Online Business Costs


Online Business Costs


A Look at the Initial Investment and the Operating Expenses Involved in a Web Based Business.

Online Business Costs

If you are looking to become an e-business owner, you need to be aware of online business costs – the costs
associated with starting a web based business. By knowing the initial investment you need to make and the operating expenses associated with the business, you can plan your budget accordingly. 

Domain name

First, you need to get a good domain name. You can get one from a domain registrar or from the resale market. A reasonably short, keyword based domain name with a dot com extension should not cost you more than $15.

If you, however, are looking for premium names, you might have to pay a lot more money and your online
business costs could go up considerably. 


A web hosting account will cost you $50 and up, depending on the plan you choose. In most
cases, an economy plan for a single domain will cost somewhere around $50, which is very cheap. You should look to choose a hosting company that guarantees at least 99% uptime. 


If you are a web developer, you can build your own website without spending any money. If not, you can
approach a web development company. A professional web development company will take care of everything right from design to content and will give you a high quality website.

If you are on a small budget, you can approach freelance web designers, programmers, and content writers to get the job done. Depending on
the type of website you want, your online business costs could range anywhere from a few hundred to a few thousand dollars. An ecommerce site, for example, could cost a lot more than a simple website with minimal design and keyword-rich content. 


If you want to be a successful online business owner, you need to make sure your website ranks well for the
core keywords related to your niche. If you are familiar with the process of search engine optimization
(SEO), you can do it yourself and reduce your online business costs. Else, you need to hire an SEO
specialist to get it done for you. An SEO specialist will charge you anywhere from $20 – $50 per hour. 

Website Promotion

Pay per click (PPC) advertising is one of the most effective ways to promote your website and get targeted traffic.

In a PPC system, you need to bid on keyword phrases that are relevant to your niche. Whenever
someone clicks on your ad and visits your website, you need to pay the search engine. The bid amount usually varies from keyword to keyword and niche to niche. Depending on various factors like your quality score, click through rate, competition, and seasonality, your online business costs could increase or decrease considerably. 

Online business, just like a brick and mortar business, has operating costs. You need to spend money, albeit a small amount, every year to renew your domain name and web hosting account. Similarly, if your niche is very competitive, you might have to spend money regularly on SEO and website promotion to make sure your site ranks well consistently. These are some of the ongoing online business costs associated with any web-based business.
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