Direct-To-Consumer sales have been around since the advent of media. Now with the technology readily available to the masses, anybody can create a DTC sales channel. Today we are going to look at how to sell products and services with a QVC-like business model. Also, tune in to my companion podcast “Ask Jay Live” where I’m going to expound on a QVC-like business model and go behind the scenes to discuss a new Black shopping network my investment group and I are working on to launch in Q3 of 2022. You can also call in live on-air to ask me your entrepreneurial questions.
BLACK ENTREPRENEUR BLUEPRINT – SHOW NOTES EPISODE # 387
Direct-To-Consumer sales have been around since the advent of media. Now with the technology readily available to the masses, anybody can create a DTC sales channel. Today we are going to look at how to sell products and services with a QVC-like business model.
As Seen On TV – by Telebrands – Big hit was the amber vision glasses
Ronco, by Ron Popiel – founded in 1964 and sold for 55 million in 2015 (chop o Matic, veg o Matic, Mr microphone, showtime rotisserie, etc). Started by selling his father’s inventions.
QVC – 11.47 billion in sales in 2020 up from 10.98 billion in sales in 2019. 16.5 million customers LOVE & TRUST QVC, not necessarily the brand.
Touch of Modern – is a members-only e-commerce website and app focused on selling lifestyle products, fashion, and accessories to men. The company is based in San Francisco, California, and was launched in March 2012 and does over 200 million dollars in revenue per year.
BENEFITS OF THIS TYPE OF BUSINESS MODEL
- You’re creating a platform, not just selling a product but creating a brand (Brand the platform)
- You can test and sell many different products and you’re not vested heavily in just one
- You can sell your own products or others (multi vendor marketplace)
- You can do joint ventures
- You have diversification because your success isn’t predicated on just one or a few products
- You can scale as large as you want
- You can incorporate livestream shopping if you want to or keep it video only
- You can niche down to specific markets or play in multiple spaces (houseware, cooking, furnishing, clothing, etc.)
2 TYPES OF BUSINESS MODELS WITHIN THIS MODEL
- You create individual long-form sales pages with a video and order form (like my one page ATM program). Each product is sold on its’ own site and you can create as many of these sites as possible. This is simple and you can create a portfolio of individual products.
- You create and market your platform brand like Amazon, QVC, Touch Of Modern and sell different products under that brand (your products and others)
PRODUCT SUCCESS FORMULA – Good price point – demonstrable – and solve a problem
This is the formula you must have for DTC sales. The price point must be aligned with the problem it solves. The bigger the problem the higher the price.
KEY COMPONENTS NEEDED
- A brand name and concept
- A platform or platforms (website, video player, ecommerce capability, etc.)
- Traffic to your site(s) or platform
- Demonstrable videos
- Successful product
- Payment gateway like Stripe or PayPal
- Customer Service
IF YOU’RE INTERESTED IN BUILDING AN E-COMMERCE BUSINESS CHECK OUT THE # 1 E-COMMERCE PROGRAM ON THE MARKET “BRAND BUILDER ACADEMY ELITE. “