Ranking Every Online Business Model

Daniel Fazio ranks 20+ online business models from S to D tier based on scalability and real value. He runs a $1.58M monthly operation and breaks down what actually works: dropshipping and day trading land in D tier, while specialized-skill services and cold email agencies rank much higher. Each model gets honest pros and cons.
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About $1.58 million (he phrases it “I think like $1.58 million”).
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Today we are going to make a tier list of every single business opportunity that you've probably ever been advertised to. Now, like always, I'm not going to imply here that you're going to make money with any of these. In fact, most people never make money at all. So this is no guarantee of me telling you if you do one of these, you're going to make money. I'm not saying that. Now who am I? Before we get into this, why should you listen to me? My name is Daniel Fazio. I run a coaching business and a software company called ListKit. Last month we made I think like $1.58 million, something like that. A substantial amount of that is profit. So we run a pretty profitable business. I've been doing this, I've been in the make money online space for probably like.
Seven years at this point. Eight years at this point. I've worked with literally thousands of people, customers of all across all my different kinds of offers. I've sold all sorts of stuff. And now what you can see over here is a whole set of different make money online opportunities that are most common in this space. And now I know what you're thinking. Well, Daniel, you sell a coaching program on how people can start AI assisted agencies. So clearly what you're about to say is biased. Now I'm gonna try to remove as much bias as possible, but you should also know that the reason I sell that particular opportunity is because I just genuinely actually believe with raw data that it is the best opportunity. But we're going to walk through every single one of these and I'm going to walk through my raw thoughts of all of them. So we're going to start with Amazon reselling over here. So what is Amazon reselling? This is when you go to like a store, they have these little apps where like you can scan stuff and you go, you scan stuff and you see if there exists an arbitrage of how much it's selling for on Amazon. So what you do is then you buy it from the store and you do places like Marshalls and just like random. What? I'm not an expert at it. But then you buy it from the store, you list it on Amazon and then you ship it to the customer and you just get the arbitrage on it. I think this is a genuinely good business model for people who want to make a little bit of money. The only downsides are that it just takes a lot of time and it's extremely difficult to scale. But you can make like a. I see people Making a couple thousand a month off this. It's not going to scale, but like it's, it's a legitimate model. So what I'm going to do is I want to put it in B. I think it's a B tier opportunity. So real estate wholesaling, what is that? This is when you go and you find, you find properties and then what you do is you get a property under contract and then what you could do is you can assign a contract to purchase a property to somebody else and you can take an arbitrage between what you have the contract for and, and then you have a, you charge an assignment fee to someone. So it's like they get the contract, you sell them the contract. You know, I'm saying.
And you'll get cash on this right now this is a legitimate model. Like this does work. However, it just requires a ton, a ton of work to get started. But it is, it is in fact like a pretty legitimate model if you, if you, if you spent a lot of time doing it and you can scale this and make a fairly substantial amount of money doing it. I've seen people do that. I've never done it before, but I am going to throw this in a tier just because of the scalability of it. I want to come back to this one over here. I want to put it over here. Okay, so grow. I'll start with this. Day trading. Okay. Day trading. This is probably the most commonly taught business opportunity, make money online type of thing in the entire world, right? Why, why, why is this the most common thing? Because most people on the planet want to make money and do fuck all nothing with, with their life. Right? That, that's the epitome of what day trading promises. Now what you should know is that there's there's easily probably a 99.9999% failure rate of this. Like it is, it is wildly and substantially more probable that you lose money day trading than you do make money. Like you're not going to make money with day trading. And you, you have to understand that all of the people who say they're rich from day trading make all of their money from selling the course of the coaching on it. They just do. That's not to say that they haven't made money day trading. They may have made multiple millions of dollars doing it, right? But they're just the.0001% of people who got lucky doing it. Like the idea that you're somehow going to outperform like billion dollar hedge funds that Spend hundreds of millions of dollars on advanced tech and like building wires to get information milliseconds faster than other. Bit like the idea that you little fucking Jimmy and his basement is going to beat these people is just, just completely stupid, right? It's this, this is a D tier. You should just never ever do this in your life. It is just legitimate actual like don't day trade. It's not a business isn't. It's just garbage. It's nonsense. Okay, now on, on the counterpoint of that selling a day trading course is if you have zero moral compass and understand that legitimately no one, pretty much no human you sell it to is going to get results just, just, just by pure mathematics, right? Just like an extremely elevated level of failure. If you had zero moral compass, selling a day trading course would be S tier, right? Okay. But because of that, because that all no one is going to get results, right? Some people are going to make a lot of money. Some. But it's lottery. It's effectively lottery, right? I'm going to throw this over in C tier because it is a legitimate mod like it is. Like if someone said to me, Daniel, would you like to invest in my day trading course and I'll give you equity and like a profit share with. I'd probably be like yeah. I probably say yeah, like it's a cash flow, it's a legitimate thing. Like it makes sense as a business that that is real. Right? Okay, so now let's go to, let's, let's go to growth operating. Okay, what is growth operating? Growth operating is when you, you basically are building marketing systems and advertising for people who sell information products specifically. And information products are people who sell courses or sell like high ticket coaching programs. Right? That's normally when people say growth operating, it's referring to selling it to those specific people. Okay, yes, advertising and building marketing systems for companies is S tier. Yes, it is. But doing it for info product people specifically is wildly difficult. And I want to show the reasoning why is for a couple of things. So the tam, the total addressable market of people who run legitimate information product businesses is extremely small. It's like maybe like a thousand or a couple thousand on the planet. Why is this a problem? Because if there's hundreds or thousands of people who are growth operators, there's, there's not enough clients to go around. You know, there's, there do not exist enough supply in order for people to actually scale this. Okay, now secondarily.
Fundamentally if somebody is running an information product business that there's three sections to a company. Right. You have marketing, sales, legion. Right. Traffic and then closing and then sales. Right. Marketing in Legion, then sales, then operations. Right. If somebody is running an information product business, it fundamentally means that that person as an individual, their skill set is over indexed on marketing and sales. On marketing or sales. Right. And not on operations. Why? Because the fulfillment of most information product businesses is non existent. Most of them. Right. So when you are selling marketing or sales as a service like marketing systems to somebody who themselves is over indexed on being knowledgeable and a sophisticated marketer, it doesn't like compute. Like if you like get these people on like a rev share or something like that, like when you start progressively charging them more and more and more money as you get more and more results from them, they get angry because what happens is they're getting like a ton, a ton of clients that need to do a ton of fulfillment and they're doing less and less of the marketing, but they like the marketing. Like that's what they're over indexed on. So they become super resentful and shit. And it's just, it's just universally like if you're running an agency and you're selling to people who sell information products, the churn of those people is like substantially elevated, like way more than normal. If you were selling to like a, a normal business, you know I'm saying. So because of that I'm gonna put it in B tier. Right. It's just, just the circumstances of that. Like if, if that was not the case, it would be S tier. Okay. Now. Okay, copywriting. What is, what is copywriting? Like? What, what does it, what does that fundamentally mean? The activity of copywriting means that you're writing stuff. It's sales in print. It's like sales to many. Right, Right. So that's like you're, you're writing sales pages, you're writing emails, you're, you're, you're writing ads. This could be inclusive in some of the other ones I have listed here. But the, only, the only.
To be good at copywriting is, is it, it is pretty difficult, but you can make a legitimately astronomical amount of money. You just need to be picking the right clients. And because of this, I want to put this in S tier. Copywriting is like single handedly one of the most important skills that you could learn ever. It's, it's, it's so useful of a skill to possess. Okay, cool. So selling a course, okay. If you have any kind of specialized knowledge like I, this, this needs to kind of be dispelled. Like a lot of people would say, like, oh, all course sellers are a scam. It's like this is operating under the premise as if like you're going up to people and like putting a gun to their head and being like, buy this course. And it's like this is, this is not true. Like why there's three times, there's three types of offers you can sell. There's done for you, there's done with you and there's do it yourself done with you and do it yourself fundamentally apply to information products. That's two thirds of any kind of service you could sell at all in existence. Right? Okay, that's most stuff, most services on the planet. You get upset. There is demand for these things. Like you're not putting a gun to the head to, to. Someone said to me, buy my course. People buy courses because they want to buy courses. People buy coaching because they want to be coached. You know, like there just exists a market of people who purchase that. Like that's. Why do you sell a course? Because people fucking buy it. Like that's, that's literally why. So don't be a dickhead. Like just stop being dumb with that. Like people sell it because people buy it, right? So selling a course, you can have a legitimate course business. You can have a legitimate information business, right? Where you're not selling nonsense and you actually have delivery and you care about getting people results, right? That exists, right? Selling a course, therefore is S tier. This is like one of the best possible businesses you can run. It's so great, right? Okay, remote closing. This is when you find somebody who sells a high ticket product or service. And it doesn't have to be someone selling an information product. It could be a software company that sells an enterprise.
Enterprise service. So I have a software company list kit and we sell high ticket packages to, to, to large companies who have sales teams, right? And we have a team of remote closers. There's like nine of them over there, okay. They can make like eight to $15,000 a month. Like that's what we pay these people based off the, the stuff they're closing. This is a legitimate model. Like this, this is a thing, this works, this is real. However, it's not a business. So therefore it can't scale. Right? But it is like I'm just ranking this based on like how I think about it. So like if you just only want to make that much and you won't have a job and you don't want to run A business. I would put it in S tier, but I'm not like that. I'm trying to get profoundly rich. So I'm going to put it in B tier because you can't scale it. Right? Okay. Affiliate marketing. There are legitimate products that you could affiliate. I feel like there's like two types of affiliate. There's like affiliate marketing where you're selling courses, and there's also a kind of affiliate marketing where it's like. It's like cpa cost per acquisition. You can, like, get a lead for like a health insurance company and you sell a health insurance company the lead. So like, fundamentally, like, what you would be doing is like, like, you run. You use your own money for your own ad spend, and you're able to generate leads for this health insurance offer for $50, and you sell the leads for 100, $110 over to this health insurance company and you take an arbitrage on these. That's a legitimate model. I'm not like you. You have to find good offers for those. There's a lot of bullshit in. In that world. So you have to, like, sift through that. But that is, in fact, a legitimate model. It's just that you don't own the offer. Right? So that's, that's the, that's the only downside to it. So therefore I'm going to put this in A tier. Okay? So TikTok. TikTok shop affiliate marketing. Okay. This is when you get products for people. Like, you can go to like an E comm brand and then you make products for them. And then you post videos on TikTok and you get an affiliate commission when people buy it from your video through the TikTok shop. Right? This is a legitimate model. This does work. This does, in fact, work. I know some people who sell this. I think Jimmy Farley is one of the people.
I'm kind of friends with him. He's a cool guy. He is a legitimate thing. But you can, you can learn to do this. This is a legitimate model. People, People make money with this. And therefore I'm gonna throw this in a tier. I kind of want it. I would kind of put it on, like, the same as remote closing. Just be. Just. Because again, like, I'm trying to get, like, super rich. Like. But if you just want a job.
It's on the same tier as remote closing. You get. I'm saying. Okay, cool. So drop shipping, okay, yes, people make money with drop shipping. That's. That is a thing. People do, in fact, make money with this.
You just need to understand that a lot of it is just complete nonsense. You can like source stuff. I feel like drop shipping is kind of like, it's like a stepping stone into running an actual legitimate E commerce brand. And it's, it's good for people who don't have a ton of capital invest. I don't want to put this in C tier.
But I kind of have to. I. Because it's, it's just.
It'S just so, it's so filled with complete garbage nonsense. Like you're just, you're, you're just selling just complete nonsense to people from, from Al. From AliExpress and you know what I'm saying? That's not to say there aren't like good products you can drop ship though. But like, okay, there's, there's like drop shipping where you just sell garbage Chinese products and then there's drop shipping where it's like, it's kind of like sourced from a legitimate manufacturer and you have a legitimate product that actually is of high quality. Right. But drop shipping, the model literally is just that you purchase it from the manufacturer when the sale occurs. It's just a description of the business model. Right. It's just that it's so tainted with complete nonsense garbage Chinese products. So therefore I have to put it like between C and D, it just has to go between them. Okay, so Airbnb. Now there's a couple ways you can go about Airbnb.
There's Airbnb arbitrage where you go and you rent. Like you sign a lease with somebody who owns the house and then you're telling them like, hey, I'm going to operate this as a short term rental. And like that might involve some other negotiation where they get a percentage of the short term rental stuff or they might charge you more on the long term lease agreement that they give you. A lot of people just will absolutely not be down to do this at all. Some will. That's one way of doing it. And then what you're doing is trying to get an arbitrage of that. I don't think that's smart to do at all. If it was just that I would put it in C tier, probably what I would put in B. Maybe a tier is if you're buying the house. So therefore you would need capital to be. You would buy the house. And now this is, this, this is good because you understand that it's is.
You can depreciate the asset because this is, this would be considered this, this is going into like tax law, this would be considered active income, right? And you can depreciate the house. So depreciation is where you take a loss on the income statement of this business and it's probably exceeding the amount of revenue. And you therefore lose money every year on the Airbnb, but you're not actually taking a cash loss. And this can not only result in you paying no taxes on the income of this, it might lower your taxes for other active income you have, right? And because of the existence of that, because of the tax, because of the tax advantage of it, then it would be considered a tier, right? But there's like the, the arbitrage method would be C tier. So I'm gonna, I'm gonna go ahead and I'm gonna put this in B tier because, because of that, right?
Just because the tax law. So you got to understand like tax on and like that, right, but because that's considered active income, right? But if you just bought like a long term, I actually should put this like long term real estate rental, like single family rental. That would be, that's C tier, right? And the reason why is because on, you can't depreciate.
Real estate against your active income if the real estate is considered passive and you as a human are not considered 50% more of your time involved in real estate. You know what I'm saying? This is why you'll see shit like you'll have like a DECA millionaire or, or a billionaire or some bullshit like that who like, is not involved in real estate. And then they marry their wife and they make their wife become a real estate agent because now their wife is a real estate agent, actively practices real estate. Now the unit, the household is considered full time real estate. So passive investments in real estate, the depreciation of those can offset the active income from other shit. Like they own a software company. So like for instance, me, like I would prefer that my future wife becomes a real estate agent and actively practice as real estate. Because if I have real estate investments, we could take the depreciation of the passive real estate and offset it against my active income, which would result in us paying a tremendous amount less in taxes. You get what I'm saying? So this is like a little like that. Okay, cool. So faceless YouTube channels. This is where you, you, you, you, you script out YouTube videos and like you gotta, you gotta have some like video editing on. A lot of people are trying to do this with AI, but there's just like YouTube actively doesn't want this to Be a thing, right? People have like 10 channels or some shit or they get banned and shit all the time. And like having a legitimate YouTube channel would be like a tier, right? But this, this, this is not this, this is. This, this is probably going in C tier. Okay. Cold email agency. What is a cold email agency? This is when you take a client who runs a B2B offer and you send cold emails for them to generate them leads and you're effectively, what you're doing is sending selling leads to them, right? You might charge a retainer, it might be like a monthly tech fee plus a performance basis on calls book. That's how most people do it. And most people are able to scale that business.
This is like consistently one of the most common ways I see people make like five figures a month from like going from zero to like this. This is very, very common. A ton of people run this business and consistently find success with it because it's just an in demand service. Like B2B companies just always need leads, they always need calls book. Like this, this is a legitimate thing, therefore this goes in S tier is a great business model. Content agency. This is where you script out content for people. And so it doesn't have to be. It's very commonly for people who run an info business. But it's normally like you're making YouTube content for them. But because of that it's over, it's over indexed on people who run info product businesses. So it's kind of an issue where it follows the same issue as growth operating. Right. Because it's over indexed and people sell info. So therefore if, if, if it wasn't over indexed on that I would put it in S tier. But because it is, I'm putting it in a tier maybe like half, half S tier. It's a, it's a really good business if you can find, if you can get clients for it.
But yeah, okay. Ads and funnels agency. If you see anyone run any person who's like really, really rich running a marketing agency, like making a tremendous amount of money like any, any marketing agency that makes.
Like 95 of them, make above like 200k a month, 300k a month, 400k a month. They're all advertising agencies, all of them. It is the, the. But it's kind of difficult to start. Like you need the skill of advertising now obviously you can use AI for a lot of this stuff but like you, you need to actually be good at like the production of funnels and like no like know what you're you're doing, you know what I'm saying? But consistently you'll find all of the people who run agencies and make a tremendous amount of money with their agency. They're all advertising of funnels agencies, 100% of them. Cold email agencies tend to cap out at like the largest cold email agency I think in the world is my friend Nick Abraham who coaches inside of my program assisted agency and client ascension. And I'm really good friends with Nick.
He's probably the largest one in the world and I think he's like, like 300k a month or some bullshit like that. That's normally where those businesses cap out. Like cold email agencies, good ads and funnels agencies like any kind of massive agency you see on the planet. Is that right? So that, that's, that's going in S tier. It's the best. Okay. E commerce email marketing agency.
So.
This is a great business when you have the clients for it because it's like super easy to get the client's results. If you have an E commerce brand and they have an email list and you send more emails to the list, they make a shit ton more money just, just like that. Like oh, you could have all zero skills and you could like literally you can up so much of it and they'll still make a bunch of money. The problem with this business model is that it's hyper competitive. It's so competitive. Why? Because there's no barrier to entry. It is so easy to figure out how to make emails and design email. You can use AI tools to design emails and like write the emails. You could use AI to do like all of this. Right? So, but because of that there's so many people who do it. Just, just an absolutely tremendous amount of people who do this business model. Therefore.
It is super, it is super difficult to get clients for. So therefore unfortunately we can't put this in S tier and I think it belongs in A tier. It's just so wildly competitive. Right, okay, so all right, let's go to this one. Selling AI tools. This is where like you'll see this, you pro, A lot of you guys are probably getting like all sorts of stuff like this advertised to you right now on like meta and maybe YouTube as well where you sell AI tools to business. Or take this AI voice agent and sell it to a business and rent it to a business or something like that.
Complete fucking bullshit. That's not going to, it's not going to work. That, that, that doesn't work. You have to understand that this is the Same caliber as like trying to scale like a go high level white label business. What you need to understand about that is no fucking human on the planet makes a lot of money white just white labeling go high level. Every human on the planet who makes a lot of money white labeling go high level is selling a business opportunity course that teaches other people how to, how to white label go high level. And then they signed up under them and then the amount of people that they managed to squeak out, like they get another layer of affiliate commission. It's a fucking pyramid scheme, right? So this, this, this selling AI tools is the same caliber of that. And the reasoning why is because you have to, you have to like fundamentally understand what's happening here is you are, you think that if you just go to a business, you're like this AI voice agent will like take your calls for you. You think that that will just magically get a client result. But what you are failing to understand is that they're just, there are no clients who just get fucking tons of calls and can just like get appointments booked through an AI that's completely retarded. Like, that's just not a thing. What you're not understanding is that the problem these companies have is that they don't get calls in the first place. You know I'm saying, so there's no fucking calls to answer with, with the AI. If there were, if any company that is managing to get the calls in the first place already is converting these calls and they're already a successful business. There are no businesses that just get tons of calls and like have the, have the capacity to be able to service these clients. That, that isn't real. So what happens is you, you, you, you sell these AI tools to these companies and they don't get results. They just, they just don't get a quantifiable result, right? So then they get angry and like it's, it's funny because you're thinking that like, well then they'll just like churn and that's fine and whatever, but it's not, it's not. These people who buy this kind of will like throw a tremendous like giant hissy fit like this, this, this is what happens with these like low level of clients here. They're, they're just completely, you know what I'm saying? You, in order to, to have.
You need to sell, you need to get a client new money. Get what I'm saying? This is like trying to scalp money based off of something they already have. But you're failing to understand that like they don't have anything, you know what I'm saying? This, this is not, you need to also sell them the generation of those leads in the first place. Not like the conversion of those leads. It's just, just random AI tool. Like no one's paying you 2k a month, 3k a month to white label your AI tool. It's not, it's not happen, I promise you it's not. Right? Okay, so there, therefore this goes in D tier garbage. Business model doesn't work. All right, cool. So AI Automation Agency, what is this? This is like.
This is a legitimate business. People do pay for this, but it's not a business for beginners or for people who are like.
I don't know, I'll just put this as like, you're not technical, you're not a technical person and you're not an intelligent person. Like I don't want to be like a dickhead, but some of you guys got to understand that a lot of you like are, you just are. And some of you just need to recognize that you're retarded and that's fine because you could sell other stuff, right? But this is not a business model for somebody who doesn't have like a 130 + IQ or like 120 + IQ. You need to be a very intelligent person to make an AI automation agency run. And the reason why is because there's a lot of deep technical understanding that you need to have. This is not like, oh, I'll put this over here and connect this and this automates this thing for the business and I make $10,000. Like that's, that's not real. That does, that does not occur. This requires like a very fine tuned in depth understanding of operational efficiency and systems and how a business works and like communicating with the client to understand how this process goes over here. And what this often turns into is that you're not just like creating automations for a client's process. It's that they don't have fucking processes at all in the first place. And you make this shit for them from scratch because the way they currently do things, there just is no way they do. It's like a whole jumble fuckery of just like nonsense. And this is like a counterpoint that you need to understand in regards to like every single one of these is like if you're a beginner, you're kind of operating under the premise that like a client, like someone like client runs a business, like everything is like okay and they make a lot of money. Like you need to understand that most companies and most people running a business are, and they have no systems and they make no money. This is most people on the put. Most businesses make no money and they're all dumb. It's all the people running the company are fucking. That's why it makes no money. You know what I'm saying? So like you understand like what you're doing here is like you're not an AI automation. Like you are like an operational consultant. And if you can't, if you don't have a deep understanding of how to execute stuff like this and your IQ is not above 120, like just be honest with yourself. If your, I go take an online IQ test. If your IQ is below 120, don't run this business. Right? But if it is, then it's, it's, it's a tier. If your IQ is above 120, this is an A tier business model. If it's below 120, it's a D. But I'm gonna assume you're an intelligent person watching this video. So I'm gonna put it in A tier. Okay, cool. Specialized skill servicing. What is this?
This is like say you're an accountant, like you, like you work in an accounting company, you just do like bookkeeping and shit for clients. This is when you say, fuck my employer, I'm gonna go make my own accounting business, right? Or you have some other, like you work in an agency and you, and you do email marketing for your clients. You're like, fuck my employer, I want to go make my own email marketing business. That is S tier. Every one of you should be doing that. This is, this is the most, this is single handedly the most legitimate possible way that you can make money. If you already have a skill, like you're working a job and you do a skill at the job, just go selling that as a service because you already know how to do it. That is, that is, that is S tier. All right, Hope you guys enjoyed this. I'm going to leave a link in the description. If you want to start an AI assisted agency, what is that? What is an AI assisted agency? That's when you do stuff like ads, funnels, agency, E commerce, email marketing agency, AI automation agency, copywriting, you do that stuff. But we just teach you how to fulfill for the clients using AI, right? So like we teach you how to get clients, how to close the clients and then how to fulfill the client work using AI. Like 90% of the actual film works done with AI. I'll leave a link to that first link description. I'll also leave a link to YouTube playlist for you to watch about talking about that opportunity. If you like this video, leave a comment. Like it, Whatever. All right, peace. Love you. Bye.










