Nathan Miller explains how his dropshipping business hits 400+ sales daily by using a subscription model instead of one-off purchases. High customer lifetime value over multiple months makes the math work even with modest acquisition costs. He stresses product quality, reliable fulfillment, and staying compliant with Shopify to avoid bans.
What's going on, bro? As you can see, this is today, bro. Today I made already over $6,000 with this method, with e-commerce, with dropshipping, right? Margins are ridiculous. You might be asking, that's kind of weird, Nate. But as you can see, I still spent, I still spent money on Facebook, right? The ROAS is like kind of like not that great. So how does that work? And then also, you know, I got Google and other stuff like that. So let me break it down exactly how I'm able to do this kind of margin at this kind of scale with that kind of ROAS. All right, liberal, so I'm going to introduce you to something called MRR. All right, and MRR stands for monthly recurring revenue. And so you see brands, right? You see brands like maybe Rise Superfoods, right? Look how many visitors these puppies are doing. Right, crazy amount of volume, probably do 8, 9 figures a month, literally insane. How do they do this? As you can see, they do MRR only. They literally only do MRR. And so obviously, if these big brands, these big brands are selling, you know, consumable products like this, like, you know, Everyday Dose, We look them up like this, you know, same thing. Refill ships in 30 days. Literally the exact same thing. It's because of MRR. And basically I want to break down to you guys this video, how I've used this, how I've looked at the biggest brands to be able to literally just print every single day regardless of how Meta is doing, and kind of break down for you why it's kind of the play moving forward and why everyone's doing it. So with monthly recurring revenue, right, they subscribe, right? And depending on the offer you're running, right, you're going to get like from a 50 to a, you know, 100% opt-in rate, which opt-in rate basically means is the rate at which somebody subscribes, or how many of— if you had 100 customers, how many of them would subscribe? So 95% opt-in rate would be 95 people out of that 100 enter subscription. And so what's so special when someone subscribes is that they don't just pay for the money up front. The next month as well, you get that money. They pay for an order, they get billed, you send out the product, they like the product. Most So with the subscription product, the customer gets it next month as well, and then sometimes they get the month after that depending on if they cancel or not. It's obviously really important to have a good product here because the better product, the better service you have, the, the longer a customer is going to stay with you. So that's why it's really important to focus on that. But also just to put into context, right, so let's say What's my CPA on Facebook? Let's assume that, you know, based off my Facebook CPA, which I spent $2,000, around $2,000 today, I got 70 purchases, that's a $30 CPA, okay? And then my selling price, let's assume it's like Rise, so it's $27 plus $5 shipping, which equals $32. And then let's go ahead and assume that my average customer stays for 2.3 months, which is like, you know, it's probably around average, maybe a little bit better than average. Depending on what kind of supplement you're selling or what you are selling. Let's assume that that's going to give us, right, they're going to spend or have an LTV of $76, which we spent $30 for, right? We only spent $30 once to acquire this customer, but because they come back month after month and we're getting more purchases, even though the upfront were a little bit, you know, maybe unprofitable, like we spent $30 to get a $32 sale, like that's unprofitable. The customer now, if you can see on the screen, you know, the $76 minus what we initially spent, which is $30, equals $46 minus like the average cost of goods. I kind of just averaged this out for like 2.3 orders, would be like $18. So now we're left at $28. $28 is our profit from that one order. And if they have LTV, so they, they over their lifetime, they spent $76 and we made $28 of that in profit. And if you do the math, 28 divided by 20 or 76 is this margin, 36%, right? So that is exactly how I'm able to do this so consistently. That is exactly how people like me are, you know, scaling to these crazy numbers and people are scaling way harder than this. This is not even that crazy. I'm building a school right now and I know it's gonna be a lot crazier than this because the current demographic I'm selling to is not the best. And so if you choose a really good demographic and then you also really make sure that you're taking care of the backend and everything like that, you can scale for a long time and scale very aggressively. But that's where a lot of people mess up is like they'll have this good business model, right? A lot of people know this, but what a lot of people mess up is they Either bend the lines, they go gray or like, you know, literally just black hat. Or they begin to, you know, actually get these orders and everything, but they don't have good customer service. They don't know, you know, they don't set up the chargeback disputes correctly. They don't spend a bunch of time and effort really making their backend as solid as possible because with this model, it's even more important. Shopify is very strict. They look at your store, they look at your Trustpilot, they look at, you know, obviously your chargebacks, but they look at a lot of stuff when evaluating risk. And so if you are doing something like this and you're not taking all that into account and you're cheaping out on your product and you're sending the, you know, unbranded stuff out and it's long shipping times from China, you're just gonna get banned. And so it's a great business model. This business model, it's a great business model. That's why brands like this literally do, like I said, over $5 million a month. That's why I'm doing the kind of profit I'm doing, as you can see on the screen. But the whole thing is, it's only good for those who understand the back end of e-com and actually understand how to fulfill, understand how to do customer service and how to have a good product. And so that's kind of where e-com is going. Like, there are— there was a time, I would say it was the Wild West of MRR this past year, where there are are these people who are scaling to crazy numbers off these terrible, terrible products and these terrible websites and terrible customer service and they're getting away with it, making a bunch of money. But they're cracking down on that and it's not that easy anymore. And so it's really important, it's more important than ever to have a super solid backend. And so that is ultimately the reason why I'm still around is because I've really, really worked and put a lot of time, a lot of effort, a lot of testing, different strategies to understand what actually works and what's going to save me disputes, what's going to keep me, you know, away from getting that, you know, red bar of death per se, or that ban on Shopify. And if you guys need help with this, if you guys have a store or you guys have— want to get into this business model, I am teaching this right now. I did open up a coaching program. You guys are welcome to look at that if you want. Link will be in the description. But otherwise, This is how you do it. This is how people are doing it nowadays. And you can still sell upfront. I have a friend who prints with an upfront product, but this is definitely where a lot of people are gradually moving towards. And obviously you guys can see the reasons why. So yeah, thank you guys for watching. Peace.
