What’s It Going to Cost to Do Business Online?
The cost of doing business online is about the same as doing business offline, except you typically don’t have the usual overhead expenses like office rent, insurance, payroll, etc. (I’m referencing businesses where the brunt of your business is done virtually with delivering a service or product without the need for storage or employees). Remember, there are expenses with ANY business, but many online marketers happen to prefer the online method because operating costs are significantly less and you can get started creating an income much quicker than with traditional offline methods.
I’m going to outline a few of the expenses you can expect to incur with most any online business. Everything you do to start your business online is going to cost you, whether it’s in money or with your time, or both. But, you have to decide for yourself what and where you want to spend your time and money, and if your actions get you closer to your overall business goals.
My blog setup posts series gives you a step-by-step guide in setting up your online business blog. The posts take you through the entire process of setting up your blog property yourself instead of paying someone else to do it for you. You’ll learn how to write effective blog posts, draw traffic to your site and make money in the process.
Some of the following expenses are optional but advantageous for any online business. Some of the costs are non-negotiable, meaning that you can’t effectively do business online without this particular tool. So, let’s get started and take a look at some of the things you’ll need when setting up your online business:
1. Purchasing a Domain Name
Your domain name is your online business name. Buying domain names vary in costs from one provider to another, but generally run between $10-12 per year. I’ve used Bluehost (since 2006) and GoDaddy (since 2010) for purchasing my domain names, but any site that you prefer to use is perfectly fine. I also use NameCheap and Bust-a-Name to brainstorm in finding suitable domain names and combinations.
Cost: $10/year
2. Web Hosting
Once you have a business domain name, you’ll need somewhere for that business to operate. It’s kind of like buying a shingle (domain name) and then finding a building (web host) to hang the shingle. The hosting provider keeps your blog up and running on the internet. This cost also varies, but you can expect to spend about $10-15 per month to host your blog, depending on your selection and what features they offer. If you ever decide to cease your hosting service at any point, most providers offer a 90-day money back guarantee. For me, yet again Bluehost is my web host of choice. I’ve been with them since 2006, have experienced very little down time or problems. But, for you to be totally comfortable in what will be a long-term relationship, be sure to shop around, ask questions and get what you’re looking for and what will match your needs.
Cost: ~ $14/month
3. The Content Management System (CMS)
You can use either a free CMS like Blogger where you set up your blog to run on the free site. Or, you can use the WordPress CMS (I’ve always used this). WordPress is free when you download to your site. (See my lengthier post on the free vs. the self-hosted blogs.)
Cost: $0/month
4. Purchasing or Using Free Themes
Many themes are free with WordPress downloads, but can be limiting. However, there are also premium WordPress themes available from an assortment of online vendors for different prices that you can use to enhance your site. A couple of sites to look at for premium themes is Elegant Themes (which have a wide assortment of themes that are compatible with WordPress) and Studiopress Themes, (which is what I use to build my own site and client sites). The right theme can do wonders for your site.
Cost: $0/month (value: $300)
5. Free or Paid Plugins
There are several free and very few paid plugins that you’ll need. Most everything you need is free, and I’ll show you the most important ones that you’ll need to download to your WordPress site, including the best ones for security, backups and data tracking. There are other fee-based keyword trackers (Long Tail Pro, Market Samurai, etc.) that can significantly enhance your keywords and blog content, but you won’t have to be concerned with that if you’re just getting started and want to just get good content up. This is something to consider in the future, once your blog is more established.
Cost: $0/month
6. Automated Software
Depending on what you’re selling or offering, you’ll want to be sure to automate your process as much as possible. That means Ecommerce functions, email marketing software (Aweber, GetResponse) or having scheduled blog postings that need to be automated in order to keep you productive and things moving along.
Cost: Can vary ~$20/month
7. Payment Gateways
This is how you’ll get paid! There are an assortment of free portals with different user requirements, but most of them are all free of charge to use (PayPal, E-junkie, etc.). They usually charge a small percentage of each transaction or have a limited amount of monthly transactions per user. I’ll share with you each major one, how to set it up and how to automate it so you can focus on just doing business.
Cost: $0/month
8. Blog Coaching
If you’re new to blogging, you absolutely need guidance or at the very least some type of mentoring system in place. Whether you connect with a blogging group, hire a business trainer, ask a friend or other home-based entrepreneur, make sure you bounce your ideas off of a LIVE person so you can make sure you’re not just spinning your wheels. I’m also offering the option of my own blog coaching services as a part of my blog tutorial series and also as a fellow blogger. For the blog tutorial students, I’ll be offering assessment services free of charge for the entire 6 weeks that the course will be given. I’m going to be available to the students to give tips and answer their questions as they set up their blogs. My personal unlimited coaching services will include Skype (I’m on CST), Facebook and email coaching for any new online marketers who take this course. (Outside of the course, my blog coaching fees are competitive in the market at $35/hour).
Cost: $27/month
You are welcome to use this information as a guide as you set up any website or blog that you already have. Since these are general expenses, remember that as you’re shopping around and getting prices.
