Posted by Max Davis as Blog Optimization
I got a pretty funny email a few minutes ago that I thought I’d share with you…
The subject line of the email was “What The Fu## Should I Sell?” Use your imagination to fill in the blanks…
Typically I get emails from people who ask for advice, and most of time they are really nice about it. They tell me how they tried this or that and they just don’t know what they are doing wrong.
This guy’s email was no different. He just wanted me to tell him what he should sell online.
If you took my buying and selling websites training class, you know that one way to greatly increase your sites value & income from a website is to convert your site to a different revenue model.
For example, changing your site from a content site that makes money from adsense to an e-commerce site will typically double or triple your income (sometimes more). It doesn’t matter what your topic is, you can sell a physical product in that market pretty easily. It’s usually EASIER to sell a physical product online than an information product because there is a higher perceived value there.
The key to doing this is to make sure you don’t turn your site into a “super mall” where you sell 5,000 different products. Focus on just a handful of highly targeted products and promote them within the content of your site.
So, where do you buy these products to sell on your site? (Hint - right here…)
Some people like to use affiliate programs from places like cj.com to find products to promote. I’m not a huge fan of that method because you typically only earn about 5-10% commissions on sales, plus sales are not tracked very accurately so you only get credit for a portion of the sales you actually generate.
A much better option is to buy the products wholesale and ship them out yourself. (Or you can use a dropshipping company to fulfill orders for you).
We used this model for the website we sold for $575,000 and it worked very well. The problem is, it’s HARD TO FIND wholesale suppliers or companies willing to dropship products for you!
I did a lot of research when I owned that last website trying to find suppliers. There are two ways to find suppliers. You can search for hours online and “hope” to come up with what you are looking for, or you can pay a small fee to access a directory of suppliers already researched for you.
I like the choose the easy option, so I signed up for a wholesale directory (this one to be exact).
I bought a couple of “wholesale lists” which were a complete waste of time so don’t waste your money. There are a bunch of things I like about the wholesale directory though. Actually, I think I’ll just go ahead and show you what it looks like rather than try to explain it.
(I’m not sure I’m allowed to show you the members area or not, so if I get in trouble I’ll take down the video).
As you can see in the video, you literally have access to hundreds of suppliers, you can read reviews about other members who have used them in the past and there are all kinds of training & advice for members.
For the $67 bucks they charge, you get a bunch of valuable information. Especially since when you add one of those physical products to your site, you will be making 3-10 times more money from your website than you are making with adsense.
Don’t even get me started on selling your site!
If your site is making $100 per month from adsense, your site is worth about $1,500.
If your site is making $500 per month from physical products, your site is worth about $12,000.
Is it worth the $67 investment in the wholesale membership thing? Yup…
A few other cool things about that wholesale directory is you can find stuff to sell on ebay, so if you don’t want to manage a website, you can sell on ebay instead. I don’t recommend selling on ebay because you get VERY LOW profit margins. I love to buy on ebay, but selling is a joke.
Or, you can just buy stuff for yourself at wholesale prices as well. Why pay $289 for a pair of Gucci sunglasses when you can buy them wholesale for $141.85? That alone would cover the cost of the membership!
So, there’s my answer Steve (if you are reading this).
I’ve just given you the motherload of ideas for WTF You Should Sell ![]()
7 Responses
John
June 27th, 2008 at 1:16 pm
1I’ve owned an online store for about 2 years and I can tell you finding REAL wholesalers is the hardest part of the business. Searching online is rarely successful and wholesale lists are usually a waste of time. Why is this service any different? I just picked one item at random from that Empire Discount place.
CARS the Movie Collectible Diecast Asst: 18PK
Retail: $9.99
Closeout price: $3.90
$70.20/case
So at first glace it looks like a great deal. EXCEPT, you can find these things on sale for about $3 all the time at Walmart, Target, etc… The normal non-sale price is right around $3.69. So their “closeout” price really isn’t even close to being the real wholesale cost.
I’ll admit I only checked one item, but this one I knew the street price so it was an easy one to pick.
I’m still very skeptical of these online lists. I have yet to find one remotely useful. Most of the “wholesalers” online are really just retail stores pretending to be wholesalers. All the wholesalers I use aren’t mentioned anywhere on the net. It’s almost like they work in a bubble from 20 years ago.
I know you’re promoting it as an affiliate, and there’s nothing wrong with that so long as the service is legit. I’d do it as well. And I know you’ve purchased the service. But have you actually found and used wholesalers from the directory?
John
June 27th, 2008 at 1:28 pm
2Well, I looked some more and there appears to be items below the going street price. I guess buyer beware. I wonder how the other wholesalers look.
Max Davis
June 27th, 2008 at 1:35 pm
3Yes, I see the same thing. Not EVERY product will be hugely profitable and not every supplier will have the cheapest prices. You’ll have to browse around the hundreds of suppliers and find the best deals…
Nate Moller
June 28th, 2008 at 2:25 am
4I also get this question frequently as I teach people how to start online businesses. My best clients 9 times out of 10 start by selling something they already love to do or know something about: it speeds up the learning curve and is more like a hobby that makes them money.
I also recommend clients FOCUS: they are not going to be the next WalMart online or be the Jack of all trades. If they think they’ll just sell what’s hot on the market, they most often fail because they’re competing with people that have been doing ecommerce for years.
Finally, the BEST place I suggest to find suppliers is at Trade Shows for that industry. Yes, they may be harder to find; yes, they may cost money, but that is where the real manufacturers and dropshippers go to find their vendors. Instead of hunting them down, they come to you - they work out the deals - they want YOUR business.
Thanks for the post.
Brett
June 29th, 2008 at 2:50 pm
5I’ve always been an entrepreneur and unfortunately when I was 16 I had $3,000 saved up and I spend months looking for a wholesaler because I knew how many were out there that were crap… I ended up finding one that I THOUGHT was legit and we went through a escrow service… Long story short the escrow service was made up by him and I got screwed out of my $3,000(thats tons for a 16 year old). Expensive lesson but I just want every one else to learn from me and not have to lose money out like I did. I hope this service is legit because it is so hard for me to trust people online these days. Thanks for the article
Thanks,
Brett
BigMoneyBlog.org
Javier
July 3rd, 2008 at 2:52 pm
6This is actually a good idea. I’ve been reading a bit about how this process work, and I have a few doubts about how to implement it and some risks associated to this method.
-Customer service/support: as opposite to working with affiliates, when using dropshipping you will need to be in charge of customer service. This is something I wouldn’t want to deal with. What happens if you’re selling a product which you’re not an expert on? To use this method I guess you should have a very good knowledge on the product you’re selling. Is there any way to delegate customer service to the dropshipping company or directly sale in their name to avoid dealing with customer problems?
-Warranty: I guess that you should deeply study how the wholesaler’s warranty works to make sure to not have any problem with the customers. The same for the returns-refund policy
-What are the legal issues to have in mind? May I use this method to sell US products if I don’t live in the US?
build an online shop
September 28th, 2008 at 5:09 pm
7There is a great source at paypal.com - log in there and check out the shops section. You can browse shop categories and see how many sales a particular online shop has made. Its a great resource.
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