3 Reasons Why Most Dropshippers Aren’t Hitting 6 Figure Months Consistently, And How To Solve It

Ever wondered why some dropshippers are able to scale and maintain at 6-7 figures so consistently every month? 

After working with many top tier dropshippers and ecom brands, I found that they all did ONE thing in common. 

It wasn’t their kick-ass media buying skills, copywriting skills or any “growth hacks”.

All they really focused on to scale consistently is: 

Making “revenue-generating” decisions daily.

And if you’re looking to gain more consistency in 2021, then read on.

You may be wondering…

“I’m already making a ton of decisions daily, how do I know what are ‘revenue-generating’ decisions?”

Revenue-generating decisions are decisions that bring the business to generate revenue (or higher revenue) instantly.

For example: 

  • How many products to launch this week
  • 3 Key activities each team member should do to achieve your desired result.
  • What sort of creatives to test this week
  • How to create an amazing customer experience to increase the Lifetime Value (LTV) of your business.

But the problem is, most dropshippers don’t have the mental capacity, time or energy to be focusing on making such decisions because they are stuck doing energy/mental draining tasks such as:

Doing the product research themselves…

Editing the videos themselves…

Creating SOPs themselves…

And what most people do is to hire new team members (VAs) to assist them with their work.

While that may be a good idea, without proper delegating systems in place, your team members will just come back to you with tons of questions and you eventually go back to doing those tasks yourself.

And without focusing on revenue-generating decisions, it’s extremely hard to scale and maintain at 6 figures consistently.

But the good news is, after working and helping 6&7 figure dropshippers and brands with their operations, we have identified the 3 most common roadblocks when trying to delegate.

Fix these 3 and you’ll see an improvement in your business. 

Roadblock 1: Being too involved in product research

Product research is key when it comes to dropshipping.  

No quality products = no chance at a winning product = no 6/7 figure months.

This is why many dropshippers fall into the trap of doing the product research by themselves, simply because they think that nobody else can do a better job than them.

But as important as PR is, this shouldn’t be done by you, the business owner.

If you have done PR before, you know how much time it takes just to find 1-2 high quality products per day.

You can end up spending the whole day searching. Before you know it, you’ve been researching for 7-8 hours.

(Time that should be used to be strategizing and marking revenue-generating decisions.)

But with proper delegation and automation systems in place, it’s very possible to pass this task down to a team member, and still achieve great (or even better) results.

Here’s how we do it:

First, create an in-depth VIDEO SOP for your product researcher.

The reason why it has to be in video is because you want your product researcher to create the WRITTEN SOP for you.

This way, you’ll not only save time, but you’ll know if your product researcher really understands what you’re saying in your SOP video.

(Include your product research criterias in the SOP as well.)

Next, integrate google form with google sheets with a “traffic light” system.

Here’s how it’ll look like:

Whenever your product researcher finds a potential product, get them to input the details and links into a google form (you’ll see why later).

The google form will then automatically input the details into a google sheet.

In the google sheet, separate the columns into your desired criterias (number of shares on the ad, profit margin, competitors etc.)

If the product metrics doesn’t match at least 4 of your criteria, it will be marked as red.

If it matches all 5 criteria, it’ll be marked as green.

The reason why we get the product researchers to input the details into a google form into the google sheet immediately is because we don’t want them to stress about finding “red products”.

We want them to focus on finding as many products as possible.

And if you really still want to make sure that your team is launching products that you’re happy with, then all you need to do is to check the “green products” instead of everything.

This can easily save you 70% of your time to make revenue-generating decisions.

Roadblock 2: Putting themselves in every step of the process.

A common mistake that most dropshippers and ecom brand owners do is that they put themselves in every step of the process.

Especially when it comes to approval.

They want their team to come to them to approve every ad video, ad copy, product copy, every product.

And with already plenty on your plate as the business owner, it’s hard to find time to constantly approve their work.

And without approval, they can’t proceed to their next task which in turn delays the progress of the team. (Less products launch every week)

Which will affect your revenue.

(Not a good way to do things if you ask me.)

Here’s what we do:

For our clients who face this issue, we often optimize it by doing 2 things.

1. Create delegation systems.

2. Provide/Hire good project managers.

Roadblock 3: They onboard and train the new hires themselves.

Find the right person for the job concept. Hiring and recruitment. Flat  vector design | Stock Images Page | Everypixel

Having worked with clients from brands, dropshipping and agencies, there’s a common problem that most business owners do.

They spend hours if not days of their time to onboard and train their new hires.

(Some take 7-8 hours while others can take up to 3 days depending on the quality of hire.)

And if you’re currently doing the onboarding and training yourself, you’d know how tiring and mentally draining it can be. 
But the good news is, we developed an “automated” onboarding system using Google classroom.

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