So you want to start a company that gives away a super car? What's going on guys, it's Ricky here with Tbut Solutions I Really hope that you guys learned something new and if you do, please consider dropping a thumbs up and subscribing if you feel like we're I don't normally upload videos like this, but we get asked all the time of what it takes to start a superar giveaway company. Uh, We've uh, given away one superar uh Nissan GTR or at least it was Nissan GTR or $50,000 They ended up choosing the money. Um, but now we're running our second one and that's a BMW M4 uh tuned and everything right? or $50,000 cash I thought I'd Break it down for you right? I'm not one of the huge or big companies that are giving away uh, supercars in like 20 or 30 days. Uh, but I just wanted to share some things that I learn throughout the process of giving away a car just in case you wanted to start this.

uh, you kind of know what you're getting yourself into, right? So I wrote six things down again I Really hope that you learned something new. So one of the first things that I want to talk about is right off the bat. Something that I was not aware of is you see a lot of different influencers or normally influencers because if it's a company, they know that they have to get licensed and bonded. Uh, a lot of influencers when they start some form of giveaway.

Uh, if the product or prize itself is over $3500 it's actually illegal if you do not get licensed and bonded right? And it's if anything, more fair when you're entering a giveaway to ensure that it is licensed and bonded to make sure that it's fair. Kind of just like uh I would say chances for everyone that is entering. So if you get licensed and bonded, you have to get licens and bonded in every single state. and normally a Sweep Sticks Company will take care of this.

Um, let me go ahead and just share this very very quickly. So again, you can Google search Thirdparty Sweep Sticks Company. Um, we're licensed and bonded for the giveaways that we do at Shoptech. buts.

comom. you could go all the way to the bottom and it should be able to talk about. um, you know, who is doing the license and bonding? Uh, and all that good stuff, right? So you can click on the giveaway giveaway rules. All that good stuff and you should be able to understand.

So the whole point of this company that uh gets you licensed and bonded is uh, they take care of all of the rules. So the Sweep 6 company that we use is actually one of these. I mean we are not necessarily like this isn't a sponsored post for them. So I don't care to talk about them.

Uh, But the whole point of them is, uh, to make it fair for everyone that is entering so you do have to pay them? Uh, And let me explain. I Mean, it sounds very simple, right? Not only do you have to pay them5 figures for um, four to five figures depending on what, um, how big your giveaway is, right? Uh, sometimes it could be even more. And that's just to establish the giveaway as a legit giveaway by being licensed and bonded. Now, what exactly does this mean? Well, it means that you're licensed in every single state and you're bonded within every single state that you're running or continent right that you're uh, or country that you're running.

Um, this giveaway in right? And the reason that this is so important is that let's say that something happens to me. but you enter my giveaway. The whole point of being licensed and bonded is that this giveaway company is asking for some form of collateral to make sure that if I you enter and that let's say I end up passing away Again, an extreme example that you still get taken care of for the giveaway and based off of the giveaway rules, right? So if this was going to last 45 days, there's 5 days left. but I ended up deciding to like.

you know, let's say I decided to leave. Well, because I'm licensed and bonded, at least have some form of collateral that will cover whatever the prize was supposed to be. So for me, let's use this one as an example, right? Um, we can head on over to Shop Techbuds Outcom and we're giving away a BMW M4 or $50,000 cash. So the whole point of the giveaway company is that they are actually supposed to collect a specific dollar amount So or $50,000 right? So $50,000 And also if you don't own the car outright, right? so you could show them the title and then they can do it that way.

Uh, they can sometimes ask for the full dollar value of the actual vehicle. Which means not only do you have to give them $50,000 but now you also have to give them the value of the actual vehicle itself. And especially if you're you're financing the vehicle and you don't own it out, right? Uh, then you definitely have to. You know, give them whatever the dollar value is for that vehicle to make sure that if the winner ends up winning the car right and and they want to redeem it, that you can't be like ah no, I don't want to actually give it to you anymore It It just makes it's super legit that regardless of what the the company wants to do after the giveaway that you are taking care of and that's why being licensed and bonded is so important.

But it's very expensive because you have to think about it now even before you even run the giveaway. Let's say that like when we ran the GTR right, GTR is an 880,000 plus vehicle. So then there's the $80,000 value. and if you don't own it outright, you have to give them $80,000 and then it's or the $50,000 and or $50,000 right? So then you have to give them 50,000 Now you're out 80 to $130,000 and you haven't even started the giveaway now being licensed and bonded I Want to remind you that you also have to pay the Sweep Sticks Company a couple, and sometimes it can go into the high five figures of what you have to pay them and that is just even before the giveaway starts Again, something I was not aware of.

but I think is very, very important when you enter a giveaway just like ours is. This is why it's so important to be licensed and bonded, because it makes it legit and it makes sure that the winner is taking care of regardless of what the host company wants to do. Okay, so uh, now, uh. the second part that I want to talk about is we don't personally drop ship any of the products that we offer on our site, so if you go on our site very very quickly I want to show you this the option for a lot of people is they're like, okay, well maybe I'll just drop ship everything Which means that like you don't actually carry any of the inventory so any of the mystery boxes the sticker packs any of the t-shirts the idea with with Drop Shipping would be is that they make the difference based off of their markup.

So like let's say that they get this hat uh, through print full for like you know, 20 bucks and then you buy it for 30 bucks. So they make a difference of 10 minus their fees. and then that's how they make their money. So um, can you drop ship and run a a sweep? 6.

Company, Um, a giveaway company? I'm sure you possibly can. It just really is going to slim down your margins right? and that's just something to take into consideration So personally for us, uh, we hold all of our inventory in house. Uh, all of our products and we build products and Apparel around the actual vehicle right? So like obviously, this giveaway, it's a BMW M4 right? So therefore, a lot of our products are around the BMW theme, but not all of them right? We want to make sure that we Prov provide a variety of things because my following doesn't necessarily have to do with BMW. But let's say you don't have a following.

Then you can kind of decide we could do some BMW then maybe sprinkle some extra stuff just in case they don't care that much about wearing BMW apparel or products. So again, something to take into consideration. So we personally carry over $150,000 worth of apparel inhouse Uh, that we have in preparation. uh before we actually start the giveaway.

So again, something that I was not aware of. We now carry more inventory because obviously there's more demand, but more inventory than we ever have before. And this stuff is not free, right? So it costs a lot of money. Uh, to not only um, you know, make these things, but also to carry the inventory and then have the employees to run everything.

So um, obviously you want to work with designs and or designers making sure that it meets your needs for what it is that you're going to be providing for that product. Um, and then obviously with your manufacturers, right? Different manufacturers offer different products uh, or different rates. Uh, but then also your turnover time of how quickly they can. Let's say that you sell out of something and you weren't expecting that.

How quickly can they bring you back up to stock something to take into consideration and what's that value uh, worth to you right? So um, yeah. so and then ensuring that all the products meet your standard for the ROI of what you expect. So like if we you have a standard of I don't want to sell anything that we don't make over you know, 20% on or whatever it is, right? We have to have at least 20% margins. Uh, so making sure that your Roi basis is covered and then also making sure that you understand how much you can carry based off of cost of goods right? Like you know, if you have $200,000 to work with and you're running a Soup 6 company and then you have to get licensed and bonded? Well, that's nearly $100,000 out the door.

Now you have $100,000 to work with. Cost of goods are one thing. But then part three is marketing. Uh, marketing for both organic and paid traffic.

Establishing a budget on what your cost per acquisition is and your marketing budget for the giveaway. Um, overall giveaway And then SL per day. So being able to Market on platforms like Facebook YouTube Tik Tok Google Pinterest Etc Stuff like that, right? So the idea behind that is not only do you again have to get licensed and bonded, not only do you have to carry the inventory if you choose to go that route other than Drop Shipping, but now you have to create a marketing plan and a marketing Budget on. Okay, well, how much do I want to spend on ads? Especially if you don't have a following Now, majority of if not all of your demand is going to come from marketing itself.

Marketing is not free, right? Especially during Q4 of any year, right? So this is what we're intoing right now. Uh, prices begin to go up because then demand begins to go up for all the people that are competing with one another to try to get in front of you. Right? So then it becomes very expensive. your cost per acquisition begins to go up, and then you begin to ask yourself, holy moly, you know, is this actually worth it, right? Because it begins to really slim down your margins.

So again, something to take into consideration. Uh, I Know companies that have budgets of spending over $10,000 on ads per day? We're nowhere close to that. Um, but even if you do $100 a day, think about it. $100 a day might not sound like too much, but it's still $3,000 a month, right? Because it's every single day.

And then if you run it for, let's say you know however long this giveaway is, If it's 1 month, two months, 3 months, that's an additional three6 or $9,000 if your budget's $1,000 per day. Now that's $30,000 per month, right? So 30, 60 or $90,000 And that's just for your marketing budget to present your product and your giveaway to other people. Something to take into consideration. So um, one thing that I had no idea of and again, this is why I wanted to share this with you before you start a sweep.

6. Company One of the main reasons that you possibly don't want to go with the idea of um Drop Shipping is payment processors are such a huge issue with a lot of giveaway companies. So for fortunately for us, a lot of my um I would say demand doesn't necessarily come from ads, it comes from my following, right? So uh, my following, knows exactly what I do I mean they? they understand that like I've always been into cars so my my following always is car related somewhat. Uh, but payment processors can drop you.

which means that they don't want to work with you if your refund rate or your chargeback rate is too high. something to take into consideration. So if you drop ship a lot of stuff and you don't carry any any of the inventory uh, a lot of giveaway companies uh, try to sell Pngs of things that you can download just so they can. You know, because it doesn't cost them anything to sell a PNG Like let's say it's like an Nft and you end up not winning the giveaway right? and then you can charge back that because you didn't receive anything.

It's just like if you try to offer products or services that are not going to cost you a lot that just make it easier for other people to enter and then they receive nothing and or the quality of what they receive is not not up to their standard then you can begin to, really, um, build up with these chargebacks And this is why I Always when I promote my giveaways Uh, for the BMW or even the GTR I always like yeah, feel free to enter right? But please do Not buy something that you're not actually going to wear right? Uh, my following has has a lot to do with like trading. So we sell trading mouse pads, trading apparel, uh, and trading accessories as well. So if you've ever wanted to buy anything now, it's kind of killing two birds with one stone. It's like now you can buy something and still get entered.

Uh, for the super car giveaway, right? and I think that's the really nice thing about it is that, um, you want to present things that they might actually use rather than hey, buy a PNG that you're never going to use and you're just buying just to get entries for the giveaway? Do you get what I mean? So um, I would say the more sketchy you tried to be with just selling things just so so people can enter and they don't get anything, the more likely they are going to be to charge back and then obviously not put you in a good position. Uh, with those payment processors and once they they drop you, then all the other ones can easily begin to drop you because of your charge back rate and at that point then you can't collect payment. And then you can't run a giveaway. And if you're doing this while you're running a giveaway, it's probably just not going to be the best experience because you have to stick within the timeline.

That's also something to take into consideration once you are licensed and bonded. the specific rules that you come up with, and the timeline. all has to be set ahead of time. So if you give yourself 45 days, but then your ad account goes down.

if you give yourself 45 5 days, but then your payment processor goes down, you still only have 45 days. The Streep Sticks company does not care about any internal issues that you are having. Also something to take into consideration: Can you tolerate taking a complete loss on what you're about to do Again, it's daunting when you think about it that way. Um, one of the things that has been most important is again setting up for the winner and making the experience one to remember.

It sounds super corny, but at least in my experience the winner if they choose the car or the $50,000 has always been the biggest winner in the sense of like I mean I don't I don't run a super big giveaway company, right? So like our margins are very, very small and the person who wins if they choose $50,000 or uh, the Supercar they end up winning more than my actual company at least me as an individual, right? Um, and I Want to make sure, because when you really think about it, you know this is probably a lifechanging experience for this individual. So you just want to make sure that you do your part in making it just that, right. A life-changing experience. So uh, the way that we do, um, our the way that we did uh the GTR giveaway is we went to my hanger which I already had because I had my plane there.

um and we set it up all there I brought all of my really close friends uh that I know that would be very excited for the winner. We flew the winner in a jet uh to Arizona We picked him up in our G wagon. our team took him around, we brought him for the big surprise, the big finale and then I spent some personal time. Normally the people that are entering my giveaway are people that are somewhat you know have been watching me and or have has been a fan of me or something like that.

They've watched my videos so there's some form of connection that we have, right? So um, at least for our first giveaway winner, uh, it's been. It was such an experience where you know when people ask, you know when you really break down the numbers. At least in my experience it doesn't really make sense for a business uh, profitability wise. uh at least the way that uh We've experienced it uh to to run this right.

We're not super big, we don't have a super large ad budget I fund everything myself. uh and the biggest winner is always the person who wins. But man like that experience of Gerardo who ended up choosing the $50,000 to see how lifechanging it was for him him uh to hear his story, How he just had a kid, to hear his story about how his car just like stopped working and then now he just got gifted $50,000 Uh, to me and our team. First off, it keeps us all busy.

It's very exciting. Uh, very stressful, but also very exciting. Uh, during while we're running the giveaway. But then to have that be kind of like the grand finale.

It's just a really, really, um, unique experience to say the least. Uh, and that's what we want to treat it as right. and we want to make that We do our part. And hopefully you can do your part.

Uh, that if you choose to host a giveaway company that you're not just like. ah, here's the car. congrats. You know, uh, that you make it and treat it as just that and that's a life-changing experience.

So um, the last thing and last tip that I want to give you is, um, the first giveaway often is expected to be a learning experience. Which means that you're expected to most likely take a loss, especially if you don't have a social media followed. Um, you might have have a lot of money, and hopefully you know if you start. if you plan to start one, at least in my experience, it's what is needed.

Um, my team learned so much in just the first giveaway, and probably more than we learned in maybe a full year. or maybe even two years of running an e-commerce store. Uh, and for me, that was worth it, right? Regardless, if it made any money or not. Uh, that learning experience, not just for myself, but everyone that's part of my team.

It really pushed us to to do better and to try to do better. Uh, in specific areas that we were lacking. and we're still working on improving. um, and trying to improve in in all these different areas.

So, uh, just want to set proper expectations and and hopefully maybe you can follow up with me. If you choose to host one, don't start asking me a bunch of questions. Uh, but I would love to. You know, uh, see how it is that you do And um, you know you can feel free to let me know about your experience.

But uh, um yeah. I mean it's it's it's busy. It is stressful because you have a timeline that you must abide by. Uh, according to your you know rules that you set up with that sweep Scks company.

But boy man, it's enjoyable. So um, yeah, let me know in the comment section what you guys think? Uh, again, we are hosting our giveaway company. So if you don't want to host your own, but you want to enter to win, Um, we are giving away. Actually right now we're giving away two cars.

so this is a BMW 328i. Today is the last day To Enter for that. The winner is going to be selected tomorrow on Monday So you can buy anything and the way that it works is every $1 that you spend on the store equals five entries. So we have Um for those that are unaware, it's a software that tracks every order and that sends that information over to the sweep Stakes Company.

So every $1 you spend equals five entries. So let's say you buy a $15 sticker pack that will earn you 75 entries. Uh, we do have this mystery box that's our biggest bang fear buck and it comes with the most products. Again, biggest Bang Fe buck and also comes with with 1,000 bonus entries.

So that is the mystery box and that will get you entered of course for both giveaways, but the winner for the BMW is going to be selected tomorrow which is November 6. So that's at Shop Techbuds Docomo. So I appreciate your time. If you have any questions, feel free to ask down in the comment section.

Uh, and like always, let's make sure that we end the year on a green note. Take Care Team.