You know that the Internet is booming, but did you realize that 20 percent of global economic growth is due to online businesses? Experts predict that the importance of online businesses in the overall global economy will only grow in the future, meaning that outlooks for many types of online businesses are good. Among the many types of online companies, there are some that stand out. Here is a look at three of the top online business industries:
1. E-commerce
What Is It?
E-Commerce is the selling of goods online. This can be done through a business website or through an online marketplace like Amazon, eBay or Etsy. More and more people are now using the Internet to buy everything from gifts to groceries. With more than $300 billion spent on online purchases every year, there are plenty of new opportunities for entrepreneurs who want to get into retail or business-to-business sales.What Does It Require?
Success in e-commerce begins with the right product whether it’s something manufactured by the company or purchased from a supplier. SEO or search engine optimization is important to help drive people searching for products to the sales sites or marketplace sites. Branding the site to differentiate it from other online retailers is important to ongoing success in the e-commerce industry.2. Membership and Subscription Businesses
What Is It?
Membership and subscription businesses provide a service or product on a consistent basis for customers who pay regularly to continue to receive the product or service. An example would be a business that sends a selection of toys to subscribers every month for a set fee or a membership site that provides access to articles, tips and blog posts on a specific topic like weight loss or accounting.What Does It Require?
For a membership business, advanced knowledge or extensive experience in an area that people will be readily interested in knowing more about is important. For a subscription business, the right concept is key. In addition to having a good idea for your membership or subscription business, you’ll need a plan to grow your membership or subscriber base. This may involve social media marketing, search engine optimization, blog and affiliate advertising and more. Like e-commerce businesses, membership and subscription businesses must be strongly branded to set them apart from competitors.3. App-Based Technology Businesses
What Is It?
An app-based business can be one of two things. The first option is a company that develops their own apps for distribution on mobile devices like the iPhone and iPad. Apps can range from games to programs geared toward people with specific hobbies and interests to programs that make it easier for people to complete their daily routines or work tasks. The second option with an app-based business is to build apps for others. Experts predict that by 2017, people around the globe will download more than 270 billion apps to their smartphones and tablets, indicating that the need for apps will only continue to grow.What Does It Require?
To start a business developing your own apps for sale, you’ll first need to have an idea for an app. Coming up with something that solves a problem or fulfills a need that has yet to be met by any other app on the market is key to success. This will require research into the app market and even testing other apps to learn more about what’s already available and what the limitations of current apps are. If you want to start a business making apps for others, you’ll obviously need a wealth of technical knowledge and demonstrated experience in the form of a portfolio that you can share with prospects. Both types of app-based businesses will require successful marketing.
Interested in getting into one of these three online business industries? Your options aren’t just limited to starting up your own company. You can buy an online business in one of these three industries to get the benefits of a company that is already enjoying success or ready to break out. Buying an online business doesn’t have to mean doing all the work searching for the right owner who wants to sell their online business. An online or ecommerce business broker can help you find the right investment opportunity. Online business brokers help connect prospective buyers with sellers and oversee the sales process. Internet business brokers can help you find the perfect e-commerce, membership or subscription business or app-based business to invest in. Give us a call to learn more about opportunities for investment.
