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Friday, September 26, 2008

BUTTERFLY BUSINESS

Here is an online business that works with a very unique niche. He sells butterflies. Here is the ad I first found for his business:

BUTTERFLY BUSINESS FOR SALE - $1
Hello I am selling my online customer activities fast. Look at the pictures decide if your willing to have an income for life. I can stay on til you are bringing in the revenue you want. You will learn all the trade secrets. Where to acquire free inventory. How you can connect to others in the field. No accounting needed as All records are on lined and automatically compiles itself for year end review. Made a grave error in my investment portfolio so I have to sell. email me for the online. If $100.00 per/day appeals to you. Looking to do this by Monday Morning the deadline I am facing.

I emailed the owner wanting to know more he sent me this :

Paste the above link (he sent me the link but I don't feel right disclosing that info on the web) to view the ebay store. Will be listing new material so you can see activity.
please have specific questions..ready by Saturday eve as i will submit a due diligence proposal so you can make clear decision on the process of reviewing the books. Paypal and ebay maintain all the financials. Much of the business has very proprietary details such as my competitors list in weekly lots not daily or during holidays
so there's a lot of untapped demand.
Also there is no debt or high end odd expenses. Postal delivery is the only regular ongoing costs. Packaging materials and even a substantial amount of inventory costs you next to nothing.
This is the right time as the holidays are fast approaching so coming aboard now will help you better understand upper end profit potential.

So really he did answer one of my main questions regarding the site and how he sells which is through ebay. Ebay is not my favorite to use because they charge to post an item and they charge a percentage when the auction closes and they charge for everything in between. Anyways, he did not send me an asking price. I email him back asking for it and have not received a response yet. I started messing around his site and his ebay profile. I found his past transactions for the past 90 days. According to that he is NOT making $100 a day. In fact for the month of September he has only done $500-$600. Many of the deals he does are under $5.

To me this business is more hassle than it's worth. All that customer service and shipping takes a huge toll and lots of time. It is the worst part of most businesses. And sadly he has to do a LOT of it to make much money due to the low prices. Granted some prices I saw in the $30's and around there and even one in the $70's.

But at the same time if you could get someone to do the shipping for you, or if you want to do it yourself it is profitable. Especially if you can get the free inventory that he claims to receive. If you are lucky enough to find someone to pay (either a commission percentage per shipment or flat fee) to ship each unit then you can work just from your computer anywhere in the world and be making money. Probably not enough to live off of, but enough for a little extra spending cash! Not bad if you really don't have to do too much by paying someone else to work for you.

Nevertheless I'm still not very interested unless he is asking under $500. Then I would look into a little more, try to increase profits for a period of time then turn around and sell it to someone else.

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