Responding To Dan Lok "How To Start An E-Commerce Business"

Published on: November 27 2022 by Peter Pru - Ecommerce Empire Builders

Responding To Dan Lok "How To Start An E-Commerce Business"

Responding To Dan Lok "How To Start An E-Commerce Business"

Responding To Dan Lok "How To Start An E-Commerce Business"

startTime	durationTime	text
00:00:00	00:00:02	yo what's going on Empire builders I got
00:00:01	00:00:04	something really cool and so for you
00:00:02	00:00:06	guys in today's video we're gonna be
00:00:04	00:00:09	actually doing a response video to mr.
00:00:06	00:00:11	Dan Locke's how to build an e-commerce
00:00:09	00:00:13	business we're gonna be going over what
00:00:11	00:00:15	he suggested you do plus I'm gonna be
00:00:13	00:00:17	giving you some additional tips on how
00:00:15	00:00:20	to make sure that your first or existing
00:00:17	00:00:30	ecommerce business is actually set up to
00:00:20	00:00:32	be successful now before we get going
00:00:30	00:00:34	guys this one announce the winner of our
00:00:32	00:00:35	last 30-minute coaching session with me
00:00:34	00:00:37	we're gonna flash your name right here
00:00:35	00:00:39	if that's you email Peter at ecommerce
00:00:37	00:00:41	Empire builders calm to schedule that
00:00:39	00:00:43	out and if you want to be a lucky winner
00:00:41	00:00:45	all you got to do is drop a comment down
00:00:43	00:00:46	below on today's video and make sure you
00:00:45	00:00:48	hit that subscribe button and that
00:00:46	00:00:50	notification bell so you're notified on
00:00:48	00:00:51	Monday Wednesday Fridays when we release
00:00:50	00:00:53	new content here on the channel but guys
00:00:51	00:00:55	without further ado let's start toking
00:00:53	00:00:57	about mr. dan Locke's video that he
00:00:55	00:00:59	released that yesterday I believe or the
00:00:57	00:01:01	other day toking about how to start an
00:00:59	00:01:02	e-commerce business and to be honest
00:01:01	00:01:05	with you I'm a damn log fan I actually
00:01:02	00:01:07	enjoy his content he said he's more
00:01:05	00:01:09	specializing in the high tiket sales
00:01:07	00:01:10	aspect of things so it was really
00:01:09	00:01:11	refreshing to see him come out with
00:01:10	00:01:13	compound how to build an e-commerce
00:01:11	00:01:14	business it was only a very short
00:01:13	00:01:16	five-minute video will link it down
00:01:14	00:01:18	below so you guys can check it out so I
00:01:16	00:01:19	feel like he didn't do it enough justike
00:01:18	00:01:21	so I wanted to do a quick little
00:01:19	00:01:24	response to expand on a few of the tips
00:01:21	00:01:26	that he gave during his video plus give
00:01:24	00:01:28	a few of my own to help make sure that
00:01:26	00:01:31	you are set up for success okay so the
00:01:28	00:01:33	very first thing that Dan toked about
00:01:31	00:01:36	with building an e-commerce business
00:01:33	00:01:37	business is conversion as king and I
00:01:36	00:01:40	honestly was so shocked when he said
00:01:37	00:01:42	this because this is so true conversion
00:01:40	00:01:44	is all that matters in your business a
00:01:42	00:01:46	lot of you spent so much time building
00:01:44	00:01:47	out these fancy Shopify stores or
00:01:46	00:01:50	WooCommerce so you spend all this money
00:01:47	00:01:52	on fancy themes and things only to find
00:01:50	00:01:54	out that your store perverts at one
00:01:52	00:01:55	point three three percent - okay now
00:01:54	00:01:57	these are numbers actually released by
00:01:55	00:01:59	Shopify that the average Shopify store
00:01:57	00:02:00	converts at one point three three
00:01:59	00:02:03	percent to give you guys some
00:02:00	00:02:04	perspective here that means let's say a
00:02:03	00:02:07	thousand people come to your site that
00:02:04	00:02:09	means one point three people out of that
00:02:07	00:02:11	hundred will actually end up buying from
00:02:09	00:02:12	you right that's a very difficult way to
00:02:11	00:02:13	scale a business
00:02:12	00:02:15	okay now how do you increase that
00:02:13	00:02:16	conversion rate right Dan in his video
00:02:15	00:02:18	actually gave a great suggestion that he
00:02:16	00:02:20	saw a lot of add to cards he saw a lot
00:02:18	00:02:22	of people getting to a checkout page but
00:02:20	00:02:24	people were leaving after that and to
00:02:22	00:02:26	add testimonials in there 100% that's
00:02:24	00:02:28	that's a great suggestion but I'm going
00:02:26	00:02:30	to tell you one step further to make
00:02:28	00:02:32	that actually work even better is to use
00:02:30	00:02:35	a sales funnel that toks about one
00:02:32	00:02:37	specific product okay one specific offer
00:02:35	00:02:39	to that specific niche that you're
00:02:37	00:02:41	targeting so for example let's say
00:02:39	00:02:43	you're selling to bass fishermen right
00:02:41	00:02:45	what do bass fishermen want to do what
00:02:43	00:02:49	is that end desire what's that result
00:02:45	00:02:50	that they truly want okay now because my
00:02:49	00:02:51	first seven figure business actually got
00:02:50	00:02:53	the click funnels two comma Club four
00:02:51	00:02:55	was in the fishing niche I know what
00:02:53	00:02:56	they want I really know what they want
00:02:55	00:02:57	they want to catch bigger fish right
00:02:56	00:02:59	obviously they want to beat their
00:02:57	00:03:00	personal records they want to show off
00:02:59	00:03:02	in front of their friends that they
00:03:00	00:03:05	they've caught their next personal
00:03:02	00:03:07	record fish they also want to show off
00:03:05	00:03:09	on Instagram their latest catch right
00:03:07	00:03:10	that's the true emotional desire that
00:03:09	00:03:12	those people want and why a lot of
00:03:10	00:03:13	people have a low conversion rate in
00:03:12	00:03:16	their storefronts is because they're
00:03:13	00:03:18	trying to appeal to too many desires and
00:03:16	00:03:20	emotions by thinking that they need a
00:03:18	00:03:22	million products right that couldn't be
00:03:20	00:03:25	further from the truth right the less
00:03:22	00:03:27	the better right if you have one funnel
00:03:25	00:03:30	piloting one specific offer highlighting
00:03:27	00:03:32	a solution to a very specific problem in
00:03:30	00:03:34	your niche that's the way to go that's
00:03:32	00:03:36	how you can win and continue to increase
00:03:34	00:03:37	that conversion rate to give you guys
00:03:36	00:03:39	some perspective when you do use
00:03:37	00:03:41	something called a sales funnel as
00:03:39	00:03:43	opposed to a as opposed to something
00:03:41	00:03:45	like a Shopify store where you're
00:03:43	00:03:47	creating all these distractions for your
00:03:45	00:03:49	customers right and just highlight that
00:03:47	00:03:51	one specific offer highlighting that one
00:03:49	00:03:53	specific huge benefit that they're gonna
00:03:51	00:03:55	get from your offer right that gives
00:03:53	00:03:58	your customer really that straight line
00:03:55	00:04:00	tunnel vision on that specific product
00:03:58	00:04:02	okay and that's where you can add into
00:04:00	00:04:05	testimonials reviews of other people
00:04:02	00:04:06	defining success using that specific
00:04:05	00:04:08	product and what that's gonna allow you
00:04:06	00:04:09	to do is actually increase your
00:04:08	00:04:11	conversion rate and to give you some
00:04:09	00:04:14	perspective a typical sales funnel
00:04:11	00:04:16	converts at 10 percent the minimum 10
00:04:14	00:04:17	percent that means 10 out of 100 people
00:04:16	00:04:19	will buy from you
00:04:17	00:04:22	right as compared to a Shopify store or
00:04:19	00:04:23	WooCommerce store where 1.3 percent
00:04:22	00:04:25	while give it 2 percent 2 percent
00:04:23	00:04:27	meaning 2 out of
00:04:25	00:04:29	hundred people buy from you right that's
00:04:27	00:04:30	no way to scale a business right you
00:04:29	00:04:33	need that conversion without conversion
00:04:30	00:04:34	your business will tank you always have
00:04:33	00:04:36	to think about how do we increase our
00:04:34	00:04:38	conversion rate to get more people into
00:04:36	00:04:39	our funnel okay now the next thing Dan
00:04:38	00:04:42	started toking about was another
00:04:39	00:04:44	interesting topic toking about his
00:04:42	00:04:46	content strategy for both organic
00:04:44	00:04:48	content as well as paid traffic right
00:04:46	00:04:50	this is something really really
00:04:48	00:04:51	important right a lot of people getting
00:04:50	00:04:53	into dropshipping ecommerce Shopify
00:04:51	00:04:55	sales funnels whatever online business
00:04:53	00:04:57	in general they think that they're only
00:04:55	00:04:59	gonna focus on paid advertising now
00:04:57	00:05:01	don't get me wrong I believe that if you
00:04:59	00:05:02	cannot convert on paid traffic you will
00:05:01	00:05:04	not you could you don't have a business
00:05:02	00:05:06	I believe Dan Kennedy said that and it's
00:05:04	00:05:08	100% fact you need to have to be able to
00:05:06	00:05:10	convert on paid traffic to have a
00:05:08	00:05:12	business because guess what your with
00:05:10	00:05:13	paid traffic you're essentially have an
00:05:12	00:05:15	unlimited audience that constantly be
00:05:13	00:05:17	coming into your funnel or your store
00:05:15	00:05:19	okay as opposed to an organic reach
00:05:17	00:05:21	where essentially you know what your it
00:05:19	00:05:23	grows much more slowly right paid
00:05:21	00:05:25	traffic really accelerates the growth of
00:05:23	00:05:27	your business now there has to be a good
00:05:25	00:05:28	synergy between the two now we've
00:05:27	00:05:30	mentioned this multiple times on this
00:05:28	00:05:32	channel right it to be passionate about
00:05:30	00:05:33	your niche to love what you do to start
00:05:32	00:05:36	a business that you actually care about
00:05:33	00:05:38	because guess what you're not going to
00:05:36	00:05:40	create social media posts on your
00:05:38	00:05:42	Instagram Facebook YouTube tik-tok
00:05:40	00:05:45	snapchat all these places if you don't
00:05:42	00:05:47	enjoy what you do right if you enjoy
00:05:45	00:05:49	what you do creating an organic content
00:05:47	00:05:50	on a daily basis even you know a few
00:05:49	00:05:52	times a week is better than nothing
00:05:50	00:05:54	right it's gonna allow you to start
00:05:52	00:05:56	building that audience there which then
00:05:54	00:05:58	creates that organic traffic for you
00:05:56	00:06:00	which you can then retarget with paid
00:05:58	00:06:02	advertising now that traffic right there
00:06:00	00:06:04	is much more warmed up it's a lot more
00:06:02	00:06:05	primed to actually buy from you
00:06:04	00:06:08	one thing to understand guys is that
00:06:05	00:06:09	that number I believe it was seven touch
00:06:08	00:06:11	points before somebody buys from you
00:06:09	00:06:13	it's going up every every single year I
00:06:11	00:06:14	believe the last time I believe somebody
00:06:13	00:06:17	actually does study on this it was like
00:06:14	00:06:19	21 right that means but consumers want
00:06:17	00:06:20	to get to know your brand they're
00:06:19	00:06:22	googling you they're looking at your
00:06:20	00:06:24	social media accounts they want to see
00:06:22	00:06:26	are other people using you right and not
00:06:24	00:06:29	just hey I just saw a Facebook ad let me
00:06:26	00:06:31	buy this right very important to have a
00:06:29	00:06:33	good content strategy for both or your
00:06:31	00:06:34	organic as well as good content that
00:06:33	00:06:36	you're putting out there on your
00:06:34	00:06:38	advertisement to bring people in
00:06:36	00:06:41	and then a sell them immediately after
00:06:38	00:06:43	that okay now the third thing that Dan
00:06:41	00:06:44	laughs toked about was inventory kills
00:06:43	00:06:46	this is so true
00:06:44	00:06:49	right I actually lost the business on
00:06:46	00:06:51	Amazon I lost $40,000 in wasted
00:06:49	00:06:53	inventory right dan said he had millions
00:06:51	00:06:56	of dollars in his ecommerce business I
00:06:53	00:06:57	was in an inventory now inventory kills
00:06:56	00:06:59	so I always encourage you guys to use a
00:06:57	00:07:01	drop shipping suppliers right
00:06:59	00:07:04	doesn't have to be Aliexpress but it has
00:07:01	00:07:06	to be a supplier that stores for you and
00:07:04	00:07:08	ships on demand for you so for example
00:07:06	00:07:10	there's companies out there in the
00:07:08	00:07:12	supplement space that will on demand
00:07:10	00:07:14	let's say it's just ship your products
00:07:12	00:07:16	right so you get an order and then your
00:07:14	00:07:17	supplier ships it directly to your
00:07:16	00:07:19	customer and then you just pay your
00:07:17	00:07:20	supplier at the end of the month or
00:07:19	00:07:23	however your agreement is worked out
00:07:20	00:07:24	okay that way you never have to store
00:07:23	00:07:26	inventory or in your own fulfillment
00:07:24	00:07:27	centers now as you scale your business I
00:07:26	00:07:29	do agree you shouldn't go into
00:07:27	00:07:31	fulfillment centers brand your own
00:07:29	00:07:32	products but you want to make sure that
00:07:31	00:07:35	you're limiting the amount of inventory
00:07:32	00:07:37	that you buy because again inventory you
00:07:35	00:07:39	can get stuck with and really you you
00:07:37	00:07:41	you can have waste a lot of money now
00:07:39	00:07:44	this goes back to that first point that
00:07:41	00:07:46	I made right focusing in on one specific
00:07:44	00:07:48	offer you do not need a lot of products
00:07:46	00:07:51	to grunts Evan and 8-figure business
00:07:48	00:07:52	okay you do not need a lot of products
00:07:51	00:07:54	to run a seven eight figure business
00:07:52	00:07:57	what you need is good compelling offers
00:07:54	00:08:00	around a handful of products now when
00:07:57	00:08:02	you do this right this will allow you to
00:08:00	00:08:04	not only not hold a lot of inventory but
00:08:02	00:08:06	it's also gonna allow you to obviously
00:08:04	00:08:07	maximize conversions and invest more of
00:08:06	00:08:10	your money into your paid advertising
00:08:07	00:08:12	organic strategies okay what a lot of
00:08:10	00:08:13	people get wrong in e-commerce is they
00:08:12	00:08:16	think that they need some winning
00:08:13	00:08:17	product some holy grail product that's
00:08:16	00:08:20	gonna make them rich that can't be
00:08:17	00:08:22	further from the truth yes the product
00:08:20	00:08:24	matters but what's more important is the
00:08:22	00:08:26	marketing and the offer that you create
00:08:24	00:08:28	around that product right guys you see
00:08:26	00:08:30	it time and time again new water bottle
00:08:28	00:08:32	companies coming out marketing to very
00:08:30	00:08:34	specific groups of people and those
00:08:32	00:08:35	people are buying water bottles ten
00:08:34	00:08:37	times the price of one that you can get
00:08:35	00:08:41	for a dollar when it's basically the
00:08:37	00:08:43	same exact thing right less is better in
00:08:41	00:08:44	this case with e-commerce right and this
00:08:43	00:08:45	is something I tell to all of our inner
00:08:44	00:08:48	circle people all of our e-commerce
00:08:45	00:08:48	Empire Academy students make sure you
00:08:48	00:08:51	hone in on
00:08:48	00:08:53	one specific offer first get it
00:08:51	00:08:55	converting at that 10% range then after
00:08:53	00:08:57	you validated the product using a drop
00:08:55	00:08:58	shipping model right and again your
00:08:57	00:09:00	supplier does it can be found in the
00:08:58	00:09:00	states I found one of our fishing
00:09:00	00:09:02	suppliers
00:09:00	00:09:05	he was basically four hours away from me
00:09:02	00:09:06	who did at my drop shipping for me you
00:09:05	00:09:08	can find these suppliers anywhere point
00:09:06	00:09:10	is you want to at least start getting to
00:09:08	00:09:11	that thousand roughly a thousand unit
00:09:10	00:09:14	per month mark where your valid aid that
00:09:11	00:09:16	you can sell then go and find suppliers
00:09:14	00:09:18	that can manufacture it with your brand
00:09:16	00:09:20	name and start creating that brand for
00:09:18	00:09:23	yourself okay now those are the three
00:09:20	00:09:25	types at Dan log at Dan lock suggestion
00:09:23	00:09:27	was conversion is king content and paid
00:09:25	00:09:29	advertising strategy and inventory kills
00:09:27	00:09:31	I want to give you guys one additional
00:09:29	00:09:33	tip that is crucial right and kind of
00:09:31	00:09:35	mix in a few always upsell your
00:09:33	00:09:37	customers increasing your average order
00:09:35	00:09:38	value is one of the most important
00:09:37	00:09:40	things to do in your online e-commerce
00:09:38	00:09:42	business if you don't increase the
00:09:40	00:09:44	average order value you're basically
00:09:42	00:09:47	going to be less than breaking even on
00:09:44	00:09:49	your product all right advertising costs
00:09:47	00:09:51	are only going up and up and up the way
00:09:49	00:09:52	to dilute those ad costs is to increase
00:09:51	00:09:54	the average cart value that means how
00:09:52	00:09:56	much money is somebody spending with you
00:09:54	00:09:58	an easy way to do this is using up cells
00:09:56	00:10:00	and down cells so if somebody comes in
00:09:58	00:10:02	and they bought fishing lures from you
00:10:00	00:10:03	offer them upsell saying hey do you want
00:10:02	00:10:05	the fishing rod you want a tackle box
00:10:03	00:10:08	you want some more fishing lures right
00:10:05	00:10:11	point is upsell them one or two times at
00:10:08	00:10:12	least to increase your average cart
00:10:11	00:10:14	value right you want to increase that
00:10:12	00:10:16	average order value which is gonna allow
00:10:14	00:10:17	you to as a business owner to make more
00:10:16	00:10:18	profits in your business so you can
00:10:17	00:10:20	reinvest that money back into your
00:10:18	00:10:21	business or actually pay yourself from
00:10:20	00:10:23	your business the second tip I want to
00:10:21	00:10:26	suggest that Dan Locke missed out on was
00:10:23	00:10:28	a lifetime value right lifetime value to
00:10:26	00:10:30	me is the most important metric in my
00:10:28	00:10:31	online businesses I don't care what your
00:10:30	00:10:33	online business is it can be or you
00:10:31	00:10:35	could be doing coaching consulting
00:10:33	00:10:37	ecommerce affiliate marketing whatever
00:10:35	00:10:39	you need to make sure that you're not
00:10:37	00:10:41	only selling your customers one time
00:10:39	00:10:43	right one of anything is a bad thing you
00:10:41	00:10:44	want to make sure that your customers
00:10:43	00:10:47	are continuing to buy from you on
00:10:44	00:10:49	autopilot on autopilot on a monthly
00:10:47	00:10:52	continued basis okay what this is gonna
00:10:49	00:10:54	allow you to do is have predictable
00:10:52	00:10:56	reoccurring revenue in your business now
00:10:54	00:10:58	the easiest way to do this is have some
00:10:56	00:11:00	sort of subscription box like bark box
00:10:58	00:11:02	or Dollar Shave Club where you send your
00:11:00	00:11:03	customers their product
00:11:02	00:11:06	they'll be buying anyway on a monthly
00:11:03	00:11:09	basis right very very easy now what you
00:11:06	00:11:11	can also do is set up a membership site
00:11:09	00:11:13	right a purely information based where
00:11:11	00:11:15	you set your customers they join your
00:11:13	00:11:16	monthly Club and they pay twenty nine
00:11:15	00:11:19	dollars a month and they get access to
00:11:16	00:11:21	information on a monthly basis that you
00:11:19	00:11:22	provide or you can even do a mixture of
00:11:21	00:11:24	them if you have any questions about
00:11:22	00:11:27	that or if you are currently thinking
00:11:24	00:11:28	about how to add how to add some sort of
00:11:27	00:11:30	monthly subscription continuity
00:11:28	00:11:31	recurring revenue in your business drop
00:11:30	00:11:33	me a comment down below in today's video
00:11:31	00:11:35	I actually answer all questions during
00:11:33	00:11:36	the first 30 minutes over these videos
00:11:35	00:11:38	going live I'd be more than happy to
00:11:36	00:11:40	help you out on your business and if
00:11:38	00:11:42	you're brand new to e-commerce you're
00:11:40	00:11:43	brand new to online business or you're
00:11:42	00:11:45	struggling to actually turn a profit in
00:11:43	00:11:47	your business make sure you check out
00:11:45	00:11:48	that seven figure master classes down
00:11:47	00:11:50	below I'm going to show you how to use a
00:11:48	00:11:52	sales funnel to increase your conversion
00:11:50	00:11:54	rate how to upsell your customers right
00:11:52	00:11:56	the right way as well as how to add that
00:11:54	00:11:57	monthly subscription into your business
00:11:56	00:11:59	that'll be the link down below in
00:11:57	00:12:00	today's video but as always have a
00:11:59	00:12:02	fantastik rest of your day and remember
00:12:00	00:12:04	your empire starts now
00:12:02	00:12:05	yo what's going on Empire builders in
00:12:04	00:12:08	today's video I'll be sharing with you
00:12:05	00:12:10	how to build your very first Shopify
00:12:08	00:12:12	sales funnel and if you don't know what
00:12:10	00:12:14	a sales funnel is I'm gonna show you how
00:12:12	00:12:16	to build it using click funnels why you
00:12:14	00:12:18	need one and also how I've generated
00:12:16	00:12:20	millions of dollars in sales using these
00:12:18	00:12:22	very simple sales funnels for my
00:12:20	00:12:22	business