Last time I wrote about how and where to find wholesale deals. If you did not read it already you can check it out here.

Today I want to spend some time on the massive importance of a distribution list.

So many investors, both new and experienced, are far too focused on finding the deal. Don’t get me wrong, the deal is very important because without it there is no wholesale fee or profit to be had. Or…is that really true?? I’m going to challenge you a little bit here with how the distribution list is vastly more valuable than the deal.

Let’s start with something that I am sure you are familiar with… Amazon.com. Amazon is a multi-billion dollar behemoth. If you are reading this you have no doubt purchased something from Amazon in the last year. What you may not know is that Amazon has over 250 million credit cards on file! That is a lot of “paying customers”.

When Amazon first started out they were just selling books. Books lead to ebooks, and then kindle, and now Amazon sells nearly everything you can imagine. What you also may have noticed is that Amazon allows other sellers to sell their “stuff” using the Amazon website…and most importantly get access to all those paying customers!

You can even self publish on Amazon’s Kindle platform. No longer do you have to get a deal from a publishing house to publish your book. You can write, publish it yourself on Amazon and begin selling it right away…taking out the middle-man completely.

The reason I am giving you all of this background on Amazon is because they are able to make a substantial portion of their revenue through every day “mom and pop” sellers of just about everything you can imagine. The reason that they are able to attract these sellers is because of their MASSIVE distribution list of paying customers.

Now lets put this in terms of wholesaling and your distribution list. When you are first starting out your list will be small. It might be even small enough that you can call everyone on it. That’s ok, these are still buyers and this is how you should treat your list in the beginning.

But, as you get bigger and as your list grows, you will not be able to personally reach out to everyone on your list anymore. And, the most cost effective way that you will be able to reach out to each of them will be through email distribution.

I am sure that if you are a customer of Amazon you get multiple emails per week from them letting you know that they have things available that they think that you would be interested in.

As a wholesaler, when you get deals you will be emailing them out to your list, letting them know that you have a way for them to make $$$ that you think that they will be interested in!

Now, this is where things get really good. Once you have a real distribution list, you will have other wholesalers contacting you asking you if you can email out their deal that they found to your list. You will charge them either a flat fee or half of the wholesale profit for the services of your distribution list.

This is exactly what Amazon does. This is exactly what you should be modeling and doing as well. This is why I tell all of my students that the money is really in the distribution list. How amazing is it to be able to shoot out an email and get paid for a deal that you did not have to spend your time and money to find, negotiate and put under contract. All you had to do was press “send”!

Not only does a distribution list allow you to make money off of other peoples efforts, but it is what‘s of value to someone who may want to buy your business someday. The distribution list is what gives your business value and makes it sellable.

I hope this article has made you a believer in why having a distribution list is the most important and valuable thing that you can focus on in your business. Never, EVER stop adding to this list. Always work on growing this list of buyers. If you do that you will have a business that allows you to predict the future. What future will you be predicting? The one where you are making money on demand and knowing that money will never be a problem for you again!

Next week I will go into how to build your distribution list from scratch. I hope you enjoyed this essay. If you liked it please forward it, like us on Facebook, or better yet, leave a comment below!

To your success,

Andy