Why You Have to Spend Money to Make Money Online

Running an online business is not cheap. Success costs money.

…And Why It Costs More Than You Think

The dream of making money online is everywhere. From Instagram reels to YouTube vlogs, people make it look easy: just grab a laptop, start a side hustle, and rake in the passive income.

But here’s the truth behind the scenes: you have to spend money to make money online—and it usually costs more than you think.

The Dream vs. The Reality

Let’s start with what draws people in.

It’s easy to believe the hype:

“Start an online business for under $100!”
“All you need is a laptop, and you’re in business!”
“Quit your 9-5 with zero startup costs!”
“Make six figures in your pajamas!”
Once you set up your website, it runs itself!

But once you dive in, you quickly realize that success in the online space comes with real investments of time, energy, and yes, money.

The Real Costs of Building an Online Business

Whether you’re launching an e-commerce store, starting a blog, or becoming a content creator, you’ll run into a few core expenses:

Website & Hosting

You’ll need a custom domain, reliable hosting, and maybe even a professional design.
Estimated Cost: $500–$5000+/year

Email Marketing & Tools

Platforms like Kit*, MailerLite, or Flodesk cost money. You’ll also likely use design tools, schedulers, and analytics platforms.
Estimated Cost: $20–$100/month

Ads & Promotion

Relying on free traffic is not a viable business plan. To gain traction, most businesses use Google Ads, Facebook or Instagram ads, or influencer partnerships.
Estimated Cost: $300–$1000+/month

Content Creation

Think product photos, video editing, copywriting, and branded graphics. Whether you do it yourself or outsource, it costs.
Estimated Cost: Varies widely, but easily $500+ over time

Courses & Mentorship

To save time and avoid mistakes, many invest in coaching, online courses, or paid communities.
Estimated Cost: $200–$2000+

The Cost of NOT Spending

Trying to do everything for free or on the cheap usually ends up costing you more in the long run, especially in terms of lost time and slower growth.

Building your own website instead of hiring a professional might save you money. Still, it could cost you 40+ hours of trial and error, and your website may not be as visually appealing, efficient, or effective as you need it to be. And there will always be more work to do.
Skipping marketing tools may save money now, but it will likely hold you back from reaching your target audience. Nothing happens by osmosis online.
Using free options often leads to poor quality or unprofessional results, which can hurt trust and conversions. Branding is everything!

Bottom line: Spending money strategically saves time, boosts growth, and helps you scale faster.

Why It Always Costs More Than You Think

There are two big reasons people underestimate how much it costs to make money online:

1. You’re Comparing Your Start to Someone Else’s Middle

Most creators and entrepreneurs sharing their wins have already spent thousands on failed campaigns, new branding, ad testing, and more. You’re seeing their results, not their receipts.

2. People Think the Internet Is Free

Sure, you can post and browse for free. But if no one sees your posts, what good are they? Visibility—through SEO, social media, or paid ads—costs time and money. And in today’s crowded digital world, visibility is everything.

What a Realistic Budget Might Look Like

Here’s a sample breakdown for a basic online business:

Expense	MINIMAL Estimate
Domain + Hosting	$250+/year
Email Marketing Tool	$20–$100/month
Paid Ads (Meta, Google)	$300–$1000/month
Branding/Design Help	$500-$5000 (one-time or ongoing)
Courses & Mentorship	$200–$2000 (one-time)

The above figures are low-end estimates. You can easily spend much more, so it’s a great idea to not only think about how much you’re willing to pay, but also budget how much you can afford to spend if needed. More often than not, you will spend more than the above.

You also want to be able to embrace real investments that present themselves along the way—for example, lifetime subscriptions and memberships to needed products and services. Most website services offer a discount if you pay annually vs. monthly. Take advantage of that.

In my experience, packages change, and prices tend to increase over time. Lock in current pricing, which is future savings.

FOR MORE READ: How Much Does Free Really Cost? Realistic New WordPress Website Expense Planning

So What’s the Right Mindset?

Mindset is everything.

Success online requires a shift in thinking:

FROM: “How can I do everything for free or on the cheap?”
TO: “How can I invest wisely to grow efficiently and build my profits?”

Don’t throw money at every shiny tool or trend, but don’t expect massive returns without putting in anything. Like any real business, online success comes with upfront costs, and that’s okay.

Final Takeaway

Yes, you can make money online.
Yes, you can build a business from your laptop.
But no—it’s not free, and it’s rarely as cheap as people make it seem.

If you’re serious about building something sustainable, go into it with your eyes open and your budget ready. Spend smart, invest in growth, and remember: it takes money to make money, especially online.

At your service,

*Some of the links on this page are to companies with which I have a professional affiliation.
Read my complete affiliate statement here.