I'm starting a print on demand business with the goal of going from zero to seven figures in sales in 12 months and I'm doing this to be able to document the entire process step by step to show that it is possible once and for all and that it's not just about luck it's about following the steps of a proven process and just sticking with it we're already seven days into the challenge so in this video I'm gonna be sharing the results from those seven days breaking down the business model and sharing our plans to scale to seven figures and hopefully Beyond first off print on demand for anybody who's not familiar is a business model where we come up with our own designs for products and then partner with a white label supplier like printify printful or gelato and anytime that an order is placed they print pack and ship the product to our end customer perfect example of this is with t-shirts anytime a customer comes to our website buys a shirt printify prints it and ships it to the customer which is nice for a couple of reasons first off there's no upfront inventory or capital investment that we have to make as the seller and second it's also nice because there's a wide variety of products in their catalog that we're able to tap into and that allows us to scale our product catalog extremely quickly and then for our website we're going to be using Shopify which basically allows us to build our own storefront and it's separate from Etsy or Amazon or anything like that I'm going to get into those in later episodes but our main sales Channel and traffic source is going to be on Shopify and now our starting cost for this whole business are going to be about zero dollars when you consider the free trials so printify does have a Premium plan which costs 29. 99 a month and that gets you a 20 discount on all of their products and Shopify after the free trial it costs about 39 a month and the product that we're gonna be selling here is of course t-shirts it's by far the number one selling product when it comes to the print on demand space and the finances for that are pretty simple we're gonna be selling our shirts for about 26 pop plus about five dollars in shipping then our cost is just under eight dollars per shirt and about 475 for shipping so the shipping basically cancels out and that leaves us with just over 18 in profit per one shirt order now on to the good stuff the sales so in our Shopify dashboard you can see that this is a brand new store as of June 1st of this year it had zero dollars in sales and now fast forwarding to July 1st of this year was the first day that we started taking sales and as you can see here we did about four hundred dollars in sales from 10 orders and we did that with a conversion rate of 3. 7 percent and an average order value of about 35 so what this means is that for every 100 people that we send to our site about three maybe four of them were buying and on average they were spending 35 dollars per order so a useful number to know is our earnings per session and an easy way to calculate that is that for every 100 sessions we are sending to the site we were making 3.
73 purchases at a value of 35 dollars and nine cents so for those 100 sessions we were making about a hundred and thirty dollars which gives us an earnings per session of a dollar and thirty cents which tells us something pretty important that we were able to afford up to a dollar and thirty cents per session and break even but obviously we're not trying to break even we're trying to do much better than that because after we consider cost of goods and all these other expenses we'd be losing money so that's just our starting number and our goal is that this will go up over time by either increasing our average order value or our conversion rate but back to the sales on July 2nd we did 700 in sales as you can see our conversion rate went up and so did our average order value then July 3rd Mondays are typically lower sales days everybody's getting back in the swing of things we did another 319 dollars in sales you can see conversion rate was lower on July 4th the holiday 458 dollars and 47 cents off of 11 orders and on to Wednesday we only did five orders with 188 dollars and sales and Thursday July 6 we did 575 dollars at 12 orders and the last day for that seven day period we did 622 dollars in sales from 12 orders which brings us to a grand total for our first seven days of 3262. 35 off of 74 orders the conversion rate of three percent and an average order value of 39 dollars I'm gonna break down the financials in a lot more detail in later episodes so be sure to like and hit the Subscribe button to see those updates once I publish them the biggest expenses by far are cost of goods AKA our printified expenses and our Facebook ads which that's how we get all of our traffic so marketing and fulfillment by far the biggest expenses we typically try to spend anywhere from 20 to maybe 30 percent of Revenue on our ads which is roughly a three and a half to a five x return and about 40 to 45 percent on cost of goods which would give us a margin of anywhere from 20 to 30 percent but this case it was our first week we were just getting started so we spent about 35 percent on our marketing spend which was just over a thousand dollars and our fulfillment cost was about 45 adding those two expenses up gives us 80 percent of our revenue is gone right off the top and then we have other expenses to factor in for like transaction fees which is anywhere from three to four percent our overhead expenses for software and then any refunds or discounts we get at which this week was Zero but something good to keep in mind for in the future so that gave us a profit margin of about 15 take the sales multiply by 15 it gives us a profit for the first week of 489.
