Online business vs traditional business...which one should you get into? This is a great question for anyone thinking about building a business.

Back in day when people thought about starting a business, finding the space to run the business was one of the main focus.

But with technology advancing the way it has, you no longer need a physical space to run your business.

All you need is a laptop and some internet, and you’re good to go.

Of course it’s a bit more complicated than that, but you get my point. But the question I asked was, which type of business should you get into?

Well in this article, I plan on breaking down the advantages of both the online business, and the traditional business.

What Is An Online Business?

This type of business uses E-commerce as a way to buy and sell goods. Devices like your laptop, tablet, or mobile are used in order to make transactions.

There is very little if any face to face interaction in this type of business. With the advent of the internet, more and more companies are conducting their business online.

Not only are companies building their business online, but individuals are doing the same.

The internet allows even the “little guy” to get a piece of the action when it comes to the buying and selling of goods.


What Is A Traditional Business?

This is pretty much the way things were done before technology came into play. Where goods and services were exchanged in a face to face manner.

This is something we all do on a daily basis whether you’re getting lunch at a local deli, or picking up an item at Walmart.

Many times, the exchange of goods and services require that you either enter a physical establishment to make a purchase, or in regards to services, you having to speak to an actual person.

Either way, there is more of an interaction with a human when making a purchase.

There’s a lot to be said for the way this type of business is conducted, but we’ll get into that a bit later.

Key Differences Between Online Business And Traditional Business

Although there are many differences between an online business and a traditional business, maybe one of the biggest is accessibility.

With a traditional business, not only do you have to deal with business hours, but also the commute.

You’re reach goes as far as a customers willingness to travel to your place of business. But with an online business, it’s basically open 24/7 365 days a year.

Also, as a traditional business owner, there are so many things you need to account for.

Like increased sales volume, inventory, and other logistics that ensure your business is running efficiently.

Another key element that sets both business apart, is human interaction.

With a traditional business, you can go up to a sales associate and get any questions you have about a particular item answered.

You can also hold and inspect the item which helps in the decision making process.

These are all factors you have to consider when thinking about starting a traditional business vs an online business.

Advantages & Disadvantages Of An Online Business


Costs - unlike traditional businesses, you don’t need thousands of dollars to get started.

All you need is a laptop, some internet, and you can get your business up and running.

Yes there are other things you will need like domain name and hosting, but you won’t have to break the bank to get it.

Also, depending on the type of online business you have, you don’t have to worry about carrying any inventory.

This makes running an online business so much simpler.

Employees - dealing with employees can be a huge pain in the butt. You have to make sure they are trained to do the work you need them to do.

You also have to make sure you provide them with proper insurance.

All this requires a lot of paperwork which takes time away from you doing what’s important. But with an online business, the only person you have to worry about is you.

You Are Your Own Boss - some people like to be managed by someone, and others like myself, despise it. If you’re like me, then starting an online business is a great way to go.

The only person you’re accountable to is yourself. You make every decision when it comes to your business, which is a great place to be.

Freedom Of Time - having an online business allows you the opportunity to create passive income for yourself.

Of course this is dependent on the type of business you’re building. But if you’re getting into a business like affiliate marketing, this can give you the freedom you’re looking for.

Remember, your most valuable asset is time. This is the only thing you can never get back. So it’s important to make sure you make the most of it.


Motivation - I can tell you from experience that running an online business can make you lazy if you’re not careful.

Before I started making money, I grinded my butt off to make it work. But once I started making money, I found myself getting complacent.

So this is something you need to be careful with as you grow your business. Because you never know when things can turn for the worst.

So always make sure you find ways to create motivation for yourself.

Lack of Interaction - Many will tell you that being an entrepreneur can be very lonely. That’s because you’re working from home by yourself, as opposed to being in an office with other people.

If you’re someone that needs the interaction, then it’s important to make sure you find ways to be around other like minded individuals that are in the same business as you.

You’re In Charge - when working in an office, everyone person has assigned roles. But as the owner of an online business, you are in charge of everything. Marketing, finances, content creation, etc. It’s up to you and only you to make sure each aspect of your business is running properly.

Money - depending on the type of business you’re building, the one thing you need to understand is that it takes time. It can take months before you make your fist sale. So it’s important to make sure you’re patient when getting started.

Advantages & Disadvantages Of Traditional Business


Human Element - this is probably the biggest advantage to having a traditional business. Being able to interact with your customers allows you build trust that brings you business for years to come.

This gives you the owner an opportunity to create an experience the moment the customer walks through the door, until the moment they leave, which is something an online business can’t replicate.

Can Inspect Product - trust in the product or service a customer is thinking about purchasing plays a huge role for any business. With a traditional business, as long as your product or service solves a problem, you have a much better chance of making a sale.


Trends - according to research, more and more people are making purchases online. So if your business isn’t online, that is a huge market that you’re missing out on. This trends continues to grow as more people get access to the internet.

Cost - there are so many factors that you have to consider with a traditional business. Factors like rent, utilities, staff, insurance, and of course inventory. This can cost you 10’s of thousands of dollars which most people probably don’t have.

Where Is Business Trending?

A little while ago I mentioned that more and more people are using the internet. To be exact, there are over 4 billion users.

This figure is expected to grow as more and more people get access to the internet. So if you’re a business that doesn’t have an online presence, you put your business at risk of failing.

Just take a look at companies like blockbuster and bookstores around the country.

They went out of business due to a lack of an online presence.

So before you think about starting any business, you first want to ask is it possible to bring your business online.

Final Thoughts

With technology advancing the way it has, it’s allowed an individual without a lot of resources, to start a business with very little money.

For a couple of hundred bucks, you can build a business that can generate you thousands of dollars of passive income.

So if you’re trying to decide which type of business to start, I would first look at your finances and how much do you want to deal with what it takes to build a business.

Things like employees, inventory, or insurance. These things aren’t a huge factor with an online business, but very much so with a traditional business.

How I Earn My Money Online

In 2018, I finally became a Six Figure Business, and it only took 27 months to get there. This allowed me to leave my part time job, and become a full time affiliate marketer.

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If you’re curious as to how I was able to create passive income for myself, then I recommend that you click the button below. I have prepared a special video that will explain how I did it.

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