Want to make money while you sleep? This is how!

Building a passive income machine 🎰
Seth Kniep
November 9, 2017
Entrepreneurship
Walk into your garage. Maybe it’s a cold and empty room with a cement floor. Maybe it’s full of furniture, broken down bikes, and miscellaneous pieces of hardware you've accumulated over the years. Maybe it’s a clean and furnished workout gym (that's what I'm planning for!). Whatever it is, imagine that right there in the middle of your garage, you build a machine. This is your Amazon store.

It takes time to build this machine. You have to put money back into it. It might take you weeks or even months to build. But once it’s built, it will serve you.

You can’t design your machine so that every time you want it to make you money, you have to turn a handle. You can't be working constantly to make it work: otherwise, when you stop, it stops. You've traded bosses from a corporate job to a different kind of job.

Instead, you have to go out into your garage, grab your hammer and wrench and tools and build up a machine. Yes, it’s hard. It takes a lot of work up front. But once you’re done, this thing makes money for you while you’re sleeping! You can get up in the morning, look at your phone, and see that you’ve made $2,000 overnight. You didn’t have to go and get up and turn the handle on your machine.

This is a simple example of what I’m doing. Here are a bunch of small items I’m shipping off to Amazon FBA. I got out my notepad and did some simple calculation to figure out how much time I’m saving by sending these items to Amazon FBA instead of shipping them myself. 

There are about 294 items in these boxes. If it takes me five minutes to fulfill an order, pack it up, and ship it out, we have 1,470 minutes. That’s 24.5 hours of labor. That’s a lot of time.

If 10% of these customers had a question, and it takes me 3 minutes to answer each question (which is being pretty soft), that’s 87 minutes spent answering 29 questions. An hour and a half.

What about returns? Let’s say 10% of these ended up as returns. If each return took 10 minutes to fully process, that’s 290 minutes. Five hours.

Conclusion: 31 hours of labor. That is four regular 8-hour work days on average.

Think about how many products I can find in four days of work instead of dealing with shipping and monitoring these products. I can send these off to go make money for me and save me time. If the products in these boxes, long labored over and many hours spent researching and testing on, do as well as I suspect they will, it will make me money for months, maybe years. Each product is a little machine. I’m building machines to make me money.

This concept does not just apply to Amazon. If you have a website, you can turn that website into something that is converting your visitors. I can’t tell you how many people I’ve talked to who don’t have people coming to their site. Or, if they do, they could be getting 2,000 people a day, but they’re not turning them into paying customers. They’re not building a machine.

This is why I love coaching people. The things I’ve learned just over the last three years have brought me over $500,000 in the last seven months. I can train you to get there. If you’re interested in getting help, let me know. I hope the principle is of use to you.

Build machines that will serve you. Delay gratification. Don’t be the microwave generation: be the crockpot. Wait. Watch. Invest. It will pay you back well.

 

Tip #3: Focus on what the supplier values

Rule #1 in all negotiation is to focus on what is valuable to the other party first. Then it's much easier to get what you want as well. The final deal needs to make sense to both sides.
Chinese suppliers value two things above anything else: friendship and long term business. Friendship often results in long term business. Chinese suppliers value friendship because a strong friendships between vendor and customer is a healthy business practice in Chinese culture. They will often address you as "friend."

They value long term business relationship because the cost of acquiring and learning the needs of a new customer is much more time consuming than working with the same customer for years. Business with an old customer is much less risky than business with a new customer. New customers are unpredictable and often flighty, resulting in wasted time for the Chinese supplier, going back and forth in a conversation with a customer who ends up not buying.
So how do you do this? In your communication with the supplier, mention "friendship" and "long term business relationship." Weave it in naturally and let them know that you value both of these highly.
Look again at my example message to a Chinese supplier:

Hello Cynthia! I own a US company that sells aromatic oils and accessories. 
I am looking for a manufacturer who can create an aromatic oil holder.
I am looking for a manufacture to build a strong friendship with for long term business relationship.
I would love to see if you can create the model I need. 
Please, see the specs in the image I attached to this email. 
I would appreciate your prompt response. 

We are looking for a good business relationship with a manufacturer! 

Sincerely, 
Lucy

Notice that I focused on what they value. I stated two qualities they value highly: 1) long term business relationship and 2) friendship. These two qualities go a long way in Chinese business culture, so leverage them!

Don't be surprised if you get responses referring to you as "dear" or "friend," while these names of endearment might seem strange and awkward to us in the west, but to the Chinese, they are standard. The reality is, if you are willing to do business with them in a long term relationship, then you are, by extension, their friend. Concepts like friendship, loyalty, long term, integrity, it all mixes in their culture of business. 

Photo by Joey Huang

Couldn't we stand to learn a thing or two from that style of doing business? How many of us here in the west have worked with corporate entities that we would categorize as soulless? The best business relationships form like friendships. They are people you want to stick with you. That's why I encourage you to be cautious about who you allow to do business with you. Finding the right supplier is a critical part of this process, and our members have access to all the tools and strategies for finding good people to do business with. Please consider journeying with us on this path of relationship and margin building. Don't let communication be a barrier to your passive income freedom. 

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Seth Kniep

Married a pearl. Fathered 4 miracles. Fired his boss. Turned a single dime into $104,857. Today, a self-made millionaire, Seth and his team of 8 badass coaches teach entrepreneurs how to build passive income on Amazon.

Dead serious about building income on Amazon with eight successful coaches in a community of badass Amazon sellers? Join the Amazon FBA Mastery membership.

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