Characteristics of a Winning Online Startup

While successful online startup companies come in all shapes and sizes, there are a few common characteristics that many share. These characteristics of winning online startups are true for just about every online field.

1. The startup offers a free service that previously wasn’t free. If a startup enters a field that typically charges the consumer but is able to offer a free alternative, that startup is likely to get a flood of quick and loyal business.

2. The startup creates a new niche. A lot of startups try to enter an already established niche. However, if a startup ventures into uncharted territory and creates a new niche, their chances of major success is higher.

3. The startup allows the user to make money. Especially in these rough economic times, people are looking for ways to make money. If a startup offers money as an incentive, they could grow very quickly. As a real life example, consider the origins of the Amazon affiliate program.

4. The startup builds a viral community. This characteristic is getting more and more prevalent. If a startup offers its user base an easy way to share their experience or draw in others, that viral characteristic is very powerful.

5. The startup piggybacks on the success of a previously successful startup. Millions of dollars have been made by startup companies that piggyback other successful companies. For example, hundreds of successful startups in the last few years have been companies that built add-ons, plug-ins and customizations for websites such as MySpace, Facebook and Twitter.

Does your online startup business idea share a characteristic? (Image: Flickr)