One of the biggest misconceptions about back doors is that it’ll make you an automatic successful re-seller. I don’t blame most that believe this because you only see ONE side of the story only and completely miss the other. Back door can mean you can successfully secure quantities of the hottest releases, but the more important questions is do you have what it takes to be the backdoor connect. For those that have purchased my back door plug blog couple months ago (which btw is now sold out – FOREVER), I’ve talked about several critical key points of being the backdoor. Though today I’m not here to give you the full in’s/out’s because I need to respect those that actually paid me money to purchase my blog, but I’ll be giving you a rather more vague and general picture.
Like one of my followers mentioned in the comment….The backdoor dilemma can be perfectly described as a dog finally catching a car, but they have NO idea what to do with it once they finally do. To many people, having the plug is like finally “making it”, but most people don’t understand the problems and obstacles that come with it. Back in the old days when I was re-selling shoes I was moving at my own steady pace that I was comfortable with (almost stress free), but when you are involved with moving volume with a strict and tight time line, things can get rough and stressful. This goes back to the same problem most businesses have and that is cash flow or what I like to refer to as liquidity. Cash flow to a company is like blood in the body…if you don’t have enough of it… your business will dry out quick!!
In the business aspect of the re-sell game, when we talk about back door it’s not one of those situations where we are just asking for 1 personal pair to have at retail. That’s the “sneakerhead” perspective. Though it’ll be great to secure every single release at retail, but that ONE pair isn’t going to make your business better. When we refer to back doors, we’re talking about many many pairs per release. Of course, when you are obligated to take that many pairs, you are definitely not paying retail price anymore…you are paying for a “re-sell” price. Why? Because it’s business – everyone needs to eat! Of course, there’s absolutely no problem with this if you are Bill Gates with unlimited cash supply to feed a country, but most of us don’t! I mean if we did, I don’t think we would be investing money in sneakers…you would probably be investing in real estate or other bigger things. So if we’re paying re-sell prices to secure pairs, how do re-sellers absorbing this many pairs make money? To answer that question…sometimes you DON’T right off the bat! Sometimes re-sellers have to make gambles on the after market price of the shoes and sometimes the time for it to appreciate could take months or even years to have a substantial profit margin to profit off. That’s only case if the shoe actually appreciates. If you make a wrong judgement and decide to take in a pair that actually depreciates, you’re pretty much taking a BIG L. At this point, I don’t know if actually taking a L in a sneaker raffle is worse than taking a L on 100 pairs of bricks. Aside from having the money to secure pairs, you also have to understand the market REALLY REALLY well to make the best educated guess at what pairs will do well on the after market and how long it will take for it to appreciate in price. If you can successfully guess it right 60% of the time, then you’re good…but trust me…it’s a LOT HARDER than you think when you have skin in the game.
To sum up, back doors may seem very lucrative on the surface but the actual business aspect isn’t that sexy after all if you look at the complete picture. There’s a lot of risk involved in backdoor with cash flow liquidity being the biggest one. Often times most backdoors are stuck in the big decision dilemma of either taking a L to sell pairs at a loss today because cash flow is needed for the next release drop OR continue to sit on pairs hoping prices will go up to make a margin. However, the main business principle will always hold true. No risk, no reward!
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