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HOUSE_OVERSIGHT_013913

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1. Market Selection He chose music and television producers as his market because he is a musician himself and has used these products. 2. Product Brainstorm He chose the most popular products available for resale from the largest manufacturers of sound libraries and arranged a wholesale purchase and drop-ship agreement with them. Many of these libraries cost well above $300 (up to $7,500), and this is precisely why he needs to answer more customer-service questions than someone with a lower-priced product of $50—200. 3. Micro-Testing He auctioned the products on eBay to test demand (and the highest possible pricing) before purchasing inventory. He ordered product only when people placed orders from him, and product shipped immediately from the manufacturers’ warehouses. Based on this demand confirmed on eBay, Doug created a Yahoo Store with these products and began testing Google Adwords and other PPC search engines. 4. Rollout and Automation Following this testing, and upon generating sufficient cash flow, Doug began experimenting with print advertising in trade magazines. Simultaneously, he streamlined and outsourced operations to reduce his time requirements from two hours per day to two hours per week. =» COMFORT CHALLENGE Rejecting First Offers and Walking Away (3 Days) Before performing this exercise, if possible, read the bonus chapter “How to Get $700,000 of Advertising for $10,000” on our companion site, and then set aside two hours on a consecutive Saturday, Sunday, and Monday. On Saturday and Sunday, go to a farmers’ market or other outdoor event where goods are sold. If this isn’t possible, go to small independent retailers (not chains or mass retail). Set a budget of $100 for your negotiating tuition and look for items to purchase that total at least $150. Your job is to get the sellers down to a total of $100 or less for the lot. It is better to practice on many cheap items rather than a few big items. Be sure to reply to their first offer with, “W

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