You don’t need to start the next big tech company to have a successful business! The best online business to start is a service-based business, because it’s easy for anyone to jump in and profit.
In this post, I’ll show you how to get started, real life stories from guests on my podcast, and the strategies to scale an online business effectively.
A service based business is the best online business to start — here’s how you can profit
Selling your services online is by far the easiest and most accessible way to make money. You don’t need to create digital products or stock physical inventory; you can simply offer a service that aligns with your skills, whether it’s consulting, freelance writing, graphic design, or any hands-on professional work.
Online platforms like Upwork and Fiverr offer a faster and more cost-effective way to connect with potential clients, bypassing the need for traditional networking. And the best part? A service-based business is inherently scalable.
As demand for your services grows, you can increase your rates, hire subcontractors, or offer additional services — all without the complexities of managing a physical product or dealing with huge upfront costs. Plus, you have the flexibility to scale at your own pace.
How to start your service-based business
To get started, focus on keeping it simple: sell one service to one client and build from there.
Whether it’s graphic design, content writing, marketing consulting, or virtual assistance, choose something that aligns with your skills and interests. Think about work, hobbies, etc. If nothing comes to mind, ask your friends and family what they think you’re good at. We often can’t see our own skills and knowledge because they come naturally!
Make an account on Upwork or Fiverr to get started. These gig platforms might not be where you find the highest paid work, but the key in the beginning is to go where your clients are already looking. You can also offer your services to people in your circle to get experience and testimonials.
Don’t worry about having everything perfect from the start. Your offering can evolve over time as you gain confidence and clarity. While there are plenty of other online business ideas to start, nothing beats the simplicity and effectiveness of selling a service that aligns with your skills.
Once you’ve established your service, the next step is to consider scaling up — finding more clients, expanding your reach, and increasing your income potential. This is where things can really take off, and why a service-based business is the best online business to start.
Starting a new business doesn’t have to be daunting, I’ve helped thousands of people build their own businesses and you can do the same by watching the video below!
Don’t fall for “get rich quick” schemes
Running a service based business is more than just providing a skill, you need to learn how to market yourself. It’s a good idea to invest in building your knowledge, through free options like following blogs and email lists, to paying for courses and coaching.
But be careful not to fall for “get-rich-quick” schemes and do your due diligence. If you see a guru claiming you’ll make ~6 figures in a few months… validate it. Do they have proof to back it up? What do their current students say? Can you verify that their success stories are real?
In fact, some of my podcast guests have shared their experiences of getting sidetracked by these shortcuts.
Meet David and Halima, a couple in their 30s who, despite their best intentions, have struggled with the fallout from past financial mistakes. Both are on their second marriage, and while they’re determined to build a better future together, they’ve found themselves trapped in a cycle of debt, partly due to David’s involvement in get-rich-quick schemes and other risky ventures.
David: [00:17:27] Basically that I would be my own boss, and I determine how much money I make. So I can determine whether I am going to be continuing at, they call– the WorldVentures one is the one that I got mostly involved with. Yeah. Basically, they were saying you are your own boss. You determine your destiny. You determine if you’re going to be financially successful or not.
Ramit Sethi: [00:18:04] It’s a powerful vision.
David: [00:18:05] Yes.
Ramit Sethi: [00:18:06] It just happens to be a complete scam that over 99% of people fail at. And just to do a quick statistical check, David, did you make a lot of money with one, two, three MLMs?
David: [00:18:19] No.
Ramit Sethi: [00:18:19] Shocking, shocking. All these MLM people about to send me messages on social media. They’re like, David just didn’t work hard enough. If you put the time in, you can get the results out. I have the statistics. All right. So you got out. So that was one get-rich-quick thing you joined. What else?
David: [00:18:37] I tried doing the whole cryptocurrency thing.
Ramit Sethi: [00:18:42] How’d that go?
David: [00:18:44] Terrible. I held on when I should have sold.
Ramit Sethi: [00:18:48] That’s about all we need to cover on that. That’s pretty much most crypto guys. All right. Okay. Who else? What else did you do for get rich quick?
David: [00:18:55] Let’s see. What else did I do?
Halima: [00:19:00] You did try getting a real estate license?
David: [00:19:02] Oh, I tried getting my real estate license.
Ramit Sethi: [00:19:05] Oh, my God, the realtors already hate me, so we can just sidestep this one. All right, so you tried to get that? That didn’t work. What else?
David: [00:19:12] I tried getting jobs with certificates, when in reality, you need to get a job with a degree.
Ramit Sethi: [00:19:24] Okay, okay. So what’s the thread among all these decisions?
David: [00:19:30] Get rich quick does it really work?
Ramit Sethi: [00:19:34] But you knew that. Everyone says. It’s in the air. Don’t try to get rich quick. And yet you did all these things. Why?
David: [00:19:42] Because I would see that there are some people that succeeded, but it’s such a minuscule amount that it’s nearly impossible to make it.
Ramit Sethi: [00:19:52] Why didn’t you try to be in the NBA? You can pick up a basketball, and you could throw it. There are people who do that and make millions of dollars. Why didn’t you try that?
David: [00:20:02] I didn’t train hard enough.
David’s journey through get-rich-quick schemes, from MLMs to cryptocurrency, highlights the allure of shortcuts that promise fast financial success. Despite the evident pitfalls and repeated failures, he was drawn to these schemes by the rare stories of success. But as the conversation continues, it becomes clear that these choices have only compounded his financial struggles, leaving him with mounting debts.
Ramit Sethi: [01:06:06] All right. Let’s take a look at your credit card bills. You got over $10,000 on your Amex. You have Synchrony ADT. What is that? Is that a credit card?
David: [01:06:21] It’s a credit card for the home security system.
Ramit Sethi: [01:06:26] Why do you have a credit card for it?
David: [01:06:29] Because a lot of the equipment was pricey. We could just pay it off.
Ramit Sethi: [01:06:38] Why not?
David: [01:06:44] Why not what? Pay it off?
Ramit Sethi: [01:06:45] Why haven’t you paid it off? Yeah, 3,000 bucks.
David: [01:06:51] Yeah. I’m not sure.
Ramit Sethi: [01:06:54] Then you have another kitchen credit card, $4,944. Then you have a Best Buy appliance for 4,424, and you also have two car loans, one for $33,000, and one for $13,804. Do you realize you’re spending more than you make every single month and that’s where it’s going?
David: [01:07:23] Yeah.
Ramit Sethi: [01:07:26] Tell me what’s going through your mind right now. David, you’re the one who’s been managing the money, and moving it around, and sharing it with Halima. What’s going through your mind right now?
David: [01:07:35] Failing.
Ramit Sethi: [01:07:38] Mm-hmm. Tell me more.
David: [01:07:42] We shouldn’t be in this type of position. And I feel like I’ve gotten us into this.
Ramit Sethi: [01:07:53] What is this type of position? Describe it for me.
David: [01:07:56] Being in the red.
Ramit Sethi: [01:07:58] Okay.
David: [01:07:58] Spending more than we make.
Ramit Sethi: [01:08:01] And? Quantitatively, you are spending more than you make. I agree. You’re spending more than you make, qualitatively. How are you spending that money? Where is it going?
David: [01:08:17] Debt, mostly.
Ramit Sethi: [01:08:18] Mm-hmm. And what is the debt for?
David: [01:08:24] Just credit cards, other stuff that we purchased, cars, the house.
Ramit Sethi: [01:08:35] What else?
David: [01:08:37] Security system.
Ramit Sethi: [01:08:39] What else? What’s that kitchen thing? All the renovations. You can’t even remember all this stuff. Then, where’s the Hilton expenses on here? Where’s that?
David: [01:08:55] On the Amex.
Ramit Sethi: [01:08:57] 10,000 bucks this month. So it’s hidden. You’ve created your own nightmare. What’s shocking to me is that when we started this call, you said, I feel rich. He said, looking at the numbers, I feel rich. We have $70,000 in credit card debt and car loans. Not to mention the mortgage. How do you reconcile that?
David: [01:09:34] I don’t know.
Ramit Sethi: [01:09:39] I need you to dig deep because you’ve been making decisions, renovations, timeshare, putting things on certain credit cards. There’s nobody else here who has the answer except you. So tell me your thought process. How did you end up here?
David: [01:10:05] Wanted to create a life where I can provide for my wife and kids and not be able to say no. I want to give them a better life than what I’ve had.
Ramit Sethi: [01:10:28] How do you do that?
David: [01:10:43] Improving our finances.
David’s story is a powerful reminder of why it’s crucial to avoid get-rich-quick schemes and focus on building a sustainable business. Instead of chasing shortcuts that lead to deep financial trouble, a service-based business offers a real path to financial freedom.
By focusing on delivering a great service, building a solid client base and scaling strategically, you can build a solid foundation for long-term success. Once your business is established, the next step is to think bigger: How do you scale up and reach even more people?
5 strategies to scale up your online business
Once you’ve established your service-based business, the next step is to scale up and reach more clients, grow your income, and expand your impact.
You might have heard of the freelance ‘feast and famine’ where you’re overloaded with clients one month and dry the next. In order to get off the rollercoaster (or avoid it entirely), the best way to scale is to build your own audience based on your expertise and teach what you know.
This opens you up to selling online courses, products, coaching, and premium services.
To start, focus on taking small, consistent steps to build your audience. Begin by sharing valuable content related to your expertise, whether through blog posts, social media, or guest articles. As your audience grows, gradually increase your efforts by posting more frequently, experimenting with different types of content, and engaging more deeply with your followers.
This steady approach, combined with consistent effort, will help you attract more clients and open up new avenues for income.
Here are five key strategies to help you take your online business to the next level:
1. Create a website
A website is one of the most powerful tools for scaling your online service business. Think of it as your digital headquarters — a 24/7 storefront where potential clients can learn about your services, contact you, and see you as a credible professional.
How to get started
Start by choosing a unique domain name that reflects your business and includes a keyword related to your niche. Register it with a domain registrar like Namecheap or GoDaddy, and then secure hosting with a reliable provider.
Build a professional-looking site using a content management system (CMS) like WordPress.org or Webflow, or hire a web developer if necessary. There are also tons of great free templates out there that will help you get up and running ASAP.
To attract traffic, regularly publish high-quality, valuable content that addresses your target audience’s pain points. Over time, consider collaborating with an SEO agency to optimize your site for search engines, expanding your reach and increasing organic traffic.
2. Start a podcast
Starting a podcast is a great way to reach people on the go, or those who prefer listening to reading. Your authentic voice can resonate with listeners and develop instant trust; but don’t worry, you don’t need to be a born speaker to succeed.
The key to podcast success is value, persistence, and consistency. It might take a few episodes to hit your stride, but once you do, the rhythm of continually producing powerful content will draw in more and more listeners.
As your audience grows, so do your monetization opportunities, such as sponsorships, ads, and premium content, diversifying your income while expanding your reach.
How to get started
Start by choosing a niche topic that aligns with your business and resonates with your target audience. Invest in high-quality audio equipment and editing software to ensure professional production. Plan episodes around common questions or challenges your clients face and provide actionable insights.
Promote your podcast across all platforms—your website, YouTube, social media, and email list—to grow your listenership.
3. Create YouTube videos
Creating YouTube videos is a great way to reach a wider audience, especially with YouTube shorts.. Remember, it’s less about you as the creator and more about the value your content provides. To build an audience on YouTube, understand your viewers’ needs and problems, stay focused on your niche, and consistently deliver high-quality content.
How to get started
Before starting your channel, get to know your audience deeply and tailor your videos to address their specific concerns. Niching down instead of going broad helps you provide exactly what your viewers want, maintaining their engagement. For example, if you’re teaching your viewers about copywriting, avoid expanding your topics to related niches like blogging to prevent diluting your focus.
Success on YouTube hinges on the quality of your content and your consistency in posting new videos. As your channel grows, you can explore monetization through ads, affiliate marketing, and sponsorships, all of which can drive more traffic to your website or other sales channels.
However, having a successful YouTube channel isn’t a bed of roses – consider the story of Darby and Kirsty, a couple who both run YouTube channels but have experienced very different outcomes. Kirsty’s art tutorials have struck a chord with viewers, leading to rapid growth and profitability, while Darby is still navigating the challenges of building his audience and finding his unique angle.
[00:12:36] Ramit: So you’re making all this money, Kirsty, you’re the sole earner in the relationship. Darby, you have a YouTube channel as well. How big is the channel? How much is it making?
[00:12:47] Darby: At the moment it’s earning nothing. Um, and it may be an excuse, but a lot of that has just been because we’ve moved house two or three times and we’ve had two kids in between them, between those years. Because we’ve decided, because Kirsty’s doing so well and, um, because she’s the sole earner, with any, um, situation where I can help her, support her in the pregnancy, support her with the kids, uh, if she’s got a busy few months coming up, getting courses out, I’ll take the extra load with the kids and get everything sorted to allow her to, um, continue with the business. Um, I’ve done that.
[00:13:27] Ramit: Got it. Okay. That helps me understand. How do you feel about supporting Kirsty in her business?
[00:13:36] Darby: Yeah. That gives me fulfillment. Um, I love being able to support her, um, with the kids because not only is it the right thing to do, but yeah, it’s what I want to do. But I am a very proud person. I’m very ambitious. As much as I’m happy to do that, that’s not my life. I’m not going to be a househusband all my life. I’m not just going to be that person.
I want to have my own business. I want what Kirsty has. Um, and she’s a big inspiration to me and we support each other. We work with each other all of the time, every single day, because we work at home. Um, she wants that for me. I want that for myself. And yeah, I’m very committed to that. I want to be proud of myself. I want to be proud of myself. I want to live a successful life.
[00:14:37] Ramit: And successful means what?
[00:14:40] Darby: Um, I’m not sure. Um, I guess I want to exceed expectations of me.
[00:14:56] Ramit: Whose expectations?
[00:14:59] Darby: Maybe family’s. Probably what I would imagine– I guess what I imagine old school friends would think or things like that.
[00:15:10] Ramit: Should I just get the truth? Kirsty’s over here with the most evocative facial expressions I’ve ever seen. Look at that. She’s taken in a sip of water. She’s gearing up to just spill it. Go ahead. Tell us, Kirsty, whose approval is he looking for?
[00:15:25] Kirsty: Family’s, parents’.
I think it’s more because he feels like as a child everything was either done for him or he didn’t have to try very hard for anything. So now he wants to show that he can do it on his own and that, um, yeah, and that he doesn’t need anyone else to help him. He can do it because I think he feels like he lived quite an entitled life even though his family wasn’t rich on anything. He was very comfortable, and now he wants to prove that he can do it himself. That he doesn’t need that.
[00:16:02] Kirsty: And also I think he feels that because he’s been doing it for three years and his family will ask, how’s the channel go in? And it’s like, is it bringing– does that video– those views, does that bring any money? And he’ll say, “No.” I think he wants to show that, I can do this. He wants to go to them one day and say, yeah, it is getting some money. And yeah, I’ve been speaking to this person, and get their pride, I suppose.
[00:16:28] Ramit: Darby, you agree?
[00:16:29] Darby: Yeah, that’s completely right. Yeah, that’s fine.
[00:16:34] Ramit: Kirsty, what about you? How do you feel about the way that the financial arrangement is working in your relationship?
[00:16:41] Kirsty: Apart from the fact that you see it as my money, I don’t mind being the sole provider. It doesn’t bother me paying for everything. I’m not the type of person that’s expecting Darby as the man to provide. I don’t care about any of that. Um, I just want him to feel happy and fulfilled in himself. And I want him to start earning some money because I know that that will bring some fulfillment to him and he’ll feel, um, like he’s part of it, in that he’s doing something for himself.
Their journey illustrates that success on YouTube requires not just content creation, but also understanding your niche, consistently providing value, and adapting as you learn what resonates with your audience.
It’s also crucial to have realistic expectations when building a presence on YouTube or any other platform. Growth doesn’t happen overnight, and it’s normal to face setbacks or slower periods. The key is persistence—keep refining your content, engaging with your audience, and learning from your results.
4. Network on LinkedIn
Networking on LinkedIn offers a powerful opportunity to reach a more professional audience. With over 700 million users, LinkedIn stands as the world’s largest professional networking platform.
When it comes to building an audience, LinkedIn is a goldmine of potential clients, partners, and other opportunities like speaking gigs, cross promotion and interviews.
How to get started
Start by building a strong LinkedIn profile that highlights your expertise. Expand your network by connecting with relevant professionals and joining industry-specific groups.
Engage consistently by sharing insights, commenting on posts, and publishing articles that demonstrate your knowledge. This positions you as an authority in your field and opens up opportunities for client referrals, partnerships, and direct client acquisitions, all of which help scale your business.
5. Build an email newsletter
Building an email newsletter allows you to grow a subscriber list and deliver valuable content directly to their inbox. It works well because it’s a direct channel to engage with your audience. With an effective email newsletter, you can provide insights, updates, and exclusive content that keeps subscribers invested in your services.
How to get started
To build this audience, start by creating an email subscription form on your website or sharing it on platforms like LinkedIn. Utilize features like live chat windows or lead magnets to attract new subscribers while ensuring a seamless browsing experience.
Finally, maintain a consistent newsletter design aligned with your brand identity and deliver top-notch content to keep your audience engaged and eager for your services.
Stop trading time and scale up with digital products
Once you’ve built a loyal audience, it’s time to leverage that following by selling digital products — particularly online courses.
Online courses are a goldmine for experts looking to monetize their knowledge without constantly trading hours for dollars. Platforms like Udemy, Skillshare, Teachable, Gumroad, and Kajabi make it easy to create, host, and sell your courses to a global audience.
The beauty of digital products, especially online courses, is their evergreen nature. Once you put in the effort to create the content, you can sell it indefinitely without the ongoing costs associated with physical products like manufacturing or shipping.
Your earning potential grows exponentially as more people discover and purchase your course. IWT, which has been running for nearly two decades now, has been selling online courses predominantly throughout this period and these courses remain one of the strongest income streams for my business.
If creating online courses doesn’t feel like the right fit, there are plenty of other digital products that can help you scale up without trading your time directly. Here are some different ways to monetize your audience:
- eBooks: You don’t need to be a literary sensation to create an eBook. Focus on what you excel at and share your expertise through writing. Publish on platforms like Amazon Kindle or eBay, or sell directly through your website for a straightforward way to turn your knowledge into income.
- Memberships: Transform your online business into a cash-generating machine by offering exclusive content through memberships. This model allows you to build a community of engaged members who pay for access to premium, high-value content, ensuring a steady stream of revenue.
- PDFs and Guides: Create and sell PDFs and guides, such as how-to manuals, educational materials, in-depth analyses, or compelling stories. Distribute them through platforms like Google Play Books or Apple Books or directly on your website to maintain control and maximize profits.
- Online Cooking Instructions: If you are passionate about cooking, monetize your culinary skills by crafting enticing cookbooks. Include recipes, tips, and captivating stories, and sell them on platforms like Amazon Kindle or directly through your website.
Once you’ve established a successful service-based online business, it becomes much easier to transition into digital products and open the door to long-term passive income. The key is to leverage the audience and credibility you’ve built, allowing your business to scale in new, exciting ways.
Keep moving toward your Rich Life
Starting an online business is an exciting journey that opens the door to unlimited potential. It may not always be fast or easy, but you can create a sustainable and profitable business by building genuine connections, delivering value, and scaling strategically. Remember, the path to your Rich Life isn’t about quick wins—it’s about consistency, persistence, and continuously learning from your audience.
If you liked this post, you’d LOVE my Ultimate Guide to Finding Your First Profitable Idea
It’s one of the best things I’ve published, and totally free – just tell me where to send it:
