This year is already flying! Spring is (mostly) here! I’ve not managed to get many posts up recently, but I have a lot of thoughts in my head and many ideas, strategies and case studies to share. My hope is to have at least a couple great posts this month! There is a lot that is working, and a lot that is not! Unfortunately, March consisted of analyzing a lot of what isn’t working with the hope of making next month better! Don’t get me wrong, it’s still been a great month, but when I compared to last month and last year… it certainly could have been better!
SOURCES OF INCOME:
I’ve spent a lot of this month looking into some new income ideas. It would probably benefit me to implement the 80/20 rule- spending 20% of my time looking into new things while spending 80% of my time focusing on building up what is already working. I would blame some of the decline of income on “distractions.” I put that in quotes because these ideas are only distractions when I’m reading about them at the expense of my regular income. If I keep the 80/20 rule in mind, these “distractions” could very well become my next stream of income. I’ll keep you posted on that.
For now though, let me list the “regular” income:
-2 Amazon.com seller accounts
-1 Amazon.ca seller account
-2 Ebay seller accounts
-1 profitable website
-Kindle income (from my relatively new kindle book)
affiliate accounts (including Amazon associates, clickbank and many more- see the full report for details)
-undisclosed source of income (though this made no income this month)
THINGS HAPPENING IN MARCH
I am learning that there is simply no such thing as “set it and forget it.” Yes, I already knew this, but one can hope right?! More and more people are discovering selling on Amazon and this means more competition! Things aren’t as easy as they were when I first started. However, I see this as a good thing because this gives me challenges which forces me to innovate and build more value for the customer. It forces me to figure out what I have to offer that nobody else does. It also forces me to think of long-term strategies. For instance, I still love the concept of arbitrage and selling media online, but with Amazon’s new restrictions on media, this strategy may not be possible any longer for a number of sellers. You can see my most recent thoughts on this HERE. Arbitrage still works and it works very well! However, some sellers predict there will come a time where Amazon will want to only work with sellers who are buying from wholesale source. (I personally don’t see things going in this direction, but with Amazon making the rules, anything is a possibility!) Buying low and selling high on Amazon is a great way to get started, generate income, and even provide for a family, but in the end, it’s not as secure as some other models. It’s also not very easy to sell a business based entirely on buying low and selling high on Amazon! Wholesale solves many of the issues that arbitrage introduces, but is ultimately still a race to the bottom on Amazon (the seller with the lowest price gets the sale!). Private labeling gives you a unique listing on Amazon, but lately so many sellers have been coming on board with private labeling due to popular courses like Proven Private Label (which will soon be integrated into the Proven Amazon Course) that it can be a struggle to make your product stand out!
For me, all of these “negatives” have historically motivated me to think outside the box and make things happen and I’m determined to continue this trend! Much of March was spent looking at opportunities to diversify income, but much of it was also spent analyzing what is not working- particularly on my websites. I’ve gained a lot of insight through hours of analysis, but this is fit for a separate post! Stay tuned for that! All of this to say, a great plan is developing to move forward into even greater success (while maintaining everything that continues to work of course). Ultimately, I’m understanding more and more that making a living online is all about adapting, growing, learning, changing. It’s never done and I can never simply set back and enjoy money endlessly rolling in (though I can do this for seasons which is a big advantage over a traditional job!)
Now… lets get down to the bottom line!
Amazon account 1: $27,609.19
Ebay Account 1: $270.96
Ebay account 2: $177.37
Website income: $301.45
Total Physical Product Sales: $43,679.11
35% (approximate profit margin) = $15,287.68
Amazon Associates: $52.86
(Products owned by Jim Cockrum) includes:
Kindle (Six Step Six Figure System): $252.89
Total affiliate income (and other “costless” income): $781.37
GRAND TOTAL ESTIMATED PROFIT FOR THE MONTH: $16,069.05
LAST MONTH’S ESTIMATED PROFIT: $17,216.30
LAST YEAR’S ESTIMATE PROFIT: $20,659.64
FROM LAST MONTH: DOWN $1,147.25
FROM LAST YEAR: DOWN $4,590.59
To be perfectly honest, I’m a little surprised I did this well in March. Although I glance at the numbers on a regular basis, I don’t do a full breakdown like this until the end of the month. Yes, I was down almost across the board, but by the feel of things (very very low sales for many days at a time) and by my estimation from quick glances at the numbers, I thought I was a lot worse off!
One thing that really surprised me was that I’m just over $1000 down from last month, but almost $5,000 down from last year! This prompted me to go back to last year’s income report. My eyes were opened when I saw that I had a fairy new branded product that really started gaining traction back in March! I am still selling this product and it’s going well, but the price point is almost $10 lower than when I started due to fierce competition! This reinforces what I’m seeing again and again- it is better to sell higher priced, higher profit products than lower priced low profit products- even if the volume on the lower products is higher. For instance, if I have a product that makes me $50 per sale, I only have to sell 100 to reach $5000. If I sell another product that makes me $5.00, I have to sell 1000 of them to make the same profit! This is a big difference! With the way I pick niches, I’m very likely to sell 100 of a product in a month, and very unlikely to sell 1000 of a single product in a month (no matter how low cost!)
I’ve got several products “in the pipeline” but have been ordering numerous samples and have not pulled the trigger on any of them yet. My plan is to have at least 2 new products available by mid-May. I believe this is really going to help sales! All in all, I’m quite happy with the numbers!
If you have thoughts or would like to share what’s going on in your business, please comment below! If you’re just starting out and want some actionable ideas to build capital and the best type of inventory to invest it in, I’d encourage you to download my free ebook “System Start Up” below! As always, I really appreciate you reading!