It Takes Money To Make Money, the Fallacy.

Last Update: October 14, 2016


\I hear this statement all the time.

“It takes money to make money.”

It is probably the most rehashed statement I hear these days in the business world and to it has always been this way. I even see people making that statement when they don’t have money.

That creates doubt and often times is self serving as another excuse why you cannot succeed.

If you don’t have a substantial budget, that is fine. If you have a budget, it can be well served to create a very successful if done right, but by no means is it required.

The reason you don’t need money. The internet.

The Cost of Building a Business Has Changed.

Prior to the Internet that it cost a significant amount of money to start a business.

Sure, you could start a lemonade stand for under $50, but that’s what you ship your kids out to do on hot summer days. No reasonable adult is going to be out there selling lemonade. But prior to the Internet, if you didn't have $10,000's to budget on a business (or more), you were out of luck.

Before the Internet, the costs of creating and owning a business were incredible. The failure rates in business were incredibly high and that is part in parcel due to the expenses associated with starting an offline business.

Some data indicates that 95% of all offline businesses fail. There are many reasons for this, but one of the main ones is that they all have an operating budget and as soon as you run out of funds to operate an offline venture, your business is doomed.

Let's have a look at the real costs of owning some of the most common types of offline businesses.

Costs of a Conventional Offline Business

The conventional costs of starting a business haven't really changed over the past 14 years, the time in which I have been navigating the online world. If anything, starting an offline business has never been higher.

Let’s look at the real costs just to start an offline business...

As you can see, the range from $60,000 for a small coffee shop kiosk to $850,000 for a gym.

And this is just to get started. Not to mention monthly expenses. Food, gas, heat, hydro, equipment, maintenance, labour, phone, employees, internet...it goes on and on.

In most circumstances, starting an offline business requires you to go into major debt, max out all of your credit cards, borrowing money from friends and family, give up ownership in a percentage of all of your business and profits.

In addition, most start-ups require folks to go get a bank loan or have access to a good deal of financing to start your offline business ventures, whether that is a restaurant, a coffee shop or a barbershop.

So if you were to say "it takes money to make money" about an offline business, you are correct. Most of the time it is "borrowed money"!

Internet Has Minimized Start-up Costs. Drastically.

The thing is, the Internet has really flattened the playing field between those that have the MONEY to create a business and those that don't. Now everyone has adequate money to start a business, regardless of your situation.

Those with little money have the same opportunity as those with lots of money. Let's have a look at the average start-up costs for an online business.

As you can see, between website design, hosting and website security, education and mentoring you can expect on average of around of just $1,500 per month to start up and run a business (monthly). There are many services out there that charge this and in most cases, you have to join 5-10 services to manage your business.


It is definitely a lot more affordable to run an online business than it is offline. But there is a MUCH more affordable way to start a business online. One that removes the argument that it takes money to make money. Want to know what that is?

Wealthy Affiliate.

The REAL start up costs for a business at Wealthy Affiliate.

The total cost of starting a business online, growing and managing your business online within Wealthy Affiliate is $49 per month (or $359 per year). That includes everything and from this you can absolutely create and grow a business to any level of success online.

With 3.4 billion people online, an online business has WAY more potential than any offline, and much more expensive business could have.

The argument that "it takes money to make money" is now a complete fallacy. There you go, I said it.

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AmyPaul Premium
I've experienced this first hand. I spent twice that startup with a company in order to get my first internet business off the ground (a cool, one time payment of $3000), only to be left with four pages of content, no sales, and NO IDEA what to do next.

Fail.

My second experience was only slightly better, costing me about $200 per month for 8 months, and ending with one sale and NO IDEA what to do next.

Fail.

You can spend the money, trust the developers, and end up with absolutely nothing to show for it. Wealthy Affiliate is a STEAL, people! I've learned more in 4 days FOR FREE about building my brand than I have in 2 years (at a cost of over $4000). It is beyond my comprehension that WA is only $49 a month!

Thank you Kyle and Carson!!!! I'm your newest number one fan!

Amy
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revluctlc Premium
Kyle, Great post, and very informative:) Made Me chuckle:) a bit when I saw, the teeny weenie, Green bit for WA against the other companies :))
I do wonder why people moan about the price, I think the price is fair and manageable, and worth every penny, or dime:) even your year price is fair, but i cant quite stretch that yet, but I will do, when I can:)
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Kyle Premium
And we plan to keep the price the most cost efficient in the industry. We have been around for 11.5 years now and haven't raised our prices during this time and have no plans to do so in the immediate future.

Hosting services comparable to what we offer are $250 per month, or $3,000 per year. That is JUST the hosting side of things here, not to mention everything else someone is getting.

What happens is that many people come here and they have had experiences in the past and realize how incredible the value is here. Or if they haven't had any experiences, some venture off but come back when they realize what is out there.

We some awesome stuff slated in the year ahead. :)
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DaveF1 Premium
I sure appreciate your perspective on helping others find there way. I for past 9 yrs. have layed out more money towards programs to learn by only to find out its not for me or get over whelmed and give up because i was to dam shy to bother to ask for help. I don't feel that way in your business I also feel like i'm becoming more myself then i ever have felt and that in it self has been my biggest quest, to be excepted and liked and loved not for what you have or accumulated but just for being yourself.
I been giving it all away and selling off collectables to become person i always wanted or needed to be.
Thanks for being such great guy, i look forward as well to help others move on up as i gain value
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Danyel1 Premium
Great post. But you know what's disturbing, even at a low cost of $49.- people are complaining. The way I see it, people want to run their own business or they don't. If $49.- is too big of an investment, and may I say an investment for oneslfs financial future, then by all means they should carry on and run the rat race.

Cheers,

-Danyel
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rexwee Premium
I'm almost guilty of the same crime as I was deciding whether to join WA or not last week. I think it's due to the mindsets the we have. Now that you've reminded me, 49/month is so worth it beyond our wildest imagination- if you look at the from an entrepreneurship perspective. Thank you! And thank you, Kyle!
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Kyle Premium
That is the nature of how people react to anything, sometimes when people pay more they feel they are getting more value naturally because they are paying more.

We have been forging forward as industry leaders for 11.5 years now and 2017 is going to be more of the same. The price point remains the same, the service only continues to get better with each day that passes.

Expect some awesome stuff in the year ahead!
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I KNOW THAT $49. IS A HELL OF A DEAL IT IS, BUT IT IS ONE THAT I MUST EARN FIRST. PLEASE FORGIVE THE CAPS LETTERS, PLEASE, IT IS PURE HARD CORE BLINDNESS THAT AGAIN I AM TOO POOR TO AFFORD THE TOOLS THAT I NEED TO SEE TO TYPE. SO THANK YOU FOR YOUR PATIENCE! WHEN YOU LIVE OFF OF $1,100. PER MONTH & YOUR RENT SUCKS UP $900. OF THAT, WELL YOU CAN DO THE MATH, BUT YOU KNOW WHAT, BY GOLLY THERE HAS TO BE A WAY OUT OF THIS DARK HOLE I CALL MY SURVIVAL, AND IT WILL BE WITH YOUR HELP TO HELP ME GET AN INCOME VIA A WEBSITE, SO THAT I CAN THEN UPGRADE MY STATUS, SO PLEASE BELIEVE IN ME KYLE THAT I WILL UPGRADE THE VERY MINUTE THAT I GET THAT $47. COMING IN, I PROMISE. SO NICE TO MEET YOU DADDY, SO MUCH CONGRATS, AND I WAS ALWAYS A DADDY'S GIRL, THERE IS NOTHING LIKE A FATHERS LOVE, NOTHING! THOSE GALS ARE THE LUCKIEST GALS I HAVE SEEN IN A VERY LONG TIME! HEY IF YOU EVER NEED PARENTING ADVICE, I AM YOUR GO TO GAL! I ONLY HAVE 1 OF MY OWN (SHE IS 37) BUT i HAVE RAISED 5 STEP CHILDREN FROM 2 YEARS UP THROUGH HIGH SCHOOL & SOME COLLEGE, AND RAISING MY 1 AND ONLY WAS WAY HARDER THAN THE OTHER 5 PUT TOGETHER! PLEASE STICK WITH ME DADDY SO THAT I CAN GET THAT UPGRADE SOON, OK? MEETING YOU , THE PLEASURE IS ALL MINE! I HAVE BEEN WAITING CLOSE TO 30 YEARS FOR YOU TO SHOW UP, & I AM STOKED THAT YOU HAVE FINALLY ARRIVED!! PLEASE KEEP THE PICTURES UPDATED ON THOSE GALS!!
THANKS;
CINDY BURNS
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revluctlc Premium
Totally agree Danyel, $49 is great, considering the normal price of setting up site's from other companies to be honest though all my monthly pay check goes on bills, at the mo, and that's full time hours, 46 hours per week, in a night job 12 hour shifts, as a Care Assistant, (bit of a low wage) but the job just about fits into my life, my family which is the most important thing for me.. but id rather be working at home full time, time for change and all:)

I want to succeed and get out of the rat race, and will do anything to get that $49 and after paying what bills i can, put aside my $49, it in my savings account, till it comes around to pay WA, even if I can't pay another bill, that month because of it.. because I so know this is the best decision I've made in creating a business for myself, and worth it, just hope I can make some money here this year:) to at least pay for WA:)
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Danyel1 Premium
You have a positive attitude, that won't pay any bills, but it sure does help in getting to where you want to go. Patience is the name of the game for everyone that starts out.

I'm on it for a year and haven't made any significant amount of dollars; it would be easy just to throw it all and say "F It!" But that would be wrong; it would be wrong because it is short sighted.

The day you decide that you want to be your own boss, that's the day you have to have your mind made up already.

Is it hard to make money as an entrepreneur, you bet it is! But you know what, it is not much harder than running the rat race.

With a business, success depends on your effort and your willingness to sacrifice. There is no such thing as free in the business world.

I once read a question here on WA that made me shake my head; someone asked the community here if anyone could do the hard work for that person. That is the wrong approach, of course, you need to be aware of "all" aspects of the business.

Entrepreneurship is about doing things, you invent stuff and make things work in a niche that is as small as a stamp. That's where entrepreneurs excel. You are going to be one of the few that carve out success with your bare fingernails because you have the drive to succeed.

Stay on it, don't get discouraged, remind yourself of the time you put in thus far. That should be a driving force for you to carry on. Entrepreneurship is ups and downs; that's just how it is.

I see from your profile that you are on it since August 2016. You have come a long way, 2017 is going to be the "Year Of You."

Shoot a message to Brent https://my.wealthyaffiliate.com/trkstr67
he's into meditation and all that. Connect with him, I'm sure he can give you some real good information.

Keep being awesome; you are on the right track.

Cheers,

-Danyel
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revluctlc Premium
AWWW:) Thank you Danyel, Shucks..:) apologies didn't see your message before..that's really nice, you are so right, its not all plain sailing, but like you, i'am willing to put in the work, to succeed, even when i don't know what the hell i'm doing, Heh:), but the great thing about the net is you can research, anything,. oh and not forgetting I've joined up to WA, and this amazing community, of entrepreneur's, which is so worth the $49, i will make myself have it.. Our approach to this business does matter, passion for your dreams, and belief in yourself, are but to name a few.. although some days i do have doubts about what i'm doing,..can I achieve this..??.. Its then, that its time to walk away for a while, and either stick on your fave tunes, have a dance around the living room:)) or go outside, and suck in some nature, or go get some sleep.. or meditate Heh Heh:) then you can come back fresh, headed, and from another more positive perspective, and dive in again..Thanks for the link am checking your friend out now, Thank you, for your perspective.. heres to you making your first buck very soon.. friend:))) owh,, and me too:)
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Kismet12 Premium
That isn't entirely true. The Jaaxy account is $20 a month. Getting my own domain, and thank goodness I decided to check out google before signing up with GoDaddy, as it only cost me $12 a month, and I didn't have to come up with a year in advance.
There were still quite a few more tools that were highly recommended, but I just can't afford at this time.
So you can see the bare bones is still close to $100 a month.
Yes, I know it wasn't required for those but every time I turned around, these were suggested.
I am on a fixed income and live alone, so there is no other income coming in. I don't even own my own home, the way I should have at my age.
But is the cost were not as low as they are, I would not even be able to consider this program, so I do want to thank you for that, and allowing me a chance to one day be amazed that i even worried about these small amounts.
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Jim-Bo Premium
recommendation:

Move hosting here
Don't use Jaaxy,, use the free tool here
Go yearly on black friday

Total cost.

299 for yearly = $25 a month. Bargain
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JayWardDDLLC Premium
Jaaxy is unnecessary and domains here cost yearly what you pay monthly..

It cost exactly $36 for 30 days to come up with another 50 for the next month. Anything you are paying for beyond that is, in your circumstance, mine as well, a few others I'm sure, completely unnecessary.

That's a dollar and twenty cents a day total operating cost, not including your time...You get around the clock training, tech, operations, even customer service support *almost* 24/7.. For a buck twenty a day. You would need to save a mere 12.50 a week to maintain your business after the first month.

Don't have to spend a dime on top of that to start making that 12.50 from your efforts. Now you have 50 extra a month to invest..

I just wish I had found WA at it's inception.
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Kismet12 Premium
I wasn't saying it wasn't an awesome deal, just that there are some of us so close to being a bottom feeder, I am already thinking I am going to have to give up my cell phone while I work this plan because I am not expecting to get rich overnight or necessarily at all.
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Magieken Premium
I am like you. I live alone on a fixed income. In the beginning I used the free keyword tool (stilll am) and everthing else that was free (Check out Jay's training as well as Kyle's for a lot of free stuff). Once I made my first sale I put it back into advertising on Facebook. The truth is you can get a lot of free tools to use and even thought there may be some costs down the track you can put them off until you are starting to get some money in.
I really wish I had found WA long ago when I was a lot younger. There is so much you can do with the education you get here and you won't get that anywhere else.
Margaret
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CoolCrazyDan Premium
very cool breakdown!
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viyee Premium
Great black Friday = Great price! $299/-
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iscool78 Premium
Totally mind-opening post! That's precisely why I'm here.

All of the training, the help, the people involved... This is something you may need many time and effort (and money) to get in the offline world.

I'd change the argument to "it takes WA to make money".

Thanks for the opportunity, Kyle (and Carson).
Israel.
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CoolCrazyDan Premium
Haha Yes and funny!
It takes Time to make Money!
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iscool78 Premium
You can say that! ;)
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Colker Premium
I truly love this post, the only cost I am not seeing is traffic. But its true to get in another internet program that may take you some where, its $1,500 average. Unlike WA some of them give you a low price to lure you in, and there after you'll have tons and tons of other levels to be at before you can ever be profitable.

I can provide eduaction about offline business, so I know the facts here are in line. Even online security is cheaper than offline.
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JayWardDDLLC Premium
I have to admit, I ignored WA for 2 months. 'Ah, that's just info I can get on the net' or 'This place can get me where I need to be faster'...I had joined 3 different programs in those 2 months. Dropping 99, 49, and 1 dollar on 'trials'.

Know what the trial gets you? Poorer, with their 'free bonuses to make $3000 in a day!' actually only being a week of the same information rehashed and their superstars telling you all about themselves. Not one website. Not one founder personally messaging you. Not one bit of information you couldn't Google for free.

Then getting to the end of your trial and being told, 'Well, you can't REALLY make any money unless you beg, borrow, or steal thousands for our hot new product.' Which, by the way, is non-existent, you are selling magic beans without any hopes of a beanstalk.

I have been active on WA for about 8 hours, haven't paid a dime (I am upgrading, don't beat me) and if I paid for a content writer right this minute, I could legitimately be profitable in less than 24 hours.

Kyle, Carson, and the whole WA community, you folks are a natural shining light in a world of dull lanterns and overpriced bulbs. I wish I had clicked that first WA link 2 months ago.
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MarthaQ1 Premium
You are so right Kyle.

I was brought up with that saying, or actually an even harsher one that said,"Bla flus la tghannaq u lanqas tbus!!" - which is normally used in a funny way but still meaning - without money there are no hugs nor kisses! As even finding a companion or starting a family entails one to have money..... well its another old saying, which normally do make sense in many ways.
I fully understand your concept though, and I deem myself and everyone around here so lucky to have such great opportunities at our reach.
Once again, thank you Kyle
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Kyle Premium
Well here you get hugs and kisses even without money! Something that we pride ourselves in and if someone does have the minimal budget they need to get the most sophisticated service online (in Wealthy Affiliate), they can do so for a fraction of the cost of ANY other type of business, including other alternatives within the online world.
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MarthaQ1 Premium
Awesome!! I admire you for having built such strong foundations and for having had such a wonderful vision in the first place. I did receive many positive comments and feedback, and just love it here. It feels at home!
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Anh-Ho Premium
A brilliant post! The Internet is a game changer. It helps businesses to take less time to identify their brandings not only in the local marketplace but all over the world. Decades of the information explosion may lead to information overload, but if we're well-prepared and taking massive action; we can reach our goals. That's what I always believe.
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Kyle Premium
It truly is, it has lowered the cost of creating a business to next to nothing. If you told someone 20 years ago that in 2016 they would be able to create, manage and grow their business in ANY niche for $359 per year (with no other start-up costs), they would have said you are NUTS.

That is what WA represents to everyone.
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Surfdude123 Premium
I agree. I knew a guy once who bought cheap wholesale smokes down in Mexico for peanuts. Came back across the border into San Diego and sold single cigs for a quarter at the shelters. Made a killing and his startup was the cost of a pack of cheap knockoff Marlboro's.
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Sandmansown Premium
I am so glad to having someone like Kyle explaining this on his platform. There are so many things out there that up front will tell you, $2400 to get going, or $6500 to really sew it up. And I could go on. Wealthy Affiliate is one of a kind and I hope they are around for many more years.
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Kyle Premium
Yeah, so many. In fact, most...across pretty much every industry online these days. Slight of hand is the marketing approach by most, whereas our approach has always been the helping hand approach. Big difference.
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Thanks Kyle, I have been up and down with decisions and all the make money sites that when i go on them i see the cost and turn away. I am very excited to become a part of this community and meeting people that we can all help and benefit from.
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Kyle Premium
I know you are going to love it her Jayson. There are so many programs out there that are in the business of making money, not helping folks. I know you are going to find that we are different and this will be evident from day 1.

If you need a hand with anything at all moving forward do let me know. :)
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thanku Premium
Thanks for the illustration Kyle, Many people think $50.00 is a lot of money but when you compare it to the reality it is actually nothing. $12.50 a week to start and run your own business is peanuts compared with the brick and mortar businesses of today and they are slowly failing as internet sales sky rocket.
I know because i own 2 small service businesses which take up all my time and cost me a minimum of $1,500.00 a month just for the monthly overhead..

Jim
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Kyle Premium
Yeah, it is very nominal...and $50 isn't a lot of money when you go out for dinner or go to the grocery store, but when you apply that same amount to a business people have a completely different perspective.
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DLansing Premium
Thanks Kyle for posting this timely post of yours. I believe that I need to reminded again why I'm in the online business in the first place. To learn new ways of earning income online and hopefully achieve time and financial freedom. This is an eye opener for me and hopefully fires up the motivation of me!
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Kyle Premium
Glad I could offer you a timely post like this. It is easy to lose sight of the bigger picture sometimes and my hopes is always to help people bring this back into check, then to make it a reality!
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RobertWynn Premium
I spent years looking for an internet business. I never bought into the get rich spam. I reviewed and reviewed all the get rich programs and never game them a dime. Then I found Wa and the reviews were good and he told me I was not going to get rich but i could get a good income with hard work and don't quit trying to be a success. This grabbed me and i have not been sorry at all. The premium is the way to go and I couldn't be happier as I see the results of what I have done. looking to the future with WA.
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Jozeph Premium
Hey Kyle

There's no argument, we can definitely start a brick and mortar business with the training here at WA. I'm so proud of what with the help and support from WA and Members, I've been able to achieve so far.

Yup you can have Rolls Royce Aspirations and plans on a Volkswagon wallet, however, what not to lose sight of is that you will have to put in the work.

~IF YOU ALWAYS THINK, WHAT YOU ALWAYS THOUGHT, YOU'LL ALWAYS GET WHAT YOU ALWAYS GOT~

~Don’t be afraid to dream big,
~Believing that your Dream is too big is limiting your potential
~When you catch yourself caught up in limiting thoughts, stop what you’re doing and refocus
~Break the repetitive roof top chatter, or self-defeating thought patterns and cycles
~Trust that the “path” of “how” will become clearer as you advance toward accomplishing your dream
~Strategies, tactics, and resources will show up, even though they might seem at the moment, impossible
~walking a path where future steps are not quite clear may surely take us outside of our comfort zone
However...
Taking action to build our Dreams, doesn't reside inside a comfort zone


BUILD YOUR TRIBE

~Seek out like minded people
~Don’t surround yourself with people who allow you to forget about your Dreams,
~You may well have a group of friends who encourage each other in living out a Life in quiet desperation, a group of negative influencers.
~Rather connect with people that will support you, like right here @ WA
~Take genuine pleasure in other people's success, congratulate and support them.

I could go on here, however, I'll just sign off saying;
Thanks Kyle and Carson, for creating WA
You guys Rock!
J*
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Toshmack Premium
Kyle and Carson, have most definitely worked wonders with WA ;)
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gmegs Premium
Joseph! ... so good to see you again my friend!
You are so correct in what you say.
... keeping my dream alive!
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Swangirl Premium
It is always neat to see you pop up Joseph!
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NWTDennis Premium
Does the aspiring small business person these days even think "brick & mortar"? I don't think so. For a long time Franchising opened the door for some at the expense decreased profit margins, but that still included the burden of huge start up costs that were often financed by huge personal debt.

The internet and the digital revolution has change all that ... kind of leveled the playing field. But still there are unavoidable expenses for aspiring internet business owners.

That is a remarkable graphic Kyle, comparing typical online business costs with WA. Is there any doubt that WA is the best internet business training platform on the planet? I don't think so.
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Kyle Premium
I think a lot of people do, I think the new generation looks for ways to bootstrap a business and is naturally in tune more with the methods to do so, but most people that I talk to in respect to business still feel the offline world is the online business world that exists.

And those that do want to start something online either think it is "flash success" or they have been convinced that it is $10,000's to start a business online and that is simply not the case. You can create, grow and manage your business for $49 per month here at WA ($29 per month if you pay yearly).

There has never been a more cost efficient, yet forward thinking way to build a business and I can assure you that it is only going to get better.
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NWTDennis Premium
The continuously getting better part of the WA training platform is one of the most exciting parts of membership here.

Thanks Kyle.
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chluain Premium
Kyle, I agree. It is more costly to have an offline business as opposed to an online one, but as a premium member of Wealthy Affiliate the regular costs of hosting and tools reduces that. In addition there are so many avenues for support on this site if you need it, that being a premium member of this site is the best way to go.
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JewelCarol Premium
Thanks very much for an insightful post, Kyle, indeed Wealthy Affiliate is an awesome place to learn and earn at the same time, WA teaches us how to build a successful website and how to monetize it, how to write contents that will attract traffic; how to find low competition keywords to put on our sites, how to do social media, etc! What more do I expect? I am certainly grateful, Kyle. :)
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TheBuilder Premium
Hi Carol. Hope you are doing well these days.
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JewelCarol Premium
Hey Ibrahim, I am fine, thanks very much, what are you? :)
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TheBuilder Premium
Working hard to monetize my website
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ManakahaCasi Premium
I think it's great that almost anyone can have the opportunity to venture into creating a business because of all the online tools that are available if people are "willing" to invest. I say that, because a lot of people hesitate because they feel they will get scammed. But little do they know, they are missing out on MAJOR knowledge on how to market online. Between WA and my other affiliation of whom I LOVE, they are an awesome small group, NOW branching to another marketing venture, I am learning SO much and sometimes it gets overwhelming with all the new concepts (to me), but I keep on pushing forth! :)

Thank you for showing statistics Kyle! It's crazy how much it was to start a traditional business.
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tatihden Premium
That statement kept me from starting an online business for a couple years. I now regret that decision but the past is gone, I need to focus on the present and plan the future. You make a great point; at WA you can start an online business with relatively little money.
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AlexEvans Premium
That sets everything out so well Kyle, such a cool post the truth is that bricks and mortar businesses do have that cost structure to set up manage and maintain, a scary proposition at times It does take the time to get them to mature and return real positive results. just like all businesses.
Mind boggling, that we can tap into all that Wealthy Affiliate has to offer for the cost that we get charged to be here, just about pinch myself on a daily basis to make sure that I am not dreaming. The way to conduct business in the age of information is a changing landscape and WA is at the forefront of that change and innovation. Thank you
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Kyle Premium
It cost WAY more money, has way less flexibility, and you have no inventory or limitations to the # of products you can promote.

On top of this, your audience is the world (3.4 BILLION) versus the number of people within your respective town/city. Big difference.
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dominic16 Premium
This is the reason why I decided to do online business. I knew my risk is greater in doing offline business and I knew that my resources are limited.

When doing online business though, your real investment is not money, but hardwork and perseverance. But I believe both online and offline businesses take time to grow, at least it's less costly going online.

Great job Kyle for another wonderful and informative blog. I always love to learn something new from the master. :)
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Kyle Premium
Yes, very true. No different than the offline business world where your hard work and perseverance is needed, but you have incredible costs associated with an offline business.

The hard work you invest in your Internet business can be done from wherever you have access to the Internet, no driving, no opening and closing shop, and from anywhere in the world.
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brooksbode90 Premium
Your post has served to add some real pressure, albeit pleasing an necessary pressure on me, kyle, because, that's one of the messages I included in my content on my in progress website, so it's like you're saying to me 'with such a big message, what are you waiting for'. I often think that such message is a given, and it goes without saying, but I'm frequently hearing that common sense is'nt so common these days, or perhaps, when I seek to do business, I shouldn't take anything for granted. Thanks for your confirmation; it makes a difference.
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Kyle Premium
You are sitting on an incredible and exciting opportunity (and journey ahead) Shelia, just reach for it and don't stop until you hit your milestones. Then create new ones!
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brooksbode90 Premium
You're so very right, Kyle, believe me, I'm seeking to get there, and I do believe your business concept is amazingly sensible, so among other things, I'd like to be able to demonstrate such,so I'm immensely grateful for your push, it's highly necessary, and I intend to keep you posted, regarding my business approach.
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Marlinda1 Premium
This is so true and WA is truly a blessing to me and my family. I am seeing ranking results already and hopefully financial results are not far behind.

I have had this vision for so long and now I'm determined to make it happen. Even my hubby has lost faith in my vision of making money on the internet. I knew it was there but I just didn't know how it all worked. Couldn't afford $2k+ on a coach/guru I didn't trust either.

Thanks Kyle, Carson and WA team/staff/trainers/etc. for making this happen for us.
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Kyle Premium
Yeah, there are many programs that are charging $15-$50K just for the opportunity promote that very same program. That is what the industry has become.

There are some really great services out there, but they all operate independently (hosting, website platform, support, training, classes, tools) and our goal has always been to offer these world class services that lead to industry, all in one place and at a very cost efficient price.
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Megastar Premium
A great analytical display of figures of investment offline/online and their business potential. The choice is Wealthy Affiliate. We have the choice but the success only comes effort, application and with perseverance for as long as it takes till we see the light at the end of the tunnel in success.
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Defiant6 Premium
Thanks for posting that Kyle. I just think of the enormous costs of starting a traditional offline business that my best friend's wife had to go through to start her own business in the downtown area of the town I live in. I know she had to get a substantial loan to start up and she has moved locations twice now.

Here, you don't have to invest very much and you learn such a wealth of information on how to make money and succeed online. I haven't reached the money goals I've set out for myself, but I have started earning money for the first time this year a couple of different ways.

I've started earning money through Google AdSense ads and I've also earned money from doing freelance work for the first time thanks to what I've learned here at WA. I've also started a second website where I've been participating in the affiliate bootcamp here and can't wait to start earning money from that.

Wealthy Affiliate is definitely the way to go if you want to learn how to create a successful online business. It does definitely take time and continuous action, but if you continue to take action and are patient, you will start to see success.
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Kyle Premium
I know several offline business owners, some of which have had to file bankruptcy as a result of their efforts unfortunately. That is what happens when you have big dreams in the offline world, it comes with incredible expenses not to mention time.

The difference about "time" online versus "offline" is that you can be at home spending your time on your business, you don't need to be somewhere else at your physical location. You are not tied to certain hours and you can work on your business when the kids are in bed or when you are off work.

It caters to flexbility and it can create more flexibility.
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DaveSw Premium
Hi, Kyle...

I do agree that the internet has leveled the playing field. Wealthy Affiliate provides the base for properly setting up your online business at that monthly membership cost you mention.

In order to grow that base business faster, I do believe that more money over and above the WA cost must be invested.

There will be tools such as an autoresponder, some kind of an advanced graphics tool, a page designing tool, etc. that you will need to do more with the same time you have...

Certainly, over time, people WILL have success following the tenets taught here...Also, there are tools that are free to use here and there to get you started and save you money initially.

One of the advantages that WA members have is that so much information, advice, and tips are shared here. Many provide access to such sites and tools that are free to use, important for many...

Timeline To Success...

Carrying the conversation one step further, there are many members that either must see immediate returns or within a short period of time have some monies coming in...

I would like to move beyond the "what" and "how" to the "why" here just a little bit...

A chart showing the difference in start up costs will not solve their problem...This can be due to many reasons of course...But they need success now...

The Reality of Online Affiliate Marketing

The reality is that most people will not see significant amounts of income immediately using content marketing that pulls organic traffic, and they must be prepared to tough it out until all of their work starts to bear fruit...

This is where we lose too many people at WA I think...They are feeling the pressure to see some tangible results due to their need for cash, success stories, or maybe for their personal needs...

Ok now back to the what and how...

My Suggested Solution

My suggestion is that such members re-think their strategy and work plans for online marketing - stay in the affiliate niche as that is what they have signed up to learn here, but approach it just a little differently...

Use a Two-Pronged Approach...

For those people, I would recommend a two-pronged approach that MAY involve some additional money outlay, but not much...

Rather than focusing solely on organic traffic, which is what much of the training here provides, they can use a dual focus of paid and organic traffic to get targeted prospects to the offers they promote...

After all, it is through getting traffic to your engaging, educational, and entertaining content that you can monetize your work and make money...

That is what is being taught here...The content that you create with SEO in mind is driving targeted (interested) traffic to your sites and pages...

So let me mention how to plan for and get this targeted traffic that is interested in what you are offering quicker

Paid Traffic (PPC or similar)

You have training on the basics of paid traffic right here, and people can tap into it and get this side of their affiliate marketing going quickly...

Basically, here is what is needed:

(1) A good product,
(2) A compelling ad,
(3) An effective bridge page,
(4) A means to collect leads and
(5) A way to get paid their commissions
(6) Choose a platform to advertise on
(7) Budget (can be as little as $5 a day!)

People can start making money quickly while they continue to work the organic angle...

The two traffic methods complement each other in many ways and with a minimal additional money spend, member's business will grow much faster (as in more income/success/credibility/trust)...

Why Am I Bringing This Up Again?

If there is one theme that seems to permeate through many of the member discussions here, it is that many are frustrated at the pace their business is moving (or NOT moving, more accurately stated)...(Also moving back to the "why" here?)

Bottom Line...

Organic targeted traffic generated from what you learn here works, and works well, given time and focused effort...Plus little to no additional outlay of money is required...

Adding in a paid traffic element, however, can cut the time to get those focused prospects to your pages and offers...Meaning more leads and conversions...

So using this two-pronged approach means that members under pressure to see success/income can stick around, share their stories and cheer us all on to do more as well!

Just my thoughts...

Dave : )
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Toshmack Premium
Well said Dave :)
My plans exactly.
Cheers Tosh.
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DaveSw Premium
Hi, Tosh...

Thanks, M8!

Facts and figures don't necessarily lie, but they can obscure real issues that may be in play behind the facts and figures......

My reply was a humble attempt to dig a bit deeper...I hope it generates more discussion/insight....

Cheers!
Dave : )
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Frenchfries5 Premium
Way to think "out of the box"!
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Toshmack Premium
Yes exactly Dave, I know where you're coming from and to be honest I agree with you.
Cheers Tosh :)
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DaveSw Premium
LOL Michelle, thanks...Some might say I am thinking out of this world...But at least I am still able to think (a little bit) hehe...

It's Saturday early evening here in Dubai, and I still have 3 hours of real work to do...back to it, I'll have to check in tomorrow here,

I want to enjoy a little "down" time tonight...So back to the grindstone...

The posts/discussions here can be quite captivating and informative for sure, I enjoy them a lot...

Kyle has a LOT of insight from his years in the business, and he always has quality for us...Lucky us...

Cheers!
Dave : )
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Marcus1978 Premium
Interesting and valid comments, Dave.

It is definitely true that people get frustrated that it takes so long to start earning money. Most of my referrals, when they post their goals, post extremely unrealistic goals. I don't know what to say when they post sky high money goals like that.

I've made a total of 30 premium referrals, but I currently only have 9. That means 70% of them have left. I assume they gave up, because I don't remember seeing them post messages saying things like, "Okay, great, I've got this now, I can continue on my own".

One of my referrals has been here 5 months and is frustrated that it's not making him any money yet. Maybe the problem is with his impatient expectations, or maybe his website will never bring in a full time income. It's hard to say. In the mean time, while he's still here, I get my monthly cut...

But as I said in one of my other comments, it's possible to run a website for free. If someone wants to write about their passion, they can do it for free on WordPress.com or Blogspot.com.
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Kyle Premium
I agree, good points here David. There is a fast path to traffic and a slower and sometimes more sustainable way, SEO. The "fast" way comes with risks through in the PPC world as there are expenses.

I got my bearings within the online world within the PPC world (my first 3 years online were PURE PPC) and there is actually far more than "beginner" training here, I go into detail within the PPC side of things. The principles that worked back in 2002 when I started, still work now. It hasn't changed.

What has changed is people's mentality about what it takes to create a business. For some reason, ONE MONTH seems to be the time they are willing to invest in their business before they expect results.

Quicker traffic is not better traffic. Quicker traffic can lead you to losing money, so this is a pure trap sucking people into the mindset of PPC without first having the skills and the niche knowledge to be paying for traffic within their given niche.

As for the offline vs. online comparison...

An offline business is not set-up in a month, you are lucky if within 6 months to a year if you are even operational (not to mention in a significant amount of debt).

An online business can be started immediately, results can start happening within the first few months and the efforts within a year can lead to almost full time income if adequate time is invested.

Can it be compared to an hourly wage or a salaried job? Is it lost income if you work at an online business for a year and you earn $5 per hour (what it works out to be).
'
No. Not even close.

The time and energy you have invested into your business, will pay off in the entire next year. This may be a full time income year, without having to invest full time earnings or if you push, you can scale and double, triple or quadruple your business.

And this is not even getting into the "school" argument, which folks need to remember they are very much involved in here. Conventional education loses you 4 years of full time income and typically $60-80K (minimum in expenses). An education can actually lose you closer to $400K in potential income if you look at it that way.
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DaveSw Premium
Hi, Kyle..

I don't disagree for the most part with what you are saying above or in the blog post itself...

My concern is more for those members that do drop-off rather quickly (1-2 months) and why they do so, and how can they be helped to more quickly see results...

Numbers and figures make sense on paper, but when it comes to the actual state of mind of many people, as you say people have that expectation of instant success...

Many need that money they are hoping to earn, and they are risking their money already to be a member here in the hope that this will be the answer...

That is not reality with a content-driven strategy alone, and I think we agree on that too...

In my opinion, I think we lose people here and on other membership sites or those who actually try online marketing period because of these unrealistic expectations...

Many will try it a month or two and then give up...

I do agree also that there is a risk in spending money on paid ads if you do not understand what you are doing, and also why I referred them to the training found here...

If they are spending good money now to be a part of the Wealthy Affiliate family, taking a little further step to learn how to proceed with PPC and spending a little more good money to actually start making money faster may make sense for some...

The result may be that they start getting results, stay here longer, and can take full advantage of everything that is here..

Why?

Their need to earn money quickly is being addressed...

When it comes to PPC, I think the concept of making a sale is the same as with organic traffic (content) or offline or online in general...

As you know, it involves having a good product, getting people who want to buy what you have (traffic), a good sales pitch, a reasonable asking price, and a way to get paid for what you sell (lots more details of course but these are the basics)...

There are many good products that are not scams that people can promote out there right now using PPC (Wealthy Affiliate is one) and sell without having an in-depth knowledge of affiliate marketing...

I think people here can learn about PPC simultaneously with learning about getting organic traffic through content marketing (as you say the PPC training here is detailed and will get them started in the right direction)...

Obviously, they will not be PPC experts starting out. I believe you cover the cautions and risks in your training...This training is not presented until the latter stages of your courses...

Many people leave before they get to that point...As Marcus was saying in his comment above, they think they have learned everything they need to know (we KNOW that is not the case)...

Or they cannot continue to spend money without making more or at least make some money back for their time and effort...

Perhaps some of the people leaving quickly now could stay around longer and just as they are willing to risk the monthly fee for Wealthy Affiliate, they may be willing to risk a little more and work a little harder and realize some more immediate successes?

These are the people my thoughts/comments were intended to reach...

I stand by my reasoning and do not think readers are being misled by stating they should look at some alternatives to augment their content marketing efforts to make money.

They are here to learn how to make money online...They do not make money as expected or needed, and they leave...

Having said that, I certainly do understand your words of caution and I am sure that other will as well.

I do hope that they have been motivated to do a little more thinking outside the box...and maybe take action, whatever that may be...This is the point of a good discussion, and this is one!

Cheers!
Dave : )
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Kyle Premium
The key to getting people over the 1-2 month hurdles is helping them face the realism that a successful business was not built in 2 months. No successful person online or offline did so, it is just not reality.

Then showing them that they can absolutely accomplish any level of success they want online. The limited costs within the online world. The work is LESS than an offline business and can be done from anywhere you have an internet connection, much of the business education can be done on the fly or from a mobile device.

Efficiency is there from both a cost and time standpoint. But being realistic about business is important.

Unfortunately people are being sold on the idea of instant success everywhere they look. This creates an improper mindset, one which pulls people away from the ability to ever achieve anything of substance or even in some cases, forces them to take advantage of others to quickly recoup their costs (many schemes are built off of this very idea).

Trying to force the idea that they CAN create quick success is a broken idea and it doesn't work. It sets people up for failure and even if you take the PPC approach, it comes with incredible financial risks and will lead to losses. This is from experience, we use to start people in PPC training back in the early days of WA (that was the focus).

Seen both sides of the fence and before you building a successful business, you must have a sound foundation and a sound understanding of your audience/niche in place.
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DaveSw Premium
Kyle, I can certainly appreciate your insight and experience and thank you for sharing them with us...

I do understand the need for a solid base...That is what this place provides for sure...

Truthfully I have and continue to pull in information and guidance from many sources in regards to online marketing.

This does not in any way diminish what is offered here, rather it complements what is here...

That is my nature...So...

For that segment of members here that want to give up after a month or two, sadly too many IMO...

Here are my thoughts:

(1) The pressure to have instant success can be mitigated with a clear understanding of what is realistic and what is not...

(2) This is not a shake and bake endeavor...

(3) Be ready to invest in yourself and your business....

(4) Give it time and work it regularly and consistently...

(5) Tune out the naysayers or the close-minded who do not wish you well...

(6) Remember the costs you incur now will pay back tenfold later, and be ready to invest the sums towards that end...Even if it hurts a little (I can remember days of picking potatoes from the fields after the farmers harvest to eat!)...

(7) Sacrifice and delay of gratification are good characteristics to have...

My Experiences.

Personally, I have always been willing to invest in myself...Education, experiences, people around me, time, effort, risk, etc. to better take care of the family...

The background professionally I have required this kind of mindset and behavior too. It was a matter of survival actually when laid to its barest of bones, and it has served me well over the years for the most part...

A plus for this entire discussion?

Maybe new members reading some of the comments here and elsewhere on the WA site can better understand that this online marketing business is not a 100m race, rather a marathon...

Those that have the stamina and the will, plus those who go through the process to get things in place, will succeed. This place pretty much lays the path out for them, if they choose to follow...

That and tenacity, a willingness to stick to it, a readiness to put the investment of time and money into perspective (little money for what you are getting, plus remember they are building a business, not a "pop sickle stick house.")...

There are many paths to success, and this is certainly one that has proven itself over time...

Good discussion and I think a lot of enlightenment for all...Appreciate your time and input Kyle!

Cheers!
Dave : )
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Marcus1978 Premium
One point worth being aware of is that people give up in many different scenarios, not just here. Any time I have ever done any courses at college, many people have dropped out during the course.

I think it's human nature. When we start something new, it's exciting. Then the realisation sets in that it takes sustained effort. Then maybe we get bored.

It's also the bad flip side of the instant gratification culture of modern society. We get so used to being instantly entertained or getting things really quickly, it's frustrating when something takes a long time to develop.

Really, with everything on YouTube, Facebook, etc. constantly there to distract and tempt us, it's almost a miracle any of us get anything constructive done at all.
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DaveSw Premium
Marcus, you are right...

I was in bricks and mortar settings for years (while doing my "day job" as a military dude), culminating in a Doctoral program that I spent 4 years working on (this was years after retirement/earlier schooling was completed)...

I faced a very hard choice during the last bit, though...That "bit" was completing the original research and publishing/defending the dissertation which is essentially what you spent 4 years preparing to complete!

Mama mia!

That was right when the financial crisis hit, and things were "topsy-turvy" everywhere. I had people in locations all over the world for my business (many were in very dangerous places, some not so much)...

It came down to saving the business or completing the schooling...I chose my people and the business...At the end of the day it didn't matter, I might just as well have charged on with the schooling...

I ended up losing a lot of money (not all, but a REALLY big chunk!)...Ouch...

The point is that people do leave something for many reasons, and it really is hard to pin down exactly what that might be...

It is also true that there is a tendency for everyone these days to want things RIGHT NOW...

Look at e-commerce and Amazon deliveries...The same day, one day. two days is commonplace...I can remember we would order something from a catalog and wait 2-3 weeks to get it!

As a logistician, I can tell you a lot about what a waste of resources and the cost to the environment this all is resulting in...It really ain't the most efficient way to move things around...

But that is what people want, or have been told or taught to want...

These also are the same ones that come into WA expecting instant sales. money, etc....

They leave quickly, too quickly, when they find this really is work and a lot to get it right...

Were they to knuckle down, grit their teeth, and fight on, they could prevail...

Metaphorically, this whole thing reminds me of the "Man In The Arena" excerpt from a speech that Teddy Roosevelt gave at a commencement in France (Sorbonne maybe?)...

In essence, what he was saying is that you have to keep getting back up and stay in the battle when you get knocked down...

Also that it is far better to be the person that is in the arena fighting (for success) as opposed to that poor soul in the stands, who does not know the sweetness of victory, nor the agony of defeat,etc.

For me, I think the highs of life cannot be enjoyed nearly as much if you have not experienced lows...You have nothing to compare them to...

Relating all of this back to WA membership...

Staying in the game, that is the key...Willing yourself to push on, no matter the chatter, no matter the situation...This is how I live my life...On the edge, but it is sweet the air I breathe!

Oh yes, for a wrap up of the story regarding the schooling, I ended up getting a Doctorate of Divinity degree....Whooooeeeee : )

I saw the potential after watching a John Oliver episode about how anyone can start a church and the advantages of doing so, etc.

He actually formed one right in front of the cameras on his show - it's called "Last Week Tonight" - excellent expose...Highly recommend having a look at this if you have a chance...

How does Doctor Dave sound lol? At this point in my life, both degrees have the same value - zero. Good for conversation though! : )

Cheers!
Dave : )
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Marcus1978 Premium
Thanks for the mini life story, Dave ;-)

You're like me, writing comments the size of blog posts :-)
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Frenchfries5 Premium
There are so many great exchange of ideas here and you bring up very good points about what is realistic with this business. I am always amazed when I see comments from new members stating "I need money to support me and my kids because I'm out of work". Yikes! There is a wealth of knowledge here, it would be great for more of us to tap into if we choose to. I think rather than offering Las Vegas to members who recruit 300, many of who may drop out anyway, why not create this into a live training opportunity and charge for it. You could just offer it for free to those attaining 300 if you like. There maybe many willing to pay for this type of live training. The online training is great, but live training is so much more effective, allowing for back and forth dialog and multiple expert presenters. I know before we decided to go into the Innkeeper (Hospitality Industry) we went to training in Virginia sponsored by the B&B Team. We paid quite a bit to go. They trained us on every aspect of the business and helped us decide this business was a good fit for us. Their training occurs regularly and are sell outs every time. Just a thought, like you haven't probably already thought of it :) Happy Monday!
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Joaswa2 Premium
Yes, running a off line business is extremely expensive, especially now. Taxes are another huge bite out of the budget. I ran a store
front for 10 years and it is never easy, you would be surprised at how many people think they don't have to pay for service at a small business. But I digress.

Great article, thanks.
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Kyle Premium
Yeah, people forget about the costs when they go into your storefront and I think it is a natural assumption when someone goes into the store that the given store is a very profitable one (and that they owe you something for some reason).
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HPrimer Premium
Kyle, as a serial entrepreneur I can support the foundations of your argument; it is indeed true that in every conventional sense it does take money to expect any success when starting a conventional business. The advent of the internet, and to no small degree the availability of WA, has broken down that barrier. I believe that the single most necessary commodity now required in this new economy is educated discipline. WA is well designed to offer the education, the discipline is what the entrepreneur now must provide.
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Kyle Premium
Yeah, discipline and understanding reality. Both things we try to instil here. It can be difficult at times when there are so many "bogus" claims out there of instant success trying to draw people in.
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emerald860 Premium
Hey Kyle. Great post. If people joined WA to get started it would cost almost nothing. The only thing they would really need to pay for is a domain name. I over estimated the cost of a domain name at $15.00 per year and it works out to be about $0.04 per day! You can pay for that with loose change around the house! Alanna
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Kyle Premium
Never broken a domain down into a daily cost. I think everyone can afford more than $0.04 per day. Find a pop can and return it, you have yourself a domain and a brand!
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Although I literally woke up 10 minutes ago and read this blog through sleepy eyes, your well written and insightful blog has me wondering something else. Perhaps you will have an answer on this.
Let's say with the cost of $49/m for WA Premium, zero experience in marketing and just a random decision for a niche, what are the odds of in the first month making at least the $49 ? Second month perhaps doubling, third -tripling and so on.

Is there a general average of ROI and let's say profitability broken down into increments of time?
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DanTripaldi Premium
Lol I was half asleep too when I read this! Definitely awake now!
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Kyle Premium
Odds are very low. You are building a business. You have to educate yourself on how to build a business before you build one.

That is the mentality that will lead to one never succeeding in business.

If I invest $60K in a coffee shop and have $1,000 in monthly expenses, what are the odds of me earning that money back in a month? A year? 10 years.

If I invest $80K and lose $250K in potential wages going to school. How long will it take me to pay off these loans and make up for these losses. Most data indicates that it is very close to your actual retirement.

Some perspective there...
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MOHUNLALL Premium
Yes KYLE, I agree with your comparison with online and offline trading. Still we have to learn something to venture at each of them. Offline we have to try to succeed or fail. Online we have a lot of guidance and lessons by expert like KYLE and Carson. If we fail in the latter, it would depend on our understanding and hard work.
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Novella123 Premium
Great article showing clear comparisons between costs for offline and online businesses and also other online start-up business providers. (although there are no sources given for the other online provider start-up costs, so I don't know if those figures are specific or generic).
Apart from that, I've just realised (call me slow) that WA at $49.00 a month = almost $600 per year. Making the one-off payment of $359 significantly cheaper.
As always, food for thought, thanks Kyle
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Kyle Premium
Yeah, $359 per year works out to be under $29 per month, so you are right, if you invest for the year the cost of creating, running and managing your business is less than $30 per month. Add a domain and you are still around $31 or so per month.
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TheBuilder Premium
It's so true. I'm happy to have made the right decision at the right time.

... and very soon it will cost me only $29 monthly, because i'll upgrade to yearly.

By the way can I use this blog to market WA; I mean to find out new referrals?

Kind Regards
Usiba
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Kyle Premium
Yeah, even more cost efficient and WAY cheaper than when I started out 14 years ago. That has been our ongoing goal, not only to offer the most advanced platform for building an online business in the industry, but also the most cost efficient one.
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IvoD Premium
Having had a retail business for over 20 years I agree completely with Kyle ,in retail you also have to constantly police you're stock because of shrinkage due to shoplifting ,burglaries etc. Small independent retail business's are also finding it more difficult to survive because of larger monopolies and shopping malls.I eventually tried franchise but ditched it very quickly.I continue to believe that I can make a living on line ,one must just be patient and persevere.
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Toshmack Premium
I couldn't agree more with Kyle on this.
The game plan has changed somewhat for business alternatives and the funding needed to succeed.
It is interesting to read what some members think of WA, but I know which side my breads buttered and I'm here to stay with WA.
Having done the manual hands on hard graft for many years, I wish I could have had this chance with WA 30 years ago.
This is a win win win situation and all the tools, information and training needed are all here, it's only time and a small amount of money needed to succeed.
I'm currently fighting against a disability and mental health issues brought on by hard graft for a very long time over many years and family deceit and lies..
I was left with nothing whatsoever financially, so I know and understand when some mention the costs of training and so forth.
Put it this way, I sold a guitar to pay for my annual membership and it's the best thing I've ever done!
Sorry for the long winded speech, but now I've said it! Lol
I wish success for everyone on the WA path. :)
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wanjigin Premium
Thanks Kyle for sharing! I had always wanted to start a business in my field, but as many people I was stopped because I did not know you could start a business with only $49 a month. Thanks to the internet and Wealthy Affiliate. Thank you for the inspiration once again and keep up the good work!
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CoolCrazyDan Premium
Nice comment
$350/year, 20 hours a week of work,
Limitless possibilities.....
Totally worth being in a community of like minded individuals.
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GCopher Premium
That is Great and matter a fact Information! I used to say that term many times, until after the internet became available, and in its infancy it was still at least half as much as a Brick and Mortar Business. The Internet Opportunity is now more USER friendly, and most folks are able to take courses and learn how to run an online business, One thing I didn't see in your blog to mention is with spending less time working at your online business, and still create a decent income, if they wanted to. Having a Brick and Mortar Biz, you would be working at least 10 to 12 hours a day7 days a week, if not more, keeping your Business going.
Certainly, now more then ever is the opportunity to get into a decent business that can reach Billions of people online.
I appreciate you making that Available to me. I am learning and I am sure to stick with it. Even though I am new to this way of running a Business, I am confident that I can do this. I have scoured the internet for many years,researched many Business opportunities that were way too expensive to get into for a new comer like me, or it really was a scam, however, never have I seen the a community like WA. It is astounding that there are so many, and haven't even scratched the surface of the potential. With 3 Billion plus on the internet, It IS a WIDE open Canvas!!

Thank you for the Blog....puts everything in perspective.

Greg
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Loes Premium
Before I joined WA I was looking in the Netherlands for an online education where I could learn to develop a website. I couldn't find a complete course, only specific parts, like building a website, learning SEO, or learning about keywords etc.

LOI (Leidsche Onderwijs Instelling)
most reputable training company in the Netherlands

Costs Course (Nederlands)

378 Affiliate Marketer

990 Web redactor

388 Sociale Media

900 e- marketing

238 Google Adwords

270 Webstore start

369 Content Marketing

____

3533 Total price
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trailhound Premium
Thank you, Kyle for posting on this topic.

Every time I hear someone say "it takes money to make money" I argue no, it takes sales and marketing to make money.

You can have a huge bankroll to operate a business with but if you can't get customers to buy your product you will go broke.

I could write a whole post on this subject, but I'll just leave it at that for here.

Thanks Richard
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stn67 Premium
I have always loved me if you need money to start a business then your basis incorrectly. Let's say you want to start a coffee shop which is your example. why do you have a room to start with. When you do not even know if you can monetize it. what to start small and start up with a penalty which cost significantly less. or from scratch, start by buying small batches of a specific coffee and then sell on and slowly build it up that way. I have often heard that people think even they have a great idea but that they lack money and can not understand that there is someone who will help them with the large setup
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Anneika Premium
You know that has been the single most thing that has been said to me at every webinar, Seminar Sales Pitch in the last five years so much so that I have truly believed it. I really have a burning question now though????? If Affiliate Bootcamp is for people who may not have that one niche that they are sure they want to launch passionately when you go to the Affiliate bootcamp link you must set up your website first but to setup your website it should bare the name of your niche. Can I get some help in that area because the niche I thought I wanted to go with when I did the research I did not find many affiliate Programs to support it. So I am open to suggestions to start my first.
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Totally agree with the fact that being on line and being able to trade Globally has made all the difference to the cost of starting and buildingf a substantial and sustainable business. Read the 10X Rule by Grant Cabone and see how to substitute Committment and Passsion for $ and make $ with nothing down
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EdwardSeeley Premium
Great comparison Kyle,
The internet and the likes of WA have changed everything and given anyone who wants it enough, a chance to create a successful business model.
What gets people scared of online business models is the "get rich quick" scams out there.
The real investment needed for an online business is time and hard work.
Having the community of WA is the icing on the cake.
Thanks for for putting things in perspective.
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Sdaviscs1250 Premium
Fantastic, Kyle.

Hopefully the non-believers around me will just keep there mouth shut. When I begin to see income steadily come in, I may just keep that from them. When I feel it is the right time, I will break the news.

Again as usual, good stuff in this article.

Thanks,

Sharon
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Nane1 Premium
It is great to hear this from someone who knows the ins and out of internet business. Thank you! I believe it to be true (or I wouldn't be doing this) but it is still great to hear because, as you mentioned, the old adage of "it takes money to make money" continues to come out of many mouths.
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Colorman Premium
Nice post, Kyle. An offline business is a huge gamble. Been down that road and I will never do it again. After years of toiling to grow my business I still ended up broke. Even if you are not making money on an online business, it's not hard to see the potential it holds. 3.4 billion people is a huge number whichever way you look at it.
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BeauAndNik Premium
Every business will fail in the end. It is an eventuality we need to grasp.
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Colorman Premium
Hm. I disagree. Coca-Cola is not going anywhere.
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BeauAndNik Premium
You may not live to see its demise, but every business comes to an end eventually. Whether its a complete rebranding and shift towards a new direction. A change of hands. A change of name. Its current state will fall and a new form will rise.
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Colorman Premium
Interesting. I see your point from that angle. Nothing lasts forever.
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BeauAndNik Premium
Shot bro!
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cosmicradio Premium
Good post, Kyle. Internet marketing and WA are the smart way to go for starting a business in today's world. Even existing off-line businesses are turning to the internet to increase their market and visibility. Why put thousands of dollars into a franchise? We can do it all right here!
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MarseanM Premium
This is Truly a Great Post Kyle because I was struggling to launch a offline business for a while I couldn't find anybody to fund my business and I knew I needed at least close to 1 Million dollars to start up the type of business that I wanted to start but I decided to transition my efforts into starting an online business and wealthy affiliate has to be the best opportunity to do just that!
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NRosales Premium
Thanks Kyle for this great comparison which can be a great tool again to promote WA, the only investment we need to have is time and effort and the 49$ per month is less than having a frapuccino a day, plus the education we are getting at WA is more than worth what we are paying.
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Funkydunc208 Premium
After operating and then selling 5 successful window washing businesses since 1996, an industry doesn't need as great an investment of capital to start, and being a Premium Member of WA for 19 months, I agree with all you say Kyle.
Many of my window washing clients were small businesses that invest stacks of money into their start-up, such as shop refits and equipment purchases, but have little idea on marketing it and finding competent staff. Before long, the shop is empty, the suppliers are owed money and someone else tries to start something in the same space.

Wealthy Affiliate has got a platform that opens up so many doors to business people with such a small start-up and maintenance cost.

Great post, Kyle, and the graphs tell the story so effectively.

Regards,
Duncan
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Michael2020 Premium
Kyle - good article and useful information. But let me place a different spin on this.

Offline Business Models
You've chosen to compare businesses that have high capital costs on the front end - even if you only purchase a food truck, there is equipment involved and that's expensive - although most people would take out a loan to spread their costs - it's certainly true that these businesses have a high capital cost. There are other businesses that do not have that kind of capital cost and generally they can be service-based businesses or franchises with very low fitup/startup costs for service-based businesses. A key point about these high capital cost businesses or franchises is that they can produce revenue from day one. If they don't, where do you get your salary or the money you use to live?

Online Business Like Wealthy Affiliate
Point taken there is very little capital required to start such a business, however, if you plan to derive a living from that business and support yourself, you have at least a 6-9 month period where you most likely will have to support yourself and your living becomes a cost to the business. So $49 per month should be $49 per month for 9 months, and living expenses including internet connection cost, equipment, power, etc. should become a business cost of $3-5,000 per month. So a 9 month startup looks more like $46K.

I have been working on my website for about six months and am yet to derive enough traffic to make a living or offset any of these expenses. And most WA people tell me that I need to give it the time and not expect to achieve that for a while - maybe 9 months or more.

So I think the above is a very good analysis and comparison except that we need to recognize the $46K estimate in real costs in the comparison.
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BeauAndNik Premium
That is a great way to look at it Michael, and something I initially overlooked.

The cost will vary for each of us depending on our current living arrangements. Lots of variables there so I can see why Kyle wouldn't factor that in, but it's still an expense all the same.

I don't know if I would count my entire living expense. For business sake we would need to separate personal. It would be a % at least.
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Funkydunc208 Premium
Great points, Michael. When I bought window cleaning businesses here in Australia, the investment of 20 - 30K meant I had clients from day 1 and income immediately. My goal was then to build it up so that when I sold it, it made me some money. My last business was purchased for around 28,000 in 2010. I sold it for 90,000 in 2015.

I now am back re-launching a window washing business in another state, but the skills from WA have helped me approach it from a totally different perspective.
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Michael2020 Premium
Funkydunc - you bring up another good point that I missed. Some businesses have a resale value based on net income. Your example of a window cleaning business has assets but more importantly paying customers. If you take out a profit when you sell the company, you have to net what that business really cost you - especially if you can sell it within the first year.

I'm not sure about the resale value of a WA business - never heard of anyone selling it or talking about that. I would say therefore it's safer to look at the costs a "sunk costs" and ones you may never recover - spent is spent.
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Michael2020 Premium
Beau - percent vs. total cost - if you have a business your salary is how you derive enough money to pay your bills at home. The salary is a business expense - a cost of operating the business - but to you its essential to have a home and equipment, etc. So to be realistic you really need to assign yourself a salary - a cost to the business of having you work - you don't work for free and if this business is supporting you then you really can't. That impacts the discussion of % vs. a fixed salary - sure your home and living expenses couldn't be attributed 100% to business, but you certainly need to make a living wage. Mine is 10K per month.
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MarionBlack Premium
The cost of living isn't being taken into account in either graph Michael. That's a completely separate expense. Most offline startups don't pay a wage from day 1 and a lot of offline businesses go bankrupt within 5 years.
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BeauAndNik Premium
This really depends if you are relying on this one business to pay for your living expenses. Perhaps you are doing this as a hobby?

If you have a partner who is currently working full time and is able to float the living costs.

If you are a student, living at home rent free doing this.

If you work full time to support your living and are doing this part time.

Each of those scenarios alter the true costs of that business. Time isn't free so it needs to be factored in.
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BeauAndNik Premium
If you are jumping into an offline startup, it would make sense to have at least 1 months worth of wages saved up front.

i have built startup service based businesses and made money in the first 1-2 weeks depending on my terms of payment.
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I don't have 9 months and i am 63 and a financial consultant it is like all these services listen to me and you will make money in the stock market but they don't tell you about the cost & fees involved or taxes 28% for short term, under a year vs 20% for holding over a year. Kyle makes it sound like $490 is the only expense but there are a lot of other expenses, you mentioned the cost of the IT but what about the cost of another computer, it might be ok for checking email and Face Book but if you have no income what do you write it off against so yes it is going to cost you in between $30,000 and $ 50,000 to do it right, being a financial consultant cost me less than $1000 a year plus i also invest and i used to do taxes which i had to have a high speed IT connection and the cost of the tax software, which was updated because i have an account with Merrill Lynch. That cost under a $1000 a year and ML would send people to me because you had to have experience doing taxes on investing.
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david2015 Premium
Great post kyle. Enough said.

I couldn't agree with you more. On my promoting site for wa the topic and comparison between a brick and mortar or an online business is one I had to mention.

My site is currently underway but after viewing your post im curious and anxious to know if could possibly use the graphs you presented here on my site?

Thank you much.

David
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MarionBlack Premium
The best way to use the graphs above is to mention this post and link to it from your website.
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david2015 Premium
Thank you for that. I will do.

Have a good night
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PMbaluka Premium
That's an incredible post. I love the way you've sliced this cost down compared with other companies. Yes, I tried to create a website before and it was too expensive for me till I dropped the idea. In WA I have the best opportunity the world can offer at a very considerable amount.

God bless you Kyle & Carson for coming up with such a software. I feel it was purposely created for me. Many thanks.

Paul.
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stephhill Premium
Great post Kyle. We can use this same argument on our WA websites as well, because yes, it takes lots of money to begin a traditional off-line business, but the beauty of the Internet is that the playing field is more level and with the help of WA, it is even more level.
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ecomtom Premium
I heard that to start a McDonalds franchise, it cost over $4 million, and it takes 4-5 years before the franchise owner is in profit. Not to mention all the headaches, liabilities, etc. Plus, he has to give back to the corporation a percentage in perpetuity. All that to provide society with unhealthy food. Thank you no.
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lowell72 Premium
Hi Kyle; Yes I used to believe that, "it takes money to make money". That is a correct statement, if you are trying to make a living on interest return.
However, I am 79 years, (hmm) young, and have a different view. I remember my parents started with virtually nothing. Then where farmers and they started with one cow and a few chickens. 20 years later, they where talking about retiring.
I started several businesses with a few hundred dollars, and built them to making a good living.
The last business I started, I went to an equipment rental and started with a rental machine, because I would not have to pay the bill, until I was done, so I could collect and then pay the bill.

I just really wanted to thank you for your last line, which is true. What helps is a little imagination and hard work. Also If new to something, like I am here, study what to do to make it.
Thanks again Kyle and maybe this will put a fire under someone and they will see that if, an old guy can do it, surely they stand a chance, and forget about the negative and go to work.
Lowell Radder
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Irvie Premium
I'm old school and have used that phrase a ton. I'm thrilled that I found an opportunity to grow a successful business that i can afford! I've never been afraid of hard work, but lack of money has held me back. Now, that is no longer a major concern. I know that if I put in the work, I will get the returns. That's very exciting!

Thanks,
Irvie
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Kyle Premium
Yeah, it comes off the tongue naturally for folks. It isn't true though, yes money can help you make more money, but it doesn't take money to make money. That is an "old school" idea, the Internet has truly changed things.
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RDunham Premium
Great Post Kyle. That's what make this place great.

Starting any business takes a lot of hard work and determination before you usually make any profit, this is especially true for most online. I think people underestimate the amount of effort and time it takes to become successful, and expect results immediately. Without the training I would be lost, wouldn't even know how to begin. While I'm just starting my website and still training here as a premium member. Day 5, I already know I'm on the road to success. Great post!! I'm so glad I choose to be a part of Wealthy Affiliate. I see that it is worth every cent.

Cheers,
Ryan
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Kyle Premium
Yeah, lots of people underestimate it, but the thing is a lot of people are working just as hard if not harder doing what they are doing in their daily lives, from parenting to their jobs.

Hard work and time shouldn't be things that are unusual. They coincide with any achievement in life and if you can bring those items to the table, you can create a very successful business online without having to have an extraordinary budget.
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RDunham Premium
Absolutely :)
The two go hand and hand.
Thanks Kyle
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gmegs Premium
Great post Kyle - and so true!

The internet and Wealthy Affiliate, gives anyone (especially us little guys) just about everything we need to build a business and viable income source - for peanuts, comparatively speaking.

Gone are the days where the only way to earn a good living was with a college degree. Not that that wouldn't be a benefit, but the bottom line falls with the dollar. ... nuff said

I feel incredibly lucky to have found this place - best money I've ever spent.

Thanks Kyle!
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Kyle Premium
It sure does and it allows us to be dream/passion chasers which is pretty cool (and rewarded for it).

Formerly, you could have all the dreams in the world, say you wanted to open a clothing store, but you wouldn't have the means to do it.

Now you can create that same clothing store environment online, promote millions of products, connect with billions of people, and operate on a 24/7 basis for a 1,000th of the cost. It's powerful stuff!
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TonyHamilton Premium
Awesome Stats and Figures Kyle!

Thank you for putting it all into prospective my Friend and I so agree that it doesn't take money to make money, It takes a lot of effort doing the proper things.

I am working towards being more productive with my most valuable resource, My time.

Thank you Kyle for always sharing and caring,

Tony
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Kyle Premium
The only ways you can create more time is (a) being more efficient (b) hiring help to scale (c) working longer hours.

Sometimes all 3 are the solution, but these are ways you can maximize the growth of your business.
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TonyHamilton Premium
Wonderful Kyle, Thank you for the advice my Friend.
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MoneyMagnet3 Premium
Great article Kyle! I agree. The internet has leveled the playing field when it comes to owning your own business. The biggest investment is time.

And you don't need to have a bunch of time either, as long as you're consistent with it. I think resources like WA are absolutely amazing at helping people start their own business.

Thanks for making this affordable for everyone.
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Kyle Premium
For sure, but time is going to be a huge investment in any business that you want to start. Whether that is a coffee shop or an online business.

I would have to say the time vs. value tradeoff is remarkably better within the online world than the offline and your business is far more scalable through things like outsourcing (which can be done with a click of the button) versus having to hire folks, fire folks and training people (within the offline world).
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MoneyMagnet3 Premium
Totally agree!
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ThomasTay Premium
This is great idea to consider ... outsourcing instead of hiring people and firing them when business no good or worrying what to train them and spending times to guide them. I am experiencing these bad things indeed.
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BeauAndNik Premium
Great post Kyle. The only thing I would say that has been left out of the costs to build a business with WA is a domain and time.

if you are building out your own business then having a subdomain is not the best approach because you can't sell a siterubix subdomain i believe.

Time is a metric commonly over looked and it needs to be factored into your overall costs. This is what a lot of affiliate marketers forget.

What is your hourly rate? how many hours have you dedicated to building your websites? When you look at the hours and put a figure on it, you will find that the majority of affiliate sites are in a negative ROI.

We can't dismiss this time metric. What is the whole purpose of creating an online business? Financial freedom. To allow you to buy back your time.
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Kyle Premium
Yes, both very good points. $14 per year is less than $1 per month, it is not an absolutely requirement so I didn't add it but they are most definitely a good idea to have.

Time is a metric associated with all business and if you know anyone in the restaurant business versus the online business world, you will know that your time goes a lot further and leads to much more scalability within the online space.
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Swangirl Premium
Thanks Kyle,
I see so many people that still think you need to buy traffic. What is the short answer to that? Can we truly do fine with social media driven traffic, organic traffic, backlinks etc? Or do you need to buy some sort of traffic ultimately? I have not bought anything outside of the WA membership and domain and I don't intend to. I prefer organic search traffic and social media etc.

Jessica
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Kyle Premium
You don't have to buy traffic. The people that are saying this are likely "selling" you something that requires you to buy traffic. This is common place within the many schemes out there, that have absolutely flooded things like Facebook.

PPC through Google Adwords, BingAds.com and Facebook can come down the road, but in the infancy of your business it should not be the first focus (and many people never resort to PPC as you can get in essence, unlimited traffic through SEO).
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Swangirl Premium
Thanks for the clarification and assurance! That is what I thought.
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BeauAndNik Premium
Bought traffic can be scaled. measured. it also means you no longer have to rely on the volatile nature of SEO / organic.

You don't need to buy traffic. If you want to scale fast you do. If you want to diversify your traffic sources you do.

Dont put all your eggs in one basket.
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Kyle Premium
Faster scalability is the key benefit of PPC. You are also in full control, in particular when you are using PPC platforms where you are either targeting specific keywords are hyper relevant demographics.

PPC is where my foundation was built and I didn't get into SEO until several years after I had already mastered the PPC side of things. In hindsight, I do recommend gaining an understanding of your niche and building out content before you step inside the PPC world, in particular if you are on a limited budget.

Once you have a budget and some seed money, PPC is a natural way to scale your business.
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