Starting a digital wallet business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell digital wallet, or selling digital wallet online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a digital wallet business ➜
|Min Startup Costs||Max Startup Costs|
|Office Space Expenses||$10||$2,250|
|Employee & Freelancer Expenses||$0||$5,500|
|Equipment & Supply Expenses||$525||$5,500|
|Business Formation Fees||$5,600||$20,400|
|App Creation Costs||$1,000||$20,000|
|Advertising & Marketing Costs||$0||$2,500|
|Total Startup Costs||$7,529||$66,544|
|Flexibility||You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.|
|Ability to start your business from home||It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!|
|Traffic to your website||A digital wallet business gives people a reason to visit your website and to keep coming back to you!|
|Meaningful business connections||You never know who you will meet as a digital wallet business. This could be the start of an incredible business opportunity!|
|High customer retention rates||Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.|
|Control of workload||With starting a digital wallet business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.|
|Motivation of employees||If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.|
|Low margins||The gross margins for your digital wallet business are typically around 23%, which can make it more challenging to incur new expenses and maintain profitability.|
|High employee turnover||In the digital wallet business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.|
|Taxes||As a digital wallet business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.|
|High overhead expenses||With starting a digital wallet business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.|
|You may need to charge sales tax||If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)|
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.
Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.