Churn & Burn Vs Long Term Shopify Ecommerce Stores Video Lecture | Shopify tutorial: Build your Shopify Store (English) - E-Commerce

[Music]
alright hey guys welcome to this video
real quick before I get started if you
have not already go ahead and join our
free public facebook group and the link
to that will be in the video and in the
description as well so anyway getting
into the video this video is going to
cover the difference between a
turn-and-burn style store versus a
long-term branded type store and this is
a difference that not many people
understand or most people don't even
think about what type of store they they
have they're just moving forward with
one of them so before we get into it I'm
going to say that 99% of stores are
churned and burns so getting right into
it so what is a turn-and-burn store so a
turn-and-burn is a store that's built
with the short term in mind with the
primary goal being fast large amounts of
money generated as quickly as possible
and some common characteristics of a
turn-and-burn store is the primary
traffic source is typically if not
always going to be just facebook
advertising and then these ads are
usually run directly to product pages
with the main goal being to just
generate one up front sale so it would
just be an ad that's like check out this
product and then you send it to the page
and your goal is just to generate that
one sale so the typical strategy is run
ads and then upsell them as much as
possible on that one sale so you'll
upsell them a bunch of products on the
one purchase and then you send out your
bin the card emails and Yuri target
people and that's it and you just pretty
much rinse and repeat this whole
strategy and this as i said this product
sounds familiar because this is what
ninety-nine percent of people are doing
and also there is a minimal focus on
Brandon customer service attaining
product reviews and developing a brand
culture and getting fed
and what I mean by fans is just people
that become extremely loyal to your
brand and like associate happiness and
positive emotions with your brand so a
good example of this is starbucks you
can think of how many people have
positive associations with starbucks and
how many people are fans of starbucks
turn burns usually don't focus on
cultivating fans or brandon too much
they're just running ads to generate as
much money as they can up front and
there's also a minimal focus on email
marketing SEO and content marketing so
pretty much turn burns are just in and
out so you can do high revenue numbers
but typically they're going to putter
out after a few months so a lot of the
case studies on YouTube and a lot of
videos that you see where people have
high revenue numbers it isn't always the
case when most of the time it is going
to be a turn-and-burn style store so
those numbers may be like that for a few
months but they're probably not going to
be like that in a few years if the store
even exist in a few years so that's put
a turn-and-burn is so now let's go over
what a long-term store is so a long-term
store is a store built with the long
term in mind obviously the goal is a
longer term sustainable revenue source
that continuously grows and can
eventually be sold so some common
characteristics of the long term store
are a strong emphasis on branding and
this is the most important thing and
then I also put in here branding on your
products so most of the time if you're
trying to brand effectively at this
point you're going to be putting your
brand on your products but this is the
most important characteristic of the
long term store because you think about
all the biggest brands in the world you
think about all the big e commerce names
and just big businesses in general they
all have excellent brand and you
sometimes some Brandon is so strong that
you associate certain colors with that
bread like you may see red and then you
immediately associated coca-cola and now
due to extremely strong branding so
another thing most of the time that a
long term store you're going to be
ordering in bulk and then getting in
house and country fulfillment so like a
fulfillment center so you would be
ordering your products in bulk from
overseas most likely with your branding
on them and then you'd be sending them
to a local fulfillment center and the
reason you'd be doing this is that way
you can do custom packaging and also
have quicker shipping times easier to
build a solid brand of quicker shipping
times and another thing is one of the
main focuses is going to be on building
a list of leads that turn into lifelong
customers and fans as we talked about
earlier and what I mean by this is
you're not just focusing on making one
sale and then never talking or reaching
out to that customer again but you're
actually trying to cultivate a long-term
recurring customer so you're trying to
develop loyal fans that are following
your brand and actually associated with
it at a positive way and there is a
strong emphasis on other long-term
strategies such as email marketing SEO
and content marketing you're also going
to be creating a brand culture that
people want to be a part of so we go
back to the starbucks example when you
go into a starbucks there's usually just
a certain culture a certain vibe it's
inside of starbucks it's kind of like a
relaxed like people are just coming in
they're getting coffee there on the
computers they're on their phones
they're on the free Wi-Fi it's the
culture around the brand that is one of
the main reasons why they have such
large success so this is something that
a lot of long-term ecommerce stores are
going to be focusing on as well so what
is the verdict what should you be doing
looking this information so as I said
earlier 99% of stores are churned and
burns and the majority of people want to
do turn and burns and this is because
most people want quick money with the
least amount of effort possible and this
is actually a good thing for people to a
long term because it means there's less
legitimate competition because it's
relatively easy to crush competitors
that are using the turn and burn method
because since you'd be playing long term
you can spend more on Lee
its customers and you're going to
dominate a wider array of traffic
sources because you'll be doing more
than just facebook ads now don't get me
wrong I don't want to say that churn and
burns are bad because money is money and
profit is profit and the majority of the
time it's actually better off just throw
it off with the churn and burn it's that
way you get some initial money that way
you understand how e-commerce works so
that way you get the experience and then
you can apply all of the things that you
learned from your turn and burns to a
longer-term store but one thing to note
is that they do have a smaller long-term
upside because most likely they're just
going to put her out shut them down you
know so do another one and over time
this is actually going to end up being
more work because you have to figure out
all these niches to go into keep finding
new products and this actually ends up
being more work than just having one or
two just steady long-term style brands
because eventually those could be sold
in the future but as I said turn and
burns are usually the best way to start
for beginners just because you need to
get the experience you need to get used
to the process could use the house l in
online works and you can also use
profits from turn and burns to find a
longer term project so with that being
said that's it for this video once again
if you have not joined the facebook
group go ahead and click the link in the
video or the description to do that and
i'll see you in another video