1. You can automate many of the mundane and repetitive operations when it comes to running a home based business on the Internet. In many ways it's like having a business with several employees. The main difference is you can do everything all by yourself without the need of hiring even of a single part-time employee to help you.

2. Running your own successful home based Internet marketing business eliminates the need for office space and inventory. For the most part you can operate your business 100% online with nothing more than a computer and Internet access. Most home based businesses either drop ship their products or sell other people's products and leave the shipping and handling side of the business to the drop-shipper.

3. Customer service issues can be handled more quickly as well. You can set up a frequently asked questions page on your website where people can find answers to the most common questions. As your internet marketing strategy develops you will begin to build larger volumes of traffic so automating this aspect of your home based business from the beginning is quite important.

At this stage it may be necessary to allow customers to submit support tickets directly to you by e-mail, which you can reply to in a timely fashion.

If you choose you can also do instant messaging or even do local or international phone calls on Skype or a similar service. The fact that they are dealing with the owner appeals to many people as well.

4. Very often you will find that making money online is a quicker and more profitable process because you're open for business 24 hours a day. With a traditional store you are only open 40 to 50 hours a week and generally is closed at least once a week.

5. It's easier to take on new products with an Internet marketing business because you just add links to pages where the products are sold and can add a new product in a matter of seconds, or minutes at most.

6. With an Internet marketing business, competition is not really as big an issue as some people think, because with a worldwide reach you will never run out of prospects or customers. In a traditional business if someone opens up a shop next to yours the competition is really on.

7. With a home based internet marketing business, you can easily develop new Internet marketing strategies and branch out into other niches.

Once you are making money online with one website you can start another one in a totally different niche and make even more money.

These are seven key things you should be aware of when planning to set up a home based business online.

As you can see the advantages are many and offer you a tremendous opportunity to start and run a home based business of your own online.