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So many experts so little time to debunk all the parroted BS on how to actually get a product off the ground successfully. I am doing my best to do so one myth at a time.


Just a little about me. I started selling on Ebay in 1999 went full time Ebay and Amazon 2010-2011 and in 5 years have doubled in growth almost every year. Currently I should close 2015 at about 5 million in sales. The company is growing and I took zero classes on how to do this as real experts have been hard to find. So have real mentors. In canvasing the web for experts and mentors I have found a lot of BS. Many so called experts were actually students of some of the sell on Amazon classes and their real world experience was pretty small, and their actual experience running a real company was nil. So I decided to give away information for free to people using my own experience and those people who have demonstrated a true understanding of business and are not just out to take money from people hoping to get away from their current situation and move into what they are told is a better life on the other side.

So to help expedite the process lets look at what is not going to work in MOST cases…..


  • starting with less than 5k for a private label product
  • launching in less than 4 months again for private label
  • not needed any more cash
  • zero dollar marketing budgets
  • working 4hrs a week (complete BS)
  • slow growth sample sales
  • small orders
  • air shipping

Private Label Expert Myths Debunked – What Doesn’t Work

5K to start

Less than 5k has not really worked well for me. I started with 8k and one product and got really lucky that this product hit so hard it blew us away. Of course it did not last as most of them do not once people see you making money so we had to continue to add new products which means more money. In the days of copy cat easy to get anything especially with the other classes out there you will be hard pressed to get anything to last a year.

To get a PL product ready with packaging, and all the small details that make a difference and the communication and team you will need to make it work has taken me about 4 months to get the product landed in the US. Some have taken me longer as it depends on shipping etc. I have the luxury of living in the US so communication is slower which eats into time. I have one company that took us over a year to launch but when we did we launched 30 products, training, automation, etc…..think about it you need boxes, packaging, instructions, UPC, EAN, FSNK, photographs, keyword research, descriptions or copy, web site data and more….just to get one product off the ground and making some money (note I did not say profit did I?)

Here is the funny part most people do not get. If your product is even moderately successful you will run out of cash just refilling stock faster than you get paid. Net 14 or Net 30 payments when your doing 400k a month means you need 600 to 800k in inventory in stock at any one time to make sure you do not run out in between settlements. Knowing how to access that cash to keep your momentum moving is critical.

Zero dollar marketing

Used to work 5 years ago. But some smart silicone valley type thought we get 20% of the sale, plus fulfillment fees, how about we charge them for traffic to their listing as well and boom no more free lunch. Now everyone is doing it. Want traffic you have to buy it and you better have figured it into your business model….what you do not have one of those? Watch my free video on business plans to get a high level view of why they are important.

4Hr work week

is such BS and I am willing to put my money where my mouth is and say the guy who wrote it does not work 4hrs a week. I think that book has mislead more people into the online arena than any other. Sorry but ask any super successful business person how many hours they work and your going to see it consumes them.


The costs to be super successful is high and it is why so few attain it. There is a cost of success and it involves not watching TV, not taking weekends off, not playing in the softball league, and more. If you want the mediocrity continue doing what your doing now. If you want super success something has to change and for most (me included) it is giving up childish things. And for some it is even more costly.

Sample sales and slow growth

Does not work any more. If your not first your last and if your selling samples to validate the market then your not doing your research correctly. Most people are not inventing something new, they are not changing the world with FREE long distance and FREE video communication like I did from 1996 to 2007 with VoIP which killed the LD companies and developed the tech we all use for webinars today. That is a long and painful road as you have to educate the consumer.

In our cases now we are selling something people already want or buy so there is a market for it already. So instead of playing business we need to be in business and launch a product. We cannot do that with 10-50 units and selling unbranded junk on Ebay, or worse Craig’s list, etc. You should be able to tell if you have a good manufacturer and good product from the one or two samples you get as you vet the manufacturers. If you cannot then hopefully you have someone who can or maybe this is not for you. Just remember this “Would you like it if your paid top dollar for it and received it yourself?” See people on Amazon are willing to pay top dollar. This is not Ebay they are not looking for deals as much and will pay for the best product. But if you and a million other sellers start selling junk. Well Amazon will turn into Ebay and all of our profits will evaporate as consumers lose faith in Amazon.

Air Freight and Express shipping

Kill your margins completely and for most people eat up their budget and hurt their chances of growth. The most important asset a new company has in cash. If you spend it all on getting a small order into the market your killing yourself. Think of it like this. If you could save half shipping ocean and buy twice as much product you could effectively launch a product and generate sales and even have cash to cover growth because you did not blow it on express shipping 50 items to test the market for a product that is already selling…..duh

I could go on for days but I am not and in some cases what I am saying may not apply. But I know that for the majority this is true and I am trying to save you from dying before you begin your journey.

We will continue our discussion on the does work in another post: Private Label Expert Myths Debunked! – What Works

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Alan Basinger

Alan Basinger

Alan Basinger is CEO of GDW Inc and a 15 year eCommerce veteran. As well as a serial entrepreneur, sought after mentor, coach, and speaker. Alan also is a serial giver and regularly gives his time to others to help them in his quest to help 1000 people get free by running their own profitable eCommerce businesses. You can contact him at support@gdwinc.com.
Alan Basinger

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