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- Internet Biz Startup Costs - Part II
Internet Biz Startup Costs - Part II
Freelancing + Coaching startup costs...
991 Words | 4 min 09 Sec Read
Welcome to another issue of Passionate Income.
In Part II of our newest Three Part Series, we’ll be discussing how much it costs to start an Internet business.
In our last issue, we covered e-commerce stores and drop shipping.
Today we'll look at coaching and freelancing, and in our final installment we'll analyze affiliate marketing, Amazon KDP and faceless Pages.
Let’s dive in.
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#3 - Coaching
Tech Stack: $29 - $99+
Advertising: $1,500+
Cost Savings Hacks: Build relationships and do JV webinars to someone else's audience
Overall Costs: $$
As someone who went deep into the high ticket coaching industry from 2017 to 2020, here's a little secret nobody will tell you:
The odds of you hitting a full-time income without doing advertising are extremely small. Why?
Because coaches are a dime a dozen, to the point coaching as a service has become commoditized. Further, most coaches don't understand what business they're actually in (the emotional support business), so they over-index on teaching and under-index on mindset work.
Either way, very few people are strong enough writers - or charismatic enough on camera - to stand out in the uber-crowded coaching industry.
The good news?
Most experts are terrified to run ads.
Meaning, if you can pony up some cash to generate leads, you can skip the (extremely low status) process of cold DM'ing strangers (not to mention the painfully slow process of building a personal brand organically).
Further, if - and that's a big IF - you can figure out the marketing and sales game, most coaches make $2,500+ per client. And because of that, all most people need to hit a full-time income is 2x clients.
#4 - Freelancing
Tech Stack: $0 - $29+
Advertising: $0 - $49/mo
Cost Savings Hacks: Reach out to job board candidates who posted 3+ months ago
Overall Costs: $
As someone who's traveled to 50+ countries, and met countless digital nomad / Internet business types, I can tell you right now freelancing is how 90% of them fund their lifestyle.
For better or worse, freelancing is by far the easiest vehicle to get some cash coming in. Mainly because:
You can start for freeEven tiny businesses hire freelancers, making the pool of potential clients absolutely massiveUnless you're a literal beginner, you can normally charge $500 - $1,000+ for most services
And because of that, similar to coaching, you only need a handful of clients to earn a full-time living.
The downside?
In the US alone, 73 million people freelance in one way or another.
On the flip side, there are only 330,000 American businesses that generate over $1M per year in revenue. Meaning, by definition, 99.5% of freelancers are stuck fighting to land clients with tiny budgets.
And because of that, the industry is insanely competitive, even more so than coaching. To the point you need to be top 1% to earn a solid income and top 5% to afford a decent lifestyle in a first-world country.
The good news?
If you're good at what you do you can earn a serious income as a freelancer. Especially if you do certain types of marketing or coding/computer programming.
On the flip side, services like graphic design and translation have become commoditized to the point you have to be top tier to earn a living.
Not to mention the threat of AI, which will make it impossible for low-level / poorly skilled freelancers to even survive.
💡 Takeaway: Service businesses are the #1 lowest cost, highest cash-flow business model for beginners. Freelancing especially. But remember, if you're trading time for dollars, or running a personal brand, you're not building equity.
I'll leave you with this quote…
"As a freelancer, your skills and experience are your most valuable assets.”
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