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I didn't win the lottery or inherit a chunk of money, but yet I've been hanging around millionaires lately. What's even more impressive is that they are a lot younger than I am. In the process of writing the cover article "Fast Forward" for the May 2006 issue of Entrepreneur magazine, I interviewed ten eBay sellers age 30 or younger who grossed a million or more dollars on eBay in 2005. Some of what they told me could have been written by Horatio Alger. Other tips may surprise you. But if money talks, here's your chance to listen.
Let's begin by defining our terms. Only a few of the people I interviewed made a million dollars in profits in 2005. Some did, but the requirement was to find young sellers who made a million in gross revenue on eBay that year. Some, like the two women who run the drop-off store Express Drop, just squeaked in, with gross sales of $1.02 million. Since much of that goes back to their consignment clients, plus the fact that they just started renting 3,000 sq. ft. of warehouse space, you can be sure that their profits were far less.
On the other hand, if David Wirtenberg of Outrageous Diamonds grossed $4 million in 2004 and projects $8 to $10 million in gross sales on eBay in 2006, and if Chris Rush of HiFi Sound Connection says he grossed $5 million in 2005, odds are quite good that they made more than $1 million in profits.
Okay, PowerSellers who are at the Gold or Titanium level have achieved a high level of success. But that doesn't mean you should hate them. In fact, you should resist the natural urge to feel a) jealous, b) inadequate or "not worthy," or c) outrage that someone else has "all the luck." The people I interviewed are all nearly twenty years younger than I am or more, and it's true, they've made lots more money on eBay than I have. But I found them to be just regular folks who are not really so different than you or me. Most of them started out with little or nothing and made the best of the same opportunities we all have on eBay.
What is it, exactly, that sets these young millionaires apart from the rest of us? Here are some of the things I learned:
Choose your relatives wisely.
Okay, that's actually impractical, but look to see if money really is growing on your family tree. Many of the people I talked to had relatives who were themselves entrepreneurs or had some experience in business. They called on those relatives for a helping hand when they were starting out. Eran Dekel had a brother who owns a successful online company, SpaLook.com, that sells skin care products. David Wirtenberg got some pointers from his father-in-law, who was in sales and marketing. Chris Rush received a $10,000 loan from his grandfather to purchase his initial inventory.
Mentoring isn't just for college internships.
Even if you aren't lucky enough to be related to someone who can help you in your business, you can find someone else to advise you. Dan Glasure of Dan's Train Depot started out in the cleaning business. His father helped get him started selling trains and other collectibles on eBay. After his father passed away, Dan called on two of his best customers for help - one a billionaire, the other a business professor - who helped him draw up some formal business plans.
Don't imitate the Lone Ranger.
The big thing that separates the eBay millionaires from the rest of us is volume. They deal in hundreds of sales a week, thousands per month. Marat Denenberg of Narro Corp. says he sells as many as 80 pieces of computer equipment each day. They hire employees; they rent or purchase warehouses. Many of them also do something that's within the reach of most of us: they sign up with one of the auction service providers that helps them sell. Mordy Eisenberg of GSM Cellular works with ChannelAdvisor. Eran Dekel deals in such high volume that he was able to set up a discounted shipping arrangement with UPS. Other sellers I've interviewed work with providers like Zoovy, Infopia, and Marketworks to build volume.
Be open to selling on consignment.
Three persons I interviewed specialize in selling items on eBay for others. The success story of Adam Hersh, 27, wasn't included in the printed article, but he is one of eBay's most successful trading assistants. Tiffany Tanaka, Ellen Navarro, and Amy Mayer run eBay drop-off stores. If you're just starting out and don't have a lot of your own inventory to sell or can't find a wholesale distributor, selling for other people can help you build up positive feedback and become a PowerSeller quickly.
Many of the sellers I profiled agreed that eBay is a great place to start your first business, no matter what your age and level of experience. So don't waste a moment feeling that you've somehow "missed the boat" if you're on the north side of age 30 and your income isn't anywhere near a million. Think positive and learn from the success of these young entrepreneurs. You'll be sure to make yourself a more effective seller.
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