What is an online business? Is there such a thing?

An "online business" is a business or company that transacts mainly through the internet. Back in the days when there was no internet, people transacted over the telephone or postal mail. They did not call their businesses a "Postal Mail Business" or a "Telephone Business". They ran real businesses.

It is this lack of understanding proper semantics that have mislead countless people to try an "online business", and having a convoluted notion that "since it's the internet it would be easy and I will surely make money" kind of thinking.

What you have is an internet-based business, but, it should be organized as a company and run as a real business. Meaning, just because your business transacts through the internet, it does not mean you should forgo proven ways of running a business enterprise.

If you are serious about earning an income from the internet, do this:

"Start your own small company."

Follow these steps:

• Make a simple business plan as your guide
  • There's plenty of free business software online, i.e. Enloop, use it.
• The next step is vital, without this just keep a hobby instead :)
  • Create a product or service that is based on your passion, knowledge, and, interests.
    • Create a solution(s) that your target market a needs. For example:
      
      • Write a book
      • Provide a service
      • Create a product
      • Do consulting,etc.
• Know your target market
  • Who needs your solution?
• Figure out what is your USP (Unique Selling Proposition)
  • How are you and your solution different
  • Differentiate yourself and your business. How? Read the next line.
• Make your own brand.
  • Buy a domain
    • Your first domain should be your own name, i.e. www.joebloggs.com
      
    • Your second domain should be related to your product/service and target market, i.e. www.yourproductbrand.com
  • Create your new email under those domains:
    • me@joebloggs.com
    • joebloggs@yourproductbrand.com
  • Start developing your website
• The next steps are crucial
  • Register a company for your internet-based business
    • I use Incorporate - they're fast, efficient, and very affordable
    • Visit the U.S. Small Business Administration
    • For free small business advice near your area - S.C.O.R.E
  • Fulfill all federal/national and local business requirements
• Open a PayPal account
  • Upgrade to a business account (Don't worry it's free.)
  • Use it to receive and pay money for your business
• Open a Skype account
  • Get a Skype telephone number for your business (It's cheap, go for it.)
• Once you're done with everything:
  • LAUNCH your internet-based business!

Remember the only way to succeed online is to have the mindset that:

"You are an entrepreneur that owns a company that transacts business mainly through the internet."