Hey guys, welcome to this video titled Brick & Mortar Store vs. Online Store. The purpose of making this video is I want to make it really clear that making an online store, especially a high ticket drop shipping business is much, much, much, much better than having a brick and mortar store, especially if you want to live a lifestyle of travel. Let's get into why ... All the reasons why you want to start an online store versus choosing to start a brick and mortar store. Brick and mortar stores generally have a much higher startup cost.

The stores themselves cost money just to rent out and then it cost money to fill that store with all sorts of merchandise and equipment, and inventory, and then you have to paint it, you have to pay for insurance, and you have to pay for heating, and cooling, and all these different things that you might not think of when you first think of doing a brick and mortar store, but it can cost into the tens, even the hundreds of thousands of dollars. When we tried to do a store back in mid-2014, it ended up costing us close to $30,000 to start up that store.

A web-based online store, on the other hand, costs much less than that. You can really build and launch an online store for under 100 bucks. If you want to build and really optimize [inaudible 00:01:11] costs a few hundred dollars, maybe even up into the thousand dollar range or so, but you can just pretty much build a store for under 100 bucks these days. It's really, really easy. Now as far as ... Excuse me. As far as longterm obligations go, it really does typically require at least a three to five year lease on a physical brick and mortar store. Sometimes you can get away with less. We did when we first started. We were able to find a lease that was only a year and a half, but that was because it wasn't a fully retail store.

It was more like a warehouse mix space. Now, most leases are three to five years longterm, so you are stuck. A web-based online store literally has no financial commitment. You can pay monthly and cancel it any month if you decide not to keep that particular niche store. That's way, way better. As far as monthly overhead goes, yeah, it usually does cost several thousand dollars per month to maintain a brick and mortar store. That's not to say that a web-based online store won't cost the same amount, but that same amount of spend will go into your marketing. Not to maintain the backend of your store, but overhead of your store.

The overhead of your online store in the very beginning might only cost you around 50 bucks a month. Typically, less. As you start getting going, you pay more hosting and ad fees and stuff like that, it might cost a few hundred dollars. But after a while, that will turn into mostly marketing spend and yeah, that's all going to be towards getting orders. Now, brick and mortar stores, you're going to pay $1,000 a month, several thousand dollars of month, plus on top of that you have to pay for marketing. Now, your break even point with a brick and mortar store can definitely be much higher. It really does require hundreds of sales a month just to break even. Whereas, with a web-based online store it can only take one to two sales per month to break even. Depends on how high ticket your store is.

Generally speaking though, I would say probably 10 to 15 and that's not only to break even, but also to see some sort of an income. Once you get into 30 orders per month range, you're starting to see a nice full part-time to full-time income from your store. Operations-wise, you'll have to hire or train and definitely oversee several employees, like physical employees right there. Whereas, on your own store you can easily run your own store and later on you can outsource that to virtual assistants in the Philippines and it only costs a few bucks an hour to pay them for customer service, so that's pretty cool.

Time requirement, it does typically take about 40 hours a week to run your store. I remember when we had our store we had to be there day in and day out. It wasn't an option, especially because we didn't have any employees. We were trying to run it ourselves and it was just a nightmare. Whereas, with our online store you can build and run an online store in your spare time. You can basically wake up whenever you want to, you can work or not work, and then you just have to fulfill orders, and you have to do the minimum requirements, and then if you want to work on your business from there, it's up to you. It's up to you how much you grow.

As far as the audience size, you are limited to your local geographic market, obviously, with a physical brick and mortar store. With a web-based online store, you're nationwide, or even worldwide, so you have millions of online shoppers you can reach out to. You just have to know the correct marketing platforms to reach them. Then with your physical brick and mortar store, your earnings potential is probably very limited because of that local geographic market, so you don't really know how much you're going to make unless you can really gage how many people in that market are buying those products. Whereas with the online store, you have the same potential to make the same amount of income, but it's going to come from all over the place.

In fact, you can scale that income as much as you want to scale your store, or build more stores on top of that, right? Obviously, there's way more benefits to building an online store, especially if you like to travel, especially if you don't want to have to deal with all the employees, or deal with all the time it takes in order to run your store, right? What does it take? What do you need to start a high ticket online store? Well, the things you don't need are thousands of dollars to start up, right? You can start up with a very low budget, which is great for most people. You'll get access to products to sell and we teach you how to find suppliers in the E-Commerce Paradise Academy. It's not that hard and you can get suppliers that have tons of products.

You'll be able to make the connections and contacts with those suppliers quite easily and I show you how. The web programming skills or coding skills that you think you might need to start a website aren't even required anymore. Tools like Shopify, which I use for online stores now, provide a clean experience without any programming or coding needed. You will need to enter some a little bit of code here and there to do things like trust badges and stuff like that on your website to make it look better, but I walk you through the entire process in the academy. As far as internet marketing experience and expertise goes, you really don't need it to start. I teach you all the stuff you need to know in order to get in there. You just need the willingness to learn and the willingness to persevere.

More of the things you need are definitely a burning desire for freedom. I mean, this is going to be just an underlying reason as to why you're doing this in the first place, but you really should want to be your own boss. Because if you don't have that, then you're probably not going to succeed. You're probably going to drop out. You really have to want to make your own schedule and control your own financial future. It does require some responsibility and that is that you have to do more to organize yourself and organize your time and stay focused on things, right? But with that comes the amazing ability to do whatever it is that you want with your time, okay? With great privilege comes great responsibility.

You will need at least three to four hours a week, right? That you're willing to sacrifice to build your store. In my opinion, you might need a lot more than that actually, especially in the beginning because you want to really get some traction early on to see results. I would say three to four hours a day, maybe even more. I remember for me in the very beginning, I didn't have much time. I was going to school full-time, I was working full-time, so those three to four hours a day were spent early in the morning, at lunch, dinner, and after work, and stuff like that. Time that I was usually spending watching TV, or skateboarding, or going and playing basketball, or watching movies. That was the time that I was spending building my online store.

More time is better, honestly, because you can get moving faster, and like I said, get traction early on by getting orders earlier and that's important. You will need a computer with internet and a laptop is great because you can bring that to coffee shops and work, so if you find yourself getting tired in your home environment or there's distractions, then you can get into a coffee shop, which is where I work at a lot, so that you can get more focused on your work. Because working around other people that are working can definitely help. The other thing that you need is training tools and resources, which you'll get all from my academy, right? Definitely got to get in there ASAP to get started.

Now, you might be asking, "What is the potential of a high ticket online store?" Well, really nicely built stores have just as much potential to generate significant monthly profits as brick and mortar retail stores do, but with a tiny fraction of the start up capital or financial risk. That's the beauty of it. Truly, it's a much better way to start an online business, because it's not as hard as it used to be. Everybody in the world is shopping on their smartphones now, and they're going to Amazon, and they're going to Wayfair, and they're going to all these big e-commerce sites and buying all these products. You can start a niche site and you can market that niche site in the same way that these big e-commerce stores do and you can get the same customers.

What is the potential? Truly, your online store's available to shoppers nationwide or even worldwide, exponentially increasing your target audience. Every year a larger and larger percentage of people are doing more and more of their shopping online. I hope this makes sense to you guys. I really do want to help you build an online business. Yes, in the very beginning I thought that I was going to start a brick and mortar store and be successful with it, but the truth is it takes a special kind of person and a lot of start up capital and you really have to get into managing employees and all this stuff. For me, it just wasn't my thing. I really wanted to be that guy chilling on the beach in a hammock between a couple of palm trees sipping a piña colada and typing things into my computer.

It's what I really enjoy doing. You can do it with high ticket drop shipping. You can do it with some other business models, but high ticket drop shipping is one of the best ways to do it. Compared to starting a brick and mortar store, it's awesome. Get into the E-Commerce Paradise Academy guys. Just go to ECommerceParadise.com, click the link in the description below, and you'll get access to our free mini course called Drop Ship Secrets where I go over how high ticket drop shipping works and all the ins and outs of what it takes to run the business so you're fully prepared. Then you can go ahead and sign up for the academy. Right now, it is under special launch pricing of $47 a month for course access or $97 a month for course plus coaching. I highly recommend the coaching, because I can help you get started one-on-one and get you in there. I hope to see you guys in the academy very soon. Take care.

Older Post Newer Post

Added to cart!