$250,000 Profit in 4 Months From a Simple Physical Product

First let me say what I'm about to describe is very simple. Seriously, it's extremely simple.

Even though it is extremely simple, there is a huge barrier to entry that will prevent most people from being able to do this.

The barrier to entry is this: it requires a large amount of capital. Specifically, it requires six figures in capital to make it work. There is no other way to make it work. Even if you don't have access to six figures in capital, I'm sure you will find this strategy very interesting to read about.

Okay let's get right to it.

Here is how I am helping a client make $250,000 in profit (not revenue) in about 4 months - selling a physical product.

What is the product? Spa gift sets.

How are we making $250k profit in 4 months selling spa gift sets?

What's crazy is that we aren't even selling the spa gift sets. We are GIVING them away! Well, sort of...

We are helping a big online retailer run a promotion where they give the spa gift sets away to their customers as a free gift with their purchase. Here is how we are making $250,000 in profit:

We are sending them 25,000 spa gift sets at NO UPFRONT COST to help them run a promotion that will generate a lot of sales. The promotion is this: Get a free spa gift set (valued at $49.95) when you spend $75 or more.

The retailer will pay us $20 for each of the 25,000 spa gift sets they give away. Our profit on each spa gift set is $10. So 25,000 x $10 = $250,000 profit.

Really simple. So how did this come about? How exactly does it work?

Let me ask you this. Have you even seen those coupon codes where you get $20 off $75 or more.... or maybe $30 off $100 or more?

Sure you have. Online retailers do this all the time. Most of us will not even shop at an online store without first looking for a coupon code. Don't you agree?

Well one day I had a bright idea. Research shows that free gifts and free premiums can perform better than discounts. If any of the ladies here shop at Sephora, you know they love to give away free gifts with your purchase, rather than a discount. It works.

So I said, why doesn't someone approach a big online retailer doing one of those $20 off $75 promotions, and say this: Rather than giving customers $20 off... let us send you these widgets. You give them away to everyone who spends $75 or more. Then pay us $20 for every sale. You make the EXACT same amount of profit on each order, though I bet you will increase your sales because free gifts work better than discounts.

There is no risk to you because we will ship you the widgets at no cost. Simply create a coupon code and promote on your website and to your email list. If any widgets are left after the promotion, simply send them back to us. Simple as that.

We chose spa gift sets as the widget because we wanted to work with an online retailer that sells products to women. And also because spa gift sets are a great free gift that naturally fits with tons of holidays and special occasions such as Christmas, Valentine's Day, Mother's Day, Store Anniversaries, etc.

So how do we guarantee we make a $250,000 profit?

Simple.

Choose a retailer big enough that has a history of running promotions where at least 25,000 customers use those $20 off $75 coupon codes. For example, if a retailer tells you they always have about 30,000 customers use that coupon code every time they run a promotion, then you know at least 25,000 customers are going to use the coupon code for the free spa gift basket.

Worse case scenario, you have some spa gift baskets left over. Guess what... that's not a problem. You can still make your $250,000 profit. All you have to do is go to another online retailer and do the same thing. Another reason we chose spa gift baskets is because almost any retailer that targets women can give them away, whether they sell shoes, handbags, clothes, jewelry, doesn't matter.

Your profit is pretty much locked in and guaranteed. I designed the strategy this way on purpose.

So what about this 4 month time period described in the title? Why 4 months?

Well it takes about 60 days to get the spa gift sets imported from China, another 15 days to get everything delivered to the retailer's warehouse, 15 days for the promotion, and 30 days to get paid from the retailer. That's about 4 months from the time we buy the spa gift sets until payday.

That's not long at all to basically double your money. Speaking of doubling your money, the key to making this work is a quality spa gift set that the retailer will agree to give away to their customers. They are not going to agree to give away some cheap, low quality, skimpy looking spa gift set with hardly anything in it.

It needs to be a high quality spa gift set with lots of stuff in it.

I have connections with a huge supplier in China for spa gift baskets and bath and body gift baskets - the exact same supplier used by Target, Walmart, and a few others. I can get $50 gift baskets from China shipped to any warehouse in the United States for about $10, including shipping, freight, taxes, etc. It was EXTREMELY HARD to find this supplier.

And you have to spend a lot of money to get a good deal, which is why this strategy requires a significant investment.

As a recap, all we are doing is spending $250,000 on the spa gift sets, and getting paid $500,000 from the retailer after the promotion, for a final profit of $250,000. Simple. Nothing complicated.

All you have to do is convince a retailer to try a free gift promotion rather than another discount promotion. Not hard, especially if you can make it zero risk for them so they don't have to spend anything upfront. Your profit is basically locked in and guaranteed if the retailer is big enough. Or you can work with two smaller retailers. Send half of the spa gift sets to one retailer, and half to another.

This is a very simple way to make a lot of money for anyone that has a lot of capital to invest. When I actually have six figures of MY OWN money to invest again, this is EXACTLY what I am going to do. I will do it for myself instead of helping someone else do it.