WEBVTT 00:00.110 --> 00:00.560 All right. 00:00.560 --> 00:04.160 So let's get into the golden rules for product selection. 00:04.160 --> 00:08.690 These rules are going to follow you throughout this course throughout your journey to building your 00:08.690 --> 00:09.860 fantastic business. 00:09.860 --> 00:15.650 Because not only do they ensure that you're getting at least $10 profit for every sale, but it also 00:15.650 --> 00:19.640 ensures that you're selecting the right products products that will sell. 00:19.640 --> 00:23.660 So the first golden rule, as you might expect, concerns the price. 00:23.660 --> 00:25.940 And this really is a key point. 00:25.940 --> 00:31.610 So what we need to do is to buy our product at $10 or less. 00:31.610 --> 00:35.930 And of course, at the moment we are sourcing those products from dropshipping. 00:35.930 --> 00:41.080 And then we're going to sell them on our site on your site that we're building, of course, between 00:41.080 --> 00:42.950 25 and 30. 00:42.950 --> 00:50.780 So you can see there that there's a profit margin of between 15 and $20 more than the $10 I said before. 00:50.780 --> 00:52.100 But there's a reason for that. 00:52.100 --> 00:56.330 And that's because we will have some expenses, for example, traffic. 00:56.330 --> 00:59.990 Although of course I will be teaching you free traffic techniques later on. 00:59.990 --> 01:05.150 But nevertheless, I hope it's very simple for you to see how we can achieve a profit margin of at least 01:05.150 --> 01:06.860 $10 every time. 01:06.860 --> 01:10.760 So there's a couple of key points that I want to point out within this point. 01:10.760 --> 01:16.190 The first one being that sometimes people say to me, well, how can you buy something for $10 in this 01:16.190 --> 01:20.900 case and then pass it on to the end user for 25 to 30? 01:20.930 --> 01:22.280 How is that possible? 01:22.280 --> 01:28.040 Well, my answer to that is that's how commerce works throughout the entire world. 01:28.040 --> 01:33.500 Everything you buy, you are buying from somebody who has marked up the price. 01:33.500 --> 01:37.400 Otherwise there would be literally no point that person being in business. 01:37.400 --> 01:38.930 That's how it operates. 01:38.930 --> 01:44.330 Essentially, everybody in the supply chain is buying for one price and then selling for a price that's 01:44.330 --> 01:45.590 significantly higher. 01:45.590 --> 01:52.160 The second point, and this is really important, is that that price point of 25 to 30 isn't just chosen 01:52.160 --> 01:52.910 randomly. 01:52.910 --> 01:58.730 It's there because this is a fantastic price where people will buy products on impulse. 01:58.730 --> 02:01.070 And the key word there is impulse. 02:01.070 --> 02:02.570 Really keep that in mind. 02:02.570 --> 02:08.240 And just to perhaps try and make that a bit clearer, let's imagine that we were selling TVs on our 02:08.240 --> 02:10.730 site for $500. 02:10.730 --> 02:16.460 In other words, a price that's way higher now, the decision making process that goes on when we buy 02:16.460 --> 02:20.090 something for $500 is completely different. 02:20.090 --> 02:25.400 What we will do is we will find something on an e-commerce site somewhere, or perhaps in the real world, 02:25.400 --> 02:27.260 and then we will make comparisons. 02:27.260 --> 02:34.010 Maybe I can get that TV for 470 or 490, or maybe somebody doing a bundle of products. 02:34.010 --> 02:37.280 Whatever it is, we go off and we look for a better deal. 02:37.280 --> 02:39.530 That's typically what people will try to do. 02:39.530 --> 02:42.980 But when we have a much lower price point, that doesn't happen. 02:42.980 --> 02:46.010 People are far more likely to buy on impulse. 02:46.010 --> 02:48.590 And for us, that's a big advantage. 02:48.590 --> 02:53.750 Okay, so the second golden rule is that you don't want to be selling products that are too heavy. 02:53.750 --> 02:55.880 Now, this is for a very simple reason. 02:55.880 --> 02:59.510 And that's because heavy products cost a lot to ship. 02:59.510 --> 03:05.240 We do not want to have very high shipping costs because it would eat away at our margin, and we risk 03:05.240 --> 03:07.220 making little or no profit. 03:07.220 --> 03:10.610 Thirdly, we don't want to sell products that are too fragile. 03:10.610 --> 03:11.330 Why? 03:11.360 --> 03:13.520 Because we will get lots of returns. 03:13.520 --> 03:18.470 It's not too difficult to imagine that if the product arrives at the other end in bits, we're going 03:18.470 --> 03:19.520 to have problems. 03:19.520 --> 03:23.420 So we really don't want to sell fragile products after that. 03:23.420 --> 03:25.460 We have high quality images. 03:25.460 --> 03:28.100 Now this is something that's often overlooked. 03:28.100 --> 03:30.290 Images sell products. 03:30.290 --> 03:33.710 Yes, words are important, but it's the images that sell. 03:33.710 --> 03:35.570 That's the thing that draws our attention. 03:35.570 --> 03:38.090 And that's ultimately where we make our decision. 03:38.090 --> 03:40.850 So we can't afford to have poor images. 03:40.850 --> 03:45.320 We have to have high quality images on our product page. 03:45.320 --> 03:49.730 Next up, you really need to avoid all branded products. 03:49.730 --> 03:52.400 And really what I'm talking about here are the big brands. 03:52.400 --> 03:58.280 You know you can't be selling like Nike or Harry Potter or any of these household branded names on your 03:58.280 --> 04:02.420 store, because to do that, you need a special reseller license. 04:02.420 --> 04:05.300 So we want to avoid all branded products. 04:05.300 --> 04:09.500 Now there are many products that kind of look like they might have a brand. 04:09.500 --> 04:14.540 It's often a little bit of a grey area, but a quick tip to help you decide whether the product is branded 04:14.540 --> 04:17.240 or not is simply to search for it on Google. 04:17.240 --> 04:23.600 If it is a brand, it should show up with all the normal social media, website, etc. but if you are 04:23.600 --> 04:29.150 in any doubt and this is really important, if you're in any doubt, move on and find another product. 04:29.150 --> 04:33.200 And then for number six this is very important as well. 04:33.200 --> 04:37.820 All of these key points are really important, but perhaps this one is a little bit more difficult to 04:37.820 --> 04:38.390 interpret. 04:38.390 --> 04:39.620 So let me help out. 04:39.620 --> 04:43.370 So first of all psychologically that's why we buy anything. 04:43.370 --> 04:47.960 We either buy something because it solves a problem or it caters to a passion. 04:47.960 --> 04:49.670 So I'm selling dog products. 04:49.670 --> 04:55.550 As you know, if I was going to sell a product on my store that solved a problem, I could, for example, 04:55.550 --> 04:57.770 sell dog leads that light up. 04:57.770 --> 04:59.600 Now why would that be solving a problem? 04:59.860 --> 05:05.560 Well, when people take their dogs out at night, their dog in many cases is not visible, which could 05:05.560 --> 05:08.800 put the dog at risk to traffic, and it makes the dog owner nervous. 05:08.830 --> 05:09.700 It's a problem. 05:09.700 --> 05:13.930 It's a problem that needs a solution, and a dog lead that lights up would solve that. 05:13.930 --> 05:19.180 An example in the same niche that were catered to a passion could be clothing for dogs. 05:19.180 --> 05:23.320 Now this is not my thing necessarily, but it is a huge market. 05:23.320 --> 05:25.780 People buy clothes for their dogs. 05:25.780 --> 05:28.840 Now let's be honest, that's not really solving a problem. 05:28.840 --> 05:34.030 A dog does not necessarily need a jacket, but it does cater to a passion. 05:34.030 --> 05:39.310 Many dog owners love to dress up their pets simply because it makes them look cute. 05:39.310 --> 05:41.470 It makes the dog owner feel great. 05:41.470 --> 05:43.480 It caters to their passions. 05:43.480 --> 05:44.620 So there you go. 05:44.650 --> 05:47.230 Those are the golden rules for product selection. 05:47.230 --> 05:50.980 And in my opinion, that's worth the cost of this course on its own. 05:50.980 --> 05:56.530 Because what you're looking at, there is years and years of experience experience that works. 05:56.530 --> 06:01.870 So please keep these in mind all the time and in fact, what I've done in the resources section of this 06:01.870 --> 06:04.180 lecture is given you a PDF. 06:04.180 --> 06:06.100 So you might want to print it out. 06:06.100 --> 06:10.030 You might want to keep this by your side as we continue on this journey. 06:10.030 --> 06:14.710 And with that in mind, and all of this great knowledge that you're starting to pull together, I really, 06:14.710 --> 06:18.820 really hope you can see how much value I am trying to give you here. 06:18.820 --> 06:21.760 It really is my mission to help you succeed. 06:21.760 --> 06:25.810 So let's start selecting products and putting them onto your site. 06:25.810 --> 06:28.330 Let's take your business to the next level.