Hi wflow,
First of all if you compare the cost to starting an offline business to the cost of starting an online business, it's ridiculously cheap. Of course if you use Site Build It!, then it is expensive at $299/yr, but if you go the domain and regular hosting route you're looking at $5/month when you total up the cost of the domain and the smallest/cheapest web hosting package at websitepalace.
And yes, if you want to make money you have to invest money in my opinion. Also don't forget website building software. Do you plan on purchasing some? I would strongly suggest doing that because you'll need some to build your pages.
There are some free ones out there. There's Nvu and Komposer. Several people here have used that. Maybe someone can reply with their experience using these tools.
But you gotta admit, starting a business for $5/month is dirt cheap when you compare the costs to starting an offline business.
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