Making money online has never been easier thanks to the internet and technology. There are countless ways to generate an income through online platforms, apps, websites and more.
In this comprehensive guide, we will explore the most popular and proven ways to make money online in 2023, from side hustles to full time careers. Whether you want to supplement your income or are looking to work fully remotely, there are options for everyone.
Popular Ways to Make Money Online
Here are some of the most common ways people are earning an income online:
Blogging
Blogging remains one of the most popular ways to earn online. By creating content around topics you’re knowledgeable and passionate about, you can build an audience and earn through things like affiliate marketing, sponsored posts, online courses and coaching.
Pros
- Low barrier to entry – you can create a blog for free on sites like WordPress.com or Blogger
- Work on your own schedule and about topics you enjoy
- Potential for passive income through display ads, affiliate links and other monetization
Cons
- Can take significant time to build traffic and earnings, especially for new bloggers
- Relies heavily on your ability to market and promote your content
Freelance Services
Offering freelance services like writing, graphic design, web development, virtual assistance and more can be a great online side hustle or full time business. There are many sites that connect freelancers with clients including Upwork, Fiverr, Freelancer.com and more.
Pros
- Huge variety of freelance skills and services in demand
- Flexible schedule
- Ability to work for clients all over the world
Cons
- Can be competitive especially for new freelancers or popular skills
- Irregular income depending on projects
- Need to spend time marketing services and finding new clients
Affiliate Marketing
Affiliate marketing is the process of earning a commission promoting other companies and products. You find affiliate offers, promote them to your audience and earn a cut of any sales generated.
Pros
- No need to create your own product or service
- Recurring commissions possible as long as affiliate link exists
- Wide range of products and services to promote
Cons
- Reliant on building audience or traffic sources
- Commissions typically small, requires high volume to earn significant income
Selling Products Online
Creating your own products whether digital like ebooks, courses and graphics or physical products and selling online through your own store is a popular online business model. You can sell on marketplaces like Amazon or Etsy or sell directly through your own ecommerce store.
Pros
- Higher profit margins selling your own products
- Recurring income possible with digital products
- Large marketplaces like Amazon make selling easy
Cons
- Requires creating or sourcing products to sell
- Need to invest in product development
- Managing and marketing an online store takes work
Dropshipping
Dropshipping allows you to sell products online without actually stocking inventory. You find dropshipping suppliers, list their products for sale on your website, and earn a profit on each sale. The supplier handles packing and shipping the orders.
Pros
- Start selling easily without upfront inventory costs
- Faster time to start earning vs private label products
- Lower risks associated with holding inventory
Cons
- Low profit margins selling other suppliers’ products
- Reliant on supplier for fulfillment and quality control
- Lots of competition selling popular dropshipped products
Social Media Marketing
Building a following on social media platforms like Instagram, TikTok and YouTube can lead to earning opportunities through sponsorships, affiliate marketing, advertising and more.
Pros
- Free to create accounts and post content
- Massive reach potential on some platforms
Cons
- Very competitive and challenging to build a large following
- Requires consistency and strong marketing skills
- Unpredictable income reliant on sponsorships or platform monetization features
Renting Out Assets
Apps and sites like Airbnb, Turo and Rentah allow you to earn passive income renting out things like your home, car, parking space, storage units and more when not in use.
Pros
- Earn extra income from existing assets
- Flexible way to work when it fits your schedule
Cons
- Need to have high-value assets to rent out
- Extra work cleaning and maintaining assets between rentals
- Dealing with customers/renters can be challenging
Consulting / Coaching
Monetizing your expertise by offering consulting or coaching services can be highly lucrative. This is best for those with in-demand knowledge and skills that others are willing to pay to learn.
Pros
- Leverage your specialized knowledge and experience
- Flexible schedule and work remotely
- High hourly rates possible for qualified experts
Cons
- Inconsistent income depending on client work
- Need qualifications and expertise in high value field
- Requires strong marketing and sales abilities
Online Surveys
Participating in online surveys through sites like SurveyJunkie, Swagbucks and InboxDollars is an easy way to earn a small side income online. Most surveys pay just a few dollars each.
Pros
- Very low barrier to get started
- Flexible to do during free time
Cons
- Very low hourly pay for time spent
- Limited availability and number of surveys
- Lots of disqualifications and time wasted on low quality sites
Online Tutoring
Tutoring students online is a flexible way to share your expertise and earn. Sites like Varsity Tutors and Chegg Tutors let you set your own hours and rates tutoring K-12, college students and adult learners worldwide.
Pros
- Convenient way to tutor from home
- Set your own availability and rates
- Opportunity to help students learn
Cons
- Need expertise in subject you want to tutor
- Income relies on student demand and bookings
- Can be challenging to grow private client roster
Flipping Items
The practice of buying items at thrift stores, garage sales or wholesale and reselling them for a profit is known as flipping. Popular products to flip include books, vintage decor, furniture and more.
Pros
- Can generate large profits with valuable finds
- Allows you to work flexible hours
Cons
- Sourcing profitable inventory takes knowledge and time
- Listing and shipping items is time intensive
- Storage space needed for unsold inventory
Ride Sharing
Driving for a ride sharing service like Uber or Lyft is an easy way to earn extra cash when you have free time. You get to be your own boss and set your own schedule.
Pros
- No boss, set your own hours
- Decent pay per hour in most markets
- Get paid cash weekly
Cons
- Need a qualifying car and insurance
- Pay can vary greatly by market
- Dealing with customers can be challenging
Highest Earning Online Business Models
The business models and side hustles above represent a wide range of earning potential, from just pocket change to over $100k+ per year. Here are some of the online business models with the highest earning potential once established:
Online Coaching & Consulting
Monetizing your hard-won experience, knowledge and skills through coaching and consulting can become a high six or seven-figure business. Experts in areas like business, marketing, health, finance and more can charge premium rates.
Info Products
Creating digital courses, ebooks, online tools, templates, etc around your expertise is scalable. Top creators earn well into the six figures from backend sales after building their audience.
Software as a Service (SaaS)
Developing a subscription-based software service can become a passive income machine. Popular SaaS platforms earn anywhere from a few hundred to tens of thousands per month.
Ecommerce Stores
Building a brand around a unique or innovative physical product you create or source and selling directly to customers online is hugely profitable for some. Top stores earn eight figures.
B2B Lead Generation
Businesses providing high-value services to other businesses like digital marketing agencies, PR firms and IT companies can generate enormous revenue catering to enterprise clients.
Ad Agencies
Digital advertising and PR agencies that manage campaigns and platforms like Google, Facebook and Instagram ads at scale earn immense recurring revenue from client ad spends and retainer fees.
Choosing the Right Online Business
With all the options available, how do you choose the right online business model to pursue? Here are key factors to consider:
Skillset & Experience
What skills, knowledge and experience can you leverage? The best opportunities build on your existing strengths.
Available Time
Some models like consulting require intensive time investing in clients. Others like affiliate sites can become passive income.
Startup Costs
Creating an online course has lower startup costs than an ecommerce business which requires more initial capital.
Profit Potential
Certain models like info products and agencies scale better into higher earning potential over time.
Enjoyment
You’ll stick with a business longer if you have a genuine interest or passion for the type of work it involves.
By evaluating your own situation against factors like these, you can zero in on the best potential business models to pursue. Combining a short-term side hustle with a long-term scalable model is a smart approach for many.
Getting Started with an Online Business
Once you’ve selected a business model, here are key steps to take in order to get started:
Research Thoroughly
Dive deep into your chosen business model to learn the steps and processes needed for success. Being informed will help avoid mistakes.
Make a Plan
Map out goals, needed actions, launch timelines, initial budget and performance milestones to keep you on track.
Handle Legalities
Take care of licensing, permits, insurance and any other legal or compliance items so you operate safely and avoid fines.
Build Your Presence
Create a brand identity and online presence through a business name, logo, website, social media and other assets that establish credibility.
Set Up Operations
Implement the operational details like accepting payments, contracting providers, setting up production/ordering and having accounting, legal and insurance covered.
Market & Sell
Start getting the word out through promotional strategies like content creation, search engine optimization, social media, advertising and partner outreach.
Tips for Online Business Success
Follow these crucial tips to help grow a profitable, sustainable online business over the long-term:
- Consistently Create Value – Offer meaningful help, education or entertainment rather than optimizing only for sales or clicks. Keep benefitting others long-term.
- Reinvest Earnings – Continually put a portion of profits back into improving your products, services and marketing to compound growth.
- Monitor Metrics – Track key performance indicators related to growth, sales, costs, conversions, retention and other factors vital to your success.
- Own Your Audience – Build an email list, social media following and community you have direct access to rather than relying solely on third-party platforms.
- Automate When Possible – Implement systems and tools like email sequences, chatbots, and membership sites to work more efficiently.
- Outsource Non-Core Tasks – Delegate specialized or time-intensive tasks that others can do more efficiently so you can focus on high-value work.
- Diversify Income Streams – Generate income through multiple streams like services, affiliate promotions, digital products, memberships etc so no one channel dominates.
- Keep Learning & Optimizing – Continually educate yourself on best practices in your field and test new tactics to improve results.
Comparison of Major Online Business Models
Model | Startup Costs | Income Potential | Effort Level | Ideal For |
---|---|---|---|---|
Blogging | Low | $50k+ | High | Writers, content creators |
Freelancing | Low | $50k+ | High | Creatives, developers, consultants |
Affiliate Marketing | Low | $30k+ | Moderate | Marketers, influencers |
Dropshipping | Low | $50k+ | High | Aspiring ecommerce owners |
Selling Own Products | Medium | $100k+ | Very High | Makers, creative entrepreneurs |
SaaS Business | Medium | $500k+ | Very High | Developers, programmers |
Social Media Marketing | Low | $30k+ | High | Entertainers, influencers |
Coaching/Consulting | Low | $500k+ | High | Industry experts, seasoned professionals |
Lead Generation | Medium | $150k+ | High | Salespeople, marketers |
Frequently Asked Questions
How much money can you actually make online?
It depends significantly on the business model. Some side hustles bring in just pocket change, while high-earning businesses can generate millions per year. On average, full time income earners make $25,000 to $75,000 through proven models.
Can you actually make a living online?
Absolutely. Millions of people now make a full-time living with online businesses. The most successful leverage their skills and experience to provide high-value products, services or platforms. With persistence and smart strategy, you can earn a great living online.
What online business has the most potential?
Some of the models with the highest earning potential include digital info products, online coaching/consulting, software as a service, professional services like lead generation firms, and compelling physical products paired with a strong ecommerce strategy.
Is it realistic to start an online business?
It is absolutely achievable if you have the right expectations, work ethic and business model. Starting an online business is easier and more affordable than ever. But like any business, it requires consistent effort over an extended period to grow and thrive.
Can I start an online business for free?
Many online business models can be started completely free or at very low cost. For example, you can set up a basic website through WordPress, start posting useful content and affiliate links to relevant products, and begin earning commissions, all without any upfront investment.
What skills do I need to earn money online?
Some of the most lucrative skills include marketing, writing, graphic design, web development, SEO, social media management, and anything involving creating digital products like courses or software.Specialized knowledge in areas like finance, health, business or tech is also very monetizable online.