Post 3 Of 3 – How To Launch A Side Business To Earn More Income And Retire Faster
This post is post number 3 of a 3 part series on how to reach financial independence.
Part 1: A Step By Step Guide To Early Retirement
Part 2: Copy These Trips: How To Use Travel Hacking To Fly Free
Part 3: Current Post
You have two options if you want to retire faster:
- Spend Less
- Earn More
In part 2 of the 3 part series on financial independence we spoke about the importance of saving your income to achieve financial independence and retire early.
We gave an example of how the average saver puts away 5% of their income.
On a $60,000 a year salary that works out to roughly $3k.
At this rate it would take this saver 65.8 years to retire.
But using the travel hacking skills learned in part 2 of this 3 part series, this saver was able to put away another $3k in to their savings by booking their annual vacation with points and miles.
That effectively doubled their saving rate, accelerating their retirement date by 14.4 years.
Today I want to talk about the second option, earning more.
There are dozens and dozens of different side businesses you can create from running a freelance business like my friend Vic, to launching an E-commerce business like Boris, setting up passive income streams through real estate like Paula or creating and selling digital products like I do (and many many more options).
Today I want to introduce you to Boris Savransky and his brother Sam Savransky and their 1 hour e-commerce method to give you at least one example that anyone can implementright now to generate more income.
Using their simple little One Hour E-Commerce Method that I'll outline below they went from zero to $1.5 million in sales in just one year.
E-commerce has many benefits. It can be a passive income business, meaning you don't need to exchange time for money.
You can also run it from anywhere in the world…at least following Boris' model.
One of the reason I chose to highlight Boris' Ecom method today, over any other method is because I know how successful, not only he is using this method but his students.
In a small group of 20 students, every student (13 of them) made sales.
In just four weeks, these 13 students sold $20,000 in E-com Products.
That's an average of $1518, with the top student selling $5,500 in her first month.
This was several months ago…and more recently, one of his students has reported earning $2,000-$4,000 in profit per day using these methods.
I mention these results, because I want you to take this post and it's potential seriously.
And considering it doesn't take a lot of time to get up and running, it's worth a try.
On top of all of this, Boris is also one of the most genuine guys I know.
So what is the One Hour E-commerce method?
It's a method used to rapidly identify “High Probability Of Success” e-commerce products in a matter of hours, rather than weeks or months.
Effectively you can set up an E-commerce business from scratch in just an hour.
In this model you identify a high probability of success product on a site like Ebay, mark the price of that product up and sell it on a simple little landing page you create.
When you make a sale of that product, you purchase the product from the Ebay seller, and they ship it to your customer. You keep the difference in price to pay for your ads, and to profit.
So this system uses E-commerce arbitrage and drop shipping.
What Is Drop Shipping?
Drop shipping is when you utilize a third party that handles the product inventory, shipping and any returns.
You never have to see or handle the product and no time is spent sourcing the product from overseas.
Using the One Hour E-commerce system there are 6 distinct steps for launching your e-commerce business.
Let's go through them now.
Step 1: Choose A Niche
There are many different niches that will perform well using this model but Boris has identified the following 9 as niches that have the most possibilities.
- Health & Fitness
- Home & Garden
- Kids & Family
- Self Defense & Survival
- Spots & Leisure
- Weight Loss
In the detailed video training that Boris created for members of the 4% club, he actually walked through a live example of how to set up the one hour e-commerce system from start to finish. Join the waitlist, to get notified early of the launch of the 4% club and get access to this video training.
In the video training he selected the niche “Sports & Leisure”.
Once you've selected your niche, move on to step 2.
Step 2: Select A High Probability Of Success Product
Boris uses a number of different tools to identify products that he wants to test for profitability using the One Hour E-commerce method.
One of these tools is Watch Count.
Watchcount.com pulls sales data from Ebay. The sales data allows you to identify potentially profitable products that have past sales, giving you a better chance of success.
When you arrive on watchcount.com select the category from the drop down menu that is most similiar to your niche.
In this case that would be “Sporting Goods”.
Boris recommends looking for “Sales Outliers” by scanning the results page and looking at the past sales numbers to try and identify the average past sales in this category.
Once you've identified the average, look for any past sales that exceeds the average. That's your sales outlier. In this case, Boris identified a flashlight that had sold over 20,000 units.
Criteria for High Probability Success Products
There are several criteria necessary for selecting a high probability of success products.
Sales outliers are just one of them. Boris lists the rest in the video training in the 4% club but here is a high level look at them:
- Products that sell between $1-$13
- Products that have been proven to sell at $10-15 higher than the ebay price, in a different location.
Remember this system uses arbitrage and drop shipping so you're trying to find a product that you can mark up.
As an example if the flashlight sells for $13 on Ebay, but sells consistently for $20-$25 on Amazon, this product would be a good candidate for the One Hour E-commerce method.
So Boris would identify a high probability of success product, like this flashflight. He would set up a simple little landing page and mark the price up to $20-25 (this would depend on what the market tells us, using the Amazon strategy) and then when he makes a sale of this product, he would place the order with the Ebay seller paying the $13, and keeping the difference for profit and ad cost.
If you want to take this a step further, another tool, he uses is my Ebay Sort tool. This tool allows you to go to ebay.com and sort the results from most sold to least sold.
This has a number of helpful applications.
- You can use it to identify high probability of success products, by finding products that have sold the most volume, faster.
- You can use it by entering in a specific keyword like “2000 Lumen Flashlight” to identify products that have sold a lot, but are lower cost than your initial item you found on watch count.
In this case Boris used it to identify another flashlight that is selling for just $5.49. This greatly increases his profit margins.
Step 3: Build Your Simple Little Landing Page
I'm the first person to admit, I'm terrible at technology so one of the things that I really liked about Boris' One Hour E-com method is that it is “low tech”.
Using a plugin called Product Pages he is able to set up a landing page in under 5 minutes. Again you can see all of this on the full video training that Boris filmed that is available in the 4% club members area or I'll outline the steps below.
To build your landing page, you're going to take the sales copy that is already on the Ebay page of the product you're going to sell.
Remember this ebay seller, will become your drop shipping partner so copying their listing is not ethically wrong since you're working to help sell more of their product.
Below is a screen shot of what the Product Pages plugin looks like. As you can see it looks like a regular wordpress post and you really just copy and paste the text from the Ebay page into the wordpress product page.
Don't forget to also copy the image of the product over from the Ebay page and upload it into the Product Page. You want to use the image from the Ebay page so that you set a realistic expectation with your customer.
Hit Save and below you can see exactly what your simple little landing page would look like.
Boris was able to set this up in a matter of minutes.
Step 4: Identify Your High Likelihood Of Success Facebook Interests
The One Hour E-Commerce System primarily relies on Facebook ads to make sales of your products.
In order for your Facebook ad to perform, you must identify high likelihood of success Facebook interests to match to your ad.
Start by heading over to facebook.com/ads/audience_insights to find targeted interests to place in your Facebook ads.
When you're on the Audience Insight tool, start by entering in a keyword related to your niche. In this case you might want to consider entering in “Hiking” “Camping” “Survival” . These are all a good starting point to find an audience that may be interested in a flashlight.
Here Boris has entered in “Survivalism”. Switch to the page likes tab in order to find more targeted potential Facebook interests you could use in your ad.
Survivalkit.com looks like it could be a good possible interest. Let's select that and see what that interest looks like.
Remove the word “Survivalism” from the interest box, and replace it with “Survival Kit”. Take a look at the demographics.
In this case, it appears that this interest is 95% male. And that the demographic falls between the ages of 25-54. That makes sense. Boris will use this interest for his first Facebook ad to test this product.
Step 5: Set Up Your Facebook Ad
To set up your first Facebook ad visit Facebook.com/ads/manage and select “Boost Your Post”. You want to run a Page Post Engagement ad in this case.
Enter in your demographics that you found using the Audience Insight tool – Male, Age 25-54.
Next enter in your interest “Survival Kit” and finally enter in a daily budget of $5.
You don't need a large budget to test to see if this is a product that will sell. In fact with just $5 or $10 you'll be able to determine if this is a winner or loser.
Step 6: Find The Winners, Scale To Other Platforms
Both through Boris's own experience and the results of his students he's found that about 1 in 5 products that he tests is profitable. Knowing these parameters helps for you to set you expectations as well as set up goals to work towards.
When you have a product winner you can continue to use these simple little landing pages or your can scale to a platform like Shopify and make a niche based store.
So there you have it. The One Hour E-commerce system.
If you want to watch the video training, instead of following the steps via written text make sure to join the 4% club. You'll get access to Boris One Hour E-commerce training video, plus many other great interviews and trainings relating to reaching retirement faster.
Okay so let's look at our hypothetical retirement calculation we have been playing with over the last few posts.
Let’s be EXTREMELY conservative and say that in your first year, you make an extra 10k through your new side business….
That’s 0.001% of what Boris is making…and considerably less than what his students are making (One of his students, Mark Soto is now making 2-4k profit a day!)
If you put the $10,000 extra income you earn directly into savings, your saving rate would shoot up to 22% from 10%. That shaves 17 years of working off your retirement date.
That's pretty incredible.
Imagine you added an extra $20,000 or even $50,000 to your income. You could retire in a few years instead of a few decades.
Anyways I hope you enjoyed this post, if so please be sure to comment below!
If you have any questions at all, please feel free to email me at brittany(at)brittanylynch.com
Gopal IyerDecember 16, 2015
Great information. I joined the waiting list. Can’t wait to watch the video