In the last ten years, the words ‘passive income’ have become extremely popular in the digital space we now live in. Everyone loves the idea of being able to generate income while they sleep, but few ever reach that point.
Earning passive income is totally possible – provided you have the right amount of determination and a good business model.
With this in mind, I’ve put together an in-depth guide to get you on the path to earning passive income in a way that’s perfect for beginners and doesn’t require a huge up-front investment like many other business models do!
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Before we dive in, I want you to do a short exercise that my mentor Jay Abraham taught me.
Take a pencil and paper if you’re at home or at your office, and draw, first of all, a diagram of a diving board – a little short vertical line with a very long horizontal board on the top.
I want you to envision that, right now, the long line represents your job and career.
If you’re just supporting that aspect of your life with one way of seeing things, or doing things, you’re compromising your ability to have so much more achievement, so much more wealth and so much more control of your life.
Now, for the next picture, (turn it over and draw on the other side if you need to) I’d like you to draw your version of the famous Greek Parthenon.
It’s that building with many, many columns supporting it. You can have seven columns. You can have eight columns. You can have ten columns. You can have all the columns you want.
Think of those columns or pillars as additional income streams, as different ways you can add value in the world.
If you’re relying on just one source of income or just one way of contributing, then your business or career looks like a diving board.
Because it’s long and only held up by one pillar, it doesn’t take much to simply knock it over.
However, if you have multiple streams of income, your business or career looks more like Greek Parthenon. And because of its design, it’s much harder to knock down, right!??
We’ve all seen businesses fail, and people losing their jobs in recent times. Today I want to talk to you about one way that you can slowly, and steadily build an additional passive income stream that will better support your livelihood by building your own version of the Greek Parthenon.
Multiple Streams of income.
And today I want to talk about one in particular…
I hear you asking…
What does FBA even mean?
Isn’t Amazon completely over-saturated?
(HINT: it’s definitely not!)
Is it even profitable?
And if it is, how do I get started?
My goal in this post is to explain everything above so you can get a much better understanding of what Amazon FBA actually is, and show you just how possible it is to create a seriously profitable side income stream (or replace your income completely) with this simple online business model.
Are you ready?
Let’s get started.
FBA is short for Fulfillment by Amazon.
And as individual third-party sellers, it’s a great way of using Amazon’s infrastructure to sell our own branded products on the Amazon platform through something known as Private Labeling.
A private label product is manufactured by a supplier (usually in China), then sold under a brand name. You can specify everything about the product – what goes in it, how it’s packaged, what the label looks like – and pay to have it produced and shipped to you.
(The shipping part is very straightforward, especially when you ship products into one of our SuperHero Freight hubs, outside of Amazon. More on shipping later in the guide.)
The great thing about Amazon FBA is that 80% of the work is done for you, on your behalf. You don’t need to worry about packaging products, sending those products out to customers, or dealing with customer support and returns.
You don’t need:
- A warehouse (and all those expensive overheads!)
- A multilingual customer support team
- Or staff to run your warehouse
Amazon provides all this for you.
Amazon is the world’s #1 eCommerce marketplace.
Marketplace = a place you can ‘plug in’ as an individual seller to sell your own branded products.
And right now, Amazon (and e-commerce as a whole) is BOOMING — even during the pandemic…
Amazon currently averages about 300 – 600 sales a second, depending on the time of year on Amazon.
There are approximately 350,000,000 different products for sale on Amazon as well. It’s inevitable that these numbers will only continue to grow and demand will rise with it!
Basically, hundreds of millions of people use and trust Amazon.
They aren’t skeptical and you won’t need to convince them to purchase from Amazon.
And what’s more is that YOU get to leverage their name and brand, making it WAY easier than selling anywhere else.
Amazon is essentially a search engine, which allows you to get organic traffic and sales by knowing how to rank your product in search. They also have an advertising platform that helps you attract additional customers to your Amazon listing.
The benefits to selling on Amazon literally are endless…. and you don’t have to do much compared to any other business out there. And once you have a product selling on Amazon and consistently making sales for you, there isn’t much required to keep it going.
We’ve got hundreds of our members inside the Marketplace SuperHeroes community generating thousands of dollars (on autopilot) with hardly any maintenance because it just remains steady and consistent.
Put simply: starting a business based on Amazon is a HUGE opportunity right now that’s available to practically anybody looking to ‘plug in’ and make a part or full-time income.
At the time of writing, Amazon has 18 marketplaces worldwide, all of which allow third-party sellers like you and me to list and sell our products. And through these marketplaces, Amazon offers over 350 million products (that’s a LOT of items!)
Whether you’re based in the USA, the UK, or another country, you can easily set up and sell your products in more than one Amazon marketplace (and it’s really straightforward to do!)
That exposes you to millions of customers across the world, making it possible for you to multiply your profits with practically no extra work involved.
This ‘marketplace multiplication’ can completely transform your business.
In fact, we created a simple formula to show you its potential…
The Rule Of 5
At Marketplace SuperHeroes, whenever we are explaining how our business model works, we talk about the rule of five.
In simple terms, we’re saying that if you’re:
- Selling 5 units per day,
- 30 days a month,
- In 5 different countries,
- At an average of $5 net profit per sale…
You’re running a net profit of $18,750 per month!
Now that’s impressive!
A lot of people get excited when we talk about the rule of five, but in order to achieve it, we have to make sure our profit margin is at the right level.
So if you’re selling something for $20, your profit margin must be 30% of the sale price. That’s how much we have to be making in net profit before tax.
In other words, after all, is said and done, we must be putting 30% of the sales price back in our pocket…
Or invest it back into our business…
Wherever you want to put it!
That’s the beauty of doing this on a global scale.
Why Invest In Physical Products?
As you can see, this business model itself is built like the Parthenon, with multiple pillars of income coming from multiple products in multiple markets.
But there’s one more aspect of this that I’d like to explain, and that is why this business is VERY much like investing.
People even build this type of business as part of a retirement plan.
When we invest in physical products using our model we are typically looking for a 100% growth in the capital we spent to purchase the products. That means when we invest $3,000 for example we expect to get back $6,000 once Amazon’s selling fees have been deducted from the sales price.
Now imagine you can do this 2-4 times per year, per product. You’re not only seeing 100% ROI, you can see 200-400% returns depending on how long it takes for your product to sell out.
You’ll be hard-pressed to find these figures for ANY investment you make.
When you can do this repeatedly and systematically, what you are really building is an investment vehicle.
We get this question all the time
We are all about building long-term wealth. Building this type of business is definitely not a get-rich-quick scheme. Nor will it take 20 years for you to see returns. But it is something that you can absolutely do on the side to begin. In fact, we encourage our members to do this alongside their current job or business.
Before I head off, I want to draw your attention to two powerful case studies from fellow digital marketers who have built hugely successful Amazon businesses on the side.
Jesse, who owns his own digital marketing agency, has built a 7-figure Amazon business on the side.
And Alex, who is actually our head copywriter on the team has built his Amazon business on the side too, while continuing to freelance as an email copywriter, travel the world, and build his own YouTube channel!
To wrap this up, I’m sure you can now see how real the idea of generating a healthy passive income really is with an Amazon FBA business. Don’t just let this sit gathering digital dust!
Of course, it will involve some upfront work, but the rewards are definitely worth it. So what are you waiting for? Start now and begin creating a new stream of passive income today.
Register here for our free training. See you there!
Guest author: Stephen Somers is CEO and co-founder of Marketplace Superheroes – an 8-figure online education and services platform that teaches people how to build a 5-7 figure business selling simple, everyday items globally on Amazon.
The post How to Start an Amazon FBA Business That Earns 10k+ a Month in Passive Income appeared first on Jeffbullas’s Blog.