DON'T Sell on Etsy. Do THIS Instead and Make $15,000 Per Month

Summary

The video script discusses the risks and challenges of relying solely on Etsy for digital product sales. It highlights the unpredictability of platform suspensions, the difficulty of maintaining fair prices in price wars, and the limitations in scaling a business on a single marketplace. The speaker suggests diversifying to mitigate risks, using social media to drive traffic to one's own website, and building a brand to command higher prices. The script also emphasizes the importance of owning customer data and the potential for a profitable exit strategy by selling an independent online business.

Takeaways

• 😨 The risk of account suspension on platforms like Etsy can lead to a loss of both job and business with little to no recourse.
• 📈 Selling on Etsy can be profitable, but it comes with significant risks, including the potential for account bans without clear reasons.
• 🛑 The importance of not relying solely on Etsy for business due to issues like platform risk, price wars, and scalability challenges.
• 🚫 The lack of control over customer information on Etsy, which limits the ability to promote other products directly to customers.
• 💡 The suggestion to diversify business platforms to mitigate risks and increase revenue potential.
• 🌐 The potential of leveraging social media and other online platforms to drive traffic to a personal website, reducing reliance on Etsy.
• 💰 The opportunity to earn more by selling products on one's own website, where competition is less and pricing can be more controlled.
• 📈 The benefits of building a brand and trust through free content on social media to command higher prices for products.
• 🚀 The scalability of a business can be significantly improved by driving one's own traffic and having control over the customer experience.
• 💼 The potential to sell a diversified online business for a substantial sum, unlike a business solely dependent on a marketplace like Etsy.
• 🛍️ The value of having an exit strategy and building a business that can be sold for a high multiple of its monthly profit.

Q & A

What is the main concern expressed in the video script about selling on Etsy?

The main concern is the risk of having an Etsy account suspended without a clear reason, which can lead to the loss of both a job and a business, leaving sellers with no control or income.

What is the first problem mentioned in the script regarding selling on Etsy?

The first problem mentioned is platform risk, where Etsy controls everything, and sellers can face issues like copyright strikes from competitors, leading to deactivation of listings and loss of sales and ranking.

What is the issue of price wars on Etsy as described in the video?

Price wars occur because of the low barrier to entry, especially for digital products. This leads to a flooded market with similar items, forcing sellers to lower their prices to compete, which can result in reduced profits.

What is the scalability problem when selling solely on Etsy?

The scalability problem is that it's difficult to rapidly increase income to replace a full-time job if it depends only on Etsy. The fear of the business disappearing if Etsy closes the shop is also a concern.

Why is it important for sellers to have their own customer email list according to the video?

Having a customer email list is important because it allows sellers to promote other products directly to customers. Without it, sellers are entirely dependent on Etsy for customer information and marketing.

What strategy does the video suggest to mitigate the risks of selling on Etsy alone?

The video suggests building a diversified online presence, including a website, YouTube channel, and social media accounts, to control the customer experience, avoid Etsy selling fees, and reduce reliance on a single platform.

How does the video script illustrate the benefits of having a YouTube channel for an Etsy seller?

The script uses the example of 'Etsy Happy Downloads', which has over 300,000 YouTube subscribers and directs traffic to their own website. This strategy brings in free traffic and additional income from YouTube AdSense.

What is the potential earning from YouTube AdSense mentioned in the video for a channel with 80 million views per month?

The potential earning from YouTube AdSense for a channel with 80 million views per month is estimated to be between $4,000 and $74,000, with an assumption of around $35,000 per month as a likely average.

How does selling on one's own website help avoid the price war issue discussed in the video?

Selling on one's own website allows sellers to avoid competition and set their own prices. This is because there is no direct comparison with other listings, enabling sellers to charge a fair price and maintain healthy margins.

What is the potential multiple for selling an online business with consistent traffic and healthy profits?

The potential multiple for selling such an online business can be about 30 to 40 times the monthly profit, although this multiple depends on the niche and other factors.

What additional resource does the video offer to help viewers build a sustainable business?

The video offers a free cheat sheet that includes tools, website platforms, apps, and strategies used by the creator to scale up their digital product business, which is currently making $15,000 a month.