HONEST: Why Gurus Sell Courses & Reveal “Secrets” on How to Make Money

Hey, guys. So today, I want to have an honest discussion
with you about something that I know a lot of people wonder about. Why do gurus or experts make YouTube videos
and sell courses teaching other people how to make money online? If it’s so profitable dropshipping, why would
you teach anyone else how to do it? And if you can make tens of thousands of dollars
a month selling on Amazon, then why would you show anyone your secrets? I hear this all the time. “If I knew how to make $10,000 a month selling
on Amazon then I sure as heck would not be selling how to do it in a $67 a month course.” And something else people understandably worry
about is saturation. If channels like mine go around teaching people
how to set up dropshipping stores, won’t that create a flood of competitors copying what
I teach, saturating the market, and making the business unviable? And look, I understand, because when I first
entered this industry, I had friends look at me and ask me, “Sarah, what do you do? I want to have your lifestyle too.” And I’d shy away from answering them. Why? Well, because I was afraid they were gonna
come on in and steal my business away from me. But I was actually wrong and it was only later,
once I became more established, that I realized two things. One, saturation is not a problem and it’s
not something that we need to be worried about. But two, income diversification is a problem
and it is something that we need to be worried about. So there we go. I’ve already gone ahead and spoiled the video
for you. That is your answer. But you probably want more of an explanation
so let’s jump straight into the video. Why saturation isn’t a problem. So I’m gonna preface this video that I’m only
talking about the two types of business models that I teach here at Wholesale Ted and that
is private labeling on Amazon and dropshipping in your own store like a Shopify store. And I wanted to note that because not all
business models are above the problem of saturation. I have personally witnessed more than one
online business model become saturated due to a flood of competitors. For example, one business model is AliExpress
dropshipping on Amazon. A question people ask quite a lot on this
channel is whether it is okay to do AliExpress dropshipping in an eBay or Amazon store and
the answer is no. No, no, no, no, no. Do not dropship from China on eBay or Amazon
because not only are you gonna get bad feedback, which is going to get your account banned,
but because that market is 100% saturated. Take Amazon. On there, you can’t even dropship from AliExpress
because people are actually buying the products and shipping them into the FBA warehouses. Take the self-stir mug, a staple example here
at Wholesale Ted. On Amazon, it’s selling for $7.99 with free
Prime shipping because competition has massively driven the price down. After Amazon’s fees of $5.30, the FBA sellers
for this mug are only left with $2.70, yet it costs $6.65 to purchase and ship it to
the USA from AliExpress sellers. So the people selling it are losing money
when they sell it on Amazon. So no, do not try to do AliExpress dropshipping
on eBay or Amazon. That is completely saturated. But dropshipping in your own Shopify store,
no, that is not saturated. Or private labeling on Amazon, no, that is
not saturated. Even with YouTube channels like mine teaching
people how to get started, there is still tons of room out there for new sellers and
I think that there probably always will be. Why? Well, it is for two reasons. One, the barrier to entry is much higher. Anyone can go and take an AliExpress product
and slap it onto Amazon but manufacturing and shipping your own products into Amazon,
well, that is a lot more work. But going out there and manufacturing your
own products and shipping them into Amazon, well, that is a lot more work and requires
a much higher upfront investment. Or take dropshipping in your own Shopify store. Setting up that store and running tests for
products is a lot more work than slapping a product on Amazon. Recently here at Wholesale Ted, we released
our premium step-by-step video training course called the Dropship Club. It is a step-by-step video training course
that teaches you how to create a dropshipping store from start to finish. And guess what? There are over 30 videos inside of it which
means that there are over 30 tasks that you need to do to set up your own store. And actually, there are a lot more than 30
tasks because of the fact that some of these tasks, you’re going to have to complete multiple
times. For example, one of the videos teaches you
our methods for setting up Facebook ads. In that, I use one product as an example. Now, the video shows you how to do it for
one product but you’re going to need to go ahead and do that for all of the products
that you are testing. Now, some of you may look at this as a bad
thing. You may think, “Oh darn. I just wanted a free money tree where I didn’t
have to do any work. I guess I’ll go elsewhere.” And you know what? You are more than welcome to. But for everybody else out there that wants
to build an actual business, then you should be happy that this barrier is going to stop
most people. Realistically, as course creators, we are
aware of this. You might find that cynical but the fact of
the matter is it isn’t. Consider how many books you bought with the
intention of finishing and then didn’t. The authors of the book aren’t stupid. They are realistic. They know that most people who start the book
are not going to finish it. Of course, they do their best to try to write
it in a way so that it captures the attention of as many readers as possible. But even the most successful books only have
a fraction of their readers finish it. If Stephen King said, “Nope, I’m not gonna
publish this book because most people who start it are not going to finish it,” well,
that would be pretty sad for those that did read it, did love it, and did actually finish
it. The same applies to those of us out there
that create courses that teach these business models. We do our best to make them as fun and simple
and easy to follow as possible, but realistically, we know that most people are not gonna follow
through and that is okay because for those of you out there that do do that, you can
create a business that can transform your life and that makes it more than worth it. People are busy. They come home from school or work tired. They want to build a business, but unfortunately,
life just gets in the way and that’s okay. I don’t judge anyone. Life can be hard sometimes. But here is something. Even if the numbers of people that followed
through with these courses suddenly quadrupled, it still wouldn’t matter because two, Amazon
and Facebook are growing at an insane rate. Consider this. The last earnings report from Amazon revealed
that they have increased their revenue by 42% and that amounts to tens of billions of
dollars. And consider this. In the past year, Facebook has acquired hundreds
of millions of users. Every month, more buyers flood Amazon and
every month, Facebook adds millions of users to their database. When you combine the insane growth of these
platforms along with the barrier to entry, you realize that saturation is not a problem
at all. But there is something to keep in mind. While the opportunities to sell on these platforms
increases at a much higher rate than new sellers or advertisers, the opportunities to sell
generic products or products that don’t require much creativity like the spatula no longer
exist. In the beginning when nobody was private labeling
on Amazon, you could manufacture and produce generic products like a spatula and make a
killing. But that is now no longer the case. While the opportunities to sell products grow
every day, this only applies to niche products so don’t start an Amazon or dropshipping business
hoping to sell generic products. Make sure you focus on selling niche items. Unfortunately, most people aren’t creative. They just try to copy and sell what other
people are doing and sadly, those people won’t succeed. But if you focus upon finding niche markets,
then you will. So saturation isn’t a real problem but something
else is. Why diversification is key. As I’ve said before on this channel, I set
up my first successful online store when I was 16 and honestly, I wasn’t dropshipping
at that point. I was probably not smart enough to be able
to figure out what that was but I was lucky enough to stumble upon a lucrative opportunity. I would buy Nintendo DS games, which are video
games from the USA, and then I would resell them in my home country of New Zealand. In the USA, a game might cost $20 but back
home in New Zealand, I could sell it for $50, $60. Even after the exchange rate, the profit difference
was huge so I started importing these games in mass from the USA and reselling them back
home. And it was super profitable and as a 16, 17-year-old
making bank, I got really, really lazy and I paid a hefty price for it. Because a few years later, Nintendo announced
that they were no longer gonna keep making Nintendo DS games and systems. Instead, they were gonna replace them with
this, a Nintendo 3DS. For those of you out there that don’t know
much about video games, you might think these don’t sound very different, but trust me,
they are. And Nintendo announced something else. They’re gonna be introducing something with
the new 3DS called region locking. What that meant was that if I bought a 3DS
game like this one here in the USA, that I could not play it on a 3DS system made for
New Zealanders. In other words, Nintendo made it that if you
bought your 3DS in New Zealand, that you had to buy New Zealand 3DS games as well. Whomp, whomp. Just like that. Just like that, my business was destroyed
overnight. And because I hadn’t diversified or reinvested
my money, I was kind of screwed. It set me back a couple of years. I had to go out there and learn how to source
products in different ways using wholesalers and dropshippers, which changed everything. But guess what? I should’ve already been doing that earlier
on in my career because I should’ve been looking for ways to diversify the way that I was getting
my products. I have never, ever forgotten the lesson of
the importance of diversification. And for me, it was the biggest reason why
I started this YouTube channel and I’m sure it’s probably a big reason why most course
creators and affiliates and YouTubers start their own ones as well. It’s because they’ve already got a successful
business and they want to find other ways to diversify their income and business portfolios. And because of the fact that we know that
there’s tons of room for new sellers when you combine exponential growth with barrier
to entry, we aren’t afraid of creating some new competitors. So teaching it is a really fun way to diversify
what we do since, well, I can’t talk for other YouTubers or course creators out there but
I absolutely love talking about dropshipping and Amazon. The honest truth is something that I have
learned is that you never know what’s gonna happen in the future so diversifying is a
really smart thing to do. For me now, because of this channel, I have
skills in video creation, creating YouTube channels, growing them, affiliate marketing,
email marketing, and things like that. And the funny thing is that those skills have
crossed back into Amazon and dropshipping as well. Something to keep in mind though is that for
most of you out there starting your first online business, diversification is a luxury
that you probably, unfortunately, can’t afford to have. Instead, you should probably pick just one
business model and get really, really good at it. Once you’re really, really good at it, you
can then look to diversify your investment and business portfolio but that is something
to think about in the future. And you know, there’s actually a third bonus
reason why I teach others and I suspect other experts and “gurus” out there are doing it
as well. You guys make teaching fun. It may be cliché but it’s absolutely true. I absolutely love this channel. I love the community that we’ve built here
at Wholesale Ted and I love making videos for you guys. Every day, I get tons of really lovely comments,
comments from people telling me that they really enjoy the videos, comments from people
thanking me for the information I’ve shared, comments from people telling me that I’ve
helped them, and comments from people telling me that my videos have helped them quit their
jobs and build a successful online store. I’m a human being and so are other YouTubers
out there. I’m not some sort of a robot. When you guys leave me a nice comment, it
makes me feel great. There are lots of other businesses that I
could’ve diversified into and this isn’t the only one that I have, but thanks to you guys,
this is probably the one that I am the most passionate about. So there you go. There isn’t some big conspiracy. It turns out that the reason why we teach
what we do is because of the fact that we know that there’s lots of room out there for
new sellers and we just really love doing it. And again, a huge part of what makes this
so much fun is you guys watching. So thank you very much for every kind comment
that you have ever left me. It genuinely makes my day. Thanks for watching this video. If you liked it, I’d appreciate it if you
gave it a thumbs up and subscribed to us here at Wholesale Ted for more great videos about
selling online. And if you’ve got any questions, be sure to
leave them in the comments section below. Here at Wholesale Ted, we do get a lot of
questions but we try to answer as many as we can. And if you would like to start your own online
business but you don’t know how, then you should be sure to download our free eBook,
“How to Make $10,000 a Month Online With Dropshipping.” You’ll find a link on how to download this
eBook in the video description below.

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