I'm intrigued....can you make a living?

theprintingworks · Dec 6, 2008

I see so many people on here with online businesses but what I want to know is can you make a comfortable living from these?

I have the impression that many are run from home, sometimes 2 or 3 different online stores per person, and whilst most are niche markets the websites seem to be somewhat amateur (no offence meant). I see the likes of Lasenza and they have the feel of a large organisation in terms of - warehouses - distribution - quality - guarantees etc, and I can see why people use them but with the smaller sites I'm not so sure people would use them in volume.

I have a traditional business, brick and mortar, and would love to run it from home - but large machinery, storage space, offices etc doesn't quite work from your garage.

I would love to know your opinions and it may also help others who are looking to go down the 'online' route.

cheers

i234i · Dec 6, 2008

could you move to a industrial unit and run it online via that??

I know people like Awesomebadges.co.uk are run from industrial/office type premises rather than a shop and its run by Luke who started in his bedroom and has a good handful of staff in leeds now.

sysops · Dec 6, 2008

theprintingworks said:
I have the impression that many are run from home, sometimes 2 or 3 different online stores per person, and whilst most are niche markets the websites seem to be somewhat amateur (no offence meant). I see the likes of Lasenza and they have the feel of a large organisation in terms of - warehouses - distribution - quality - guarantees etc, and I can see why people use them but with the smaller sites I'm not so sure people would use them in volume.

I think many people start off running ecommerce businesses from their home. Within 12 months most will have either moved to an industrial unit or given up and shut down.

The fact is that apart form a few niches, you just can't make a living much above minimum wage running an online retail business from home.

theprintingworks · Dec 6, 2008

i234i, I do run a business from an industrial unit - I was merely asking whether people actually make a living (good living) running an 'online' business - possibly from home. Maybe I should clarify that what I mean is an 'ecommerce business'.

Sysops - thanks for your reply, and as I expected, I doubt you could really earn a decent living running it from home. No doubt someone will prove us wrong

Mister B · Dec 6, 2008

From my perspective, as Sysops says, after twelve months, you either grow into an industrial unit or you jack it in.

As for can you make a living from it working from home, depends on your expectations and needs. I very much doubt if you could live well (if at all) off the proceeds, as to generate a decent amount of income would entail the processing of too many orders home.

Mister B

homeexec · Dec 6, 2008

I think you could explore your question a little further.

The internet is a virtual entity, which is free to use and not tied into any time frame of office hours. You may find most people earning a living online do just that...they do it online...they do not tie themselves up with a business model that requires a premises, stock, mail etc.

Droppshipping for example, affiliate marketing, advertising, consultations etc.

These types of business run almost on autopilot at the sales end, the work load is actually keeping the website in the public eye by writing new content and marketing it.

If you would like to build a home business, maybe consider taking a step back from your current frame of mind (not saying it is wrong...as it clearly isn't in the real world with bricks n' mortar) and think of a way to use your skills in such an environment.

Share your knowledge and provide a consultation service maybe? You will not earn a whole heap of money from that alone...but if you are good and popular, then the affiliate and advertising space your website will own may well be very profitable.

Myspace has no real use as such, it isn't a "business". However, the volume of traffic means it is worth billions in advertising. You will find on the internet that the initial business as it appears, the way people use it...is not actually how the money is made. This is true for a lot of work at home entrepreneurs...things are not as they seem!

Best of luck in the future...
______________________________

sysops · Dec 6, 2008

homeexec said:
Droppshipping for example

Nonsense. Show me an example of one person making a full time living above minimum wage from dropshipping.

homeexec said:
affiliate marketing, advertising, consultations etc.

All quite viable.

silvermusic · Dec 6, 2008

As for can you make a living from it working from home, depends on your expectations and needs.

Very true. I make less money to what I made working for a major retailer five years ago. Once the mortgage was paid off I decided I wanted a better quality of life and to really enjoy what I do. What I sell is something I turned from a hobby to an income and doing very nicely thank you.

As has already been pointed out, there's many ways to make money on the net that only requires a PC, time, effort and knowledge. I was very skeptcal that it could be done and worthwhile but after trying it for the last few months alongside my main business I'm delighted with the results, money for old rope as my late father would have called it

Peter Bowen · Dec 6, 2008

My living (and that of my partners) is made entirely off the internet. We work from our homes (and coffee shops if staying at home all day gets constricting). The business moved online in 2004 and although the model has changed over the years it's provided a good living.

I've automated tons of what we do but we still work as long and sometimes longer than a normal 9-5 job. I think the get rich quick from your poolside lounger is just a fantasy.

Cheers

Pete

Dec 6, 2008

theprintingworks said:
I see so many people on here with online businesses but what I want to know is can you make a comfortable living from these?

I have the impression that many are run from home, sometimes 2 or 3 different online stores per person, and whilst most are niche markets the websites seem to be somewhat amateur (no offence meant). I see the likes of Lasenza and they have the feel of a large organisation in terms of - warehouses - distribution - quality - guarantees etc, and I can see why people use them but with the smaller sites I'm not so sure people would use them in volume.

I have a traditional business, brick and mortar, and would love to run it from home - but large machinery, storage space, offices etc doesn't quite work from your garage.

I would love to know your opinions and it may also help others who are looking to go down the 'online' route.

cheers

Properly run websites will turn over several time that of a bricks and mortar business ,dependent on product.

Due to online being able to reach 1.3 billion potential customes,as opposed to a UK based business,which would be lucky to reach a few houndred thousand.

Drop shipping can be very lucrative,provided you find the right dropshipper,hence we only deal direct with the manufacturer.

There is also the benefit of no capital outlay.

Earl

Blush · Dec 6, 2008

I run two websites and my base is my bricks and mortar shop.However I do take an awful lot of work home.
It is not a get rich quick thing and I agree with other commetns that if after 12 months you haven't moved to 'real' business premises than you are not going to get very far.
As for dropshipping they are way too many people sitting at home doing this to make money solely formt his.It has also opened my eyes and I am very careful who I buy form now pereferring to deal with sites who actually have the stuff in stock! Or at least know their stock which lets face it if you are only ever dropshipping how can you.

AndySmit · Dec 6, 2008

A lot of companies dropship some of their product range. Effectively dropshipping is a form of outsourcing and is very profitable indeed if you can get a large number of sales everyday as you don't need half as many staff, dead stock lying around,space to store it, logistics etc etc you will need to achieve high rankings in google for words which generate clicks and sales and find a dropshipper with a decent product range and profit margin.

PM me if you need to know a decent dropshipper.

sysops · Dec 6, 2008

AndySmit said:
Many companies ie thegiftexperience, prezzybox etc dropship most of their product range.

You need to be very careful saying things like that...

AndySmit · Dec 6, 2008

point taken can you edit your post as well please!

Dec 6, 2008

AndySmit said:
you will need to achieve high rankings in google for words which generate clicks and sales and find a dropshipper with a decent product range and profit margin.

That Andy is the key to most online business's,hence why most one man work at home business's just scrape by.

Earl

sysops · Dec 6, 2008

AndySmit said:
point taken can you edit your post as well please!

Sorry, too late.

For the record, we're in a similar position to prezzybox, and we don't dropship a single one of our 2000+ lines. Why not? Simply because it's more profitable not to, and it gives us better control over the customer experience.

homeexec · Dec 8, 2008

Dropshipping is not as simple as it sounds and I totally agree it is very difficult to make even a small amount as an end saler.

As with every business however, there are more than one points of sale. If you have a large inventory in bricks 'n' mortar as the initial questioner stated...dropshipping his product line could compliment the current business.

Dropshipping is not a new concept...it has been around for decades. It is the fruition of the internet that names it dropshipping. I have dealt with companies and my old employer especially, deals in exactly the same way as dropshippers do...and they have been established for 30 years.

The mainstream dropshipping as used these days with online marketplace sellers, was not designed to increase the dropshippers sales...it was invented to make money from membership fees. There are some very good dropshippers depending on the product line, but most offer very little and rely on the same over the top sales pitch as get rich quick schemes. The promise of great discounts on most websites is fiction...but this is irrelevant as all they are there to do is make a membership sale.

Should someone ever place an order...the dropshipper will just use a dropshipper...who will use a dropshipper...who will use a....etc etc. This will trace back to the wholesale outlet that like so many have done for decades, dispatch goods to an alternate address.

Don't get me wrong, there are normal dropshippers...some good, some bad...but I do agree being at the consumer end is very hard work. Offering dropshipping as an established business however, may work for some businesses and could potentially be run from home with trusted management in place at the point of despatch.

___________________________________
http://www.work-at-home-executive.com

Peter1982 · Dec 8, 2008

Can you make a living running a website from home?

I don't think you can make any money from it but we started out with all the stock at home and it was a good way to get the business up and running. I agree that if you aren't looking to get premesis and expand within 12 months then you won't make a real living from it.

Everyone has to start somewhere! I'm sure there are loads of big names who started off in their garage or spare room and now run large operations.

domainguy · Dec 8, 2008

I think it depends on the business. Some will sit better online and others can't exist online only. Printing isn't going to fit as a home business apart from a small setup doing canvases and promotional items etc... However it definately can compliment your bricks n mortar and can be fairly risk free. It's not like you have to take out a premises lease and shop fit etc... which is usually the case when going in the same direction imho.

p.s. I have an interest in printing and a site that could do with some promo products. Let me know what sort of printing you do and we may be able to sort something?

Peter1982 · Dec 8, 2008

Surley it's the same as any other business, some make money, some don't.

It doesn't have anything to do with running it from home it's down what you offer your customer, a product or service etc and whether it's profitable.

Some people make thousands from touting tickets on ebay. Not a rocket science business but very profitable and run from home.

Dec 8, 2008

Peter1982 said:
It doesn't have anything to do with running it from home it's down what you offer your customer, a product or service etc and whether it's profitable.

That is the absolute key.

Earl

deniser · Dec 8, 2008

The problem with drop shipping is finding someone who is reliable - who will send out the correct and undamaged goods to the correct address at the correct time and have an efficient billing operation.

There is only one company I trust to dropship for me (Blush you know as you use the same one). For that reason dropshipping will never make me rich plus the margins aren't there in any case.

As for making lots of money working from home, the problem you will face if it is successful enough to be generating money is:
1. having enough space to store the stock and
2. having enough manpower to physically pack the parcels - if working alone you will be limited by the hours in the day especially if you have to catch the post by a certain time.

So yes, commercial premises or nothing. I agree with Sysops (as always!)

redgrape1985 · Dec 8, 2008

I started my internet business using eBay when I was 19. I was drop-shipping sunglasses from the States to the UK and Europe. I dropped out of a Uni course (aerospace engineering) to develop my internet business. I now have 6 online stores all drop-shipping from the States and offices on the Quayside in Newcastle upon-Tyne.

Its all about marketing good products and experience. I am 21 now but...

Good judgment comes from experience. most experience comes from bad judgment.
And making a living, my business makes me live! The Porsche helps as well

Dec 8, 2008

deniser said:
There is only one company I trust to dropship for me (Blush you know as you use the same one). For that reason dropshipping will never make me rich .

!

In that case you are selling the wrong product.

Have the wrong dropshipper.

And the wrong SEO.

I could work out of a laptap with a dongle ,and sleep under Brighton pier.( not this time of year though )

Earl

deniser · Dec 8, 2008

sirearl said:
In that case you are selling the wrong product.

Have the wrong dropshipper.

And the wrong SEO.

I could work out of a laptap with a dongle ,and sleep under Brighton pier.( not this time of year though )

Earl

But plenty of the right product which is not being dropshipped!

And there's certainly nothing wrong with my SEO.

I just like to have control over what goes out and how.

Dec 8, 2008

deniser said:
And there's certainly nothing wrong with my SEO.

In that case you must be rich.

Earl

deniser · Dec 8, 2008

sirearl said:
In that case you must be rich.

Earl

Maybe I am?

homeexec · Dec 8, 2008

In my experience, dropshipping mainstream products is a lot less profitable. Products that are unusual are difficult to find because they are not marketed well enough or the business is too small. As a dropshipping saler, your job is as everyone (including myself) has already stated...marketing effectively...and great seo when using online.

My previous business worked in the exact same way as "dropshippers"...however we did not use the internet at all. Final turnover in 2007 was 4.3m gbp...I think many people don't realise where dropshipping came from and believe the naff sales pitches on sites claiming to have high profile products you can dropship at profit.

God forbid anyone has ever paid for a "dropshipper list"....thats an entire different pet peave!

Connexions · Dec 9, 2008

Success in dropshipping is all about finding the right niche. Dont make the mistake of selling all manner of dvds, books or computers. Pick a 'category' that isnt too mainstream and focus on that.

Dont just shove 5k products on your site either, seen that many times even after ive advised them not to do it, and they fail hard. Trying to maintain so many products is insane unless you have a workforce capable.

Let me give you an example, from the other week.

Client wants to setup a shop dropshipping toys and games. I immedietly suggest that it is too broad a subject and competing will be very difficult. So i ask them if theres a category within toys and games that they are more interested in. After a while they mention soft dolls and we go with that.

We advised them of several dropshippers, and they concentrated on only the soft toys sections. Not too many mind you, or maintenance will be harder.

So we build them a site selling soft dolls for small kids, theme the site around that, add in about 100 products for them to focus on. To build on the number once they are comfortable with maintaing the site.

They, in my opinion, have a much better chance of success doing it that way.

homeexec · Dec 9, 2008

I completely agree with Philip, it is all too apparent these days. I think it is definitely worth while stepping back from one's initial idea before going ahead full bore with a website that may well be too competitive.

This is true for any online business, but as we are talking about dropshipping...you should stop and think how many others have gone there before you. I would say dropshipping has only been common language or practice since around 2001. Before that, it was much more a niche topic in itself. For arguments sake, lets say 7 years have passed since it became very popular. There are billions of internet users, but if we just take ebay for this example. On average there are 500'000 computer related products for sale at any one time in the UK. I would not think it unreasonable to claim at the very least 35% of these products are dropshipped. Baring in mind this figure will change numerous times a second...in an average month that could potentially be 175'000 products multiplied by a typical 3 day listing (for arguments sake)...that would be 1.75 million products potentially listed for sale using dropshipping in cumputing alone. Multiply this by 7 years and you get the idea. These figures are rough and my own very quick example...but wanted to put into perspective just how many people are doing any one thing. Take into account the rest of the internet, the rest of the world etc etc...be it dropshipping, affiliate marketing, news, advertising, consultancy, you not only have millions of competitors for your keywords on search engines...but actually millions of competitors in business.

Making a living online can be very tough, you need to be either particularly savvy, a genius, very hard working, or just in the right place at the right time. For a bricks and mortar business, I would say it is more likely to show success in the real world if you work it in the real world. Using the internet could compliment a real world business but starting one from scratch can be very difficult online. As people said, if you are not in premises within 12 months...it may very well not happen.

Using the skills you have in an online environment requires you to use them in an online way. There are so many many ways to use the internet to make money, I really do believe everyone has something of interest in the 'ol chesnut and if used correctly...can find a business model that suits.

___________________________________

LBtrading · Dec 9, 2008

Dropshipping is just a business model.

You business will not fail simply because you choose to dropship rather than stock your product. The only thing it will effect is Your profit margin full stop.

For instance, You decide to start an ecommerce site selling dvds, books computers as stated above, It will not make the niche less competitive becasue you decided to dropship or buy the stock in.

If your website doesnt have traffic or convert then it will fail. If it does have traffic and converts then you can be successful whether you decide to dropship or buy stock in wholesale.

lets say your website sells 100 dvds a month

if you buy in bulk the cost of the dvd is £5 including postage and packaging to your customer you sell the dvd for £10 including postage to your customer you make £5 gp

so in total £500 gp

If you use the dropship bsuiness model the same dvd might cost you £7 shipped to your customer. so you sell the dvd for £10 and make a £3 gp so in essance make £300 total gp

Wholesale business model = £500
Dropship business model = £300

The amount of sales you get doesnt increase or decrease whther you decide to dropship or not.

This is obviously just simplified to show that you can be successful If you Dropship as well as unsuccessful.

The customer when browsing the website wouldnt know if you were dropshipping or storing stock unless you stated it.

There are good suppliers and bad suppliers whether you dropship or buy wholesale.
Going direct to the manufacturers is best if possible. The best advice I will give is have the website built and looking professional before approaching the manufacturers as there brand is important to them and they will not make a decission untill they have seen your website. aslo explain that you have a strategic marketing plan or are great at seo or have a big budget for marketing because they will get requests all the time from people that will not take action and will probably not make many sales so you need to stand out and show you are serious about the business.

Hope this helps

Bruce_Andrews · Dec 10, 2008

It all depends on your "product".

There are many examples of tangible products that are purely sold online
e.g. a certain online office products retailer makes good use of the wholesalers to service the physical product side of his business - in theory, the rest of the business could all be run from a home base, with the staff all connected via the great "www". £20M + t/o with 23 staff and (allegedly) 6% to 7% net profit!
But you need some impressive and slick (i.e. expensive!) systems to run the processes.

Niches work well, but tend to be luxury goods - fine pens, luxury cars, stamps, specialist pottery, executive toys, etc.

You could always write a book? A bit flippant, but as a copywriter, you could do it all from home.

Many IFAs are independent, and despite the current economic situation, people still need insurance, have pensions, etc. Perhaps not strictly speaking online, but many do a huge amount of SEO to get leads.

But is this really online business?
or is it just that the majority of the leads/sales are generated online?
and do exhibitions, customer visits, networking all class as online?

Its actually no different to a bricks and mortar business:
If customers WANT your product you can charge a premium.
If customers NEED your product, theyll look for the best value for money, or simply the cheapest!

And assuming you find a product, you then need to find that elusive beast - a customer!
Then all you need is to provide great service!
Simple NOT!

If you want a chat, let me know Im in seeing Chris at ASL next week.

Optegris · Dec 10, 2008

In answer to the original question, can you make living working from home, then yes you can as long as:

1) You are prepared to work long hours at the beginning to establish your business
2) You are supported by your friends and family
3) You are prepared to make sacrifices to succeed
4) You love what you do or what you sell
5) You are absolutely passionate about customer service
6) You can establish a profitable niche or supply an existing business model better than your competitors
7) You are tenacious and not prepared to give up...

I started up in 2004, I work from an office in my home and I am comfortable although I can't quite afford the private jet yet so yes it can be done

Villy99 · Mar 2, 2009

First I would like to say a big "HI" to all...Well...according to me Online business can make you more than sufficient living. All we have to do is, opting a good online business category that suits you best...

I wish you the best in your career...

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I'm intrigued....can you make a living?

theprintingworks

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