3M. However, the most important things for him were his impact on others and having more time with his family.

The digital marketplace is thriving as more consumers buy products and services online. According to a Forbes report, 28% of all businesses are now done online. Statista predicts the U.S. virtual marketplace will increase by 22% from 2024 to 2029. With growing demand and endless opportunities, an online business can lead to success.

Henrik Powers from Reddit shares their success story with their outdoor gear brand. They say it took 3.5 years before they started earning $1M. By year 7, their revenue reached $5M.

Another Reddit user shared their success with their product, Cocktail Cards. They launched it during the pandemic, which was perfect timing as people wanted to learn how to make cocktails at home. Using TikTok and YouTube videos, they raised enough money to bring the product to market. Now, they have inventory available on Amazon, their website, and other online platforms.

While online businesses offer lots of benefits, it also comes with challenges. For one, competition can be fierce. You'll need to find a unique selling point to stand out. Gaining customer trust and loyalty requires constant effort and innovation. Moreover, the average cost of getting new customers has increased by 60% in the last five years. This can strain new businesses, especially when starting with limited budgets.

I've been running an online business for 10 years now. I struggled with all these challenges at the beginning. I couldn't get my first few online businesses to succeed. However, I've found a business model that avoids many of the common challenges. It has allowed me to enjoy the full benefits of running an online business. In this article, I’ll share the 20 ways an online business can improve your life. I'll include the business model I work with to get the most out of these benefits. I'll also dive deeper into how online businesses compare to traditional ones.

1. An Online Business Supports a Healthy Work-Life Balance

With an online business, you'll be able to balance your work and personal life. Since you can set your own schedule, you can make time to bond with loved ones, pursue hobbies, and attend workshops. You can even adjust tasks based on your energy levels or needs. In turn, this promotes self-care and well-being. According to the NIH, taking time off from your job reduces stress by 56%. Another report by Linearity showed that 44% of people say burnout has to do with heavy workloads. With a healthy work-life balance, you can stay motivated for your business and be happier in your personal life.

My local lead generation business has given me plenty of time for other things. Once I rank a website and find a local business owner to rent it, there's very little maintenance to do. This allows me to travel and have a quiet moment to myself.

Carrie Green was able to turn her life around with her online business. Before she started the Female Entrepreneur Association, she was an unhappy law student. Being overloaded with books and growing debt, she experienced her worst days. Here's an excerpt from her website:

She then discovered online businesses. Fast forward, Green now focuses on creating online courses, memberships, and a community. This allows her to work from anywhere and focus on her physical and mental health.

2. An Online Business Promotes Higher Profit Margins

You can generate higher profit margins with an online business. You no longer have to rent or buy a physical location. Plus, you don't need to spend on utilities, staff, stock, and property insurance. Without these overhead costs, you can keep more of your revenue. This leaves more room to reinvest in your business or increase your profits.

An online business can also generate higher profits by reaching a global audience. With the right marketing strategy, you can attract more potential customers and get more sales. You can earn thousands of dollars in a month. You won't have to worry about debt, medical bills, rent, and other expenses anymore. Now, the most profitable online businesses in 2024 include:

Local lead generation. This is the business model that I work with. I earn $50,000+ a month by renting websites to local service companies around the U.S.
Digital marketing. According to WebFX, small businesses spend an average of $10,000 a month on digital marketing. You can earn an average annual salary of $106,000 to $139,000 if you offer this service.
E-commerce stores. A Yaguara study estimated online shoppers to reach 2.71 billion in 2024. You'll have an endless list of potential customers. Selling products can earn around $94,000 or more a year.
Graphic design. Freelance graphic designers in Upwork make between $20 to $150 per hour. In total, the average goes up to $93,000 or more.
Blogging. The average income is $45,000 to $53,000 per year, whether you start your own blog or work as a ghostwriter.

3. An Online Business Provides Personal Growth Opportunities

Running an online business allows you to grow and push out of your comfort zone. You'll learn important things that can be used in all areas of life, like:

Leadership skills
Time management
Communication abilities
Self-determination
Financial literacy
Adaptability to challenges

You'll also gain valuable experience while staying in the same 9-to-5 job might prevent you from discovering your full potential. Marie Forleo, creator of B School and MarieTV, always emphasizes her personal growth. As a life coach, she never anticipated being on a learning journey alongside her students. But she says it helped her overcome fears, build confidence, and develop resilience. A Reddit user shared that running an online business helped them develop leadership skills. They believe this is key to business success.

4. An Online Business Gives a Sense of Purpose

You will have a stronger sense of purpose if you run your own online business. If you pick a business model you're passionate about, it will fulfill and motivate you. And it's not just when you achieve something big. Each milestone reached contributes to a growing sense of accomplishment, including:

Creating a detailed business plan
Launching a website
Getting your first sale
Making a difference in people's lives

A long time ago, I was stuck in an unfulfilling office job, earning enough to get by. I felt lost - until I started my local lead generation business. This breakthrough not only brought me financial success but also reignited my spark. I found purpose by helping service businesses get more quality local leads. I also love sharing my journey and expertise with others to help them get out of the rut, too.

5. An Online Business Offers a Flexible Schedule

You will have a more flexible schedule with an online business as it’s not bound by traditional opening and closing hours. It will continue to run even while you're away. This allows you to quickly adjust your schedule during a personal emergency. Opposite to that, you'll be able to work more whenever you have available time. You also decide when to take breaks and work during your most productive hours.

It doesn't matter if you start an online store, create content, or offer services, you'll be able to schedule around your priorities. My local lead generation business gives me the flexibility to focus on improving my skills, working on my online course, and taking care of errands whenever needed.

6. An Online Business Automates Processes

You'll be able to automate a lot of the processes and tasks with an online business. Here are a few examples:

Automating email marketing campaigns. You can set up automatic emails to send to customers. You can also base these emails on their actions, whether they signed up or made a purchase. This saves you time on manual follow-ups.
Using chatbots for customer service. Chatbots can answer common customer questions right away. You can improve customer satisfaction without being available or hiring extra staff.
Scheduling social media posts in advance. You can use tools like Buffer or Hootsuite to schedule posts ahead of time. Your social media stays active even when you're busy with more important tasks.
Streamlining administrative tasks. You can use tools like Zapier or Trello to automate routine admin work, such as organizing tasks, sending reminders, or managing team workflows. You can also hire a cheap virtual assistant to do all these tasks for you and more.
Payment processing and invoicing. Payment systems like PayPal or Stripe can automatically process transactions and send invoices. You'll be able to reduce manual accounting work.

Online businesses are accessible due to their low entry barrier. You don't need a large budget or a physical office. All you need is a laptop, internet access, a solid idea, and the determination to succeed.

7. An Online Business Provides Remote Work Opportunities

With an online business, you get to work from anywhere. This freedom lets you choose the venue that makes you the most productive and satisfied. Shut yourself in a room if you work best alone. If that's not possible, face away from the people and wear noise-canceling headphones. Cafes or co-working spaces are a great option if you need the buzz of other workers around you. You might be someone that needs to move between different locations. Michael Roger, owner of Affiliate Marketer Training, prefers to work while traveling. He manages his affiliate blogs while driving across the U.S. with his dog and trailer van.

I travel a lot, too. The difference is I get to fully enjoy myself without thinking about work once. This is because local lead generation generates passive income.

8. An Online Business Allows Access to the Global Market

An online business gives you access to the global market. Here are some ways this benefits you and your business:

It boosts your income potential. Your online business can sell to people all over the world, not just those nearby.
It reaches and helps more people. You can improve others' lives with your products or services. You'll feel amazing knowing you're making an impact on as many customers as possible.
It provides affordable international talent. You can hire talented workers from other countries at a fraction of the cost. This allows you to save money while still getting top-notch work done for your business.
It can expand your customer base. Instead of relying on one target market, your business can tap into many regions and cultures. When one market slows down, another can pick up the pace. This keeps your business thriving year-round.
It leverages digital marketing for growth. With social media ads and search engine optimization (SEO), you can reach specific audiences across the globe. You can connect with the right customers at the right time.

However, entering a global market also means facing more competition. You'll be up against countless other businesses. You need to find a unique selling point that'll make you stand out. Additionally, you'll need to navigate logistics, shipping, and legal challenges.

9. An Online Business Offers Financial Stability

You can become more financially stable with an online business. As your business grows, it can generate a steady income, which can increase over time. This extra cash can be used to save, pay off debts, or invest in future ventures. There are even opportunities to build multiple income streams and earn passive income.

There's an even higher chance of financial stability if you find the right business model. For example, I rank and rent several service websites to local businesses around the US. I also created an online course about my business model - local lead generation. With these, I’m less affected by financial ups and downs. And since my websites bring in recurring monthly income, I earn without lifting a finger.

10. An Online Business Enhances Your Health and Well-Being

You can focus on your health and well-being if you run an online business. Because of its flexibility, you can avoid commute stress and a toxic work environment. You'll also be able to foster healthier habits, like regular exercise, balanced meals, and better sleep routines. A U.S. Career Institute survey found that 93% say flexible work improved their mental health. Meanwhile, 90% say it has made a positive impact on their physical health as well. A survey by FlexJobs showed more detailed results - 36% reported less burnout, 35% said they ate healthier, and 34% experienced reduced anxiety and depression. Here is the full results list:

However, starting an online business doesn't immediately put you in the flow of things. It may take time to find a balance. Hind Hobeika, the founder of Instabeat, faced mental and physical challenges at first. As a young entrepreneur, the pressure of launching a tech startup began to take a toll on her well-being. Long hours, constant stress, and the uncertainty of building a business left her feeling drained. Hind was able to turn things around by focusing on the very reason she started her business—swimming. She soon realized that adding physical activity to her routine helped ease stress. Swimming allowed her to stay physically fit and mentally clear. This improved her overall well-being, energy, and focus to continue growing.

11. An Online Business Reduces Operational Expenses

An online business reduces operational expenses compared to a physical business. This allows you to free up more money for daily needs and future growth opportunities. Now, you can reduce your operational costs by:

Eliminating rent and utility costs, since you don’t need physical storefronts or office spaces.
Lowering staffing requirements, since fewer employees are needed to manage an online operation.
Minimizing equipment needs by using digital tools instead of physical equipment.
Reducing inventory storage costs, especially through dropshipping or smaller, more flexible storage options.
Automating processes for efficiency saves time and reduces manual labor.
Running the business from home eliminates commuting costs and allows for home office tax deductions.
Using cost-effective digital marketing, such as social media, content marketing, and email campaigns, to reach your audience at a lower cost than traditional advertising.

To compare, a traditional business's operational costs average $43,500 to $199,000 per year. An online business, on the other hand, has an annual average of $18,490 to $100,850 per year.

12. An Online Business Requires Minimal Investment

An online business only needs minimal investment. With lower financial barriers, you can start a business without needing loans. This makes it less risky than starting a brick-and-mortar business. An Ewing Marion Kauffman Foundation found that the average cost to start a business is around $30,000. However, many online businesses report initial investments of less than $5,000. So even if things don’t work out, the financial impact won't be so heavy.

This benefit lets you focus more on growth and innovation instead of costly startups. Take local lead generation for example. All you need to start is around $25-$50 to $100 for web hosting and a website. Once the site generates quality leads through local SEO, you can rent it out for $500 to $3,000 a month. That's already an 80-90% profit margin. Pretty soon, you'll earn enough to expand your online business or launch new products.

13. An Online Business Simplifies Scalability

You can easily scale your online business. It allows you to operate more efficiently, saving time, energy, money, and resources. You can grow your customer base, add new products or services, and enter different markets with few constraints. Here are some reasons why online businesses are so easy to scale:

Digital marketing tools help attract new customers. Google Ads and Facebook Ads Manager can quickly adjust advertising campaigns to target different audiences. This doesn't require extra physical space or staff.
E-commerce platforms provide built-in scalability. Shopify and WooCommerce seamlessly handle increased transaction loads as customer demand grows. These platforms also have integrations to streamline logistics, payments, and marketing efforts.
Automation reduces manual labor. You can automate order processing, customer service, and inventory management.
Cloud services give you flexible options for storing and managing data. There's no need to invest in expensive hardware for expansion. Instead, flexible cloud services will adapt to your needs.
Performance marketing maximizes budget efficiency. You only pay per lead, click, or conversion. This allows your marketing campaigns and budget to be super effective and efficient.
Product testing is quick and adaptable. A/B testing allows you to try different options and make quick changes. You can adapt to market needs and improve your products without a long development cycle.
Global reach is achievable with minimal effort. Translation services and localized marketing strategies make it easy to enter new international markets.

Scaling my local lead generation business was super easy. I went from earning $2,000 a month to $50,000 a month - and all I needed to do was create more service websites. Sure, I did have to spend time ranking and renting them. However, that only took a few months since I targeted local areas.

14. An Online Business Streamlines Team Management

An online business makes managing a team easy. Virtual collaboration tools can coordinate, track tasks, and manage workflows. This saves time and reduces stress. Here is how a few tools and platforms can help you and your remote team:

Slack, Microsoft Teams, and Zoom offer seamless communication and coordination. Teams can send instant messages for quick chats or make video calls for long discussions.
Trello, Asana, and Monday.com allow teams to track progress, assign tasks, and manage deadlines. The visual task boards and reminders help everyone stay organized across time zones.
Google Drive, Dropbox, and Notion make it easy for teams to share documents, edit files in real-time, track changes, and store files securely.
Viva Engage and Facebook Workplace foster a sense of community within teams. These platforms are often used for bonding activities and informal idea-sharing.
Toggl, Harvest, Hubstaff, and Clockify track working hours and help manage team productivity. They provide detailed productivity reports and allow teams to set goals.
Deel and Gusto handle payroll processing, employee benefits, tax filings, and payments in multiple currencies.

15. An Online Business Cultivates Personal Finance and Investment Opportunities

You'll be able to improve your personal finances and find investment opportunities with an online business. As an online solopreneur, you will learn how to budget, track expenses, and plan profit. These skills aren't just needed for a successful business. They're also essential for everyday life. For example, better money management can help you pay off debts faster and save for big goals, like buying a home.

When you have your money under control, you can plan out other investments, too. Investing in stocks, real estate, or even cryptocurrency will generate additional income streams. This approach leads to even greater financial stability. A Reddit user used this exact strategy. Through their experience, they believe that starting an online business helps you learn where to invest wisely.

16. An Online Business Boosts Income Potential

Your potential income with an online business has no limit. If you stick to a normal 9-5 job all your life, you'll likely face a salary limit. According to Statista, the average salary increase in the U.S. is only 4.6%, barely keeping up with inflation. As for starting a physical business, it comes with high startup and operational costs. Plus, your target market is limited to local customer foot traffic. An online business avoids these monetary drawbacks and helps you earn BIG. This is because:

It has low startup costs
You can reach more customers worldwide
It can operate 24/7 - earning money even while you sleep
It's easy and cheap to add new products and services or scale up
You can run several online ventures for more income streams

There are lots of online entrepreneurs who have reached the six-figure mark. My local lead gen business earns me $50K a month. One Redditor says they hit $100K this year selling products on Amazon. The most successful online entrepreneurs, such as Jeff Taylor and Tim Seidler, have a net worth of millions of dollars.

Sabrina Philipp, a successful online business coach, has managed to earn over $100K a month at just 24 years old. She built her business from scratch, starting with only $800 and scaling quickly by leveraging social media, particularly Instagram, to reach a global audience.

17. An Online Business Offers Flexible Payment Options

An online business improves your life by offering flexible payment options. You'll be able to adapt to customer preferences and manage cash flow better. This is because you can:

Accept various payment methods (credit cards, digital wallets, bank transfers, cryptocurrencies)
Offer installment plans or subscriptions
Enable smooth international transactions
Easily adjust prices or run promotions
Automate billing and invoicing processes

These options boost online sales, improve customer satisfaction, and reduce transaction stress. Including these benefits of online business for customers is crucial. A Baymard Institute research saw 69% of online shoppers abandon their carts due to limited payment options. On the flip side, businesses with many payment options saw a 30% sales increase. Your benefit is that automated systems save time. You can focus on growing your business instead of managing transactions.

18. An Online Business Provides Networking Opportunities

An online business will give you many networking opportunities. Connect with like-minded individuals, potential clients, and industry experts worldwide. Plus, online networking is super convenient. You can interact on LinkedIn, social media, industry-specific groups, online forums, etc. These interactions may lead to more sales, collaborations, partnerships, and new business opportunities.

I met my business partner Dan through his lead generation program in 2014. Through his coaching, I was able to build my local lead gen business from $2.2K to $10K in a year. And I was not silent about my achievements in the group. Dan soon took notice. In 2018, he contacted me to seek my SEO expertise for his program. This has opened a lot of new opportunities and income streams for both of us.

Online Business vs Traditional Business

ONLINE BUSINESS

An online business has lower startup costs, ranging from $50 to $5,000.

An online business allows you to work from anywhere, at anytime.

An online business can serve customers from all over the world.

An online business can expand operations and add new products or services with a click of a mouse.

An online business can automate processes and reduce manual labor.

An online business has easy access to analytics for informed business choices.

An online business has lower operational costs, primarily consisting of web hosting fees, digital marketing expenses, and software subscriptions.

An online business offers many opportunities to leverage digital marketing, boosting brand awareness at minimal cost.

An online business is at risk from cybercrime.

An online business relies on detailed product descriptions, high-quality images, and videos for purchase decisions.

An online business improves customer support by offering 24/7 chatbot services.

TRADITIONAL BUSINESS

A traditional business has higher startup costs with an average minimum investment of $30,000.

A traditional business needs a storefront or office and only operates during business hours.

A traditional business is limited to local customers.

A traditional business often requires significant time and resource investment to scale up.

A traditional business has many tasks that require hands-on management and execution.

A traditional business often relies on manual data collection and analysis to make informed decisions.

A traditional business has higher operational costs, including rent, utilities, and on-site staff.

A traditional business often relies on expensive print ads, billboards, and local promotions due to geographic limitations.

A traditional business is at risk from robberies, floods, and fires.

A traditional business offers tangible products that customers can physically interact with.

A traditional business is often limited to store hours for customer support.

Can You Start an Online Business With No Money?

You can start an online business with no money. This is possible thanks to the many free platforms and tools available. Content-based businesses can create a free blog with Wix (or WordPress for at least $13). You can also post your content on Instagram, Facebook, or TikTok. Search engine optimization (SEO) attracts organic traffic without spending on ads.

You can utilize platforms like TikTok Shop or Facebook Marketplace to sell products. Additionally, Amazon's Individual Seller Plan lets you sell without a monthly subscription fee. Fiverr and Upwork help you find clients for your writing, graphic design, web development, or other services. If you're offering your expertise, use Teachable and Thinkific. These platforms have free plans to create webinars or online courses.

However, if you want to start strong, you might need to invest a small amount - say $100. This can go towards things like a custom domain, hosting, or premium tools to enhance your website. Paid ads help you reach a larger audience faster. One Reddit user started their online business at 17 with just $50. Another spent nothing to promote affiliate links on YouTube. A Quora user added that while starting for free is possible, having expertise is crucial for success.

Is Starting an Online Business Worth It in 2024?

Starting an online business is worth it in 2024 as the digital market is booming. In the U.S. alone, 53% of consumers buy products from the Internet at least once a week. 52% don't care whether these come from national or international sellers. This shows that there's a consistent demand for online products and services. An online business can turn this digital trend into limitless profits.

However, you need to be willing to put in the time and effort to succeed. You should also have a great business idea that you're passionate about. This is because, while an online business has many benefits, it isn't a get-rich-quick scheme. Success takes time. Determination and passion allow you to push through the hard work and long hours.

What is the Best Online Business To Start in 2024?

Local lead generation is the best online business to start in 2024. This business model stands out for several reasons, including:

A low entry barrier. You only need very basic knowledge about building a website and local SEO. Other online businesses, like offering a service, usually require specialized skills and expertise.
Few risks. Although many online businesses have low startup costs, local lead gen is less risky. It's easy to determine whether it's worth continuing after 2 to 6 months. Plus, you can quickly build 10 websites for various niches and locations. At least one will see success in the worst-case scenario.
Less competition. The global digital market is growing every year. More and more online businesses are popping up. New entrepreneurs must find an excellent unique selling point to stand out. Local lead gen, however, focuses on local markets. You're competing against small, local businesses who often don't know about online presence.
Eager clients. With so many options online, it's hard to get someone to buy your products or services. But with local lead gen, you're targeting home service owners actively seeking more leads. Because you're offering something they highly need and is hard to get, they’re more likely to say yes.
Passive income potential. Sure, many online businesses have high-profit margin potential. Local lead gen takes it a step further with passive income after a while. Since you're renting out websites, you'll earn a steady income stream every month.
Easy scalability. You can scale up this business model by creating even more service websites. There's no need to find new products or services to offer or manage additional inventory.
The satisfaction of helping others. Small home service business owners work extra hard to help homeowners. Supporting them by providing a steady stream of leads is more satisfying than other online business models.

With local lead generation, you create home service websites, such as plumbing, cleaning, or HVAC, for specific areas. You then rank the website through local SEO best practices. When it starts getting organic traffic, you find a local home service business in that area and rent it to them.

Take it from me. I've tried and tested many other online businesses - dropshipping, Amazon FBA, and affiliate marketing. While you can succeed and earn big with those, I found local lead generation to be the most rewarding. You can earn $500 to $3,000 per website each month. Today, I get a monthly income of $50,000.

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Ippei Kanehara

Founder/CEO

$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2024, is to build your own lead generation business.