Drop Shipping to Brand Building: A How-To Guide
Dropshipping is a form of retail business wherein the seller accepts customer orders but does not keep goods sold in stock.
Many use Facebook ads to effectively run their own affiliate store for retail goods. This business model has been proven to be wildly successful for many, many folks for many years. Sadly, nearly all those who partake in this business model fail to create a long tail capitalization of this strategy.
The biggest mistake most people make is chasing down winning product after winning product. Having to build new sites, new pages, new accounts for each and fighting to get good CPAs while struggling to keep their ad account live. This is the usual lifecycle of the VAST MAJORITY of advertisers that use this business model.
Here is the biggest flaw in the plan... they don't build brands, they chase down products.
A product isn't a brand... If you have to start over each time, then each effort is not incremental, or complimentary. They are all independent.
Building a brand is a different process.
Building a brand is about Vertical Integration. Find complementary products that fit your winners. Let your existing customer base find additional products and services to buy.
Test new products by adding post-transactional upsells, and showing existing buyers emails with potential new products.
What do buyers want?
Where do we get extra money for "free"?
If something does really well... let's make it a 2nd product for this same brand... do this 3 or 4 times, and boom... you have a brand, and you can buy to LTV, and scale a business even while losing money on Facebook.
I've scaled tons of brands at a less than 1x ROAS... and CRUSHED...
ROAS is a weak flex, of people who don't understand macro business economics.
Let's win together, instead of be driven by low integrity data point
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