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24 Years old: QUIT six-figure Job, Launched two Businesses

G_Alexander

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Any updates buddy? One of the threads I always look forward for an update.

Thanks @MoneyDoc. Been busy! Will update with more details shortly. Just notched passed $13,000 in sales on the ecommerce front though!

YTD_BigC.jpg
 
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K.Y.

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What kind of acceptance rate as a dropshipper did you get for suppliers?

I had a list of 15 potential.
1 said yes.
3-4 are maybe and on the fence.
The rest said no.

Thanks!
 

G_Alexander

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What kind of acceptance rate as a dropshipper did you get for suppliers?

I had a list of 15 potential.
1 said yes.
3-4 are maybe and on the fence.
The rest said no.

@Eddie Morra what method are you using to contact them (calling, emailing, etc.)?

I made a list of the top 15 brands I liked in my industry and began contacting manufacturers (who directed me to distributors, if they used them). Called 9 total suppliers and 8 of them said yes. The one supplier who told me no said it was because a B&M store they supply is located near me (they have a policy not to supply any stores within 5 miles of each other, regardless if B&M or ecom). I am going to revisit using them soon, because they are a high quality distributor.

Are you sending emails or calling? I would recommend having your reseller ID ready to go (if you are serious) and getting on the phone with your potential suppliers. Tell the potential supplier your name, where you're based, that your expertise is in running niche ecommerce websites, and that you are launching a ***insert niche here*** site on XXXX, 2014 (give an actual date, and make it your target). After solidifying your status as a "real player" in your introduction, have a list of questions you want answered in advance:
  • What are the profit margins on your [main product]
  • What do the profit margins look like on your [accessories]
  • Do you offer drop shipping? Do you have purchasing minimums or MOQs?
  • How much do you charge to drop ship? Do you accept credit cards for payment?
  • What are your return policies?
  • Etc. etc.
Don't feel like you owe potential suppliers anything, they are a business and they want to supply you so you can make them money!
 

K.Y.

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@Eddie Morra what method are you using to contact them (calling, emailing, etc.)?

I made a list of the top 15 brands I liked in my industry and began contacting manufacturers (who directed me to distributors, if they used them). Called 9 total suppliers and 8 of them said yes. The one supplier who told me no said it was because a B&M store they supply is located near me (they have a policy not to supply any stores within 5 miles of each other, regardless if B&M or ecom). I am going to revisit using them soon, because they are a high quality distributor.

Are you sending emails or calling? I would recommend having your reseller ID ready to go (if you are serious) and getting on the phone with your potential suppliers. Tell the potential supplier your name, where you're based, that your expertise is in running niche ecommerce websites, and that you are launching a ***insert niche here*** site on XXXX, 2014 (give an actual date, and make it your target). After solidifying your status as a "real player" in your introduction, have a list of questions you want answered in advance:
  • What are the profit margins on your [main product]
  • What do the profit margins look like on your [accessories]
  • Do you offer drop shipping? Do you have purchasing minimums or MOQs?
  • How much do you charge to drop ship? Do you accept credit cards for payment?
  • What are your return policies?
  • Etc. etc.
Don't feel like you owe potential suppliers anything, they are a business and they want to supply you so you can make them money!
  • I am calling each supplier.
  • I already had my store built and ready to go with example products imported (3 for each brand).
  • Had a launch date set.
The ones where I actually got to the point where they gave me an email to send my launch information are the 3-4.

The rest simply said no because they didn't have a dropship program/required brick and mortar.

Maybe it's just my niche?
 
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G_Alexander

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The rest simply said no because they didn't have a dropship program/required brick and mortar.

Maybe it's just my niche?

Good work on picking up the phone and taking initiative.

Every niche supply chain is different; if you are wise you will try to choose a niche that utilizes lots of distributors (they tend to drop-ship more than manufacturers themselves).

3-4 good suppliers is all you need to run a successful dropshipping business. I utilize 2 of my 8 in particular much more than the others.
 
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K.Y.

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Good work on picking up the phone and taking initiative.

Every niche supply chain is different; if you are wise you will try to choose a niche that utilizes lots of distributors (they tend to drop-ship more than manufacturers themselves).

3-4 good suppliers is all you need to run a successful dropshipping business. I utilize 2 of my 8 in particular much more than the others.

When you say utilize, do you mean people buy more of that brand or you market them more?

Thanks for the response!
 
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smithsta

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Hey G_Alexander, just wondering, is there any reason why you Dropship your products instead of purchasing them from a manufacturer in bulk? Is it because the drop shipper can offer lower shipping costs?

Also, do you plan to create your own brand products in the future?
 
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G_Alexander

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Hey G_Alexander, just wondering, is there any reason why you Dropship your products instead of purchasing them from a manufacturer in bulk? Is it because the drop shipper can offer lower shipping costs?

Also, do you plan to create your own brand products in the future?

Yes @smithsta, I chose to start by dropshipping to keep the initial equity contribution in the business low (no inventory). The shipping costs for my products ends up being the same whether I ship them or my dropshippers ship them. So I let my suppliers carry the inventory and deal with shipping at the sacrifice of a bit of margin. Also, my volume is getting close enough to start getting pricing discounts with two of my suppliers.

Because this is my first niche, I am also testing the waters a bit and decided to see what 1 fiscal-year of results (which is May 2015) looks like before making and stocking my own product. That said, I have already begun looking for U.S. Contract Manufacturers because I can see how great the margins are for the producers who supply me.
 
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G_Alexander

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Well, had a milestone today. I had planned to hit this goal by December 1st, 2014...but it has come sooner.

11/14/2014: Hit the first page of organic results on Google for my niche (link number 7)!! Passed the largest site in my niche (old 1997 styled site) who I originally set out to destroy.

$15,300 total sales since launch. Re-working some things on my site and designing version 2.0 which I will implement post holiday season. Also adding several new items to my inventory to make sure I am offering as wide a variety as top competitors.

Excited to see the traffic spike that will result from being on page 1. Couldn't be better timing with the holiday season!

Hard work pays off. I will also say that traditional SEO is not dead and that I was on page 20 of Google last month. I have a new technique that I am thinking I will share with INSIDERS, or at the Fastlane Meetup. I plan to continue running my paid ads as well, but will scale back budget. Will keep you guys posted :rockon:
 

G_Alexander

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Goal I set on the first post in this thread, accomplished! $26,409 in sales for 2014. Exceeded the $25k target I set back in October by $1,400. Feels good since I only launched the site in May and it has been a side focus. Momentum has been exponential the last two months.

2014_Results_zpsd058a298.jpg

And already got my first sale of the year this morning while I was sleeping last night :rockon:.

In my last post, I prematurely thought I was on page one of Google (forgot to clear my cookies); I am actually result 11 (top of page 2) in my niche, but I had my biggest month so far. $10k in December sales to exceed my goal. Projecting run-rate sales of $115k for 2015 with about an hour of work each week.

Will have a real estate update soon :)

I can NEVER go back to "normal" life, I am too far gone now.

Let's have a huge 2015!!
 
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J. van Driessen

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Well done man!

I have bought an ecommerce site last year and I'm trying to improve SEO now because AdWords were too expensive for me.
Could you give me some tips on backlinking? I find it hard to get ask other sites to link to me, as I am afraid that if I would link to them in return, it might take people away from my website and I'd lose sales that way.

Thanks for your input.
 

WeMoE

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@G_Alexander great post buddy! Very inspiring! I've based my business around commercial real estate development. Is there a specific model you are using in real estate? Personally, I started a consulting business and use revenue from the consulting business for conventional loan down payment money on my investment property. This is very slow lane and I joined this forum to get more insights on the fastlane methodolgy. Any input on your real estate strategy would be helpful.

Thanks for sharing.
 
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WeMoE

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@G_Alexander great post buddy! Very inspiring! I've based my business around commercial real estate development. Is there a specific model you are using in real estate? Personally, I started a consulting business and use revenue from the consulting business for conventional loan down payment money on my investment property. This is very slow lane and I joined this forum to get more insights on the fastlane methodolgy. Any input on your real estate strategy would be helpful.

Thanks for sharing.
Nevermind about your real estate strategy. I just read your other postings which explains it. Thanks.
 

Eos

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Goal I set on the first post in this thread, accomplished! $26,409 in sales for 2014. Exceeded the $25k target I set back in October by $1,400. Feels good since I only launched the site in May and it has been a side focus. Momentum has been exponential the last two months.

2014_Results_zpsd058a298.jpg

And already got my first sale of the year this morning while I was sleeping last night :rockon:.

In my last post, I prematurely thought I was on page one of Google (forgot to clear my cookies); I am actually result 11 (top of page 2) in my niche, but I had my biggest month so far. $10k in December sales to exceed my goal. Projecting run-rate sales of $115k for 2015 with about an hour of work each week.

Will have a real estate update soon :)

I can NEVER go back to "normal" life, I am too far gone now.

Let's have a huge 2015!!

You're a beast
 

G_Alexander

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I joined the Fastlane in 2008 when I was 18 years old. I had been an entrepreneur since as long as I could remember, but joining gave me a venue to help me direct my energy. Back when I joined this place, it was a small and tight-knit community of a few thousand members all supporting each other as we strived towards our individual personal goals. I am blessed to have made the relationships I have on this forum and I will be proud to continue to post here as long as it exists (which will be as long as the internet is around I would assume).

Yesterday was a big day for me. I hit a major milestone in what was the culmination of both my learning and application of experiences in real estate since I was in my late teens.

Yesterday, I bought my first commercial apartment building in Chicago with the young business partner I mentioned earlier in this progress thread.



I'll save the details on this one for now in order to keep this thread rolling as a progress thread, but I want to thank some very important people!

Thank you sincerely to @SteveO (for being an amazing mentor and encouraging me at such a young age), @RealOG (working with me on analysis and showing me a great time in Scottsdale every time I've visited you), and @GLC65 on the real estate side. You guys were instrumental in teaching me and guiding me on where to look for materials to educate myself. @biophase you are a rockstar man, you really are. The amount of information you have shared with people here for free is staggering. Thanks for being such a great wealth of knowledge and someone I am proud to call a friend.

Thank you @MJ DeMarco for this place. Thank you for providing a venue where creativity is curated, thank you for your book, your wisdom and your humor. I owe you multiple beers and lunches next time we are in Scottsdale (at the same time). I also owe you some free Chiropractic services when my girlfriend begins opening offices in the Phoenix area (I'll be helping her with that).

And last but not least thank you to all of you who read my material, comment and share insight and encouragement. You guys are the best.

Onward and upward! Very excited for this year and more importantly I am excited for right now. I am excited to be living the life I am currently living.

Status update:

Current:

Partnership apartments: 6 units
Personal apartments: 3 units
eCommerce sales 2014: $26k

Goals 2015:
Partnership apartments: 100 units
Personal apartments: 6 units
eCommerce sales 2015: $100k

Love you guys! Keep chasing your dreams!
 
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Eos

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Congrats G.

What's your Strat for getting another 94 units in 2015, sounds like you've been / you'll be raising some seriousss cash.

Thinking Big :tiphat:


Would be interesting to hear some more about this.

All the best!
 

G_Alexander

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What's your Strat for getting another 94 units in 2015, sounds like you've been / you'll be raising some seriousss cash.

Thinking Big :tiphat:

Thanks @Swift T!

You are correct. On this first building it was our equity in the deal (no investors) and we are looking at taking down an additional 12 units on our own without raising capital. We will then raise equity on a project-by-project basis from a very small group (of high NW individuals).

A 200 unit property takes the same amount of analysis and time to purchase as a 5 unit property, so why waste time thinking small once you have a track record and a process in place?

On the projects that we do end up raising capital for, we will be offering our investors a strong preferred return and a hefty split on NOI.
 
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TurboWagon

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I've always been interested in Real Estate and it's been around forever. I feel as if there should be a fairly straightforward framework/spreadsheet to run deals through for due diligence (in combination with asking some subjective questions of local Real Estate agents). However, there are a million books out there. Do you have a framework for evaluating deals you might share here? Thanks.
 

GlobalWealth

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Wow. Congrats. Big fan of your journey ever since you started the ball rolling those many years ago!

Another multi-year overnight success?

Well done sir
 

G_Alexander

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I've always been interested in Real Estate and it's been around forever. I feel as if there should be a fairly straightforward framework/spreadsheet to run deals through for due diligence (in combination with asking some subjective questions of local Real Estate agents). However, there are a million books out there. Do you have a framework for evaluating deals you might share here? Thanks.

Read all of @SteveO 's threads and order Steve Burgess's "How to buy and sell Apartment buildings" book. Also read Steve Volluci's apartment book. They outline the valuation framework I use almost to a tee (along with a little of my own personal flair and intuition).

Another multi-year overnight success?

Well done sir

Thanks man! :rockon:
 
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I landed on this forum because of reddit and by chance I clicked on your thread. Wow. Well done on your journey. It's inspiring and hey... you got me to sign up to post this. If you are ever in California, I'll get you a coffee. :)
 

G_Alexander

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Happy Friday night my fellow Fastlaners!

Just wanted to come in and drop this off on this fine evening:


Just surpassed 2014 sales totals and it's only the first week in March :cool:. Granted, the business was only around from May-Dec of 2014...Still, conversion rate is ramping up like CRAZY. Pricing has remained consistent. Going to be a big year for the ecommerce side business!

You guys all have the capability. Don't be afraid to lose a few thousand dollars trying ideas until you get it right. What would you spend right now if I could guarantee you that you could replace your current job with your own ecommerce business?.......$100? $500? $1,000? $5,000?? The answer is probably A LOT. So don't be afraid to take a calculated shot. If you miss, just shoot again until something works! If your research is done right, the first shot will be all it takes. All the information is on this forum. GO SEARCH. GOOD LUCK!

G

EDIT: PS. Right after this post got another $500 order. Now over $27k in two months for sales. Here is daily conversion:
 
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Peakdesire

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Happy Friday night my fellow Fastlaners!

Just wanted to come in and drop this off on this fine evening:


Just surpassed 2014 sales totals and it's only the first week in March :cool:. Granted, the business was only around from May-Dec of 2014...Still, conversion rate is ramping up like CRAZY. Pricing has remained consistent. Going to be a big year for the ecommerce side business!

You guys all have the capability. Don't be afraid to lose a few thousand dollars trying ideas until you get it right. What would you spend right now if I could guarantee you that you could replace your current job with your own ecommerce business?.......$100? $500? $1,000? $5,000?? The answer is probably A LOT. So don't be afraid to take a calculated shot. If you miss, just shoot again until something works! If your research is done right, the first shot will be all it takes. All the information is on this forum. GO SEARCH. GOOD LUCK!

G

EDIT: PS. Right after this post got another $500 order. Now over $27k in two months for sales. Here is daily conversion:

That is so inspiring dude.
Keep killing it!!
 

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One question, pardon me my ignorance as I do not know much about real estate, what would you do to your units if there was another housing bubble burst, would you hold onto them until markets stabilize again?
 
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G_Alexander

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One question, pardon me my ignorance as I do not know much about real estate, what would you do to your units if there was another housing bubble burst, would you hold onto them until markets stabilize again?

Yes. I will also start buying additional units like crazy when we bust again.

I buy my units with a long-term view. I like a DSCR (debt coverage ratio) of 1.8x or higher to leave room for error if I end up refinancing in a higher interest environment or if the market goes south and I am carrying vacancies. I truly believe that for the units/buildings you want to "hold" you should be evaluating primarily on cash flow...any appreciation is just gravy on top (although I can usually find deals that have components of both, especially is there is value-add potential). Value-add can be realized by lowering expenses or raising net income (adding coin laundry, increasing occupancy if you bought a building that wasn't full, increasing rents, rehabbing, etc.).

This all being said, the more speculative you get in real estate, the higher the return. Land developers make the highest returns (but can have big busts more easily). Next up would be rehabbers, buying an empty and broken building and leasing it up after rehab (also known as re-development) would be the next highest return level. Followed by buying existing rentals in "fringy" areas with higher cash flow and appreciation potential. And followed lastly by buying nice buildings in nice areas. Your returns, and financial risks will adjust accordingly.

I would rather not own sexy luxury real estate that I bought at a 5% CAP and covers it's debt at 1.1x....Sure they are easy to manage (rents on direct deposit, and high quality tenants). But when shit hits the fan and your high-paid tenants lose their jobs you begin carrying vacancies on a building you paid too much for and pretty soon it is not your building anymore.
 

GlobalWealth

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I just want to reiterate. Epic thread. Should be gold if not already.
 

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