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

G_Alexander

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I seem to be in a somewhat similiar path. A niche I have been researching alot about and seems possible to start a ecommerce in would also, when shipped, be quite heavy. 1 product/box would weigh in the ranges of 7 up to 12-13 KG. I havn't been in direct contact with any manufacturers yet, but I suspect the shipping would be quite expensive. I then have been thinking about the drop-shipping path, but the delivery time from a manufacturer from China could take 20 up to 45 days. This would obviously be a big negative for customers, so i'm not really sure what to think.

Is there any way for you to pass the shipping costs down to your customers? That is the important piece to consider. If the answer is yes, you have no issues: just charge the customers for the high shipping costs.

If the answer is no, i.e. if all your competitors offer "free-shipping" on their sites and have larger scale than you (they do, because you are just starting) it means their pricing will be lower (economies of scale) AND include the free shipping they are offering. You would be dead in the water before you even started and you would end up playing the dreaded price wars into extinction.

Long story short: You don't care if the shipping is expensive, your customers do. If your competitors offer free shipping on a heavy product, forget about it (in my opinion) unless you begin with massive scale (not likely). If all your competitors are charging your customers for shipping, then you're all good! Just charge them and focus on great customer service and a clean site. You can sell ANYTHING in the world if you both look and act professional.

Last bit: Don't drop ship from China to U.S. or UK or whatever it may be. Only drop ship product in the country where your suppliers are located (e.g. U.S. suppliers for U.S. business) to avoid ridiculous frustration.
 

MJ DeMarco

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Freaking ya gonna make me create a PLATINUM thread tag. Love your updates man, this is why I write books!!!
 
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G_Alexander

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Those small numbers turned into big ones. Double your conversion rate, double your visitors, equals quadrupling your income. And you did that in less than half of a year!

I'm curious: what changes did you make from that period in order to do this?

Thanks buddy @The-J!

Biggest things I can note were I installed YOTPO reviews app (it's free). Make sure the review stars show on your products on every page where items are (home page, individual product pages, product category pages, etc.). May need to add a bit of easy code to get this right. PM me if you get this far with YOTPO and have a question....but basically...you want customer validation wherever your new customers are going / looking. I also set up a seperate reviews page on my home page and said "Customers Love our Stuff! Read about us" where you can click on the about us and see reviews / yotpo badges , etc. The more your customers trust you the more they shop.

SEO: Also kept up the blog posts (1 per week of good content). Went and asked website owners in relevant niches, but mainly "info" sites....to give me a link. etc. etc.

Also refined the navigation of my site. Think about user experience. Ask your sisters/brothers/friends what would make navigating your site easier. 75% of recommendations will overlap, so implement those items.
 
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G_Alexander

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I like the energy of your posts! Very inspiring!

How do you market your website? You mentioned that you don't use FB and stuff like that, so I'm curious how you generate traffic. Old good SEO is enough?
$300 a month Adwords spend and a bit of old school SEO. All my Adwords quality scores are 10s and my average CPC is about $0.58, which is great.

Really slacked on the SEO the last two months, but made a blog post two days ago and one new back-link.....did $800 in sales in last two days and jumped up a bunch in the SERPs. I would prefer no SEO, and believe an online business can survive on ads and brand-building alone (like many have alluded to here). I will continue to tweak and post findings!
 

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.
 

G_Alexander

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Maybe it has changed but this is what he wrote earlier on the thread:

Thanks for being resourceful, @Fox, by going back and grabbing info from early pages. It's a small trait that most real Fastlaners possess!

My methods have changed. I aggressively worked on expanding my SEO knowledge and learning as much as I could about SEO in the modern age (after penguin/panda updates from Google). I made a few posts earlier about how it had helped me move up through the ranks organically. I also think I made a few posts about where to begin learning (SEOmoz, etc.)

I am now the firm #1 search result for multiple keywords that lead to my product. I get about $10,500 worth of free organic traffic each month. I spend about $50 on adwords just for kicks.
 

G_Alexander

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@G_Alexander - when you were starting out and you were selling other brands products, what was your USP that made you different and people buy from you and not one of your competitors?

My niche had lots of older, terrible looking websites that were hard to navigate, had bad/grainey pictures, no reviews and and a lack of product info (both product listing descriptions and general resources on the website). These websites don't exude "trust" to the customer.

What I did to build trust and credibility was had suppliers ship me samples of each product (or I paid for them myself and then returned later... so I was only out shipping costs) -- and I took great pictures, 360 degree videos, and wrote amazing (SEO/keyword Juicy) product descriptions. I also implemented Yotpo.com reviews system throughout the webpage and mobile webpage.

In addition to these things, I created a section on my website for "learning" about the products sold, eliminating many questions customers had before ever needing to call us. These resources also make you an "expert" in your product field and can earn you organic links from other websites/forums/blogs who use your information to educate their own followers.
 
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G_Alexander

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@G_Alexander, it’s been almost 10 years since you started this thread! Let me summarize it.

Step 1. Quit Job
Step 2. Ecommerce
Step 3. Buy 6 Lambos
Easy as that! :hilarious:
Very inspiring! Curious how is the ecommerce business doing these days
The eCom business
Has continued to grow over the years and is doing $10,000,000+ a year in revenue. Still has 8 full time U.S. employees. 7 full time overseas VAs. A new 10,350sf warehouse (we are starting to carry best sellers, to capture more margin, and carrying/scaling our own in house brand we have been selling since 2016).
  • 80% of our sales are SEO driven. We only started Google ads last March which is 5%. The other 15% is Amazon and eBay.
  • The landscape is moving at lighting pace right now with AI content hitting the scene back in late 2022.
  • 90% of our products are drop-shipped from suppliers here in the USA. I just hired a VP of Ops in October (COO level employee) to scale our physical operations.
  • For the first time in 10-years, we launched a new theme for our store this past month (March 21st). It looks the same as the old site, but structurally is completely more modern, proper Schema markup, easier for Google to read, etc. Very nerve-racking to launch, in fact, I bailed on two previous companies who had built us a new theme because I just wasn't comfortable. I kind of wish I would have launched it back then, but I didn't want to slow the business down. Fall of 2023, we finally found a company that I felt could get most of the site architecture right, but I still had to be all over every detail of the launch (fingers crossed I caught everything). Because any time you touch your sites structure you put yourself at risk of the SERP evaluations and crawls not going your way. We noticed an immediate 8-12% drop in traffic, which is normal for the first 3-4 weeks from what I have seen online. Then it fell as much as 21%. This week, we popped back up to being 14% down, but today its back to 20% down on traffic. So it's all over the place right now, but I will keep you guys posted here on the case study.
  • It's funny, because even with the drops in estimated traffic, and the volatility in the rankings at the top levels... we had our largest sales day of the year this past week. So something is working. But a lot of dust needs to settle on this launch.
  • I knew the longer I sat on my 10-year-old dinosaur of a theme... the new competitors with modern site architecture would have an easy road to try to pass us
  • Still need to implement faceted search, update our blog style completely (it looks not great), and continue to look for any UX holes
One major thing we need to do now is continue to push and execute on content, and always think about how to best serve our customers a good shopping experience. Longevity is the key in any industry. 10 years of doing this, and the competition looks much different today (half of them have gone away). Who will be left another 10-years from now? That is where the real juice is. I'm working harder now on the business than I have in the past 5-years. Because all the new competition has copied me and pushed to where I used to be. Can't look back, have to keep innovating. The copy cats will always be there.

Brick and Mortar
My Brick & Mortar business has grown like crazy since I last updated you guys. 110+ employees. 7 locations. Pacing $13,500,000+ in sales this year, and growing. Crazy good EBITDA margins (40%+). Too much to type here right now, but I can provide an update on that one later.

Multiples in this industry were 15-18x EBITDA, so we debated selling over these past 8 months... but the crazy thing is... what do you do with all that cash? If all of a sudden you have $20M in your pocket... you have a totally new problem to navigate: you have to put it to work again. And in talking to many guys who have sold their business, they look to put their cash into deals like ours (to get better returns than what passive market investments can provide). So if they want what we have (strong cash flow), why wouldn't we just keep it going and adding more locations? Even if we slow our pace and build out a c-suite to to enjoy life more.

Then take the distributable cash flow each year and invest the cash you get out into Money Markets (5%), S&P Index funds (8-10% over time), and Treasuries. And add more diversification and cash flow to your overall portfolio. And you still own the beast that is bringing the REAL big returns.

Overall 2024
I am blessed to even have the things I have now. Everything is just on loan to me from God. And I am only competing against myself (to take on challenges and become a better human). I've mentioned it in the past, but the journey with others (along for the ride in the business) is the most fun part :).

My goals this year are:
  1. $11,000,000+ sales in the eCommerce Business ($8M site, $2.6M AMZ, $400K eBay). Increase site traffic back to 100 serp value.
  2. $2,000,000 sales in our Private Label Brand for same eCom biz
  3. $13,500,000+ sales in the Brick and Mortar
Take any distributable cash that I can responsibly take, to add $1.5M into my Schwab account (Money Markets & Index Funds), for further diversification and compounding cash growth. Goal of $2.5M in account by December.
 
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G_Alexander

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I have said this story before but it is worth repeating. When @G_Alexander was 18 years old, he arranged to come to my house in Scottsdale. @biophase was there also. He had his dad drop him off to spend the evening at a stranger's house to talk business with a few experienced people that he only knew from the forum.

I know at the age of 18 that I would have been doing anything else but that.

It was impressive and I am very happy to have been able to follow along with his success.
@SteveO -- Thank you for the kind words my friend. I have said it before and I will say it again: I can't thank you enough for adding fuel to my fire at an important time in my life. You are an invaluable friend, mentor and example of a man I am privileged to be able to emulate on my path in life. Very thankful we crossed paths in the early days of this great forum.

SteveO has given MORE than enough information here to create a thousand future success stories. Anyone who hasn't read all of Steve's posts should do themselves a life favor and go read them all, now.
 
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G_Alexander

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MJ DeMarco

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Thank you my friends for the kind words! Things are crazy, and growing crazier as always. I wanted to come back and give an update for those asking here and in PMs.

eCommerce Business
The eCommerce business continues to grow and challenge me. More competition (including one or two new good-quality competitors, who copy my website directly) have come on to the scene over the last 12-18 months.

This hasn't slowed me down though! I now have 4 full time employees & me (5 total in the business). We just passed $5,000,000+ in 2018 Sales for the first time ever this year on Dec 1st. Hope to finish around $5,500,000 this year! I cannot believe the hard work has taken us to these heights with a small niche eCommerce business. I am so blessed to have information gathering be my strongest gift, and application of that information being the second strongest (along with an instinct to kill haha). I sometimes forget to celebrate these "wins"... because I am so busy pushing the ball forward and setting higher goals. But I understand that $5,000,000+ Sales in one year (and now over $11,000,000+ Sales since the beginning of the business) calls for a celebration and a memento. So I got one to remember it: Breitling Superocean Heritage II 44mm

44471808010_e2e83051e8.jpg
32416964228_21b0779189.jpg


As to our new / heightened competition that I mentioned; we are Apple... they are Microsoft/Samsung. Always copycatting. Never innovating. My only real regret in this business is that I am only able to spend 30-40% of my time on it due to my other brick and mortar business, which I have to nurture as well. But I do like having diversity-of-income from multiple businesses.

I really want to take this business to $8,500,000+ next year (2019) and to $10,000,000+ in sales in 2020. Goal has been set. Team is in place. Will achieve through combination of selling many more items in our niche we previously haven't offered/gone after + increasing our output of product videos on YouTube, and continuing to be the best at offering our bread and butter products & customer service.

Brick & Mortar Business
I updated many people in-person at the meetup this past February... but I have been keeping this one a little more quiet on the forums. We now have 35 employees and 3 locations. Just me and my one partner. Currently in process on 2-3 more locations for 2019. Revenues for the current combined locations are $2,500,000+ with much higher margins than the eCommerce drop-ship business... But the cost to open these locations (and the debt load) make them more stressful than an online business (but more stable long-term, 20 yrs+).

The equity upside on each location (as well as the cash flow) is amazing as well. My only issue with the business is how much time the deals take on the front end. But knowing I can make $1,700,000 on average per deal makes it worth the time (although... I do wonder if I could make more just opening more/ bigger ecommerce ventures in my vertical and other similar ones, and producing more of our own products). If anyone has any input here, I'm all ears.

Personally:
This February (2018) I got anxiety pretty bad (about a month after I got my Lambo). It lasted well into August. I just grew too fast and hadn't paid attention to my emotions since the time I was 18 (so about 10 years). I guess I was having trouble coming to terms with my success too... which sounds silly - but it isn't. You lose friends (that you've outgrown), you realize success is not a destination, but a journey (which is preached all the time). And I guess for me I just always felt like life would be/feel a bit different once I had "arrived". It doesn't.

What's MOST important in your life are your relationships: the friends and family around you, your relationship with yourself, and serving others. That has become my mission (not just customers, but my employees). But first, to take care of others you need to take care of yourself. You need to love yourself and you need to learn about yourself inside (study YOU). We study everything else so much, but tend to neglect OURSELVES. Why are we doing what we are doing? What's the meaning behind it? Money CAN buy you happiness (trust me, you will be happy when you buy a Lamborghini or even just a nice dinner or nice pair of shoes), but money can't buy you fulfillment. They are very different things.

This year has been an amazing year of personal growth for me and a good re-balancing of my life (and the businesses kept growing too). I am so ready for 2019. Let's go get a Murcielago SV or Huracan Performante!!

WTF? I can't make this GOLD it's already GOLD! You trying to get me to create a "PLATINUM" tag? Congrats on the growth and the new trinket! Measured rewards!
 
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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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This is a really awesome story - and I am sure you got all the shit you could handle in investment banking. Big rep for working after coming home from that every night (then again, the I-banking folk are legendary for that ability). It would have been so easy to just coast and expect things to change... tomorrow. Or when you weren't tired. Or you found the silver lining in a particular cloud on a Tuesday.

Peak, if I may be so bold to field your question in this thread, based on the OPs journey - I think you may want to pick an opportunity that interests you the most that suits your values and try something small. Everything is a learning process, but delay isn't going to help you learn more/sooner or make your dreams a reality faster. Trust me - I struggle with this too. Action is what will make it happen. I am guessing the OP probably didn't question whether self pub or ecommerce or whatever was right for him, he picked a project and went for it. Remember, you don't fail, you learn.
 

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While I'm in here again tonight, I'll drop this off :cool:



March 2015 almost blew past my entire annual sales for last year. About $25k in sales this last month. On pace for more this month. I am already past $50k for the year so I am halfway to fulfilling the goal I set in January ($100k in sales for 2015). My new stretch goal is $150k in sales this year for the eCommerce business.

Keep hustling guys and gals :)
 
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Can I ask... do your suppliers let you personalise packaging, add inserts etc. Or is it strictly on their terms?

What's the biggest issues you've faced using distributors/dropshipping and trying to maintain outstanding customer service?

When you submit an order to a distributor you usually give them a packing slip for them to give to the warehouse/fulfilment team. Most suppliers/distributors should be able to drop in your store's packing slip at minimum, which will have your logo, web address, and any custom notes you typed on your packing slip. They may also be able to drop in, say a company sticker and a company business card with each order... but not all will do this.

Two of my primary suppliers drop in my store's custom packing slip, and would put other items in if I asked them as well (but I usually don't). I asked them if they could do this up front (if they had said no, it wasn't a deal breaker for me... some distributors are too big to logistically handle all of your requests... that is until you are too big for them to lose.)

Biggest hurdle with dropshipping is quality control (wrong product getting shipped, then you have to deal with returns/exchanges) and speed (they don't move as fast as you might, so it creates unnecessary customer service inquiries).

You can avoid these things by working with excellent suppliers who are organized. The best suppliers will have an internal website of their own where you can put in orders yourself, match SKUs, and track shipments. That said, my best supplier relationship has us submit all orders via email (as does my 3rd largest supplier).
 
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G_Alexander

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awesome, awesome post.

If you were to do it all over, would you have completed school and gotten into IB? Or took that time into building something like you are now?

Thanks @Tony I. If I could go back I would do it exactly the same way. I learned a lot in IB by way of new skills and affirming that a high paying job doesn't truly make you happy. It can actually make you really unhappy because you are giving up more valuable assets (time, freedom, pride (well...I never let my pride go; I had a problem with authority haha), etc.).

The investment banking skills are attributable to raising capital and add to my pedigree for my fastlane real estate pursuits.
 

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This is pure speculation. Just find some stuff and start selling it. That's the only "data" that will matter. Planning ahead is good, but projecting visitors per day and profit of a dream is just inaction.

As G_Alexander has mentioned its just using the date he has provided to show what his growth has been like. There is a lot of action faking in all walks of life though so I see why you would mention that.

In my case though I am taking action. Lots of action. Had a two hour meeting with my first major clients on Friday. We went over all their current problems (worse than I thought) and agreed on a percentage for solving the problem (better than I wanted). I have another meeting with head of the department soon and will be presenting a test website to show my solution. Its easily scalable (10-20 other clients in the next few months, huge need for my solution).

While excel exercises like what I did might seem like keyboard jockey stuff they hold several valuable lessons for me. I purposely study people who started small, with no funding and have been getting consistent growth. You'll notice that he didn't have much sales first few months and that figures were low across all areas. It gives me realistic expectations and a model for my own progress. I don't expect the same results but it shows what to look for. In a world of "I launched and first month made $90,000" this kind of info serves a purpose. And I am surprised its not on the inside too.

Also I originally really wanted to ask what the niche was when this thread first launched (whats the secret step damn it! lol) but I now know it doesn't even matter. I hope I never know until maybe we meet in person and I have made my millions. It would take away from what I am trying to do and probably just be distracting ("Apple stand" story that someone linked to on here recently). All I needed was the process breadcrumbs and a bit of real data. There is more than enough data in this thread to reproduce these results. Thanks again @G_Alexander
 
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Freaking ya gonna make me create a PLATINUM thread tag. Love your updates man, this is why I write books!!!

@MJ DeMarco haha! You're the best man, thank you for the kind words. You + this forum + the great group of guys I met on here when I was 18 (can't believe it's been 9 years) definitely helped me make about 10,000 less mistakes than I otherwise would have on this path. So I am eternally grateful to you.
Speaking of your books, UNSCRIPTED was delivered yesterday and I can't wait to read it in Cabo this week :smile:
 
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Wow. Congrats. Big fan of your journey ever since you started the ball rolling those many years ago!
 

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This is awesome success, and I congratulate you.

I do warn you, though: this is a GOLD thread on the outside forum, where anyone can access.

You've given a lot of information here, especially on your sales numbers. This is dangerous, as some forum members have already experienced.

People are going to keep guessing your niche, your profit margins... if they find out, they might find who your supplier is. I do hope you have adequate protections as people on this forum (even unregistered users!) are a little bit more... trigger-happy than the general public.

I'm sure you'll be able to beat the copycats, but it's an unnecessary thorn in your side. If it gets out of hand, it might be worth asking to move this thread to the Inside.

A little paranoia never hurt anyone.
 

Aaron T

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I am catching up on all the years I missed out by not being a part of this forum and saw this Post and I just had to say, WOW what a great motivational post @G_Alexander! I really enjoyed seeing this, seeing the courage it took to leave a steady well paying job, and the focus on being unscripted !

To add to your comment on just getting one sale, recently looking at data at a company I was at we determined (over millions of individual sales events and average daily users of over a million so the data is statistically sound) that once a client we supported got off the ground and did only 5 sales, they had a greater than 87% chance of success. That is HUGE to know! HUGE! That means that if you can get something going and get to the point of that single sale, regardless of size, and then follow through to 5 sales, you have a really good chance of being a success.

Sadly so many people I know go through the motions of starting a business and never really followed through to event he first sale. After spending time and effort why would you stop that? And of course 5 sales doesn't mean you are making money, or guarantees success, but the probability was good.

I just wanted to share that data because it is very validating for what we are trying to do here.
 
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G_Alexander

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Thank you all for the kind words!
Can't wait for your update of this year's events @G_Alexander . :moneybag::moneybag::moneybag:
Definitely can't wait to share more with you guys this year. I have a HUGE learning lesson to share soon. Lost ~$29,000 last year to fraud. Was attacked over the course of 1.5 months. It's not always peaches and cream running businesses... but that is part of the risk/ cost of doing it. Update coming on that soon. Was painful for an entire day... but I will say that I have moved on and the business has become better/tighter because of it.

Also - I'm too focused on growth to let it slow me down. I have fully accepted and come to terms with it. I have way too much to be happy about to be sad!

does your primary eCommerce site focus on 1 product, or do you offer multiple products?

Have you had better sales with one or the other?

1 Niche. Many products.
 
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MoneyDoc

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This is the bit that stands out to me: 'I built my ecommerce site late at night during the last few months of my job. I would get home at 11pm or 12am and then work until 2am or 3am on my site (loading product, back-end, learning basic HTML and CSS, SEO). I constructed the site using only the free eCommercefuel guide and the masterful posts here on the forum from'

So many people I know need to read this! I hear too many excuses like 'I don't have time to start a business' or 'I don't know how'. Bullshit! Lazyness!

Brilliant post @G_Alexander, I'm really impressed and inspired! :D
Another big one for students, "I'm in school. That's all that matters right now."
 

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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jon.a

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I didn't say it was luck you dumbass's. I ask a simple questions and you fastlane fan boys... start preaching this nonsense.

He had a mentor help him a lot...

And yes its actually true, no 24 year old can make that much progress that quickly with literally no help from anyone, so shut the F*ck up.
He might have been joking.
 

G_Alexander

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This is awesome success, and I congratulate you.

I do warn you, though: this is a GOLD thread on the outside forum, where anyone can access.

You've given a lot of information here, especially on your sales numbers. This is dangerous, as some forum members have already experienced.

People are going to keep guessing your niche, your profit margins... if they find out, they might find who your supplier is. I do hope you have adequate protections as people on this forum (even unregistered users!) are a little bit more... trigger-happy than the general public.

I'm sure you'll be able to beat the copycats, but it's an unnecessary thorn in your side. If it gets out of hand, it might be worth asking to move this thread to the Inside.

A little paranoia never hurt anyone.

You make a valid point, but I am not as worried as a TON of SEO went into my process.

That being said, I can probably (and would likely) share more information that could help others if this was in the protected part of the forum.

Mods @MJ DeMarco @Vigilante --- would one of you please move this into the INSIDERS forum?
 
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MJ DeMarco

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