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Updated: December 8, 2023

19 Types of Online Business

Cloud Service Business – 5 Things To Know

Here's how much money you can make with a cloud service business...

cloud service business

What is a cloud service business?

With this kind of online business you would own some software, infrastructure or platform and give people continuous access to it via the cloud

You’d monetize by charging an access fee, selling ad space, selling user data, that kind of thing.

Software as a Service (SaaS) seems to be the most popular and, I’d argue, by far the most accessible kind of Cloud Service business, so I’ll mainly share SaaS examples on this page.

Cloud Service is one of 19 types of online business and considered a Level 5 online business, according to our framework.

Click here to see all 6 levels and 19 types of online business

6 Levels and 19 Types of Online Business

Level 1 = Novice

Okay for side income or beer money, but hard to earn a living.

  1. GetPaidTo
  2. Contests

Level 2 = Intermediate

Best for earning a living online when you’re starting out, but hard to scale.

  1. Remote Job
  2. Freelance

Level 3 = Advanced

Easier to scale and higher income potential, but you usually need significant investment of time and/or money upfront.

  1. Agency
  2. Referral
  3. Resale

Level 4 = Superior

Even more scalable and even higher income potential, but also more complex / difficult / expensive.

  1. Authority
  2. Digital Product

Level 5 = Distinguished

Most complex / difficult / expensive, but the rewards here can be massive.

  1. Physical Product
  2. Cloud Service
  3. Marketplace
  4. Social Network

Level X = Wildcard

These are the misfits. Many aren’t even considered businesses in the traditional sense, but they are all ways to make money online. You typically need a lot of time, money, or luck to succeed with anything here.

  1. Trading
  2. Investing
  3. Esports
  4. Betting
  5. Gambling
  6. Multi-Level Marketing

How can you make money online with a cloud service business?

Here are the legit ways I’ve found to make money online with a cloud service business…

Build Marketing Software

Nathan Barry built and grew ConvertKit into a popular email marketing solution…

  • Nathan Barry

  • Founder of ConvertKit
  • $2+ million ConvertKit monthly revenue

Build a Hosting Business

Traditional web hosting companies fit here, but a more relatable example would be Matt Basta’s podcast hosting service…

  • Matt Basta

  • Founder of Pinecast
  • $13,000 Pinecast monthly revenue

Build Collaboration Software

Ryan Badger apparently built v1 of his Dropbox-like software in a weekend from a beach in Thailand…

  • Ryan Badger

  • Serial Entrepreneur
  • $19,500 peak monthly revenue for Uploadfiles.io

Build Project Management Software

Renato Marinho’s PM software started off as a side project while working for another startup…

  • Renato Marinho

  • Founder of GitScrum
  • $50,000 GitScrum monthly revenue

Build Freemium Software

Curtis Herbert built an app that helps skiers and snowboarders track their runs. You can use a free version or pay a subscription for premium features.

  • Curtis Herbert

  • Founder of Slopes App
  • $25,000 monthly revenue from app

Build Niche Software

How’s this for niche: Preetam Nath’s software enables online store owners to communicate with visitors and customers via WhatsApp…

  • Preetam Nath

  • Co-founder of SuperLemon
  • $29,000 SuperLemon monthly revenue

Pros and Cons of Cloud Service Businesses

  • Usually very scalable.
  • Strong passive income potential.
  • Fairly predictable revenue if using subscription model.
  • Easy to sell once successful.
  • Several monetization options.
  • Usually requires a complex set of skills.
  • Churn.
  • Often a slow and/or expensive way to start making money online.
  • Customer service.
  • Data security issues.
  • Competition.

Is a cloud service business a good way to earn a living online?

It’s an attractive business model but you’d need to bring your A-game and probably hire some A-players if you want to succeed. Don’t expect to get rich quick or easy.

Cloud Service Business Resources

  • 5-Minute Breakdown: Software as a Service (SaaS)
    The below video is a good overview of SaaS, plus the other types of cloud services (IaaS and PaaS)…
About The Author
Niall Doherty – Founder and Lead Editor of eBiz Facts Born and raised in Ireland, Niall has been making a living from his laptop since quitting his office job in 2010. He's fond of basketball, once spent 44 months traveling around the world without flying, and has been featured in such publications as The Irish Times and Huffington Post. Read more...