After scouring the internet for passive income streams I decided to take it up a notch with some more high reward methods but still with little risk and costs. And in this day and age there is no shortage of opportunities to create streams of income with minor startup costs. So one of the most popular ways to create an e commerce business is through Amazon and their fulfilment service mostly due to the simplicity of it. What’s most appealing to me is the it’s location independent and you can operate it from almost anywhere in the world if you have access to a computer with a decent internet connection.
I’ve talked before about truly diversifying your investments in order to avoid getting screwed over if the market crashes and you have all your investments as paper assets. Paper assets are great to invest in but shouldn’t be the only asset class to generate an income for you, but should rather be one out of at least four. The three other if you follow Robert Kiyosaki’s advice are commodities, real-estate and owning a business. And the beautiful thing with being alive in this age is that it’s never been more accessible to become an investor in all of theses asset classes even if you don’t have a lot of money.
Right now, the biggest opportunity to build a legitimate long term passive income business is through FBA, Fulfilment by Amazon. The Amazon brand is on track to become the world’s first trillion dollar brand and they were responsible for a staggering 44 % of all ecommerce sales last year. Just think about that for a second. Almost half of the products purchased online last year in the US were bought on Amazon.com.
What most people don’t know is that Amazon don’t sell their own products. In fact they sell your products for you and just take a small fee in return. Basically, this means Amazon are pretty much inviting you to open a store in their mall (the most popular mall in the world) that gets over 180 million shoppers every single month! So this is not a way of making a quick buck the next 30 days, but an opportunity to build a business for the long term that can generate 6-7 figure income if you follow the right steps – And I will give you those steps.
So what amazon has created is simply put convenience for anyone who wants to sell basically anything. if you’re going to sell a product, you won’t have to pack it, send it or even handle customer complaints and potential returns. This will all be managed by amazon and their fulfilment service 24 hours a day 7 days a week. And you’re able to take advantage of this service from almost anywhere in the world as it’s location independent. Which means I can chill in Sweden and write to my supplier in China, or for that matter have my VA write to them, and tell them to send my products to an amazon warehouse in the U.S. Most of the suppliers will be able to provide private labeling and you can put your own brand on there without any hassle for you.
So before choosing what product you want to start selling, you need to know your market. Or more specifically you need to know how big of a demand there is and how much competition there is. And a common misconception here is that you need a unique product that no one else is selling on order to succeed. This might work one time of a hundred but in reality it’s pretty much the opposite. You want to focus on selling something that has already been proven to sell well in a market that’s not too saturated.
There are tools you can use which will help you find that perfect product and one of the best tools I’ve found is jungle scout.
It’s an extension to your browser and you’re able to use it on the amazon site. It will compile all the stats so you can actually see the sales, revenue, rating and amount of reviews and this information is golden when deciding what product to launch. Another tool is unicorn smasher, which is completely free at the moment so I suggest you install that one to play around with, but it’s not as comprehensive as the jungle scout tool. The element of risk will be cut dramatically and instead of hoping that your product will sell a lot you can use these tools to make sure it’s a good market to sell in. The uncertainty and fear of losing the money you’re to invest in getting the products will go away and instead you’ll be able to know what’s certain to make you a lot of money and what’s not.
So let’s say you want to start selling wine glasses.
Just google wine glass manufacturer and one site that will constantly pop up on the first page is Alibaba. Alibaba.com is the biggest and most trusted site that can manufacture and private label your products and is also the one I use. The costs of products will most of the time be significantly lower compared to manufacturer’s close to you and you’ll be surprised of how good the quality is. Y
You want to make sure that the supplier is trustworthy and have the gold medal, which means Alibaba trusts them and they have been on the site for a long time with successful transactions. The second thing you want to look for is the crown which is trade assurance and means that if the supplier for some reason don’t produce the products you’ve purchased, Alibaba will make that up to you and pay you the full price of the product.
Release that entrepreneur inside you and reach out to a few of suppliers that has the product you want to sell, and ask them to send a sample to you so you can get a feel for the product yourself. You can even ask them to put your logo on it but they might charge you extra for that.
However in order to really increase your sales and stand out from the crowd, you want to differentiate your product from the rest in some way. You want to grab the attention of potential buyers when they scroll through the Amazon website so let’s take a quick look at wine glasses on Amazon. There are loads of nice glasses but it would be hard to compete with the regular looking glasses. For example a steel wine glass would stand out from the rest right? So you can use the jungle scout tool and see how it’s doing and it looks like they’re killing it making over 10 grand a month in revenue with great reviews when writing this script.
So Let’s head on over to Alibaba and search for steel wine glass. And you can get that very same set of steel wine glasses for between 1.8 to 2.2 dollars depending on the quantity of your order and they are trade assured and gold supplier which is great. And they are selling a set of two for 18.95 on amazon which means the margins are phenomenal.
But what is going to make you a whole lot of money is not only selling one product, but having a brand. A line of products that are all related to one another. So to expand this wineglass brand you could see if there are any similar products to sell. And this is great because amazon shows you what other people have bought along with this steel wine glass and for this occasion it’s beauty – a steel martini glass. So there is your first idea on a second product for your brand.
Have your own logo and name that people will recognize so that you can instantly build brand recognition. It’s super simple to use Fiverr for this and will save you a lot of money. Just look for graphics and design and then choose logo design. Choose what kind of logo you want along with your price range and delivery time. If you see anything that you like, go ahead and make an order and you can tell them exactly what you want your logo to look like, and in a few hours could have a high quality logo to put on your products. And if you don’t like it you can ask for a refund no questions asked.
Along with your new high quality logo you should also invest in getting high quality pictures of your products as this is of huge importance when people decide if they want to buy from you or not. The good thing is that it’s a one time cost and you can find great deals on that as well. You do need to spend some money to buy and ship the inventory and get everything rolling, but once the sales starts to roll in, the income will exceed those costs and you can now reinvest money back to your business as well as taking out for yourself.
I suggest you get a virtual assistant that can do most of the time consuming but important tasks such as ordering new products to make sure you never run out of stock as that can be brutal in terms of your rankings on Amazon. This will free up your time to focus on other aspects of your business or take an extra walk on the beach. There are many sites where you can find VA’s and I recommend upwork.com. It’s one of the best and most trusted sites when it comes to hiring competent people online. Head on over to browse and find the virtual assistants.
But instead of chasing them to work for you, you can post a job and tell them about your project and you’ll get contacted from the people who are interested. A quick tip when creating the job description is that you want to finish it or possibly include somewhere in the middle that you will not consider applicants that doesn’t start off their first line of response with “attention to details and fluent in english” or something like that. This will let you know who actually took their time to read the description and is a serious candidate and who didn’t so you can eliminate bad ones from the start.
So this should give you a pretty good idea on what tools you need to find a good market, how to look for suppliers and create a product with private labeling, differentiate it from the rest, and eventually create a brand from your products. You want to take all the guesswork out of it and be confident you’ll make a lot of money in the long term. The goal should be to set everything up to a system that will generate sales and money with little upkeep from your part, and you can instead focus on expanding your line of products, creating new brands or practice your diving skills in thailand.
There is so much information about this to cover and it’s impossible for me to include it all in one youtube video. You can google or try to find other youtube videos that might explain this further in detail but it’s difficult to get a lot of reliable information from different sources. So what I did before I got involved in FBA was to enroll in courses just to be confident in minimizing mistakes and really eliminate the factor of risk as much as possible. If you’re serious about starting a business and creating a legitimate passive income stream that pays you money every 2 weeks I really recommend you to enroll in at least one course before starting.
When I enrolled I saw it as investment that would save me money in the future and instead pay me back many times, and the best course I came across was this one called FBA freedom formula. There are loads of courses out there that are okay but this one covers everything you need to know from validating your product idea, finding trusted suppliers and how to communicate with them, how to increase in rankings using SEO, having an explosive launch as well as the often overlooked aspects such as sales tax and how to cut your income tax and so on. The things I talked about in this little video are all thought in this course along with much much more.
It’s a big course of almost 12 hours of material and could be life changing if you take action and follow the advice. I would advise you to do it sooner rather than later because it is getting more crowded. But you will without a doubt stand out from the rest and outsmart the competition with the marketing strategies and methods to launch that are thought in this course and it’s definitely not too late to get into this.
And I actually reached out to the creators of this course Evan and Benji, who has just piled in and crushed it on Amazon. They made over $150,000 in just a month and now each own 7 figure businesses, and I told them that I wanted to share this on my channel. And believe me there are some courses out there priced $1,200 or $2,000 that doesn’t contain this amount of valuable. I mean the marketing and launch strategies alone are worth more than that.
BIG UPDATE! The demand to enroll in the Freedom Formula course became so great and they increased the price. Congrats on the first few who joined the class at a discounted price!
The good news is that you can now get their free $124,000 in 30 days training here.
Let’s make 2018 the best financial year so far!