Right now, I am a BIG fan of Mark Zuckerberg.
And the rest of team in Menlo Park.
I talked about this here.
Not only has Facebook allowed all of us to connect with family, friends and the weird kid from 7th grade science class — who still lives in his Mom’s basement.
It’s allowed people to launch businesses, start movements, and fund dreams.
Absolutely amazing, when you stop and think about it.
There is simply no reason not to chase your dreams. Anyone, with the right work ethic, can win in today’s economy. Money is no longer an excuse and the internet has leveled the playing field.
You CAN have it all.
Facebook = Land of Opportunity
The entrepreneurial bug bite me sometime in 2010.
I have been out here making it on my own for 5 years now. It has not always been sunshine, rainbows & unicorns — like a lot of people think it is.
More like floating down a river, alone, with one paddle that is broken, at night.
And it’s raining.
And your boat has a small leak in the bottom.
And you’re not wearing shoes.
Yea, that is what it is like being an entrepreneur. You rarely hear that though.
It can be a very lonely game. Some days/weeks/months have been down right depressing.
Enough about my issues, lets get down to how I used Facebook last month to generate $15,195.88 giving away products.
Now, that $15k number above is revenue NOT profits.
Profits are what I get to
take down to the casino and put on red put in my piggybank.
That number is roughly a third of the above number.
Still an outstanding income, when considering the method to my madness.
Playing on Facebook and giving away stuff.
Occasionally, posting cat memes, of course.
I have never ran an eCommerce business before.
In June, I launched an eCommerce store using Shopify’s platform (you can get a free 14 day free trial here). Shopify was new to me, but is very simple to use. There are other platforms out there, but heard good things about Shopify.
Here are three reasons why you should consider Shopify when choosing an eCommerce platform;
- Affordable — Shopify plans start at $29/mo. I made my first sale in I made my first sale in less than 24 hours of having my site up, so I was profitable my first day. Again, I have NEVER done ecommerce before.
- Save Thousands — Shopify also provides hundreds of templates to choose from (free & paid) for the design of your site (no designer skills needed here). These templates are designed to help you sell more product – which means more money in your piggybank.
- Super Simple Set Up — Once you pick your theme, you can have your site up in less than an hour. They provide very clear directions on how to go about setting everything up. They also have an extremely helpful knowledge base if you’re ever stuck on anything.They also provide top notch customer service.
The eCommerce bug “bit” me…
…and I wanted more of it.
It was like a drug.
I have been an online entrepreneur for 5 years now and not only is this business profitable, but also very fun.
The Red Hot Chili Peppers Told Me to “Give It Away”
Here is the secret sauce. Not really a secret this is what Colombia House did in the early 90s to build their empire. Probably not the best example as they recently filed for bankruptcy. it’s a business model where you are willing to take a loss or break even by obtaining a customer. This is called a “frontend offer”. Most (smart) businesses make their money on the backend (repeat sales)
So, I am giving away product using Facebook advertising because of its targeting capabilities. I can get my product in front of the right person with Facebook ads. I do my research with a tool called Facebook Audience Insights. This free tool allows me to research my target market to find what their interests are (on and off Facebook). I can then run ads to my exact target market.
Example: Women ages 35-44, who live in Chicago, who have an interest in Oprah.
This is extremely powerful when it comes to marketing. If I am selling a fishing pole, I really don’t want to advertise it to teenage girls — chances are they do not fish.
I would want to target men 18 -35, who like Budweiser (for example).
I know a lot of fishermen. Just about everyone of them likes to drink beer while fishing. And, to get me to fish, you’ve got to bring beer. I probably ain’t gonna catch any fish, so I ought to catch a buzz while I’m out there.
With the Audience Insights tool, I can see if my assumption is correct (it was, although it was Coors Light they preferred).
When I am advertising a giveaway, the customer pays for shipping. The shipping costs covers the shipping & handling, but also helps with the cost of the goods and advertising. You can then present your new customer with an upsell (ya know, how McDonald’s always asks — Do you want fries with that? — that is an upsell).
If the customer buys the upsell, you can actually profit on the initial purchase. Remember this initial purchase is a giveaway, so it’s much easier to sell.
I profit $4.18 on every order.
That took a lot of
booze time to dial things in. When I got started in June, I was profiting $0.89 per order. $2.29 per order in July and $3.72 per order in August. I continue to increase that number, which is the goal.
See, I am a good marketer and know my numbers. I cannot stress the importance of knowing your numbers. One of my favorite quotes about the importance of this, is…
You cannot improve what you do not measure.
When you know what is working, it allows you to spend more time, money and energy on what is working.
This is an incredibly simple business model to get up and running. The great thing is, the way I have it set up, I do not have to invest in any inventory. This is about as a risk-free busienss model as you can get.
Like I said above, we live in amazing times.
You can have it all, if you work for it.
I am living proof of that.
Need more help?
Click the link below to download my free blueprint.
It’s a quick, 5 minute read.