How To Actually Make Money Dropshipping

Today, I’m going to break down how the real money is made.

Not the Instagram fantasy version, but the actual business model that quietly creates millionaires.

Buckle up, because everything you think you know about dropshipping is probably wrong.

So, okay, story time. I have a buddy, let’s call him Mike, who got into dropshipping about two years ago.

Smart guy, but he fell for the same trap everyone does.

He started selling fidget spinners for $19.99.

He bought them for three bucks on Alibaba.

He thought he was killing it with those margins.

He spent three months optimizing Facebook ads, testing creatives—the whole nine yards.

You know what happened?

He made like 30K in revenue and netted maybe 2K after ads, returns, and chargebacks.

He worked 60 hours a week for three months to make less than minimum wage.

Meanwhile, there’s this other guy I know who sells high-end 3D printers.

His average order value is $3,200.

His margin? 30%.

He makes more money on one or two sales than Mike made in his entire fidget spinner career.

And here’s the kicker: it’s not actually harder to sell a $3,200 3D printer than a $20 fidget spinner. In fact, it’s easier.

Why?

Because people buying expensive stuff are solution-focused, not price-focused.

Think about it…

If you’re a maker who needs a reliable 3D printer for your projects, you’re not shopping around for the cheapest option.

You want quality, reliability, support—you’ll pay for it.

The phone case buyer?

They’re scrolling Instagram at 2:00 AM, buying on an impulse.

The 3D printer buyer? They’ve been researching for weeks, reading reviews, comparing specs.

They know exactly what they want. Which customer would you rather have?

And here’s where most people completely miss the boat: They’re looking for winning products when they should be looking for winning brands. Let me explain the difference.

When someone buys a $20 phone case, they don’t care who made it.

Generic is fine.

They’re buying based on price and maybe color or design.

But when someone’s dropping $3,000 on a high-ticket item, they’re not looking for some random product from Alibaba.

They’re looking for brands they recognize and trust.

So think about it: if you’re buying a $2,000 espresso machine, are you going with the Coffee Master Pro that you’ve never heard of?

Or are you buying the Breville, which you’ve seen in Williams-Sonoma and read about in coffee forums?

Here’s what’s genius about our approach here at Dropship Breakthru.

When people search for these brands, there’s way less competition. Everyone’s fighting over generic keywords like “phone case” or “fitness equipment.”

But if someone searches for “Breville Oracle,” they know exactly what they want, and there’s only a handful of sellers online.

We’re not trying to create demand for unknown products…

We’re fulfilling existing demand for established brands that people are already searching for.

The customer isn’t thinking, “I wonder if this is a knockoff and if it works as well as the real thing.”

They’re thinking, “Where can I get the best price and service on the specific brand I already want?”

It’s a completely different game—and it’s a much easier game to win, in my opinion.

Plus, and this is huge, when you work with local suppliers, you can actually visit them.

You can see how stuff is made, build real relationships, and get better terms.

Try doing that with a factory you found on Alibaba.

Okay, this is where I’m going to get a little tough love with you guys.

Most people aren’t building dropshipping businesses…

They’re running dropshipping campaigns—and there’s a massive difference.

A campaign is: “Let me test this product for a few weeks and see if I can make some quick cash.” 

A business is: “Let me build something that creates value for customers and can run without me.”

We have a couple of students who started dropshipping overlanding gear, things like rooftop tents.

But instead of jumping from hot product to hot product, they doubled down.

They created content about camping and overlanding.

They partnered with overlanding influencers.

They created buying guides.

They became the guys for overlanding gear.

Then they took the feedback from all of their customers and launched their own brand to their loyal following.

Their business did $2 million in sales last year, and they barely touched day-to-day operations.

Their team handled everything because they built systems and processes instead of just running ads.

Meanwhile, my buddy who started at the same time is still testing new products every month, making the same 3K he was making two years ago.

The difference?

Our students built a business.

My buddy is still running campaigns and looking for that next “hot product”.

If you’re going to start a dropshipping business, don’t shoot your foot from the get go by having the wrong approach. 

Ready to get started building a dropshipping business that has real, long term value and also creates real value for customers?

Join Dropship Breakthru here and we’ll help you do it.