Doncha love romantic fantasies about folks who get to do what they love and makes tons of money at it? Me too . . . .yum some nights I curl up clutching that image to my chest like an HMS Titanic deck chair.
This blog post has been making the round of the internet and has been buzzing around my head like no-see-em black fly and I need to address it before I chew off my arm. “Stay at home mom makes 120K selling books online“ There is no part of that title that isn’t appealing. We all want to stay at home and make a 6 figure income, all while wearing the sweat shirt with Merlot stains down the front, but what is behind that headline?
First Myth: Stay-At-Home-Mom, from this we can glean that there is a Go-To-Work-Dad which means rent, utilities, insurance, food, car, etcetera are in no danger of being lost. Therefore any income Stay-At-Home-Mom generates is for non-essentials: going out to dinner and big shiny xmas prezzies and the like.
Second Myth: 120K selling books online, okay I couldn’t break them into 2 myths, it’s ONE myth with a big ass. Truth of the matter is that if you want to make 120 thousand dollars PROFIT selling books online or in real life, you need to start with 240 thousand dollars -it’s just the way books are.
The article claims that Stay-At-Home-Mom buys her books WHOLESALE and sells them ONLINE. Newsflash books already sell for a whole sale price online – even less then wholesale. Your average wholesaler is already selling them online as well, so you are already in competition with everyone ELSE. So, if you are very very lucky you can sell them for twice what you paid for them, usually less. And since wholesale prices are dirt_cheap, you are bringing in dirt_cheap X 2.
let’s look at the 120K Stay-At-Home-Mom takes IN during the year,
out of dirt_cheap you need to further subtract:
COST OF GOODS SOLD ( dirt_cheap2 minus dirt_cheap)
LABOR (Stay-At-Home-Mom’s and anyone else)
RENT (on the space the business takes up)
EQUIPMENT involved (bigger pc, dsl line, use of vehicle)
SHIPPING (costs and supplies)
BANKING FEES (credit card transaction fees, ebay fees, amazon fees)
INVENTORY EXPANSION (you want to sell MORE items don’t you?)
So class what portion of dirt_cheap is left over?
use both sides of the screen and show the work, got your answer?
it’s probably just enough to go out to dinner on.
There, I don’t feel any better and I am sure once Stay-At-Home-Mom reads this, it will be “oh no 120K is NET” . . . which is a crock of shit. I know hundreds of booksellers, real ones, smart ones, ones that have to make money to LIVE on and pay their overheads every month, not just ones that do it as part of a joint income with their significant or insignificant others. And if it were possible to sell books purchased wholesale and KEEP 120K every year, they’d all be living like frigging Jeff Bezos. Selling books as part of a JOINT income with someone else is the smart way to go, you can weather the market fickleties, cover your nut and sell some books, but let’s not pretend it’s anything paved in gold.
Here endeth the rant.