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Updated: December 8, 2023

19 Types of Online Business

Investing Online – 5 Things To Know

Here's how much money you can make by investing online...

investing online business

What is investing?

In terms of online business, here we’re talking about investing money in digital assets or financial markets for the long term. Think months, years, or even decades. 

You can profit if the value of your investment increases enough over time, or if you invest in successful companies that pay dividends.

Investing is one of 19 types of online business and considered a Level X 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 investing?

Here are the legit ways I’ve found to make money online with investing…

Buy and Hold

The buy-and-hold approach is most commonly applied to stocks, but Erik Finman applied it to Bitcoin in 2011 and saw the value of his investment increase almost 500x over the next six years…

  • Erik Finman

  • Bitcoin Investor
  • $2+ million from bitcoin investments

Robo-Advisors

Robo-advisors are automated investment services. You set your investment goals and risk tolerance and let the algorithms do the rest.

Popular robo-advisors include Betterment and Wealthfront

Mr. Money Mustache saw almost a 25% return in six years investing with Betterment…

  • Mr. Money Mustache

  • Do-It-Yourself Investor with Betterment
  • $40,944 5-year earnings on $167k deposits

Dividend Income

Jason Fieber has bought shares in more than 100 businesses. Thanks to the regular dividends earned from those investments, he was able to retire from regular employment at age 33…

  • Jason Fieber

  • Investor and Entrepreneur
  • $1,500+ monthly dividend income

Real Estate Investing

Online platforms like Fundrise let you invest small amounts in real estate projects and earn returns.

This guy tested out Fundrise for 18 months and reported an 8.4% return…

  • Dave HF

  • Investor
  • $1,244 return on $14,813 investment with Fundrise

Pros and Cons of Investing Businesses

  • Can be very passive.
  • Some markets are very well established and their performance is fairly predictable over the long term.

  • Usually requires a big initial investment and/or many years of regular deposits to see a significant return.
  • Possible to lose lots of money. Usually happens when investors try to “time the market.”
  • Taxes, fees and inflation can offset gains.

Is investing a good way to earn a living online?

It can be if you’re thoughtful, patient and financially literate. Or if you strike it lucky. 

In the short term, you’re unlikely to earn a living from investing unless you start with significant capital and invest it wisely.

Investing Courses

Here are some courses you may want to consider…

🏆 Best Investing Courses 🏆

1.Hustlers University (review)
3.9/5
2.Family Bank Funding (review)
3.2/5
Christian Business Incubator (review)
Incomplete/5
Gator Method (review)
Incomplete/5
Palm Beach Letter (review)
Incomplete/5
See all reviews of investing courses »

Investing Resources

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...