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6 dropshipping mistakes that kept me unprofitable

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6 dropshipping mistakes that kept me unprofitable

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820 segments

0:00

What's good friends and family? Welcome

0:02

back to another drop shipping video. And

0:05

I know my camera is [ __ ] dog [ __ ]

0:07

I'm going to get a new one. I know it

0:08

looks like a [ __ ] potato, but today

0:10

I'm going to just be talking about the

0:11

six biggest mistakes that have honestly

0:13

made me lose a lot of money in drop

0:15

shipping. And pushing past and learning

0:17

from all these mistakes is what allowed

0:18

me to actually succeed. And I know a lot

0:20

of people kind of have like a little

0:21

barrier they hit when they learn drop

0:22

shipping. They're like, "Fuck, like,

0:23

what do I do? Like, I don't know. Why

0:25

can't I make money?" And I guess these

0:27

are the six biggest things that I've

0:28

learned to actually cross that barrier.

0:30

So again, these are just some Q4 stores

0:32

that I've been starting to scale up for

0:34

Q4.

0:36

Just some refreshes so you guys know I'm

0:38

not a guru. Literally guys, like Q4 is

0:41

coming up and this is the easiest time

0:42

to make money this year. And like these

0:44

are all super new stores. I'm kind of

0:45

warming up before Q4 starts. And I

0:48

promise you guys, I'll literally be

0:50

coming back in a couple months showing

0:51

you how I did millions this Q4 with

0:53

these stores. So, now is the time. You

0:55

guys need to really pay attention to

0:57

these videos and just put into practice

0:58

what I'm teaching.

1:02

Okay, so back to this. Uh, let's keep it

1:05

quick. I'm not going to waste your time.

1:07

The first mistake, honestly, is not

1:09

understanding product saturation, right?

1:12

Ignore everything. Forget everything

1:14

you've been ever told about what a

1:15

saturated product is and all that stuff.

1:17

There's two types of people, right?

1:18

You've definitely heard this before.

1:20

One, oh, drop shipping saturated. All

1:22

the products are saturated. two,

1:24

saturation doesn't exist. Make good ads,

1:26

blah blah blah. Both are kind of right

1:28

in their own ways, right? Saturation

1:30

really doesn't exist, but there's a huge

1:32

butt. And what is that butt? Well, you

1:35

make better ads. You know, you learn how

1:38

to actually market and all that stuff.

1:39

But the problem is that doesn't really

1:42

apply to most people. Look at this right

1:44

here. Saturation doesn't exist if you're

1:46

[ __ ] really good at ecom and you have

1:48

a team and you have actual headcount to

1:50

rely on. But if you've done like

1:52

anything under like even like very low

1:56

eight figures, like honestly, you can't

1:58

market any single product that you want.

1:59

You're not good enough yet. And this

2:02

statement right here really just depends

2:03

on what level of ecom you're at. And I

2:06

would hear this when I was starting. I'd

2:07

watch YouTubers. I'd see on Twitter and

2:09

stuff people talking about, "Oh yeah,

2:10

saturation doesn't exist." And I'd go

2:12

and just test anything I thought was a

2:13

good product, right? You know, visual

2:15

problem solver, cogs are good, all that

2:17

stuff. But this thing right here is what

2:19

[ __ ] me the most. And that's cuz, you

2:22

know, if you see a good product and you

2:24

see a bunch of like competitors running

2:26

it up, scaling it, right? The

2:27

competition and stuff. And you know,

2:29

let's say they have like hundreds of

2:30

active ads. They're launching ads every

2:32

day and that type of stuff. I'll talk

2:33

more about that in a bit. But I would

2:35

try and compete with them, those people

2:37

launching hundreds of ads. And I'm just

2:39

a [ __ ] noob by myself. Like at that

2:41

time, like what am I going to do? I

2:42

didn't know how to market. I didn't have

2:43

a team. How can I compete with someone

2:45

who's launching hundreds of ads, has a

2:47

creative strategist, has a UGC team, all

2:49

this stuff? They have all these hires

2:51

and you're by yourself trying to compete

2:52

with them just because it's a good

2:53

product. You guys have to ask yourself

2:55

this, right? So, what does that mean? If

2:57

we kind of break it down, you have

2:59

beginner,

3:00

you have intermediate, and you have

3:02

advanced, right? Um, these are all like

3:04

kind of arbitrary, but if you're a

3:06

beginner, you kind of really want to

3:07

focus on untapped new products, right?

3:10

You're going to see a lot of these on

3:11

like Calo data, burner, that type of

3:15

stuff. And the way you know if they're

3:17

untapped is you check ad library for

3:20

competition, right? You just look up

3:21

your product, see how many competitors

3:23

there are. If you see there's a lot of

3:24

competitors, right? Scaling up ads, you

3:26

know, they're having really custom

3:28

content, they have voiceovers, UGC,

3:30

everything, ask yourself, can you

3:32

compete with that? This statement right

3:34

here, saturation doesn't exist, only

3:36

applies if you can improve something. So

3:38

ask yourself if you're a beginner, can

3:40

you improve upon someone who's already

3:41

scaling it up? They took all the good

3:43

ads. They have good custom content. Can

3:45

you really improve upon that? Probably

3:47

not. That's why it's good to do untapped

3:48

and new products. If you're

3:50

intermediate, right, you can do a mix of

3:52

untapped and kind of tapped products,

3:54

right? You know, maybe if someone's like

3:56

only relying on ripped content, you can

3:58

kind of come in, do some ripped, do some

4:00

custom content, compete a bit. Maybe if

4:02

they're a little new, like one to two

4:03

months only, their brand has been

4:04

running not that long, maybe you can

4:05

compete. But if there's a brand that has

4:07

everything, custom content UGC, same

4:09

thing like a beginner, right? If you're

4:10

competing against someone who has an

4:12

actual team while you're just some

4:13

newbie, intermediate, maybe done six

4:15

figures in revenue, you probably can't

4:17

compete with them. So for that case,

4:18

right, I would also recommend Callo

4:20

Burner, that type of stuff advanced,

4:23

right? You've done seven, eight figures

4:24

in ecom. At this point, you can

4:26

literally kind of test anything. This is

4:29

where the whole saturation isn't real

4:31

really applies to you. So if you're

4:32

here, right, you can literally do any of

4:34

the product research methods. You can do

4:35

ad library, burner method, all that type

4:37

of stuff. But it's really important to

4:39

ask yourself, what is the competition?

4:42

You know, how old is this product? And

4:44

can I improve upon something to break

4:47

into that market, right? If there's a

4:49

new product you see that's been a new

4:51

product to you, at least that you see

4:52

that's been around for like months or

4:54

even years and there's a lot of

4:55

competition, are you that good enough at

4:57

marketing where you can tap into a new

4:59

angle, a new market to bring that

5:01

product that's been around for years

5:03

back to life? Right? Cuz think about it,

5:05

regardless of if you know they've been

5:06

around for one, two years or there's

5:08

like 10, 20 competitors, regardless of

5:10

all that, you want to look at those two

5:12

things together and ask yourself, have

5:15

they tapped into everything that I can

5:17

possibly think of? And if they haven't,

5:19

can I reasonably tap into something new?

5:21

New angle, new market. Like I said, you

5:23

guys have to think of it this way,

5:24

right? If someone's been running a

5:26

product for a certain amount of time,

5:28

they are going to test a bunch of

5:29

things. If someone hits a winner,

5:31

they're going to test angles, ads,

5:34

everything. So, if someone's been

5:36

running long, right, the longer they've

5:38

been running, the more they've tested,

5:39

and that means the less you have to

5:41

break into with, right? So, you guys

5:43

have to ask yourself all these questions

5:44

and understand what product saturation

5:46

is. You want to understand what level of

5:49

saturation your product is at and how

5:51

much competition you can reasonably

5:52

compete with. Next thing, super basic,

5:54

wasting time on a landing page. I see

5:56

this with so many people, bro. They do a

5:58

homepage. They do a really fancy product

6:00

page, right? You know, you have the hero

6:02

section with your product, your offer,

6:04

and all this stuff. Then they'll have a

6:06

video slider right here. Then they'll

6:08

have 20 image with text right here. And

6:12

then they'll have a comparison table.

6:14

Then they'll have a review section.

6:18

Then they'll have a FAQ section. Like,

6:20

bro, you do not need to overdo this,

6:24

right? Like sure, this is good, but to

6:27

be honest, all that needs to be good is

6:30

this portion right here. You guys don't

6:32

really need to overdo is spending like

6:33

two hours making this whole section down

6:35

here. That's not what you want to do.

6:37

You want to make sure, right, you have a

6:38

good product, obviously. That means good

6:40

product, good product pictures, all that

6:42

visual. I've talked about it enough.

6:44

Good offer. Again, if you don't know

6:45

about this, go talk, go watch my other

6:47

videos. And that's all you really need.

6:50

everything else like this whole [ __ ]

6:51

right here. Um, obviously it matters,

6:54

but if you're gonna spend 20 minutes on

6:57

your hero section right here, right,

6:58

with your product pictures, your offer,

7:00

and all that stuff, and an hour down

7:02

here doing this, like you're [ __ ]

7:03

stupid. Like, what are you doing, bro?

7:05

Speed is everything, guys. So, what I

7:07

recommend is just have like a basic

7:10

template for one product that you use.

7:12

Let's say you tested a product, right?

7:13

Focus most of the time on here with your

7:15

product pictures, your offer, and that

7:17

type of stuff. And for this like bottom

7:18

fold section here where you have your

7:20

image with text, right? You have your

7:22

comparison table, reviews, FAQ. You

7:23

don't need to do all that. In fact, all

7:25

you really need is like one or two image

7:28

with text and like a little review

7:31

section, FAQ, and that's it. A lot of

7:34

people are like, "Oh yeah, I need to

7:35

install Luke's reviews. I need to have

7:36

like proper reviews." No, bro. You don't

7:38

need that. You can literally just use

7:39

like Shrine or some [ __ ] and just have

7:41

like a review slider where you just

7:43

write your reviews, like two or three,

7:44

and that's good. That's all you really

7:45

need. Like right here, this is what I'm

7:47

talking about. This little review

7:48

section right here, that's all you

7:49

[ __ ] need. You don't need to waste

7:50

your time scraping reviews and putting

7:52

it in. Like you don't. And a lot of

7:55

people are going to look at this and be

7:56

like, "Bro, what are you talking about?

7:57

Like your landing page is so important."

7:59

Guys, this is testing. When you see

8:02

validation, then you work on all of this

8:04

and make it really, really good. You

8:06

don't do all of that when you're

8:08

testing. When you're testing, all you're

8:09

seeing is validation. And you can scale

8:11

properly. You can get a bunch of sales

8:12

with just a pretty barebone site with a

8:14

good product, good product picture, good

8:16

offer and all that stuff. You don't need

8:17

to overdo it. The second you start

8:19

scaling, right, you're hitting those

8:20

multiple three figure days and all that

8:22

stuff, then you can start tweaking,

8:24

adding reviews, you know, adding

8:25

different sections based on psychology

8:27

and all that stuff. But speed is

8:28

everything. And why? If you're slow,

8:31

someone else is going to come in and

8:32

you're going to have more competition

8:33

and you're going to not be able to break

8:35

into it. Okay. Number three, validation

8:39

does not always mean money. What do I

8:41

mean by that? Just because you don't get

8:43

sales the first day doesn't mean the

8:44

product is cooked. Just because when

8:46

you're product researching and you don't

8:47

see a product doing [ __ ] 300k a month

8:49

doesn't mean it's [ __ ] right? So, let's

8:51

talk about it in two different ways. So,

8:53

there's validation in terms of product

8:54

research and validation in terms of

8:56

actually testing it, deciding if you

8:57

should cut or scale it. So, in terms of

8:59

product research, validation doesn't

9:01

always mean like, hey, this is selling

9:02

on Cal Data, this is selling on Tik Tok

9:04

shop, this is selling on ad library.

9:06

Your validation should simply come from

9:09

your drop shipping eye. What is that?

9:11

Again, go to my pre previous videos if

9:12

you don't know. But is it a good

9:14

product? Right? Is it solve a good

9:15

problem? Is it visual? Are the cogs

9:17

good? Is there a deep desire? All that

9:19

stuff.

9:20

When you are experienced enough at drop

9:22

shipping, you can look at really

9:24

untapped products. Whether it's just

9:25

scrolling on your Instagram, going deep

9:26

on the cal data. Um, you can find really

9:29

untapped products that aren't selling,

9:31

but you just look at them and you know

9:32

they're good. Right? When you do a lot

9:34

of ecom and you have a lot of stores,

9:36

you kind of realize there's a pattern to

9:37

it and it's really [ __ ] simple. Um, I

9:40

can right now for me, I can literally

9:41

look at a product. If you hide the

9:42

revenue, if you hide the views, I can

9:44

look at it and know if it's a winner.

9:45

And nine times out of 10, I'm pretty

9:46

sure I'm right. So, your drop shipping

9:49

eye is really, really important to hone

9:50

in on. And to develop it, you just got

9:52

to study winning stores more. Next,

9:55

outside of revenue, um, when you're on

9:57

burner method or you're just on like cow

9:59

data, look at views and look at

10:01

comments. This is pretty simple, so I'm

10:03

not going to talk too much about it. But

10:04

let's say you see a product that's not

10:05

selling that much. But let's say there's

10:07

good views and there's good comments.

10:08

Like everyone's asking, "Where can I get

10:09

this? This is so cool." The comments are

10:12

about the product, right? I talked about

10:14

this in my last video, but make sure the

10:15

comments are actually talking about the

10:16

product. They're showing interest.

10:17

They're like, "Where do I get it?"

10:18

That's validation there. And you combine

10:20

these two together to know if it's a

10:22

good product or a bad product without

10:24

ever looking at how much it's selling.

10:26

Next, when you're testing, what is

10:27

validation, right? Again, it's not just

10:28

sales, but testing is going to be like,

10:31

hey, my CPC is good, you know, my CTR is

10:34

good, my ad toarts are good. When I just

10:38

started, like I would always look at

10:39

validation in terms of am I getting

10:40

sales or not? Boom, cut, I'm not. But

10:43

you can look at your cost per clicks,

10:44

you can look at your clickthrough rates,

10:45

you can look at your ad to cards, you

10:46

can look at all these things and decide,

10:49

hey, there's no interest,

10:53

there's some interest, and there's a lot

10:55

of interest. So, if there's obviously no

10:58

interest, your CPC is going to be really

10:59

high. Your CTR is going to be low. But

11:01

if there's some or a lot of interest,

11:03

there's potential. Think about it. If

11:06

there's interest, they're clicking

11:07

through. They're interested. Why are

11:08

they not converting? Right? So, this

11:09

could go back down to offer product

11:12

picks, pricing, which is kind of a part

11:14

of your offer.

11:17

Offer/pricing.

11:19

It can be any of these things. I talk

11:20

about this a lot in my metrics video,

11:21

like my whole Facebook ads video, so you

11:23

can go check that out. But that's why

11:25

over here, right, I told you that

11:27

product, product picks, offer is way

11:29

more important because when they click,

11:31

this is all that's going to matter to

11:33

them, not these little [ __ ] sections

11:34

over here. So, being able to read this

11:37

and understand how can I improve and

11:39

should I cut this product or not is

11:40

super important. And I remember when I

11:42

was like starting out pretty early, I

11:44

would just like cut products when I

11:46

shouldn't have. And it's usually just

11:47

cuz like I didn't spend enough time on

11:49

the offer, the site. Um, so they

11:52

wouldn't convert and I thought, hey, the

11:53

product is just [ __ ] Um, like, you

11:55

know, my ads are [ __ ] I'm done. But in

11:57

reality, it's, you know, my offer, my

11:58

product picks, all that type of stuff.

12:00

Next, we have free cash flow. You guys

12:02

might not know what this term is, but

12:04

it's very, very important when you're

12:05

scaling. And I promise you, whether

12:07

you're scaling or you're going to start

12:08

scaling soon or you're just a beginner,

12:10

it's really important you understand

12:11

this. Um, a lot of people might get this

12:13

confused with profit. It's close, but

12:15

it's not exactly profit. Pretty much

12:17

your free cash flow is your profit that

12:19

takes into account money that's held.

12:20

So, your COGS, your ad spend, your

12:23

chargebacks, your returns, your

12:24

processing fees, all the money after

12:26

that, as well as money that's held. And

12:28

you're probably wondering what that

12:29

means. So, this basically takes into

12:31

account reserves as well as your profit

12:33

pretty much. And it basically takes your

12:35

profit and subtracts your reserves as

12:36

well, money that's held. If you're

12:38

wondering what reserves are, basically

12:40

Shopify can pay uh place like a 5, 10,

12:44

15, sometimes even up to like 30%

12:47

reserve on you where they hold this

12:49

amount of percentage of your funds each

12:50

time something is transacted. So let's

12:53

say you do a 100K month, right? Um

12:55

they're going to hold based on your

12:57

percentage, let's say it's 15%, they're

12:59

going to hold 15K for security. And this

13:01

is just so that you don't run away with

13:02

their money, right? Cuz let's say you do

13:03

100K and you transfer that 100K to a

13:06

bank account they can't they don't have

13:07

access to and you get a bunch of

13:09

chargebacks. They try billing you for

13:10

those chargebacks but they can't pull

13:12

anything from your bank account because

13:13

it has no money. Then what's going to

13:15

happen? Shopify has to bear the loss

13:16

themselves, send you to collections, all

13:18

that stuff. They don't want to do that.

13:19

They'd rather just hold a certain amount

13:20

of your money as like chargeback money,

13:22

refund money to protect themselves. And

13:24

this is unavoidable when you're scaling.

13:26

You will get this and it's usually for

13:28

anywhere from like 30 to 90 days

13:29

depending on like your chargebacks at

13:31

that time and all that stuff. Um, so

13:33

you're probably wondering like, "Okay,

13:35

it sounds pretty simple. Like that's not

13:36

that deep." But the problem is drop

13:39

shippers already suck at profit

13:40

tracking. Like a lot of drop shippers

13:43

will be like, "Oh yeah, I'm doing 30%

13:44

margin. Like I'm making hella money."

13:46

But when they see the bank account,

13:47

there's nothing. And that's usually just

13:48

because profit tracking itself is done

13:50

horribly. People just look at profit

13:52

trackers and assume that's their profit.

13:53

That's not the case. You have to

13:55

consider processing fees, right? Which

13:56

is going to be about like 2 to 3% for

13:58

most of you guys. Chargebacks and

14:00

refunds. Um, these literally come from

14:02

your profits. Minimum this is going to

14:04

be about like 5% if you're like scaling.

14:07

Like you have to take into consideration

14:09

all these things, right? This is already

14:10

almost 10% that most drop shippers don't

14:12

consider. They also don't half time they

14:14

don't calculate their costs correctly.

14:16

But on top of this, right, they'll do

14:17

this wrong. And then on top of this,

14:19

they'll have a reserve as well. And why

14:22

does that matter? Well, you're going to

14:24

[ __ ] spend on ads, right? You're

14:26

going to have a card to pay off. You

14:27

might increase the ad spend. You might

14:29

buy more inventory to forecast your

14:31

sales. You might hire a new agency to

14:33

make creatives for you. You know, you

14:34

might do these things. You might even

14:35

[ __ ] buy a car, right? But if you do

14:38

this incorrectly and you don't even

14:39

consider your reserve, you're like,

14:40

"Hey, you know, I've made 100k profit

14:43

this month." But you don't take into

14:45

consideration your fees, your

14:46

chargebacks, and all this stuff. Okay,

14:48

this is almost 10%, right? Let's say 8%.

14:50

Boom. You lost another 8K that you

14:53

didn't track. And let's say you have a

14:54

20% reserve. You lost another 20k that

14:57

you didn't track. So, let's say you

14:59

decide to spend this 100k on a car, some

15:02

hires, and it ends up totaling to like

15:04

90k,

15:06

but 20k of that isn't on hand. You only

15:08

have 80k on hand. How are you going to

15:10

pay this off? Your 10k in debt. You see

15:12

what I mean? This is very [ __ ]

15:14

important because as you scale higher

15:15

and higher and higher, each decision you

15:17

make is going to cost more and more and

15:18

more. And these reserves will also

15:21

affect you more and more, right? cuz a

15:22

15% reserve on a 100k a month is nothing

15:24

compared to a 15% reserve on a

15:27

million-doll month. And this was a huge

15:29

mistake I made on my first brand that I

15:31

sold. Um, I talked about it earlier on

15:33

in my channel. I had over 300 grand held

15:35

at one point and I made stupid

15:37

decisions. I made hires. I bought hella

15:38

inventory and I couldn't pay it off and

15:41

I had to kind of ask my supplier and

15:42

like go into a very scary situation to

15:45

kind of get that all cleared up. I don't

15:46

want to talk too much about that, but

15:48

don't end up in there. Otherwise, you

15:50

are going to be in debt and you're going

15:51

to want to rope yourself and your credit

15:53

score is going to be 200 and you can

15:54

never buy a Lamborghini. Next, bad

15:57

supplier, product quality, all that

15:58

stuff. Very straightforward. You want to

16:01

make sure products actually good. Low

16:02

COGS is not what you should be shooting

16:04

for. Like, obviously, you want low COGS,

16:06

but you don't want to sell some plastic

16:08

piece of [ __ ] if that's not what they're

16:09

expecting. Low quality and lower price,

16:13

please. Like, that's not the route you

16:14

guys want to go. sacrifice a couple

16:16

dollars extra for higher product

16:17

quality. Cuz let's say you buy some

16:20

lowquality [ __ ] and you save [ __ ]

16:24

three bucks per order, but that

16:26

lowquality product ends up giving you a

16:28

[ __ ] 5% chargeback rate and another

16:31

5% return rate. Okay, great. You just

16:34

lost 10% of your sales because you

16:36

wanted to save three [ __ ] dollars per

16:37

order. Instead of doing that, if you buy

16:39

a high quality product that might cost

16:41

you an extra $3, your chargeback will

16:43

maybe be like less than 1%, your refunds

16:45

will be less than 5% and you save out on

16:48

that 10% margin that you could have

16:49

[ __ ] lost. So product quality is

16:50

super important. And if you have a lot

16:51

of CBS, right, if you have a lot of

16:53

them, instead of 1%, if it's like 5%,

16:55

you're going to get kicked off of

16:57

Shopify payments or you can just get a

16:58

really really big reserve. You can get

17:00

even like a 30% reserve if your

17:01

chargebacks are high. So quality matters

17:03

a lot. Shipping times. A lot of

17:06

suppliers will get overloaded with a

17:07

[ __ ] ton of clients and they'll just

17:09

forget about your store and not ship

17:10

anything and they'll wait, you know,

17:12

seven to 10 days just to send the damn

17:13

product from China. And on top of that,

17:14

they won't even hide the tracking

17:16

numbers and they'll just show the China

17:17

tracking numbers to the customers. You

17:19

do this, boom, you're going to have a 5%

17:22

chargeback rate. You're done. Goodbye

17:23

Shopify payments. Hello, 30% reserve.

17:25

All this stuff. Forecasting. A good

17:28

supplier is going to front you money to

17:31

buy inventory. They're not going to be

17:33

like, "Okay, send me a $10,000 bill,

17:35

then I'll buy your stock." My supplier

17:37

will front me over $300,000 of inventory

17:40

before I pay. And that's cuz she knows

17:42

Shopify has a delay. It's going to take

17:45

some time for me to get the money. So,

17:46

she's just going to front me this

17:48

forecast this much of inventory cuz she

17:51

knows I'm going to sell it. If I'm

17:53

selling, let's say, 10 20k worth of

17:55

inventory a day, right? even more. My

17:58

supplier and your supplier should be

17:59

good enough where she will just go ahead

18:02

and buy you a certain amount of stock so

18:03

that she doesn't have to wait for you to

18:04

pay her and that's going to mean longer

18:06

shipping times and your customers are

18:08

going to be mad and your chargeback rate

18:09

is going to go up. Instead of doing

18:10

that, a good supplier is just going to

18:11

buy the inventory and trust you to pay

18:12

and you build that relationship over

18:14

time as well. Customization. Um, this

18:16

doesn't really have to do too much with

18:18

the supplier, but you want a supplier

18:19

with good communication. Um, because you

18:21

wanted to go to all the factories,

18:22

right? Let's say you're drop shipping a

18:24

product. you're drop shipping a product

18:25

and you want to customize it, add a new

18:27

mechanism. Let's say there's a product

18:28

you're selling and your competitors are

18:30

having a lot of negative reviews saying,

18:31

"Hey, this doesn't work, blah blah

18:33

blah." You want to be able to like talk

18:34

to your supplier and like have them be

18:35

able to communicate with factories to

18:37

customize your product, get a good price

18:38

for and all that stuff. This is going to

18:40

ultimately give you a better exit, which

18:42

I'm not going to talk too much about,

18:43

but honestly, these three are way more

18:45

important. They're going to be the most

18:46

important things. And with me, my first

18:49

brand I sold, I basically customized it

18:50

and held stock in the US. And I had to

18:53

do a lot of forecasting. I had to do a

18:55

lot of customization. And if I had a bad

18:57

supplier, I would not be able to do any

18:58

of these things. I would not be able to

19:00

forecast inventory. I had to ship to the

19:02

US. I would not be able to customize it.

19:04

She'd probably [ __ ] take 20 years to

19:06

ship my products, and I wouldn't even be

19:07

able to sell it. Like, it would be so

19:10

bad, bro, if you had a bad supplier. So,

19:12

you really need a good supplier. A lot

19:13

of you guys are probably wondering,

19:14

"Where do I get it?" Unfortunately,

19:16

guys, I do not going to I'm not going to

19:17

give out my supplier just cuz she is a

19:18

one ina million supplier. She helped me

19:20

customize [ __ ] She spotted me 300k. I'm

19:23

not trying to hand her out to the public

19:24

and have somebody scam her when she's

19:25

going to forecast your inventory and

19:27

stuff for you. So, only give it to

19:28

people in my membership. Um, if you want

19:30

to apply, you can book. There's a

19:31

one-on-one application down below. All

19:33

my like connects, agencies, suppliers,

19:36

hires, all that stuff are going to be in

19:37

that membership, all included for free.

19:40

So, if you guys want that, you guys can

19:41

apply. If not, like be really careful,

19:43

guys. I'm not going to put Zenropper or

19:45

AutoDS [ __ ] in my description

19:46

because that [ __ ] is just not a good

19:47

service. So ask around, make

19:50

connections, you'll find a good supplier

19:51

because that's how I found my through

19:52

connections. Next, scared to spend money

19:55

because you're a [ __ ] ass [ __ ] Bro,

19:58

when I started, I literally had 6 cents

20:01

in my bank account and I had to do some

20:02

unspeakable things to make the money,

20:04

okay? I was not sucking dick, but I had

20:06

to do some crazy things to make 2K just

20:08

to test products. And I was already at

20:11

such a low point. I had no [ __ ]

20:13

money. I was like, "Fuck it, bro. If I

20:15

go back to zero, I'll just kill myself."

20:17

Right? So, you have to be in the

20:19

trenches to kind of learn this

20:20

mentality. But you can't be scared to

20:22

spend money. Like, literally read this

20:23

[ __ ] College isn't bad, guys. I went to

20:25

college. I literally went to UC Davis.

20:26

But if you are going to go to college

20:28

and you're scared to spend money on a

20:29

product test, you're [ __ ] [ __ ]

20:30

bro. And when I started, right, um I

20:34

wasn't necessarily scared to spend money

20:35

on product tests. But when I did find a

20:37

winner, I was scared to reach out for

20:38

advice. I was scared to make hires. I

20:40

was scared to spend money to grow my

20:42

business. Whether you're testing,

20:44

whether you're scaling, you need to

20:46

spend [ __ ] money. If you're just

20:48

testing, right, you need to spend money

20:49

on products. You can spend money on

20:51

information, right? I'm not telling you

20:52

to [ __ ] buy my mentorship, but I'm

20:54

saying like if you see someone you want

20:55

to buy a mentorship from or you want to

20:57

pay them for a call or something, like

20:58

do it. Knowledge is more important than

21:01

just saving $100 in your bank account.

21:04

And if you're scaling, right, don't be

21:06

scared to pay your employees. You know,

21:08

if you hire a creative strategist to

21:09

make your ads, pay them 4 5k a month.

21:11

Offer bonuses. Give your customer

21:13

service team random bonuses to keep them

21:14

motivated. Like, I'm sure you guys to

21:17

heard I'm sure you guys have heard this,

21:18

but to make money, you need to spend

21:23

money. You can't be a [ __ ] guys. Like,

21:26

I'm going to make a mentality video

21:28

sometime, probably next video, honestly,

21:30

cuz it's so important. But I've just

21:32

seen so many people scared to just spend

21:34

money on tests, spend money on hires,

21:36

and all this stuff. And the reason for

21:38

that, I think honestly, is just cuz

21:40

they're scared of failing. They're going

21:41

to assume it's going to be an endless

21:42

loop and they're going to go into debt

21:44

and lose all their money. So, let's say

21:45

you're in the testing phase. You're a

21:47

newbie and you're testing products and

21:48

you're like, "Oh, I'm scared and drop

21:49

shipping is not going to work." And

21:50

let's say you're like minus $150 here

21:54

and then you make like 20 bucks and then

21:56

you're down like another 150 from ads.

21:58

Maybe make like 10 bucks. You're down

21:59

like [ __ ] 300. Like a lot of people

22:02

in this position be like, "Fuck, I'm

22:03

close to zeroing out my bank account.

22:04

I've never seen this much money come

22:05

into play." And a lot of this is because

22:08

people are so used to jobs and education

22:10

where things are guaranteed. The fear of

22:12

uncertainty stops people. When they're

22:14

at these points right here where they're

22:16

losing money and they're at rock bottom,

22:18

they're like, "Fuck." Like, you know,

22:19

nothing's guaranteed. Like in school,

22:20

I'm so used to just reading a textbook,

22:22

regurgitating my information, and

22:23

getting rewarded for it. I'm used to

22:25

flipping patties and getting awarded

22:26

[ __ ] $100 at the end of the day.

22:29

Everything is guaranteed. And with that

22:30

psychology, when you're hit with losing,

22:33

you know, a good chunk of your money and

22:34

you're hit with the fear of the unknown,

22:36

you're going to be [ __ ] scared. But

22:37

anyone who's made it with drop shipping

22:38

knows you literally go from zero to 100

22:41

and you can literally make 100k profit

22:42

out of nowhere. So this is literally

22:44

what a good winning product looks like.

22:45

Especially if you apply the [ __ ] I say.

22:47

You can make all this money back. But

22:50

imagine you stopped right here at one of

22:52

these points right here cuz you were

22:53

scared. But you know, you don't like

22:56

that meme. Hold up, I need to pull this

22:57

up. Like you guys have seen this meme,

22:59

right? Like this is literally drop

23:00

shipping, bro. Like imagine right here.

23:02

You're about to hit the diamonds where

23:04

you're like, "No, I lost $500,000. I'm

23:07

done." But look at this [ __ ] He

23:10

gave up. Boom. Left. But this dude, he's

23:12

in the trenches and he's about to eat

23:14

big. He's about to eat good. 100k right

23:15

here. This is literally the life of a

23:17

drop shipper. And on top of that, when

23:19

you're scaling, right, I've seen people

23:20

who go through this and still get scared

23:23

to spend money when they're scaling.

23:24

Like especially when you're scaling,

23:26

those are the people that need to

23:28

completely kill this fear of spending

23:29

money. Like I said, hires, info, ad

23:34

spend,

23:35

like all these things. You can't be

23:37

scared. You need to take risks. And the

23:39

more you make money, the more risks you

23:41

have to take. And that's why successful

23:42

people always are never scared of

23:44

spending money. They'll literally drop

23:46

$1,000 like it's nothing because they

23:48

know the return on investment on such a

23:51

small amount, right? Like if if you're

23:52

scaling, obviously like $1,000 really

23:55

isn't that much. Maybe to people

23:56

testing, but whether you're scaling or

23:57

testing, $150 isn't that much in the

23:59

grand scheme of things to how much money

24:01

you can make. Same thing here. Spending

24:02

$1,000 on a hire that could potentially

24:04

make you an extra 100K a month is

24:06

nothing. So getting over that fear is

24:08

super important. I had to learn the hard

24:10

way kind of, but I was blessed enough to

24:11

hit rock bottom already with 6 cents in

24:13

my bank account, so I wasn't even scared

24:14

of nothing. But this is a mistake I kind

24:16

of learned when I was scaling. So please

24:18

don't be scared, guys. Besides that,

24:20

guys, that's kind of it. Um, yeah, bro.

24:23

Like, these are the biggest mistakes

24:24

I've made, honestly. I can kind of

24:26

summarize it real quick for this guys.

24:28

The mistake here was just I was testing

24:30

the wrong products. I didn't have the

24:31

right eye. Wasting time on sites. People

24:34

would just launch products faster than

24:35

me and I couldn't catch on to them in

24:37

time. You know, validation as well. This

24:39

is kind of same thing as like product,

24:41

my product eye. It was just [ __ ] and I

24:43

didn't know what a good product was. I

24:44

didn't know what to do when I was

24:45

getting a lot of good sessions but not

24:47

enough sales. this stuff, bro. I just

24:50

wasn't profit tracking correctly. Ended

24:51

up in scary situations where I thought I

24:53

was in debt. Bad supplier, right? I got

24:55

lucky with mine, but a lot of people

24:57

will go through a good product, right?

24:58

They'll get a good product, but the

25:00

supplier will just [ __ ] them over and

25:01

make them lose a lot of money.

25:02

Obviously, this this is going to lose

25:04

you the most amount of money in the long

25:05

term. So, stop being a [ __ ] ass [ __ ]

25:07

and go make some [ __ ] money, bro. See

25:10

you guys in the next video. Goodbye.

Interactive Summary

The video outlines six common mistakes in dropshipping that can lead to significant financial losses. These include misjudging product saturation based on experience level, over-investing time in perfecting landing pages during initial testing, misinterpreting validation beyond immediate sales, failing to account for free cash flow and payment reserves, choosing poor suppliers leading to low product quality and bad shipping, and being afraid to spend money on necessary investments for growth. The speaker emphasizes that overcoming these mental and operational barriers is essential for dropshipping success.

Suggested questions

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