Thread by @ecomwithbrook

You see all of these people making $50,000 days dropshipping on TikTok & Reels.

You may feel like you’re missing out.

I wrote a thread to show you why the high ticket is a better model.

// THREAD // 🧵

Everyone’s seen the 1 product dropshipping stores.

Pop up a Shopify site.

1 landing page.

TikTok post goes off.

Instant $50K.

Mmm. Not so simple.

For every 1 people that succeeds in doing that, there are hundreds, if not thousands, that don’t.

The ones that do succeed....

They make some fast cash for a couple of months, but inevitably, the product hype dies off, and they’re back to square one.

You CAN make a lot of money doing this. But it’s a constant rat wheel chasing the new “hot” product.

Hardly a self-sustaining business.

Without the ability to constantly find the new “hot” product, the business stagnates.

This makes the business nearly impossible to sell, and you have the constant worry of wondering whether you’ll be able to find the next hot product.

So, what’s the solution?

Let’s start by defining a few characteristics of a successful business:

👉 Capable of becoming self-sustaining
👉 Consistent growth over time
👉 Improving net profit margins as the business increases in age
👉 Capable of being sold for a high multiple

Why does nobody buy your 1 product dropshipping product?

Because nobody knows who you/your brand is.

How do you fix this?

Simple. Sell brands that people already know.

What is a high-ticket eCom store?

Imagine it as your own mini Wayfair.

Wayfair is a brand that sells other brands products.

For example - if you were going to buy an Iphone, do you care if you get it from Amazon or Best Buy?

Likely not. Why? because you’re getting the same product regardless of where you buy it.

This is the power of high ticket eCom.

You get to leverage existing brands to build up your own brand.

Over time, your brand becomes associated with well known brands, and you start getting your OWN search traffic.

High ticket eCom also allows you to increase your profit margins over time.

You can build a self-sustaining asset that you can sell for multiple millions if done correctly.

Not only will paid ads allow you to make sales right away, but by driving more people to your website, with a well-optimized lead capture form, you can start building out an email list.

If you so choose, you can reinvest a portion of your profits into content marketing and SEO.

You can build up your DA rating and acquire high-quality backlinks to increase your organic traffic over time.

👉 Large email list of engaged customers
👉 Organic SEO traffic

= Higher profit margins.

While some of the products you sell will see seasonal swings, many will not.

For the ones that do, how can you combat seasonality?

Simply sell inversely correlated products (kayaks, and snow shoes) to negate any negative effects.

How to increase your revenue? Sell more products from more brands.

How?

Reach out to them and ask to sell their stuff.

The more sales and suppliers you have, the better suppliers you can attract.

This means growing your revenue Year-over-year is extremely simple.

To grow, add more products and run more ads.

This means that the longer you own your business, the more valuable it becomes as your

👉 Margins increase
👉 Customer base increases in size
👉 Supplier list/product list grows
👉 Organic traffic grows

You can also build out SOPs, hire a team, and remove yourself from the day-to-day operations of the business.

When looking to sell, all of the following factors will increase the multiple you can exit for:

👉 A large email list
👉 Organic traffic
👉 Increasing YoY sales
👉 Business owner removed from the day-to-day operations of the business

It may sound cliche, but a high ticket store is far more of a “business” than traditional dropshipping.

You can build a team, automate operations, and see consistent growth over time by selling high-quality products from high-quality brands located in the USA.

How big can you grow your high ticket store?

BBQ Guys is a largely eCom/dropshipping-based store located in the US.

They were nearly acquired for $1B last year.

If you don't sell.

After years of hard work, one day, if you so choose, you’ll have

👉 A massive email list
👉 built up organic traffic base, and
👉 Established brand name to launch your OWN brand.

So...you can sell, or launch your own brand.

A win-win.

1. If you took any value at all from this tweet, retweet the first tweet to share this post with your audience.

2. Follow me @ecomwithbrook for eCom growth related content.

Thanks for reading

https://twitter.com/ecomwithbrook/status/1690801650741477376