No matter what industry you decide to pursue, all good businesses have a few key ingredients in common.
In this post I’ll talk about what those ingredients are, and why I think they’re essential to running an online business…of any type.
So, what are those ingredients? Keep reading to find out. Or check out this post on the best digital home based business online!
2 Keys To Success Online
In my view, the two keys to success are really quite straightforward: any good online business has to be scalable, and it has to be passive. If it has these two factors going for it, it’s probably worth pursuing.
It Has To Be Scalable
The first part of the equation is to design a business that is inherently scalable. I’ve had business models I’ve developed in the past that worked well, were exceedingly passive and provided a huge ROI, but at the end of the day they weren’t scalable.
I was left with a small revenue stream of an extra few hundred dollars a month, but no real way to turn that few hundred dollars a month into a few thousand, or fifty thousand.
Eventually, I abandoned the business model. It’s not that I didn’t like having a few hundred dollars a month fly into my bank account, its that I wasted so much time thinking about this business and how to scale it, that it ended up not being worth my own effort to do so…even though the month on month return on my money invested was close to 100%!
It Has To Be Passive
The second hugely important characteristic for any good digital home business is that it be very, very passive.
What is passive income? Basically, it’s the ability to build something once, and then have little to no maintenance costs or (importantly) time involved to maintain your income.
These two ingredients go hand in hand, because very often things that are scalable are scalable only because they’re inherently passive. If you build a website, for example, and then build another, and then another, each successive site becomes part of a portfolio that, if done correctly, doesn’t need a lot of your time to maintain.
That gives you the ability to have potentially exponential income, like this:
That’s the secret to earning real money online, and one of the reasons that so many people struggle to get out of the gate. The realize the importance of what they’re doing, but don’t understand the power that compound effort plays when it comes to passive income.
That leaves them putting in a ton of hours only to give up just when they’re at the breaking point of starting to see real returns on their efforts!
If you feel that you’re in that position, I highly recommend you read these motivational stories about Wealthy Affiliate University success on http://affiliate-101.com. It’ll go through the basics of not just affiliate marketing, but how to think about compounding passive results to turn any online business into a profitable, and lucrative venture!
