Internet business lovers love comparing different types of online businesses. The main aim of making business is to have a financial income. Most of the time people wish to know which type of online commerces are the most profitable. There are different types of online enterprises like Forex trading, providing online services, offering Internet services such as hosting, porn site business and other activities which can potentially guarantee you some income. Today I will compare two popular ways of making money online. I will not review the ease of launching them, but I will try to answer which of these businesses is more profitable. These enterprises are blogging and online store.
Let us compare the ways how these two online activities make money.
1) ONLINE STORE
There is no need to tell how an online store makes money. Even a child from a kindergarten can tell you this. Online stores sell items online. There may be different types of online shops. Some of the shops are concentrated on a specific niche and others sell different types of items. Profit of online stores may vary from the type of products they sell. If a shop sells high-quality brand products, the profit may be very quick and high. Let us state that selling one pair of GUCCI shoes which costs 300$ gives this shop 100$ of profit. If a shop sells 10 pairs of shoes, their net profit will be 1000$. Keep in mind that online stores sell thousands of products and therefore a good online boutique can have a very good income. Additionally, online stores earn by displaying ads and advertisement banners of other online stores. This option gives them another regular source of income. Online stores prefer to advertise on other popular stores, and if they have a choice to display their banner on a blog or on an online store, they will definitely choose the second option. There are a few online shops which use affiliate marketing to make some money. When a person visits a store he has a major aim to shop and buy something, and he rarely will pay his attention to an ad which offers Internet hosting. That is why I think that affiliate marketing is less effective on online stores than on blogs.Thus, I have stated that online stores earn money by selling their own products and by displaying ads and banners
Blogging is very popular nowadays. The main reason of its popularity is that this type of business does not require any financial investments. Since we are only comparing profits of online stores and blogging, I will restrict myself from a full comparison of these two different online businesses. Blogs earn by displaying ads, banners, affiliate marketing, and some of the bloggers sell their services on their blogs. If a blog has a huge traffic, it can generate a good income.
The major part of its profit will come from affiliate marketing and displaying ads. When you display ads, you promote someone’s business, products, and someone won’t pay you very much from his own profit. Let us imagine that you sell a t-shirt that costs 80$. You will have at least 30$ or 20$ profit from this sale if you sell it on your online store. What will be your profit If you display an ad on your blog, someone clicks it, visits another website and buys a t-shirt that costs 80$? Let me answer this question. Your profit will be equal to your CPC (cost per click). If you are too lucky, your CPC may be 1 cent maximum. So your service which helped someone to sell an 80$ t-shirt will give you 1 cent. You will have this 1 cent if a visitor clicks your ad and even if he won’t buy that t-shirt. It is obvious that you will need to have thousands of clicks to earn enough money. At the same time to make a good cash from your online store you will only need to sell something. Affiliate marketing is more successful on blogs that on online stores. As I have mentioned before, when a visitor visits a store his main idea is to buy something, and he may not pay attention to ads or banners which advertise different internet services. On the opposite side people who visit blogs are usually interested in online life. This group of people is very active Internet users and they spend a lot of their time online. These people may be more interested in different internet services.
Online stores are more profitable than blogging because they can easily and fastly guarantee you some serious financial income. However, popular blogs can be more profitable than online stores because of a huge affiliate marketing sales.
Look at your main goal. If you want to make much money in a short period of time, you should choose to run your own online store. If you have no funds to invest in your online enterprise, your option is blogging even if it is less profitable than online shopping business.