In this review I’m going to be reviewing Jared Goetz’s e-commerce course.
How legit is it?
Is drop shipping the best online business in 2018?
Why I really like lead generation business, where I get paid for generating phone calls for small businesses.
Jared Goetz Story
He started as an entrepreneur selling hover boards, he was sourcing them from China before the craze of it catching on in the USA. That success didn’t last because these products do not stay popular for the long-term.
My issue with selling these physical products is that it’s hard to maintain healthy sales volume consistently every month because there’s many variables that influence market demand for these products because you’re going after impulsive purchases.
Why Jared Calls It Drop Surfing?
They use a software that picks up all the trending products on the internet.
It can find product ads that’s going viral.
With tons of engagement, likes & comments.
You can then take that same product or similar product and create your own drop shipping campaign.
You can “ride the wave” of that product trend. Aka Drop Surfing.
What is the Drop Shipping Model?
With this business model you do not have to carry inventory, you’ll be shipping each individual orders directly from the supplier.
The advantage of this method is that you do not need to tie up a lot of cash flow to invest in on-going inventory.
Its more forgiving to screw up or go into the wrong niche, because if 1 product doesn’t sell well, you can quickly choose another product to begin testing Facebook ads on.
Whereas if you were to pick the wrong product with Amazon FBA business you now have dead stock that you have to try to liquidate (sell off).
With the dropship model you are not required to build a big brand either because most of the time you’re simply going after impulsive purchases on Facebook meaning with the right product, the right time & right ad copy, people will purchase regardless of branding.
The challenge with this model is that you have to pick products that’s having some momentum in the marketplace, something that’s causing people to stop what they’re doing on social media and hit the purchase button.
Jared’s Tips on Facebook Advertising
As you know trying to rank an e-commerce store organically in Google is way too competitive.
So you have to rely on Facebook ads to generate traffic for your store.
Here’s Jared’s top tips.
- Have an awesome creative (image or video) because that’s the #1 factor in drawing attention & attracting clicks.
- Get the targeting correct
Jared’s course will main teach you 2 things.
How to find the right product to dropship then how to properly run Facebook advertising to market that product.
The Pros & Cons of Drop Shipping Business
- You can sell physical products without investing in actual inventory
- You can run this business all from your laptop
- Being able to generate relevant traffic quickly with Facebook ads
- Many different niches to choose from
- Other people can copy your product & Facebook ads (duplicate your drop ship business)
- Facebook ads can fluctuate in performance and requires on-going maintenance
- Requires ongoing work to fulfill customer orders since you’re dealing with many customers and have to handle customer complaints, returns & other issues that arise with physical products
Lead Generation Business
The reason why I prefer lead generation business over drop shipping business model is because I’m able to run my business by generating my very own free organic traffic.
I once had a lot of hope for Facebook ads.
Ya know, this idea that you can begin generating traffic tomorrow is really appealing.
But in my experience what I found is that Facebook ads only truly work long term with a product that has a lot of profit margins.
This is why there’s many coaches promoting coaching programs by using Facebook ads.
Coaching programs are nearly 100% profit margin because it’s all digital.
With selling physical products, you only have 20%-40% profit margins usually so with Facebook ad costs you have much smaller margins to play with.
What I like about lead generation for small businesses is that it’s all digital so you have like almost 100% profit margins as well.
And you feel like you’re making a big impact in someone’s life so you feel real good about what you do.
Instead of just selling cheap products from China.