Why We Love Lead Gen More Than Shopify Dropshipping
We built both a Shopify Dropshipping and the Local Lead Generation business, and guess what... We like the local lead generation model so much more. Here's why...
6 Main Reasons Why Building & Ranking Simple Websites like These
Is So Much Better than Drop Shipping
#1. Local Search is Way Less Saturated
With lead gen we rank simple websites at the top of Google in local search like below.
We have at least 50 different niches we can go into, but not only that we can pick and choose any city in the US or other countries. Each city is its own separate market.
This gives us exponentially more options than Dropshipping does because dropshippers typically operate nationally, which then you're forced to compete with every other dropshipper because with dropshipping, you have to pick a product category and you're forced to compete with any supplier anywhere in the world.
In local you're only competing with 20-30 local companies instead of the world.
Dominating smaller market is easier but in business that would mean you would make less money... however with local lead gen it does not matter because we can simply continue to build more sites in other cities and pick any niches to continue to grow our income.
So we are taking advantage of the power of the internet, we're not stuck in any one location with a storefront.
In fact, I could live in a different country and still build & rank websites in the US and get paid.
Why compete against giants when you can go knock out 3rd graders?
#2. Local Lead Gen Success is A Lot More Certain & Repeatable
With Lead Gen we have a specific formula we follow to outrank our competition in Google.
One of the main factor is backlinks or links you get from other sites, we are taught the skills to be able to go get these links on our own.
We don't hope & pray that we get #1 rankings, we know exactly what we need to do.
What's great is that in local rankings, most of our competition don't really know what they're doing when it comes to manipulating search.
In dropshipping, to be successful, you've got to do 2 things well:
1. Have excellent suppliers who enable you to have competitive pricing.
2. Have to have lots of traffic coming on your site, flowing to your product pages.
I had a friend who made some money with dropshipping, but his conversion rates (from fb ads were terrible, so his profits were super low, because he had to spend so much on ads to keep people coming to his site.
So if you're set on being a dropshipper, either learn fb ads really well or make your website super friendly with Google (seo), so you can get prospects, potential customers, to your store.
**Warning: a lot of drop shipping niches are virtually impenetrable to those just starting**
1. The experienced dropshippers have either their ads super dialed in or they've got their site in bed with Google, or both.
This is a big issue with this business model, that makes it quite difficult for a new seller. Competition is fierce and consistent traffic are hard to come by unless you yourself develop a top notch product where you have full control over the quality.
I love ranking simple lead gen sites because I don't have to worry about traffic from people which I have no control over. I simply rely on my tried & true system to go get my backlinks and I'm able to predictably rank all my digital properties.
Once my lead gen sites are ranked, I can leave them alone and they keep making money for me on autopilot.
#3. Local Lead Gen is Much More Future-Proof
On Amazon FBA, even if you create a successful business, the question is, for how long?
Companies are constantly innovating new products to beat the competition, and at the end of the day, on Amazon FBA the superior product will win.
In most FBA courses, what you're taught is to find a easy competition niche, source a product from China and create some interesting packaging or bundle to create a successful listing.
However with this method, the product you're sourcing most likely isn't the most innovative thing on the market and so it is always at the risk of some other product that's much higher quality coming in and beating you down the road.
Success is so heavily dependent on the product which you don't have much control over because you're not creating it yourself.
Where as with lead gen, my success depends on ME.
My skills in ranking sites.
(and more often than not my competition is like 30 plumbing companies, so super low)
All that matters is who is at the top positions of Google.
Leads will always be needed, small business will always need them. It will never go out of style.
As long as I continue to develop my skills in ranking sites, most will not be able to touch me in the rankings and I will always be in high-demand in the marketplace.
Therefore I am ALWAYS in full control.
#4. Local Lead Gen Success is Much More Passive Than Dropshipping
Anytime you are dealing with physical products, you simply have more on-going work to do. Such as ordering inventory, talking with suppliers, dealing with customs, stocking, shipping, customer service & returns...
Dropshipping isn't very passive.
Which is a reason a lot of people move from that to local lead generation.
Nothing is more passive than a website that ranks in Google that generates leads. It's all digital.
We have lead gen sites from 2014 that we hardly ever touch, making us money every day.
We have 50+ lead gen sites out there that are generating traffic daily on auto-pilot and every month we simply continue to build more, with dropshipping it does start to get difficult to manage once you get a lot of products and a few different stores.
We have lead gen websites from 2014 still making us money today that we have not touched since then. It's hard to find dropshipping stores with this level of longevity.
Here's a limo site that's been paying me for 6 years running.
#5. Local Lead Gen Feels More Rewarding
With most dropshipping stores, all you're really doing is being the middle man and selling various products you sourced from manufacturers in China.
You're not solving any major issues for people.
With Local Lead Gen, you're literally helping to keep the lights on for some of these local business owners and they will become your loyal clients. You're building real win-win relationship with these owners where the more money they make, the more you make.
Everyone likes that kind of deal!
You feel good about what you do because you know you're making an impact. This may not seem that important in the beginning but trust me, in the longterm it is important to be in a business where you can remain passionate in because otherwise you will lose motivation.
We've remained passionate in local lead gen because building true personal relationship with these local business owners allows you to really feel the impact of what you're doing. The business becomes more than just trying to make money, it becomes more about how much more people can we serve & change their lives for the better.
#6. You're Not in Full Ownership of the Dropshipping Business
No matter what any eCom guru tries to tell you, Dropshipping is still not 100% your own business because you're actually only in business because of Shopify's platform and so you're in essence helping to build Shopify's business which also means you're at the whim of any future changes Shopify decides to enact.
Somes Other Issues with Dropshipping...
With local lead gen it is my own websites that no one can take away from me.
Google is not going anywhere.
I have full control over my assets in my lead gen business.
On Shopify Dropshipping, many of the pieces you do not have full ownership. While you can eventually build a customer email list, it can take months to build and you'll need a lot of upfront cash for advertising on Zuck's platform.
Despite all these limitations, its still worth it for most people to sell on Shopify because they've started early in the game and got their store up before there ways heavy competition in the market.
But if you have the skills to create your own traffic aka local lead gen, then you can own every aspect of your own business, which means we prefer because we love being in full control.
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