Great question! And I have a better answer.
First, let’s look at our options:
- Digital Product
- Online Course
- Membership Site
Why don’t I mention any other types of businesses out there? You really want a business you’re in charge of. A lot of other types of businesses and services want to take a cut of your profits(Fiverr is horrible at this, 20%!). You really want to offer your own product or service on your own site.
Why I think you shouldn’t do dropshipping and my reason. I hate the idea of dropshipping. You’re the middle man, you have to spend a butt load of money upfront for advertising, it’s super competitive, and you have to rely on a manufacturer that is half way around the world(who is also known for shady practices). That is a big heck no for me.
Real talk. I had a friend recently tell me that he bought something on Facebook and never got his product. He told me this is the second time this has happened to him. I told him that it was being dropshipped, and we’re in the middle of a pandemic. China ain’t shipping much out anways, on top of the long lead time. That’s another thing, your customer wants your product in 2-3 business days, not 2-3 weeks. They’re use to prime. And forsure don’t lie about your shipping date, because you will never be able to keep your customer.
Drop shipping is a horrible idea. You might ask, well have you ever done it? I don’t want to!!! I have studied business most of my life, and I can see it a mile away! That takes too much and you might make some decent cash for a short amount of time(maybe), but then it will die off. Burn a customer once, and you will never retain them as a customer. So that whole business concept won’t last long.
If it won’t last long, then why put all that money and effort into it.
Let’s talk digital products, my favorite. The key to a lasting business model, is full control over everything within your business and an amazing customer experience.
I recently showed my digital product business to a MBA friend of mine, who right now is doing an executive internship with Dell. He was amazed. I showed him how I bring in traffic organically, how I am able to give free content away to those interested, and how my product solves my customers problems.
The biggest part that he was so happ about, was that my product was digital. He was use to studying logistics of a physical product. He had to decide who made the physeical product, and it got shipped to their warehouses, and then how it got to the customer. A lot of money and planning had to go into that. But with digital products, there was no need for all that planning and money. He told me: “You could scale without any limits!!!”. LOL!
I had to bring him back down to reality. I had to remind him that the reason I did so well, was because I was serving a super niche market, niche being the keyword here. My market was only so big. I might be able to scale any size, but my customer niche was small. But every year, my niche customers change, and the cycle repeats(for now).
In my next post, I will explain why you want a digital product.
Best of luck!