This is Allen Kuo. He’s standing in front of about $200,000 worth of shoes.
Watch his story here.
In this incredibly inspiring video, he is threatened by his parents to stop selling sneakers and to continue his college education.
He makes a deal with them:
If he doesn’t have $100,000 stacked up within the next year from selling sneakers, he would quit and go back to school.
He reveals that he had won the bet and now is one of the top sneaker resellers, after just a little over one year in the game.
Imagine being able to sell sneakers as your full time job.
With the value of a college education becoming more and more questionable, it is worth pursuing other options. Kuo made the jump and over time he succeeded.
Even if you don’t resell sneakers for long or if it isn’t your intention to reach a level that Allen Kuo did, selling sneakers teaches you valuable skills in entrepreneurship. He tells his personal story of building up bank in the 20 minute video. Here are some takeaways from the video with a legendary reseller.
4 Rules to Kuo’s six figure success.
Rule #1: Don’t smoke your own supply!
This statement for sure will get a lot of hate in the sneaker reselling community, but it’s one that is critical to your success if you want to quickly reach profitable levels in selling sneakers. So be careful with being public and open about this attitude, for the most part, keep it to yourself.
A lot of people hate resellers, even if they themselves are reselling. I mention this again because it is quite important: when dealing in person, keep this mentality on the low for sure or else you risk losing customers and your reputation! People would rather deal with one of their own than an outsider, so learn and immerse yourself in the sneaker culture, including in the verbage, lingo etc (**link to ebook purchase**), and provide value in the interaction, maybe by mentioning a future release that they didn’t know about, or about other shoe models that you have or have had in the past.
In the video, Allen mentions that he doesn’t himself like these shoes that he is selling. Although he doesn’t say this directly, this is critical to his success. Many make money reselling, yet all of their profits are funneled right back into the stuff that they’re selling, so in the end it’s a wash and they end up with little cash but usually a large collection worth thousands of dollars that they are not willing to sell. If it is your intention to have a couple thousand dollars in the bank account, it is incredibly attainable given that it’s common to see kids with a shoe collection worth thousands of dollars that they have accumulated with the help of reselling in as little as a year. So you have to ask yourself: What is cooler, having a collection of shoes worth $10,000, or actually having $10,000 in cold hard cash in the bank??
Rule #2: Practice the magic of compound interest
Did you know that $200, compounded at a 20% profit and reinvested 8 times, equals $860? And that if you reinvest that $860 another 8 times at the same return on investment, it becomes a whopping $3,697? This is the power of compound interest and reinvesting your profits! Allen talks about how he started with a small amount of shoes then worked up to a larger collection. Many people in finance and in the stock market will speak about this simple concept and how it can increase your portfolio over the years into retirement. However, the great thing about selling sneakers is that you can make gains of much more than 10% and reinvest much more quickly than yearly. Once you know what shoe models to buy and how to secure them and sell them quickly, you can double your money in a heartbeat! This is how Allen reached the account of six figures to prove his parents wrong about selling sneakers. Of course, when you get to the higher levels you need to practice precautions. If you want to REALLY make money, you have to learn not to cash out at all; think of it as a snowball that even when it’s big you don’t want to take away from it so you can make it bigger.
Rule #3: Start building your network
The easiest way to build your network today is to talk to every person you do business with . What I mean is, don’t simply do a business interaction with them, casually chat in a way meant to build rapport. So if you buy from someone on eBay, or if you conduct business with someone in person, simply ask if they have more shoes that they’d like to buy or sell. This will give you a gauge of how serious of a reseller they are. If they seem like someone you’d like to continue to do business with, get their contact info, preferrably their cell phone number. You never know who you might sell to: I have sold to professional atheletes and extremely wealthy kids before, all by going one step beyond simply selling and by adding the networking aspect. A protip: if you can afford it, purchase “heat”, as this will quickly build your reputation.
Rule #4: Operate like a businessman.
From my experience in other realms of business, sneakerheads are some of the flakiest, most difficult-to-communicate-with people to deal with. It is refreshing to deal with someone who operates in a business like manner, so your customers or your hook ups will be more likely to remember and come back to you for more.
In short, stay true to your word. When buying, be on time, have the money on you in the amount that you agreed on. When selling, be on time, have the shoes in the condition that you advertised them in. Present your shoes neatly and professionally in pictures, be ready to heed to the buyers request, like sending tagged pics (pictures of the shoes including a piece of paper with something written on it to prove you have the shoes).
So there you have it! The 4 rules that Allen used, the same rules that I used to scale the sneaker business to 5 figures. For those of you with a full time income looking for a side hustle, or if you simply don’t have the capital in time or money or the risk tolerance to engage in a full time, six figure venture, check out the post How to Make $500 Per Month Selling Sneakers.
In the full reseller’s field guide, you will have a crash course on the sneaker models that will ensure you don’t sound like a fool when reselling! It took me thousands of dollars in mistakes and nearly a year of experience to gain this knowledge , and this guide would have been so helpful in the beginning, so that’s why I put it together for all those who are brand new to reselling sneakers.
Also, be sure to check out the YouTube channel for a bunch of free advice on the ins and outs of selling kicks!
As always, take care and I wish you all the best!