 What's going on guys welcome to a new video so in this one I'm going to take you through three tips to help you pick profitable products. There's actually somebody who commented on my previous video which gave me the idea to do this one and they were referencing the VAT currently here in the UK and how this affects the price of the products and writes off some of the cheaper products which you should be avoiding so I thought why not do a video on this topic as well as some other things in which you need to be considering when you're doing your product research and looking for particular products to go ahead and test. So what I've done is I've put together the three most important things you need to keep in the back of your mind when you're doing your product research and then take you through in this video. As always I'll be showing you the information and proof and evidence behind these points as well and how they can really make a difference in your business. So with that being said thanks for tuning in hope you guys enjoy it and let's jump straight into it. So welcome to the video three tips to picking a profitable product. Before we jump into it firstly make sure you are picking a product suitable for your platform so if I'm not mistaken the majority of people watching this video are probably going to be using Facebook ads so that's going to be the focus but if you're using say Twitter or Snapchat or Google these are all things you have to keep in mind for the following reasons. So if I draw your attention to the first image on the left hand side it illustrates kind of like the age ranges of people who use the individual platforms and what we can see is that Facebook and Twitter primarily more popular in the older generation people of my sort of parents generation and then obviously Snapchat is for a lot younger users because it's one of the newer social media platforms. Did a quick Google search you guys can go do that now if you like but when I took this one the Facebook average user age across all countries everything is 40 years old so when you're finding or looking for particular products so keep this number in mind when you're doing your product research talking from experience a lot of my best selling products are or tend to be females kind of in the 40 plus range if not a bit older so something to keep in mind next time you're doing some product research something else to keep in mind or consider in fact is what frame what kind of mind frame is your customer currently in when they see your ad because this will affect the not only the products that you pick but the way you advertise the products as well I can probably do a separate video solely on this topic so people aren't in a buying mood when they're on Facebook obviously people don't go on to Facebook to buy things they go on to Facebook for a number of reasons whether it's to spy on their friends or spy on strangers or laugh at funny videos or just kind of catch up with the latest going on in their lives whereas if you compare this to say Google when people are looking to buy something then they will go into Google and look for that particular item therefore people are kind of more prepared to actually spend money and they're in that kind of buying mindset versus when they're actually browsing through things on Facebook just to kind of illustrate this if we have a look on the left hand side big red X obviously means people don't go on to Facebook to buy but then on the right hand side this would be a great example of a product to buy on Facebook now this product actually isn't random and my girlfriend my fiance actually bought this product for our dog and one of the points I'm going to touch on in this video is the connection your product or the relation your product has to your particular customer so we are indeed get married in august and we do indeed have a german shepherd so as you can imagine when she come across this particular product it's the sort of thing that she saw and just thought immediately she has to buy that because there's those two kind of key factors which kind of make that product super relative to her individually and this is something that I'll be touching on more in a minute so here's three tips then to make sure you pick a product that is indeed going to be profitable for you number one the most important thing hands down if you're starting out and you want to try and see results as soon as possible the product has to be in demand slash trend in they mean pretty much the same sort of thing so obviously here in the UK it's summer even though you wouldn't believe it if you looked outside so things like hot turbs garden furniture kids outdoor toys those sorts of kind of summary products water bottles water bowls those sorts of products which kind of spike in popularity and dependent weather dependent obviously those products that kind of spike in popularity and then drop in popularity really sharply typically are the easiest products to sell if you get in at the right time so there's loads of different ways to kind of find out if a product is in demand but the quickest easiest and cheapest is just to simply use google trends so here's a bad example and i'll show you a good example next i took this screenshot today it's for bike lights it doesn't get dark to like 10 o'clock at night so obviously there's not going to be many people looking for a particular bike light this is illustrated in the graph if you look at where this arrow is pointing it's pointing to where the current kind of search volume is at in the last 17 years so 2004 to present in the uk search term is bike light it's at 37 out of 100 which is obviously quite low which is also illustrated in this graph this is one of the reasons why i absolutely love google trends because it's just instant feedback to whether you're kind of selling a product at a good or bad time or not here's a good example then dog water um united kingdom 2004 to present july 21 i took this screenshot again today if i draw your attention to where the arrow is pointing we can see that the search term for dog water is the most popular it has ever been in the last 17 years so what this would illustrate is that any products kind of in and around this particular niche would be a great one to get into point number two is connection so i've briefly mentioned this with the german shepherd in the wedding suit and how the connection between that particular product and my fiancé was obviously so strong that when she saw that she just had to buy it but to kind of build on this and give you another example um which i'll be showing you in a second so the more your product and customer go together like this jigsaw puzzle here um i.e connection then the more likely they are to notice it and the more likely they are to buy it so let's take these three products as an example and let's say you run ads for all three of these products and they go out to a female who is 50 years old she's retired and has two pet yorkshire terriers if we have a look at these three products which one off the bat do you think is she most likely to notice and want to purchase we have the first product which is just kind of like a generic poor necklace i would give this connection level of kind of like four out of ten it can be handy to actually quite useful exercise to kind of rate the products in which you do your research on um and think of who your kind of ideal customer would be and give them a connection level so obviously it's just a generic poor necklace applies to pretty much anybody who has a dog and we have a different kind of necklace which is actually a yorkshire terrier in the shape of it illustrates that so obviously she's going to have a higher connection with this product in the middle versus the one on the left because it's of a specific breed that she actually owns and then the third product on the right which has a connection level 10 out of 10 actually has a picture of a yorkshire terrier and it's advertised around christmas time so if you were going to sell this in q4 then obviously there's three different points you've hit on which make this product more connected to this example customer and those things will be the dog the breed and the time of year point number three then is price this is something that's really simple and really easy to kind of manage but something i see a lot of people kind of falling short on or perhaps picking the wrong products that don't really match the following rules so too many people try and sell really cheap products need to have a bit more confidence and a bit more trust and pride in your businesses and trust that people will spend more than 30 pounds with you more than 40 more than 50 pounds with you as long as you've got a decent and professional trustworthy Shopify store to back it up so here are some rules to follow very simple so you must this is an absolute must leave a minimum this is a very bare minimum of 15 pounds room for your marketing costs so what does this mean as an example let's say your product costs you five pound delivered this means you must be able to sell it for 20 pound minimum now if you're not quite sure how much you could get away with selling a particular product perhaps try and find other Shopify store selling it or go on to amazon see what people are selling on there or ebay or ultimately try and use just a bit of common sense if it's a product in the niche that you have an interest in then hopefully you'll have a pretty good idea yourself of what you would be willing to pay for that particular products yourself so as a selling price 20 pounds is a minimum so you profit before the cost per acquisition so the cost for acquiring a customer therefore is in the ballpark of about 15 pounds this will this squiggly line means means approximately 15 pounds so obviously that gives you 15 pound to acquire the customer and then obviously anything else involving that so they're running off your site whether that's designers VAs fees and so on and so forth now to touch on that comment which I showed you at the beginning of the video from a particular viewer if you have to pay VAT so if you're that registered in the UK ie you've hit that 85,000 pound turnover threshold and you have to register for VAT then you pretty much have to go through the same process but reverse engineer the numbers to work out if a product is going to be suitable for you ie there's enough room in there to make a profit so as an example the product costs same product five pounds you're selling it for 20 pounds then you have to add in your VAT which is currently 20% so 20% of 20 pounds is four pounds that leaves a profit before your CPA of around 11 pounds so in this instance this product is too cheap and we cannot sell it successfully there's we have a really slim chance of selling this product profitably unless you can achieve consistently some really cheap purchases or you have a really good upsell offer which converts really highly so what I would do in this instance if you still wanted to sell this product the first thing you need to look at is the selling price can you get away with selling it for say 30 pounds ultimately we need to make an extra four pounds as a minimum that's a bare minimum remember obviously the more room you have to play with then the better so can we sell this for say 30 pounds to bring this up above 15 pounds to make it a viable product for testing failing that then you could go back to the supplier and try and get a cheaper price but if you're again selling a cheap product like this then the chances are there's not going to be enough room no matter how much they kind of take off the price of it so so as a general rule of thumb then what I recommend is selling products so that's retailing them having them on your site if somebody wants to buy them in the 30 pound to 100 pound range and there must be a minimum of 15 pound room for your CPA now obviously the closer you are to this 100 pound number then the profit before the CPA should be a lot higher and with that being said then guys thank you very much for watching the video I hope you've learned something new and something you can take away which will help you be more successful in your business any comments questions video suggestions post them down below and of course if you enjoyed the video don't forget to hit that like button and subscribe one final thing before you go if you are looking for a program which comes of tons of content I believe there's about 15 hours of content in the e-commerce academy and comes with a full support guidance of myself as well of lots and lots of other things make sure you check out the e-commerce academy there'll be a link in the description down below there is a callback service too so I mean you can jump on a call go through any hesitations and kind of put a plan together to get you moving forward along the right lines thanks again for watching and I'll see you in the next one