Codie Sanchez

What are pre-orders?

And then two, how do you do them well in order to not give away or spend a bunch of money on your business when you're starting?

That's a good point.

So basically you go, like, let's say I've got a ring company and I'm selling rings.

Thank you.

I thought it was cool.

And I go to put my ring on Kickstarter and I'm like, sick, I'm going to give the first hundred people that buy it, get it for 50 bucks.

And so that gives me some working capital to start with.

And then I'm off to the races.

But I don't realize that actually with shipping, because I haven't included that,

and variable costs of goods and packaging that I didn't think about, it actually cost me 60 bucks.

So now I've lost money on it.

That's so important.

These things sound sort of little, but they're so important in business and it's the difference between making or losing money.

So does it go – so if I want to sell something and I want to do a preorder, I have like a little pyramid of what matters, my preorder pyramid.

And the preorder pyramid is basically exclusivity, urgency, value, timeliness.

Yeah.

Something like that?

Give me the secrets.

You gave us some of those there.