Update numero 3!
This time I thought I'd go over a few extra things like how I choose my products and my mindset behind it.
I'll keep adding little nuggets here and there with each update!
The Way I Choose My Products
Mine, and many successful entrepreneurs/dropshippers/Teespringers approach to finding successful ideas/products is based on analysing what's already currently working.
Find products that are currently killing it and see if you can make variations or twists to it.
Basically how Twitter, FaceBook, and Instagram were born. All these giants evolved off of each other, saw some part of the process that was doing real well and made their own model.
It's how big businesses are born everyday.
So how does this translate into Drop Shipping Research?
I'll illustrate with an example.
This popped up on my newsfeed a couple weeks back.
Pretty borderline copyright infringement BUT we can learn from this.
I thought about it, what if there were custom LED lights we can make from this? If I were to contact some suppliers, would they be able to do it? And if the answer is yes, well that's just opened up a HUGE new niche that I can work like crazy.
So I asked around and guess what? They can! I can buy them for $5-$10 and easily sell them for $30.
With that in mind, we can use photoshop to create some variant designs and try sell them on our store. If we start selling them profitably, we contact our custom supplier, work out a price and start shipping! There's really not much else to it.
Here's an example of what I mean, (I'm not using this - it's just an example).
It's good enough to get people to buy.
So now it's a matter of trying a tonne of different niches and seeing if I can sell. All based on some clever FB research.
But remember, the products that I use as a starting point MUST be hot right now and have a decent amount of # sold.
A post with a tonne of shares like the above is usually an indication of a well selling product.
Anyway back to our actual test,
This is the results of my last bunch,
Again, enable the last 2 columns. You can do this by clicking 'customise columns' from the drop down and finding, 'unique click to websites' & 'Cost Per Unique Click'.
This time, I'm ending campaigns well before the $10 spend.
I've spent $5-$7 on some campaigns and only received 1-2 clicks! That's an obvious loser.
For the same $7 spend on he middle campaign, I've received 18 clicks!
See the clear difference?
For me, it's all about the clicks, the more the better chance I have of turning a profitable campaign.
Even if my PPE costs are great, (see first column), it's all about the clicks in the end.
This time I broke pretty even, just a slight $15 loss which isn't too bad considering I spent over $100! I'm running a few different stores so here are the sales,
For the $34.95, the product cost me only $5.95!
That's almost $30 in pure profit which is huge.
Statistics - Numbers Don't Lie
So we've launched 23 campaigns and here are the complete stats,
FB Cost: $245.17
Product Cost: $200
Total Cost: $445.17
Total Revenue: $344.75
Total Profit/Loss: -$100.42
FB Cost: $111.10
Product Cost: $106.95
Total Cost: $218.05
Total Revenue: $202.85
Total Profit/Loss: -$15.20
THIS UPDATE, (TOTAL)
FB Cost: $356.27
Product Cost: $306.95
Total Cost: $663.22
Total Revenue: $547.60
Total Profit/Loss: -$115.62
We're mostly breaking even which is expected at this stage.
In the past I've launched 100 before a profitable campaign but once I've found it, it's made me a lot of money.
At this stage, we just keep moving forward and see where the data takes us.
Hope you guys are learning a tonne.
This is basically my everyday process till I find that one campaign that gets me huge ROI.
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