It seems a day doesn’t go by without entrepreneurs being reminded of the possibilities of the online business model.
Online gurus push courses on how to make millions online, and it seems that social media is awash with online influencer ‘millionaires’, but what is the true reality?
With increasing competition for eyeballs and clicks, is it still viable for entrepreneurs to chase the ‘make money online’ bandwagon?
In this article, we look at the controversial topic of whether online is dead for small businesses.
Here goes…
Traditional Thinking
For more than twenty years, the internet has always been viewed as a viable way for anyone, no matter how small, to push their idea or to share their voice.
An entrepreneur could launch a shop on Etsy, sell through Amazon, or become a social media influencer on YouTube, amongst many other options.
These routes have become almost traditional and taken for granted; the reality is that many new entrepreneurs do not have a physical store or even their own website.
Many entrepreneurs and content creators do not own or have any say in the very platforms they are reliant on to make an income.
As large corporate platforms become even more powerful, as advertising costs become more expensive, and as algorithms push only the most successful, will it even be possible for small businesses to compete?
The idea of building on someone else’s platform and sitting back waiting for the platform to bring you customers could be over for entrepreneurs moving forward.
The ‘make money online’ model could be dead.
Platform Dependency
The biggest issue for entrepreneurs and content creators is that they do not control access to the customer.
The whole concept of the internet was to create a world in which everyone would have their own virtual storefront (a website).
What we got in reality was a small number of large aggregators with established traffic, providing a less complicated way of accessing online visibility.
These platforms gave businesses access to potential customers or viewers, but limited access to the actual data or email addresses to build a sustainable business.
In effect, small online businesses are renting a space on someone else’s land and attempting to build a sustainable business on it.
The physical space equivalent would be renting a shop to sell your stock on the high street. Your landlord can raise the rent, refuse to renew your lease or even ask you to leave.
You are at the mercy of the landlord, and you must follow the rules and terms of the lease, or there may be repercussions for your business.
While this model has worked well in the past, as online platforms have become increasingly large and powerful, many entrepreneurs are finding the relationship with their digital ‘landlord’ has become increasingly fragile.
The Reality for Entrepreneurs
The harsh reality for entrepreneurs and content creators is that the modern-day ‘digital landlords’ have been increasingly driven by profit, and as such, the rules are constantly changing.
Etsy, for example, as of 2025, had over 93 million buyers and nearly 9 million sellers. Like most of these platforms, Etsy is always updating its fee structure. There are listing fees, payment processing fees, advertising fees and currency conversion fees.
Amazon is no different, with a wide range of fees for selling on the platform.
While platforms like YouTube are ‘free’ at source, content creators upload content and give permission for advertisers to place advertising alongside their content.
Content creators do not get any share of this ad revenue until they hit certain metrics, for example, 1000 subscribers and 4000 watch hours.
There was outrage from new content creators when YouTube announced in August 2026 that the requirements would be doubled to 8000 watch hours needed for ad revenue.
Read the article on YouTube Shock Monetisation Requirements here:
TikTok has also been criticised recently for similar monetisation rule changes.
For entrepreneurs, the established online business model carries significant risk as the major platforms can change the rules, fees and visibility of your business at the blink of an eye.
Independent Websites at Risk Too
While an obvious solution may be for entrepreneurs to build their own independent websites, that model could be at risk too.
The reason for this is the increasing use of AI over traditional search engines.
In practice, what this means is that online users are making use of AI online summaries, and as a result, they never have to click and go to an external independent website.
Search engines like Google are also providing AI answers within search results, so this too creates a serious issue for small websites.
Recent research conducted by Pew subsequently found that when an AI summary appeared, users were less likely to click traditional search result links.
If fewer people are clicking through to websites, is it even possible to build a sustainable online business?
The answer is probably no, not using traditional methods anyway.
This new development could weaken one of the most important customer acquisition channels available to small businesses.
The Solution
While entrepreneurs should not abandon the major platforms entirely, they should be aware that the traditional ‘make money online’ model is more than likely over for most, apart from the largest and most prominent names in the marketplace.
In this new era, diversification will be key. As income for small businesses and creators declines on these major platforms, it will be essential that entrepreneurs maintain multiple streams of online income across numerous platforms.
It’s likely that simply relying on one platform for revenue will become a thing of the past.
Instead, entrepreneurs should use these platforms to drive traffic to independently owned websites where visitors can be converted into sustainable customers.
Entrepreneurs’ main goal should be to build an email list. Without an email list, there is probably no sustainable business model.
Most importantly, in order to survive the AI search problem, entrepreneurs will need to build a recognisable brand name that will surface naturally in AI summaries, and that customers will type directly into search engines and AI platforms.
Creating a brand is no easy task, but in this new era of AI, it will be virtually impossible for anyone to find your business without one.
In this new era, the internet will be less forgiving of those who mistake someone else’s audience for ownership of a business.
Final Thoughts
Entrepreneurs should understand that the days of relying on one major platform for revenue may be over for most, apart from the largest operators in the marketplace.
That does not mean entrepreneurs and content creators should abandon the likes of Etsy, Amazon, YouTube and TikTok, but they should be well aware that these platforms and many like them have full control over their customer base.
Major platforms can change the rules at any time by increasing fees, altering monetisation terms and even removing platform access entirely.
Savvy entrepreneurs should also understand that changes in how people search online, in particular with the rise of AI search and AI summaries, will also more than likely result in a reduction of direct traffic to their independent websites if they have one.
The solution that entrepreneurs should take on board is that in the near future, it will be necessary to build a recognisable brand name that can be surfaced in AI search results and that customers can type directly into search engines.
Small businesses should also aim to build email lists captured from their own independent sites or promotional activities.
In the near future, it will be essential to have direct contact with your customer.
The power of this new approach should not be underestimated. Entrepreneurs who do not confuse a major platform’s potential reach with ownership of a business should do very well indeed.
Good luck!
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