Actual Expected Start-Up Costs

Discussion in 'General Advice' started by tygersclaw, May 27, 2009.

  1. tygersclaw

    tygersclaw New Member

    Okay so one decides to enter into a program and get going with an Online Home Based business, what are the ACTUAL start-up costs one should be looking at realistically?

    The first cost for many going into a Home based online business is a course, or program, such as Profit Lance. But then there is the costs to get hosting, site development, registering with something like Clickbank or Commission Junction, business incorporation, getting a business bank account, advertising, accountants and legal advice, and well...there is a lot more costs than just buying a program that tells you how to make money before you DO make money.

    The costs are more than just the Course/Program costs so, what kind of ball-park figure can one expect to be encountering.

    btw, I have and do run different businesses from home (traditional types) where one could accurately forecast and budget for start-up costs, as well as maintenance advertising costs for the first 6 months of business, but, with this type of venture, many of the costs are hidden initially.

    So, any idea as to what one would see as a average total cost for a new start-up??
  2. getagrip

    getagrip Gold Member

    There is a lot you can do for free online after you have learned the basics. Usually, however, no matter what route you take, you will need to pay a monthly cost for web hosting and an annual cost for domains - outside of these, there aren't too many fees you need to worry about, depending on which course of action you need to take. Later, when you have more experience, you can start getting involved in pay per click advertising, which has significant costs, but also has very good potential for financial rewards as well.
  3. cherie27

    cherie27 New Member

    I agree with getgrip.

    The startup cost are fee for domain(yearly), hosting fee(monthly), autoresponder(monthly).

    Of course, you can start your online business for free. You can make use of squidoo for your webpage hosting.
  4. mountainmom5

    mountainmom5 Gold Member

    I sorta depends on what you are doing but I agree with getagrip...

    1)domain - $9 a year

    2)hosting - $5 -$19 a month

    3)autoresponder - $9 - $19 a month

    (these all come with the SBI package so I didn't have to worry about that ... [​IMG])

    That's about it to get you started and then if you decide to pay for advertising later... but I would recommend learning more about seo before you attempt that.
  5. tygersclaw

    tygersclaw New Member

    I see people mentioning about a Auto-Responder and I am assuming that it is a email Auto-Responder that you are referring to, but is it? If it is, why not use the one on your Web Hosting account which is part of the package (or should be).
  6. A8ch

    A8ch Gold Member

    That's correct, TygersClaw. Autoresponder refers to that critically important tool that automates email responses. While most hosting packages offer autoresponders, what you get is usually very basic and lacks the robust capability and options that you get with professional email service providers such as Aweber, GetResponse or ConstantContact.

    On the subject of projected start-up costs, the above posts all make solid points. A ball-park figure could be $100, $500 or more, (even less) depending on how you decide to get started. (Actually a true *ball-park* figure would be in the millions of dollars, wouldn't it.) Oh, never mind me, I'm just being "literal" and silly. [​IMG]

    The truth is you can get started online with a comparatively small investment, substantially less than what a traditional offline business would require. Plus, you can easily stagger some of those monthly costs and rely on early revenue to pay them when they come due.

    Example: For much less than $100 you can register and host a domain, and then use free resources (Ezine Articles, Squidoo, forums etc.) to promote an affiliate program. When these free tools start bringing traffic, conversions and sales that provide a cashflow that covers expenses with some left over, you may want to consider modest paid advertising. It'll be an additional expense, but one you'll be able to absorb.

    In the beginning your biggest "cost" (investment) will be the time you spend learning, doing and understanding.

  7. Newbie Shield

    Newbie Shield Gold Member

    Hi TygersClaw,

    Sounds like you have a better than average idea of what is involved.

    The startup costs vary widely depending upon the needs, resources, background, and personal style of a given individual.

    Many start for free. Some buy a new computer, a bunch of software, learning materials, pay for a business name, hire an accountant and/or consultant, etc...

    The good news is that you can start for free and buy one or more new things each month. Some stay in free mode for a very long time and seem to be happy with their success. Obviously, you'd have to replace computer components as they wear out or become obsolete.

    The best thing to do is to offer some perspective. Hermas is right: in the beginning, your main "expense" will be the time spent studying.

    The perspective is a time frame issue. It takes most people around six months to grasp a respectable percentage of the fundamentals of online marketing. By then you'll uncover some additional things that you'll need to learn.

    But by then you'll also probably be ready to experiment with some free pages such as Squidoo, free blogs, and article writing along with some new learning.

    Along the way you'll also want to continue interacting on this forum and read from some online marketing blogs.

    One of the first things to do is to take the free 30 Day Challenge at:

    Once you understand Squidoo and/or free blogs, look into Wealthy Affiliate and SBI to see which one is a better fit. Wealthy Affiliate has more of an aggressive hare mentality whereas SBI is more of a long term tortoise thing.

    You'll eventually want to make yourself familiar with paid hosting and gear up to purchase a domain as soon as you feel that you are ready. That's one of the last steps before really rolling up your sleeves and getting into the trenches.

    Once in the trenches, build quality pages and cater well to your readership.

    Try to resist the strong urge to focus on the money. Don't listen to the false gurus that spew a bunch of nonsense about it being quick and easy to build wealth online. Nothing could be further from the truth. Take your time and enjoy the process.

    Be committed for the long haul and never give up.

    Best of luck,

    ~Newbie Shield~
  8. tygersclaw

    tygersclaw New Member

    Thanks NS and everyone. I really appreciate your answers.

    Yeah Newbie, I have been reading a ton on forums the last few days, so that could be why I sound as I do, or if also could be that I have been online for well over a decade and always tied terrestrial business promotions into the internet as well.

    I will check out the Thirty Day Challenge as suggested as well will be looking at Wealthy Affiliate, Profit Lance and Average Joe.

    Way I look at it, there is no such thing as too much information if you take from each only the best information that they each provide.

  9. Roseanne

    Roseanne New Member

    Hey seem all so knowledgeable. Can you please guide me a bit what the free traffic is concerned. How much marketing do you have to do in order to see any sales. Can you give me concrete many articles, how many blog posts, how many ads, how many forums posts do I have to write to be successful with free tools? Time frame a week! I really appreciate you input![​IMG]
  10. A8ch

    A8ch Gold Member

    Roseanne: How much marketing do you have to do in order to see any sales. Can you give me concrete numbers..
    Roseanne, there's no such thing as concrete numbers when it comes to determining what's required to deliver sales. No person can say to you, "Write 5 articles, make 13 forum posts, 3 blog posts and blast 12 ads within 10 days and you'll make 20 sales." There is no such formula.

    Someone could get a sale after writing a single article, while someone else may need to write 10 articles before getting a sale. If there is a number, or more accurately a number range, each marketer would have to determine that individually from testing and experimenting.

    Let's say you and I sell the same affiliate product. We advertise in the same places; we post in the same forums and we distribute our articles through Ezine Articles. After two weeks you have recorded 10 sales more than me. What are you doing differently or better that's bringing you those additional sales?

    It's hard to say, but we can speculate:

    - Maybe your ads are more powerfully written than mine.
    - Perhaps your forum post are more helpful than mine.
    - Your articles get more readers because you write more persuasively than I do.
    - The copywriting on your website probably triggers a greater emotional response than mine.
    - It's possible your site has a more attractive appearance and is easier to navigate.
    - Maybe you just got lucky.

    See what I'm getting at? Those are some of the other factors than can't be quantified but play an important role in the marketing equation.

    The closest you can get to a concrete number is an average number.

    For example. Your traffic stats may show that on average it takes 100 visitors to your site for you to make a sale. (You could probably break that down to see how much of that traffic is coming from articles, forum post, ads etc.) But for now 100 visitors equals 1 sale. That average is your "concrete number'' for the moment. That's YOUR reality.

    Meanwhile, another marketer's average number is already at 100 visitors equals 5 sales, and she may be using PPC advertising exclusively. That's HER reality.

    So, in that respect you could say that every marketer has a different concrete number and a variety of marketing methods to get to that number, whatever it happens to be at the time.

    Hope this was helpful.

  11. lmiller14

    lmiller14 New Member

    A lot of great information has already been posted so I will try not to be repetitive and just say don't put all your eggs in one basket. If you start small, that is ok! Just make sure you have something leftover if things go wrong because they WILL happen.

    Take your time and feel comfortable with making any financial decisions. Do your research, read these great posts and have fun.
  12. dlozen

    dlozen New Member

    A8ch: Roseanne, there's no such thing as concrete numbers when it comes to determining what's required to deliver sales. No person can say to you, "Write 5 articles, make 13 forum posts, 3 blog posts and blast 12 ads within 10 days and you'll make 20 sales." There is no such formula.
    Amen, I really wish I had that magic Formula. I've placed a single ad on Craigs list and had 5 purchases within a hour of placement. The same ad placed a month later got Nada....

    It all depends on the mood of the person reding the ad. Some wouldn't buy in on a product if it was free. others will spend thousands at the drop of a hat...

    Go figgure...
  13. samda

    samda Member

    There are lot of factors involved in the cost calculation. It all depends on the type of business you are in.
    The base cost is the website cost (As you said hosting, maintenance, reg etc., etc.,)
    But the main cost would be the investment to market the website. Say SEO or advertising etc.,

  14. Roseanne

    Roseanne New Member

    Hermas, I'm so grateful that you took time and effort to explain this to me so extensively. I'm a relatively new internet marketer, and I just wanted to know what the crunch is because so far I didn't make any sales. Perhaps I need to change my approaches, and be a bit more aggressive. Personally, I rather go for the understatement if you know what I mean. It would be very helpful if you could have a look at my signatures, and give me a feedback as I'm open to take in your advice, and go from there.[​IMG]

    p.s. Thanks Dennis to let me know how erratic the market is...[​IMG]

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