In recent years, online businesses have challenged the traditional idea of what doing business is all about, not only in concept but also from a financial standpoint.

Indeed, you probably have seen how over the last 10-20 years companies like Google, Yahoo and many others which are maybe just a dot in the sea of internet businesses, have conquered a financial success many traditional companies could never dream of.

The explanation for this is that both offline and online businesses relies on its potential for reach in order to make a profit. In other words, there is a hungry crowd out there that you must feed with a product or service they are willing to pay you for. The more people you reach, the more chances you have to get a part of that hungry crowd to put money in your pocket.

Within the offline or traditional business model, that is an operation ran from a location with employees and inventory, increasing your reach thus your profits will demand you invest a large amount of money in order to get your business up and running adequately.

On the other hand, within the online business model increasing your reach is more a matter of knowhow rather than a matter of money. Indeed, if you know your way around the internet marketing as a discipline, you can replicate the reach of a million dollar company with less than $100 in your pocket.

The reason for this apparently disproportionate and seemingly impossible result is simple: reaching 100,000 costumers through the internet only requires you to have a computer, an internet connection and the knowhow to place yourself or your product in front of your web surfing prospects.

This means that starting and running a $10,000 per month income business with the traditional offline model would probably demand a small fortune in startup capital and operating costs, whereas the online business model will demand little or no money from you, provided of course that you take the necessary time and effort to educate yourself and build your online business structure.

Therefore, to me the online business gets the upper hand, as this entrepreneurial alternative makes owning a highly profitable business accessible to the masses.