“How much money do I need to start?” is usually the first question, and the honest answer is less than most ads suggest. A first online business can run on a few small, predictable costs. What it really costs is time, plus a few traps that are easy to sidestep once you know they’re there.
Below is a realistic minimum setup with prices checked on official pages as of October 2026. Prices change, so confirm them before you pay.
The Minimum Setup
You need four things to take a first payment: a place for people to find you, a way to get paid, a way to stay in touch, and (eventually) your own domain. Everything else can wait.
1. A Storefront or Simple Site
If you’re selling a digital product, the storefront can be your first “website.” Gumroad charges no monthly fee. As of October 2026 its pricing page lists 10% plus $0.50 per transaction for sales through your profile or direct links, and 30% for sales that come through its Discover marketplace. Gumroad also says it acts as merchant of record and handles sales tax collection and remittance. That saves a beginner real work, but read the terms yourself.
If you’d rather have a simple one-page site, Carrd lists three paid plans as of October 2026: Pro Lite at $9 a year (no custom domain), Pro Standard at $19 a year and Pro Plus at $49 a year, and both of those include custom domains. A full WordPress site is more flexible, but it adds hosting costs and more to learn. Many beginners are better off waiting on it.
2. A Domain
A domain is optional on day one, but it’s cheap insurance for your brand. Prices vary by extension and registrar. The number that matters is the renewal price, not the first-year promotion. Cloudflare, for example, says its registrar charges only the registry and ICANN fees, with no markup on registration or renewal. Whatever registrar you use, check the renewal line before you check out.
3. An Email List
An email list is the one asset you control even if a platform changes its rules. Several email services have free tiers. As of October 2026, Kit’s pricing page shows a free plan with unlimited landing pages, forms and broadcasts, with paid plans starting at $33 a month (or $390 a year). MailerLite’s free plan is listed at up to 250 subscribers and 2,500 emails a month, and campaigns are blocked once you go over the subscriber limit. Pick one and stay on the free plan until your list actually outgrows it.
4. Payments and Payouts
Platforms like Gumroad handle checkout for you. If you sell services, you’ll typically invoice through a payment processor. Either way, open a separate bank account or at least a separate tracking spreadsheet from day one. It makes taxes far less painful.
A Sample First-Year Budget
Here’s what a lean setup might look like for someone selling a digital product. These are illustrations, not quotes:
- Storefront: $0 a month, plus per-sale fees
- Simple site: $0 to $19 a year (Carrd Pro Standard if you want a custom domain)
- Domain: varies; budget for the renewal price
- Email: $0 on a free tier
- Design: free tools or a template you already own
Your total could reasonably stay under $100 for the first year. Spending more doesn’t make the business more real.
The Costs Nobody Mentions
Taxes
Side income is still income. According to the IRS, you generally owe self-employment tax (15.3%, made up of 12.4% for Social Security and 2.9% for Medicare) and need to file Schedule SE if your net earnings from self-employment are $400 or more. Many people set aside part of every payout from day one. Rules vary by situation and state, so check IRS.gov or talk to a tax professional. This is general information, not tax advice.
Time
This is the real investment. A product, a few posts and a small list can easily take dozens of evening hours before the first sale, and the first sale may be months away. Most people earn little at first. Plan your weeks around a steady routine, not a deadline for income.
Shiny Tools
The fastest way to burn money is paying for software before you need it. Courses promising a shortcut, premium themes, paid “starter kits” and monthly AI subscriptions can quietly add up to hundreds of dollars. A good rule: upgrade a tool only when the free version is clearly holding back something that’s already working.
Do This Today
Open a spreadsheet and make three columns: Tool, Monthly cost, Renewal date. List everything you’re paying for (or planning to buy) for your side business. Cancel or hold off on anything that isn’t one of the four basics above, and put the renewal dates in your calendar.
More on Totally Relentless
- Why Your Side Business Needs an Email List, Even a Tiny One
- Time Blocking Around a Day Job: A Practical Weekly Plan
