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      #1

      Beware of the Middleman Drop Shipper Sales Pitch

      You may prefer to read that drop shipping is simple, and that it will make you a lot of money. Middlemen drop shippers understand this. They will take advantage of your search for simplicity, by lying to you, and by telling you exactly what you want to hear. The risk is that THEY will end up with your money, while you are left with a worthless opportunity.

      This thread aims to warn you about the most common sales pitches used by middlemen drop shippers, and how they attempt to get you to sign up to their services. But first:

      What is a middleman drop shipper? A middleman drop shipper is a fake drop shipper that stands between you and the real drop shipper. In doing so, the middleman drop shipper adds a mark up to the price of the products, and often wants a set up fee (usually in exchange for a website). These extra costs make you uncompetitive, especially if you are selling online. Soon you realize you were duped by their claims, and eventually come to the realization that you have to close down the website they sold you because it never was a viable business.

      NOTE: Middlemen drop shippers have a canning ability to convince start ups to part from their money. Even if you read this thread in full, you are still at risk of falling for one of the following middleman drop shipper tricks.

      If after reading this thread there is one thing in particular you want to remember, it should be this:

      Before you pay any drop shipper a joining fee, first think about it 20 times. And then once more. And finally, don't do it.

      What follows is a list of sales pitches used by middlemen drop shippers to try to persuade you to pay them a joining fee. Remember that a middleman drop shipper is not the same as an importer or manufacturer that also offers drop shipping. A middleman drop shipper is simply a leach, a parasite that sits between you and the real drop shipper, offering absolutely no added value in the process. In fact, in most cases, they will take value away from you, by marking up prices and overcharging for outdated websites and hosting. Read on for more insight.


      Pitch No.1: "Don't worry. Price doesn't matter"

      When communicating with a middleman drop shipper, you will often be presented with the following situation:

      You: "Why are your prices higher than online retailers? Aren't you supposed to supply at wholesale prices?"

      Middleman Drop Shipper: "Don't worry about prices, people don't buy on price, they buy on perceived value"

      So far so good, but they are just starting to hook you in.

      You: "Ok that's very true, but how do I compete if my prices are higher than everyone else's?"

      Middleman Drop Shipper: "Well look at NationalRetailerX, their prices are x% above market rate, yet they are still selling lots"

      You: "Ah that's a good point, I didn't think of that!"

      This is where the middleman has got you in their grasp.

      The truth, Wholesale Forum friend, is that when you are small, and you don't have hundreds of physical stores or tens of thousands of visitors to your site each month, you must offer additional incentives to your visitors before they will buy from you. And one of those incentives is price.

      National retailers attract far more buyers than you will ever be able to as a small business. They can demand higher prices because they are conveniently positioned, you on the other hand have to fight hard to get people through your storefront or visitors to your site. And one way to fight hard and attract visitors is to offer good prices. You can advertise all your profits away, but if you are not convenient no one will buy from you, especially online.

      Therefore the next time a drop shipper gives you this pitch, walk away. Price and desirability of a product are the two factors you want from your drop shipper. If a drop shipper gives you any sign that they are not satisfying either requirement, walk away, you'll be richer for it.
      Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!

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      #2
      Pitch No. 2: "Yes I am a middleman, but so are you. We are made for each other."

      This is one of the most convincing middlemen drop shippers pitches:

      Middleman Drop Shipper: "Yes I am a middleman. But so are you! We are best buddies, aren't we?!"

      You: "You are right! We are both alike, we will make so much money together! I found a friend!"

      Please don't be fooled by the smiles and claims of friendship:

      1. Middlemen drop shippers are only after your money. They will try to associate their name and image with that of the real drop shippers, those supplying the large national chains. Don't be fooled by their pitch.

      2. If you are a middleman, the last thing you need is another middleman in your supply chain. When you are a middleman, you must go direct to the source. See Zero to Hero - How a home based start up generated over £3 million in just one year - Wholesale Forum for details.

      Don't be fooled by the middleman drop shipper's approach, they are not your friend, they will not help you create a lasting business, they are just leeches disguised as apparent friends, with one interest only, to drain you of your profit and time, so that you do all the hard work for them, and for almost nothing in return or worse a loss.

      TIP: Be particularly wary of any drop shipper using friendly sounding names, like rob, tony, doc or similar. It will not be their real name, only part of the role they are playing to fool you.
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      #3
      Pitch No. 3: "Come see this free info, we offer you free advice, a free list and a free..."

      ... Run for your money! Middlemen drop shippers know that you are after information. They will compile worthless lists and general advice to give you a false perception that they are trying to help you. This is designed to instill in you a very natural and human sense, which is often exploited in marketing, called reciprocity. "We do something for you, you do something for us by signing up to our worthless middlemen services!"

      Hey you are only human, it is human to pay your dues, it's an issue of honor. But there is no honor in repaying middlemen that are misinforming you, purposely, just to get your money. A fool and his money are quickly parted, it is your choice to decide what you are.

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      #4
      Pitch No. 4: "All you need is SEO"

      Tricky, nevertheless another fake claim. They will tell you, "Unless you get traffic to your website, you will never know if you make any sales". What they don't tell you is "SEO is very costly, SEO is nothing like it used to be. SEO today is an ongoing investment, and you will never make enough money with our overpriced drop shipping products to absorb the costs of SEO".

      The secret to SEO, and drop shipping, is to choose a niche. A middleman drop shipper is never a niche. The main characteristics of a middleman drop shipper are:

      1. They are easy to find on the Internet;
      2. They sell products you think everyone wants;
      3. They are friendly.

      The secrets to drop shipping are somewhat the exact opposite:

      1. Real drop shippers do not drop ship for everyone. You have to persuade them to drop ship for you.
      2. Targeting a real niche through SEO is much more economical and effective than targeting a broad niche. Before you get into drop shipping, open a blog and start writing articles about the niche you have chosen. Then, and ONLY then, start approaching real drop shippers explaining them that you are in a position to generate sales by reviewing their products in context.

      If you want to sell online, you have to do so through content. A website on its own is not sufficient, and eBay is often too competitive for drop shipping. Start by choosing a niche, don't make it too broad, research how popular the niche is, identify potential suppliers (they don't have to state that they drop ship on their website, they may still drop ship for you once you have a content rich website where you can feature their products), then create content, and finally apply for a drop shipping account with real suppliers.

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      #5
      Pitch No. 5: "I'll build you a website filled with products"

      This is probably the pitch most widely used by middlemen drop shippers. It takes advantage of your desire to have your very own website.

      The middleman drop shipper will pitch you by saying that they will set up a website for you pre-filled with the same products that all their other drop shippees are selling. They may offer you a quick set up and a good service at first, only for you to realize at the end of the process that you are left with the same site that hundreds if not thousands of other sellers are using, and that therefore has no chance of attracting any sales. Even making a single sale would take you a monstrous effort, time which instead you could have invested in learning about wholesale sourcing, import export, SEO, and what not. There is no buzz in making a sale if that sale took you far more money than profit to obtain it, and weeks of effort to achieve it.

      What is worse is that, once you raise your concerns to the middle man drop shipper, you will probably get insulted with comments along the lines of "You haven't put enough effort in promoting your site" or "You need to market your website more" or "You don't have the traits to succeed in business". Nonsense. By now they have fooled you. They have fooled you into believing that the fault is yours and in your acumen; what they won't tell you is that you have wasted your time promoting their idea of business and their overpriced products for little or no return, and that you could have made much more money with a simple job.

      If you start off by buying a pre-filled website, not only are you starting at a disadvantage compared to resellers who are actively looking for drop shippers by contacting the manufacturers and wholesale distributors directly, but you will also have wasted your valuable time in promoting a site that has no chance of truly succeeding. And, if the drop shipper is controlling your domain and website, the moment you want to quit they will take all your efforts away by shutting down your account. Do you really want to catch-22 yourself this way?

      The truth is, there is nothing special about having a website per se, there are literally billions of sites online. Most of them lost money. The majority of them never even earned back their initial investment.

      This is not to say that a website cannot work. Well thought out ecommerce web stores can make a lot of money, but they don't come out of a box, and they certainly don't cost $50. If you want to build a web site that sells even a few units, it must be truly customisable. Most of the sites you will be purchasing from dropshipping middlemen are rewrites of ecommerce packages available for free, like OSCommerce, ZenCart, and similar.

      Instead of falling for this pitch, get a professional ecommerce site built for you. You can either get a hosted solution: BigCommerce.com, Volusion.com, or get one free with an eSources Premium Membership; or get a custom website built for you by hiring a programmer through sites like Elance.com.

      Then, instead of spending your money on drop shipping fees, buy at true wholesale prices directly from wholesalers and distributors. Then ask the wholesaler/distributor to send the merchandise to your order fulfillment company. An order fulfillment company is a company that stocks wholesale merchandise for you, and then ships individual orders (with your business details on the packages) directly to your customers. You just send your fulfillment company an email every day, with the list of orders and where they should be sent to. Some fulfillment companies will even handle customer service for you (both email and phone support), and most deal with everything related to returns.

      Even Amazon offers a fulfillment service, make the most of these to grow your business into a true online retail success.

      Life will only give you back what you value yourself. If you undervalue your time, you will get very little return for your time investment. Ask yourself, why is it that middle men drop shippers don't sell their goods? Simple, because they make money only by taking drop ship fees from you. Their overpriced products hardly sell, and as more gullible start ups join them the market becomes even more saturated with the same, overpriced goods.

      Do you really want to finance their pockets? Or yours? Invest your time in a business opportunity that is well planned, go direct to the real sources, and don't be fooled by marketing messages promising the stars. Middle men drop shippers are the only ones making the money, cut them out of your business plan and start building a real business with potential for longevity.

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      #6
      Pitch No. 6: "You will not be left with dead stock in your hands that doesn't sell"

      This is probably the most vicious pitch you will have to overcome. Here the middleman drop shipper takes advantage of your initial unwillingness to take risk. It basically manages to obtain money from you by exploiting your fear of failure.

      What you achieve by falling for this pitch, however, is the opposite of what it appears to do. It drags you into a fictitious opportunity, and diverts you from the art of taking risk, which is at the heart of business and of making money.

      Plus, there are many genuine drop shippers that will safeguard you from stock that doesn't sell for you. But they certainly don't ask for a joining fee.

      If you are afraid of taking risks, it means you are not yet ready to go into business. Be wise and educate yourself first on the art of business. Once you feel ready, start small, and learn from the process. Then take smaller educated risks.

      This is how all the greats made their fortunes, not by luck, but by making educated mistakes. All the greatest entrepreneurs will explain you that failure is at the heart of their success. They are very avid readers, they educate themselves on every aspect of a new enterprise before they invest any money in setting it up.

      They would all tell you that drop shipping websites out of a box (which is a key characteristic of drop shipping middlemen) are the worst start you could make, because they deprive you of your ability to be truly unique. And, as you probably already know, only uniqueness leads to real profits.

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      #7
      Pitch No. 7: "We will charge you a fee so that the general public cannot buy from us."

      Persuasive, but false. True drop shippers qualify resellers by asking for business information, and not by charging joining fees. The moment a drop shipper doesn't ask you for business references you automatically know they are a bottom level middleman. Their tactic is to make as many people as possible feel included, so that they can cash as much money as possible. If you want to make money from drop shipping, and you want to safeguard yourself from middlemen, register for business, set up your company. It is not that difficult or costly, and it will be your pass card to real profits.

      To conclude, be smart, there is no glory nor profits in doing what everyone else is doing. Middlemen drop shippers have only one interest. To make you feel included. To make you feel like you are part of the pack. To make you feel like their friend. If you need friends, you can build exceptional friendships in business, but the last people you want to befriend are those that lie to you and don't offer you any competitive advantage. Be different, and you can make drop shipping a very successful business model. Be like most people, and you will just be average, which generally means a large credit card bill that never ends.

      And finally, some positive words to get you in the right mood: Zero to Hero - How a home based start up generated over 3 millions in just one year - Wholesale Forum


      Pitch No. 8: "Have a look at this sample eBay listing."

      Some middlemen drop shippers will try to persuade you to pay them a fee by showing you sample eBay listings of products that are priced higher on eBay than the price they are offering to their members.

      This is a very ingenious method, because it leads you to assume that you can sell their products at a profit on eBay. So why is this just a trick, and how can you protect yourself:

      1. The drop shipper will often ask you to visit an eBay search page that shows results related to a very long search string.

      For example, instead of redirecting you to the search results for XBox 360 Premium, they might redirect you to results for a longer search string like XBox 360 Premium Gold Pack Video Game System. This will obviously bring up much fewer eBay listings, giving you an inaccurate impression of profitability.

      In addition, they will set the eBay search to look into eBay listing titles only, which returns even fewer results.

      These tricks leave out all those cheaper listings which were listed using the more broadly used search string XBox 360 Premium. In fact, the only listings that you will see by using the drop shipper's suggested search string are the listings added by the drop shipper's members, and which most probably aren't selling a single unit (see point 2. to find out how you can check if an eBay listing has sold).

      2. When you check existing eBay listings, you shouldn't just look at the listing price, you must also check how many units the listing has sold.

      If the listing has sold any units, you will find this information in one of three places:

      i. the blue box to the right of the listing's main product image, saying "Winning Bid"
      ii. the right hand column of the eBay listing, saying something like History: 1 sold
      iii. in the eBay's Completed Listings search results, which you can view by signing in to your eBay account and selecting the Completed Listings checkbox in the left column of the eBay's search results page.

      Middlemen drop shippers will tend to show you sample eBay listings that have not sold a single unit. Whoever is listing those products on eBay is probably one of their members, and they are probably not selling a single piece.


      Therefore, beware of this middleman drop shipper trick.

      If you are evaluating joining a drop shipper based on a sample eBay listing they have given you, check that the listing has sold, and also search for the product on eBay by using a short keyword string. This will bring up more results to compare, and will give you an indication of whether the drop shipper is really offering you products that are selling, and that can make you a profit.


      Pitch No. 9: "Only YOU can create success for yourself!"

      Oh! Now it gets personal! The middleman drop shipper is now really desperate to get your money. They have almost run out of options. What can they possibly do now to persuade you to part from your hard earned money? You guessed it, the personal attack:

      "Yes we are middlemen, yes we are overpriced, yes you are not a national retailer and will never benefit from the same synergies, yes you will earn less than minimum wage with us, but hell no, YOU are not a loser! Only YOU can create your own success!"

      Your natural reaction will be to challenge the notion that you may be a loser, by parting from your money for a useless middleman drop shipper website or whatever they call it.

      - Don't walk, run from the middlemen, they are marketers, they are not your friend.
      - They are only interested in enslaving you to the idea that you need them and that you can't do without them.
      - Once you realize what has happened, they will try to blame you by saying that the reason you have failed is only your fault.

      All their claims are nonsense, and a scam.

      Business is ALL ABOUT LEVERAGE, and any middleman drop shipper (especially if they are easily found through search engines) deprives you of leverage. If you don't yet understand this concept don't worry, you will as soon as you do the math and come to the conclusion that you could have made more money from flipping burgers than from paying a middleman drop shipper ... and yes, it's that bad. Most people don't even recover their original payment. All because they didn't want to accept the notion that someone, a middleman drop shipper and fraudster, suggested you may be a loser by not accepting their pitches.

      The middleman drop shipper will then try one final attempt to get out of this situation, saying that you can still leverage their overpriced products to build up an email list. What they don't tell you is that visitors will quickly run away from your website as soon as they see your overpriced products, and they will NEVER register. Not to mention the issues you will experience ranking anywhere in search engines because of duplicate content issues.

      The middleman drop shipper has one purpose, to use YOU for THEIR leverage. To chain you to their devious calculations. And never doubt it, there will only be one winner, and only one loser if you fall for their cliques and false advertising.

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      #8
      Great forum, I've never been to one where admin offers advice as a first thread...Bravo

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      #9
      Indeed this is some really good information thank you!

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      Rated this thread:

      #10
      Very interesting and informative post.. Everyone of us considering using drop shipping to make money should read it.
      You will definitely have saved us a great deal of heartache without mentioning the time and money at risk.

      Thank you very much!

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