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As others have said, there's nothing unique about this business model. It feels a little to me like it's copied and pasted from a generic business model you might find on the web. That's not really a problem in and of itself, though--if it's worked for others, it can work for you.
The trick here is product differentiation. You want to find a market niche that isn't getting adequately served, and then serve them. Some bunch of people (certainly NOT as large as the general market) who have specific interests that aren't readily satisifed in the market as a whole. Then become the conduit between those people and the products they're interested in.
Start by looking at your interests. Are you a musician, for instance? What do you know about the availability of musical instruments or sheet music, say? Is it hard to find guitar music by obscure 80's hair bands? Well, there you go. Maybe there's a whole world of Ratt tribute bands out there looking for a resource. The feasability of that niche play is what you'd learn by doing market research--something notably lacking in your friend's presentation.
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