Transcribe of “Top 3 Ways to Make Passive Income Online”
– Hi guys. Neil Waterhouse. Just got back from spending a week away speaking to Sydney, Adelaide, Melbourne, Brisbane, eBay, Amazon, made up groups. And after speaking to literally hundreds of people, I thought I’d share with you, the top three online income strategies. Which have given the most success.
The top three online income strategies
Not just for us, but for the majority of the members who I’ve spoken to in the audience and in the events and after the events. Now, there’s nearly over 5,000 members in the four groups now. Before someone sends me an email, asking if I have spoken to all 5,000 members. No, I’m definitely not saying that so please don’t send an email. I’m just saying from the people who I’ve spoken to what I’m going to share with you. Now, are the top three strategies which we’re gettin’ the most success from and also from the people I’ve spoken to. Their also getting the most success from as well. So, a lot’s changed over the years.
You could either sell your own product or you could sell somebody else’s using affiliate marketing
I’ve been employed now for over 30 years, and selling online for over 20 years, since 1998. Back when I started selling online, there’s basically just two choices. You could either sell your own product or you could sell somebody else’s using affiliate marketing. Now, for those who don’t know, what affiliate marketing is. Amazon was the first to introduce affiliate marketing back in 1996 with their associates program as they called it.
Amazon ,the first to introduce affiliate marketing
If you join Amazon’s associates program, you go onto Amazon. Get links to all the different products they sell on Amazon and then you could promote those links in all different places, n’ every time someone clicked on one of those links and purchased, Amazon would pay you. That was the start of affiliate marketing and that was back in 1996.
Affiliate marketing really took off
Of course affiliate marketing really took off and everyone started advertising all different affiliate links on Google and a whole sector of search engines as it was back then, but, unfortunately, Google took a disliking to affiliate marketing, as it created vast amounts of duplicate content in the Google search engine. Google hates duplicate content.
Google hates duplicate content
So after that, Google started introducing algorithms to get rid of the affiliate marketers. These were known in the industry, of course, as the Google slaps. Now, these Google slaps were viscous. People that had six, seven, eight digit affiliate marketing businesses, were goin to bed at night with businesses generating like, literally thousands of dollars profit per day only to wake up and it was all gone. You know those times in life when something big happens you remember exactly where you’re standing, you know, when you heard that news.
I can’t say I’m a huge Royal fan, but I remember exactly where I was standing in my living room when I heard about the death of late Diana. I also remember exactly where I was standing when I got the call from my office about the first Google slap. It’s funny looking back now, 10 years later but I was in Chicago at a Perry Marshall, Google, Edwards, round table meeting event. And in a break was staring at a table full of fruit and apple and apricot danishes. And then all of a sudden, I gotta call from our Google rep to announce the Google slap.
Google rep to announce the Google slap
Now, all of a sudden the excitement of the apricot danish disappeared and I immediately logged onto my laptop to check our sales. Thankfully though we hadn’t been hit, as we’re selling our own products and not doing affiliate marketing. Our sales actually increased that night as a lot of our competitors they just simply disappeared.
Number one hottest strategy today, is dropshipping
But anyway, back on track, the number one hottest strategy today, is dropshipping. More and more online sellers as well as bricks and mortar sellers are moving to the dropship model as it’s far easier on cash flow compared to importing and FBA et cetera, as you don’t need to pre-purchase any upfront inventory. Which means anybody can build a dropship business. As you can start with less than a hundred bucks.
Dropshipment was always the holy grail of selling online as you can use virtual inventories. But back when I started, we didn’t have the technology available that we have today to make dropshipping work. Fast forward to today, and a lots changed with dropshipping over the years. Not only the last few years. Today, we’ve got technology which simply wasn’t available just a few years ago.
The two big problems with dropshipping in the past
The two big problems with dropshipping in the past were overseas suppliers taking too long to get orders to local customers. And also not knowing if your suppliers have stock. Today though, you only use suppliers in your own country. Which means customers get their orders fast. And the other big game changer with dropshipping is you can now purchase from local suppliers, which are websites which show online if they have stock available.
Use software like Scarcity Manager
And then you can also use software like Scarcity Manager cause you continually check your suppliers inventory and if your suppliers run out of stock Scarcity Manager will automatically make your listings go to zero so you don’t oversell. Again this technology simply just wasn’t available just a few years ago. Today more and more suppliers are also upgrading to these dynamic websites. So literally every day there are more and more dropship suppliers available all over the world.
Number two way to make money online is private labeling
Now my number two way to make money online is private labeling. And again dropshipping has enabled almost anybody to get into private labeling without havin’ to mortgage your house. In the past, we’d often need to spend tens of thousands of dollars importing items so we could private label ’em. But today, with dropshipping, you can use your local dropship suppliers and then private label your top selling dropship items. You can then get your local dropship supplier to send you just one piece of your top selling dropship item and then you can put your private label on that one piece.
Private labeling your top selling dropship items
You can then photograph it and list it. It’s almost impossible to lose money doing this strategy as you’re private labeling your top selling dropship items. Now even if you’ve made a complete dog’s breakfast of your private label, you can always peel it off. And as it was, one of your top selling dropship items, you can simply just resell it. But there’s no need to have anything but a professional, crowdsourced, private label. These days you can use companies like Squadhelp, et cetera to come up with some amazing private labels, and for not much money.
The third way to make money online is to import from other places
Now, the third way to make money online is to import from places like China, Milaysia, Vietnam et cetera, but today, to take out all the guess work, only import your top selling dropship items. You no longer need to jump on planes and go to the Canton Show and all this kinda stuff, tryin’ to work out what products to sell. You can just take your top selling dropship items and use those.
Dropship items are the items that you’re already selling
The great advantage of this is, these dropship items are the items that you’re already selling so when you import them, you already have the items listed live. That in there changes, you increase your margin by getting rid of the local dropship supplier, middleman. So that’s my top three, but also I get a lot of people asking “should I sell on eBay, Amazon or my own website like a Shopify store et cetera?” My answer’s always the same, diversification is the key with all businesses.
Diversification is the key with all businesses
You sell on all three platforms, but start with one, master it, then outsource it by spending 10 percent of your profits on low cost, one to two dollar per hour virtual overseas staff. Then, take a break, take a holiday and then come back and start the next platform. I see too many people tryin’ to do all three at once and it’s just overload. Just learn one, master it, outsource it, take a break and then get onto the next one. So that’s all for this week. Please scroll on down and leave me a comment below. Until next week, list more, sell more. This is Neil Waterhouse.
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