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Most people quit dropshipping within about 90 days before they've ever made their first 10,000 pounds.
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And I think that the trap a lot of people fall into is that I built a seven-figure e-commerce business by avoiding traditional dropshipping.
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The secret for me was to build a real dropshipping business today, you're gonna have to approach it right from the beginning.
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And that comes down to most people who start dropshipping will quit within their first 90 days.
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So today, Lewis and I are gonna be breaking down exactly why that happens and what the difference looks like for people who make it versus those that quit.
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So Lewis, let's start at the beginning.
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What do you think is one of the biggest reasons that people don't even make it out of the first 90 days?
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Well, a lot of the time I think it comes down to just guessing and using gut instinct and just thinking that I assume that this product or this niche will work instead of using a proper selection process.
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And so I think if you're if you're doing that, you are basically operating with one hand tied behind your back right from the beginning because you are you're at a significant disadvantage to everybody who's researched a market and is going into it for reasons beyond just that kind of um, oh, I feel it will work.
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And I think that the people that really succeed at this long term, that the way they think about it is different.
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You know, they treat it like something that is serious, it's a real business, it's a you know, an eventual replacement for their job, for their career.
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It's not just like, oh, I'll buy a lottery ticket and see if I win.
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Like that's never going to happen.
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You know, the the likelihood is very, very slim.
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It's you know, completely against you that that percentage chance.
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So it's more a case of coming into this and knowing it's going to be tough, knowing that any business will be tough.
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But is the end result of a business like this aligned with the type of outcome that you want?
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You know, do you are you looking for a business that gives you location freedom and the ability to work online remotely and to run a business without you having to be physically present or, you know, show your face on camera or be there speaking to customers eventually once you've got the systems in place and you know the assistance there to be able to answer calls and things like that.
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So without having that clarity from the beginning, it's very easy for people to come in and waste weeks by going down the rabbit hole on YouTube or podcasts or just listening to things that maybe aren't aligned with the end goal that they want in the first place.
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So like they come in and they start testing random ideas and random products they found on AliExpress or Timu or wherever.
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And because somebody tells them, oh, you just run Instagram ads or you run Facebook ads or whatever to a product like this, you mark it up, you throw it on a Shopify stack, they kind of get caught up in the like frantic spiral of trying to create a business, but not really aligned to the end outcome that they want.
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And the the result of that is predictably, they don't make any money because it doesn't really work that effectively.
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And therefore they lose belief in like almost the whole business model, you know, the whole like e-commerce, they they can almost feel like the whole thing didn't work for them when it was really a very specific type of clearly suboptimal e-commerce that they went after, that they found it difficult with.
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So if if you can relate to that, if you've kind of dipped your toes in those waters and you think, actually, yeah, I've I've experienced that and it's um it's not all as rosy as they often paint the picture to be.
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That's why we use a specific set of criteria to validate the niche that we go into and make sure you're building your business based on defensible um foundations from the very outset.
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Like we know it's built on demand, we know there's competition there, we uh we know we're gonna make the right amount of profit per sale, like over a hundred pound profit per sale, ideally.
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And we just reverse engineer everything so that we build the business around an outcome that we want.
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You know, we're not building this because we just love building things.
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That might be the case, and that might be like a happy coincidence, but it's it's the fact that you you start with the outcome and say, I want a business that frees up my time, allows me to be present with my friends, family, travel the world, do things I want to do, have freedom, top up my income or replace my income.
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Therefore, what is the smartest step-by-step route to get there?
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And that is what we've reverse-engineered and created in a very sequential, simple to follow process.
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Now, it might, you know, there will be bumps in the road and it won't always be easy and smooth sailing, but that's the nature of business.
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So you might as well embrace it.
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But if you have a proven path to get there, it's a lot easier than just, you know, guessing in the dark.
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100%.
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Yeah, I mean, if you can guarantee that it's going to be difficult and it's not going to be easy because you're building an asset, you're building a business that's going to pay you for the long run, then what you want to do is try and make it as simple as possible, at least have a proven plan to follow so that you know the steps to take rather than having to also build up all the courage to do a business and then have to figure it out at the same time.
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Um, so we can speak, or I can definitely speak certainly from it, from a lot of um experience in doing exactly the wrong thing initially.
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So when you talked about not taking it seriously enough, just picking niches based on gut feeling, I resonated with that very strongly because I did the traditional type of drop shipping where you just go to a directory of of drop shipping products, choose one that looks great, set up a Shopify store, set up Facebook ads, and expect money to start pouring in the next day.
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Inevitably, it didn't happen that way.
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I had to learn the hard way.
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And essentially I did quit.
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So I did quit within about two months, within 90 days, because I think inevitably I had not entered it in the right, in the right way, not taking it seriously, not choosing products based on data.
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And so fortunately, I didn't quit drop shipping as a whole.
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I pivoted to something that did have a proven track record.
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But before that, I've been down this.
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So this is not coming from a place of uh no, we know better.
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It's you know, it's so easy to go into something just because you get you see the flashing lights and you you know you want an online income stream and not quite understand how important it is to go in with the right mindset and the right products from the very start.
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So say somebody goes into it, Lewis.
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Is there a trap that you think we need to warn people about uh to make sure that they don't quit?
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I think so.
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Yeah, having that clarity ahead of time that it is going to be a times a frustrating path and that, you know, not everything will just click into place at the very beginning is a really significant advantage to give yourself going into it.
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Because as long as you've set that expectation from the outset, when you do encounter those bumps in the road, those hurdles, you're not gonna be surprised and you'll think, ah yeah, this is what I was warned about at the beginning, and this is all normal, it's part of the journey.
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I think the the challenge comes if you are not taking it seriously.
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I think it's the the people that come into the world of e-commerce and they treat it like it's just gonna be a side project that maybe they dedicate a little bit of their leftover energy that they have after they've finished their day job and they've done all of the you know socializing they want to do.
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And it's like, oh, it's just a little project I kind of dabble with at the weekends and occasionally one evening.
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Like if you're expecting to build a business that easily that replaces your need to work a job for the rest of your life, do you not think everybody would just do it if it was that straightforward and simple?
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Like, of course, there is an element of front-loaded effort that is required.
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Um I'd argue nowadays, with the tools that we've got, access to AI and the kinds of like the roadmap we've laid out, it can be a lot more straightforward and a lot less time consuming than it used to be.
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But it still does require that heavy lift initially to say, like, let's get this momentum going, let's push this car so it's at least rolling before we can, you know, jumpstart the engine and then it carries us down the motorway for the rest of our career.
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Like that's the it's that inertia, that initial momentum you've got to create.
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And so I think that when you do that, and you can even if you're, I'm not saying dedicate, you know, a hundred hours a week to this, like just try and block out maybe a couple of hours a day, consistent daily actions when it comes to like reaching out to suppliers, uploading products, optimizing your ads, getting things working and moving, that will start to move the needle because you'll start to see like, oh, I got a few sales from that, and then oh, maybe I'll do more of that.
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And then you start focusing more of that, and it becomes a game.
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And the more you, more points you win in that game, the more sales you make, the more money you make.
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And it's like a game that actually affects your own bank account, which are the best kind of games to play.
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And so as it starts to increase and you start to compound and you think, wow, everything's working like well here, and you start to build up like a war chest, a pot of money that you can then deploy on other things as well.
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So, like, for example, you could say, well, I want to revamp the entire website and like have a complete migration to a different website theme or something.
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Well, you can now pay a specialist to come in and just execute that to a very high standard and get it done using the house money, the, you know, the money you've won in the game, the profits from the business, rather than just digging deeper and deeper into your own pockets, all that.
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So all of this, though, is built on that initial momentum.
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Without the seriousness of taking it seriously at the beginning, the results from that never come.
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And you never get that kind of snowball that compounds and builds and grows over time as it rolls down the hill.
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You just end up with like kind of a little bit of a you know, half-hearted failed attempt.
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And it's very easy to then just write things off as like, oh, just I didn't work for me, I'll move on to the next thing.
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But the the secret with this is even the next thing, it'll be the same story.
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Like what we're teaching here are principles that are across business.
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Like they're not just specific to the home tough advantage model.
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But if you can get these right, and that's why we say at the very beginning of our program, we start with the mindset, the foundations, the destination, the why, what's your reason, what's your driver, it makes actioning the like the steps so much more like it doesn't require willpower because you you're kind of being pushed to do it and you're being pulled towards whatever your reason for doing it is.
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So it's a it's almost like um a fuel that then fuels the entrepreneur throughout all of those tactical steps they have to take to build the business.
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But without the fuel, the car never starts in the first place.
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Surprisingly, a lot of people get it wrong.
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I mean, people listening now can probably think about a time where they've achieved something and they realize to achieve something that they're really proud of, they would have put a lot of time, work, effort into achieving that, whatever that was, whether it was in your career or a physical uh marathon that you've run or something that you're proud of that you've achieved.
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And there would have had to been at some point a level of exertion uh out of your comfort zone to be able to achieve that.
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And so I think sometimes it's it's surprising to me that when people come into drop shipping or they watch a few YouTube videos, they don't give it the same level of seriousness to know that they need to, if they're gonna achieve something amazing that's so life-changing, it's gonna need a level of exertion and hard work to get to that point rather than the maybe a protection mechanism that people put up and just try and dabble in things and just give it a try, run this on the side, see what happens, you know, an hour at the end of the day when I'm already tired at work.
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And that's just not gonna get you the kind of results that are gonna change everything for you.
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Um when it when you talk about seriousness and and how seriously you you want to take it, that felt quite easy for me to take it seriously, partly because of an investment I put in.
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And at no secret, I joined the dropship on lock masterclass to learn how to build a seven-figure e-commerce business.
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So that made me take it seriously because I had invested in myself, and also because I wasn't happy with the position I was in or the trajectory of the career I was in and the lifestyle that I was building for myself, I knew that I could channel that energy of discomfort into this new path.
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Uh and that gave me the energy to take it seriously and to make sure it worked.
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So if you can channel the energy that you might have in your position where you don't feel 100% happy, then you can put that into taking it seriously, making sure it works, and then you get the payoff at the end of it.
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Um, what do you think when it comes to people making sales there?
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Sometimes people approach us, they've tried doing drop shipping before, speaking with us, and they say about sales, maybe the sales have stalled.
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What do you think is happening specifically for people that are quitting if they haven't seen the sales they want to make?
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Yeah, well, I think the first thing, and I'll I will answer that and talk about like the sales and what I think the mistake a lot of people make when it comes to like maybe expect expecting sales to come out of thin air when there's no real clear plan to get there.
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I explain what I mean by that.
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But just want to loop back to something you mentioned there about um investing in yourself, therefore taking it seriously.
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I think that's a really like easy-to-miss trick.
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One of the big advantages, I think, of joining a mentorship program like Dropship Unlocked, coming in and, you know, almost like making a declaration to yourself that like I'm serious about this is the investment.
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Now, when you come in and you you you pay where you pay, you pay attention.
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You know, you put money into something, you therefore kind of force your mind to focus on it because there's an inherent desire to get a return on him on that investment out of it, isn't it?
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There's like the, you know, you don't want to have paid for something and then not take the actions that are required to get something up and running.
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So you kind of it forces you to pay attention.
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So it's actually a really good trick because obviously once your business is up and running, like our goal is that the initial investment to join our mentorship program is a drop in the ocean, is tiny compared to the amount of profit every single month your business kicks out going into the future.
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So it should become a hugely positive return on that very initial seed investment.
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But without that, you know, you could you're scrambling around to find stuff on YouTube, and you're always going to kind of hit a paywall at some point with like content creators where they give everything and then there's like there's no actionable steps to take.
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Like we try and provide as much of that as we can in the podcast, but like there's no substitute to live Q ⁇ A calls, being in there, like actually seeing your store, your ad account, giving you the templates, giving you everything we possibly can.
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And that I think is why it's one of the secrets as to why the people inside the Dropship Unlocked Masterclass do well, is because they've really sat up and paid attention because they know they've invested in it.
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Now, in terms of the like the stores that maybe store, uh, sorry, the stores that store before coming into um the program where they've maybe had a store, maybe using the model was products from China or or even not, um, a lot of the time it's because they had no real plan for getting sales in the first place, like they didn't know the numbers that they actually needed.
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Like when we talk to people in the program about calculating your breakeven target return on ad spec.
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So the number that you need to hit to make sure that you're at least covering your costs on ads, even before making profit.
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Like there's a very clear calculation and a balance, like an equilibrium that once you pass that threshold number, you start to generate profit.
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Without knowing that, you're basically just throwing a load of random ads up without any understanding of budget, testing, you know, the ads are kind of like out in the wild, and then just hoping that the sales you generate are gonna have generated more in profit than the amount you spent on ads.
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But like without a target, you're flying blind.
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You're just it's like flying the plane with no navigation on.
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You like you won't know where you're going.
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You're just gonna kind of keep and you might make sales as well.
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You might be like, well, I'm making loads of sales, but the bank account every month seems to be going down.
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And it's no surprise, is it?
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If you didn't know the metrics and the numbers you needed to hit going into it, then it's no surprise later on when you don't hit them.
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So if it feels like it's not working, or it feels like you've spent so much on ads and maybe you have made some sales, maybe you haven't, it's usually because there's no system, or at least even if there's a system, there's no targets in place.
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And so having that with the home turf advantage model, like we've massively simplified things so that it's not some really kind of long-term threshold that you have to hit before you make your money back in ads on the lifetime value of a customer.
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You know, with lower ticket products, it might be that you lose money on the first sale, you lose money on the second sale, you break even on the third sale.
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And then after that, hopefully you can sell those customers on your email list something else that makes you a profit because of the cost to acquire that sale in the first place was so high.
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With this, you might spend 50 pounds to acquire a sale on ads.
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You might spend 100 pounds to acquire a sale.
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But if you make 600 pounds profit on that sale, then you've broken even and made profit on that first sale.
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Like you've surpassed your target return on ad spend.
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Sorry, you've surpassed your breake-even return on ad spend, and now you're um you're hitting your target return on ad spend.
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So that's the key here is making sure that you come into this with a system, but also then knowing what the metrics are and what the numbers are that you need to hear at every stage of the business, not just in end profit, but like even in, you know, what should our click-through rate be, what should our impression share be?
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What should our conversion rate be on the store?
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Because then it allows us to really go in and kind of help diagnose if there's a particular problem or some bottleneck in the process that's causing a restriction of sales and figure out like what is that problem, how can we address it, and how can we really dive into the specific thing that's holding you back?
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Yeah.
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That was a huge breakthrough for me.
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That that one lesson about numbers uh in week five of the program, actually, when I when I was setting up ads for the first time and realizing that the numbers were on my side when it comes to selling high-ticket products.
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And because I was shown how to start selling products with an average order value of about 1200 pounds, when you get an average gross margin across your suppliers of 30%, it means that your gross profit per sale is 400 pounds.
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So then you've got 400 pounds to spend to acquire one customer in order to make profit for that customer.
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So when you realize that, and that was a big penny drop moment for me, because I tried, like you say, I tried the low ticket drop shipping beforehand, and my margins were so squeezed, I didn't have much money before I was in the red.
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But when I uh when I realized this, I was like, oh wow, okay, now suddenly I've got 400 pounds to spend per customer to break even.
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As long as I spend less than that, I'm profitable from sale one.
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And that was huge.
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So if you've never run ads before, it's important that you build in a bit of a margin for error.
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And that margin for error is there when it comes to high-ticket drop shipping because of how much you can spend per customer and also because you don't need to invest in stock up front.
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And that's the beauty of dropshipping.
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So for beginners like me, when I came into the high-ticket e-commerce world, I wanted that margin for error.
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I need, I knew I needed to learn.
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I was willing to learn.
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And so I wanted to have the numbers on my side.
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But that was a huge, huge breakthrough, big lesson for me to know why I could give myself the time and space to learn and have a margin for error and make sure I went past these 90 days where people quit because I put the numbers onto my side by going for high-ticket e-commerce.
00:19:08.799 --> 00:19:19.279
Um, for anyone that's listening and they they feel like they're resonating with some of these mindset tricks or uh lessons that we've we've shared about how to go beyond 90 days and make a real success of e-commerce.
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We've dived into the mindset of our most successful members in another episode.
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So episode number 152 of the Dropship Unlock podcast.
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If you like these kind of episodes, you want to know what our best and most successful members are thinking and what they do.
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We've recorded an episode that's called Inside the Mindset of Our Most Successful Members.
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So cue that one up after this.
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Um, but for this one, Louis, so for anyone that's thinking, I don't want to be another statistic, I don't want to be someone that quits dropshipping within 90 days, what would you say to that person listening today?
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Get serious, you know, pick properly and follow a proven plan because then you're not just guessing around in the dark.
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And you will find that that focuses the mind, especially if you've invested in yourself and you know, right, this is the thing I'm I'm gonna set my mind to for the next few months.
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At the beginning, if you go through our process, we we do something called the destination and the why um worksheet, which makes it crystal clear in your mind what your exact reason why is or reasons why.
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And they can be um push factors like what are you driving towards, or sorry, push factors as in what's pushing you to do it.
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Maybe that's um, I hate my job.
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I want to get out of the cycle that my family has been in for you know years and I want to break free of that.
00:20:37.279 --> 00:20:40.000
Or it could be a pull factor, which is like, what do I want?
00:20:40.079 --> 00:20:40.880
What do I desire?
00:20:41.039 --> 00:20:46.079
What kind of house do I want to buy, or car do I want to drive, holidays do I want to go and experience this for my family?
00:20:46.160 --> 00:20:49.440
Those types of things are more like they'll pull you towards it.
00:20:49.680 --> 00:20:57.119
And whatever it is that carries you through those tough early few weeks and months is really important to keep revisiting that.
00:20:57.279 --> 00:21:02.480
And then just remember as well, the first 90 days of this is very much front-loaded.
00:21:02.640 --> 00:21:13.680
So if we looked at a graph of like time of uh effort over time, your your effort is much higher at the beginning, and then it kind of gradually tails off as the systems start to pick up the slack and take over.
00:21:13.920 --> 00:21:16.400
But getting everything set up initially, yeah.
00:21:16.640 --> 00:21:23.680
Start start at the beginning just fully aware that that will be a bit of a slug to get it done.
00:21:23.759 --> 00:21:32.799
But it's it's exciting and it's fun, and you're building something, like you said, it's an asset for you in the future that can pay you money that you could sell one day.
00:21:33.039 --> 00:21:34.720
And it's uh it's exciting.
00:21:34.799 --> 00:21:38.559
And you'll eventually you'll look back and you'll wonder why you waited so long.
00:21:38.640 --> 00:21:44.000
And you'll find that you know the other people in your life start asking you like, How did you do that online thing that you're doing?
00:21:44.079 --> 00:21:47.279
Like, how did you manage to, you know, leave your job and now you're doing that full time?
00:21:47.359 --> 00:21:48.240
Can you teach me about it?
00:21:48.319 --> 00:21:59.200
And it it makes you realize like, okay, I needed to really like break out of the mindset that I was in and just head down focus for the first few months to get this thing up and running and build that momentum.
00:21:59.279 --> 00:22:02.960
And when you're In that stage, just remember that doesn't last forever.
00:22:03.119 --> 00:22:08.319
That's just the you know, the um amount of energy that's required to break free.
00:22:08.400 --> 00:22:20.559
Once you've done that, you can start to reinvest some of the profits from the business into the business, hiring virtual assistant, putting in in place automations so that actually it can be quite hands-off for you as the business owner.
00:22:20.720 --> 00:22:33.519
So if you're ready to stop going down the YouTube rabbit hole, stop guessing, stop trying to piece everything together yourself and actually start building something properly, then head over to dropshipunlocked.com forward slash start.
00:22:33.599 --> 00:22:37.680
We'd be delighted to help you there and we'll show you the exact roadmap so you can get started.
00:22:37.920 --> 00:22:38.400
Fantastic.
00:22:38.480 --> 00:22:42.640
Yeah, and that's exactly the roadmap that I followed as well to build my e-commerce business.
00:22:42.880 --> 00:22:50.319
Okay, now is that part of the episode where we're going to answer a question that's come in from a listener of a previous episode.
00:22:50.480 --> 00:23:04.079
So if you've had any questions come up in your mind while you've been listening today or watching, all you need to do is comment on the YouTube video version of this episode and we'll answer it in the comments, and we may also pick it up and feature it in a future episode.
00:23:04.319 --> 00:23:09.119
So that is exactly what Janet Wall 2096 has done.
00:23:09.359 --> 00:23:11.200
And she has a question for you, Lewis.
00:23:11.279 --> 00:23:14.000
So she's asked, I'm in my 60s.
00:23:14.319 --> 00:23:16.880
Is this something that I would be able to do?
00:23:17.200 --> 00:23:18.400
Thanks for the question, Janet.
00:23:18.480 --> 00:23:26.400
Yeah, I would say it's far more about your openness to learning and your level of commitment to building a business than it is your age.
00:23:26.559 --> 00:23:28.079
Age is just a number, as they say.
00:23:28.160 --> 00:23:35.200
We've got plenty of members who are in their 50s or their 60s and beyond who've seen real success building their high-ticket dropshipping businesses.
00:23:35.359 --> 00:23:41.279
So I would um I mean, you can look at some of the case studies, some of the interviews we've had on our channel.
00:23:41.440 --> 00:23:50.079
There's a specific um like playlist on our YouTube channel that you can go through and have a listen to their stories and you'll see that it's absolutely achievable at any stage.
00:23:50.319 --> 00:23:58.720
Just remember you you will be quite hands-on at the beginning when you're setting up your store, you're setting up your ad campaigns, but down the line you can start to outsource that.
00:23:58.799 --> 00:24:01.599
You can automate a lot of the day-to-day work once it's running.
00:24:01.759 --> 00:24:10.000
And then you yeah, you can bring in like freelancers for specific tasks or whenever you need extra help, there'll be support there to eventually get you out of it.
00:24:10.160 --> 00:24:10.880
But yeah, absolutely.
00:24:11.039 --> 00:24:16.000
Treat it as a new challenge and something that you know you can absolutely achieve regardless of age.
00:24:16.240 --> 00:24:16.559
100%.
00:24:16.799 --> 00:24:25.359
Yeah, it's when we're at the the meetups with members, when we get everyone together inside the program, you see that people are all different ages, all different backgrounds.
00:24:25.519 --> 00:24:31.359
And although Lewis and I, similar age, that doesn't mean to say that you have to be around a certain age to start.
00:24:31.519 --> 00:24:39.920
You know, if you just look at some of the photos or the videos where we've we've actually been with members in a in a in a single room, it's great to see the range of ages that we've got in there.
00:24:40.000 --> 00:24:42.799
So yeah, look forward to welcome you inside uh soon, Janet.
00:24:42.960 --> 00:24:43.440
Absolutely.
00:24:43.599 --> 00:24:51.680
So if you found today's episode helpful and you thought you got some value from the conversation today, we'd really appreciate your support, if you wouldn't mind.
00:24:51.920 --> 00:24:57.920
If you're on YouTube at the moment, just leave a comment below this episode with your biggest takeaway from this conversation.
00:24:58.079 --> 00:25:03.359
Hit the like button and make sure you're subscribed to the channel as well for more no fluff episodes like this one.
00:25:03.599 --> 00:25:12.640
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00:25:12.720 --> 00:25:16.160
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00:25:16.240 --> 00:25:21.519
And it just helps us reach more people who are ready to escape the nine to five and build time freedom the right way.
00:25:21.599 --> 00:25:25.359
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00:25:25.519 --> 00:25:25.839
Thank you.
00:25:26.160 --> 00:25:30.319
Thank you for joining us on this episode of the Dropship Unlocked podcast.
00:25:30.480 --> 00:25:35.599
We hope you are leaving with new insights and inspiration to fuel your entrepreneurial journey.
00:25:35.759 --> 00:25:42.559
To kickstart your e-commerce business, head over to dropshipunlocked.com forward slash start.
00:25:42.720 --> 00:25:48.799
It's the perfect place to start and get access to resources that will help you build your business from the ground up.
00:25:48.960 --> 00:25:55.599
And don't forget to hit that subscribe button for more episodes packed with strategies, tips, and success stories.
00:25:55.839 --> 00:26:00.160
Plus, if you enjoyed this episode today, a five-star review would mean the world to us.
00:26:00.240 --> 00:26:02.880
And you might even get a shout out on the next episode.
00:26:03.200 --> 00:26:05.519
Thank you for choosing to spend your time with us today.
00:26:05.680 --> 00:26:11.359
We can't wait to bring you more insight on the next episode of the Dropship Unlocked podcast.