Wait... There are 5 easy steps to make $10,000 a month profit dropshipping? We know that it’s a click bait title, but we’re completely serious.
If you set up the process correctly, you can meet this income goal fast—faster than any other business model out there.
In this post, we’ll be walking you through the five steps you need to take to make this goal a reality.
If you don't feel like reading, just watch this video!
Step 1: Create Your Business
The first step is setting up a legitimate business. The easiest way to do this is to register as an LLC or an S Corp.
The rules may vary slightly from by region, but generally these are very easy to set up. It will take you a day or two to get the paperwork together and get it submitted.
You might need to talk to a professional to make sure that you are getting everything filled out properly. Don’t get hung up on this step. Once it’s done, you’ll be able to use this status to grow your business. It’s worth it to do it right from the beginning.
While it may be tempting to skip this step, there are two major reasons to go ahead and invest the time in getting it done: liability and legitimacy.
If you are selling products online, you don’t want to be liable for a malfunction or defect. In the unlikely scenario that a product’s dysfunction causes harm, your customer could attempt to sue you for the damages.
If this happens, you want to make sure that your money, your house, and your livelihood are all protected. Having LLC or S Corp status helps provide that protection. It also provides peace of mind because you don’t have to worry about a potential lawsuit wiping out your life savings.
The second reason you want to invest the time and effort into getting officially established as a business is that it will help you reach your monetary goals.
If you are hoping to make $10,000 a month in profit, you will need to partner with reliable companies who are producing and dropshipping high-quality products. They are much more likely to work with you if your business is legitimate and comes across as professional and serious.
Having LLC or S Corp status helps establish that legitimacy.
Step 2: Pick a High-Ticket Item Centered on Passion or Utility
Now that you have officially established your business, it’s time to choose a product to sell. This is an important decision, and you should make it carefully.
Products like these (quads and snowplow combos) could make a great niche because they're expensive and have both passion and utility!
Pick a High-Ticket Item
You want to pick a high-ticket item. What qualifies as high ticket? Anything that has an average price point of $500. Don’t think of that $500 as a limit, though. You could easily pick products that sell for over $1000. We’ve even sold $10,000 worth of product in a single transaction.
The reason you want to limit your options to high-ticket items is that doing so makes it much more likely you reach your goal. As a drop shipper, you make your money through getting a portion of each sale. When you are making $1000 in profit on a single transaction, you only need ten sales a month to get your goal!
Focusing on making a handful of high-ticket item sales is a lot easier than trying to sell 5000 different products each month. This brings us to the second part of the equation: choose a product that’s centered on passion or utility.
Choose a Focused Niche
You want to pick a niche for your products. This is what allows you to build out a focused, well-developed website that’s going to be the hub for your sales.
As you determine your niche, consider the dual impact of passion and utility.
Passion is what makes people feel alive and excited. These are the hobbies and collections that people invest in. Products centered on passion help customers define their identity and often are central focal points of their pastimes and social lives.
Utility is day-to-day function. Items that people need to make their lives work are always going to sell well. Think about the daily functions people do to keep their household and work lives running. Products related to these actions are utility-focused.
Start with passion or utility (or, even better, both!) If you do, you’ll find demand. Then go a step deeper and find the brands that are doing well in these areas. Go after customers who are searching for these products and brands.
Step 3: Sign Up for Shopify and Make Your Website
You’ve established your business. You’ve chosen a niche to focus on for your products. Now it’s time to actually start building the site you’ll use to make sales and hit your monthly goal!
Shopify is probably the best ecommerce site available right now. You can get an account set up quickly, easily, and affordably. Once you have your Shopify account set up, it’s time to start building your website.
The best part is you can get started for free with this trial.
Give Yourself Flexibility
One of the most important things about starting your website is to give yourself room to pivot if a product isn’t working.
While you do want a niche, you don’t want to be so specific that you are tied to a single brand or that you are can only sell items from a particular segment of the product line.
The quickest way to profit$10,000/month is to find a product that works and scale it up. If you find that something doesn’t work, you don’t want to be stuck on a path that isn’t going to get you to your goals. You want the flexibility to change directions.
The domain name is one of the most important places to consider this flexibility. You can always make changes to the website design and content, but you don’t want to lose your established links and traffic if your domain name no longer fits your product line.
The domain name shouldn’t be so specific that picking the wrong product the first time makes your whole website unusable.
Let’s take, for example, hats. Now, you already know from the Step 2 that hats aren’t a good product choice because they aren’t high-ticket items, but let’s set that aside and just use this example as an illustration.
If you were to decide that your niche market is hats, you wouldn’t want to build a whole site around winter hats with faux fur. That is too limiting. In fact, even just limiting it to winter hats is too restrictive. You want a website that can change with the seasons and style trends to stay relevant.
If you choose the domain name "allhats.com", you’ll have room to pivot when sales dip or a certain trend doesn’t play out the way you had hoped. However, if you’ve chosen the domain name fauxfurwinterhats.com, you will not have that flexibility.
By keeping your domain name general, you have the opportunity to work with multiple brands and different styles. You can change your approach to fit consumer demand.
Website Design Matters
The second thing to consider in Step 3 is that website design really matters. Your ultimate goal is to convert as many customers as possible, and your website is the hub for these sales. You want to build it with the customer’s perception in mind, but also keep in mind that the nicer it looks the more likely you'll be like to attract good suppliers.
Think about what makes a website attractive when you go to make a purchase. You probably like images that pop, a clear theme, and easy-to-read text. You want to be able to navigate it smoothly and quickly. You want to see signs that the business is legitimate and trustworthy.
These are the same things your customers will be looking for on your website. You want to put in the energy to build an attractive, responsive site. Use eye-catching images. Create blog content that’s engaging and well-written (but don't spend too much time creating blog content at first - just create a site that looks nice). Pay attention to layout and navigability.
All of these elements will serve the dual purpose of keeping customers on your site long enough to make a purchase and sending the message that you are a legitimate and trustworthy business.
A quick tip is to emulate other huge retailers in your industry. Go with a similar color scheme and style so that the buyer already feels acquainted with your brand.
Step 4: Find Suppliers and Join their Wholesale Program
This simple Google search for purchasing quads led me to a bunch of potential suppliers in the industry. I highlighted them in the screenshot above.
A lot of people feel overwhelmed by this step. Reaching out to suppliers can be intimidating, but it shouldn’t be!
Companies want to reach their potential customers, and they are looking for opportunities to do it more effectively. You are offering to be a bridge that helps bring more customers to their products.
If you find a product that looks good and fits your niche, all you have to do is a simple Google search to find the supplier’s contact info. Call them up and say, “I’d like to open a wholesale account for your company.”
You will need to tell them who you are (which is why you made an LLC in Step 1). You will need to show them how their product fits your focus (which is why you chose a niche in Step 2). You will need to show them your website (which is why you made a professional-looking one in Step 3).We have found that 80% of the time, this is enough to get a real conversation started. They will often give you some paperwork to sign to become a wholesaler. Then they’ll give you their price list, and you’ll be ready to start selling.
Step 5: Run Google Ads
You’ve got your business and website set up and you’ve made connections to suppliers providing products in your niche. Now it’s time to get traffic to your site so that you can start converting visitors into customers.
There are a lot of options out there for driving traffic, and you’ve probably seen the flashy, viral ad campaigns on social media sites. These are often built around polished videos that are expensive and time-consuming to produce.
We prefer using Google Ads over these flashier platforms like Facebook. Why? Because it’s easier to get targeted ads aimed directly at the people who are looking to buy the products you’ve just acquired.
If someone is looking to buy a high-end product, they’ll usually be researching it on Google, not Facebook.
Google Ads also have the benefit of being easy to use. All you have to do is follow the rules of Google to target the proper demographic and keyword searches. It’s a lot easier than you think.
Once you have these ads running, you will get traffic to your site. Once you have people on your site, some of them will make a purchase. Remember, if you are selling high-ticket items, you only need a handful of sales each month to meet your goal.
It can be tempting to go all out and spend a lot of time (and often money) on flashy advertising strategies, but this isn’t the best way to make a sustainable business model.
Think about it like a start-up. You see the flashy ones that succeed like Facebook or Uber, but there are plenty of companies that are never going to make worldwide headlines that are making plenty of money month after month. You’re not trying to be the next Uber. You’re trying to create a platform for reliable, ongoing income.
Bonus Step: Repeat the Process
Don't be like this guy and get distracted by all the new ideas out there. Repeat the process and scale to $10,000.
You might get one supplier that’s going to make you $1000 a month. That’s great! Now the next step is to go out and get another high-ticket item supplier so you can double or triple your income!
Don’t go out and start selling cheap products from AliExpress or start an affiliate marketing site. Just repeat the process.
Get more suppliers, run more ads, and see more profit coming in. You might even need to create another website with a different niche focus. Simply keep building until you reach $10,000 a month in overall profit.
You'll get there before you know it.
If you're ready to begin your dropshipping journey, there's no better place to start than our flagship course: Instant eCommerce Asset where we show you how to get your first sale in as little as 2 weeks. We guide you step by step, so there's no guesswork.
Or, if you want to learn more about the actual business models and methods we’ve used to go from $0 to over $1 million in online assets, check out our free course.