Don't let money be your excuse! (How I turned $400 into $18K fast)

[illmasterj]

This is a quick story to tell you why the reasons blocking your success aren't actually the ticket to success. It's all a choice.

Last year I began researching a product to experiment with selling on Amazon through FBA. I had money to invest but didn't want to risk it since I had no clue how to sell on Amazon. I found a product that ticked the boxes and started my research on suppliers. One I was sure had a quality product but also a terrible website. My day "job" is running a marketing company, so I contacted the supplier in China to build a relationship with the goal of a contra deal - a nicely designed, SEO'd website in exchange for his product.

This was a mutually beneficial situation - I knew I could knock out a quality website in a short period of time, bringing the "cost" of the product down, while the supplier was getting a quality website in exchange for product, which surely cost them significantly less than their "best price".

To keep this short, I'll get to the numbers.

Costs:

WordPress theme: $49
Label Printer: $99
Labels: $28.75
Packaging: $82
Freight: $165
TOTAL: $423.75

It's worth also factoring in my time spend building the website, packaging the items, then labelling them.

Income:

$12,311.22

The following is after Amazon fees, so profit to date is ~ $11,887.47. I have sold 2/3 of the product to date, so in theory it will be ~$18000 by the time it's sold out.

Side Benefits:

I have continually built my relationship with this supplier, providing plenty of other work for him since on a consulting basis. They are a good client - paying high rates in USD and quickly, though some patience is required in English.

I have already renegotiated the purchase price on my next order - of course I will be reinvesting the profits made here to repeat again. Anything left over will be spent on a different SKU.


Hoping this is helpful to someone. Don't let excuses get in your way! Provide value to someone and results will come your way.

 

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[MJ DeMarco]

Such negativity.

And what you call "negativity" I call realism.

I was simply suggesting mjs main target are folks that suffer from limiting beliefs. Not the nay sayers and excuse makers. Not sure why u felt the need to completely"sell" yourself. But that's good. I respect it.

Naysaying and excuse making come from limiting beliefs. Like the belief there is a shortcut and if you just buy this secret Amazon coaching program for just $5,000, you will get the secret! Or hey, if I just buy the INSIDERS subscription, maybe someone will give me the exact steps and tell me exactly what to do. Do you really want to go there again?

I think most on here just don't know the way.

Sorry but they've been shown the way. Instead, they want to deny the way, argue the way, and complain about the way. This wasn't exact steps! I have to learn something new?! I don't know about X, Y, and Z! This seems hard! The system is rigged! I have to use my brain and connect the dots?

Instead, they rush into on a great GOLD thread and claim "such negativity" when they read something that violates their "safe space." No, give me the damn shortcut! Give me the paint-by-numbers plan!

More about shattering beliefs then taking shortcuts.

You've read hundreds, maybe thousands of threads here, bought an INSIDERS subscription (which in your words described as "I'm not impressed") and yet, here you are, still hunting for something that doesn't exist.

In the 4 years you've been here you haven't changed one iota --perhaps the forum's advice doesn't need to change, but you? Because in 4 years, if it ain't happened yet, it ain't happening.

And to think, I just spent 7 minutes of my precious time to write the above -- not to curse or belittle you -- but to help you. My guess is you will take my help and dismiss it. This is what @Vigilante spoke about.

Such negativity.

My rant above was abrasively negative and I apologize for it -- but I wanted to show you "negative."

As for ending on a positive, if there was any ONE person on this forum who I could pick to have a breakthrough GOLD success story, it would be you.

Anyone can change their results if they're willing to change themselves.

Perhaps one day, it will be you.

And then all of us here will resoundingly declare, "Wow, what a great turnaround story."

 

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[Vigilante]

"Such negativity. I think most on here just don't know the way. More about shattering beliefs then taking shortcuts. Jmo."

I was having a discussion the other day with a young(er) person that said that I "looked down on poor people."

I've sponsored children in homeless countries, sent tons of money to missions, personally engaged with homeless 1-on-1, donated time towards classroom teaching to equip kids with knowledge about how to survive and succeed, spent time here with people at all strata in life across the globe, and generally don't look down on anyone because of their monetary status. Frankly, I don't care about their monetary status as a litmus test towards their character. I only care to the degree that I can affect it for the positive. I NEVER care about investing in people more than they have demonstrated a willingness to invest in themselves.

I do disdain people who want things handed to them in life, and get offended when it's not served up to them on a platter. They look at life as a luck lottery, and begrudge the people that have gone before them. Looking for a hand out, instead of a hand up. That is the sense that the kid was getting from me. I think he saw himself in my comments, and he didn't like what the mirror was reflecting. It's easier to say I hate poor people than it is to say I hate self serving takers. One is externally focused. The other requires introspection.

Point is...

I think you likely saw yourself in MJ's comments, just like this kid saw himself in mine. If you don't like what the mirror reflects, that's not the fault of the mirror.

 

[jon.a]

Many came here with limiting beliefs not knowing that they held them.

 

[MJ DeMarco]

But wait, I thought the system was rigged!!!!

LOL.

Great story -- short -- but littered with value exchanges.

Congratulations and thank you for sharing. I marked it GOLD as it truly exemplifies how brain-power, work, and a value focus can make money, even when you don't have any.

Provide value to someone and results will come your way.

Seems so obvious and yet too many people are still wandering this forum looking for secret shortcuts and secret products that "will make money fast."

 

[JokerCrazyBeatz]

This is it ! Bringing real VALUE to people and you will be rewarded . Its not hard and you're right no money is NEVER a excuse . In my opinion having no money is the best problem to have b/c it forces you to think outside the box to get what you want

 

[Walter Hay]

@illmasterj had something of value (his skills) and he successfully sold it by way of barter to the supplier he wanted to deal with. He must also be a top salesman because I know how hard it would be to persuade a Chinese business person to part with their money in a deal such as he offered.

Lack of money can be a great driving force towards success. I know - that's how I started. If I hadn't made those critical sales in the first week of starting my first business and been able to persuade customers to pay within 7 days for a big discount, my young family would have literally gone hungry. Hunger, especially that of your children, is quite an incentive to work hard and smart.

Hearty congratulations to illmasterj for being smart enough to work out his plan and bold enough to put it into action.

Walter

 

[The-J]

More proof that value comes in different forms than cash. Cash is the lowest common denominator. You gave that manufacturer immense value: wouldn't be surprised if that website makes your manufacturer $100,000 next year.

 

[pickeringmt]

Many came here with limiting beliefs not knowing that they held them.

There is so much in this one sentence.

I spent the first 30 years of my life unconsciously building my own barriers - and looking for ways around them.

I am only now (at 31) beginning to see this.

It is a mistake to think that limiting beliefs are "negative self-talk". It is easy to catch yourself saying "I can't/don't want to/don't know how" and call yourself on it. To change those words to "I CAN!"

It is much, much harder to see the people YOU put in your own life. The choices YOU MAKE that you pretend are made for you.

And, most of all, the assumptions about yourself and the reality you are creating that you unconsciously accept without question.

I am finally starting to untie this knot myself, and as absolutely overwhelming and painful as this is I can tell you that NOTHING can be as painful as living a life within the confines of this self-imposed hell. The walls of your own mind.

I always thought I knew this, but never understood it until now.

 

[illmasterj]

In my opinion having no money is the best problem to have b/c it forces you to think outside the box to get what you want

A man with nothing has nothing to lose!

 

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[Hyrum]

I own my own retail business (Which I found out after reading TMF is still Slowlane, sigh) and cash flow is king. One of the primary analysis I use is called "turns", which is how many times I would turn over my inventory in a year (the calculation is Annual Sales / Inventory on Hand). So over the last 12 months I've had 1.6m in sales and carry about 180k in inventory, so my "turns" are a little under 9, which is ok, although 10-12 would be better.

The reasoning behind this is the product on my shelf is dollars I can't spend. If half of my inventory is sitting there not moving, thats 90k that I can't spend on product that is moving, adding new SKUs, or otherwise improving my business. Granted, if i can double my margins while only decreasing my turns by 15% then I'd do it, but otherwise I would choose cash flow over margins every time.

 

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[illmasterj]

I got a question, you said you were researching a product to sell on Amazon through FBA and then you found one that ticked the boxes.
What were these boxes ?

My personal set of criteria, which went something like this:

• Small and light
• Research told me I could sell the item for 3x the "best price" from the manufacturer (I was wrong)
• Sales volume means I shouldn't keep the stock for over a year (I was wrong)
• High product quality (I still don't know what to believe - I have physically touched every product but there have been complaints of issues)
• Added value over the existing #1 product in that category

All fairly subjective, but that's kind of the point. From what I've seen with these FBA "gurus", they try and push a checklist for people to use in order to find the perfect product... A product that I might pass on because the sales volume isn't high enough someone else may jump at because they have the capital to justify the slightly higher profit margin. Others will take on larger and heavier items because the profit margin makes sense. Etc.

There's a point where analysis just doesn't work anymore and you have to jump in with an educated guess. Let the market tell you if your research is correct.

By doing with in exchange for a manufacturer as I did, this research was risk free. Worst case I sold the products at the quoted price rather than my projected 3x sale price - I would have still been paid my standard market rates for my work and I would have also learned the Amazon system in the process!

 

[PTP]

I was simply suggesting mjs main target are folks that suffer from limiting beliefs. Not the nay sayers and excuse makers. Not sure why u felt the need to completely"sell" yourself. But that's good. I respect it.

It could be argued that limiting beliefs are in a way excuses. Limiting beliefs are a barrier we set for ourselves. We then make excuses as to why we cannot overcome these barriers to justify in our minds our shortcomings.

This ultimately leads to inaction as people endlessly look for "the perfect way to make money" that they believe themselves capable of succeeding at.

 

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[Waspy]

Am I doing this right?

No.

You completely missed the point of the post. One of the main excuses that we see here is "I can't start yet, I don't have any money"

This is (for the most part) a BS attitude. OP had $400, started, and made $18k.

The story doesn't need any more details. The lessons to be learn are right there in the post. Read it again. What product he was selling and how he marketed it is completely outside the scope of required information.

 

[illmasterj]

I don't think some of these people are understanding that he's not giving a step by step guide so we can just go copy his exact method. He's proving that you don't need much money to start off using one of his experiences, and it's all because he provided value.

I'm going to do something like this considering I have very little money myself.

Correct. I'm not concerned about anyone stealing the idea, this post was intentionally less specific because - if you need deep detail, you're missing the message. The details don't matter. Value matters. I remember reading this post about 5 years ago and none of it made sense. I was dumb to value. Now, I feel I have a much better understanding of it.

The step by step approach of optimizing a listing for Amazon doesn't actually help anyone. If I told you what I did 18 months ago, it won't work today. Making money on Amazon was HOT back then, any fool could do it. As competition heats up, the fools are getting kicked out because they can't think for themselves - they need a guide, and the guides don't tell you how to adapt.

What is more important is the fundamental ideas behind it. Here's a step by step approach.

1. "I have no cash but I want more cash"
2. Find a mutually beneficial business situation so you can help someone in contra - effort for goods
3. Improve the value of those goods (get them in bulk and split them into individual units, take high quality photos and reduce the risk of the purchaser, brand them under a cool brand name, etc)
   
4. Access a pre-existing marketplace which adds convenience (more value)

I look at it as a multiplier situation. You can help someone in contra and get money = $1000 worth of work. Then, if you improve the value by doubling them of those goods, you can turn that $1000 into $2000. If you can use a system/marketplace to add more value that doubles it again, you now have $4000.

 

[GuestUser450]

Such negativity. I think most on here just don't know the way.

...that's why they're misguided + looking for hacks.

Ironic that you're arguing most are empathetic + looking to add value, when you yourself aren't imagining what MJ's witnessed as the forum's founder (most logged hours, most threads+posts read, most messages).

I don't think he's painting with a broad brush, just frustrated with people's urge to chase money instead of process.

 

[illmasterj]

@illmasterj had something of value (his skills) and he successfully sold it by way of barter to the supplier he wanted to deal with. He must also be a top salesman because I know how hard it would be to persuade a Chinese business person to part with their money in a deal such as he offered.

Thanks for your kind words Walter. I have referenced many of your posts since - less from the point of view as a customer of a Chinese business but more as a consultant wanting to work with Chinese/Taiwanese businesses. A family member has taught me a lot too.

...respect goes a long way, relationships are very important, research into their business, patience with language barriers. Both parties took a chance - they shipped 25% of the agreed upon units before I began work and I hoped they'd ship the remaining 75% after work was completed.

 

[Supa]

First of, @illmasterj awesome post! You just showed everyone who's still rather searching excuses for themselves, what can be done with real action into the right direction. Thanks for taking the time to share it

@KLaw I don't understand posts and attitudes like yours.

Without MJ's book and this place, I would probably be one of those who's always makes excuses for why I am so miserable. I actually was one of them before I read his book and signed up here.

I am rather failing while taking action, hell that's exactly what I did with my first business, than sitting at home all day complaining about my life, blaming others for it and finding excuses why it can't get better.

 

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[Vigilante]

[HASHTAG]#gold[/HASHTAG]

 

[pfalcomer]

Thanks for your kind words Walter. I have referenced many of your posts since - less from the point of view as a customer of a Chinese business but more as a consultant wanting to work with Chinese/Taiwanese businesses. A family member has taught me a lot too.

...respect goes a long way, relationships are very important, research into their business, patience with language barriers. Both parties took a chance - they shipped 25% of the agreed upon units before I began work and I hoped they'd ship the remaining 75% after work was completed.

@illmasterj this post speaks volumes about your business manner. I've found that doing business in Asia, mutual respect is incredibly important. I get the impression from your post that you went into this business deal expecting positive results on both ends as opposed to thinking "what if they don't send the goods / pay me.."

That makes ALL the difference in the way you approach and conduct the relationship going forward because you're both coming from a positive "add value on both sides" place and then you BOTH win.

Fantastic post and great way to use what you have available to increase value.

 

[illmasterj]

[BTW is that your Skyline in your profile pic? Can't help myself, that thing is SICK!!]

Anyway, lemme ask you, did you find it more effective to go straight to the owner of the company's product you liked, or was it good to make pleasantries and such with the initial contact?

Keep up the innovation bro!

Cheers @MotiveInMotion . Most importantly, yes it's a KGC10 Skyline. The plan was to get one when my net worth hits $625k but as they were only ever sold right hand drive and I now live in a left hand drive country where they are not eligible for import, so plans have changed. I couldn't bring myself to converting one - you can't butcher a classic!

This product is from what I understand to be a fairly small business. They claim they do all manufacturing but with some research online and feedback from family that does business with China, I'm around 70% confident they are an agent. This isn't ideal in some scenarios, however these guys are hungry - they want to enter the industry in a big way (I've been helping them to find more products to offer in future too - which I will purchase from them). They smooth the whole process out and make it easier - in my experience with trying to work directly with some manufacturers, it's money well spent.

Long story short, my guy reports directly to the owner. The owner oversees the whole company, my contact manages this new division.

Maybe a bit irrelevant but in my consulting company I deliberately work with medium sized businesses for this reason. Most small businesses don't have the budget I ask to do great work, while large businesses are typically too hard to talk to the people that count, not to mention the politics/road blocks.

Let me know if I missed anything.

 

[DifficultTruth]

Maybe a bit irrelevant but in my consulting company I deliberately work with medium sized businesses for this reason. Most small businesses don't have the budget I ask to do great work, while large businesses are typically too hard to talk to the people that count, not to mention the politics/road blocks.

Let me know if I missed anything.

Not only is the first post GOLD this little nugget is also GOLDEN. I have found it almost impossible to talk to a decision maker at a large company, and small business usually want to pinch pennies and not invest in themselves, but medium sized have the money and recognize spending in order to get value added. Amazing post, thanks for sharing! Ultimate example of thinking outside the box, adding value and making things happen.

 

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[Bigguns50]

Well done @illmasterj !

Have your read "Thick Face Black Heart" ?.... because your experience reflects this.

Thanks for sharing.

 

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[illmasterj]

Great story -- short -- but littered with value exchanges.

Congratulations and thank you for sharing. I marked it GOLD as it truly exemplifies how brain-power, work, and a value focus can make money, even when you don't have any.

Ha thanks. I'm actually trying to be more concise in my emails and messages nowadays. I am happy to answer questions is people have them but I am no expert.

I also notice someone added a click bait title haha.

 

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[Andy Black]

@illmasterj had something of value (his skills) and he successfully sold it by way of barter to the supplier he wanted to deal with. He must also be a top salesman because I know how hard it would be to persuade a Chinese business person to part with their money in a deal such as he offered.

Lack of money can be a great driving force towards success. I know - that's how I started. If I hadn't made those critical sales in the first week of starting my first business and been able to persuade customers to pay within 7 days for a big discount, my young family would have literally gone hungry. Hunger, especially that of your children, is quite an incentive to work hard and smart.

Hearty congratulations to illmasterj for being smart enough to work out his plan and bold enough to put it into action.

Walter

^^^ What Walter said.

Well done @illmasterj

 

[Fox]

Forum has been on fire lately. Some excellent threads and a lot of the big hitters giving tonnes of detailed advice.

 

[illmasterj]

Thanks for the great information, it is really helpful and affirms something I have thought about many times.

I have a few questions about the process...

Hi @Maciev,

1. I quoted the project at my full rate after seeing the pricing and MOQs for the products. This was their high margin pricing, so I quoted my services at the full market rate before negotiating, then evened it out to match up with their MOQ. There was no transfer of money (though I have done paid work since).
2. That's for you to work out really. If they see it as commission based services, you need to position yourself as an hourly or flat rate worker/business.
3. Not to me, but I've done it a ridiculous number of times since I was about 12 years old. That was out of the scope of this project anyway.
4. I didn't for this client. I am not a hosting reseller but for my premium clients I bundle hosting into their package - this is more for me as it offers increased control - I no longer have to deal with their $6.99mo hosting plan hurting their rankings, being hacked or not being backed up.

 

[Raoul Duke]

@illmasterj I see this thread going GOLD. Keep up the good work!

@Vigilante @AllenCrawley

 

[KLaw]

Seems so obvious and yet too many people are still wandering this forum looking for secret shortcuts and secret products that "will make money fast."

Such negativity. I think most on here just don't know the way. More about shattering beliefs then taking shortcuts. Jmo.

 

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[eTox]

But providing value requires work and effort. Meh, I am looking for the quick and easy benjamins. It's all about the money, you know

I'll keep on looking,

Till later.

 

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