In a classic South Park episode, gnomes would steal people’s underwear.
One of the little thieves explained their business model.
- Phase 1 – Steal underpants
- Phase 2 – ?
- Phase 3 – Profit
Does this seem absurd? Yet most website owners are no different than these imaginary gnomes.
Here’s the top 3 signs you’ve got a hobby disguised as an online business.
1. There’s no realistic plan to earn income now or in the future. Profits are non-monetary. For example, social media “buzz” expressed by the number of “likes” received, retweets, comments, etc.
2. There is a plan to profit but that plan changes every three months based on the hottest new fad pitched by some Internet guru.
3. The website isn’t run like a business. There’s no liability shield in place, no contracts, and no website legal protections. No Internet business attorney or accountant to make sure whatever is earned is protected.
So, do you have an online hobby or a business? Don’t mistake one for the other.