Data
How much does it cost to start an online business? A breakdown by model from 370 ideas
The short answer
Most online businesses cost little to start. Of 370 ideas we researched, 10% need nothing, 83% need under $500, 6% need $500 to $2,000 and under 1% need more. Lead generation is the main exception, with 68% of its ideas in the $500 to $2,000 band because of ad spend. A free-plan start costs about $11 for a domain.
Key takeaways
- 93% of the 370 ideas cost under $500 to start, 10% need nothing, and only 2 need over $2,000.
- Lead generation and niche online stores are the expensive models, with 68% and 56% of their ideas needing $500 or more, against 7% of all ideas.
- At the time of writing (October 2026), a .com domain is $10.98 for the first year and $18.48 to renew at Namecheap.
- Putting every paid plan on one idea adds up to $574.98 in year one, which is over the $500 line, so most ideas start on free plans.
- Spending more goes with more potential but not faster money: ideas needing $500 to $2,000 have a median potential of $4,500 a month and six weeks to a first dollar, against $2,500 and four weeks under $500.
"How much does it cost?" has two honest answers. One is what a business of that type needs to begin. The other is what the tools cost if you buy everything at once. They are very different numbers, and most advice mixes them up. This guide gives both: the starting cost of 17 online business models from our research, and a table of tool prices from the vendors' own pages.
The cost figures come from the 370 ideas on the Early Bird board, each placed in a starting cost band, and the method is in how we research. Prices were read from the vendors' pages on 15 October 2026 and will change. Potential figures are estimates, not earnings.
How much does it cost to start an online business?
Not much, for most. Of 370 ideas, 38 (10%) need nothing, 307 (83%) need under $500, 23 (6%) need $500 to $2,000 and 2 (under 1%) need more than $2,000.
The bands are our estimate of the cash you need to reach a first customer, mostly subscriptions, a domain, and any ads or stock. They leave out your time and tax. The broader picture of cost, hours and skills is in what 370 online business ideas cost and need.
Which business models cost the most to start?
Ranked by how many of their ideas need $500 or more:
| Business model | Ideas | Nothing | Under $500 | $500 to $2,000 | Over $2,000 |
|---|---|---|---|---|---|
| Lead generation | 25 | 1 | 7 | 17 | 0 |
| Niche online store | 9 | 1 | 3 | 4 | 1 |
| Niche newsletter | 16 | 6 | 9 | 1 | 0 |
| Digital product | 32 | 10 | 21 | 0 | 1 |
| Productised service | 54 | 6 | 47 | 1 | 0 |
| AI automation service | 46 | 2 | 44 | 0 | 0 |
| Vibe-coded tool | 25 | 1 | 24 | 0 | 0 |
| Micro SaaS | 22 | 0 | 22 | 0 | 0 |
| Local service website | 21 | 0 | 21 | 0 | 0 |
| AI receptionist service | 19 | 0 | 19 | 0 | 0 |
| Custom GPT | 19 | 0 | 19 | 0 | 0 |
| Print on demand | 16 | 5 | 11 | 0 | 0 |
| AI social media management | 15 | 0 | 15 | 0 | 0 |
| Affiliate content site | 14 | 2 | 12 | 0 | 0 |
| AI voiceover | 13 | 0 | 13 | 0 | 0 |
| Faceless content channel | 12 | 3 | 9 | 0 | 0 |
| AI ad creative (UGC style) | 12 | 1 | 11 | 0 | 0 |
Two models explain nearly all the expensive ideas. Lead generation has 17 of the 23 ideas in the $500 to $2,000 band, because ads are paid before a client is. Niche online stores, where 5 of 9 need $500 or more, usually carry stock or ad costs. Everything else is near zero. The detail on the ad side is in how to start a lead generation business.
A note on custom GPTs: OpenAI has announced it is retiring them, so the cheap row there is not a recommendation.
What do the common tools cost?
At the time of writing (October 2026), from each vendor's own page:
| Tool | Free plan | Paid price | Catch |
|---|---|---|---|
| .com domain (Namecheap) | None | $10.98 first year, $18.48 to renew | First year is a sale price, normally $14.98 |
| Stripe payments | No monthly fee | 1.65% + A$0.30 domestic, 3.5% + A$0.30 international, +2% for currency conversion | Rates on the Australian page, they vary by country |
| Canva | Free | Pro US$144 a year | Prices exclude tax |
| Claude | Free | Pro $20 a month, or $17 a month billed as $200 | A Max plan is also sold, from $100 a month |
| Webflow site builder | Starter, free, on a webflow.io address | Basic $15 a month billed yearly | A custom domain needs Basic or above |
| beehiiv newsletter | Free up to 2,500 subscribers | Lite $49 a month on yearly billing | Paid subscriptions need Lite or above |
Stripe's fee depends on the sale. On a A$100 domestic sale it is A$1.65 plus A$0.30, or A$1.95. On an international card it is A$3.50 plus A$0.30, or A$3.80. Claude appears in 81% of our ideas because every plan is written around its prompts, so we leave it out of tool rankings, but it is still a real cost.
What does a real starter stack add up to?
Three versions of the same service business, with the sums shown. All figures are US dollars, for year one, before payment fees and tax.
| Stack | What is in it | Year one |
|---|---|---|
| Free plans | Claude Free, Canva Free, a .com domain | $10.98 |
| Paid assistant and a site | Claude Pro ($20 x 12 = $240), Canva Free, Webflow Basic ($15 x 12 = $180), domain ($10.98) | $430.98 |
| Everything paid | Claude Pro $240, Canva Pro $144, Webflow Basic $180, domain $10.98 | $574.98 |
Paying for Claude Pro as $200 up front cuts the middle stack to $390.98 and the last to $534.98. Even then, the all-paid stack is over the $500 line, which is why we advise starting on free plans and upgrading when income pays for it. A newsletter has its own cliff: beehiiv is free up to 2,500 subscribers, but its Lite plan is $49 a month on yearly billing, or $588 a year, and you need it for paid subscriptions. In year two the domain renews at $18.48.
Does spending more earn more, or faster?
Not faster. More, in our estimates, but only because the ideas that cost more are different kinds of ideas.
| Starting cost | Ideas | Median potential a month | Median weeks to first dollar | Beginner ideas |
|---|---|---|---|---|
| Nothing | 38 | $1,500 | 6 | 76% |
| Under $500 | 307 | $2,500 | 4 | 30% |
| $500 to $2,000 | 23 | $4,500 | 6 | 0% |
| Over $2,000 | 2 | too few to compare | too few to compare | 0% |
The no-cost ideas are mostly beginner ideas, slower and smaller. The $500 to $2,000 group is dominated by lead generation, which has a higher median potential and no beginner ideas at all. Those are estimates of potential, not what anyone has earned, and the extra money buys ads, not a quicker result. Our full timeline data is in how long it takes to make money online.
How to keep the cost down
- Start on free plans. Claude, Canva, Webflow and beehiiv all have one.
- Buy the domain, nothing else, on day one. It is about $11 in the first year.
- Delay annual billing. Pay monthly until a customer covers it.
- Choose a model that matches your cash. If you have under $500, avoid lead generation and stock based stores.
- Count fees. Stripe's A$0.30 fixed fee matters on small sales.
For specific ideas that fit a small budget, read online business ideas under $500 and ideas with no money, or take the 60 second quiz.
About this data
Cost bands cover the 370 ideas live on 14 October 2026, researched between 20 August and 13 October 2026. The bands are our estimates, not quotes. Tool prices were read from vendor pages on 15 October 2026, in the currencies shown, and exclude tax.
Questions people ask
How much does it cost to start an online business?
In our research of 370 ideas, 93% cost under $500 and 10% need nothing. Most of the spend is software subscriptions and a domain name. A free-plan start costs about $11 for a .com domain in the first year, at the time of writing.
What is the cheapest online business to start?
Models with the most ideas needing nothing at all are niche newsletters (6 of 16), digital products (10 of 32), print on demand (5 of 16) and faceless content channels (3 of 12). They are cheap but slower or lower in potential, so cost is not the only thing to weigh.
Why do some online businesses cost more to start?
Mostly paid advertising. Lead generation, where you pay for ads before a client pays you, puts 17 of its 25 ideas in the $500 to $2,000 band, and niche online stores often need stock or ads. Software and service ideas rarely cost more than a few subscriptions.
How much does Stripe cost for a new business?
There is no monthly fee on standard pricing. On Stripe's Australian page at the time of writing, domestic cards cost 1.65% plus A$0.30 and international cards 3.5% plus A$0.30, with 2% extra for currency conversion. A A$100 domestic sale costs A$1.95. Rates differ by country.
Do you need to buy a website to start?
Not at first. A domain costs about $11 in year one, and a paid builder is optional. Webflow's Basic plan, needed for a custom domain, is $15 a month billed yearly at the time of writing. Many ideas start on a free page, a link in bio or a form until the first customer pays.