eCommerce Lifestyle
Shares

Guaranteed Income!

Shares

I think I just found a new dropshipping scam being promoted on Facebook.  Listen to today’s episode to make sure you don’t lose any money!

The podcast is also available on all major podcast players including, Stitcher and Spotify.

Links From This Episode:

Transcript

What's up everybody, Anton Kraly here and welcome back to the eCommerce Lifestyle Podcast. Coming to you today on an early Monday morning, which I've been having more and more of because I have a 10 day old daughter downstairs now. And she sleeps good, but she likes to wake up at four. So the days have been starting earlier and earlier. With that being said, I wanted to hop on here quick, share a message with you. Because before my coffee kicks in here and my brain's not at a hundred percent, I was just messing around on Facebook, scrolling through, and I saw an ad that really stood out to me for a few reasons that we'll talk about. And it's something that in my opinion is extremely problematic. And it's something I want to make you as a listener aware of sooner rather than later, because if I'm seeing this ad based on what audience Facebook puts me in, as somebody obviously interested in dropshipping and e-commerce, if you're listening to this podcast, you're most likely going to see the same or an extremely similar ad.

Okay. So first of all, what was it? It was an ad from a company that had some generic name that said you can get $50,000 of guaranteed sales when you buy a pre-built dropshipping store from them. Now, the prices that were being advertised and people were discussing in the comments of this ad seemed like they ranged from about $5,000 to $15,000. And the way it works is you pay this money. This company says over the next, I believe it was three months, that it will bring in $50,000 or more in revenue. They say it's guaranteed and they say that the profit margins are between 30% and 50%. Now let's say you are somebody newer to e-commerce or maybe you even have some experience, you've built a store already, it's making some money and you see an ad like that. If you don't have an eye for picking up things that in my opinion are scams, then you might think, wow, that's an amazing opportunity. It's literally guaranteed. What do I have to lose? Well, your money is what you have to lose.

And the reason that I'm saying this is because going back now, let's see it's 2021. This must've been seven or eight years ago. I saw basically the same thing being offered that I just saw in this ad, but I saw it on a different marketplace. I saw it back on Flippa. If you don't know flippa.com, it's a website where you can buy and sell online sites. They don't have to be e-commerce. But back in the day, I saw people with this same pitch, the same offer, pay us between $5,000 and $15,000, whatever it is, you have guaranteed revenue for your store of $50,000 and you can expect the profit to be between 30% and 50%.

Now, what happened back in the day that made this, in my opinion, be a scam. Well, the people, or the companies I should say, because you'll notice this, there's never names or faces attached to these companies making these offers. It's always generic company names. What happened back then is the company started to get complaints and they got their accounts shut down and they couldn't sell anymore. But then what happened is they would change their company name. They would kind of rebrand it. They would come back under some other generic name. They would run the same thing for as long as they could, they would get bad feedback, they would lose their accounts. They would do it again and again and again.

So is the company that I just saw doing this, that same company that I saw seven or eight years ago? It's totally possible. But more likely than not I would say, the company that I just saw that was promoting this guaranteed income on a store is somebody that knows that if somebody that wants to build a dropshipping store, who's uninformed about how real business works sees that ad, they're more than likely than not going to want to take that offer. Because if it's true, it would be an amazing offer.

Picture it this way, you spend $5,000 and three months later, you've done 50,000 in sales and made $15,000 in profit. Of course I'm going to do that, right? So I think that's the problem and that's why I wanted to point this out. Because if it was true, it would be an insane offer. It would be an offer that literally everybody in the world should scramble to get money together to buy because you're going to have this guaranteed income. But in reality, what I believe is going to happen with this company, just like the other companies I saw, is people are going to get burned and they are going to go out of business.

Now, I'll say this too. I'm not going to call out the name of the company that I just saw the ad from. And the reason is one, because it's not what I do. I don't like the drama like, "Oh yeah, this company is a scam." No, you'll see it yourself. And hopefully with this information, you can identify that it's a scam. Another reason is because just like back in the day when I saw these income guarantee store scams happening, the companies, like I mentioned, they would just use these generic names. And then once that got a bad reputation or that account got banned, they would just come back with something else. So it's kind of like a whack-a-mole, or at least it might be for a little bit. Again, this is the first time I saw this, but what I think is going to happen is this one will eventually burn out. They'll come back with another name and another name and another name until they basically burn all their bridges, can't get ad accounts anymore and nobody trusts the scam.

So the purpose of this quick episode is kind of just like a PSA to get out ahead of the curve before people fall for this. Because again, in my opinion, from what I've seen in the past, it's a waste of money. Maybe they'll bring in some revenue for you. You're not going to make those margins they promise. Again, my opinion, more likely than not, you're going to be selling products that aren't even priced competitively with anybody else that is out there selling them. And the stores that you get are typically just these copy and paste templates that the people selling them just try to keep rebranding, make a different logo on the stores in the same niche, sell to somebody else, slap a different logo on it, sell to somebody else and so on and so on.

So that's it for today guys. Nothing tactical as far as how to build or grow your store, but hopefully a way that you can save money if you see this. And kind of in general the message is, if something seems too good to be true, it is. Because of course, if you could spend $5,000 and do $50,000 in sales guaranteed in the next 90 days and have the potential to make between $15,000 and $25,000 with not much work, everybody in the world should do that. And yeah, not how the world works. You got to do real work. It's not just about putting money up.

So I will say to wrap this up, if you are the type of person that does not just enjoy, but can actually push through and do real work, we have a business model we use that's simple, but that doesn't mean it's easy. You got to put in the hours upfront. You got to build your store. You got to build supplier relationships. You got to set up traffic the right way. And there is a lot that goes into it.

So if you want to learn how we've been doing this since 2007, my advice is go to dropshipwebinar.com. I'm going to link that up in this episode description. That's going to take you to a page where you can register for a free training I have coming up. It takes you two minutes. And on that training, I take you through how we pick niches, how we get suppliers, how we build stores, how we get traffic. And I give you a realistic look at the work it takes to get started. So again, that's dropshipwebinar.com. So with that being said, thank you everybody. I appreciate you. And I'll be back on Thursday most likely, with another early morning episode of the eCommerce Lifestyle Podcast. See you everybody.

>