September 17, 2023

'Growth on autopilot' is Earnflo’s ultimate promise to anyone who wants passive income with Amazon automation. An e-commerce store that usually takes 3 to 9 months to set up is ready in four weeks with Earnflo. What’s cool about Earnflo is that it streamlines the process so you can scale the business faster. You can make $3K to $9K passive monthly income, even if you're a complete newbie. 

There’s very little information on their website. Even the cost of their DFY e-commerce service is not disclosed. Internet Marketing Reviews on YouTube estimates the cost to be at least $ 20K to $30K. I think that's a conservative estimate. Similar programs like the Smart FBA by Cohen Chorabik cost $20,000 to $80,000. Considering all the value you get and the level of service they give, Earnflo probably costs at least $30K. Their services include 

Automated payouts direct to your bank,

reliable support team who are experts in e-commerce store support, 

sales, order fulfillment, customer support, and product selection management and, 

detailed monthly and weekly reports. 

To set up a program as comprehensive as this, the creator must have a solid marketing and tech background. Well, he has quite the credential. Jonathan Maxim is a Fortune 500 marketer, digital entrepreneur, and the creator of EarnFlo. Forbes recognized him as one of the Top 50 Founders To Watch. He is a reputable figure in tech and online entrepreneurship. Jonathan graduated BA in graphic design from San Diego State University in 2011, where he also completed his master’s in marketing management the year after. He has always been passionate about marketing and online business automation. Aside from his master’s degree, he worked as a marketing strategist for Xfinity, a cable internet provider in the U.S. After that, he became the growth marketer for TikTok and achieved 18K new app installs overnight. In 2017, he partnered with K&J, and since then became their managing director. K&J is a performance-based marketing agency based in Los Angeles, CA. 

Earnflo and Amazon Automation Business Model 

Earnflo follows a simple automated system. It starts by setting up your own Amazon store. Once the store is fully set up, you’ll be introduced to a product-selecting AI tool. This AI tool has advanced features and can identify market trends and high-profit products. After that, the Earnflo team takes over the operation. They work on order fulfillment and customer support. To ensure you get the best service, Jonathan uses a performance-based compensation scheme for his team. Their salary depends on the success of your Amazon store. Which I think solves inconsistencies in service-based businesses. Incentivized compensation ensures the staff give their 100% in handling your virtual store. The good stuff doesn't stop there. Earnflo ensures to oversee every aspect of your business. So, you also get bi-monthly revenue and profit reports to track business activity. 

Amazon automation can be a lucrative passive income stream. But, it’s difficult to start and scale. The business model is hard to sustain long-term because it's partially controlled by your suppliers and automation provider. Yes, you only have to work a few hours a day. But, I don't consider that as an advantage. It only means you don't control the business. 

There are two things I don’t like about Earnflo. First, they’re not fully transparent. They don’t disclose the price unless you book a call. It's also not specified if they are (or are not) taking a percentage off your store's earnings. Second, an Amazon store is at risk of penalties and suspensions. Performance-based suspension can be because of a high cancellation rate, late deliveries, and defects/returns. These are beyond your control because you're basically outsourcing services from Earnflo. In case your store gets suspended, you can appeal by submitting a Plan of Action (PoA). It should state exactly how you plan to solve the problem. 

Half of third-party sellers make at least $1,000 in Amazon. Some would even make as much as $25,000 a month. Looking at these statistics, Jonathan isn’t lying about his numbers. I think they’re even conservative. However, profit margins vary, depending on the business type. Dropshipping has quite a slim margin around 10% to 30%, while private label margins are between 25% to 30%. Amazon wholesale has the largest profit margins at 50%. 

Amazon automation can be a profitable business, but it's also very expensive to start. You need at least $30K upfront capital, backup fund, and marketing knowledge and experience like Jonathan's. Is it worth investing in Earnflo? Yes, if you have enough capital and some knowledge of Amazon automation. However, if you're looking for a sustainable passive income, this is not it. A local lead gen biz is the better option. You earn passively by renting digital properties and selling leads to small business owners. 

About the Author Pamela Salvana

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