- In today's video, I'm gonna be talking about
how I operate a business that generates
at least $500 profit every day selling supplements online.
Let's get into it.
(gentle music)
Hey everyone, and welcome to today's video.
My name is Kris McCauley.
And before we get into things,
I want to say a couple of things first.
My 40-page e-book, "Online Arbitrate, Start to Scale"
is now free on my website.
All you have to do is enter code 0830
at check out and you will receive that discount.
Secondly, I always give a one-hour call
to someone who likes subscribes and comments
on my videos and this video I'm actually giving away two
of those calls right here reach out to me guys
via social media and we can definitely set something up.
And the last thing I want to say is,
this video is not intended to brag, boast or anything like
of the sort I know people that are
doing much larger numbers than these.
On this channel I share what I'm doing.
My successes, my failures and maybe to prove any
of the doubters wrong
that you you can do this full time
that you can really succeed at this with the right mentality
and with the correct work being put in.
Okay, so I broke this video up into two chapters.
Chapter one is the lead up or the build-up
of how this all came to be and chapter two is just the work
that goes in on a day-to-day basis.
Now the lead-up chapter one I think is really important
because I could tell you guys what I'm doing,
but without knowing my mindset,
I don't think it's gonna have as much of an impact
and hopefully the showing my transition is going
to help people out because for me as an entrepreneur
over the last couple of years of doing this full time
one of the hardest parts has just been transitioning
from one thing to the next.
Okay, so I'm gonna go ahead and flash back
to July of this year 2018 and to give you guys
a picture of where I was at and for anyone new here
basically in summary what I've been doing
for the last year and a half is forms of arbitrage
where you go buy items from retailers
to send in to Amazon for a profit.
You can do this, you can make a lot of money doing this
and this can be done online or you can go into the store
and there's tons of videos on YouTube about that
and I've actually built my channel
around that in the past as well.
So I'm completely rebranding my channel
but there came a Tipping Point.
Okay, so the more money you make the more you have to spend
in order to make that money grow.
And basically that means you're gonna have to do
more product research find more items, right?
So it came down to a decision.
I could either start hiring on Virtual assistants
from the Philippines I pay $4 an hour, $3 an hour
to help me research these products
and scale up that way or I could completely take a step back
and work on building up wholesale leads
and buying items in bulk from companies, suppliers,
so I can become a retailer for them.
And so what I ended up doing was I ended up choosing
the latter option which is find wholesale suppliers,
but it's not that easy because in essence
what I was doing was I was delaying
something that could currently make income for something
that could make me more income in the future.
and there were two real reasons that I was able to do this
that I myself felt comfortable
for doing this in my scenario.
The first reason was was just my current income streams
I had set up.
So at the time I was making a couple thousand dollars
a month from YouTube, couple thousand dollars profit
from my eBay store and about four to $5,000 a month profit
from my Amazon business.
The YouTube and the eBay were taking
about 20 hours of my time per week
and the Amazon side of things was taken around 40 to 50.
So what I decided to do was I would just focus
on YouTube, eBay and then my Amazon business.
I was just basically going to let run its course
and all of my inventory in Amazon let it sell out
and that's exactly what I did.
And number two, the second reason
why I felt comfortable enough to basically
take this leap in the wholesale was at the time
I just gone to a trade show a really didn't go
as I had planed and I was helping an old friend
get caught up to speed on Amazon.
He works a nine-to-five.
He still does work is 9 to 5.
It was after a couple weeks of doing arbitrage
and he hits me up and he's like look I can see
why you can make good money doing this
but it's extremely tedious and it's not very fun.
I have a list of 350 distributors.
Let's say we become partners and we go into this full force
and I said sure.
So between those two things I felt comfortable
going in at this full force.
I went into this with the mentality of this has to work.
There's no ifs ands or buts about it.
If this guy can do it I can do it.
There's no questions failures not
an option kind of mentality.
And so we started I think we went through
that list of distributors and about two weeks
we were calling 25 to 50 calls per day per person.
So and then you know all the phone calls that went
it was kind of like a sales job.
And so we were just we kept reaching out to different people
different distributors everything
and slowly in this time frame is where I learn so much
about things outside of Amazon, right?
I learned about supply chain outside of the Amazon.
I learned about know the ways different business operated.
It was one of the best things that I ever did
and it's actually really made me enjoy cold calling.
We were steadily making progress here and there
we found you know, maybe a small supplier
here just enough progress to keep us hungry
to feel like we were accomplishing something
and then it was in October we found the supplier
we're working with today.
And this supplier, we now have another supplier,
very very similar, and we're scaling at a very rapid rate.
I believe at the time of this video
we have just crossed the 100K mark
for the last 30 days in our business.
Once again, that's not profit,
but just gross sales and business.
There were really two key things
that allowed us to land the supplier.
Okay, number one was just narrowing down
in a very specific niche.
So at the time doing all these calls
we were in three different markets
one was beauty, one was health, one was toys
and we just ended up narrowing down.
So based on now my business partner's and I experience
with supplements we both love working out.
We both know a lot about supplements
combined with the knowledge we have on Amazon.
So Amazon's the playground and it's about how
can we incorporate that knowledge inside of Amazon?
It really allowed us to succeed
because there's so many great markets out there.
There's so many great markets
that it's really, it can get overwhelming.
So I just would recommend people may be focusing
on something they're passionate about
or that they know about and then that's number one
and number two is negotiation.
That's how we were able to land this up.
Negotiating is a video entirely on its own
but what it really comes down to as
how can two parties benefit off of one transaction
and this may not be as cut-and-dry, is that right?
Because as entrepreneurs we our job is to get creative
and figure out solutions to problems
and that's what we did here.
So we were analyzing things on our and were like,
what we really want to carry this brand.
So we had to look at things on our end.
How can we carry this brand in our store?
What can we do on our end to cut costs
and work with the margins they're giving us?
And maybe what are some things that the supplier
currently isn't doing that they could do to shave costs
on their end and that's exactly what we did.
Okay the day today now that you guys know the lead up
and how this all kind of transpired very quick version.
I'm going to go talk about how this business operates
at a very high level how we're continuing to scale and grow.
So first off we have a virtual assistant that works
for six days a week four hours a day for product research.
And usually this VA will find about eight brands a day
that we can work with and out of those eight
maybe we only work with one or two, potentially 50 brands
a week are coming to us that we can potentially source
and maybe there's five good ones.
That means that that's 20 a month
and we can potentially bring on four to five a month
and then we have a bunch of backlog.
So that's good.
Now the other three components of our business really
we're dealing with inventory management, supply chain
and cash flow basically in a nutshell.
We have enough cash flow to keep everything in stock
and everything gets from the supplier into Amazon
as quickly as possible and that we never run out of stock.
So all that has to happen and what that entails is.
So Inventory management what that looks like
is just analyzing current suppliers that we're dealing with,
products that are in stock or out of stock.
Well how many we need to order
and then potentially new items and how many we need to order
from that new supplier and right now
everything's getting done manually,
but we're about to switch over
to a software called for casterly.
It really helps manage inventory levels.
So we're probably going to work on that here
in the upcoming weeks to help make this
a bit more streamlined then we also we actually just brought
on someone to help prep, so we prep everything in-house.
So when something comes in either comes to me or Drew
or somewhere like that and we are prepping these ourselves
for two reasons one a prep Center is more expensive
than prepping it yourself.
Number two is the time, we can get items out way quicker
and faster than a prep facility.
So a third party prep facility may
take a day may take 2 days,
but we can get everything out same day.
That means that have 300 units show up that 10:30 a.m.
They're out tend to UPS before 4 or 5 p.m our time.
that's huge for us, so like I said,
we just brought someone on
and it's just about building up that system.
Eventually we wanna get to the point
where we've got three, five people 2,000 units come in
and they're just all prepped ready to go, done.
And then the last thing is just cash flow management.
so it's kind of a balancing act
even though we've got two people and we've got liquid cash
then we have credit lines and then we have basically not 30.
So cabbage.com as this net 30 for Amazon sellers
or e-commerce people where they actually give you cash
and you get 30 days to pay it back.
And so we're only buying a week's worth of inventory.
So we know our supply system down to where we will have
that cash back in our bank accounts before 30 days is up.
If that does not happen, you're going to get hit
with fees and you do not want that.
That's why I always tell people do not start doing this
with other people's money because if you start doing it
with other people's money, you can dig a really big hole
for yourself quickly.
If you do not know what you're doing
that is a really high level overview
of how everything kind of transpired
what we're doing how we're growing.
I wouldn't be working so much if we weren't
actually trying to scale as rapidly as we are
but we're not trying to maintain we're trying to grow,
I think at the time of this video
we're at around that 90k per month mark
and our business gross sales, that's not profit.
But we want to make that grow and we wanna grow this
into a real business.
So I'm gonna go ahead and close out here
and I hope you guys enjoyed this.
Let me know if you guys like this kind of content
in the description below and I will see you next time.
Hey everyone, if you enjoyed this kind of video,
feel free to like and subscribe.
Also join that Facebook group in the description below
we're are pretty active and I have announcements
I'm making their that I do not put in my video.
So definitely join and I'll see you guys in there.
(chill relaxed music)