– Hey everybody, it’s meSarah here from WholesaleTed,
and 2019 is officially here.
It’s a new dawn, it’s anew day, it’s a new year,
and I know for many of you,
you want this to be your year.
This is the year thatyou will quit your job,
this is the year that you will get rich.
And if you want to quit your job
and you wanna get rich,well, you have two options.
Number one, you can play the lottery,
and I actually know someone who won
over $200000 playing the lottery,
but it’s not what I’d recommend.
Instead, what I would recommend is that
you build a money-making business
and that you take control of your destiny.
But of course, that begs the question that
I get asked a lot.
Sarah, I want to start a business,
but I don’t know whatsort of business to start.
Which is best?
And in some ways, that’s a good question,
but to be honest, I hatebeing asked that question,
because the answer is thatthere is no best business.
There’s simply different business models
that each have their ownadvantages and disadvantages,
and so the key is picking
the right business model that fits you.
And so, for this video,I decided to invite
six of my good friends onto this channel
who all run different milliondollar online businesses,
and I’ve asked them tocome onto this video
and explain why they chose theirs.
Some require different skills than others,
some require more startupmoney than others,
and some have more risk than others.
In other words, each businesshas its own pros and cons.
And so, hopefully bythe end of this video,
you will be able to compare
all of these different businesses
and pick the one that is right for you.
All right, let’s moveonto business number one.
Business one, sellingwholesale products on Amazon.
So, I personally thinkthat this business model is
a fantastic twist on what is probably
the oldest way that society
has been making money for generations,
and that is by simply reselling
physical items to people.
Buy an item cheaply, and thenresell it for a high price.
Unfortunately for many people,
while this is possibly the oldest,
most reliable way to make money,
in the past, it has beenvery, very difficult
for a lot of people toget started doing it.
Just think about how much risk
traditional retail storesnormally had to take on.
They had to spend money to rent a store
and pay staff members to man it.
Then they have to purchaseall of these items
that they are stocking on their shelves.
And then they have to pay for advertising
to get customers into their store,
and they have to pay for all of this
before they open for business.
What if customers don’tcome into their store?
What if customers don’t like the items
that they are selling?
What if there’s no demand for them?
There is a lot of money that people
have had to traditionally risk
to open a retail store.
Luckily, with thisbusiness, you get to bypass
pretty much all of that risk.
And as you can see, youcan scale the business
to do millions of dollars a year.
Here is how it works.
First, what you want to do is
you want to head on over to Amazon.com.
Next, you want to identify products
that are being sold by amoderately popular brand
that are selling very well.
Now, I don’t mean thatyou want to be finding
mega-popular items frombillion dollar brands
like these Bose headphones here.
No, instead you find amoderately popular brand
like this one here, Carbquiks,a low-carb baking mix.
Now, the chances are youhaven’t heard about them before
because they’re not asbig of a brand as Bose,
but guess what?
If we check with the Amazon Sales
research tool Jungle Scout,
we can see that, in the last month,
484 units of Carbquikswere sold on Amazon,
which generated over $24000 in sales.
It turns out that this product has
a niche group of customers who love it
and buy it regularly, andso, because of the fact that
the brand is only moderately popular
rather than mega-popular like Bose,
it has very little seller competition.
Now, here is the thing, thecompany that makes this,
Tova Industries, theydon’t sell it on Amazon.
Instead, they rely on third-partysellers like you and I
to list it in our Amazon stores.
And if we click on the listof total sales for this item,
we can see that thereare currently only four,
arguably three, merchantsthat are selling it on Amazon,
since TNGstore are fulfillingit in two different ways.
And that’s actually reallyawesome, because you see,
on Amazon, most customers don’tclick on the list of sellers
and pick one from thelist to purchase from
like we just did.
No, instead, the vast,vast majority of people
use what is called the buy box.
The buy box is thisbig add to cart button.
As you can see, right now,if you were to click on it
and add this item to your cart,
you would be buying this baking mix
from the seller TNGstore.
So, if you, like TNGstore,
are the lucky winner of the buy box,
then you get to make freesales and make free money.
So, the question is,how does Amazon choose
which seller gets to win the buy box?
Well, I’m gonna simplifythis a bit, but basically,
Amazon looks at thelist of sellers and sees
who is using somethingcalled Fulfilled by Amazon,
and who is priced the most competitively.
And looking at the list, only two sellers
meet this criteria.
Well, what Amazon willdo is something that we
in the online e-commerce industry call
splitting the buy box time.
So, roughly 50% of the time
that a customer comes and clicks on
this add to cart button, Amazon will add
one of Cirdan’s items to their cart,
and roughly 50% of the time,
Amazon will add one of TNGstore’s items
to their customer’s cart instead.
Each of these sellers is probably making
over $10000 a month fromthis one item alone.
No Facebook ads required,no marketing required.
You get to take advantageof the fact that customers
are naturally coming to Amazonevery month to buy this item.
And so, what you do is you goand contact the brand owner,
Tova Industries, and open what is called
a wholesale account with them.
With a wholesale account, we can buy items
at massively discounted rates in bulk
directly from the manufacturer.
And so, because of the fact that
we are buying them at discounted rates
directly from the manufacturer,
we can go and list themon Amazon.com for a markup
and still be listing itat a competitive price,
and then we can take a slice of
Carbquik’s sales for ourselves,
which will be thousands of dollars.
But even better, we canautomate this business
to turn it into a formof semi-passive income.
So, what we do is, whenwe purchase the items
from Tova Industries, we don’t get them
to send it to us.
Instead, we’ll get them to ship it into
one of Amazon’s storagefulfillment warehouses.
That way, Amazon willstore the products for us,
and when a customer orders
one of our Carbquiksfrom us on Amazon.com,
Amazon will find that itemthat the customer has ordered,
package it up for them, andship it out directly to them,
which makes this business largely passive.
This is called Fulfilled by Amazon.
My good friends Dan and Eric,
co-founder of The Wholesale Formula,
make millions of dollars ayear doing this and love it.
They have nicknamed thisbusiness model reverse wholesale.
Here’s their story and why they chose it.
– Hey, Sarah.
– Hey, everybody.
– Well, over the last two years,
Dan and I have sold over$8 million on Amazon
doing something we callreverse sourcing wholesale.
– The best part is ourbusiness basically runs itself.
– That’s right, we only work about
four hours a week between us.
– And we work wheneverand wherever we want.
– Yeah, but it didn’t start that way.
– Just a few years ago, we were both
working corporate jobs,over 50 hours a week,
living paycheck to paycheck.
– And we wanted real financial freedom,
and we were willing to put in the work.
– Then one day, our boss,
who was making a six figure salary,
said they were quittingto sell Amazon full-time.
– We had to know more.
After showing us his low-risk strategy,
we started selling ourselves.
– But we had to start small.
See, we both had bad credit at the time
and all we could getwas a $600 credit card.
– We worked on our Amazon business
in our spare time after work,plus nights and weekends.
– We sold nearly a million dollars a year,
but we’d stretched ourselves too thin,
and the time had come to make
what seemed to be a risky decision.
– But really, the choice was clear because
we believed in our abilityand knew the model worked.
– Right, so we doubled down on ourselves,
we quit our jobs, a fewyears later, and here we are.
– It was a lot of hard work at first,
but it’s given us the freedom
to live life on our own terms.
– Now we have time to pursue
our real passion of changing lives.
– We teach other entrepreneursour business model
to create as many successstories as possible.
– Now, we’ll wrap it up there,
but thank you for allowingus to share our story.
– So, while this businessrequires startup capital,
for Dan and Eric, the allure of having
a low-risk business, combined with
passive income potential opportunities,
is what drew them to it.
All right, let’s moveonto the second business,
a very different one.
Business two, promote productswith affiliate marketing.
Affiliate marketing is pretty simple.
It’s just a commission-based business.
There are companies out there
that have affiliate programsthat will reward you
for recommending their products
and services to other people.
When you sign up for an affiliate program,
you will get a unique URLthat is special to you.
If you share that URL oryou advertise that URL
with paid ads, and someone clicks on it
and buys the product or service,
then you get a commission on that sale.
So, for example, I’m an affiliatefor the service Shopify.
Shopify is an amazingtool that I honestly love.
It helps you build e-commercestores really fast.
One of the more popularvideos on this channel
is the step-by-step Shopifytutorial that I created.
Well, if you come tothe video description,
you’ll see a link that you can click on
to go to Shopify.
This is an affiliate link.
Shopify tracks everyonewho clicks on my link,
and so every time someone purchases
a Shopify subscriptionafter clicking on my link,
I get a commission on that sale,
and in the past 30 days,I’ve made over $7700
with Shopify’s affiliate program.
And so, I have with me on this video today
my good friend Nick Torson.
He made his fortune bydriving traffic and customers
to his affiliate link using Facebook ads
and not YouTube traffic like me.
Here’s his story and why hechose affiliate marketing.
– [Nick] Hey everyone,my name’s Nick Torson,
and I just wanna give you alittle story of my background
getting started with affiliate marketing.
That’s me to the left at aflooring job I did not enjoy.
I had a real passionabout making money online,
I saw a lot of other people do it,
and I wanted to be like allthose other people that had
the nice cars, you know,they got to travel the world,
they got to spend time with their family.
I jumped around way too much.
I bought course after course after course.
I had the worst brightand shiny object syndrome
that I have ever heard of.
And that’s when I realized that,
if I were going to get anywhere,
I’d have to model the success of
other people who had done it before me.
– And so, this is exactly what he did.
He researched different affiliate programs
and discovered that credit card companies
have affiliate programs, andtheir commissions are huge,
as in you can earn over$100 every time that
someone signs up for a credit card.
And so, he went to Facebookand found other people
who were running Facebook adsto promote credit card offers.
And so, he went ahead and made
a better version of theirad and their funnel,
and lo and behold, he wentfrom making zero dollars
to over $100000 a month.
– [Nick] So, this is ourmethod in a nutshell.
We start by driving traffic from Facebook
to our presale page.
The presale page pre-qualifiesand warms the audience
so that when they get to the offer
and watch the VSL, they buy the product.
I spy on my competition.
I find ads that are currently working
and I ethically model them.
I test, test, and track my results,
and once I get somedata back from testing,
I trim the fat, which iskilling the losing assets,
and last, I optimize my assets
and scale my winners to infinity.
– Compared to reverse wholesale,
which we just talked about earlier,
you need way lessstartup money to do this.
But on the other hand, youhave to risk your money
running Facebook ads, andI know that a lot of people
don’t like doing that.
And it’s actually really funny
because I know that Nick usedto not like doing this either.
He started out really afraid
to run Facebook ads and paid traffic.
He didn’t wanna spend money on advertising
only to not make any money back.
And yes, in the beginning,as he was learning the ropes,
he did lose money, buthe refused to give up.
He pushed on throughuntil he cracked the code,
and now, well, he has no regrets.
Business three, startinga dropshipping store.
So, of course, my subscribershere at WholesaleTed
are probably not surprised at
the addition of this on the list,
since this is the main business model
that we teach here on this channel.
Like business model number one,
this is an e-commerce business
where you sell physicalproducts, like these, online.
Although, unlike that one, you need
a lot less startup money.
And as I’m about to show you,
just one store can make you
millions of dollars every year.
How it works is simple.
First you open an online store.
Unlike traditional retail physical stores
which cost hundreds ofthousands of dollars
to rent each month, a Shopify store costs
just $29 a month.
But how do you find itemsto sell on your store?
Well, that’s where thewebsite AliExpress comes in.
AliExpress is a website thatlets Chinese manufacturers
list the items that they produce for sale.
And so, because you’re buying it
directly from the manufacturer,
you’re getting them super cheap.
Like, take these cat coffee spoons here.
Now, if you’re a subscriberhere at WholesaleTed,
you’ve probably seen me use these
as an example multiple times,
and the reason for that is because
they’re actually an exampleof a real winning item.
And to be honest with you,I’m not particularly surprised
because, well, they are super, super cool.
And as you can see, these spoons
are selling on AliExpress for just $1.34.
Well, what you do is you go ahead and
relist these items in yourstore for a big markup price,
which you can do becauseyou’re getting them
so cheap to begin with.
You then run $5 a dayFacebook ads for this product,
targeting a very specific audience,
people that both love coffeeand that love their cats.
And here is where the magic happens.
When a customer comes to your store
after clicking on your ad and buys
one of your cat coffee spoons,
you don’t have to havethem sitting in your house
waiting for you to package them up
and then for you to shipthem out to the customer.
Nope, what you do is you go to AliExpress
and you order the item directly from
the AliExpress supplier,
and you give them your customer’s address.
They then package the item up
and ship it out to the customer, not you.
This is what dropshipping is.
It’s when you list an item that
a manufacturer makesfor sale in your store.
When a customer buys the item,
you buy it directly from the manufacturer
and have them ship itdirectly to your customer.
No need to risk money by buying products
to sell in advance.
When I first started dropshipping,
AliExpress didn’t exist,
so it was a lot harder toconnect with these manufacturers
and dropshippers back then.
But now, thanks to AliExpress,
anyone with grit and determination
can start a dropshipping store
that can be scaled to millions of dollars,
just like my friend Adrian Morrison did.
Here is his story and whyhe chose dropshipping.
– Hey, I’m Adrian Morrison,
and I have been doing dropshipping now
for over four years,and we have been running
multiple Shopify stores that have done
millions of dollars in sales,
up to $40000 in a day,multiple six figures per month.
Now, I got into dropshipping because
I wanted to build a real brand,
but I didn’t wanna have tostock stuff in a warehouse,
and I really didn’t wanna have to fool
with shipping and handling,
and I guess one of the things that
really kind of drew me to it
was the fact that I don’t have to pay
for any of my inventory up front.
See, if you buy a wholebunch of one single product
and if you don’t sell it,you’re kinda screwed, right?
With dropshipping, I can put
multiple things on my website,
test different niches,different product types,
and I don’t have to worry.
If something doesn’t sell,I haven’t lost any money,
I just move onto the next one.
My name’s Adrian Morrison,that’s my dropshipping story,
and I hope that this inspires you
to start your own dropshipping business
and create a successfule-commerce journey.
– And if you areinterested in learning how
you can start your own dropshipping store,
then you should be sure todownload our free ebook,
which teaches you the six steps that
six figure dropshipping stores follow
to make over $10000 a month.
If you would like toget an ebook yourself,
simply click on the link inthe video description below.
Business four, start an online agency.
So, my next friend in this video is Steve,
and he runs a hands-off, semi-passive
online marketing agency,
with a slight specialization in SEO.
And for those of you that don’t know,
SEO stands for search engine optimization.
See, if you come to Google and you type in
how to not get sued when dropshipping,
you’ll see that a blogpost from our website,
WholesaleTed, is sitting at the top of
the Google search results.
And that’s because we’ve made some
tweaks and modifications to that page
so that Google will choose it
over all of the other pagesout there on the internet,
and those tweaks and modifications
are called search engine optimization.
So, true story, I actually kind of had
an SEO agency at one point.
It started sort of by accident
after I outsourced my 9:00 to 5:00 job
and automated it.
It’s actually kind of a funny story
that I still feel a littlebit guilty about doing.
On the other hand, I think a lot of you
will probably identify with me on this,
so at some point, I think I’llprobably make a video on it.
But basically, during the lull between
my two e-commerce stores,
I had an SEO agency thatI was running on the side,
and it was pretty sweet.
I was making $3000 to$5000 a month with it.
What I did was I partnered with
other white label SEO agencies
that I found using siteslike BlackHatWorld,
which was quite different back in my day.
I have no idea if theproviders on BlackHatWorld
are any decent these days.
These agencies offered lowcost SEO maintenance packages
of around $200 to $1000 a month,
and honestly, they were pretty good.
These companies knew that there were
other agencies and individuals like me
that wanted to sell SEO services
to other customers and businesses,
but we didn’t wanna actuallydo the grunt work ourselves,
so they offered these packagesas white label services
so that we could resell them for them.
It was a win-win.
So, what I’d do is I’d goout there to local businesses
that weren’t doing so wellin the Google search results
and I’d say, hey, I will increase
your Google searchresults, and your traffic,
and your customer referralsfor a monthly fee.
Now, the tricky parthere is that, usually,
you need to have a huge portfolio of
customer success stories,because if you don’t,
why would someone chooseto sign on with you
when they could sign onwith a different agency
that had tons of success stories?
And that was one of the advantages
of using a white label service.
I was able to use theirclient success stories
and sign clients up for them
at a super high conversion rate.
And so, when a customersigned up for their
$1000 a month retainer SEO package,
I’d go to the whitelabel agency and purchase
their $300 a month package,
and keep the difference in profit.
Now, eventually I sold outof that business because,
the truth is is that I’mkind of a shy person,
which is why I like e-commerce so much.
But Steve is a lot less shy,
and Steven and his business partner
have built up fiveonline marketing agencies
that make millions of dollars a year
doing what I did, resellingwhite label services.
Here is his story and why heloves his business so much.
– We’ve been doingsearch engine management
for small businesses since day one.
At this point, that is reaching 15 years.
Just, so what do I mean by that?
We provide search engine optimization,
website development,reputation management,
social media management, all to these,
you know, these small local businesses
like your local pizzaparlor or hair salon.
And it’s one of the twoways that I got started.
The other was affiliate marketing.
And, amazingly, after all this time,
it’s still really the simplest
and highest profit marginbusiness that we have
in our total portfolio.
We’ve got five of these thatare out there bringing in,
you know, roughly $500000or so a year in revenue.
– So, for Steve, the profit margins
combined with the passive nature of
client monthly retainer fees
are why he is still inthis business 15 later.
All right, let’s move onto another
very different type of business.
Business five, start aprint on demand store.
So, the print on demand business model
actually has quite a fewsimilarities to dropshipping.
In fact, you can do what myfriend Adrian Morrison does.
He both dropships items from AliExpress
and he sells custom print ondemand items in his stores.
And as you can see, he has made over
$3 million selling print on demand items,
with his most successful being
his custom designed leggings.
So, for those of you that don’t know,
print on demand is whenyou create custom products
with services that will literally
print them on demand one at a time
when a customer orders them.
You see, there are servicesout there lik Printful,
Printify, and PillowProfits.
They will literally take apiece of artwork like this
and then print it onto itemslike t-shirts and mugs.
You can then list this item for sale
in an online store that you set up.
And yes, setting one upwith Shopify is very easy
and highly recommended.
Next, you run Facebook adsto your product promoting it.
This is the ad account for my good friend
Michael Shih’s print on demand store.
As you can see, he spent$3583.08 on this Facebook ad,
but he made $14436.78 back.
And so, when a customercomes into your store
and buys the item from you,
you then go to the print on demand service
and order the item.
They will then produce the item,
package it up, and thenship it out to the customer,
and a lot of this can be automated
if you are using a Shopify store.
As you can see, for a lot of people,
this is a great first business because,
A, it’s quite fun, and B,just like with dropshipping,
you don’t have to purchaseproducts in advance,
although, unless you are the artist
that makes the artwork,you have to pay for
the rights to use it.
You can’t just come in andcopy someone else’s art.
Not only is that unethical,but it is illegal.
Now, despite the factthat my friend Michael
has been in the internetmarketing industry
for over eight years,when he first discovered
print on demand, he fell in love with it,
and he ended up building a store
that did over $1 million in a single year.
Here is his story and why he loves
print on demand so much.
– [Michael] Hey everyone,this is Michael Shih.
I started doing internet marketing
about eight years ago,but the last four years,
I’ve focused mainly one-commerce and print on demand.
The reason why I love theprint on demand business model
is because it’s easy to get started,
and it doesn’t require much capital.
You don’t need your own inventory
or worry about warehouse space.
And the best part is,everything is automated because,
once you make a sale, yoursuppliers will do the rest.
They will create, package,and ship the products
on your behalf, and when itcomes to customer service,
you get an extra layer of protection,
because if anything goes wrong,
you can go directly to yoursuppliers to sort it out.
So, I think print on demandwill continue to grow,
and it will be one of thebest business models for 2019.
– So there you go, those aremy top five online businesses.
Let me know in the comment section
which one you like the most
and which one you aregoing to get started with.
And if you would likeeven more free training
about how you can start yourown money-making business,
then be sure to subscribe to WholesaleTed
for more great free videos.
– Hey everybody, it’s meSarah here from WholesaleTed,