How To Start an Online Business as a Student (3 Business Ideas For Students in 2024)

August 9, 2024

To start an online business as a student, you must: 

  1. Plan out a business idea
  2. Research about your product or niche
  3. Identify your target market or audience
  4. Develop your brand
  5. Establish an online presence
  6. Invest in customer service

Starting an online business as a student can be an incredibly rewarding and educational experience. Not only does it provide an opportunity to earn extra income, but it also allows you to gain valuable skills that can be beneficial in your future career. According to a survey by Junior Achievement USA, 41% of teens are interested in starting their own business. It indicates a growing trend among young entrepreneurs. With the rise of digital technology and the increasing accessibility of online tools, students today have more resources than ever to launch and grow their own businesses.

For instance, Shopify highlights that dropshipping requires minimal upfront investment, making it ideal for students. Social media management is another viable option, as Sprout Social notes that 73% of marketers find social media marketing effective, showing strong demand for skilled managers. Freelancing, especially in writing, graphic design, or web development, is also popular among students. Statista reports that 50% of US freelancers are aged 18 to 22.

This article will guide you on how to start an online business as a student with six actionable steps. It discusses each step, explaining how to execute it and providing expert insights on the importance of it before starting an online business. Additionally, this article offers some online business ideas you can start while you are in school. Lastly, we will introduce you to a business model that may be best for you, as it requires minimal upfront investment, low maintenance, and can generate a monthly passive income.

1. Plan Out a Business or Startup Idea

Planning out your small business idea is the first step and most essential element in starting a business. The best way to go about this is to identify a problem or a need. For instance, you might notice that none of the businesses in your community have ads in place, nor do any of them have an online presence. According to a local business survey conducted by the Small Business Development Center, nearly 60% of small businesses in local communities lack a robust online presence. From there, starting a local advertising agency or offering social media management services may be a good business idea for you.

Another online business idea would be to capitalize on a skill that you may have such as becoming a freelance writer focused on email marketing, starting a career in video editing, or picking up graphic designing and looking for clients online. For example, a report by Upwork highlights that freelance writers specializing in email marketing can earn between $30 to $50 per hour, making it a lucrative option for those with strong writing skills.

At the end of the day, planning out a business idea depends on how much time and effort you’re willing to put, which is why it’s advisable to select an idea or niche that you’re passionate about. Entrepreneur and author Gary Vaynerchuk emphasizes that passion is a key driver for long-term business success, as it helps sustain motivation and creativity.

Here are some questions you can ask yourself when planning out a business strategy:

  • Why do I want to start this business?
  • Am I passionate about this business?
  • Will this business become profitable in the long run if I put in the work?
  • Am I ready to invest a lot of time, effort, or even money in making this business successful?
  • What problems or issues am I addressing with this business?
  • What needs am I satisfying with this business?

You can even go the extra mile and take a business course to help you accelerate your online learning regarding launching a business. However, be sure to find an online course that will give you the best value instead of jumping the gun on the first one you see. Platforms like Coursera and Udemy offer specialized courses in entrepreneurship and small business management, often taught by industry experts and successful entrepreneurs.

Starting an online business as a student can be challenging, but with the right approach, it can also be incredibly rewarding. According to Roger Martin of Harvard Business Review, understanding the difference between planning and strategy is crucial for success. Planning involves listing activities within your control, like setting up a website or ordering supplies, which can be comforting but often lacks depth. In contrast, strategy is about making integrative choices that position you to win in a competitive market.

For your online business, this means identifying a unique value proposition and target market, such as eco-conscious consumers for handmade jewelry. Your strategy should be coherent, actionable, and adaptable based on customer feedback and market trends. Robert believes in keeping your strategy simple and focused. He suggests laying out your strategy on a single page, clearly outlining where you will compete, how you will win, the capabilities you need, and your management systems.

2. Research About Your Product or Niche

Researching about your product or niche is essential before you even start selling or offering services. Not only does this allow you to identify your strengths, it also helps you pinpoint your weaknesses and how you can further improve and get ahead of the competition. According to the U.S. Small Business Administration, thorough market research can help new entrepreneurs reduce risks by understanding customer needs and market trends.

For instance, offering online tutoring services will inevitably appeal to people who are struggling academically. A study by the National Tutoring Association found that personalized online tutoring can improve student performance by up to two letter grades. However, you must take into consideration several factors that could negatively affect your business such as internet connectivity issues, hardware failure, and many others. For example, a survey by the Pew Research Center revealed that 15% of households with school-age children do not have high-speed internet at home, which can be a significant barrier to effective online tutoring.

There might also be issues on your students’ end such as unavoidable distractions, lack of focus, technology-related problems, and many others that could be detrimental to the success of your online tutoring business. According to a report by Common Sense Media, students in online learning environments are more likely to face distractions from social media and other digital platforms, which can impact their learning outcomes.

Here are a some steps you can take when researching about your product or niche:

  • Define what you want your product or service to be: Identify what features you want to include, what pricing plans you want to set up, what variants you want to provide, and everything else that needs to be determined regarding your product.
  • Gather and analyze consumer data: See if you can gather any data concerning your product such as buying patterns, consumer trends, product insights, client feedback, and many others. 
  • Use gathered data for product development: Once you've identified consumer patterns and insights, use the data you've gathered to further refine your product and let it dictate product development decisions moving forward.
  • Calculate costs and revenue: Determine how much you will have to spend in development, production, and marketing. Not only will this allow you to devise a pricing scheme, it will also help you estimate revenue and profit for each product sold.

More often than not, a successful business does not focus solely on highlighting its strengths, but also finds ways to overcome its weaknesses.

When starting an online business as a student, researching your product or niche is crucial. According to Adam Erhart, effective market research is the foundation of a successful business. He emphasizes five proven, fast, and free strategies to conduct market research.

First, leverage Amazon or other online book retailers to explore books in your niche. The titles, descriptions, and reviews provide insights into customer interests, pain points, and competitor strategies. Use this information to refine your customer avatar, a detailed profile of your ideal customer based on demographics, psychographics, and behaviors.

Adam also recommends utilizing tools like "Think with Google" and "Google Trends." "Think with Google" helps you understand audience segments and their interests, while "Google Trends" provides a high-level view of current and historical interest in your industry. Additionally, conducting competitor research is crucial. Identify your direct and indirect competitors, analyze their content and strategies, and learn from their successes and failures.

3. Identify Your Target Market or Audience

Identifying your target market and conducting the appropriate market research before launching your business puts you in a position to sell more efficiently because it allows you to connect with your potential customer base. According to the U.S. Small Business Administration, businesses that invest in market research are more likely to understand their customers' needs and preferences, leading to higher customer satisfaction and loyalty.

It also saves you time by helping you distinguish those who are interested in your product or service from those who are not. You wouldn’t want to sell to someone that is obviously not interested in your product, right? For example, a report by HubSpot highlights that targeted marketing campaigns can increase engagement rates by up to 50%, as they focus on individuals who are more likely to be interested in the product or service.

For instance, if you’re planning to set up an online store that dropships baby food, the most cost-effective approach would be to target young adults and between the age of 25 to 39 since it is more likely that people within that age range have babies. According to a study by the Pew Research Center, the majority of new parents in the U.S. fall within this age range, making them the ideal demographic for baby-related products.

Here are some guidelines to help you identify your target market or audience:

  • Customer demographics: Collect and gather information regarding your potential customer base such as age, gender, educational attainment, and many others.
  • Customer psychographics: While this segment isn't as common as other market identifiers due to it's complexity and difficulty to gather, having this kind of information will largely boost your market research since it help you understand the values, interests, and behaviors of your potential customer base.
  • Customer personas: Customer personas are representations or imaginary versions of your potential customers. These are extremely helpful in understanding your potential customers and how they plan to use your product or service.

Here are other market segments to consider when identifying your target audience:

  • Geographic location
  • Income level
  • Marital status
  • Race & ethnicity

There are very few products and services that appeal to everyone in the world, which is why identifying your target market is a vital aspect of launching a business. It would be a waste of time and money to try and target absolutely everyone.

According to Adam Erhart, effective market research helps you understand who your ideal customers are and how to reach them. He suggests using a simple market research framework with five simple questions to find the best customers for your business. First, identify the problem your best customers have that you can uniquely solve, whether because of your experience, knowledge, or passion. Ensure these customers are willing and able to take action to solve their problem, meaning they are ready to buy your product or service. If you have some sales, analyze your top 20% of customers to find common traits like age, gender, and location. If you're just starting, make an educated guess about who your ideal customers might be, considering their demographics, interests, and behaviors.

Additionally, if you have different types of customers, segment them into groups and tailor your message to each group's unique needs and pain points. By following these steps, you can develop a clear and focused marketing approach that resonates with your target audience, helping your online business stand out.

4. Build Your Brand

Your brand will serve as the face of your business, which is why it is important to spend a significant amount of time building and developing your brand identity. According to a study by the University of Loyola, color increases brand recognition by up to 80%, highlighting the importance of choosing the right colors for your brand.

Take for example the branding of McDonald’s. Whenever we see those golden arches, we instantly associate it with the fast food chain because we know that it belongs to them and no one else. Their branding is so powerful that almost anyone can easily spot and recognize their logo from a mile away. In fact, a survey by the American Marketing Association found that McDonald's golden arches are recognized by 94% of the global population, demonstrating the impact of strong brand identity.

Your branding is what will serve as a bridge between you and your customers. If your branding does not appeal to your potential clients, how do you expect them to even purchase your product or avail of your service? A report by Lucidpress indicates that consistent branding across all platforms can increase revenue by up to 23%, emphasizing the importance of a cohesive brand identity.

Here are some branding elements to keep in mind when developing your brand identity:

  • Your logo: Arguably the most important aspect of your brand identity. Think of your logo as your face. Your face is what people will remember whenever they meet you for the first time. People know you by your face, not by the color of your shirt or the tone of your voice. According to a study by Siegel+Gale, a simple and clear logo can improve brand recall by 13%.
  • Typography: The fonts and typefaces you use will inevitably set the tone and mood of your brand. For example, if you’re going for a more serene vibe, it would make more sense to use a font that is light and relaxed instead of a font that is heavy and bold. A research paper from MIT found that typography can influence readers' emotions and perceptions, making it a crucial element in brand identity.
  • Colors: The colors you choose will serve as the “personality” of your branding. If you want your brand to be loud and expressive, you could use bright colors such as red, orange, or yellow. If you want a color that is calm and peaceful, examples of appropriate colors would be green, blue, and purple. According to Colorcom, colors can evoke specific emotional responses, which can significantly impact consumer behavior and brand perception.

These elements should all be working in harmony to create a brand identity that appeals to your customer base and resonates with them.

Building your brand is crucial for your online business success as a student. Gary Vaynerchuk highlights that attention is key to achieving your goals, whether selling products or raising awareness. In the past, gaining attention required expensive ads in newspapers, TV, and billboards. Today, social networks offer free attention on platforms like Instagram and TikTok.

Gary stresses the importance of consistently creating and sharing content on social networks. Most people don't produce enough content to seize the opportunities for free attention. Building your brand means understanding where the attention is and creating engaging content. Focus on the "science of the art"—optimize thumbnails and refine your messaging. By leveraging social media effectively and continuously improving your strategies, you can build a strong, recognizable brand that drives your online business forward.

5. Establish an Online Presence

Establishing an online presence is extremely important because without it, how else is your online business going to exist? This typically includes creating a website with an ADHD-friendly profile, setting up accounts and/or pages on social media, and many others. According to a report by the Pew Research Center, 81% of Americans go online daily, making a strong online presence crucial for reaching potential customers.

Your website should be professional and easy to navigate, with clear information about your products or services. A study by Stanford University found that 75% of users judge a company's credibility based on its website design, emphasizing the importance of a well-designed site. Your social media accounts, on the other hand, should be active and engaging, with regular updates and interaction with your followers. According to Sprout Social, businesses that engage with their customers on social media see a 20% to 40% increase in customer spending.

Creating high-quality content, such as blog posts, videos, or infographics, can also help establish your business as an authority in your niche and attract more customers. HubSpot reports that companies that blog receive 55% more website visitors than those that do not, highlighting the value of content creation.

Your online presence will also be largely supplemented by your marketing and advertising campaigns. You can do this through the use of:

Search Engine Optimization

Search Engine Optimization, also known as SEO, is the process of growing or ranking your website in order to gain organic traffic. SEO can be accomplished through the use of a variety of methods such as:

  • Keyword research: Keyword research is the process of finding out the best keywords and search terms to include in your website content in order to drive organic traffic. Typically, this can be accomplished using SEO tools such as Ahrefs Keywords Explorer, Google Keyword Planner, Moz Keyword Explorer, and many others.
  • Internal linking of a related article or webpage: Internal linking is the process of creating hyperlinks from one page on your website to another webpage that’s also located on your website. This is important because it allows Google to discover other pages of your website faster once it reaches one of your webpages. It also increases the chances of users choosing to navigate within your webpage instead of leaving.

Keep in mind that even though SEO is completely free, it will take some time before you see results.

Paid ads

Paid ads are a type of advertising where you pay in order to be seen. Unlike SEO that typically takes weeks, or even months, before gaining traction, paid ads almost instantly pushes your website to the top of Google’s results pages.

Examples of popular paid ads include:

  • Pay-Per-Click or PPC: PPC is a paid advertising model where the advertiser pays for each time their ad is clicked. Examples of platforms that use PPC include Amazon, Google, and YouTube.
  • Social Media Marketing: Social media marketing is a form of advertising that uses social media platforms to market products and/or services. The most common social media platforms that provide advertising are Facebook, Instagram, and Twitter.
  • Influencer Marketing: Influencer marketing is the process of partnering or collaborating with an influencer or celebrity and asking them to promote your product or service in exchange for free product samples or monetary payments.
  • Ad Retargeting: Ad retargeting is an advertising scheme that allows you to display ads that are targeted towards users that have already seen your product or service but was not converted to a sale.
  • Affiliate Marketing: An advertising method where an advertiser pays a certain amount of money for traffic that is generated by an external affiliate. These can either be websites or just ordinary internet users.

While paid ads might seem like a surefire way to quickly gain traction, you might incur a lot of ad spend and costs could quickly pile up if not managed properly.

According to Consumer Insights, a robust online presence allows you to reach a wider audience, build brand awareness, and increase your customer base. Start by creating a professional website, which serves as your business's online home. Tools like Taylor Brands can help you build a cohesive and attractive website quickly. Next, set up your social media pages with consistent branding. Use your logo as the profile image and create content that aligns with your brand. Taylor Studio can assist in generating high-quality social media content effortlessly.

Additionally, get listed in local directories like Google My Business to appear in local search results. This is especially important for local businesses but beneficial for all. Consider other directories such as Yellow Pages, Yelp, or Foursquare to enhance your online visibility further. These steps will help you build a strong online presence, making it easier for potential customers to find and engage with your business.

6. Provide Excellent Customer Service

Excellent customer service is important for any business because it is the foundation of any successful transaction. It ensures that both the customer and the service provider are satisfied with the outcome of a transaction. According to a report by American Express, customers are willing to spend 17% more on a company that provides excellent customer service, highlighting its impact on revenue.

Even after a client sends their payment, a transaction never truly ends because they can become lasting relationships, built on trust, respect, and mutual understanding. A study by Bain & Company found that increasing customer retention rates by just 5% can increase profits by 25% to 95%, demonstrating the financial benefits of maintaining strong customer relationships. Additionally, a survey by Zendesk revealed that 87% of customers share good experiences with others, which can lead to valuable word-of-mouth referrals.

Here are a few reasons you should give importance to providing excellent customer service:

Customer satisfaction and loyalty

Customer satisfaction and loyalty is what will ultimately determine whether your clients will become satisfied repeat customers, or dissatisfied angry ones. Providing excellent customer service is one of the best ways to ensure that your customers are always satisfied, even when your products fail to deliver. According to a survey by HubSpot, 93% of customers are likely to make repeat purchases with companies that offer excellent customer service.

Keep in mind that having a business idea that sells does not guarantee that your clients will keep coming back. Rather, it is excellent customer service that ensures your clients will stick around and continue doing business with you. A report by the Harvard Business Review found that emotionally connected customers are more than twice as valuable as highly satisfied customers, emphasizing the importance of building strong relationships through exceptional service.

Customer satisfaction and loyalty can also lead to clients recommending your business to their family and friends, which inevitably leads to more sales and revenue. A Nielsen study found that 92% of consumers trust recommendations from friends and family over any other type of advertising, making word-of-mouth referrals a powerful tool for business growth.

Competitive advantage

Having a competitive advantage is crucial in today’s competitive business environment. Having a product or service that sells simply won’t cut it. Customer service has been a huge difference maker when it comes to running a successful business. According to a report by Deloitte, 62% of companies view customer experience delivered by their contact centers as a competitive differentiator.

For instance, if company A and company B both sell the same exact product, but only company B offers exceptional customer service, customers are more likely to conduct business with company B since they provide more value for money by taking good care of their clients. A study by PwC found that 73% of consumers point to customer experience as an important factor in their purchasing decisions, even more than price and product quality.

Positive reviews

Positive reviews are incredibly important when running an online business. According to a study by PowerReviews, over 99% of customers take the time to look at reviews before they purchase a product or avail of a service.

Reviews can be a make-or-break factor in determining the success of your business. Clients would rather buy from a store that has mixed reviews than a store that doesn’t have any reviews at all. A survey by BrightLocal found that 91% of consumers trust online reviews as much as personal recommendations, underscoring the importance of maintaining a positive online reputation.

Here are a few reasons why positive reviews are extremely crucial when it comes to starting an online business:

  • Increased Credibility: Positive reviews help build credibility for your business. They act as social proof that your products or services are worth buying and that other people have had a good experience with your business.
  • Boost in Sales: Positive reviews can also help boost your sales. When potential customers see positive reviews, they are more likely to make a purchase, as they feel more confident that they will be satisfied with their purchase.
  • Improved Search Engine Rankings: Positive reviews can also help improve your search engine rankings. When people leave positive reviews for your business, it signals to search engines that your business is legitimate and reputable, which can result in higher rankings for relevant search terms.

3 Online Business You Can Start as a  Student

1. Social Media Management

Social media management is the process of handling the social media profile of a business or company and helping them build a community online, especially on platforms such as Facebook, Instagram, Twitter, and many others. According to Hootsuite, businesses that actively engage on social media see a 20% increase in customer satisfaction, highlighting the importance of effective social media management.

If you’re a student who uses social media regularly, the idea of becoming a social media manager might sound like a good idea. Instead of scrolling mindlessly for hours on end, being a social media manager allows you to become active on your favorite social media platform while making money at the same time. For instance, a survey by Sprout Social found that 73% of marketers believe that social media marketing has been "somewhat effective" or "very effective" for their business, indicating a strong demand for skilled social media managers.

Here are some of the tasks that are expected of a social media manager:

  • Devising a social media campaign or marketing strategy that includes daily social media posts, advertising schemes, interactive polls, and many others.
  • Responding to messages, comments, and inquiries.
  • Identifying trends in user engagement and interaction in order to expedite social media growth and development.
  • Neutralizing any potential threats that could disrupt social media presence.

However, being a social media manager still has its fair share of risks and disadvantages that you need to consider before you begin your social media management journey. According to a report by Buffer, common challenges include staying updated with constantly changing algorithms, managing negative feedback, and maintaining a consistent posting schedule, which can be time-consuming and stressful. Additionally, a study by the Social Media Examiner found that 64% of social media managers struggle with measuring the ROI of their efforts, making it crucial to develop strong analytical skills.

Pros

High demand: According to Social Media Examiner, 90% of businesses around the world use social media for their operations and say that social media plays an important role in driving sales and revenue. A study by LinkedIn shows that social media management is the third most in-demand category under the digital marketing space.

Flexibility: Being a social media manager does not require you to sit in an office for 8 hours and clock out once you’re done. Rather, social media management can be done remotely, at any time, which makes it perfect for students who have to spend some time doing schoolwork and other extra curricular activities.

Little to no startup costs: Being a social media manager requires nothing but a computer and a stable internet connection, which are two things that most students have in this day and age. Some social media management tasks can also be done using a smartphone alone.

Cons

Intense competition: According to Zippia, there are close to 30,000 social media managers in the United States alone, which gives us reason to believe that there are more than a hundred thousand social media managers scattered across the globe. With this amount of competition, you will have to find a way to make yourself stand out and be noticed.

Constantly evolving technologies: One of the biggest pitfalls of being a social media manager is having to deal with a lot of changes and updates that are constantly being rolled out by social media developers. Whether it be newly-added features or algorithm modifications, being a social media manager means being updated with the latest trends and staying ahead of the curve.

High pressure: As a social media manager, you are literally the first line of defense when it comes to managing the online presence of a business or company, which can cause a lot of pressure and stress. Not only do you represent your client, you are also expected to handle complaints and protect their online reputation on a regular basis.

2. Dropshipping

Dropshipping is a business model which involves shipping a product directly from a supplier or manufacturer to the customer. Unlike traditional retailing where you have to store your products yourself and ship them out for every order, dropshipping does not require you to hold any inventories. According to Shopify, dropshipping allows entrepreneurs to start a business with minimal upfront investment, making it an attractive option for students.

Instead, you act as a middleman and simply order from a manufacturer every time someone places an order. Not only does the manufacturer manage stock-keeping for you, they also handle shipping and logistics. A report by Oberlo highlights that dropshipping can save up to 30% on operational costs compared to traditional retail models.

There is absolutely no age requirement when it comes to starting an online shop. Anybody can set up their own store online, no matter how young they may be. If you’re a student that’s looking to make money by selling products online, dropshipping might be for you. For instance, 16-year-old entrepreneur Ben Pasternak started his own dropshipping business while still in high school, eventually leading to the creation of multiple successful ventures.

However, even though becoming a dropshipper might sound like a great idea for students who are looking to make extra income while studying, there are also risks and drawbacks that need to be considered before any decisions are made. According to a study by eCommerceFuel, common challenges in dropshipping include supplier reliability, product quality control, and thin profit margins, which can impact the overall success of the business.

Pros

Low startup costs: Since you’re not going to be building a warehouse and managing inventory, you’re practically not going to be paying for any infrastructure. You won’t have to purchase and store products since you’re only going to order from your supplier every time a customer places an order.

Shopify also offers a free 90-day trial period that can help you build your own online store and get settled before they begin charging fees.

Flexibility: You can manage a dropshipping business from anywhere in the world, at any given time. You do not need to work 8 hours a day, nor are you required to clock in and out of an office. This can be perfect for students who are busy with school and are looking to run an online business from the comfort of their own room.

Wide range of products: As a dropshipper, the sky’s the limit when it comes to the kind of products you can sell. From the most bizarre products to everyday household items like toiletries and kitchen silverware, there are no rules or guidelines as to what you can offer to your customers.

Cons

Oversaturation and competition: Dropshipping in 2023 could still be profitable, but it isn’t as easy as it was a few years ago. As of 2022, there are approximately 100,000 dropshippers around the world, and that number is expected to keep growing in the years to come.

You also have to consider that almost every product known to man has been dropshipped or is being dropshipped already. Unfortunately, the reason why dropshipping is very easy to start is the same exact reason it becomes saturated so quickly - it’s easy to start and there are low barriers to entry.

Little to no control over your products: As convenient as it may be to not store any inventory, the same cannot be said when it comes to making sure your products are properly managed. Since your product will be shipped directly from the manufacturer to your customer, you won’t be able to check the quality of your products, nor will you even be able to ensure that the right product was sent.

As a result, your clients might receive wrong, defective products. You also have absolutely no control over the availability of the products you’re offering, as well as the shipping time from your supplier to your client, which can pose serious risks in the long run.

3. Freelancing

Freelancing is a business model where you provide services for clients and get paid for every task you finish. Instead of being tied to one company and working long hours day after day, being a freelancer allows you to follow your own schedule and work anywhere. A report by Upwork indicates that freelancers can often command higher hourly rates than their traditionally employed counterparts, providing a lucrative opportunity for skilled individuals.

Freelancing has been around for quite some time now, but the appeal to be a freelancer has resonated mostly with young individuals. According to a study conducted by Statista, 50% of freelancers in the US are mostly aged 18 to 22, reflecting the growing trend among younger generations to seek flexible and independent work arrangements. For example, platforms like Fiverr and Upwork have seen a significant increase in young freelancers offering services ranging from graphic design to digital marketing.

Moreover, a survey by Freelancers Union found that 64% of freelancers choose this career path for the flexibility it offers. It allows them to balance work with other commitments such as education or personal projects. This flexibility and independence make freelancing an attractive option for young individuals looking to gain experience, build their portfolios, and earn income on their own terms.

Here are examples of the most common freelancing services being offered around the world:

  • Writing or content marketing
  • Graphic design
  • Video editing
  • Marketing (Running Google ad/s, drafting a business plan, creating marketing campaigns, etc.)
  • Translation
  • Web design
  • Virtual assistant services

Working as a freelancer might be the most popular business idea for students in this day and age. However, just like any other business or profession, freelancing has its own set of pros and cons.

Pros

Flexibility: Flexibility is one of the biggest benefits of freelancing as a student. You can work whenever you want as long as you have access to the internet. Students who have other commitments, such as classes, studying, or extracurricular activities, may largely benefit from this. You can work when you want to and at your own pace when you freelance.

More clients, more money: The opportunity to make extra money is one of the biggest selling points of freelancing. Unlike traditional full time employees, freelancers can work for multiple clients at once, making more money in the process. You can also set your own rates and demand higher pay once you gain enough experience.

Skill development: You can acquire a wide range of skills through freelance work that can be useful in any career. Project management, client communication, and multitasking are just a few examples of the skills you can obtain once you begin freelancing. You can use these skills to stand out in the job market and apply for a wide range of jobs.

Cons

No guarantee of work or income: Being a freelancer means not having a stable source of income since you won’t be working full time for a company that pays you a monthly salary. It's possible that you won't always be able to get customers and that you won't always be able to make as much money as you need to pay your bills. Students living on a limited budget might find this challenging.

Difficulty in building your reputation: Becoming highly motivated to find your first freelancing job isn’t guaranteed to help you land your first client. Instead, you will have to build a reputation and skillset that will help you stand out from thousands of other freelancers across the globe. Unfortunately, this means taking low-paying jobs at the start of your freelancing career.

Lack of benefits: As a freelancer, you will have to be in charge of taking care of your own benefits, such as retirement savings, health insurance, and many others. Unlike full-time employees where benefits are typically provided by their employer, freelance clients will not offer benefits to you.

You will need to ensure that you are planning for your retirement and taking care of your own healthcare as a freelancer.

Are There Online Businesses You Can Start With No Money As a Student?

Yes, there are several online businesses you can start with no money. If you have a knack for social media or SEO, you can dive into digital marketing and offer your services to small businesses. Freelancing is another great option. You can use platforms like Upwork or Fiverr to offer your writing, graphic design, or programming skills. Dropshipping allows you to sell products online without holding any inventory, while affiliate marketing lets you earn commissions by promoting other people's products. Also, starting a blog can be a fantastic way to generate income through ads and sponsored content. Lastly, you can become a community manager for online forums or social media groups. These ventures require minimal to no upfront investment, making them perfect for students like you.

Is It Worth It to Start an Online Business As a Student?

Yes, starting an online business as a student is worth it because it's a great way to jumpstart your journey to independence and financial freedom. Not only will you be able to develop skills and knowledge that will prepare you for the real world, you will also be able to earn and save money even at a young age.

However, the desire to make money and attain financial stability early should not be a hindrance to your academic performance. One could argue that a college degree is not a guarantee that you will be successful, but that doesn’t mean you should start skipping school, especially if you live in a country where a degree is required in almost every job.

You should also be careful not to be enticed by success stories of high school dropouts attaining financial stability and freedom. Their success may have been laid out by a handful of factors and circumstances that simply do not apply to everyone. What happened to them may not necessarily happen to you. Moreover, starting an online business as a student should serve as preparation for your future career, not a reason to forego college and let go of your academics altogether.

Conclusion: Why Local Lead Gen Might Be the Best Online Business To Start as a Student?

Local lead gen might be the best online business to start as a student as it helps you generate significant passive income, even at a young age. With local lead generation, all you have to do is build a website that ranks in accordance to Google’s algorithm. You can do this by applying best SEO practices that will help your website generate organic traffic.

Once your website is ranked, you can start allowing local businesses and companies to generate leads through your website. All you have to do is sit back and watch as the money comes in for each converted sale. Local lead generation also requires little to no maintenance at all. I have websites from 2014 that are still generating over $3000 for me every month, and I don’t even have to touch them. This is especially perfect for students who are looking to make money passively while studying.

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If you’re a student that’s looking to generate income while still being able to focus on things that really matter, local lead generation might be the best business idea you never knew you needed.

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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.

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