Hey, guys.
So today, I want to have an honest discussion with you about something that I know a lot
of people wonder about.
Why do gurus or experts make YouTube videos and sell courses teaching other people how
to make money online?
If it's so profitable dropshipping, why would you teach anyone else how to do it?
And if you can make tens of thousands of dollars a month selling on Amazon, then why would
you show anyone your secrets?
I hear this all the time.
"If I knew how to make $10,000 a month selling on Amazon then I sure as heck would not be
selling how to do it in a $67 a month course."
And something else people understandably worry about is saturation.
If channels like mine go around teaching people how to set up dropshipping stores, won't that
create a flood of competitors copying what I teach, saturating the market, and making
the business unviable?
And look, I understand, because when I first entered this industry, I had friends look
at me and ask me, "Sarah, what do you do?
I want to have your lifestyle too."
And I'd shy away from answering them.
Why?
Well, because I was afraid they were gonna come on in and steal my business away from
me.
But I was actually wrong and it was only later, once I became more established, that I realized
two things.
One, saturation is not a problem and it's not something that we need to be worried about.
But two, income diversification is a problem and it is something that we need to be worried
about.
So there we go.
I've already gone ahead and spoiled the video for you.
That is your answer.
But you probably want more of an explanation so let's jump straight into the video.
Why saturation isn't a problem.
So I'm gonna preface this video that I'm only talking about the two types of business models
that I teach here at Wholesale Ted and that is private labeling on Amazon and dropshipping
in your own store like a Shopify store.
And I wanted to note that because not all business models are above the problem of saturation.
I have personally witnessed more than one online business model become saturated due
to a flood of competitors.
For example, one business model is AliExpress dropshipping on Amazon.
A question people ask quite a lot on this channel is whether it is okay to do AliExpress
dropshipping in an eBay or Amazon store and the answer is no.
No, no, no, no, no.
Do not dropship from China on eBay or Amazon because not only are you gonna get bad feedback,
which is going to get your account banned, but because that market is 100% saturated.
Take Amazon.
On there, you can't even dropship from AliExpress because people are actually buying the products
and shipping them into the FBA warehouses.
Take the self-stir mug, a staple example here at Wholesale Ted.
On Amazon, it's selling for $7.99 with free Prime shipping because competition has massively
driven the price down.
After Amazon's fees of $5.30, the FBA sellers for this mug are only left with $2.70, yet
it costs $6.65 to purchase and ship it to the USA from AliExpress sellers.
So the people selling it are losing money when they sell it on Amazon.
So no, do not try to do AliExpress dropshipping on eBay or Amazon.
That is completely saturated.
But dropshipping in your own Shopify store, no, that is not saturated.
Or private labeling on Amazon, no, that is not saturated.
Even with YouTube channels like mine teaching people how to get started, there is still
tons of room out there for new sellers and I think that there probably always will be.
Why?
Well, it is for two reasons.
One, the barrier to entry is much higher.
Anyone can go and take an AliExpress product and slap it onto Amazon but manufacturing
and shipping your own products into Amazon, well, that is a lot more work.
But going out there and manufacturing your own products and shipping them into Amazon,
well, that is a lot more work and requires a much higher upfront investment.
Or take dropshipping in your own Shopify store.
Setting up that store and running tests for products is a lot more work than slapping
a product on Amazon.
Recently here at Wholesale Ted, we released our premium step-by-step video training course
called the Dropship Club.
It is a step-by-step video training course that teaches you how to create a dropshipping
store from start to finish.
And guess what?
There are over 30 videos inside of it which means that there are over 30 tasks that you
need to do to set up your own store.
And actually, there are a lot more than 30 tasks because of the fact that some of these
tasks, you're going to have to complete multiple times.
For example, one of the videos teaches you our methods for setting up Facebook ads.
In that, I use one product as an example.
Now, the video shows you how to do it for one product but you're going to need to go
ahead and do that for all of the products that you are testing.
Now, some of you may look at this as a bad thing.
You may think, "Oh darn.
I just wanted a free money tree where I didn't have to do any work.
I guess I'll go elsewhere."
And you know what?
You are more than welcome to.
But for everybody else out there that wants to build an actual business, then you should
be happy that this barrier is going to stop most people.
Realistically, as course creators, we are aware of this.
You might find that cynical but the fact of the matter is it isn't.
Consider how many books you bought with the intention of finishing and then didn't.
The authors of the book aren't stupid.
They are realistic.
They know that most people who start the book are not going to finish it.
Of course, they do their best to try to write it in a way so that it captures the attention
of as many readers as possible.
But even the most successful books only have a fraction of their readers finish it.
If Stephen King said, "Nope, I'm not gonna publish this book because most people who
start it are not going to finish it," well, that would be pretty sad for those that did
read it, did love it, and did actually finish it.
The same applies to those of us out there that create courses that teach these business
models.
We do our best to make them as fun and simple and easy to follow as possible, but realistically,
we know that most people are not gonna follow through and that is okay because for those
of you out there that do do that, you can create a business that can transform your
life and that makes it more than worth it.
People are busy.
They come home from school or work tired.
They want to build a business, but unfortunately, life just gets in the way and that's okay.
I don't judge anyone.
Life can be hard sometimes.
But here is something.
Even if the numbers of people that followed through with these courses suddenly quadrupled,
it still wouldn't matter because two, Amazon and Facebook are growing at an insane rate.
Consider this.
The last earnings report from Amazon revealed that they have increased their revenue by
42% and that amounts to tens of billions of dollars.
And consider this.
In the past year, Facebook has acquired hundreds of millions of users.
Every month, more buyers flood Amazon and every month, Facebook adds millions of users
to their database.
When you combine the insane growth of these platforms along with the barrier to entry,
you realize that saturation is not a problem at all.
But there is something to keep in mind.
While the opportunities to sell on these platforms increases at a much higher rate than new sellers
or advertisers, the opportunities to sell generic products or products that don't require
much creativity like the spatula no longer exist.
In the beginning when nobody was private labeling on Amazon, you could manufacture and produce
generic products like a spatula and make a killing.
But that is now no longer the case.
While the opportunities to sell products grow every day, this only applies to niche products
so don't start an Amazon or dropshipping business hoping to sell generic products.
Make sure you focus on selling niche items.
Unfortunately, most people aren't creative.
They just try to copy and sell what other people are doing and sadly, those people won't
succeed.
But if you focus upon finding niche markets, then you will.
So saturation isn't a real problem but something else is.
Why diversification is key.
As I've said before on this channel, I set up my first successful online store when I
was 16 and honestly, I wasn't dropshipping at that point.
I was probably not smart enough to be able to figure out what that was but I was lucky
enough to stumble upon a lucrative opportunity.
I would buy Nintendo DS games, which are video games from the USA, and then I would resell
them in my home country of New Zealand.
In the USA, a game might cost $20 but back home in New Zealand, I could sell it for $50,
$60.
Even after the exchange rate, the profit difference was huge so I started importing these games
in mass from the USA and reselling them back home.
And it was super profitable and as a 16, 17-year-old making bank, I got really, really lazy and
I paid a hefty price for it.
Because a few years later, Nintendo announced that they were no longer gonna keep making
Nintendo DS games and systems.
Instead, they were gonna replace them with this, a Nintendo 3DS.
For those of you out there that don't know much about video games, you might think these
don't sound very different, but trust me, they are.
And Nintendo announced something else.
They're gonna be introducing something with the new 3DS called region locking.
What that meant was that if I bought a 3DS game like this one here in the USA, that I
could not play it on a 3DS system made for New Zealanders.
In other words, Nintendo made it that if you bought your 3DS in New Zealand, that you had
to buy New Zealand 3DS games as well.
Whomp, whomp.
Just like that.
Just like that, my business was destroyed overnight.
And because I hadn't diversified or reinvested my money, I was kind of screwed.
It set me back a couple of years.
I had to go out there and learn how to source products in different ways using wholesalers
and dropshippers, which changed everything.
But guess what?
I should've already been doing that earlier on in my career because I should've been looking
for ways to diversify the way that I was getting my products.
I have never, ever forgotten the lesson of the importance of diversification.
And for me, it was the biggest reason why I started this YouTube channel and I'm sure
it's probably a big reason why most course creators and affiliates and YouTubers start
their own ones as well.
It's because they've already got a successful business and they want to find other ways
to diversify their income and business portfolios.
And because of the fact that we know that there's tons of room for new sellers when
you combine exponential growth with barrier to entry, we aren't afraid of creating some
new competitors.
So teaching it is a really fun way to diversify what we do since, well, I can't talk for other
YouTubers or course creators out there but I absolutely love talking about dropshipping
and Amazon.
The honest truth is something that I have learned is that you never know what's gonna
happen in the future so diversifying is a really smart thing to do.
For me now, because of this channel, I have skills in video creation, creating YouTube
channels, growing them, affiliate marketing, email marketing, and things like that.
And the funny thing is that those skills have crossed back into Amazon and dropshipping
as well.
Something to keep in mind though is that for most of you out there starting your first
online business, diversification is a luxury that you probably, unfortunately, can't afford
to have.
Instead, you should probably pick just one business model and get really, really good
at it.
Once you're really, really good at it, you can then look to diversify your investment
and business portfolio but that is something to think about in the future.
And you know, there's actually a third bonus reason why I teach others and I suspect other
experts and "gurus" out there are doing it as well.
You guys make teaching fun.
It may be cliché but it's absolutely true.
I absolutely love this channel.
I love the community that we've built here at Wholesale Ted and I love making videos
for you guys.
Every day, I get tons of really lovely comments, comments from people telling me that they
really enjoy the videos, comments from people thanking me for the information I've shared,
comments from people telling me that I've helped them, and comments from people telling
me that my videos have helped them quit their jobs and build a successful online store.
I'm a human being and so are other YouTubers out there.
I'm not some sort of a robot.
When you guys leave me a nice comment, it makes me feel great.
There are lots of other businesses that I could've diversified into and this isn't the
only one that I have, but thanks to you guys, this is probably the one that I am the most
passionate about.
So there you go.
There isn't some big conspiracy.
It turns out that the reason why we teach what we do is because of the fact that we
know that there's lots of room out there for new sellers and we just really love doing
it.
And again, a huge part of what makes this so much fun is you guys watching.
So thank you very much for every kind comment that you have ever left me.
It genuinely makes my day.
Thanks for watching this video.
If you liked it, I'd appreciate it if you gave it a thumbs up and subscribed to us here
at Wholesale Ted for more great videos about selling online.
And if you've got any questions, be sure to leave them in the comments section below.
Here at Wholesale Ted, we do get a lot of questions but we try to answer as many as
we can.
And if you would like to start your own online business but you don't know how, then you
should be sure to download our free eBook, "How to Make $10,000 a Month Online With Dropshipping."
You'll find a link on how to download this eBook in the video description below.
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