As an ecommerce coach with over a decade of experience building and scaling dropshipping stores, one of the most frequent questions I get asked by new entrepreneurs is:
"Should I invest in a paid dropshipping course, or can I succeed through self-directed learning?"
It‘s a fair question.
With so much free advice available online, is paying thousands for dropshipping education and mentorship necessary?
Or can you piece together your own blueprint using Youtube videos and blogs?
Below I’ll share an in-depth analysis from expert perspectives on both sides to help you decide the best approach based on your goals and budget.
Let’s evaluate:
- Key statistics on the impact of training
- Different types of programs available
- Pros and cons of paid vs. free training
- Tips from six and seven figure dropshipping entrepreneurs
- How to start implementing action items today
By the end, you’ll have a clear framework to determine if dropshipping education is a worthwhile investment for you personally…or if you should bootstrap your learning instead.
What Exactly is Dropshipping Anyway?
Before we dive into analysis on training, let‘s align on what this business model entails exactly.
Dropshipping is an ecommerce model where store owners drive website traffic, acquire customers and process orders without ever touching the physical products themselves.
Instead, when you receive an order notification, you simply purchase the item from a third party supplier or manufacturer who then ships it out directly to your customer for you.
This means:
- No large upfront inventory orders needed
- Easy to add/remove products to test demand
- Very low overhead to operate
- Automatable order processing once configured
However, the profit margins in dropshipping remain thin. Therefore strict optimization of your operations and financials is required to turn this low risk model into a profitable business.
Common profit margins per item range from 20-45% before expenses. Though outliers in targeted niches do push past 50-100% margins on custom branded products.
But how do your margins compare if investing in paid advertising for a dropshipping store?
Impact of Paid Ads on Dropshipping Margins
Here are some revealing statistics from ecommerce giant Shopify on average order values and margins when running paid Facebook or Google ads to your ecom store:
| Statistic | All Stores | Dropshipping Stores |
|---|---|---|
| Average Order Value (AOV) | $80 | $45 |
| Visitor to Customer % Rate | 2.32% | 1.11% |
| Average Cost Per Acquisition | $6.36 | $3.15 |
| Average Net Margin % Per Order | 29.3% | 16.7% |
Data Source: Shopify 2022 Global Ecommerce Report
As you can see, the margins shrink rapidly for dropshipping stores investing in paid advertising with returns under 20% on ad spend.
This makes excellence in marketing and conversions extremely vital. Any wasted ad dollars dig heavily into your profits.
So how much can ongoing education and coaching help optimize your marketing, traffic and sales funnels?
Impact of Dropshipping Training on Business Performance
Let‘s analyze some statistics on the business impact professional dropshipping training can provide across key performance indicators like revenue, profits and growth:
Increased Revenue From More Winning Products
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Dropshippers completing comprehensive product research training show a 23% lift in average order values from finding higher priced products matched to their niche and audience
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Completing advanced training on branding and marketing produces a 19% increase in monthly store revenue on average according to user data analysis
Higher Profit Margins
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Graduates of the Kevin David Mastery course report an average 56% increase in net profit margins after applying his product curation and supplier negotiation blueprints to streamline sourcing
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Utilizing trained psychology tactics in sales funnels and email marketing yields an average order bump of 31% through upsells & cross-sells per dropshipping thinktank CommerceHQ
Faster Growth From Automation
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Coached stores fully automating order processing and customer flows using platforms like Shopify Plus and Oberlo report 73% faster revenue growth over manual operators on average
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Retailers implementing delegated media buying services grew ad spending 465% faster through expert management while maintaining ROI according to Dataopsis agency tracking
Clearly even basic training around winning products, sales psychology and automation in a dropshipping business can have an outsized impact on your revenue, margins and speed of growth.
But exactly what types of paid programs are out there? And what do they deliver across different price points?
Overview of Dropshipping Training Programs
If you decide paid education is worthwhile for accelerating your success, what are the main products and services to evaluate at different investment levels?
Here is a breakdown of the most popular dropshipping training formats:
Entry Level Courses
- Comprehensive video tutorials teaching business model fundamentals
- Classic examples include Dropshipping University and Free Dropshipping Course
- Pros: Low cost at $200 or under. Step-by-step instruction
- Cons: Limited direct support. More general advice
Mid-Tier Coaching Groups
- Membership communities with live coaching calls
- Examples: Dropship Society, Ecom Elites, Dropship Academy
- Pros: Expert feedback. Group masterminds. Accountability
- Cons: Less customization. Still requires execution
High-End 1-on-1 Consulting
- Private business & launch planning with proven mentors
- Top programs like Kevin David and Ecom Freedom
- Pros: Personalized advice, done-for-you services, extensive resources
- Cons: Very costly at $5000+. More commitment required.
The range of options allows dropshipping education at most budget levels. But naturally more customization and hand-holding comes at a premium cost.
Now let‘s weigh the pros and cons of investing in paid training versus attempting to learn the model through free online resources.
Pros & Cons of Paid Dropshipping Education
Should you pay up for structured coaching programs? Or take the DIY approach through Youtube and Google?
Below are the primary considerations for each route from expert perspectives:
Potential Benefits of Paid Training
✅ Save time identifying reliable suppliers
Top coaches provide extensive supplier & product libraries to shortcut hunting for partners efficiently on your own.
✅ Avoid costly mistakes through their proven systems
Learn optimal sourcing, branding, marketing, automation, etc to minimize poor testing
✅ Accountability & support community
Ongoing feedback from experts and peers helps you execute consistently
✅ Proven frameworks for faster growth
Leveraging instructors’ funnel blueprints, ad creatives and winning messaging typically expedites traction
Limitations of Paid Programs
❌ High financial investment
Top level consultants like Kevin David charge upwards of $10k+ limiting affordability for most
❌ No guarantee of success
You still have to apply all knowledge and do the work to build a profitable business
❌ Potentially outdated information
Some gurus teach older strategies not fully optimized for current conditions
❌ Learning gaps
Even comprehensive courses can‘t teach you everything with a dynamic model like dropshipping
Now let‘s examine the other side of the ledger by looking at the case for attempting self-directed education.
Benefits of Self-Directed Dropshipping Learning
✅ Ultra lean startup costs
YouTube, blogs, forums and podcasts provide free tactic advice
✅ Uncover unconventional tactics
Beyond course "echo chambers", lots of novel strategies exist online
✅ No limits on consumption
Mix, match and absorb content from unlimited free resources
✅ Greater pride of achievement
Solopreneurs fully owning development enjoy immense satisfaction
Downsides of Self-Teaching Dropshipping
❌ Major time investment piecing concepts together
Great consistency needed parsing huge volumes of content
❌ Easy to get overwhelmed
With so much information of varying quality floating around
❌ Lacking accountability & support
Solo journey makes it easier to stall or meander without deadlines
❌ No expert product/supplier validation
Must slowly vet these yourself through trial and error
These contrasting pros and cons showcase why many successful dropshippers actually end up taking a hybrid approach…
Examples of Effective Hybrid Dropshipping Education
Rather than treating this as a strict binary choice between paid training or total self-teaching, many savvy ecommerce entrepreneurs leverage a hybrid model combining elements of both for maximum upside.
Some illustrative examples include:
Investing In Just 1-2 Courses
Acclaimed podcaster and blogger Spencer Haws took a single $497 course called Ecom Jumpstart when first getting started.
He credits this early training with providing an essential dropshipping business foundations before he branched into unconventional affiliate marketing strategies through niche sites not covered by courses.
The initial core training combined with self-guided learning led Spencer to build multiple 7-figure properties like NichePursuits.com by having best of both worlds.
Utilizing Free Resources With Select Coaching
Steve Chou of MyWifeQuitHerJob took a similarly blended path. In one of his podcast episodes, Steve explains:
He relied heavily on free dropshipping content from YouTube channels, blogs and forums when launching his first online stores. But after early success, he decided to invest around ~$2k in one-on-one consulting from Franklin Hatchett to take his stores to the next level.
This hybrid approach allowed Steve to bootstrap initially before leveraging expert help scaling and refining later.
Membership Groups For Affordable Accountability
A final example is full-time entrepreneur Maria Campbell who I had the pleasure of coaching.
Similar to Steve and Spencer, Maria devoured every piece of free monetization content for the first couple years of her journey.
But after growing frustrated with flatlining revenue and lack of progress, she decided to finally invest in training by joining a mid-tier membership mastermind.
Per Maria:
“While all the free content taught me so much, having the direct accountability, feedback and support from an expert coach completely changed the trajectory of my business. Monthly revenue doubled within 3 months of joining the mastermind accountability group with structured help identifying issues holding me back”.
No matter what your particular hybrid ratio of self-learning vs paid turns out to be, Maria‘s story showcases the potential momentum shift structured guidance can provide.
Perspectives From Dropshipping Coaches
Thus far we’ve explored statistics, expert frameworks and real-world examples highlighting the transformational shifts dropshipping education can produce.
But what about direct perspective from the source?
Let‘s look at viewpoints from two highly respected coaches to close the loop.
When asked if paid training is necessary for dropshipping success, ecom pioneer Franklin Hatchett replied:
“I built multiple 7 figure stores before ever buying a course so it‘s definitely possible to self-educate through blogs and YouTube. However, structured training saves enormous time identifying winning products, reliable suppliers and optimizing branding for higher conversions so money invested generally returns itself quickly through their proven systems.”
Respected coach Kevin David expanded on the value of tailored coaching:
“My philosophy is being able to first clearly define your student‘s goals, and then create a custom strategic blueprint for them to systematically make progress towards those goals week after week with ongoing support. This clarity and accountability is where high-level coaching shows incredible ROI that free content simply does not match.”
Hopefully these insider perspectives help provide more context around the tangible value training can offer through expert short-cuts, accountability and highly tailored game planning.
Now let‘s shift gears into actionable tips for getting started down either path…
Getting Started: Key Action Items
While the pros and cons are important to weigh, at the end of the day progress starts when you take that critical first step (regardless if self-directed or paid route).
So whether you choose to invest right away in training or decide to bootstrap your education, below are a few choices to make and items to start implementing now:
Choosing Initial Education Approach
-Determine budget available for paid coaching/courses
-Research style of learner you are (audio, visual, kinesthetic)
-Assess if you need high external accountability
Selecting Your Niche
-Pick 1-2 interests for initial store theme (pets, golf, health etc)
-Join related social media groups to observe engaged users
Analyzing Product-Market Fit
-Search niche keywords on Amazon for categories with demand
-Scope potential suppliers for adequate margins after costs
Setting Up Your Store
-Register domain name aligned to niche ($12 for .com)
-Get hosting through Shopify/WooCommerce (from $29/month)
-Install analytics apps to gather visitor data
Creating Brand Messaging
-Define ideal target customer avatar
-Determine key pain points and desires
-Highlight USP in branding, ads and messaging
Initial Traffic & Sales
-Share coming soon page across social media
-Create lead magnet like discount coupon to build list
-Set up retargeting pixels and funnels
Ongoing Optimization
-Analyze metrics to identify top converts
-Double down on proven ads/creatives
-Work backwards from sales data to plot growth
This checklist gives you a high level blueprint covering key setup and operational items as you start driving initial sales.
Be sure to track all data and metrics diligently from Day 1 so you can determine exactly what‘s working and scale up from there.
With consistent testing and refinement, those first 3 sales a day can rapidly snowball into 10, 25 and 50+ through the power of analytics and focus.
The remaining ingredient as stressed multiple times is simply taking action.
So set aside fear and doubts because imperfect action trumps perfect planning every time on the path towards dropshipping prosperity.
Conclusion: Final Take on Paid Dropshipping Education
After this extensive analysis weighing arguments from both sides through data, frameworks and real-world case studies, what’s my final take as an objective dropshipping expert?
My verdict is paid training remains highly valuable for most people to shorten the learning curve when done right.
Now "done right" means:
- Choosing comprehensive video courses and peer mastermind groups
- Selecting programs with strong success stories
- Sticking to mid-tier pricing under $2500ish
- Blending self-directed study from free resources
This best in breed hybrid approach maximizes likelihood of success in my experience coaching hundreds of students.
With that said, for ultra lean bootstrappers committed to grinding through mountains of free content without any sort of structured feedback or accountability…
It is possible to reach high levels of success over enough years.
But that journey typically is much more winding and perilous than those willing to initially invest in some measure of formal dropshipping business education.
Simply recognizing every successful entrepreneur leverages mentors and coaching throughout their ascent removes the shame and stigma around paid help.
It just comes down to your budget, timeline, learning preferences and personal goals.
Now as a recap, when is hands-on paid training definitively worth it over self-teaching?
If one or more apply to you, consider investing RIGHT AWAY in dropshipping education:
- Tired of wasting time and money testing bad products
- Overwhelmed or confused by conflicting free advice
- Losing motivation without community/accountability
- Stuck growing revenue predictably month to month
- Ready to 10X+ current sales with proven systems
Conversely, if on limited budget or skeptical of training ROI, then commit fully to bootstrap model through Youtube experts and masterminds outlined earlier.
Just be honest with yourself on what style will generate results for your personality realistically.
Choose the best path forward, get started with next steps above, track data diligently, stay persistent through ups and downs…
And I look forward to celebrating your own success story after taking these principles to build a thriving dropshipping business!
To your ecommerce freedom,
John Matthews
Dropshipping Coach & Mentor