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| Hello to everyone in the Million Dollar Community and our new Broker Community! As always, I hope this message finds you all doing well and business is booming! |
| | Let me start by congratulating Spence and Keith, two of our Active Brokers who had their first Work Orders this weekend. Most of us remember our first customer and this weekend is one important milestone in their respective broker businesses! |
| | Since the end of last month, we have received a ton of emails asking my opinion of Amazon's new "Delivery Service Partners" program where you can earn up to $300,000 profit if you own a fleet of 40 vehicles. Ironically enough, at the beginning on my Atlanta seminar I read a CNBC article discussing this very topic and expressed my opinion to put things in perspective. Click the link below to read that article and learn more about this Amazon "opportunity:" |
| | | Now, only because two new client-providers I am currently working one-on-one with have were seriously considering this "opportunity," I am going to disclose exclusive information I shared in great detail at my Atlanta seminar so all of you can better understand crystal clear before you jump off and attempt to invest in this "opportunity." |
| In reading the CNBC article, you will discover that in order to earn $300,000 profit with Amazon's courier program (1) you need to OWN at least 40 vehicles, (2) your vehicles must have Amazon's brand on the outside, (3) your drivers must be employees wearing Amazon uniforms, (4) you cannot provide service to any competing services, (5) you must invest at least $10,000 to enroll in their program, and (6) you must comply with a host of other requirement and inquiries along with paying for fuel, maintenance, insurance, employee FICA, taxes, etc. |
| | Now, in addition to taking on all of the liability related issues associated with owning 40 vehicle and managing 40 employees, when you do the math, IF...IF...IF you get to $300,000 profit you're ONLY making $7,500 per-unit profit! In my opinion, that is ridiculously low - especially for an opportunity that, essentially, "owns you." You can't diversify or provide service to other vendors or clients - only Amazon. And again, you take on ALL the liability. |
| | Allow me to compare this to the YouAreTheBroker.com opportunity based on my 2018 statistics. |
| | In doubling my Q1 and Q2 earnings, our projected revenue will be $2,944,474 with, as of right now, 28.5% margin. With all honestly, my goal this year was to hit $3,000,000 in sales, but as of right now we are running a little shy of that goal due to some variables too difficult to explain in a newsletter. |
| My top 5 contractors will average earning $163,528 each and comprise 28% of my revenue. This means my top earning contractors will generate an average per-unit profit of $49,000 and my newer/lower earning contractors will yield an average per-unit profit of $12,000. So, my per-unit profit for all my contracts will range anywhere from $12,000 - $49,000. And the best part, I am building my own brand, I don't pay for fuel, insurance, maintenance, and NO ONE "owns" me!
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| | How is all this possible? Because our price points are much higher. We don't "play" with nickel and dime $5, $10, $15 deliveries. For example, our average delivery in 2018 after Q1 and Q2 is $105.71 (up from $101.36 in 2017) and comprises 41% of my revenue. Our Express Moves service is averaging $426.35 (up from $398.74) and is averaging 22% of my revenue. |
| | Now don't get me wrong. I LOVE Amazon. My wife literally orders from Amazon everyday and I make a ton of money on their stock. I LOVE their stock! But, in regards to this particular "opportunity," I vote an absolute "NO!" It's not an good investment for me or any of you looking to build your own brand without the confines of additional rules, regulations, and increasing overhead expenses. |
| | For those of you searching and considering, I hope this puts things into perspective for you. |
| See you at the Top!
Joel E. Davis
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