eCommerce Lifestyle
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How Dropshippers REALLY Make Money

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Episode 327

 Podcast Description

 Ever wonder how dropshippers really make money online?  Then this episode is for you.

 Podcast Notes

  •  In this video I want to talk about how dropshippers really make money online
  • If you’re currently thinking about dropshipping as a business model, this video is definitely for you.
  • I’m creating this because when you look online you mostly see the “lifestyle” of dropshippers marketed. 
    • The fast cars
    • The luxury condos
    • The incredible locations
    • And so on…
  • I’ll start by saying one of the main reasons I love this business model is because of the lifestyle it provides.  
    • After all, I got into eCommerce after reading the four hour workweek over a decade ago… 
    • Since then my stores have generated multiple 8-figures while also allowing me to work an average of 20 or so hours a week while being anywhere in the world.  For example, living in Thailand and Vietnam for almost 5 years while continuing to grow.
    • When done right, this business model really can be life changing…
    • But that’s the point..
    • Most people are not doing this right…
  • The problem is people get so sucked into living the “lifestyle” that they don’t even think about what goes into building a successful dropshipping…
    • Just check the dropshipping sub-reddit for people asking for feedback on why their stores are failing and you’ll see that many put in the bare minimum of effort and are seriously curious about they can’t quit their job after 2 weeks.
      • Better year, don’t check that sub-reddit. It’s bad for your brain…
  • OK, so back to the title of this video
    • How do dropshippers REALLY Make Money
      • They do it by doing the BORING work
      • And by doing that BORING work consistently over time.
  • What is that boring work you ask?  Great question. Let’s talk about it.
    • Persistent follow-up with suppliers
      • I recommend finding at least 20 per store
      • And becoming an authorized retailer
      • Most people go the “easy” route of dropshipping using the arbitrage model or using an app to dropship from China… this doesn’t work long term…
      • What works long term is doing the “boring work” of researching suppliers in your niche, getting rejected, moving on, and continuing to follow-up
    • Uploading products
      • Once approved you might have 300 products to upload or you might have 3,000.
      • Many people want to upload 1 product and be reach
      • Get all the quality products from the quality suppliers and do it right the first time
    • Talking to customers
      • There are ways to minimize this
        • High ticket products that appeal to the upper middle class
      • But especially in the beginning you want to hear from your customers as much as possible
      • This is how you get better and grow.
      • Answer emails
      • Ask for reviews
      • Talk on live chat
      • PICK UP THE PHONE
    • There’s a lot more I go into but I think you’re starting to get the point.
    • Dropshippers really make money by DOING THE WORK EVEN WHEN IT’S BORING
      • There are smart ways to work, but there are no shortcuts
      • Watching another YouTube video isn’t going to make your dropshipping business magically grow
      • Doing the boring work will.
    • Any questions let me know in the comments.
    • If you got value leave a like.
    • Subscribe for 2 new videos every week.
    • And I’ll talk to you in the next one.
If you liked today’s show, please subscribe on iTunes to The eCommerce Lifestyle Podcast! The podcast is also available on all major podcast players including, Stitcher and Spotify.
Transcripts

What's up guys, Anton Kraly here from DropShipLifestyle.com. And in this video, I want to talk about how drop shippers really make money online. Now, this is definitely for you if you're thinking about pursuing drop shipping as a business model. And the reason I want to create this video right now is because I've realized when you go online and you start researching drop shipping, most of what you find being marketed is the lifestyle side of things. You see the fast cars, you see the nice condos, you see the nice vacations people are taking and you see the free time that these business owners have. And I'll just say, that's all well and good, right? They're one of the main reasons that I love this business model and I've been doing it so long is because of the lifestyles side that comes with it.

But the problem is that when people only see that they don't realize what actually needs to be done to get that lifestyle. And the lifestyle side, again, it's real. Since 2007, when I first got into e-commerce, I've been able to build multiple eight figure streams of income from my stores. I've been able to live all over the world while running my businesses, have completely virtual teams and it's thanks to e-commerce and drop shipping.

Now, with that being said, I want you, if you're serious about this business model, to know how these drop shippers, including myself, are actually making money. It's not by sitting on a beach every day. It's not by flying business class with rewards points from the drop shipping store. It's by doing the boring work, the things that people typically don't want to do. And unfortunately, most potential drop shippers or people thinking about drop shipping don't even know exists and don't know make the difference between starting a store and getting no results and starting a store and being able to live that lifestyle that you want.

And if you just want the clearest example of what I'm talking about, you can go on the Subreddit for drop shipping, and you'll see tons of posts for people asking for feedback on their stores. And you'll see, if you know what you're doing, that people put in literally the minimum possible amount of effort. Then they're curious why they can't quit their job two weeks later and why they're store isn't a home run. And again, to somebody that has experience actually drop shipping, it's obvious. It's because they're not doing the boring work. Maybe they don't know it needs to be done, but they think there's some magic button that you push and you get rich. And maybe that happened if you bought crypto five years ago and held onto it, but that's not what happens with drop shipping.

So what I want to do is share some of that boring work. Some of the things that myself and other drop shippers do to actually make money. The first thing that every successful drop shipper does is consistently and persistently follow up with the top tier suppliers in their niche. What I mean by this is, as you know if you're a member of Drop Ship Lifestyle, I recommend finding at least 20 potential brands to sell for, high quality brands that make products that people want that are warehoused domestically to where you do business.

Now from day one, when you're a new store, guess what? They're not all going to approve you. And some people might make a couple calls, get rejected and think, oh man, let me go the easy route and try to drop ship using the arbitrage model. Or maybe let me plug in an app to my store that lets me drop ship from China and just do that because it's easy. I don't need to get rejected again. I don't need to call 19 more suppliers or possibly a hundred more suppliers. And they try to go that easy route. They put some products up, they're not making money and they think why doesn't this work? It's because they're not doing that boring work. They're not putting in the effort needed to become an authorized retailer.

And I'll tell you, I've been doing this again myself now for what is it, 15 years? And it's still boring. It's not my favorite thing to do, but it's what we need to do to make money. We need to get approved with the suppliers we can get from day one and we need to consistently and persistently follow up with the top tier suppliers over time so our business becomes more well rounded. So we have more to offer and so we can actually make money drop shipping.

The second thing that every successful drop shipper does that actually makes money online is puts time and effort into uploading products. So let's say you went through what we just talked about and you got approved with one supplier or a hundred suppliers. You might have to start between call it 300 and 3,000 products that you need to upload to your store. Now, people here also get lazy, because it's boring. When you want to upload products the right way to your store, it's a tedious task. It is not fun, but guess what? You're running a business and you need to do the boring work if you actually want to make money with this business model.

This is another part where people think, let me just build a one product store and instead of having to get all these suppliers, and get all these CSVs, and get all these product images and descriptions, and have it all uploaded and optimized, let me just upload one product and see what happens. Nobody clicks a few buttons and magically gets rich. Unless again, you were that guy or girl that bought crypto five or 10 years ago, then good on you, but that's not building a real business. That's not what we're talking about.

If you want to do this the right way, do the boring work of uploading all of the products from all of the quality suppliers you get approved with and upload them the right way so that people will actually want to buy from your store once they find you. It might be boring but guess what? That's the difference between having a bunch of crap on your site or not having anything and then sitting there and wondering why you're not making money or getting traffic, having people find you and when they find you, actually wanting to take out their credit card and buy from your drop shipping store.

The third thing that everybody making money drop shipping is doing is talking to their customers, especially in the beginning. And you might be thinking, well, how can you only work 10, 20 hours a week if you're running a huge store and you have all these customers? Well, listen over time, once you know your business better and it's more built out, then yes, you outsource things and you oversee it, right? You have a team, but before that, you need to talk to your customers. So I'm talking about things like responding to emails in a timely matter. I'm talking about things like actually asking everybody for reviews, even if you think you're not doing a good job. Instead of what some people try to do, which is literally hide from their customers. You want to hear what they like and what they don't like so you can make your business stronger and make money long term drop shipping.

On top of that, you want to be doing things like responding to live chats. On top of that, you want to actually have a phone number on your store and answer the thing when it rings. Okay? Have it go to your cell phone, have it forward, pick it up, say, hi, this is so and so from so-and-so dot com, how can I help you? Get those extra sales from people that just want to speak to somebody. Literally have the conversations so you can make your business better so you can make more money drop shipping.

Again, over time that's something you can outsource and if you do what we do at Drop Ship Lifestyle and you focus on selling high ticket products, meaning expensive products, it's not like the order volume is something insane where you're going to have a hundred calls a day. Maybe you get three calls a day, five calls a day and these are people that potentially are going to spend one or $2,000 with you. Easy sale, pick up the phone, either close the sale or get the feedback. That is how you make money. Again, it's not just about manifesting I'm going to have a Lamborghini and live on a beach in Miami. That's not how this works. And that might sound like, yeah, of course, Anton, I get it. But I think a lot of people don't, based on some of the comments I see online. Again, it's a real business.

So that's going to take us into the fourth and final thing that I want to share in this video for how drop shippers really make money online. Again, following the theme of doing things that are boring, and I could talk about this all day. I literally can make a list of a hundred different things, but I think you're getting the point. But the fourth thing that I want to share is they simply do the work.

Now, the problem is when you see drop shipping being marketed, you're typically, again, seeing the lifestyle, the flashy side of things, which obviously isn't necessary. You could do whatever you want with your money. You can live like a minimalist and take all your profit and invest it into index funds because it's your money. But that's not the point. The point is the people that are actually making real money drop shipping, how they're doing it is by doing the work. A lot of times, this isn't what you see on YouTube or on blog posts. But the people that are actually making money are the ones that are doing everything. They're in the business. They're doing the work and the people that you see that are actually making money when they're not filming, they're doing the work. They're making the money.

Watching another YouTube video on drop shipping is not going to magically make your business profitable. Turning that YouTube video off and diving into the boring stuff, and getting it done, and doing that consistently over time is what's going to allow you to really make money drop shipping, just like everybody else that is doing it profitably is. So guys, that's my rant for today. I do hope you got value from it as always. If you did leave a like. If you're not subscribed yet click that button. And if you have any questions on this stuff, leave a comment below. More than happy to help out. With that being said, click subscribe if you're not subscribed already. And I will see you in the next one.

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