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Kid Made $4000 a Day Dropshipping ("Revealed" All In a Free YouTube Tutorial) - Scam or Legit?

Discussion in 'Ideas, Needs, Concept Feedback' started by TopDirective, Oct 19, 2018.

  1. TopDirective
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    Dear Fastlaners!

    I recently stumbled across this 7 days challenge from a fairly unknown 17 years old. He is doing a challenge to make $1000 in just a week [1] from starting and later even $4000 in a single day [2] by selling goods from aliexpress on his shopify store by doing a very basic marketing & ads.

    [1]
    [2]
    Fishy?
    - Entry barrier seems just too low
    - Disappeared from the internet 2 months after first video at the end of 2017
    - Did not talk about the fees, margins, etc.. (or did I miss it?)

    All in all, let's say this is LEGIT and you as an average Joe can make realistically an extra $2000 a month with the efforts shown, and more when scaling up.

    Is this worth the time & energy investment? Any first-hand experience from you guys?

    P.S.: In my current situation, making another 2-3k a month net would make a difference. I understand you may be interested in different numbers, but nevertheless I decided to make this thread.

    Thanky!
    Top
     
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  2. dKot
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    dKot Contributor I've Read UNSCRIPTED

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    Hi. I'm new to the forum and I don't have a lot of experience in business, but I've heard something about this already. These kinds of "methods" are the heart and soul of BlcakHatWorld forum. I've seen so many "methods" like this there. Most of them focus on the same thing. Find a niche that is not yet saturated, apply a twist on a method and start advertising using twitter, instagram etc. I've read some journeys there and people claim to be making a lot of money doing that.

    I still feel skeptical, though. To scale up to 2-3k a month would take at least several months, if you have a great "combo" of a twist on the method and a perfect niche that has low competition. Plus, I've seen so many people fail there, even people who are experienced in this sort of business. Accounts get blocked, money frozen and so on. So to me it seems unreal, because every average Joe today gets into this and saturates the market even more.

    But again, this is just my first hand experience.
     
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  3. TopDirective
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    Thanks for sharing. Why do you consider this black-hat? Do you know any illegal elements there or what rules violations cause accounts to get suspended?
     
    Last edited: Oct 21, 2018
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  4. dKot
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    BlackHat is just the name of the forum. But from my experience, these entrepreneurs start buying fake Instagram, twitter account to start earning fast and that naturally leads to suspension of their accounts. If you grow natural traffic and find a good product that you can sell and put your own spin on it, I don't think you would face these problems, but sometimes accounts just get suspended and there's no way to get back seemingly for no reason.
     
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  5. Yzn
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    Yzn Bronze Contributor

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    Shopify dropshipping. Yes it works.

    BUT be ready to lose $5000-$10000 in ads realistically before you even have a chance to start competing in the niche market you're going in.

    If you're going in this to make quick money without losing a lot of money quick, forget it.

    As for the guy, I don't know him but he sounds like every other damn guru on the internet that wants to sell you dropshipping course - and that's how he actually makes his money.

    anyway not to make this a long post - my advice if you are serious about dropshipping follow kingpinning he is the boss in that category and he makes free courses on his website.

    another advice: IF you are running after shiny objects - stop - because that's how I lost most of my money
     
  6. Kung Fu Steve
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    Kung Fu Steve Platinum Contributor Speedway Pass Summit Attendee

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    I'm a little frustrated sitting behind the keyboard here because I want to express something that may or may not come across as me being a super dick but I don't mean to be mean.

    So bear with me for a second:

    At the beginning of all of our entrepreneurial dreams we think "man if I could only make 1,000 extra... 2,000 extra... 10,000 extra... per month..."

    Those numbers are so small it's NOT what you think it is.

    Let's say you start an e-Commerce business that's earning $2,000 per month.

    Multiply that by 12 months... that's $24,000 per year.

    (as a side note... if you were working 40 hours per week for 50 weeks out of the year, $24k = $12/hr)

    But it's not 24,000 profit. Let's call the average profit margin for beginning e-Commerce stores is 25% (probably reasonable considering small order sizes, distribution channels, etc.)

    That means you're netting $6,000 per year.

    But $2k per month is not just reasonable... you could trip and fall into it and do that.

    Think about it: $2,000 per month is only 100 widgets @ $20 each.

    Or 20 gizmos at $100... or 10 gizmos at $100 and 50 widgets @ $20...

    You could literally find anything that costs $100... throw it up on amazon with some decent keyword research (and some real effort) and walk away with your $6k per year.

    My guess is that's not your goal

    The people on this forum who have massively successful e-commerce businesses are shooting for well over $1 million per year in sales. And if that profit margin holds up -- they are taking home $250k in profit.

    And even that is extremely reasonable.

    So here's my message: stop thinking so small. Go in and do the math. Figure out what you really want and reverse engineer.

    The mentality of "2k or 3k per month" is never going to get you 2k or 3k per month... does that make any sense??
     
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  7. Kung Fu Steve
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    Kung Fu Steve Platinum Contributor Speedway Pass Summit Attendee

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    Stacked with belief systems...
     
  8. Yzn
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    Not really. That's what happens to most people who get in drop-shipping without any experience.
     
  9. dKot
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    I think you are right on this one. Everything of what I said comes from these "method" makers who are aiming at 50$ a day and are okay with using these methods until they bleed them dry and look for something new. This is not entrepreneurship. How can you expect anything but average in this case.
     
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  10. Kak
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    Kak Capitalist Swine Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    This reads like a stupid get rich quick scheme.

    I'm pretty convinced that it is easier to do real business than to jump on competition bandwagon, follow someone else's direction, and getting watered down results.

    The person that thinks this is all it takes for a lifetime of freedom will be broke in short order.

    This is ridiculous and the Fastlane Forum is better than this petty money chasing.
     
    Last edited: Oct 19, 2018
  11. Kung Fu Steve
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    So I just blew through the videos quick.

    The kid isn't even selling anything. He's just trying to teach Shopify. Maybe someday he will sell something but I just don't get your mindset when you're asking "is this legit"

    Is what legit?

    Is a business legit?

    Is a shopify store legit?

    Is this kid's advice any good?

    I realize you're looking for the vehicle to make money here... but you've heard this phrase being tossed around: stop chasing money.

    Most of us don't view building a business as a way to cash out but more as a way of life... sure, the money is nice if a business grows... but most of us would be just happy doing what we're doing for free.

    I know MJ says "don't build a business around your passion" and there's some good logical sense to that... but you can't build a business out of the next shiny object that comes along...

    I hope this helps a bit because I understand where you're coming from. $2k was a LOT of money for me as a young man -- and you feel like an extra 2k will solve all of your problems... I'm telling you it won't.

    Set your sights higher. What would you do if you couldn't fail? What kind of money would you really like to be making? How would you reverse engineer that outcome?
     
  12. Kung Fu Steve
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    If there's a course in the description and a video of "it's so easy" its usually a red flag.

    If he's making money with whatever he's doing in the video, why make the course and "teach"?
     
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  14. Raoul Duke
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  15. Fox
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    I am not an ecommerce expert but I believe the scam going for a while was this:

    - Start YouTube channel on e-commerce
    - Have some products but throw tons of money running ads to them so the sales are high but the profits are zero
    - Show screenshots of sales!!!
    - Sell coaching/courses/mastermind
    - Buy cool car and flex all over social media to grow the channel and sell more courses

    Didn't watch this kids videos but looking at sales screenshots for e-commerce is not a great way to see if its a legit business.
     
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  16. biophase
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    biophase Legendary Contributor I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Just watched the videos. Everything he’s doing is legit. But remember he’s talking gross dollars when he says made $1000.

    He’s running ads, paying IG influencers and running FB ads. Does he even mention profit?

    But with that said, the videos are pretty solid.
     
  17. minivanman
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    minivanman Platinum Contributor Speedway Pass

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    1 correction, rent cool car as needed. Cheaper that way. :)
     
  18. rpeck90
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    1. If it seems too good to be true, it probably is
    2. Whatever grows quickly, dies quickly
    3. If you're not building for the long-term, you're going to fail
    Say you make $3k a month selling random shit to people online. That $3k suddenly turns into a bigger apartment, car payment or some other "thing" that you don't actually need (it hasn't solved your original issue). You develop a dependence on the $3k to maintain your new lifestyle. Seen it all before; best thing is to focus on making your own money (delivering projects) and then worrying about tactics/tricks/systems afterwards.

    What you found is a woman in a red dress...
     
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  19. Andy Black
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    Andy Black Any colour, as long as it's red. Staff Member Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Agreed.

    Reminds me of this:
     
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  20. Kung Fu Steve
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    I'm going to challenge you here.

    Not just to be a dick but it's too easy to throw platitudes around and for people to misinterpret.

    All of this advice is situational. While it seems intuitive, in some situations it's going to be counter-intuitive... like this exact situation...

    In the normal sense, yes, you're absolutely right...

    However, this guy is saying "making $2k/month with an e-commerce business must be too good to be true" --
    this does not apply here.

    It's such a small amount of money for a business owner/builder... most of us can't pay our bills with 2k per month let alone our overhead.

    This is just straight up B.S. (belief system) ... or I guess bullshit, too.

    What's quickly?? The whole point of the Fastlane is to grow a business rapidly. Is it unreasonable to double your business multiple times? Is it unreasonable to make a million dollars in sales your first year out? Hell no.

    In fact, it's kind of expected if you have the foundation right.

    Once again, if this kid were talking about billions of dollars overnight -- you'd be right. However, this just isn't true.

    Don't buy into this idea that when you start finding some success, the other shoe is going to drop and you're going to fail. Stop it.

    That's not everyone's goal, my man.

    I agree with the sentiment but listen, just because someone builds something to sell doesn't mean they're going to fail.

    Yes, systems need to be in place.

    Yes, you need to innovate and plan for the future.

    Yes, you should think long-term -- but this mini quote/platitude is just regurgitated.

    Why try to scare the kid?

    There is no value here besides telling him he'd better not try.

    Stop it.

    Agree, I agree with what you're trying to say here but c'mon man... you've seen it all before so he better quit before he starts?

    Oh lawd jeebus, take the wheel.

    I think you just wanted an excuse to post this video.

    I thank you. She's hawt.

    P.S. Please don't take this as a personal attack. I know how things can get misconstrued on the forum.

    If you disagree with me, I'd love to hear why... but man I think this advice to this young man is terrible. I know you're trying to help and I see the positive intent. But let's not put limitations on people we don't even know.
     
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  21. rpeck90
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    No offense taken!

    --

    Didn't mean to dissuade the OP; on the contrary, I would implore him to try whatever he wants.

    I think there has been a misunderstanding. I wasn't referring to the "act" of what the videos espouse as being bad, but the underlying intent. The OP mentioned wanting extra $2k/m. This is natural, but IMO the worst way to go about it. This is why I wrote with disparity. You took my post as saying the whole thing wasn't legit - that's not the point I was making and (in that case) you're completely right & I stand corrected.

    I was primarily referring to the "mindset" behind the majority of "dropshipping" people -- who want to quit their job by using FB ads to make quick money (with no talent/skill/experience/connections/work). It makes money, but doesn't really build a business. The likes of Mike Vestil and other nobodies promulgate this BS in an attempt to "gain freedom". If you're happy building something on FB ads, be my guest. Not for me.

    The videos look "real" (in the sense that the guy made money) and definitely something to try IF the OP felt compelled to do so (but it's not the only thing he could be doing). If he's interested in the process behind drop-shipping, two great Twitter accounts are Nate Schmidt and James Holt. Both are young (19/20) and use the methods mentioned in the video to make a LOT of money with FB ads. Both have courses too.

    In fact, the latter just released a 6k+ word article specifically about FB ads:
    The Ultimate Facebook Ads Set-up For Testing, Optimizing and Scaling Dropshipping Products - Start Selling Stuff

    My point was that if the above "works" for the OP, and he does make a bunch of money, if he doesn't chalk it up to experience (and instead becomes dependent on FB ads), he's not going to last very long.

    Yep, my post was based off my own belief-systems (limitations) but they are grounded in my own experiences. Likewise with the quotes; each one I use regularly to remind me of various mistakes I've made.
     
    Last edited: Oct 20, 2018
  22. Kung Fu Steve
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    Much better, love it!!!!
     
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  23. biophase
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    So getting back to the OP. How would this be a scam? He's not selling anything. He's literally telling you what to do. So the real question is, is this legit? In my opinion, I think it is. But keep in mind that this person has skills.

    Can you pick a golden product? (Or are you just going to copy his lion product)
    Can you make a plain template look good?
    Can you get IG influencers to post your product?
    Can you run IG and FB ads efficiently?
    Can you do the email campaign that he does?
    Can you make decent looking ads using Canva?

    All this stuff has a learning curve. It's obvious he's done it for a while. There was alot of hard work that went into making a few bucks, not to mention the amount of work it took to make those videos.

    I can see people following this step by step and seeing no results and then calling this a scam, but it's really about the person doing it's skill level.
     
  24. AllenCrawley
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    AllenCrawley Legendary Contributor Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I watched the two videos in the OP. I did not watch the other videos in the series. I'll just point out a couple things here.

    1. The videos are well over a year old now. A lot of the information is outdated. Aliexpress dropshipping is on the down curve. If you did the facebook strategy he shared you will not get results. For the most part, gone are the days of $5 daily budget ads.
    2. I'm in a high-level private ecommerce group that has a few people that do dropshipping and/or POD who make $100,000-$200,000 per month in top-line revenue. However, these companies are on a supernatural level. They've been in that business for at least a few years. They spend an unbelievable amount on FB ads. They are niche and brand focused. Not your typical "spray and pray" aliexpress dropship sites.
     
  25. pkom79
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    I'm sure making money from running a Shopify store and getting your inventory dropshipped from China is still possible. I have sold hundreds of thousands worth of products this way. And a lot of people still do it.

    I don't do it any more as I didn't find it to be a good strategy for building a long term business. You have no control over the quality of the products or the fulfillment time. So most of your customers buy from you one time and you need to spend money on acquiring new customers.

    If you do a pretty decent volume be prepared for tons of emails with complaints about the delivery time and the quality of the products. Everyone wants two day shipping :)

    In 2016 hundreds of orders that were placed in November in one of my stores got stuck somewhere in China and were not delivered until January. Not the best thing to happen when customers ordered Christmas gifts. I had issue thousands of dollars in refunds.

    Shopify Payments, PayPal, Braintree and many other payment processing companies hate dropshipping from China. You can have % of your funds frozen for weeks. I know that from my own experience.
    I had over $40k frozen for 6 months for no reason (this happened before the shipping delay disaster). No chargebacks, not many complaints. They found out I get my orders dropshipped and closed my accounts (Authorize.net and Braintree) and froze the payouts. I don't think Shopify Payments is us strict as these guys but they still can keep some rolling reserve to make sure they have money to cover any chargebacks.

    The barrier of entry to this business is non-existent. If you look for the products using methods from youtube videos or online courses you will end up selling the same stuff as hundreds others.
     
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