What Are The Steps In Creating An Online Business

Many people ask me what are the steps in creating an online business. The answer is amazingly simple. But today, I’m going to make it even simpler for you.

There are only 3 steps in creating an online business.

Step 1: Select an online business model
Step 2: Create a website that executes the business model
Step 3: Promote the hell out of it!

Step 1: Select an online business model

There is one powerful online business model that I particularly prefer.

This business model was popularised by Mike Filsaime, who named this model as Butterfly Marketing.

Here is how the model works:

– You giveaway something that people want, in exchange for their email addresses.

– When these people opt-in to your list, you present them with a one-time-offer, usually a high value product at rock-bottom price. The conversion rate for a one-time-offer is usually 10%.

– You run your own affiliate program and encourage your subscribers to refer more people to your site.

– You can follow up with your list, recommend more products to them and make more sales in the future.

I like this business model because of 3 reasons:

1) You are building a list.
2) You make instant cash!
3) It’s a viral model, where your subscribers become your affiliates, who in turn refer more people to you.

So now you have it, a powerful business model that you can use to create an online business.

Let’s move on to step 2……

Step 2: Create a website that executes the business model

So, how do you create a website that can do everything that I mention above?

In short, you need a script.

Please don’t ask me what is a script. All you need to know is if you install a script to a server, you can have a website that can do all kinds of stunts that the script wants it to do. For example, if you can find an Ebay script and install it, you’ll get a website similar to Ebay. Get the idea?

So where can you find such a script?

You can either buy a ready-made one or get a freelancer to write one for you. A simple script will cost you about a hundred dollars. A multifunctional one can cost you a thousand dollars.

And here comes the good news……

I’ve created one for you, for free!

The script I’ve prepared for you comes with the following features
– everything discussed in Step 1
– a banner rotation system
– an exit popup system
– a complete autoresponder and list management system

We’re still working hard to wrap up everything and should be ready to deliver to you next week. But today, I would like to take this opportunity to give you a preview.

Take a look at the demo site here > User Demo

Take a peep into the demo Admin back office here > Admin Demo

Like it? It will be yours soon if you are a LeadsLeap member. (If you are not a LeadsLeap member yet, it’s not too late to join us.)

Ok, now that you know how to create a website that executes the business model, let’s move on to Step 3.

Step 3: Promote the hell out of it!

Well, just promote the hell out of it using all the traffic generation methods you have read, heard and seen. There is no short cut to this step.

There you have it – the 3 simple steps in creating an online business. I hope next time, you are the one who answer this question “What are the steps in creating an online business?”.

142 thoughts to “What Are The Steps In Creating An Online Business”

        1. Kenneth, really thank you very much for this stuff. I know it´s been 5 years since the beginning of this great post & giveaway but I´d like to give my opinion commenting that I´ve got some techy issues. I just finished the whole set up on my server on all that process, but I just can´t login to my “http://mydomain.com/admin”. Why is that? It just says some “401 error” and redirects me to my “wordpress /wp-admin”. The server is on Hostgator.

          Thank you for your help!!

          Sergio :)

      1. Thanks for sharing that Online Business issue. I was very pleased to find this web-site.I wanted to thanks for your time for this wonderful read!! I definitely enjoying every little bit

    1. I like all the say at my store so I just pass my purchases around. I treat them as a team which I’m sure hurts me bc I’ll never achieve vip status but they all know me by name and I just go with whomever isn’t busy.

    1. Mary, you don’t have to be curious. You have access to the admin area via the link above. Take a look at it now and look at all the features available.

    1. Larry, whatever program you are involved in, this script can promote all of them (well, provided they are all targeting the same group of people). The business model that the script delivers is THE BASIS of some of the most successful internet business out there. Build your own list, make instant cash for future growth and keep growing your own business. If you can achieve this, you can promote any other business you want.

  1. Looks like you’ve come up with an amazing idea Kenneth. Can’t wait to find out how and when I can get started!

    Thank you once again for your continued good advice and practical support.

  2. Kenneth, if this works as smoothly as it sounds (and i have no reason to doubt it!) then you might just have solved one of the big all time problems for beginners; – keeping it simple but also effective.
    I can see how this will work with something I am working on of my own at the moment, and as that also includes Leadsleap as a primary program it should hang together well.
    I look forward to getting access to the finished product

  3. This sounds totally awesome. I’ve trying to figure out how to make my own splash page and what is that people would what of value that I can give for their email. I’m kind of starting to figure out that promoting you busines outright is somewhat a waste of time. But my list seems to be growing with some of the things I have been learning and this will be very helpful.

  4. Lovely Idea, I really look forward to learning all there is to this and saving a ton of money in the process. I have a blog already but my question is ; How do I incorporate it with the site?

    1. If you already have a blog, it would be better to install this script to a new domain. It would be perfect to have the script and a blog to work together. The script is your list building weapon. Your blog helps you to build a long term relationship with your list. Nothing is more perfect that that.

  5. Looks great Kenneth, I will be looking forward to seeing the completed site. Still I have the nagging problem of finding a product or service that will be perceived as a great value.

    Thanks again:


  6. I think this will be such a helpful tool for everyone trying to figure out how to get leads. I’ve sort of realized that promoting your business outright isn’t helpful and have been trying to come up with better ideas on what is it that people online want and consider to be valuable so that I can design squeez page to give things of value to gain subscribers. I’m learning but I’m not quite there yet.

    Thank you Kenneth for helping us all out.

  7. Hi Kenneth

    I like your step 3 promote the hell out of it. I was talking to a friend 2 days ago and he was interested in those autopilot money making scheme, I remember I told him what ever the scheme sales letter is saying, you still need to do one thing, that is Marketing and Promotion to build your business.

  8. Nice work Kenneth,

    I have a question: Can this great tool only be used to email to the same list, or can it be set up with multiple lists for different products.?

    1. There is only one list in this script. You must understand that this script is powerful for you to build a list in a broad niche such as internet marketing or weight loss for example. If you want to build a list on weight loss, then you should create a new domain, install this script and give away a weight loss related product and build a list on weight loss. Same goes for internet marketing or any other niche.

      1. hi Kenneth,

        This is a great tool,simple and easy for beginners and those without html knowledge like myself. With reference to the comment by John and your reply, does it means that let say I have 2 online affiliate items to promote , one is physical item and the other is a digital item. Do I need to register 2 domains for this 2 product and use the free script you provided to promote both this products ?

        1. Yes if these two products are in different niche. But if both are in the same niche, it’s better to just build one list.
          I don’t advice you to build many minisites with this script. You will do better by focusing on a niche, such as the internet marketing niche, and establish yourself in that niche.

  9. Thanks Kenneth for everything. You are great! Membership model does work well & I am sure your membership script will help many newbies to become expert internet marketers. I look forward to downloading the copy soon :)

    1. One thing you need to note is that the script is not a membership website. A strict membership website requires login ID and password for its subscribers but for this script, there is no login for subscribers. The advantages are it encourages more people to opt-in and there are less admin support to be done. The disadvantage is it’s not a membership site.

  10. I think this is a great idea. You mentioned it will go well with any niche. I can see how it will go well with offering a free product. What do you think about offering a free service? How would it go with an affiliate membership already in place?

    1. The script is so flexible that you can offer anything. For free service, instead of giving them a download link, you can give them access to a separate webpage that has the details of how they can subscribe to your free service. As an OTO offer, you can offer a cheaper deal for your existing membership program. Again, in the OTO download page, instead of giving them a download link, you give them a link to a page where they can subscribe to your membership at a discounted price.

  11. Hi Kenneth,

    I think this is a great IDEA. 2 Questions only.

    If P*** is not willing to pay money to South African citizen, will I be able to add say AlertPay or ClickBank to the script, else if will be of no use to me.

    Were will the autoresponder be hosted?


    1. Good question.
      1. It supports P*** only. For other payment modes, you’ll have to modify the script a bit or we may come out with a version for Alertpay (Very likely. If I forget, just send in a support ticket to remind me.)
      2. Everything will be hosted in your server, including autoresponder. There is no need for you to get other autoresponder service.

  12. Kenneth, I cannot believe you are giving away for free! This is way too good to be true! How I wish I have this kind of system long time ago! It make our work easier and save ton of money! You deserve my respect more than other “Gurus” squeezing our money out there. 2 thumbs up!

    1. Jimmy, you can’t be more right than that! Install this script as the main page, then start a subdirectory named domain.com/blog. Pretty much like what we’re doing at LeadsLeap. This is the ultimate way to build a strong business in any niche.

  13. Great post and good script Kenneth. I have been doing exactly what you mention using a well-known script and getting great results. Example Here

    I have been giving away one of my $27 products on a special page and when the visitor opts in to get the product, they see an oto of related IM products. Once they download my product after they buy or pass on the oto, they are told how they can make money giving away the same product. Since they just went through the process themselves, they know it works.. I have added over 600 members to my list in about 3 weeks. Pretty powerful stuff. If you can help your subscribers make money, they will stay with you longer and look forward to your emails to see what else you have going on.

  14. Wow! What more can be said? This is absolutely amazing! I have already downloaded the script, but I think I need my husband to help me figure out how to install it and to “green light” with me on what to give away, domain name, niche to use, etc. Kenneth, you have gifted us with more than I have ever seen yet in my several years of searching on the internet! I’m so glad I found leadsleap! From what I am understanding, you are encouraging us NOT to go with a micro niche, but rather with a broader audience. Am I right? And if so, what is the reasoning behind that approach? Thank you, thank you, thank you!

    1. I’ll address this issue in my next blog post. But generally, you want to be in a niche that is worth your effort. If I were to spend time building and nurturing a list, I’d want to make sure that this list of people will keep buying things and their interests are not likely to fade away after a while.

  15. Thank you very much, that will come in handy with my niches as I create them, great work! It will work well with my current niche, bravo!

  16. kenneth, i hv an existing autoresponder wit getrespnse, where i m currently building my list. Question, does yr script allow me to forward the new subsribers from yr script to my existing getresponse autoresponder? pls advise

    1. No. I don’t think getresponse allows you to do that too. I suggest you build two lists. One with getresponse and one with the script. If you find that your list is growing faster with the script, transfer your getresponse subscribers into your script list. This can easily be done by getting a freelancer to do it for you or if you are a technical person, you can do it yourself.

  17. Hi Kenneth,

    this is wonderful, as i was about to suscribe to one of the autoresponder service but when i got your article and read about the new script that can do completely to start my online business and build my list…i was relief totally…its been very very helpful to me as a newbie…goodluck and looking forward to your continous support to all the members of leapslead..

  18. Kenneth,

    I like your steps in making a successful on-line business. it is direct to the point, no-frills approach to things.

    The “promoting like hell” is the rub. I still don’t know how to do it after almost a year bumming the Internet hi-way.

    Can anyone please help me?


  19. Thanks for the online download of a very useful script.

    I am leaving Inside Knowledge magazine to develop the start up of a new magazine called Smart People which will help people understand the empowerment the Internet and social networking has brought to them and how they can use it to their advantage at home, work and play. It’s the other end of ‘Knowledge Management’.

    Anyway, I was wondering if you had a line on a standard script for managing an online periodical. I guess I could steal one from another magazine?

  20. Hi, I have been dreaming about something like this and looking for something like this for long , sooo good for newbies , as i noted above about payment only through pay pal. Please add a mobile phone payment option as this would increase the number of customers willing to pay for the service/products i will offer.

    “The number of mobile phone users worldwide soared to over 3.3 billion last year” source from Google search.

    Thanks for everything.

  21. Thanks Kenneth,

    It seems as though there would be more
    to this than just these three steps. Many
    are not aware of the fact that it is just
    this simple to start earning here on the
    Internet. It is very much appreciated
    all that you do offer someone trying to
    get start make some money here on
    the Net.

    Thanks again,

    Brian Lawrence

  22. Some ideas are long and drawn out, others are quite simple, depending on what it is your are promoting or trying to sell, that has been my experience to date.

    Lots of ideas are forming here, and thanks for the comments posted here

  23. You have given us good information.

    Another business model I like is affiliate marketing. This is where you would sell someone else’s products and earn a commission every time you make a sale.

    Affiliate marketing does not require that you have your own product and is inexpensive to start.

    YOu can choose a niche and build a website around it. Then find affiliate products to offer that are related to that niche.

  24. I’m ready to get my feet set to run. I’ve been reading and learning how to set up a blog. I would also like to link this site to my blog and Skype account. I’m ready for the challenge. Thanks a lot.

  25. Hi,
    This all sounds very good but I have a problem. I live in South Africa, and we cannot use Pay~Pal to receive money, although we can pay through them. This has been a very frustrating battle for me as most places only use Pay~Pal.

    Is there a way to a different payment processor at all.

    Thanks for everything,

  26. I am trilled to have read the script. I just cannot wait to find out more. The help and information that you give is revolutionary. I must say. I am looking forward to learning more.
    Thanks So Much,

    Caroline Schukraft

  27. Yes..i agree..
    The whole process of SEO is a great mess…
    You got to be a master in this field to earn a good reputation.
    By the way..
    Nice Post : )
    I also got a lot of information on my blog that will help people getting the most money out in the least possible time.. Have a look on Earn more money NOW!

  28. This is an incredible system you’re offering Leadsleap members Kenneth. Newbies and even more seasoned marketers can make great use of this to increase their list and build their business.
    You are truly an over-deliverer :).

  29. Hello,

    Most of people make it easy when it comes to teach how to start an internet business!!! But, in reality it’s NOT. If it’s that easy why do most (95% or more) people fail to make any money online?

    Starting an Internet business is not three steps a way from getting reach or even making few bucks. Starting and managing an internet business is not as easy as driving a car to the grocery store, or doing your grocery for that matter.

    I know we can’t teach people how to start an internet business in one blog post, but we can make them underestand that starting a business is one of the biggest obstacles entrepreneurs face to be prepared from day one.

  30. Thanks for your sharing info about What Are The Steps In Creating An Online Business.
    These 3 steps are very important things we have to know before getting start in online business but it ‘s not enough. We must know how to attract and make relationship with our prospects automatic because It ‘s the key to success.

  31. Your 3 steps in creating an online business is a great tips but it ‘ll be better if we know how how to market our business. Could you suggest me about how to market my online business with SEO?

  32. I think that all Internet marketing newbies should know these 3 step of creating an onlne business before and then the most 3 important things they should know are
    – Keyword Marketing
    – Article Marketing
    – E-mail Marketing

    Thanks for sharing.

  33. Thanks for sharing. This is a good suggestion for any internet marketing newbies. I agree with Search Job at home that there are another 3 important things that we should know such as Keyword Marketing , Article Marketing and E-mail Marketing.
    Keyword Marketing help us to found our prospects.
    Article Marketing help us attract our prospects.
    E-mail Marketing help us making relationship with our prospects.

  34. Thanks for sharing post. Your guide of 3 steps in creating online business is very useful for any newbies but if you want to succeed in online business you should give yourselve the time for learning and practice more and more until you become an expert.

  35. This is the best guideline for everyone who decide to start an online business including me. Could you suggest me about how to market my online business and what is the best way to do?

  36. Thanks for your basic guideline for any newbies about how to getting start in online business. Nowadays there are many people around the world interested in working from home and I think online business is the best chioce for them.

  37. Thanks a lot for sharing your knowledge with us! I must agree with most of what you say. You give some really good advices there… Then it’s all about action. Thanks again, keep it up!

  38. How To Choose A Business!

    Step 1-Can you verify the company’s profitability?
    Step 2-What is the age of the company?
    Step 3-Does the product have exclusivity?
    Step 4-Does the core desires of the product have something to do with love, health, or wealth?
    Step 5-Can you be passionate about the product?

  39. How did I miss that post? :( Thanks for sharing your knowledge with us! This is really useful. I like to think it’s all about learning and… taking action.

  40. There are a great many potential buyers out there on the internet and many ways to advertise your small business in Internet. Writing small classifieds ADS is superb way of promoting the website in internet.Small Business Classifieds, when used effectively, can be one of the quickest and inexpensive ways to increase sales and customers. For more details visit

  41. Rome wasn’t built one one day. To build up a successful business is a lot of hard work and will take a lot of effort. Those three steps are a guide on the way though:)

  42. There are a number of things to consider when creating an online business. This article sums them up nicely. It’s critical not to forget establishing a business model and target audience, and then to go from there!

  43. I whole heartedly agree with this post… even if you are new to internet marketing, this should make sense to you.

    I use another descriptive method which says “You Must Have A System” In Place in order to be successful in business. It really doesn’t matter what the business is, if you don’t have a workable system, you are doomed, before you even get started.

    Systems can be as simple as the one you described or they can be complicated. However, the effectiveness of the system is what matters.

    What’s hard sometimes if you are new to a new system, a person tries the “reinvent the wheel” kinda approach. I know I am guilty of this… even when I believe that the model is sound and makes since. Now this will cause a person to waste a lot of valuable time & energy.

    It’s really kinda hard sometimes to accept at face value the power of a simple but effective system, so one often takes the long way around sorta speak. Not much to do there but chalk it up as a valuable life experience (pressuming the person learns from this…)

  44. Thanks to your sharing information about What Are The Steps In Creating An On-line Business.
    These three steps are essential things we’ve got to know before getting begin in online business nevertheless it ’s not enough. We must know easy methods to appeal to and make relationship with our prospects computerized as a result of It ’s the important thing to success.

  45. Thanks for sharing post. Your guide of 3 steps in creating online business is very useful for any newbies but if you want to succeed in online business you should give yourselve the time for learning and practice more and more until you become an expert.

  46. Yes, the profit funnel system does seem to make the most amount of sense. Free stuff attracts people who in turn sign up to your list. The OTO makes you a little money on the side, and the affiliate setup can make you a lot more. Most of all, you have a list of subscribers with some level of trust in you to slowly bring into whatever opportunity you are offering.

    The script is a nice one. I have tested it, and have great plans for it. Thank you, Kenneth.

  47. I wasted so much money on promises of big earnings none of which got me anywhere. If you want to get into internet marketing and need training then I have just the thing for you. I tried this and now am making enough residual income online to survive. Please visit this website today where myself and Chris will show you the way forward. http://www.train-with-chris-farrell.com It may just be what youv’e been looking for.

  48. Wow! This is great! I signed up with LeadsLeap about 5 months ago and never had the time to really look over it. I’m so glad I decided to check your site out again. I have finally find what works best for me when it comes to making money online. So now I have more time to do what I want :) If anyone wants to turn $50 into $1000 and as a Facebook account then inbox me at contact@moneybuildersbank.com .Look me up on Facebook at the name above if want. My group is 100% legal and legit.

  49. I remember when I was at the begining…great times! Just one advice for others: quality first!!! It is not enought to have a couple of lines and 2-3 products..look for quality…

  50. Kenneth, thank you so much for this giveaway. I´d like to give my opinion commenting that I got some tech issues. I just finished the set up on my server on all that process, but I just can´t login to my “http://mydomain.com/admin”. Why is that? It just says some “401 error” and redirects me to my “wordpress /wp-admin”. The server is on Hostgator.

    Thank you for your help!!

    Sergio :)

  51. This is a very well thought out, and easy to understand. I’ve been in internet marketing for a few years, and getting traffic has been my weak point. I can see a lot of good things happening as a result of my membership with LeadsLeap. This is a no brainer!

  52. This is a really good post. Very easy and simple steps to follow, even for newbies.
    The big issue is the promoting of the site because you cannot really use SEO tactics, which can be quite expensive if you use soload vendors all the time. I am now going to use article marketing..

    Thank you.


  53. Wow Kenneth!!! I’ve NEVER seen such outstanding work on everything you do to help us marketers! With Leads Leap, all the rest might as well shut down! You guys RULE, and I’m proud to be a member and have your widget on my website! I’m just in AWE!!!! Thanks again, Kenneth for all you do as I’m still learning!!!

    Gary Jordan


    Dallas, Texas, USA

  54. Dear Kenneth,

    I’m so interested in the three steps mentioned and will like to get my MYOB You said I’ll receive it in a weeks time? I’ll be waiting to get it.

    Thanks a lot.


    1. Hi Erlinda,

      You can get MYOB script in your member’s area. Go to ‘My Blogging Tool’ on the left navigation bar.


  55. Online marketing today has just get more complicated and many newbies without guidance are frustrated to make money online. With the tips about, sure anyone can earn passive income online. The most important thing is that, as a marketer, you should FOCUS on doing what you love. Give value to your clients and everything will follow after.

    keep it up!

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