It’s NEVER too late to become an Amazon Seller! With Don Henig
02:25 Business history by Don Henig
08:10 What is the difference between AccrueMe and other companies?
This is the first lesson that we got from Don’s story. Interestingly, Don learned about the Amazon Seller program after his retirement when one of his friends told him about it.
Having worked in several industries, including entertainment, mortgage, publishing, real estate, and finance, Don finally said goodbye to the business world. As per him, “I’ve already made all the money I need, so I’m done, and so I quit.” It was only when Don learned about the poor availability of lending sources in the market that he decided to start his company.
In this episode of Amazon Made Simple, Izabella chats with Don Henig about how he came across the idea for his company while he was enjoying his retirement. To his surprise, many sellers could not grow on Amazon Business because they didn’t have the required capital. His accountant told him about three Amazon sellers working at different scales. Each one of them was looking for a good source of capital.
Don Henig has done what no one has ever done before!
Don, along with his friend, came up with a totally new model for the market. Unfortunately, they were not welcomed when they went to Wall Street to raise money. As per Don, “We’ll give Amazon sellers money to grow their business, and it’s all about growth!”.
There is no interest! No fees! No equity!
Unlike any other lending source in the market, Don’s company charges no fees and no interest on the profits. Also, Amazon sellers enjoy full ownership of their business. The company doesn’t even take any profits for the first 30 days to let the sellers work and focus on establishing their businesses.
It sounds too good to be true! Doesn’t it?
AccrueMe doesn’t have any repayment period. According to Don, “We don’t have a term, so the seller can use our money as long as they want or as short as they want. If they call up today and pay us off, there’s no penalty”. There are no monthly payments involved. The lenders can pay whenever they feel that it’s right. While there are sellers who pay the company back in March and April, some companies haven’t paid back anything in over two years.
How does Don’s company make money?
The company uses a small percentage of profits for as long as they use the money that is lent. At a high level, the seller earns a hundred percent of the profit on their money, plus they get half the profit on the lent money. You are sharing the profit as you would do with your real partner, so it won’t be wrong to call it a partnership. If the lender plans to sell their Amazon business, the company will get their investment plus the accrued profits.
What is the eligibility criteria to partner up with the company?
Don’s company is looking for sellers that are in business for it and profitable for at least six months. Depending on the requirement, they provide people with funds as low as $10,000. The company soon aims to set the minimum payment limit to $25,000. The company usually doesn’t invest in new and unproven products. It is considered proven as soon as that product is profitable for two to three months. The company will give them money for that product as well.
Lesson from Howard Schultz
Howard Schultz is Don Henig’s main inspiration for going to the hedge fund on Wall Street. While raising funds for Starbucks, Howard approached 242 investors. Of these, 217 investors rejected his proposal. This number is enough for anyone to give up on their idea, but Howard didn’t back out. After a lot of effort, he created a world-renowned coffee brand.
Being inspired by this story, Don Henig made it clear to his friend that “We are not going in to get money; we are going to go in and get our asses kicked.” Their main motive to go there was to learn something about businesses because they didn’t know any answers to the questions anyways. It was interesting to meet the billionaires. Don was surprised when they were called for the third time by the investors. Six weeks later, the investors gave them a commitment for an equity investment worth a hundred million dollars. The main concern of the investors was, “will anybody ever pay you?”. Don’s first client was a retired couple who had lost their retirement earnings. Once they got the funding, they were able to grow their business ten to fifteenfold in a year.
So many success stories!
One of AccrueMe’s clients used the funds in Retail Arbitrage. The client started from a $2500 profit in a month, and after a year, his profits are now consistently $44,000. Once successful, he took more money from AccrueMe to open up a wholesale side of his business which is going well. Now, at the end of the year, he’s got his first private-label product planned. With AccrueMe’s help, the client will have successful businesses in all three divisions (retail arbitrage, wholesale, and private label). The success stories also involve clients as young as 22 years old who successfully generate massive profits and enjoy a luxurious lifestyle.
Last but not least, Don has a surprise for all you amazing learners!
Anybody who approaches AccrueMe via Ritz Momentum gets an extra $500! Also, you will have 30 days to decide how you want to move forward. No questions asked!
So what are you waiting for? Apply now!