Did y’all miss me?
Sorry for the radio silence as of late. I’ve been “One Thing”ing my way through a book, meaning, every morning, after I drop my kid off at the YMCA Summer Camp and knock out a 20-minute work out, I jump in front of the computer and start banging away at the keys. The results?
A 160 page book on selling on Amazon. That’s right. I wrote a 160 page book in 3 days. Now, maybe that means that the book won’t be that great? Or maybe it means that I know Amazon selling so well I could easily write a book that big in that short of time.
Anyways, if you’re reading this, I’d like to offer you exclusively the first few pages of the book. Enjoy!
It’s tough, isn’t it?
Working that 9-5 job each and every day, taking crap from mid-level goons, counting the minutes until you can go home, always looking forward to the weekend. And then the weekend is far too short, isn’t it? Not enough time to relax, work on a project you actually care about, see your family. Monday’s already coming back around.
No matter what you do, you’re trapped in a rat race.
Have you ever imagined what it would be like to get out of that rat race? What would you do with your time? Just close your eyes and think about it for a minute. Seriously. What do you see? Do you imagine sitting on a beach somewhere, without a care in the world? Or maybe you’re spending time with your family, enjoying life and watching your children grow up? Maybe you’re writing that novel you’ve always wanted to write but never had the time to?
You know in your heart that if you didn’t have to worry about working your lousy job, and had some sort of passive income to pay for all the bills you slave for, then you’d have a lot more time to do all those things you desire to do.
So, what’s kept you from creating a passive income? Time? Knowledge? Money? Maybe you even know what to do, but the pressures of the “real world” keep you from taking the leap? Maybe everyone around you is telling you, “It’s just not possible. Get back to work!”
It’s frustrating. You see people on the TV and the internet all the time having the kind of life that you’ve always wanted. So there’s got to be some way to make it happen.
When is it your turn?
Here’s the good news: when you read this book to the end and follow each and every step found in its pages, you’ll discover a powerful, proven way to create that passive income so you can leave 9-5 behind and live the life you know you deserve.
Hi, I’m Dave Hamrick
I used to be right there with you. And boy-oh-boy, I’ve had some lousy jobs in my life: waiter, call center operator, pizza delivery guy, insurance guy, car salesman. One terrible job after another. It’s no surprise, I guess. I didn’t have a college degree (still don’t). And for most of my young adult life, heavy drinking kept me from doing anything more than what I was.
These days I’m sober (six years and counting), make over $100,000 per year, have no boss, and I’ve got all the time in the world to do the things that I want to do.
So, how did a guy like me get out of the rat race?
The Purple Truck
A few years ago, I was working at a car dealership as their internet marketing guy. It was my job to list cars online using Craigslist and eBay. If a call or email came in through one of those online platforms, I’d meet with the customer and make the sale. It was mostly mind-numbing work and took up 50-60 hours of my life. Then, when I got home, I was too mentally and physically exhausted to do anything else. But my bills were paid, so I continued to work there.
One day I listed a rare truck on eBay–a 2003 Dodge Ram 2500 diesel with only 15,000 miles! It was purple. Being that that a truck this old in such a great condition was so rare, it sold almost immediately. In fact, I sold it on my day off (car salesmen don’t really have “days off”, by the way, another horrible feature of that business). So, once I got the notification on my cell phone that someone had put the deposit down on the truck and was driving 300 miles to come get it in a couple days, I went into work, grabbed the keys and put them in my desk, and placed a big fat “SOLD” sign on the truck’s front windshield. While it sucked to be working on my day off, I was very happy to have a car deal.
Until I came back the next day. First, I noticed the keys were gone. And the truck was parked somewhere else, too. Turns out that the General Sales Manager, a six-foot-five, slow-talking, tobacco-chewing gorilla-of-a-man, decided that my eBay deal “wasn’t good enough.” In fact, he unwound the deal and sold it to someone else. Needless to say, I was pissed (and so was the customer who burned me with negative feedback on eBay).
I wasn’t completely shocked, though. The GSM never liked my approach to sales; he thought things should stay the “old school” way, and the internet had “no place” in the car business.
That one purple truck wasn’t the only issue I had selling cars, or working for people in general. It was just a reminder that I should be doing more with my life. I knew I was smart and that I could learn how to make money outside of working for someone else. I just had to take that leap. If anything, that purple truck was the one last push I needed.
A few weeks later, I quit that shitty job. Only problem was I didn’t even know what I was going to do yet.
Amazon FBA Private Label Selling
Fortunately, I’d heard of something called “Amazon private label FBA selling” from a few blogs and videos on the Internet. With nothing else to go on, I learned more about the system and the way it worked.
Here’s what I found out. Essentially, regular folks like you and me were researching products to sell on Amazon, sourcing those products overseas, and then using Amazon’s own fulfillment network to do all the inventorying, shipping, and customer service. The craziest part about it all was that it was creating massive passive incomes from investments a small as a couple thousand dollars. And once a few products were up and running, these folks would not have to spend more than a couple hours per week just to make sure everything was running smoothly.
This was it. That’s what I was going to do. I’d become an Amazon FBA private label seller.
Unemployed with very little money to my name, not to mention a big, fat mortgage and a family to feed, I rushed to learn as much as I could about this crazy, new process. Of course, I tried a few different Amazon selling practices first: selling books (boring) and arbitrage (too much work) just to get a feel for selling things online. But when I finally bit the bullet and started creating and manufacturing my own products, that’s when things really clicked.
My first product, a drinking flask, launched three months after I left the dealership. I spent a little over two grand manufacturing it, nearly half of my cash reserves. Thankfully, in its first month-and-a-half on Amazon, that little flask made back my original investment. In fact, by the second month, it had doubled the original investment.
I was awestruck–Amazon private label selling worked better than I ever imagined!
Haters Gonna Hate
It’s tough looking back sometimes. For over a decade I worked for people who told me that I wasn’t capable of bigger and better things. Whether it was a bar owner telling me I’d be a waiter my entire life, or the manager at the insurance company I worked for telling me I was only ever cut out for sales, or even the General Sales Manager at a car dealership telling me that my efforts with the internet were in vain, these assholes were lying to me the entire time.
They don’t want us to know the truth: that with a little education and a little risk, anybody can find success and build that massive passive income they’ve always dreamed of.
I’ve come to realize that those short-sighted middle managers and small business owners are the real enemy–they don’t want to share their success. They themselves feel powerless, so they want you and I to feel powerless, too.
The Next Level
After I had proof of concept and a major boost in self-esteem, things really took off from there. I took the results of my first product’s success and Amazon and met with investors who were quick to cut a check for a piece of my company. After all, the returns-on-investment I experienced with Amazon FBA private label selling were unlike anything they’d ever seen before. Through sale of stock alone, I earned over $160,000 that year. In addition to that, I earned another $48,000 in income from the business. So, with a small investment of barely two thousand dollars, I was able to earn over $200,000 in my first year selling on Amazon.
I’m not the only one who’s found incredible success with Amazon. In fact, some of my favorite authors and entrepreneurs have had their own forays into Amazon: Robert Kiyozaki (Rich Dad Poor Dad), Tim Ferriss (The 4-Hour Workweek), Tai Lopez (67 Steps), and Scott Voelker (The Amazon Selling Blueprint) just to name a few.
It’s been two years since I started selling on Amazon and now I want to share my success with others. For me, it’s not just enough that I’ve earned hundreds of thousands of dollars building a fun, low-maintenance company. But it’s about giving something back to the people of the world that feel trapped in their own terrible 9-5 jobs. After all, the world is changing, and we’ve got to change with it.
That’s why I wrote this book.
Of course, things weren’t always easy. I had to learn a lot of tough lessons along the way. While my first product was a huge success, my second and third products were total failures. I lost thousands of dollars of my investors capital. They were not thrilled by that. These were costly lessons.
I learned fast that a lot of the “gurus” that were out there pitching their Amazon selling techniques were often lying about their results or not even really selling–they just understood the basics and were parroting what others were teaching. The worst part was that they were giving the wrong advice!
For example, many Amazon FBA gurus harp on the “10 x 10 x 1” rule, which is the idea that 1 product should sell 10 units per day for $10 per unit, earning a total of $100 per day or $3,000 per month. Unfortunately, this bogus rule doesn’t account for your original investment, gross margins, or the other important things that help determine return-on-investment.
Write this down: this business is all about return-on-investment. About mid-way through my first selling year, I had an ah-ha moment: Amazon FBA private label selling didn’t have as much in common with traditional retail selling as it did with commodities brokering. In other words, it was like playing the stock market–a very, very predictable stock market.
Of course, you don’t have to go through the trials and tribulations that I did. In fact, I’ve made things nice and simple for you. Instead of hitting you with a firehose of information all at once, instead, I’ve divided this book into a few dozen 1-3 page chapters called “Days”. Your mission, should you choose to accept it, is to read each of these “Days” once a day and follow the tasks listed at the end of that “Day.” Of course, you’re free to read as far into the book as you like, but the purpose of the book is to act as a daily coach to help you with each of the many elements that go into researching, developing, marketing, and launching an Amazon private label product to help you create a steady, massive passive income. That way, you won’t feel overwhelmed, and you’ll know exactly what steps to take and what order to take them.
In other words, you’ve just been given an amazing shortcut. That’s right. What took me nearly a year-and-a-half to perfect, will only take you less than three months to master.
“But, Dave, three months seems like a long time, I want to start now!”
That’s just it, friend–you ARE starting now. What’s cool, is that three months is roughly the length of time it takes to research, source, market, and launch your product; after that, that’s almost all the work you’ll ever do for that product again. So, when you’re done reading this book and performing each of the steps, you’ll have an Amazon business up and running and making you money.
Is that badass or what?
Now let’s get started…
Welcome to the wild and wonderful world of Amazon FBA Private Label Selling.
What does all that mean? Let me break it down for you:
Amazon is the largest online retail store in the United world by market capitalization. In fact, as of this writing, Amazon is valued $467 billion–many Wall Street analysts predict it will be the first business valued at over a trillion dollars. Amazon offers nearly any product you can dream of at a low price, often shipped to your door in two-days or less. Additionally, Amazon offers a peer-to-peer platform for e-commerce which allows third party sellers (like us) to sell products under the Amazon banner.
FBA stands for fulfilled-by-Amazon. Part of what makes Amazon so great is that it owns a vast network of humongous fulfillment centers (FCs) that store, handle, and ship Amazon’s and its sellers’ inventory. That’s right: all an Amazon seller needs to do is send their inventory to Amazon and Amazon will do most of their work for them.
Private label selling is a method of research, sourcing, customizing and manufacturing products under your own brand name. Unlike when a seller wholesales or sells a licensed product, the seller has full control over the product, including marketing, pricing, where it’s sold, customer service, etc. Popular examples of private label products include Target’s Market Pantry line of goods or Walmart’s George clothing line.
What sort of returns should an Amazon seller expect?
The biggest “holy shit!” moment of selling on Amazon for me came when I discovered the incredible volume of returns-on-investment its sellers receive.
Here are the average costs (costs are rough estimates based on my own experiences):
- $250 to file an LLC with your local government (optional)
- $97 for the Jungle Scout chrome extension
- $200 in sample shipping charges
- $12 to register a domain name for your brand
- $25 to create a logo on Fiverr
- $2500 to order and ship your products (500 units at $5.00 each)
- $29/month to start a Shopify page
- $60 for professional product photos
- $20/month for Feedback Genius service
- $39/month in Amazon subscription fees
- $39/month for Snagshout subscription fees
- $100 to ship your products from your receiving location to the nearest Amazon FC
Once you launch your product on Amazon, your first 12 months of revenue (gross profit and cost of goods sold) will look like this (numbers are simplified for the sake of this experiment and assume that Amazon’s fees and advertising costs have already been subtracted):
- Month 1 – Sell/Giveaway 100 units for $500 in revenue
- Month 2 – Sell 75 units for $1575 in revenue
- Month 3 – Sell 100 units for $2100 in revenue (you’ve now made back your original investment with 225 units to spare… so you place another order of 500 units)
- Month 4 – Sell 100 units for $2100 in revenue (this is all profit now)
- Month 5 – Sell 100 units for $2100 in revenue (your next order arrives just in time with only 25 units to spare!)
- Month 6 – Sell 100 units for $2100 in revenue
- Month 7 – Sell 100 units for $2100 in revenue
- Month 8 – Sell 100 units for $2100 in revenue (you purchase 1,000 units to prepare for the coming holiday season)
- Month 9 – Sell 100 units for $2100 in revenue
- Month 10 – Sell 100 units for $2100 in revenue
- Month 11 – Sell 100 units for $2100 in revenue (your holiday units arrive)
- Month 12 – Sell 400 units for $8400 in revenue (holiday sales)
So, in twelve months, you’ve sold a total of 1275 units for $28,875 in revenue.
In addition to the $3,371 you spent to manufacture and order your first round of 500 units, you spent an additional $7,500 to purchase 1,500 more units throughout the year. Subtracting all those costs from your revenue leaves you with $18,004 in gross profit. You’ve also spent about $200 per month in subscription services like Snagshout and Shopify. Subtracting those costs, your net profit is $15,604.
Now remember, you only had to spend $3,371 in startup costs to get this business up and running. Once you had it going, the costs to purchase new inventory and pay for subscription costs came out of your revenue. Therefore, those aren’t included when we determine your return-on-investment.
Therefore, if you divide the $3,371 in startup costs into your net profit of $15,604, you’ve made a 462% return-on-investment in just twelve short months.
Let’s put that kind of return-on-investment into perspective. The S&P 500 Stock Exchange began in 1923. Since inception, it has delivered an average turn of 10% every year since, which is “great” for passive stock trading (yawn). However, for you to get a 462% return-on-investment with the S&P 500 it would take you nearly 16 years!
Here’s the craziest part: my top selling product earns $60,000 per year and cost me less than four-thousand dollars to get into it. That’s a return of nearly 1500%! The S&P 500 would take over 28 years to get that kind of return, and by then you’ll be old and gray.
That’s just the start of it. Hopefully, I’ll have this bad boy formatted and available for purchase/download in a couple weeks.
Thanks for reading!