Wanna know how to run a successful business? Do the groundwork and work as a driver to understand what we actually go through. Then become a dispatcher and lead a team, then become an owner and build your team. Just gotta WANT it and not lose confidence.
Have bad drivers? DISCIPLINE THEM.. How? Suspend them by losing a days worth of money. Hurt them in the pockets. Still misbehaving? Write ups, have a back up place (recruitment) while they still mess up and replace.
I’m working for a DSP and they pay us by the day if people don’t listen they pay you hourly and when you get paid by the day you get done early and still make your full day Im trying to own a dsp and that’s what i plan on doing
I work for a DSP and the #1 factor that affects every aspect of the business is hiring quality drivers.......if you hire irresponsible drivers who don't give a f... about the job then you can expect to have nothing but problems
That’s my biggest and can be my only issue with Amazon. If they gave you time to actually build quality employees than you can be successful. The demand give people no choice but to mass hire than unfortunately lead to crappy employees
Very true. I was a driver for years and one thing i can say was my dsp manager was very professional, understanding and looked to grow. There were plenty of idgaf drivers
people will always find a reason to complain thanks for cutting the bs and being open and honest. I find it helpful as a new business owner learning from others.
I do Amazon delivery all I can say is that to me all DSPs are all in for the money they don’t help their drivers the way they supposed to and almost all dispatchers the think they are the owners of the DSPs they work for I do delivery for Amazon because I need the pay not because I like it but if DSPs treat their driver better maybe drivers would work better
The moment anyone offers you a business opportunity with just one customer you need to run. Your entire investment is at the whim of that 1 customer. You might as well pay to be their employee.
I as a dsp driver ....if owners put more integrity into their business as a prior business owner of something completely different... it'll go a lot further to make sure your DSP is working as a well oiled operation...but solid drivers are a must to make it happen without damage
Sounds like you’re an employee of Amazon then being an business owner. It seems risky knowing Amazon can cut you off at any moment and leave you in debt and upset employees.
I’ve always made money off Amazon flex, but I just take their packages back once I’ve reached the time that I’m paid for. It lowers your score but who cares.
I got to the second interview but ultimately was not selected. Doors have been closing in my face these past few years . Hopefully something eventually comes around. Trying to keep my chin up.
Sorry to hear that. Remember every success story ever always started with a huge number of obstacles and challenges. And as some green dude once said "There is no try, only do, or do not" 🙂 Thx for the comment
I remember when I signed my name for a potential part owner with Amazon and did a bit of research and sounded so good. Also few months later you came out with the video explaining the trouble. I am so glad you posted it because that changed my mind to continue the process. Well explained and really love all your videos. Thank you for sharing
@@CryptoAlex1 You would think Amazon would increase their advertised net profit potential if multiple owners are making 1.5 million net profit! Also since fleets are limited to 40 trucks to prevent unionization efforts I'm genuinely curious given the tiny margins how any owner could earn 4X what the the historical maximum has been. I didnt think Amazon allowed for ownership of more than one route? Not disputing what you are saying just curious as to how that would be possible. Thx for the comment.
@@FranchiseCityOnline I haven't seen 1.5 million net revenue and may have not typed that correctly but definitely around 800k Net yearly mark continously. I have seen that with my own eyes. Alot of this information is not available online due to the non disclosure agreements that they are required to sign. Each one of them is currently roughly at 35 routes per DSP and have gone up to 50-60 during peak season. As far as the adversited potential, I am assuming Amazon want's to air on the side of caution as I am sure not all DSP's make the same amount. There are alot of different moving parts and elements that impact this such as Location, type of drivers, weather, and so on. What I can say is that I feel that there is mostly negative information out there regarding DSP's with certain people that are stating what they believe are the facts but have no idea how it operates and of the potential. I do appreciate your perspective as well but just something to think about. I remember before my friends DSP all of the videos we watched were super negative. He still took the leap of faith and 3 years later over 2 million net in the bank lol. Just saying. However, there are definitely many risks. Where most of the money comes from is from weekly bonuses that can range from 5-12k called Fantastic Plus based on on time deliveries and safety. There are many different pieces to running a DSP and the money does not only come from the 0.15c per package delivered. I think in order to really understand it, one must have someone close that can share all of the information including proof.
I remember when I watched your first video which seemed very negative regarding the DSP program. My friend who now owns the DSP for 3 1/2 years, has been very happy with his DSP and how things are going. Yes, there are risks involved with owning any business. However, I believe that you lack alot of information because it is not available out there due to NDA's. My suggestion to you is to find a DSP owner that is willing to share his/her experience and then make a video based on that. There are thousands of DSP's and out of thousands I could only find 4 articles about DSP's that did not do well due to their performance which tells a story. Another thing I want to point out is that, why would Amazon or any other company set DSP owners up for failure if that would directly impact Amazon negatively? Doesn't make sense. Again, speak to actual owners because although you have many valid points on the risk perspective, but most of the information you provided it is not correct. Amazon pays for the van lease payment and for the parking which in your video states otherwise. Thanks.
Thank you for the comment. As stated, yes some DSP's do make money. I clarified that on your last comments as well. Amazon provides the rosy side of the story, we provide the counter-argument so people can make a decision after hearing both sides. Amazon isn't setting up people for failure, it is seemingly more of a risk mitigation strategy. And a question to you, if this is such a highly profitable and risk-free venture, why wouldn't Amazon do it themselves? And yes, we have spoken to approximately 20+ prior owners who came to us after leaving Amazon. None can speak publicly due to NDA. Admittedly we only hear from people who failed so our samples are biased, but as we have stated YES WE GET IT, SOME OWNERS DO WELL. Do you not want people to hear both sides?
@@FranchiseCityOnline Hi, thank you for the response and for the open discussion. I agree that it is a risk mitigation strategy and it does carry its risks just like any other business. I want people to hear both sides as long as the information is correct. I would again just suggest getting the information right prior to sharing such as what Amazon is responsible and what the owners are responsible. Although I appreciate you making the video and all the time and effor put in to it, it just a trust thing with me when someone provides incorrect info.Again, Amazon pays for the drivers, gas, parking, insurance amongst other things. Amazon is not for everyone. I worked there in various management roles for close to 11 years and I witnessed many leaders not last because they couldnt handle the pressure. I just wish that people would take more responsibility for their actions and do a bit more of self reflection to work on their areas of opportunities instead of just blaming Amazon for everything. Again, thank you for the open discussions. Reach out if you have specific questions that I could help with.
@cryptoalex1 I TOTALLY agree. People can be so negative with VERY limited information. They make these videos as if they have inside 100% accurate info and really no NOTHING! I know a DSP owner who is VERY successful with more than 50 routes, two managers and a fleet manager... all while being on his/her own payroll for 300k. This is why people should be held accountable for making slanderous videos about companies with inaccurate info.
@@canonymous8035thank you. I know someone too who is very very successful. What I’ve noticed is that many people can’t run a business. They want to believe in passive income and doing little to get a lot. Then they blame Amazon. Instead of stating all the problems and making the opportunity sound like trash why not teach people how to run a business?
Seem like the NDAs are part of the scam Force the owner into debt Make him sign an NDA and pay them to sign it so they can't say anything sounds pretty scammy to me
Curious to know what cities and States top the list for unprofitable Amazon DSP. I imagine demographics, municipal and State laws play a huge role in profitability.
Great point and some of the owners complaints were exactly that. Certain cities by virtue of customers proximity to each other were much quicker to deliver while some routes were apparently impossible to make money. It was alleged Amazon was learning how to deliver on other peoples $$.
It’s almost like owning a 711 franchise where you don’t own anything. But difference is in 711 people make tons of money without driving around town like a maniac
@@pam1082 what do you do when your drivers don’t show up. I know 2 local dap owners here who are always struggling to find drivers and are driving themselves. Both of them are trying to get out of this DSP model
Former restaurant franchisee here. My uncle owned multi unit Domino's franchises in Sydney until retiring during COVID. Overall, based on our personal experiences: Franchising benefits only the franchisor, I can even call it a legalized "scam". What kills a franchisee is the royalties. When you have extreme thin profit margins and the franchisor yet takes another 6, 7% of your sales, you are basically working to put money into the franchisor pockets. I would never recommend anyone to franchise anything unless is a multi million dollar brand like McDonalds, Popeye's, Taco Bell, and even then, there's always a huge risk. Stay away from franchise unless you 100% know and have extensive business experience and capital.
I looked into this years ago and it was not good. All the extra stuff needed to start up is ridiculous because you need to at least know what you don't know and pay Amazon to receive that information. It's really only good for companies that are already doing something similar but have low volume and want to gain more volume quickly with a contract. If you don't have the infrastructure, don't try it unless you are willing to spend tens of thousands more just to learn and try to get it set up.
Putting all of your eggs in one basket is idiotic, let alone in the basket of the world's greediest psychopath. He didn't become the world's richest man by being generous to those who built his company, he did it by paying people just enough to not work elsewhere.
As of 1:33 your analysis is wrong. $10k gets you 5 trucks, however the Amazon definition of ‘Fully Ramped’ means 20 to 40 trucks. The average is to have 20 trucks bringing in $75k in profit or 40 bringing in $300k.
To be honest when I see stuff like this, it just becomes clear that it's the DSPs that need to band together and make unions for drivers since they are playing the game of indirectly not being associated with the actual people who drive for them. If you guys are making millions, it should be a breeze to pull everyone together even on razor thin margins to start forcing Amazons hand in giving drivers a much needed lift in pay $45 per hour minimum, paid federal holidays, increased benefits such as maternity leave, pet insurance, and 100% tuition coverage of choice trade or degree as without the drivers there's no Amazon. Please don't be greedy and think only of yourself and what car or house you'll buy next off of people who are putting their lives on line for convenience. This is unsustainable and if the drivers start protesting to get you all to get with the program it'll be a bad day internationally.
Based on the numbers presented the most profit that an owner can expect is 1.6 to 6% that's is not much to work with, especially without experience. On top of low margins is having one customer that right there is not sustainable because you are subjected to their business cycle and small fluctuations can wipe you out without many options to pivot. The control you have is to cut costs you can't seek out other delivery opportunities to mitigate the downside. but what do I know most of my knowledge came from RU-vid University.
YT = one of the finest Universities! Here is a joke: A young man gets his first job and shows up for his first day of work. The boss hands him a mop and a bucket. Young man says angrily to the boss "Mop and bucket? Did you forget I am a graduate of Harvard?" "Oh, I'm sorry," the boss said. "I did forget. "Let me show you how to use those." 😁
How are they in debt? If you establish an limited liability company (at least here in Italy) only your conpany will be the debtor in case of bankruptcy (you can't lose your house if your LTD doesn't own it) and the creditors will only able to attack your registred capital and not your personal belongings. So let's suppose I have an LTD eastablished for DSP with 30k registred capital. If Amazon decides to kick out of the program I will only lose my 30k or just a part of that capital but nothing more.
Unfortunately not that easy. Just "exit fees" alone on the vans have apparently left many DSP owners on the hook for $120K. There are ongoing court battles for this situation. Most entities will not extend credit to a newly formed LLC without a personal guarantee. Lots of stories on the web about the ongoing problems. www.vice.com/en/article/wxdbnw/i-had-nothing-to-my-name-amazon-delivery-companies-are-being-crushed-by-debt www.protocol.com/workplace/amazon-delivery-program-trap
Thanks for the Heads Up!! Anyone… WHAT IS THE -BEST-route to take when becoming a Business owner with one or two box trucks?????????????? Thanks you in advance for your advice;)❤🎉
There is no negative or positive - only facts. We all own franchises so obviously we don't hate them :-) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1yunaxZKyFE.html Thanks for watching!
@@dawudsaifullah7507 We have equal 50/50 positive to negative. Check the playlists. But nobody watches the positive, and everyone says I am "shilling". Also - every franchise company, every broker, every company gives the 100% glowing report. I think it makes sense at least one group gives you the bad side - no? Keep in mind I have seen hundreds of people lose their life savings. Some of them are interviewed on the channel. Watch those and maybe then you will understand.
If it was a lie, there wouldn't be thousands of DSP's around the country. No company will setup people for failure especially when it directly impacts them. Think about it.
@@FranchiseCityOnline you clearly are either missinformed, don't know all of the relevant facts, or are purposefully omitting details which are "lies" by omission.
@@Jason-mp6yj The companies selling the opportunities provide the rosy side. We provide the counterbalance. If you prefer to only see the rosy side prior to investing be my guest. Also bear in mind I have seen hundreds of people lose their life savings on investments they were "sold", many of them are interviewed here on the channel. The people noted in this video who lost money on Amazon - also real. I do state quite clearly that there are many happy operators. Could you be more specific as to how I am misinformed or exactly what details are omitted?
@@FranchiseCityOnline Everyone has an excuse when they fail.......they blame everyone else but themselves, how about you interview successful DSPs at the same amazon station location and learn what makes them successful and then compare and contrast.
@@Jason-mp6yj Amazon provides positive interviews exclusively. Again, we provide the counterbalance exclusively. That's what we do. If you see any inaccuracies we would be glad to consider them. Thanks for watching and taking the time to comment.
The best fast food business I have ever seen in my life and the busiest on the entire planet is Al Baik from Saudi Arabia, it is a business similar to KFC and Popeyes but a million times better, little by little they are expanding very aggressively in the South Asian area, in Dubai they are very successful, I can assure you that they sell the best fried chicken in the world. The way this fast food business operates is masterful and advanced. Its drive thru are not like the obsolete ones we see here in America. Its drive thru has 5 or 6 lanes, many of its restaurants have 2 floors and the service of food in the drive thru is done through a modern conveyor system. I always thought that the business models of In-N-Out and Chik-fil-A were the models to take into account, but I was wrong until I saw Al Baik, if Al Baik came to the United States, they would shake everyone in the fast food business. What I have always wondered how these Arabs achieved that perfection in the fast food business when they have never had any tradition of that type of business? If I had the opportunity to open one or more Al Baik franchises, I wouldn't think twice or three times, I would do it with my eyes closed, I had never seen a fast food business as successful as that in my life. I hope one day to have the opportunity to open the first Al Baik in the United States. In Dubai when one goes to any restaurant in Al Baik, there are always hundreds of people buying their excellent and tasty fried chicken. When they open a new restaurant, the lines are endless, that can happen for weeks or months, until there is some stability. On RU-vid there are many videos of Al Baik and its openings, it's crazy every time a new restaurant opens. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-yqZnsrZMmgw.html
