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Another question from Jean. Hi Sean, any tips on how to create more demand for my frozen product? Should I start advertising it like make teasers, even if it will take a few months pa to ship it?
Well, if you’re taking in pre-orders, it might be a good idea. And when you’re taking pre-orders make sure that you get the cash. So pre-orders usually work that they give you like 50%, somewhere there, 50 to 70%, maybe 50% would be safe of the payment. Some people ask for 30%, so maybe you can get 30% of the money as a down payment for the pre-order that’s safe enough for you, cause you have cashflow, right? Hindi sila mag prepre-order lang tapos ikaw yung mag sheshell out. So you ask for 30% down and then you go ahead and order it.
And for the 30%, maybe you can have like the ad spend or advertising spend tuck in already. Always remember, when you’re going to advertise on Facebook and Instagram, you have to have a target, a goal na per P100 na ginastos ko doon sa ad, dapat makakuha man lang ako ng isa or dalawang sale. Meaning you have a 1% or 2% conversion rate. Actually, that’s amazing. If you have 1%, it’s already amazing in my opinion. But that’s how you can do it.
Now how you’re going to take people into that conversion point, depende na sa’yo ‘yon. Mag e-commerce ka ba or ipapamessage mo ba sila lahat isa-isa sa’yo? It really depends on you. I see some people who are advertising on Instagram, what they do is they ask people to message them, PM, isa-isa. Medyo hassle ‘yon. Like you have to have, I don’t know, two or three people, depending on how many messages you get from the ad, because people are going to message you and usually, guess what they will say? HM. Diba? Tayong mga Pinoy, kilala tayo sa HM. So usually that’s what they would say. Get ready to answer those inquiries all the way until you can convert them to do a pre-order with you.
So if you don’t have the products on hand and you’re going to take a few months pa to ship it, that’s called the pre-order. But you have to also notify them that you are in pre-order stage and they’re getting it for cheaper. Kasi kung mag-oorder sila, they’re going to pay, like, let’s say, I don’t know, P2000, let’s just say. You’re going to pay P2000 pesos when I have stock on hand and you’re going to buy it outright. But when you pre-order, you get it for P1800 lang, so may P200 discount ka kasi nag pre-order ka. Same thing, you just have to wait, just have to wait X number of months.
Now, why will you do that? You give them 10% discount to wait. One good reason you want to do that is you gauge market demand. Kung marami kang pre-order, edi alam mo. Palakihin mo pa yung shipment mo, paramihin mo pa yung shipment mo. Nakatipid ka sa shipping fee, so it makes sense for you. Also, you are able to get cashflow coming in because they’re going to pre-order. May down payment sila, may deposits sila, you can use that to run ads or to pay for the shipment coming in. So I hope that makes sense.
If you’re going to run ads, I suggest Instagram. If your product could look very nice, maybe you could show the cooked version, not the frozen product, or you can show both, but make sure you hire a food photographer so that it really looks nice when you run the ad. Invest in your product shots, because your ad is only as powerful as how you present it to be.
A question from Maj. Maj says, hi Sean, hope you’re doing well. I would like to ask your insights about multilevel marketing or direct selling of products as an additional source of income, something you can do online selling as well this pandemic situation. Is that advisable or not? What are your thoughts about it?
I have to give you a disclaimer for that because I am a registered distributor of Usana. Not active, but a registered distributor, cause I’ve been taking the supplement for 10 years now. So that’s my go-to supplement. I don’t drink the entire, like all of their products, but I drink the essentials, proflavanol c, and I don’t distribute actively. But what I do is if you search for Usana Philippines, Usana distributor, Usana supplier Philippines, I think those are the keywords that I rank for. I ranked pretty high for those keywords on the first page.
So what happens is if people go to that URL, that’s a landing page on my website, sean.si, and basically it’s an FAQ of what Usana is all about. But if they contact the number there, that’s the number of my hotline. And what happens is I get some commissions out of it because they put the people who contact there, who buys the product, or who registers at this as a distributor, under my Usana account as well, so I do get passive income from that.
Again, I’m not active in terms of distribution, I’m not an active distributor. My friends and family buy from me, but it’s not something that I can live off on. So If you want to do it as a side business or side hustle, I would say it’s pretty good. Right? But it’s not something that I think you can side hustle and you try to live off of that side hustle, medyo mahihirapan ka doon. If you want to do it full time, that’s a different thing.
I know a lot of people that are super successful doing multi-level marketing, so it is a legitimate business. Some. Not all. You have to study the product first. For me, how do you know if it’s legit or not? Tingnan mo yung product. If the product is good, if it’s effective, for me, I’ve been taking it 10 years, it is super effective for me, that’s why I’m taking it. I know some people it’s not effective for them, so they don’t take it. They take some other supplement. Maybe they take Nu Skin. Maybe they take Young Living. Doesn’t matter. What works for you, kung ano ang hiyang sa’yo? Okay ka na doon. Like for me, it’s Usana.
So yeah, definitely direct selling or a multi-level marketing is something that I think is legit. If you have companies that you want to look into, I’m sure you’re looking into some, cause you ask this question right here. So study first the product. Kung okay yung product, kaya mong ibenta with good conscience, with good integrity, tapos ikaw mismo gagamitin mo siya kasi maganda talaga yung produkto, for me, that’s legit. And go ahead and do it. In fact, if you want to do it full time and you can make a lot of money from it, there’s no real reason for you not to.
Ang maganda pa doon, one of the reasons actually that I didn’t like to go into multi-level marketing before is, wala siyang legacy plan. Meaning kung anuman ang kinita ko, kung anuman naman ang naging downline ko, hindi ko siya mapapasa sa anak ko or sa mga anak ko, or pipili lang ako ng isang anak. So dati walang ganoon, but now I think they have a legacy plan, which is really good. So for entrepreneurs like me, if you ask me if I do things all over again, I might actually go with multi-level marketing. Who knows? But I think it’s a pretty good business depending on the product.
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