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馃憖 What You NEED To Know Before Dropshipping - YouTube
Channel: Wholesale Ted
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you know what despite the several
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successful dropshipping case studies on
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this channel i still occasionally get
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people leaving comments like drop
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shipping is dead if it was ever properly
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alive to begin with increasing e packet
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rate it literally kills drop shipping
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it's too late for this business
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most businesses fail i will never waste
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my time and money trying to start a
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business ever again and if you're smart
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you'll do the same thing
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hmm yeah well okay obviously i strongly
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disagree with those comments because
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here's the thing a lot of people will
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say things like drop shipping is dead or
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it's too late or businesses don't work
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and the reason why they're saying these
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things is because they are making
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several assumptions that are all wrong
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and so if you are looking to start a
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store it's crucial then that you
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understand what these assumptions are
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before you start drop shipping so that
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unlike these people your store can be
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successful because no it is not too late
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one people won't buy from you they'll
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just buy from amazon instead but wait
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sarah you ask why would anyone buy
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products from me if they can buy
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products directly from amazon themselves
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now it is absolutely true that if you
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head on over to amazon that you will
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find lots of products that can be
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purchased directly from aliexpress
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sitting on amazon's digital shelf as
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well and of course if customers were to
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purchase your products on amazon they
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would then get to take advantage of
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their prime two-day shipping so how on
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earth could drop shippers successfully
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dropship these guitar coffee spoons with
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two to three week shipping via china's
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cheapest fastest shipping option a
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packet when a customer could come and
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buy them on amazon with two-day shipping
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i mean come on sarah just think about it
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amazon is only growing in q3 2019 their
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product sales were up over 17
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from the same time in 2018. won't amazon
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steal away all of our sales
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no
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no they will not you see here's the
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thing there is some truth to these
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comments amazon is arguably the better
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deal for usa citizens it is better for
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the consumer to purchase the products on
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amazon so if they figure out that the
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product that you are selling them is
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indeed on amazon for purchase you can
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bet that amazon will take that sale away
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from you but you know what we literally
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don't care and you know what drop
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shippers never have the sorts of people
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who see a product and decide that
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they're going to research the absolute
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best deal for it were never our
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customers in the first place nope it's
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the 44 of people that impulsively
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purchase products online that we are
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targeting and of course as shown by how
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millennials are even more prone to
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impulsive purchases with 80 of them
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impulsively buying products the overall
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percentage of impulse e-commerce
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purchases for us to target as drop
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shippers is only growing and growing you
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see successful drop shipping stores are
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built around that target customer the
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type of customer that enjoys impulsively
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purchasing products it also means that
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the successful drop shipping stores are
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usually built around selling products
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that spike an emotion in a customer that
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makes them think i need to buy this
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right now it's why this aliexpress dog
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caller has made hundreds of thousands of
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dollars
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the advertising dropshippers used spike
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fear and dog owners pointing out how
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many dogs dying in car accidents each
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year from not being seen that is why
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when recently i saw this comment from
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this viewer asking why their online
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store wasn't successful i pretty much
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instantly knew that the store would be
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selling extremely boring products and lo
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and behold i was right now of course
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this is actually a print on demand store
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not a drop shipping store but the exact
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same principle applies why would
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somebody want to buy this hoodie when
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they can go to amazon and find cheaper
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hoodies and shirts with inspirational
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messages on there because here is the
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reality typing vision in a plain white
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circle is not exciting so let's compare
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this hoodie to this hoodie what is the
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difference between the two well the
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difference is that one hoodie is very
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boring and the other is extremely
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interesting unique and unlike anything
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people are likely to have seen before
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which is why this hoodie's facebook
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advertising campaign made so much money
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for the successful aliexpress
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dropshipping store freaky pet and of
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course if you're ever wondering this
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exact same answer applies to the people
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that ask the question why would
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customers not go directly to aliexpress
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themselves well again it's because good
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aliexpress drop shippers sell products
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that trigger emotions on people and get
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them to impulsively buy their products
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so that they never even think to go
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check if a product is on aliexpress
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because they see and go that's so
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amazing i must buy one now and by the
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way if you've learned something from
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this video and you would like to learn
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even more about starting a successful
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drop shipping store then be sure to
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subscribe and click that little
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notification bell next to it so that you
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don't miss out on any of our videos two
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dropshipping is a scam i just want to
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quickly address this because these
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comments are really dumb you know you
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might have noticed that earlier in this
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video i freely admitted that it would be
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a fast superior financial choice for a
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customer to buy this hoodie on amazon
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with two day shipping for a fraction of
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the price compared to what they would
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pay for it on freaky pet and so what do
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people say to that oh the customer can
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get it cheaper elsewhere quicker that
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makes your store a scam nope it does not
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number one if it weren't for your
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facebook ad the customer would never
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have known about that product that they
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really enjoyed getting in the first
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place people really love this hoodie and
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we're really grateful that it was
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advertised to them and they bought it
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you had to pay for that advertising to
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do that which you pass on to the
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customer amazon doesn't advertise
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products customers have to find them
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themselves and number two as an
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entrepreneur you are in no way obligated
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to offer your product for the lowest
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price here are two coffee shops around
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the corner from my apartment they are
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across the road from each other i walked
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into coffee shop a and bought my
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favorite coffee a long black for three
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dollars and yes i know that overseas the
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phrase long black might conjure up some
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different thoughts but here in new
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zealand and over in australia too a long
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black simply refers to pouring an
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espresso shot over 100 to 120 mls of
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boiling water to create a stronger
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version of an americano with creamer
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next i went into coffee shop b and again
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order long black but this time it cost
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four dollars completely different prices
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for an extremely similar product and you
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know what coffee shop a's three dollar
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coffee was the best would you say that
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coffee shop b is a scam for charging a
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higher price for a worse version of this
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coffee no you would not pricing is
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entirely subjective and is actually
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determined by the customer not you you
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present the customer with the price and
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it is up to them to decide if that price
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is worth it or not and at the end of the
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day if freaky pet are able to create a
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marketing campaign that gets people to
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purchase their hoodie for a higher price
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while being entirely upfront about the
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shipping times then they 100
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deserve that sale 3. drop shipping is
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saturated perhaps the most bizarre of
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all the claims is that drop shipping is
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dead and it's over since well it's
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saturated and the truth is when i see
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comments like this it blows my mind
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because this comment literally makes no
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sense here is what market saturation
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literally is it's when a product has
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been maximized in a market in other
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words when all of the people who would
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want that product have bought it already
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and here is what drop shipping is drop
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shipping is when a customer buys a
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product that you've listed in your store
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for a markup price when they do you go
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to the manufacturer and you purchase
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that one product for the wholesale price
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and then have them ship it out directly
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to the customer while you keep the
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difference as profit and large retail
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stores have been drop shipping for years
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drop shipping isn't a product it's
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simply a way to fulfill products only
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products can be saturated and so
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whenever you see someone equate the two
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in the youtube comments section you can
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be sure that they don't understand what
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they are talking about so sarah you say
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maybe dropshipping can't be saturated
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but are all of the aliexpress products
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instead saturated the answer here is
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nope although yes indeed some are
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saturated and surprise surprise it's the
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products that pretty much everybody is
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trying to sell do you know what's
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saturated cheap women's apparel and
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accessories and do you know what the
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number one aliexpress drop shipping
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store i see people trying to create is
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if you guessed cheap women's apparel and
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accessories you would be correct and
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this viewer posted their comment for me
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to review their store literally on a
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video where i talked about how generic
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women's watches is a terrible saturated
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niche and here is the thing these
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products that are saturated on
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aliexpress these saturated product
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niches they are saturated regardless of
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how you fulfill your orders which is why
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one of the biggest retailers for this
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niche forever 21 recently filed for
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bankruptcy the reason their store chain
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failed wasn't because of their method of
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fulfillment it was because their niche
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was too competitive and too saturated
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and so to survive in it you needed to be
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extremely skilled and they were not
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skilled enough to compete in such a
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cut-throat market saturation is a
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product problem not a fulfillment
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problem the solution sell unsaturated
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products regardless of how you're
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fulfilling your orders that's exactly
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why freaky pet had such huge success
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they found a product that few people
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were selling and they put it in front of
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the people that would love to buy it
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choosing products like this is something
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i focus on in my premium curated drop
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shipping course the econ clubhouse and
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if you're interested i'll have a link to
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it in the video description below four
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donald trump's war with china has killed
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dropshipping so if you haven't heard the
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news donald trump announced the enter e
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packet the cheapest fastest shipping
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option from china to the usa packages
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could arrive in as little as 10 days
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halfway across the world for just two
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dollars an absolute steal and you know
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not a lot of people know about this but
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for over 190 countries the international
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postage rates are mostly negotiated and
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set by a worldwide organization
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universal postal union known as upu and
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historically the prices have generally
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been set by how poor a country is
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considered to be if they were rich like
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the united states then they had to pay
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higher prices but if they were poor then
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they could have lower shipping prices to
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stimulate economies and so because in
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the past china had a lot of poverty they
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were able to successfully negotiate with
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the upu a very low postage rate and of
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course as you can imagine having a low
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cost fast shipping option from china
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made drop shipping from china much much
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easier but then in 2018 something
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completely unprecedented happened noting
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that china's financial fortunes have
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drastically changed over the past little
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while as part of the ongoing trade war
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donald trump threatened to pull the usa
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out of the upu unless the rules changed
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and they could declare their own
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shipping prices for china now as you can
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imagine if the united states arguably
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the biggest economy in the world were to
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pull out of the upu that would mean 190
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countries would suddenly have to
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negotiate their own shipping rates with
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the united states and that would be an
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absolute disaster donald trump gave an
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ultimatum the upu had 12 months to
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implement this change or they'd be gone
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well it's over a year later and e packet
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is still here in the united states
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they're still in the upu so what
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happened how can both of these two
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things be it's because the universal
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postal union scrambled they held an
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emergency meeting in september 2019 and
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they struck a deal with the usa the
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united states can now charge up to 70
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percent of the postage rate i.e if the
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price of an e-package shipment was
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previously two dollars they can now
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charge four dollars
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not exactly the literal death of drop
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shipping is it for a business that was
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already working on 20 to 25 profit
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margins and honestly when i saw the news
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i pretty much shrugged because i was
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like you know what even if a packet
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disappears there is absolutely no way
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that china post is not going to come up
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with their own alternative which is
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exactly what they did there is now a new
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shipping option being rolled out
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aliexpress standard shipping which
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surprise surprise is a near clone of a
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packet and as a further backup more and
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more aliexpress suppliers are opening up
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their own fulfillment centers in the
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united states which means that you can
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now dropship products with four to seven
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day shipping times for four to five
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dollars five most people who dropship
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will fail so a few weeks ago i made a
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video tutorial which show people how to
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drop ship products from aliexpress with
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four to seven day shipping times well
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someone came in and made this comment
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why don't you mention the roadblock
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everyone hits which is marketing causing
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99 to fail and i was admittedly a little
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bit snarky and i was like maybe the
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reason why i didn't mention this in the
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video was because that video was you
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know about something else but i do
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understand why that comment was posted
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because do you know what 99 of gurus
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won't tell you they won't tell you that
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99 of people will fail but you know what
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on this channel i don't shy away from it
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it's absolutely true oh my goodness
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sarah and 99 fail right that's insanely
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high why would i start one well what i
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would tell you is that the main reason
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why 99 of people fail is extremely
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avoidable and really easy to not do
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yourself because i'll tell you this now
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the main reason why 99 of people fail is
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not because they don't have enough
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knowledge about facebook ads oh no in
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the internet video age we are swimming
[841]
in knowledge we are practically drowning
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in it at this point you can purchase a
[846]
curated video course like the econ
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clubhouse or you can watch a series of
[850]
disorganized youtube videos either way
[853]
the knowledge is out there what those 99
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of people are missing is the knowledge
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that you gain through going through the
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learning curve of actually marketing
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your products to consumers real talk you
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cannot bypass this there is absolutely
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no guru that you can follow that will
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allow you to somehow bypass this now let
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me ask you a question if you read these
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five books on being a barista after
[876]
never having made a coffee in your life
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do you think that you'd make the perfect
[880]
latte on your first day on the job nope
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and if you read these five books on
[884]
cooking after never having cooked a meal
[887]
in your life that your first dinner
[889]
would be a fine dining masterpiece nope
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i am sure that everybody watching this
[893]
video agrees if you want to cook well it
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doesn't matter how many books you read
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you need to practice and make many meals
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before you get good so why on earth then
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do people think that there is some
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formula that some guru can teach them
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that will mean that they can get really
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good at marketing fast without having to
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put an experience actually doing it and
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every day i see so many people that seem
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to be searching for that but that's not
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how it works sure reading these books
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will definitely help you make tastier
[925]
meals faster but none of them are a
[927]
replacement for the real world
[930]
experience gained from actually cooking
[933]
run ads see how people interact with
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your ads in your niche make changes
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based upon how people interact with them
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and you know what every single person's
[941]
learning curve is going to be unique to
[943]
them but most people want fast easy
[945]
money not to actually learn how to make
[948]
real money and so when they don't get it
[950]
fast they usually do the one thing that
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guarantees a 100
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failure rate and that is giving up so if
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you don't want to be part of that 99
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failure rate that's fine don't come and
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ask me questions like is 200 enough to
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invest is that enough money for me to
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start making money or asking me how long
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is it going to take me to make money is
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it going to take me two weeks is it
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gonna take me three weeks i can even
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wait four weeks four weeks is fine if
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it's going to take four weeks no don't
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ask me those questions instead ask
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yourself the question that that one
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percent who have success ask themselves
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am i willing to invest the time and
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money that i need in order to overcome
[989]
the learning curve of marketing in sales
[992]
learn from my mistakes and ultimately be
[994]
successful am i willing to do what it
[997]
takes for me to succeed thanks for
[1000]
watching my video i hope you appreciated
[1001]
the honest advice and if you would like
[1003]
to learn even more about drop shipping
[1005]
you should download our free ebook the
[1007]
six steps that six figure online stores
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follow to make over ten thousand dollars
[1010]
a month and you'll find a link to
[1012]
download that ebook in the video
[1013]
description below
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