What are some of the easiest ways to make a million dollars? originally appeared on Quora: The best answer to any question.
Making $1 million can be easier than people think with just a little bit of hustle and business savvy. For our purposes, we will assume you have little to no capital at your disposal. Let's break it down:
100 items at with a margin or commission of $10,000.
1,000 items with a margin or commission of $1000.
Or 10,000 items with a margin or commission of $100.
A simple drop-shipping model with a focus on sales and marketing will get you there. Optimize your sales funnel with the right tools and processes; and voil. You're set.
First, find yourself some high-margin products whose supplier is willing to drop-ship them. The beauty of "drop-shipping" is that you do not have to stock or touch any product. You don't pay the supplier until your customer places an order and pays you!
When it comes to our pricing, the sweet spot is between $75 and $175 at an 8-10x mark-up. Let's say a customer orders this beautiful, $100 picture frame from you. You then send an invoice for the frame to your supplier. They charge you $13, and ship the frame straight to your customer. Meanwhile, you collect $100 for a profit of $87.
This margin will be plenty for advertising these frames on Google/Facebook. Let's assume it takes $17 worth of ads to make a sale and you have little to no other operating costs. That's a net operating profit of $70/frame. Great! Your ad campaigns will run while you sleep. You can set your supplier invoices up to generate and send upon each sale.
The question I am most often asked is, "How do I find great suppliers offering me profitable margins?" This is an excellent question. This is what separates the great drop-shipping sites from the rest: finding the right suppliers, getting the right deals, and branding and pitching your products so they are perceived as high-value.
Finding suppliers and negotiating ideal contracts is a rigorous process. You should not delve too deeply into it until you have already established your niche as viable (i.e. you get sales with reasonable marketing spend).
Instead, consider drop-shipping and wholesale directories. These middlemen already have relationships and contracts with suppliers in place. They will make your life a million times easier.
I preferbecause they have tons of recognizable products, both brand-name and generic. Their process is easy to navigate. If you don't already have an idea for what to sell, you will find one.
Of course, you will need to build a website to showcase and sell your products. But you won't need to write a single line of code. In fact, it only takes a few hours to get an awesome site up and running with a content management system. You can pick your color scheme, drag and drop the images you like, and write your own content. Still, your site will appear more credible and professional than 90% of e-commerce sites.
Most people usebecause it is optimized for e-commerce purposes. Their loyal user base considers it "all-in-one." You list your products the way you want to. Customers pay right there.
Drop-shipping is awesome because it is so inexpensive to begin. Start with a specific niche and expand later. Test, track, and improve your marketing efforts over time. As you refine your sales funnels, your profitability will grow exponentially.
And there you have it. Don't hesitate.
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Disclosure: I am an affiliate of services mentioned above.
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