Understanding The Float

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(Why Credit Is The Best Way To Build Passive Income Online)

One of the biggest questions we come across before our customers get started with this business is, what other investments will I have to make other than the initial sign up free to run the business? 

Other than ensuring that your business line can effectively cover the product order “float” then that’s it. 

Let’s do a quick review of this concept incase you haven’t had the chance to review our presentations or other articles. 

After getting started with your automated dropshipping business, when sales are generated through your store, it is up to you the owner to fund the order during the fulfilment period. 

For Amazon this period is two weeks, for Ebay payback is daily. 

Bridging the float is just as simple as having a business line of credit to fund these orders while the shipping is handled. 

For Amazon we recommend having a business line of credit of $5,000 for the first 3 months.

For Ebay we recommend $2,000 for the same period of time. 

When your store first gets going on Amazon for example (say we generate $5,000 in sales revenue for a 2 week period.) You will need this money liquid on a credit card to profit $500 for those two weeks. 

This $5,000 will never be withdrawn from your account, you will never actually have to come out of pocket. 

The advantage of this model is that the product orders helps improve your credit score and limits which means more passive income for you and your business. 

Interested in learning more about how we use the law of reciprocity to build passive incomes for our clients? Then check out our presentation:

How To Set Up A 6 Figure Automated Business In 12 Minutes or Less”.

Or  you can apply now for a free consultation. 

Take a look around at our site, drop a comment and let us know what you think! 

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