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These are the user uploaded subtitles that are being translated: 1 00:00:01,230 --> 00:00:01,740 All right. 2 00:00:01,740 --> 00:00:02,550 Essential. 3 00:00:02,580 --> 00:00:07,400 Number one the business model or how you will make money. 4 00:00:07,560 --> 00:00:13,320 Clearly it's absolutely essential that we understand at a high level exactly how this whole business 5 00:00:13,320 --> 00:00:14,640 model is going to work. 6 00:00:14,640 --> 00:00:17,470 Before we delve into the detail of the Course itself. 7 00:00:17,790 --> 00:00:24,750 So let's just go through this step by step so that you clearly understand the first thing we're going 8 00:00:24,750 --> 00:00:27,840 to do is we're going to build out an e-commerce store. 9 00:00:27,870 --> 00:00:32,430 OK you're going to build that e-commerce store now that might sound a little bit frightening right now. 10 00:00:32,430 --> 00:00:34,590 Maybe you've never done anything like this before. 11 00:00:34,590 --> 00:00:35,480 Do not worry. 12 00:00:35,490 --> 00:00:38,950 I'm going to go into you step by step through this whole process. 13 00:00:39,000 --> 00:00:42,530 If you've never done it before don't worry at all please. 14 00:00:42,550 --> 00:00:44,400 It's it's all point and click. 15 00:00:44,400 --> 00:00:46,480 You don't need any technical knowledge. 16 00:00:46,590 --> 00:00:48,880 And it's actually really cool and fun to do this year. 17 00:00:48,900 --> 00:00:50,720 You're going to see as we progress. 18 00:00:51,030 --> 00:00:55,350 Now what we're going to do is we're going to build a store but it's not going to have anything in it. 19 00:00:55,350 --> 00:01:00,480 In the beginning we're not going to have anything we actually can sell to the public which is clearly 20 00:01:00,480 --> 00:01:01,300 a coal. 21 00:01:01,470 --> 00:01:04,160 So we need to stop Castorena. 22 00:01:04,200 --> 00:01:04,540 All right. 23 00:01:04,550 --> 00:01:09,840 Well again stocking up physical products but purely going to put description's images on them OK for 24 00:01:09,840 --> 00:01:11,920 people to buy from our store. 25 00:01:12,360 --> 00:01:14,260 But we need to be to stop it from somewhere. 26 00:01:14,310 --> 00:01:20,010 So what we're going to do is we're going to go over to a Web site called The Express dot com. 27 00:01:20,010 --> 00:01:26,790 Now Ali express Dotcom is a huge Chinese kind of equivalent of Amazon. 28 00:01:26,820 --> 00:01:28,620 At least that's the way I like to think of it. 29 00:01:28,680 --> 00:01:33,980 It's got thousands maybe millions of suppliers certainly millions of products in there. 30 00:01:34,110 --> 00:01:38,970 Anything you can think of and compared to perhaps what we've seen on Amazon or other sites. 31 00:01:38,970 --> 00:01:48,800 The interest is the prices are very very reasonable now just for example let's imagine we find this 32 00:01:49,010 --> 00:01:53,280 T-shirt here for $3 on Ali express. 33 00:01:53,320 --> 00:01:55,480 I don't want to say straightaway this is not about selling T-shirts. 34 00:01:55,480 --> 00:01:55,690 OK. 35 00:01:55,700 --> 00:01:58,610 This is not about selling T-shirts you can sell T-shirts if you want. 36 00:01:58,610 --> 00:01:59,880 You can sell anything. 37 00:01:59,920 --> 00:02:02,210 I'm just using this as an example. 38 00:02:02,330 --> 00:02:03,110 OK. 39 00:02:03,110 --> 00:02:07,850 So let's imagine that we found a T-shirt on here for $3 on our express dot com. 40 00:02:07,850 --> 00:02:13,070 Now what we're going to do is we will take the images of the T-shirt We will take the descriptions of 41 00:02:13,070 --> 00:02:16,700 the T-shirt and we will simply put it on our site. 42 00:02:16,970 --> 00:02:20,420 And really the only thing we're going to change is the price. 43 00:02:20,420 --> 00:02:25,010 OK we're going to price it in my example here at 20 dollars. 44 00:02:25,220 --> 00:02:29,730 OK so maybe already started to see how we're going to make some work here right. 45 00:02:30,080 --> 00:02:36,210 So we've got it all set up now we got one product in it with a $20. 46 00:02:36,230 --> 00:02:43,620 Next thing we need to do is to find a customer who's going to buy our t shirt so he's our guy. 47 00:02:43,880 --> 00:02:45,720 He's a stick man looking very trim. 48 00:02:45,740 --> 00:02:51,110 This is our customer wandering around the wilderness and one of the key things I'm going to teach you 49 00:02:51,110 --> 00:02:57,490 as part of this course is how to find how to laser target these customers and bring them to your store. 50 00:02:57,500 --> 00:03:03,110 So people who want to buy T-shirts in this example will be brought to your store so that they will buy 51 00:03:03,110 --> 00:03:04,280 your products. 52 00:03:04,760 --> 00:03:05,280 OK. 53 00:03:05,480 --> 00:03:09,190 So then the customer will buy the item from your site. 54 00:03:09,280 --> 00:03:09,860 OK. 55 00:03:10,010 --> 00:03:12,070 So the customer has come to our site. 56 00:03:12,080 --> 00:03:15,410 Now your e-commerce store account has come to your site. 57 00:03:15,530 --> 00:03:17,860 He's bought this T-shirt for $20. 58 00:03:17,950 --> 00:03:21,900 OK now you now have $20 in your hands. 59 00:03:22,280 --> 00:03:22,830 OK. 60 00:03:23,150 --> 00:03:27,790 Note that we do not actually have any physical product to offer him. 61 00:03:27,980 --> 00:03:29,930 OK but we got the $20. 62 00:03:29,930 --> 00:03:36,710 So clearly what we need to do now is actually send him the T-shirt and the way this works is that we 63 00:03:36,710 --> 00:03:45,610 will go over to Ali express you will buy the item from Alex press the T-shirt and dropship it directly 64 00:03:45,700 --> 00:03:47,070 to the customer. 65 00:03:47,410 --> 00:03:50,870 OK so basically you step back from that for a moment. 66 00:03:50,890 --> 00:03:53,650 We've never owned the product. 67 00:03:53,740 --> 00:03:58,060 The customer came to our site bought the T-shirt for $20. 68 00:03:58,060 --> 00:03:59,750 We now have $20 in our hands. 69 00:03:59,950 --> 00:04:01,820 We go over to well-expressed dot com. 70 00:04:01,960 --> 00:04:08,800 We buy directly from maliks press dot com and we are the supplier to ship it directly to the customer. 71 00:04:09,070 --> 00:04:10,040 Right. 72 00:04:10,090 --> 00:04:11,080 Pretty cool. 73 00:04:11,380 --> 00:04:18,260 So the customer is now wearing a T-shirt and he also has a slightly bigger head and he's very happy. 74 00:04:18,310 --> 00:04:18,690 OK. 75 00:04:18,700 --> 00:04:22,900 He's got his product that in a nutshell is what we're doing. 76 00:04:22,900 --> 00:04:29,940 So let's just have a look slightly more detail about what that actually means in terms of business. 77 00:04:30,280 --> 00:04:34,180 So that in the right hand corner here got some things popping up so let me just draw your attention 78 00:04:34,180 --> 00:04:34,480 to that. 79 00:04:34,480 --> 00:04:39,240 So we sold it for $20 on your site. 80 00:04:39,810 --> 00:04:46,420 We bought it for $3 on our express and we shipped it directly to the customer. 81 00:04:48,130 --> 00:04:53,270 Now let's just say for example we spent two dollars on advertising. 82 00:04:53,670 --> 00:05:03,210 So that leaves us with a profit of $15 for that one transaction for that one transaction. 83 00:05:03,210 --> 00:05:10,300 And we can repeat that over and over again each time making a substantial profit margin. 84 00:05:12,790 --> 00:05:14,530 Have a little think about that. 85 00:05:14,740 --> 00:05:19,090 Take your time because I want to just go now into the advantages of this. 86 00:05:19,090 --> 00:05:24,620 Maybe you're starting to see how powerful this model already is. 87 00:05:24,700 --> 00:05:26,610 So there are numerous advantages. 88 00:05:26,680 --> 00:05:28,120 I'm pulling out the main ones here. 89 00:05:28,120 --> 00:05:28,910 OK. 90 00:05:29,080 --> 00:05:34,560 The first one is that you never have to own any stock so you don't have to have a store room. 91 00:05:34,630 --> 00:05:36,290 You don't have to pay for storage. 92 00:05:36,430 --> 00:05:40,290 You don't have to worry about stock you can't sell none that's going to happen. 93 00:05:40,330 --> 00:05:40,600 Right. 94 00:05:40,600 --> 00:05:45,520 You're simply going to advertise the products on your site and when somebody buys them you will ship 95 00:05:45,520 --> 00:05:48,400 them direct from the supplier in China to the customer. 96 00:05:50,760 --> 00:05:52,820 You get the money up front. 97 00:05:53,060 --> 00:05:53,370 OK. 98 00:05:53,370 --> 00:05:59,080 Before you bought that artemov Alex price for $3 you'd already sold it for 20. 99 00:05:59,100 --> 00:06:00,900 So you don't have a cash flow problem. 100 00:06:00,990 --> 00:06:05,100 You never have a cash flow problem you get the money up front. 101 00:06:06,120 --> 00:06:10,750 As I said before there are no technical skills required. 102 00:06:11,160 --> 00:06:16,720 You're going to see using Shopify how easy it is to actually build out the store. 103 00:06:16,740 --> 00:06:18,000 It's all pointing click. 104 00:06:18,000 --> 00:06:23,970 There are some fantastic absolutely ergy introduce you to which are going to make your life a lot easier. 105 00:06:23,980 --> 00:06:26,680 You know it's really is actually good fun to do. 106 00:06:28,460 --> 00:06:31,400 You also don't need any prior knowledge of e-commerce. 107 00:06:31,400 --> 00:06:33,170 Trust me I've been doing this for a few years now. 108 00:06:33,170 --> 00:06:36,730 When I first started I didn't know anything about e-commerce at all. 109 00:06:36,770 --> 00:06:40,520 The concepts are simple to grasp. 110 00:06:40,550 --> 00:06:42,750 You will master them in no time. 111 00:06:42,800 --> 00:06:45,730 And yeah it's exciting as exciting stuff. 112 00:06:47,440 --> 00:06:52,800 And in fact what's really exciting about it if you like is that it's very easily scalable. 113 00:06:52,960 --> 00:06:58,690 You know over on the right hand side there where I've written repeat over and over it really is up to 114 00:06:58,690 --> 00:07:04,990 you how quickly how aggressively you want to build out this model. 115 00:07:04,990 --> 00:07:08,320 You could use it to earn an extra 1000 a month. 116 00:07:08,530 --> 00:07:15,790 Or you could head towards a 100000 thousand plus business you know Annual a year is entirely up to you 117 00:07:16,180 --> 00:07:18,590 how you want how you want to work. 118 00:07:18,600 --> 00:07:23,500 This maybe you've only got half an hour a day because you've got a very busy life or maybe you're looking 119 00:07:23,500 --> 00:07:29,740 to you know build your own business completely and you have you know all the time in the world in which 120 00:07:29,740 --> 00:07:31,840 case you can build up that much stronger. 121 00:07:31,840 --> 00:07:33,550 It's entirely up to you. 122 00:07:33,550 --> 00:07:37,810 It can fit around your current lifestyle. 123 00:07:37,960 --> 00:07:44,150 And yeah it's highly profitable as you've seen $15 per T-shirt. 124 00:07:44,170 --> 00:07:50,050 In this case but again I stress it could be any item and you can run it from anywhere. 125 00:07:50,230 --> 00:07:50,580 OK. 126 00:07:50,590 --> 00:07:52,150 You can run this from anywhere. 127 00:07:52,150 --> 00:07:55,370 This is a virtual business model. 128 00:07:55,510 --> 00:08:02,890 I've been working in this manner working from my laptop in countries all over the world and enjoying 129 00:08:02,890 --> 00:08:06,690 the freedom and flexibility that's given me for years. 130 00:08:06,760 --> 00:08:14,650 I mean it's yeah it's slightly scary number the prefix is now but this is yes and a great example of 131 00:08:14,830 --> 00:08:18,390 an amazing model that you can run from anywhere. 132 00:08:18,970 --> 00:08:20,130 So there you go. 133 00:08:20,130 --> 00:08:21,810 That's the model. 134 00:08:21,850 --> 00:08:26,880 In a nutshell at a high level if you don't understand every single aspect of it don't worry. 135 00:08:26,890 --> 00:08:29,770 It all starts to become crystal clear. 136 00:08:29,830 --> 00:08:35,800 You know I would perhaps encourage you to maybe watch this lecture one more time just to bet down those 137 00:08:35,800 --> 00:08:39,910 ideas make sure you've got a good grasp at least of what's going on. 138 00:08:41,750 --> 00:08:47,900 So in the next lecture we're going to look at essentially number two which is setting up your Shopify 139 00:08:48,200 --> 00:08:50,970 account your Shopify Web site if you like. 140 00:08:51,410 --> 00:08:52,810 Very exciting step. 141 00:08:52,940 --> 00:08:57,780 And the great news is I've got you negotiated a 14 day free trial. 142 00:08:57,800 --> 00:08:59,240 No obligation. 143 00:08:59,240 --> 00:09:01,700 So you know no reason not to get going. 144 00:09:01,700 --> 00:09:04,140 So let's crack on to the next lecture us unisex. 14098