6 Proven Best Paying Online Business Models in Kenya
For aspiring entrepreneurs in Kenya, certain types of online businesses tend to be more profitable than others based on factors like lower barriers to entry, higher pricing potential, and easier scalability.
This guide will walk through the most lucrative online business models that offer the highest earning potential for Kenyans along with actionable tips for getting each one off the ground.
Table of Contents
Model 1: Freelancing
One of the best entry points into online entrepreneurship is freelancing – selling professional services directly to clients as an independent contractor.
In-demand freelancing services like programming, graphic design, digital marketing, writing, and more are location-independent and can command high rates, especially for those with top talent.
Here are tips for starting a profitable freelance business in Kenya:
Choose Your Niche
Select your area of expertise to focus on. Specializing in one service makes marketing easier and allows you to charge premium rates.
Build Your Portfolio
Create samples and case studies for potential clients showcasing your work and abilities in your chosen freelance field.
Create Your Online Presence
Have a personal website, LinkedIn, Twitter, etc to appear professional for prospective global clients.
Join Freelancing Platforms
Sign up for popular sites like Upwork, Fiverr, and Freelancer.com which have massive client bases.
Market Your Services
Promote your freelance services by running Google/Facebook ads, outreaching to ideal clients, participating in groups/forums, and leveraging content marketing.
Talented Kenyan freelancers in top fields can earn over $50/hour working for overseas clients.
This online business model beats most location-dependent options.
Model 2: Ecommerce Stores
Another online business model seeing massive success in Kenya is ecommerce – selling physical or digital products directly to buyers through a proprietary online store.
Unlike traditional retail shops which have limited reach and office space, ecommerce stores can tap into national or even global demand while keeping inventory costs low.
Here is how to launch a profitable Kenyan online retail store:
Choose a Niche
Pick a niche with demonstrated buyer demand like electronics, fashion, supplements, info products, etc. Avoid oversaturated markets.
Set Up Your Ecommerce Platform
Use open source software like WooCommerce or Magento to set up an online storefront tied to your domain name and hosting account.
Source Reliable Suppliers
Find suppliers, manufacturers, or producers that can consistently supply your chosen products. Import unique goods not already common in Kenya.
Buy a Product Catalog
Quickly build up your online product lineup by purchasing established ecommerce businesses selling on platforms like Exchange Marketplace then assimilate under your brand.
Promote Your Online Store
Run marketing campaigns across search, social, influencers, pay-per-click ads, content, and email nurturing to attract customers and sales.
By focusing relentlessly on product selection, competitive pricing, quality branding, and solid marketing, Kenyan online stores can realistically generate over Ksh500K/month within their first year.
Model 3: Affiliate Marketing
A popular online monetization model that is easily accessible for Kenyans is affiliate marketing – earning commissions promoting other companies’ products and services on your platforms.
For example, you can join the Amazon Associates program then feature Amazon products on your site or social media and receive a % of any sales generated.
The commissions earned can be significant especially at scale.
Here is how to get started:
Choose Your Niche
Pick an affiliate niche like fashion, software, travel, etc that aligns with your interests and existing audience. Don’t try promoting random products solely for high commissions.
Find Relevant Affiliate Programs
Search for affiliate programs related to your niche on sites like ClickBank, ShareASale, Pepperjam Network, CJ Affiliate, Rakuten, etc. Compare commission rates.
Sign Up For Affiliate Networks
Complete applications to join your desired merchant affiliate programs. Once approved, you will receive custom affiliate links to promote products.
Promote Affiliate Products
Drive traffic to the affiliate links through content marketing, influencers, social sharing, email lists, and pay-per-click ads. Target audiences likely to convert.
Top affiliate marketers can generate over $10K per month. While it takes effort to build traffic, you only pay marketing costs yet keep sizable commissions from conversions.
Model 4: Ad Monetization
A straightforward way for Kenyans to start making money online is by joining an ad network like Google AdSense and placing ads on your website pages and content.
It is one of the best paying online businesses in Kenya!
How does it work?
When visitors click on the ads, the ad network pays you a share of the ad revenue.
Earnings scale up as your site traffic and clicks increase over time.
Here is how to maximize income:
Increase Your Website Traffic
The more people that visit your site, the more that will view and potentially click on ads. Promote your content across social, influencers, email, and more.
Place Ads Prominently
Test ad placements above the fold, in sidebars, between paragraphs, etc. The more visible, the higher chance of clicks. But avoid overly intrusive formats that irritate visitors.
Target In-Market Audiences
Create dedicated website content focused on lucrative niche topics like finance, technology, travel, education, etc. This attracts active buyers ready to convert.
Analyze Ad Performance
Check Google AdSense metrics regularly to see top-performing ad formats and page placements. Remove underperforming ads and maximize those earning well.
For context, I earn around $1,500 per month from Google AdSense across my network of content sites.
With enough traffic volume, you can ultimately drive towards the $10K+/month range over time.
Model 5: Consulting & Coaching
Monetizing your expertise by advising businesses or coaching individuals can be massively profitable.
Especially if you build authority in your niche and attract global clients.
As an online consultant, businesses will pay you high rates for strategic advice, technical projects, or executing campaigns for them.
For coaching, you help individual clients achieve personal or professional goals via paid video calls while scaling your reach exponentially.
Tips to start consulting or coaching online:
Establish Your Authority
Earn certifications, highlight past results delivered, get testimonials, and publish guest articles and thought leadership content to position your expertise.
Set Pricing
Charge hourly or package advice sessions, long-term retainers, project fees, signup bonuses, and recurring subscriptions for steady income.
Create Service Pages
Craft compelling sales pages explaining your consulting/coaching packages, ideal clients, scheduling flows, contact forms, and calls to action to convert visitors.
Market Your Services
Promote your consulting or coaching through webinars, podcast interviews, pay-per-click ads, email nurturing sequences, and affiliate partnerships.
Talented experts can charge between $100 to $500+ per hour for recurring consulting or coaching engagements, putting six figure monthly income potential well within reach.
Model 6: SaaS Products
A challenging but highly rewarding online business model is creating your own subscription SaaS product – Software as a Service.
This involves developing a web application like project management software, email marketing systems, etc then selling access on a monthly recurring basis.
Benefits are predictable recurring revenue, ability to scale exponentially, and tapping into the global market.
Here is how to get started:
Survey Potential Users
Create survey questions to validate the need for your SaaS idea before investing months of development resources. Pivot early if low interest.
Fund Initial Development
Cover initial programming costs yourself or secure seed funding from angel investors or platforms like Bankable in exchange for equity.
Handle Technical Aspects
Work with freelancers or outsource teams to handle programming languages like JavaScript, access control, payment integration, security, hosting infrastructure and more.
Market Extensively
Focus aggressively on content marketing, influencers, affiliate partnerships, email nurturing, social media, and pay-per-click ads to gain users and positive word-of-mouth referrals.
While SaaS products require significant upfront effort and funding, once traction hits they can throw off $100K+ in recurring revenue monthly. Well worth the effort for patient entrepreneurs.
There you have it, 6 of the best paying online businesses in Kenya!
Key Takeaways
- Popular online business models like freelancing, ecommerce, affiliate marketing, ad monetization, consulting offer the highest income potential in Kenya
- Specialize in one niche, continually showcase expertise, and leverage global platforms to maximize freelance profits
- Choose niche markets wisely when launching online stores and focus on strong branding plus variety of marketing channels
- With affiliate marketing, pick an aligned niche and test promotions thoroughly to drive high converting traffic
- Ad networks like Google Adsense generate passive revenue when you scale website traffic and optimize ad placements
- Consulting and coaching leverages your expertise; charge premium rates after you establish authority and results
- While challenging, subscription SaaS companies can throw off immense profits after reaching scale so worth the effort
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