Think about the question and the words don’t matter. Shutterstock Questions
It’s funny that my post on business opportunities, or passive income, side business, etc. has had the most views. I find that interesting since most media platforms, it is the dancing and shaking the derriere that seems to get the most views and those with business ideas don’t get as much attention. I know I still have a bit to learn about this whole blogging, YouTubing, or podcasting venture, but as I write and post, and of course read other posts, I am learning and seeing what gets the views.
Now, let me bring back the topic of a dropshipping business. I have continuously been reviewing and looking through tons of information and got some information from those that are willing to share their ideas about their drop shipping business, and I think I might just take the plunge. Now, I am no expert in dropshipping and I know I see that a lot, where companies tell people that “No experience is necessary” and that the business will run all by itself – like Ron Popeil’s famous quote, “Set it and forget it”. The thing is I know, and you know it’s not that simple. So, here are my thoughts on this dropshipping business, and trust me what I am about to say might be wrong, but I believe there is some truth behind what I am about to say.
So, let’s say whether you decide to build the dropshipping site yourself, or have someone build it for you, there are going to be additional costs beyond the cost to build. Shopify offers a free trial, and they have a wonderful video that guides you through all the steps in building your site– heck they even have spreadsheets you can download to help in the process. Of course, after the trial period, there is a cost, depending on what you want to have or better said, offer from your business. Shopify offers plans starting at $29 a month, and I believe they even have a lite plan that is $9.99 but for 14 days only. Anyhow, so Shopify as far as I can see looks good. Now, another company called Alidropship offers several services as well, one where you can build it, one where they build a custom site for you, and of course one where they build a copy of an existing successful site. The price ranges from a custom store between $299 and $899, an exact copy of a successful store between $300 to $739 depending on the additional features you want, and finally build the store your self which ranges from $89 to $899 (maybe a bit more). Of course, there are many other companies, such as Winx, Big Commerce, and Oracle Netsuite, etc. So, the help is abundant, the thing is making the right choice.
Once you have the site up and running, you need to start driving traffic to it – correct. Now, Alidropship offers a marketing package for an additional $200 which sets you up with Instagram and Facebook promo campaigns to get you off and running. Yes, there are tons of companies that offer their services to drive traffic to your website for a nominal fee of course. So that brings me to my idea and my point about starting a dropshipping business. The cost of driving business to your site, there is a cost and the amount depends on what one can afford. As I look through the many marketing companies, the average amount on return on investment according to them is, for example, one company says for every dollar you spend you will get five in sales, which they estimate takes anywhere between 2-3 months. Others say for every $100 spent on advertising you will make $200 in revenue; minus the costs could bring you in about $180 in revenue. So, it all depends on probably a lot of factors, type of ad, quality of ad, position, placement, target audience, and several other factors. A lot of companies out there can help, the thing is getting a company that delivers.
If I started a drop shipping business, this is my plan, well a plan I have in my head. I was thinking about spending $500 a month in marketing, you know driving traffic to my site for about six months, and any profits I get will go directly to more marketing. So, if I happen to make $100, $200, and up $800 of profits during the six months I would put that money back in. So if I invest $500, plus I happen to make $500 that month I would invest all $1000 back into marketing, obviously I have to take into consideration the monthly costs I have to pay such as a subscription or monthly plan, which can be for example Shopify $29 and up a month for membership and of course I believe there is a cost for a supplier or a cost for payment like Aliexpress, then there is Alidropship which they have an additional service for $39 a month if you include Sellvia – let’s just say for the sake of this that there is an additional $100 a month for membership and other costs to run the site. As I was saying my thought is if I decide to get a dropshipping site. I will invest $500 a month on advertisement for six months, any profits I will reinvest back into marketing. I would stop contributing my $500 after six months, but for the remaining six months I will continue to reinvest all profits back into the business that is one year of taking nothing for me. Hopefully, by then the business would be profitable to where I can start drawing from it. Now, my other thought was after the initial six months, continue for 30 months (2.5 years) to reinvest all profits back into the business and see if it can get to the point where I can quit my day job. If that happens, then I would dedicate my time of course to the business and add more products, maybe a blog or post socially more on social media platforms, maybe create a YouTube channel about my site and the products, something or other.
Not 100% certain yet, still trying to hash out the details and plan – I am sitting on the fence. Things could happen in my life; you know that could change the direction of my business plan. The thing is I would like to one day live comfortably without having to kill myself each day. I will keep you posted on my decision.
Thanks for reading and I leave you with this thought, “Opportunities do exist, it is a matter of doing the research, establishing a plan with safeguards in case something changes drastically in your life. The important thing is, once you have the plan, execute it – Just Do It! I am confident success will follow you”.