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Which Platform Deserves Your Business in 2023?

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Which Platform Deserves Your Business in 2023?

Are you struggling to decide which e-commerce platform is right for your online business? Choosing between Shopify vs Amazon FBA can be quite challenging, given their individual success and popularity.

Both platforms are indeed thriving:

According to Jungle Scout’s 2023 State of the Amazon Seller, 89% of Amazon sellers are profitable.

Meanwhile, Shopify merchants receive orders from an impressive 457 million buyers each year!

Don’t worry, though – we’re going to break down each platform’s key differences, features, and benefits so you can make an informed choice.

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Shopify vs Amazon FBA: TL;DR

Key Points:

  • With Shopify, you can control your customer data and set up lead capture, email marketing, and abandoned carts (leading to high customer LTV).
  • Shopify gives you more leeway as a beginner. You don’t have to meet strict quality standards, and you don’t have to invest thousands in stock.
  • With Shopify, you can test many different products, so there is less margin of error.
Shopify Amazon FBA
Platform Standalone e-commerce Online marketplace
Customization Options Extensive (more control, design flexibility) Limited (less control over storefront)
Fees Monthly subscription + transaction fees Subscription + referral + storage + fulfillment fees
Unique Revenue Opportunities -Can implement funnels
-Lead capture
-One-click upsell/downsells
-Cart abandonment
-List-building
-Pixel-tracking/retargeting
Pre-existing inbound search traffic
Brand Identity Better for unique brand building Better for leveraging Amazon’s pre-established brand and trust
Skills to Succeed -Marketing skills & conversion optimization.
-Manage every facet of your business yourself, or outsource it
-Keyword research
-Risk management
-Risk tolerance
-Inventory management
-Allowance of a longer window to break-even, profitability
Risk, Inventory, Margins – Less restrictions; beginner-friendly
– Can begin with less investment via dropshipping 
– Can test many products without investing in stock
– More control over your margins
-Requires more investment in inventory; not beginner-friendly
-Lower margins

Shopify Pros and Cons

One of the things I love about Shopify is its customization and branding capabilities. I’ve been able to design my store exactly how I wanted it, which has helped with conversions (I’ve had a lot of success creating high-converting landing pages and upsells with Zipify apps). 

Shopify also allows you to test products with low risk via drop shipping. You only need to invest in stock once you’ve proven that a product can sell.

By comparison, you must invest in stock for Amazon. That presents a sizable risk – what happens if it doesn’t sell?

Shopify also offers me more control over customer data. This is huge, especially when you’re buying traffic. For each visitor that visits my page, I have the opportunity to capture them as a lead.

I can also place a tracking pixel on the page and retarget them. I can’t stress enough how important it is to own your traffic and have access to all that valuable information. 

And last but not least, the variety of payment gateways Shopify offers has been super helpful. It’s given my customers more payment options. 

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Plus, I’ve had the flexibility to choose the payment provider that best suits my needs, and that’s been beneficial for selling “higher-risk” products that may not fly on Amazon.

There are also a few drawbacks to consider. Let me tell you about some challenges I faced regarding marketing and customer support.

One disadvantage of using Shopify is that it does not have the same built-in traffic and customer base as Amazon. While Shopify offers tools to help sellers optimize their stores for search engines, it can be easier to attract customers with the built-in audience that Amazon provides.

I had to learn various skills like:

  • Landing page design
  • Copywriting
  • Conversion optimization
  • Paid ads
  • Email marketing

Also, I had to deal with customer support, which can be time-consuming. So, I hired a professional on Fiverr to ensure top-notch service, which helped save time and let me focus on scaling.

One of the aspects that concerned me was the need for more control over quality and fulfillment with the dropshipping model. 

It’s possible to address this concern by teaming up with a fantastic supplier. We’ve ensured that product quality remains top-notch and fulfillment runs seamlessly.

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In addition, by staying vigilant about quality control and shipping times, I minimized nasty chargebacks and kept customers happy.

Amazon FBA Pros and Cons

Which Platform Deserves Your Business in 2023

Here’s how Amazon FBA works:

When a customer places an order, Amazon handles the packing and shipping of the product. As a result, sellers don’t have to worry about storing inventory or fulfilling orders themselves – that’s all handled by Amazon’s network.

Amazon has a vast customer base (300 million active users worldwide) that can be difficult for individual sellers to reach independently. 

In addition to access to a large customer base, using Amazon FBA also offers Prime eligibility for products. Prime members receive free two-day shipping on eligible products, which can increase visibility and sales for those items.

However…

Despite these benefits, there are also some drawbacks.

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For example, restrictions limit certain products sellers can offer through FBA. In addition, sellers must adhere to specific labeling requirements and ensure that their products meet certain standards before Amazon’s fulfillment center stores them.

FBA sellers are also subject to Amazon’s policies and decisions, which can be unpredictable. For example, Amazon may suspend a seller’s account without warning or remove a product listing if it violates terms of service.

Using FBA means that sellers have less control over customer data. This can make it challenging for sellers to build customer relationships outside the Amazon platform.

Lastly, competition is fierce on Amazon. Millions of third-party sellers are vying for buyers’ attention, so it’s easy for your products to get lost in the crowd.

Therefore, you must invest in stock to maintain your margins and sell competitively.

That said, navigating the Amazon marketplace can be like walking through a minefield, and a single bad product investment can really set you back. That’s why I swear by Jungle Scout.

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1683733113 435 Which Platform Deserves Your Business in 2023

It’s an awesome tool that uses real-time data to help you find genuinely profitable products. You’ll have the edge you need to pick products that actually sell and avoid costly mistakes. For more info, check out our full Junglescout review.

The last drawback is the fees, which can add up quickly and cut profit margins. My margins were around 10-12% for my Amazon operation, which is lower than my Shopify dropshipping operation (20-30%).

Setting up a Shopify store

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Set up a Shopify store with these easy-to-follow steps:

  1. Register on Shopify: Create your store in no time by visiting shopify.com and providing the required information.
  2. Choose a niche: What niche will you focus on? (Here are the best dropshipping niches.)
  3. Add your products: The pricing strategy, store design, shipping, and more depending on the items you offer.
  4. Choose a Shopify theme: Select a visually appealing and functional theme to enhance your store’s appearance.
  5. Set up your back office: Configure basic settings and manage your store’s operations.
  6. Set up a custom domain: Personalize your store’s web address to establish a unique brand identity.
  7. Launch your Shopify store: With everything in place, unveil your store and start selling.

Setting up an Amazon FBA store

1683733114 599 Which Platform Deserves Your Business in 2023

Here are the steps to set up an Amazon FBA store:

  1. Create an Amazon Seller Account: Sign up at sellercentral.amazon.com. Choose between an Individual or Professional plan.
  2. Choose your products: Conduct thorough market research and select the products you want to sell. Consider factors such as demand, competition, and profitability.
  3. Find a supplier: Source your products by finding a reliable supplier or manufacturer. Ensure they meet quality standards.
  4. Create product listings: Set up your product listings on Amazon, including product titles, descriptions, images, and pricing. Optimize your listings using relevant keywords and high-quality content to improve visibility in search results.
  5. Ship your products to Amazon: Prepare your products for shipment following Amazon’s FBA packaging and labeling requirements. Then, send your inventory to the designated Amazon fulfillment centers.
  6. Set up Amazon FBA: In your Seller Central account, enable Amazon FBA for your chosen products. Amazon will now handle storage, picking, packing, shipping, and customer service on your behalf.

Shopify Marketing and Advertising

I’ve found that Shopify presents many marketing opportunities to drive traffic and increase sales for my online store.

One strategy I’ve had great success with is content marketing through their integrated blogging platform. By creating valuable, high-quality blog posts for my target audience, I’ve established myself as a trusted expert in my niche and built stronger connections with potential customers.

Aside from blogging, Shopify has a range of marketing tools to help promote my business. Email marketing is particularly powerful, as it lets me send targeted, personalized messages to subscribers who opted-in for updates. 

With integrations like Klaviyo, I’ve been able to set up abandoned cart flows and segmented campaigns. Remember, email marketing is extremely profitable – it has a 4200% ROI on average for every $1 spent.

1683733114 302 Which Platform Deserves Your Business in 2023

What I truly appreciate about Shopify is the ability to own customer data. Whenever someone visits my store, I can capture them as a lead and retarget them using tracking pixels. 

This advantage sets Shopify apart from Amazon, where customer information is restricted. 

Amazon FBA Marketing and Advertising

This section will discuss some of the most effective ways to win customers on Amazon FBA.

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Amazon PPC (Sponsored Products)

Shopify vs. Amazon FBA - amazon ppc screenshot

One of the most popular advertising options is Amazon PPC or Sponsored Products. This type of advertising allows sellers to bid on specific keywords related to their products, which appear at the top or bottom of search results pages. 

You can use Amazon’s targeting options such as: 

  • Automatic targeting
  • Manual targeting
  • Product targeting

Amazon’s Promotional Tools (Coupons, Lightning Deals)

Shopify vs. Amazon FBA - amazon today's deals screenshot

Another way to attract customers on Amazon FBA is by using Amazon’s promotional tools, such as coupons and lightning deals. 

Coupons allow you to offer discounts on your products, while lightning deals offer time-limited promotions with limited quantities.

Using them will increase your sales velocity and improve your product rankings in search results pages. 

Optimizing your product listings for Amazon search is crucial to winning customers on Amazon FBA. 

The key elements of an optimized product listing include:

  • An engaging title
  • High-quality images
  • Detailed descriptions with bullet points
  • Competitive pricing
  • Positive reviews with high ratings
  • Relevant keywords in titles and descriptions

You can use Amazon’s A+ Content feature to enhance your product descriptions with additional images and text.

Shopify Inventory Management and Fulfillment

Inventory management is a crucial aspect of any e-commerce business.

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It involves tracking and managing the flow of goods from suppliers to warehouses and customers. Unfortunately, companies can experience stockouts, overstocking, and other issues without proper inventory management.

Dropshipping vs Third-Party Logistics (3PL) vs Self-Fulfillment 

Businesses have three options:

  • Dropshipping
  • Third-party logistics (3PL)
  • Or self-fulfillment

With drop shipping, you outsource warehousing and fulfillment to a third party. In this case, you don’t own the inventory. Instead, you would pay the dropshipping service provider on a per-item basis.

Self-fulfillment involves storing products in-house and shipping them directly to customers when orders are placed.

3PL involves outsourcing warehousing and fulfillment services to a third-party provider who handles storage, packing, and shipping on behalf of the business. You would invest in stock, and then the warehouse would store your inventory and fulfill the orders.

Shopify Fulfillment Network

1683733114 33 Which Platform Deserves Your Business in 2023.webp

For those who prefer not to handle order fulfillment themselves or use 3PLs outside Shopify’s network, Shopify offers its own fulfillment network: Shopify Fulfillment Network (SFN).

SFN provides end-to-end fulfillment services, including storage, packing & shipping for merchants with high-volume sales while allowing them complete control over their branding and customer experience.

One advantage of SFN is the Shopify Promise badge, a premium feature that displays order delivery dates on product pages. This increases buyer trust and can lead to higher conversion rates.

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Amazon FBA Inventory Management and Fulfillment

As an Amazon seller, managing incoming and outgoing inventory is essential. 

Too much inventory ties up capital and storage space (you’ll also incur fees).

If you don’t have enough inventory on hand, you will lose out on sales.

The rule of thumb: it’s ideal to meet demand on a rolling four-week basis.

Inventory Performance Dashboard

Shopify vs. Amazon FBA - amazon inventory performance dashboard screenshot

One of the most valuable tools that Amazon provides its sellers is the Inventory Performance Dashboard (IPD).

This dashboard displays essential inventory information such as sell-through rates, aging stock alerts, and recommended actions to optimize storage. 

Machine Learning-Based Inventory Management System

FBA sellers get access to Amazon’s machine learning-based inventory management system. 

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This system uses inputs like the cost of goods sold (COGS), shipment time, and historical data from Amazon to forecast customer demand accurately and set optimum inventory levels.

This allows you to automate many aspects of your supply chain management process. 

For example, you can:

  • Set reorder points: The system will reorder when inventory falls below the threshold.
  • Forecast demand: Historical sales data predict the inventory required to meet future demand.
  • Optimize storage: Recommends stock level for fulfillment centers based on popularity in specific regions.

Inventory Performance Index

Amazon will track your inventory performance (IPI) score based on your ability to manage your inventory levels effectively.

This score ranges from 0 to 1000 and is calculated based on factors like excess inventory levels, stranded inventory percentage, and order defect rate.

If your IPI score falls below 400, you may face additional fees or restrictions on creating new listings or sending more inventory.

On the other hand, if you maintain a high IPI score consistently, Amazon may reward you with lower fees or priority placement in search results.

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Pricing Plans and Selling Fees

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Shopify offers various pricing plans that cater to different business needs. The basic plan starts at $25 per month, while the advanced plan costs $399 per month.

Each plan has different features, including the number of staff accounts, gift cards, and professional reports. However, one thing that remains constant across all plans is the transaction fee charged by Shopify.

The Shopify Payments transaction fee ranges from 2.4% to 2.9% + 30 cents per transaction, depending on the pricing plan selected by the user.

In addition to transaction fees, Shopify also charges a referral fee ranging from 0.5% to 2% for sales made through external channels like Facebook and Pinterest.

Credit Card Rates

Shopify’s credit card rates vary depending on the user’s chosen pricing plan. Basic plans have higher credit card rates than more expensive plans. For instance, basic plans have credit card rates ranging from 2.4% to 2.9% + 30 cents per transaction compared to lower rates offered by more expensive plans.

Amazon FBA Fees and Revenue Potential

While Amazon FBA can be a convenient option for many sellers, it’s important to understand the fees associated with using Amazon FBA.

Storage Fees

One of the main fees associated with using Amazon FBA is storage fees. These fees are charged based on the size and weight of your product and how long it has been stored in an Amazon warehouse. Storage fees are assessed monthly for standard-size items, while oversized items are charged daily.

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Regularly review your inventory levels and remove any slow-moving or excess inventory from Amazon’s warehouses to avoid excessive storage fees.

Fulfillment Fees

In addition to storage fees, Amazon FBA charges fulfillment fees for each item shipped out of their warehouse. These fees vary depending on the size and weight of the product being shipped. However, these costs can be offset by the convenience of having Amazon handle all aspects of order fulfillment.

Referral Fees

Another fee that sellers need to be aware of when using Amazon FBA is referral fees. These commissions are paid to Amazon for each sale made through their platform. Referral fees typically range from 6% to 45%, depending on the product category.

FBA Removal Fees

As an Amazon seller, you may encounter situations where you need to return your inventory from an Amazon warehouse.

The fees vary depending on the size of the product category it falls into – standard-size or oversized. Standard-size products generally have lower removal fees than oversized ones. The removal fees range from $.97 per unit to $13.05 per unit for oversized ones.

FBA Disposal Fees

Now that we’ve covered removal fees let’s talk about disposal fees. Disposal fees are charged when a seller requests Amazon to dispose of their inventory rather than return it or store it in an Amazon fulfillment center. These fees help cover the cost of properly disposing of the products – they follow the same pricing structure as the removal fees.

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Shopify vs Amazon FBA Final Thoughts

Ultimately, where to sell your products depends on your business goals and target audience. 

If you want less risk and more control over your brand, then Shopify may be the better option.

If you want to reach a wider inbound audience and leverage an established brand, then Amazon may be the better choice. Especially if you leverage a tool like Jungle Scout to help you make the best possible decisions!

However, selling on both platforms can help diversify your sales channels. By listing your products on both Amazon and Shopify, you can take advantage of the benefits of each platform while minimizing their drawbacks.



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How Creators Make Money Is Changing

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In 2021, we reported on a survey that measured creators’ top sources of revenue. At that time, sponsorships with advertisers took the top spot by …

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The Ultimate Guide to Succeeding Alone in Business in 2024

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The Ultimate Guide to Succeeding Alone in Business in 2024

What is a solopreneur? And how do you become one?

Well, in this post, we’re diving into the world of solopreneurship to help you get started.

You’ll learn:

  • The difference between a solopreneur and an entrepreneur
  • Pros and cons of solopreneurship
  • A step-by-step guide to becoming a solopreneur
  • Plus, solopreneur business ideas you can start today.

Let’s get started.

What is a Solopreneur?

A solopreneur is a person who starts a business by themself, without a partner, and the need for hiring employees.

What is a Solopreneur?

Merriam-Webster defines it as:

One who organizes, manages, and assumes the risks of a business or enterprise without the help of a partner : a solo entrepreneur.

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They typically bootstrap their business using their own money and manage all aspects of the business needs to make a profit.

This might involve sales, marketing, product development, managing finances, and customer satisfaction.

Solopreneur vs Entrepreneur

Now, you might be asking, “What’s the difference between a solopreneur and an entrepreneur?”

Solopreneur vs EntrepreneurSolopreneur vs Entrepreneur

Here are the key distinctions between the two. Knowing these can also help you choose which one to pursue.

Purpose

A solopreneur and an entrepreneur have slightly different intentions when launching a business. The solopreneur starts a business so they can work for themselves, make extra money, and work on something they’re passionate about.

Solopreneurs often start a side hustle while working a regular job, hoping their business will take over their salary.

The entrepreneur generally starts a business for growth, scalability, and profit. They may also be driven by having an impact on a market.

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Entrepreneurs might start as solopreneurs in the beginning but with an aim to expand. They may also have an exit strategy in mind from the very beginning, whereas solopreneurs rarely start to sell the business.

Management

Solopreneurs don’t hire employees as they aim to manage all aspects of the business themselves. But, they might hire a freelancer, independent contractor, or virtual assistant for specific daily tasks.

The solopreneur doesn’t usually seek investments either, as their startups are self-funded.

Entrepreneurs will build a team of employees and seek investments so they can expand the business quickly.

Most entrepreneurs don’t want to be working in the business but rather focus on their vision and creative direction.

Focus

The focus of a solopreneur is primarily to create a lifestyle business. They might also want to achieve financial independence and work on things they love.

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Many solopreneurs are simply driven by their interests. For example, an artist might want to spend more time painting, so they research ways to monetize their work.

When their art business makes more money than their job, they can leave and focus on painting full-time. They’ve turned their hobby into a business.

Whereas the entrepreneur might have a passion for growth, innovation, impact, or for business itself. The businesses they start can be varied, and they don’t necessarily have to be passionate about their niche.

Pros and Cons of Solopreneurship

Like any venture, business model, or career choice, there are advantages and disadvantages.

Here’s what you need to know when becoming a solopreneur.

Solopreneurship Pros

  1. The introverts dream. Solopreneurship can be very appealing to introverts or those who like working alone.
  2. Total autonomy. You have complete control over business decisions, projects you work on, and the people you serve.
  3. Flexibility. It provides total freedom regarding the hours you work and your location.
  4. Low startup costs. Many solopreneurs can start with a social media account and free marketing tools like Substack.
  5. Passive income. There’s a lot of potential to earn passive income as a solopreneur. Here are some passive income ideas to look into.

Solopreneurship Cons

  1. Workload. Many roles are required to be a successful solopreneur. These include marketing, sales, accounting, and client satisfaction.
  2. Inconsistent income. Revenue can be slow and inconsistent in the beginning.
  3. Isolation. Running a business alone can get pretty lonely sometimes, even for introverts.
  4. Work-life imbalance. It can be hard to switch between work and play, especially when working from home.
  5. Financial responsibility. Financial management can be quite daunting for some people and may lead to failed startups when not managed well.

How to Become a Solopreneur

Here are 9 steps you can take to make the solopreneur journey a breeze.

1. Evaluate Your Skills

Solopreneurship is all about monetizing a skill or what you know. So, the first step is to know what you’re good at.

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This is harder than it seems because what we’re good at often comes naturally to us. Therefore, we don’t recognize our own talents.

It could be fixing your diet, graphic design, writing a novel, or dealing with stress.

Start by documenting your life and answering these questions:

  • What are you passionate about that you’ll never get bored with?
  • Have you achieved anything significant that came easy to you?
  • What do you spend the most money on?
  • What do your friends come to you for advice about?

Spend some time journalling or brainstorming things that come to you. Just try to keep it simple.

You don’t have to be an expert to be your own boss. Only a desire to help others who are a few steps behind you.

If you’re really stuck, you can choose one of the easiest online businesses to start to get you going.

2. Set Financial Goals

Next up is knowing how much income you want to make.

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Solopreneur financial goalsSolopreneur financial goals

Do you want to make a little extra on the side? Or do you want to replace your salary?

There’s no limit to how much you can make when starting an online business as a solopreneur.

But it’s still important to set business goals. Doing so will help you make better decisions and even choose a business model or product to sell.

You’ll want to establish short-term and long-term financial goals. That way, you’ll stay motivated and maintain focus.

3. Choose a Business Model

Your business model is how you deliver your products or services. Establishing one will give you clarity on the direction you can take.

It will also reveal how you’ll generate income, establish risk, and how you might scale if you want to.

We’ll take a deeper dive at specific business ideas later, but these are the main business models to choose from.

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  1. Service-based. Things like freelance writing or web design services.
  2. Content creator. Teaching through YouTube, blogs, or online courses.
  3. Coaching. Helping people achieve personal or professional goals.
  4. eCommerce. Selling physical or digital products.
  5. Developer. Launching web or mobile apps.

4. Identify Your Ideal Market

So you have an idea of what you’ll be offering and the business model to deliver it.

But now you need to find an audience who needs it. Skip this step, and you could sell something no one needs.

Market research validates what you have to sell and will help you clarify your offer.

It involves understanding the pain points of your target audience and crafting a compelling solution.

Here are some popular ways to perform market research today:

  1. Forums and communities: Join and engage in niche forums or communities like Facebook groups. Use Google to find these forums or the search feature on Facebook.
  2. Social media: Monitor conversations on social media sites like Twitter and Reddit. Search for niche-related tags to find the right people.
  3. Competitor analysis: Research your competitors to see what pain points they focus on. Analyze the copy on their website and social media channels to gather insights into your audience.
  4. Keyword research: Use tools like Google Keyword Planner or SEMRush to find out what your niche is searching for. This will help you understand what their needs and goals are.
  5. Start a community: Launch a free Facebook Group or community platform like Skool to get to know your audience on a deeper level.

Niching down will always help you find a more passionate audience, so try not to go too broad. You can also read our posts on the best niche markets to get some ideas.

5. Create a Business Plan

According to a study published in Small Business Economics, people who create a business plan are 152% more likely to launch their business .

Develop a business planDevelop a business plan

Another study revealed that companies that plan grow 30% faster than those that don’t plan.

The downfall when planning is that many solopreneurs can get caught up in all the details. However, it doesn’t have to take weeks or months or need to be perfect.

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What’s important is getting the fundamentals down on paper.

This notion template is a great place to start, or this Udemy course for a more comprehensive and guided approach.

6. Launch Your Brand

Now, you’ll want to define the identity of your brand. This includes the name, logo, and messaging to attract the right people to your business.

The easiest route is to use your name and start your business as a personal brand.

But if you intend on scaling your business or selling it as an entrepreneur, you might want to start a professional brand instead.

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Either way, start by brainstorming ideas and checking for domain availability and social media handles.

You might want to register your business legally at this point, too.

If you have design skills, a simple logo might be sufficient enough. You can also hire a designer on Upwork to design your logo and brand identity professionally.

Lastly, you’ll need to tailor your brand messaging to resonate with your audience. A great book on this subject is Building a StoryBrand by Donald Miller.

7. Establish an Online Presence

The next step to solopreneur success is forming a coherent online presence. These will be the places where you market yourself, publish content, and deliver your offerings.

Here are a few things you’ll need to set up:

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  1. A website: You can build a simple site using WordPress or Shopify if you sell products.
  2. Social media channels: Sign up and claim your social media handles on the main sites. These include Facebook, X, Instagram, Pinterest, Medium, and YouTube.
  3. Email list: Use ConvertKit or a newsletter service like Substack to start building an email list. The earlier you start this, the better.
  4. Blog: If you like writing, you can also start to publish articles that attract organic visitors through search engines.

You don’t have to be active on all these channels at once. Just set them up so no one else takes your username, then choose a channel your audience uses most.

As a solopreneur, it’s possible to grow your business by sticking to one channel.

8. Develop a Digital Marketing Strategy

Marketing is how you’ll raise awareness of the problems your niche experiences and how you can help solve them.

Solopreneur marketing strategySolopreneur marketing strategy

To do this effectively, you need a strategy.

You’ll want to decide which platform to spend most of your time on. As a solopreneur, there’s only you, so trying to juggle multiple channels will spread you thin.

The strategy is to publish content at each level of the funnel.

Using the AIDA formula is a good place to start:

A: Grab the audience’s Attention with well-crafted headlines
I: Create Interest by communicating pain points. This will help grow followers or subscribers.
D: Create Desire by emphasizing the desired state for potential customers.
A: Provide a call to Action to drive conversions and sales.

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You can check out the 1-Page Marketing Plan for this. It will help you define a comprehensive marketing strategy on a single page.

9. Never Stop Learning

Lastly, you’ll make your journey so much easier when you become a continuous learner and adopt a success mindset.

You can read the best audiobooks for business, take Udemy courses, or even join an online community.

Some great books for solopreneurs include The Lean Startup, Company of One, and Alex Hormozi’s books.

Solopreneur Business Ideas

There are tons of different types of businesses you can start as a solopreneur.

Choosing one will depend on your skills, passions, available resources, and market needs.

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Here’s a quick look at some one-person business ideas to give you some inspiration:

  • App developer: Creating mobile or web apps like habit trackers or even games.
  • Blogger: Publishing content on Medium, Quora, Twitter, or a WordPress blog.
  • Paid newsletter subscription: Sharing your insights and knowledge through a platform like Substack or Beehiiv.
  • Copywriter: Offering copywriting as a freelancer on Upwork on your website.
  • Digital products: Sell your knowledge in the form of digital products on Gumroad or Systeme.
  • eCommerce: Sell physical products through Amazon FBA, Etsy, or a Shopify store.
  • YouTuber: Share your knowledge and monetize with YouTube affiliate marketing and ads.
  • Start a community: Create a Skool community and charge a monthly subscription.

Solopreneur in Conclusion

Becoming a solopreneur has many advantages when starting a business. Unlike entrepreneurship, you get to work alone, choose your hours, and only work on things you love.

Don’t expect things to go perfectly, though. Achieving success in any business venture takes time and dedication.

If you want to connect with others on their solopreneur journey, consider joining the Niche Pursuits Community. You’ll get access to weekly calls from successful bloggers, YouTubers, and 7- and 8-figure digital business owners.



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27 Passive Income Ideas to Make Money & Build Wealth in 2024

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27 Passive Income Ideas to Make Money & Build Wealth in 2024

In this article, we discuss the 27 passive income ideas to make money and build wealth. To skip our detailed analysis of passive income and its benefits in today’s world go directly to the 7 Passive Income Ideas to Make Money & Build Wealth in 2024.

Passive income can be defined as a side income that comes from a minimal amount of work as compared to your active income. In the current economic conditions, many people are finding it hard to keep up with inflation with a single paycheck. While the US Federal Reserve’s policies have managed to tone down inflation and the bank is expected to cut interest rates, some Wall Street analysts still paint a bleak picture of the US economy in the near future. 

According to a survey by Self, 45% of working Americans have a side gig. Out of the people surveyed, nearly 35% said that they need their side hustle source to pay their bills and other expenses, while over 32% of people use it as disposable income. Around 30% of the respondents put their side gig money toward savings and investments. The survey suggests that these side gigs generate an approximate average of $688 per month. We previously reported that  73% of Americans with side hustles are thinking of leaving their primary jobs. 

Passive Income Ideas with Stocks

Some of our passive income ideas to make wealth revolve around investing in the financial markets. The US stock market is one of the places that have made many people rich. For example, value investors such as Warren Buffett and Seth Klarman have made billions from buying stocks and keeping them for the long term. Their style of investing is known as value investing. It is important to note that these two investors have spent a lot of time and money on their investments, but at the moment we are looking for passive income ideas to make wealth. In that case, you can follow their strategy on a smaller scale by buying quality stocks and letting them grow over a few years.

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Nevertheless, a value investing strategy works best if you have a lot of capital. For example, Warren Buffett has owned 151.61 million shares of American Express Company (NYSE:AXP) since the third quarter of 2013, when its stock price averaged at $75.23. By the end of the fourth quarter of 2023, the company shares were trading at an average price of $160.97. It means that American Express Company (NYSE:AXP) stock made around $17 billion for Buffett’s firm during this time, and that is without counting the dividend income. As of March 7, the company’s stock was trading at $221. Some other value stocks from Berkshire Hathaway’s portfolio include The Coca-Cola Company (NYSE:KO) and Bank of America Corporation (NYSE:BAC).

Use of AI to Generate Passive Income

A survey by GOBankingRates reveals that 45% of the respondents are in favor of using AI to generate passive income, and 8% are already using it to do so. Open AI’s ChatGPT has been responsible for the surge in 2023’s AI revolution. The platform also offers a passive income source with its Bug Bounty Program. The program invites people to find bugs or security flaws and get paid. The rewards start from $200 and go up to $20,000.

 Passive Income Ideas to Make Money & Build Wealth in 2024

Passive Income Ideas to Make Money & Build Wealth in 2024

Photo by nathan dumlao on Unsplash

Our Methodology

For this article, we carefully reviewed several sources, including Time Magazine, CNN, CNBC, and Reddit. Next, we chose the most common recommendations to make passive income across these sources and listed them according to the number of mentions each idea received. The more times a passive income idea was mentioned, the higher it was placed on our list.

By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

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Passive Income Ideas to Make Money & Build Wealth in 2024

27. Domain Parking

Domain parking is a practice where any person or company registers domain names but does not use them for hosting a website or email service immediately. Instead, they place them “parked” with a domain parking service or a domain registrar.

Revenue is primarily generated through advertising. When visitors click on the ads displayed on the parked domain’s page, you, as the owner of the domain, will earn a small amount of money. To get the most out of domain parking, hone your monetization strategy to direct traffic to the domain. You can optimize the domains via a third party like Newsy, Bodis, and ParkingCrew.

Due to the risks like potential legal issues and low revenue potential, we gave it the lowest priority on our list of passive income ideas to make money and build wealth in 2024.

26. Crypto Staking

Crypto staking is a process used in blockchain networks to validate and secure transactions, similar to how mining works in some cryptocurrencies like Bitcoin. However, instead of using computational power to solve complex mathematical problems as used in mining, staking involves validators locking up a certain amount of cryptocurrency as collateral to support the network’s operations. Crypto staking is a good way to earn passive income. However, it also carries risks, such as the potential loss of staked funds in the event of validator misbehavior.

Coinbase Global, Inc. (NASDAQ:COIN) is one of the companies that allows you to stake your tokens. The interest rate return on crypto staking varies between tokens. The estimated reward on Ethereum is 2.94% at the time of writing on March 7.

25. Annuity Set Up

An annuity is a financial product that provides a series of payments to an individual over a specified period. An annuity can be set up in various ways, depending on the terms of the annuity contract and the preferences of the individual purchasing it. 

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Annuities are usually bought through insurance companies. However, they are also provided by financial services businesses like brokerage firms and banks. Fixed Index Annuity is a type of annuity that is tied to broader market indexes such as the S&P 500. It pays you a fixed interest rate along with a variable income, depending on the performance of the market.

There are several other ways to set up annuities, and it is better to consult a financial expert or insurance provider to make more informed decisions before moving forward.

24. Renting Out Things in Your Home That You Don’t Use

Renting out household items has become increasingly popular with the rise of online platforms that facilitate peer-to-peer rentals. While renting out your household items can carry risks, it is a great passive income idea to make money and build wealth in 2024. You can be on your way to building wealth with this idea if you rent out high-value items that people need for only a short duration and/or infrequently. 

Other than keeping your items in good condition to retain and invite new customers, it is important to come up with competitive rental rates and provide clear rental terms and conditions. A few noteworthy sites/apps for peer-to-peer rentals are Rannsak, Fat Lllama, and Yoodlize. Some marketplaces provide insurance to cover damages, loss, or theft. For example, Rannsak offers The Rannsak Reimbursement Program in the U.S., and the insurance is up to $1,000.

23. Royalties From Intellectual Properties

Royalties from intellectual property refer to payments made to the creator of intellectual property in exchange for the use of the said asset. According to a report by the World Intellectual Property Organization, there were 3.5 million patents filed in 2022. 67% of the total patent filings were made by Asian countries.

If you plan on earning royalties from intellectual properties, you must protect them legally, and that can be done through copyrighting, trademarking, licensing, patenting, and more.

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A way to create passive income from royalties would be entering into a licensing agreement with a third party to allow them the use of your intellectual property and receive financial benefits in return. The amount of money you make from these royalties depends on the terms of the licensing agreement. For example, agreeing to a percentage of revenue generated by the sales of the product. Laws regarding patenting in the United States can be found on the United States Patent and Trademark Office website.

22. Peer-to-peer Lending

Peer-to-peer lending is a method of debt financing through which individuals borrow and lend money directly, and there is no involvement from traditional financial institutions. It is one of the best passive income ideas to make money as it serves as a source of funding for individuals and businesses while offering competitive interest rates and flexible terms with a streamlined loan process. The above-mentioned factors are not available to most individuals and businesses when it comes to taking loans from traditional banking institutions.

If it is your first time getting into peer-to-peer lending, you can sign up on established websites like Prosper Marketplace’s Prosper.com through which you can invest in consumer loans, and the website will connect you with borrowers.

21. Set Up an ATM or Vending Machine

An individual can set up an ATM or a vending machine to make a profit from them. However, these two things will generate income based on the number of people that use your machines, so it is essential to set them up somewhere with a lot of foot traffic. If you decide to go the vending machine route, there are a few costs that you should keep in mind, including the cost of the machine (secondhand machines cost between $1,500 – $5,000), location fee, replenishment cost, and maintenance. A few Reddit users recommend delegating tasks like re-stocking and maintenance to cut down on work hours.

For ATMs, setting them near cash businesses like casinos or barber shops where people prefer to tip in cash is ideal. To get started, you will need to open a limited liability company, purchase an ATM, find a location for it and draw up a contract with the owner of the location, and install the machine. 

20. App Development

Creating an app can be your way of building wealth because if successful, it will generate revenue for you over a long time. There are many ways you can monetize your app, including paid downloads, in-app purchases, subscriptions, and more. App development is one of the best passive income ideas to make money.

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Mobile apps have the most promise, as 56.1% of all global website traffic was attributed to mobile usage as of December 2023, according to Oberlo. While your income will vary depending on a multitude of factors, including but not limited to which app store you choose, the niche your app belongs to, and the monetization pathway you opt for, mobile apps have more potential to generate passive income.

19. Sell Stock Photos

Selling pictures online that you have captured is a great passive income idea. You will need to start by capturing high-quality pictures. You can then search for different reputable stock photography websites or agencies, like Shutterstock, Inc. (NYSE:SSTK), which hires photographers. According to data collected by Matic Broz for Photutorial, on average, a stock photographer can earn around $0.02 per image per month on average. Moreover, Stocksy United pays the highest, i.e., $200 per standard royalty-free sale and $8,100 per extended license.

18. Video Content Creation

Video content creation can not only generate passive income for you but also be highly engaging. You can create video content for different purposes, like stock footage, subscription platforms, and more. Creating videos for sponsored content is a great way to make a little money on the side. For that, you will need to find brands that will sponsor you to advertise their product or services.

Choosing the right platform for your video content is the most important step, and you can look at Google’s YouTube, TikTok, and Meta Platforms, Inc. (NASDAQ:META)’s Instagram. According to Influencer Marketing Hub, on average, a channel on YouTube gets $0.018 per view or $18 per 1,000 views.

17. Advertising on Your Car

Advertising on your car to earn money is a legitimate way to make some extra cash. This practice, often referred to as car wrapping, involves having advertisements or promotional graphics on your car in exchange for payment. To earn passively through car advertising, you would need to sign up with specialized agencies that hire people for this purpose. 

According to some Reddit users, they have been paid between $100 to $700 a month for getting their cars wrapped. However, some of them have cautioned people to beware of scams. It is essential to remember to do thorough research on the agency you plan on conducting your business with.

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16. Design Custom Products

Earning through custom-designed products can be a lucrative venture, especially with the rise of e-commerce platforms like Shopify Inc. (NYSE:SHOP) and print-on-demand services. You would start by identifying the material you wish to work with and your niche and create your designs. From there, you can choose a platform and hire a print-on-demand service. Once you set up your store, you will need to do effective marketing to solidify your customer base. Amazon.com, Inc. (NASDAQ:AMZN)’s Merch on Demand allows people to share their designs for their products. Some Reddit users even claim to make $2k to $3k a month from that platform.

15. Affiliate Marketing

Affiliate marketing is one of the best passive income ideas to make money and build wealth in 2024. According to AuthorityHacker, before consumers make a purchase, 74% of internet consumers in the U.S. go to multiple affiliate websites. Moreover, affiliate marketing contributes to 16% of all internet orders in the U.S.

With affiliate marketing, you can promote products or services through various marketing channels, such as websites, blogs, social media, email newsletters, or online advertisements, and earn a commission for each successful referral or conversion from a business or advertiser. 

The Amazon Affiliate program, or Amazon Associate program by Amazon, is an easy way to get into affiliate marketing.

14. Rent Storage Places

Buying and renting out self-storage space can indeed be a viable way to earn money. Other than that, you will need to be careful to set profitable and reasonable rental terms and conditions and screen the potential renters. According to one source, storage units can generate an annual income between $365,000 to $800,000, depending on size and location.

13. Rent Out Parking Space

If you have a parking space that you are not utilizing, you can rent it out, as it is a lucrative way to make extra money. It can become profitable for you if the parking space is near a venue that sees a lot of traffic, e.g., a shopping mall. Moreover, you can rent it out during specific times, like when a concert is being held somewhere nearby. The money generated from these parking lots mostly depends on your location. Make sure to check your local laws before investing in such ventures.

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Moreover, you can also list your private parking space on platforms like Neighbor, which can generate between $50-$300 per month.

12. Real Estate Investing 

Real estate investing by renting out a spare room is one of the best ideas to earn passive income and build wealth. It involves renting out the room to tenants in exchange for regular rental payments. The amount of rental income you can earn depends on various factors such as location, property type, market demand, and rental rates.

Airbnb, Inc. (NASDAQ:ABNB) is one of the best online marketplaces for short and long-term homestays.

11. Create an Ebook

Writing an ebook can be lucrative for you as it falls under a digital product. You can get passive income through sales revenue by selling your ebook to an online ebook publishing platform, including but not limited to Amazon Kindle Direct Publishing, Apple Books, and Google Play Books.

10. Buy a Successful Blog

Buying a successful blog means getting a website that already has lots of people visiting it and making money from it. When you buy it, you get possession of all the work that’s already been done, like writing articles and getting ads on the site. Buying a successful blog is a good passive income idea to make money and build wealth, especially if you know how to grow and improve it. Many Reddit users recommend buying blogs off of Flippa or Empire Flipper. According to them, it is important to remember that the initial investment will be considerable, and they recommend researching blog websites thoroughly.

9. Create an Online Course

Our eighth passive income idea to create wealth is creating an online course. Online courses have become a popular way for people to share their knowledge and expertise with others while also monetizing their skills. You can generate revenue through many strategies, including course sales, offering continuing education credits, etc. You would benefit from looking up e-learning platforms like Udemy, Inc. (NASDAQ:UDMY), as such platforms will provide you with tools for course creation, marketing, and sales.

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8. High-Yield Savings Account

A high-yield savings account is a type of savings account offered by banks or financial institutions, and it typically offers a higher interest rate compared to traditional savings accounts. To take full advantage of high-yield savings accounts, you should leverage compound interest. It can help you grow your savings steadily over time and help you reach your financial goals more quickly.

In 2024, several high-yield savings accounts offer returns of 4% or more in some cases as compared to the 0.46% national average return on traditional savings accounts.

 

Click to continue reading and see the 7 Passive Income Ideas to Make Money & Build Wealth in 2024.

 

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Disclosure. None. 27 Passive Income Ideas to Make Money & Build Wealth in 2024 is originally published on Insider Monkey.

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