It still amazes me the percentage return on investment that is possible with an Internet business. For myself, I have several online businesses which each required about a $1,000 on average to launch and get to a point where they were bringing in revenue. This includes everything from all the infrastructure, web design, keyword research, and marketing. These sites are now each bringing in between $ 80 to $+5,000 in net income a month. 

At the low end, a site that costs $1,000 and brings in $80 a month in passive income is close to a 100% ROI return annually.  Now, $80 a month is not a lot of money but it can be if you rinse and repeat. And the sites that are bringing in $5,000 profit a month create a whopping 6000% ROI return annually. 

Nothing can beat these returns especially when the time to get to these returns is usually a few months to a year.  And, they can keep improving as you optimize each online website. Now, I have had some unsuccessful sites, but the most I have ever risked on a website before finding out it will not be profitable enough for me is about $1000 a site.  This is not a bad stop loss.

Just to compare- I also invest in residential real estate where typically I need to put up (or borrow) capital of about $150,000 in order to make $15,0000-$30,000 in profit. This ROI for the deal is 20% and there is a lot more capital at stake if things do not work out.

Also, I have several clients that have put up hundreds of thousands of dollars to launch a business which will take several years to possibly pay off by creating a consistent revenue stream or a business that may be lucrative to a potential acquirer.  This is a lot of risk to take. 

Now, these companies are exciting to work on and for the smart entrepreneur, it is worth the capital, risk and toil, but from a straight risk and ROI perspective, it seems like the traditional Internet marketing based business model is more attractive to the average person thinking of starting a small business.

Currently, it is a perfect time for anyone to start an Internet business.  While we are in the midst of a struggling economy and the real estate market is horrible, the percent of transactions being transacted on the Internet is growing.  More people are going online and more companies are advertising online.  Once you add in the revenue potential and the minimal amount of capital, any person thinking of starting a business (part-time or otherwise) should strongly consider an Internet based business.

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