Compare Online Business Models Based on Real-World Results

• Google updates: Helpful Content and other algorithm changes hit pure affiliate sites hard. Pages that constantly redirect users to external offers send negative engagement signals, causing rankings to collapse.
• Paid traffic economics: Ad costs keep rising while commissions shrink, making it hard to maintain long-term profitability. A significant portion of affiliate traffic can be low-quality or fraudulent, further eroding margins.
• Traffic and conversion challenges: Many affiliates cite “getting traffic” as their primary obstacle. With conversion rates often hovering around 0.5–1%, you need massive, targeted volume to earn meaningful income.

YouTube creators and influencers with their own audience can still succeed because they build trust and avoid some algorithm penalties. However, even Amazon Associates—the largest affiliate program—slashed many commission rates back in 2020 (for example, furniture and home improvement dropped from 8% to 3%), gutting earnings for countless affiliates in an already saturated market.

• Rising ad costs: Meta and TikTok ad costs have gone up, increasing the break-even point for campaigns.
• Smarter competition: Competitors launch professionally branded stores and high-quality video creatives right away.
• Tariffs and shipping: Tariffs on Chinese imports and consumer skepticism around 20–30 day shipping have made cheap AliExpress-style fulfillment less attractive.

The old playbook—throwing up a basic store, importing AliExpress products, and running cheap Facebook ads—is essentially dead. Today, you’ll likely need premium suppliers (like Zendrop, AutoDS, or CJ Dropshipping), fast fulfillment, strong creative, and real brand positioning.

The biggest weakness is how easy it is for others to copy you. Once your product and ad creative start working, competitors can duplicate your funnel and undercut you on price. Because you’re renting traffic from platforms instead of owning an audience, your success is always fragile. The opportunity still exists, but the effort, capital, and risk required mean the ROI may not be worth it for most beginners in 2025.

• Not targeting a specific niche: Platforms like Etsy host tens of millions of products. To stand out, you need hyper-focused ideas with stacked attributes, like “dog-mom car stickers” or “vegan athlete hoodies.”
• Failing to order test samples: POD is like dropshipping—you never touch the product. Ordering samples lets you verify real-world quality before customers do. For example, one Reddit user found their Printify ornaments were too poor quality for customers only after ordering samples:

• Using copyrighted or trademarked material: Amazon, Redbubble, and Etsy routinely ban accounts for IP violations. Avoid using characters or logos from popular movies, TV shows, and brands.
• Weak product listings: Incomplete descriptions and low-quality images directly hurt conversions. Surveys show around 87% of shoppers say complete descriptions help them make buying decisions, and higher quality images can lift e-commerce conversion rates by up to ~40%.
• Pricing too low: Many sellers try to compete on price in a saturated market. Instead, aim for around 2.5–3× the base cost so you have enough margin to run ads and still make a profit.

• Client acquisition: Roughly 34% of SEO agency owners cite acquiring clients as their biggest challenge. It’s harder to sell “potential rankings” than to sell leads or booked appointments.
• Proving ROI: Business owners don’t care about rankings alone—they want revenue. Many agencies struggle to tie SEO work directly to sales and closed deals.
• High churn risk: Once a client ranks well, they may question why they still need your services, even if ongoing work is necessary to maintain results.
• Algorithm volatility: Google’s core updates can drastically impact visibility. Agencies relying on gray-hat tactics (like heavy PBN use) have to scramble after updates like Penguin.
• Competing with low-cost providers: Agencies face price pressure from overseas providers and freelancers on platforms like Fiverr. One Reddit agency owner reports that many of their clients receive regular cold pitches from cheaper competitors.

• AI cybersecurity consulting agency: $85K–$250K/year
• AI resume writing agency: $50K–$100K/year
• AI eBook writing business: $40K–$250K/year
• AI app development: $50K–$500K/year
• AI automation agency: $150K–$500K/year
• AI trading business: $80K–$200K/year