People who sell on Amazon regularly make 6-7 figures a year in profit, and there's a very large number of people that do that. Our team of builders is highly experienced and manages over a 100 stores like that. However, every store starts up small and grows over time. Our clients regularly make over $10k/month in profit by the end of year one with us. However, how much you make also depends on how much money you have in inventory. The more inventory you have, the more money you make. You'll ideally start with at least $5k for inventory, then scale that up as you're seeing results to grow your revenues.
You'll need money for two things to use our automation service. Firstly is the buy in fee. Since this is a 100% done for you business model, there is an upfront buy in as well as an ongoing net profit split from your store. The buy in starts at around $40k, and the profit split that we charge is around 30-40% of the net profit we make your store every month. Since this is done for you, we have a lot of up front costs in terms of organizing teams, thus the buy in covers our business expenses for the first year. Then the profit split covers our expenses long term and keeps our team just as invested in the long term success of this store as you. You'll also need money for inventory, which you can choose how much to start with, but we recommend around $5k, which you would scale as you grow you store. Of course, inventory money isn't an expense, as you are fully reimbursed for the inventory money as soon as the inventory sells, and then we split the profits.
Normally it takes a few weeks to get everything set up and launched, and you start seeing your first sales around the end of the first month or at the start of month 2. From there we gradually build up the revenue levels of your store, which can take about 4-5 months.
We offer a variety of contractual protection clauses for you in this venture. First is our 90 day revenue clause, which ensures you'll make at least $8k in revenue in the first 90 days as long as you provide us with at least 5k in inventory spend. The second is our two year buy back clause which states that if you don't make your entire buy-in back with net profits (after all profit splits) within 24 months of joining us, we’ll buy the store from you in cash minus the profits that you have made. I.e. If you invested $40,000 in your store and made $30,000 in profits during the 2 years, we will buy back your store for $10,000 ($40,000 – $30,000 in profits). This ensures that you’ll never lose money in this venture, though out of the 150+ stores we’ve built, we’ve never had a client have to use the buy back, as we normally make their buy in back in year one. We also help you quickly liquidate any inventory that doesn't sell within 90 days, by using our Amazon clearance strategies or leveraging our wholesale buying partners.
As this is fully done for you, we do 99.9% of the work. All you need to do is set up your LLC, verify your identity for Amazon, and manage cash flow (provide money for inventory, pay our monthly profit splits, etc). All this requires less than an hour of your time every week or two, if not less.
For tax purposes, we established our tax residency in Wyoming. Our warehouse partners are located in various hubs around the US, like Texas & NY. Much of our team works remotely due to the online nature of the business.
