Why Most Online Business Ideas Fail (But This One Works) Episode 163

 👉 Ready to start your own online store? Start here: https://dropshipunlocked.com/start?utm_source=podcast&utm_medium=podcast&utm_campaign=ep163-why-most-online-business-ideas-fail-but-this-one-works

🗣 In this episode, Lewis Smith and James Eardley break down why most online business ideas never get off the ground — and why their UK-based high-ticket e-commerce model continues to work in 2025 and beyond.

They unpack the real reasons people stall out (half-hearted effort, chasing trends, “YouTube University”, and relying on AI alone) and show how treating your business like a serious asset changes everything.

🎥 Prefer to watch instead? Watch on YouTube: https://youtu.be/BFwrD-40qMM

🧭 Topics Discussed
★ Shiny-Object Syndrome & Unrealistic Expectations — How TikTok/Instagram “side hustle” culture sells overnight success, and why real businesses require front-loaded effort and a long-term vision.
★ The Limits of YouTube & AI as Your Only Mentors — Why free videos and generic AI advice can’t give you context, accountability, or clear direction when you hit real-world roadblocks.
★ The Power of Proven Systems & Community — How a step-by-step roadmap, live Q&A support and a room full of people doing the same thing removes 90% of the guesswork.
★ Why the Home Turf Advantage Model Works — Building a brand-first UK store with domestic suppliers, strong margins, and a long-term asset you can grow, automate and eventually sell.

🛠 Links & Resources Mentioned
 📘 Lewis’s Book → https://dropshipunlocked.com/book
🛒 Shopify £1-for-3-months Offer → https://dropshipunlocked.com/shopify
📞 Free Trial of a Professional Phone Line → https://dropshipunlocked.com/circle

💡 Key Takeaways
 ★ Treat It Like a Business, Not a Hobby — If you only “dabble”, you’ll protect your ego but sacrifice your results.
★ Failure ≠ You’re Broken — Often it’s the model (low margins, bad suppliers, flawed strategy) that’s stacked against you — not your work ethic or potential.
★ Front-Loaded Effort, Long-Term Leverage — Build the systems, then let VAs, automation and a dialled-in niche turn your store into a cash-flowing asset that gives you time freedom.

📲 Follow Us
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X / Twitter → https://twitter.com/DropshipUnlockd
LinkedIn → https://uk.linkedin.com/company/dropship-unlocked
YouTube → https://www.youtube.com/c/dropshipunlockedlewissmith
Website → https://www.dropshipunlocked.com

🚀 Free Training
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Transcript

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In reality, most online business ideas fail. So if you really want to succeed. You'Ve got there's a huge opportunity for you today if you steer clear of the masses and instead just. And that is why our model stands out for people who actually want serious online income. And I wish I had known that sooner. You don't need a thousand products or viral reels. What you actually need is foreign. Welcome to the Dropship Unlocked podcast. I'm Lewis Smith, the founder of Dropship Unlocked and with me is our client success coach, James Eardley. Now, when we're not recording podcast episodes or running our own e commerce businesses, you'll find us helping aspiring entrepreneurs launch their own high ticket dropshipping stores. So if you're ready to build your own six or even seven figure online business, then head over to dropship unlocked.com start now, sit back, relax and let's unlock your potential. With the Dropship Unlocked podcast. Today we need to cover a big topic and that is why most online business ideas will fail. But more importantly why our brand of UK e commerce that we teach actually works and is working today and is going to continue to work into the future. So we're seeing more people than ever trying to escape the 9 to 5 grind, put their capital to work. But Louis, a lot of these ideas will just crash and burn unfortunately. And I think there's a big reason behind this or a few reasons behind it. So why do you think that so many fail before they even begin? I think it comes down to how you treat it going into to business. If you treat the business like a hobby and not like a business, and so you see it as this like side venture, it's something that you kind of do evenings and weekends, but you don't take it that seriously, then there's very little structure around it, there's no real long term plan with it, therefore there's no urgency and therefore you often see people don't take the actions required to make the business into what it needs to become eventually, which is a self sufficient system that pays you a full time income and becomes a real defensible business. So I think that's the first thing. It's like the expectation and what, what people go into it with, you know, what's the long term vision for, are you treating it like a real business? Because don't expect it to pay you like one if you're just treating it like a hobby. And then the other part of that that I often see is people will chase trends like they'll see something come up on Instagram or TikTok, like this new type of side hustle, whether it's some crypto scheme or some AI thing or some loopholes, I'm like print on demand business model that's like make money overnight and they get distracted by it. It's like that shiny object syndrome. They see something over there and their head turns and they think, oh wow, I'm going to go and do that instead. And so you end up with all these kind of half built ventures, you know, all of these half completed projects instead of just pouring your focus into a brand and trying to build credibility around that brand, really getting to know that industry and that brand until it gets to that point of like compounding returns. And so the difficulty with that is that if you are almost like subjected to that constant onslaught of different YouTube ideas, different Instagram feed ideas, stuff coming at you from TikTok left, right and centre, you become unfocused. And so I think one of the keys to making this work and making sure that you are almost held accountable to sticking with a single business model is investing in a system that is proven like a step by step, like do this, then do this, then do this, a process and also the mentorship around that, the community, the group coaching. That means that you're not guessing. You know, when you hit something, it's not like you turn into chat GPT and say how do I fix this? What do I do here? What have other people done? And then hoping that AI is going to give you an accurate answer to like your, your problems when it has no context or none of the nuance and it says no experience as to like whether it succeeded or not with running a business like this. And then it means you're just really scrambling for information at every turn. And if you want proof of this, if you've ever asked AI an LLM like chat GPT something and then it gives you an answer that you disagree with and you go back and say no, actually that's not true. Watch what it responds with. It will always agree with you and it will say like I'll paraphrase, but it'll basically say, oh no, you're sorry, you're totally right, I was wrong in my last answer. In fact, the answer is this. And then if you do the same again and say no, actually you're wrong, it will come back and say, oh, you're totally right again, I've messed up is this. And it's like, well, how can you trust a virtual mentor like that if it is going to be kind of changing direction. So I think that's why it's so important to have a proven group of humans that can stop you from having to guess at every turn and feel like you're winging it and actually say, I need a like, solid, honest answer at this point because I'm not sure which direction to take. And they can just say, we've seen so many people do it this way, this is the way to do it next. And that just keeps you on the path. And I think people are going to always stay congruent with their beliefs and they'll teach you exactly what's worked for them. Whereas an AI, as you say, it's teaching based on its best guess to trying to please you with the questions that you're asking it. So you can't trust an AI as a trainer or a mentor to get you through something. But it all taps into that, that mindset that people go into it with. And I agree. I've seen it in examples of friends around me where they've tried a business idea online, but they've always approached it half heartedly and I think it's mainly a defence mechanism because if they go all in and it fails, it would hurt them a lot more. So they go in half heartedly trying it, seeing if it'll work, saying, oh, I wonder if this drop shipping thing works or any other business model that they have seen flash up online that day or that month and if it doesn't work, then they, they can always fall back and say, well, I never really gave it a go, it doesn't work, it wasn't me. But you're really just shooting yourself in the foot by trying to defend yourself. You never go fully into it and then you're never going to succeed unless you go for it and be more vulnerable and take down the barriers and really push for something to work. And from my own story, I dabbled, watched YouTube, created a few burner online dropshipping stores, completely failed at the mall until I invested in mentorship. As you say, Louis just follows exactly as you say. When I invested in something that I could learn from people that had already achieved what I wanted to achieve, I then took it that much more seriously and achieved and I've done over £1.5 million of my E commerce business. It's just because I took it very seriously and I went for it. So we've explained the mindset that you need to, to go into it with and we've also done episodes where we explained how to make sure you don't fail. And a good One is episode 141, where we dive into a bit more depth as to how you set up this type of business model. So a great companion after listening to this one. But let's talk about those expectations that you mentioned there, Louis, that there's these flashy trends, whether it's Instagram tech, TikTok, and they set these expectations for people. And so then I think some people come into starting a business with unrealistic expectations. So do you agree? And if so, where do you think these expectations come from and how do we reset them? Well, it's easy views, isn't it? It's easy clicks. If people can say, like, I've just discovered this amazing side hustle and you're not going to believe it is so simple. Watch this. Like, how many times have you heard that hook at the beginning of a reel and then before you know it, you're kind of halfway down rabbit hole of like, I've got to do what? And list like, AI generated stuff and then put these on another platform and try and sell it. And like it's, you know, it kind of all falls apart when you actually start to try and execute. But by that point the person's gone. They got their view, they got their click and it was like what the algorithm wanted to show you. So I think it's, yeah, it's constantly seeing that we're being sold this, this false dream of like the laptop lifestyle overnight, but you never really showed the actual, like, brutal truth of setting it up, hitting those brick walls, failing along the way. And that's the reality of business. Like, it's not a linear path where everything just goes smoothly from start to finish. You will hit problems along the way. And I think sometimes people underestimate the learning curve and how steep that curve can be in terms of like, you know, putting it into the context of starting an E commerce business is selling physical products online using the model that we teach. It's like, well, the niche research process or getting approved with suppliers. When you're trying to sign new suppliers based in, in the same country as well your customers are going to be based or running your ads. Like, each part of this is a real business and it's really important that you have someone that can show you the full, like, click by click, step by step, what to say process and also the things to do when it goes wrong inevitably and when it doesn't work and where to pivot and to turn rather than just the kind of sound Bite snapshot that you might get on a social media reel and then it's gone the next minute. You know, that's like that fleeting surface level advice that's just not particularly helpful. So I think it's really important to just realise with a business like this, it's front loaded effort, you have got to put in the time. We're not going to shy away from that, we're going to tell you it straight as it is because we've both done it ourselves and are continuing to do it. And it is difficult at times. It's a lot easier though when you have a community around you of other people who can answer the questions that you will run into inevitably as you go. But the nice thing about it is that it's then leveraged. So it's not like you're doing this same level of hard graft forever. Yes, you got to put a bit of time in at the beginning. Yes, it will probably be a few mornings or evenings of work before you are, you know, before your day job or after you get back and you might be balancing it with other things, but once it hits the point where it's generating you a replacement for your income and you think, well, I can now go full time on this, I could hire a virtual assistant to come in and do all of the stuff that I was doing previously. You've then freed up your time, you've created an asset that can pay you and even pay say a team member or papers and tools, some AI tools within the business to help you keep it running. And after those first few months of putting that time in, the systems can start to work for you. So it's a really important thing to notice that like the curve on the graph goes, yes, it's a hard amount of work at the beginning, but then gradually that tapers off and if you imagine the income from the business goes up as well. So you're kind of seeing that like steady rise of the income from the business as your time input goes down. If you've set it up correctly with the right systems and have created the right leverage, which is what we want from this kind of business. If you're looking for a lifestyle first business, then you don't want another job that you're spending 12 hours a day slaving into, putting all your time into, only to then realise like you've created the thing you were trying to escape in the first place. So we want systems to give us back the time, which to me is the most valuable currency of all. Absolutely, yeah. The rewards are very real, but only for those people that can push through the difficult times, the messy times, and things don't go exactly as planned. But I think it's important that we share that on the podcast list because although we know how the game works online with the algorithm and getting more clicks, I don't think we should lean too much into that because it really resonated with me when I first came across your ads, Louis, and watching Dropship Unlocked videos online. What resonated was that you made it very clear that it was going to be difficult and that it wasn't a get rich quick scheme. And I actually wanted to hear that, even though that's not what the algorithm thought I wanted to hear. I wanted to hear that it was going to be tough. And something to tell me, honestly, it's going to be a business that you're going to create and of course there's going to be challenges to overcome and you'll have to step out your comfort zone to call a supplier or you'll have to spend time after work building a Shopify site or choose products to sell when you've got no idea what to sell. But I wanted to know, I didn't want to be sold a dream. I wanted to know that the rewards were there, you know, so I could see that the lifestyle that you'd built for yourself. But I also needed to know that it wasn't going to be handed to me on a plate because I knew that those things don't exist. And sometimes it's easy to be sold that because it works for platforms like Instagram or YouTube for people to sell that and serve it on a plate as a, as a get rich quick scheme. And something I think you've mentioned in the past, Lewis, is you've called YouTube at YouTube University, that some people go to and graduate and try and build a business completely off the back of these free YouTube videos. But I think it only takes you so far. So, I mean, from your experience, or from experience that you've seen other people when they've gone and tried to do this, when they've gone to do a DIY course where they've watched YouTube and then they're left to their own devices to try and follow a YouTube video, why? What have you seen happen? And do you think that one to one is crucial or do you think people can go and do it themselves? So I actually think it's really important to hear that, that genuine perspective and people find that quite refreshing, I think, don't they, when they hear like, actually, yes, it is a simple step by step process, but that doesn't make it easy. That still means you'll need to show up and do the work. And that's important because not only are we then not misaligning expectations with people who come into the programme, but we're also getting the right people who join, who are coming in and they're like, I'm ready to do this and I know it's going to be hard. But I also know the alternative of working a job right up until retirement and never having my any free time along the way to do what I want or call the shots in my life is also going to be hard. So it's like, we'll pick your type of difficult then, because both parts are difficult. But it's a case of like, when do you want to make that jump into doing something difficult that is for yourself, that is front loaded and gives you back that time. So I think it's important not to hide it because actually it still can give you the, the lifestyle that all of the Instagram Reels and TikTok reels that are selling this approach talk about it can actually do that. That bit I don't believe is fake because eventually, yeah, you have your time, you can go and do whatever you want with your time and show it on social media however you choose to. But it's the, the bit leading up to that that I think sometimes people like brush under the rug and they're like, oh yeah, yeah, just do this, this and this. And then you'll be able to like travel the world and be free and do. And we're like, well actually, no, let's lead with that. But yeah, that's amazing. That's the end goal that we're aiming for so that you have that free time to go and do whatever you want. If that for you means like picking your children up, children up from school, doing the school run, being able to, you know, take them to football, practise at the weekend, being able to take a holiday without asking a boss, being able to travel to other parts of the world and, and take your family on like six month holidays or whatever it is you want to do, like that's your reason for doing it. But let's just also focus a little bit on like the journey and pathway to getting there because it's not something that you just click your fingers and it happens, but it can be a very repeatable, very simple process. So it's not too good to be true, I think. That's the thing. Sometimes people are like this sounds amazing, it's too good to be true. So I'm trying to say like actually no, there, there are hard times at the beginning but it is very good. So that's the, the message I try and convey. But yeah, I think with regarding like trying to learn everything off YouTube, the danger with it is that you get, it's the same as like we talked about, you're getting this surface level information, you're getting the cherry picked bits that they want to share on YouTube. And the most dangerous bit of all really is you don't then know where to turn when you get stuck. Sure you can go on YouTube and be like, search for a video about, I don't know, whatever the problem you're facing is and hope that someone out there has the right perspective that is proven trustworthy and can help you with that video and maybe you find it. But you know, what are the chances that it's going to be perfect for your situation? It's all very contextual this stuff and I think if you don't know where to turn at various points along the way it's, it's difficult to know sometimes even what questions to ask, let alone who to ask them to and who to trust. This is like. You see evidence of this inside our mentorship programme at Dropship Unlocked where someone who's quite new to the programme will join one of our twice weekly coaching calls that we do sometimes three times a week. And they'll, they'll be there and they won't say anything on the call, they'll just be listening in and they'll hear a couple of other members questions and then they'll chime up and say I'm new. I didn't even know that I should be thinking about those questions but those are really valuable. And actually now I feel a lot more prepared going into the next phase of my journey having heard of the answers to people's questions who are a bit further ahead than me. So it's like being able to see into your own future and know what challenges you're going to face and also have the roadmap to navigate them. So this, it's such a valuable way of going about business rather than just like hoping that every time you hit a brick wall you go to AI or you go to YouTube you do a search and hopefully the answer is 100% what you need and accurate. It's very, very unlikely to be the case. So I think that's why that contextual small Room mentorship, where you're in a group, you can speak, you can give the actual stats and the information about your situation is really important. And having real humans who are willing to defend their position, you know, not just roll over and kind of give you whatever you want to hear, but actually say, no, this is the way to do it. Even if that's not what you want to hear, this is the right approach. And so then at least you know, you're removing 90% of the friction because then you've just got a nice clear path to follow. Yeah, that's the way we've designed the Dropship Unlock masterclass. It's to have the clear road map to follow the step by step guides. But then the way that we learn as humans is that we need to then understand why we're doing certain things. And I think that's when the Q A call come in really handy. If you don't know why you're doing it a certain way, you haven't just gotta be given a set of videos and just do that and not be told why, you know, then you're left with all these questions we can answer that explain the way through it, because we've got our own lived experience of building these businesses ourselves and running them till to this day. And also the Q and A point is really interesting because we do Q and A calls so regularly in at least two a week, that oftentimes people realise that there's, there's not, they don't have a question in mind when the next Q and A call comes around. And so for those situations, people just jump on the calls then. And then sometimes they'll, they'll speak to me and they'll ask some questions or they'll, they'll explain where they're at if they don't have a question. And then I can pull questions out of them of the situation that they're at because I know what they're about to work through or what. What's the best way to approach that specific situation inside the programme while they're building their business? So, yeah, I think that's, that's only there because we've got the community aspect that allows people to just explain the situation and get the questions pulled out, rather than needing to know what to ask the whole way through. Whereas YouTube, that search bar, will stare back at you if you don't know the right questions to ask. It's not going to suggest a question that is exactly relevant for the type of business that you're building. And the specific situation that you're at when you're building that business as well. So I think that's, that's a big reason as to why people may have come to us and failed at different business models in the past and tried things and been burnt and probably lost some confidence in that process. So for those people then, Louis, what would you say to someone who's feeling a lack of confidence, maybe they failed something in the past? What would you say to them to build them back up and hopefully put them in the right direction? That we get it. We, we can empathise with that because that has been our experience as well. We've lived that, we've been through that. We. Where it's super frustrating. You're, you've tried everything. It's not through lack of effort that you, you failed. It's just that you can't quite figure out like everything you seem to try is not working. And sometimes it's because the system is like rigged against you. It's the, the model that you're trying to make work is fundamentally flawed. Like the maths, the economics of it just don't stack up in your favour. So you can pour as much time and effort and money into it as possible, but if you're following a, a flawed strategy and the model is not proven, it makes it 10 times harder versus if you have a very proven, very data driven, very step by step approach and structure, along with the right support along the way, you end up finding every step of the way a lot easier because you think, well, that's so much less friction. And later on people are like, I see why now, back at the beginning of this programme, you have me do this, this and this, because now I need those things and I'd be thinking like, where do I even go for this? But we set it all up earlier and so that's why everything's in a sequential order. Not to get anyone overwhelmed, but just to make sure that as those problems unfold, which they will, the answers are right there in front of you. So don't confuse failure, if that's what you want to call it and that's what you feel like you've experienced so far with the online business. Don't confuse that with a bad model because maybe you just didn't have the right structure, the right support in place when you did it. That doesn't mean there was anything wrong with you. It could just be the model that you were following. The other thing is with the approach that we use, which is like domestic. So in our Case UK brand first. It gives you that credibility and control. So it gives you a brand that you're building that you can really stand behind and be proud of and know that you have longevity in the company that you're creating. So that's really important because you're not just chasing the next flash in the pan trend and then hoping that tomorrow there's another trending product that you can build your whole business up from. You're not like following these huge waves. You're trying to build something that just lasts and compounds and grows over time because you want that steady income coming in. Once you have this business, that's really good for peace of mind. So it's not too late to start if you want to pivot and now do it properly and have a clear path and real guidance. And you're curious about how our model, the trademarked model that we have, the home turf advantage that we teach at Dropship Unlocked works. And you want to see the roadmap that we've mentioned. You can get started by heading over to dropship unlocked.com forward/start. Are you enjoying the podcast? We'd love to hear from you. Leave a comment or a review and we might feature it in an upcoming episode. And for detailed show notes and resources, visit dropshipunlock.com podcast. If you found value in any episode of this podcast, please could you take just 10 seconds to leave us a quick five star review on your favourite podcast app? It helps us more than you can imagine and who knows, you might just hear your comments read out on the show. Thanks for being a part of our community. Your support helps us keep delivering new episodes to you every week. Now it's that part of the podcast where we're going to answer a question that we've received from a listener. So if you've had any questions that have come up while you've been listening or watching today's episode, then all you need to do is leave a comment beneath the YouTube video version of the episode and we'll answer it in the comments. But we might also feature it in an upcoming episode. So that is exactly what Oral has done. He's asked a great question, so I'm going to put it to you now. Lewis. He's asked, how can I differentiate from competitors and provide real value so customers choose me? Yeah, it's a great question, Oral, and I think there's a few different ways you could think about this. So first one that springs to mind for me is customer service just being willing to answer the phone and help a customer will. And when I say help, I don't mean be a product expert because you might not be an expert on the products you sell, but just be willing to be friendly and helpful and be like, I'll listen to you and I will try and find out the answer to your question and then you just go and ask your suppliers the answer and then you report back to them. Like just being able to and willing to do that will set you above, you know, probably at least 50% of the market out there that don't do that. So I think that's the first easy win and differentiator that you can have is the actual level of customer support, whether that's through live chat or phone support or email. The second though is without dropping the price. So without trying to compete on price, which I don't really agree with and I think is just a, a dangerous race to the bottom where we just erode away all of our profit margin, which you don't really want to be doing, is to try and stack up the value. So rather than decrease the price, can we just make the value associated with that sale higher so it seems like a better deal in relation to the same price as it was? And so examples of how you could do that might be including value add items, whether that's like a, a PDF buyer's guide of the products that you get as a free gift for joining or for purchasing or perhaps it's accessories that you could bundle in and give away as like a free gift. When you order this item, often those gifts can be very cheaply sourced and actually sourced from the same supplier that sell the product. So you just bundle the two together and every time you know the supplier ships out this item you just say could you also ship out this smaller item? And remember that you know, if you're selling a 2,000 pound high end gas burner barbecue and you give away a set of barbecue tongs for free that cost you £20, well you've probably just made £600 in profit on that order at a 30% profit margin. So giving away the tongs for 20 quid is nothing, right? But it closes you the sale, so that's really important. And other things are like installation walkthroughs, so like educational video content and just try and think what would make this a no brainer in terms of increasing that perceived value. So yeah, in terms of like pre sale things you can do to try and make sure you, you close that deal. Buyer's Guide Comparison Tools Video Education Product Quizzes, whatever you can do to educate the customer, whether that's through your email sequence that we talk you through prior to the sale or just building your authority in that niche so that you are the go to company that they'll come to. One of the things that I would mention oral is to get the website to be mobile friendly and speed optimised so that it's really fast, easy to load. The amount of websites that don't bother to do that and therefore give their users a sub par experience is huge. So if you can just do that again, you're then setting yourself apart and try and make it so that your website is built for one product category. It's not a generic e commerce store where you've got loads of different items and it just looks like a mishmash of products. You want customers to feel at home and trustworthy and running things like retargeting ads across the meta platform and across the Google platform means that that in itself visibility of your brand is a differentiator because you will be the one front of mind I. E differentiated from others because They've seen you 10 times in the last week and therefore they choose to buy from you. So there's all those ways you can do it. Don't feel you just have to discount on price. Good luck with the process and let us know if we can help. Fantastic. Yeah, great question. And loads of ways there to differentiate yourself. Even if you're selling the same products as a competitor, there are so many ways that you can add more value as Lewis explains, and therefore win the sales. Which is music to our ears. So fantastic. Thank you for your question. And now we're going to highlight a recent review that we've had for the podcast as well and that has come in the form of a YouTube comment from long term listener to the podcast Diana 811. So Diana's said so true when referring to a previous episode and she said step by step, little by little, following the masterclass consistently leads to success. Thank you. Dropship unlocked. Thank you so much for your review Diana. It means a huge amount to us. We really appreciate it. Before we wrap up today, I'd love to ask a quick favour of you. If you're listening to this today and you found any of those tips helpful and you thought actually that was good, would you leave us a quick review for this episode? You can leave us a comment on YouTube or review us on your favourite podcast platform. Wherever you listen to us, your feedback really helps us reach more listeners and keep improving our content. Plus, we'll even try and read out your comment or review on our next episode. Thank you for joining us on this episode of the Dropship Unlocked podcast. We hope you are leaving with new insights and inspiration to fuel your entrepreneurial. Journey to to kickstart your e commerce business. Head over to dropshipunlocked.com start. It's the perfect place to start and get access to resources that will help you build your business from the ground up. And don't forget to hit that subscribe button for more episodes packed with strategies, tips and success stories. Plus, if you enjoyed this episode today, a five star review would mean the world to us and you might even get a shout out out on the next episode. Thank you for choosing to spend your time with us today. We can't wait to bring you more insights on the next episode of the Dropship Unlocked podcast.