Online Business Investment

Online Business: Are There Financial Investments Required?

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The number one question people starting online business usually ask is, outside the basic requirements like procuring computer, mobile phones, office space, paying for electricity, internet connection and other basic equipment that are needed to be online, are there other financial implications involved in starting online business just like there are in offline business.

The answer to this question is YES and NO. Online business just like every other thing, still adopts the GIGO (Garbage in, Garbage out) principle. What this implies is that what you put in determines what you get out. Newton’s second law of motion states that the movement an object makes is determined by the magnitude of net force applied to it, which follows the same direction as the force.

Now let’s look at factors that determine whether online business requires financial investment, the nature of investment needed and amount sufficient to be invested to start seeing positive results.

The type of business determines the type of investments and amount to be invested. There are different types of online businesses like bitcoin mining, affiliate marketing, freelancing through selling of services, blogging, influencing, etc. The question of whether you should invest in online business depends on which of these business that you are venturing into.

Affiliate marketing.

Anyone going into this type of online business must be ready to invest some funds even at the initial stage. This is because, it involves some necessary expenses like advertising fees, cost of getting a website, landing pages/sales funnels, subscribing to autoresponder lead companies, etc. So, it is obvious that when going into affiliate marketing, it is mandatory to have some form of investment if you want to see results faster.

There may be ways to get around this without spending on any of these items, but trust me, the growth rate is discouraging. You can mitigate the expenses on any of the items if you know how to render some of the services. Before you contract someone to assist you with marketing your affiliate links, ensure the person possesses the complete skills to give you a total digital marketing package. This will reduce the cost in time and money for looking and hiring different people for different tasks.


If the type of online business you want to start is selling your services online as a freelancer, it is possible to start at zero cost using some pre-existing freelance platforms, like Fiverr, Upwork, PeoplePerHour, etc. This is obtainable because these businesses have invested heavily on advertisement and have had the traffic coming in to their website. All you need to do is to leverage on their traffic to start making money.

But then, the service you intend to render will also determine if it is possible to actually work without investing. For instance, someone that wants to venture into white board animation services may have to subscribe to animation websites like Animatron or buy a premium software like Videoscribe.

You can as well choose to promote your gigs (services) outside the freelance platforms to get more clients because the competition among freelancers for clients coming in to the platforms is stiff and can delay your progress rate.


This is another form of online business that is old but still paying really good if you master the art and nitty-gritty involved. Blogging is simply putting your ideas or what interests you online, having people come to read it and getting paid for it. The strength of blogging is quality content and traffic.

If you lack any of these, then you cannot thrive is this type of business. One of the financial implications of blogging could be the cost of getting quality and unique articles if you cannot write the content by yourself or are too busy to do so. You don’t have to have a perfect knowledge of the topics that you are blogging about, you can easily research and rewrite in your own words to avoid plagiarism.

Another investment cost for blogging is promotion. You need to run a campaign, build social media presence and have people visit your blog to read your content. Note that there are different ways to make money from blogging. In fact, once you have an established blog, you can use it to do different online businesses at the same time; like having Google Ads display on it, using it to promote affiliate products, and working as an influencer. To achieve a great height to effectively use your website to make money through these platforms, you may have to invest in advertisement of different types.


This is a pure investment online business. It is non-negotiable that for you to invest or trade in bitcoin, you must be ready to part with some dollars.


This is as a result of your efforts in promoting yourself through your website, or any of the top social media platforms. Some people are influencers by default because of their status in the society, say celebrities. But if you are not of these and you still want to make money being an influencer in a particular niche, then prepare to invest in promotion and selling yourself to gather the crowd that will make you stand out as an influencer. And you will still have to let businesses in your influencing niche know that you have got the followers necessary to promote their products/services to your followers/readers, and this may involve paid promotion.