- Dec 22, 2017
I see many people posting about what business to start but no one really seems to explain HOW to start your business.
Here I tried to outline the exact method I use to earn an extra $4000/mo. I hope that you can benefit from these ideas and reach your financial freedom.
The best part is that this method requires only 4 hours/week to maintain. You put in an initial effort for a couple of months and then collect the fruits of your labor.
Step 1 - Create a store - I used Shopify to create my first store. Shopify basically is a e-commerce site creation platform. They have a very user friendly platform which you can use to create a functioning store in less than an hour.
Of course you need to spend around 4–5 hours to make the store pretty and customized.
Even if you don’t know how to do a minor tweak, there are many videos on Youtube which explains exactly how to do that.
If you want to see an example store you can check the link in my bio. Also, you can message me if you need help creating a store like that.
Choose your Niche - I’m sure that you have something which you are passionate about. Based on that you can target people who are also passionate about that specific field. You should have a clear niche where you aim for a low amount of people who are very passionate about the niche you are selling in.
If you are a parent, a great niche would be baby products. You might sell items which could make peoples lives easier.
Your story is your biggest selling point, there are millions of stores around with the same products. It is the ones who have a better story to sell, who wins the game.
So, don’t just create a baby product store and expect people to buy, tell them your story. Tell them how and why your products matter.
Find cheap products - Go to Aliexpress or Alibaba to find cheap products relating to your Niche. Now finding cheap products doesn’t mean that you should sell them cheap, it just means that try to keep your Cost of Goods as low as possible.
You should be able to find a product which is $3–5 on these sites and sell them for $10–15 on your site. We will talk about this in a second.
Also, DO NOT sell something which you don’t think is worth buying. The quality of your product is key to your success.
Dropship - Drop shipping is a form of sale without inventory. You present the product you want to sell in your own BEAUTIFUL store and the customer orders the product. Now that you have the clients address and received a payment, you go to Aliexpress and enter your CLIENTS ADDRESS and ship the product there.
Aliexpress handles shipping and you collect the profit in between, without even spending a penny on inventory.
Market - There are few ways to market your store and the more ways you use the better.
- Instagram account - This is a must. You have to have an Instagram account which adds at least 50 followers every day. Post 4–5 posts a day relating to your Niche and products.
- Facebook page - Here you will sell your story. Try finding people who are interested in the same niche. You want to create an environment where people are excited about your niche and your product will satisfy their needs.
- Influencers - There are many accounts on Instagram related to your niche which has +200K followers. You can send them an email which goes something like this. “Hi, I really like your content and feel like my products would fit very well with your follower base. How much do you charge for a shout-out.”
- They tell you how much it costs, and you send them the post you want them to share along with your URL which you want to attract traffic to.
This is your product:
This costs you $10.28. We know that golf is not a cheap sport. So, we can expect our customers to be willing to pay a higher amount than that. Let’s say we want to sell it for $30.
We can expect people to buy this mug because, it is
- A wonderful gift for a golf enthusiast
- Both functional and entertaining.
Now we have to market it. Remember we were talking about influencers right?
Here is a golf related Instagram account:
Another thing we have to make sure is that they have a high engagement rate. If they have 300K followers but only 5K people liking their content, it would’t make sense to put your money into.
You should aim for at least 20% engagement rate. Which is calculated by dividing the average like number by the total follower number.
Luckily these guys have a high engagement rate:
You can see that 71K people engage with this content. Which means that on an average post you will have at least 30–50K people to land their eyes on your product.
Now comes the fun part. Let’s say that they are willing to share your post and are charging you $15–20 for the post.
- There are 50K people who are seeing the post
- Even if 2% go to your website, that is 1000 people visiting the store.
- Even if you have a %1 sales conversion rate (you will have more, I’m just stating the worst case) you will sell 10 items.
- That is 10 x $18 = $180 in revenue - $20 for the shout out = $160 profit.
Once you hit a stable sale number/day, you can expect the following returns:
- 1 sale a day :$18 x 30 = 1 x $540 = $540/month
- 2 sale a day :$18 x 30 = 2 x $540 = $1080/month
- 4 sale a day :$18 x 30 = 4 x $540 = $2160/month
- You started with just $0
- You created a killer business in >10hrs
- In 3 months you can expect +$1000
- In 6 months you can expect +$4000 or even more
- Best part is, it takes 4 hours to maintain each week