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Podcasts about business and stuff.
G'day it's Austin, and over the past four years, I've made 25,000,000 online and millions in profit, and in this video I'm just gonna break down how to get to $10,000 a month in profit as soon as humanly possible. This is the exact blueprint that I would follow and the exact four steps that if I lost everything tomorrow and I had to start from scratch, I didn't have my businesses, I didn't have any money and I had to start from complete scratch, what I'd do to get to 10,000 a month in profit as soon as humanly possible, knowing everything that I know about online business, and I'm gonna share that with you in this video. Before we start, I just wanna show you that I've used this and I still actively use this structure. These are just some screenshots from different months of some of my e commerce businesses over the past couple of months.
Austin:Here, 85 k in a month. Here, 95 k in a month. Here, 231 k in a month. This is net profit by the way. And so there's sales up there, we're not looking at that, we're looking at profit because the goal of this video is how to get to 10,000 a month in profit as fast as possible.
Austin:And this one here, 131 k in profit. And so I still do this and I've also taught this to other people. These are people that I've taught this exact four step process to, and they're making a lot of money as well. 200,000 profit from AJ here in seven months. That's well over 10 k a month in profit.
Austin:Alisa, six point three k profit in seven days. I know it's not over 10 k, but in seven days, Alyssa did that. 10 k profit in thirty days from Hinton, sixty five k profit in three months from Jade. Kayla, ten k profit in thirty days. Abe, forty two in two months.
Austin:Jean, 12 k profit in thirty days. Jamie, a hundred and £20,000 profit in five months. Matt, forty three k profit in four months. And I could just go on and on with other people's results, but I thought this one was a good one to finish on. We've got Luke here.
Austin:He just posted this three hours ago in our community, hundred and 5 k in a week. Now I know that's revenue, but I've seen his margins. They're about 25 to 30%. So he just made $30 in a week. And the method that I'm going to walk you through to use to get to 10 k a month in profit as fast as possible is called building a branded drop shipping store.
Austin:I call it building a customer first e commerce brand. This is the method that I've made the most money with, the one that I still use actively to this day, that has allowed me to generate over a hundred thousand orders with Shopify to make over 13 and a half million dollars in sales and millions of that being profit. So I'm gonna walk you through that method, because that's the one that I have the most experience with, and it's the one that's given me the most financial freedom. So let's jump straight in. The first thing we need to do is do the math.
Austin:In high school, I always thought is math that important? But as an adult, I've realized it's extremely important. And understanding how to break down the numbers can be the difference between you hitting your target of 10 k a month in profit or not. Because a lot of people and I made this mistake as well when I was first starting, I'd say I wanna hit 10,000 a month in profit, I wanna hit a hundred thousand a month in profit, I wanna hit a million. And then I'd never break understand the numbers that would be required in order to achieve that.
Austin:What I mean by that is, if I was selling e commerce products and drop shipping, how many orders would I need per day to get that amount of profit? How much money would I have to spend on advertising? What ROAS would I need? What would be the breakeven ROAS and any ads below that I should turn off? All these numbers that I just never thought about.
Austin:I was like, you know what? I want 10,000 a month in profit and I'm just gonna hustle until I get there. And then I just didn't and it took a lot longer than it should have. As soon as I broke down the numbers, I started hitting my goals. And I think it just makes sense because if you understand exactly what you have to do when you break down the numbers, which you can do as a complete beginner, and I'll just walk you through it right now so you don't even have to do it yourself.
Austin:So you wanna hit 10,000 in profit in a month. That's net. Money take home at the end. Well, the average profit margin for a branded drop shipping store or a customer first brand is about 30 percent. I've seen some people go up to 40%, they're the lucky ones, and then some go down to about a 20% at scale.
Austin:Let's take the middle of the range. Let's go with 30% net margin. Well, on that, we'd need about 30,000 in revenue. Now I know it's not completely accurate and there will be some numbers in here that I've rounded to whole numbers or nice clean numbers ending in a zero just to illustrate this and really make it easy for you to follow along with. So with that logic, we're gonna need about 30,000 in revenue.
Austin:The realistic net margin here is about 33% in order to get 10 k profit with 30 k in revenue, but let's just keep these numbers rounded for now and keep moving on. We need 30,000 in revenue and I've seen across my time teaching tens of thousands of people how to build e commerce stores that the average order value across their stores is about $70 and that's what I teach people to go a little bit higher ticket. It's still not very high ticket with the products you're selling or very expensive, but we don't wanna have super cheap products with really tough and razor thin margins. It just makes it a lot more difficult to scale profitably. And so average order value of $70.
Austin:Well, if we break down that, how many orders would we need to achieve 30,000 in revenue if our average order value was $70? We did 428 orders per month. If we break that down into a daily amount, we need to generate 15 orders per day. So if we can get 15 orders per day and the average order value of those orders is $70, then based on the product cost that I'll walk you through in a sec, we would have 10,000 profit. So let's keep going with this.
Austin:We need to break down a few more numbers. So let's say that out of the revenue, about 33% is our net margin or 30% just to keep it to a round number, then it would be reasonable to assume that another third of that would be for cost of goods. Because the way I teach building an e commerce store is that we get the product price from a supplier that we find and we times it by three. I call it the three x profit markup rule, and then that will be your sales price. Now it could be a 2.8, it could be a 3.2, like it's just gotta be around that mark, so there's enough profit per sale in order to justify running this business.
Austin:Well then let's say a third is profit, a third is going to our cost of goods, well then the remaining third would go towards marketing. And with that logic, if 30,000 in revenue is the target, then we could expect a third of that being 10,000 spent on ads in order to generate the 10,000 in profit. Stay with me here, it all makes sense. So then based on that, we'd need a three ROAS as the target. So figuring out these numbers, if we're gonna spend 10,000 on ads, now that's not to say we just spend 10,000 in a day or just slap 10,000 into a campaign and then off we go.
Austin:We slowly scale up to that and slowly scale up to $333 a day, which gives us about 10,000 a month in spend. But with that being said, we need to be hitting a three return on ad spend. Every dollar that we give Facebook platform or any marketing method, we need to be getting at least three back and if we can do that then we're on track for our 10 k profit mark. And also we need an average cost per purchase of $23 and so when we're doing our marketing, whether it's running ads or something more organic, I'll walk you through the strategies that I would use in just a second. But for every order that gives us $70, we need to be spending about $23 to get that.
Austin:That is our target cost per purchase. And then if you also reverse engineer a few of these other numbers, based on this, your breakeven cost per purchase would be 46. So if your cost per purchase goes to 47 through your advertising or marketing, you're unprofitable and you need to turn off that particular ad or ad set or way of marketing. And the breakeven ROAS would be 1.5. So if we have a 1.4 ROAS on our advertising or marketing, we put in a dollar, we get a dollar 40 back, then we're unprofitable in building this brand.
Austin:So there's our targets. And now we know the numbers. We need to generate 15 orders per day. We need to scale up our ad spend. So we're spending about 10,000 a month on ads.
Austin:So $3.33 a day roughly, and we need to be hitting a three return on ad spend. Now the target of hitting 10 k profit is much clearer. We just need to find a product that we can sell around this price point and then slowly scale up our ads using the methods I'll teach you in a second to get to that three ROAS. And then over the space of a thirty day window, spend 10,000 on ads, then with all that math, we'd end up with 10,000 in profit. So now we understand the numbers.
Austin:Very, important. The next thing we need to do is find a product. The numbers are great, but we actually need to find a product to sell. First thing, the six characteristics of a winning product. There are six things that I look for in any product that I've sold or made money with or that I've seen anyone else make money with as well.
Austin:The product needs to solve a problem, needs to be trending or going viral right now. When you look at the competitors, there needs to be some room for improvement. It needs to have a strong profit margin, at least a three x markup. It needs to pass the BS test and actually do what it says it's gonna do, and you need to be able to advertise it on Facebook. Let's talk about those a little bit more deeply.
Austin:The first one, it needs to solve a problem. Finding a product that has utility, that actually does something for the customer. It moves them away from pain and towards pleasure by solving a problem that they're having. Those kind of products will not only get you to 10,000 a month in profit if you do everything else right, but they will keep you there consistently and help you grow beyond that. So that's extremely important when looking for products and doing product research, especially as a beginner to ecommerce and to drop shipping, you need to be looking for products that solve a problem.
Austin:Not the little gadgets and the things that don't have that much utility, the product needs to solve a problem. That's the first thing. If you can do that, then you're well on your way to having a successful store. The second one is it needs to be trending or going viral right now. So this is a big part of not trying to reinvent the wheel.
Austin:Other people have done the hard work for us to validate products, test them, spend money on ads, for us to then know that those products work, and so it wouldn't make sense for us as complete beginners to go back to the drawing board and make it hard for ourselves by trying to launch a product that no one has launched before. What we're gonna do to get to 10 k a month in profit as fast as humanly possible is just a look for products that are already selling well online. We do that by using miner or Facebook ad library. They're my two favorite tools for finding products that are winning, that are already generating sales for others. Doing this is gonna save you time, it's gonna save you money, and it's gonna allow you to find a product that you can scale to 10 k a month in profit and beyond quickly a lot more easily.
Austin:The third principle, it needs to have room for improvement. And so whether you use Minea to do product research and look at winning ads, or you look on Facebook ad library and find brands that are running ads for products, when website you need to see areas for improvement or at least when you search that product on Google and find the different stores that may be selling something similar, look for room for improvement, read their reviews, what are they not doing well and how can you market your brand better than what they're doing? Look for those areas so that you can take a small slice of the big pie of that market and of that product. All it takes is for you to slightly adjust the angle that you're selling to, or make your product page a bit more benefits focused than the competitors, or make your product description just a little bit more locked in than what the other people are doing, and you can very easily make 10,000 a month in profit.