How Much Money Do I Need To Get Started With E-Commerce?

/How Much Money Do I Need To Get Started With E-Commerce?

How Much Money Do I Need To Get Started With E-Commerce?

A very common question I get from folks is…

“How much money do I need to get started with PoD/Ecom?”

It’s an impossible question to truly answer considering everyone will be different.

You could be super lucky or that good, and find your first winner in the first $50 you spend. From that point on, you’re golden and crushing it.

For 99.9% of people, that’s not going to be the case though.

The good news is I do have a much better answer for you this month.

I’ve been hosting this LIVE Print On Demand workshop this month where I started from absolute scratch diving into markets I don’t know anything about with nothing but the tools you would have as a newcomer…

It wasn’t until Day 18 (last Friday) that we had our first profitable day. At this point, I had spent $3,653.77 total. We had made back about $2,100 and overall for the 18 days were at a loss of ~$1,500.

Now, you might be thinking… oh damn, that’s a bad loss, but in reality, this is very accurate to what you would have to do . We are on a great path and doing the steps to build a real business.

That first profitable day meant a lot… especially when it was followed by our second profitable day on Saturday (turn those tables, baby!).

We again started from absolute scratch less than 3 weeks before. Here’s how it went to get to where we are now heading in the green direction…

The program started with me teaching the foundation to what Print On Demand is during week 1. I went over the very basics to FB ads and didn’t spend much. We launched 2-3 products.

Week 2, we started to up the level of products we launched with consistency. I was creating 90% of the designs myself with simple graphic editing skills and outsourcing a few better graphics to a professional designer.

We weren’t picky on niches and cast a wide net. From the week 2 tests, we found 1 product that showed promise. It did not produce a huge profit or even a profit at all at this point… it just was making consistent sales (hint # 1 you might be in a good niche).

Week 3, we continued with our consistency in launches, but our focus for 80% of those launches started to dial into the same industry or highly related industry to our first product that started to make sales. (Hint #2, we were building upon our first proven asset)

We also started testing multiple ads for this original seller. Not only did we try as many interest audiences as possible, but our custom audiences began to grow allowing for Look a likes… which have become our best sellers (Hint #3, data wins out).

I did some manual bidding ads for this product and absolutely lost my ass lol. $1000 of our loss during the program has been from Manual Bidding ads. I’m not good at manual bidding ads. haha

I turned off the losing ad sets and left the winners going.
This original product now has 4 ad sets producing consistent profit and we have our 2nd product in the industry starting to pick up in it’s footsteps from Week 3 tests.

So, yes… at Day 18, we were at a $1,500 loss. BUT, that initial $3,500 spent has given us 2 winning products that have now turned our days into profitable days.

As we continue finding winners and building our audiences, those successes stack on top of each other and our data only gets better improving upon conversions.

The original product winner for example had a 1.8% conversion rate in the first 1000 views. By 4000 views, we had the conversion rate up to 2.7%. After cutting the losing ad sets out last week, we are at a 6.4% conversion rate the last 1000 viewers on that same product.

So… How much do you need to get started with Print On Demand or Ecom?

I used to tell folks $500-$1000 would be enough to get started… and that’s slightly accurate. It’s enough to GET STARTED. But is it enough to get you going to legit levels… probably not.

$5,000-$10,000 is a more accurate estimate today.  This is still very low compared to most business models, but I like readers to know the realistic numbers behind this type of business model.  Again, you could crush it way sooner too.

Questions or comments?  Leave them below.

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2017-11-20T13:38:17+00:00