Audio

521: How Running A Simple Challenge Can Explode Your Brand’s Popularity With Toni Herrbach

How Running A Simple Challenge Can Explode Your Brand’s Popularity

Welcome to a brand new segment of the show called Profitable Audience where my business partner Toni and I discuss all things related to content creation and building an audience.

In today’s episode, we are going to cover challenges, and specifically, how to run a challenge that eventually leads to selling a paid product.

What You’ll Learn

  • Why challenges are so powerful
  • How to run a challenge for your product
  • How to increase your brand’s popularity

Sponsors

SellersSummit.com – The Sellers Summit is the ecommerce conference that I’ve run for the past 8 years. It’s small and intimate and you’ll learn a ton! Click Here To Grab Your Ticket.

The Family First Entrepreneur – Purchase my Wall Street Journal Bestselling book and receive $690 in free bonuses! Click here to redeem the bonuses

Transcript

00:00
You’re listening to the My Wife Quarter Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Welcome to a new segment of the show called Profitable Audience, where my business partner, Tony and I discuss all things related to content creation and building an audience. And in this episode, Tony and I are going to discuss how to run a challenge to grow your brand and sell your products.

00:23
Before we begin, want to you know that tickets for the 2024 Seller Summit are now on sale over at Sellersummit.com and tickets go up in price this Friday. The Seller Summit is an e-conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business.

00:53
entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet. Now, I personally hate large events, so the seller summit is always small and intimate. Every year, we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now, if you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers.

01:21
The Seller Summit is going to be held in Fort Lauderdale, from May 14th to May 16th. And right now, the tickets are going to go up in price this Friday. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 50 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still grab my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting.

01:51
when you grab the book over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:07
Welcome to the My Wife Quitter Job podcast. This is a new segment called Profitable Audience, where I have my business partner, Tony, chat about content related topics. And what we are going to cover today are challenges and specifically how to run a challenge that eventually leads to some sort of paid product. Yeah. Or a sale of a physical product too, right? It could be anything. In fact, I think one of our Seller Summit speakers didn’t, Alicia.

02:38
run challenges to her water, sell her water bottles. Is that my remembering that correctly? That’s correct. She sold water bottles that were just about the hardest things that you can sell. Yeah. Really. And she turned that into an eight figure business before she sold it based on the back of these challenges. Yeah. So I wanted to talk about this today because I just went through, it’s interesting as people who work in content and commerce,

03:05
I tend to take other people’s courses or sign up for their lead magnets or participate in challenges, partially for myself, but then partially just to see the logistics of how they run a challenge because I think there’s just so many new and innovative things that you can do. And so just within the past three days, I finished Amy Porterfield’s list building challenge and Shalene Johnson’s…

03:31
I don’t even know what her challenge was called. It was like a walking challenge. So the goal was to get more steps each day than you did the next day. OK. That’s pretty easy because I’ve been getting none. Yeah. I go from 0 to 15. So as you, we’ve talked about this offline, Shaleen has sort of rebranded herself as like a middle-aged aging expert.

03:55
talking about diet, exercise, hormones, things like that, all targeted to women ages like 40 to probably 60 years old. And that’s her core. And so this, think, was a big part of her rebranding is holding this walking challenge and then moving people into her paid, I don’t know if it’s a course or a product or I’m not really quite sure what Is a paid walking? Yes, yes. You pay Shalene and you have to walk.

04:22
Let’s start with the list building one with Amy Porterfield. think most people are probably familiar with her. You’ve had her on the podcast. I will say her work is flawless. Everything about her stuff is perfection, correct? The landing pages are beautiful. The slides are beautiful. Very well intentioned. No I undotted, no T uncrossed. Kudos to her for really creating quality

04:51
content that’s free. And so she did a list building challenge, which is very similar to the webinars that we give for profitable audience that you give for profitable online store. Hers was solely focused on email list building. And she basically, you signed up for the challenge, but it wasn’t free. It was actually $37. And I think we talked about this a long time ago, but you she had the $37 webinar.

05:18
And then there was the upsell to the $99 VIP where then after the webinar, she stayed on and answered questions to the people who bought the VIP pass. I have done that before. Yes. We’ve tried it based on her. did gate one of the workshops once if you bought my book. Yes, I remember And I hated every minute of it. I don’t know. just didn’t. So basically it

05:45
I want to say it halved my sign-ups. Maybe even more than that. But you didn’t get paid because it was about the book, so it’s a little bit different. They had to pay to get in, right? The book at the time, I think, had to be the hardback because I was trying to Yes, it was $27 or something like that. Exactly. So, $27.37 is about the same. Either way, a lot of people weren’t even willing to buy the book. I would say just for people listening,

06:12
This is not a great strategy if you don’t have a big list. You’ll have a hard time selling a $37 webinar. If you have a Amy Porterfield sized list or a huge following on social media, YouTube, TikTok, I would say this is something to explore. But if you are just getting started out, I would not start with paid. You know, I was thinking about it though. If you’re not willing to spend 27 bucks to get my book, chances are you’re not going to get the class, right?

06:41
Yes, absolutely. It’s that first barrier, right? You’re weeding out, because we get this sometimes on our webinars where there’s people that like, just go read a couple articles before you watch this, right? Because you have no idea what you’re talking about. Educate yourself a tiny bit. So it does sort of weed out some of the really hard people to deal with on the webinars. However, if you don’t have any social proof of your products or your services, I do think starting out with paid is a tough sell for people.

07:09
Yes, I agree. On the flip side too, I’ve noticed that people sometimes go to eight or 10 of my workshops before they sign on. Yes. There’s a trust factor. Okay, so she always goes paid or? I don’t know if she always goes paid. I was like, you know what? I’m just going to pay the $37 because I really just want to see how she’s running the webinars. I will say she has a completely different style than we do.

07:36
which is fine because I think you need to do the style that works best for you. Her style is clearly far more polished than we are. There’s not a lot of joking. There’s not a lot of interaction with the audience, whereas we are very interactive with the people that come live to our webinars. It’s not that she’s not interactive. It’s just not anywhere like what we do or I’ve seen other people do, but it works for her.

08:01
I’ve attended hers before. I almost feel like the questions, like she’s not answering anyone in the audience. She has these pre-fed questions that she has answers to. She’s like a presidential candidate. Right. Yes. Yes. That’s the best way to describe it. However, she is delivering a lot of value. So I think,

08:21
We always have people say, I don’t know what to do. I don’t know how to run a webinar. I’m not sure how I should, should I stop in the middle and take questions, all these different things. You have to do what works best. And if what works best for you is having a set of pre-written questions that you know people, we know what people ask. People ask the same thing every webinar. If that’s what makes you more comfortable or you think sells your webinar better, then do it that way. I don’t think there’s a right or wrong.

08:45
What I did think was interesting that she did was the webinar was a series of, I think, four days, three or four days of lessons. She ran them at noon every day, noon Eastern. I always find that interesting, the time of day that you’re running webinars. Before the webinar, she did a mindset training each day before the webinar. I see your face. Did you go to these? I did not.

09:14
Oh, you didn’t go to the- I wanted to go to Curious. I know. I could barely attend the webinars because it’s at noon. It’s like a terrible time for me. I watched them after the fact. Oh, you did? Okay. I did. Okay. Okay. You and I both, I don’t know, I’m buying far more into the mindset thing than you are. However- That’s not true, actually. After doing the millionth consult, we hardly ever even talk about the specifics.

09:44
of any business, we’re all just convincing them that they can do it and that they can be successful. Right? Anyway, so I actually thought this was very valuable because most of the time when you are trying to convince people to buy a product at the end, whether it product, service, membership, course, water bottle, whatever it is, there’s a financial hurdle.

10:11
That’s the one, obviously there’s people that either have money or they don’t to buy it. But the other big hurdle is, do they have the mindset where they’re willing to take that money from one thing and put it into your thing? Are they confident enough? Do they believe in themselves enough? Do they think they have the ability, the talent, the technical knowledge, whatever it is that’s holding them back?

10:34
95 % of the time people don’t take action because they don’t have confidence in themselves to do whatever it is you’re asking them to do. That is 100 % correct. Actually, that is the topic of almost every single one-on-one consult that I’ve ever done. Yeah. So I think the mindset training was actually pretty genius because you’re basically handling all the objections.

10:59
by getting people into the right headspace before, and the mindset training was right before the webinar, right? So was mindset training first, 15 minutes, and then the webinar was like 45 minutes after that, or it was like very much in sync. Wait, also on timeout, so if it was at noon, you said, Eastern time, so she just starts to set 11.45? I think the mindset was at 11. So it was kind of back to back, but the mindset was only a 15 minute thing. Interesting, so she went on live.

11:28
and then let people sit for 45 minutes. think so. I have to double check that one because I never made the live mindset. And I’m not sure that she actually ran every mindset. I think she had other people doing it as well. I also don’t think the mindset was necessarily live. I think it could have been something pre-recorded that people just watched. You know, what’s funny is I’ve had this content for a very long time. I know you didn’t attend any of the family first challenge, but

11:57
the very first two days of that challenge was all mindset. And I can’t believe I could talk that long about it, but I actually ended up talking for two hours about the subject and people loved it. Yeah, because that’s people’s almost always their biggest issue is getting over the mental hurdles. But for me, I was thinking to myself the whole time as I was giving it like,

12:24
Oh God, people are not going to like this challenge. There’s no actionable content in here whatsoever. It’s all about getting out of your own head. I guess that could be actionable, but people loved it. And I got so many questions about it and so many fluffy questions about it. You know, like, how did you get over, you know, getting started? How did you get over the fact that you didn’t know what you were doing? I was like, well,

12:51
I had YouTube, I had Google and just figured my way out through it. I actually think that was pretty genius to hold these little mindset seminars before she taught the webinar. She did it every day? Yes. Okay. You’re basically getting people in the right head space for your training. She did the three or four day webinar.

13:18
Actually, today is the last day to watch the replays, which is also very interesting because there’s a lot of people in the Facebook group who are complaining that they paid the $37 and that the webinar training is not available lifetime. Wow. Yes. Which we could do a whole episode on. I actually got in the rabbit hole the other night of reading people’s comments about being really, really upset that the training’s coming down.

13:48
You know, team Porterfield came in and basically said the whole point of this is to work. So then she, you know, she sells this list builder society where, you know, it’s, it’s the course it’s 497. You learn how to build your email list, uh, you know, get a lead magnet, all that stuff. And team Porterfield’s point is, you know, the point of the training was to get you to a certain point and then into the list builder society. So, you know, we have to take it down because this was meant to everyone do together.

14:18
This isn’t a self-paced thing. This is a group activity, basically. You should see how much flack I got when I hated the replays based on not buying the book. There’s like 45 plus comments on each in the thread of a comment. There’s a comment about it and then there’s 45 comments responding, mostly in agreement of upset-edness that these aren’t available.

14:45
I think the problem is, and I bought the $37, I don’t remember seeing anywhere that they would be taken down on February 21st, which is when we’re recording. Now, I’m sure it was on there somewhere, but it was not clear, right? It was not bolded. It was probably buried at the bottom. And so I think that’s where they made the mistake because the general perception in this group of people who are disgruntled, let’s just say, is…

15:14
We had no idea there was a time.

15:17
Interesting. How did they respond? Basically, tough to do. This was a challenge for us to do together. You missed it. You missed it. This is the whole point of it was to do it together, work together, team-build, work as a team kind of thing, which I don’t know. I have mixed feelings about it. I think if you put it up at the top,

15:44
February 21st, you do not get access to these anymore. Obviously, that would dissuade people from signing up. Correct. It also keeps you from having a Facebook group that is now filled with people who are pretty irritated about the recordings coming down.

16:02
Is this how she always does it? I’ve taken one of her prior. I don’t know. And that’s what’s bothering me is I can’t remember it because I did another one of her paid things. Actually, I probably did this one. I probably did. 37 bucks. You don’t keep track. I don’t know. I feel like she’s always taken the recordings down, but I never would go back and look at them anyway because I did not take this because I don’t know how to build a list. I do know how to build a list. I more wanted to see, you know,

16:32
What do her sides look like? What’s she talking about? You know, just in general. So I feel like, so this is my overall synopsis of it. I feel like Amy Porterfield does an amazing job of putting very quality products out there, right? Everything is beautiful. There’s a lot of worksheets, free downloads, bonus things that you can get during the $37 challenge webinar, whatever you wanna call it. What I feel like is lacking,

17:00
is that there is very little technical implementation. I hate to say this, but I don’t think she knows how to, she has an implementer do everything for her. Sure, which is great. Which is great, but most people don’t have that. I don’t even have that. I’m the implementer. I don’t either, I’m the implementer. So I feel like that is her style. That’s always been her style.

17:29
So she was talking about creating a lead magnet. She recommends ConvertKit, which we recommend as well. And this is for content creators, not for e-commerce. And she was talking about creating a lead magnet. And she’s like, you can just create that landing page and your email service provider has landing page templates for you. That’s almost verbatim what she said. And I’m like, to someone who doesn’t know what a lead magnet is, and after they go through the webinar, they do understand that, that’s very overwhelming.

17:59
Like I’m just supposed to set up a page? How? Where do I go and convert kit? To me, there’s a lot of confusion. However, the positive it is, and we actually had a student and profitable audience come up with this, come to us with this the other day, is that we do a lot of technical inflammation. Like this is exactly how you do this. This is exactly how you do that. And then they change the interface. Bluehost changes the interface and they’re like, I can’t find the button. you’re like, cause it’s on the left now, not the right.

18:28
So I mean, that is the negative side of doing a lot of implementation, which we do, is that it becomes outdated. And then you’re in a whole bunch of weeds with people because they’re watching a video that’s not even that old, right? Six months to a year old, but because the service provider changes something, it doesn’t make as much sense to them.

18:49
I just wanted to take a moment to tell you about a free resource that Tony and I offer over at Profitable Audience that you may not be aware of. If you are interested in learning how to make money with content, whether it be through blogging, podcasting, or YouTube, we put together a comprehensive six-day mini course on how to get started blogging that you should all check out. It contains both video and text-based tutorials that go over the entire process, including a full tutorial on how to set up your first content website. This course is 100 % free.

19:16
and you can sign up over at profitableaudience.com slash free. Once again, that’s profitableaudience.com slash free. Now back to the show.

19:27
That’s always been a conflict with my class. What I do now is I actually explain what the button does. I say something like, hey, this button might not be here when you watch this video, but you know what it does and you know what to search for. You’re right. It’s much better to tell people exactly where to click because people are just mindlessly clicking sometimes. They’re just literally following.

19:54
So, but I think that’s a good thing to think about. If you’re thinking about doing any kind of a challenge, you have to decide what your audience level is and what you’re capable of confidently teaching. So I feel like for me, like right now in my life, like I could do a pretty in-depth teaching with Klaviyo with some of the implementations because I’m in it all every day. It feels like, you know, first grade reading to me. However,

20:20
Five years ago, I would not have felt comfortable. I could tell you what you needed to do and I could tell you why you needed to do it, but the actual steps, I’m fumbling around, right? So if you aren’t super confident with some of those implementation things, it’s okay to tell people to do it, why they need to do it and the reasons behind it. And that’s a perfectly fine way to give people information because the people that you’re talking to don’t even understand that part. They don’t even understand that that is…

20:47
something that you can do. In fact, I was talking to someone the other day just about setting up an automated price drop in Klaviyo where it’s basically all automated. But when you change the price of a product because it’s either clearancing or whatever it is, they get a notification automatically if they visited the product page. things like that. People don’t even know you can do that sometimes. So just giving people, educating them on the opportunities that they have.

21:13
is really valuable. if you can’t do the technical implication, it’s clearly not a hurdle. Amy Porterfield’s made a ton of money never telling anybody how to implement anything. Here’s my philosophy on that, too. If you give someone instructions step by step and they mindlessly do them without understanding what’s going on, then they might be able to get it to work in the beginning. But then something will change. And unless they’re struggling a little bit through it and figuring it out as they go along, they’re going to be stuck.

21:42
at every interface change. Yep. So that instantly is kind of how I raise my kids. Yeah, I don’t tell them the answers. I just say, just figure it out. If you know, you should be able to figure this out. It’s not rocket science. I wish you could see my desk right now. It’s literally on my computer. I have our recording page up. Every other page on this computer is mass. I have stacks of graph paper on my like literally.

22:11
What’s that for? My daughter’s math that she’s very much struggling in. She must be desperate. If you are in Orlando and you are a math tutor, hit me up. We can work something out. She asked me yesterday, she’s like, do we have graph paper? I was like, we’re not to choose. We don’t have graph paper laying around the house. What are you, crazy? My response to her was, of course we don’t have graph paper, print some off the internet.

22:38
She looks at me, she goes, print some off the internet. I was like, yes, do a search for graph paper, free printable. Her mind was blown. I’m thinking, I need to add that to my free printable collection. That is hilarious. Anyway, yes, teach them why they need to do something. She did the couple days of training. It was a very basic introduction to email marketing.

23:07
But people were very satisfied. Aside from the whole $37 debacle, people were very satisfied with the training. It looks like she’s converting fairly well on the list builder side. always converts very well. Then she converted people to this $497 course. You are right. If someone’s willing to pay $37 plus another 99, you’re probably going to shell out 500. You’re inching your way up into that price point.

23:36
So you mentioned VIP, right, for the 99 bucks? Yeah. I did the VIP, I would say, for four to six straight months. I can’t remember what it was. Where if you paid $99, you got another mini course and you got a group Zoom call at the end. And I remember going to Amy’s group Zoom call. I don’t think she answered anyone’s question from the audience. It was just another prepared. Interesting. Right? OK. Yeah.

24:07
Whereas the reason why I stopped doing those group Zoom calls was it got out of hand. Imagine like, don’t know, 150 to 200 people on Zoom. It is nuts. Even though I had people raise their hands, it was pretty uncontrollable. So I guess I could do it like Amy, just like another Q &A, but I already do Q &A at the end, but I guess this one would be more private. So I think that’s the other differentiator too, right? When we do our webinars,

24:36
We stay till the very end. We answer every single question as ridiculous as it might seem or as hard as it might seem. We try to give people an answer. Whereas I don’t think Amy does that at all. I don’t think she answers people’s questions or even like has those conversations after the teaching is over. I think the teaching is over, she signs off. And the fact that this is your chance to have access to her is the part that makes people think valuable and gets people to open up their wallet for the $99.

25:07
You know what a mastermind person just once told me, he was in my mastermind group. He was like, you have to be aloof and then you can add the dollar value. And I hated that statement. We’ve talked about this. I hate that statement too. Right? Like you’re personally, you’re purposely trying to like avoid being seen and avoid having people have access to you for the purposes of being able to charge more money. Yeah.

25:36
I don’t know. don’t like, get it. works. It is a hundred percent a tactic that works. It is not something that I feel comfortable doing.

25:48
Yeah. So you’re saying that not answering questions probably adds to the value. Right. someone to sign up for the VIP. Yeah. Because I know she does ask for questions in advance as well, which I also think there’s nothing wrong with that, right? If you are not great off the cuff or if that makes you nervous or that just gives you anxiety, some people do. Some people want that prepared list. Then have a prepared list.

26:13
There’s nothing wrong in doing that. And if it makes you feel more confident, especially on camera, then start with people submitting their questions in advance. I don’t think there’s anything wrong with that. That’s not how you and I operate because one, both of us are okay being wrong. And two, we’re okay saying, hey, we’re not quite sure, but let us figure that out for you. But not everybody is.

26:35
Not everybody feels OK doing that. Some people really feel like I need to know everything and tell people everything if they come on. And you and I are just like, hey, of course we don’t know everything. Nobody does. I always preface everything by saying, hey, take everything with a grain of salt. I have no idea what I’m talking about here. And then I say it. But you do. OK, so let’s contrast that to Shalene’s challenge. I just have this feeling that Shalene’s challenge would be something that I’m more in line

27:05
Of course. I think it just shows you that two completely different styles, both are effective. So, Shaleen’s challenge was all about, so she’s very much into zone two cardio right now. This isn’t a fitness podcast, we’re not going to go into all of those things, but basically brisk walking can get you into zone two cardio, which has been shown for people who especially are in those 40 to 60-year-old bracket for females.

27:32
is the of the cardio that you should be focusing on to maintain weight, health, everything. So you know I love her. I’m a huge fan. No shame in that. But I also feel like she’s a bit scatterbrained, right? She’ll send out links that are broken. She makes mistakes, which is very much part of her charm, right? The fact that you feel like, we would be best friends if we were neighbors, right? Which I feel like if Amy was my neighbor, I would literally never see her. She would park in the garage, you know?

28:02
That’s 100 % correct. She would take her garbage out at 10 PM so no one can talk to her. That’s just my impression. She’s probably a very nice person. I don’t know her personally. But Shaleen just has that like, we would be besties sitting on the back porch drinking our champagne. So her challenge was a two-week challenge, which I also think is another strategy. So you can do these shorter. You can do a one-day webinar. You can do a week-long webinar. We’ve experimented with anything from a day to a week.

28:31
Shalene had a two week challenge to basically increase the steps that you walk every day. And so with her challenge, it was totally free. And I wanna talk, don’t let me forget to talk about her verbiage that she used at the end of the challenge. Cause I think this was so impactful. So it was walk every day and each day you got an email in the morning with, so she had a kickoff call. the challenge started on Monday. She had a Sunday afternoon kickoff call where she talked about.

28:58
kind of the goals and why you should be doing this, but you were already signed up, so you didn’t really need to be sold on it. But it was a live Zoom. So interactive with her, feeling like you were, you know, basically a part of this community, which I think is very effective, right? But then you didn’t see her again for two weeks. You got an email every morning in your inbox with an audio recording. Oh, nice. Which I’m like, genius, you did all of this in December.

29:26
Right? Right. Although Shalene probably didn’t, but some people would do it in December. So every morning you got an auto recording on some topic that would be applicable to wanting to feel better in general. So one day it was about hormones. One day it was about improving your energy. One day it was about zone two cardio. One day it was just like a, let’s check in. Let’s do a mindset check. Here’s the other thing. Not every audio was from her.

29:55
So of the 14 days, the audio from her was probably six days and the other eight days or seven days were other people in the industry. Like there was someone that did a talk on like food, right? And how you eat and the types of food you eat. And that was someone who is a nutritionist. There was someone who talked about energy and she was a personal trainer, like, you know, the qualifications to talk about these things and also had a large social media presence. So all these people that talked,

30:24
and gave the recordings, not only were they certified experts, because we’re talking about health, so that’s important, but they also were, either had written a New York Times bestselling book, something like that. So they were people that if you hadn’t heard of, knew them personally, like if you didn’t know exactly who they were, you had heard of them. So not only that, she didn’t do all the work, right? She had people, you know, so each day you got this training in the morning of like basically a podcast to listen to, but it was about 15 minutes.

30:53
And then she also had things like, if you’re gonna take a 15 minute walk, here’s something that’s 15 minutes long to listen to, then here’s a 30 minute talk to listen to if you’re a 30 minute walk, 45 in an hour. But all of these came via email. So pretty smart because she got everyone’s email address to even get in the challenge, right? Okay, this is ingenious because it’s a walking challenge. So you’re literally supposed to listen to this stuff that she recorded as you’re walking? Yes. That’s smart. Yeah. Super smart, right? Yeah.

31:22
And each email was very personalized, right? It felt, you know, I don’t know if she wrote them or not, but it felt like it came from her. She included some menu plans. So if you wanted to also improve the food that you eat every day, she had two weeks of menu plans. And I think there was an option to pick from like a vegetarian and a non-vegetarian. So two different options for that. And they were decent meals. Like I printed out, I looked at the meal plans. They were good. You know, it wasn’t…

31:51
It wasn’t thrown together, all very well done, graphically, design-wise. Oh, OK. Yeah. So it wasn’t just like a Word document with a bunch of recipes on there, because it was a menu plan, a shopping list, things like that. All things you can create in Canva. So not out of reach of anybody. All right, so I’m curious how you can monetize a walking challenge. Oh, genius. Genius, right?

32:17
And the reality, so I did the challenge. was like, you know what? You know, I’ve been like fighting all these like energy and fatigue and stuff. And I was like, and I am, you know, a runner, but running has been so painful for me for like the last year that I’ve just kind of stopped. And I was like, you know what? I can walk. Like I walk anyway. So I was like, I’m going to do it. I’m just going to do the walking challenge. And so every single morning, I, the first thing I did, I have a TikTok about this actually that I’m going to post in April.

32:46
Yeah, I know you’re saving Cause I’m holding on to it. Every morning I got up and I literally kept my shoes and my workout clothes hanging on my treadmill. And I got up every morning and I got on the treadmill and I did 30 minutes on the treadmill every single morning. And I even did it when I was working. I did it at Kim’s house. Like I was very consistent about it. And so it was funny cause she had her like last, her zoom call last night was like the wrap up of the challenge.

33:15
And she’s like, I know not everybody was perfect. I was like, you know I was. I did, cause you what I I’m like, oh, don’t, don’t dare me. I’ll do it. So, but it’s crazy. Like, and just like, this is total side note, but like do it, getting up and walking at like a brisk pace for 30 minutes. And some mornings I did more, but 30 minutes was like my minimum. I have had more energy the past two weeks than I have had in two years. It’s nuts.

33:42
Like it’s completely shifted my metabolism. I don’t know how or why, but it’s ridiculous. And then I also like do the walking desk too. So then I would get the rest of my steps in front of my computer. But I made sure I started my morning and that they recommended that like they’re like, anytime is better than no time. But like, if you can do it first thing, that’s actually really effective. So she does her final, oh, sorry, go ahead. No, no, no, I was, I was going to say get to the monetization part.

34:09
Yes, anyway, side note, get up and walk for 30 minutes in the morning. So last night she has her Zoom call, the closing call, where basically it’s her telling everybody how proud she is of them. And she has, of course, all this social proof of people who have seen changes, whether it’s energy, weight loss, feeling better. Oh, sorry, is there a private Facebook group associated with this? No, she just tells people to message her on social media. Oh.

34:37
or reply to emails, but she’s got all the text, right? So just think about this. She did the kickoff Zoom call on day zero, and then she did the kickoff or the closing Zoom call on day 15. Everything else was pre-done. So like very little, like as the challenge is going work. And then during the call, she was basically like, if you’ve seen any change, right? If you felt better, if you enjoyed blah, blah, blah, join my Phase It Up community.

35:07
for $14.95 a month, you can get my exact workouts, all of the meal plans, all the mindset, podcast, everything, all done for you, or you can pay $99 for the year.

35:24
Genius, absolute genius, right? Because anybody who felt anything, right? Anybody who had any improvement over those two weeks is signing up. Because you’re like, well, if all I did was walk and I feel even a little bit better, what in the world would I get if I, because she provided so much free value with like the trainings and the certified people coming in and giving those mini podcasts in the morning. It was almost like people were running up to her to buy it.

35:55
So for $100 a year, that implies that she’s constantly adding new stuff or? See, don’t think she’s, I mean, I don’t think she’s really adding a whole lot of new stuff. Cause like once you have your workout set, like you don’t need to re-film that. Like once you create like 30 days of meal plans, you’re not coming up with 365 days of meal plans. Nobody makes that many meals. I guess what I’m asking is it’s recurring. It’s, so yeah, it’s $100 a year or $14.95 a month.

36:23
And so there’s, in that community, there’s new information’s obviously being added, new, it’s mostly audio trainings, right, or video, but there’s not, it’s not anything that, I don’t want, I’m not saying this in a negative way, it’s not anything that’s like, oh, this is gonna take me hours and hours and hours to create. It’s basically just, I think the biggest benefit to joining something like that would be the accountability. The accountability in the community? Yeah.

36:53
Essentially. It’s interesting. Yeah, and actually that’s, it sounds pretty cheap. $100 a year sounds like nothing. Oh, I signed up. I was like, a hundred bucks a year. want in and I want to see what you get for a hundred bucks a year. So I signed up, you get in, you immediately get a personalized, like it asks you like series of 10 questions. So there’s a quiz, right? And then you get personalized stuff based on the answers you gave to the quiz. But the amount of people,

37:21
that you saw on the comments, things like that, in her social media was insane of people who were just all in on this, right? Because it was something easy. so the two things that stood out to me was it’s not hard to walk. Most people can do it. You can walk around your block. if you, mean, like, Leon’s a perfect example. He lives in Iowa. He goes on walks every day. It could be five degrees. He goes on walks, right? You can walk anywhere you live, basically.

37:50
And so the success rate for that challenge was probably really high for people because it’s not that difficult to just get out and walk. If you have people motivating you, cheering you on, you have people to listen to in your headphones, things like that. The other thing that she said, which was I want to talk about from before, was I was thinking about Amy Porterfield and people just being irritated. Yep. So Shalene was like, I am so how did she word it?

38:18
She’s like, am so thankful that you could be our guest in this challenge, but we’d like you to become a member. You’re a guest in the free challenge, but you’re a member if you join the community.

38:33
Like I was like, oh, that was good. Like make a note of that, because I want to use that in something. But when you think about it, you’re like, yeah, I was a guest. Like my friend invited me to the country club. I was a guest. But then you can join the country club or whatever it is. Right. That verbiage just made so much sense. And it was like, I was a guest. I, know, as soon as she said that, I was like, oh, 100 percent. Great job.

38:58
Yeah, I like Shalene’s method so much better. She’s very personal. She’s very personal. And throughout the challenge, like if you followed her on social media, and most people probably found out about it from social media, so they do follow her. You know, she was posting questions every day, polls, quizzes, she was answering questions, you know, all in these like short little stories, right? So if you think about the time spent to do those, 10 minutes.

39:27
Right, 15 minutes of just like, I’m gonna pull up my phone and I’m gonna answer a bunch of questions and post. Not hard at all, right? But kept keeping that engagement going. But I think the thing that I took away from hers so much was that she made it really easy for people to succeed and feel like they won. And so then getting them to convert was so much easier. And so as a content creator or as an e-commerce seller, like how do you create that for your potential customer?

39:55
how do you create something where they can win? Because I think that’s the biggest hurdle, right? It’s the same mindset thing, just presented in a different way. She got people to feel like a winner, and so they were very willing. mean, 15 bucks a month, like that’s coffee for people. And so how do you do that as a content creator or as an e-commerce seller, where you give people that feeling of winning to take them from a subscriber to a customer? Yeah, if you watch…

40:22
or listen to Alicia’s episode on this podcast, Alicia Rinozo is her name. She did the exact same thing. She did a fitness challenge and people just wanted to buy her water bottle because that’s what she was using the entire time. Then I think she probably made some affiliate revenue too off of certain things that she used for fitness. Oh, yeah. I’m sure she’ll lean. Well, Amy does write with ConvertKit. Yeah.

40:48
Then Shaleen does because she recommends supplements and other sorts of things that all have an affiliate relationship. I think the difference between Amy and Shaleen in this case is I think Amy’s teaching something much more difficult to get a quick win on. Yes. Right? Yes. The quick win is to get your first subscriber, let’s say. Yes. There’s work involved in the setup, whereas with Shaleen, you just go outside. Yes.

41:16
I mean, it’s true. Actually, I Amy’s quick one was to set up your lead magnet. That was the impression I got that she felt like the quick one was, which I also think can be problematic if you set up your lead magnet and then you don’t have a subscriber. Because I did see some people asking that question in the Facebook group of, okay, I did this, but how do I get people to come to my website? That was a common question that was asked in that group. It makes me think about, we’re going to do this challenge with our course in April.

41:46
30 videos in 30 days. That’s a tough challenge, but it’s only for members, right? It’s only for people in the group. But how do we do a challenge for people to get them in the group that is something where they can have a win? Because I think when you get the win, the sale becomes so much easier. It’s why the car salesman wants you get you in the car to drive it.

42:09
As soon as you get in and you smell that new car leather and you push the gas pedal in the car, it accelerates like crazy. Meanwhile, your clunkers over there are barely getting anything. It’s just more effective for people. I think this short form video challenge is pretty easy to do for the masses too. I think it’s tough. Because you just pick up your phone and you just say something that’s on your mind. Yes. It’s tough because it’s video. If it was audio.

42:37
Or if it was Twitter, for example, where 30 days you put out one tweet, that’d be the easiest, I guess. But I don’t think you’d get the same level of results. No, I don’t think you would.

42:48
Yeah, you know, the lead magnet, like my lead magnet, for example, probably took me like a month or more to put together. So I guess it just depends on, you know, because I had all those videos. have a six part video series, right? Yeah. As part of my lead magnet. So I guess it depends. Even if you’re just giving out a PDF or something like that, it’s still like probably a week’s worth of work. Yeah. weekends. I don’t know, depending on the level.

43:15
I like both of these challenges. I’m not a huge fan of the gating part of Amy. But on the flip side, it works and she’s much more successful. I mean, yes, she had at least 2,000 people in the $37. Yes, so I don’t know what the math is on that, but it’s not bad for your free webinar. I know that is crazy how she’s able to do that.

43:42
I mean, she has a huge list. She mentioned what it was before. Was it like 300,000? I don’t know if she mentioned it, not on what I’ve watched. And of course, replays go down today, so I won’t be able to tell you. I do know that when I did this with her before and I paid for the VIP because I was so intrigued by this concept that on the VIP chat, there were 1,800 people.

44:11
Wow. That’s nuts. Wow. Yeah. All right, guys. No more live chat. No more questions getting answered. Only the VIP. We’re going to be aloof and non-personal for $99. You can sit with us at lunch. But I think the one thing that I really took from both of these because I don’t…

44:37
What I, well, actually I took a couple things. One is I don’t think there’s a right or wrong way to do something. I think both of these challenges were completely different, right? mean, Shalene literally sent an email with the audio recording, which is genius for what she was giving for walking, right? Because that’s easiest thing to do. But Amy was live every day, right? So two totally different things. Shalene’s was two weeks, Amy’s was a week. Very different. The mindset factor. So important.

45:06
Because I do think that’s why people don’t buy. It has nothing to do with the fact that the product isn’t good quality. It’s that people aren’t ready to make that buying decision because of whatever presupposed ideas they have in their head about themselves. 100 % agree. You have to believe that you can do this. Yeah. I’m just, maybe I should watch these videos. Because why not just do the mindset right before you go into the presentation?

45:35
for the first 15 minutes. She purposely did the mindset part first, made people wait 45 minutes or however long it was for the real presentation. And people, thank you for reminding me of this, because I’ve got a lot of mindset stuff, material, actually. I just never really thought it was… Because it’s stuff that I don’t need maybe, you know what I mean? As much. Well, well.

46:04
I mean, maybe I do, but I, you know, like if I want something, I just go do it. Right. And sometimes I, okay, here, here’s the example. Like I just discovered in these past two or three weeks that I don’t like doing any, I’m much less productive when it’s raining outside. Interesting. You live in the wrong place. Well, no, I live in the right place. You should live in Hawaii. Oh, well, Hawaii, rains every day actually. Yeah. But in the afternoon doesn’t count. So I’m sitting here like these past couple of weeks.

46:33
I’ve literally had to force my, well, plus I’ve been sick too. But during that period, I actually got some stuff done because I had to force myself to do it. And I can do that probably for maybe six months or so. So as long as it’s not raining for six months. So, you know, my point is, I think I’ve just was brought up to always like, I don’t want to the word suffer. It’s suffer. I don’t want to use the word suffer, but

47:02
I’ve gotten used to the grind and just sludging through everything. Maybe that’s why. I talk about that in the mindset stuff, but people aren’t interested in Asian parenting. They don’t want to take it on themselves. Here’s where I think the difference is though, because yes, you are used to the grind. I think most people are actually used to the grind. I think that the benefit that you had, especially when you got started, is you actually had a job you really liked.

47:32
So you weren’t, think about most people that we interact with. They grind for eight hours a day and then they’re gonna come home and grind for three hours or two hours, where it’s just like, I’m losing at work. I feel like people don’t appreciate me, don’t value me. I’m underpaid. I have no vacation, whatever it is, right? I hate my boss. And then they come home and they’re trying to figure out something that is completely foreign to them.

48:00
Most of the people that we encounter have zero experience in e-commerce or creating content. They’ve never been on a WordPress site. Like when we meet someone’s like, I’ve had a WordPress site for seven years, we’re like, yes, you know, but most people don’t. They don’t know that you can get products from Asia. They don’t have any idea that what display advertising is. It’s like absolutely like learning a new language. And so there’s a grind all day and then there’s a grind all night. And I think

48:28
humans can only take so much grind, right? Which is where the mindset comes in and those quick wins. And like, I think we as like course providers probably need to do a better job of the quick wins for people because you and I are both grinders, right? We can do this all day long, all the time. But most people don’t have our personality types. And then when we don’t wanna do that, you and I both are the same. We’re like, I don’t wanna do anything.

48:57
We’re completely extreme. We either are like, will grind it out as hard as long as we have to. Then it’s like, I’m not doing anything today. There’s no middle. I think for most people, they don’t want to grind all day at work and then come home and grind on these things that they don’t have any knowledge of. All right. I’m reviving the family first challenge. That’s right. Mindset training is coming back. I got to remember what I said in those because I did those all off the cuff. Oh, did you?

49:26
I did. Okay. People are going to be excited. It was live and interactive. I think they’re on StreamYard still. I got to find them.

49:37
Hope you enjoyed that episode. Now, if you want to know more about challenges, make sure you watch Alicia Rinozo’s presentation at Seller Summit 2023. More information about this episode, go to mywifequitterjob.com slash episode 521. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go over to sellersummit.com.

50:06
If you are interested in starting your own eCommerce store, head on over to MyWifeQuarterJob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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520: Blog Apocalypse? Can A Pure Blog Still Make Money With Jim Wang

520: Blog Apocalypse? Can A Pure Blog Still Make Money With Jim Wang

Today, I’m thrilled to have one of my good friends back on the show, Jim Wang.

Last time Jim was on, we discussed how his first blog, Bargaineering, sold for a seven-figure sum.  And since then, he’s created Wallet Hacks, where he teaches others how to make and save more money.

In this episode, we’re going to discuss the state of blogging and his predictions for blogging going forward.

What You’ll Learn

  • How to make money blogging today
  • Is blogging dead?
  • Would Jim start a brand new blog today?
  • Check out Jim’s site Wallet Hacks

Sponsors

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Transcript

00:00
You’re listening to the My Wife Quarter Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Today, I my good friend Jim Wang back on the show, and Jim has created and owned several seven-figure blogs over the years, so I invited him to come back to give his take on the state of blogging as a business in this day and age. But before we begin, I want to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com.

00:27
and ticket prices are going up on Friday. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online and unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business. Entrepreneurs who are importing large quantities of physical goods

00:54
and not some high level guys who are overseeing their companies at 50,000 feet. Now I personally hate large events, so the Seller Summit is always small and intimate. Every year, we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s gonna be held in Fort Lauderdale, Florida from May 14th to May 16th.

01:23
And right now, the tickets are gonna go up in price this Friday. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 50 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still grab my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube, and podcasting when you grab the book over at mywifequitterjob.com slash book.

01:53
So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:06
Welcome to the My Wife Quitter Job podcast. Today I’m thrilled to have one of my very first podcast guests back from 2014 back on the show, Jim Wang. Jim is a long time friend and mastermind buddy who I met at FinCon over a decade ago. He’s the founder of Wild Hacks where he teaches others how to make and save more money. His first blog, which was the subject of the last episode, Bargaineering, was sold for a seven figure sum, I think back in 2016.

02:35
And I thought the guy was retired, but then he decided to start Wallet Hacks, which turned out to be even more successful. So Wallet Hacks has been featured in Forbes, MarketWatch, CNBC, US News, Business Insider, a bunch of publications. And I’m actually doing a little segment on blogging on this podcast for the next month. And Jim is one of the pure bloggers that I know personally who is killing it. So welcome back to the show, Jim, after a long time.

03:05
Thanks, man. It’s a pleasure to be back. I was good seeing you a couple weeks ago, and I know we’ve kept in touch pretty closely over the years, but I never really asked you this question. You and I, we have similar personalities and that we’re family men, and we use our businesses to free up more time. We’re not trying to start the next hundred million dollar company. So back when you sold bargaining long time ago, you made a lot of money and you had this really cushy life. I remember we were chatting.

03:33
you messaging and you were doing nothing. And I know you have a pretty cushy life now too, but why start another personal finance blog? why did you create wallet hacks? So it’s funny. It turns out I sold bargaining in 2010. Oh, 2010. Okay. 13 years ago. And so what happened was, is I, you know, I worked for the company that bought it and then

03:58
started like just dabbling and doing other internet type of things. And it’s actually wallet hacks that got started in sort of like that 2015, 2016 timeframes. So it’s probably why you have the dates in your head. And yeah, it’s a cushy, like, you know, one of the things that people often don’t talk about is that when you quote unquote retire, like you have to find, you still have to find something to do. Like I now experienced this myself when I sold the site and I thought, oh, wow, I’m all set. don’t have to do anything.

04:28
I saw this with my dad when he retired, you know, he’s like, ah, I still have to fill my time. And my dad loves the golf. I need to golf all the time. But after a while you’re like, okay, I did that. Now I need something that, you know, you’re, trying to grow and build and get better at. after a few years of sort of dabbling on the internet, I thought, you know what I was good at and what I really enjoyed was writing and writing about personal finance and also like a bit of like an ego.

04:58
stroking, boosting thing, like getting emails from people saying, hey, this was really helpful. And it’s kind of nice to get that. And if you retire and just play golf and just play like some games and whatever, like you don’t get that type of feedback. And it’s, I don’t know, like I kind of liked it. So I thought I’d go back and do the same thing. And the beauty of it is that the first time around, when I started bargaining, I never thought I have to make money with this because I had a great full-time job.

05:25
working in the defense industry with security clearance, like I could do that for decades. And then now with the new site, I thought I don’t need to have it make money, right? So there’s none of the pressure. so it was probably those, lack of acute pressure, which may go against everything that business books say about like burning your shifts and like bridges and whatever, to like give you that pressure. I feel like that let me build it the way that I wanted to without.

05:54
the constant like 80 hour weeks and stress and that type of stuff. So what does it mean to build it the way you want it to build? Like how is this site different than bargaining ever was? So it was, it’s similar in that I approached it from the mindset of I want to write about various topics to help people to sort of scratch my own itch. I was interested in a subject, didn’t know much about it. As I dig in, I’m able to write about it. If I’m able to, you know,

06:24
the old adage, if you could teach it, then you fully understand it. And so I tried to approach content in the beginning from that perspective. And by doing so, you don’t fall into a lot of the traps that, one of the things you see now for those that follow sort of like niche sites and things like that, a lot of them were built to be side hustles to earn money. And so they’re very much SEO optimized. And you saw a lot of them get

06:51
in some ways punished by recent updates because they were a little too laser focused in how they were executed. And, you know, that’s not to say that we don’t pay attention to SEO and that we don’t aren’t laser focused ourselves. It’s that those aren’t the only things that we focus on. And I think it’s that breadth that makes it one fun to do and then to maybe a little more protected from sort of the whims of the Internet.

07:19
So basically the topics that you write about are not all keyword focused now. Is that what you’re saying? In not so many words? Correct. Yeah. Yeah. The way I approach content is I sort of fill it into three buckets and you have the bucket where I want it to make money as in I write it. It may be keyword focused in the sense that, this will drive affiliate revenue so I’m gonna sign up for a bank or a credit card or something because they read a review.

07:47
Another one is if I think it’ll gain a lot of traffic. So it may not itself be a valuable, financially valuable keyword, but it’ll draw a lot of people to the site. Maybe they’ll sign up for the newsletter and I can build a relationship. And that’s actually the third category, which is I sort of write things that I find interesting that they’re not going to get any search traffic. The only way they’re going to get read is probably because I shared it either through email or on social media. And I just want to write about things that are interesting.

08:16
and build that relationship with the reader. You know, it’s interesting. I used to do a lot of those types of posts, but just Google and the way it’s evolved over the years has forced me to stop doing that because I don’t like writing something without anyone reading it, right? So give me an example of one of these posts that you’ve written recently.

08:39
Uh, let me think. So a prime example, this isn’t recent, but so everybody in personal finance talks about, you know, net worth and tracking it and all that. So one of the things that did well when I sent it to the email list was a article just talking about, uh, the things that I learned tracking my net worth over 15 years, I guess now this is an old post, I suppose, over 20 years. And that doesn’t get any search traffic. Yeah. It doesn’t get.

09:07
It just, whenever I email it out to revisit it, that’s when it gets traffic. The other benefit is that other bloggers will read it. And this is like interesting. No one’s ever going to link to your bank review. Yeah. Right. Realistically. And so, but they will link to an article about things that you learned. Uh, another one, actually, this is the most recent one that I wrote. There’s, there’s a concept in sort of like the early retirement crowd where you set up.

09:36
your personal finances and then there’s a thing called the boring middle as you wait to accumulate enough wealth to retire early or whatever. And so that boring middle is something that people just have to endure where there’s nothing you could do to advance it. You just now wait for your income and your investments to grow enough. And so the article was just, said, the boring middle is bullshit. It’s only boring if that’s the only thing in your life that you’re focused on.

10:00
Right. So once something’s on autopilot, yeah, if you sat there and stared at the autopilot, like it’s really boring because there’s nothing one, there’s nothing you can do. And two, there’s nothing you should do. You just leave it there. So I suppose it’s just saying, oh, now go do something else. Do something fun. Entertain yourself. You’ve now we’re laser focused on setting up the system. Now let it run and then go do something else that it’s not going to get. No, no one’s searching for boring middle. Yeah. No, like, but people have emailed me.

10:29
and sent me the apps on Twitter that said, oh, that was a great article. They’ve linked to it. And that those have business benefits. But I wrote it because I thought it would be something interesting to share. You and what’s important for me is that writing those like product reviews, like things that make quote unquote, make money are not as interesting and not as fulfilling as writing these other types of articles and

10:56
So in order for me to keep doing this for a long period of time, I have to sort of scratch my own itch and do that instead. makes sense. So are you doing a lot of their own writing on wallhacks? I do. We have freelance writers. We have a few freelance writers and an editor. They tend to write the stuff that I’m less interested in. So like the reviews and especially with how Google appreciates reviews. do you want like screenshot, like hands on showing that you use the product.

11:26
And I really don’t want to open up a bank account to get like screenshots and walkthroughs and get like that, the more authentic review content. But so that’s, that’s what we have writers to sort of focus on. Okay. So I like your balance. you have the writers write the articles that you don’t want to be writing that probably make money. And then you focus on building the relationship side with, with the more personal articles. Yeah. All right. What is your writing frequency? Just curious of yourself.

11:56
It’s kind of when I feel like it. Nice. And so it tends to be a little more than every other week. Oh, okay. I want to have one arc. So I sent an email out every Wednesday and I want to have something interesting in that article. Sometimes it’s, it’ll be a topic that was assigned to a freelance writer, to one of our writers to write. And, you know, so for example, like a timely article say it’s close to Thanksgiving. Maybe I’ll send out how to have Thanksgiving on a budget.

12:26
or something like that. And then other times when it’s like, all right, so we only publish at most three articles a week. Right. So if a couple of them are, we try to do Monday, Wednesday, and then sometimes Friday. I don’t like pumping out a ton of content. Though from what I read about folks that are doing programmatic SEO and like AI driven content, apparently pushing out tens of thousands of articles doesn’t necessarily hurt you.

12:54
Yeah, depending on who you are and the space that you’re in. But so we do two to three. And so of that, you have to pick one that I think has a broad ish appeal to the to everyone. And then other ones that maybe are more niche. Yeah. Let’s back up a little bit. So how does the site make money? It is primarily affiliate revenue, with different merchants, and then a little bit of display ads.

13:23
Like a very small percentage. then is it just affiliates with financial institutions like banks? It’s a mix. They’re all financial in nature, I guess. So you’ll have like side hustle things like a little bit of tax, mostly banks, a little credit card, some investing, sort of like the crowdfunded investment stuff, like your fund rises and things. Yeah. But it’s primarily that.

13:52
And then you get a cut of the sale whenever someone signs up or are some of those traffic related where you just drive clicks or leads. So it’ll be a mix. Most of the affiliate ones are. It’s a payout based on whether or not they apply for or are approved for. You know, the programs are all different for an account. And then some are based on a cost per click. Here’s a funny story. I don’t know if you remember this, but you’re like, Hey, Steve, give me your ing affiliate link.

14:21
or something like that. And then you put it up and then all of a sudden I made like 300 bucks and you’re like, okay, well that one expired. Or there was a Southwest offer too, I think, was that through you? Probably. Where you’re like, Hey, let me just put your link up here. Cause there’s, there’s a limited amount and you gave me all these like free miles or something like that. Yeah. Yeah. No, that’s a great way to build friends. You Bob is like, yeah. Do you feel like cause 300 bucks.

14:51
cheaper than average. No, I’m just kidding. Yeah, so actually, one of the things we did with bargaining that we don’t do with wallahacks is I used to give we used to have this loyalty point system. And you would get points for commenting, it’ll sort of like generate more activity on the site. And as one of the things that people get as a reward is I would use their IMG direct referral, because back then,

15:17
not a lot of banks had referral programs, but I was writing about the things like I still have an ING direct, now it’s Capital One, 360. But I would just write about it then it got traffic. And I was like, well, I’ve used up my referrals, I used up my wife’s, I started just asking around all my friends. And a lot of them were like, like friends locally, they’re like, I don’t know about that. I’m like, all right, don’t worry, I’m not here to convince you. I’m here to give you money. If you don’t want the money, that’s fine. I got plenty of internet friends.

15:47
And actually, there are people from the bargaining days that I remember doing the same thing with you, regular folks that would email me that are subscribers on Wallet Hacks now that like followed along. And I was like, all right, that was a worthy $250. All joking aside, like I’d rather someone get the money. Otherwise that link someone signs up, no one gets the money. And then, you know, this way everybody’s happy.

16:13
Yeah, but the referral thing anytime you can obviously anytime you give some money, they’re going to be very thankful. And that’s one of the sort of personal finance and sometimes other niches. One of the nice things is that when people sign up for various products, they actually get something. Whereas if you in and don’t know in electronics, if you have electronics blog of some kind in order for you to make money, someone has to buy so they have to pay for you to get paid and finance.

16:42
We all get paid and everybody’s happy, which makes it such an easier sell. The only hard part is electronics, if you have a credit card, you can buy it. In finance, if you don’t have a good credit score, you can’t. But then on the flip side, you can direct them towards credit building programs or just articles on how to get better credit. And so you can still nurture that relationship a little bit. You know what’s funny about our mastermind group that we belong to? I’m like the oddball out because I don’t really write about personal finance.

17:10
It seems like all of you guys are competing for the same rankings for a lot of the same keywords, right? And it’s a super competitive area. If you were to start all over, like if someone’s listening to this, and they’re like, Hey, I want to start a personal finance blog. Would you do that today? Do you think it’s too competitive? Or what are your thoughts today? And just blogging in general? So I think that you have to have a long time horizon at no pressure.

17:41
because it takes a long time. The reason is because if you think about personal finance and the obvious ways to make money, they’re all very big in the sense that like, they’re all very big and competitive, like credit cards, banks, insurance, mortgages. Like wallet hacks is what now, eight years old, I don’t do any loans, I don’t do any mortgages, I don’t do any insurance, I do very little credit cards.

18:09
The only credit cards I the sense that I don’t compete in search and I don’t I don’t do any paid rate paid advertising right now. But I can’t possibly convert compete with, you know, the nerd wallets of the world. Yeah, the you know, all the like the times and then, you know, all their their commerce platforms. So that’s where the big money is, but you can’t play there. So where do you play? You play in say you start a blog.

18:37
and you share about, you know, the smaller fintech apps that are out there. Maybe you try one, you write about it, you do a review. And those there’s those CPAs are like $10, $20 versus a credit card is 150 to 200. Right. So you just have to be very patient. Is it possible? I think it’d be difficult to do strictly a blog. I think what you’ve seen the last these last four years, five years, a lot of people building up massive businesses.

19:06
using social media and being lucky in that they chose TikTok and not Lime or whatever. The right platforms that grew.

19:19
So it’s not the content, it’s the platform and then being nimble enough to figure it out and just have enough experimentation.

19:30
I just wanted to take a moment to tell you about a free resource that I offer on my website that you may not be aware of. If you are interested in starting your own online store, I put together a comprehensive six day mini course on how to get started in ecommerce that you should all check out. It contains both video and text based tutorials that go over the entire process of finding products to sell all the way to getting your first sales online. Now this course is free and can be obtained at mywifequitterjob.com slash free.

20:00
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

20:11
I mean, before we got on, I asked you, hey, are you doing anything outside of blogging, whether it be YouTube? You used to have a podcast, which I enjoyed very much, but you’re doing a pure blog. And you know, with AI, were just, we were just talking about how some of these sites are pumping out like 10,000 articles a month or something crazy like that. And it’s just turning the whole space into just one big garbage heap of AI generated content, right?

20:38
so I guess what I’m asking is, do you feel like you’re gonna have to, you know, maybe make like a YouTube channel or be on social media? Like what are your thoughts on looking forward maybe three to five years? That’s a good question. I don’t know. It’s a short answer. The long answer is I…

21:00
I feel like I’m late to like the, to TikTok, to the TikTok, to TikTok and like some of the other platforms. Uh, there’s like a saturation point there that maybe I don’t have enough time to figure out AI. It worries me less AI directly than it does what it’ll make the platforms, various platforms like Google do in reaction to it. Right? So Google is.

21:30
constantly changing their algorithms with core updates now, know, two months in every month, Yeah. It’s in part in response to AI, but also like a lot of the various black hat things, like people doing Parasite SEO where they buy sponsored posts on high ranking sites to sort of get their content up in the results pages. I think it will make the sort of run of the mill

21:59
reviews and listicles and everything like that that doesn’t have like a personality to it a little less valuable, but one of the One of the features of AI is that you know, it’s a large language model it it can take all of content and like Reassess it whatever not really think about it, but like reconstitute it, but it doesn’t create anything new yet I suppose and so maybe those like thought pieces

22:29
Which on the whole, maybe I don’t think that I am such an original thinker that anything that my brain comes up hasn’t come up before. And so in that regard, it’s probably no different than AI. But I think articles like that, where you’re able to build a connection and build a following is going to be more valuable. Now, does that mean I need to try to push the B in different mediums like audio and video? It probably does on some level. I’m just not sure what it looks like at the moment.

22:59
And one of the things that I’m thinking about is hiring more people to handle more of the day to day and thinking about sort of the near term future only in that that gives me more white space to think about these problems more. Right? Like when you’re, when you’re in the hustle bustle, like doing compliance updates and, all the other things that co go with running a site, you don’t have the like space to think.

23:26
five years into the future. could think one year in the future, but maybe not five. And that’s, that’s sort of the timeline you have to have with technology like this. So given all the AI stuff that’s going on, and I’m sure you’ve been following a bunch of these other content sites that are pumping out all this content, what do you see? Well, let me ask you this. How do you rank your posts? We write them and then we link them internally. Okay, that’s

23:56
pretty much all the like hands-on SEO. We do keyword research and so we will focus on subjects that are relevant and that fit into our to like content map so that when we do publish it it has a natural fit. Right and it goes in the right bucket. You mentioned an email list. Does that become more of your strategy? Because it’s funny among our mastermind group it feels like a lot of the guys still aren’t paying attention to email that much.

24:26
Yeah, last year, we started adding in some technology that will give that gave us the ability to sort of have more insight into what people are doing. Because one of the things that we use currently we use active campaign, but this is the same for any email provider. But you just send out the emails and then you get maybe sort of in that bucket, or in that email world, like, oh, you know what they click on? Almost you know what they open. And that was it.

24:54
And so we added some tracking on the site where now we will know what they’re doing. We’ll know what they’re doing. Even if they didn’t necessarily come from email, like they, signed up and it’s giving us a lot of insight into behavior that I didn’t have before. And it’s showing me you’ll everyone knows how valuable email is, but until you assign a number to it, it’s like knowing the number somehow gives it more.

25:24
Gravitas, I don’t know gives it more importance. It’s like specific numbers people trust specific numbers more but if I’m like, oh well now if you track and you know a subscriber from here is now valued that whatever because your body of a thousand visitors says that it’s worth that much now you can actually take action on it and now getting someone on your email list has value and not just like in general Oh every email on the list of your 20,000 email list is worth two dollars

25:53
No, no, it’s not like that because it’s just like in the population. Some people are worth 200. Some people, people are not worth dollar amounts. But the lifetime value of an emo subscriber from this channel is worth $200 because they signed up on this page, but they’re only worth about $5 because they signed up on another page about like side hustles or something like that. So that level of granularity was kind of a pain to set up. We’re using whoopra. you using link clicky also? I am.

26:22
Oh, yes. Yes. I don’t know if you’re if you’re listeners are familiar with like, they’re not. It’s our mutual friend, Larry’s tool. We always make fun of him for the name of the tool. But it’s a funny name, but it’s like a more powerful, pretty links. And so yeah, yeah. Do you recommend a tool like that? If you’re not doing a lot of affiliate stuff for because it’s it’s expensive. Wooper is like 1000 a month or something. Yeah, yeah.

26:52
I would not. would. the wooper is nice because it gives you user behavior, but only a very small subset of those people are going to be on your email list. So what you’re able to do with it in terms of like, for example, one thing that we do is if someone clicks on an affiliate, like we put them in like sort of this flow where we wait a couple days, actually, I don’t think we wait at all. I think we wait like hours. And if they don’t become a lead, like the affiliate

27:21
company doesn’t or the merchant doesn’t tell us that they became a lead or a commission within like six hours, we actually email them and say, Hey, I saw you took a look at whatever. What did you think about it? Now, of the hundred people that are going click on it, maybe one or two are going to be on your email list. It’s like, it’s actually probably going to be like half a person. It’s like very small, but that gives you a little more insight into sort of what they’re thinking, what things they ran into.

27:52
It becomes even more valuable when you put an affiliate link inside of an email that you sent. Cause now everybody that clicks on that one is gonna, is gonna have this flow. It’s taught me a lot. It’s funny. Most people just like click on stuff and they look at it. They weren’t even really interested in it. They were just kind of looking around. That’s the most of it. And then the next subset is like, we will also send an email on some, some merchants will, if you, they’ll do, they’ll have multiple actions, right? You have the click, which I know.

28:20
And then they sometimes send the lead, which is like they put in their email address to get more information. And then the separate one, whenever they do the commissionable action, like they pay for the service or they whatever, we’ll send emails between the lead and the commissionable. It’s essentially we’re doing to find the e-commerce. The first step of click and doesn’t become a leader of sale is abandoned cart. Yeah, essentially. And then the lead to the sale is just sort of like that.

28:49
we’re kind of doing like their onboarding for them. exactly. You’re right. Because they should be sending out that. Yeah. So that’s essentially the analogy of what we’re doing. And this is what we brought and emails enables. Ah, that’s, I didn’t know that you guys were doing that stuff. Because I know in e commerce, that I do it all the time. Like I have, you know, repeat, so do you have it set up? Like if someone signed up for this one service, you refer them to other services that they might be interested in kind of automatically?

29:19
We do not yet because I see what you did. Cause I remember signing up for your emails and reading. Cause obviously whatever you’re doing in the e-commerce scene, they’re like multiple products. Like you’ll have a card and you’ll have like the merchant services or whatever. And that all makes sense. In personal funds, there’s less of a clear flow. So someone signs up for like a bank account. There’s no obvious like next thing. But I do, I do have to think about that some more.

29:45
The challenge is always that the numbers just get smaller and smaller. So like if hundred people click on it, I can only email one or two. So then out of the one or two, so after every hundred days, maybe I’ll get someone that means like the next thing. So it becomes a little too small. Uh, but it’s something to think about cause there’s definitely categories of products where people will sign up for multiple and we do take advantage of that a little bit by having them sign up for a sub email. Yeah.

30:14
You know, you could use one of those services where it’ll grab the email from someone just visiting your site and that way you can send them. I think you told me about that. Yeah, like three years ago, I was like, I think Bobby’s using it now. I think he’s having good results with it. But yeah, no, I see what you’re saying. That’s that’s really interesting though. And so both Wooper and Linklicky allow you to do these this tracking to such a fine granularity.

30:44
It’s actually Woopra that allows Woopra that does it. Link Clicky will do the redirects. It does a lot more than that, but the primary function for me is that it does the redirects and then it will go to the, and this is very important part of the process, is it uses the various APIs of the affiliate companies. So like your commission junctions or publicists and like Rakuten and Impact.

31:13
And we’ll use the API and grab the commission events. And then it’ll take those commission events and fill it into Woopra. That way I know in Woopra to tag this email and put them into a flow. And then the email will handle that. Interesting. So it’s like the Klaviyo of e-commerce. Woopra plus link clicky seems like, because Klaviyo handles all that stuff. It knows what people are putting in their code. It knows what people are clicking. And then you can guide them.

31:42
on different journeys based on what they’ve done. interesting. That’s huge. Because it’s not I mean, I think that level sort of customization has to increase lifetime value. Or even just per per card order, order card, whatever the term is, I don’t do ecommerce. Yeah, yeah. That’s right. So I know you read a lot of reviews and whatnot on your site. Do you ask for an email on every post also? And what is your lead magnet? Like, how do get them on?

32:12
Ha, you will love this. Actually, you will not love this. My email strategy is one, it’s a pop up that says, hey, join my email list. I think I say like you get like a money toolbox of like tools that I use. It’s not really a lead magnet. It’s a pop up. then the there’s a on some posts, there are forms in the middle that will say sign up for the and there’s those are generally like

32:41
more specialized, right? Email lists. So you want to get information about credit cards or banks or something on a post about that, it’ll have a fill fill out of a form. One thing we also do, which I did as sort of like a fun thing to see if it would work. If you don’t sign up, and you show back up within the next week, I will send you a show another pop up. It’ll be different. It’ll be a little creepy and say, Hey, I don’t see like the site.

33:10
Does that work? You should yeah it works. Okay I haven’t tried that one yet. It’s like it gets like a it gets a marginally higher conversion rate than the first pop-up. Grant it’s a smaller population. Right. But it gets a little but it still gets people. I had to like play with it a little to be like not creepy. I was like hey and I tried to make it like all cheery and not like hey I’ve been paying attention. You keep coming back. That’s funny.

33:40
That’s funny. So walk me through like your plans for wall hacks in light of everything that’s going on. And I know for my blog, I’ve chosen to go all in on video. I’m still going to do the blog and it still brings in the majority of my email subs and it’s my home base. But I feel like, you know, with all this AI content being spread and all this noise, it’s even starting to happen in like the audio space in the video space.

34:09
like you see all these faceless videos on YouTube. I feel like the last bastion of content is going to be video. What are your thoughts? The thing that I, I think that’s a good strategy, but I think to myself, okay, like a regular person that doesn’t spend a lot of time on the internet, right? When I watch YouTube, I’m watching entertainment. I’m watching the Mr. Beast videos. Like no, nothing against.

34:37
His videos are just pure entertainment. It’s like people playing hide and go Like people that I suppose the audience likes playing hide and go seek and like doing these fun challenges. I don’t know how many people are sitting there watching videos to learn something in the, you know. I still think that when people have questions, they will go to Google and Google it. Or they go to YouTube if they want to get instructions on how to fix something in their house or on their car. I think video is just too slow.

35:07
for things like investing and where you’re trying to answer a specific question. I think it’s different when you’re just like scrolling on your phone, like you’re lying in bed and you have like, I don’t know, Tik Tok or Instagram, whatever, reels and shorts, and you’re just watching. And maybe every software you discover like something new and you’re like, oh, that’s cool. I’ll try to remember to like Google that tomorrow. So I think video is good from a discovery perspective. I don’t know if it’s as good from an answer question.

35:36
perspective, but then the struggle is as a smaller site, I’m not the one that they get to when they search for like how to do anything with a Roth IRA, like they’re gonna get some other site. So on one hand, think, okay, if Google is where most people still go to, if I’m not there, do I need to do videos? So at least there’s some level of discovery, maybe start with shorts.

36:05
You know what’s funny is, uh, have you watched Rob’s channel Rob burgers? Yeah. Yeah. He’s been killing it and literally just goes on and just talks. I’ve been in, I’ve sat on to Rob burger. Uh, I guess it’s dough roller, roller. Yep. Don’t roller. I’ve, yeah, I’ve said it. It’s good. It’s really good. He’s got a, he has. So that’s what I think of when I think, okay, you have to do things the way you like. When I, when you originally talked about blogging, can people still do it? What has changed? I feel like you have to do things the way you want to do them.

36:35
without sort of focusing on like what makes money or what’s going to be popular. And eventually you’ll attract sort of the crowd that fits with the way you’re doing things. That way you also have the longevity of not having to pretend you’re someone else. You can go to Rob Berger’s channel and you watch his videos and his cadence is like a little slower than what you’re probably used to whenever you’re listening to an internet video. It’s not like a Mr. Beast like cut every two seconds like faces and right. It’s working for him. And now he has an audience.

37:05
that where it also works for that audience. I sit on his live streams every once in a while and I like listen in and just like just to see how things are going. And I think it’s great if you want to learn how to better manage your money, especially if you’re closer to retirement and are trying to like navigate all the complexities. Like you can’t do that fast. You can’t talk about like social security withdrawal strategies and like all that stuff, you know, 1.5 speed and still understand.

37:31
what’s going on. Plus people don’t want to. They’ll spend as much time as it takes to understand it. And so if you go fast and have to rewind it, like, it’s not good for anybody. You know, what’s funny about YouTube for me is I attract a lot of Asians and I attract a lot of women over the age of 35. Just you are very good looking. My video is probably better for you than it is for me. But just by nature of, I guess what I talk about and that sort of thing. So

37:59
And there’s some guys at FinCon that I met that are really good YouTubers. And I feel like you’re as eloquent or even more eloquent than a lot of them. So which is why I was very disappointed when you stopped MicroBlogger, which was your old podcast. yeah. That was fun. Yeah, I don’t know. This is hilarious to say. And I fully understand after I say it, how silly it sounds. So. It’s just.

38:28
Part of it was just the whole like, not anxiety, but just like apprehension about being on video and being on audio. Just even though, you know, I’ve been writing a blog that thousands of people visit a day. And I like, there’s no apprehension about, especially when you’re writing, like people can literally point and say like, yo, that’s wrong. You’re a dummy. Whereas on video, like it can pass so quickly that, you know, and plus the YouTube comments don’t.

38:57
don’t read them. Yeah, I don’t know. just, I think I just need to spend more time, like, with more space and just think about like what that would look like. Because I don’t know what novel things could be done. But then again, I don’t know, things on the blog, very little of it is necessarily novel. It’s just got my spin on it or Yeah, my flavor. Let me ask you this, how much time a week do you spend on your blog?

39:25
I’ve always been curious because like I picture you as you get up, you go running, you chop some wood, write an article and then hang out with the kids the rest of the day. Realistically, probably average, maybe 20 hours a week. 15, 20. It’s mostly in the morning. then yeah, I wake up. Usually wake up. Depending on when I wake up, it’ll be like 45 minutes before the kids do a little bit of work, like answer the emails.

39:55
fix things and then it’s just kids until 9 15 ish and then I’ll do work until lunch and then afternoons it’ll it’ll be some sort of like working out or nap or yeah because then kids are home by the oldest kid will be home by 3 30 ish so that’s the day what do you spend most of your time on your blog it’s a lot of keyword research it’s a lot of sort of dabbling with older content

40:23
either updating it or sort of optimizing it. It’s a little bit of like affiliate management. So there’ll be that compliance aspect and then just like emailing with different companies, whether or not to start a new program to upgrade or, you know, increase commissions or just play around. There’s really not much structure. I’m sort of in that like I fill in all the gaps type of role, is hard to describe.

40:51
So let’s say you sold wallet hacks and then it became like cash Lorette or something like that and you had nothing again. This is just all like secret. I know, know people don’t understand. So you’re going to put like show notes and explain everything. Everyone listening. the company that bought Bargaineering basically took down the blog, turned it into this site called the cash Lorette and then that got taken down. And I don’t think Bargaineering even exists anymore. Right. I mean, it’s Yeah.

41:20
But my original question was, if you were stall over, like let’s say you just sold wallets hacks similar to how you did bargaining, what would you be doing today? Would you start another blog at this point? Would you do? No, I would not. I would not because having done it twice, it’s like a slow slog. It’s like great if things work out. I would probably dabble in video, which is how I, actually what I should do today is just start dabbling in video.

41:50
without any expectation like I would if I’d sold the Yeah. And then have the added benefit of still having the site and just like messing around. We’re a lot alike. I like doing things without any pressure. In fact, I hate when I’m being pressured because I make silly decisions when that happens too. know, yeah, sometimes out of desperation or, out of like just pure monetary

42:16
I can’t tell you how many in the early days how many sponsored things I took on that were a pain in the butt. But I did it because the payout sounded really attractive. But just all the talking and the back and forth ended up not being worth it. I very much dislike like meetings, like phone calls, and stuff like that. you could make it an email, let’s make it an email. Even if it’s like the first time we’re interacting. Like, yeah.

42:45
Yeah, there’s a thing about pressure that pushes me and probably most people to just do something. Even when you shouldn’t necessarily do something, right? Maybe you should wait and like think it through. the fact that you have pressure on yourself and you’re like, and you haven’t done anything yet, like why haven’t you done anything yet? Like, I gotta figure out what I gotta do. Like I can’t just start going, right? If you don’t know where you’re going, if you just start walking, like you could actually be hurting yourself.

43:14
And then you also run into the whole shiny object principle, right? If you’re starting something new and like, Oh, I gotta, I gotta make money. Well, everything sounds good. Everything sounds good. That’s the whole point. They want you to promote them or do whatever them, but maybe you should like hold off and just like pick a handful and like, you know, test them out, test categories out. And if a category picks up like, okay, maybe we push a little bit more there. And yeah, I think pressure is good in some places.

43:44
It’s also good practice to force yourself to slow down. When you feel that pressure, recognizing it and being like, okay, I’m feeling the pressure now. What should I do? A prime example for me was, so for those that haven’t kept up with all the Google updates, there was an October, they called it helpful content update. Did not affect Wallahex. Thankfully we are still helpful content.

44:13
Then the October core happened and then we lost about 20 % of our traffic. And at first I was freaking out, not really freaking out. I didn’t freak out. Freaking out for Jim is like, Oh man, that sucks. So there was this one time with bargaining back in like, I don’t know, 2008. It was a Friday. I remember this distinctly because I was sitting at work 2007 or six and Google.

44:41
had taken what uh, bargaining completely out of search. So my traffic went from, was probably at the time, like four or 5,000 a day to like 200. The back then no one like publicized updates. So Friday I saw like the traffic crater, Saturday crickets, a hundred people, maybe Sunday crickets. And I was like, I’m on Friday. I felt sick. Like when people say like I was

45:10
I felt sick. was like, you’re just like over. No, I was like sick. Sunday, nothing. Monday went back to normal. I was like, what, just happened here? I have no idea what just happened here. So when this past October, when it lost 20%, I was, I didn’t panic because one, you never know if in like a couple of days it’ll come back maybe. Right. Right. I don’t know. And I dug into the, the, went down in

45:39
in terms of the results. And it all made sense. was all stuff that fortunately didn’t generate a lot of affiliate income. And it was just good from a traffic perspective. It was it was all the blood plasma donation articles, instead of ranking for I was, it turns out, and I never dug into it, because it was not like a monetization thing. Turns out the post that I had on wallhacks about donating blood plasma, they were ranking for the names of the companies.

46:09
So they were like five, six position for every single company. And then as it turns out, after the update, after the core update, instead of my site, my site was now down until like 15, 16, it had surfaced all of the like LinkedIn pages, Twitter, bios and all that up into those spots. And I was like, okay, without, if I’d panicked and thought like, oh, I have to do something.

46:35
instead of like research and like calm down and realize, okay, this is actually something that you cannot do anything for. I might’ve gone in and spent like all this time like updating stuff that I didn’t need to update. Maybe I would’ve edited other articles that hadn’t been touched and stuff like that. And it sucks to go through it when you see 20 % drop, you’re like, oh, this is bad. But it’s also good practice to like teach yourself, okay, don’t freak out, everything will be okay.

47:05
like your house isn’t on fire, feels like it’s on fire, but it’s not actually on fire. Let’s take a calm measured approach. And I think that only happens with time. Like you have to go through it enough times to be like, okay, yeah, we’ll get through this. It’s like the stock market also. I’ve lived through three downturns. I don’t don’t panic much anymore. Yeah. One thing I don’t even look. Yeah. I look once a month when I check on that worth and I record it and I’m like, oh, it was down this and then

47:34
As you get older, the dollar amounts get so big where like in a month, in a month you can lose or gain more or I can lose or gain more than I earned in my first year of work. Yeah. And it’s just like, that’s what happens when you’re in your, in your case, in your mid thirties, in my case, a little bit older, right? It’s just part of, if you look, you’ll freak out cause it doesn’t look fun.

48:03
But that’s these are all inside jokes because for some reason I thought Jim was still 30 something when we just hung out like a couple of weeks ago. But I just realized I’ve known you for so long that that’s how old we were when we met. We met each other at our 20th. I think I was. Yeah, I don’t remember. Anyway, you were in your 30s. Yeah, you’re a couple of years older than me. Yeah. So, Jim, where can people go check out your stuff?

48:33
and uh… set up for one of your creepy mellus well so if you go to wallace dot com you’ll get a pop-up about thirty two seconds after you show up on the site and then if you don’t sign up for that email and you come back five days later you will get another pop-up but you’d sign up to be the email sounds good the second pop-up will say hey man you’re back and it’s about time you signed up for this damn email list what’s going on so good it’s free

49:02
Join the 20,000 other geniuses that have signed up. They’re not all geniuses, but they’re all Most of them are bots, but some of them are geniuses. Hey Jim. Thanks lot for coming back on man It’s it’s been a long time and it’s good to know that things are going well with wallet hacks and one of the pure bloggers that I know that still not doing much video Hopefully I’ll see you on YouTube. We need more Asians on YouTube. All right, I’ll I’ll try. I’m a pleasure. Thank you

49:35
Hope you enjoyed that episode. Now Jim is someone who I consider one of the OGs when it comes to blogging. And for more information about this episode, go to mywifequaterjob.com slash episode 520. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go over to sellersummit.com. And if you are interested in starting your own e-commerce store,

50:04
Head on over to mywifequitterjob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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519: The SEO Apocalypse! How Google’s Latest Changes Are Shaking Up the Internet With Toni Herrbach

519: The SEO Apocalypse! How Google’s Latest Changes Are Shaking Up the Internet With Toni Herrbach

Welcome to a brand new segment of the show called Profitable Audience where my business partner Toni and I discuss all things related to content creation and building an audience.

In this episode, Toni and I discuss what’s going on with SEO and artificial intelligence and what’s in store for ranking in search going forward.

What You’ll Learn

  • Google’s spam problem
  • How to rank in Google search
  • Google’s latest changes

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Transcript

00:00
You’re listening to the My Wife, Quit or Drop podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Welcome to a brand new segment of the show called Profitable Audience, where my business partner, Tony and I discuss all things related to content creation and building an audience. Now in this episode, Tony and I are going to discuss what’s going on with SEO, artificial intelligence, and what’s in store for ranking and search going forward. But before we begin,

00:27
I want to you know that tickets for the 2024 Seller Summit are now on sale over at Sellersummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online and unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business. Entrepreneurs who are importing large quantities of physical goods

00:57
and not some high level guys who are overseeing their companies at 50,000 feet. Now I personally hate large events, so the Seller Summit is always small and intimate. Every year we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s gonna be held in Fort Lauderdale, Florida from May 14th May 16th.

01:27
And right now, this is the cheapest the tickets will ever be and the prices are going up every two weeks until the event. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 50 % off right now. My book will teach you how to achieve financial freedom by starting a business that doesn’t require you to work yourself to death. Plus, you can still grab my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book.

01:56
over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:11
Welcome to the My My Quitter Job podcast in a brand new segment called Profitable Audience. My partner, Tony Urbach and I, we’ve decided to join forces and combine the podcast because up until this point, we had two sets of editors, two sets of hosting companies, and I guess a fractured audience. It was a little bit, although I have heard from your audience, they do like you better when you’re on with me because you’re more real.

02:39
Well, I can act normal. Normally when I have someone on that I’m interviewing, I kind of have to be on my best behavior, right? Yes. Yes. You put on your, what do you call it? Your good Chinese boy hat. So now you can be your normal self. Although the last couple of guests I’ve had have been from my mastermind group and that’s been completely natural because I can bag on them all I want. But if I have one of my idols on like Robert Cialdini, I have to be extra nice, right? That’s right. I think if I had one of, I don’t know,

03:09
who that would be, but if I had an idol on, would probably be on my best behavior as well. I I wanted to push the boundaries. I remember in that interview, I was like, so do you use these techniques of persuasion on your wife and do they work? That was one of my questions. That was a risky one. But really? Yeah. Okay. Oh, that is risky. She’s fine. She’ll be quiet. Okay. So one thing that I wanted to talk about today,

03:35
Mainly because during the last office hours for both classes, I gave an update on the state of Google. I know you were off gallivanting somewhere. I’m not sure if you got a chance to catch anything. you meant working. I’m not sure if you caught any of that. I heard all about it. In fact, I saw the emails come in after you gave the office hour lessons and I heard a lot of good feedback. So you definitely got people’s attention.

04:03
I’m sure it got good feedback, but it wasn’t like a rah rah episode. Right. You know what I’m I don’t think any time in the last year where you’ve talked about Google, there has been any rahing going on. That’s probably true. You’re more depressed than anybody else, I think. You’ve said many times to me that you feel like it’s taken the fun out of blogging. Oh, I’m not even talking about that. So we’ve been talking about what’s been happening is tons of spam on Google.

04:33
Yes. Because people are using AI. so Google has been frantically trying to adjust and still put out like the best search results based on all the spam that’s being put out there. And so some of the things, just to give you guys a preview, I covered how, you know, a lot of the Reddit, Quora and LinkedIn results are now ranking like way high in the results because, you know, they’re perceived as more accurate information. And one of this, one of these things happened because a lot of people

05:01
are appending Reddit to their searches now, right, to get a real answer. Problem now is like one of my posts, which I had ranked for a long time, all of sudden got outranked by this one LinkedIn post, some random dude just posting something that wasn’t entirely accurate, but because it was a LinkedIn post, Google upgraded it. And so I’m sure there’s gonna be another, there was five updates towards the end of last year, back to back to back. So the search results were like crazy.

05:30
fluctuating. know what? It worries me a little bit. All of this stuff worries me, but the thing that worries me is, do you spend any time on Reddit? I do, just reading. I’m not really a poster though. I feel like the problem with ranking things on Reddit is you have no idea. You know how we talked, Google talked a lot about EAT, the expertise, the authority. You’re reading a blog post and let’s just say the blog post is written by Brene Brown.

05:59
who is a, what is she, a doctorate or at least a master’s degree in psychology and she has all this training and research and she’s written millions of books, all this stuff, right? So when you’re reading something by her about mindset, you feel like, okay, she is an expert. She’s done 30 years of research. She’s written multiple books. She’s interviewed hundreds of people. And then you go on Reddit and it’s like a dude in his basement giving advice. It’s like, you don’t know who that person is on the other side of Reddit.

06:29
And most people don’t use their real names or anything like that. So to me, that’s what makes me nervous is that when I search for things outside of like a recipe or something like that, and I want good information, I don’t trust any information I get anymore because I have no idea what the qualifications are when I see things come up in the search results. I agree. And in fact, people are already gaming this now. So people are posting on Quora because Quora got upgraded as well. And then in Quora, you can actually link out. Yes.

06:58
It’s like another game, people are just going to start gaming those things. I think it stinks for the user. Google’s got to figure this out because I don’t… Then I get worried when people tell me that they are educating themselves from the internet and it’s like, oh, should you be? Are you taking medical advice from the internet? Are you taking marriage advice? I don’t know, it just makes me very, very nervous. You know what makes me really nervous now is…

07:27
You know my feed is a lot of Golden State Warriors. Yes. And what happened recently was there was this on both YouTube and TikTok, it popped up that LeBron James got traded to the Warriors. That’s kind of funny. And I flipped out and it actually looked real the way it was put together. So I was about to text you and then I just Googled it and yeah, it was, was completely false. But there’s a whole bunch of those out there now.

07:52
Well, same thing with the marathon runner who died in the car accident. He did die, the guy who set the world record for under two hours on a marathon. I saw it come across my feed and I was like, oh, that’s fake news. Then I dug deeper and I found that he did indeed die in Kenya in a car accident a couple of days ago. It’s like I can’t believe anything that I see because half of it’s fake. Then I just saw this article, I want to say it was on CNBC about

08:19
how the latest generation is getting most of their tips and searches doing TikTok searches now. Oh, my kids think, like my girls think TikTok is like Encyclopedia Britannica. I mean, isn’t that scary? Oh, yeah, you have, And I will, I’ll tell this story. My daughter does not listen to the podcast, so I am safe, because she got in a lot of trouble for this, but she saw a TikTok hack about cleaning like your drain.

08:47
And so she was doing it with chemicals that could have an explosion in the bathroom. I don’t know what she was mixing, they were too, you know how you can’t mix like bleach and ammonia? I don’t know what it was, but apparently she came out and told Brian, she’s like, hey, I think something’s wrong. And she told him what he did and that she had learned it on TikTok. And he was like, never, ever, ever. If you see something on TikTok, run it by me, right? Run it by your mom or

09:16
whatever before you do it, but he’s like, could have blown up the bathroom with some TikTok hack. Yes. Sorry. It’s presented with such authority. That’s the thing, right? With the editing and the way things are presented, it feels real. When I saw that that runner was killed, I was like, oh, and then I was like, oh, no, it’s not true. This is another one of these so-and-so died, they didn’t really die.

09:45
Yeah, I was just noticing that my YouTube feed is almost a third AI generated content now. Because the sports stuff, think is the easiest thing to do that with. A game just happens. You just have AI do the summary and then you just move pictures around. I think the NBA allows you to make clips, which is why everyone does it. Right. Yeah. And so it looks like a real broadcast. Mm hmm. Yeah. And they even use like the name of the channel is something that sounds real.

10:14
Like highlight deals or something like that. You’ll think this is funny because you’re not in, I mean, I’m not really in this world either, but people are using AI to create their dating profile. Oh, you mean the pictures? Yes. Yes, I’ve that program. I got an ads for it on TikTok. Yes, which, know.

10:35
Anyway, yeah. Okay, so we’re gonna talk about AI, because one of our friends did- We are, but I want to finish. I want to hear this profile thing. what was the- Well, so basically they’re using AI prompts to feed the chat, which is kind of funny because a girl will like- So I’m in a couple of Facebook groups that are like, basically that you’re gonna go on a date and does anybody know if this person, is it gonna be safe? Right? Has anyone ever dated this person before?

11:01
So I joined the groups a long time ago, but now I can’t leave because it’s like soap opera. But what I’ve been seeing lately is people are using AI prompts to respond back and forth via text or in the dating app chats. And what’s funny is, is that people are getting the same prompts, right? So like a girl will screenshot the messages and another girl will be like, I got the exact same message and she’ll put up and it’s the exact same message from a different guy.

11:29
It’s creating very similar prompts when you want to say certain things to people. That’s happening. Then people are either completely generating photos from AI. It’s not even them. It’s not them enhanced with AI. Oh my God. Okay. Which is basically like catfishing on another level. You’re not using someone else’s picture. You’re using someone else’s picture that’s been upgraded by a computer.

11:55
and which is nuts. And then people will post the photo and say like, hey, does anybody have any information on this person? And everyone’s like AI, that’s AI. And you can tell, like the pictures are too perfect. Right. Right. But also on a dating app, if you think about it, you’re on your phone, the picture is small, you’re kind of swiping quickly. Like anyway, it’s effective, right? It’s getting people in the door for who knows what kind of scam or something like that. But oh, it’s infiltrated.

12:24
the dating app scheme. Filters are no more, it’s AI now. So I’ve been out of the dating scene obviously for For a very long time. I would imagine a conversation that’s run by AI would be really easy to spot, wouldn’t it? So here’s what I think. I think females, and I’m going to make a global generalization here. I think they want, because the dating apps are so cruddy, right? You meet so many people that’ll ghost you or stand you up or no show.

12:53
that when you get someone that seems interested and nice, you sort of cling to, you’re like, oh, it’s a good one, right? Like, oh, this is not gonna be a total jerk. But then, so even though the conversation to me, when I look at it, I’m like, oh, 100 % AI. I think there’s that, right, your brain is saying, there’s hope, this person’s nice, they look safe, right? And so the message is even though once you read them as an outsider who has no attachment, you’re like, oh, AI.

13:22
If you’re in it, you’re overlooking things, right? It’s just like you overlook things about people when you are crazy in love with them. You just meet them and you think they’re wonderful and all your friends are like, yeah, but did you notice this? And you’re like, what are you talking about? I think it’s the same thing. They just don’t notice it. I’m so glad that I’ve been married for so long and I’m not in this world that we’re living in right now. Can you imagine just at another level of weeding out computers versus real people? That’s nuts.

13:50
Okay, well, you what’s funny is the original topic that I wanted to talk about on this episode was our mutual friend Spencer Hawes, who’s actually speaking at Seller Summit. He’s an excellent content creator. He’s kind of always on the cutting edge. He runs niche pursuits. You guys should all go check out his podcast. He, in the light of AI, decided to run what he called a Google versus AI content challenge. I love that he does these things. I know, it’s so much work.

14:19
Last year he said I’m going to write a thousand blog posts, not him personally, but his team was going to do a thousand blog posts in a year, see what happened to his traffic, his rankings. I think he ended up with what, 960? Something crazy like that. Yeah. He has a whole YouTube video about it. You can check them out. Yeah, I love that he does these things, but they are so much. I’m glad he does them so we don’t have to. They are so much work and we can just talk about it on the podcast and give him some extra props if you guys want to go check out all the details. What he did is he wanted to see

14:49
whether you could actually rank a pure AI site pretty much in 90 days. Which seems crazy to me. It does. So what he did is he just blasted out to his list and he said, hey, I’m running this contest and at the end of 90 days, whoever gets the most organic traffic from Google from an AI content site receives 2,500 bucks. That’s a lot of money. It’s a decent amount of money for the experiment.

15:16
And not only that, you have to check everyone’s analytics. You got to make sure that no one’s cheating and that sort of thing. It really is a lot of work. So what ended up happening is he got 74 people to join. That’s a lot. Which is actually a lot of people, right? Yeah. And then some of just some of the rules that he specified was only traffic to the new published articles would count towards the competition. So let’s say you had the domain or something for a while and maybe it had a couple of articles.

15:46
It’s only the new stuff. Interesting. You could participate if you already had a content site. I think so. I think so, which seems a little bit like cheating because if your domain was a little stronger. I don’t know those details actually or whether he talks about it. Well, you all have to watch his. For the most part, it was new people creating AI content. I don’t think anyone had an outsized domain rank. I’m pretty sure he would have accounted for that.

16:16
Yeah. So I was actually really skeptical when I, I actually had a call with Spencer not too long ago, cause we were trying to get him to, um, speak at seller summit and I was skeptical that people could achieve any sort of results in, well, so he, he checked like every month, right? But 90 days is pretty aggressive. I think, uh, to, rank stuff in search, but, um, after 30 days,

16:43
The top participant already had 4,800 visitors in a month. Really? They had published 850 articles. What? 850 articles in one month. AI. All AI and it was in the beverage niche. The beverage niche? I don’t know what that means. Maybe it’s coffee or I don’t know. Alcohol maybe? It could be alcohol. Yes.

17:11
But I could not think of 10 articles to write about beverages, let alone 864 or whatever. what you do is you have one, AI produce all the topics. Yeah. I haven’t actually used the, so a while ago I talked about this AI PRM plugin for ChatGBT, which is essentially an SEO plugin for ChatGBT that goes and it can create an entire article map for you. Like you give it a topic. let’s say,

17:40
Let’s say it’s blogging. You tell it, I want to create a blog about blogging and it will output every single article that covers every possible topic. Okay. Right. So it actually does it in like a table form, the name of the article, the keyword, and then a description of what goes inside. Interesting. And then from there, you can take that description and topic and then have AI actually create the article. I’m pretty sure that’s what this person did. Okay.

18:11
But still, 850 articles in 30 days. head is hurting. That’s 30 a day approximately. I can’t imagine even reading that many articles in a day, let alone editing it. Realistically, they probably couldn’t do a whole lot of editing or manipulating what they got from AI. They probably just published it almost as is. I mean, this is what people are doing right now.

18:40
What’s funny is I think Spencer also participated in his own challenge like he always does. Of course he does. He only got 52 clicks in the first month. Interesting. What was his topic? Do you know? That I don’t know actually. Probably running shoes. Wasn’t that one of his first niche sites was long distance running? He used to use it in all of his explanation things back in the day, like a long, long time ago. Yes.

19:08
I just wanted to take a moment to tell you about a free resource that Tony and I offer over at Profitable Audience that you may not be aware of. If you are interested in learning how to make money with content, whether it be through blogging, podcasting, or YouTube, we put together a comprehensive six-day mini course on how to get started blogging that you should all check out. It contains both video and text-based tutorials that go over the entire process, including a full tutorial on how to set up your first content website. This course is 100 % free.

19:35
and you can sign up over at profitableaudience.com slash free. Once again, that’s profitableaudience.com slash free. Now back to the show.

19:46
Yeah, I think like most of the people that were creating articles for this contest were just using listicles. And the people who did really well, it says here there was substantial human editing. Although that person that published that many articles, I can’t imagine human editing that. don’t know. Anyway, what ended up happening is so the results after 90 days, the top five participants achieved over

20:18
15,800 clicks total in three months, which is astounding to me. Yeah, that’s a lot. That means it works. Oh, does it? Right? I don’t know. I mean, the winner ended up with 274 articles. And they just use, the strategy they use is they use AI to generate the outline.

20:45
And then they just ran it over and over and over again for each section of the post, which is actually the way I kind of taught it in profitable audience. Like that AI article that I wrote about Alibaba still ranks on the front page and gets me a ton of traffic. And that’s exactly the way I did it. I ran it to create an outline. I don’t remember what the article was now. Something to do with Alibaba. And then for each section, I So I ended up running ChatGPT probably like 15 times.

21:13
Throughout the course of that article and then I human edited that it actually took quite a bit of time Yeah, but it was I would say it was like 75 % AI Interesting. Yeah So the person who won I think ended up publishing articles based on current events. Oh Okay. Yeah, but not the type of current events that you would think he covered cricket matches

21:42
I don’t even know how to play cricket. I don’t know either. I just remember we met one of your friends at a conference once that was investing in a cricket team. Do remember that guy? Yes, I’m trying to remember who that was actually. Yes, he’s a huge cricket fan. He’s like, is the sport of the future. like, I don’t think it is, but have fun watching it. I feel like cricket’s one of those sports that is way more popular outside of the US.

22:08
being in the US and that being our frame of reference, we don’t think it’s as popular as it actually is. It probably has a lot of big fan base that we’re just not familiar with. I know that every Indian friend I have here watches cricket. Yeah. So I know it’s big among the Indian population, but it’s one of those things that it’s a little bit more obscure, right? Probably less competition. I would imagine. So I think that’s why it worked. So here’s my question.

22:37
Obviously, we haven’t read all these articles, but just like we were talking about how you’re getting fake warrior stuff in your feed, to me, that information can’t all be correct.

22:51
I don’t know. You know what I’m saying? Because we’ve already seen AI manipulate news and current events. I wonder how much of the cricket info is correct. I have no idea. The contest wasn’t an accuracy contest. was just how much traffic you can get. A straight-up traffic play. A lot of those Warriors videos that I watch, they have 10,000 views by the time I get to them. I wouldn’t watch them if it only had 100 views.

23:21
Yeah. And that LeBron one had a ton of views. Well, yeah, because every Warriors fan was like, please, please, please give us LeBron. I actually had a dream that LeBron and Steph were on the same team like two nights ago. So I probably saw it in your feed. you did. Yeah, because I wouldn’t normally dream that. I think the problem with creating, I mean, this is a contest for that was limited to three months. But I think if you’re doing current events, AI articles, they have like no value in the search results.

23:51
pretty much right away, right? It’s almost like a social media post.

23:57
I don’t know, I remember when I started blogging, I started blogging in 2008, 2009 was the big recession, people were feeling the economic squeeze. I would write articles based on, remember when the government was going to shut down and when the government shuts down, the military doesn’t get their paycheck? Yes.

24:22
So I wrote a couple articles about, you know, the military not getting their paychecks in the angle of like, hey, here’s what to do. Here’s how you can stretch what you already have. Here’s some chat, you know, was, but it was all based on that. When the extreme couponing phase and all that show came out, I wrote a couple articles and I always ranked, like I ranked number two or three for extreme couponing for a couple of years, even though I was never on the show. I didn’t do anything with the show, but I did piggyback on

24:51
I mean, current events is weird because extreme couponing isn’t a current event, but it’s like a current news cycle topic, right? Same thing with stuff with the military. I would try to capitalize on those sorts of things as they were happening because I think people, when there is stuff going on in the world, they get paranoid or upset or interested and they start searching for more information. I agree. Yeah. And then I guess there’s just a lot of attention right now. Yeah.

25:21
I mean, it’s a volume game. Like just think about how many articles that these people published in such a short period of time. Yeah, because the winner did 264. 274 articles. that’s they’re basically doing almost 90 basically 90 articles a month. Yeah, yeah, yeah, pretty much. Yeah, yeah. had to just verify your math. Look at that quick math that I have this week. I’m definitely I’m on top of my game right now. The winner did do human edits, though.

25:51
I guess to be fair. And I think Spencer, when he published those 900 articles, he had a lot of writers, but I think his policy with those writers were it was okay to use AI-generated content as long as you fact-checked all the numbers and everything related to the article. Which I think is something, because we get this question, I think we get this every webinar, right? Can I use AI to write my articles? I mean, think that’s probably one of our top questions in the past year, which is a question we never received.

26:22
before 2023. And I think you have to, if you want to create a lasting product with content, you have to fact check the stuff that you’re putting out there. I think you have to fact check no matter what, right? But if definitely you’re using AI, that needs to be a priority. Whether you’re having one of your VAs do it or you’re doing it personally, I don’t think you can just, I would never recommend someone just publish AI content straight from ChatGBT ever.

26:51
Apparently it works though, that’s thing. I would love to see where are these people in three years? If they just leave the site. Now current events would be tough, right? Because cricket games, probably people aren’t looking up three years ago from a cricket game. The person who’s writing about beverages, that stuff doesn’t change. A drink is a drink. I wonder in three years, are they getting any traffic at all to that? I’d be curious.

27:19
I’d be curious too, and maybe I’ll go and ask Spencer to see some of the URLs for these sites. I wonder if these are just walls of text or whether they’ve actually used images to break up the content and that sort of thing. Whether they had an author bio and everything that just makes a content site more trustworthy these days. I’d be very curious. Well, because for me, some of my older posts are still my strongest posts and they were written 10 years ago.

27:47
So I’m just about the longevity of that sort of a thing because it’s like, okay, you’re going to write three posts a day. You can’t keep that up unless you’re making a full-time income, like three posts a day. Even if you’re doing any editing at all, I guess you’re spending every single night making edits. You know what I’m saying? That’s a big time commitment even if AI is doing 90 % of it. Yeah. I do know that a couple of students in the class got hit by the series of five updates.

28:17
that happened toward the end of the year. And one student in particular was like, hey, should I switch up my content strategy? Because Reddit and Quora and LinkedIn are getting a lot of the clicks now because they’ve been raised. Actually, if you look in the search results now, there’s like a special section for those sites that is a wonderful. It’s called, I think, forum and discussions. But sometimes the Reddit actually gets the top spot with a quote from some random schmo, from some upvoted article.

28:47
Yeah, that’s the thing. It’s like crowdsourcing. I don’t know. The whole thing’s crazy. It was pretty easy to game Reddit back in the day. When I first started, I was friends with all these Redditors who had really high ranks. Occasionally I’d just say, can you promote this article for me? What ended up happening is that article would get 2,000 visits in the next hour. Then I had this voting group that just upvoted everything.

29:16
That reminds me of stumble upon, which was a similar tactic, right? Is you would put something on stumble upon. I don’t even know if that exists anymore actually now that I’m saying it. I’m to Google it right now as you’re talking. It’s the same theory, right? Is that you would have your little stumble group stumble your content and then for the next 24 to 48 hours, you would get some ridiculous amount of traffic and then it just disappeared immediately. It wasn’t a-

29:44
a longevity play for sure. The fact that you can upload things on Reddit, I think is great, but I don’t want that in my search result. I just don’t. I don’t know. I’m dating myself so much right now, but- That’s the trend because people actually say what they mean. If you do a search, what was I doing a search for the other day? It was best router because I need to update my router. All the search results with the exception of maybe Wirecutter who was clout was all bogus.

30:13
I think it was just whoever, like if you do best web host. You come up. It’s Pat Flynn’s post that’s made him millions of dollars. Or best mattress. So you know what’s funny is that if I’m searching for anything finance related when it comes to like credit cards or you know, best like business bank account, stuff like that, not like stock stuff, but just banking in general, I just go to nerd wallet.

30:42
I don’t even look anywhere else. It’s just like, feel like, listen, we don’t know those guys, but they’ve been around forever. They actually are a trusted resource. I know they’re making commission off of everything, but I’m not going to go to any other site unless it’s someone that we know that comes up. It’s it’s nerd wallet or someone we know or nobody, but I’m definitely not going to a random site when it comes to.

31:08
like finding a credit card. When I did all the research about the travel card, I wanted to find the best card for traveling. I read Greg and Holly’s stuff because they obviously play the points game. Then eventually I ended up on NerdWallet because of course they have a great comparison chart and all that stuff. I was like, can you imagine going on Reddit and picking a credit card? No way. I don’t know. You know, the one thing I will hand it to those guys is they have a really good experience. Even on your phone,

31:38
you know, the images change like the aspect ratio. So it’s actually nice and easy to scroll. I actually did this experiment with my wife, quit her job. And there’s a bunch of articles actually that I’ve written where it looks good on desktop, but on a phone, it’s literally like this wall of text. Oh yeah. So maybe like I have to actually go back and maybe even break up those walls of text with even more images to make it easier to read on mobile. Because I think

32:08
Google the way they have to proceed going forward is it has to be, you know, how much time does someone spend on your site or what is their behavior like? Right. Right. Because what they’re doing right now, I don’t think it’s sustainable. Like someone will just game core Reddit and LinkedIn or whatnot. And so they’re going to have to I’m pretty sure there’s another update that’s going to happen. Yeah. Like pretty soon if it hasn’t happened already. And so I told that student to just kind of stand Pat, like things are just

32:37
You don’t want to like chase like the next strategy. So, um, my strategy personally has, has been to just kind of proceed the way I’ve been doing it, but just paying particular attention to my mobile experience and making sure that it answers the question thoroughly. There’s really no fluff. And if there’s some amount of personal experience where I have like a real experience using a tool, if I’m doing a review or whatnot, include, you know, a little bit of it that after the question is answered. Right.

33:07
And we’ll just see what happens. It’s so interesting because I was trying to think about my own search behavior. How do I search? Because obviously I’m a Gen Xer, so my search behavior… I just read this article this morning that Gen Z-er are getting all their information from Pinterest right now. I thought it was TikTok. Wait, Gen Z? No, they use TikTok, but Pinterest has kind of become…

33:31
Like they feel like they’re taking over Pinterest. And it’s funny because my kids who are my girls, which are all Gen Z-ers are active, active Pinterest users. And when I was talking to your sister-in-law, we were talking about how Pinterest is very interested in Gen Z and getting, because I think that’s their fastest growing demographic on, you know, for searching and creating boards and all that.

33:57
content stuff. And my kids are like, that’s their search engine, right? It’s TikTok and Pinterest. They would never go to Google to search for anything. And so I was thinking about my own search behavior. And what’s crazy is that, so you know how when you get labs done, you don’t get like, you get the results, but you don’t know what any of them mean until you go to the doctor and they’re like, oh, everything looks normal. So like sometimes if you, and they always tell you like, they have like a little sliding scale usually, like if you go to lab core.

34:23
and it’s like the dot is somewhere usually in between like the high and low, right? As long as you’re in between the high and low, you’re apparently fine. So I got lab results a couple of weeks ago and I had a couple of dots that were like close to the edge of like high and low, but I have no idea what that means, right? So I’m Googling like, you know, what is this? What is that? And of course it’s like half of the sites, actually probably 75 % of the sites that came up were all sites selling a drug.

34:51
for whatever that was versus a Mayo Clinic or a WebMD or something like that, which is more of an agnostic type of site, just providing that data. Obviously, Mayo Clinic wants you to go to Mayo Clinic, but they’re not trying to sell you a prescription. It’s interesting to me how many of those drug makers ranked for content when I feel like Mayo and WebMD are the stalwarts. They’ve been around forever.

35:17
They put out tons and tons of content on everything medical related. So it’s just, to me, it’s like really tricky to figure out who’s telling you the right information these days. Can you describe to me how a Gen Z user uses Pinterest? Why is Pinterest results more reliable than Google?

35:34
I don’t think they’re more reliable at all, right? Yeah, I mean, it’s just people pinning stuff, right, that they’re seeing. I think so. think people… So how I think Gen Z is using Pinterest versus TikTok, I think they’re using TikTok to search a recipe, right? Like how to make a 15-minute pasta dish or something like that. Whereas Pinterest is, what do I wear to Coachella? Right? What do I do? So see the difference of like…

36:03
the types of information because, I want to decorate, I want peach and teal in my room, right? That’s on Pinterest versus I want to unclog my bathroom drain. What can I do? What can I find on TikTok? Right? I don’t think the results on either one are accurate or necessarily truthful. However, I think how they’re searching on Pinterest is more of like preferences, right? Like what styles and it doesn’t, you you’re not going to get hurt from a style. You’re not going to get hurt from decorating your room a certain way.

36:32
Whereas you could get hurt from a recipe or something like that. You know, I started using TikTok as a search engine relatively recently too, because it’s actually a great place to find new restaurants in your area. My brother has been using TikTok for like news. I mean, he follows very specific people, but I, it’s so funny. So recently I was in the true crime TikTok for like six months. I was loving it. Okay.

36:58
Brian was like, what are you listening to? And I was like, leave me alone. I need to find out what happens. But somehow I got into the auto repair TikTok. And so now I follow like five repair shops and they basically, it’s like the head guy, he’s clearly been a mechanic for like 40 years. And like this one that’s my favorite, it’s this kid, not a kid, he’s probably like 40. And he’s like, dad, top five SUVs you wouldn’t ever buy. And he’s like,

37:25
only stay the car, don’t sell why. And the dad’s like, I can’t do it, I have to tell you why. And he’s like, we’ll talk about it in the comments. And he’s like, and he basically lists off like five SUV, three row SUVs that he thinks are terrible as far as reliability. They’re always pulling numbers from their computer, like cars with the most expensive repairs, top five, you know. And then in the comments, they actually go through and answer. So one of the cars that he said he wouldn’t recommend is a suburban, which is what I drive. So you better believe I in those, I was in those comments, like.

37:53
What’s wrong with a suburban? And so then in the comments, someone’s like, I drive a suburban, what’s wrong with that? And he’s like, well, if it’s this year to this year, it’s fine. But if you have this year to this year, look out for these four things or whatever. So they’re like giving you all this great information. But I’m in like, I’m in that TikTok car thing now permanently. I’m like, this is amazing. If I ever buy a car, like I’m totally going to these people to get information because to me, like that is reliable. He is, it’s like talking to your local mechanic, except for you don’t have to go down to the garage to do it.

38:23
Yeah, I think that’s where TikTok has the advantage, right? Once you follow some for a while and you trust them, then it’s all good. It’s just like the random TikToks that I see my kids watch or whatever that worries me. Yes, that worries me a ton because I feel like it’s such garbage. Yeah, I I think the other thing that Google has to do is they’ll rank based on your reputation, are people Googling you? I actually just did this exercise with me. People actually, I get

38:53
Like I think almost a thousand searches for just my wife quit her job. And then I get an equal number for just Steve Chu. I think if Google sees that, then they’ll give your site a little bit more weight as well, which is why I think social media actually plays a part. YouTube, TikTok, you know, if people are searching for you after the fact, after watching one of your short form pieces of content, that is one way I think Google will determine whether you’re trustworthy or not also.

39:21
When my last name was Anderson, I could not rank for my name because there was an author named Tony Anderson who’s actually a pretty, it’s not like a Grisham level, but I think it’s a she, is a pretty pluralistic writer. I could never get, because everything would come up as her stuff, her books, her things like that. I was like, it’s probably a good thing that I’m a little anonymous. Now I’m not at all. No, I mean.

39:49
When you switch last names from a very common one to one that only people you are related to have, it’s good and bad, right though? I mean, I don’t mind it. Do you rank number? I’m just gonna do a search for you right now. I don’t know if I rank for my, I haven’t even checked it. You do? Yep. Well, there’s probably only one of me, unless I go back to Germany. That’s true. Actually, I show up too.

40:14
You are trying to encroach on a Herbhawk? You’re not allowed to do that. because our podcast comes up and that sort of thing. That’s funny. What’s funny too is- I don’t know. weird. You’re under speakers for amzsummit.com also. Was that a virtual one? Maybe. It was probably virtual. That’s probably what it was. I was like, yes, I think I did.

40:39
It’s funny because I think when you live your life online, you toe the line between wanting some anonymity, but also wanting everybody to know everything about you so that you can get more traction. It’s like, where do you balance that? Do you rank number one for Steve Chiu? I used to. Let’s see if I do.

41:01
I haven’t Googled myself in a while. Yep, I do. I got the top five spots. Oh yeah. Oh, Twitter is number one. That’s what’s coming up for me. Yep. Twitter is number one followed by the blog. sorry. X, number one. Wow. So this is actually really interesting. Oh, you actually have an author on my side, on the side search results. Did you know that? Oh no. Chu is a highly recognized influencer and speaker in the world of e-commerce. It’s your author bio.

41:31
Oh, interesting. Yes. What’s interesting about this is in my… I’m an incognito right now, but I have X is number one for you, then my wife quit her job, then Instagram, and then it’s your YouTube videos. For me, it’s followed by LinkedIn, and then my about page, and then a bunch of podcast interviews that I’ve done. Interesting. All because of the book, actually. What’s also funny is Steve 251 went on America’s Got Talent.

42:00
It’s a picture of some random dude with a microphone. Stephen Chu used to be the secretary of energy and he used to outrank me for a while. Thank goodness they got rid of him. I know. Actually, he’s down the second page now, Stephen Y. Chu. That’s pretty funny. Anyway. think that does totally going off the AI stuff. I do think that shows that-

42:25
if you’re trying to get your name as the brand out there, having that social presence is effective in search. Google’s clearly ranking that stuff as important, right? The fact that your Instagram is coming up for me third, your Twitter’s number one. That stuff is weird because I put no effort in Instagram whatsoever. I know. Yeah. I’m just going to bite the bullet and start. You know what I’m

42:49
I want a dollar every time you tell me that. I know. I’m posting consistently on shorts and TikToks now. Yeah. I don’t know if you’ve noticed, but I have. like them all. Whenever I post one of my business things on Instagram, I always get a lot of flack from my friends who private message me. Your friends aren’t paying the bills. I they aren’t paying the bills. I mean, neither is Instagram to be straight out.

43:13
That’s the rub. We should do this as the next podcast. What is a realistic Instagram strategy for you? I know what I have to do. It’s just posting. What should you post about though? I don’t want to make additional content just for Instagram. It would be my TikTok stuff. It would be my YouTube short stuff. Can you just AI yourself? Stevebot. What’s funny is I am going to do that. This is another topic for a different episode.

43:42
But I record intros and outros for this particular podcast. And then now, you know, with profitable audience on this, I might have to do this potentially three times a week. Right. And usually I record it from scratch just so it flows better. Cause you know, the, levels might change, but 11 labs, which is the leader in, in this space for AI voices. If you train it well enough, then it actually sounds pretty close.

44:10
And fact, there’s a guy who does like a fake Joe Rogan podcast where he like conducts interviews just randomly generated by AI. And it sounds just like Joe Rogan and whoever he gets as the guest. And it works pretty well. So I might start just generating the intros or even just putting my YouTube, you know, transcripts on the podcast also, because I just need to make subtle changes. Like instead of video, it’ll be episode, you know, just subtle changes to the script.

44:39
to make it work and that in theory should save a lot of time. You know to put together one of these podcasts, like the one that we just published for profitable audience on My Wife Could Her Job, it took me like a good 40 minutes for some reason. Really? To record the intro. Maybe it’s because I was coughing so much, I was still sick. Yeah, I was gonna say, I think 40 minutes seems extreme. But I had to line it up also and then I recorded an outro. Oh, I know why, I also had to…

45:08
create a a mid-roll ad for our mini course also. Maybe that’s what it But anyway, it took 40 minutes, but I would say it still takes 20 minutes, even if I didn’t have to do that stuff. So you know what’s interesting is you remember last year at ECF where Andrew Udarian said you’re fed your podcast into AI and created this fake apology from you to him, which was hilarious, but it sounded, I mean, as someone who talks to you,

45:35
on a very regular basis and is very familiar with your voice, I would say I would have given that a score of probably like a 90 to 92 % of like being able to fool me. Like if I would have heard that, I would have been fooled that it was you. Whereas literally two months earlier, Mike Jackness, I was in the car with Mike and he was playing his own AI, his voice on AI and I would have said it was like 50%, right? So just even in like a couple months, like the changes in

46:05
the quality are pretty crazy. Well, Living Labs allows you to upload all of your content. And the more you have, the better it sounds, which means that you, Darien, probably spent a good amount of time on that. He did. I think he took the entire month of January.

46:22
Alright, well, if you guys, since we were talking about Spencer, if you want to see the guy speak, he is going to be a speaker at Seller Summit. I’m not sure when this episode is going to come out, but we’re running low on mastermind tickets right now. Spencer, I’m not sure what he’s going to talk about. Probably his content strategy and blogging. He’s always on the cutting edge. So I know we talked a lot about Spencer today. If you want to see him and meet him in person, he’s an amazing guy.

46:51
Hope you enjoyed this episode. Google is in a state of flux and we will report back as soon as we have more information. Now for more information about this episode, go to mywifecoupterjob.com slash episode 519. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go to sellersummit.com. And if you were interested in starting your own e-commerce store,

47:21
head on over to mywifequitterjob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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518: How AI Is Transforming Ecommerce With John Lawson

518: How Ai Is Transforming Ecommerce With John Lawson

In this episode, I’m thrilled to have John Lawson on the show. John is the CEO of 3rd Power Outlet, an online retail clothing and accessories company. He is a platinum eBay power seller, a top-rated Amazon merchant, and a small business influencer of the year. He’s also written many best-selling books and speaks all over the world.

For the past several years, John has been really deep into AI, so in this episode, we are going to talk about how AI is transforming ecommerce.

What You’ll Learn

  • Artificial intelligence and its effect on e-commerce
  • How to apply AI to your e-commerce business
  • How to train your own GPT
  • Checkout John’s website – John Lawson’s Website

Sponsors

SellersSummit.com – The Sellers Summit is the ecommerce conference that I’ve run for the past 8 years. It’s small and intimate and you’ll learn a ton! Click Here To Grab Your Ticket.

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Transcript

00:00
You’re listening to the My Web Quarter job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Today I have my friend John Lawson on the show to talk about artificial intelligence and its effect on e-commerce. AI is just moving at a ridiculous pace and John is just one of those guys who is following this industry closely as it relates to selling online. But before we begin, I wanted to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com.

00:29
The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business. Entrepreneurs who are importing large quantities of physical goods and not just some high-level guys who are overseeing their companies at 50,000 feet. Now I personally hate large events

00:59
so the Seller Summit is always small and intimate. Every year, we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now, if you’re an e-commerce entrepreneur making over $250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s gonna be held in Fort Lauderdale, Florida from May 14th to May 16th, and right now, we’re pretty close to sold out on the mastermind passes. Also,

01:27
If you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 50 % off right now. My book will teach you how to achieve financial freedom by starting a business that doesn’t require you to work yourself to death. Plus, you can still grab my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube, and podcasting when you grab the book over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book.

01:55
Fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:05
Welcome to the My Wife, Quit or Drop podcast. Today I’m thrilled to have John Lawson on the show. Now John is actually someone who I met 10 years ago at perhaps one of my favorite e-commerce conferences of all time, the Startup Bros Conference. Too bad they didn’t do it again. But he is the CEO of Third Power Outlet, online retail clothing and accessories company. He is a platinum eBay power seller, a top rated Amazon merchant and small business influencer of the year. He’s also written

02:34
many bestselling books and speaks all over the world. Now, John has been really deep into AI. So in this episode, we are going to talk about how to apply AI to your eCommerce business. And with that, welcome to show John, how you doing? What’s up? That’s so funny. That is the best eCommerce conference I’ve ever been to. And everybody I’ve met from there always says that and means it. It’s so weird.

03:03
from that event. They spent gobs of money, lost tons of money, but it was a blast. Yep, yep. That’s why it was a blast. So it was good seeing you a couple months ago at the Alibaba Co-Create Conference. Now, for the audience who might not be familiar with you, how did you actually get into the apparel business, selling on eBay, and all the different things that you do? Oh, man. I’ll give you the abbreviated story of my nightmare.

03:33
So I was a consultant. I worked with like a Accenture and you know, I was making a pretty decent wage and I had a friend he was, you know, always hustling up something. This is early 2000s and he came to me and was like, hey, we should flip a house. And I was like, okay, what is that? You know, he’s like, oh, like you see on TV and all you got to do, you, you be the, you know, financer, time to pay for it. We’ll get the house flipped.

04:02
And we’ll split that like, you know, 50-50, probably 10 for you, 10 for me. Like, oh, okay, sounds great. I’ve signed the paperwork at the closing. We have a hard money loan, which means that it had a balloon payment in three months. So we had three months to change the house over or, you know, refurbish it. And when we got the house, it was a three-bedroom, one-bath, you know, so it’d be good for section eight. I do the walkthrough.

04:30
and it’s a two bedroom, two bath. What the heck happened to the other bedroom? Long story short, Section A ain’t gonna give you the same amount that they give you for a three bedroom, for a two bedroom. I don’t care how much nicer it is. So I ended up upside down and I was not going to get out from the hard money loan. Time moves forward and I’m really in a struggle. I’m making two mortgage payments.

04:58
on my one salary, which I wasn’t, you know, I had my own home, wasn’t ready for a second one. And I was about to go broke and bankrupt. And somebody mentioned, well, you should sell stuff on eBay. And that’s how I got started selling stuff on eBay. Right. And so we started selling my used books, you know, which I had around the house. And that was like the first thing I started. Ran out of books, start looking for other things to sell.

05:28
Ultimately, I landed in doing like accessories. So I didn’t actually do the clothing. I started with clothing, hated it because, you know, they sell clothing in weird packages and bundles. Yeah. Right. So it’s like you always get left with the smalls and the mediums and all the extra large and the two X’s go. So anyway, so I landed in the hip hop accessories category.

05:58
So we would sell bananas, sweat bands, jewelry, all the things that a hip hop kid would want back when I was a kid. You know what I’m saying? So that’s how I got started. Yeah, I know what you mean about apparel. I think selling apparel is one of the most difficult things to sell. Probably also because the return policy is like 40%, like the return rate. Right, right. Is it like that in accessories also? No, no, way lower.

06:27
Okay, way lower. Not only that, our cost of goods was lower, right? And I mean, we ended up niching out in shoelaces. So interesting. Yeah, yeah. I mean, that’s a whole nother story, right? Because we’ve been around so long. But if you think about it, you know, in the first or the other recession, right in the 2008 frame, with you know, people stopped wanting to

06:57
wear fake jewelry even, right? And so we had to shift. I did that 80-20 rule, right? And I started looking, I’m like, wow, shoelaces, we sell a lot of shoelaces. And then I went to the categories and there was like, if you go to Amazon right now, there’s hundreds of shoelace sellers. When I did it before, nobody, literally, I believe we built the category, you know? So,

07:26
But when I looked and I said, hey, this is something we could go deep in. This is something we could brand out. And that’s how I ended up with shoelaces. before we get into AI, I know you said that you’re not really selling on eBay anymore. What is your view of the marketplaces right now? Amazon and eBay, the competitiveness, just the overall landscape? mean, you know what? I think they keep taking market share, which is kind of interesting. It’s amazing to me that eBay

07:56
It’s still doing what it does so much in fact that I’m like, well, maybe I’ll go back and revisit eBay a little bit and see if we can actually move new merchandise on eBay as well. Because I’ve noticed there are people that drop ship our product from Amazon to eBay buyers, you know, which I don’t care. I get paid the same amount whether you do it or me. But I’m like, there’s some things that I would like to just offload.

08:26
on eBay, so I’m looking at it. But I’m thinking that especially when you look at what these TikTok shops are starting to do, that the marketplace competitiveness is about to heat up. Oh, yeah, for sure. Everyone’s getting in the game. It is. Yeah, they have to. They have to because they recognize that, especially with this AI thing, which we’re going to talk about.

08:53
I just think that, you know, it’s going to even the playing field for marketplaces. Like you’re going to be able to build your own marketplace for real now, where, you know, people have tried in the past. But did you leave eBay a long time ago because it just got too saturated because you used to be a platinum seller, right? Yeah, I was a platinum seller. It wasn’t that it got too saturated. They were making too many changes. the changes at the time.

09:21
this look at the timeframe, you know, when they were getting rid of the old CEO, new CEO coming in, trying to compete as if they were Amazon, they weren’t, they didn’t have the same, you know, systems in place. And it just got to be such a pain that I was like, okay, and the sales started slowing. So that’s when I took Amazon seriously. And then suddenly over maybe a two year period, it went from our sales on eBay were here, Amazon here to this.

09:51
And then I was like, you know what? I’m cutting you guys out and just focusing on the Amazon platform. So it was more of a focus play while eBay got themselves together. That makes sense. Yeah. And I know you’ve been kind of on the forefront of AI. You said you’ve been into AI for, I don’t know, it seems like eight years, I think is what you mentioned before it even became mainstream and popular. I’m just very curious, what are some use cases that you’re using it specifically in the context of e-commerce?

10:21
I mean, for e-commerce, mean, more than anything, it’s content creation. OK. Right. So I mean, that, course, is I think that’s the initial phase. Yeah. You know, so people don’t understand. when you think about it, just a week ago, it came out a year ago. It’s only one years old. Right. And now, you know, actually, it’s exactly exactly a year old. Right. So now we can see it can hear it can talk.

10:51
I mean, it’s absolutely amazing how far it’s come in just one year. So what’s going to happen in 2024? Oh my God, right? However, yeah, I’ve been back in the day. I don’t even remember the day I got a question. I’ll tell you my story. What was the initial question? Because I want to answer that. Applications of AI. Applications, right. So like I said, yes, that’s what it was. So it was.

11:20
great for content creation, right? Written word content creation. So writing product titles, descriptions, getting SEO rich descriptions, creating audience segments, creating a very detailed avatar and long tail keyword reports, right? So these are things you used to have to spend a lot of money on or get experts to do, right? And now I’m able to get that done

11:49
with a short command inside of ChatGPT. And we really have seen an increase in effectiveness of a lot of the content we put out. And that’s just on the salesy side. That’s not talking about market leadership kind of and thought leadership type of product or content that you create as well. So it’s…

12:15
When you’re talking about effective, are you talking about effective in ranking and search or you just talk about effectiveness in conversion rate? You know, here’s the deal. I don’t, it’s effective in ranking and search, but search ranking is only in my opinion, based on how much it resonates with our audience. Right? So it’s more effective for me in sales. It’s answering the questions that people are having and the conversations that they’re having in their head.

12:45
when they’re trying to determine who to buy from and when they’re going to purchase. So top Give me an example of how you’ve used it for maybe one of your shoelace products or something like that. Yeah. So like tying shoelaces. Okay. It’s a very, shoelaces are a weird kind of category because shoe people are weird people, right? They’re absolute

13:13
fans of the entire thing. And so having to, it was hard for me to communicate without somebody actually touching my shoelace versus another shoelace, because you think all shoelaces are made the same, right? And once I started putting in, here’s the materials we use, here’s the weaves that we have, and if you have a problem with it, we will refund you or replace.

13:43
Getting that to look, I can’t even talk about it myself, but having chat GPT talk about it has made it very, very real for our laces. So it’ll have that conversation. Hey, do you know how it feels when your shoes start looking dirty? What’s the best way to clean them up? Buy a new pair of laces, right? That kind of thing. So we have, there’s just so many different kind of people. got the skaters, we got the collectors.

14:13
We’ve got the everyday fitness person. You’ve got the runners. They all use shoelaces, but the conversation with each of those are different. How do we make content for those different audience segments for this exact same product? So in terms of chat, you BT that you mentioned several times. Are you using the paid version and do you in your opinion, is it worth it to to get the paid version? So up until so up until now, I would say you can use any version.

14:42
Right. And most of the content that I wrote, I wrote in 3.5. Okay. 3.5. Right. Right. And I’ve really been good at isolating content in 3.5. So most of the stuff I teach for e commerce folks, you can get out of the 3.5 with recent advancements in the last couple of weeks. Yeah, two weeks. Literally weeks like literally last week. Yeah. Yeah. So

15:12
Its ability to do imagery inside of there is you’re only able to do that with plus and the GPTs that are coming out, which are like these little modules that are being made to do one specific task over and over again. You can only get that with four. So I think those are reasons to upgrade to four. But if you’re just creating everyday content, I’ve never found like, oh my gosh, you know.

15:41
This is so much better with four. If you know how to prompt it right, you can get away with 3.5. And I think, you know, in the next six months, four is probably going to be, you know, I’ll say six months to eight months. Four is going to probably be the lowest level as five gets ramped up and put out here. We got 4.5 for now. I upgraded to four right away, like as soon as it came out because of the plugins.

16:08
And the fact that it was only up to 2021, the four lets you browse the web and it just made a lot of things faster. personally I recommend. Yeah. Three. Yeah. What’s that? It’s up to April, 2023. is. Yeah. It’s up to April now. Yeah. That’s all very recent. Yeah. Yeah. So I think those little things have made it worth the $20 upgrade if you can get in.

16:37
because they’ve just put it on hold. They’ve paused it. They really? Yeah, because so many people were trying to get in, slowed it down. It’s like, OK, we need to put this on pause. I didn’t even know that. Good. guess I’m great. Yeah, in the cool room. So what are I imagine you’ve been playing around with it? How are you using the new features? So honestly, I actually wrote all of the prompts that I used to use into a GPT.

17:09
I just wanted to take a moment to tell you about a free resource that I offer on my website that you may not be aware of. If you are interested in starting your own online store, I put together a comprehensive six day mini course on how to get started in ecommerce that you should all check out. It contains both video and text based tutorials that go over the entire process of finding products to sell all the way to getting your first sales online. Now this course is free and can be attained at mywifequitterjob.com slash free.

17:38
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

17:49
Okay, right. Can you define for the audience what that means? Yeah, so basically, chat GPT is basic knowledge, it has knowledge on everything. And a GPT will allow you to create a little robot that only is good at a specific task. Right. So I’ve taken all of the prompts that I used to put in the knowledge base, and are not into the knowledge into the

18:19
general knowledge into this one GPT. So if you go to that GPT, you can write a product title and description, create a customer avatar, get an audience segment report and a long tail keyword report. So those four things I’ve programmed it to do using my methodology. Does that involve coding or is there an easier If there’s no code needed.

18:48
You’re able to do it with natural language and just typing in commands, or you could actually do audio into it as well if you got that set up on your computer. This is only for the latest version, right? It’s only for the latest version. It literally just came out a week ago. Yeah, literally just came That’s what I was asking. You’re quick to the trigger there. Oh yeah, man. like, look, I think, well, we know. This is all the future.

19:16
And honestly, is what we’re seeing now is you’re going to be able to have these little robots do a lot of the research and the repetitive work that we used to have to do manually, or we would outsource. A lot of that is going to be done by these type of robots. So if I’ve got a robot that I can put in a product skew or an ASIN even,

19:44
and it go out to the web and give me all of the product details of other people, all the reviews from other people take out. This is something I do. I’m giving away secrets, but you can get all the reviews. You take out all the reviews, right? And guess what? When it comes to reviews, it’s like, you know, the Olympics, you need to throw out the top score and the bottom score and take the ones in the middle, right? Because the ones in the middle all have the information.

20:13
on how to make a product better, right? It’s like, oh, we like this product, but it would be cool if it did X, Y, Z. So you find all of those and you have ChatGPT go through it, right? And then find the areas where you can make a better product than your competitor, shoelaces, based on what people’s suggestions, complaints actually are. Walk me through the training process since it is pretty new. Like, what does it take?

20:44
to create this GPT that you created? And is it for public consumption right now, or is it behind a paywall? Yeah, actually, let me make sure because I don’t want to turn it off and on sometimes. OK. And that’s because I’m actually asking people to go out there and beta test this for me. Right. So it’s at Ecom AI boss dot com. Ecom AI boss dot com. OK. Dot com. Right. And the training process is

21:13
if you can imagine having a screen that’s split in half. On the left-hand side, it’s where you create and configure the app, the GPT app, and on the right side is just a little bit of a preview of how it’s going to work. So as you are talking to it and creating this GPT, you can see what you’re doing on the right-hand side. And so when you start the GPT builder,

21:42
It literally says, what do you want to create? And you tell it simply with natural language. Hey, I want to create an AI based bot that will write product titles and descriptions for e-commerce products. That was the first thing I would put in. And it would be like, hey, OK. And it’ll start configuring that in the background. You’re not even touching it. Right. Right. And then it’ll come back and say, hey, well, here.

22:11
Here’s what you should call it. Do you like that name? You know, now I don’t know what it said that it should call, but I already had the URL for Ecom AI balls. So I said, no, you’re going to call it that as a name. And then it comes back and says, okay, great. That’s a good name. You know, nothing you ever do. Does it tell you that sucks? It never does. Right. But it’ll, it’ll come back and then it’ll say, okay, cool. Now let’s create a little icon for it and it’ll use.

22:40
you know, Dolly three inside of chat, TPT and create the actual icon for the GPT. And then it’ll come back and say, how do you want it to speak? Right? What kind of language do you want it to be very professional or informative? So you put that kind of information in and literally going back and forth like that in natural language. You don’t have to use a whole lot of, you know, tech speak.

23:10
You just tell it what you want it to do. And as I’m telling it, I’ll go over to the preview, try it, see what the outcome is. If I don’t like the outcome, or if I was saying, hey, I want more bullet points, you know, and then I’ll tell it, hey, let’s make it where it has five to seven bullet points. Hey, let’s make it so the title is no more than 200 characters. Things like that. And it keeps writing the instructions as you’re going through this conversation.

23:39
Ultimately, you end up with a app, which is a GPT. So a GPT is just an app that runs on chat GPT. Ultimately, one more thing, ultimately, they’re gonna build an app store. Yeah, I know the master plan. Do you think this is gonna put all these AI companies out of business that have these very specialized apps? Yeah, it already has. I mean, so, you know, cause so many of them jumped up.

24:08
to do these little specialized things. And I remember when I was seeing it, I was like, yeah, that’s not gonna be around long. Because if you think about it, like I said, I’m a dinosaur, so I’ve been around a long time. But I remember when we used to have word processors, right? And then you had Microsoft Word, right? And the things that the word processor would do,

24:35
Microsoft would look at it and then make it part of Word. mean, spell check and all that kind of stuff, which is AI, right? Yeah. Did not exist in the first versions of Microsoft Word. People built these spell checkers and said, hey, use this, then create your content with that, put it in your Word doc. Well, ultimately, Microsoft literally found out what other people were doing and just put it into the product as a feature.

25:04
So I knew a lot of these things people were doing were gonna end up being features anyway. It’s just the way it has, that’s the way it goes, Yeah, And now that this functionality is kind of sanctioned by ChatGPT, everyone’s probably just gonna use it to create their own apps, right? I think so. At some level, you know, there’s certain people that just won’t be technical. There’s always an opportunity for do-it-yourself. There’s always like,

25:33
people that will do it themselves, right? Then there’s people that need to have some guidance that will do it in a group, you can do it with them, or you can actually have a service to do it for them. I think there will still be a tier of do it for you. That’s my business. Can we talk a little bit more about the training process? So it asks you questions and you respond. How do you add your knowledge to it?

26:02
that is not prompted by the bot? Yes, that is a good question and something, excuse me, new that’s just came up. They’ve got a knowledge section, right? So these are conversations you can, or conversation things that you can put into ChatGPT. You can upload, you know, images, PDFs, CSV files, and docs. And I think a couple of other things, right? So you can upload those.

26:31
and they become part of the knowledge base that the GPT will reference when it needs to respond to customer inquiries. So when I say that I put my prompts in there that I used to use individually, I took them, put them in a PDF doc and uploaded it and it goes and references that when it makes the responses. these are not, know, the responses you get are not,

27:01
just the standard knowledge-based responses. They’re very, very tailored based on the prompts that I’ve put into it. And that’s how I put them in there, was with that. Now, having said that, there’s also the ability to have actions, right? So you can use API actions. So I could have Zapier APIs put into one of my GPTs where it will

27:30
let’s say I wanted it to go reference a Google Doc or a Google Sheet to find out like what is my latest inventory and it’s all in this sheet. Go check that sheet. It could go pull that from that sheet, make the updates and it could then go back and update the record through a Zapier kind of Zap. Lots of possibilities here. So your APIs

27:58
now can actually be part of a GPT. Haven’t gone that deep into rabbit hole yet, but it’s only a week. So I’m guarantee you it’s going to have a whole lot of functionality, you know, as I start learning more and more. And here’s the cool part, right? I mean, do you know about how to use API’s? Of course. I’m a former electrical engineer. Okay, great. Great. All right. So I have no idea how to use.

28:28
All right, I do. I know the concept, but I’m not a coder. Now, I can literally have it go out with the URL to the APIs, go read through the API, and then code what I want the API call to be. That’s just, dude, and I did that by telling it to do it, not doing it myself.

28:53
Yeah, I’ve been using it for coding a lot, because I don’t know the syntax a lot, because I don’t do it every day. It’s not my main thing anymore. But it works remarkably well. I mean, it does put some bugs in there and you have to understand kind of like how to read the code in case something goes wrong. But it’s pretty good. It’s pretty good, right? Yeah. And it’s only a year old. What’s it going to be, you know, in 2025? So we were talking about this before we hit record, but

29:20
I was going to create SteveBot a while ago. And I was always worried that I’m passing all this information to a large company who’s just taking that information and incorporating into the bot. Do you foresee the ability to be able to do this on your own that’s not owned by one of the large conglomerates like Google, Bing, or Amazon? Absolutely. Matter of fact, so you got to think about this, right? There are people out here right now because you know,

29:49
these language models are LLMs and the first L is large, right? And so there’s research all over the place on how to compress the learning experience for these LLMs. And it’s very similar to the fact that we can, I remember my first MP3 player, right, was

30:18
It was a brick. It a big old brick and it held a thousand songs. Was it the Rio? Was it the Rio? I learned that. Yeah, yeah, yeah. It had a thousand songs on it. Yeah. Right. Today, you can get like, you know, five thousand albums on your phone. I mean, give me a break. Right. So the deal is, is that, you know, memory compression is going on at the same

30:48
speed and at the same rate as a lot of this stuff we’re looking at in terms of functionality is LLM. I will project to you that by this time next year, you will have a chat GPT 3.5 version that will run on your phone in its own environment. Right? Where it doesn’t need to go out anywhere. Matter of fact, there’s already stuff inside of these developer communities.

31:17
that are, I was just watching a video on it yesterday, don’t remember what it’s called, but there’s already one that’ll run on your laptop that has all the functionality of a chat GPT 3.5. So it’s totally inside of your own environment. So if that’s something, I think that’s gonna take off like crazy, right? So we’re not gonna run around trying to get to, I’m getting, hey, you’ve reached your limit over here.

31:47
to write this, that, and the other, I’m going to have it all inside of my own environment soon. So yeah, it’s coming. So we talked about ChatGPT. Are there any other programs that you’re actively using, or is ChatGPT the main one? You know what? Honestly, that’s the only one that I’m actually using. And it comes from the fact that I recognize all these other ones are pretty much using that as the back end anyway.

32:16
So the more I learn about it, the better I feel about myself. But I’m really actually waiting for the next iteration of what Google’s going to do. Honestly, between Google and Microsoft, mean, those are the two. And like we were talking, it’s like, yo, either Google, Microsoft, or Amazon is going to be probably the big three that are playing in this game. I’m probably putting my chips behind Google.

32:46
just because of all the data that they have and own way more than anybody else. So if you’re talking about training, they’ve got more data to train on. But I don’t know. We’ll see where that’s going. used Bard or do you use Bard at all? You know what? I have, yes. I’m on the version where you can use Bard with your apps, but you can’t use it with the paid apps.

33:13
So it’s like my JohnLawson.com is a paid URL. I can’t use it there. I can only use it right now in beta on one of the free IDs that I have. So the things that it’s able to do in terms of updating and filling out spreadsheets, being able to do chat type, chat GPT type functions in the doc.

33:42
and having it come back in the doc is pretty exciting. So I can update the doc right there as opposed to, know, chat to PT copy paste, make adjustments there, you know. So yes, I like it. But the content yet it’s not it’s like still for me at GPT three level, not even three point five. So I know what’s happening. You know, you they’re in the background watching loading up.

34:12
and then they’re going to release. So probably at the beginning of next year, Google will come out with their answer to GPT’s Developer Day. And we’ll see where we are after that. How do you think AI is going to affect search? Because Google released the Google search. I can’t remember what the acronym was, but it had an AI response at the very top. How do think it’s going to affect search and all the affiliate sites and all the SEOs out there?

34:42
You know, to be honest, I think they’re in trouble, you know, but I think they were already kind of in trouble. If you think about it, and me and a friend of mine were having a discussion about this, is that the world pre-TikTok and after TikTok, TikTok has changed user experience so that people are not doing the things that they used to do, you know, they don’t necessarily sign up.

35:11
and follow things. They don’t follow things, they discover things. So I think that nature in and of itself was going to be a big impact on SEO. And I think Google’s not stupid, they understand that. When we started this conversation, one of your first questions was about me and content. And I was saying, in the SEO of the content, I said that the content, it’s really about the

35:41
consumers engagement with my content. That is the most important. I don’t care how it ranks. don’t care if they read it and they take action on it. That is the KPI that I’m looking at these days. So I want to usurp the, let’s stuff this with keywords so we can get to the top. Cause you’re not going to be able to get to the top. The top’s going to be basically, you know, curated from an AI and it’s going to serve it to you.

36:10
as a discovery as opposed to a search. So I think there is some deep impact that’s going to be had. you figure like this, it’s a whack-a-mole kind of world for SEO anyway. It’s like every once in a while something pops up and it was a way for somebody to cheat to get at the top and Google responds by smacking down.

36:40
the mole and you know, AI has made the moles pop up even faster. And I think, you know, their response is going to be like, you know what, forget it, we’re going to take up the whole first page. And then everything else will be after that. And it’s close. Unfortunately, that’ll kill their business model though, right? They have to figure out something else. Yeah, but they know that. You know what I’m saying? I’m sure. Hey, they built this thing really.

37:10
You know, they were one of the leaders. So I’m not really sure how advertising. So the real question is how will advertising change? Yeah. You know, it’s not just SEO, but advertising itself is going to change. And I’m sure you’ve you’ve done this. I mean, you’ve had a podcast for years. Right. And I mean, you advertise. Do you take advertising? I did. Yeah, you did. Right. So like.

37:37
in-stream advertising is way more valuable. When Steve holds it up and says, hey, this is what I used to drink, that’s a lot of value. But you just got to have an audience. So I think we’re moving to the influencer as opposed to the SEO results. Yeah, I would agree with that. What about e-commerce? Where do you foresee people shopping?

38:05
going forward, like looking fast forward maybe like five years, what platform? If I said, I don’t know, would that be okay? Oh yeah, no one knows. Okay, so I don’t know. What’s your best guess? My best guess? Yeah. Honestly, think my, you know, I’ve been saying a long time, you know, that something will replace Amazon. I mean, that’s just inevitable. Yahoo got replaced by Google.

38:32
You know Amazon replaced eBay something will replace Amazon. Will it be in the next five years? pretty possibly In terms of you know overarching You know Amazon right now is the big gorilla in the room I see What tick-tock is doing to be kind of interesting? Yeah, I’d like to see what YouTube Actually lands at because they keep testing all of these different things

39:02
but they don’t seem to ever nail it, which to me has always been a problem with Google. They’ve always had the ability to really make shopping, you know, the thing, but they always would kind of sit back and like, but we had SEO and I think they felt like shopping was competing too much with their main core business that they didn’t spend enough time. But I think now they need to make that shift. So wherever influencers

39:32
have the most ability to do that kind of marketing for brands, I think is going to be the most important place. So would you say that if you were to start an e-commerce business today, that content is going to be king? I’ve always said content is king. OK. I don’t know. is that? See that thing? There it is. I wrote that book, Thick-Ass Social Commerce for Epreneurs.

40:01
Social commerce, right? This is what we’re talking about. Today, I wrote that in 2014. And in that book, I said content is king, but context is queen. Right? Can you define that? Yeah. So content is great. Telling me about your new car. Here we’ve got a new electronic car. I’m really digging the Lexus and their new car, right? So it’s the RX, the first RX, right?

40:31
That’s great, right? But if I get that commercial after I just bought the old RX, it has no relevancy. There’s no context for me there, right? But if from whatever they might know about me inside of these engines, it’s search engine, whatever, if they know I’m looking for a car, when they show me that ad, that context,

41:01
because I’m actually looking, deciding, and just really figuring out where I’m gonna buy that vehicle, it has a whole lot more meaning for me. So the more we can nail that context, the content gets way more valuable, right? So we’re moving from throwing spaghetti at the wall to, I don’t know, serving up Italians, I don’t know, a good way.

41:28
Saying that I mean this is when you wrote that book Facebook ads were just killing it, Absolutely busters before Apple kind of made it difficult for them. Yeah Absolutely, right and to be honest, it was even before that You know, that’s because that was when those ads were killing it but a lot of people didn’t even know that the Opportunity was there and how to use it or that it was going to actually

41:57
be a thing, right? So if you look at that book, I’m talking about, oh, this new platform that’s about to take off, which is Instagram. So where are we at with Instagram now? I mean, come on. It’s launched so many brands and hundreds of millions of dollars worth of sales. And now it’s the dinosaur. But there’s principles.

42:26
That’s the key. Let me close with this question. Sure. Let’s say you have a product and we’ll just call it shoelaces just for kicks because because that’s what you sell shoelaces just for kicks. Yeah, I didn’t even mean to do that. I’m taking that. What platforms would you be using to create content on in order of priority for you? OK, first, I come from this real thought of one platform. OK, only one platform. I don’t want to be everywhere.

42:56
If you manage to exhaust one platform, fantastic. Start other places. Multiplication by zero is still zero. Nobody watching your stuff on Facebook. Go somewhere else. If I were starting over, I would probably start with TikTok. Okay. Right? And I’m actually opening up a shop right now. More than anything, my coaching consulting thing. I want to know what the opportunity is.

43:26
and how to take advantage of it. But I think that is an emerging platform. And sometimes you gotta be where the puck is about to go. And I think the puck is about to go somewhere in that realm. Will it be TikTok? I don’t know. The government could cut that out in a heartbeat, you know. But guess what happened? They just had dinner with China. Very important for those of us that are building TikTok businesses. They’re getting that

43:56
that harmony back or at least enough harmony to be able to exist in these kind of digital spaces. It’s very important. So I think those kinds of things are a TikTok type platform and with shops are going to be where this stuff is going for sure. So John, where can people listening to this episode find you? Definitely. I’m gonna make it easy. Colder ice. Just look up.

44:26
Colder Ice. Search for Colder Ice. C-O-L-D-E-R-I-C-E. And you’ll find me on every platform. I am Colder Ice everywhere. Of course, my name, John Lawson, but it’s very common. But Colder Ice is where to find me. And if you want to beta test that eCom AI Boss thing, check out eComAIBoss.com and you get straight to the preview of my product that I have a GPT around.

44:56
Cool. Well, John, hey, thanks a lot for coming on the show and talking AI. Awesome. Thanks so much, bro.

45:05
Hope you enjoyed that episode. Now, if you’ve been on the sidelines with AI thus far, then get off your butt. Otherwise, you will quickly get surpassed by your competition. More information about this episode, go to mywebquaterjob.com slash episode 518. And once again, tickets to Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go over to sellersummit.com.

45:35
And if you are interested in starting your own eCommerce store, head on over to mywifecoderjob.com and sign up for my free six day mini course. Just type in your email and it’s sending the course right away. Thanks for listening.

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517: Breaking Updates With Google, AI, Amazon And More With Toni Herrbach

517: The Latest News With Google, Ai, Amazon And More With Toni Herrbach

I currently run two podcasts My Wife Quit Her Job, and Profitable Audience with my partner, Toni.

Recently, Toni and I decided to pool our resources together and merge Profitable Audience into My Wife Quit Her Job. So from now on, this podcast will have a new segment to the show called Profitable Audience, where Toni and I will riff about content creation and making money online, just the two of us.

In this episode, Toni and I discuss the latest news in the online business space for 2024.

What You’ll Learn

  • Recent changes with Google and AI
  • NYT sues OpenAI for copyright infringement
  • Breaking news with Amazon

Sponsors

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Transcript

00:00
You’re listening to the My Wife Quitter Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Now you all know that I currently run two podcasts, this one which is called My Wife Quitter Job and my other podcast called Profitable Audience with my partner Tony. Well recently, Tony and I decided to pool our resources together and merge profitable audience into My Wife Quitter Job. So from now on,

00:26
This podcast will have a new segment to the show called Profitable Audience, where Tony and I will riff about content creation and making money online, just the two of us. But these episodes will be in addition to the regular interviews that I normally conduct on the show. But before we begin with this first episode, I want to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online.

00:55
And unlike other events that focus on inspirational stories and high-level BS, mine is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet. Now, I personally hate large events, so the Seller Summit is always small and intimate. Every year, we cut off ticket sales in around 200 people, so tickets sell out fast.

01:24
and we’ve sold out every single year for the past eight years. Now, if you’re an e-commerce entrepreneur making over 250K or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s gonna be held in Fort Lauderdale, Florida from May 14th May 16th, and tickets actually go up in price this Thursday. And from here on out, they’re gonna go up in price every two weeks. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at

02:18
Now onto the show.

02:27
Welcome to the My Wife Quitter Job podcast and a new segment to the show called Profitable Audience, where my business partner, Tony and I discuss all things related to content creation and building an audience. And in this episode, Tony and I are going to discuss the latest news in the online business space for 2024 because a lot has changed. So we haven’t told each other what we’re what our topics are. Yeah. So this could be a crapshoot here. I don’t think so. I don’t think so. I don’t think we subscribe to the same publications.

02:57
We probably don’t. You’re probably going to be talking about, I don’t know, lifestyle stuff, and I’ll probably be talking about tech is my guess. Wow. Wow. If that’s not an Oscar snub. I don’t know. Is that true? I don’t know. I’ve got some tech stuff. Okay. All right. So you want me to start or you want to start? I’ll go first because this is an interesting one. And we actually just released a podcast on Tmoo a couple of weeks ago when you’re listening to this. And I just read an article yesterday that said Tmoo’s ad spend jumped

03:26
1000 % in the last like six to nine months, which is not surprising considering, you know, the episode that we did where we talked about how they’re just like blasting basically right now everything. But what I did think was interesting about that information is that 76 % of that ad spend is on social media. I believe it. Do you know, is it Instagram or TikTok or? They didn’t say.

03:54
But they basically said, you know, their big non-social spend is going to they’re going to do another Super Bowl commercial this year. They did one last year, which I don’t remember. I don’t know if you saw the Super Bowl commercial for them last year or not. I actually don’t even remember who played in the Super Bowl last year. Because I only watch for the ads. Didn’t the Chiefs beat the Eagles? Oh, the Kelsey brothers played each other. Yes, I should remember that. So anyway, so they’re going to do another Super Bowl commercial this year.

04:19
But then the majority of their ad spend will be on social media. The other interesting thing that they said is when Tmoo advertises, they don’t focus on a particular product. Like they’ll do a carousel ad with like a headband in one frame and a drawer organizer in the other. So there’s like, it’s almost like absolute chaos, right? I see their ads in everything, everywhere I go actually. So.

04:46
I don’t see their ads a ton. What’s funny, I don’t see them on social media. Where I see them is like in a sidebar on like a news site. That’s where I tend to see like maybe it’s retargeting because I have been to the website a couple of times. I see them on TikTok. I see them on Instagram. I see them on YouTube. Like some crazy Chinese lady with a bad accent comes and talks. I guess that works. OK, total side note. But have you seen the crazy Chinese lady on social media?

05:14
who does product reviews where she literally like holds the product up, throws it down and slides it. And then the next product appears. No. So she’s got millions of… I didn’t see her on TikTok. I heard about her from a site. Basically this girl has gone completely viral and she doesn’t even talk about the product. She literally will like take a purse. She’ll hold it up like aggressively, slam it down and throw it to the side and grab the next product. And in each video she does like eight or nine items.

05:44
Um, which just goes to promote them or I mean, I don’t know, but I guess it just goes to show you that having a shtick, like doing your own thing, like, cause like everyone’s like, Oh, everyone does product reviews. Everyone talks about stuff on Tik TOK or Instagram reels. Well, not everybody’s doing this, like this aggressive, you know, and she’s like this tiny little Asian lady. She’s like hurling products to the side. Right. So anyway, just goes to show you that if you have a unique take on something, you can still be successful.

06:13
So Tmoo is losing like $30 in order. Yeah. According to this article on the Wired, this is an older article. It’s like May of 2023. But yeah, they’re just trying to take over the market. I actually have a couple of YouTube videos coming out on Tmoo. You know what’s really funny is Tmoo has been reaching out to me a long time to create a video for them. And so finally I was like, all right, let’s see how much they’re willing to pay. And so I say, okay, I’ll do it for $10,000.

06:43
And then they said, well, our budget is not that high. Can we give you a whole bunch of Tmoo products? Can we give you 872 Tmoo products, which equals a thousand dollars? Yeah. So, but what’s funny is I am coming out with a Tmoo video, but it’s probably not going to be what they’re expecting. Well, they’ve already emailed you once.

07:10
But no, what I’m saying is they’re not gonna, they wouldn’t be willing to pay for this type of video that I’m putting out. Right? Just because the content is going to be unbiased and. Yeah. So the one thing I was thinking, I was thinking to myself, so Timo is spending a lot of money on ads. Seventy per six, seventy six percent of that is going to social media. Should we look at that and go, OK, should we be moving our ad spend to like social media? Right. Tick tock shop or tick tock ads, Instagram ads.

07:38
And then I thought, I don’t know if I would follow what Tmoo is doing because right now they’re in a bleeding money phase, right? Like they’re in a throw money at everything. So if you’re listening to this and thinking like, oh, well, Tmoo is doing it. Maybe I should try it. I wouldn’t take that advice. I wouldn’t do anything that Tmoo is doing unless you have just a gigantic budget. Yeah. And they’re just going to drive the ad costs up. Yeah. Yeah. Yeah. Actually, you know, what’s funny is like Tmoo is literally advertising for every single product under the sun. Yes. For all of my search terms.

08:08
On Google, I see Tmoo now. So they’re just like blanketing every single demographic, I think, every vertical. Yeah, I would agree with that. But we’ll see. We’ll see what happens. It’ll be interesting to see in like two or three years what happens. I don’t know if I released a podcast episode on this yet, but people are getting a little pissed that China essentially or Tmoo doesn’t have to pay any taxes, import taxes or sales taxes, because everything’s coming directly from China and it all falls under

08:36
less than 800 bucks, which means they don’t have to pay taxes. Right. And people are getting pissed, right? Because it’s basically destroying a lot of these commodity type businesses. Yeah, for sure. think I yeah. Okay, so my piece of news is about a week old, think, at this point, but New York Times is suing OpenAI for copyright. Okay. Because they claim that OpenAI has used New York Times articles to train it. And they’re suing for

09:06
billions of dollars in damages. This is interesting to me because depending on how this case goes, it could really affect content creation. For example, if OpenAI, I’m sure they’ve crawled my site because I can say, hey, write this in the style of Steve Chu and they know who I am. So clearly they’ve crawled my website, right? If they lose, if OpenAI loses, that might mean that you can charge

09:34
to get your content crawled by AI and maybe potentially get compensated for it. But if they lose, then I guess nothing happens. But I’m pretty sure this case is probably going to go on for a very long time. I can see this case going to the Supreme Court. And there’s still that case of, I think it was earlier last year, middle of last year, artists were suing Mid Journey and other AI image creation tools because they’re stealing the same

10:03
style or likeness of art. I think that one’s a little harder to prove. I don’t I think this is going to get really, I don’t know what the word, I want to say the word swampy because that’s what it reminds me of. Like I feel like it’s just going to get really gross with like people coming after AI for, for content. Because if you think about like, think about books, right? People write a work of fiction or nonfiction, right? Like, you know,

10:33
You wrote a book. It took a long time. was a lot of work. You know, you’d probably be pretty ticked if your book came out like the AI version of your book, right? Like if because that’s AI just can copy other people’s things, basically. Right. It’s verbatim, right? I not verbatim. But it’s like the ideas and everything else is like this. The spin that you put on something can be copied. Right. It always has been someone just had to. It was a lot more work before. Right.

11:02
Yeah, I’m just thinking like, is anything really original these days? Right. Because then that brings up like the whole I’m probably going to botch this, but like wasn’t 50 Shades of Grey like fan fiction from Twilight or something like a lot of like big series and books came from fan fiction from other books. Right. So it’s like this is this has already been happening for years and years and years. It’s just like how much of your own uniqueness are you going to put on something?

11:32
to then make it yours. I think the problem with AI is there’s a lot of people out there that get information from AI and don’t put any spin on it, right? It’s basically like copying word for word at that point. You lost me at Twilight. Sorry. So I think I could be getting the series wrong, but I think Fifty Shades of Grey was a fan fiction book about Twilight where it’s like.

11:59
Fan fiction is basically where they change the characters and the scenery, but the entire plot and everything is the same. it could be the wrong book, but basically some of these really huge blockbuster books that have been made into movies and made all this money started out as fan fiction from a book that was written before. And all they did was change the main characters. So it’s not vampires, it’s something else kind of thing. So it’s not much different today.

12:28
except for you did change the characters, you did change the scenery. Now the thing is set in outer space versus this or whatever. So that’s where I think it’s going to get really ugly because we’ve already been doing this, but it felt like a little more creative. Now it feels zero creative, right? It’s just like, let me plug this in and then spit out this information and then just use it. You know, it’s funny is Jane, my wife, Jen’s been complaining that all the books she’s been getting from Amazon now.

12:58
Yeah, crap. She uses Kindle Unlimited a lot and she’ll you know, she’ll try new authors, but she suspects that AI is generating some of these stories and which is 100 % totally crap now. Yeah. Huge problem. So yeah, so I just feel like it’s going to get worse and worse, right? Because the problem is now people are just using it as a shortcut and not actually putting their own spin on anything. So along those same lines, since we’re talking about AI, you know, Chinese sellers on Amazon are using AI to create

13:27
Amazon listings. Right. And there’s products on Amazon now that say that are titled, I cannot fulfill this request. It goes against open AI use policy. So literally they’re writing these scripts to list all these products on mass and they’re not even checking. Wow. The title. Right. See, that’s where the problem that’s where the problem comes in. It’s like it’s not even you’re not using AI as like a jumping board, you know, diving board off into something of your own. It’s just like literally

13:56
Copy and pasting. I mean, this is all done by a script, I’m sure, or a program that’s just mass listing millions of products. But I mean, is Amazon not even checking for this stuff? How can you have a title that says, I cannot fulfill this request? goes against OpenA. So I feel like Amazon should have just an AI tool that immediately puts down listings that have that in the title. There’s keywords in the title that immediately flag a listing. Yeah.

14:25
I mean, this is a huge problem. Well, speaking of another thing about AI, it’s interesting. don’t know if you saw this, but LinkedIn just announced that they were discontinuing their lookalike audiences. Oh, OK. OK, totally a clickbait headline, right? Because I mean, I don’t run ads, but I know you’ve run ads and my friend Andrew runs ads. I’m in the space. understand. Lookalike audience are really valuable.

14:51
Right, like because it allows you to target people that are very similar to your current customers, right? They have the same, you know, profile qualities. So I saw this title on like six different places this week, right? And so, and I was like, well, I don’t really care about LinkedIn, so I’m not gonna read it. But then when we were like, hey, let’s talk about news, I’m like, well, this might be interesting, right? Like why is LinkedIn doing this? You know, our friend Chase is like crazy growing LinkedIn, talking about how you should be using it, all this stuff. So I was like,

15:20
Well, it sounds like LinkedIn is kind of growing. So why would they do something that makes no sense? Well, they’re discontinuing it because they’re doing predictive audiences, right? So now it’s all AI, like predict, they’re going to use AI to predict the audience as opposed to look like, which will probably in the end be more effective once they get enough data about people, although they probably have tons of data about people already if they’re LinkedIn users.

15:47
But that was in none of the headlines. It wasn’t like they’re getting rid of lookalike audiences to go with predictive audiences. It was like, they’re getting rid of lookalike audiences. I like, that’s I don’t actually understand the distinction because lookalikes is predictive. You’re finding a group of people that are similar. So I would think of it as like, so let’s just talk about a lookalike audience on Facebook. So you upload your group of customers.

16:15
they’re all 35 to 40, right? So Facebook is gonna pull people who are 35 to 40. They all are in toddler Facebook groups. So they’re all in, like, pull people with toddler Facebook. Like, they pull, so I feel like with AI, it’s just predicting people that are most likely to have that behavior of taking the next step. So it’s pretty similar, right? But it’s not, to me, it’s like they’re just kind of changing the verbiage a little bit.

16:42
So anyway, but I thought that was an interesting, very click baity news title because it’s like, well, they’re not really, and you can actually still use lookalike audiences on LinkedIn. They’re just not going to update that group. So it’s basically like whatever bucket of people you had when it sunsets, like February, whatever is going to be like, you could still use that bucket of people in May. It’s just not going to dynamically change. So they’re not going to add new people, you know, drop people off based on behaviors.

17:13
I just wanted to take a moment to tell you about a free resource that Tony and I offer over at Profitable Audience that you may not be aware of. If you are interested in learning how to make money with content, whether it be through blogging, podcasting, or YouTube, we put together a comprehensive six-day mini course on how to get started blogging that you should all check out. It contains both video and text-based tutorials that go over the entire process, including a full tutorial on how to set up your first content website. This course is 100 % free.

17:40
and you can sign up over at profitableaudience.com slash free. Once again, that’s profitableaudience.com slash free. Now back to the show.

17:51
So since we’re talking about advertising, Google just as of January 4th, eliminated third party cookies from the browser. I saw something about this. Yeah. So for anyone who’s listening who has no idea what that means, let me just give you a brief overview of just cookies. Like cookies are these little files that get placed on your browser to identify who is browsing. It’s literally like this little code. And that code is like an ID that you

18:19
can be used to look up like this huge database of all your information. A first party cookie is a cookie that is placed when you visit someone’s website and it’s placed by the website owner. But third party cookies are like, know when you see ads on like a blog, let’s say you’re on someone’s blog, that means another company, not the blog owner, but another company can actually insert cookies on your browser as well. Google’s eliminating the ability for

18:49
other companies, not the owner of the website, to put these cookies on your browser. Basically what this means and the implications of this really is that it’s going to hurt advertising. It’s amazing. If you were to ever look at the amount of cookies that are interested in your browser, you would probably be shocked. So prior to this change, you go on a website that has Google AdSense on it, for example. You’ll get like

19:15
cookies placed on from practically every single advertiser, whole bunch of different platforms outside of your own cookies. And that means like all these companies are tracking your usage across the web, assuming you don’t have cookies blocked. And what’s ironic about this is Google is the one eliminating third party cookies. And I think it’s smart on their part because they have a lot more information about the user outside of these cookies. So essentially, I think Google is strengthening their monopoly in the online advertising space.

19:45
I mean, they didn’t have to go through anything to do that. They can just make that decision. mean, they control Chrome, which is the most popular browser, right? Right. And traditionally, let’s say you were a different ad network that wasn’t owned by Google. You would rely on these third party cookies to do the tracking. Google is not allowing cookies, third party cookies anymore, but they own the browser. Right. So they’re cooking you all the time.

20:11
Well, they’re not using cookies probably. They’re just tracking directly through their platform. And they have Android also. Every website you go to, everything that you click, they already know. Right. So the way they pitched it though was like, yeah, we’re not going to let other people collect your data anymore. Just us. Yeah, exactly. Just us. So then we’ll sell it to these other people for some premium. mean, Apple’s been doing that for a long time, right? So Google’s just.

20:39
taken a page out of Apple’s book, yet they still have all the information. Yeah, that’s a real bummer. We should have saved that till the end. Oh, it’s kind of that’s a kind of a deflating news story. Well, you were talking about advertising, so I know that. Yeah, I have more advertising stuff, actually. But so I’m curious because I actually don’t know this. Can you see where your cookies are? Yeah. Well, you can’t see the information. It’s really just an identifier.

21:06
But yes. Can you tell who’s cookied you somewhere in your… Yeah, you can. Yeah, you can to a certain extent. All you got to do is right click a web page and then click on Inspect, which is the debugger for Chrome. And then you can just look at your cookies and what’s stored for that. So they’re all in there? Yeah. For example, if you were to go to Bumblebee Linen’s, I don’t know if… actually haven’t checked recently if this has been reduced, but there’s probably like… I don’t know.

21:35
50 cookies if you visit because each one of my tools that I have on the site, Postscript, Klaviyo, all that, they’re all putting cookies on. But there’s not like a place where like I’d have, so if I went to Bumblebee Linens, I could see everybody that was cooking me from Bumblebee Linens. But I couldn’t, there’s no way to see like every place in the past week that’s cooked me. In the past week? Yeah, you can’t, I mean, these are just files on your browser and you can see them. You can see how many there are, yeah. Where?

22:04
in the debugger for the browser. But that’s only if like that only shows me what’s on from Bumblebee linens. It doesn’t show me from. Oh, you just mean in general Old Navy, which I was on, you know, three hours earlier. You know what I’m saying? Yeah. Yeah. I’m sure there’s a way to do it. I just have never tried to do that before. I would be afraid. I would be afraid like I because I I don’t mind being so I just feel like we do this for a living. I don’t mind being tracked and everything because I kind of want to see what comes up. Like I like to see

22:33
how my behavior influences what I see. since I don’t do anything, I feel like I don’t do anything interesting on the web. I’m not worried about like, oh, you visited this webpage. But I would be curious to see all the different third party I wouldn’t wanna know. Actually, since we’re talking about advertising, here’s a funny fact. You know how a lot of people are using ad blockers? Mm-hmm. Well, some people are using ad blockers for YouTube so they don’t have to watch the commercials. Mm-hmm. Right? So YouTube,

23:03
I don’t know if this is still the case because there was backlash for it, but YouTube was purposely slowing down their experience loading for people who had ad blockers. I’ve so okay, here’s where I get the hate mail. You can buy YouTube premium and have a premium experience where you don’t get ads, right? So it’s like to me, it’s like, you’re kind of skirting.

23:27
the system like with the ad blocker. So it’s like, you’re not going to have as good of experience. I don’t know, considering there is a premium model with no ads because you’re all this. This is where this is what’s always bothered me about the Internet and what’s bothered me about like, I don’t know, users of the Internet. I remember when I was blogging probably two or three years in and this is back when, you’re putting up a three, four, five posts a week.

23:53
Every post is like heavy content, right? Recipes, DIY projects, how-tos. And I would have people email me complaining that like, they had to have an ad or like, oh, well that’s in a fit. Like people mad about it, right? And I’m like, you would have to go buy a cookbook, you know, for $29 or you would have to go buy a manual to do this or you’d have to buy a cleaning how-to book. Like, especially before the internet was like as crazy as it is today.

24:23
It’s like, you’re complaining to me that you see an ad when I’m giving you all this information for free. Like that’s always bothered me because I’m like, I’m teaching you how to do stuff. Like you teach people how to do all sorts of stuff on my way of quitting job. Who cares if there’s an ad, who cares if there’s a way for you to make money from it? I think I mean, I agree with you, but I always think maybe I’m biased. I’m sure I’m biased because that’s what we do. But like.

24:52
If you need, like if I need something, so for example, we have this puppy, right? She’s good, but she probably, I probably need to get a trainer just to like work with her on some behaviors, cause she’s big. And it’s like, am I willing to pay a trainer to come to my house and train the dog? 100 % I am, right? But if I wanted to do it myself and read articles and go to like Kristin’s site, right? And read more articles on things like, know, pets and training and things of that nature, then.

25:19
that’s fine too, but then I’m saving probably $500 by not hiring a trainer. So I should be okay with an ad, right? It’s like, it’s an either or it’s not, you know, I don’t know. No, I, I, I agree, but just people have been trained, you know, to get free stuff. I know, I know. So it’s annoying, but anyways, they got a lot of backlash, so I’m not sure if this is still happening. I just thought it was really interesting.

25:49
I think they should do that because I just started making YouTube videos and let me tell you, it’s not easy. just made a, I made, I made a video this morning right before recording. My hands are still sticky from this video because I was making a chicken marinade and um, I

26:06
Of course, I’m making a recipe, but I’m doubling it because it’s for my family. And I have everything in a Ziploc bag with this marinade and I go like to zip it up, but I push pressure down on the bag and all the marinade comes out all over me, all over my hands. And it’s like oil and vinegar and all this stuff. And I’m, you know, as I’m filming myself, which of course I’ll keep in. Yeah, perfect. That’s like, did you do it That’s video gold! Yeah.

26:31
But it’s still, I like wash my hands like four times, but I can still feel it. So yeah, listen, if you’re making a video, you deserve to get some ad money. Cause it’s it’s a pain in the heinie. I’ve made like seven videos this week and I was like, wow, I’ll watch every ad happily for these people. That’s really impressive. You filmed seven videos this week. I have no audio issues. Thank God. So yeah. And now I have like six short.

26:58
scripts written, so I’m probably going to film those either today or tomorrow. So, but speaking of like using the internet to find information, I don’t know if you saw this, but TikTok is growing as a search engine with Gen Z. But what’s interesting is once again, the headlines were very misleading, only really in the categories of recipes, workouts and fashion, which is honestly what I think TikTok’s good for.

27:23
Like the recipes on Tik Tok are actually really, I mean, some of them are terrible. I can’t stand when they like put uncooked pasta in a dish, but yeah, Jen, and whereas the boomers like zero desire to search on Tik Tok for anything. So I actually use Tik Tok now to search for problems and solutions. So our heat press actually just broke yesterday and it gave out this weird error code and

27:49
I couldn’t find like all the search results in Google were crap. They were like affiliate sites saying, this is the best thing ever. That was another piece of news by the way. Oh, okay. Yeah. That one’s a big one. could do a whole episode on that one. But anyway, so I went on YouTube next and it was still kind of crappy, but people were just doing reviews and I didn’t want to wait, watch like a 10 minute video just to get a simple answer. Yeah. So I went on Tik TOK and there’s a whole bunch of people complaining about this same error.

28:17
And then different people had different ways to fix it. Some guy had to take apart his heat press. And then I just discovered that our heat press is still under the 30 day return policy at Amazon. So we just returned it. But the point is that TikTok had pretty good information and you don’t have to watch anything long. It gets right to the point. Well, that’s what Jen Z said is they like the digestible size of the content. So actually reading that made me think, OK,

28:43
Cause I was gonna do, so I wasn’t even gonna do recipes on YouTube. And then Andrea was like, you gotta do recipes on YouTube. They’re just such a pain. Like I am not a chef. I don’t need people telling me my knife skills are bad. I know they’re bad. So I was just like, I don’t really wanna do recipes. But then she talked me into it. But now that I just read that and I’m like, actually a lot of people use TikTok for recipes. And most recipes really can be presented to you in three minutes, know, a minute to three minutes. They’re not, my recipes aren’t complicated.

29:12
I’ll probably I’ll probably just see if my guy can cut him down. I don’t want to film him twice If it involves filming him twice, I won’t do it. So we’ll see I should do a last-minute recipes for dudes Like I made a chicken nugget pizza the other day. I was just gonna say is it your chicken nugget quesadilla? We JD’s seafood pasta with the gold

29:34
So what came up in my memories just the other day was when my son made the I always think of you he made the buffalo bites quesadilla So he took the whatever the Frank’s buffalo bite. So they’re the boneless chicken wings He chopped him up and then he used like sour cream Monterey Jack cheese and more hot sauce, of course, because he’s a boy

29:58
and like made a quesadilla with it. And it smelled so good. I came out of my office. Like I remember this when you made it a couple of years ago, but it was on TikTok. It was on a Facebook memory. was like, I remember that, that boneless quesadilla. I was like, if I liked hot, spicy food, that thing would have been awesome. little sour cream to dip it in. You’re good to go. Yeah. Yeah. So I mean, TikTok, you know, I’m going to try it. So we do have someone talking at Seller Summit about TikTok shop.

30:25
I’m going to try to get TikTok shop because I have a contact in the person who runs it. I’m going to see if they want to actually come to the summit, maybe as a sponsor to answer some questions because it’s growing like gangbusters. Yeah. Despite that setback where people were getting banned just for doing stupid stuff, I think that just happens in the life of any platform. Yeah. So this is funny. So I just happened to. So both my kids play volleyball.

30:52
And whenever you play volleyball, you have to travel to these tournaments and you actually get to know the parents pretty well. And so I met a parent who does AI video, literally like stuff that people are using for YouTube automation. And what is surprising, because I asked her about it, because I, oh, maybe I’ll give it a try. Like, I’m not going to do YouTube automation, but her service, which is called Rizal, actually will

31:22
take any script, create B-roll narration titles, and turn it into like a video. That’s pretty good that you’ve scripted. And also like if you, if you say any statistics, it’ll automatically like detect them and flash them up. the service is really good for podcasts also. So if you have two heads, two talking heads, it’ll literally change the picture to the person speaking. Interesting. And also do annotation. So

31:50
That one’s not released yet, but I can’t wait to give it a try. since we’re friends now by nature of this, she’s taking a couple of my podcasts and we’ll just see how goes. But it could save a tremendous amount of time in just editing. remember how I talked about Opus in Office Hours, a couple of that. Opus is a tool that basically generates AI clips out of your own existing YouTube videos. Her tool takes it one step further and, you know,

32:20
literally just whatever you type in and finds B-roll for you. And they have access to the largest library of B-roll. Anyway. that wasn’t like the whole piece of the news. Like it turns out that large news outlets are doing this too. Meaning they’re just having AI generate the content. Not a human and just posting it. And you would think that large media outlets would want

32:49
you know, they’re writers to write the content for these things. Yeah. But I think just right now it’s like the wild, wild west. Like anything that you throw up, you know, in quantity, eventually something’s going to hit. We’ll see. I know. I just found that surprising because I know that I would never put out pure AI content. I know. Unless it was just an experiment where I just generated like a thousand pieces of content and just posted them. Right.

33:17
But all these big news outlets, I’m not going to name any names on here because, know, she kind of told me in confidence, but big names that you’ve heard of are doing this. Meanwhile, the New York Times is suing. Yeah. Meanwhile, yeah, exactly. I was actually looking at my YouTube feed. It’s just the other day, probably a third of it was AI generated content on YouTube. And I think it’s because I watch

33:47
Actually, you have my YouTube account. watch a lot of sports sometimes, so sorry for messing up your algorithm. I watch a lot of sports stuff. And all these sports news things are now AI generated. I have noticed that about the sports stuff. And not only that, it’s false. I don’t want to bore anyone, but one of these videos I watched claimed that the Warriors did a trade when in fact they didn’t.

34:17
But it got me to click on the video. It got so that’s I think the problem is there’s a lot of stuff that’s not true. And now it’s harder to find what’s true and what’s not true. Yeah, it got me to watch the ad because you have to watch one before you get the video. And then even though I clicked away, they still got paid for that ad, right? Yeah. That was a depressing one, huh? So I have an interesting one. OK, all right. So the FTC just ruled that TurboTax

34:47
can’t advertise as a free service. Okay. So TurboTax is one of the shadiest. I’m not recommending TurboTax, but I, there’s an interesting point to this, but go on talking about TurboTax. You know, they make a lot of the, a lot of their money from TurboTax every year. used to work there. Oh, I didn’t know that. Yeah. She used to work it into it.

35:14
Okay. Oh yes, I did. I forgot that they own Termitaks. It was there before they actually started doing all the shady stuff. But they have a free version, but they hid the URL. They hid the URL so that you couldn’t find it. And the only thing you could find was the paid version. Well, apparently about 70 % of the people don’t even qualify to use the free version, which is why the FTC

35:43
has told them they can’t advertise as something that they have a free version because the majority of people can’t use the free version anyway. And so basically it’s a lie, right? Like it’s not free because you don’t, it’s not free for you. might be free for, it’s probably free for like every 19 year old that works an hourly job, right? And that’s it. It doesn’t live in a state that you have to pay state income tax. What I think is interesting about this is that,

36:11
I wonder if this will eventually trickle down to, and it probably won’t, right? Because these people are small. mean, TurboTax is huge, right? Like it’s a huge company. They run a million ads from January to April. But there’s so many marketers out there that advertise that you can come to something for free, but it’s like barely free, right? It’s like what you get for free is garbage. And then, you know, it’s an immediate pay. And I wonder if that will eventually trickle down into things like that.

36:41
I mean, I think we advertise a webinar. We don’t advertise. We promote. So we don’t even actually run ads. But we have a free webinar. But I believe that our free webinar, you could easily get started and start doing things and never sign up for our paid course and have success. And we know people who go to all the webinars and do things on their own. It’s very possible. Now, if you want in-depth handholding,

37:09
cheerleaders plus like every question you’ve ever wanted answered under the sun, you sign up for the paid version, right? Which is true for most things. But I wonder if this will ever trickle down on a lot of these, what I think are pretty sleazy marketers who advertise things as being free, but they’re truly not free. Yeah. Yeah. Turbo tax, man. You know what I don’t get about this country? And I’m sure there’s some shady deals in there somewhere, but the government wants people to pay taxes, right? They want them to do it right.

37:39
so they can get paid. So why doesn’t the government just put out a free tool? It can’t be that difficult. mean, I technically they do. put out the forms, but you have to have a PhD in accounting to do the forms. But it’s a paper form, right? Yeah. Oh, I totally agree with you. they should. Well, they should just simplify everything, right? Like it’s so complicated that it’s like you clearly don’t want your money. I’m pretty sure it’d be pretty easy to put together some software.

38:08
That’s like 75 % of what TurboTax does. Oh, 100%. And just give it away for free and it’ll probably encourage more people to file correctly or even file, right? Yeah. I don’t know. There’s just things, some things that are just, I just don’t get. So Intuit must have some deal with the government, some crazy deal where maybe the government’s getting paid. Well, now they can’t advertise it as a free service anymore. So, which has been their, that’s been their

38:37
of their marketing strategy for as long as I remember them being online, like advertising online. If you guys are listening to this, go ahead and Google TurboTax. This scandal has been going on for years. Yeah, they’ve been doing all sorts of shady stuff. It drives me nuts. Okay, my last piece of news is kind of depressing too. All of your news has been depressing. I’m trying to think if I have anything positive.

39:06
Well, okay. So Google Podcast is going away. Okay. I know that doesn’t affect I don’t know what Google Podcast is. It’s a podcast app to listen to podcasts. Oh, okay. Is it for Android users? It’s the one that I use, which is why so the three people that are using it are going to have to find another way. You can’t listen on Spotify? What do you use? use the Apple’s app. Okay. Yeah. Okay. I don’t like Spotify. Have you ever used Spotify?

39:37
Not to listen to podcasts, I use it all the time to listen to music. Okay, do you have a paid version or do you have a free version? yeah. Oh, you have a paid, okay. So I’m using the free version. Yeah. And it just constantly has bugs or stops, ads and whatnot. So it’s not really like a pure podcast experience. That makes sense. So yeah, I’ve had the paid Spotify app for a long time, mainly because

39:59
The main reason why I got Spotify was to have music to listen to while running or at the gym. And there’s nothing like an ad for like hemorrhoid cream that will slow your rundown. Right? Like it’s just, didn’t want, I was like, I just need to be able to listen to my playlist and be able to download it and not even think about it. And so it’s worth it. And I have like the whole family accounts. My kids have, you know, they can listen to stuff and all that jazz. So. those are the ads you’re getting. I’m getting hair loss ads and erectile dysfunction now.

40:27
Everyone gets the erectile dysfunction. They’re all over the TV. They’re everywhere. Like, do we just watch shows made for 50 year old men? that the deal? Okay. Let’s this on a positive note. Give me a positive piece of news. Oh, you need a positive note? Okay. This is kind of positive. had two. Actually, I’m to do one that’s not positive. It’s just information, but people need to know this. So by the time this podcast airs,

40:54
The new DMARC regulations will go into effect about having the unsubscribe on your email. So if you’re not in compliance with that, you need to do it like immediately because we’re already gonna be past the deadline when you hear this. But an interesting thing that I read this morning actually was for your spam rates, you want to keep it below 0.1%. So that’s your goal for spam and never, never, never get above 0.3%.

41:23
So if you’re looking for like a benchmark for your email list and what you’re sending, that’s where it needs to sit. Now, most people sit there just fine if you’re sending out good content newsletter type stuff. But if you haven’t ever checked that, this is the time to do it and then make sure that you are really culling your list before, well, now when you hear this, it’ll be done. Make sure you get those people that are non-engaged off your list. Yeah.

41:51
I mean, we didn’t do a good job of explaining all this stuff. I mean, we explained in the class, but Google and Yahoo are basically cracking down on email spam. and Tony mentioned DKIM, SPF, and DMARC. These are just technical terms for ways to authenticate the email to make sure that you were the one sending it. In the past, you didn’t have to implement these things, but today you do.

42:19
And this goes into effect, I believe February 1st. Yeah. So this will be out after that date. Yeah, this will be out after that date. in the event that you do any email marketing, you have to get that set up. And practically every email marketing company that I know has been just sending out mass emails. Yeah, you know about this for sure. But what I haven’t seen, because everyone’s talking about the spam, but no one’s given like a hard number. Like this is where you need to keep it. And then Drew Sinaki came out with something a couple of weeks ago.

42:48
about it, of course, him saying, but this is why you should use direct mail. And then I read something today on a reputable site. can’t remember which one I was reading, but so yeah, just make sure you’re in compliance with that. It’s always been 0.1%. You know, what’s funny is a long time ago, I used to send out emails in different chunks. I’d send it out to my most engaged and then all the way down to the least engaged. Yeah.

43:18
That’s the wrong way to do it. I just set it all in aggregate now because then like they look at the spam rates percentage wise, Percent. And by amassing everything together, the spam rate is always going to be lower. Yes. I do have good news to end on. OK, I forgot. And then I remembered again, I didn’t have it in my browser, so I don’t forget someone we know just started a newsletter and you must subscribe.

43:48
Do know who? Who just started and used it? One of our friends? good, good friends. You’re not talking about Chanel, are you? No, our friend Dana Jean-Zemes just started a newsletter. all right. It is called Gap Pond, and you can subscribe. She has no idea that I’m saying this. She’ll probably kill me. You can go subscribe to it at gappond.substack.com. Oh, she started a sub stack. Excellent. Yes.

44:14
And it is basically talking about her gap year that she took between selling her business and retirement. So she sold her business and she was like, I’m not ready to retire, but I don’t want to buy another business. I’m going to take a gap year. People take gap years all the time. So, and she has made no promises. She’s like, I don’t know how often you’re going to get an email, but it is very good. Highly recommend. I think anytime you can learn from someone like Dana, you should.

44:40
you should sign up and digest everything. So go subscribe, gappond.substack.com.

44:50
Hope you enjoy that episode. Now both Tony and I will do news episodes whenever something brand new comes out that could potentially affect the world of content creation. For more information about this episode, go to mywifequitterjob.com slash episode 517. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go over to sellersummit.com.

45:19
And if you are interested in starting your own eCommerce store, head on over to mywifequoterjob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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In this 6 day mini course, I reveal the steps that my wife and I took to earn 100 thousand dollars in the span of just a year. Best of all, it's absolutely free!

516: How To Skyrocket A YouTube Channel To 180K Subs By IGNORING Best Practices With Rob Berger

516: How to Skyrocket to 180K YouTube Subscribers By NOT Following Best Practices with Rob Berger

Today I’m thrilled to have my good friend and mastermind buddy, Rob Berger on the show. Rob is the founder of Dough Roller, which is a top financial blog that he grew to 2 million visitors per year before he sold it for a large sum of money. 

After the sale of his blog, he decided to start a YouTube channel, which he’s managed to grow to 180k subs by defying every best practice.  Here’s how he did it!

What You’ll Learn

  • How to quickly build a popular YouTube channel from scratch
  • Why best practices for a YouTube channel don’t always apply
  • Why fancy video editing is not necessary

Sponsors

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Transcript

00:00
You’re listening to the My Wife, Quarter, Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Now in this episode, I brought on my good friend and mastermind buddy Rob Berger, who has managed to build a very popular YouTube channel without following any best practices whatsoever. Listen to this episode until the end to find out how he’s done it. But before we begin, I want to you know that tickets for the 2024 Seller Summit,

00:27
are now on sale over at SellersSummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based event where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods,

00:54
and not some high level guys who are overseeing their companies at 50,000 feet. Now I personally hate large events, so the Seller Summit is always small and intimate. Every year we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s gonna be held in Fort Lauderdale, Florida from May 14th to May 16th.

01:23
And right now, this is the cheapest the tickets will ever be. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur Yet, it’s actually available on Amazon at 50 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still grab my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube, and podcasting when you grab the book over at mywifequitterjob.com slash book.

01:52
So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now on to the show.

02:05
Welcome to the My Wife, Quitter, Job podcast. Today I’m thrilled to have my good friend and mastermind buddy, Rob Berger on the show. Rob is the founder of Doe Roller, which was a top financial blog, which he grew to 2 million visitors per year before he sold it for a large sum of money. He’s been featured in Morningstar, US News. I believe he still writes for Forbes, MSN Money, Yahoo Finance, practically every financial publication. He is also the author of the book, Retire Before Mom and Dad.

02:35
But the reason I decided to have Rob on the show today is to talk about his YouTube channel, which is killing it. And what’s interesting about his YouTube story is that he’s basically defying all the best practices for a successful channel and is still getting a ton of views. And in fact, earlier this year, our mastermind group finally convinced him to make custom thumbnails. And with that, welcome to the show, Rob, how you doing? I’m doing well, Steve.

03:02
How are you? I am good. It was good seeing you at FinCon, albeit briefly, since you’re always mobbed at FinCon. Yeah. It’s always fun. And it goes by so quick and it just, it’s hard to believe it’s been so many years. And anyway, that just proves I’m getting old. Well, I mean, I think I’ve known you for a decade now or however many FinCons there have been. So yeah. Did you go to the first one? I missed the first one. I started going from the second one on. Okay.

03:30
That was 2012, yeah. Yeah, 2012. And I followed you for most of your journey here, but I’m actually curious and maybe the audience, fill in the audience, because I don’t typically interview bloggers on this show. Why did you start Doe Roller? Why did you sell Doe Roller? Why did you buy it back? And then what prompted you to start your YouTube channel? So I started Doe Roller in May of 2007. Actually, I think it’s a funny story. So I was still practicing law.

04:00
And I told my wife, said, I’m kind of bored with the law. She goes, get a hobby. And so I decided I was going to be a woodworker. And the reason I decided I was going to, you know, I guess build furniture or bookcases was because the house we’d moved into a few years earlier had a workshop in it. And so I started on the internet looking for, know, I built a workbench. I’m all in for this woodworking. I’m buying tools, at looking at a table saw. And somehow I stumbled across

04:29
a personal finance blog. don’t know if you’ve ever seen it. It’s called the 2 million blog. No. And I think it’s, I think it’s still up. I never met the blogger, but that, that led me to like get rich slowly and five cent nickel and consumerism commentary and bargaining, all of those sort of early day personal finance blogs. And I said, you know, this is awesome. They’ve built a website. They’re making some money from it. love personal finance and investing. And unlike woodworking, I’ve got probably a near zero chance of cutting off my

04:59
My finger. So I said, okay, woodworking is out. And I started a personal finance blog. You grew that thing to insane heights. I mean, what was your strategy back then for doing that? Was it all SEO? How were you getting your traffic? It was entirely SEO. I’ve never really focused a lot on social media. As you know, eventually I started a podcast that, you know, that was part of the blog.

05:24
Yeah, it did great. was a lot of fun. The Don’t Roll Our Money podcast, that started in 2013. And then by 2016, I’d retired from the practice of law, running the site full time. And kind of out of the blue in 2017, a couple of different companies reached out to me about buying the site. And I got the kind of offer that I just couldn’t refuse. And so in February of 2018, I sold it to a company in Tel Aviv.

05:55
And at the time I thought, okay, I’m done. I had no plans to, certainly no plans to ever buy it back. No YouTube plans. I thought I was truly retired. I ended up going to work for Forbes as the founding editor of what they call Forbes advisor, which was totally out of the blue. I did that for a couple of years. then- I remember I asked to contribute and you said, oh yeah, yeah, yeah, yeah. But then you stopped returning my calls.

06:23
Yeah, it just, you, just kept pummeling me with calls and I just didn’t want to hear it. No. Um, I think I referred you to my editor cause I don’t, I don’t have any control over the contributor network. Are you, do you write for Forbes now? No, no, no, I don’t. I don’t. I, I didn’t think I was ready to actually take on that. Yeah, I agree. Yeah. But, but I can hook you up if you want to. No, no, it’s okay. It’s okay. I just thought I’d bring it up publicly on the podcast. Yeah, that’s nice. That’s nice. Uh, anyway, so.

06:52
I published my book and then I decided the idea of doing video sounded fun. My non-competed, it expired. so in 2020, right in the middle of COVID, it’s like, what else am I going to do? So I started a YouTube channel and that’s what I did. And I enjoy it thoroughly. It’s probably the most fun I’ve had between blogging and podcasting and writing a book and whatever. The YouTube channel is by far the most fun.

07:22
fun to talk about it. We obviously will go into the details, but, then earlier this year, the company that bought my site, they bought a bunch of others. They, they had not done well. They did well at first, but more recently they had not done well. So they basically sold them all back to the, the, the, for the most part to the founders. And, um, obviously there was sort of a different, different valuation model at this point.

07:48
And so to me it was just I could get it back at a very reasonable price and so I did and I’ve got a team helping me sort of basically scrub every single page on the site and that’s gonna be a Pretty lengthy process, but that’s been fun. It’s been a little little more work than I anticipated, but that’s okay

08:09
And now I’m on your show. so life couldn’t be better. That could get you from 07 to 23. There you go. What’s funny is you now own a lot of those early personal finance blogs that inspire you to get started. Yeah, it’s true. And I’m in the process of shutting them down, I’m afraid, but such is life. Well, you’re combining them. I wouldn’t call it shutting them down, but that’s Yeah, that’s fair. Yeah. All right. Let’s move on to this YouTube channel because you shot out of a cannon with this, with your YouTube channel.

08:38
And you said you started during the pandemic. What are you at? Like 130 something thousand subs. see the plaque in the background. Yeah. I’m actually looking at my, my YouTube studio. I’ve got 136,575 subscribed. Wow. That’s a lot. And you achieved that number fat much faster than I did. It took me about three years to hit that. You know, I suppose, but for folks watching, I would say it’s slow when you start. It just is.

09:07
It’s not like, you you publish a few videos and all of sudden you’re getting thousands of views and your subscriber, subscriber numbers are jumping up. You really should expect, you know, you’re going to get, you know, 25 views on a video, a hundred views on a video. You know, you’ll look at your subscriber count. won’t seem to be going up and you just got to expect that that’s the way it is. And you got to keep grinding and just keep putting out videos, the best content, you know, for whatever your goals are and your audience and what you’re doing.

09:35
Once it gets going, know, yesterday I’m looking at my stats. I published a video on is buy and hold investing dead. Now, prop, perhaps not the sexiest of topics that you’ll find on YouTube at any given point, but for my audience, you know, it’s a pretty important topic and it came about for a variety of reasons, but I’m looking at it now. It’s got 22,000 views. Yeah. Which is great. Um, but you know, two years ago, I would have never gotten.

10:05
I might’ve had 200 views, right? So you just gotta stick to it, gets grinded out, and eventually it’s kind of like a snowball and it really sort of takes on a life of its own, but it doesn’t happen overnight. I mean, just walk me through your process. And now you probably went into this goal, I mean, you’re already financially retired for the most part, and this is just a fun project for you. So I, and maybe I’m putting my words in your mouth here, but did you start this project saying,

10:34
Hey, I just want a very low maintenance way to basically publish videos on a YouTube channel. Pretty much. mean, well, in terms of my process, I can describe that. But in terms of starting the YouTube channel, was just this should be fun. Yes, I can make some side income. That’s nice. But I’ll do something that I enjoy. That was about the, that’s about how much thought I put into it as a business model. Yeah. And then I remember when I looked at your channel for the first time, I’m like, you don’t even have a thumbnail.

11:00
And you don’t do any editing at all. It’s just you in front of the desk that you are. Well, different desk maybe, but no, this is the desk. Yeah. And then you just film it. And that’s it. So, yeah. So when I started the channel, I didn’t know anything about how how I should do this. And I remember it was driving me crazy trying to, you know, just me in front of a camera like it’s basically it’s what you’re seeing now. And it’s not hard to put that together. But when you don’t know what you’re doing,

11:29
You don’t know what equipment to buy, what your lighting should be. I had a terrible time getting the sound to be okay, the lighting to look okay. I don’t have to be great, just okay. And so you’re spending all that time, that’s the first six months, just trying to figure that out. And then you’d look at other, in this case, personal finance YouTubers, at least I did. And my takeaway was you got to have the crazy thumbnails where the person looks like they ran over a dog with their car. They’re doing that or whatever, because that’s what YouTubers do.

11:58
And have to have a lot of cuts in your video because you’ve got to take out the ums and the uhs and it’s got to move quickly because people don’t have much attention span and some of them have the background music playing. You got to maybe that. And so that’s kind of the path I went down because I thought, you know, that’s just what you have to do. That’s what you do. And I was miserable. All this post-production editing of the video, I hated it. I absolutely hated it. So finally I just started to question everything. Why do I need a thumbnail?

12:26
You don’t need a thumbnail. Google will let you publish a video without a thumbnail. Now what it will do is pick a frame from your video. it tends to, for me, it tends to pick, you know, some frame where I’m like doing this, looking off to the side and that’s my thumbnail, but whatever, what I care. I thought I’m not going to edit anymore. I’m going to record it like this. And I’ll, I do put it in Final Cut Pro and I hit a little button that enhances the audio.

12:54
I lop off the front of the video, the excess and the end of it, upload. That’s it. And part of it too was that some people, there’s no right or wrong here, right? There’s different ways to do it. But some, would call it more of a performance that it’s heavily edited. They edit out any errors and it’s quick. It’s a production. For me, I think,

13:20
My videos are not unlike what we’re doing right now. I view them more as a conversation with my audience, right? When you’re at dinner with friends and you’re talking, you don’t edit out, you know, the things you get wrong. You just keep talking. You keep having a conversation. And so that’s kind of what I thought I would do. Part of it could be my demographic. know, the majority, I’d say at least half of my audience is 50 or older.

13:46
They’re not looking for a young 24 year old with a heavily edited video to tell them how they should manage their investments in retirement. So part of it I think is the demographic, but yeah, that was it and it just worked. And I thought, this is great. I can do less work and get better results. So there you go. Now, today I do a little thumbnail, but it’s not much. It’s just me, picture of me with like three or four words put on it.

14:13
Throw it on, throw them on in Canva. It takes me about 60 seconds and that’s my thumbnail. Did your audience start growing or your channel start growing faster when you stopped editing?

14:27
I think it did. Now, you know, the cause and effect there is always a tricky thing. One of the things though that I think the positive is I can do a video very quickly. Right. So I’m working on a video now, you know, there’s in the financial world, everything seems to be in flux, right? We’ve got inflation, it’s high, it’s a little bit lower. Interest rates are changing. We’ve got war in different parts of the country.

14:50
So I’m going to do a video on things that don’t change. Amidst all of the chaos and the change, there are some fundamental investing principles that in my view never change. Simple straightforward video. I can record it in 20 minutes when we’re done and have it uploaded within the hour. And so that helps me a lot. Just get through and get the videos up. I’m not trying to play a volume game where I produce tons of videos every week.

15:18
I don’t, you some people I talk to, spend a couple of days just with a script. I don’t do a script. I don’t have a script. I don’t read from anything. That’s why I just going ask you. So you just kind of go in cold and you flip on the camera or do you already have like an outline of what you want to say? Just like our conversation now. I rarely, rarely do an outline. Sometimes I will if just there’s one thing I just don’t want to, I’m afraid I’m going to forget something, you know, a point. And sometimes I’ll just, you know,

15:48
jot down a few notes on a card. And I don’t mind the audience seeing it, right? Might even point it out, right? I got a card here with seven good things to know about whatever. So sometimes I’ll do that, but most of time I don’t. I will show my computer screen a lot, which is here to my left. And I can just hit a button here on my monitor. I can do it now. There you go. You see my computer screen. So there’s no post-production editing. gets filmed that way.

16:18
And so if I’m going to show them whatever eight tabs could be a financial tool, article I found, whatever, I’ll kind of line them up in the order that I’m going to talk about them. And so they kind of act like an outline for me. Uh, but yeah, I don’t, other than that, no, I don’t have a script. I don’t normally do an outline. That’s a, that’s incredible. I’m just thinking to myself now. I I don’t know. You don’t take an outline to dinner with you so you can talk to your friends. It’s that kind of concept. You know what I mean?

16:46
Hang on. What’s going on in your life? Hang on. I’ve got I’ve got seven things I want to share with you tonight. Dinner number one. Well, you know, what’s funny about this particular episode is usually I have an outline for these interviews. But with you, I don’t I don’t have an outline just because I know it’s not going to great. You’re doing great. You don’t have an outline. You don’t need one. All right. So your YouTube channel is kind of more like a video podcast in a way, right?

17:17
In a way, yeah. mean, yes, there’s some similarities there. Which begs the question, you stopped the Doe Roller podcasts. Could you use the same content that you use on YouTube on your podcast and would that work well? So a lot of people want me to take the YouTube videos, strip out the audio and just publish that as a podcast. And I do that for the Rob Berger show on YouTube. I have someone that does it for me.

17:45
It’s kind of a hassle, even though someone else does it for me, it’s kind of a hassle in the sense that it’s just another thing I’ve got to think about and I’d rather just not. If you’re trying to build a business and make as much money as possible, you can literally work 24 hours a day. There’s other, I could write more books. I could build an online course that I think people would probably buy. There’s always something more you can do.

18:14
You know, but you got to sort of balance your time out, you know, and what is it you want to do? And then people say, well, you know, you can hire assistants and have all these people around you doing all these things for you. And then you can optimize. Yeah. Or I could just go to yoga and practice yoga for an hour. That’s what I prefer to do. You know, I played a game of chess before online speed chess before just 10 minutes before we started our call. know, so to me, it’s just a balance. But yeah, I do have

18:43
a Rob Berger podcast that we upload the audio from. I tell people, just listen to the YouTube. You don’t have to watch the video. You can listen to YouTube in your car. But I do get that some people just prefer a podcast format.

19:01
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19:30
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

19:42
So why do you think your channel works the way it does? It’s so funny. I’m in a YouTube mastermind group and a lot of times, and there’s guys in there with like 5 million subs and whatnot, and they spend a lot of time on the scripting, the post-production takes almost all the time, thumbnail and title and all that stuff. And I can see why they’re successful, but to me, that’s very intimidating. I don’t have the desire to.

20:08
go that route, nor do I want to hire a team to do that. yeah. I think it depends on the channel. mean, can’t ever fathom my channel getting, I mean, I don’t know, can I get to a million? That would be amazing. 5 million, I forget about it. Part of it depends on your topic, right? So in the personal finance space, the channels that get

20:36
say more than a million subscribers. I’ll call it an entertainment value to what they do and they produce excellent videos. But my goal is a lot different than that. And if you’re going to sit down and do an educational video, which is really kind what mine are, it’s going to help people understand how much money you can spend in retirement without going broke.

21:05
and you’re gonna really get into the nitty gritty. It’s not the kind of video that’s gonna go viral, you know, and it’s not the kind of channel that’s gonna get 5 million subscribers. But what it is gonna get are very, very loyal subscribers. And so, you I went to the Bogle Heads Conference, if you’re familiar, you know, with investing conference, and I probably had 30 or 40 people come up to me and say, hey, I watch you on YouTube, appreciate it. We had a great conversation. The last two years, a big group has gone out to dinner.

21:35
I get tons and tons of email from folks. do a live show every other Monday night where people can ask me whatever they want. And that gets a lot of good response, a great group of people that watch it live, and then another 10 to 20,000 people that watch it the following week or so. And it builds a relationship with your audience.

22:03
that I’m not sure I would get otherwise. Let me ask you this. How do you build that relationship? Is it just through the lives or are you in the comments? So I do try to respond to comments, but as you probably know, after a while it’s impossible. But I do try to, you know, when I put up a new video a couple hours in, I’ll go through and look at the comments and try to respond. I do put out a newsletter every Sunday morning. It’s free. It makes a little bit of money.

22:33
Although it didn’t make any for the first year, it’s not really the point of the newsletter. It’s basically to share content. And most of the content I share is not mine, just content I find on the internet about investing in retirement. all of the subscribers to that come from the YouTube channel. That’s how I market the newsletter. And I get tons and tons of replies and I encourage people, know, reply back to the email. I may not be able to answer you, but I read all of all of your email.

23:01
So I think that helps build a relationship. The live streams build a relationship. So yeah, it’s kind of a little bit of all those things. On your YouTube stats, what percentage of your visitors are returning versus new? I have no idea, but I can look it up. Yeah, I think you have it right in front of you. That’s why I was asking. me- Well, it’s not, yeah, do have it. Yeah, it’d take me a second to get there, but- Yeah, yeah.

23:28
And while you’re looking it up, I’ll just tell you a minor for me. It’s like 70 % are new and 30 % are returning. I would imagine for yours, it’s probably flipped, right? Well, it looks like it just over 50 % are returning viewers. Yeah. In the last. This is for the last 28 days. Yeah, that’s pretty good. Incidentally, that’s like one thing I’ve struggled with, which is why I’m kind of asking you that question.

23:56
If you were to choose one thing that has allowed you to build community the most, would you say it’d be the lives that you do? Yes. And I’ll talk about that, but I’m just looking at my stats. The stats are, it’s interesting because it’s a little distorted. If when I publish a video, like I published a video on, um, actually I published three videos on Monday, which is very rare, but I had, um, you know,

24:23
A good 80 to 90 % of the views that day were returning viewers. So it’s only when I go days without any new content, the view, it’s actually, it’s, it’s more like 70 % are returning. Yeah. I think the live Q and A goes a long way. People like that interaction. Uh, it gives them a chance to, you know, ask me a question. mean, unfortunately, I never get

24:52
to the vast majority of the questions. there’s so many people on the live stream, I go for an hour and a half and I can only answer so many questions. But I do think it builds a relationship and a connection with people that they’re not gonna get otherwise. So I think for folks considering the YouTube channel or that have one, it can be a little intimidating.

25:19
the first live stream, I was pretty nervous first time I did. I was nervous one, because what if I get this live stream going and only two people show up? But that’s easy enough. That’s like, yeah, well, then two people show up and they get to ask you questions and you just need to park your ego, you know, to the side. And if that’s what happens, what happens. It didn’t happen that way. But then the other thing that, you know, it’s like, well, am I gonna…

25:44
Am I going to look like a fool? Like, they going to ask me all these questions that I just don’t know the answer to and I can’t help, I can’t provide any useful information. And that by, mean, there’s certainly questions I get asked that I don’t have any helpful response to. But I think for the most part, I, I, it’s not that I have the answer to everything they ask, but I think I can point them in the right direction or give them some useful information. What is your post frequency? You mentioned you posted three videos on a Monday.

26:14
Well, yeah, that was unusual because I did a video, then I did a short, which I haven’t done in a while. And then that was also my evening. I did the live stream. So that’s why there were three. Oh, I see. before then I hadn’t done one in two weeks. Wow. OK, so that’s unusual, too. I like to at least do I do the live stream every other Monday. And then I like to be on that do at least one video a week. But, you know, part of

26:43
Part of the issue for me has been dough rollers taking up so much of my time. And I’m now fighting back to that, because really I don’t like working on dough roller. I want to work on YouTube. So in a perfect world, I would probably do two or three videos a week. And that’s what I’m trying to get back to now. And you count shorts as a video? No, I don’t. I would say two to three long videos. long for me is typically a 10 to 20 minute video. And then

27:11
Shorts have done well for me. I don’t do as many again. It’s that whole question of time and you know, but I’d like to do more because they’re fun. And again, I do them the same way. I don’t do any heavy editing. I record. I use the software just to cut off the front and the end and upload it to YouTube. And that’s it. And I’ve got a little schtick, a little, you know, format that I follow now for all my shorts.

27:41
because they’re only 60 seconds. you don’t have time to collect your thoughts. Yeah. Can you walk me through your process for creating the video? And I know part of this has to do with your talent and the way you speak. I mean, you’re a very polished speaker. I don’t hear any ums or ahs or anything like that. That’s the last compliment you’re going to get out of me on this show. Thank you. I’m going to play it on a loop on my computer. I can’t imagine. And this is, I’ve been doing YouTube for four years now.

28:11
I can’t imagine just flipping on the camera, talking for 10 to 20 minutes and turning it off without any prep. Walk me through your prep. Do you do any prep? Yeah, I do some prep. Sure. So like the one I’m talking that I mentioned earlier, I’m going to talk about the basic idea. I’ll tell you the title. My working title right now for the, my next video is something like the seven golden rules of successful investing that never change. Right. And to me, this is an important video.

28:40
Because you’ve got to be well grounded. can’t just let the daily news throw you about, oh, should I sell? Should I invest in crypto? How about this and back and forth? You got to be grounded. And amidst all of the chaos in our world, I think there are things that you can hold onto that don’t change. Right. Okay. So that’s the idea of the video. I’m holding a card, by the way, that doesn’t really say anything on it. It’s actually got one line on it, but anyway.

29:10
Uh, so I’ll probably write the seven things on this card. Uh, and one, like one, the first one will be that successful investing is long-term. You need to have a long-term mindset. And I’ll just talk about that for a minute. Right. And I won’t, I won’t have more preparation than that. Like I won’t script out what I would say. Okay. So for me, it might be something I’ll just, I can do it now. So, know, so that’s what that’s saying. It needs to be long-term. need to think long-term. need to think here.

29:39
We’re not talking years, we’re talking decades. And the reason for that is, you know, we go through economic cycles, that’s just normal. And that’s always gonna happen. We’re gonna have recessions, then we’re gonna have growth. We’re gonna be in times of war, in times of peace. These are just the things that happen in the world. You can’t avoid them, you can’t invest around them. And, you know, there’s gonna be times when whatever you invest in, it’s not doing well.

30:04
And if you allow that to cause you to sell or change your strategy, you’re going to end up much worse off than if you just stayed the course. So you need to think about investing 10, 20, 30 years. And in fact, as an example, Berkshire Hathaway, Warren Buffett’s company, it’s been around forever. People like to talk about how it’s made millionaires and billionaires. But you know, if you invested in it, you know, back in the sixties or seventies and held onto it, you made a lot of money. But did you know that at two or three different times in that time period,

30:33
It fell by 50%. So you actually only had that pot of gold at the end if you could live through those sorts of downturns. so number one, you got to think long-term. Amazing. Right. And then I’ll go to number two. just pulled all that out of your butt just now. Very eloquently, no pauses, nothing. You have such a way with words, mean, really, you can paint a visual picture that’s amazing.

31:01
No, that was really well done. if I stumble a little bit, that’s OK. In fact, I try to slow myself down. One of the mistakes I made at the beginning is I was in such a hurry because I felt that my audience was impatient. Go, Rob. Go, go, go, go. And it’s funny. I got to tell you, I think this is funny. At one point in Final Cut Pro, I thought, know, I do sort of talk on the slow side sometimes. So you know what I’m going to do? I’m going to increase the speed of the video.

31:30
before I upload it. But I’m thinking no one will notice I did it like 1.1 or 1.15 uploaded. mean, the comments were brutal. Rob, what do you do? What do you do? Speed up this video? What is wrong with you? And the thing is, is, you know, people can speed up the video on their own. They don’t need me to do it for them. They’re probably speeding up this interview right now. Probably true. People like to listen to me at 2x from what I hear.

32:01
All right, so Rob, let me ask you this. There’s some people listening out there that wanna start a YouTube channel. just given that you defied all the rules, or the best practices I should say that are commonly taught, and you always seem to find your own way of doing things, and it always works out for you, what’s some advice for someone just starting a YouTube channel?

32:22
Well, the first thing I would say is, you know, there’s all kinds of equipment and setup and all this stuff that you can do and it may or may not make sense for you. But I, my, I would, the focus would be on producing videos and getting them published. You can use your iPhone, just use your iPhone to start with. There’s a guy whose name now I forget, but I can find him on YouTube. He does retirement videos and he’s got his iPhone and

32:47
Every video is him walking somewhere down a path in the woods somewhere, just looking at his phone, talking. He’s got like 80,000 subscribers in just a few months. His videos get tens of thousands of views. So, you you don’t need all of the fancy equipment at some point. It may make sense. I’ve got some fancy equipment. You can’t see it, but, you don’t need it. So the focus should be on producing videos because here’s the thing. You’re not going to know really what you should be doing.

33:17
until you’ve been publishing videos for six months or more. You’re going to learn this as you go. There were plenty of videos that I published in the first year that today I would never publish. I wouldn’t publish the topic. It’s not relevant because I didn’t quite know what my focus was going to be. And even in the context of money, you know, I mean, there’s obviously a lot of different ways you can tackle that subject. And so

33:44
I think the first thing is to figure out the least expensive and fastest way you can produce videos and just start producing them and then kind of figure it out as you go. That personal finance YouTuber that you just talked about, does he use the Rob Berger lop off method of editing? Well, that’s a good for the Rob Berger. It’s got an official name. His videos are not edited that I can tell. Wow. Maybe there’s some cuts here and there.

34:12
But for the most part, at least, I mean, I don’t know that I’ve watched one of his videos literally from start to finish, but yeah, they’re not heavily edited. And then can you tell me what equipment you have? What did you start out with and what are you using now? Well, so I had some money to invest. So my first setup, a friend of mine helped me with it he was a videographer, but the problem is, the problem was he wasn’t a YouTuber.

34:40
So he kind of set me up like I was shooting regular videos. So I had all these fancy lights on tripods and the whole wireless mic thing that clipped to my shirt with the thing tucked in here to transmit the audio wirelessly. So I had to figure all that set up. I don’t do that now. have, it’s too bad I don’t have my iPad down here. could wait. I’ve got, I can’t, can’t show you. But in any event, I have two key lights here. They just attach.

35:07
to the desk. I got them at Micro Center for a hundred bucks. I’ll lift this up. If anything gets unplugged, I’ve got this video switcher, streamer, to mixer, I guess. It’s a Roland. And it allows me to just go from me to my computer screen. I can also connect an iPad to it or an iPhone and show that. And then I’ve got two computers. My iMac is the one that you see when I show what’s on my screen.

35:35
The other one’s just a gaming PC where I actually record the video. I do have a teleprompter. I don’t use it for a script, but I use it for things like this. So it allows me to see you while I’m also looking at the camera. If you were on my computer over here, I’d either just be looking at the camera or I’d be looking over here at you and then not looking at the camera. I do have a monitor. know if I can show you just a little. This just shows me whether I’m on camera or it’s the…

36:05
because sometimes you forget. And this, I can just look down here and say, oh, it’s me right now versus my computer. And then I have a shotgun mic right up here. I do have another- What is your shotgun mic? I can actually send you a link. Oh yeah, I’ll just post this. I know people are always interested in what gear- I do have the fancy microphone and I can turn it on. Now I’ve heard this one sounds better, but sometimes there can be a back- There’s a buzzing right now. Yeah.

36:33
I haven’t figured that out. Let’s not use that one. I use a Sony camera. Nothing fancy. Yeah, I think that’s it. I think I’m looking around to see if I’ve got anything else on the desk. I think that’s everything. I’ve got a mouse. Yeah, Tony and I, teach a class and we do cover YouTube. And I think there’s a lot of mental hurdles to getting started. And people usually spend a lot of time on the gear. And in my opinion, the only thing that really matters is the audio.

37:01
And I do use the wireless mic because I sometimes I actually I rarely move around, but sometimes I do. Yeah. And it gives me more freedom to do that. Yeah. My goal was to make things as seamless as possible. So for example, on my camera, I have one of those things you stick into the battery compartment, but you plug it in. Yeah, I got that too. I leave my camera on 24. My camera hasn’t been turned off in two years.

37:27
And so I can literally, I’ve got the mic, know, everything’s set up. I just come in here, I sit down and I can record. It’s that simple. That brief demo that you gave of some of your sample YouTube content. Yeah. It’s probably not something that 90 % of the people can do.

37:45
That may be. I everyone’s different. I mean, I will say that I was a litigator for 25 years. And so I didn’t actually try a lot of cases, a handful, but I took hundreds and hundreds of depositions. some lawyers will have these massive outlines and they’ll literally read question after question in a deposition. I don’t know how they do it. I was never that way. I would have documents that I wanted to ask the witness about, but I was just going off the top of my head, question after question after question.

38:14
So, you know, that training probably helps me a little bit, but like with anything else, it’s just a question of practice. And there are times when I’ll start a video and I’ll have to start at like nine different times because I mess up in the first couple of minutes. So there are times when I get frustrated and have to start over. just, some would edit that out, but that’s more work for me. I’d just rather start over. yeah, I do think the work as an attorney probably helped me.

38:45
I didn’t really think about it at the time, but probably helps me with my style of videos. I mean, that’s your superpower in my opinion. Let me ask you this. So if you could, let’s say double your views with the editing that you used to do and stopped, would you do that today or would you, you still wouldn’t? Okay. I wouldn’t do the editing. don’t know if I would maybe hire someone. Maybe, I don’t know. I don’t know that I would. Interesting.

39:10
Because then that’s process. I want to get the video published. Now I got to send it off. I got to wait. They get back to me in two days. It’s just a hassle. And I’ll tell you, I did an edited video once and it even had a little background music and my audience hated it. I mean, the comments were brutal. They want to have a conversation.

39:32
but you can’t have a conversation on YouTube unless you’re doing a live, right? Well, you can’t have a conversation like we’re having. Let’s talk about the content here. Are you asking questions? I’ve only watched a couple of your videos in its entirety. Are you asking questions and asking people to post questions and comments?

39:52
Well, no, I don’t normally ask a question. You’re talking about my regular videos, not the regular ones. No, I would say I don’t ask questions. I invite them. Sometimes I do. Sometimes, you know, like I did a video. This is for a different. This is for the door roller YouTube channel. I published a video today. Do remember Mint.com, the old budgeting app? Yeah, of course. You know, they’re closing down. I did not know that. Yeah, they’re having all their migrating all their users to credit Karma. Oh, my goodness. OK. I think it’s kind of weird. Anyway.

40:21
I did a video about that. And so at the end I asked folks, I gave them what I thought were good alternatives to mint.com, but I said, Hey, you know, I love learning about new apps. if you have any, if you use a budgeting app, haven’t mentioned, you think it’s great. Leave it in the comments below. Sometimes I’ll do something like that. haven’t checked the comments yet, but yeah. guess what I’m trying to ask is to your original question. I don’t think I would change my style just to get more, more views.

40:51
You keep mentioning having a conversation. What are some examples of that in your content or the way you kind of just structure your videos that are intentional for creating this? so one is the pacing of the video. You know, you’ll see a lot of videos where it’s a very fast pace cuts. They’re close to the camera. They’re farther away. Some B roll. That’s not a conversation. By the way, it can be a wonderful video and people might like those kind of videos more than mine. That’s OK. But.

41:20
It’s not how you talk when you’re out with friends having dinner. And so I like to try to make mine a little more, I guess conversational would be the way I would describe mine. Obviously, it’s just me in my basement looking at a camera. no, you day when I start to hear people talking back to me, I’m in big trouble. Well, what is your retention rate average? Just curious. I don’t know. You don’t know. Okay.

41:48
I can look it up for you. See, this is the interesting thing about different YouTubers. Some people are all over their stats and their analytics and what can I do? How do I keep them watching longer? I’ll talk about seven items, but I’ll tell them, you know, stay to the end because the seventh one is the best and all these sort of strategies. I, by and large, just don’t do that. It’s like, you know, watch the video if you want to. If you don’t, don’t. I know it’s refreshing and it’s working and it’s low energy, which is why I like it.

42:15
Well, I guess it’s not like I don’t have any strategies, but they’re just not all that advanced. don’t know. Let’s see. don’t even know where to look. By the way, a lot of the retention stats, so you got to be careful because a lot of them depend on the length of the video to begin with. If someone sees an eight minute video, they’re more likely to maybe watch the whole thing than if it’s 28 minutes. That’s correct. That’s correct. Yes. I got the answer right.

42:44
mailed it. What was the answer? Oh, no, the percentage. I’m still waiting for the percentage. I know what mine is. And I’m just kind of here’s the question, Steve. At this point, is anyone still watching this interview? Well, if they want to, I mean, we’re just having a conversation here. I’m following the Rob Berger method of the raw. That’s right. We are. I’ll show you the stat. This is my last video. Where do I go for retention audience? Probably. It’s engagement. So click on you don’t even have to look at your own stats. This is amazing.

43:14
Audio? Oh, it hasn’t, we don’t have data yet. You pick an older one. You gotta pick an older one. All right, hang on. too new. Yeah. All right.

43:23
Here we go. This is exciting. How and why to build a tips ladder. mean, who doesn’t want to learn about that? I don’t even know what that is. okay. Do know what a tips bond is? inflation protected security? Nope. Sorry. Maybe I should be following your channel. You don’t know what tips are, huh? Okay. I’m a T-bill and chill type of guy right now. T-bill and chill. Oh, that’s great. T-bill and chill. I like it. All right. Let’s see. Average view was six minutes. Average percentage view is 25%. 25%. Is that bad?

43:53
How long is the video? This video was I don’t even remember. It says right there. Oh, it does. Yeah. It’s a 20 something minutes. I can’t see that small and far sighted now. I don’t even see where it shows that it’s just in the upper like the thumbnail. See the thumbnail. Oh, you’re right. That’s funny. Um, this YouTube stuff is confusing. 25. Okay, yeah, that’s that’s what I’m good. That’s very good actually for a video that long, I think.

44:21
I can find a shorter one. Let’s find a shorter one. No, I was just curious. I don’t want to bore the audience with with with the ads too late for that. Yes. Let me ask you another question. What is your typical click through rate that you can see? You’re asking me all this data. Yeah, by the way, let me ask you a question. I’ll ask you a question and then I’ll answer yours. OK, in the context of YouTube, what does click through rate mean? It means your ability.

44:49
to maximize the amount of views on your channel based on the number of times YouTube shows your thumbnail to somebody. And this is why we’re trying to convince you to make custom thumbnails because that’ll increase the number of views, which is generally a goal that most people have when they start a channel. Well, here’s what I found. And I don’t know if I’m looking, I may have to look at an older one again, is that when I have a thumbnail that has words on it,

45:18
which is what I do now. That does have an effect on views. Shocking. But I don’t know that I, do I need to do anything else? Do I need the crazy thumbnail where it looks like I’ve just run over a dog? No, I think for your audience, which I believe is like people like my mom or even myself, maybe, I don’t know. I wouldn’t want to take financial advice from someone who does funny facial expressions, right?

45:48
I mean, I want someone I can trust. want someone with gray hair and a beard that talks very eloquently. Who’s got gray hair and a beard and two thumbs? This guy. So my impression click through rate on my current video is 5%. Okay. Our stats are actually quite similar. Okay. Yeah.

46:10
Now, I will say when my views, as views go up, I’ve seen click through rate go down. Correct. Because YouTube, I guess, is showing it to more and more people and they’re sort of moving beyond the obvious demographic or whatever of people that would want to watch it, I guess. I don’t know the algorithm, but. Yeah. Well, okay. A couple more questions. You mentioned before money is a vast space to be talking about, and you started out talking about different things. How did you hone in on the

46:40
on the topics that work? Well, that’s a great question. when I started, of course, you want views, you want subscribers. And so I was trying to create videos that I thought would get a lot of views. So this was in 2020. I did the stimulus check videos, the student loan forgiveness videos. And by the way, important topics, right? But they just weren’t interesting to me. I mean, you know, there’s a lot of important topics out there that I just don’t have any interest in creating videos for.

47:08
And I found myself creating them just because I wanted to try to get views. So finally, just said, it was kind of about the same time about the whole editing thing and thumbnail and all that. said, you know, forget that. I’m going to write, I’m going to do, I’m going to pick topics that I’m interested in that I think will be useful to people. Well, you may not have noticed, but I’m on the older side. so topics that are interesting of interest to me in finance have to do with investing and retirement planning for people in or near retirement.

47:38
That’s what’s interesting to me. And so I started producing videos on that. And then that’s how it just sort of over time, it started to work. People started to associate me and the channel to that kind of topic. And that’s what I do. That’s actually a really good answer. And you know what’s funny is we have a mutual friend that did stimulus check videos during the pandemic and that actually ruined his entire channel.

48:05
because all of a sudden he was attracting all these people with no money who wanted stimulus check information. That became the majority of his audience because those videos did so well and they’re not interested in investing. Yeah, there are some channels that did well with it that continued to do well after. Some didn’t. I mean, the issue is you can get a lot of subscribers pretty quickly if you have a few viral videos.

48:30
they may be subscribers who aren’t interested in the kind of content you want to create long-term. Because obviously a stimulus check video isn’t the kind of content you’re going to create for 10 years. Correct. And so you can have all these subscribers who don’t really have any interest in what your main topic is. So I, you know, that’s just sort of the way, I mean, in my case, I’ve had one viral, what I would call viral video. That’s it. So most of my subscribers have been built up, you know, relatively slowly over time.

49:01
You know, there’s something I’ve always really liked about you, and this is maybe the last compliment that I’ll give you, is that we go in these mastermind meetings, and we all talk about our strategies and whatnot, and even if there’s a strategy that’s working for almost everyone in the group, you always pick your own path, and you say, hey, you know, that might be work for you guys, but I’m just gonna go my own way, and whatever you choose always seems to work also.

49:29
Which just goes to show, I think, that you really have to find your own way in anything that you do and not just take one of these best practices as gospel. I I bet if you started following some of the best practices that other YouTubers teach for your channel, it would probably have a negative effect based on the audience that you particularly have, right? Yeah, I think it’s good to sort of question everything. Not for the sake of, the thing you want to avoid is you don’t want to question everything just because you want to be different.

49:59
Not that different is bad or good. It’s just, but question everything because you know, if you really spend some time looking around YouTube, you will realize that there is no one formula. There are some incredible channels that have huge followings that are just crazy. I would have never thought they would have worked. And that’s true outside the money space. It’s true within the money space.

50:28
There’s just a variety, there’s just a great variety of interests and what people like and don’t like. And, you know, I think if you’re as true to yourself as you can be, and there’s always some performance, right? I mean, but if you’re as true to yourself as you can be, one, you’ll enjoy the process the most. And you’ll find people that like what you have to offer.

50:55
I mean, you just will. mean, you may not have a channel with five million subscribers, but, know, can you build a channel that either helps support your business or if YouTube is your business that generates a full-time income? I think you absolutely can. And so if you can do that while doing it in a way that resonates with who you are, you really can’t ask for anything more. I mean, that’s like, to me, like the perfect sweet spot to be in. Yeah, Rob.

51:24
We’ve been talking about your channel a lot, where can people actually find this channel and follow you? Well, if you go to YouTube and just search for Rob Berger, you’ll find me. OK. If you look at any of my videos, you’ll see a link below to my newsletter. It’s free. It’s it’s it’s for primarily people interested in investing and retirement planning. What’s that? Which is like everybody, basically. It’s a lot of people. Yeah. Yeah.

51:50
I include a section in there that has stuff that I just find interesting that’s not related to money necessarily. But yeah, it goes out once a week. that’s probably the, those two, don’t, you know, I have a Twitter account, I don’t, I’m not a social media junkie. I rarely post on Facebook or Twitter or LinkedIn or, so those are probably the two best ways to connect. Cool. What’s ironic is Facebook is your demographic, isn’t it?

52:16
I guess it is. you know, when I do a live stream, I stream it to Twitter, LinkedIn, Facebook, even Twitch. I’ve got like two followers on Twitch. on Twitch. Amazing. Yeah. think the two followers are probably, they probably think I’m somebody else, but yeah. You know, when I stream, can, you know, I use different streaming services you can use, but they stream me to all those platforms. Yeah. Yeah. I’m on Twitch.

52:40
I want to have a Twitch account where I play speed chess. That’s a big thing actually on Twitch. Yes, I follow the Botez twins actually. Oh yeah, yeah. They’re a riot. I don’t watch a lot of their videos, but they’re very entertaining and great chess players actually, you very good. I mean, they’ve made chess really popular. They did. I think Nakamura did who’s the world reigning speed chess player. You Magnus Carlsen’s done a lot. Yeah, he’s got a social media presence too. Yeah, he does. I think it’s a little more well,

53:10
what you’ll find him doing. You can now find him on streaming his speed chess, which if you’re a chess player is a great thing to watch. You can actually learn a lot and his mind is just ridiculous. It’s just ridiculous. Yeah. His ability to play chess, but yeah. So, but so maybe I should turn my Twitch channel into a chess streaming thing, but in any event.

53:35
I don’t have time for that right now. I got to stay focused, Steve. I got to stay focused. Okay, here are my key takeaways for this episode, just for anyone listening. So one, stay focused. You could be doing a million things, but just do the things that move the needle the most. That’s the Rob Berger philosophy. The second philosophy for Rob Berger is just do what it takes to get the video out there. Don’t focus on the equipment or whatnot. Just focus on the process for producing videos on a consistent basis. And then figure out what works and then

54:05
on the topics that you’re actually interested in covering in the long run. Play the long game. Absolutely. Yeah, and you got to lean into what you like because whatever you start with, there’s going to be a point where it doesn’t seem like it’s working because this is a slow process to begin with. And what people end up doing is trying to change their approach too frequently. Stick with it for a year. Consistent videos.

54:30
That’s the only way to know if what you’re doing is going to work. You can’t do it for two months. That’s not going to be enough time. It’s kind of like investing. Kind of like investing. That’s right. Long term. Well, Rob, thanks a lot for coming on. I always learn something from you. Usually you give me more smart ass comments back. So maybe since we’re recording. to be nice today. But I appreciate you. I enjoy having in the mastermind group and meeting up with you.

55:00
once or twice a year. And I’m looking forward to the next one.

55:07
Hope you enjoy that episode. Rob’s story just goes to show that if you’ve got great content, you can grow a YouTube channel very quickly, even if you don’t follow best practices. For more information about this episode, go to mywebcoupterjob.com slash episode 516. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go over to sellersummit.com.

55:37
If you are interested in starting your own e-commerce store, head on over to mywifecoderjob.com and sign up for my free six day mini course. Just type in your email and they’ll send you the course right away. Thanks for listening.

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Ready To Get Serious About Starting An Online Business?


If you are really considering starting your own online business, then you have to check out my free mini course on How To Create A Niche Online Store In 5 Easy Steps.

In this 6 day mini course, I reveal the steps that my wife and I took to earn 100 thousand dollars in the span of just a year. Best of all, it's absolutely free!

515: How Ordinary People Can Build A 7 Figure Business In 48 Hours With Noah Kagan

515: How Ordinary People Can Build A 7 Figure Business in 48 Hours With Noah Kagan

Today, I’m thrilled to have Noah Kagan back on the show.

Noah is the chief sumo and founder of Appsumo.com, which is a nine-figure company.  He’s also known for his YouTube channel called Noah Kagan, which has close to 1 million subscribers.

In this episode, we discuss the exact steps to build a seven-figure business in a single weekend.

What You’ll Learn

  • How to build a seven-figure business in 48 Hours
  • How to grow a YouTube channel and get a million subscribers
  • The psychological barriers to getting started in business
  • Grab his book – The Million Dollar Weekend

Sponsors

SellersSummit.com – The Sellers Summit is the ecommerce conference that I’ve run for the past 8 years. It’s small and intimate and you’ll learn a ton! Click Here To Grab Your Ticket.

The Family First Entrepreneur – Purchase my Wall Street Journal Bestselling book and receive $690 in free bonuses! Click here to redeem the bonuses

Transcript

00:00
You’re listening to the My Wife Quit Her Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Now today I have my long time buddy Noah Kagan back on the show. And in this episode, we’re going to discuss the surprisingly simple way to launch a seven figure business in just 48 hours. Sound too good to be true? We’ll listen to the end to find out how. But before we begin, I wanted to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com.

00:29
The Seller Summit is an e-conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet. Now, I personally hate large events.

00:59
So the seller summit is always small and intimate. Every year, we cut off ticket sales in around 200 people. So tickets sell out fast and we’ve sold out every single year for the past eight years. If you’re an e-commerce entrepreneur making over 250K or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The seller summit is going to be held in Fort Lauderdale, Florida from May 14th to May 16th. And right now, this is the cheapest the tickets will ever be.

01:25
Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s available on Amazon right now at 50 % off. My book will teach you how to achieve financial freedom by starting a business that doesn’t require you to work yourself to death. Plus, you can still grab my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book.

01:53
Fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:03
Welcome back to the My Wife Quitter Jaw podcast. Today I’m thrilled to have Noah Kagan back on the show for I believe the third time. He is the chief sumo and founder of AppSumo.com, which I believe is a nine figure company at this point that offers major deals on really cool software. But what he’s probably best known for today is his YouTube channel called Noah Kagan, which has been growing like gangbusters and will probably cross the 1 million subscriber mark any day now.

02:32
Now, if you’ve never watched any of his videos, go check out his channel right now because you will be entertained and you’ll probably learn something as well. And I’ve known this guy for almost 10 years now. And what I like about him is that he tells it like how it is. And he’s always trying and experimenting with new things. He’s got a book coming out called Million Dollar Weekend, which will teach you how to build a seven figure business in a single weekend. Sounds pretty outrageous. Well, he’s done it before. And with that,

03:01
Welcome to show. What’s up? Good to see you, Steve Chu. Good to see you. Now we’ve been we’ve been at this game a long time, my friend. A long time. I still remember I met you in Napa and then out of the blue, you were like, hey, let’s let’s go take a walk. I’m like, what? Yeah, just let’s just go take a walk. And there’s like all these people because you invited a bunch of people and we took this walk. And you told me some really personal things on that walk. And I was like, wow. Right on.

03:33
Remember this, you probably don’t even remember this. I don’t know if I remember that. But the Napa thing was a thousand interesting. We wanted basically to go to Napa and we’re like, if we get customers to come, then we can expense it and hang out with the customers at the same time in this Villa. And then we’re like, we should just probably pay for our own Villas in the future. But it was cool to have people like you, the founder of chess.com and others come through the house and hang out. Yeah, that was a lot of fun. Let’s talk about your YouTube channel first, because I know

04:00
that whenever you do something, you go all in. You get the best people to help you and it almost always pays off. So your channel has grown like gangbusters and I’m just curious, what is your process for creating a viral video? Because a lot of your videos, I say that the lowest one gets only like a couple hundred thousand views and you have ones that have like 4 million views. What does it take to succeed? Do you need this team that you have to do it?

04:30
Completely and I I wouldn’t want to do without the team. Okay, what’s really fascinating though? It’s like the opposite side. So for anyone else It’s just starting with your phone So this whole channel that’s now a million subscribers and I don’t know how much money it does. Maybe it’s $25,000 a month it generates it started me shirtless Recording with my phone in my living room in my 800 square foot house that’s falling down You can go the video is still up on the channel. And so I think when people see

04:59
these buildings that are so big or videos that get millions of views, they don’t realize that the most important part is starting. The most important part is getting going. And that momentum and that action leads to getting to a million views or five million views or whatever type of dreams people had. And so for me, I loved it. I was making this video shirtless, which to be clear, if you’re listening to podcasts, my body’s not ripped. It’s not like a bottle. was back when you had the six pack, wasn’t it? It was a little bit after that. I’m just saying, I don’t think it was.

05:27
I didn’t put on oil. It’s not appealing. No one’s seeing this body. But I just started and a few people watched and a few people commented. And that was enough for me because I felt good and I enjoyed it. And I think that’s a part people miss out on. I was like, oh, I’ll keep doing this. And so, again, the most important part is the start. It’s the now, not how. That’s one of the key things we talk about a million dollar weekend. That’s transformative. It’s like get going. And so that led.

05:55
over the next three years to being, to putting out videos where if it doesn’t hit a million views, we made a mistake, which we can learn from. And so it’s been an evolution, man. Like the, and this is how all business and life goes, but we got started. We put out three videos a week. Uh, it was me and one other person, three videos a week for 50 weeks that. Wow. So I did it. started going and I was like, all right, let me just put out videos. And I just kept going. And after all these videos, none of them really got popular.

06:25
Like no one watched them, not one. Like not one of them got super popular, like 100,000 views. And so what’s interesting about that and this is something again, I do talk about a lot of 100 and I talk about in the book and it’s called the law of 100. This is something that like game changer for me because I quit too early in my podcast. So I learned in my YouTube channel, I’m not going to quit too early. And the law of 100 is commit to doing 100 of them. So I was like, I’m going to at least get to 100 videos and then I can quit.

06:53
But the idea is that you’re just most of us quit way too soon. Like the only reason I’m a multimillionaire, the only reason is because AppSumo kept going. That’s it. There’s no difference. Like I don’t have some special ability. The distance between me and most of the listeners is a lot closer than they think. And the distance between where they are and where they want to be is even closer than they expect. And so with the YouTube channel, we did the 50 videos three a week, 50 weeks, and it was just like, fuck, man, these aren’t doing anything.

07:21
And we had a goal to get an extra 70,000 subscribers with about 90 days left. And we’re like, shit, we’re not going to hit it. So we had to try something different. And that’s again, I’m going to keep coming out of the book because the book is what’s teaching. It’s a teacher for me and a teacher for a lot of other people because we only had 90 days to get like almost 100,000 subs. And because we say, hey, can you do something in a weekend, which everyone has? Then we had to try something else and we had to be really creative. And that’s when we did the knocking on doors video.

07:51
where literally I just drove around my neighborhood in Austin and then the richer neighborhoods and just knocked on doors. We put out that video, a million view video, and from there it changed everything. How did you decide to do that knocking on doors video? So we tried what we’ve been doing and it wasn’t helping us hit our goal. Our goal is to get to 250,000 subscribers and we were at about 170,000. And we were doing these videos where I’m sitting on a camera like this.

08:20
Let me tell you about a book. Let me tell you about AppSumo. You know, it wasn’t differentiated and it wasn’t really entertaining for people to want to watch it and stop what they’re doing. And a lot of times for our YouTube content, we look at probably thousands of ideas to do now two videos a month. Does it give you drop the frequency down big time, too? We went from three videos a week to two videos a month. Wow. And each video is highly produced like who we’re going to have as a guest.

08:50
the pre-production, the during production, the amount of editing, the amount of consultants and designers, and I can talk more specifically about it. But what the thing that people can learn from is you don’t want to just copy someone in your industry because you’re not going to be able to beat them if you just copy. You got to look outside of it. And so we saw someone doing these knocking on doors, I think on TikTok, and it was so staged like the person opened the door and they’re like, hello, friend. Good to see you. Yeah. And I’m like, dude, no one ever does that to me.

09:20
But we saw that kind of working over on the TikTok thing and that kind of gave us the idea of, you you drive by these rich ass houses. And ever since I was a kid, I wondered like, who are they? Like, what do they do? And so that kind of inspired this idea of what’s the content people have been wondering about specifically in business that they’ve just loved to know that they haven’t found out and we’ll create that content. And our content’s all around creating content for the underdogs. So.

09:47
We don’t do giving away stupid things. We don’t like, I don’t know, put bouncy balls in our house. That’s not who we’re serving. We’re serving people who are underdogs on their business journey. And I think in content creation for anyone out there, it’s what are your content buckets specifically that you can kind of just repeat that you know, bang, that you know work. And so we found this knocking on doors, basically challenge videos like asking super rich people, challenge videos, super work. And then we said, all right, what’s another bucket? And one of them was asking super

10:16
rich people that are old regrets. Yeah, that’s been another kind of two of our major categories of content that we found like every time we do it, works. So what made you decide to pivot? Because that’s like the hardest thing to do. Was it because you had this goal of 250 subs, 250k subs? You’re really good at this, by the way, you’re really good at just like throwing away everything. And yeah, that’s not working. Starting over. That’s actually a big skill. Thank you. I problems doing yeah.

10:46
Well, I think we have the opportunity cost. We have the emotional investment. I think what I get excited about is doing more of what works. And this is probably one of the most obvious yet least used things in business. When you have started a business, whether it’s car washing, whether it’s selling e-commerce like a lot of your people, whether it’s digital products at AppSumo, the easiest way to grow your business is just do more of what works. Period. And so with our videos, was…

11:14
I could go do these talking head videos and Jeremy, who became the producer, he’s like, Hey, we can do those videos. It’s just not going to, it’s not going to work. We know these work. Why don’t we do more of these? And in business, a lot of times you have a window of opportunity, right? You have something, Hey, I found what works. And so one of the app sumo principles is double down. And we basically try to take it to the point where it’s, there’s no more, we can’t do any more of it. Uh, another example, separate of content, just another business example is at app sumo, we found affiliates.

11:44
are doing super well for our business. So specifically YouTube video affiliates. So we go to people making business content and we pay them money upfront and a percent to make content around our products on AppSumo.com. And we found like the ROI was insane. So we went from basically testing it out in the beginning of the year to now we have a five person team running it. And the same thing goes for the video content that we’re talking about on my channel, which is I can do these talking videos where I sit at this desk, make a nice video.

12:13
and it gets 50,000 views or 10,000 views and that’s cool. But we, our initial interest was making content that we enjoyed and was helping inspire underdogs and those videos work. So we just doubled down more on those types of content. So how do you weigh the cost of the effort versus the reward? So these talking head videos were a lot easier to produce. I would imagine, right? Like hardly any work at all. You sit down, you’re good to go, right? The amount.

12:41
Just to take a step back here, I do these videos where I’ve like I’ve went up to people in yachts. I went up to first class passengers. I stood outside of a private airport. I’ve knocked on houses in Austin, in L.A. I’ve done the streets. And I’m really afraid. Like, I’m really afraid. And the amount of anxiety and I go to therapy and I talk to my girlfriend about it. It’s not that I have some special ability, but that is really the difference between success.

13:09
and where you are today is what are you? What fear are you willing to face? And that’s what it came down to in this content. It was just like, OK, I can do the talking head and it’s going to be fine. These ones are harder to do. I’m to be more proud of them and other people can’t copy it as easily. So that’s what really led us down that path of doing. Hey, we can keep doing this or this is one that’s working. So let’s go do more of that and stop doing these other pieces. We are balancing it out today.

13:38
We’re going to be trying some talking heads so people get to know me because when I’m doing these, these harder ones, people don’t know who I am. They’re just like, oh, it’s a guy interviewing and that’s kind of cool. You know I love is you’re so humble in those videos. Also, the people that you’re interviewing don’t know that you run this super successful business. It cracks me up actually. But you know, I think what I’m trying to show in these videos is that a lot of this is accessible to anyone. Like I’m talking to people in Monaco in Switzerland.

14:08
like on the streets of New York, anyone can do this. And that’s the fear that so many people have. And I do. You we saw that in this book, which is just what’s the fear holding you back from getting going? And no one knows I’m rich, which is exactly the point. I’m just a person with a microphone. I don’t have fancy clothes on. Once in a while I dropped the Rolex. I’ll put the Rolex on, but I don’t even know if people see it. Yeah, I didn’t even notice it. Yeah. Yeah, they don’t see it. It’s like a $50,000 Rolex I’ll be wearing in the videos. They don’t see it.

14:37
And so look, anyone can have the chance to get whatever type of life they want. You just have to go get, you have to go start it. And that’s the part that most people are just watching it or they’re consuming it. And it’s just like, no, how do you get going right now? Anyone can take a camera and go do that on the streets or started e-commerce business, following your material, or do whatever kind of thing they’re excited about. I don’t know if you remember this, but a long time ago you create this course called monthly one case. It’s, don’t know if it still exists and, uh, you just sent me like the first, you sent it to me.

15:06
And I remember the very first lesson was to go ask for a discount at Starbucks. Is this course still exists, by the way? So we’ve evolved. The course still exists. Monthly one kid.com. But everything in the course I’ve improved and simplified and updated within million dollar week in the book. That’s called the coffee challenge, which is probably what I’m most famous for. And I think has the biggest impact on people’s lives of overcoming fear. The biggest impact.

15:35
Yeah, it’s funny because when I first saw that lesson, because you know, I’m a traditional Asian dude, like I like why, why, why am I asking for a discount at Starbucks? mean, something I would do, like regardless of your your course. But yeah, but you’re right, it is all about overcoming that fear. And when I found that I do one on one consults for the students in my class, and it almost never revolves around business. It’s always a mental. It’s almost like a psych session.

16:04
Whenever I do these one-on-ones, I don’t know if you found the same thing. Um, it is fascinating because the amount of business books and YouTube shows and podcasts about how to get rich is unlimited. How many $10 Udemy courses are there? Yeah. A gazillion. So if all the information’s out there, why aren’t, why isn’t everyone who wants to be a successful entrepreneur doing it? What’s the thing? And what I found out through that course,

16:33
And through a lot of other things, there’s basically just two things that are really limiting people before the business stuff. And that’s the fear of starting and then the fear of asking. That’s it. If you can overcome and practice those, it’s never, it’s never perfected, but practice them and you can get more comfortable asking. Like that’s what you have to do in your business. Steve, you ask people, Hey, will you buy handkerchiefs? Hey, we listen to my podcast. Hey, will you sponsor my conference? And the more you can feel a little bit comfortable doing that and get better at it, then all this other business stuff is cake.

17:02
And so that’s the stuff I found that really held people back. so the coffee challenge is really about asking. And then how do you practice just starting and getting going in the right now? And that’s been, it’s been interesting to kind of observe and be surprised that it’s not the business stuff. It’s the fear stuff that really holds most people back. And people are more receptive to helping you than you think. I remember when I first encountered you, I, I didn’t, you were like, Hey, just give me a call. I’m like, what? Cause

17:31
I thought that was just very generous of you to just, you gave me your phone number. I’m like, okay, let’s talk. Right. But I didn’t expect that to happen. And if I didn’t ask, then I never would have had that first conversation. Yeah. Most people hope for things. They wish for things, but the only way to get something is to ask for it. That’s the only way. And it’s something that you, the more you practice it, the more it actually happens. And it’s in a powerful thing.

18:01
I was fortunate that my parents were kind of extreme examples of askers. You my dad asked for discounts all the time and I was so embarrassed. And now it’s kind of like, okay, well, if you want to raise, that’s an ask. If you want a job, that’s an ask. If you want a boyfriend or husband or girlfriend, that’s an ask. If you want to have someone interview for on a show, that’s an ask. And the more that you can get comfortable with it and frankly excited about it, you start realizing all the different things you can do in this plan.

18:30
I just wanted to take a moment to tell you about a free resource that I offer on my website that you may not be aware of. If you are interested in starting your own online store, I put together a comprehensive six day mini course on how to get started in ecommerce that you should all check out. It contains both video and text based tutorials that go over the entire process of finding products to sell all the way to getting your first sales online. Now this course is free and can be attained at mywifequitterjob.com slash free.

18:59
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

19:10
This is something I’ve been doing with my kids. So there was this test that my son did really badly on. And you know how it’s unacceptable to get a B in my household. You and my parents, bro, my parents, I’m like fearful. So I went up to him and I was like, are you going to settle for this grade, which, is like a C minus or something. And he was like, well, what can I do? And I was like, well, you can go talk to your teacher and say, Hey, can I retake this? Is there anything I can do to just make up for it? Cause I really care about this grade.

19:40
And so he did that and the teacher let him retake it and he did better the second time. But if he didn’t ask, it’s not like the teacher offered a makeup exam, but he asked and showed that he really cared about his grade. And that’s really all that a teacher wants to see, right? That you care. And so he let him do it. Yeah. Yeah. It’s amazing. Like one of the most popular YouTube videos we’ve done is with John Paul DeGioria, the Patron Tequila guy. And you have to know where you want to go. And I think everyone should be rich.

20:10
That’s just at least try being rich and then decide if you don’t like it, but at least have it so that you can make the decision. See if you don’t like it. I like this. I didn’t think being rich was cool for a long time. Now I’m like, dude, money buys a lot of happiness. And what happened, what what what I had is that, OK, I wanted to interview certain people and have a dream. That’s what I’m saying. Have a dream of being rich. Have a dream of having some crazy stuff. You don’t realize the levels that you can have in your life. I think we a lot of people, including myself, historically are stuck in the middle and the middle is getting squeezed.

20:41
real bad. And I didn’t know I could be out of the middle class because that’s what my parents taught me. They taught me for the middle class. And that was the best they knew. And so I had a dream that I can interview billionaires and John Paul DeGiorgio was on our list. And it was like, how do we meet John Paul DeGiorgio? I like, I don’t know, man. So I email him. We tried nothing. And so I was biking. I was biking in Westlake Hills, Austin. And I see this guy with gorgeous hair. And I was like, that looks I know that hair. And then.

21:09
I said I biked another two miles and I was like, I would always regret if I never asked. Someone said this to me recently as well. They said, I don’t want to live a what if life. I don’t want to live a what if life. And I was like, that’s a perfect way of living it. You don’t want to live a what if life. So I biked back two and a half miles, try to find him, found him. And I said, hey, John, I love you. Really impressed. You seem like a honorable person, really, really kind person. I love to interview for my show. He doesn’t know who I am. I’m in spandex. Yeah.

21:37
He’s like, sure, follow up with my assistant. And just from asking and then she said, you know, I followed up with her the next literally that day. She said no. And then I followed up for the next year. And after a year, she called me on a Friday and said, you can come at 8 a.m. Monday if you can do it. And that’s how we got the interview. And that’s, know, that interview, we donate all the proceeds to laptops for kids. And I got to meet him, which was honestly super inspiring. And that’s just from an ask, just an ask.

22:08
I’ve seen you go above and beyond to meet people. I think there was this one guy that you want to meet. can’t even remember now, but you ended up sponsoring his bike tour or something like that. Yeah, I think you donated. Yeah, I think I donated a little bit. Yeah. Thank you. That was Bo Jackson. Oh, yeah. Yeah. That was my father passed away and his name was Bo. And when I was a little kid, I loved Bo Jackson, too, especially if you grew up in the 80s or 90s, you knew Bo Jackson. And I just I felt a calling to meet him and somehow connect with him.

22:37
as my after my dad passed. And, you know, this is something again, two biggest fears holding people back from success is starting an ass game. I built a community over 20 years, which everyone can do. And that’s why I talk about this this distance. I think people listen to a podcast or they watch a YouTube video and they say, I can never do that or I would never be able to make that happen. It’s like, no, the distance from you and where you want to be is much closer than you realize. Much, much closer. I think people want to sell you that the distance is far, but that’s not true.

23:07
And I put out videos and put out blog posts just like you have, Steve, for a long time. And one day I asked my audience, will you donate to Bose Charity? Because I think that’s a way that I can actually get to know him. And I think he’s doing a good charity. So that’d be a great, great thing. And I just asked and we raised thirty thousand dollars. And then from that, because he said no to meeting me, actually, initially. Yeah, he didn’t want to meet. And so I asked, donated thirty thousand dollars. And he said, yeah.

23:35
And so I was able to meet him. kept donating to his charity, got to interview him for a show. And it was was what was fascinating. Probably one of the most interesting things about that ask. Was that almost everyone who donated, I knew who they were. Wasn’t that like I built up some of this large following of millions of people who I don’t know. It was actually about one hundred and two people and almost every single one. I knew who they were like I emailed with them. I’ve like tweeted with them or some social media DM with them. wasn’t I built up this following and didn’t know who they were.

24:05
I mean, how cool was that? Because I used to play with Bo Jackson in Tecmo ball. I don’t know if you heard. Yeah. Wow. He a guy who was a lightning fast guy on the Raiders back in the day. Oh, man. He was a legend. Yeah, legend. But I think the other thing is that anything we want in life is accessible. Yeah. Whether it’s money, whether it’s a great partner like me and you have, whether it’s great money, whether it’s a company.

24:33
whether it’s a location, whether it’s a house, whatever these things are, and finding the things that also do matter and being able to spend that money on it, it’s accessible. And I think the more that that belief happens, the reality of that happens, the more that it actually can happen. I think for me, when I have these one-on-ones with some students, it’s often a confidence thing. And I always tell them that you’re just going to figure it out. You’re not going to know anything ahead of time, so just do it.

25:01
and just learn along the way. In fact, a lot of times the course is just a guide, right? The course isn’t going to really help you as much as you just figuring stuff out because the information that you need is going to be very specific to what you’re doing. Dude, that is such a great point. The you know, in the book, I do talk about now, now not how, which is this idea of we get so consumed on like, how is it going to do? It’s like just get going, start doing it and you will solve it. And recently I told you

25:30
before the show, was biking across America and we got stuck in the snow and we still had 70 miles left and we were both sore. I was like, there’s no literally wasn’t safe to ride. And I was like, I don’t know how we’re going to get get to Albuquerque where my family lives. And it’s like, OK, we’ve got to do something because we can’t ride the snow. We might get frostbite. We could literally if we get injured, we’re screwed. There’s nothing between. And. You know, I think this is not I think the success of an entrepreneur and someone in life is, are you willing to come up with a solution and be resourceful?

26:01
Period. And so and by the way, you don’t even have to come up with it. You just have to be around the other people or find people who can come up with it. And this idea that there is always a solution, there is always a solution. We found my my buddy Anton came up with the idea. We found a U-Haul truck. We rented it and it was cheap, too. It’s ninety nine dollars. Good price. Rented a U-Haul truck and drove the last 70 miles. You know, there’s there’s always a solution to these different experiences. I think that sometimes.

26:30
That’s really what’s going to separate you. Like, are you willing to think about a solution? Are you willing to keep going when it seems like there’s a challenge that you can’t overcome? And there’s always a way to overcome it. Also, there’s no right way to do things. And I kind of discovered this on the job when I was an electrical engineer. I kept bugging my boss, asking him, hey, can you look at my code? Is this the right way to code things? And then I discovered later on, like, no one knows what the hell they’re doing. They’re just coding however they want in their style. And that’s just something I learned. There’s no right way to do anything.

27:00
Just do it. Yeah, going. think what happens is we sit on the sidelines long enough that we just get more complacent being there and we we look at other people and think they have some answer. I don’t have. They have something I don’t have, and that’s just not true. And it’s like, oh, this person’s figured out like they don’t know what’s going on. We’re on a planet in space. No one knows why we’re here. Not one person. So, you know, we’re all figuring out our own best ways, and it’s good to kind of observe other people and then make your own decisions.

27:30
I think that’s a great lesson that you shared, Steve. It’s like, does it work? Are you satisfied with it? Are you proud of it? And that’s something I think more of us can get better at is like worrying less about the external people and more about the internal people. Like, am I proud of this work? Does this code work for me? Does it work for what I need the outcome I need to be doing? So let’s talk about the total your book Million Dollar Weekend. It sounds pretty sensationalistic.

27:57
Can it be done? What do you mean by seven figure business in a weekend? How long did it take you to become a millionaire? Six years. Until our business started making a million a year. In revenue, right? profit, revenue, yeah. Millionaire wise, mean just like money in the bank? Yeah. It happened pretty soon after that, because I don’t spend that much money. And I used to buy stocks. I bought stocks from a young age too. So all that money just went into stocks and stuff. That is good. That is good. I actually became a millionaire

28:27
through day jobs, mostly, mostly day jobs, not through some inheritance. Yeah, I just had day jobs. didn’t, I didn’t spend a lot of money. I lived on couches. I lived in my aunt’s basement. I lived on floors, lived at my mom’s house and I was just, you know, saving that money. And so by the time I turned around 30, 31, I had a million liquid. That’s what people should always ask when they talk about that. Now regarding the book for your business with the e-commerce business for handkerchiefs and so forth. When I’ve started businesses,

28:58
AppSumo.com, Gambit, Cakeflip, they were all started within 48 hours. And AppSumo today, this year is going to do somewhere between 70 and $80 million in revenue. Crazy. Crazy. It’s, it’s absolutely remember when I was in the newsletter with you and Neville. I, know, playing guitar and just drinking on Fridays. I guess we’re still doing a lot of the same things. But the point is, is that the 80 million started with $1 and that $1 started in 48 hours.

29:24
And so what most people do is they want to be a millionaire, but they never make the one dollar and they just stay becoming a dollar in air. And so it actually become the millionaire or the multimillionaire or the billionaire. It’s about getting going. And so the book specifically is like, hey, this is the appeal. You want to be a millionaire? You can actually get it going in a weekend. Some people, I bet you within the next year, someone will make a million dollars in a weekend. And that is possible. Is it going to be everyone? No, but you can get there by getting going in a weekend and everyone.

29:53
Steve, you have two kids. You’re telling me you got volleyball practice. You got a wife to take care of. You got your own interests. You got friends. You got your, you I don’t know if you’re in a fantasy football. I’m in a fantasy football. The reality with that is that that means you don’t have a lot of time to become a millionaire if you’re not. And if you have a day job that’s busy and you want to do good work, but everyone has a weekend available to change their life. And that to me is the appeal that you can become a millionaire weekend. You can make your own business, which is the best investment you can do. And you can get it going in a weekend. And so.

30:22
All those combined to me. That’s like, yeah, million dollar weekend. You can change your life and make it happen. 48 hours. Actually come to think of it now that you’re mentioning it, I did. We did start Bumblebee linens in a weekend because my buddy showed me the software and I just had it up and running. The blog started in like five minutes when someone just showed me how to do it. Yeah. And I think that the reality for most people is how do you just get started?

30:50
Right. And they’re sitting on the sidelines. And that’s why we talk about the now not how habit like there’s this guy in the book, Pat. He’s in Poland. He’s a customer service day job in Poland. You know, my family, my heritage is from some summer from Poland. And he’s always dreamed of having a million dollars and having his own business. And so he’s always been super into YouTube. And because of the book, he read it, followed things in the book, and now he has a ten thousand dollar a month consulting business for YouTubers. Amazing hiring other people. His Pat Gosek and I’m like,

31:20
Okay, Pat. All right, attaboy. And that’s because he got going, right? He got over the fear of starting. He got over the fear of asking. And then we, you you go through the steps of like, how do I validate that people actually want it without spending money in a weekend? And because you’re limited, you’re like, all right, well, I’m to be creative. And so it’s been special to see people like him or other different types of businesses come out through this book. And so I’m curious to see what other ones do come out. You know, it’s funny, I was just watching.

31:46
your last YouTube video with the guy who sells tankers, right? Billionaire guys start selling tankers. Yeah. And he was just like, Hey, I just wanted to sell into the horizon. Because you asked him like how he got started. And that’s what that’s all it took. And a dream. But it’s just amazing. Because you don’t you don’t see the entire process. You just see the end product, right? Yeah, I mean, I would say it was pretty

32:15
pretty unhappy a lot of my life in the 20s and maybe even some of the 30s. you know, I find that entrepreneurship everyone should do. It’s like you get the most upside and you really get to ultimately control what you want to do in life. Whether it’s maybe making grocery money or it’s making millions, it’s just the idea that you can actually, OK, I have control about how I live and where I live and all these things can come through entrepreneurship. you know, Hudner, Michael Hudner on our YouTube channel, he like he like ships and tankers. I still think the world’s partially flat.

32:44
Prove me wrong. Tell me something. Been to the go to that corner that you’ve been to. Tell me now the I joke. But it’s finding whatever it is that you do get excited to do and realize you can actually make a ton of money doing these things like there’s people getting rich doing gardening on YouTube. You know, Kevin, spirit to epic gardening. No, dude, he’s making millions of dollars in gardening. Yeah, there’s something I think is in San Diego. There’s a guy, Dustin’s fish tanks, fish tanks, fish.

33:13
I just eat sushi. I can’t. doesn’t let me come into his house because I eat his food. You know, so the not just on YouTube, right? E-commerce like you have. What do you guys do? You have like handkerchiefs. We saw. Yeah, there you go. People always make fun of you for that. I don’t think make. Dude, I love when people are doing one of the YouTube people I super want to interview. Not for YouTube. For myself, most of the content and the things I do in business is what I’m interested in. And I you have to find that that that Venn diagram of what you want to do and what people will pay, what people will watch. And that is there is a science and art to that.

33:43
I want to interview the guy who does the toilet, toilet bowl sense. Toilet bowl sense. Yeah. I don’t even know what that product is. Is it just, you you go to your journal and you pee and there’s those little pockets. Yeah. The bricks, the cakes. There’s one called Echos, E-C-K-O-S dot com. And I’m always peeing on his things. And I felt we looked him up and we’re getting ahold of him. But I’m like, dude, how did you get into the pee business and how do you test that? So.

34:11
Point being, there’s a lot of ways, and I think that’s part of my channel. My channel shows you that one, anyone can do it, and two, there’s a lot of ways of living a rich life, like actual rich life. It’s not just tech, which, you know, me and you are Silicon Valley guys. Like that’s where we, that’s how we thought you’d only get rich. And you know, a lot of the people I’ve met, it’s just so interesting to find out a lot of different ways. So you’ve done a lot of things, and I’ve always wondered. So you have content, you have a SaaS company.

34:40
and you have software. what I mean, you have AppSumo, sorry, AppSumo and then a SaaS company. What is your favorite thing to do? What are the pros and cons of each one of those business models? It just seems hard for I find it always hard to believe that you can handle all those things. I used to do software and hardware, ton of time, huge commitment. What is your rationale for doing so many things? Now have this book coming out. Yeah, you just kind of do whatever the hell you feel like.

35:10
You know the way that I believe everyone should approach it is what will you do for free? Okay, and then figure out how you can get paid working for free So I’ve been putting out content you can go back on archive org or whatever Since 2000 I’ve been putting out blogs and putting out YouTube since 2006 I got to meet Steve and Chad when they came to Facebook. I’ve got you know, I put out the podcast now years And so it’s if you have money

35:39
Or if you had all this money in the bank, what would you do? And then go do that. And that’s how you actually end up getting a lot of money. Like one of the things I talk about a million dollar weekend is called the freedom number. And this is a number like Sam par had one. I have one. You probably had one. You did have one. Actually, I know. And it’s just finding how do I make as little money as possible so that I can have freedom? And then when you have freedom, you can do what you really want. And guess what? You end up making a lot of money because you’re doing the things you really enjoy. And it’s very fun to stay with it.

36:06
And most people quit too soon. That is why we also talked about the law of 100. So for me, like I love making content. I got to go interview a urinal guy. I know like how cool is that? Let’s go talk about urinals like it’s interesting. I get to meet a lot of interesting people like Michael Hudner and they took me sailing on his boat or I went on a private jet because I just stood outside an airport. That was a sweet interview. Also, that was like all these things up, by the way. yeah, that was a wild one.

36:31
I was very well and then I’m like he dropped us off at 9 p.m. raining in Boston had to go. Anywho now with AppSumo I love promoting. I just love promoting. That’s what I’m promoting content and now I’m promoting software because I like software and I like deals and so it just comes back to the things I’ve really enjoyed now about how we decide what we’re doing. There’s there’s two different ways I would recommend people approaching it. Number one what’s the number one problem in your business? What’s the number one thing that could screw you over? So you’re kind of looking at from a negative angle.

37:00
And so with AppSumo, our revenue is not recurring whatsoever. We do these amazing deals on software and we can have a month where we do 2 million and then we can have a month where we do 10. And it’s just like that is very hard when you have a payroll that’s one and a half million dollars a month. That’s very hard. And so it’s like, oh, well, one option is to have recurring revenue. And so we built sumo.com. We’ve built the AppSumo originals products like tidycal.com. Also, I hate paying subscriptions.

37:28
So it makes it easy to be like, we just build so David and Garrett and the original scene built software that we want ourselves? I think that’s one of the best things you can do in business is make yourself happy. And now in terms of the other side of business is what are you excited in the future to work on? And how do you make your week look like that? So with AppSumo, we spent six months talking to customers, talking to partners, talking to the entire team. There’s about a hundred people talking to our leadership team, talking to our advisors.

37:56
And we came up with this vision around how do we help SaaS businesses more these creators that create tools for solopreneurs and small businesses? How can we help distribute more of their products? Right now we only help distribute products that are really good deals. And we love good deals in AppSumo.com. love it. Steve, me and you are like deal brothers. Dude, we are. I love a good deal. And the idea is, all right, what else can we do to help them from when they’re starting to after when they finish AppSumo? And now it’s like, oh man, we get to work on that.

38:25
The reality for you, me and everyone is how do you create more excitement so you’re looking forward to what you even get to work on and that that’s accessible to everyone. So that that’s kind of how I think about the different things going on. Like some people ask like, hey, you can sell AppSumo. We could probably sell AppSumo for a few hundred million. Which is a lot of money, like I don’t see percent. So I’d get one hundred, two hundred million dollars. OK, what do I do? I do YouTube. I do my newsletter. No, Kagan dot com. I go promote stuff. I go back and build software and I just.

38:54
have AppSumo again. So why don’t I just keep doing this? And I truly believe I don’t I don’t think retirement’s in the books for me. I think as I have a family and those things happen in the future, I probably reduce the amount of time I do it and I hire people. But yeah, this is it’s amazing. I can’t believe I get to live this life. And I think that everyone can live that and it can get even better than this for me and for everyone else. Where does the book fall into this? I have a couple of questions for you. So why go the traditional publishing route for this book versus self publishing?

39:25
What was your reasons for creating this book? Name five, name five self published books that are best sellers that are like iconoclastic in the business section. Good point. No, can’t think of any actually. Name one, try one. That have been self published. The only one I can think of is Brandon Turner’s book. You know, Brandon, right? The real estate investing book. was self published and it outsells practically every book on the, on the, on the list.

39:55
Yeah, I like this. I’ve done two self published books. I think there’s not. I think there’s something there when you sign up for the major leagues. Like yesterday, I did the audiobook. I was in a professional studio where like rock bands are days and there’s a professional producer with an engineering recorder. This producer’s name, Scott Sherritt. He just did Prince Harry’s book. And I was like. No, OK, I print Harry did. Yeah.

40:24
Yeah, I was like, my mom’s a queen. So, you know, it’s just a different level. And it’s what level are you expecting this book to make an impact of? What level of professionalism are you taking this book? And that’s when it really hit me yesterday where it’s like, this is the difference. A self-published book can do really well. And I think it’s great if you want to start off. But in terms of the books that have in our current civilization, the ones that have lasted are the ones that have gone through a traditional publishing run that can change in the future.

40:53
But for me, I wanted to sign up for something serious that is harder and longer and more impactful. And that to me was a traditional publishing rep. It’s good answer. My answer was I did it for ego. I want to hit the list. I wanted my mom to respect me. I wanted my mom to actually read something that I do. But I like your answer to, know, the ego is dude, no joke. My ego straight. It’s there too. Like I like when, you know, I like the YouTube videos. I like the comments. I replied a lot of the comments. Um, I don’t need.

41:22
The New York Times, that’s something that feels secondary to me. I feel like I wanted to put everything I ever thought of and that people ever asked. I was on a bike ride 10 years ago and I was like, man, there’s no book out there that can that I wish that I had. This is with my buddy, Adam Gilbert, New York. We were biking around. I was like, I wish I knew a book that I could have read that have been like, here’s why you haven’t had success yet. And here’s the steps that once you figure out your fears that you can actually take to create a million dollar company, there’s nothing. And it was like, all right, I’m to put everything in one book. That’s it.

41:52
This is one shot. I’m not doing another one. I’m just go back to work. And then this is the bar I can give to other people, to my kids, to friends. That’s like, hey, go follow this. This is your last book. Is that what you’re saying? Oh, my god. Other books, right? I remember reading another book. I can’t your Facebook book. I can’t remember what it was called. Yeah, I wrote a book about how I got fired and I didn’t get all that money like 200 million. Yes. Now it’s a billion. Now it’s a billion. And then I wrote another book about

42:19
rich people tax secrets called things that millionaires don’t want you to know. It’s really good book. Yeah, they’re just different. It’s just different levels. Right. It’s like playing in the minor leagues versus playing the major leagues. And very few people make it to the major leagues and very few books are written. Very few books are great and very few books actually get read and make an impact. And, you know, for me with this book and I think with when you’re working on something, it’s not cares about me writing a book. It cares about the person listening or watching and the impact for themselves.

42:48
It’s like, how do you stack the deck in your favor? How do you have a goal? And for me, it’s to get a thousand positive reviews on Amazon, because I mean, someone read it and they took action. That’s my goal. How do you stack the deck so as you’re working on your ice cream business or on your e-commerce business for handkerchiefs or if you’re doing car washing that you can stack the deck so that it’s going to be successful, like you ask enough people, you get enough expert help, like whatever it is to make sure it’s successful. And that’s what I’ve done with this book through hiring James Clears.

43:18
proposal writer, getting Ramit Sethi and one of the best agents, Lisa Demona, getting one of the best business writers in the world, Tal Raz, getting literally almost a thousand, no, it’s over a thousand people beta testing, beta testing a book. Who beta tests an actual book? Like no, every weekend, five people go through the actual book and test it. And then we have a thousand in our launch team. It’s been thoroughly tested. And so as I’m doing it, I think this applies for everyone. Like as I’m doing YouTube videos,

43:44
It’s not a big surprise when the video does well, because we’ve put so much into making sure it’s going to do well. And again, that’s because I started, right? It’s because I wasn’t like doing this. It was like I got going. And then it’s led to these points where now as I’m doing these things, I have more confidence it’s going to perform well. can tell you that from my experience launching the book, your advice of just asking, that was hard for me. But I did it. But that was something that was pretty uncomfortable for me.

44:12
Because launching a book is one of the few times when you actually have to go out and ask a lot of people for help. You know what I mean? Dude, it’s been hard. Even for me, it’s hard, dude. Like I know we had a thing where you asked me and I felt like I didn’t feel appreciated, but I felt I was really glad that we could have a conversation about it. That was healthy. And in this book, it’s been I think that’s probably been one of the most shocking things post like now it’s promotion period. And now the book’s coming out is how many people have I helped? Countless.

44:41
Well, and not this is not arrogant. I’m saying for everyone out there, how many people have you helped? How many people can you call that maybe could be a customer that can maybe promote you, that maybe would refer you for advice? And I was a little surprised how many people were were willing. And it made me feel nice. And it was a good reminder for me and for everyone out there that like keep helping whether you need it right now or whether you need 10 years or 100 years or never years. Just get going and help people. And that does come around and does pay off. And people like you.

45:11
Pat Flynn, a lot of other really great people. Omar, I feel lucky to have on my side around this stuff. Yeah, it felt really good how much people are willing to help. if you listen to this, you’re going to be surprised by how willing people are to help. Unbelievable. The other thing that I’ve also just asked for advice for a lot of people I called you, I called you about the book, the boxes. You know, I called Marie Forleo. I’m calling whoever I can. And instead of asking someone for like, help me. That’s for advice. And a lot of people, I’m like,

45:40
Can you me advice? Yeah. And then here’s what I’m going. This whole advice thing is good. Just ask for advice. And guess what? You’ll be surprised. People want to help you there, too. Like I think if you’re if you’re poor or even, you know, if you’re wherever you are in the world, like, don’t know anyone rich. You have a dentist. Dentists make good money. You have a doctor. You have a lawyer. You can ask them how they did it or you can ask them for their friends. And just by asking for advice, you’d be shocked. Like some of my best investments, it’s because I had I had a parking spot landlord. I was paying 200 a month for my parking spot downtown.

46:10
And I was like, how’d you get so rich? He’s like, I sold a software company. Now I do real estate. And I was like, can I treat you to lunch? Took him to true food kitchen and I bought him like, you know, whatever. Nineteen ninety five dollar quinoa overpriced And then, you know, now I’ve invested in deals that have performed well. And that’s just because I asked someone that seemed like they’re doing something well and that’s not exclusive. That’s available worldwide.

46:37
So if you’re listening to this, go to your local Starbucks and ask for a 10 % discount on your next coffee. That will train the muscle for you to ask for stuff. They’re asking, yeah, it’s business, man. That’s business. Noah, when’s this book coming out? Where can people find it? Go to milliondollarweekend.com. We have a lot of templates and resources for people who grab the book. That is where I’m sending everyone milliondollarweekend.com. And you can get a free chapter, right? We have different.

47:05
resources and free things on the on the website. We’re still experimenting about what the final website is going to have. there’s within the book, there’s templates about how to do your one minute business model. There’s video walkthroughs about how do you evaluate market research. There’s a lot of different step by like, we made it foolproof, if people are willing to put in the work that they will get to a million dollar business. Awesome. Well, hey, Noah, thanks a lot for coming on the show. Looking forward to the book.

47:33
Hope you enjoyed that episode. And what I want you to do is head over to Amazon right now and grab Noah’s book, The Million Dollar Weekend. It’s a great read, highly practical, and I can tell Noah put his heart and soul into the project. More information about this episode, go to mywifecoderjob.com slash episode 515. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event.

48:03
go over to SellersSummit.com. And if you’re interested in starting your own eCommerce store, head on over to MyWifeQuarterJob.com and sign up for my free six day mini course. Just type in your email and I’ll set up the course right away. Thanks for listening.

I Need Your Help

If you enjoyed listening to this podcast, then please support me with a review on Apple Podcasts. It's easy and takes 1 minute! Just click here to head to Apple Podcasts and leave an honest rating and review of the podcast. Every review helps!

Ready To Get Serious About Starting An Online Business?


If you are really considering starting your own online business, then you have to check out my free mini course on How To Create A Niche Online Store In 5 Easy Steps.

In this 6 day mini course, I reveal the steps that my wife and I took to earn 100 thousand dollars in the span of just a year. Best of all, it's absolutely free!

514: Behind My Brand: 2023’s Big Wins and Brutal Losses in E-Commerce

514: Behind My Brand: 2023’s Big Wins and Brutal Losses in E-Commerce

In this episode, I’ll give you the run down on how both our businesses performed in 2023 including all of the highlights, lowlights and what we have planned for 2024.

What You’ll Learn

  • How my businesses performed in 2023
  • Predictions and plans for ecommerce in 2024
  • Check out my new office – Click here for the tour

Sponsors

SellersSummit.com – The Sellers Summit is the ecommerce conference that I’ve run for the past 8 years. It’s small and intimate and you’ll learn a ton! Click Here To Grab Your Ticket.

The Family First Entrepreneur – Purchase my Wall Street Journal Bestselling book and receive $690 in free bonuses! Click here to redeem the bonuses

Transcript

00:00
You’re listening to the My Wife Could Her Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Now, my wife just closed the books on both of our businesses and this podcast episode will do a recap of the year. I’ll talk about the highlights, the lowlights and what we have planned for 2024. But before we begin, I want to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com.

00:26
The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods and not some high-level guys who are overseeing their companies at 50,000 feet.

00:53
Now I personally hate large events, so the Seller Summit is always small and intimate. Every year we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s gonna be held in Fort Lauderdale, Florida from May 14th to May 16th, and right now this is the cheapest the tickets will ever be.

01:21
Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 38 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still access my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book.

01:49
fill out the form and I’ll send you the bonuses right away. Now onto the show.

01:59
Welcome to the My Wife Coder Job podcast. My wife just closed the books on our two seven figure businesses. So in this episode, I’m going to give you the rundown on how both our businesses performed in 2023, including all the highlights, lowlights, and what we have planned for 2024. So first off, let’s start with my e-commerce store over at bumblebeelenns.com. If you’re not familiar with my online store, I sell handkerchiefs online and I’ve been running this seven figure store for over 16 years now. And as with any business,

02:27
there are always going to be ups and downs. Now the beginning of 2023 got off to a shaky start because we purchased a brand new office building at the end of 2022. The landlords at our previous office where we rented for the past six years decided to jack up the rent 30%. So we finally decided to bite the bullet and buy our own office. Now give you an idea of the numbers. Our rent was going to go from about $5,000 a month to roughly $6,500 a month for a tiny 2300 square foot place.

02:57
and we didn’t think it was worth it to continue renting. So during the first week of January, we shut down the shop for a couple of weeks to move into our brand new office and it was a major pain in the butt. But I’m happy we made the decision because our new place is big enough to last our business a long time and we no longer have to pay any rent. Now, in case you are curious what it looks like, I did a full tour over here that you can watch. But overall, January was very slow because we lost half the month to move and stuff was all over the place. But once we settled in,

03:27
sales started rolling in. And in fact, from February until about September, October, we were experiencing record sales. Now I’m looking at our product sales right now for 2023 and almost all of our personalized linens, including handkerchiefs, napkins and towels, shot up by double digits to triple digits year over year in growth. Meanwhile, our non-personalized linens dropped about 8 to 9%, depending on the category. Now overall, I attribute the drop in our regular linen products

03:55
to increase competition on both Amazon and other marketplaces. Now, fortunately for our store, many years ago, we decided to double down on personalization, and it’s paying off big time. Today, we’ve got six industrial-strength embroider machines running all day to create personalized products for our customers. These machines are heavy and expensive, which provides a nice barrier to entry from people wanting to copy us. Plus, learning how to embroider carries a steep learning curve

04:22
and there are lot of steps involved in the process. Now my philosophy has always been that you never want to do what’s easy when it comes to business because there’s just going to be a lot of competition. This is why I will never recommend dropshipping as your primary business model. Sure, it’s easy and there’s low upfront costs, but there will be hundreds, if not thousands of stores out there selling the exact same thing. And it’s just going to be a race to the bottom in terms of price in the long run. Similarly,

04:49
If you’re just buying stuff from Alibaba and then selling on Amazon unchanged, you might be able to make a couple bucks here and there, but eventually you will get squeezed. Instead, you want to sell stuff that very few people want to take on and you must build a brand by creating content. Now I teach Amazon to the students and my create a profitable online store course and I’ve consulted many sellers in the past and people have been drinking the Amazon Kool-Aid for so many years that they never bothered to learn any marketing skills for their own online store.

05:18
Now today you have to be omnichannel and sell on as many different marketplaces as you can with your website as your home base. Anyway, sales are really good for bumblebeelindens.com until about October when Google decided to launch four consecutive core updates to combat spam. And unfortunately we were hit by one of them. Right now because of artificial intelligence, Google has a spam problem and it’s changing SEO dramatically to fight the onslaught of AI generated blog posts. Now if you look at the search results today,

05:47
You’ll notice that sites like LinkedIn and Reddit and other user generated content sites have shot up for a bunch of different search terms. And Google is putting way more weight on established websites like Amazon and Etsy. Now, fortunately for us, most of the traffic loss was for blog posts on Bumblebee linens that got traffic, but did not lead to many sales, but we did take a slight hit of our sales. Now the one saving grace was our email list. Back in November of 2022, I implemented a service called retention.com

06:16
that allowed me to gather emails from visitors to my site without an opt-in. Now I know this may sound a little grey hat, but it’s 100 % legal and it works great. For more information about this tool, watch this video here. But overall, retention has added me about 50,000 new emails in the past year, and many of these are new and repeat customers today. The other saving grace was that we released a brand new product line, our custom printed linens on November 24th. Now looking back, it was pretty crazy and borderline dumb

06:46
to launch a new customized product on the busiest shopping day of the year without any fulfillment processes in place. But we did it, and it was a crap show. Here’s the backstory behind that decision though. During the middle of 2023, we decided to purchase a brand new DTF printer from Sublastar so we could print any image on any of products that we sell. Customers were asking for graphics on their linens, and our embroidery machines just were not cutting it.

07:11
Now whenever you get a cool new gadget, it takes a while to learn how to use it and all the little tricks and quirks, and running a DTF fabric printer is nothing like printing on your inkjet at home. It’s a lot more hands-on, you have to keep the print heads clean, and there are many steps involved in the printing process. So for example, to print a design onto a handkerchief, you have to print on a special film. Then you have to put special powder on the printed design and then bake it in an oven. And then finally you have to take a heat press and then press the design onto the fabric.

07:40
Now pressing a design one at a time is easy and it’s actually kind of fun, but imagine getting hundreds of orders all at once and if you don’t have a process in place, you’ll end up beating your head against the wall. And this is exactly how I felt on Black Friday. In fact, I was so scared of having a lot of sales volume that I didn’t even mention our new line of printed linens in the email that we sent out. Instead, I just created new categories for these products on our website for our customers to discover and launched with about nine custom design choices.

08:09
Now on Black Friday itself, we sold exactly 23 of our brand new printed towels and handkerchiefs. Not a whole lot, but man, did we screw up that first batch. Now to provide some perspective, we got over 500 SKUs in our shop and we actually didn’t do any test prints on every single product, because it’s a lot of products. So what ended up happening was that we set the heat press temperature too high and burned a whole bunch of our linens in this first batch. Also, I was actually the only one who knew how to use the printer, so I was actually going in every day during the holiday season.

08:39
put together SOPs for the fulfillment process on the fly. Now I don’t want to go into too much depth because I filmed a full length video here about my adventures with the printer that you can watch. But our brand new printed line of linens contributed several thousands of dollars to the top line. Not a whole lot, but enough for us to iron out the fulfillment process. In fact, one of my tasks this month is to train our employees to take over. Now going forward, I anticipate that our custom printed linens will become a major profit center for our shop.

09:08
and we had the flexibility to print anything on anything that we sell. So all told, we started out the year weak in January, strong in all of the months until about October, where we got hit by Google, but email and SMS and our new product line allowed us to end the year up in terms of revenue. However, in terms of profit, Bumblebee Linens was way more profitable because we didn’t have to pay rent any longer. But overall, the groundwork has been laid and I think this year will be a good year for us. So what’s in store for 2024?

09:37
I’m going to be experimenting with AI, specifically an AI bot to handle basic customer service calls. We hired a new customer support person toward the end of 2023, and she has made a huge difference. Now, because our clientele tends to be older, they like to talk on the phone, and we get a bunch of orders this way. I’m also working on creating a new handwriting embroidered product to the mix. Lots of brides have been asking us to have a handwritten message embroidered on our handkerchiefs. Now, of course, this can be done, but I need to think about how to automate this process

10:06
so as few humans have to touch it as possible. But all told, I’m very happy with how Bumblebee Linnens performed this past year. It wasn’t a huge growth year for us, but more of an infrastructure year as we lay the groundwork for the future. Meanwhile, my other business over at mywifequitterjob.com had an incredible growth year. All told, revenue from mywifequitterjob.com increased by about 60%. Now, if you’re new to this channel, My Wife Quitter Job makes money with advertising, affiliate marketing, sponsorships, and core sales.

10:36
I also run an annual e-commerce conference called The Seller Summit. So if you ever want to hang out in person, you know where to find me. I’ve been running this event for the past eight years and it sells out every single year. Now to be straight up with you guys, I didn’t really do anything different with MyWifeQuitterJob.com in 2023. But what amplified the growth was two main factors. In May of 2023, I launched my first book called The Family First Entrepreneur, which hit the Wall Street Journal bestseller list. Now how did launching my book grow my business by 60 %?

11:06
It didn’t. And the truth is, is I made literally zero dollars from the book. Every penny of the six figure advance I received was spent on marketing and a book launch coach. But the main reason why the book caused my business to grow so much as a whole is because I nearly killed myself marketing the book in the first half of 2023. I went on over 50 podcasts from the middle of February till May. And I remember some days where I was doing four podcast interviews per day. Then all these interviews were simultaneously released during the first week of May.

11:36
which caused a gigantic surge in traffic for my brand. All of sudden, I was getting random inquiries about my course. Meanwhile, my YouTube channel surged as well as my blog traffic, which contributed to a ton of new course sales. Meanwhile, on the content generation side, I hired a couple writers to help me increase my content production so I could attract more email side-ups and then guide them to my book. So overall, the book didn’t really contribute to my growth, but the process of marketing the book made all the difference. So looking back,

12:05
writing the Family First Entrepreneur was one of the most memorable experiences of my life. I literally found out that I hit the Wall Street Journal bestseller list just before the closing keynote of my conference over at the Seller Summit. So I was able to tell the entire crowd live on stage that I hit the list and it felt so good. The other major contributor to my income was that my advertising revenue went through the roof. Remember when I said that my YouTube traffic and blog traffic spiked? Well, at the peak,

12:32
I was making almost 30,000 a month from YouTube ads alone and my blog was generating almost $10,000 in completely passive ad revenue. Now, unfortunately, the book launch hype eventually died down, but my YouTube channel now is over 280,000 subs and continues to be a huge contributor to email signups and ad revenue. So what’s in store for 2024 for my web Twitter job? My goal is to scale my YouTube channel. Now it’s still only the third week in January, but I’ve hired a script writer to help with my YouTube videos.

13:02
In addition, I’ve also hired someone to help break these videos down into YouTube shorts. Now this is just a test and I’m currently weighing whether it’s worth it to hire a human versus just using AI. But the goal for 2024 is to be everywhere by producing more YouTube shorts, YouTube videos, Instagram reels and TikToks every day and multiple blog posts every single month. The goal is to continue to expand my personal brand. Hope you enjoy that episode. Now I’m really excited for 2024.

13:30
And if there’s one key takeaway from all this, it’s that everything that I’ve ever been successful doing has been hard. So just go out and do hard things. For more information about this episode, go to mywebcoderjob.com slash episode 514. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go over to sellersummit.com.

13:59
And if you are interested in starting your own eCommerce store, head on over to mywifequaterjob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

I Need Your Help

If you enjoyed listening to this podcast, then please support me with a review on Apple Podcasts. It's easy and takes 1 minute! Just click here to head to Apple Podcasts and leave an honest rating and review of the podcast. Every review helps!

Ready To Get Serious About Starting An Online Business?


If you are really considering starting your own online business, then you have to check out my free mini course on How To Create A Niche Online Store In 5 Easy Steps.

In this 6 day mini course, I reveal the steps that my wife and I took to earn 100 thousand dollars in the span of just a year. Best of all, it's absolutely free!

513: Meet The Man Who Makes Millions Teaching Millennials About Money With Bobby Hoyt

513: Meet The Man Who Makes Millions Teaching Millennials About Money With Bobby Hoyt

Today, I’m thrilled to have my good friend and mastermind buddy Bobby Hoyt on the show.

Bobby is the founder of Millennial Money Man, where he teaches millennials how to make and save more money. His blog has been featured in Lifehacker, Forbes, Market Watch, CNBC, US News, Business Insider and countless other publications.

A couple listeners have recently emailed me asking me whether blogging is still a viable business model. So instead of just saying yes, I invited Bobby to come on the pod because the man is killing it online.

What You’ll Learn

  • How to create content that makes money online
  • How to make and save more money as a milliennial
  • Is blogging still a viable business model

Other Resources And Books

Sponsors

SellersSummit.com – The Sellers Summit is the ecommerce conference that I’ve run for the past 8 years. It’s small and intimate and you’ll learn a ton! Click Here To Grab Your Ticket.

The Family First Entrepreneur – Purchase my Wall Street Journal Bestselling book and receive $690 in free bonuses! Click here to redeem the bonuses

Transcript

00:00
You’re listening to the My Wife Could Her Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Now I’ve been getting a number of questions about whether blogging is a viable business today. And instead of just talking about my own blog over at mywifecouldherjob.com and telling you how well it’s doing, I figured I would invite some of the other bloggers in my mastermind group to share their story. So today I have my friend Bobby Hoyt, who is the founder of Millennial Money Man.

00:29
and the man is killing it online. So is blogging still a viable business model? Well, you’ll find out in this episode. But before we begin, I want to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high level BS, is a curriculum based conference where you will leave with practical and actionable strategies

00:58
specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet. Now, I personally hate large events, so the Seller Summit is always small and intimate. Every year, we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now, if you’re an e-commerce entrepreneur making over 250k or $1 million per year,

01:28
We also offer an exclusive Master My experience with other top sellers. The Seller Summit is going to be held in Fort Lauderdale, Florida from May 14th to May 16th. And right now, this is the cheapest the tickets will ever be. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 50 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still access my free bonus workshop,

01:57
on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:18
Welcome to the My Wife Quater job podcast. Today I’m thrilled to have my good friend and mastermind buddy Bobby Hoyt on the show. Now, Bobby is the founder of Millennial Money Man, where he teaches millennials how to make and save more money. His blog has been featured in Lifehacker, Forbes, MarketWatch, CNBC, US News, Business Insider, countless other publications. Now, a couple of listeners have recently emailed me asking me whether blogging is still a viable business model.

02:47
So instead of just saying yes, I invited Bobby to come on the pod because the man is killing it online. And with that, welcome to show how you doing. Hey man, I’m good. good, man. That’s a, that is a tough question to start out with. Um, I think the answer is yes. Kind of, I don’t know. I’m not, I’m not super bullish on like just starting a blog and that being all that you have anymore. Like I don’t even think that that’s what really people do anymore. I think a blog is just part of your marketing strategy.

03:16
And I think, I mean, we still make really good money with it. I do have some concerns about AI. I’m sure we’ll talk about that. Like, yeah, I have some concerns about that. I’ve just got thoughts about like, maybe how people are consuming content. Like it’s really, it has shifted away from, from blogging quite a bit to video. So I don’t think it’s dead per se, but I don’t feel the same way I felt about it in 2015 when I started when it was like you were a blogger. Now it’s just kind of like part of our marketing strategy.

03:45
I agree. Yeah. Hey, so Bobby, it was, great seeing it. FinCon. I to say a couple of days ago. It was like last week. I don’t know. It feels like it feels like I’ve had, it’s funny. I was on vacation and then we went straight to FinCon and actually like we, brought the team, the Millennium Money Man team. Yeah. We brought all the employees out. Like we did like a planning thing too. So it was like a very hectic week. So I don’t remember how many days ago it was, you know, what’s funny though. And I was telling you this before we hit the record button is that even though we’re in the same mastermind,

04:14
I actually don’t even really know your story. Yeah, yeah, we are what motivated you to start millennial money, man. And I can never pronounce or spell it. I apologize. But yeah, how did you get started with it with the blog first, right? Yeah, so basically, for me, I was a high school band director. And that’s what I thought I was going to do the whole time I was in high school and college and everything. And I was just I didn’t really know what I wanted to do with my life. But I was good at music. And I liked band for whatever reason.

04:44
And so I went into music education, got my degree, had about $40,000 student loan debt. And then I got my first job and like maybe within the first three weeks, I realized like, hate this job. Like I was, I don’t know what it was. I mean, it just, felt trapped like instantly. And it’s probably a lot of entrepreneurs feel that way, but like, um, I just knew like, I can’t do this when I’m 50 years old, like I cannot be a teacher. And so, um,

05:12
really actually the first thing I was going to do started a swimming pool company. I had a friend, a family friend that owned a swimming pool company. And so in the summers for after my first and second year of teaching, I would actually go and like work on pool equipment and like out in the sun, you know, I live in Houston, so it’s like freaking hot here. But that’s, you know, I was trying to figure out like, is this a good business to, to maybe acquire someday or to start my own? And I didn’t, I kind of, there’s a lot of physical labor. was like a lot of manual labor.

05:40
Yeah. And I, but you can make really good money doing it. You could certainly become a millionaire doing that. And, uh, but I just had a conversation with my wife who at the time was my fiance. And I was just like, I think I want to do this. And she basically asked me like, not to like, please don’t do manual labor. Cause her parents did a lot of manual labor growing up. And she was like, it’s, it’s going to have like these really negative consequences on you and you get older, which is true. Like you have surgeries and stuff like that. Like it’s really, you know, it’s not good to do that to your body. So then I kind of went back to the drawing board and,

06:09
I started writing about at the same time I was paying off my student loans and actually ended up paying off my student loans, I think in 18 months, something like that. We did a lot of things like we rented a room from her parents and you know, was very, so yeah, it was really just like, I just decided, you know, I was gonna I paid off my student loans, we kept the expenses low. And really what happened was I just got really excited about money. For some reason, nobody had ever talked about money ever in my entire life, like my parents didn’t talk to me about money. No, I, know, but I had a

06:39
the same guy that on the swimming pool company, he was like, Hey, if you’re not going to start a pool business, like you at least need to like pay off your student loans, like you need to be really aggressive with that and then start saving. And so I started writing about it on medium, just like my story of like how I paid off debt. And then I started doing a little bit of a deep dive. And I was like, Oh, wait, you can actually make money just like writing stuff. Like I had no idea. I found budgets are sexy.com, which actually had Jay money on my podcast the other day. And Aaron, let’s see it again, by the way.

07:09
Yeah, he does. Yeah, he he bought it back. He required it from Motley Fool. And we had a long conversation about that. But yeah, so I just you know, I was like, Oh, these people are making money online. And so I, I created a website, I found the domain name, linear money, man. And I actually made three, I made $3. And then I quit my job. And I don’t think that that’s something I could, like, I was so young, and our expenses were so low. And like, I was so fed up. But I was just like,

07:37
I think I can do this. And so I just, I just went in, you know, and I was like, I’m my job. And from there, I had to like figure out how to actually make money. That’s what, that’s what was the worst. What I, when people say they want to start a blog, it’s like, takes so long to make money. How long did it take you? I don’t think I was making from the blog itself. It probably took me like well over a year and a half to make like what would be maybe

08:04
full time maybe, but I had to start, I started a digital marketing agency to basically like make things work while I was trying to grow the blog. And that’s where I started making money. And so I grew like a small, like local SEO agency. Uh, and then eventually the blog got featured on CNBC and that’s when things kind of started to take off a little bit. Um, and then you fast forward today and it’s like, we’ve, we’re going to have six full-time employees, I think in January, uh, we’re probably going to rebrand the site at some.

08:32
know, at some point, because millennial is hard to spell, hard to say. So yeah, we’re just now we’re just growing more of a like a media company than just a blog. I think it took me two years to make anything meaningful. And I think it took me three years to make six figures. I have all the numbers down for historical purposes. But yeah, you’re right. It does take a long time. Yeah, it’s just slow. And I think it’s it’s one of those things like, if you started a blog now, like

09:00
You know, the competition thing doesn’t really like there’s always competition in every business that you’re going to start. So like that part when people talk about like it’s over saturated or whatever, like doesn’t matter what you do. Like if I had started the pool company, I would have had like 10 competitors in the local area. right, that’s not the issue. But I think that with how Google is changing, and it’s like, I actually was running ads, like that’s, that’s how I grew my audience in the in like the very early days Facebook ads. But they were so cheap, I was spending like a penny, it was like a penny.

09:28
per click, you know, was like, you could get 1000s and 1000s of views for not very much money. you? Yeah, yeah, it’s way more expensive. And you can arbitrage it, like you could put ads on your your landing pages, or you could like have some affiliate offers and maybe not like make a ton of money, but at least break even and grow your audience. So that’s what I did initially. Now, I think it’s like everything so I think actually starting a YouTube channel would probably make more sense for somebody who just starting a blog.

09:56
And that’s our company really has been shifting. I just hired a new head of content that specializes in YouTube and has grown some pretty big channels. And so we’re kind of shifting as a company over to video. And then the blog part of it is going to be, you know, hopefully a secondary source of traffic for us over time. Can we talk about why that’s the case? Do you think it’s because of AI and you mentioned Google, what about Google has changed the way you feel? I think Google kind of sucks. Like, I don’t know, like

10:25
just try to use Google. Like, I don’t know. And it’s what I see all the time. It’s like, we have all these keywords that we rank number one for and are top three and that they drive great traffic. But then like, then you go and you see what Google’s doing and like they’re testing out their, their own features, you know, where it’s like, instead of you being number one else, and they’ve got their own tool that’s number one, and they’re just like, kind of aggregating stuff at the top, you know, and that’s not even the AI stuff. That’s just them. I don’t know. It’s like, it’s like, I just don’t trust that they’re going, I don’t think that they have like the publishers.

10:55
best interest in mind. Um, and I’ve always, what I don’t like with Google too is just, I don’t like the idea of like my business could take a really bad turn at any time based on something that I have no control over. like an algorithm change, or if they decide to implement Bard, um, their AI stuff, like if they decide to really heavily implement that and then all the organic search, like I just don’t like that. Like that freaks me out, especially when you have employees and stuff and you’re like trying to think of like, you know, people’s families and protecting the company and stuff like that. I just feel like,

11:25
I just feel like Google as a product isn’t as good as it used to be. if you look at a lot of results, they’re just not as good as they used to be. There’s a lot of trash content out there. Um, and I just, I’m not sure. I don’t think it’s going to just go away, but I’m just not sure that they’re gonna, I think paid is going to become even more important. I think it’s going to be like AI with paid and then some search results. I just don’t think it’s going to be that great. But YouTube on the other hand, isn’t, I don’t think AI impacts YouTube as much right now.

11:52
But I also think it’s just a better product. I think that people like video, it’s easier. We sell courses. And when you sell courses, think video is a much more powerful way to sell than just email copy or especially blog posts. Like it’s very hard to sell courses from just cold traffic that comes in from Google, even if it’s like high search intent. YouTube is different though, because it’s like the trust is there. They can see your face. They know that you’re a person, right? So that’s another reason why we’re kind of shifting to YouTube.

12:22
I mean, some would argue that YouTube has similar problems. I mean, it’s owned by Google and algorithm change has happened many times over the course of YouTube as well. And there’s a bunch of faceless YouTube video crap being pumped out there too. But you’re right. It’s less so than, in the written world. Yeah. think it’s just less bad. Like I think it maybe gets, I don’t know. I think with all the stuff, feel like it just, one of the things that’s interesting, and this was maybe every business, but like, I think that it, things change so much.

12:51
And I, I’ve been doing this for eight years now, eight, nine years. And it’s like, I’ve never been able to feel like we just have a strategy that’s in place and it just works all the time. It’s like everything it’s like, you’re like, everything’s always changing. Like you’re always having to kind of like figure out what the next move is. And, and I feel like, I dunno, I feel like that is if we can build out more video content and, I dunno, I think it’s just a little bit safer that, I agree with you.

13:20
I’m just curious, though. Does the blog generate you more leads or just video? The blog for sure. The blog by far. Like and that’s I mean, that’s where we will be really close to about 2 million in revenue this year. And that’s like almost all from the website. So it’s kind of one of those things. It’s like we make great money from it. But like, I still don’t trust it. And so that’s why we’re kind of diversifying. And we’re making a lot of diversification moves like into video for sure. But we’re also going to do things like a

13:49
we’re going to acquire a bookkeeping firm. That’s one of our goals. And that’s because we have a bookkeeping program that we sell and we feel like it’s a good, it’s good practice to actually own the thing that you’re, you know, that you’re teaching other people. Like we have a great instructor for that program. But if we also on like a boutique bookkeeping firm, then we can stay up to date on everything that’s happening in the industry and we can give it, make it a testing ground for our students. And

14:15
just feels like a good play. But also it’s it’s revenue that’s completely detached from Google or YouTube or anything online, really. I mean, it’s it’s a it’s a service based business, right? So we don’t want the biggest one in the world. But we want something that’s just a good diversification play for protecting salaries and all that kind of stuff. Plus, it’s sticky. Like once you have a bookkeeper, they tend to stick with you forever. So with the with the bookkeeping stuff, when I was talking to my accountant about it, and we were we were like, Okay, we’re to create this this program. It was like,

14:43
the LTV on these customers, like they just stay forever, you know, and it’s like, it is hard to find. went through several bookkeepers before I found a good one. And once you find a good one, it’s like, you don’t really want to mess with it. Like you just kind of let it go. They just do their thing and it’s a super valuable service. And I think it’s one that isn’t AI has already come to bookkeeping, which was a really interesting piece about that. Like, you know, quick books and all of them, like they, they use AI, but it’s a lot.

15:10
less likely that AI is going to completely replace bookkeeping. Right. Because I think you there’s so many different tax strategies, there’s so many different like, kind of nuances to tax and bookkeeping that I think would be difficult to replace having like human review, you know, so it just feels like a really good, you know, diversification diversification play for us. And, and I think it just really supports what we’re doing from a program standpoint, too. I forgot to ask you this in the beginning. How does millennial money man actually make money?

15:40
So we, we sell, we sell courses. So we have a proofreading course called proofreading launchpad. have a bookkeeping course called brilliant bookkeeper. We have a freelance writing course called big money writer. And we have two or three more courses. I’m not going to say the names of them yet, but we have two or three more coming out next year. And then we also have affiliate revenue, like our, by far our, the most of our revenue comes from affiliate revenue. And that’s just from, you know, sending leads to different companies, right? Like we’re, pretty big in the driving space. We’re,

16:09
doing, we’re starting to grow in the survey space too. So yeah, we’re just, you know, we sling leads out, you know, and then we, we don’t do a lot of sponsored stuff in terms of like sponsored content, because I don’t think that we have enough audience to like command, like really big, like enough to make it worth it, because most of our traffic is SEO. And like, a lot of times, like, that’s kind of hard to sell as a sponsored thing. But outside of that, we’re gonna have, we have a high ticket program that’s coming out next year as well. It’s an accounting program.

16:39
for for accounting professionals that want to scale to six figures and beyond. And we’ve got just a whole bunch of stuff. I got this whiteboard here with like the entire business plan, then there’s like a ton of crap on it. But it’s like, you know, we’re just we’re just trying to grow a lot of programs that can help people and try to make like a real impact. I know that sounds a little sappy, but like I just some there’s something like kind of soulless, I think sometimes about affiliate revenue, and affiliate marketing, where you’re sending people to just

17:08
you know, somebody else’s marketing funnel. And I think you can help people for sure. But it’s like, are you really like making a big difference in the world? And I don’t, I don’t know all the time. I don’t think so, depending on the product. But so that’s kind of part of the goal to you mentioned driving programs. Were we talking like Uber and Lyft? Yeah, yeah, just all the driving, all the driving programs. I mean, we’ve, it’s one of those things that I think a lot of people are interested in making money that way. It’s not the best way to make money in the world, like you’re not going to get rich doing it. But

17:37
it does help people in a pinch. And I think that it’s a lot of people’s, the feedback that we get from everybody that’s on our list and everything is like, they enjoy it. It might not be like, not like a second rich, but like they seem to enjoy it.

17:50
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18:19
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

18:31
You know, one thing, and I’ve been doing affiliate marketing for over a decade now too. One thing I don’t like about it, even though it’s, pretty easy is like I spent all this time ranking a post and search and then they changed their terms. Like, Oh, by the way, we stopped the lifetime payout or by the way, we’re canceling our affiliate program. That always makes me nervous. hate that. And that’s, that’s why we diversified the courses so much. Like that’s why we’re leaning so heavily into it. just, it’s like, I don’t want my revenue to.

19:00
to go away because there’s somebody had a meeting in some place at some time decided to cut their marketing budget. And then I have no, I, and like, that’s, that is frustrating about affiliate marketing too. Like it doesn’t happen in every program, but when, when they get cut, it’s like instant. It’s like, you spend all this time building out these funnels and all this time trying to work with the affiliate to like optimize things and, you have your team working on it you’re working on it. And then you just get an email that’s like, Hey, sorry, this is a, they decided the program’s over. So please remove all your links tomorrow.

19:28
or whatever, know, exactly. And so like, for me, it was like, I could either really diversify from an affiliate standpoint. Or I could diversify to something that we sell in house, like we control our own product, we sell our products. And we just use Google for the traffic, you know, and I think that feels like a safer, better business model to me, or just at least feels like one that freaks me out less, you know, I can sleep at night. you named off a whole bunch of courses.

19:57
I have two and and it’s actually a lot of work just maintaining to what is your philosophy is your philosophy you like find an instructor that just handles that course and they get a cut of it. Like, yeah. Yeah, so we typically we have a couple of different ways that we have done this. The instructor of our proofreading course, her name is Ariel Gardner. She’s actually a full time employee. So we give our employees the opportunity to create programs if they have something they like have expertise in.

20:27
And we do structure it like a royalty agreement with them. And it is also like if they’re an employee, like they get the benefit of like we have profit sharing and we have, you know, equity pathways for some of our employees. So like, they create the program, they kind of manage it as part of becomes part of their job responsibility to like, you know, make sure the content is up to date and be kind of the coach for the community. And then in turn, like, you know, we share revenue back with them and they kind of have the ability to make more money. So

20:54
The other setup that we do is actually like for our brilliant bookkeeper course, we brought in, we interviewed a bunch of different bookkeepers and like we knew we were creating this program, but we wanted to have somebody that actually owned a bookkeeping firm as the instructor. so we brought her name is Kristin Metter, but she came in, she basically like, she interviewed really well. She was awesome. She’s great on camera. She had really, really good ideas for the program. So she became the instructor and then we do have like a royalty agreement with her.

21:22
we’re working we’re working on trying to get her full time as well. So we’ll see what happens with that. But but yeah, it’s basically just finding experts and people that align with the team. And I didn’t want to have something where I was the instructor of every program that we do. Just it’s just not, you know, I can’t do that. I’m not an expert in that many things. But yeah, it’s actually worked really, really well like that. I was it was very experimental thing that we were doing. But now, it’s just worked so well. It’s like, okay, we’re just going to continue to do this model.

21:52
Cool. No, I like that. I like that. It’s the only way to really make it manageable. Yeah. Yeah. So you got the courses, you got affiliate revenue, and I’d imagine you get people to sign up for the classes through email, right? Yeah. Yeah. Primarily. We’re actually rolling out new funnels right now. But primarily, like we have people coming in from search. We also are running paid as well. So Google and Facebook. And we’re it’s just we do like evergreen webinars.

22:21
every evergreen webinar funnels. And so people sign up for time as typically pre recorded, although we’ve done some live webinars as well. I think you do live webinars. I do live. Yeah, can we talk about the automated ones? Yeah. How do they perform compared to the live ones? I don’t think that they’re gonna. So we don’t. We don’t do it at the same scale that you do. I think you’re going to get a much higher conversion rate on a live than you would on the evergreen. But our kind of ideology is like,

22:50
we’ll take a lower conversion rate across the funnel with that if it makes it to where we don’t have to like do the live, like do it live all the time. But we’re, you know, we’re not even really that interested in this is gonna sound a little crazy. But we’re not even interested on making money on the front end with the programs, we have coaching communities on the back end. So that’s where it’s like, if if it costs us, you know, four or $500, if we’re running paid, if it costs us like four or 500 to make a sale for four or 500, we’re totally good with that. Like we love breaking because then you can scale them up.

23:20
Um, and I just think like it’s, don’t think it’s realistic these days to sell low ticket products and expect that they’re going to be very profitable on the front end with the, with how ad costs are, um, and how much, how much you have to do in terms of ads. Like people don’t just buy stuff. Like everybody’s wise to webinars now. Like that’s like we’ve seen webinars, especially the evergreen stuff. We’ve seen that conversion rate pretty steadily drop over the last five years. When I first started selling courses in 2018.

23:48
it was so easy to sell courses. It was like the easiest thing ever. But you know, the consumers, get they get kind of wise and things they know they sign up for a webinar and they’re going to get pitched. And so what we’ve done is we’re taking a much more transparent approach to all of that. We’re redoing all of our evergreen webinar, webinar funnels to basically say like at the beginning of the webinar, like you’re going to get pitched like we have a product we sell things we’re going to try to sell you something. But we’re also going to try to give you as much value as we possibly can up front. And then if you don’t buy cool, but you know, hopefully you learn something and then we

24:17
you know, do a lot of follow up as well. But yeah, so I think it’s it’s not the most efficient funnel. But it’s, I feel like it’s more scalable for us as we move forward. And it just like you talked about, like manpower and like, what do want my employees doing? Like, I don’t want them doing lives all the time. Just because I think that if we can automate it, actually, I mean, if you’re breaking even from the ad costs, and that’s just like free email subs, essentially, right? Yeah, it’s free leads, it’s free customers. And like we’ve seen

24:47
pretty often, like, in our back end data, like, customers buy more than one product from you. Like if you build if you get them into a program, and they buy a really great product, they might go like, you know, maybe proofreading is not right for me, but they might go and buy the bookkeeping course instead, right? Like we see that kind of cross pollination. And so and then eventually, like we want our customers to go and buy our high ticket programs. And we want them to go and go to our paid mastermind events. And then eventually, we’re gonna have a conference that we do. So you know, we’re we’re fine, like,

25:16
getting customers for free is a is a good thing. You know, and that’s, that’s kind of our thought. is the price point on the auto webinar? So we do either depends on the program, we either do 497 or 597 right now. Okay, although we are going to experiment with like, probably more payment plans or lower prices, like I don’t, we’re not officially in a recession. But like, I think that we are definitely in one. And I think that it’s

25:43
you talk to people, you know, our web developer, he’s, he’s actually going to be an employee with us, he’s coming on, but he, the company that he’s leaving, he was talking about, like, their travel budgets for the year, like, there’s, starting to tell employees, like, hey, we’re, you know, we’re not going to travel as much next year, like the economy is tightening. when you start to see the corporations do those things, it’s like, okay, we’re gonna have some headwinds, I think going into 2024. It’s just a matter of like, how bad, you know, and so I think that it’s going to be hard for people to stomach a six $700

26:13
program, you know, and I just, I don’t know that though. So we’ll kind of figure it out. But there’s also a lot of different payment options now. And, you know, whether that’s actually a good thing for what you sell, because it sounds like a lot of what you sell helps people make money in a specific discipline, right? Yeah, yeah. So why is that? What do you feel like that’s not good? No, it’s good. It’s better, right? Okay, okay. Okay. So I don’t know if being there’ll be as price sensitive.

26:41
It depends. mean, it definitely depends on the program. We see the people that my in my other business laptop empires. I didn’t even talk about that. I own another company called laptop empires. We teach people how to run Facebook ads for local businesses. That was the first course that I ever, ever did. It’s like the buyers for different disciplines are much different. Like a proofreading buyer is probably somebody that doesn’t want to spend as much money. Whereas like the bookkeeping course, we feel like we command higher prices for it. You get a lot of professionals that come in that people

27:08
people that already have a bookkeeping firm or accountants that want to add bookkeeping as a service. And then with the Facebook stuff, like we get a lot of like existing agency owners that want to learn how to do local ads instead of ecom ads, like they want to add that to their skill set. like, it just kind of depends on what the discipline is. But you know, some things we feel like that the bookkeeping one probably has the highest upside potential for us. Because, know, if you have, especially if we have a high ticket program for accountant, accounting and tax professionals, like they can afford

27:38
programs. Like that’s, that’s not something that, you know, three or $400 would be like nothing to a lot of those people. So it’s just one of those things like, it’s all different, but we, we don’t really judge it based on like, I don’t know, which, which course makes the most money. It’s like, we just want to put things out there that we believe in and, you know, help people really, I the book kicking course is kind of like real estate, right? It never goes out of style. Whereas Facebook ads, who know, I mean, there’s a big disruption.

28:06
not too long. Shockingly though, Facebook ads have been relatively stable. It’s been an interesting thing with Facebook. So we put that course out in 2018, the Facebook site also course, and it crushed. did $136,000 in our first weekend as a company. And we got to seven figures in 14 months. And that it was like the easiest course to sell ever because Facebook was popular. Like there was a time where people didn’t hate Facebook. That was like 2017, 2018. And then

28:35
Facebook went through all of their just, you know, everybody started figuring out the privacy stuff and like they just were under a lot of scrutiny and congregate, know, the congressional sessions with Zuckerberg and he looked like a robot and a weirdo. Um, and so what we found is like, there was a dip in popularity of that program, but then they switched to meta and that is dumb as it sounds like them just changing their name to meta has made a huge difference in terms of like trust and like, you don’t hear about them in the news anymore. Like that was a, that was a very like smart play.

29:05
to just completely rebrand the company and it worked. Interesting. Yeah. So let’s switch gears again and talk about that first question that I asked you and AI and how it’s affecting the way you do things. One, are you using AI for your content creation? And two, how do think it’s going to affect just the entire landscape of what you do?

29:32
I don’t know, to be honest with you. mean, in terms of are we using it? We use it very sparingly. We don’t have like all of our content team spitting out AI. Actually, we went to, I don’t know if you went to the session of FinCon, but one of them, were just saying like, they’re generating, they said the strategy right now is like generate tons and tons and tons of content with AI and then just like upload it all to your website at once. you know, Google’s come out and said that they don’t want AI, but then they’ve kind of relaxed the thoughts on it. Our thing is like,

30:02
What we’ve been doing has worked for a long time where we have a very like personal sounding, like when you read our articles, they’re not like boilerplate stuff. Like it sounds like it’s conversational tone basically. And that’s worked extremely well for us. So we’re kind of like, why change something when it’s still working? And sure we could put out more articles, but I’ve also seen this thing that happens with blogs where they start, they go, okay, we rank really well for this thing and we’re making money in this vertical. So let’s just expand.

30:28
like crazy. Like, let’s just put every vertical and like talk, you know, like we’ll talk about everything and make all this money and then their site tanks because they’ve ultimately like Google is like, what the hell is this site? Like we don’t even know what this is anymore. And so we’ve intentionally kept it very narrowly focused in a couple of like we’re a make money site and make money brand. yeah, we’ve, we’ve intentionally kept it really focused and, we’re trying to stay very disciplined with that. And that’s why we’re expanding to like YouTube and other platforms as well. And we’re just going to kind of keep what we have with the blog going. And

30:57
know, it’s in terms of like AI and what I think it’s gonna do. I don’t think it’s gonna like, completely get rid of, I don’t even think it’s gonna get rid of like writers necessarily. I think that it’s more of like, it’s more that people are just gonna have it there. Paul Pant give a really good speech on this at FinCon where it’s like the the people become the curators. And it’s like you’re the tastemaker, I think she said. And that was actually a really great point because it was just like

31:22
you can get AI to do some really incredible things. But at end of the day, like you still have to decide like, is this going up on the website or is this not? And I think that that’s where a lot of like the services that provide like content and things like that, like it’s going to be more of like consulting almost, or like, you know, trying to just make sure that it’s like conversational and not too, you know, not too dry. So I do think that AI is going to have a big impact. also think, I think we talked about this one point.

31:49
I think it’s gonna happen a lot slower than people kind of think. Like AI came out, chat GBT, like everybody was like, oh my gosh, it’s the craziest thing ever. But like, I don’t know, most people still use Google. I was talking to my, my sisters, kids. I always like to talk to like my nieces and nephews to get like a feel for like what’s going on on the ground right now, you know? And they’re like, yeah, nobody uses chat GBT. they’re like, everybody uses Google. Like I think that people are creatures of habit. And I think the chat GBT stuff is really cool, but I don’t see like mass adoption right now. I think it’s gonna be.

32:19
take several years for the stuff to like really, really get ingrained. But I could be an idiot too and it might just happen really quickly. Like I have no idea. I just remember when I was in college a long, long time ago, Yahoo was the leader and everyone was using Yahoo and within one year it flipped to Google. That’s all I remember. Yeah. Yeah. No, you, think you mentioned that to me last time and that could for sure happen, right? Like that’s a super possibility, but like, I just don’t think, I just don’t, I think that Google

32:47
I don’t know. think that this stuff is like AI has been being worked on for so long. I didn’t realize that. Like I didn’t realize that AI has been this like decades long project. And I, and I think that, um, Google’s going to figure out a way to compete well, you know, like I don’t think that Bard is from what I’ve used, seen and used. It’s like, it’s not as good as what chat GPT can do, but like, I still think that people just are creatures of habit and they’re going to just keep going to Google until chat GPT is so much better that they just can’t, you know, avoid it. But I don’t know. We’ll see.

33:16
Did you play around with Google? can’t remember the acronym now, but I think it’s GSE. Basically, it’s this switch that you turn on in Chrome. And the top search result, which takes up a third of the page, is the AI-generated answer. Yeah, I that. I did see that. And I had a conversation with Robert Farrington about this. He was like, well, Google still needs the content from the sites to create those. It’s not creating its own content. So Google would either have to hire just their own in-house

33:45
publication team that AI is scraping or, you know, they’re still going to have to use publishers in some ways. So he believes that like AI is going to have like no impact on like, and they’re just basically it’s just kind of a gimmicky trick thing. I don’t think that I believe that, but he had a good point of like, they’re, replacing with AI, but then they’re also still giving credit to the, blogs that created the content. And ultimately I think the biggest thing is that like ads aren’t going to go.

34:13
Like that, like if you can get a profitable ad strategy, like that’s not going away ever. Like that’s, that’s how they make their money. Right. So like, that’s what we’re really focused on too, is just like profitable or break even funnels with ads. Cause I think that that’s, that’s the real surefire bet in the future. So in terms of the actual content on your blog, are you focusing that on just like bookkeeping content, proofreading content, that sort of thing, or just across the whole moneymaking landscape? Yeah. Yeah. So, um,

34:39
Freelancing, freelancing, side hustles, investing, passive income. We’re really just staying in those lanes though. I think we are for sure we’re using the site to generate leads for our courses, right? Like it fits really well. And we think that we have a little bit of an advantage there. Like I don’t wanna go into all the reasons why, but there’s an advantage I think for us to go after those verticals. And so it’s worked really well. What I will say is that I don’t think that

35:09
the quality, I’m gonna say quality, it’s just hard to sell courses off of cold. It is just stuff that comes in from Google, even if it’s like super, super high intent stuff. It’s just difficult. People if they’re gonna buy something like it takes, I think video accelerates the process a lot faster. But like people are really like, so you know, I think like I was saying video accelerates the process. But if people are going to spend four or 500 bucks on something like they they do a lot of searching around like they don’t just look at a blog post and go by.

35:38
they look at a blog post and they look at reviews for the product and they go onto YouTube and they look at reviews and they like they’re just trying they really do a lot of research before they do like a buying decision. And so it’s like it just helps. It’s part of it. I think for us is like we just want to get as many people in our funnels as possible and then just like nurture them. But you know it’s it’s just like I just don’t think that that traffic that comes in is like the be all end all for courses is great for like

36:07
surveys and stuff like that, you know, like easy conversions, but for things that actually take a real funnel, like it’s tough to get those people to convert. So you’re going all in on video. Can you just give us a preview of your overall YouTube strategy? Are you going to put out the same content? Are you going to have special content just for YouTube? Are you going to take blog posts and turn them into videos and that sort of thing? We’re doing a little bit like we’re basically, we’re going to be doing some, you know, some of stuff that works on the blog. We’ll do that on.

36:36
on YouTube as well. we’ve actually, you know, our channel is very small, but we’ve already seen like success with that. Some, some of our videos are starting to really do well. But really, I think we’re going to take more of an approach. And I think, and you can tell me this, but I think that it’s YouTube is more rewarding, like just really good entertaining content versus like search content. Correct. And so we’re going to take that approach. And I think it makes sense for us to just take that content and then we’ll do, you know, I’m sure we’ll use it for social and all that stuff, even though I’m not even really concerned about social at all. I don’t, I don’t particularly care about TikTok or any of other ones.

37:06
at this moment. But I we’re gonna make what we think is like really good entertaining content. And, you know, some of it will be search based, but probably not very much of it. entertaining kind of implies like a funny script and just writing those things from scratch, right? I don’t want man, I don’t know everything’s, you know, it’s there’s so much more that goes into a YouTube video than I realized.

37:32
you know, it’s like, you know, within the first few seconds, like you have to have a great hook. And it’s got to like, you really have to grab people in that first period of time. And then the new head of content that I hired, Frankie, like he’s, as he was detailing, like the YouTube strategy and like how you make a good video pop off. But he was working on a channel that he got to 1.3 million subs, I think. Wow, crazy. And it’s just the reality is like, it takes a lot of editing. It takes every video takes a lot of thought.

38:01
and really like intentional. I don’t know, like the, it’s not just reading a script. It’s like, has to really be intentional with the music and the timeline of what you do within the first X amount of seconds and all of that. So it’s something that’s going to be a beast of a project, I think for us, but like, I think it’s still, I think net it’s still worth it to go down that road. I mean, it’ll create this huge moat for you also. hope so. Yeah, I hope so.

38:31
You know what’s funny is I’m actually having Rob Berger on almost an hour after talking to you and you know, Rob, he started this YouTube channel, disobeying all the laws of YouTube. And he’s managed to create this amazing channel. So what is he out right now? What is he at Subway? that 130,000? I think he started like a year ago. I want to say I love dude. Yeah. And his stuff is so good too. But I think that’s what it is. Like, you know, when I was going to say like, what’s entertaining and it’s like,

39:00
I think just being yourself a lot of the time, like being your weird self and you know, like putting putting content out there that you believe in, like sometimes it doesn’t work at all. But like in his case, I mean, he just puts out really good content. And he’s just like, I would have never thought of him as a YouTuber, to be honest with you. Like no offense to him, but I just didn’t think like, he didn’t seem like somebody that was going to go and crush it on YouTube. But then I saw his content, I was like, dang, like he’s, he’s got it. Like he’s got he’s charismatic. He’s got, he’s got like, think the kids would say he’s got the sauce, you know, he does, he does have that.

39:30
You know, he does and he does zero editing, except lopping off the front lopping off the back to I remember, were you there? We were at a mastermind together. And I was like, dude, just just put like a little bit on your thumbnail. Just like what the topic is because before you’re making thumbnails. Yeah, yeah, I was there with him. Yeah. Yeah. Is he doing thumbnails now? He is but not you know, he literally just takes a frame his video and just puts like four words or something like that. Yeah, that’s another thing about YouTube. That’s like

40:00
the thumbnail game, like just the titles and descriptions and stuff like there’s so much that goes into that. And there is with the blog too, but I do feel like there’s you feel like you got to be like a production company, like we’re, you know, we’re about to set up this new thing in our, my office where it’s like, I’ve got a multi-camera set up and all these lights and all this nonsense, you know, but it’s like, that’s what you have to do to have good video. think I think I’m somewhere in between you and Rob. So like you’re looking at my setup right now.

40:27
My bookshelf over here on my right, got a teleprompter and a camera, a foot pedal, and then the lights are all set up. And it’s worked well for me so far. I think there’s just different grades depending on what your delivery style is like. So everyone just needs to figure that out. Yeah. And it’s going to be, man, it’s going to be a lot of experimentation for us. Like that’s, mean, we’ve, we’ve had some kind of early wins with some of our early videos. But I just think it’s going to, it’s going to be.

40:55
slog. But that’s fine, though. It’s like kind of, none of this stuff is easy to like, go back to your first question, like, should like, should you still start a blog? It’s like, you can, but it’s not gonna be easy. All this stuff is really difficult, you know. And that’s why I do think like, you know, the course that you sell or courses that you sell, like courses I sell, like, I do think that that’s why it is important to, like courses, make all of it way faster for people. So like, if you’re going to start a blog, I highly suggest you go and take some

41:23
blog course. I don’t know who has like the top blogging course right now. But like just do that. And it’s like, you won’t have all the, you know, experimentation that like I didn’t have a course or anything. I just it took me forever to figure out what I was doing, you know. Actually, when we started actually when I started I started 2009. It was the wild wild west. Like no one knew what they were doing really. And then Darren Rouse came out and everyone started following him. 2009 man that’s it. You know, what’s funny about the internet is it’s like dog years. Like it’s just

41:53
It’s like I, I feel like I’ve been in business for like 40 years or something, but it’s really been like nothing has been eight years. It’s like nothing in business. And it’s just like, but it, and I was talking to my head of content about this the other day. It’s just, it’s because the landscape changes so fast and you’re always like, you can’t just build this like business that just sits there and like just generates money and super easy. Like it’s always like, you, there’s a, you know, people are trying to take you out, you know, like there’s a lot of competition that’s trying to, trying to take you down and, um,

42:21
the platforms change and the the ad costs change and the algorithms change like everything’s changed at all time and you’re just trying to like navigate through that and hopefully be profitable as you go. Well let me ask you this uh for all the listeners out there who want to do what you do what like what is your best piece of advice so you mentioned first you probably started a YouTube channel and what are some expectations that you would set in terms of time frame and what is probably the easiest way to get some quick wins in terms of monetization early on?

42:51
I don’t think that you should go for quick wins in monetization. And I don’t know if this, is probably a pretty common answer. I used to say like, man, just quit your job and just go all in on the stuff. like, which there is something to that. And I’ll get back to that in a second. I think that the reality is like you, should expect to go a year without making like significant money. Like, and I think you should expect to go six months without making a dime. And I think when it comes to, especially content creation, like

43:20
you always see people try to hack things, right? Like you see all these people try to like hack TikTok and hack the algorithms and all this stuff, but like they never last. Like those people flame out very quickly. What you need to do is get really, really good at your craft. And I, and I heard somebody talking about YouTube the other day and they were, I think it was actually Mr. Beast was talking about it. He was like, you just improve one thing every time, every time you post a video and just get better at it. like maybe a better thumbnail, you know, next time, or maybe a better, I don’t know, better editing or whatever.

43:49
But you have to do that for a very long period of time to where you become an expert in what you’re doing. I think you don’t have be an expert to make money, but like you have to really commit to the craft and you have to really commit to like understanding that it’s going to be really difficult. It’s going to, you know, you’re going to feel like you’re failing constantly. And that never goes away. Cause even at our revenue level, I mean, and every day I’m like, Oh my God, we got to do all these things. We got to get things moving. Like if, you know, it’s like that never seems to stop.

44:18
You know, and you just have to, you just have to really put the work in. and so like, um, and I also think like, if you don’t monetize too quickly, you build a lot of trust with your audience. Um, one of the reasons that I was, well, I say I, my business partner, I for my business partner and I for laptop empires, one of the reasons we were able to, to, you know, reach a six figure launch so quickly and like do seven figures of revenue so quickly was just that I just provided a lot of value for a very long time and I didn’t sell anything to my audience.

44:47
So like when it came time, like only, did that 136 K with a 13,000 person email list. Like it was not a big list. And yeah, but it was just like, just provided a lot of value for a long time. And I, like, I was making money with my marketing stuff. So like, I could just be a value provider with the blog and I did that forever and ever and ever and ever. And then just when it came time to sell something I sold hard, you know, and then it worked because I had built up so much trust. I had built up so much like, uh,

45:15
I guess, goodwill with my audience. And like you hear influencers talk about that all the time, but it’s a very real thing. So I would say like, find some other way to make money, like do some kind of service based thing, become a freelancer in some discipline or whatever, start something that makes money. And then if you’re, content creation and like building a brand is what you want to do longterm, like just do a lot of content creation and don’t sell too much in the beginning. And then once, once you have a good offer, then you can sell and then you sell hard. Okay.

45:44
What were your views on social media? Just curious. You said you didn’t care much for it. Is there a reason why or? Man, I just think that it’s a lot, especially Tik Tok. And like, I’ve had some Tik Tok stuff go sort of viral before, not a ton, because then I very quickly was like, I don’t want to do this anymore. But I just think it’s a hamster wheel. You know, it’s a lot different than what I see, at least as I understand it and how I’ve kind of

46:10
thought about it for a while. It’s like YouTube, you can create a piece of content and it’ll just generate views for a long time if it’s good. Google, I mean, like you can put a blog post up there and it was like generates revenue forever until an algorithm change or something. But like the TikTok stuff is so quick and they don’t make it easy to get off platform. Right. So it’s like, it’s, just, you get this like very surface level interaction with people, which isn’t a bad thing, but it’s, don’t think it’s like a good conversion mechanism. I do think it’s a good, like if you have a massive audience, you can sell sponsorships or sponsor deals.

46:40
Um, but that’s a tough way to make a living. In my opinion, I don’t like that. Doesn’t feel like a business that I want where I have to just like always be creating content. Um, and I’m trying to work with these brands and then do they have marketing budget? Do they not have budget? Um, and I hate going into those negotiations with brands anyway, like a corporation. And it’s like, you’re talking to some like middleman person that doesn’t even know what’s, don’t know. I that it’s, that’s been surprising to me, like as throughout my career and as I’ve learned more.

47:10
When you talk to some of these people at these companies that are managing these marketing budgets, a lot of them have no idea what they’re doing at all. Like they don’t understand marketing. Like they don’t understand the value of an audience. They’re just kind of like writing checks to people. So it’s just a, don’t know. just not, will, social media will be the last thing that we layer on to everything we do. Cause it’s top level awareness, you know, at the top of the marketing funnel is great. And if you can create a really good strategy to pull those people down into your funnel and eventually convert. But I think that

47:40
you needed you needed work on things that are closer to conversions, which would be like a high intent YouTube video or blog post or something like that, where it’s like the people that are that are watching your stuff are wanting to buy something that makes more sense to me. Cool. Actually, we have the same philosophies. Sweet. So Bobby, hey, thanks a lot. If people want to know about the programs that you sell or your website, YouTube channel, where can they find you? So social handles basically across everything mill money man, ml.

48:09
Money Man. We took out the millennial part because it’s too hard to spell. And then website, millennialmoneyman.com. You can also find me and my other business Laptop Empires. And please go and subscribe to our baby YouTube channel because we need as many subscribers as we can possibly get. And I think that’s it. Yeah. I’ll link those below. Is there a particular goal you’re going for this year with your YouTube channel? No, we were talking about that as a team. Like do we set like a subscriber goal?

48:38
I’m more like, let’s get a good clean process for creating content, like multiple pieces of content per week. And then we can read, like we’ll go back to the subscriber goal after we figure that out. Cause I think that’s more important than the number. It’s like, let’s get the process dialed in and make good content. Yeah. Power to you, man. Multiple YouTube videos a week is, it’s going to be tough. We’re going to do it though. So yeah. Well, thanks a lot for coming on the show, Bobby. Appreciate it, Yeah. Thanks for having me on.

49:08
Hope you enjoy that episode and I encourage you to go check out Bobby’s site over at millennialmoneyman.com. For more information about this episode, go to mywifecoderjob.com slash episode 513. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small and intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go to sellersummit.com. And if you are interested in starting your own e-commerce store,

49:37
Head on over to MyWifeCoderJob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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512: My Predictions For Ecommerce In 2024 | The Good, The Bad And The Ugly

511: My Predictions For Ecommerce In 2024 And How You Should Prioritize Your Time

In this episode, I’m going to give you my predictions for ecommerce and small business entrepreneurship in 2024.

I’ll dive into what’s next, discuss everything from the shifting landscape of eCommerce jobs to artificial intelligence and what’s going on with China.

What You’ll Learn

  • My predictions for 2024
  • Ho artificial intelligence will affect business
  • The role of China and ecommerce

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Transcript

00:00
You’re listening to the My Wife Could Her Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. That’s the beginning of the year. And unlike other years in the past, I think we are in store for a hell of a lot of changes in 2024. So in this episode, I’m going to give you all of my small business predictions for this year. But before we begin, I want to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com.

00:28
The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet.

00:57
Now I personally hate large events, so the Seller Summit is always small and intimate. Every year, we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over $250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s gonna be held in Fort Lauderdale, Florida from May 14th to May 16th, and right now, this is the cheapest the tickets will ever be.

01:27
Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 38 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still access my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book. So go to mywifequitterjob.com slash book.

01:56
Fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:07
Welcome to the My Wife, Gooder Job podcast. In this episode, I’m gonna give you my predictions for e-commerce and small business entrepreneurship in 2024. With 2023 behind us, I’ll dive into what’s next, discuss everything from the shifting landscape of e-commerce jobs to artificial intelligence. Now, my first prediction for 2024 is that small ticket drop shipping is gonna die. Now, when I say that drop shipping is gonna die, I’m not saying that people aren’t gonna continue to try doing it.

02:35
but anyone who tries dropshipping $10 to $20 products from places like AliExpress or any of the other China-based dropshipping apps will simply not make enough money to make it worth the headache. Now here’s what most people don’t realize about dropshipping from China. One, the quality control is terrible, and a lot of times, your customers are going to be shipped poorly packaged junk that is broken on delivery. Lots of your orders are also going to get lost in the mail or take months to arrive. And as a dropshipping store,

03:04
you are the one responsible for customer service. Even though you aren’t carrying any inventory and your startup costs are super low, you will still be wasting a ton of your time dealing with customer complaints and refunding people’s money. Now these low profit margins simply aren’t worth your time unless you were just using dropshipping as an exploratory mission to figure out what sells. Now the only way to succeed in e-commerce in the long run is to sell a private label product. A product with a strong brand

03:34
that allows you to charge premium pricing. Otherwise, sites like Tmoo are just going to eat your lunch. Now, if you’ve never heard of Tmoo before, Tmoo is an online marketplace that ships cheap junk directly from Chinese factories at much lower prices than you can ever charge with a drop ship product. As a drop shipper, you’re just a middleman and buying direct from the factory will always be cheaper unless consumers have a reason to buy from you. So for example,

04:02
A t-shirt drop shipped from a US store will cost a customer between 20 to 25 bucks. But the exact same shirt from Tmoo only costs $7 and includes shipping. So basically no one’s going to pay 3X the cost for the exact same item. Which brings me to my next prediction. Tmoo is going to continue to grow like crazy and basically destroy unbranded commerce. At the time of this recording, Tmoo’s 2023 numbers aren’t out yet, but I can tell you

04:32
that in just one short year from November 2022 to April of 2023, they were able to attract about one third the traffic of Amazon and what’s the top downloaded app in the app store. So mark my words, that number is going to grow exponentially. Tmoo is throwing millions of dollars at influencers and gaining traction fast. In fact, Tmoo is already hurting Amazon big time. According to Amazon reps, the apparel side of Amazon is down 30 % year over year.

05:02
and sites like Timmu and Shien are eating their lunch. Now to further fuel the fire, Americans are facing a record amount of credit card debt. And according to LendingTree.com, Americans total credit card balance is 1.079 trillion as of Q3 of 2023, which is easily the highest since 1999. Now according to CNBC, more than 62 % of Americans are living paycheck to paycheck, and more than half the Americans that earn over 100K

05:30
are also living paycheck to paycheck. So as a result, American households had to make tough choices because their finances are stretched super thin by high prices for goods and services. So mark my words, because of these two factors, people are going to flock to Tmoo in 2024. And again, if you are selling unbranded or commodity products in 2024 or drop shipping other people’s products, you’re just going to get squeezed out. All right, let’s switch gears now and talk about selling an Amazon.

05:59
Amazon literally just announced their biggest price hike ever. And to make things worse, their pricing is super complicated to figure out. Now, probably publish a separate episode on whether it’s worth it to sell on Amazon FBA in 2024. But here is a synopsis. Starting in March of twenty twenty four, Amazon will now charge you a placement fee for every item shipped between twenty one cents to sixty eight cents for standard size products and two dollars and sixteen cents to six bucks for an oversized item.

06:29
This is a brand new fee on top of what they were already charging you. Not only that, but they are now charging you an extra fee if you do not have at least 28 days of inventory in stock. Now, remember, Amazon already charges you hefty fees if you have too much inventory in stock. But now you’re to get charged for having too little in stock as well, which I find ridiculous. Now, in order to use Amazon FBA and not incur extra fees, you have to walk this tightrope.

06:57
where you have to have just the right amount of inventory in their warehouse. If you have too much or too little, you’re going to get screwed. And trust me, I’ve been managing my own warehouse over at bumblebelyndons.com for 17 years now, and inventory forecasting is very challenging. So my prediction for Amazon in 2024 is that these new fee increases will weed out a lot of the casual Amazon sellers. To make money on Amazon in 2024 requires that you know what you are doing.

07:25
from both a marketing and a supply chain standpoint. Now I’ve been saying this since 2016. If you want to succeed in e-commerce, you must have your own website in addition to Amazon and work on building your own traffic and your own brand. Now the problem with Amazon is that it’s like a drug. Amazon has a ton of eyeballs and it’s fairly straightforward to generate sales on the platform if you know what you are doing. But figuring out exactly how much profit you are making at the end of the day,

07:53
And keeping track of all the Amazon fees is actually the hard part. When you log into the Amazon dashboard, Amazon purposely only shows you your revenue numbers front and center. But in order to find your fees, you have to dig through piles of reports that are hard to piece together. There’s refund fees, FBA fees, return fees, PPC fees. You have to really know what’s going on. So bottom line, these new fee increases for 2024 are huge and lots of existing Amazon sellers will go under. By the way,

08:23
If you’re a current Amazon seller, do yourself a favor and download the Sellerboard app, which will tell you your net profit. If you haven’t done this already, it is an eye-opener. Now, selling on Amazon gets more more expensive. My next prediction is that content will become crucial in making any type of business successful. The days of throwing up random products on Amazon and making good money are over. And as I alluded to earlier, you must build a brand. And the only way to build a brand is by creating content.

08:53
You must put yourself out there. And this is why I heavily invest in my blog, my podcast, my YouTube channel, social media and TikTok. Now the simplest way to build a brand is to just show your face as the owner on video. All you have to do is film short form videos of the day to day of your business. All you have to do is be transparent and the customers will come. Because when it comes to running any business, people tend to buy from who they like.

09:19
Now the clearest example of this is with my online store course over at profitableonlinestore.com. There are hundreds, if not thousands of people teaching e-commerce online, but people buy my class because they resonate with my story or my teaching style. With strong content and a brand, the price point matters much less, and once you have an audience, you can literally sell anything. And this is exactly how you beat Tmoo.

09:45
So basically if you want to succeed in 2024 with physical products, digital products, or basically any product, you must create content, whether it be with a blog, podcast, YouTube, or social media. All right, let’s switch gears again. My next prediction for 2024 has to do with hiring and outsourcing. I belong to several mastermind groups and regularly keep in touch with a number of online business owners. And almost all of them are now hiring their best employees

10:14
exclusively from outside the United States. Every single job from content writing, social media managers, virtual assistants, developers, everything can be easily outsourced to cheaper labor elsewhere. And even though outsourcing has been happening for quite some time now, the trend that I’m seeing in the past year is that more more skilled labor is being outsourced. Now, we’re not talking about just virtual assistants anymore, but we’re also talking about content creators, managers, engineering directors, developers, you name it.

10:44
And the equalizer here, especially in the content space, is AI. A couple years ago, I used to pay a premium for writers in the United States because native English speakers generally produce better content. But thanks to ChatGPT, I’ve shifted nearly all of my writing staff to overseas at a fraction of the price. And here’s what I found. The problem with most overseas writers in the past was that some of their sentences were grammatically incorrect or they just sounded awkward when read by a native English speaker. But now,

11:14
All you have to do is have them feed their content into ChatGPT and just have AI clean up the content. AI is a game changer in that it turns anyone into a fairly competent content creator. And the same is true for Amazon sellers. Chinese owned listings on Amazon are now nearly indistinguishable from US listings because of ChatGPT, which has drastically leveled the playing field. In the past, it was obvious to spot the Chinese sellers because their copy was really bad.

11:42
But now Chinese sellers can create high converting listings without having a strong grasp of the English language. Not only that, but as the factory, they also have the advantage of lower pricing. But what’s most disturbing about all the mass outsourcing is that I fear for the US economy. US labor is just too expensive and it doesn’t make much sense to pay more for lower level US employees when there’s someone in the Philippines or Bangladesh willing to do the exact same work for 3X less.

12:10
At some point, this dam is gonna break. I reckon number of Americans are already living paycheck to paycheck and it’s only gonna get worse. Will the government step in? I know that the minimum wage here in California just keeps going up and ironically, I think it’s only making things worse because why would I pay someone in the US $20 an hour when I can find someone just as good or better for just five bucks an hour? Which brings me to my final prediction. AI is gonna replace a lot of white collar jobs.

12:39
AI is moving so fast that it’s hard for me to predict exactly how it will affect society as a whole. But what I do know is that almost all my engineering buddies here in the Bay Area are working at AI startups. And not just software startups, but hardware as well. Right now, AI computations are mostly performed in the cloud, but powerful AI models will soon run on phones and laptops this year. Now, you’ve probably heard terms like the singularity or AGI being thrown around the AI space.

13:08
And I think we’re already pretty close. I used to pride myself on being a pretty decent developer, but you know what? My last coding project was pretty much 80 % coded by ChatGBT. And I had ChatGBT ask me questions on exactly what I wanted, and we kind of iterated back and forth. And you probably just noticed that I referred to ChatGBT as a person just now. My buddies in Silicon Valley are already scaling back hiring for junior engineers because ChatGBT is making existing engineers

13:37
so much more productive. As soon as AI can start developing and thinking on its own, the sky’s the limit. Well, we really need low-skilled labor anymore. Why hire a bunch of low-level engineers when you can simply hire a couple of super engineers and augment their work with AI? Which brings me to my final, final prediction. 2024 will see the most amount of spam and misinformation than any other year combined. Right now, Google has a content problem.

14:06
Webmasters are churning out a record amount of AI-generated content, and Google can’t tell the difference. In 2023 alone, Google released four core updates back-to-back to combat AI content, but I think it’s fighting a losing battle. Going forward, I believe that sites with the best on-site metrics will rank the highest in SEO, if SEO is even a thing towards the end of 2024. Meanwhile, on YouTube, tools like in-video.ai and Rizl

14:33
or allowing people to churn out millions of faceless AI-generated videos in a short period of time. Now, a lot of you guys listening to this are probably on YouTube. Take a look at your homepage right now on YouTube and let me know how much AI content you see. Right now, I’d say that my recommendations are 10 % 20 % AI-generated video. This is only going to get worse. Even on Amazon, people are using AI to publish hoards and hoards of e-books. And on that note,

15:00
I wouldn’t be surprised if AI influencers become more prevalent in 2024. According to ArsTechnica.com, fictional influencer Etana Lopez is followed by over 200,000 people and charges $1,000 a post to promote products on social media. Now, will humans even be able to tell the difference between AI influencers and human influencers in the future? Who knows? And unlike other years, 2024 is going to see a sea of change in small business entrepreneurship.

15:29
and you’ll either have to adapt or you’re just simply going to go out of business. Hope you enjoyed this episode and that it helps you prioritize your 2024. For more information about this episode, go to mywipecoderjob.com slash episode 512. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go to sellersummit.com.

15:58
And if you are interested in starting your own eCommerce store, head on over to MyWifeQuarterJob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

I Need Your Help

If you enjoyed listening to this podcast, then please support me with a review on Apple Podcasts. It's easy and takes 1 minute! Just click here to head to Apple Podcasts and leave an honest rating and review of the podcast. Every review helps!

Ready To Get Serious About Starting An Online Business?


If you are really considering starting your own online business, then you have to check out my free mini course on How To Create A Niche Online Store In 5 Easy Steps.

In this 6 day mini course, I reveal the steps that my wife and I took to earn 100 thousand dollars in the span of just a year. Best of all, it's absolutely free!

511: Why EVERYONE Is Ditching PayPal – Here’s The Ugly Truth!

Why EVERYONE Is Ditching PayPal -  Here's The Ugly Truth!

In this episode, I uncover the truth about PayPal, all the fees, the hidden charges, and how you can save money with your credit card processing with your online store.

In the event that your PayPal account is currently limited or banned, I will teach you how to get your money back and how to prevent your account from getting limited.

What You’ll Learn

  • How much Paypal really costs
  • Why Paypal limits accounts
  • How to pay less for credit card processing

Sponsors

SellersSummit.com – The Sellers Summit is the ecommerce conference that I’ve run for the past 8 years. It’s small and intimate and you’ll learn a ton! Click Here To Grab Your Ticket.

The Family First Entrepreneur – Purchase my Wall Street Journal Bestselling book and receive $690 in free bonuses! Click here to redeem the bonuses

Transcript

00:00
You’re listening to the My Wife, Quit or Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Now it’s the end of the year, so I thought that I’d fill you in on a year-end payment processing audit that I performed for my online store. And it turns out that I’ve been leaving a ton of money on the table that I was not aware of. In this episode, we’ll tell you exactly what I discovered. But before we begin,

00:25
I want to let you know that tickets for the 2024 Seller Summit are now on sale over at SellersSummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods,

00:54
and not some high level guys who are overseeing their companies at 50,000 feet. Now I personally hate large events, so the Seller Summit is always small and intimate. Every year we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit’s going to be held in Fort Lauderdale, Florida from May 14th May 16th

01:24
And right now, this is the cheapest the tickets will ever be. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 38 % off right now. My book will teach you how to achieve financial freedom by starting a business that doesn’t require you to work yourself to death. And plus, you can still access my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book.

01:54
So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:07
Welcome to the My Wife Could Her Job podcast. Now for the past few months, I’ve been doing a complete audit of every single expense for my e-commerce store. And during this audit, I discovered something unexpected about PayPal that I was not aware of, and I’m willing to bet money that you didn’t know about either. So in this episode, I’m going to uncover the truth about PayPal, all the fees, the hidden charges, and how you can save money with your credit card processing with your online store. And in the event that your PayPal account is currently limited or banned,

02:35
I’ll also teach you how to get your money back and how to prevent your account from getting limited as well. So I’m a little embarrassed to say this, but I’ve been getting ripped off with payment processing for at least the past five years, maybe even longer than that. And analyzing my PayPal bill carefully is what sparked this episode. And all this took me by surprise. For over a decade, I had a negotiated rate with PayPal where I was charged 2.2 % plus 30 cents per transaction.

03:04
which is actually a pretty decent credit card processing rate. But I got careless over the years and I stopped looking at my PayPal statements because I just assumed that they had stayed the same. In fact, I don’t even remember PayPal ever sending me any correspondence that they had increased their rates and I had assumed that my lower rates were grandfathered in. But I couldn’t have been more wrong. Here are some important facts about PayPal’s fees that you should know right off the bat if you sell anything online.

03:32
and if you accept PayPal in any sort of volume. And I’m pretty sure that these numbers are going to shock you. So first off, for credit cards, the rate is 2.9 % plus 30 cents per transaction for credit cards. And most of you guys probably all knew this already, because that’s like the standard credit card rate in general. But here’s probably what you didn’t know. You are charged a 3.49 % rate for all PayPal checkout transactions that do not involve credit cards.

04:02
So basically you’re paying 0.5 % more if someone pays by PayPal on your site. And in theory, paying by PayPal costs PayPal no money at all, and it literally should be the cheapest way to accept payments online, and one time it was free. But not anymore. Accepting PayPal payments directly is easily the most expensive way to accept payments online now. Now to illustrate the magnitude of this rate, let’s throw some actual numbers into the mix. Let’s say you process $1 million per year,

04:31
and 50 % of your transactions are from PayPal. You’d be paying 500K times 2.9 % plus 500K times 3.49%, which equals $31,950 bucks per year on payment processing. And at that sales volume, you can easily get a 2.2 % or lower with practically any other payment processor. And with a 2.2 % rate, you would only be paying $22,000. So basically, you’d save 10K per year

05:00
by going with a different payment processor. Now what makes things even worse is that PayPal stopped refunding fees for returns in 2019. So let’s say you sell really expensive products and you make a sale for $1,000. Well, the PayPal fees on that sale are 2.9 % plus 30 cents or $29.30. Now if the customer returns that product at any time, you still have to eat that $29.30 no matter what.

05:28
Now you’ve done any searches on Google for PayPal, you probably noticed that PayPal has a history of limiting accounts or freezing funds. And PayPal is what I would call a low-risk payment processor, and they have a strict set of guidelines on who they serve. For example, if you sell any products with chemicals, CBD, controlled substances, you’re going to get banned, eventually. Now most of the complaints that I’ve come across online indicate that PayPal will sometimes hold your funds for up to six months,

05:57
and six months can be a long time if you need access to your money. And once they freeze your funds, it doesn’t make sense to continue accepting money through PayPal if you can’t access it. In other words, once your account is frozen, you are pretty much screwed. Now, I personally never had my PayPal account frozen before, so I’m not speaking from experience here, but I do have a few fellow blogging friends selling digital products who have had their accounts locked for no reason at all, so I asked them for their side of the story.

06:25
Now in both cases with my blogging friends, they had their accounts frozen after a big product launch. And for one of them, PayPal limited their account by only allowing them to process $10,000 per day. Now the other blogger had over 40K in funds frozen for 180 days. Now it seems as though PayPal doesn’t like seeing huge spikes in money being received into your account. Now since I was worried about potentially getting my funds limited, I actually called my account manager at PayPal and here’s what I was told.

06:54
First off, he reassured me that it’s extremely rare that they ever place holds on user accounts and that the reasons for limiting an account vary greatly from user to user and largely depends on the situation. But under certain circumstances, PayPal has certain triggers in place as a safeguard against fraud. And here’s some of the reasons why some of these safeguards might be triggered. You received an abnormally large amount of money in your account that is way above your average. Someone has filed a complaint to PayPal about your business.

07:22
A series of chargebacks have been placed against your account. Your website is questionable content, you are in violation of PayPal’s use policy, for example if you sell drugs or anything illegal, you’re probably going to get banned. Your account information is not up to date, or your account is not fully verified. Someone has logged into your PayPal account from a strange location, or your credit score is low, or something with your background history makes you a higher risk customer, or finally if they’ve detected fraudulent activity on your account in the past.

07:52
Now if you are worried about PayPal ever limiting or banning your account, here are some precautions that you can take. If you are expecting to receive a large sum of money, then you should call PayPal ahead of time so they expect to see the extra funds. In other words, if you are planning a large product launch, make sure you let them know ahead of time. Sometimes when you sign up, there is a survey that you have to take. Make sure you check off higher numbers in terms of how much money you anticipate making every month.

08:20
Contact PayPal to make sure that your account is not limited in any way in terms of how much money you can accept per day. Because sometimes limits are placed depending on various factors relating to your credit history or background checks. Make sure your name or the name of your business is on your PayPal account and that it exactly matches your bank account and credit cards. Use the exact same address and phone numbers that match your bank account and credit cards and always use trackable methods of shipping if you ship physical goods in case a dispute is filed against you.

08:50
And finally, just make sure that your FINE or Social Security number exactly matches the name of your business on your account. Now, if you don’t want to take the risk of your account getting frozen and you want the lowest credit card processing rates possible, well, what can you do? Well, in general, you should never ever accept credit card payments with PayPal ever because it will by far be the most expensive way to accept payments online. If you process any sort of volume with your e-commerce business, you should get a traditional payment gateway

09:19
and ask for interchange plus pricing. Interchange plus pricing is when you pay a fixed percentage over the interchange rate, which is the wholesale rate that all credit card companies have to pay in order to process payments. Each time a business processes a credit card, it pays a fee to the bank that issued the customer’s card, and this is called the interchange fee. And it’s calculated by adding a percentage of the transaction volume to a flat transaction fee. For example, 1.51 %

09:48
plus a 10 % transaction fee is the current interchange fee for a swiped Visa consumer credit card. Now if a business accepts this type of card as payment for a $100 transaction, it will owe the bank that issued the card an interchange fee of $1.61. Now interchange rates are determined on a per transaction basis using the details of the transaction. And things like credit card type, credit or debit, card category, whether it’s a reward, commercial or

10:17
other sort of credit card, and processing method, whether it’s swiped or keyed, dictates the interchange rate associated with the transaction, and ultimately how much money the business will have to pay the issuing bank. Now these issuing banks don’t set the interchange rates independently, and instead they collectively agree upon the rates through VZen MasterCard. And this is why all issuing banks charge the same interchange rates and processors have no influence on them.

10:45
Interchange rates are a non-negotiable component of credit card processing that remains exactly the same regardless of which processor a business uses. As I mentioned earlier, the current interchange rates for Visa at the time of this episode is about 1.51 % for a regular Visa card and 2.3 % plus 10 cents for a Visa Reward Signature card. I know I’ve said a lot, but why is this important? It’s because when you negotiate interchange plus pricing,

11:14
you’ll get quoted a fixed percentage above interchange and you know that you’re not going to get ripped off because the interchange rate is fixed. For example, if you get quoted an interchange plus 0.1%, that means you are paying a rate of 0.1 % above the wholesale rate. Now the exact rate that you pay depends on the type of credit card, so you should probably look over your current bill right now and make a rough calculation of how much you can save by moving to Interchange Plus. Also, your ability to negotiate

11:43
depends on how much money you process every year, but I would say if you do more than 10k a month, you should always negotiate and move away from PayPal no matter what. After all, there are many credit card providers that offer extremely low rates that are way better than PayPal. Now what makes the decision difficult is if you accept a lot of PayPal payments on your online store. And over the years, if you watch any of my tutorials, I’ve actually recommended that all sellers accept PayPal on their site for two main reasons. One,

12:13
PayPal allows you to import the customer’s information when they log in. And this reduces the amount of typing for customers, which is especially important for mobile transactions. People having to enter their addresses on their smartphones is one of the number one conversion killers in e-commerce. And two, PayPal is ubiquitous and certain shoppers always pay by PayPal no matter what and won’t buy if they have to dig up their credit cards from their wallet. Now, in the event that you do process a lot of PayPal payments on your site,

12:42
You might want to consider using Braintree, which is actually a company owned by PayPal. They’ll provide you with a competitive rate and reduce your PayPal processing rate as well. Now, if most of your customers do not pay by PayPal, then I would explore and negotiate with all other processors like Authorized.net and Elevon. In fact, I recommend going to a site called Cardfellow.com, which will help you find the cheapest payment processor. Now more of the story here.

13:09
is that if you haven’t checked out how much you are paying for payment processing in a while, then do it right now because otherwise you’re just flushing money down the drain. Now just for fun, I checked the effective credit card processing rate for my credit card processor, which is Braintree over the holidays, and my effective credit card processing rate was only 1.7%. This is 1.7 % compared to the 2.99 % that I was paying just a couple months ago. So make sure you audit your credit card processing right away.

13:40
Hope you enjoyed that episode and that it’s a kick in the pants to check how much you are paying for credit card processing. more information about this episode, go to mywifequitterjob.com slash episode 511. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go to sellersummit.com. And if you are interested in starting your own e-commerce store,

14:09
Head on over to MyWifeQuarterJob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

I Need Your Help

If you enjoyed listening to this podcast, then please support me with a review on Apple Podcasts. It's easy and takes 1 minute! Just click here to head to Apple Podcasts and leave an honest rating and review of the podcast. Every review helps!

Ready To Get Serious About Starting An Online Business?


If you are really considering starting your own online business, then you have to check out my free mini course on How To Create A Niche Online Store In 5 Easy Steps.

In this 6 day mini course, I reveal the steps that my wife and I took to earn 100 thousand dollars in the span of just a year. Best of all, it's absolutely free!

510: Starting An Online Store? Follow These 5 Rules To Find The Right Platform

510: Starting An Online Store? Follow These 5 Rules To Find The Right Platform

In this episode, I answer the top question that I always get asked.  Which ecommerce platform should you use for your online store?

Unfortunately, the answer isn’t black and white. So in this episode, I’ll help you figure it all out.

What You’ll Learn

  • Your ecommerce platform options
  • How to choose the right problem
  • Five essential rules when starting an online store

Other Resources And Books

Sponsors

SellersSummit.com – The Sellers Summit is the ecommerce conference that I’ve run for the past 8 years. It’s small and intimate and you’ll learn a ton! Click Here To Grab Your Ticket.

The Family First Entrepreneur – Purchase my Wall Street Journal Bestselling book and receive $690 in free bonuses! Click here to redeem the bonuses

Transcript

00:00
You’re listening to the My Wife, Quarter, Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. today I’m doing a solo episode to answer once and for all, probably the top question that I get asked, which e-commerce platform should I use for my online store? And the answer isn’t black and white. So in this episode, I’m going to ask you a series of questions to help you figure it all out. But before we begin, I wanted to let you know that tickets for the 2024 Seller Summit,

00:28
are now on sale over at SellersSummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, mine is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods,

00:55
and not some high level guys who are overseeing their companies at 50,000 feet. Now I personally hate large events, so the Seller Summit is always small and intimate. Every year we cut out ticket sales at around 200 people, so tickets sell out fast and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit is going to be held in Fort Lauderdale, Florida from May 14th May 16th

01:25
And right now, this is the cheapest the tickets will ever be. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 38 % off. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still grab my free bonus workshop on how to sell on print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book.

01:54
So go over to mywifequitterjob.com slash book, fill out the form and you’ll get the bonuses right away. Now onto the show.

02:07
Welcome to the MyWifeCoderJob podcast. Now, if you’re an entrepreneur thinking about starting your own online store or e-commerce business, one of the most crucial decisions you’ll have to make is choosing the right e-commerce platform. And it’s a decision that can significantly impact the success of your business. But with so many options out there, it can be incredibly overwhelming to choose the right one. But I’ve got your back because today I’m going to share with you the five essential rules that you need to consider when choosing the right e-commerce platform that matches your personality and your budget.

02:37
And these rules are tried and tested and have helped me and many of the students in my class to build successful online stores. So grab a notepad and let’s dive right in. As I mentioned earlier, the number one question I get asked nearly every day is which shopping cart to go with. And I just want to start this episode by sharing my own personal story on why this decision matters and why it’s important that you listen to the five rules that I’m about to teach you. I started my online store back in 2007 before Shopify existed, before Big Commerce, before Shift for Shop.

03:07
before WooCommerce and even before Amazon. As a result, I went with one of the only solutions that was available back in the day called OS Commerce. Now there were other options, but I chose OS Commerce because it was the best open-source shopping cart back in the day and best of all, it was free to use. OS Commerce ran great for me for a very long time, costing me only $7 a month and made me millions of dollars until one day, the main developers behind the project decided to stop developing for it.

03:36
And all of a sudden, I was left with a platform that was dead in the water with no more improvements ever again. But by then, I had invested so much time and wrote so much custom code for my online store that I had to choose whether to migrate my store to a cart like Shopify or BigCommerce or stick with my obsolete cart and maintain it myself. Now, ultimately, I made the tough decision to maintain my online store myself because the pain of migrating was just too great.

04:02
and it would be impossible to move over all the functionality that I had custom coded over the years. So guess what I had to do the other month? I literally spent 16 hours upgrading my online store to the latest and greatest software versions by myself. Now the one saving grace is that I only had to do this once every five years, and I’ve saved a ton of money over the years because my cart is 100 % free. But my point is, is that most of you listening to this episode probably do not have the technical chops to maintain the code for your website,

04:31
in case a company decides to go belly up. So for all of you listening, choosing the right e-commerce platform is extremely important because it is a major pain in the butt to switch. And with that, let’s start with rule number one. You should only use a shopping cart that is maintained by a well-known and well-supported company with a huge war chest of cash. In other words, if you’re thinking about using some unknown podunk e-commerce platform from some startup company, do not do it. Every now and then, a subscriber will email me

05:00
whether they should consider using some random free shopping cart that I’ve never heard of. And when I visit the website or company, it’s basically run by a two-person team running it as a side business. Do not do this. If you go with a well-known company, preferably a public company, then you can rest assured that your platform is going to be pretty safe. Even if the public company were to go bankrupt, someone would probably buy them and continue to support your store, giving you time to migrate to a different option. Now, the only exception to this rule

05:29
is if you go with the popular open source e-commerce platform with tons of developer support. For example, Linux is open source and it’s maintained by thousands of developers all over the world. If you obey this rule, it already narrows down your pool of choices to Shopify, BigCommerce, Shift4Shop, Square, Wix, Equid, Squarespace, WooCommerce, and Magento. Now, it’s still a large list, but at least you know the company will be around next year. Rule number two is that the shopping cart must have excellent third-party developer support.

05:58
Now I’m going to make the assumption here that most of you listening are not tech savvy and do not have the knowledge or the drive to create your own plugins or design your own website themes. Now you want to have an e-commerce platform that stands the test of time and evolves as the e-commerce landscape changes, that means that you’ll likely have to add new features to your online store at some point in your business’s lifetime. For example, in the not too distant future, it’ll probably be the norm to have an AI assistant help customers shop online.

06:27
And right now, your online store platform probably does not have this feature, so you’ll likely need to buy a plugin to implement it. But here’s the thing, developers only develop for the most popular platforms. If you look at the overall market share of shopping carts in the US, you’ll see that Shopify is number one, followed by WooCommerce, Wix, Squarespace, and Equid. But we all know that many of these shops don’t make any money at all, so let’s focus on the top online stores. If we look at the top one million websites in the world by web traffic,

06:57
it paints a completely different picture. The top websites in the world are on WooCommerce and Shopify, with Magento and BigCommerce on the radar screen as well. Now because Shopify and WooCommerce are by far the most popular shopping carts in the world, they command the most developer support. And as a result, any new e-commerce functionality will be created for these platforms first. So once again, if you want to future-proof your business, you’ll want to go with a well-supported shopping cart.

07:24
And this pretty much eliminates a lot of the bigger players who don’t have a large market share in the e-commerce space. People always ask me about Wix, Square, Squarespace, GoDaddy, Big Cartel. And my answer is that no developers are making any new software for these platforms. So even if they are backed by large companies, there really is no support except for the company itself. The most well-supported cards are Shopify, WooCommerce, BigCommerce, and Magento. Rule number three is that the e-commerce platform should be easy to maintain.

07:54
Now reason I have this rule in place is because most of you listening probably just want your online store software to just work and not have to worry about your website crashing or having to upgrade anything by yourself. Now if you want to follow this rule, you should probably rule out WooCommerce. Even though WooCommerce is 100 % free, you still have to have a server to run your website. And WooCommerce is based on open source software, which means that you own the source code for your website and you have full control over it. However, you still have to maintain the server that it runs on.

08:24
And this basically means that you have to upgrade all your own plugins and software, and you have to lock down your server in case anyone ever tries to hack you. Now, fortunately, WooCommerce and WordPress have a fairly robust push button upgrade mechanism, but bad things do happen from time to time. For example, a couple of weeks ago, I upgraded my WordPress blog for Bumblebee linens to the latest and greatest version, and a bunch of my plugins broke, and I had to manually debug what was wrong. Now, the primary benefit of going with a popular cart like WooCommerce

08:53
is that you can easily find help online on the forums, Reddit, Stack Overflow, et cetera. But ultimately, it is up to you to find your own solutions and fix the problems yourself. The other benefit of owning the source code is that you can easily create custom functionality for your website that goes way beyond what any plugin can do. For example, I sell personalized products in my shop. If I wanted to create a feature that allows customers to see a mock-up of the finished product before personalization, there’s no really any plugin that does that.

09:22
You’d have to write it yourself and WooCommerce allows you that flexibility. Anyway, if you have no desire to maintain your own software or server, that pretty much limits your choices at this point to BigCommerce or Shopify. Rule number four is that your e-commerce platform has to be reasonably priced and not cost you a large percentage of your revenue. Now, so far, I haven’t really said anything negative about Shopify, but one of the biggest negatives of Shopify is the price. Now, you might be thinking to yourself, $30 a month doesn’t sound that bad.

09:52
but that price is deceptive. Shopify was designed to have minimal functionality out of the box and they force you to pay for plugins to add features to your shopping cart. The average Shopify store uses seven plugins that charge recurring revenue. The typical Shopify user in my Create a Profitable Online Store course spends around $200 a month on Shopify. Meanwhile, other solutions like BigCommerce, Shift4Shop, and WooCommerce are way cheaper.

10:18
Bigcommerce has most of the functionality that you need out of the box so you don’t get nickel and dimed on apps. Shift for Shop is on this list because the shopping cart is as powerful as Bigcommerce and Shopify, and it’s 100 % free if you process at least $500 in orders every month. And WooCommerce is 100 % free to use, and WordPress has a library of thousands of free plugins to use for it. So if price is one of your primary concerns, then go with WooCommerce, Shift for Shop, or Bigcommerce because they will be cheaper.

10:47
And then finally we have rule number five, which is to choose an e-commerce platform with a good blogging platform that is optimized for search. Now this last rule is only important if ranking and search is an important criteria, and unfortunately, Shopify does not offer a very good blogging platform. Not only is Shopify’s blogging platform limited, but they have a suboptimal URL structure that is less conducive to ranking and search. Now of the choices that I’ve presented so far,

11:14
WooCommerce easily has the best blogging platform because it’s based on WordPress. And BigCommerce offers a cool plugin that integrates with WordPress so you can seamlessly run your blog on WordPress and your store on BigCommerce under the exact same subdomain. So basically, if blogging is important to you, then WooCommerce or BigCommerce are better solutions than Shopify. Now this point, I’ve probably fried your brain with a number of options, so let’s put everything together in a concise manner. If you have the budget,

11:42
and you don’t really care about costs, then Shopify is probably going to be your best option. Even though Shopify will nickel and dime you with apps and payment processing, it’s the best choice not necessarily because the platform itself is better, but because it is the best third-party developer ecosystem. Go with e-commerce if you want an overall solid shopping cart and great out-of-the-box functionality without getting nickel and dime with apps. If you want a strict budget, then go with WooCommerce or Shift for Shop.

12:10
WooCommerce offers you the most flexibility out of all the shopping carts listed because you have control over the source code. But you have to be tech savvy to maintain it. And finally, Shift4Shop is a great all-around shopping cart that is free when you make over $500 a month, which is a really low bar. So overall, I hope you enjoyed this episode and it should help you figure out which platform is best for you. And for more information about this episode and links to all the choices that I talked about on this episode, go to mywifequitteredop.com slash episode 510.

12:40
And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you ever want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go to sellersummit.com. And if you are interested in starting your own e-commerce store, head on over to mywifequitterjob.com and sign up for my free six-day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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509: Temu And Shein Decimated His Business. Now What? With Jerry Kozak

509: Temu And Shein Decimated His Business.  Now What? With Jerry Kozak

Today, I’m thrilled to have Jerry Kozak on the show. Jerry is the founder of Ann Arbor Tees, a world class full service print and embroidery company in Ann Arbor, Michigan that does over eight figures per year in sales.

But thanks to sites like Temu and Shein, his business has been cut in half this past year. In this episode, we talk about the effects of companies like Temu and Shein and what you can do about it.

What You’ll Learn

  • How Temu is able to command such low pricing
  • How fast fashion is affecting the apparel industry
  • The effects of companies like Temu and Shein on small businesses
  • Jerry’s strategy for growth in the coming years

Other Resources And Books

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Transcript

00:00
You’re listening to My Wife Could Her Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. today I have my buddy Jerry Kozak on the show and we have a very interesting topic to talk about today. Jerry runs an eight figure e-commerce company called Ann Arbortese, but his business has been decimated recently by Chinese fast fashion companies and discount stores like Tmoo and Shien. So in this episode, we’re going to talk about the effects of companies like Tmoo and Shien

00:29
with respect to small businesses, why they have an unfair advantage right now, and what you can do about it. But before we begin, I wanted to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical

00:56
and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet. Now, I personally hate large events, so the Seller Summit is always small and intimate. Every year, we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now, if you are an e-commerce entrepreneur making over 250k,

01:25
or $1 million per year, we also offer an exclusive mastermind experience with other top sellers. The Seller Summit is going to be held in Fort Lauderdale, Florida from May 14th to May 16th, and right now, this is the cheapest the tickets will ever be. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s available on Amazon at 38 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death.

01:54
Plus you can still access my free bonus workshop on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:18
Welcome to the My Wife Quitter Job podcast. Today I’m thrilled to have Jerry Kozak on the show. Now, Jerry is the founder of Ann Arbor Tees, a world-class full-service print and embroidery company in Ann Arbor, Michigan, that does over eight figures a year in sales. And as you all know, selling t-shirts and personalized apparel is an extremely competitive business. But Jerry has done great over the years with his print on demand operation through excellent customer service and by taking on large clients.

02:45
like high schools, universities, and international renowned artists. But thanks to sites like Tmoo and Shien, he feels as though the market is turning. So in this episode, we’re going to talk about how cheap Chinese marketplaces and fast fashion are affecting the apparel industry in the United States and Jerry’s strategy for growth in the coming years. And with that, welcome to the show, Jerry. How are you doing today, I’m great, Steve. Thank you so much for your interest. So Jerry, I know that we don’t know each other that well, but

03:15
I watched your first YouTube video the other day. You guys are hilarious. Oh, thank you. Yeah, we probably should have done a few more. think it’s from like 2014 something like that. Yeah, it a while back. But I mean, you guys definitely have the the talent there. But then I was saddened to see that you guys didn’t keep up the channel. So I know I do regret that. And yeah, yeah, I have regrets. But thank you. Always nice to meet a fan. So we

03:42
Before we get into the Chinese companies and fast fashion, I am curious how you got into the printing business in the first place and how you scaled it to as large it is today. Like in that video, I took a look at your factory. You guys got lots of expensive equipment in there. Yeah, we had very humble beginnings in that I just started drawing on t-shirts with a marker in like middle school. Because my mom, I remember when

04:11
You came back from a summer one year and all of a sudden, you know, like the brand of shirts you had or whatever mattered. And it was like fifth grade. I asked my mom if I could have a an Abercrombie shirt and she said no. And so I just made one with a marker and went out. It’s a lot cheaper to be funny than cool. And so, then I just kept making those. My car got broken into my senior year of high school and they caught the guy and he had to like

04:41
you know, pay for my window and my my everything he broke and rather than repairing most of that, I did repair the window, but the dashboard and everything. bought a little t-shirt press and brought that with me to University of Michigan as a freshman in my dorm room. We started making shirts there. My buddy Ricky, who’s my, uh, he’s the co-owner. He could do websites, which was kind of a unique skill at the time. Something like 2004. And, uh, we were most of me like bootleg.

05:09
Chuck Norris shirts and stuff like that. And we didn’t understand intellectual property at the time. But yeah, it just sort of grew. And we graduated into the recession in 08 and just figured what the heck, let’s let’s try this instead. And I had landscaped for a bunch of professors and kind of wealthy people around town. And we raised 15 grand at like 18 % interest or something crazy from them and bought

05:38
little digital printer, which was a new tech at the time. My landlord didn’t speak a lot of English, but enough where we were able to communicate that like, I needed to shove this commercial printer into my apartment to pay rent. And he was like, fine, fine. And I think my neighbors thought I was a drug dealer, because like, we would sell stuff online, but it’d be for pickup. And so these cars would pull up at all hours to get the packages. And every year that we got a little 900 square foot end unit in a

06:08
the industrial district in Ann Arbor and put bunk beds up in the back there. So we went from illegally printing in a residence to illegally living in a workshop. But it was fun. mean, we were fresh out of college. Did you buy like a DDG printer or? Yeah, it was like those were brand new. So like that trade show that we got, that was just the Wild West. were like,

06:35
Everyone had the same Epson like carousels and it was called garage engineering and all this stuff. So yeah, it didn’t even have white ink. The white ink ones were so unreliable at the time. But you get in early with like iterative technology like that and you build a business model and then as the tech gets better, you can run with it quicker. Yeah, we just kept adding stuff. We added a manual screen printing press. We could do white ink. Then we added an automatic press. Then we added embroidery and

07:05
Now we have four or five giant, you know, automatic presses that are, you know, length of car. And yeah. So, yeah, it grew over the years and it wasn’t all Amazon and Ecom became the biggest part of it. But early on, we were doing a lot. What we still do live like.

07:28
merchandise for artists. And at one point, we were the biggest printer for NATO in Afghanistan before the drawdown. They went through a lot of t-shirts more than you’d think. You’d get like a phone call. They’d be like, because Canada Airfield had like 50,000 international troops. And for the most part, a lot of times they were bored. So you’d get a call from like a colonel and you’d be like, I need 3000 shirts for a 5k on next Friday. You’re like, I can print them.

07:58
over the weekend, but how long does it take to get to Afghanistan? You’re like, let me take care of that. Okay, you got it, sir. So, uh, how are you getting these deals? I’m curious early on. mean, it’s, really saturated. Selling t-shirts is tough. Oh, it’s awful. Uh, don’t do it. Anyone. Uh, that one, well, it’s just a lot of like wheeling and dealing. So like early on, for example, that particular account was because

08:28
we had a random like ROTC, we’re in Ann Arbor still. So University of Michigan is, you know, the big institution here. And we had like a random ROTC senior come in to get PT like physical fitness uniforms for their club, or not their club, but for the ROTC program. And we just got talking, I had buddies and ROTC around the state and they all kind of knew each other a little bit from like, you know, their

08:57
joint training and yeah, just sort of, early on it was just, you’re making friends with all your clients cause there’s two of you in the shop and they come in and it’s fun, it’s personal, you’re helping with art, what’s it for, you get talking and that guy, he ended up getting deployed to Afghanistan and was in charge of getting bids for like a morale and welfare event with that needed t-shirts and.

09:24
He asked us if we wanted to bid on it and it was a competitive bid. We just didn’t know that everyone else is like a pig at the trough with military contracting. We bid at normal plus the shipping to get it to Kandahar and we won it and we were floored. And then we did a good job and like found out, you know, the other guys and his, uh, his purchasing unit where they were from. And so we threw in some like, uh,

09:52
you know, sports team stuff from like their hometowns just as a thank you and you build a relationship across the world and then pretty soon we were just getting orders left and right and especially if it was time sensitive they didn’t need to mess around with bidding. So are you running ads, doing any SEO, social media or anything like that or is it just kind of word of mouth? Mostly word of mouth. Yeah, like a lot of our early stuff was more brick and mortar and then because Ann Arbor is small but because the university

10:22
has so many hooks internationally, you would, you’d work with people as students and then within a couple years, they’d, you know, be rising in a fortune 500 company and send the business back. So, I always liked about that part was it was just very personable and like, you still still matter the relationships matter. We were never the cheapest or anything, but you know, you’re dependable. So, amazing. everything you do is pretty much custom. And then

10:51
You have a brick and mortar outlet in addition to your online and it’s just a lot of repeat business. Yeah. So brick and mortar is our custom and that’s a lot of local. So we do a lot of the back end like uniforming and stuff for like the a lot of the university programs and local businesses, corporate uniforms. But 70 percent plus of our top line is is e-commerce. And that’s the majority of that is Amazon at that.

11:21
Oh, it’s at Amazon. Okay, got it. And those are fixed designs, right? Probably. Yeah. So those are, that’s, you know, B2C, like we’re making the designs, we’re mostly FBAing the shirts. That’s another thing in itself. I mean, do you find that there’s rampant copying of your designs and whatnot on Amazon? Oh, And are you, have like a dedicated team to take those guys down or? It’s not. So with apparel, people abuse trademarks and that like they’ll

11:52
Like literally the Lanham Act that governs trademark law says like they can’t be decorative. It’s supposed to mark your trade. And so there’s just a cottage industry of trolls who try to trademark decorative designs. But the reality of it is like anyone should be able to make an I’m with stupid shirt or, you know, we have a trophy husband shirt and there are 900 people with trophy husband shirts and that’s all fine.

12:17
It’s all legal. can’t say theirs is made by us. Like we have quality standards and things like that. But so no, I don’t do a lot of takedown notices. I actually like contribute to some trademark watchdog groups that specifically go after trolls because I don’t like I respect intellectual property. But I also I hate people trying to like fence off the comments and

12:47
So like we, yeah, we fought, it ended up costing us almost 600 grand years ago, a trademark troll. I can’t remember the terms of the end. I’m not gonna say it, but yeah, we took them to the ropes and we won and it was awesome. you know, we specifically did all of our legal filings publicly like the tobacco lawsuit so that the next people they want to hit could just piggyback on our legislation.

13:16
I do get a call about once a year from someone sweating bullets like, Hey man, I got half a million dollars worth of like research. know, nice. So, um, yeah, I mean, it’s, it’s, it’s an ugly little industry. You know, we figured out how to go about it. Um, and yeah, you’re constantly dealing with, with IP stuff. That’s when you’re constantly releasing new designs. I would imagine, right? It’s not like a stagnant business. Yeah. Yeah. Yeah. We’re always releasing new stuff.

13:45
you know, seeing how to iterate on old and we do more and more like licensing and stuff. Okay. The existence of merch by Amazon is, uh, you know, that means we’re competing with like literally anyone with an internet connection. So it’s a,

14:02
I just wanted to take a moment to tell you about a free resource that I offer on my website that you may not be aware of. If you are interested in starting your own online store, I put together a comprehensive six day mini course on how to get started in ecommerce that you should all check out. It contains both video and text based tutorials that go over the entire process of finding products to sell all the way to getting your first sales online. Now this course is free and can be attained at mywifequitterjob.com slash free.

14:32
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

14:43
Do you guys do FBA or Merchant Fulfilled? We do both. Both. Okay. Well, Jerry, the reason why I wanted to have you on the show was because you posted this very sobering article in the ECF forums that the entire apparel category is down 30 % year over year, including Amazon. And you actually posted some of your own stats, which I’m hoping you’re willing to share, but you don’t have to share. What do you think is going on out there right now in the apparel industry? Yeah. So, I mean, I,

15:13
Specifically, all I know is that the t-shirt category under apparel is down 30%. And that was told to me by an Amazonian who was, I believe the quote was, 99 % sure that includes Amazon. So that’s as close as we’re going to get. But yeah, it was wild to me. So we all knew 2020 was going to be a high watermark, you know, for probably a decade. And so I expected I wasn’t surprised when 21 fell off a bit.

15:43
But 22, we really kept going. were down like 30 % from 21. And then this year we’re down like 30 % from 22. You you look around and you try and make sense of it and you go, okay, gas is $5 gallon, know, groceries are a mortgage payment. And it’s like, you see the obvious macro factors and that’s the story you tell yourself.

16:08
It didn’t quite make sense specifically because I’d always heard from like older guys in our industry that like t-shirts tend to do well in a recession because maybe when you’re getting good hours at work, you get your kid a $70 video game and when you’re not, you get them a t-shirt. You know, like it’s a thing. It’s a product that it’s an affordable luxury that people drop into and we weren’t seeing that. And then talking to other people in ECF and just

16:36
looking around other industries, it seemed like nobody was having a great time, but nobody was down like 30 % two years in a row. Right. And so then, yeah, you’re like, well, so then we thought like, hey, must be Amazon is finally eating our lunch. And how would you prove that? That’s when I just started asking, trying to needle all my contacts at Amazon and heard no, they’re down to like, what what is going on? Because like, you can look at their corporate

17:05
you know, top line stuff, like they’re not down 30 % like everywhere. And yeah, and that was when I started. I don’t remember if you know, I saw an ad for Tmoo or saw an article about it, but I was like, that’s interesting. And so I started pulling the stats on Shein and Tmoo. And I guess, yeah, for listeners, it’s, um, let’s explain what those two things are, just in case people listening have no idea what it is. Yeah.

17:33
So she is a it started I think it’s still mostly targeted at women but it is a Chinese marketplace that sells direct to us consumers like they don’t even sell within China and I’d like to throw a caveat I’m gonna talk a lot about China and the Chinese and I hope we all understand I’m talking about International corporations in the state not the people Yeah, these things can have you know, jingoistic tinges, but it’s like I

18:02
I had a lovely week in Beijing with my friend Rose’s family. I probably put on 15 pounds. have nothing but nice things to say about the Chinese people and the factories that are undercutting me. I probably have more in common with them than anyone. So I don’t even fault them. anyway, yeah. So Xi’an, I think has been around since like 14 or 15, but really took off in 21 and ended 2010.

18:29
2022 I think is the most downloaded app in the US or something like that. And they’re all focused on fast fashion. t-shirts would fall under that, you it’s not exactly what you think about, but it’s all cheap stuff. When I think of Shien, I think of fashion, not so many, not so much t-shirts. I feel like Tmoo sells more of those types of things. Yeah, I agree. think Shien, Shien.

18:55
showed a new model and it’s not brand new. Like you had wish you had Alibaba before but she and really showed what those models could do with a proper social media strategy. They’re very savvy and they just gobbled up market share. So then that was happening all through you know 21 and 22 which correlated with when we started to see our sales slump. We went from two million units

19:23
sold at our peak in 20 to I think like 1.4 the next year and we’re back to our 2018 levels now. So Shein showed this successful strategy and then Tmoo just blew it out of the water. So like if you and I were talking, it’s late October and now 23rd, this time last year I don’t.

19:49
I don’t think we could have gone to team. Or if we could, was brand new. released in November of 22. I want to say, yeah, that’s when they launched and then they did a Superball ad which which destroyed it. Yeah. Yeah. So like this, if you and I were talking one year ago today, they didn’t exist or right. You know, long-term purposes. They have since I believe they just passed their hundred millionth download or something like that.

20:18
and did a billion dollars with a B in June for like a one month. People should fact check me, but these are. Let me just tell the audience real quick. So Tmoo actually shipped direct from China to the United States at ridiculously low prices. Think of it like a much better version of Aliexpress with superior marketing and virality in terms of referrals. Yeah, absolutely. And

20:48
So I started looking at that and I looked at their numbers and it’s like, if you add them together, they’re getting something like a third of the traffic daily of Amazon, but they’re focused in apparel. So, you know, that to me is like, they may very well be selling more apparel than Amazon. Like I can’t, I don’t know, I can’t prove that, but it’s certainly, for me in apparel, I feel like,

21:15
we are the canary in the coal mine on this issue where you’re like, oh wow, this is very, very significant. At least, yeah, if 30 % came off our top line, that makes all the sense in the world. There’s nothing else happening in retail that is a lever of that size. And so then you start looking and you’re like, okay, let me take one of my top sellers. What does that go for on Tmoo? It’s $6. Wow, that is a… How much do you sell it for?

21:44
Uh, 20 or 20 to 22. And you found the exact same shirt on Tmoo or something very similar. Same design anyway. Yeah. And, and again, you know, like I said, like if, it’s, know, everyone can sell and I’m with stupid, that’s not my intellectual property, but $6 is a wild figure because that is less than it would cost for us to get a blank shirt and send it through USPS next door. Like

22:13
with no printing, manufacturing, overhead, advertising, nothing. It’s untouchable for an American manufacturer. And so then you start reading about it and she in, so cotton is a plant and every fiber has a biological signature. So you can do isotope testing and look at the like carbon, hydrogen and oxygen isotopes.

22:42
and tell which region in the world they grew in. And CNN had commissioned a study or Bloomberg had commissioned a study and a German lab tested and the cotton and like nine pieces they took from Xi’an were from Xinjiang, which is under US sanctions because there a million Uighur Muslim minority Chinese who are in forced labor camps there. And it is

23:12
Specifically tied into the textile industry. That’s Xinjiang is that’s where Chinese cotton comes from. I think I saw a start It was like 90 % of Chinese cotton is sourced there. And so it is it is illegal to source to import products from that province or with that cotton into the US But it the only way that’s gonna get caught is if it gets inspected and tested by US Customs and Border Patrol which would

23:41
mean that the package would have to be inspected. And in the US, this is kind of what brings the full circle. We don’t inspect packages that are less than $800 and declared value. It’s called the de minimis loophole. And talking most historians seem to imply that the minimis was meant to be for like travelers returning home, like you could bring your souvenirs in. And it’s now 2 million packages a day come predominantly from China and predominantly from Xi and Timu.

24:11
Through the de minimis exception. So there’s there’s no enforcement of of our laws duties collected intellectual property of how like If you go to team right now and you just search Rolex It’s like the counterfeits are right there now. They don’t actually say Rolex they say Olev and has the Rolex crown and

24:39
What’s funny about Oleg is if you arrange the dials on the watch, it oops, sorry, I lost my window here. If you arrange the dials on the watch, it looks like Rolex the way that those letters play out. So yeah, like intellectual property and everything slips through the cracks when things are not being inspected. Let me ask you this. How is it possible for them to make the T-shirt printed?

25:08
and ship it for six bucks. Like how is that even feasible? Like the shipping alone for a t-shirt is probably like five bucks, right? Or- I would think so like a lot of people have, know, they’ll talk, there’s some outdated notions about shipping from China. Like there was the universal postal union. That’s when you had ePacket and all this like super, super cheap shipping that got renegotiated in 2018. And my understanding is it’s gotten more and more expensive. Like they’re trying to bring it up to parity.

25:38
I would expect I believe that they’re, you know, bulk freight forwarding and, and splitting the actual manufacturing. I think if, if you’re using forced labor and you’re using locally sourced cotton that has it’s, it’s hard to like parse out subsidies and stuff. Yeah. But, yeah, I think their manufacturing is probably

26:06
I don’t know. I would imagine they’re probably making everything for under a dollar. then, Tmoo, according to Wired, who I haven’t heard a lot of people like poke holes in their sourcing or the investigation. They claim that Tmoo is losing $30 per package shipped, which is wild. Like it’s, I think you could extrapolate to like a billion dollars a year. And so the

26:34
Easiest explanation would be like, wow, there that’s some like epic level predatory pricing to break into a market but that you know, that seems silly to me because it’s like They’re kind of chasing currently chasing junkie products and like as soon as it’s not dirt cheap Like why would people stick around if it’s gonna take ten days? So the more I guess conspiracy conspiracy minded explanation Grizzly reports at a short seller investigation

27:04
And they’ve declared that Tmoo is the most egregious malware, like spyware app for any like largely circulated product. And they did use reputable like security analysts who they source in the article. And amongst other things, the app can compile its own code on your phone. like they could, it could pass all of the

27:33
inspections from Google player Android or whatever, or Google Play or Apple to get on your phone. And then they could push code to it and write write code on your phone. So I actually just did a full article on on Tmoo. I didn’t read that anywhere. But I do know as an e commerce influencer, they’re reaching out to me almost every single day to make a YouTube video or tick tock or whatnot. And they’re paying top dollar for it.

28:01
and their referral program is very generous. I’m just wondering how they’re making money and based on that article that you were just mentioning, yeah, it makes sense that they’re losing money hand over fist just to break into the market. Yeah, it’s the the wired sources said like their their goal is to see I think the median shopper spend like $1,200 a year on the platform. It theoretically you could get to profitability but like

28:31
I don’t know, it’d be very difficult. their parent company, Pinduoduo, their PDD now, I think they’ve kind of been struggling. Like the Chinese consumer market has been anemic for the last couple of years. And so there’s speculation that this is like more of a desperation play. But then the data scraping is pretty egregious, like very egregious, even relative to other apps. And so it’s like on

29:01
a little unclear. You know, is it a play for data or is it a play for market share? Maybe a bit of both. Yeah, I feel like it’s like the perfect storm right now because of the economy and people just looking for cheap stuff, right? Yeah, yeah. I mean, I I’m pretty livid with Amazon. mean, every Amazon seller has their litany of grievances, but it’s like, did you have to keep

29:29
Do we have to do the fee hikes again? And I feel like there’s been no let up on the gas of like pressure for us to raise prices when they’re at least for our category. We can’t. There is a clear actual competitor now who is not on the platform and is, you know, eating everyone’s lunch. Like how much higher than $20 can I go when the same shirt is $6 somewhere?

29:59
Like, you know, and they’ll say like, oh, you can get it quick. Oh, you have returns. It’s trusted at six bucks. Who cares? They don’t know what’s even going to return it. Like most of that value prop goes out the window and like, yes, expediency and convenience. Like that’s all great, but it’s not the only thing. And 100 million people are showing that like, yeah, I can wait a week. How confident are you that it is in fact, Timo and Shia and that’s affecting your sales?

30:29
I mean, I can’t certainly out with any certainty. Of course. Yeah. I don’t know. I mean, I can’t see it not, I guess. And I don’t think it’s just that like, there’s these two new entrants. It’s like, they are dominating social shopping, where Amazon never really has. And so it may be that even if they disappeared overnight, that

30:58
social shopping, regardless of who the, you know, who would take their place that that’s just a new medium. But yeah, and like I have absolutely no idea, you know, what macro demand and you mentioned like 70 % of your business is Amazon, right? And if Amazon’s taking the hit, mean, a lower tide lowers all ships, right? Yeah. In that respect. You know, what’s funny is I was just doing a case study on true classic tease.

31:28
a couple weeks ago how they’re killing it with their ads and everything and they’re a hundred million dollar company and all they do is they sell plain t-shirts. And so I guess my question is how are you planning on fighting against this? Are you gonna go more D to C social marketing or like what’s your strategy to combat this?

31:52
putting a lot of effort internally into like our other lines of businesses. So we do like uniforming for Fortune 500 and things like that. And so what we found is a lot of the expertise we built out around rapid product design and drop shipping and whatnot that’s actually also can give you just a really high service level for this older business. So we’re looking at that.

32:22
We never really put a lot of attention, honestly, into our own website and stuff like that. like, shame on us. But yeah, think part of us, part of it, we’re gonna ride out, like we’re gonna be okay. I’m being a little overly dramatic. Like we still have. Yeah, you guys still do a ton of money. Yeah. But you know, it doesn’t feel good. No, no. Well, and it’s a thing where I think it’s worth everyone

32:52
being aware of because it’s a new… I’ve heard a lot of people when I’ve talked about this say like, well, they’re just wish 2.0 and it’s like, well, let’s agree on that. Let’s start there. What is to… So they’re implying like it’s just wish and it’s like, no, it’s wish 2.0. If you plot market penetration and speed of penetration and you put…

33:22
Wish 1.0 on the bottom left, Wish 2.0 is exponentially up and to the right. Like they did it a lot better this time. so you should be thinking if Wish 2.0 is still just apparel and fast fashion, know, if it only remained that, it sucks to be me, but everyone else is probably fine. But I would just point out that that’s not necessarily the case.

33:51
Wish 3.0, what’s different this time is they got 100 million people to try shopping from China directly. And it’s not all crap. And it’s not all a bad experience. That’s people just, that’s hubris to just say like, oh, it’s all garbage. A lot of it is the exact same stuff that’s sold on Amazon without 50 % fees. So it’s like, think about your own product.

34:19
Like especially if you make your product in China, what’s what’s to stop a more elegant, curated, sophisticated platform from approaching your manufacturer? And you might say, well, I have a brand brands. The biggest gate for a brand is intellectual property, and that’s not really being enforced when we’re not putting things through customs and border inspection. And you might say I have a great relationship with the the factory owner and he’s not that savvy. Well, his kid might be coming back from getting an MBA at Wharton next year.

34:48
and have other plans for the business. the Chinese industry is just like any other. Like it’s going to evolve. It’s going to get more sophisticated. And if we’re structurally getting American consumers used to just end running American retailers, you can make an argument for that. I’m not going to because this is my paycheck and I’m going to defend it. But it’s

35:15
Everyone should be a little alarmed at how fast Tmoo specifically penetrated the American market and wonder like, you know, and are you really that safe? I mean, I think a lot of this has to do with the cheap, relatively fast shipping from China, right? I’ve ordered from Tmoo a couple times. It came within, I would say, 10 to 15 days, which in my opinion is pretty fast from China.

35:41
And shipping was free, I think, for the first order or maybe I ordered enough for the first order for it to be free. And then there’s no, they don’t have to pay any customs duties or anything like that. And I can see if people don’t mind waiting for some of this stuff, they’ll probably just buy from Tmoo. I’m just wondering if the US is going to do anything about the de minimis level being at 800 bucks. Because, you know, I have colleagues that utilize this loophole also.

36:11
Oh, yeah, in importing stuff like to the border and in Canada or Mexico and then just slipping it in the US postal system. Yeah, yeah. Yeah, it’s um, well, I mean, we are really an exception. I think there’s like three. I could get this wrong. I think there’s like three countries in the world that have like, higher than a $500 de minimis. My understanding is that China has like a $7 de minimis. So

36:37
There is a lot of attention being paid to this in Washington. So in June alone, Senators Cassidy, there are two different bills, one in the Senate and then one by Kameral, both looking at closing the de minimis loophole. I think specifically the wording was around like non-market economy. So it would mostly apply to China, Russia, and I think you could interpret it as Vietnam.

37:07
And there was a letter from like 12 senators, bipartisan three weeks ago to the Biden administration asking on behalf of the apparel industry to close the loophole. And then all of the apparel trade groups are screaming about this. so apparel is a little interesting in that it is the lowest rung on like the industrial ladder. There’s a bunch of books about this. Like it’s always the first industry. It’s why the industrial revolution started with apparel.

37:37
Right. But it’s also so it’s not just a matter of like protecting American, you know, manufacturers or light manufacturer decorators like me. It’s also a trade a trade tool like a lot of our bargaining with Central and South America to get concessions on like, we’d like you to stop growing drugs in this region, like, well, these people need jobs. We’ll do a free trade agreement on apparel and then you can set up factories there. So we use apparel.

38:07
free trade agreements in our hemisphere as a bargaining chip to try and affect change. And so this is a thing like the textile industry is pointing out is like, if you think that we have border pressures now, you should see what what it’s going to look like in three years when all the factories in this hemisphere are shut down because they’ve been undercut by weaker cotton. And so it has these these geopolitical knock on effects. And that’s, that’s been making it into the conversation. So

38:37
I don’t know who’s on the other side of the argument. Like certainly UPS, FedEx, there are a lot of small businesses that I’ve heard of guys breaking their cargo shipment into fives to get them all in under the $800. But there is starting to be some concrete movement in Washington around this.

39:01
Yeah, you know, I guess I have different opinions on whether it’s going to affect I think if you’re selling cheaper trinkets, so to speak, and, and and cheaper, cheaper apparel, I guess t shirts kind of fall into that category, then you’re more likely to be disrupted by Tmoo. And then as you

39:22
I guess and we were talking about brand earlier. I mean, if you have a strong enough brand and quality matters, you know, it’s funny, I had a YouTube video on Tmoo. It has almost a million views and you should see the comments on this thing. Half the people are say it’s like cheap Chinese junk or they’re afraid like their information is getting collected. And then there’s this other half, which I’m sure a good portion of them are actually getting paid by Tmoo. I’m pretty sure of this because the comments are effusively good.

39:52
right about Tmoo. And I know that if they’re willing to pay me like, you know, $500 for like a one minute TikTok, then they’re probably paying commenters. But there’s generally like some cynicism, I guess, on the quality of the products, whether they’re even safe and that sort of thing. And stuff like that just takes some time to dissipate. It does. And again, like I’m not saying Tmoo is the threat.

40:21
I’m saying what comes next because like, I mean, Foxconn makes Apple in China. China can make everything up to the quality scale. So in that sense, it’s like, if, I don’t know, I’m sure there’s probably a factory that’s back-ending like,

40:45
I don’t know, Bosch or DeWalt or like some great course, What’s to stop them from being savvy and setting up like an alternative to Home Depot? That is it’s the same quality tools and they get backing from tradesmen and they’re half the price, you know, and maybe maybe we want that as a society. I get that but I’m

41:09
I’m saying that the new thing here is that people have gotten used to shopping direct on China and then there is a de facto one way free trade agreement that none of us voted for that would never pass Congress. You know, it’s a strange thing and until there is action, I think it’s going to keep moving forward and getting more sophisticated. I don’t see why it wouldn’t.

41:38
I guess the real question is what can you do to fight about it? And we didn’t really go into depth on what you guys are doing about it, but presumably you have all these relationships with all these companies and you get a lot of repeat business. I imagine that’s how your business is safe, right? Yeah, I think so. mean, and we have a lot like we do have a brand. We do have a reputation like that’s not that’s not for nothing. I’m not I’m not saying that at all. Of course. It’s just yeah, if you’re

42:05
it would be nice to have that 30 % back of your customers who weren’t that brand loyal. You’re just, you know, you were there. We’re specifically talking about the Amazon side of your business though, right? Yeah. Yeah. Yeah. So my, my custom side, like that’s all more of a, um, the value prop is more in the service than, you know, that. So, yeah, like we’re, we’re, we’re changing, we’re evolving, we’re going to be fine. Um, I’ve been doing a lot of like just promotion advocacy, this idea of just like,

42:35
It’s kind of a new thing facing American retail and American B2C manufacturers that it came on so fast and under the cover of inflation that I don’t think a lot of people, there’s no way to assess it and I don’t think a lot of people are even aware of the scope. I mean, arguably, it’s hard to even build a brand on Amazon in the first place. So I guess if anyone out there is listening and your main channel is Amazon, I think you’re probably more likely to get disrupted there.

43:05
I’m curious, I was on your site earlier, it seems like you have to get a quote, right? order to Yeah, you guys aren’t like a pure e commerce company. No, no. And again, think shame on us. never really put a lot of that’s not the point I was making. My point was like, it’s hard to tell how many sales you lost from like the direct quotes. Because you know, you’re not taking transactions on there versus your Amazon where it’s readily obvious, right? Yeah, yeah. And I think the

43:34
that end of the business where we’re custom making custom apparel, like I don’t think that’s in any danger because it’s so relationship and service dependent. But yeah, anything where it’s just the product is the product and then particularly an unsophisticated product where you can look at it and go like, well, it’s not, you know, diaper cream for my baby where I’m concerned about, you know, a rash.

44:01
So mean my views on that are even they go way beyond team and she and actually if you’re just making a product that Kind of blends in with the rest. I mean even even the Chinese factories have been listing their products directly on Amazon I mean that’s been going on for like the past five years which which have hurt everyone Team is just like an extra level beyond that. I think Yeah, I think to me the thing that’s frustrating with team is that? It’s an unlevel

44:30
playing field basically. If your business model is based on dumping, losing $30 predatory pricing, it’s very frustrating to be an American making a product in America, selling in America, and not being able to compete. And people point out like, Amazon used to do predatory pricing, and that was messed up too. I wish we had better.

44:58
case law. think that’s something the Supreme Court botched in the in the 70s. But yeah, it’s it’s like I don’t we’ve competed for years, we built a pretty big t shirt operation. That part was fine until we ran into. Yeah, one level playing field. And so but this can’t last forever because they’ll run out of money at some point, right? I think so. Yeah, I mean, and that’s where again, like my

45:28
my caution or what I see in it that I’m pointing out is more that it’s there. There will probably be another there will they’ll probably have to move up chain to make the dollars and cents work. But I would I don’t know how how team could hold on to this forever. think she and I believe just bought Forever 21 and like is investing in warehousing in the US. So, you know, they’re just going to be more of

45:57
they’re an international retailer and hey, if they’re paying taxes here and following labor laws here and everything, fine. Like that’s the game. But I don’t like, yeah, this other business model of just drop shipping from China under, I thought we got rid of sweatshops in like the 90s and stuff. Well, in the US for the most part.

46:24
But I know there was so much pressure like I have to do so much compliance for my like university licenses and stuff. And then I go on Tmoo and you’re like, Oh, I could buy a University of Michigan teacher for five bucks. I know, know, know. It’s it’s it’s wrong. Well, let me ask you this, Jerry. Let’s end it with what do you advise that people who are doing apparel? What do you advise that they do right now? Yeah, I mean, I So on the micro level,

46:54
build your relationships, build your brands like that. That is your best thing to do here because that is going to insulate you. And honestly, it’s just a better way to build a business. No one wants to sell a commodity. But at the macro, if I may, are these laws are going through Congress. Your brand is your micro-mote. I view political action as the macro-mote.

47:24
I’m sure you have plenty of international listeners. So apologies, guys, nothing personal. Yeah, I mean, I would contact your congressional reps and your senators. People really truly underestimate that. it’s like, you know, it doesn’t hurt. It’s easy. I think the de minimis level is something maybe we can do something about. But just coming in and taking losses and becoming a loss leader

47:53
is not really something that’s enforceable. I don’t think right. It’ll catch up to them at some point. Yeah, we have very weak laws around that. So that’s something you just sort of more ride out. But it would be much more difficult to do without the minimus. I think like apparel in particular would be like 25 percent. And you I imagine the packages would probably slow up and be harder at the border. But there again, like you can get around that by

48:22
opening a warehouse in the US, importing like the rest of us do paying duties like the rest of us do and following laws and selling like, I’m not I’m not actually an isolationist. I just think you should have to the same rules as the rest of us. I agree. I 100 % agree. And it’ll be interesting. Maybe I’ll have you on in like another five years and we’ll see what what’s going on then. I would love that. Or maybe even sooner than that. But Jerry, where can people get some really kick ass tease?

48:52
If they’re interested in what you sell. Currently, our biggest selection is on Amazon. We are we we we kind of went all in on FBA and we’re sort of working backwards now to build out our own site. So if it’s in the next few weeks, unfortunately, I probably can’t send you to my own website. We have more stuff on Amazon. But and don’t do that. I would. Yeah, you asked apparel people like.

49:22
It seems obvious to say like don’t put all your eggs in one basket that’s investing 101 and it is so much harder to do when you’re growing at four or five X to not just keep doubling or quintupling down every year. But in an inventory business that can bite you and I have a second 40,000 square foot warehouse full of T-shirts to prove it. Wow, that’s crazy. Well, Jerry, mean, you’ve done really well for yourself.

49:51
I just wish I just wish you had more of those YouTube videos. I that itself would make me buy from you over anything. You know, we will. We’ve you know, this last couple of years, like we’re doing a lot of introspection and like, okay, we got to change. We got to like get nimble and like, where do we want to go? And so but clearly what you’ve done has been good for these past several years. And I kind of know your numbers since you told me in private and you’re killing it. And even if

50:20
It goes down to just your personal business or the brick and mortar part. mean, still that’s like more money than anyone most people are ever going to make in their lives. So yeah, I can’t. We’ve been very fortunate. can’t. I can’t really get like. But. Yeah, well, I get back to some more creative marketing. Have fun with it again. Nice.

50:46
Well, Jerry, I appreciate you coming on the show and just being like an open book regarding your business and how Tmoo and these other Chinese companies have, you know, come in and I guess they’re playing by the rules, but the rules are kind of one sided. So yeah, I don’t fault them. Like that’s what we all do. But, you know, in a high, you know, I got in a bit of a debate with with

51:15
seller out of Hong Kong and saying, Hey, man, this is, this is what we do. This is our competitive advantage. And I was like, all right, no, nothing personal. But my competitive advantage as an American citizen, then is I’m going to lobby my legislators to close a loophole. Like, you know, it’s not personal. But and again, like I understand there’s a whole other valid side of the debate. People have been debating isolation or protectionism versus free trade for 300 years.

51:44
And so I am firmly currently in the camp of like you can’t convince a man he’s wrong when his pocketbook is on the line. It’s you I’m making a selfish argument, but it’s on behalf of my 75 employees and their families and I’m gonna do that. Yeah. Well, yeah, once again, Jerry, thanks for your perspective and maybe I’ll even link up. I think you had a link to to file a petition or something to your local congressman. So maybe I’ll link down the show notes as well. But once again, thanks a lot for coming on. Appreciate you. All right. Thanks, Steve.

52:16
Hope you enjoy that episode. Now, if you are worried about companies like Tmoo and Shien taking over, I also filmed a YouTube video about this subject that you can find in the show notes or on my YouTube channel. For more information about this episode, go to mywifecoderjob.com slash episode 509. And once again, tickets to Seller Summit 2024 are now on sale over at sellersummit.com. If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event.

52:44
go to SellersSummit.com. And if you are interested in starting your own eCommerce store, head on over to MyWifeCoderJob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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508: Amazon Fees Are On The Rise! 5 Tips On How To Slash Your Costs With Yoni Mazor

508: Amazon Fees Are On The Rise! 5 Tips On How To Slash Your Costs With Yoni Mazor

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Transcript

00:00
You’re listening to the My Wife, Quit or Job podcast, the place where I bring on successful bootstrap business owners and delve deeply in what strategies are working and what strategies are not with their businesses. Today I my good friend Yoni Mazur on the show. And Yoni is the founder of Getita, which is a company that helps you save money on Amazon. And this guy is literally at every single Amazon conference and he’s got an excellent pulse on the entire industry. So in this episode, he’s going to teach us about all the latest Amazon fee changes and how you can save money selling on Amazon.

00:29
for the rest of the holiday season leading into next year. But before we begin, I want to let you know that tickets for the 2024 Seller Summit are now on sale over at Sellersummit.com. The Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online and unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business.

00:58
Every speaker I invite is deep in the trenches of their business, entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet. I personally hate large events, so the seller summit is always small and intimate. Every year we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. Now if you’re an e-commerce entrepreneur making over 250k or $1 million per year,

01:26
We also offer an exclusive mastermind experience with other top sellers. The Seller Summit is going to be held in Fort Lauderdale, Florida from May 14th to May 16th, and right now this is the cheapest the tickets will ever be. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s available on Amazon at 38 % off right now. My book will teach you how to achieve financial freedom by starting a business that does not require you to work yourself to death. Plus, you can still grab my free bonus workshop,

01:55
on how to sell print on demand and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifequitterjob.com slash book. So go over to mywifequitterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:17
Welcome to the My Wife, Could Her Job podcast. Today, I’m thrilled to have Yoni Mazur back on the show. He is the founder of Katita and he’s helped thousands of e-commerce entrepreneurs get their money back from Amazon. And he actually spoke in my last conference, the Seller Summit. Now today, what we’re going to do is we are going to discuss ways to save money on Amazon because it’s getting more expensive and it’s getting a lot more competitive as well. And with that, welcome back to the show, Yoni, for the third time.

02:46
Yeah, thank you. Thanks so much for having me. Always a pleasure and a privilege to be here. You know, it’s been a while since we’ve had you back on. you know, I keep in touch with a lot of Amazon sellers. And so far, it seems like this has been a harder year for Amazon sellers in general, and people are getting squeezed by fees. There’s pressure on both sides, PPC costs have gone up. I think I read Amazon’s last report and ad revenue for them increased 25 % year over year. So

03:14
It seems like people are getting squeezed. Yeah, it’s just that, you know, we had the past decade where the initial phase, people realized there’s a gold mine, but nobody really knew about it. I remember when I was still selling, I don’t sell anymore. We cashed out. But early days of about a decade ago when I used to tell people that I sell on Amazon, it was like saying I sell on eBay. It’s like, ah, it’s like a, it’s like a garage sale kind of business. Yeah. Right. Yeah. We’re just making bank. We’re just making tens of millions of dollars. But those times were cheap.

03:44
FBA was cheap. There was no advertising, then even when advertising was introduced, it was very alluring. Amazon made it so cheap and so powerful. And once the critical mass has realized it, then the bidding wars and inflation of cost for advertising has skyrocketed. And it keeps on intensifying because bigger players with bigger pockets, with bigger organizations are just swapping everybody out.

04:12
Sellers who don’t have that kind of infrastructure and skill need to be very smart on their positioning. And there’s opportunities out there to position yourself in certain ways where you have that ammunition, that ammunition where you really are lean in your cost. And that opens up better margins. And if you take those margins to constantly improve and iterate and reinvest in the business in key ways, you’re just going to be invincible for the long term. So that’s kind of the framework on this discussion.

04:40
I’ve actually noticed also recently just just in doing product research that whenever I search for a keyword on Amazon, there’s actually a lot of sellers that are originated from China on the platform. I’d say even more so than like the last couple of years, or maybe I just started noticing that now. But what’s nice is that I’ve that Amazon is making an effort for making it cheaper for new people to get started up. And that’s kind of some of the things that we’re going to be talking about today. Yes, but I do have to touch the Chinese

05:10
Notion. Yes. You’re right. You’re right. Not only that you’re right. It’s at this point, it’s probably scratching 50 % meaning 50 % from all the sales generated on Amazon globally, which is mostly North America and Europe is coming from sellers who are based in China. Yeah. Right. So 50 % of them are from China and then the rest of the 50 % are from sellers that are located all over the world, not just the United States. So in other words, they already took over the market. Yeah.

05:37
They’re the engine behind the selection and the competitiveness and stuff like that because Amazon is based in a few places in China as a marketplace. used to be as a marketplace, but it pulled out because there’s too much competition and hurdles. But the offices that they have, they constantly reach out to the Chinese sellers, factories, agencies to train them and teach them how to go direct to consumer on their platform. And that’s where the revolution began and it just snowballed. So that’s kind of the back of the scenes of what’s going on.

06:06
And I think AI has leveled the playing field. Like the listings are quite good now, you know, across all of those. There’s no language barriers really, it seems. And the listings are professional. More than that, it’s so funny you say that because I’ve been to in the past few days, I’m based in New Jersey. So the past few days we had a conference here in New York City. It was called AMZ Innovate with our friends, know, Brandon Furman, who produces it every year, typically in September. One thing was one of the sessions there with the sellers,

06:36
came up and they put their listings on the main screen and Aaron Kordovic, he’s a, know Aaron, he has ZUL ideals. He does over a hundred million on Amazon with his brand. So he was like ripping it apart and comparing it like, you know, how does the listing look and feel like on Amazon compared to the leaders in that same category. And all these leaders, you know, these sellers were pulling it up and they were maybe number, ranked number four five in the category or that niche. And then the number one or two or three were based in China. And you clearly see how

07:05
better the listings are. Images, image impressions, overloads, sensory overload of value. Because for example, one of the products was a trimmer for the hair. So it’s a bundle. It’s actually two trimmers. So the way it’s positioned, it looks like you’re getting one instead of two. And the other listing, the Chinese listing actually, you get one trimmer, but you get so many things around it. And so you see the trimmer, and then another picture with the trimmer inside the package that it comes with so many other things. So feel like you’re actually getting two, even though you’re only getting one.

07:34
So you see all these nuances where they’re actually much more sophisticated and refined than the US-based sellers. So a lot of respect to them. Yeah, I think AI gave them a lot, probably most of all, discipline. They’re very disciplined. Incremental improvement over time and they’re killing it. Exactly. Yeah. On that note though, Yoni, how can a new seller just compete then? Okay. So a few things to consider. I think if you are following Steve in this podcast and

08:03
and this content and you’re kind of on the fence getting into e-commerce, we can give you one, I guess, a simple things to consider that can really set you up for success and savings. We’ll start with the basic ones. So Amazon has a program for new accounts. So if you want to create a brand new account on Amazon United States, not Canada, United States, or UK, or Germany, France, Italy, and Spain, believe, they will give you, if you have brand registry,

08:33
Brand registry means you have a trademark and you register your brand. Amazon acknowledges it’s your brand. So once you get a brand registry and set up this new account, for the first million dollars, you’re going to generate in revenue, they’re going to give you a 5 % bonus. So that’s a $50,000 value. Okay? So you can use that value savings to restock, replenish, you know, use for advertising. Yeah, ahead. What does it take to sign up for this? Or do you have to sign up or is it automatic? It’s kind of automatic. So make sure that you are, you know,

09:01
If you want to start in Canada, maybe not. Maybe you should start in the US, for example. Typically, I always very recommend to start in the US or UK and Germany. That’s like the top three marketplaces. So if you’re based in Canada, listening to Steve, thinking I’ll start in Canada, maybe you should start in the US because you get a 5 % on their first million. There’s no time horizon, meaning there’s no expiration date for that 5 % bonus. So keep that in mind. or… That essentially knocks down the referral fee from 15 to 10, right?

09:26
Correct. If you’re in that category or sometimes some people do electronics, it’s 8%. Correct. If you’re 5 % back, you’re actually paying only 3%. So that’s another consideration. Or if you do jewelry, it’s 20%. So you’ll be at 15%. But most people are locked in 15%. So that’s kind of the general rule of thumb. But if you’re already active in the marketplace, so you’re selling in the US and you want to expand into Europe, here’s your opportunity. Because this program is still running, but they might shut it down in a few weeks or a few months. So speed is key. And vice versa, if you’re selling in the UK or Europe,

09:57
and you want to transition into the United States, that’s opportunity to save 5 % on your first million. So that’s kind of first basic ground level, ground zero thing to consider. But once again, make sure you get that trademark and brand registry. Don’t just launch a product on Amazon, no trademark, no brand registry. That’s not the right way to do it. Yoni, would you say that brand registry is pretty much par for the course now? It’s social security.

10:26
Like if you don’t have it these days and you’re just listing something as generic or whatnot, mean, would you… You’re wasting time. You’re vulnerable. You’re too vulnerable. It’s not the way to go. Well, I was gonna say, would you go as far as to say you shouldn’t even bother selling on Amazon unless you’re blinded? Because I’ll tell you what, if you reach success, you’re still vulnerable. So it’s just gonna blow back at you. People will just copy you this and that. You have no trademark, no protection.

10:53
People hijack your listing, they change your listing, you just be so vulnerable for more fronts. So if you’re be successful, it’s gonna backfire. If you’re gonna have low success, you’re gonna retire anyway, or you’re not gonna probably pull out of the game anyway. So I say simply that if you do something, do it right, and this is the right way to do it. It’s a very basic, fundamental way to do it, and don’t try to cut corners and save time on that. It’s not worth it. You know, I actually haven’t heard as many reports of hijacking, and it seems like the chatter around that has died down a little bit.

11:22
What are you seeing since you go to every single Amazon event in the world? Still around. It’s always that whisper of hijackers. It depends on the competition and your category, your niche. Whenever they want to target you, all of a sudden you get it. So being around so much, it’s still around. I don’t have any laboratory conditions. I don’t have the exact data, but I still hear it. Yeah. What about review abuse? Are you still hearing the chatter around that?

11:52
A little less. I’ll say a bit less. It’s more about they come in, they change the images or whatever they can to kind of botch you. Less on the review side. Yeah. Because Amazon will delete it. There’s better ways right now to clean up. Not just reviews that you got manipulated with. It’s also just reviews that are unfair in general or doesn’t make sense. They oh, this is a great product. It’s amazing, but it’s one star. Stuff like that, which is little funkier. Sometimes, you know, it’s a wrong click.

12:21
Things like that, Amazon wants to be a bit more attentive to the sellers to make it more wholesome. Right. Okay. So you mentioned 5 % right off the bat, which is a huge deal. It’s essentially a third off if you’re just starting out. Yeah. Yeah. For their first million. So you did that. You did the right thing. You started the basics of all basics and you have your trademark and brand registry. That’s great. So now that you have brand registry, the next layer would be to sign up to the brand referral bonus program.

12:50
So once you’re in SideSale Essential, just go to the search box, brand, referral, bonus program. Look for it, apply for it. You can only apply if you have brand registry. So it takes us back to that. And now you’re able to kind of get to the second layer. And the second layer is pretty cool because you’re to get a link, a URL. If you use that link to drive traffic from outside Amazon into Amazon, Amazon is going to give you a 10 % credit back, no cap. So if you’re really good with influencers, TikTok, YouTube.

13:20
Instagram, whatever it is, or email marketing that drives traffic from outside Amazon into Amazon and it converts. So all these sales generated with this link is they’re going to give you 10 % back. So if you’re able to within a year, for example, generate $1 million, you’re going to get $100,000 back. Right? So let’s take the $1 million again, right? $1 million, you get 10 % back, plus you get the 5 % from the first layer. You’re selling for free. There’s no fees. At least on your first million, which is very powerful. It’s $150,000.

13:50
So let me talk to you about driving external traffic. Cause for my store, I always focus on D to C and driving traffic back to my own store. And I know Amazon has introduced all these ways to get back in touch with their customers. There’s a limited email marketing and that sort of thing. So I know you might be biased towards Amazon, but what are your reviews on driving external traffic to your listings? I think that’s great in any platform. If you have that ability, that you’re a real G of e-commerce.

14:20
If you have the ability, I want to kind open that up for a bit more. What I find interesting in these times is that the most important or valuable resource in the world is not gold, it’s not diamonds, it’s people’s attention. Right? Think about all these massive companies that are worth so much money like Meta, right? Or Google, or because YouTube, right? So what do they really have? Do have gold resources? Do have oil? No, what do they have? They people’s attention.

14:48
Addicting, you constantly on their feeds and this and that. And with that attention, you can trigger them to take actions. Politically, who to vote for, stuff like that. So that’s government, Military, all that stuff. Wars. And of course commerce. Buy this, get that. I recommend, I don’t recommend. All that stuff. So if you’re able to source your product and become a retailer and want to build a brand, if you have the ability to really touch and grab some of their attention of consumers out there with all these platforms and drive them anywhere, that’s really the name of the game.

15:19
People are locked into Amazon because Amazon has people’s attention. It creates such a robust platform with so much variety and good quality, know, customer support, fast fulfillment, a library of videos, a very rich environment for consumers to get delighted. So their attention is there. So what are all these sellers doing? They’re riding on that attention credibility or whatever it is that Amazon has, that moat.

15:45
And they’re paying a tax for it or a fee for that. Selling fee, advertising fee, all that stuff. Which is okay, that’s the way to do it. But if you can also have other varieties of it where you have your website and you can target them through email, social media, whatever it is, that’s really the same thing that Amazon is doing. That you create your own shell that does it and that’s really the core of what e-commerce is. I think Amazon is ingenious to do this. One, regarding the specifics of that,

16:14
Is that link last click attribution? Do you know? Well, one more time. What is it? Is it last click attribution? So if someone clicks on the link to your site, they don’t buy and then they click on, let’s say someone else’s affiliate link and then buys. you still going to get credit? Uh, too rich for me. I don’t know. I got to double check. Okay. I’ve always wondered that because I, yeah. Cause this program has been around for a long time. Right. The, uh, uh, no, the brand reform bonus program. Yeah. No, it’s pretty, it’s pretty new.

16:43
It’s in the last year. yeah. It’s been around for a year. Yeah. So last year. it’s a good one. I don’t know if this episode will have the answer, but if other episodes, if you could give an update on that or show notes, it’ll be good. Yeah, I should look that up. I mean, that question immediately popped back into my mind as soon as we started talking about it. But if you do those two things, you’re essentially selling on Amazon for free outside of SBA costs, of course. Yeah. So yeah, two great layers to stack.

17:13
up on your setup to once you have gears up to success, you have more free cash flow coming in from all these sales. And really the next question is what do do with this free cash flow? Buy a cell phone as a car or reinvest in that or whatever, a watch or reinvest in the business? I’m a big advocate of reinvesting in the business. So you keep compounding and compounding it. Hopefully we build a good team around and a good structure around. So they also have the same mindset of growth and compounding. So then you can really at some point have a good machinery.

17:42
that runs itself and you can have a balance of work-life balance. When you want to jump start anything, you know, you’re, Steve, you’re an engineer, In physics. I used to be an engineer. Yeah, with microchips, right? Yeah, that’s correct. So yeah, the first gear is always the hardest, needs the most energy. So if you’re a micropreneur, it’s going to be all on you, honestly. I don’t want to sugarcoat anything, it’s going to be a grind, it’s going to be hard, a lot of energy, but as you turn into second gear, third gear, fourth gear, you actually need, you have so much, you know, movement and momentum, you need less and less energy.

18:12
So that’s the way sellers, micro-entrepreneurs need to kind of feel about this business or probably any other business. But this one is very magical because it’s digital. You can hire and harvest talent from any corner of the world, which is amazing and very, very efficient costs. And have this digital family of team members that can do wonderful things together and just nourish each other and just have a good balance of life. You’re not really physically bound or restricted on anything, which I think you’re also a big advocate for.

18:41
I am in the center. Yeah. Yeah. But in the beginning, you do have to invest all your profits back in because you’re to need inventory, right? You can’t just cash out in the beginning. For sure. Unless you want to take debt and then debt is a whole another rollercoaster of stress, especially in these economical times where interest is just as high as it’s been probably in 20 years or something. So, know, Amazon did a couple of things this year that I guess puzzled me too. Like they eliminated the small and light program.

19:09
which affected a lot of my friends who were selling smaller, cheaper trinkets. Is there any counter to that? These first two layers if you’re planning to sell those categories. Another counter to that is if you were, some of your products or most of your products are at the tier of the cost structure or so small and light was, you it has to be a certain price point but also a certain weight and dimension.

19:39
If your wedding dimensions can be shrunk a little bit to the degree where it’s lower, so it’s going to be cheaper for you on all the fulfillment side of things. So, strategically, you got to kind of see where you are on the spectrum of the tiers that Amazon charges for wedding dimensions. The opportunity to really reduce it with you and your supplier or your sourcing agent. You do it and then you have a more strategic positioning to save on all these fees and offset some of that adjustment that Amazon did that now is costing you more.

20:08
Mind be eliminating all your margin.

20:12
I just wanted to take a moment to tell you about a free resource that I offer on my website that you may not be aware of. If you are interested in starting your own online store, I put together a comprehensive six day mini course on how to get started in ecommerce that you should all check out. It contains both video and text based tutorials that go over the entire process of finding products to sell all the way to getting your first sales online. Now this course is free and can be obtained at mywifequitterjob.com slash free.

20:41
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

20:52
I mean, you’ve gone to a lot of events and you chat with a lot more sellers than I do. What is the general sentiment? Because, you know, they did raise FBA fees as well this year. Pretty high, in my opinion. And then they eliminate small and light. What are some ways that the sellers are countering this and how are they being affected by it? What’s the general sentiment? Inflation times, the time of inflation, which means that eventually have to raise prices. OK. So now that you’re surprised.

21:20
you or your competition, at some point everybody kind starts to crack. So they start to raise prices. But then you try to say, okay, raise prices. What can I do to optimize my listing that at least it projects the more value? Even if it’s the same value, how do you project, how do you refine that? So you’re to have to raise the price and it might slow you down. But if you are able to combat and offset this issue with optimizing your listing, is, invest a little bit into that, but then it carry you forward for long time. So that’s kind of

21:49
an adjustment that I’ve seen around there. Okay. Well, what are some ways, I know we kind of talked before we hit the record button about just kind of auditing your account and figuring out different areas that you can work on. What is your, know, SOP for doing that? So before I touch that, I want to add more layer, the third layer for setup. Yeah, so as you set up the account, one layer we touched, a new account, 5 % grade, a second layer Brand before program, you get 10%. The third one is that if you plan to open a brand new account on Amazon,

22:18
your first one ever or just another one for another brand that you’re doing and you expect to generate more than $250,000 on your first year, reach out to me. We can have it on the show notes or my email, my direct email is pretty simple. It’s eonem at gatida.com and what we can do for you actually is that we’re part of the Amazon agency program. So it’s a program that, you know, for Amazon partner companies like Gatida.

22:42
where if we are able to identify new sellers that want to come into the marketplace and generate, expect to generate at least $250,000 in the first year, we’re going to apply for you to be part of this program. And what’s going to happen if you get approved is that Amazon will provide you an account representative. And typically these representatives cost $2,500 per month, which is $30,000 a year. But with this program, the benefit is you’re going to get that first year for free. So that’s the savings.

23:11
of $30,000 that you, once again, you save cash, right? But in addition to that, the value is that you hopefully will perform better because it can help you settle into your category, your listing setups, all that stuff, but also, you know, it’ll give you access to lightning deals, prime deals, know, prime event deals, or prime exclusive, I think they call it PED now, prime exclusive deals, and then also the Amazon has special email blast marketing deals for brands and sellers. So,

23:40
you pay less or you pay zero, which is also a good price and hopefully perform better as you settle into position, at least on your first year. So that could be a third layer to help you kind of get more edge, competitive edge, you know, in the market. So let’s say you sign up through you and we don’t end up hitting $250,000. Does that imply that we have to actually pay for the rep? No. No. No. It has to be kind of honest. Once again, if you’re not going to generate that, it’s probably not going to be a good business for you anyway.

24:09
I guess when everybody’s unhappy, was a deal. for the first year. for the first year. Then the second year, if you like them, you want to keep them, can keep them. not, if you didn’t get value, can detach. But at least it didn’t cost you anything. And if you really got a lot of benefit, that’s great. If you got no benefit, that’s fine. But if you really got a lot of benefit, you can really calculate the value and you want to continue with them, you do it with numbers, with data, backing that up. So you can get more strategic with your relationship with Amazon as you come in.

24:38
Of course, could be also other compliance issues where you got attacked, you got hijacked. They help you really with that much more quickly than seller support and stuff like that because they want to make sure you’re geared for success and revenue because guess what? They’re to get a bonus based on your revenue. So they got your back. That’s how they structure. They’re pretty much representatives that help Amazon generate more more revenue on the marketplace and they give them a piece of the action a little bit. So they got your back. That’s pretty much the structure. So what’s funny is I only ever talked to my Amazon rep when something goes wrong.

25:08
So would you consider this more like an insurance policy or is something that you actively have conversations with? Each one to their own. If you are really savvy and you’re smooth and you really need their input because you’re maybe a few steps ahead of them because you’re already an experienced seller, it might be good to have them just like an insurance policy. But if you’re really totally new, clueless of what’s going on, they hold your hands. That’s very valuable. see. Yeah. So it depends on your background. If you have zero experience, you’re coming in. Very valuable. If you’re already doing your fourth

25:38
account and brand that you’re so savvy and you’re actually a few steps ahead of them. But just like you said, insurance policy is something unexpected that happened and they have the insight, they have the ability to get a faster response somewhere in resolving it. It’s valuable, especially if it was free for the first year. So basically, if you’re a brand, let’s say you’re selling on your own website and you’re doing a couple million dollars and you’re looking to move on Amazon, that’s like the ideal case, right? Yeah. When you know that you’re ready on your first batch, you’re going to have inventory worth

26:06
couple tens of thousands of dollars and you’re probably going to rotate it a few times a year, you know you’re going to generate that revenue. So you tell them, I have an invoice or I’m sourcing, I’m bringing in 20, 30 thousand dollars. That’s kind of a baseline they can really say, okay let’s do it, let’s run this. If it’s a complete disaster failure, they’re not going to charge you. But in other words, when you can kind of show you have the experience or the resources to drive towards 250,000 up, you’re good to go. And then after a year, what happens? Like I mentioned, so you can either detach and stop it.

26:33
Or if you want to keep these guys, you pay. Okay, got it. Okay. So there’s no subsidy after a year. It’s kind of like a one year drill essentially. Okay. Yeah. Yeah. It’s pretty generous. Yeah. Got it. Okay. Cool. All right. We covered three layers. Sorry. Is there another layer or? No, that’s it. Now we can touch the layer of, this is just to kind of, I would say to generate the business, launch the business, have a business, which is the most critical thing and I guess most obvious thing. So that’s a setup.

27:00
But I, just to be fair, I kind of live in the world of once you already have a business, because you’re always looking forward, we’re in the business of always looking backwards. That’s kind of what Getida does. Right? So we’re in the world of auditing. What just happened? All these transactions, what’s going on? So, you know, so for sellers, once you already generate all this revenue, 100,000, 1 million, 10 million, it doesn’t matter. What happens is you’re to have to reconcile all these transactions, especially on Amazon, and especially if you sell on FBA. So you use Amazon’s fulfillment services.

27:30
So if you never heard of it, now you hear of it, if you heard of it before, you’re not sure what it is, I’ll give you, guess, a few fundamentals to consider and the basics so can actually take some action and get some money back just from listening to this because I think it’s viable. But before that, I’ll give you a little bit of a quick overview and context of what this all means. So Steve, you sell on Amazon, you know what all about, so I’m going use you as a name and reference just to make you more human.

27:57
Steve is selling on Amazon FBA, he wants to send to Amazon 1,000 units. So he sends 1,000 units to Amazon’s fulfillment centers. And Amazon, instead of receiving 1,000 units, they only receive 990. So 10 units are missing. It’s up to the sellers to actually discover that. Open a case with Amazon. They’re going to probably ask for some documentation. It could be an invoice or packing slips or proof of delivery. And then they’re going to investigate where the missing 10 units are. If they find it, great, you can sell it.

28:25
make your money, know how your feelings, and not lose anything, But if they cannot find it and it’s deemed to be lost inbound, they’re going to generate a… they have an insurance policy and under the insurance policy, they’re going to provide a reimbursement for the loss. And when they provide a reimbursement for the loss, what’s nice about it is they don’t pay you your cost value, they pay you the retail value as if you sold it on Amazon. So you’re kind of converting immediately a double negative to a double positive. Because when they pay you, you get your money back, plus you make the margin.

28:55
So if you don’t get everything that you owed, you’re kind of losing your costs and the profit you would have made. So that’s kind of the first layer and basic layer that most sellers can understand about Amazon discrepancies. The next layers are once your inventory is inside Amazon’s fulfillment centers, inside all of a sudden units get lost, damaged, destroyed, disappear, disposed and overcharged with fees and also between the centers. Sometimes Amazon might ship your products from California to Kentucky to Nevada.

29:25
to have that one or two day prime shipping spread, same issues happen. Units get lost, they get damaged, they get disbursed, all these things. And also between the fulfillment centers to the consumers once the orders come in, not all the orders get received by the consumers or the customers. Also from the customers back to Amazon with all the refunds and returns. And also from the fulfillment centers of Amazon to you if you ever remove your inventory from Amazon. So all these logistics fishing points, the sellers have to be on the lookout to find all these discrepancies.

29:52
And of course, once they have the mathematics, they show it to Amazon, Amazon will reimburse for all these losses and issues. So high level to keep a basic, you can go up to 18 months into the history of your transactions, into the past, to find all these issues and get a recovery. You could just visit our, know, get to our YouTube channel, have a lot of content about it and… just Google on YouTube, we did so many presentations, how to teach sellers, how to, you know, kind of step by step check for all those things independently so they can get all these reimbursements and these refunds.

30:20
But for now, just for this episode, I’ll give you, I guess, the first one, the first basic layer with the shipments. So if you never heard of it, never did it, once you finish off listening to this, just visit your Amazon Sell Essential account, go to Under Inventory, right? They have the bar menu of all these elements. So look for Inventory, Manage FBA Shipments, and you scroll down your shipment log, and if you see a shipment that, you you shipped a certain amount of units, and it got received and closed, and it has less than what you shipped, open that up.

30:50
And over there you have the drop down menu to tell them, oh I didn’t ship those units or I did ship and it’s missing, please investigate. If that’s the case, you choose that. You provide the documents that they’re gonna require. You open a case to investigation. And of course if they deem to be missing a loss, they’re gonna reimburse you. So now you know step by step how to take action at least on that. Before you go on, I’ve actually never done it manually before since we always use you guys. Is it that simple though?

31:17
as just pulling down the drop down menu and filing a claim, is there any more things you need to send in? Yeah, documents. They might tell you, now give me your invoice or give me a packing slip or give me your proof of delivery. So you’re to have to spend time. It’s like bureaucracy. You want to your taxes. It’s very simple. What you made versus what you paid and what you overpaid, they give you a refund. That’s on mathematical level, basic. But all the documents around it, your W-2, your K-1, 1099, I don’t know if it’s a stranger to anybody listening to this.

31:46
But these all these documents you got to provide the IRS so they can say, OK, we did all the adjustments. You actually owe the credit or refund. Here’s your refund. So with the shipment, all these documents say, OK, they gave all the demand. They crossed all the I’s and T’s. Now we’re going to go investigate. It is just for them to investigate. And then if they find a grade, the auditory inventory make money. If not, they give you the reimbursement. So on the technical level, to find it, to see it, it’s kind of basic. But there’s document handling that can make it more convoluted. And if you have

32:15
Low volume, it’s manageable, but as you increase in volume and send more more, it just becomes a critical mass that it’s hard. I see for most companies, it’s hard to scale that up. just, you know, we have customers that do over a billion a year on FB and Amazon. They send numerous shipments per day and it just becomes a colossal thing to reconcile thousands if not tens of thousands of shipments on yearly basis. So they need good heavy infrastructure and a framework with a solution that helps them to have it real time, nonstop.

32:45
That’s what we do for our big ones, our big clients, but also all the way to the new sellers that have just won in the blue moon. We covered that also very easily. What is the timeframe for settling one of these claims? So once you open it, how long does it take to resolve? So typically for the shipments, typically within 24 hours to four or five days. Okay. You know, the response time should be, sometimes it could be a few hours and boom, it’s all good. But on average, maybe 24 hours for them to reply with yes or no.

33:13
So if it’s an O, it’s an O, okay. But if it’s a yes, they’ll process the reimbursement within 24 hours to four or five days typically. Is there anything that you can do if you get reimbursed and then they find your inventory later? There was this one year where they lost a lot of our inventory and we got paid for it. But then as soon as the holiday season ended, they miraculously found it and then they subtracted all the earnings. there They call it reversal, reversal, yeah.

33:41
Is anything you can do to combat that? Because it is still lost sales, right? Yeah, so what you only want to do to combat that is have a good product and a good listing so can sell it. Simple as that. Go back to fundamentals, no way around it. Okay. All right, so that takes care of that. What other levels of auditing would you suggest? So another one is that, I guess it becomes a bit more sophisticated, so I’ll try to keep it simple.

34:09
This one is regarding the fulfillment fees. When Amazon charges you a fulfillment fee, they charge the sellers based on the weight and the mention on the product. So let’s say your product is supposed to be 10 ounces and only 18 inches and because of that, Amazon is supposed to charge you $6 every time you sell a unit because they’re going to pick it from the bin, they’re going to package it in a box and they’re going to ship it out or fulfill the order. So they’re supposed to only charge you $6 but it can be that for whatever reason, Amazon has the wrong data.

34:39
of the weight and dimension. So instead of being 10 ounces and 18 inches, in the system somebody, there’s a typo, or maybe it’s 180 inches. Or instead of 10 ounces, it’s 10 pounds. So because of that, instead of charging you $6, they’re charging you, let’s say, $10. So they’re overcharging you $4 per unit every time you sold the unit. You sold 10,000 units, that’s $40,000 of fulfillment overcharges. So if you’ve never heard of it before, yes, this exists. And what you really got to do is,

35:08
Go to Amazon, go to your listing and see what is the fees that you’re paying, right? The calculated fees. But also look what are the weighted dimensions that they think your products are. And then compare with what they actually are. You should have it from your factory if you’re sourcing. But if not, just take a tip measure and a scale and check it out. And see if there’s a discrepancy because if there is and it’s a few ounces away or a few pounds away, then, you know, it could be that you’re overpaying.

35:37
So what you do really when you find that discrepancy, you open a case with Amazon, say, hey, this is my ASIN, this is my product, I need you to do a bin check and re-measure it. And once they re-measure it, if they find that’s really, you know, the calculation is incorrect, they’re going to adjust it to the right weight and dimensions. And from that point on, they’re going to stop overcharging you. So you save all this margin, which is very, very important long term. And then if they overcharge you, you’re to be eligible to get a recovery or refund for these overcharges for the past 90 days.

36:07
Are there alerts that you can set up to detect this? Because sometimes it happens out of the blue. It’s measured correctly and then one day it’s measured incorrectly. So for us what happens is when I use this Connect to Getita, anytime that happens, we just immediately… So let’s say you are live with… Once again, just to recap on Getita a little bit to give context. It’s free to join Getita. It’s free to stay with Getita. There’s no subscription. Actually, why don’t you tell the audience what Getita is? Actually, we didn’t even go through that. Yeah, so…

36:36
Okay, so get to know what we are. We’re a technology company and our mission is really to help sellers get the maximum FBA reimbursements and refunds that they’re eligible to receive. We kind of do it in three ways. First way is education. We educate sellers all over the world so they can do it themselves and they get it. That’s great. They never use us. It’s all good. Second option is they can just sign up. They can use us and we can do all this headache for them and they only charge, they only pay us if we’re successful. We only charge a fee based on recovery. So, you know, we charge a 25 % fee.

37:04
So let’s say the first 30 days that you use Getita, we get you $100. So we’re to charge you 25%, which would be $25. And then the next 30 days, we get you $0, you pay $0. So it’s very convenient. it’s because it’s performance based. never have to kind of babysit the bill and say, am I using it, am using it? Because there’s no subscription. So that’s kind of the second that we could do everything for everybody. The third option is kind of in between. The sellers do as much as they can on their own to get all the refunds. And then they can have us as a backup.

37:31
So anything that they’re missing out on, we do a 90-day backup system where they have 90 days to take care of all these issues. Any issue, discrepancy that becomes 90 days and older, we come in as a backup and open a case and reconcile it and get the refunds for the sellers. And only if we’re successful, we get rewarded. So with these kind of three options, we fulfill our duty and mission to make sure the sellers are getting the maximum they can get through education and collaboration and partnership, partnering with the seller. It doesn’t have to be us or them. It can always be together.

37:59
And yeah, so once you… so go back to what we’re discussing. Once you connect to Getida and your account is set, anytime that Amazon changes the fee structure on your ASIN, right away we open a case, hey, today this is the winning dimensions in the fees, but yesterday was like that, please explain why or remeasure, something’s up here. So it’s kind of real-time auditing, so you kind of have it resolved in real time, so you have to really think about it, setting and forget it kind of situation.

38:27
Alerts, I’m not aware of any other alerts. For us, it’s like holistic. Alert only means that now you have to spend time and take action. But if you have a solution like Getida, it’s door to door. You have to set it with Getida once and you’re done. Then you can really focus on what I call again, the business which is looking forward. How much margin would you give yourself in terms of package size and weight in order to not accidentally go to the next higher tier? you understand Only the margin of error? Yeah.

38:56
So that’s less of the issue if you’re kind of hitting the edge. The issue is, I’ll give you two examples just to educate the sellers a bit more why these things happen. One option is that maybe you’re selling a handbag. And so you shipped Amazon to FBA, it’s all airtight, as small and light as it can be, that’s great. The problem might be is that when a customer orders it and then they send it back to Amazon, they get a refund. So it’s brand new, never touch it, never use it or whatever, but they open the packaging.

39:26
And once they did, they added it to the handbag, they added the strap. So now what happens is Amazon is gonna take your product, and from time to time they’re gonna scan it into a big machine called Cubic Scan Machine. And then now when they scan it, this handbag, instead of having its real original dimensions, the strap is adding 30 inches. So the computer gets confused, it’s adding 30 inches to the dimensions of the product, and all of sudden from that point on Amazon starts to overcharge you. That’s just one kind of example. Another one is that, you know,

39:55
You send your products in with instead of shrink wrap, you put it like with these nylon, what do you call those for? Especially for apparel. What do call those? The nylon you put on it. You’re asking the wrong guy, Yoni. So, you know, when you have shrink wrap and shrinks, but you have a regular plastic wrap, it’s fluffy. It’s all over the place. So it’s adding all these inches and that’s confusing. So it’s not a good practice to have just plastic wrap that is inflated or just loose, nothing loose in general.

40:25
Another option is that maybe you’re being attacked, right? We talked about attacks and hijacking earlier. Another sophisticated way you can get attacked is that, you know, you and me, Steve, we compete on the same product, right? We try to sell for $30. I also sell for $30, let’s say. So what I do to attack you is that I take your ASIN, I put it under my SellOCentral account, I list basically your product on my account. I never offer it. Only thing I do is pretty simple. I just change the wedding dimensions of the ASIN.

40:54
Right? So instead of being 10 ounces, it’s 100 ounces. Instead of being 18 inches, 100 inches. So all of sudden, the system absorbs this new data. And then from that point, they’re overcharging you. You never bother to check. You never bother to do anything. We’re selling the same price, but I’m making margin in bank and you’re being overcharged with fees. So you’re getting wiped out. So it could be an attack. That’s just another example. So that’s on the strategic, you you’re so close to so far, it’s more like how you send it in. Make sure there’s never kind of anything loose or when…

41:23
customers are sending it back, maybe give them instructions to send it away so they don’t kind of send it back in a clunky way. And of course, just have your eyes on it because you might be getting attacked. Incidentally, if you guys are listening to this right now, all this stuff is tedious and detracts from you actually working on your business, which is why, and I’m not just saying this because I’m a Getita customer, but it’s like a no brainer setup because you don’t pay a Getita unless they make you money. Do you want to tell people what the fees are?

41:52
What, 25 %? Yeah, so high level, to make it simple, there’s a price point, on pricing there’s three options. If you do up to 10 million a year in revenue, it’s classic 25%, no strings attached. You can cancel it anytime. If you do over 10 million, we give a large volume seller discount, so it’s 20%. Once again, no strings attached. But you try us out, you like us, you really feel comfortable, you want to go long term, we could do a two year upgrade agreement and we could go lower. So it really depends on the comfort zone of the sellers. But the main idea is that

42:21
Our mission is that really to give you something you never had before. So we’re happy to educate you as much as you can so you can try to do as much as you can on your own and then back you up. Of course, if you really realize and calculate that opportunity costs, your time is much more valuable running the business because that is the business and it moves all the needles. And it’s not worth your time to spend time looking back or you or your team. So you’re happy to just pay a fee but realize that this saves you a lot of time and that time is spent.

42:49
making money and running the business and together you get a better outcome. And it really sounds like Amazon’s trying to encourage new sellers by giving back 5 % and they’re really trying to get you to drive traffic back to Amazon with this 10 % bonus from external traffic right now. So ironically with the price increases and everything, it’s actually pretty decent time for you to get started on Amazon because of these incentives that Amazon’s providing.

43:15
Yeah, one more thing about percentage that I want to add is that if you get 10 % here and 5 % there and there’s no selling fees basically, you eliminate it at least for the first million and then you audit, you use Getita for example and just to give people some idea what is the potential with this, on an annual basis, we see that the discrepancy rate ranges between 1 % to 3 % from revenue. So for your first million dollars, you generate million dollars. Instead of paying 15%, you got $150,000, you get that back. But with Getita, we add another

43:45
let’s say one or two or three percent back with refunds or reimbursements, you get anywhere between $10,000 to $30,000 back. So instead of getting, so you, $150,000 from all these cost savings you get, you get another, let’s say $30,000 with reimbursements, so that’s $180,000. You save $30,000 because you have an Amazon account rub, which helps to more sales and stuff like that, or protects you if you got a hijack. And then you make a regular margin that you expect it to make.

44:11
So if you’re generous for the first million, if you were optimized, right, in a really, really good way, unless your margin is 20%. So instead of only making 200 grand, you’re gonna make 400 plus grand because you optimize and you listen to Steve Chiu in this episode, for example. If you really optimize and touch every layer, that’s a good way to look at it. Cool. Well, thanks, Yoni, for providing those insights on what’s going on Amazon, how to save money. I think it’s especially important right now with everything getting more expensive, inflation,

44:41
just the general environment. thank you for the tips. got it. My pleasure. And where can people sign up? I think we have a special offer for your followers. don’t remember what it is. Do you remember what it is? I know it’s not the amount. I know it’s $400. So not only that it’s free to join, we prepared a $400 offer for your followers. So the first $400 that we get in reimbursement are actually free. You’re not going to pay anything.

45:07
That’s a guarantee. You can have $400 extra in your pocket. After $400, if you want to leave us, you can leave. If you want to stay, you can stay. I believe it’s gettida.com forward slash… I’ve got the URL. I will post in the show notes. Yeah. Got it. Yeah. So $400 for free, essentially. If you’re already selling on Amazon, it’s a no-brainer to sign up. Yeah. Just to make it simple, you have the link. But if you’re just listening to this, driving a car, gettida.com. When you do sign up, just put the name Steve Chu. We’ll take care of you. Okay. Sounds We’ll activate the $400. Yeah. That works too.

45:34
That works too. Well, Yoni, hey, thanks a lot for coming back on the show, man. Appreciate you. Thank you. Thank you.

45:43
Hope you enjoy that episode. Now, whenever Yoni comes on the show, he always offers everyone $400 in free reimbursements. And basically, this is free money that you can redeem by clicking on the link in the show notes for this episode, or by going to mywifecoupterjob.com slash getida, mywifecoupterjob.com slash getida. For more information about this episode, go to mywifecoupterjob.com slash episode 508. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com.

46:13
If you want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go to SellersSummit.com. And if you are interested in starting your own e-commerce store, head on over to MyWifeQuarterJob.com and sign up for my free six-day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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507: Budget-Friendly Ecommerce Tips That Will Double Your Sales With Chris Shaffer

507: Ecommerce Growth Hacks And Where You Should Be Spending your Marketing Budget with Chris Shaffer

Today, I have my good friend Chris Shaffer on the show.   Chris works with Scott Voelker over at Brand Creators, and he consults with dozens of e-commerce companies and owns a bunch of his own as well.

Chris always brings a unique perspective on what’s working in e-commerce, and he’s the type of guy who always gets his hands dirty.  In this episode, we discuss what’s working and how to maximize your marketing budget.

What You’ll Learn

  • A better way to grow your sales outside of driving more traffic
  • The number one mistake that most ecommerce business owners make
  • How to grow your business as efficiently as possible

Other Resources And Books

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Transcript

00:00
You’re listening to the My Wife, Quit or Job podcast, the place where I bring on successful bootstrap business owners and delve deeply into what strategies are working and what strategies are not with their businesses. Today, I have my good friend Chris Schaefer on the show. Chris works with Scott Volker over at Brand Creators, and he consults with dozens of other e-commerce companies. Now, what I like about Chris is he does the work himself and has low-level knowledge on how to do everything. As a jack of all trades, today, Chris and I are going to talk about how to grow your business as efficiently as possible.

00:29
But before we begin, I wanted to let you know that tickets for the 2024 Seller Summit are now on sale over at sellersummit.com. And the Seller Summit is the conference that I hold every year that specifically targets e-commerce entrepreneurs selling physical products online. And unlike other events that focus on inspirational stories and high-level BS, is a curriculum-based conference where you will leave with practical and actionable strategies specifically for an e-commerce business. Every speaker I invite is deep in the trenches of their business

00:57
entrepreneurs who are importing large quantities of physical goods, and not some high-level guys who are overseeing their companies at 50,000 feet. Now, I personally hate large events, so the seller summit is always small and intimate. Every year, we cut off ticket sales at around 200 people, so tickets sell out fast, and we’ve sold out every single year for the past eight years. If you’re an e-commerce entrepreneur making over 250k or $1 million per year, we also offer an exclusive mastermind experience with other top sellers.

01:24
The Seller Summit is going to be held in Fort Lauderdale, Florida from May 14th to May 16th of 2024. And right now, this is the cheapest tickets will ever be and the prices are actually going up very soon. Also, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, it’s actually available on Amazon at 38 % off right now. My book will teach you how to achieve financial freedom by starting a business that doesn’t require you to work yourself to death. And you can still get my free bonus workshop on how to sell print on demand.

01:53
and how to make passive income with blogging, YouTube and podcasting when you grab the book over at mywifeclutterjob.com slash book. So go over to mywifeclutterjob.com slash book, fill out the form and I’ll send you the bonuses right away. Now onto the show.

02:14
Welcome to the My Wife Clutterjob podcast. Today I’m thrilled to have Chris Schaeffer on the show. Now, Chris is someone who I’ve known for a long time now, and he’s actually helped run the masterminds over at Seller Summit for as long as I can remember. And he actually spoke at my 2023 event last May. Now, Chris consults for dozens of e-commerce businesses. He’s got a bunch of his own brands as well. And what I like about him is that he always brings a unique perspective on what is working in e-commerce.

02:43
And he’s also the type of guy that gets his hands dirty. He actually does the hard work. So in this episode, we’re gonna talk about what’s working in e-commerce and what’s not, and maybe some of the trends that he’s seeing. with that, welcome to show, Chris. How you doing? Good, man. How are you? I’m good. I’m so glad that both you and Scottie V were able to attend the Seller Summit. Always makes me happy. I know. It’s always nice to see you. It’s so weird because…

03:10
You and I don’t interact that much. We’ll message back and forth on Facebook or whatever. So it’s nice to see your smiling face or hear your smiling voice, I guess, if we’re listening to the podcast. But it’s always good to connect, Well, I’m kicking myself because I looked in the archives. don’t think I’ve had this your first time, right? I think so. Yeah. Something wrong with that. It’s my bad. I should have you on over Scottie V any day of the week. So any time you want, man, just let me know. I know some of the people listening.

03:40
have probably seen you online through your association with your outspoken business partner. Are you two still doing brand creators together and how are you allocating all of your time with all the different projects that you got going on? So the nice thing is that a lot of the stuff that I do in the e-commerce world has set me up from a systemization standpoint and the fact that you can automate a big chunk of that, which I know you’re a big fan of, has given me enough time

04:09
to be able to do a lot of the things that I want to do with brand creators. We’re absolutely still doing it. We’re still cranking over at brandcreators.com, the Rock Your Brand podcast, all of those kinds of things. We do a live video at least once a week, sometimes twice a week, depending on what it is that we’re doing over on the brand creators YouTube channel. And the whole point of that is to help people take what is a side hustle stream of income and turn that into a full-time income, whether they want to replace their income, whether they just want more money to pay their bills, whatever that is. And a lot of that does revolve around.

04:38
but it also involves a lot of the things that make e-commerce tick like content creation, some of those kinds of things and a lot of the nerdier things like you and I were just talking about diving into the numbers to understand how different platforms like Amazon work. How does Etsy work and how can we leverage those to our advantage as either people who have an e-commerce business, which everybody listening to this podcast either has one or wants one or take an existing side hustle. have like a niche website, right? A website that is a contest.

05:07
content-based website and not just monetize with ads, but add e-commerce as a component to that to really shore up that income stream and start to grow that without having to constantly create more and more content. Now we both know that selling on the marketplaces like Amazon has just gotten harder and harder over the years. And I know you have some clients that are selling on Amazon, have their own brands and that sort of thing. What are you focusing your efforts on right now in helping those companies with?

05:36
What’s working versus not working right now? Yeah. So the biggest thing, and I think this applies to Amazon, it applies to Walmart, it applies to Etsy. People think mostly about traffic in those ecosystems because that’s the one number they feel like that they have control over. And what we’ve been able to do in the companies that I consult with is not increase traffic, but increase conversion rate. And as a result of that, we’re up

06:02
247 % just this year without having to spend any more on ads, without launching more products, without SEO-ing my brains out on a daily basis. I know I just use SEO as a verb, right? Like without going in and changing keywords all the time and trying to find that one keyword that’s gonna make us rank perfectly and do all of these things. We’re focusing on the thing that actually drives the highest quality traffic from our platforms. And that’s made a huge difference for us in the people that I’m consulting.

06:31
So interesting. So when you say traffic on these platforms, you’re specifically referring to keyword research, right? And ranking, right? Well, when people, when, yeah. So when people think about how do I get more sales on Amazon, how do I get more sales in the Walmart marketplace? How do I get more sales on Etsy? The there’s kind of two things people feel like they have control over. The first one is going to be how much traffic is coming to that listing, right? If I find a better keyword with a better keyword research tool,

06:58
then I will rank for that keyword and all of the people typing that in will come to my listing and I can get more traffic, which means I can get more sales. The other side of that is I can turn on ads, right? I can run sponsored product ads. I can run Etsy ads. I can run ads inside the Walmart marketplace. And that’s another way that I can drive traffic. And those are all fine and good. I love traffic, right? I’ve spent tens of millions of dollars on pay-per-click across Amazon, like every platform that you can imagine. But at the end of the day, if that traffic isn’t

07:28
the right person coming to your listing, Amazon’s not going to care. And if you really want to rank highly on these platforms on the organic side, which is really where everybody wants to rank, right? You don’t want to spend all of your money on Etsy ads, Amazon ads. You want to get that organic traffic coming in from Amazon, Etsy, Walmart to that listing. If you can get that, that’s what everybody’s after. And what they think they need to do is find that perfect keyword. But the goal of any search engine is to serve the user.

07:58
Right. And if you think about something like Google, if we’re creating content for Google, the best piece of content that we can create for Google is something that completely answers the question that the searcher has. Right. So if somebody types in Ken chickens eat cherries, they want to know obviously Ken chickens eat cherries, but they’re also going to have a bunch of follow-up questions. So if we’re creating a blog post to rank on Google, that’s the route that we need to go. The marketplaces, Amazon, Etsy, Walmart, they don’t function like that. Their goal is not to answer your question in that way.

08:26
Their goal is to show you as the person searching on the platform, the product that you are most likely to buy. Does that make sense? You know, what’s funny is what you said is people think that they can control the traffic or they believe they control the traffic. I have the complete opposite position. Like you have full control over your listing and making it and getting it to a high conversion rate. You have very little control over the keyword research and the keyword rankings. I mean, concrete. Yeah.

08:54
And yet what do you see people do every time you talk to somebody about selling on Amazon, selling on Walmart, selling on Etsy? What do you hear people asking about? They say, what’s the new keyword research tool that’s going to help me find that one keyword that’s going to help you rank higher on the platform. And what they’re missing is the volume, the demand for those keywords. One, any of these keyword tools, no matter how good they are. And there’s some really good ones out there. They don’t know that data, right? It’s usually based on estimates. And so it can give us good directionality, but

09:24
They’re forgetting that not all traffic is good traffic. That’s number one. And number two, if we think about the goal of the search engine itself, whether it’s Amazon, Etsy, Walmart, right? Somebody’s typing in to the search bar. That’s their search engine. What is their goal? Their goal is to show the product that is most likely to result in a sale. If we think about it that way, then what is out? What is the best way to do SEO on these platforms? It’s not.

09:51
to worry as much about those keywords. And I’m not saying keywords aren’t important. Don’t, don’t misquote me there. But if the goal is to show the product that’s going to sell and our product or our focus is then on conversion rate. And that’s what they’re looking at. Then if we can improve our conversion rate, we give them the signal that they need to say, Hey, Steve has red t-shirt in his title. Chris has red t-shirt in his title. Awesome. If we’re both equal in that.

10:21
Then that moves us down the chain to the other things that they’re looking at. Right. We both qualify to show for that. So then how does Etsy, how does Amazon figure out who to show? They’re looking at how many of those people are turning into sales. Some people refer to that as like traffic efficiency. The easiest way to think about that is conversion rate. If I get nine people out of a hundred to convert and you get eight people out of a hundred to convert for red t-shirt, I’m going to rank higher than you for red t-shirt because Amazon is saying Etsy is saying Walmart is saying

10:51
hey, this is the listing that’s most likely to sell. When somebody wants a red t-shirt, they want Chris’s listing. They don’t want Steve’s listing to the same extent. So when someone comes to you and says, hey, my conversion rate isn’t that great, what are the first things that you look at in order to fix that listing to increase that conversion rate? So the first question would be, what is a good conversion rate? And the answer is, in typical Chris Schaefer fashion, if you guys know me, it depends, right? It’s going to vary from platform to platform.

11:20
What I’ve seen on Amazon is that if you’re in that 10 to 15 % rage, you’re doing pretty good. Although I have some listings that are doing 20 to 25 % pretty consistently and hit 30 % plus last year. And if you guys aren’t familiar with where to find conversion rate on Amazon, they in typical Amazon fashion, don’t call it conversion rate. Like everyone else in the world, they refer to it as unit session percentage for whatever reason, because somebody that’s very engineering minded, I guess, was in charge of creating the analytics dashboard for sellers.

11:49
I don’t know. Etsy will refer to it as your conversion rate. Um, but you can also just calculate this by looking at the number of people that have seen your listing and the number of units that you have sold. Amazon will give you that. So on Amazon, you’re seeing 10 to 15%. I would say a really good listing is converting at 20 % plus on something like Etsy. 5 to 8 % is kind of that high end of average. The average that I’ve seen there is about three, but if you can get it above 8 % on Etsy, you’re doing pretty well. And Walmart kind of falls in between those two, at least in my experience,

12:19
Um, I’m a little bit less experienced with Walmart as a platform. I’m only about a year into playing with that, but I’m seeing it kind of falls somewhere in between those two. Amazon tends to be the highest converting then Walmart, then something like, like an Etsy. And so the question then becomes, okay, if we’re not in that range, we’re above that range, awesome. Like I’d say turn off this podcast, but I’m sure we’re going to get into some other things, right? You don’t need to worry about conversion rate, but there’s going to be some other nuggets that you’ll pick up out of this. If you’re below that range, then what is the reason?

12:48
that it is low and it really boils down to one of two things. The first thing is, are you getting the right traffic? So you’re getting traffic, but they’re not converting. And this is where it gets a little nerdy for a lot of people. And they will tend to just say, I don’t want to do that, but there’s a very easy way to understand this. You need to look at. If you’re on Amazon, your ads report, right? What keywords are driving traffic to that listing? And there is a search analytics report in your brand dashboard. If your brand registered.

13:17
I haven’t found that to be very useful, but it can at least give you some directionality. Like because they also include things like where you’re suggested as a product, as the keyword, it’s not quite as useful as what you’ll find on other platforms, but the ads data will tell you the keywords that are driving traffic. And so our very first job, go ahead. I was just going to say, you know, I think we’ve covered Amazon on this podcast plenty. Just curious how you do this on Etsy.

13:43
So it’s the same, the same process, right? So for Amazon, for Etsy, you’re going to look at your paid ads data. And on the Etsy side of things, they actually have a really in-depth dashboard now. It’s their beta search results report. I think it’s called beta search analytics. And that will give you the organic keyword data in the same report format type that you’re getting for the paid side of things. So if you’re getting organic traffic on Etsy, you get a little bit of a better glimpse.

14:11
And so whether we’re looking at Amazon, Etsy, Walmart, right? Walmart has what they call, I think it’s the search insights report is the name of it on Walmart. We’re going to look at that. And our very first job is just to say, is this keyword relevant? Right? Especially if we’re running ads, the, all of the marketplaces tend to open up a lot when we’re running ads to say, Hey, I know that this is a water bottle, right? This is an insulated water bottle, but maybe somebody would refer to this as a coffee mug, right? Just on the off chance. And if Steve is willing to pay for it,

14:40
Chris is willing to pay for it, then we’ll show it for coffee mug. And if he’s willing to keep paying us for it, then we’ll just leave that there. Well, do most people in your mind as the person selling the product think that a coffee mug, which I would type in for like a ceramic mug and a 64 ounce insulated tumbler that you could also use for coffee or the same thing, probably not. So our first job is to say, okay, if we’re running ads on these things, let’s turn those off. If those things are in our title, if we’re saying coffee mug and it’s not a coffee mug,

15:09
because we know that there’s search volume there and somebody could put coffee in our insulated Tumblr, then we need to take those out of the title, out of the description, out of the supporting keywords or out of the tags if we’re talking about the IT ecosystem. So if the conversion rate for that is, let’s say, 5%, would you keep it on there? Like, what are your thresholds for just keeping a keyword on there in the listing itself just for that traffic? And so the answer here is it depends. And it’s a little bit of a gut feel.

15:36
Right? So if we’re getting, if we have one click on an ad, one visit and one sale, I’m gonna leave it on, right? Like, I don’t care about that one visit. What we’re looking for are signs that it’s either well below our average conversion rate. And that’s why we need to know that number first. How well does our listing convert on average? And if it’s dragging down that average, then we need to say, is it relevant? If it is, then we leave it for now. And we can address that at a, at a later date. When we start looking at the listings, if it’s not like coffee mug for coffee Tumblr,

16:06
that’s converting at 5%. I think you said, and our listing converts at 10 % on average. I’m probably going to turn it off on ads or remove it because it’s not converting as well as the rest of the list. The only exception to that would be if that’s driving like all of my sales, right? That’s driving 80 % of my sales. Then I probably wouldn’t touch it. And I’d figure out how to make the listing more about a coffee mug. But the general rule of thumb would be if it’s dragging down the conversion rate, you at least want to seriously consider it.

16:34
Even if that 5 % is still results in a profit overall for that particular keyword? Potentially, right? And that’s why I said consider it. if we think about a different example, are you familiar with what they call flip-flops in Australia? In Australia? They’re different from flip-flops in the US? Yes. It’s another word for women’s underwear, right? It starts with a T, right? And so if…

17:03
That is driving traffic to our listing and that’s not the majority of the traffic. It’s not converting at the same rate. I’m probably gonna take that out if I’m a US based seller. Why? Because when somebody is typing that word in, that’s not what they’re expecting to see. And if I’m paying for that and it’s dragging down my conversion rate, I really need to take that out. Does that make sense? Yeah, yeah, that makes sense. Yeah. So the optimizations that you’re talking about for conversion rate right now is really just weeding out your highest converting keywords.

17:30
And then focusing on the keywords that are actually generating a high conversion rate for your listing, right? Yeah. So the first step there is, we getting the right traffic? Right. And so if we find something, if even if it is the right traffic, but it has low conversion rate. So coming back to the stainless steel Tumbler example, if that’s driving a lot of traffic, but it’s converting below our average conversion rate, that’s literally what the product is. And that then means we have a different problem. And it most likely means, and I’m, I’m bunching a bunch of issues into this.

17:59
But it means that we’re not meeting customer expectations. Right. So they get to the listing. They say, Hey, I’m looking for a 64 ounce insulated tumbler. That’s what it looks like in the photo. That’s what the title says it is. And then they get in and either it’s not 64 ounces or whatever, or there’s something that they don’t like about it. For example, the one that I’m holding right now has a plastic lid. Some people have a massive aversion to plastic, right? So they’d want only a stainless steel.

18:27
64 ounce tumbler. If that’s the case, we can’t really help them with that. But our job then becomes how do we craft our listing to more clearly explain and show what the product is and meet all of the customer expectations. And the biggest place where I see people struggling with this, there’s three main places. One is the title. And typically what we see, and I think, was it three years ago now where Amazon rolled out new guidelines and they said, Hey, can you please just write your titles this way? And they actually created a format.

18:57
where you were supposed to put things in a certain way. But yet it still says water bottle, insulated water bottle, tumbler, yada, yada, yada, yada, yada. And I don’t know if you know this, Steve, but Scott and I over at Creator, we actually ran a survey of buyers on Etsy. We surveyed a couple hundred buyers to get their opinions. And what I’ve noticed is this doesn’t just apply on Etsy because it’s e-commerce shopping behavior. It applies on Amazon, it applies on Walmart. And it corresponds with the changes that I’ve been making over the last year to the Amazon accounts that I work in.

19:25
to see that increase in conversion rate. And what buyers said on Etsy, 68 % of people said that they always look at a title and they rely on it to inform their click. So basically what they’re saying is I read the title before I click. And I think that’s what I want by the time that I get to the listing, 68 % of buyers. So they’re not just looking at the photo, they’re looking at the photo and the title. And if they can’t understand what the title is, or it’s confusing to them, they still might click.

19:54
But then when they get to the listing, it’s not going to match their expectations when they look at the supporting images, when they look at your product description, right? The other downside of that is if it’s not human readable, we’re writing it for the SEO robot, then you lose out on a huge portion of the people clicking through. So they don’t even make it to your listing to be able to convert because they go, I don’t know what an insulated water bottle, water bottle tumbler is, but I know what an insulated water bottle is. And even in 2023,

20:21
So many sellers make the assumption that Amazon is Amazon Etsy Walmart are operating on SEO from 1997 where you have to tell it everything and that they don’t understand plurals, that they don’t understand misspellings, that they don’t understand how to combine words. And I think a lot of that comes from the Amazon ecosystem where Amazon doesn’t really tell you how anything works. Right? Like all of this had to come out by trial and error. That’s how Scott and I met. We met in a, a S an FBA seller Facebook group.

20:50
back in 2013, 2014, um, because that was the only way you could figure out stuff. say, Hey, I did this test and this is what happened right now. There’s all kinds of podcasts that we talk about this stuff. Etsy on the other hand, if you read through their documentation, they very specifically spell out what’s in their search engine algorithm. They tell you what matters and we can then backwards engineer that to apply to everything else. And Etsy who is kind of the smaller player in this says, we understand plurals. We understand misspellings.

21:20
We understand that blue could be blue or any variation of blue, right? Cyan, like what I, I’m sure I just screwed up colors and offended everybody, but like any of the 900 variations of the word blue or shades of blue, they understand synonyms and antonyms. And so we don’t have to try to squeeze all of these things in to please the SEO algorithm. If we focus on creating a human readable title and a human readable product description, and we’re using relevant keywords, even if they’re not the exact same things we’re finding in keyword research tools.

21:49
as long as we’re selling well, we’re going to rank for all of the different variations of those keywords. And so the biggest thing I see or the most obvious thing comes up at the titles. And then there’s two other ones, but it sounded like you had a quick question. I think there’s different schools of thought here, right? So we were talking about ads and of course you don’t want to pay for keywords that aren’t converting, but then on the organic side and the order of the words matters on Amazon, right? Cause so recently I just- on Etsy as well.

22:20
I did an experiment with a data dive, which is Brandon Young’s tool. And I started entering in kind of titles like what you said, and it actually grew that listing almost 200%. Because it’s getting more organic traffic, I’m not paying for it. And maybe the conversion rate, who knows what the conversion rate is for those keywords are because Amazon doesn’t tell you unless you’re paying for them. But it did make a difference, right? Because you’re getting that traffic and you’re getting visibility, which you might not otherwise have gotten. Yeah.

22:49
The question in that case would be, all right, let’s look at your data, right? And see which of those keywords was driving that traffic if we can do that. And chances are, and I would be curious what it is, right? But if you look at Etsy, for example, basically what they do is they take the title and they break each word down into its own word, right? So instead of, if you typed in insulated water bottle, they treat that as two words because there’s a space in between them.

23:17
Which would mean if somebody typed in bottle insulated, you’d pass that test of qualifying, right? Cause you have both of those words. They typed in insulated bottle. You’d pass that test as qualifying. It’s then just a matter of how well you qualify based on the other factors. Does that make sense? And so with, with Etsy specifically, they talk, they have kind of a two tiered system. So the, the first way that it works. And I think I have a feeling just based on having sold on Amazon that they work fairly similarly.

23:45
where the very first thing is like a swipe yes, swipe no Tinder test of are you relevant or not based on the keywords in your title description and tags or title description and keywords, right? If we’re talking about Amazon and all they’re doing is they’re looking to say, do you have the words that the person typed in somewhere in your listing? If yes, then they move on to how much traffic do you have? What’s your conversion rate? What’s your average sell through? What’s your price point? What are all of the other, what are, are the personalization factors that we’re going to take into consideration?

24:13
Have they bought from you in the past? Where should we fit you in? If you pass that yes or no test, that’s when the rest of their algorithm kicks in. Amazon seems to work the same way.

24:25
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24:54
just sign up right there on the front page via email and I’ll send you the course right away. Once again, that’s mywifequitterjob.com slash free. Now back to the show.

25:05
So in your example that you just gave, insulated bottle, if someone typed in insulated bottle and your listing had bottle insulated, the insulated bottle listing would have a leg up over the bottle insulated listing. Potentially. So what Etsy says in their documentation, I, like using your- one knows, but yeah, yeah. Right? Etsy specifically says in their documentation, and it’s a very, you know, it’s a typical like tech company phrase,

25:35
half legal, half almost helpful. It says something to the effect of keywords towards the beginning of the title are weighted more. How close to the beginning of the title? Like how many, what is the beginning? Is it closer than the first half? We don’t know, but what is the most accurate way to describe this? And if we can use that, then as long as we have the other keywords or the other variations of those keywords in our title, description, tags somewhere, search terms.

26:04
then we’re likely to be relevant for it. And that’s when they really start to look at conversion rate and some of the other kinds of things. Yeah, yeah. Yeah, I would agree with that. All right, so we lost track. So we’re looking at the listing and it still wasn’t converting well, even though people were searching for insulated bottle. Yeah, so the first thing is to take a look at that title, right? Is it written in a human readable format to the extent possible, right? I’m not saying don’t include keywords, but.

26:33
Don’t just write insulated bottle, insulated bottle, insulated bottle, insulated bottle, thinking that that is going to be helpful. Right. If there’s 15 different ways to say insulate, you know, uh, 64 ounce insulated travel mug, uh, thermos, if it’s the thermos brand, right. Like any of those kinds of things, just write it in a human readable way where I could read it and have it make sense as a sentence. And then you’re 90 % of the way there in terms of SEO optimization for the title.

26:59
The other two things, and it’s weird to me that this is still such an issue, but Steve, what is the biggest problem with buying something online versus buying something in store? The being able to see it, touch it. Yeah. See a video. it up. Right. Like even, even people who are hyper, uh, aggressive about our future of e-commerce, which I’m one of these people says that you’ll never get rid of retail stores. The difference will be

27:28
Best Buy will stop being a place where you go to buy a TV and they will break it up into the Apple section, the Samsung section, the Sony section. You can actually see this in a lot of places outside of the U S where they have like a brand rep who’s it’s, it’s not the best buy guy. It’s the Sony guy and he stands in the Sony section and he explains to you all of the benefits of the different Sony stuff. And then they send you somewhere else to buy it. They send you to sony.com or they send you other places. Um, that will happen, but we’re also on the e-commerce side of this. And so how do we address that problem?

27:58
There’s two ways that we can address that problem. And both of these are, in my opinion, are criminally underutilized on the marketplaces because quite honestly, they’re kind of annoying when you’re creating the listings. The first one is your images and that same buyer survey that we were talking about on the Etsy side of things. So on a scale of one to 10, in terms of how much it influences the buyer decision, they were rated a 9.23 out of 10 in terms of their influence on it’s the number one thing that influences above price, above shipping costs.

28:28
Above pretty much everything else, that was the thing that drove the biggest influence on their purchase decision. And it’s the only way for people to experience the product online. So instead of just throwing up one picture or a bunch of lifestyle pictures that don’t really tell us anything or give us any more information other than, look, I can carry it while I’m jogging, right? Lifestyle photos are nice, but is there a way that we can use that to tell the story of the product? Can we show them?

28:57
in a product image that our bottle is 100 % stainless steel. has no plastic. Can we show them the inside? Why is that important? Well, what would you do if you were somebody who was very plastic averse and you were going to go buy a water bottle at the store? You’d take the top off and you’d look at the inside to go, this one’s lined with plastic. You’d screw the top back on, put their little product insert back in, and then pick up the next one and do it. I know because I’ve done it, right? The same thing applies to a t-shirt or handkerchiefs or whatever, right? They need to know

29:27
what it is and how it’s going to benefit them. And that translates both from the photos and the product description. And the biggest thing that I see people doing wrong on product descriptions is one, they’ll write like one sentence, right? Or two sentences, they’ll say it’s a 16 ounce insulated water bottle. They’ll basically repeat the title and the, you know, the product features, like the bullets from Amazon. And that’s pretty much it. The downside to this is that the only details you typically get about a product on an Amazon listing are like the technical details.

29:57
So Steve, could you explain to me fabric weights and how that matters? Probably. Do I have any idea what the difference is between two different weights of fabrics? No, unless I can pick them up, feel them and touch them. So too many people write feature driven copy. It has this weight. It holds 16 ounces instead of it keeps your stuff cold for 48 hours, right? Or

30:22
It’s made from this kind of fabric so that you can wash it hundred times and it’ll feel like the first time you ever put it on, right? It’s not that you don’t want to include the details about the product, but you have to include the benefits side of it as to why it actually matters to the customer. They’re not going to know what your special fabric weight is, but they are going to understand that they can wash it a hundred times and it’s going to feel like the first time they put it.

30:44
And if we can take those few small steps that can massively increase conversion rate because then they don’t go, I have no idea what this fabric weight is that they’re talking about. Or I don’t know what a cotton poly blend is. I don’t know what keep cool technology is, but I do understand it will keep my, my water cold for 24 hours. I do understand how it feels when I put it on and that’ll stay feeling like that. So there’s this popular water bottle. And the reason why it became viral was because in the listing, it said fits a full wine bottle.

31:14
and we’ll keep the wine cool all day. That was it. So when you mentioned like 16 ounces, I mean, this thing holds a bottle of wine, which apparently is what a lot of people want, I guess. I think I actually got one of those at similar someone. Did you? Yeah. And I like it. But then then the question becomes what size bottle of wine, right? Like a real wine person would say, well, does it hold a magnum? Does it hold a 750 milliliter bottle? Does it hold a you know, but

31:43
That comes down to what matters and how can we translate it to our customer? And what I see too often on all of the marketplaces, be it Amazon, Etsy, Walmart, wherever. And I also see this more on people’s websites, although it appears to be a little bit less of an issue on your own e-commerce store for some reason, is that they’re saying, okay, it has, you know, it’s made of this type of stainless steel. It will do this. It has this, whatever. And none of the benefits side

32:11
And if I can’t pick it up and feel the difference between yours that has one weight and the, you know, Scott’s that has another weight, which I would do in the store. I’d pick up both t-shirts and feel them. pick up both handkerchiefs and feel them. I’d rub them against my face to see how it feels. Right. Um, then I don’t have any idea what that means. And simply writing something like stain proof technology, right. Doesn’t tell me what that means. But if you show me a photo of somebody pouring red wine all over your handkerchief and then

32:40
you know, do a split screen on the other side of the photo with it coming out of the dishwasher, dishwasher out of the washing machine, perfectly clean. That explains the story to me, and I can then understand this isn’t something that’s going to stain and it makes it easier for the person to make the purchase decision. And that’s that’s really our job as people selling on whether it’s our own website or any of these marketplaces. Our job is to make it as easy as possible for somebody to buy from us. And when we’re not doing a few of these basic things, we’re making it significantly harder.

33:08
because then they have to go through the decision process of, this exactly what I want? And the answer is usually no. And that’s why we see even on e-commerce websites, well-optimized ones, abandoned cart rates around 70%. Why is that? Well, sometimes it’s because their cats build their coffee all over their keyboard or their baby’s crying in another room. But in a lot of cases, it’s because we haven’t answered all of their questions and we haven’t given them what they need to be able to make the purchase decision. And they’re worried that if they buy the product, it won’t meet

33:37
their expectations. What are you seeing in terms of the role of video in improving conversion rates? So that was something that was kind of interesting, at least in the Etsy ecosystem. They only rated that a four out of 10 in terms of importance. OK. I think the reason for that is at least within that ecosystem, it’s not very well used. And what we’ve noticed is when you have a video, at least in that ecosystem, they replace your thumbnail in search with the video.

34:07
which automatically draws some of these eyes in the search results and brings them to your listing. So as long as you’re doing the rest of these things, it’s not as important from a conversion rate perspective on Etsy yet, but it’s extremely important from a click through rate perspective, meaning the people who see your listing in the search results and click on it. If you’re the only one that has movement there, you’re much higher likelihood that they’re going to click on your thing versus just the standard boring product photo. In the Amazon ecosystem, I’ve seen video play a little bit of a bigger role. What I’ve noticed just on e-commerce in general,

34:37
is one of the things we added into our abandoned cart sequences for people who have their own websites are like FAQ videos. So instead of writing out all of the FAQs, which you can still do and you should do in that abandoned cart sequence, if you have a video about a specific product or just generally about your store, that’s a good enough place to start to down record three, four five frequently asked questions about what’s your return policy? You know, what’s the minimum order in the case of you, Steve, like what?

35:06
What are the things that people forget or don’t think about when they’re buying a product? If you have a specific product, then you can focus on answering some of the questions you’ve gotten specifically about that product. Like, look, you know, this water bottle keeps it cold for 24 hours or whatever it is and just reiterate that information. And we then just send that as a link in one of our abandoned cart emails. And we’ve noticed that’s our highest performing abandoned cart email, even over and above some of the like save 10%.

35:35
type coupon offers that you’ll typically see because what are we doing? We’re addressing the questions that people still have, which is the reason that they haven’t purchased yet. If we were standing together and I was looking at all of your, beautiful handkerchiefs, then we could have that conversation. You could say, Hey Chris, this is why it matters. This is why it feels this way. This is what will happen if you stain it. All of those kinds of things. have to figure out a way to have that conversation online and video is an extremely easy way to be able

36:01
So interesting, you use those types of videos in your abandoned card sequence? Huh, okay, I’m not doing that. Might be worth trying. What my suggestion would be, and I tend to see people massively overcomplicate email as well, they’re like, oh, I have Klaviyo or I have Drip and I can create all of these segmentation, start generic, right? Like start with return policies, start with whatever you think would be the reason that people are holding back, and then drill down to like the specific product level. If you have two or three products,

36:31
it’s really easy to do that at the product level. If you have 500 SKUs, it’s a little bit harder to do that at the product level. So for those people, I start a little more generic, just plug that into the sequence and see what happens. I’m curious what else is on the survey. So we talked about the image. Uh, we just talked about video now. Where did the title fall into that? So titles, uh, 68 % of people said that they always read the title and it’s one of the most important factors. I can pull up all of the, all of the data.

37:00
I’m just curious what the highlights are that survey, because it sounds like a pretty cool survey that you guys ran. Yeah. And we got a couple hundred buyers. One of the things that was the most interesting and it specifically pertains to Etsy, although I have seen similar behavior on Amazon, was one of the things that you’ll see is like, no one cares about your storefront because most of the traffic is coming from search to a specific listing. And one of the things that we noticed from that survey data was that actually people massively care.

37:30
about your storefront. It’s not where it’s not what’s going to drive the initial conversion, but if you have something that’s a repeat purchase or you are serving somebody with multiple products. So we have not only the water bottle we have, you know, let’s say it’s for a runner. have a, an armband. We have a bunch of other things that they can buy from us that they are coming to the storefront before they’re actually searching to see if they want to buy from that seller. And I want to pull up the number here. If I can find it.

37:58
just to see exactly what that data was. But essentially it was over 80%. And I think it was 96 % of the most frequent buyers said that that’s where they start. So one of the pieces of data that we asked for was the very first screening question was how many purchases have you made? If somebody said zero, they were screened out, right? If they said 14, I think it was 10 plus, I think is where we left off, which basically means one a month, maybe it was 11 plus.

38:28
Right? So they’re, coming and they’re buying on the platform once a month or more. Those people, the highest value customers were starting at the store front and saying, I’m much more likely to buy from somebody that I already know, because I don’t want to go through the process of trying to find that perfect product. I bought something from you and it’s perfectly logical. If you think about it, right? You’re, buy something for somebody, you know, your dad’s really into fishing, right? And you find a really cool fishing thing on Etsy. find a really cool fishing thing on Amazon.

38:55
something he’s talked about for the last six months since Christmas. Do you think you’re gonna go back to that store for his birthday gift? Probably, right? Do you think you’re gonna go back to that store the next time you need something fishing related? Probably, and that’s the same buyer behavior that we were seeing in the survey. There was a stat that I saw on Amazon, you know, with all the knockoffs and everything happening. It was like something pretty high, like 70 something percent of people actually look at the brand page outside of Amazon before making a purchase on Amazon.

39:24
So it’s pretty page, meaning their website, the website, yes, the website, they click into the brand. They actually check the website itself to see it’s legit before making a purchase decision on Amazon. I mean, I guess that makes sense. Um, yeah, yeah. It supports what you were just saying. And it’s, it really is a conversion rate issue then. Right. And it’s the same thing. They’re checking to see if it’s legit. And I I’ve seen the other thing happen as well. Right. Um, Steve, you’ve probably talked about like Lyft, Amazon associated Lyft.

39:51
where people run like national TV campaigns or they’ll get retail placement or they’ll run Facebook ads and all of a sudden their Amazon sales take off. It’s because they go to your website, they go, I’m not sure if it’s safe to buy from here. And then they go over to Amazon, they see that your product is on Amazon. I’ve even done this, right? Like, I’m getting a weird vibe from the website. You go over to Amazon, you’re like, I’ll buy it from Amazon because I know I can return it. I know I’m going to get it in two days. And I know that they’re not going to do anything weird or shady with my credit card. So it makes sense that that would happen the other way as well.

40:18
Yeah, there’s the halo effect for sure. Incidentally, this is why we always price our stuff cheaper on our own website though, because of that. So the hope is they’ll come to our page and maybe buy from our store, even though they feel more comfortable buying on Amazon. In most cases, people buy an Amazon, they just buy an Amazon, right? But sometimes, wait, Steve, you mean you don’t price it exactly the same on Amazon as you do on your own website and your cost restriction long ago. So I had a phone call last week with a pay with Amazon.

40:48
Yeah, with their team. Uh, we’re rolling that out on one of those sites that I consult for. And they were very offended that it was not priced the same. You know, like we can install this extension for you where it’ll, it won’t pull it from your website. It’ll just pull it from whatever the current price is on Amazon. They made it seem like it’s this big. like, it’s two clicks of a button people like it’s gotta be fine. Um, but you know, we, we do that just because of the difference in fees and the cost of fulfillment, right? Additionally, we offer subscription on most of the people that I, that

41:18
that I consult with, right? The vast majority of my day in the e-commerce world, at least, is spent with companies that operate on a subscription model. Yes, we sell one-time products, but we also have subscription products that people can buy. As much as I like Amazon and I like Subscribe and Save, I’d much rather they subscribe and save on my website. And so our standard pricing is lower than it is on Amazon, and our subscription pricing is lower than our subscribe and save pricing on Amazon.

41:43
And what we’ve noticed is there’s actually a lot of crossover between people who buy single purchase on Amazon and then end up buying and subscribing on the website. So what ends up happening for us is that people might buy one of our products on Amazon, but then they’ll buy bulk from our website because we give special treatment to them. But there was another question I wanted to ask you based on something you just said, why install that pan Amazon button? So we’re just testing it. There there’s three brands under that company. One of them only has two skews.

42:13
And so we figured, Hey, why not? They’re, bugging us about it. Like they’ve been calling us nonstop. I want to see because I’m a conversion rate nerd. Is it going to boost my conversion rate? And if it boosts my conversion rate from paid ads, from email marketing, from all of the stuff I’m doing on my own website, then we just have to make the decision of, well, is it worth it for the little bit of the extra that we pay on Amazon to have them fulfill it? Um, now, since you’re not paying the referral fee or any of those kinds of things, you’re just paying the fulfillment side of it.

42:43
It comes pretty close and we charge for shipping. We charge fixed rate for shipping. So it actually is essentially a wash, um, in terms of our cost. it’s, it’s at least worth the conversion rate test, uh, just to see. It’s been a while since I’d done this because, cause the new button is different than the old button. If you remember, there was a pay by, I can’t remember what it’s called anymore. Uh, did a test pay by Amazon or something. Now it’s a buy with prime or something like that. Right.

43:12
Buy with Prime, Yeah, now it’s Buy with Prime. Anyway, before, very few people were even touching that button. Because people who shop on Amazon, shop on Amazon. People who shop on your store, shop on your store. So I’m very curious what your experiment is like with the Buy with Prime button. Because it seems like, you’re right, from a cost perspective, it’s like a wash. But you are giving Amazon all your data. And it kind of makes them maybe go back to Amazon the next time. I don’t know.

43:40
I’m curious to see what potentially, but the upside of that is unlike somebody who buys from Amazon directly, I get all of that customer data. So they’re still going into my email database. They’re still able to be marketed to directly by us. Right. So to me, if it, if it increases our conversion rate slightly, it’s probably not worth it. If it increases our conversion rate, half a percent, 1 % from paid ads, that makes a huge difference. And then they’re in our ecosystem. And typically the reason

44:10
I can only really think of two reasons people would use that button. And it would be because they want to be able to get two day shipping, right? Or they just don’t quite trust your website, which I think would also be resolved with Google Pay, Apple Pay, right? Some of those kinds of things. But in a lot of cases, those only show on mobile unless you specifically set it to show on mobile and desktop. And all we’re looking at is, is there a way to increase the conversion rate? We know that when we added PayPal, a PayPal,

44:38
Single button option, which is essentially the exact same thing, right? It was the pay with PayPal button versus the pay with Amazon button or buy with prime. The naming at Amazon, you’ll need to you’ll need to figure out the buy with prime thing. You know, it’s essentially the same type of a thing. We saw a big lift like a 20, 20 % lift in our conversion rate with that. And it wasn’t that we lost people paying credit cards. We had essentially the same number of people buying with their credit card.

45:07
We just had a big chunk of people who didn’t feel safe giving their credit card information that said, I’ll do it with PayPal because I know I can cancel it at any point and it’s not going to be a problem. Especially with something like subscriptions, people are really weirded out. Even if you have in big bold letters all over the website, here’s how to cancel. We’ll cancel at any time. We really don’t care. Just let us know. We make it as easy as possible. We send you an email before your subscription is over that says, click this button to cancel it. We try to make it as easy as possible for people.

45:32
but people still have gotten burned once or twice. And they say with PayPal, I know I can just go into my dashboard and click the button and cancel it there. And I don’t have to jump through any hoops. I don’t have to worry about it. So if we see a similar lift with the buy with prime stuff, then I would roll that out to the other sites. But I don’t know that I’m expecting that it was really just to say, Hey, let’s try it. It’s like five lines of code and we have the product at Amazon anyway. Let’s see what happens. And then let’s see how our inventory levels are affected. If it does.

46:02
That is my biggest concern with it. Um, because as well as we are converting, we have trouble keeping inventory in stock at Amazon because there’s like a thousand units at any given time that are just floating around their ecosystem, not available to be sold. And so if we, if we do see a big jump in the number of orders from the website, you’re talking to another, you know, at 20%, 20, 30, 40 units a day that would be coming out of the Amazon inventory. That then becomes a potential issue that we would have to have to deal with. Cause

46:30
the last thing I want to do is run out of inventory on Amazon and have them not be able to buy it on the website where they already are looking to make the purchase. So it’s interesting. PayPal is actually a third of our sales, I would say, because people don’t want to type. But did you know, and I just kind of discovered this to hardware, I didn’t realize that PayPal charges three and a half percent when people pay by PayPal, unless you negotiate that down.

46:57
Which is not surprising. Yeah. They’ve always been high. I thought so they charge. Okay. Yeah. So commercial transactions is a 3.5, right? Yeah. And then if you’re just sending money, it’s the, the like two, two and a half or whatever. 2.9. Yeah. Yeah. Yeah. So you can negotiate all that stuff. I just went through this because I thought I had great rates with PayPal. It turns out like right before the pandemic, they raised the rates and

47:24
Apparently I didn’t get the email. I was thinking that, and I don’t audit my credit card reports all the time. I just negotiated a really good rate. Yeah. That is something that is hidden money for people. That’s something we did this year in two of the three brands that I was just talking about. And it was kind of a fluke because it wasn’t something we were thinking about doing. And then I started digging into the report and I said, these fees seem really high. And so we went to a bunch of different people and we’re now paying, I had to look at the number, but it’s less than, it’s less than 1%.

47:54
Um, and all it was pressing to a, yeah. Now when you, when you actually add it up, right. Because typically what you see is you’ll see like the Stripe, which is, know, 2.49 plus 20 cents or whatever it is. Right. When you go to break it out, there’s the actual credit card processor. And then there’s the merchant account fees, Stripe, uh, Braintree, like they’re all integrated. So you’ll see that as a flat rate, but I think with everything added in, it added up to like.

48:24
1.9 or 1.2 that sounds about right. You’re on interchange plus pricing probably. Yeah, and we’re just using Wells Fargo now because that’s who we had a business relationship with and it took an extra 30 seconds to set up because we already had a merchant account and so we’re just using them to handle the credit card transactions and they were even willing to negotiate on some of the things like charging you for failed payments. Right? So they

48:52
And want to say it was 20 cents, I think is what they were charging for like any credit card attempt. Is it well, like, okay. So we, run on a subscription basis. If you guys don’t correctly update the credit card information, when they have a new card, that’s going to run and that’s going to cost us 300 bucks a month. I know that doesn’t sound like a lot, but 300 that’s $3,600 a year. Like that’s a substantial amount of money, especially if you’re a smaller business. And I said, oh yeah, let us, let us look at that. And so we, you know, we weren’t able to get it to zero, but we were able to get it down on failed payments.

49:22
And on a few of the other things where we said, look, like there’s a chance that it’s going to run two or three times before they update it. If you don’t actively update it, like you can do in Braintree and Stripe, they’ll automatically update somebody’s card with your number when it’s issued. Wells Fargo wasn’t so sure if they were going to be able to do that. So we were like, that’s going to be an issue for us because that’s $3,600 out of our pocket plus the lost order. But a lot of that stuff was able to be negotiated. And honestly, it was probably an hour’s worth of actual work to do. And I don’t know about you, but I

49:49
I’d like to save $3,600 a year or whatever it is. I think in our case, we reduced it by almost one and a half percentage points overall. Yeah, we reduced it about a 1 % and that’s like, you know, that’s like tens of thousands of dollars every year. The only reason why I brought up this up in the first place is if you get a lot of PayPal payments because of what we just both talked about, go with Braintree because then you can actually negotiate your PayPal rates in addition to your credit card rates and they do offer interchange plus pricing.

50:16
which is hilarious because they’re owned by PayPal now, right? Exactly. It’s the same company, but they don’t talk to each other. But that’s, I like Braintree. I’m a fan of Braintree. I’ve used Stripe in the past. Braintree just seems to be a little bit easier to use. And you have some of the advantages like the built-in ability to use PayPal without having to have a separate account and worrying about that and the ability to negotiate some of those fees. So yeah, yeah. I’m a fan. Yeah. Chris, I don’t want to take up too much.

50:45
more of your time here, but that was great. Is there anything missing on that survey that you wanted to mention before we shut this down? So I’m scrolling through it right now just to see. Oh, so reviews. This is a big one on, uh, on Amazon, on Etsy, wherever they rated a 7.69 out of 10 in terms of how important it is for conversion. However, only 60 % of people say that they always read reviews.

51:12
41 % of people said it depends on the product. So if they really want the product, they’re not going to look at the reviews. If they’re kind of on the fence about it, then they’re going to do it. Shipping costs would be another big one, right? 70 % of people said that they would absolutely be willing to buy a product if they had to pay for shipping. So it’s not a huge deal. And what we’ve noticed, at least on our own website, is we’ve done the best with flat rate shipping. We charge a flat $5 for most of that stuff.

51:42
And we, we raised it. was, I think was 3.99. So it was $4 a year ago. No effect on conversion rate, no effect on anything. Not a single, we even sent an email to our entire, a transactional email, letting people know that the shipping costs were going up. Didn’t get a single reply to it. Nobody even blinked at it. And it hasn’t affected our conversion rates moving forward, even with brand new customers. And so if you’re afraid to charge for shipping, don’t be, just make sure that it’s part of the value of the product.

52:11
Right. You may see a slight decrease, but people are not that worried about it. Pricing, uh, 80 % of people said price is only one factor that they consider. So a huge mistake that I see people making is that they want to be the lowest priced option, or they do some price trickery, right? They’ll offer some variations and

52:33
They’ll put in a low price variation that they know no one’s interested in just to have that be the price that shows up in the search results, right? Where it’ll say from $4 and 99 cents. And then you get in to buy your t-shirt and you realize it’s a, it’s a baby small or whatever that no one is actually ever going to buy because it’s a t-shirt about drinking beer. And that’d be a really weird thing to buy for your toddler. But they do that. You don’t need to do that. Only 13 % of people said it’s one of the most important.

53:01
And about 5 % of people said that they’re not worried about it at all. Um, we had, we, we did talk about the likelihood of visiting a seller page, 73 % of people, uh, or sorry, it was, uh, yeah. How likely are you to visit was 73. So 7.35 out of 10. Um, that’s just the, like the, generic about page, right? So your shop, but then if they had purchased from you, that jumped to an average of 85 % where they were coming in, looking at the shop.

53:30
So 8.5 out of 10 on how likely they are to come visit a shop they have previously purchased from. Where that gets really interesting is where you and I started talking about this and I wanted to pull up the data. I wasn’t just making it up. It was 96%. So people who bought one to five times on the platform were 80.2 % likely to purchase from a shop they had purchased from previously. If they made six to 10 purchases, that jumps to 89 % likelihood. And 11 or more purchases in the last year, 96.3%, right?

53:59
So if you don’t have more than one thing that somebody can buy from you, you’re making a huge mistake. it is that you’re selling. think the, uh, I think Bain and company did a similar study. If they bought once, they’re like 65 % more likely to buy again, which is kind of in line. Your, your, your stats are higher, but it seems to be in line. Yeah. And again, it could be sample size. could also be how generic the question is. Right. And if you’re talking about something like Etsy,

54:27
The shops are either very generic, right? Where they sell every t-shirt ever made or they’re very niche specific. And if they’re very niche specific, there’s a higher likelihood that somebody can come back and find the thing that they’re actually looking for. And that’s one of the reasons I think it is, it probably skews a little higher on Etsy than it would somewhere like Amazon or just market in general. But you’re talking well over 50 % of people who buy from you want to buy from you again and want to buy other things from you. And if we can

54:54
offer those, then that’s automatically going to increase our conversion rate and our sales because they’re coming back and they’re starting by looking at our storefront. And I’m just going to say this is kind of conclude here. I think in the way you make an e-commerce business profitable is through your repeat business and cross-selling of the products because it costs a lot of money to get that first purchase. And it’s through getting that first purchase and just, we’ve been doing this for years. Most of our sales actually comes from people who who’ve already purchased from us. So

55:23
You’re doing yourself a disservice if you’re just selling a single product and not keeping track of your customer’s info. Correct me if I’m wrong on this to you, but didn’t you a few years ago, go back through your entire database and just try to figure out who your best customers were. Yep. Yep. That was us. Yeah. To figure out how and why these things matter. Yes. I know there’s a way to do it in Klaviyo, but Drip just rolled out something a couple of months ago that I think is really cool in their analytics tab. And I actually moved.

55:53
I’ve moved a few people from Klaviyo to Drip specifically so I don’t have to dig around. like another one in itself. For the metric. Um, because they have really good analytics that are actually human readable now, which is like mind boggling to me. Um, and I know you can get it. Let me see if I can find it. Uh, uh, and they call it, uh, they call it champions. And so they give you a breakdown inside of your, your Drip dashboard now of exactly.

56:24
how many people are driving what percentage of your revenue and how like what the breakdown of your database is in terms of top customers versus average customers. And it gives you a really good baseline to say 80 % of my revenue is dependent on 2 % of people or, whatever it is. And that was one of the realizations that I have, you know, our, our customer champions, which were the top customers were, I think it’s, 7 % of the database. And that was like 80 % of the revenue, which is, wow. It’s a little skewed, right? Yeah. And

56:52
But it’s because it’s subscription, the longer they’ve been in the database, the more revenue that they contribute. So I was like, okay, I feel a little less weird about that. Right. Cause the people who have bought from us once probably haven’t had even a chance to subscribe yet. We just ran a massive promotion that brought in a whole bunch of new customers, all of these kinds of things. But the, the analytics inside of drip give you a really easy to read breakdown of that for people who aren’t numbers people where it says, here’s how many orders they have. Here’s how many orders a regular person has. Here’s how much revenue they’ve generated. Here’s how much revenue.

57:22
an average person generates. And here’s the percentage of how that makes up for your store. And that gives you at least a baseline to operate off of. So I thought that was kind of cool. Nothing against Klaviyo love Klaviyo, but the fact that it’s that easy to see in a very easy to understand dashboard format inside a drip, I thought was, was really cool. Um, and it makes my job a lot easier cause I don’t have to go build reports and do any of those kinds of things. Yeah. Just focus on the thing, which is making more people high value customers and keeping fewer people as one off orders.

57:51
Cool. Well, Chris, man, thank you so much for coming on the show. I learned a lot actually from talking to you. And the stuff that we talked about here really applies to all marketplaces and all stores. So thank you for that. Absolutely. And I did want to ask you one last thing. Where can people find more about you, the work that you do, the content you create, or if they just want consulting from you? Brandcreators.com, the Brand Creators channel on YouTube or the Rock Your Brand podcast are all great ways to get in contact with me.

58:21
support at brandcreators.com. If you have any questions about the data, any of those kinds of things, or if you’re just trying to figure out what’s going on on Etsy, you’re interested in that. If you’re trying to figure out what’s going on with Amazon, you have a question. More than happy to answer it there as well. Cool. Well, thanks a lot for coming on, Chris. Appreciate you. brother.

58:39
Hope you enjoyed that episode and I hope Chris gave you some tips on how to make more efficient use of your time and how to maximize your marketing dollars. More information about this episode, go to mywifequitterjob.com slash episode 507. And once again, tickets to the Seller Summit 2024 are now on sale over at sellersummit.com. If you ever want to hang out in person in a small intimate setting, develop real relationships with like-minded entrepreneurs and learn a ton, then come to my event. Go over to sellersummit.com.

59:07
And if you are interested in starting your own eCommerce store, head on over to mywifeputterjob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.

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506: Insider Details About Our Recent Company Exit With Mike Jackness


Today, I’m thrilled to have a regular back on the show, Mike Jackness. Mike is the founder of Ecom Crew and he owns many e-commerce brands.

But out of all his companies, we just happen to own one together.  In this episode, we give you all the details about our recent exit and sale.

What You’ll Learn

  • The details of our recent company exit
  • The future of e commerce and AI
  • Why Mike sold a number of his brands and laid off his team

Other Resources And Books

Sponsors

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I Need Your Help

If you enjoyed listening to this podcast, then please support me with a review on Apple Podcasts. It's easy and takes 1 minute! Just click here to head to Apple Podcasts and leave an honest rating and review of the podcast. Every review helps!

Ready To Get Serious About Starting An Online Business?


If you are really considering starting your own online business, then you have to check out my free mini course on How To Create A Niche Online Store In 5 Easy Steps.

In this 6 day mini course, I reveal the steps that my wife and I took to earn 100 thousand dollars in the span of just a year. Best of all, it's absolutely free!