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11 Business Models Compared: Which One Will Survive the AI Revolution?

Aug 5, 2025

I recently met with a businessman who made millions before Covid crippled his business. Months later his daughter contracted a terminal disease.

I recently met with a businessman who made millions before Covid crippled his business. Months later his daughter contracted a terminal disease.

Today he told me, "Seth, if I stay frozen by fear, my life is as good as over. I need to act now."

He's absolutely right.

But before you leap into entrepreneurship, there's something crucial you need to understand: the business landscape has changed drastically in just the last 90 days.

With AI advancing at lightning speed, the last thing you want is to dive into a dying business model.

That's why I'm breaking down the 11 most popular business models today, rating each on four critical criteria that will help you future-proof your venture against disaster.

The Four Future-Proofing Criteria

Before we dive in, here's how I'm evaluating each model:

Startup Capital Required - How much money you need upfront

Time to First Revenue - How long before you see your first dollar Scalability - Can you grow revenue without proportionally increasing costs?

Beginner Friendliness - How accessible is this for newcomers? Quick note on scalability: It simply means serving more customers and generating more sales without needing to proportionately hire more people or raise expenses. Think freelance designer (not scalable) vs. digital course platform (highly scalable).

The 11 Business Models Breakdown

1. Affiliate Marketing

Examples: Amazon Associates, ClickBank partnerships

  • Startup Capital: Low ($100-$1,000)

  • Time to First Revenue: 2-6 months

  • Scalability: High (multiple programs, same funnel)

  • Beginner Friendly: Low (requires extensive marketing knowledge, extremely competitive)

You're essentially marketing someone else's product for a percentage of each sale. While scalable, the learning curve is steep and competition is fierce.

2. Consulting

Examples: McKinsey, Deloitte, independent consultants

  • Startup Capital: Low ($100-$2,000)

  • Time to First Revenue: Fast (immediate with 50% upfront payment)

  • Scalability: Very Low (you're paid for your time)

  • Beginner Friendly: Medium (requires deep expertise)

The biggest drawback? You're trading time for money. I prefer building assets that make money while I sleep—waking up wealthier than when I went to bed.

3. Content Media

Examples: YouTube channels, TikTok, podcasts

  • Startup Capital: Medium ($500-$5,000)

  • Time to First Revenue: Slow (need substantial following first)

  • Scalability: Very High (create once, monetize forever)

  • Beginner Friendly: High (iPhone quality can work)

Don't overspend on fancy equipment—people are building successful channels with just their phones. The beauty is longevity: a video you make today can generate revenue for years.

4. E-commerce/Retail

Examples: Amazon FBA, Shopify stores, Walmart marketplace

  • Startup Capital: High ($5,000-$50,000)

  • Time to First Revenue: Medium (about 3 months)

  • Scalability: Medium (logistics and cashflow become bottlenecks)

  • Beginner Friendly: Medium (varies by industry)

Having spent 10 years in this space, I can tell you cashflow is the killer. You need money upfront for inventory before you can sell, creating a constant cash crunch.

5. Investing

Examples: Berkshire Hathaway, real estate, index funds

  • Startup Capital: High ($25,000-$1,000,000+)

  • Time to First Revenue: Medium (weeks to months)

  • Scalability: Medium (high if passive, low if active trading)

  • Beginner Friendly: Medium (requires market knowledge)

Sure, you can invest $10 on Robinhood, but you won't make meaningful returns. You need substantial capital for significant income.

6. Marketplace Services

Examples: Uber driver, Airbnb host

  • Startup Capital: Minimal if you have assets, high if purchasing ($2,000-$20,000)

  • Time to First Revenue: Very Fast (immediate for rideshare)

  • Scalability: Low (paid for your time, unless you hire others)

  • Beginner Friendly: Medium (easy for driving, complex for property management)

The rideshare model is particularly limiting since you're directly trading time for money.

7. Software as a Service (SaaS)

Examples: Notion, Calendly, ConvertKit

  • Startup Capital: High ($10,000-$100,000)

  • Time to First Revenue: Slow (months of development and testing)

  • Scalability: Extremely High (serve unlimited users with same product)

  • Beginner Friendly: Low (complex technical requirements)

The scalability is incredible—millions can use the same software without reproduction costs. But unless you're experienced or partnering with someone who is, avoid this model.

8. Services

Examples: Upwork, TaskRabbit, construction, plumbing

  • Startup Capital: Medium ($1,000-$20,000 depending on specialization)

  • Time to First Revenue: Fast (typically 50% upfront)

  • Scalability: Low (requires large teams to scale significantly)

  • Beginner Friendly: Medium (varies by skill requirements)

Limited scalability is the main issue. Most service businesses need substantial staff and operations to handle volume.

9. Subscription Services

Examples: Netflix, Spotify, Dollar Shave Club

  • Startup Capital: High ($10,000-$20,000, substantial product or software investment)

  • Time to First Revenue: Very Slow (months of development)

  • Scalability: High (especially software-based subscriptions)

  • Beginner Friendly: Medium-High

Similar benefits to SaaS—one product serves many customers repeatedly.

10. Trading

Examples: Day trading on Robinhood, TD Ameritrade, E-Trade

  • Startup Capital: High ($10,000-$50,000, need substantial funds for meaningful returns)

  • Time to First Revenue: Fast (can profit in days)

  • Scalability: Medium (requires hiring others to truly scale)

  • Beginner Friendly: Low (high risk, requires extensive knowledge)

The risk is enormous. You can lose everything within hours during market volatility.

11. Digital Course Business

Examples: Skool communities, online education platforms

  • Startup Capital: Very Low ($100-$300)

  • Time to First Revenue: Fast (1-2 months)

  • Scalability: Extremely High (build once, sell thousands of times)

  • Beginner Friendly: High (general knowledge vs. custom consultation)

This is my favorite model. You only need 1,000 buyers at $1,000 each to make your first million. Build it once, sell it indefinitely.

Why Digital Courses Win in the AI Era

Many claim AI will kill the digital course business, but here's the truth: AI impacts every business model equally. AI handles customer support, lead generation, graphics, and scheduling across all industries.

Others say online education will die out. But ask yourself: How long has education existed? When will people stop wanting to learn?

Learning is innate to human nature. The vehicles change—from apprenticeships to books to classrooms to online videos—but the desire to learn remains constant.

Right now, Skool (skool.com) is the premier platform for online education, with over 5,000 new communities added in recent weeks. Regular people are going from $0 to $10,000 to $100,000+ monthly, teaching everything from knitting to real estate investing.

Real examples from Skool:

  • 14,000 members paying $130/month

  • 1,500 members paying $49/month

  • Woodworking business course: ~$36,000/month

You can go there right now and see it for yourself.

The Hidden Weakness of Digital Courses

Despite being the most beginner-friendly model, digital courses are deceivingly so. After coaching over 10,000 online entrepreneurs, I've seen the same three problems plague everyone who tries going solo:

1. Lost Momentum

Without experience, you'll spend time guessing. Guessing kills momentum and drains you mentally and emotionally. Would you rather climb a dangerous mountain alone or with an experienced guide?

2. Gambling Your Money

Paying for experience is an investment. Spending money trying to figure things out alone is gambling. Men especially struggle with this—we want to be independent, but stubbornness costs more in the long run.

3. Wasted Time

Time is the one asset you never get refunded. Mistakes are time sucks, and without mentorship, you'll make far more of them. When I launched my first Amazon course, I spent hundreds of hours failing until I got help. Then I broke the $100,000/month barrier in just 90 days.

The Bottom Line

No business is easy—if someone tells you otherwise, they're lying or clueless. After 47 years of life, I've learned nothing valuable comes easy: great marriages, fitness, raising responsible kids, or building wealth.

The question isn't whether it's easy, but what kind of life you want. Easy now means less money, less freedom, and building someone else's dream. Or you can do the hard things now to enjoy easy later.

The choice is yours.

Want to build a digital course business with guidance from someone who's done it successfully for 10 years? Join our free Craftsman community—a group of men of faith, on fire to succeed. We'll help you avoid the costly mistakes and fast-track your success.