What Tools Do You Actually Need to Start an Online Business? (The Honest Truth)

I’ll never forget the moment I realized I’d wasted $847 on tools I didn’t need.

I was three months into trying to build an online business, and I had:

A $29/month website builder I never used
A $97/month email platform with features I didn’t understand
A $47 social media scheduler for accounts with 12 followers
Three $197 courses sitting unwatched in my “Courses” folder
A $67/month video hosting platform (I’d uploaded one video)

Know what I’d made? $0.

The problem wasn’t that I didn’t have the right tools. The problem was I had too many tools and no idea what I actually needed.

So let me save you the $847 (and the three months of confusion) I wasted.

In this post, I’m going to tell you the brutally honest truth about what tools you actually need to start an online business—and what’s just noise from clever marketing.

Here’s what you’ll learn:

The ONLY 5 tools you need to start (most are free)
What you DON’T need (despite what influencers tell you)
How to choose tools without wasting money
Free alternatives to expensive software
When to upgrade (and when to stay free)

Let’s cut through the BS.

The Big Lie About Online Business Tools

Walk into any “how to start an online business” discussion and you’ll hear:

“You need a professional website!”
“You need the best email software!”
“You need analytics tools!”
“You need automation!”
“You need a CRM!”
“You need project management!”
“You need design software!”

Here’s what they don’t tell you:

You need exactly ZERO of those things to make your first $1,000 online.

I know because I made my first $2,000 with:

A free Medium account
A free email platform
Free Canva account
Free affiliate network accounts
My phone camera

That’s it.

The truth nobody wants to tell you:

Tool companies make money by convincing you that you can’t succeed without their product. Courses make money by overwhelming you with tech so you feel like you need help.

But the real barrier to your success isn’t having the wrong tools.

It’s not taking action.

Now, don’t get me wrong—tools matter. But only after you know what you’re doing.

Here’s what you ACTUALLY need.

The Only 5 Tools You Actually Need

I’m going to break this down into two categories:

Absolute essentials (you literally can’t operate without these)
Highly recommended (will make your life easier and increase results)

Let’s start with the essentials.

Essential Tool #1: A Platform to Publish Content

What it is: Somewhere people can find and consume your content

Why you need it: If people can’t see your content, you can’t make money

Free options:

Medium – Blogging with built-in audience
YouTube – Video content
TikTok/Instagram – Short-form content
Blogger – Free blog from Google
LinkedIn – Professional content

Paid options:

WordPress with hosting ($3-10/month) – Most control and flexibility
Systeme.io paid plan ($27/month) – All-in-one platform
Squarespace ($16-49/month) – Beautiful templates, less control

My Honest Recommendation:

Start free, upgrade when profitable.

If you prefer writing: Start with Medium or free Blogger

Pros:

$0 cost
No technical setup
Built-in audience (Medium)
Can start publishing today

Cons:

You don’t own the platform
Limited customization
Less professional than your own site

If you prefer video: Start with YouTube

Pros:

Massive audience
Built-in monetization (ads)
Ranks in Google search
Free forever

Cons:

Slower to monetize
Requires consistency
Need basic editing skills

If you want your own website eventually: Use Systeme.io free plan first

Pros:

Includes landing pages + email + sales funnels
Free up to 2,000 contacts
Easy to upgrade when ready
Professional-looking

Cons:

Slight learning curve
Limited customization on free plan

When to Upgrade:

Move to paid hosting + WordPress when:

✅ You’re making $500+/month consistently
✅ You want full control over your site
✅ You’re serious about SEO long-term
✅ You need advanced features

Recommended WordPress hosting:

SiteGround – $3-4/month (great support, beginner-friendly)
Bluehost – $2.95/month (popular, easy setup)

Essential Tool #2: Email Marketing Platform

What it is: Software to collect email addresses and send automated messages

Why you need it: Your email list is your most valuable asset

Let me be blunt: If you’re not building an email list from day one, you’re leaving 70% of your potential income on the table.

Social media platforms can ban you tomorrow. Google can change their algorithm. But your email list? That’s yours forever.

Free Options:

1. MailerLite

Free plan: Up to 1,000 subscribers
Features: Email campaigns, automation, landing pages, pop-ups
Best for: Absolute beginners who want simplicity

Pros:

Super clean, intuitive interface
Generous free plan
Good templates
Excellent deliverability

Cons:

Limited advanced features
Some features locked behind paid plan

Paid plans: Start at $9/month (when you grow past 1,000 subscribers)

2. ConvertKit

Free plan: Up to 1,000 subscribers
Features: Email sequences, forms, landing pages, automation
Best for: Creators and content makers

Pros:

Built specifically for creators
Powerful automation
Easy tagging and segmentation
Great for selling digital products

Cons:

Can be overwhelming for total beginners
Free plan has fewer features

Paid plans: Start at $15/month (for more features, even under 1,000 subscribers)

3. Systeme.io

Free plan: Up to 2,000 contacts
Features: Email + landing pages + funnels + courses + affiliate program
Best for: People who want everything in one place

Pros:

All-in-one (don’t need separate tools)
Most generous free plan
Simple interface
Can build complete funnels

Cons:

Not as specialized as pure email tools
Fewer integrations than competitors

Paid plans: Start at $27/month (includes EVERYTHING)

My Honest Recommendation:

For complete beginners: Start with MailerLite (simplest) or Systeme.io (most features for free)

For creators/bloggers: Start with ConvertKit (best for long-term growth)

Truth bomb: All three are excellent. Pick one and stick with it. Don’t waste time comparing forever.

When to Upgrade:

Stay on free plans until:

✅ You hit subscriber limits (1,000-2,000)
✅ You need advanced automation
✅ You’re making consistent money and can afford it

Essential Tool #3: Payment Processor

What it is: How you receive money when people buy

Why you need it: Can’t make money if you can’t accept money

Free to Set Up (They Take a % Per Transaction):

1. PayPal Business

Transaction fee: 2.9% + $0.30 per transaction
Best for: General online business, international payments

Pros:

Widely trusted
Easy setup (5 minutes)
Works internationally
Can send invoices

Cons:

Holds funds for new accounts
Customer service can be slow
Higher fees than some alternatives

2. Stripe

Transaction fee: 2.9% + $0.30 per transaction
Best for: Selling digital products, subscriptions, recurring payments

Pros:

Clean, professional
Excellent for developers
Works with most platforms
Great for subscriptions

Cons:

Requires business verification
Can hold funds if flagged
Less known to older customers

My Honest Recommendation:

Set up BOTH.

Why? Some customers prefer PayPal. Some prefer credit card checkout (Stripe). Don’t lose sales by only offering one.

Setup time: 15 minutes total for both

Cost: $0 to set up, only pay when you make sales

Essential Tool #4: Design Tool

What it is: Software to create graphics, lead magnets, social posts, thumbnails

Why you need it: You need visuals even if you’re not a designer

Free Option:

Canva (Free Plan)

Cost: $0 (Pro is $13/month but not needed initially)
Features: Templates for everything, drag-and-drop editor, stock photos

What you can create:

Lead magnets (PDFs, checklists)
Social media posts
Blog featured images
Pinterest pins
YouTube thumbnails
Presentations
Logos (basic)

Pros:

Zero design skills needed
Thousands of templates
Intuitive interface
Free plan is very generous
Works on mobile

Cons:

Some templates/elements require Pro
Can’t remove background on free plan
Watermarks on some stock photos

My Honest Recommendation:

Start with Canva free.

I used Canva free for my first year. Made all my lead magnets, social posts, and graphics with it.

Only upgrade to Pro ($13/month) when:

✅ You’re making $500+/month
✅ You need the background remover
✅ You want Brand Kit features
✅ You’re creating content daily

Alternative Free Tools:

GIMP – Free Photoshop alternative (steeper learning curve)
Figma – Professional design tool (free for individuals)
Remove.bg – Free background removal (limited uses)

Essential Tool #5: Affiliate Networks / Product Platforms

What it is: Where you find products to promote or sell

Why you need it: Can’t make money without something to sell

For Affiliate Marketing:

1. ClickBank

Cost: Free to join
Commission rates: 50-75% on digital products
Best for: Digital products, courses, software

Pros:

Instant approval
High commissions
Weekly payments
Thousands of products

Cons:

Some low-quality products
Need to vet carefully
1-2% marketplace fee

2. ShareASale

Cost: Free to join
Commission rates: 5-50% depending on merchant
Best for: Mix of digital and physical products

Pros:

Reputable merchants
Good variety
Reliable payments
Transparent reporting

Cons:

Approval can take 1-2 days
$50 minimum payout
Some merchants have approval process

3. Amazon Associates

Cost: Free to join
Commission rates: 1-10% (varies by category)
Best for: Physical product reviews, comparison posts

Pros:

HUGE product selection
Trusted brand
Easy to get started

Cons:

Very low commissions (1-10%)
24-hour cookie (short window)
Must make 3 sales within 180 days to stay active

For Selling Your Own Digital Products:

1. Gumroad

Cost: Free to use
Transaction fee: 10% per sale (free plan) or 3.5% (Pro plan at $10/month)
Best for: Selling eBooks, courses, templates

Pros:

Easiest to set up
Beautiful checkout
Handles delivery automatically
Can offer pay-what-you-want pricing

Cons:

10% fee is high on free plan
Limited customization

2. Systeme.io

Cost: Free plan available
Transaction fee: None (you keep 100% on paid plans, 5% on free)
Best for: Courses, memberships, digital products

Pros:

All-in-one (email, landing pages, course hosting)
No transaction fees on paid plans
Can run affiliate program
Membership site features

Cons:

Need paid plan ($27/month) for zero transaction fees

My Honest Recommendation:

For affiliate marketing: Join ClickBank + ShareASale (both free, instant access to thousands of products)

For selling your own products: Start with Gumroad (easiest) or Systeme.io free plan

What You DON’T Need (Despite What You’ve Been Told)

Let me save you thousands of dollars:

❌ You Don’t Need (At Least Not Yet):

1. Expensive courses ($500-$5,000)

Truth: 95% of what you need to know is available free on YouTube, blogs, and podcasts.

When you might need: After you’re making $1,000+/month and need specific advanced strategies

2. Premium WordPress themes ($50-200)

Truth: Free themes work great for beginners.

When you might need: When you’re making $2,000+/month and want specific advanced features

3. Project management tools (Asana, Monday, etc.)

Truth: You’re not managing a team. A free Google Doc or Notion is plenty.

When you might need: When you hire a team

4. Advanced analytics tools ($100+/month)

Truth: Google Analytics is free and more than enough.

When you might need: When you’re doing $10K+/month and need deep data

5. Fancy video editing software ($20-50/month)

Truth: Free tools like iMovie (Mac), DaVinci Resolve, or CapCut work great.

When you might need: When you’re a full-time content creator

6. Social media scheduling tools ($15-100/month)

Truth: You can manually post until you’re making consistent money.

When you might need: When posting becomes a daily job and you’re profitable

7. Webinar software ($50-200/month)

Truth: You don’t need webinars on day one.

When you might need: When you’re selling high-ticket products ($500+) and have an audience

8. CRM software ($50-300/month)

Truth: Your email platform handles this until you’re doing significant volume.

When you might need: When you have complex sales processes with multiple touchpoints

The Pattern:

Notice what all these have in common?

They’re solutions to problems you don’t have yet.

They’re designed for businesses making $5K-$50K/month, not beginners making $0.

The Real Cost Breakdown

Let me show you two scenarios:

Scenario A: The Beginner Who Wastes Money

Premium website builder: $29/month
Pro email platform: $49/month
Design software: $20/month
Course: $497 one-time
Scheduling tool: $15/month
Video hosting: $25/month
Analytics: $50/month

Monthly cost: $188/month
First 3 months: $1,061
Revenue in first 3 months: $0-$200

Result: Overwhelmed, broke, quit

Scenario B: The Smart Beginner

Free blogging platform (Medium or Systeme.io): $0
Free email (MailerLite or ConvertKit): $0
Free design (Canva): $0
Free education (YouTube, blogs): $0
Free affiliate networks: $0

Monthly cost: $0
First 3 months: $0
Revenue in first 3 months: $0-$500

Result: Profitable from day one, actually learning, still in the game

Which scenario would you rather be?

My Actual Tool Stack (What I Use Today)

For transparency, here’s what I use now that I’m making full-time income:

Currently using:

WordPress on Namecheap hosting ($4/month)
MailerLite ($10/month)
Canva Pro ($13/month)
Systeme.io for some funnels ($27/month)
Various affiliate networks (free)
Google Analytics (free)
Grammarly ($12/month)

Total monthly cost: ~$66/month

But here’s the key: I didn’t start with this stack. I started with everything free and upgraded as I could afford it.

How to Choose Tools Without Wasting Money

Follow this simple framework:

The 3-Question Test

Before buying ANY tool, ask yourself:

1. “Will this directly help me make money THIS MONTH?”

If no → Don’t buy it yet

2. “Can I do this with a free alternative for now?”

If yes → Use the free version

3. “Am I buying this because I actually need it, or because I’m avoiding doing the hard work?”

Be honest. Sometimes we buy tools to feel productive without actually producing.

The Upgrade Framework

Only upgrade a tool when you hit ALL three criteria:

✅ You’re using the free version consistently
✅ You’re hitting limitations that hurt your results
✅ You’re making enough money to afford it comfortably

Example:

“I’m using MailerLite free, I’ve hit 1,000 subscribers (the limit), and I’m making $800/month. Time to upgrade to the $9/month plan.”

That’s a smart upgrade.

“I’m using MailerLite free with 47 subscribers, not making money yet, but I think the Pro features might help.”

That’s a waste of money.

The Minimum Viable Tool Stack (My Recommendation)

If you’re starting TODAY with $0, here’s what I’d set up:

Month 1-3 (Proving the concept):

Content platform: Medium (free) or Systeme.io free plan
Email marketing: MailerLite free or ConvertKit free
Design: Canva free
Payment: PayPal + Stripe (free to set up)
Affiliate networks: ClickBank + ShareASale (free)

Total cost: $0/month

Goal: Make your first $100-$500

Month 4-6 (Growing):

Same tools, but now you might upgrade to:

WordPress + SiteGround hosting ($4/month) IF you want better SEO
Canva Pro ($13/month) IF you’re creating content daily
Email platform paid plan ($9-15/month) IF you hit subscriber limits

Total cost: $0-$30/month

Goal: Reach $1,000-$2,000/month

Month 7-12 (Scaling):

Now you can add:

Better email platform features ($50-100/month)
Paid tools for specific needs
Courses for advanced strategies

Total cost: $50-150/month

Goal: Build to $3,000-$5,000/month

Common Tool Mistakes (And How to Avoid Them)

Mistake #1: Buying tools before you need them

The trap: “I’ll buy this now so I have it when I’m ready.”

The fix: Only buy tools when you’re actively using them TODAY.

Mistake #2: Switching tools constantly

The trap: “Maybe THIS tool is the secret to my success.”

The fix: Pick one, use it for 90 days minimum, then evaluate.

Mistake #3: Paying for features you don’t use

The trap: “But the Pro version has analytics and A/B testing!”

The fix: Ask “Will I actually USE this feature this month?”

Mistake #4: Not starting because you’re researching tools

The trap: “I need to find the PERFECT tool first.”

The fix: Pick ANY free option and start creating content. You can switch later.

Mistake #5: Thinking tools will do the work for you

The trap: “This automation tool will make me money while I sleep!”

The fix: Tools amplify your work. They don’t replace it.

Your Action Plan

Here’s what to do TODAY:

Step 1: Set up your free tool stack (2 hours)

Choose platform (Medium or Systeme.io)
Sign up for email tool (MailerLite or ConvertKit)
Create Canva account
Set up PayPal + Stripe
Join ClickBank + ShareASale

Step 2: Commit to using free versions for 90 days

Don’t upgrade anything until you’ve:

Created at least 10 pieces of content
Made your first $500
Hit actual limitations (not perceived ones)

Step 3: Focus on creating, not tool shopping

Set a rule: No researching new tools for 30 days. Just create content with what you have.

Final Thoughts

I’ve spent over $10,000 on tools in the last five years.

You know what the ROI was on most of them? Zero.

The tools that actually made me money? The free ones I started with.

The truth is harsh but liberating:

Your lack of success has nothing to do with your tools.

It has everything to do with:

Consistency
Value you provide
Traffic you drive
Trust you build

You can start an online business with $0 in tools.

You can make your first $1,000 with free software.

You can build to $5,000/month without premium anything.

I know because I’ve done it. And I’ve watched hundreds of others do it.

Stop shopping for tools. Start creating content.

The perfect tool stack is the one you actually USE, not the one you BOUGHT.

Ready to Get Started With the Right Tools?

I created a free guide with:

✅ Complete tool setup checklist
✅ Step-by-step account creation guides
✅ Tool comparison charts
✅ Free vs paid decision framework
✅ My exact beginner tool stack

Download the Online Business Starter Kit (free) →

Inside you’ll get the exact tools you need and nothing you don’t.