HONEST: Why Gurus Sell Courses & Reveal “Secrets” on How to Make Money
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HONEST: Why Gurus Sell Courses & Reveal “Secrets” on How to Make Money


Hey, guys. So today, I want to have an honest discussion
with you about something that I know a lot of people wonder about. Why do gurus or experts make YouTube videos
and sell courses teaching other people how to make money online? If it’s so profitable dropshipping, why would
you teach anyone else how to do it? And if you can make tens of thousands of dollars
a month selling on Amazon, then why would you show anyone your secrets? I hear this all the time. “If I knew how to make $10,000 a month selling
on Amazon then I sure as heck would not be selling how to do it in a $67 a month course.” And something else people understandably worry
about is saturation. If channels like mine go around teaching people
how to set up dropshipping stores, won’t that create a flood of competitors copying what
I teach, saturating the market, and making the business unviable? And look, I understand, because when I first
entered this industry, I had friends look at me and ask me, “Sarah, what do you do? I want to have your lifestyle too.” And I’d shy away from answering them. Why? Well, because I was afraid they were gonna
come on in and steal my business away from me. But I was actually wrong and it was only later,
once I became more established, that I realized two things. One, saturation is not a problem and it’s
not something that we need to be worried about. But two, income diversification is a problem
and it is something that we need to be worried about. So there we go. I’ve already gone ahead and spoiled the video
for you. That is your answer. But you probably want more of an explanation
so let’s jump straight into the video. Why saturation isn’t a problem. So I’m gonna preface this video that I’m only
talking about the two types of business models that I teach here at Wholesale Ted and that
is private labeling on Amazon and dropshipping in your own store like a Shopify store. And I wanted to note that because not all
business models are above the problem of saturation. I have personally witnessed more than one
online business model become saturated due to a flood of competitors. For example, one business model is AliExpress
dropshipping on Amazon. A question people ask quite a lot on this
channel is whether it is okay to do AliExpress dropshipping in an eBay or Amazon store and
the answer is no. No, no, no, no, no. Do not dropship from China on eBay or Amazon
because not only are you gonna get bad feedback, which is going to get your account banned,
but because that market is 100% saturated. Take Amazon. On there, you can’t even dropship from AliExpress
because people are actually buying the products and shipping them into the FBA warehouses. Take the self-stir mug, a staple example here
at Wholesale Ted. On Amazon, it’s selling for $7.99 with free
Prime shipping because competition has massively driven the price down. After Amazon’s fees of $5.30, the FBA sellers
for this mug are only left with $2.70, yet it costs $6.65 to purchase and ship it to
the USA from AliExpress sellers. So the people selling it are losing money
when they sell it on Amazon. So no, do not try to do AliExpress dropshipping
on eBay or Amazon. That is completely saturated. But dropshipping in your own Shopify store,
no, that is not saturated. Or private labeling on Amazon, no, that is
not saturated. Even with YouTube channels like mine teaching
people how to get started, there is still tons of room out there for new sellers and
I think that there probably always will be. Why? Well, it is for two reasons. One, the barrier to entry is much higher. Anyone can go and take an AliExpress product
and slap it onto Amazon but manufacturing and shipping your own products into Amazon,
well, that is a lot more work. But going out there and manufacturing your
own products and shipping them into Amazon, well, that is a lot more work and requires
a much higher upfront investment. Or take dropshipping in your own Shopify store. Setting up that store and running tests for
products is a lot more work than slapping a product on Amazon. Recently here at Wholesale Ted, we released
our premium step-by-step video training course called the Dropship Club. It is a step-by-step video training course
that teaches you how to create a dropshipping store from start to finish. And guess what? There are over 30 videos inside of it which
means that there are over 30 tasks that you need to do to set up your own store. And actually, there are a lot more than 30
tasks because of the fact that some of these tasks, you’re going to have to complete multiple
times. For example, one of the videos teaches you
our methods for setting up Facebook ads. In that, I use one product as an example. Now, the video shows you how to do it for
one product but you’re going to need to go ahead and do that for all of the products
that you are testing. Now, some of you may look at this as a bad
thing. You may think, “Oh darn. I just wanted a free money tree where I didn’t
have to do any work. I guess I’ll go elsewhere.” And you know what? You are more than welcome to. But for everybody else out there that wants
to build an actual business, then you should be happy that this barrier is going to stop
most people. Realistically, as course creators, we are
aware of this. You might find that cynical but the fact of
the matter is it isn’t. Consider how many books you bought with the
intention of finishing and then didn’t. The authors of the book aren’t stupid. They are realistic. They know that most people who start the book
are not going to finish it. Of course, they do their best to try to write
it in a way so that it captures the attention of as many readers as possible. But even the most successful books only have
a fraction of their readers finish it. If Stephen King said, “Nope, I’m not gonna
publish this book because most people who start it are not going to finish it,” well,
that would be pretty sad for those that did read it, did love it, and did actually finish
it. The same applies to those of us out there
that create courses that teach these business models. We do our best to make them as fun and simple
and easy to follow as possible, but realistically, we know that most people are not gonna follow
through and that is okay because for those of you out there that do do that, you can
create a business that can transform your life and that makes it more than worth it. People are busy. They come home from school or work tired. They want to build a business, but unfortunately,
life just gets in the way and that’s okay. I don’t judge anyone. Life can be hard sometimes. But here is something. Even if the numbers of people that followed
through with these courses suddenly quadrupled, it still wouldn’t matter because two, Amazon
and Facebook are growing at an insane rate. Consider this. The last earnings report from Amazon revealed
that they have increased their revenue by 42% and that amounts to tens of billions of
dollars. And consider this. In the past year, Facebook has acquired hundreds
of millions of users. Every month, more buyers flood Amazon and
every month, Facebook adds millions of users to their database. When you combine the insane growth of these
platforms along with the barrier to entry, you realize that saturation is not a problem
at all. But there is something to keep in mind. While the opportunities to sell on these platforms
increases at a much higher rate than new sellers or advertisers, the opportunities to sell
generic products or products that don’t require much creativity like the spatula no longer
exist. In the beginning when nobody was private labeling
on Amazon, you could manufacture and produce generic products like a spatula and make a
killing. But that is now no longer the case. While the opportunities to sell products grow
every day, this only applies to niche products so don’t start an Amazon or dropshipping business
hoping to sell generic products. Make sure you focus on selling niche items. Unfortunately, most people aren’t creative. They just try to copy and sell what other
people are doing and sadly, those people won’t succeed. But if you focus upon finding niche markets,
then you will. So saturation isn’t a real problem but something
else is. Why diversification is key. As I’ve said before on this channel, I set
up my first successful online store when I was 16 and honestly, I wasn’t dropshipping
at that point. I was probably not smart enough to be able
to figure out what that was but I was lucky enough to stumble upon a lucrative opportunity. I would buy Nintendo DS games, which are video
games from the USA, and then I would resell them in my home country of New Zealand. In the USA, a game might cost $20 but back
home in New Zealand, I could sell it for $50, $60. Even after the exchange rate, the profit difference
was huge so I started importing these games in mass from the USA and reselling them back
home. And it was super profitable and as a 16, 17-year-old
making bank, I got really, really lazy and I paid a hefty price for it. Because a few years later, Nintendo announced
that they were no longer gonna keep making Nintendo DS games and systems. Instead, they were gonna replace them with
this, a Nintendo 3DS. For those of you out there that don’t know
much about video games, you might think these don’t sound very different, but trust me,
they are. And Nintendo announced something else. They’re gonna be introducing something with
the new 3DS called region locking. What that meant was that if I bought a 3DS
game like this one here in the USA, that I could not play it on a 3DS system made for
New Zealanders. In other words, Nintendo made it that if you
bought your 3DS in New Zealand, that you had to buy New Zealand 3DS games as well. Whomp, whomp. Just like that. Just like that, my business was destroyed
overnight. And because I hadn’t diversified or reinvested
my money, I was kind of screwed. It set me back a couple of years. I had to go out there and learn how to source
products in different ways using wholesalers and dropshippers, which changed everything. But guess what? I should’ve already been doing that earlier
on in my career because I should’ve been looking for ways to diversify the way that I was getting
my products. I have never, ever forgotten the lesson of
the importance of diversification. And for me, it was the biggest reason why
I started this YouTube channel and I’m sure it’s probably a big reason why most course
creators and affiliates and YouTubers start their own ones as well. It’s because they’ve already got a successful
business and they want to find other ways to diversify their income and business portfolios. And because of the fact that we know that
there’s tons of room for new sellers when you combine exponential growth with barrier
to entry, we aren’t afraid of creating some new competitors. So teaching it is a really fun way to diversify
what we do since, well, I can’t talk for other YouTubers or course creators out there but
I absolutely love talking about dropshipping and Amazon. The honest truth is something that I have
learned is that you never know what’s gonna happen in the future so diversifying is a
really smart thing to do. For me now, because of this channel, I have
skills in video creation, creating YouTube channels, growing them, affiliate marketing,
email marketing, and things like that. And the funny thing is that those skills have
crossed back into Amazon and dropshipping as well. Something to keep in mind though is that for
most of you out there starting your first online business, diversification is a luxury
that you probably, unfortunately, can’t afford to have. Instead, you should probably pick just one
business model and get really, really good at it. Once you’re really, really good at it, you
can then look to diversify your investment and business portfolio but that is something
to think about in the future. And you know, there’s actually a third bonus
reason why I teach others and I suspect other experts and “gurus” out there are doing it
as well. You guys make teaching fun. It may be cliché but it’s absolutely true. I absolutely love this channel. I love the community that we’ve built here
at Wholesale Ted and I love making videos for you guys. Every day, I get tons of really lovely comments,
comments from people telling me that they really enjoy the videos, comments from people
thanking me for the information I’ve shared, comments from people telling me that I’ve
helped them, and comments from people telling me that my videos have helped them quit their
jobs and build a successful online store. I’m a human being and so are other YouTubers
out there. I’m not some sort of a robot. When you guys leave me a nice comment, it
makes me feel great. There are lots of other businesses that I
could’ve diversified into and this isn’t the only one that I have, but thanks to you guys,
this is probably the one that I am the most passionate about. So there you go. There isn’t some big conspiracy. It turns out that the reason why we teach
what we do is because of the fact that we know that there’s lots of room out there for
new sellers and we just really love doing it. And again, a huge part of what makes this
so much fun is you guys watching. So thank you very much for every kind comment
that you have ever left me. It genuinely makes my day. Thanks for watching this video. If you liked it, I’d appreciate it if you
gave it a thumbs up and subscribed to us here at Wholesale Ted for more great videos about
selling online. And if you’ve got any questions, be sure to
leave them in the comments section below. Here at Wholesale Ted, we do get a lot of
questions but we try to answer as many as we can. And if you would like to start your own online
business but you don’t know how, then you should be sure to download our free eBook,
“How to Make $10,000 a Month Online With Dropshipping.” You’ll find a link on how to download this
eBook in the video description below.

100 Comments

  • Victoria Pizzino

    Hi Sarah, enjoy your videos, thanks for all the info. I have a question…in this video you say do not dropship with AliExpress on Amazon or Ebay. But your ebook recommends dropshipping with AliExpress. Please clarify. And what about Oberlo; do you recommend them also? Thank you

  • Joanne Gordon

    Wow…I'm a newby to ecommerce so thankyou for being so clear and concise. You're very good at this. Thanks for the warning against generic products which is what I had considered but I'm also scratching my head as to what my niche could be. Also, as I'm in England, are there any obvious trading differences I should be aware of?

  • Abhay V

    I have learnt a lot from you! Thanks a million for these amazing videos. Your choice of topics and the way you explain them is really good. Appreciate your effort!

  • In The Dm's

    if you do not buy a course sorry to say you're stupid. wise man said it is better to learn from other peoples mistakes than yours. some are fake and cheats but there are pretty good ones

  • Gauthier Pascal

    You guys did a good job but if you were making 10K per month – why are you wearing the same dress in each video ?!?! STOP wearing H&M – 20 $ dresses. If you think you need a dresser or a professional costume designer – we would be more than happy to help you!

  • Mr Mars Blades

    Wow, so many morons there are out there. You might have a skill which your boss buys from you so he can produce a product or service to sell to someone. Sarah has a skill which you buy from her so you can sell a product or maybe even a service to someone. So f- – – – – g what if she makes 10k a month on courses ans $5k a month selling stuff, good luck to her.
    It's a no brainer ….but then again, looks like so may of you don't have any……complain about her wearing the same dress…..really!!!

  • pendo pendo

    LoL
    I have been scammed !!!
    Just joking, seriously.
    Signed up for the free Ebook and your first intro video cut out 1/2 way through, not sure if a glitch from the page, vid or my IPod.
    All good, I will try it later from a desktop.
    I enjoy your work 🖖

  • Alexander Lurie

    I Love u 🙂 U are great. Your lessons have real application!! I made my teespring store after watching it and got (1) sale 🙂 Working to grow my store 🙂
    Problem with teespring that they have a limited print space, and I would like to design larger prints that overlap. Do you have a suggestion for that kind of POD webservice
    ?

  • Elon Musketeer

    You don't see newcomer as your competitions anymore. In fact you want everyone to compete down below while you sit skyhigh.

  • Angelica Flores

    Do you have social media ?
    Btw I like your videos. You should do a video of your first winning product and how u did it.

  • Steve Bedard

    Great Video ! I have a question for you, what if I started a business around a baseball caps niche and realized later that hoodies and t-shirt were working better for me, should I close my store and start over or just keep going with the store I have and diversify it knowing that it's out of my niche ?

  • John C. Ardussi

    "Saturation is not a problem and it's not something that we need to be worried about." She is a used car salesman. Either lying or not smart enough to be giving advice to anyone. Add a million FBAs to 12 million products and you get saturation. She is pointing out the lotto winners and telling you to play the lotto. Why? Because house flipping is so five years ago. They are not "gurus" they are snake oil salesman. And she is one. She pulled one on her employer. Now she wants to pull one on you. I feel for anyone who sends her money.

  • Nausicaa Hisaishi

    Thanks ! Your videos are crazy good ! I really hope this is going to work for me as well !
    I want to create magic…

  • MsSpellbounder

    You are priceless. Have learned a wealth of information from your clips. Because of you I am now starting to live the life i wanted. You God send. Psssst – I'm from NZ too

  • mirelys mcclure

    So, in other words. Spend your hard earn money to buy product to then give your product away to a bunch of cheap ass customers. Then hope and pray that these so called customers take five minutes of their “busy day” to write you what could be a very mediocre review. Makes no sense to me. I’ve tried it and trust me you will be bankrupt if you aren’t careful with this strategy.

  • Alexandru Ion

    I am watching this in 2019! Thank you so much for doing these videos! And you also evolved a lot, I've seen videos from 2017, and videos from 2019 and you are brilliant! Cheers!

  • Filtiarn

    I'm a new subscriber and I love your videos. I think another reason revealing secrets is not a bad idea is because most people don't want to put work into side businesses and would rather just watch Netflix and play games(Which is fine as well, live life how you wan't).

  • gittarpikk

    Thanks, Sarah… You laid it 'on the line' in this vid. ..and you did it with great skill and passion. I have been watching vids of all types trying to decide how and what I need to devote my efforts to in this online world having wasted most of several years in several local niches with time-consuming supporting multiple websites.

    You did, however, give me some great clues to how to make that decision as well as who the real gurus and how to identify them.

    I too lost a great eBay business nearly overnight simply due to an 'option' eBay force- chose on a countries browser that all but ended my great niche and likewise I had not given any consideration to diversification. This was around 2004 and I came back with a sizable dropshipping biz in a different niche to attempt to recover.
    A bit later I actually sold the drop shippers warehouse empty but unfortunately did not diversify nor have backup suppliers which left me likewise in tatters.,…The time-frame sort of places me as a pioneer in drop shipping…even though I had not yet even heard of the term. I'm sure drop shipping has been around a long time…I just was not aware of anyone else doing it.

    So you nailed it when you stated you really need to diversify but unfortunately, it is not easy for someone just getting started as it takes quite a bit of concentration/time just to get one system fine-tuned.

    This go-round you can bet I will be more diversified with multiple backup suppliers as well as diversified selling platforms….yeah…lessons are tuff sometimes but hindsight makes for better 20/20 going forward. I hope to sign u soon in your club. I think it is probably one of the best values in this biz.

  • Steven Beebe

    Everyone says you will " Make Money " doing dropshipping, but EVERYONE wants you to pay them for their "secrets"… Yep, 2019 version of Snake Oil Saleswoman!

  • J.V

    Because selling courses at $300 a piece is A LOT OF MORE Profitable. They tell you what you want to hear. They can make up to $500k in net profit They are just sharks and they feed off you 😀

  • crimson_noir

    I am unable to sell on AMAZON, since i am not a US citizen nor do I have a US address or credit card for the address to prove as a legitimate credential. How do I get around this?

  • Sol Serra

    You videos are fantastic Sarah, thank you so much for helping us create other livelihoods for ourselves outside of corporate.

  • The Ace of Space

    These are absolutely great videos and I am continuing to learn from you and a few other online educators. Thank you.

  • Future Entrepreneur

    Thank you Sarah. Your videos have been very helpful, lots of value and I have learned a lot from your wisdom. keep going sis and don't worry about the haters! P.s I used your Shopify affiliate link to sign up for my first online store. wish me luck.

  • Mercury Jewely

    The thing i love about this channel is its not all about "how i made $562,000.00 in six minutes. Ninja Tactics. Watch now!!!!!!!" your advice and tips are actually practical and down to earth rather than bolster people into falling into your sales funnel. I found your channel recently and have stuck around because the content is genuine. Seems to be that way anyway, will let you know once i start earning! lol

  • Chaise Wallis

    This is the EXACT question I was just asking myself just yesterday! You explain things so darn well! I love this channel. Even got my store up and open with this channel! Thank you so much Sarah! Just one question though, how should I know what courses or course to use or pay for to learn the most and do the best I can at this amazing opportunity? I'm sure there's tons of scammers out there claiming they have a great method but really don't. Again thank you

  • Bojan Vujic

    As allways very nice video! Thanks a lot! Can you teach us about some other online businesses, like you have video for Etsy? 🙂 Best regards from Serbia 😉

  • Mahmoud LuLu

    My question is why do dropshippers for example give me.insights on great product ideas to sell in 2019 instead of selling them themselves?

  • Anthony Paul

    Thanks for the explanation. These answers are what I suspected but reinforcing it helps remove some of the cynicism.

  • Fahim Saqib

    as i am learning , the product should be such that it should not easly available in near store and give some value to customer , finding these kind of product in aliexpress or by oberlo , please reply

  • Gary Gregory

    Just starting in dropshipping and not going solo till i have thoroughly researched the business model. I find your videos very entertaining and a pleasurr to watch!

  • Houseoftheunusual Eddie Guevara

    I am proud of you you do great God bless continue the great work I watch and learn from all your videos so that I can apply them to my store.

  • Coconut Pete

    The REAL reason why gurus sell courses is because the industry IS saturated and there is more money selling shovels than in the actual "gold rush". Sorry, anyone that says otherwise is full of it. This particular video has a link to a free ebook. The ebook likely has links promoting their course or membership program. This video also has a link to their Dropship Club which costs $67 per month. This particular channel has also heavily promoted Shopify which has an affiliate program so they get a piece of the action on that too. Then there is the email newsletter which promotes who knows what. I am pretty skeptical that whoever is running this channel is selling anything on Amazon at all at this point… as a hugely successful Amazon business would likely take up so much time you wouldn't have the extra time to make a course, ebook and all of these videos. So, the bottom line is this. Your gut feeling is right. The "gurus" are getting rich telling people how to get rich. It's a system that has been going on for decades before the Internet. If you see an industry with too many gurus, odds are that industry is oversaturated and you should look elsewhere.

  • Ben Kucenski

    Step 1: Achieve moderate success, Step 2: write books telling other people how to achieve moderate success, Step 3: Become Wealthy.

    Region locking just means you need multiple of the same system. While some people may only want one 3DS system, if there is enough demand for foreign games, the cost of an additional 3DS system isn't a big deal. If I wanted to watch enough foreign movies, it's be a relatively small expense to buy a second DVD/BluRay player for those movies and use my US locked player for US movies.

  • Raghu Bhat

    I love your videos for two reasons…you are very honest n informative….n something about your accent…it's very captivative…

  • J. M

    My product on Amazon costs overall 5,000 and it make 16,000 and 6,000 of profit. I have freedom and dont work. And in the process of making a second product. So yeah. The numbers aren't crazy, but I'm having the time of my life. No one can tell me what to do. No boss. Nothing. Haha

  • kris matt

    Of course that saturation is a problem. It's getting more difficult to make money even for the more savvy people. A campaign for a niche product takes quite some effort to properly set up and they are not all big hits. It takes nerves and some budget to be looking for that big hit, then it's not passive, there is a lot of follow up and email support behind. It is easier and more profitable to sell courses and that is the plain truth.

  • Bek Blaku

    Thanks for answering this question. This is something I’ve wondered about and your explanation makes good sense. Much appreciated! I subbed to your channel.

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