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472: The ONLY 4 Ecommerce Platforms You Should Be Considering for Your Online Store – Family First Friday

472: The ONLY 4 Ecommerce Platforms You Should Be Considering for Your Online Store! - Family First Friday

One of the most common questions I get asked is which ecommerce platform to go with for an online store.

So in this episode, I reveal my top four ecommerce platforms to start a business, depending on a number of factors such as your budget, your level of tech savviness, and what you sell. 

What You’ll Learn

  • What’s the best eCommerce platform for you
  • How much should you pay for a shopping cart
  • The eCommerce platform that best fits your niche

Other Resources And Books

Transcript

00:00
In this episode, I’m gonna go over my top four e-commerce platforms to start your online store depending on a number of factors such as your budget, your level of tech savviness and what you sell, and I’m gonna be as comprehensive as possible. What’s up everyone? You are listening to the My Wife Could Her Job podcast where I teach you how to make money online by exploring different tools, strategies, and understand how to leverage human psychology to grow your sales. Welcome to a special segment of the show called Family First Fridays.

00:25
where I go solo to give you my thoughts on how to make money without sacrificing your lifestyle. Now, if you haven’t picked up my book, The Family First Entrepreneur yet, head on over to mywifequitterjob.com slash book, fill out the form and get over $690 in free bonuses. Also, if you’re interested in learning how to start your own e-commerce store, make sure you sign up for my free six day mini course over at mywifequitterjob.com slash free. Now I want to start out this episode with some statistics.

00:53
just in case you are wondering which platforms are the most popular in the world. Now, according to Statista, WooCommerce has the largest global market share among e-commerce platforms followed by Squarespace, Shopify, and Wix. But interestingly enough, two out of my top four e-commerce platforms don’t even crack this list at all. Now, a lot of these top e-commerce platforms on this list are skewed by platforms with free plans where probably 90 % of the customers never sell a single thing.

01:23
Now with that in mind, let’s start with the 800 pound gorilla in the room, Shopify. Shopify is probably the number one recommended e-commerce platforms by most gurus and YouTubers online. And back in the day, Shopify had an amazing affiliate program that paid out at 20 to 25 % recurring revenue, which inspired almost everyone and their mother to promote the tool. And the strategy worked. Shopify went on to become a publicly traded company and the standard for e-commerce platforms for today.

01:53
Now personally, I never jumped on the Shopify bandwagon because everyone has different needs and every e-commerce platform has different strengths and weaknesses, which I’m going to share with you guys today. I would never blindly promote any platform just because of an affiliate program. Now don’t get me wrong. I do think that Shopify is probably the safest solution for me to recommend for most people. After all, no one ever got fired for recommending Shopify, but there are some downsides as well. First off, Shopify is expensive.

02:22
One of the ingenious strategies that Shopify made early on was to make the out-of-the-box shopping cart bare bones in terms of functionality and then rely on third-party developers to fill out the feature set. And as a result, Shopify has cultivated one of the largest third-party developer ecosystems out of any shopping cart in the world. If you need a feature or a specialized app, chances are that someone has already created it on the App Store. If you need a developer, there are tens of thousands of people ready to help you.

02:51
Here’s a recent example that I just encountered at my annual e-commerce conference, The Seller Summit. Walmart Marketplace was a sponsor of my show, and right now they are trying to get everyone on their platform to compete with Amazon. So what did they do? They created a Shopify app that automatically imports your Shopify products onto the Walmart Marketplace, but they only support Shopify right now. If you are on any other platform right now, you are out of luck.

03:17
Now the truth is, is that most companies and developers will create apps for Shopify first because they have a huge market share in App Store and they can make recurring revenue for every single installation. But this is bad for the consumer because you end up paying monthly fees for every little tiny feature. For example, if you want a more elaborate way to issue discounts, you need to pay for an app that may run you an extra $20 to $50 a month. If you want to be able to collect video reviews, you might have to pay another $50 a month. All these fees add up

03:47
to make Shopify one of the most expensive platforms to run on. The average Shopify store uses seven apps. In my course, the people using Shopify pay several hundreds of dollars per month on recurring app fees. Now Shopify is the best and the most flexible e-commerce platform out there, but it’s gonna cost you. However, in the grand scheme of things, the cost of Shopify should in theory become a very small percentage of your overall revenue once your store starts taking off. But in the beginning,

04:16
these fees can add up. Some other notable disadvantages of Shopify are that their blogging platform is pretty bad. So if you plan on launching a blog or creating content, you are at a major disadvantage. Also, Shopify charges transaction fees if you do not use their built-in payments platform, Shopify Payments. Well, you might be telling yourself, Shopify Payments is good enough for me, so why would I use anything else? Well, I believe that almost every store today should be using PayPal in addition to accepting credit cards,

04:45
because of their one-click checkout features. But accepting PayPal on your Shopify store can potentially cost you almost 5 % in fees with Shopify’s transaction fee penalty. Shopify also has poor international support. If you plan on opening a store in a non-supported country outside the US, Canada, UK, Europe, and Singapore, you’re out of luck. Shopify also has a suboptimal SEO URL structure. Now, unlike almost every other e-commerce platform,

05:14
Shopify does not allow you to fully customize your URLs and inserts extraneous terms in your URL such as collections or products which is bad for SEO. Now on the product side, I would avoid Shopify if you sell products with many variants. On Shopify, you can only offer three types of choices for your products that cannot exceed 100 total combinations. And this is a severe limitation for products that have different colors, sizes, and varieties. But outside of these disadvantages,

05:42
Shopify should be the top choice for most of you because it’s extremely easy to use and expand upon. And as I mentioned earlier, no one ever got fired for going with Shopify. The number two e-commerce platform on my list is Shift4Shop. Now when Shift4Shop first debuted in 2021, they offered a 100 % free solution to anyone in the US as long as you use their payment processing solution, Shift4Payments. And the fact that it was free made it a no-brainer for me to recommend it to my entire audience.

06:10
because Shift4Shop was an amazing shopping cart even when it cost money. Unfortunately though, Shift4Shop received a ton of spam shops and people who were signing up just to create elaborate link farms to game SEO. Anyway, long story short, Shift4Shop eliminated their 100 % free program and created a new rule that you have to process at least $500 in payments per month to make the shopping cart free. And in my opinion, this is still an amazing deal. The shopping cart right now costs 29 a month.

06:39
until you start processing $500 in payments. Now if you were to just charge your own credit card, $500 a month, that would only cost you 2.9 % or $14.50. So in reality, you’re getting a shopping cart that is way more powerful than Shopify out of the box for only $14.50 a month. Now personally, I’ve run two stores on Shifr Shop and it’s a fantastic e-commerce platform that is way more powerful than Shopify’s base offering.

07:07
Now the biggest problem with Ship4Shop in my opinion is their user interface. Ship4Shop has so many features and they try to cram it all in one back end. And as a result, there’s a much steeper learning curve than with Shopify. But if you’re willing to suck it up and learn the platform, it’s actually an amazing shopping cart with limitless potential. Put it to you this way, my teenage daughter picked it up in a weekend and was up and running with her jewelry shop over at renabee.com. Now the other problem with Ship4Shop,

07:36
is that it has a very small developer community. As a result, cutting edge features like the Walmart example I gave earlier won’t make it to Shift for Shop until much, much later. But all in all, Shift for Shop is a solid choice with free email marketing built in that will support a store that makes seven figures and beyond. In fact, there are many enterprise stores on the platform that make eight figures or more.

07:59
Now the number three e-commerce platform on my list is WooCommerce, which just happens to be the most popular e-commerce platform on the planet. But remember what I said earlier, these numbers are skewed because WooCommerce is 100 % free to use, and I’m willing to bet that a ton of WooCommerce users fizzle out or don’t sell anything in their first year. So take these numbers with a grain of salt. I teach a lot of my workshops based on WooCommerce because it is literally the cheapest way to get started selling online, and you can get started for only

08:29
$3 if you were interested in starting your own ecommerce store on WooCommerce I put together a 20 minute free tutorial and I even designed a custom theme that I’ll give to you for free Just look at the show notes below all it takes is 20 minutes, and it’s really that easy The other benefit of WooCommerce is that it’s built on top of WordPress Which is the best blogging platform on the planet that powers over 20 % of the web now with WooCommerce as your shopping cart and WordPress as your blogging platform

08:57
This combination has the best search engine optimization of any platform out there. So what’s the catch? The catch is that WooCommerce is kind of a pain in butt to use, and you have to understand more of the technical aspects of maintaining your online store. For example, your WooCommerce store is free, but it’s just software, and you need to get your own server in order to run that software. As a result, WooCommerce requires a web host. It’s actually not as complicated as it sounds, but the upshot

09:25
is that you are responsible for maintaining your server and keeping it virus free. If someone were to hack your site, that would be your responsibility to fix. Now, if you use plugins on your website, it is also your responsibility to upgrade them and make sure everything works properly. Now, compared to Shopify and ShifrShop that handles all this for you, you can get into trouble with WooCommerce if you are not tech savvy. But because WooCommerce is literally the most popular e-commerce platform on the planet,

09:53
It actually has fantastic third party developer support and it’s really easy to find someone to help. Also, because you own the source code, you have full control and autonomy over your entire website. Let me give an example of why this is important. Platforms like Shopify actually have a say in what you’re allowed to sell. For example, during the pandemic, Shopify literally shut down my friend’s online store for selling hand sanitizer because they felt his prices were too high.

10:21
You also can’t sell drugs or any other chemicals on the Shopify platform. And sometimes these restrictions are arbitrary. There are no such restrictions with Woo. You are in full control over everything. So bottom line, WooCommerce is inexpensive, but it’s harder to maintain. But for context, my nine 11 year old kids started their first store, kidincharge.com on the platform and they were fine. Now the final shopping cart I want to discuss is BigCommerce.

10:49
Big commerce is kind like a hybrid of Shopify and ShiforShop. For example, Big commerce is as easy to use as Shopify, and it offers a full feature set out of the box, which means you don’t have to pay for that many apps. They also don’t charge any transaction fees at all, which makes it cheaper than Shopify, and they have more third party developer support than ShiforShop. Now in terms of blogging, they have an amazing integration with WordPress, which allows you to have a WordPress blog and a Big commerce store on the same domain.

11:18
which gives you superior SEO and blogging, which is something that you can’t do with Shopify. Now the only catch with big commerce is that the amount you pay is based on revenue. For example, it costs $29.99 up to $50K in revenue, $79 a month up to $180K, and $299 a month up to $400K in revenue. Now to a certain extent, I kind of like this pricing scheme because your costs go up as your store becomes more successful. Unlike Shopify,

11:47
which saddles you with all these app costs upfront, even if you aren’t making that much money. But this pricing scheme can be problematic for drop shipping stores. In general, drop shipping carries very low margins. So let’s say your net margins after all overhead is only 5 % and your store makes 10K a year. That means your monthly fee of $29 will make up about 6 % of your overall revenue, which is pretty high. But overall,

12:13
Big commerce is a solid choice because there’s a lot of features out of the box than Shopify with little or no plugins required. They have better SEO. There’s no limitation on product options. They have superior international support, no transaction fees and better analytics and reporting. Their only weakness is third party developer support, which is better than shift for shop, but worse than Shopify. So the million dollar question is which platform should you go with? As I mentioned earlier,

12:42
You can’t really go wrong with Shopify unless you don’t have a large budget or if you want a good blogging platform with superior SEO. If you are not tech savvy, go with BigCommerce if your company is not supported by Shopify payments, if you sell prohibited products, if you require multiple variants, or if you don’t want to get nickel and diamond by apps. If BigCommerce is out of your price range and you are not tech savvy, go with Shift4Shop if you live in the United States. If you want the most complete feature set out of the box,

13:12
if you are a fast learner, and if you don’t mind a lack of third-party developer support. And then finally, if you are tech savvy, and you want the cheapest and the most flexible e-commerce platform in the world, go with WooCommerce. But be prepared for the maintenance that goes along with it. By the way, if you want more comprehensive reviews of all these shopping carts, you can find full reviews on my blog over at mywifequitterjob.com. Just do a search for e-commerce platforms, and I’ve reviewed practically every single one out there.

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471: Key Takeaways From Sellers Summit 2023: These Trends Are Taking Over Ecommerce!

471: Key Takeaways From Sellers Summit 2023: These Trends Are Taking Over Ecommerce!

Today I have my friend and business partner Toni Herrbach on the show. In this episode, we recap some of the game changing strategies in ecommerce that were revealed in Seller Summit 2023

This year was one of the best Seller Summits in terms of content and community. Not only did we have the most sessions ever, but every single talk was incredible. 

Head on over to Sellersummit.com to grab the recordings.

What You’ll Learn

  • Key takeaways from the Sellers Summit
  • The trends that are taking over ecommerce
  • Some interesting stats regarding the event

Other Resources And Books

Sponsors

Sellerboard – Sellerboard is a must have tool for Amazon sellers if you want to know how much profit you are actually making. Click here and try Sellerboard for FREE.

180 Marketing – 180Marketing is the agency that I used to grow my SEO traffic by 4X in just 6 months! Click here to book an appointment

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 the strategies they use to grow their businesses. Today, I my friend and business partner, Tony Urbach on the show. And in this episode, we are going to recap some of the game changing strategies in e-commerce that were revealed in Seller Summit 2023. Now Seller Summit 2023 was one of the best seller summits in terms of content and community that I can remember. And not only do we have the most sessions ever,

00:28
but every single talk was incredible. This is easily one of my favorite years of all time for my annual e-commerce conference. Now, if you want the recordings for Seller Summit 2023, then head on over to sellersummit.com, that’s S-E-L-L-E-R-S-S-U-M-M-I-T.com, and click on the grab your virtual pass button. We’ll be taking this link down pretty soon to make room for Seller Summit 2024, which will be announced later on this month. But before we begin,

00:57
I want to thank Jeff Oxford of 180 Marketing for sponsoring this episode. 180 Marketing is an agency that specializes in helping e-commerce stores boost their SEO traffic. And in the past, I used Jeff and his firm managed to grow my search traffic by 4x in just 6 months. In fact, 180 Marketing is one of the few SEO agencies that I trust 100%. For more information, go to 180Marketing.com or just email Jeff at 180Marketing.com.

01:25
I also want thank Sellerboard for sponsoring this episode. Sellerboard is profit analysis software that helps you figure out exactly how much profit you are making selling on Amazon. Now, if you’re an Amazon seller, you are probably aware that there are many hidden fees in selling on the platform and Sellerboard organizes all that information for you in a clear and concise fashion. Personally, I recommend Sellerboard because they’re among the least expensive software that I know of that does this, which is one of the reasons why I like them.

01:53
For more information, go to mywifequitterjob.com slash seller board and try them for free for 30 days. It is literally a no brainer. Once again, that’s mywifequitterjob.com slash S-E-L-L-E-R-B-O-A-R-D. And then finally, I wanted to mention my other podcast that I run with my partner, Tony. And unlike this one, where I interview successful entrepreneurs in e-commerce, the Profitable Audience podcast covers all things related to content creation and building an audience.

02:20
No topic is off the table and we tell it like how it is in a raw and entertaining way. So be sure to check out the profitable audience podcast on your favorite podcast app. Now onto the show.

02:36
Welcome to the My Wife Could Her Job podcast. Today, I have my business partner, Tony, on the show. And we are going to talk about how amazingly successful Seller Summit was this past year. Probably one of my favorite Seller Summits of all time. Yeah, it’s been a long time since I’ve been on the show. I’m feeling a little neglected. Well, it’s because we have our other show now. That’s true. That’s true. I get to talk to you all the time. Exactly. It’s rare that you were actually the most frequent guest.

03:06
Yeah, I think you had I’m sure everyone listening knows who you are. I’m sure they’re all sick. They’re like her again. So I just want to ask is it just me or did you feel the same way about this seller summit? Oh, I thought it was great. It was definitely it’s hard. Okay, so it’s funny because the first seller summit always like holds a special place, right? Because it was the first one you and I well, I don’t think either of us admitted how nervous we were about people not showing up.

03:33
You know, with the first one, it’s like, we going to actually is anyone going to want to come? So I think that first one was special because it felt like, oh, we did it. It wasn’t a complete disaster. Everyone seemed like they had a great time. And so that one always holds a special place. But this one is probably my favorite in regards to just the overall, the speakers, the attendees, the sponsors. I feel like everybody was just amazing this year at the event. Yeah. And I don’t just say this lightly and I’ll just be straight up. I think.

04:02
last year’s event was one of the roughest ones. I agree. is 2022. Yeah. Because we were cutting them off. We were coming off a pandemic. Yeah. And people were still a little bit squeamish about traveling. And then I think we had like a last minute speaker cancellation because people were still kind of iffy. Yeah. So 2022 was one of my least favorite years. But this year is by far one of my favorite years outside of the first year, want to say. Yeah, 2022 was hard, too, because if you think about when we hold seller summit in May,

04:31
In 2020, we thought up until like March 20th, we were still having an event. So we were only six weeks out, I think, from seller summit when we realized that we had to cancel it. And we didn’t really know what to do. So we ended up doing the virtual event, which I thought was great as far as like our attendees were awesome. They showed up on Zoom. Our speakers delivered amazing presentations. And so I really did enjoy the presentations that year and stuff like that. But we also allowed anybody who had a ticket in 2020

05:01
to carry it over to the next live in-person event, which ended up being in 2022. And at that point, it had been two years, right? And for some people, three years since they bought a ticket because they bought their ticket in 2019. And so people didn’t know if they had tickets. They didn’t know what kind of tickets they had. weren’t like all our overseas people didn’t think they could come. So 2022 just felt like an absolute chaotic.

05:25
mess, even though, you know, we tried really hard to communicate, our speakers still did a great job presenting like everyone did their best. But I felt like that year just felt off. But this year just felt like to me, it felt like a homerun, not to pat ourselves on the back. I think it had way more to do had way more to do with the people that were there than the two of us for sure. I agree. And let me just let me just think about some of the anomalies.

05:48
Well, number one, I did my book signing. So that’s why it was special for me. That’s why I asked you that question because I knew that was it was special for me because of that. In addition to the event going fantastic. Yeah. And let me just tell you from my perspective first, that video that you put together during the opening. So for anyone listening out there, I don’t cry. I just don’t. I don’t even get emotional. But what Tony did and whose idea was it? was Andrea’s. It was Andrea’s idea.

06:18
So we give it some credit. Tony and Andrea went around to my close business friends and my family and they had them record a short clip about how I’ve influenced them in their lives or, you know, just like a whole bunch of people just wrote film. He’s really, I see I’m getting like teary thinking about it right now. Put together these thank you videos together in one long video. And it was a complete surprise to me. During the opening keynote, they played it.

06:48
And like, I was like, okay, I’m not gonna lose it. I’m not gonna lose it on stage. And then what made me, what snapped me out of it actually, was I saw you high-fiving Andrea in the front row, because you were trying to get me to cry. And I was like, okay, all right. Okay, here’s the thing. I wasn’t trying to get you to cry. I just wanted you to show some semblance of emotion. What was cool about this is, so,

07:15
As you guys probably know, if you’ve been to Seller Summit or you’ve heard us talk about it before, my brother, Todd, is a professional sound engineer. He runs our AV for Seller Summit. He’s done it since the first event. Andrea came to me with this idea. She’s like, wouldn’t it be cool if we had a video that we could play at Seller Summit that had some of Steve’s closest friends talking about how he’s impacted them in relation to the family first entrepreneur book? What lessons have they learned from you, either through business or friendship, things like that?

07:44
Immediately, I’m thinking of all the really bad videos that I’ve seen, compilation videos where people talk too long and people are getting up and leaving. So I immediately call my brother. I’m like, I got an idea. And he’s like, oh no. Because he thinks it’s obviously more work for him. ended up my nephew Zach did do the editing of the video. But my brother actually gave me a list of requirements of how people had to hold their phone, what he wanted them to not say, like the words, but the formatting, the time.

08:14
And it was funny because I felt like Ezra, you know how when Ezra Firestone asked for user generated reviews and he like sends these people like a PDF of like, hold your phone this way. Like I felt like Ezra, was like, I like, I should just send this to Ezra, see if it makes sense to him. But so I sent this out. This is what was cool. And not everybody knows this, but I sent it to 19 people. So because I thought if I can get 10, then that makes a very nice like three, two to three minute compilation video.

08:44
And I figured, you know, lot of your friends are not good with email. They’re very busy. They’re all like you, right? So I was like, huh, if I get a 50 % response rate, that’s awesome. As well as, you know, not everybody that I emailed knows me very well. Most of them do, but some of them like I’m not a familiar name. So I put the subject line, please help me make Steve Chu cry.

09:08
So I figured all my years of email writing definitely paid off in this. So, and then I wrote a very succinct email. These were the directions. You had to have it to me by this date, whatever. So I got 18 responses out of 19. I know that’s incredible. Which is incredible. And I would say a testament to your friendship with these folks and how much you mean to them and how much they value your friendship. And I didn’t, I had to send one reminder email. So it wasn’t like I was prodding these people for weeks or anything like that.

09:38
They all followed the directions except for Mike Jackness who held his phone the wrong way, but I’ll forgive him for that. He gave a great presentation at Seller Summit. So yeah, it was really cool. And it was cool because I saw them all coming in. know, they would send them to me or text them to me and I would watch them. And some of them were, and people were like, can we be funny? Is this supposed to be serious? And I was like, you can be however you want to be. Like you need to be you how you are with Steve. And so that was cool too, because it was a really nice mix of.

10:04
of like funny and sincere. But the best thing which you don’t know was like, I know that you and Jen, Jen’s your wife, as most people know, like you have access to each other’s accounts. You know, like I know you can see like emails and things like that. So I really wanted Jen and your kids to make a video. But I was like, I don’t know how I’m going to get to Jen without you seeing it somehow. Right. Because I can’t email or the chances of you seeing it are probably pretty high. I was like, I can text her, but I have to text her.

10:32
when I know you’re not with her, which is basically all the time, right? So we were on a Friday check-in.

10:39
And you’re talking away and I’m texting Jen. like, I need you to text me back as soon as possible. Steve can’t be around. And then when I was rereading the text, it sounded really bad. Like I had to tell her some sort of secret about you that was like horrible. And I was like, it’s not that bad. But please text me when you can’t see this. Delete the text. I was like, you know, wanting to make sure you didn’t see it. So we had several text chains where you were like on live with me, but I’m texting Jen because I knew you weren’t with her because I could see you.

11:07
And then she texted, the best text from her was, I don’t know when I’m to be able to film these because he’s always home. I was like, I know. Can’t you send them to the store? It’s true. Yeah. I think she did it while I was doing like some sort of live presentation at the workshop or something. Yes, because when she sent them to me, I was like, oh yeah, he’s on live right now.

11:33
So yeah, good job to everybody though who sent in a video and I don’t, is a video anywhere where people can see it? I think it’d be nice if we put it somewhere. You know what? I might integrate it into my YouTube channel somewhere. Okay. In one of the videos. We can upload it to the Seller Summit site. the people that have the virtual pass, cause they didn’t get to see it. All the attendees get see it. stayed in the keynote part, right? I didn’t watch the keynote obviously, but. No, I think that that was its own, cause it’s its own video. So it’s, I think the full video is in Dropbox though.

12:03
Okay. Yeah. Anyways, uh, the virtual pass is for sale right now. I’ll just go over to seller summit.com. This is actually the year we had the most presentations as well too. 19, We have 19 or 20. don’t know if you want to count your keynote. Do we count that as a presentation? We don’t learn anything from that. That’s true. We just get entertained by that. That’s right. right. I don’t know. Do you want to

12:31
talk about some of these. This is the first year also, I just want to add that Tony gave a presentation. first year, I’ve given one before. When I gave one the first year and I think I gave one the second year and then I was like, I’m not doing this anymore. Too much work. I don’t think you did. I did. I gave one on Pinterest. That’s the first year then second year, second year, second year and that was it. I’m pretty sure I might not have done one the first year second year. I definitely did one because I was like, this is too hectic. Right.

12:59
But I did. I did give a presentation this year on email. Totally worth the price of the pass. It was. You want to just give like a quick summary of what you talked about? Yeah. I haven’t watched it yet. Yeah. Oh yeah. Because you weren’t in my I wasn’t in your talk. You weren’t in my talk. So this year I gave a presentation on email marketing. I’ve been running email for an e-commerce business for a couple of years now with a rather large list. So it’s been fun because you can test a lot of things with a large list that you can’t do when you’re still in the early growth stage of lithium.

13:28
list building. So I basically talked about how I took her email from when I got started, she was doing just under a million dollars a year in email to this year. We’ll probably do close to three to $4 million in email revenue alone. And basically I gave this drive. I basically walked people through like from the time I started till today, like everything that I’ve either updated or changed to help her get to that point. The biggest one I would say, and like my overall takeaway from the

13:55
talk is I sent more emails to more people. So I talk about how to grow the list and then all the different types of emails that we send that aren’t, I talk a lot about the sales emails, like how you send those standard emails that everyone’s sending, but I talk a lot about how do you grow that list through your flows and the flows that maybe you’re not doing.

14:13
Right? The things that people, everyone thinks about like, oh, I have a post purchase flow or, I have an abandoned cart flow. But there’s a lot of other things that you can be doing to really engage the list and get people continuing to open your emails first of all. And then eventually either converting them to first time buyers or getting those first time buyers to buy a second time. So really walk through all, basically everything that I’ve done in the past three years, which I talk really, really fast. So you’ll have to watch that on like 0.7 speed.

14:40
Cause I felt like the whole time I was like, you had a lot to cover in just 50 minutes. Yeah, did. was, it was, are all there. The slides are all there. It was probably a three hour talk that I condensed into 50 minutes. But, uh, but yeah, it was, uh, I thought it, I thought it was a little bit, uh, I thought the talk was a little boring because it was all based in Klaviyo. So I basically just, it’s like screenshots of flows and campaigns and all the segmentation and

15:07
triggers and conditional splits. it’s definitely if you’re using Klaviyo, you’ll be very familiar with everything that you see, but it’s not like your talk, which was very like entertaining. Mine is like- Are talking about the keynote or the- Yeah, the Oh, you sat in on mine? Oh, the keynote. No, keynote. didn’t sit in your other one. I was in the other room. yeah, it’s definitely, I felt it was boring, but after it, I heard a lot of people say, no, no, no. Like I was able to implement some things. We’ve had some emails already from people that are like, hey, I don’t-

15:32
Charles emailed us yesterday and was like, Hey, I’m trying to do this from your he sends me a screenshot of my presentation. And then his Klaviyo account. He’s like, Am I doing this right? And I’m like, which one’s mine? Like, I’m trying to figure out which is which. And he wasn’t doing it right. So we fixed it. But yeah, people seem to enjoy like that. There’s a lot of good feedback on it. And I thought you just said that to pat yourself on the back, right? No, I wasn’t. But there was a lot of people who enjoyed it.

15:58
I thought I, because I like, obviously like Tiffany Ivanovsky gave a talk on live selling. She did it last year. She was amazing. This year, she actually did live sign with Jen, which was really fun. My wife is not the live selling type. Oh yes, she is. Oh yes, she is. But she did an amazing job. Yes. We need to get that little clip on the internet or something.

16:22
That was so I was gonna ask Tiffany for it because in the in the recording, it’s actually their backs are turned because of how the camera set up. what’s funny is Jen is a very she Jen’s very quiet. She’s probably the nicest person I’ve ever met. She’s I would say she’s pretty reserved most of the time. And, know, Tiffany gives Tiffany gave like a 40 minute talk basically on.

16:46
just live selling in general, why it works, the reasons you should do it. She showed a lot of her bloopers. She gave a really good presentation. And then at the very end, she did the live selling with Jen. And as soon as she turned that camera on, Jen like morphed into a different person. I was sitting there with Bill and Dana and we were looking at each other like, who is this?

17:09
I mean, she was like bumping Tiffany out of the camera and like trying stuff on and her energy level was like 10 out of 10. Like it was very impressive. And she sold like what? $1,700 of stuff in 10 minutes in eight minutes. Yeah, it was nuts. Yeah. With a bad internet connection. So yeah, that was one of my Tiffany is so entertaining. Like her talk gave a lot of really good information, but you were laughing the entire time. So that’s kind of why I felt like my talk with like no one laughs.

17:38
There was no laughter in my talk. was all like, screech out, screech out, screech out, was like, I’ll give you the slides, calm down. But yeah, she gave a great talk. It was great to see Jen. What was also nice is that last year we had attendees get up and live sell, but we didn’t pick, we basically took people that volunteered, but Tiffany definitely coached them before they got up there. This year, Jen kind of got up blind, right? Like I know they had talked a little bit about the products that she was going to sell.

18:05
But it was cool to see Jen, who is someone that I think we would all agree, oh, Jen wouldn’t want to do live selling, right? Correct. To see her get up there and get kind of wrapped up in the excitement about it and really show that anybody, not that Jen, I mean, Jen’s totally capable of doing it, but even these people that seem very shy and reserved, anybody can get up there and kind of get that energy going.

18:28
and really see some great sales. And the coolest thing about the tool Tiffany uses to sell is it shows you how much money you’re making per minute. So that was the best part because like Bill is like pointing to the screen the whole time. He’s like, it’s like $72 a minute. It’s like this a minute.

18:45
So anyway, that was one of my favorite talks just because Tiffany’s so relatable. And it really, when you listen to that talk, you feel like, you know, this might be an option for my business. This might be something that I could use to get another sales channel that I wasn’t thinking about. So that was one of my favorites. So I actually gave a talk this year too, which I haven’t since 2017, want to say. But for some reason, I decided to launch my book, run the conference, do a keynote and do this talk.

19:13
Yeah, that was dumb. Probably not going to do that again. Yeah. But I talked about how to escape Amazon’s grip, which was awkward because Amazon was a sponsor. Last minute sponsor, but how to create a thriving e-commerce brand without Amazon holding you back. said Amazon twice in the title. Yes. I don’t know if they watched that, but they won’t be back next year. They won’t be back next year. I’ve just been getting a lot of requests from people who, who

19:41
depend on Amazon for like 95 % or 99 % of their sales and how to go about, you know, moving off to, I shouldn’t say moving off transitioning on having their own e-commerce channel as well. And so it was pretty well received. I can’t remember who I was going up against, but I didn’t, I had some elements where I got some laughter and whatnot, but it was, it was pretty much a straight lace talk as well. Yeah.

20:06
And I think that’s the general theme that we see every year at Seller Summit is that we typically have about 50 % of our attendees are Amazon primarily sellers and 50 % are, you know, D to C sellers. And that doesn’t mean that there’s not some crossover like, you know, these Amazon sellers usually do have some sort of storefront, right, where they’re doing 5 % of their sales or something like that. And the people that are D to C, some of them do sell a little bit on Amazon. So there’s familiarity with the group, but

20:35
That’s a theme that we get every year is use people who have 97 % of their business on Amazon. And they’re like, listen, I understand I need to diversify. I’m not going to walk away from Amazon like it’s cash cow, but I want to learn about the brand building side, which Chris Schaeffer actually gave a great talk on like the conversation method, basically building that audience, engaging people. How do you, cause it’s hard to do this. Like it’s hard to start a store without Amazon.

21:04
build an audience. mean, obviously, you know, ads play a big component of it, but like, you’ve got to be able to build this loyal following and a brand that people want to come back and shop and feel proud of, like, what your brand is.

21:17
And so he gave a really good talk and he had a hard spot too. He was like the end of the day. Like those are the worst times to talk, right? Like end of the day, everyone’s tired. I always put the people I know are awesome at the end. I’m like, Chris is going to knock it out of the park. He’s going to be amazing. Same with the first morning spot. It’s like Brett Curry always goes first for me. Cause I’m like, he’s got that deep voice. You want to listen to him. He’s got like a commanding presence on stage, but Chris did a good job. basically walking people through, I think it was like a three-step method.

21:46
walked people through like, is what you do first, this is what you do second. And of course it’s Chris, so he always has a lot of like good easy things to remember. What are they like? Pneumonic devices where it’s like everything was a C. And so you kind of could remember things that way. So he always gives a great presentation. I always tease him because the first time he ever presented for us, I was like, I had no idea you were so smart. I was like, I thought Scott was the brain. He’s always so tacky. I was like, I thought Scott was the brains behind this operation. Clearly it’s you.

22:14
But yeah, he did mention, you mentioned Brett. Yeah. And I wanted to have Brett talk about Google performance max. Because up until this point, Google has been a pretty complicated way to advertise. Yeah. And so Google kind of took a page out of Facebook’s, you know, playbook and decided to create something that was a little more automated and a little bit more easier to use. still a little complicated, but it’s a lot easier to use. And it relies on Google’s AI to

22:42
just kind of magically show ads to people who are more likely to convert. And so Brett presented a different method depending on how much time you wanted to spend in it. And he broke it down really easily and simply so that anyone could implement it. I thought it was a great talk. He always does a really good job. I feel like his talks are always, he’s talking about a very complicated process and he makes it seem very doable, which I think Andrea probably did the same thing. I wasn’t in her talk, but she did a talk on many chat.

23:09
And basically she sat down and people were basically setting up flows inside the presentation. Like that was the goal was to walk out of the presentation with something set up for your account. Correct. Yes. was a workshop style that Andrea did. And yeah, she literally walked you through where to click everything. Yeah. So that you ended the presentation with something that you could use. Yeah. So it’s definitely one of those talks. If you’re watching the videos, you’ll probably want to watch it a couple of times just so you can get all the steps. But I think that’s nice too, because

23:37
Well, that was the thing is I feel like we let attendees know that they get the videos, but every seller summit, people are like, I don’t know what to pick. I don’t know what to go to. I’m so bummed. I’m going to miss this. And I’m like, well, you can watch it later. And they’re like, I can. Like they don’t know. It’s like, I thought we did a good job of like letting people know that they get all the record. Like if you have a seller summit pass, you get the recordings for free. So you won’t miss a single session.

24:01
which is actually a crazy value when you think about like how much the seller’s ticket cost and then how much the virtual pass costs. Like it’s a steal to get. Maybe I need to do a better job of communicating that in the keynote going forward. Yeah. Cause everyone’s like snapping pictures at slides. yeah, they’re frantically like their phones are out and that was like in mine and you feel like, cause I do the same thing because sometimes you don’t get the slide. Sometimes this is like the only opportunity you have you like at other events.

24:26
And so I know that when I take my picture out to take a picture of my phone, I have to take a picture of something like I’m missing what someone’s saying, right? Cause I can’t pay attention and get the photo and try to like zoom in because the screen’s 200 feet away and things like that. So, um, yeah, it’s funny to see people are like, put the phones down. You’re fine. Like you’re going to get this all. You’re going to get the slides. Um, so yeah, I think that’s something that people, need to do a better job in the future. they’re not panicking or fighting over like which

24:55
I know the people that we have come that are either coming with their partner or husband spouse partner thing, they’re not fighting over which one they have to go to. Yeah, we also had Brandon Young come in and talk about keyword strategies. There’s a lot of big name companies actually that aren’t doing a good job with their keyword research. And Brandon has this really great methodology where you can find all these outlier keywords and prioritize the keywords for your listing.

25:25
I’ve actually used it for my own listings, his tool and his methodology and it’s worked big time. Yeah. So one of the interesting talks, I don’t know if you, I don’t think you got to see the whole thing, but we had Walmart there as a sponsor and they are real. So I remember like we had Bernie from Plugable talk about Walmart in like 2017.

25:46
And back then it was like the Wild West. was really hard to get on Walmart. Like he was basically like, listen, only five of you in this room are going to be able to do this, you know, kind of thing. It was like so difficult. Right. And Bernie sells a lot. So like he has the volume, like he was, you know, successfully able to do that kind of stuff. But they they’re really coming after Amazon. Right. Like they I feel like this whole event was like, let’s come after Amazon. And then I’m like, oh, they’re sponsoring. Yay. But.

26:13
I was going to say if there’s one key takeaway that I took away from their presentation is that there’s this Shopify plugin that will automatically import your items from Shopify to Walmart. Yes. Yes. So they are making it as easy as possible for sellers to sell on their platform. Whereas if you are familiar with the Walmart platform for five or six, like I tried to sell on Walmart back in 20, after Bernie’s talk, I was like, oh yeah, I think I could probably do this. And then I got like two thirds of the way through it. And one of the requirements was you had to have

26:42
a physical warehouse that wasn’t a garage, you know, like it couldn’t be a storage building. There was like all these requirements and I was like, well, I don’t have that. So anyway, it’s totally changed. So they really want you guys, they want the third party sellers. So if it’s not something that you have dabbled in or experience with, you know, you could probably actually email us too. And we can hook you up with the team and they can help you get started because they were helping people left and right. I mean, their booth was always packed. I think people are just looking for.

27:10
diversifying, right? They want multiple streams of income, like it’s a pretty normal thing. So actually, that’s one thing that I really like about our sponsors every year, really. So Brandon was doing private demos of his tool, Data Dive. Mina, who gave a really great talk on Amazon PPC, he was actually breaking down people’s accounts. But Mina runs Trivium.co, who was one of the sponsors. Actually, I think he offered to just break down anyone’s account. So if you go over to his site,

27:39
sign up for an appointment and he’ll go through your account and tell you how you can improve. Yeah. Yeah. He I saw a lot of people over there getting the account. I don’t know if they call it an audit, but they’re getting account audits over there, which I always think is nice that our sponsors are willing to like sit down and help you. You know, we had Jungle Scout there. They’ve been a sponsor for a long time. They’re always so great about, you know, showing people like not just like how to use their tool, but like the

28:07
logic behind what the tool does and why you should be using it or any tool. That’s what I like about it is that they’re not really trying to sell you on their products. They’re trying to sell you on why you need that service in general. Because I think it is important for sellers to be able to have a suite of tools at their disposal to help build their businesses. Actually speaking, what’s the jungle cell presentation was quite good too. They basically broke down some common sellers mistakes.

28:33
And just in terms of profitability, really, because Amazon has all these hidden fees and everything. And it’s, it’s really easy to get lost in that and not actually make a profit. Yeah. Their talk was actually quite good. You know, it’s interesting. Speaking of hidden fees on Amazon is we had Getita back again, which they’re always a fun sponsor, but they actually help you find what lost inventory. Yes. Which is crazy. service is a no brainer to sign up for. Like Amazon loses your stuff left and right and breaks stuff too. And unless you’re

29:02
watch them like a hawk. Yeah, you’re losing, they’re losing you money. So that’s what Katita does. They recover those lost sales, the lost inventory, and you only pay them when they actually recover something for you. And I think for seller summit members, they were giving away $400 in free reimbursements. Yeah. So if you a ticket, you want to make sure you still take them up on that if you haven’t done that yet. Um, speaking of Amazon and Jungle Scout, our friend Liz, who full circle here, right? Like,

29:31
helped was our seller summit admin in the very beginning, then left us for Jungle Scout. And so she worked at Jungle Scout for like six years and then just recently left Jungle Scout to launch a extension called Fluencer Fruit, which basically helps Amazon influencers find profitable products to make videos about, which we’re going to have a podcast coming out about that on profitable audience if you want to learn more. But the other side of that is that she actually also helps sellers

30:00
get matched with influencers to launch products on Amazon. So if you are brand registered on Amazon, you have video, a video box where you can have a video in your listing. And basically influencer videos can live in that part of your listing and influencer videos are like eight times more likely for people to like watch and buy than like your own brand video. Cause it’s like, well, of course it’s a great video. It’s like professionally shot on some drone camera and all this stuff.

30:26
And so she basically talked about how a seller can use these influencers to help get velocity for their products and help kind of push them up and how it really does work well, especially if you’re trying to get some traction on Amazon for your products. I don’t know about you, but these days when I shop on Amazon, I always watch the videos. Yeah. And if you can get unbiased people to leave reviews of products, that will increase your conversion rate easily.

30:55
And I think if you’re thinking about like, of course, the influencer videos are going to be positive. They want people to click and buy because they obviously get a commission when people watch the video and buy. every influencer is especially know that videos that are too shiny, happy people ish don’t do well. Like you want to give an honest review. I just actually, right before we recorded this podcast, I created an influencer video for this new ice machine that I got. And I actually think this thing is amazing. It was hard for me to think of something I didn’t like about it.

31:22
But the one thing is it does hum, right? It has like a background noise. So if you’re one of those people that can’t stand like, you know, a background noise in your house, like I have a Bosch dishwasher and I love it because it’s so quiet. So then the ice machine’s a little bit loud. And so I’m like, hey, that’s probably the only negative I can think about this. I don’t even care because I love the ice so much, but you know, I think as influencers, they try to find something that’s like not a terrible negative, but you know, something that, you you want the video to be authentic. So yeah, definitely a good.

31:51
Talk to watch if you are selling on Amazon Because the influencers can really really help you with your products So this next talk was really important to me Alicia renozo first time speaker at Seller Summit Yeah talked about how to grow a brand with by running a six-week challenge Yes, and the reason why this was meaningful to me is because right now I’m running my own six-week challenge that I am kind of mimicking off of Alicia’s method. Yeah, and

32:19
Just to give some context, Alicia used to sell water bottles and she turned that into an eight figure company. Think about how many water bottles there are. Like thousands, so many different brands and she stood out by running these challenges to build a community. she was actually great too. I enjoyed, I didn’t know her at all. I had only heard of her through you and so she’s just, she’s very smart, great person to talk to and her talk was really interesting and I think.

32:46
If you’re not doing that sort of thing already, like, especially if you didn’t come from the content side, it will really be mind blowing what you can do to do these challenges and build this community and how much you can leverage that community to make sales. And we saw this last year with one of the people that did the live selling, Laurie. She, built this huge community and then she launched a physical product and had wild success with that because of that community that she had built.

33:12
So it’s a really great strategy to use, especially if you want to be off Amazon. Yep. And the conference would not be complete without a talk on AI. Yes. I Mike Jackness did a great job. Yeah. There were some things that he talked about that I wasn’t doing. clearly that guy is always, I don’t know how he has the time now. But yeah, a lot of cutting edge AI techniques that I’m willing to bet that you guys aren’t doing. Yeah. I didn’t get to see that talk. I was in the other room, but,

33:42
I heard nothing but like people like, know, kind of Like it’s not your standard, hey, I use it to create my listing. Yes, it’s my bullet points. Yes. Yeah. There’s much more to it. It’s a lot deeper than you expect. Yeah. And then of course we had our good friend Bill D’Alessandro who basically made a promise that his talk was going to save you a hundred grand in your business. And he was right.

34:10
There were people who wasn’t exaggerate. No, there were people literally like after his talk, like I’ve already saved it. Like it was crazy. Like I didn’t I was in Liz. Liz was so mad at me because she had to talk when Bill was talking. She’s like, I cannot believe you talked put me against Bill and he’s giving everyone 100 grand. I was like, well, technically he’s not giving everyone 100 grand, but I do see what you’re saying. But I’ve heard nothing but in fact, during the talk, people at the event were texting me about how amazing like while they were in his talk about how amazing his talk was.

34:39
I actually saved 40 grand. So I asked Bill to wire me the remaining 60, but yeah, there was stuff that he talked about that I was not doing either. fantastic talk. Yeah. And then one of my favorite people and someone that I was so excited to see on the Seller Summit stage, Natalie Mounter. Oh, yes. She is, I will say she is our very biggest Seller Summit cheerleader. She is almost an OG. She started coming in 2017, so second year.

35:08
She brings, she always has other people come, like because of her new people are coming to Sellers Summit every year. And it was pretty funny. She emailed us, I don’t know, maybe five months ago and said, hey, I’m going to send you a proposal for a talk. Right. And we’re like, okay. And we were both a little nervous because we love Natalie and we, her energy, if you know her, if you don’t know her, her energy, she’s one of those people you just want to hang out with. She always has amazing energy and

35:35
A week later in our inbox, we get a deck of slides and a fully produced one hour presentation of her talk. Yes, fully produced everything. Like she’s on a stage. Like it was amazing. And she really recorded it just for us. And so I got like five minutes in, I’m like, she could be talking about the sun and she’s speaking. Like I don’t even care. But she gave an awesome talk on influencer marketing. She blew people’s minds really because

36:03
She doesn’t sell on Amazon, think at all, right? I don’t know if that’s for sure, but yeah. But she’s managed to grow a multimillion dollar business from influencers that she doesn’t pay. Yes, amazing. All free, all free. So that talk, definitely people were just like, you know, because

36:23
She basically showing everyone thinks like, oh, I don’t know how to find influencers. You got to pay them. And then they’re going to take my money and they’re not going to review the product. Whatever there’s we, I hear it all the time. You go into like the ECF forums and there’s always these horror stories about working with influencers. She gave this like step-by-step. is everything that I’ve done. She’s done it herself. So it’s like, obviously it’s working. Um, and definitely a talk that, uh, kind of all the like Liz’s talk, Natalie’s talk, Chris’s talk, Alicia’s talk. We’re all really about like, how are you using these like free resources?

36:53
right, to drive sales, build community, get people talking about your products that you’re not going to have to pay for advertising for. I also really enjoyed Spencer’s talk. Yes, did. Spencer Jan is the founder of Solo Stove. And he basically gave a talk on how he bootstrapped that company to a $2 billion IPO. Yes. And it was very heartfelt. Yes. It was. It was very personal. Yeah, like I

37:20
I want to say I teared up a little bit during his presentation. yeah. was like, oh, this is hard. Here’s what’s great about Spencer, other than he’s probably one of the nicest people I’ve ever met. Him and Jen could have like a nice off and see who was the nicest. He’s the most unassuming dude. You would never, you could never pick him out of a crowd, right? He’s just trolling along, but.

37:45
He basically, because I think we hear a lot of these talks about people that are like, you know, they grow these businesses to like, you know, crazy amounts of money and you’re just like, holy cow. But he basically talked about all the things he tried to do first that failed and like all these failures that led him to like making the decisions that he did with solo stove and some personal things that happened in his life. And I think that was very impactful because so much of the time we only hear the success and we don’t hear the failure that drives you to the success. And he did a really good job of

38:15
not focusing on the failure, but focusing on how you use those moments where you feel like everything’s failing to drive it to a place where you can find success. Yeah, amazing talk. I really enjoyed quiet lights talk also, because a lot of people don’t really think about this. They talked about the exact steps you must take if you want to sell your business in two to three years. Yep. And, you know, some people are getting some people don’t want to run their business forever. And

38:45
you should always keep in the back of your head, maybe you want to exit someday. But in order to do that, you have to take specific steps to make your business sellable. Yeah. And so it was a great step by step talk. It’s funny because like, I think people think, oh, I’m not planning on selling my business right now. But then so many people at Seller Summit have sold one of their businesses through quiet lights. Like, yeah, you’re probably going to be talking to them at some point. I want to say Meg just sold her business, right? Yes.

39:13
our good friend Carol Reins sold with them. And then we just had an exit me like Andrew Udarian. Yeah, just had an exit through. Yeah. Yeah. So yeah, I think that that’s it’s one of those things where you can’t just wake up one day and decide to sell your business. Like you have to have all these things in place to do that. And so that talk, even if you’re thinking like in five years, I want to probably sell this. It’s definitely worth doing because wouldn’t it be nice when you get to that point of like, hey, I think it’s time to sell that like you’re not having to go

39:42
I mean, like Mike was talking about some stuff, I think when he sold Color It, of like that he didn’t know that he was supposed to do. Right? And it was like this nightmare. I think it was the, what was it? The buybacks? I don’t know what the right term was. He had some other things that were, he had like multiple brands under a single Amazon account that he had split up. It was kind of a nightmare. So these are all things that if you take care of them in the beginning, it makes your life a whole lot easier later on. Yeah. And we should have talked about this talk earlier, I think, but Megla.

40:10
talked about sourcing from India, which I think a lot of people are down on sourcing from Asia right now. think that’s been, we’ve kind of had a talk like this. I think a couple years ago, our friend Nathan talked about like kind of pushing things through Mexico. I think it was like a tariff talk, things like that. But she did a really good talk. I actually was speaking at the same time, but I heard lots of good things about her. Yeah, I was in her talk. She actually threw in Vietnam also. Oh, nice. It was India and Vietnam. She sourced this and she travels there all the time.

40:39
Yeah. And so she basically talked about what each country was good at. Yeah. And which products do well over there, which which products have lower pricing, what the labor costs are in each country. So you can gauge what types of products you want to produce where. Yeah, I’m going to actually go back and watch that talk because I’m like, that’s really interesting to me. I think everybody thinks that they can only go through Asia to to source products. But there’s a lot of other options out there. And she is definitely an expert on on that for sure. And we also had Mike Epstein come and talk about

41:08
postcard marketing. Yes, I had done this case study with my own website. And I got I think like a 16 X ROI. Yeah, I think people stopped selling stop sending snail mail with the advent of email. And then now that email is getting I don’t want to say saturated, but it’s getting more competitive, way more competitive, less people are sending direct mail. And so direct mail really works well. Yeah, right now, if you haven’t tried it yet.

41:35
I would highly advise that you do it. And he had a really good talk because he basically broke down the, once again, the exact steps you have to take to do this, how they can actually get addresses, things like that for you, as well as like the actual like real hard costs in doing this. Like how much does it cost to send a postcard? How much does it cost to do this? And so it was, and it was funny because I was actually sitting in that talk.

41:57
with several people that I know fairly well. And one of them, I was like, this is exactly what you need to be doing. So the whole time he’s talking, I’m like texting my friend, like, okay, and then you just send this and then you send that. And he’s like, I was thinking the same thing. And I was like, yes, of course. And it’s funny, because I used to work for a mailing company. And I was a little bit down on it after that experience. But some of the things that they’re doing today, which I’m pretty far removed from it now, it’s pretty cool. And it’s pretty cool what they can do. One of the things I think is really

42:26
neat is they can actually match your handwriting. Yeah. you could like they have like a handwriting machine so you can you know looks very handwritten which I think is pretty cool. Like I think I think anything with personalization is really works very well whether it’s email direct mail text anything. And so I think that’s a cool feature that you can do. I think the coolest part is that it can be completely automated like Klaviyo. Yes. Which is crazy to me too. Like and because we were because you can do an abandoned postcard right. Yes. Which is

42:55
Nutty. Like when you think about that, you’re like, what? And so I asked him a question. I was like, hey, like what’s the turnaround time? He’s like 20, 40, 48 hours. Like they’ll get that thing in the mail. It’s like, what? It’s crazy. So very cool stuff that they’re that not only that Mike himself is doing, but like in general that you can do with this direct mail marketing. And then I wanted to save the best for last, which is how we close it out. Our good friend Dana Jean-Zemes gave just an incredible keynote.

43:25
I listened to it the entire like I didn’t get distracted at all. No, she has such an amazing story. And I don’t want to spoil it. Nope. I don’t know what you want to say about all I can say was Dana is so humble. Yes. And she’s always like, I’m not really a speaker, but I’ll speak. Yeah. But I think she’s an amazing speaker. She kept everyone riveted from beginning to end. Yes. So what’s funny is I knew I wanted Dana to be a keynote like five years ago.

43:53
But at that point, I didn’t think the story worked. I felt like she was still in the middle of her businesses. She hadn’t sold yet. She’s sold her businesses now. But when we were at ECF this year, I said, I really want you to give the keynote at Seller Summit the closing keynote. And the first thing she said to me was, does Steve know? Why would she ask that, I wonder?

44:17
And I was like, I don’t really care if Steve knows, I’m like, this is what you’re going to do it. You know, and she at first was like, I don’t think I’m the right person. know, typical Dana, so humble. And I said, here’s exactly why I want you to do this. And I kind of listed out a couple of reasons of why I felt like she was the best person to do this. And she was like, I’ll do it, you know, and it took me the week of VCF to like convince her to, to agree to it. But she, the whole time she’s like, and Steve knows.

44:46
And was like, first of all, I’m the boss. Steve doesn’t clearly you’re not. Clearly you’re not. Dana had to ask. But what was, I don’t want to spoil it either because I thought it was so awesome. But one of the things that I thought was really cool and I got an email from Dana afterwards was that so many people came up to her and were impacted by her talk in very different ways. So some people were impacted by the personal stuff.

45:14
Some people were impacted by the business stuff. Some people were impacted just by who Dana was. And she said she was overwhelmed with how many people came up to her and were just like, you were speaking directly to me. And it was like male, female, new business, old business. It kind of resonated with everyone, which was, thought was really cool. And I knew it would based on what I know about her.

45:40
her life in the topics. But yeah, she just knocked it out. It was a great way to end seller summit, but topped off by the fact that during her talk, you found out that you made the best seller list. that was even better. So was kind of a good. Yeah, it was a good just overall like win. Yeah. I want to take some time to also thank the sponsors who made the show possible. We already talked about Walmart. We already talked about Trivium. And we’ve already talked about Data Dive.

46:09
but I want to give a shout out to Quiet Light, who has been a long time sponsor of the event. If you’re looking to buy or sell your business, reach out to them. I also want to thank Air Wallachs. One of the themes of the show, kind of piggybacking on Bill’s talk was, you know, how do you manage your finances? How do you save money with your business? If you’re sending payments overseas to your suppliers, which you probably are, Air Wallachs is probably the cheapest way to do that.

46:37
They have super low fees and they make it super convenient. think we talked about Getita already. did. Yeah. Getita, if you have a ticket, you can get $400 in free reimbursements. I think the link should be underneath somewhere on the website. If not, send an email to us and we’ll get that to you. Yeah. I always love Pam. She runs RPC Logistics. If you need a reliable freight forwarder who is very friendly and very attentive to your needs,

47:06
I highly encourage you to go check out rpclogistics.net. Actually email Pam at rpclogistics.net. She will hold your hand throughout the entire process. I trust her. And then our friend Steve. Steve Weigler. Crushes it every time. He crushes it every time. Let me tell you about some of the services. He specializes in IP protection. So let’s say you’re getting knocked off in China. He’s actually had luck with the console in China to shut down the factory that’s

47:35
initiating the copies in the first place. And in the US, he’ll help you with your copyrights, trademarks, and that sort of thing to make sure you can take down copycat listings on Amazon as well. That’s especially Yeah, it’s funny because we know Steve, we’ve known him for a long time. And we’ve worked with him like he’s our friend, but he has also done some work for us. And it’s funny because he’s like the nicest guy. And then when you need him to do work for you, he’s like this pitbull, right? He like immediately turns you’re like, what happened to friendly Steve, like he’s gone.

48:03
So yeah, he’s great. He was giving free consults to actually I think he’ll get on the phone with anybody, right? Is that his policy? Yes. Yeah, you’ll get on the phone. S Weigler at EmergeCouncil.com S W E I G L E R at EmergeCouncil.com Yeah, and then we’ve we’ve bagged on Amazon a lot, but they were actually a very great last minute addition to the event with but a division of Amazon their buy with prime. Correct. Which is

48:32
Something that’s pretty cool, and I actually just watched a webinar this week about the Clavio integrations with BuyWithPrime and the stuff. Oh yeah. So it’s brand new. Just launched this, I think in the last like seven days. But the integrations that they’re doing and the ability that you have now on Clavio to use that data and purchase data and information about the customer, pretty awesome. Very seamless integration, very easy to use. So definitely worth checking out, especially

49:00
if you already are using Klaviyo, it’s kind of a game changer, I think. So what Buy With Prime is, it’s a button that you can have on your site where it mimics the Amazon shopping experience. Like the address, payment info is already there and they can basically check out a one click from your website. Yeah. And then that item is filled by Amazon in two days or less. or less. And now you get all that data and it just syncs right into your Klaviyo data. Correct. You get the email address, everything. Yeah.

49:30
And all the like, it’s basically like the customer, know, it’s your customer, it’s your customer, right? It’s not Amazon’s customer. So correct. Pretty cool what they’re doing. And then our friend Sue was there from Armanino, probably one of the largest accounting firms. It’s actually kind of hard to find an accountant for e-commerce because it’s kind of like a more specialized version of accounting and Armanino specializes in that among other things. Yeah, she was great. She did some roundtables for us, talked to people.

50:00
A lot of people try to do this on their own and then they get in a lot of trouble or they go to sell their business and it’s a hot mess. So, definitely something that you want to work on early in the business rather than waiting till, you know, the end. But yeah, there, she was great. I was glad to have her there. It was her first year at Seller Summit. So it was fun to have her. Yeah, absolutely. And I’m trying to think of anything else that, oh, I also want to say this.

50:29
I felt like there was a lot more women this year coming to event. Did you feel that way too? There was a lot more women coming to the event. I want to say it was almost 40%. I going to pat myself on the back for this one. I am going to. Not for my talk. My talk was fine. You can find it all on YouTube anyway. No, I was very proud of this. Dana and I, we were at ECF and not to, I ECF is working on this too. So it’s not a dig on ECF, but.

50:58
Uh, we were at ECF at Nashville 2015. And I think we were each between us. was me, Dana, Carol Reigns, Miracle, and like two other women at the entire event. And it just felt like you were on an Island and her and I for the past, whatever eight years have talked about, like, how do we get, there are a ton of women in e-commerce. How do we get them to come to events? Um, and one of the ways that, you know, her and I both felt like that could be done was to incorporate more female speakers, which is tough in a way because you don’t know a lot of.

51:26
you don’t associate with a lot of, not in a bad way, but like most of your friends are dudes. of my friends are dudes? In the e-commerce world, yes. Oh yeah, probably. Yeah, the people you hang out with, which is normal, you’re guy. Like most of my friends are women. Right. So, you you and I both worked really hard in finding very successful, competent, great presenters that were female this year on purpose. And I think their presentations were amazing. They knocked it out of the park.

51:53
And I had so many people come up to me, Dana had people come up to her, females, I felt so included. I finally found a conference where I feel like I belong, it’s not a bros club, that sort and our guys are amazing too, which is nice because there’s not this feeling of like, you know, it’s a level playing field. And so I think to me, that’s what made this event the best for me was looking around and feeling like, finally, I’m like, oh, and like, I don’t care if you’re a guy or a girl, like what you’re doing, I just wanna learn.

52:23
but it feels nice to be in a room where you’re not the only one. And so that’s definitely something that I’m very proud of this year and I would love to see that. I mean, we’re gonna continue obviously. just think the, I don’t know who’s back to Pat, but I just think that the audience that comes to Seller Summit, they’re just all people that I would wanna hang out with Yes, awesome, awesome people.

52:48
Hope you enjoyed that episode. And once again, if you want to grab all the recordings for Seller Summit 2023, head on over to sellersummit.com. That’s S-E-L-L-E-R-S-S-U-M-M-I-T.com. And I can almost guarantee you that you’ll get a ton out of the content. More information about this episode, go to mywifequitterjob.com slash episode 471. And once again, I want to thank Sellerboard, which is the Amazon profit software that I recommend for Amazon sellers.

53:15
By going over to mywifequitterjob.com slash seller board, you can get 30 days for free. Once again, that’s mywifequitterjob.com slash S-C-L-L-E-R-B-O-A-R-D. I also want to thank 180marketing.com for sponsoring this episode. 180 Marketing is the agency that I use to grow my search traffic by 4x in just six months. More information, email Jeff at 180marketing.com. Now I talk about how I use these tools on my blog, and if you are interested in starting your own eCommerce store,

53:44
Head on over to MyWifeCoderJob.com and sign up for my free 6-day mini course. Just type in your email and I’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!

470: Sneaky Copywriting Tricks Ecommerce Stores Use To Hook You – Family First Friday

470: Sneaky Copywriting Tricks Ecommerce Stores Use To Hook You - Family First Friday

Welcome to Family First Fridays, a special segment of the podcast where I publish solo episodes to teach you how to make money without sacrificing your lifestyle. 

If you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur, head on over to https://thefamilyfirstentrepreneur.com and fill out the form to get over $690 in free bonuses.

In today’s episode I discuss psychological mind games that you can use in your copy that can help you make more money with both your online store and your Amazon business. 

What You’ll Learn

  • The art of persuasion
  • Psychological hacks that will elevate your sales game
  • Copywriting tricks to use in your email campaigns

Other Resources And Books

Transcript

00:00
You’re listening to the My Wife, Quitter, Job podcast, where I teach you how to make money online by exploring different tools, strategies, and understand how to leverage human psychology to grow your sales. Welcome to a special segment of the show called Family First Fridays, where I’m going solo to give you my thoughts on how to make money without sacrificing your lifestyle. Now, if you haven’t picked up my Wall Street Journal bestselling book, The Family First Entrepreneur yet, head on over to mywifequitterjob.com slash book and fill out the form to get over $690 in free bonuses.

00:30
Today’s episode is particularly fascinating. We are discussing psychological mind games that you can use in your copy that can help you make more money with both your Shopify store and your Amazon business. We’ll be exploring powerful techniques backed by science to help you establish trust, build rapport, and ultimately influence your prospects to buy from you. So get ready to learn the art of persuasion and the psychological hacks that will elevate your sales game to the next level. Now, before we dive in, if you are interested in learning how to sell online,

00:59
Make sure you sign up for my free 6-day mini course over at mywifequitterjob.com slash free. So this first psychological strategy is called the Zagarnik effect. Now the Zagarnik effect is a psychological phenomenon named after its discoverer, Soviet psychologist, Bluma Zagarnik. And the effect refers to the tendency for people to remember interrupted or incomplete tasks more easily than completed tasks. For example, Zagarnik found.

01:28
that the brain maintains a state of tension or cognitive arousal when something is not complete, which acts as a mental reminder to finish the task. And this tension is only resolved once the task is done. So in a nutshell, Zygernik discovered that humans are bothered by loose ends. Now, have you ever binge watched an entire Netflix series because you just had to find out how it ended? I know I have, and human beings just don’t like to leave things unfinished. So how will it make you money?

01:57
Well, you can use the Zagarnick effect in your emails to entice your customers to open or click on your emails by creating a cliffhanger in your subject line or your email copy. For example, if you use the email subject line, this is the craziest deal we’ve ever offered. This is what will happen in your customer’s mind. Wait, what crazy deals? I have to know what those crazy deals are, and then they’ll open your email. Then in your email body, you can show the customer a crazy discounted deal and then tell them to click here

02:27
to see all the rest of your crazy offers. And this works well because humans need closure and they’re only going to get it by taking the actions that you give them. In other words, you are using psychological mind games to lead them to buy. The next psychological strategy is called the anchoring bias. Now anchoring bias, also known as the anchoring effect, is a cognitive bias that causes people to rely too heavily on the first piece of information they receive, also known as the anchor, when they make their decisions.

02:56
And you can use the anchoring bias to significantly influence how customers perceive the value of your products and the pricing. Now you’ve probably seen this in action many times on Amazon. For example, when you display the original price of a product next to a discounted price, the original price serves as an anchor, making the discounted price seem like a much better deal. And customers are much more likely to perceive the product as a good value because they compare it to the higher original price. Another example,

03:25
is when an e-commerce store displays a high-priced item next to a similar but lower-priced product. The higher-priced item serves as an anchor, making the lower-priced product appear much more affordable and attractive to customers. So how can you leverage this in your email or your marketing copy? All you got to do is talk about something really expensive at first and then present your much less expensive product afterwards. Here’s an example of price anchoring that I saw just the other day when I was shopping for mattresses.

03:55
If you’ve been dreaming of a great night’s sleep on a high-quality mattress, you might think that you need to pay upwards of $10,000 to $15,000. And the reason these mattresses are so expensive is because they are marked up by a bunch of middlemen. At our company, we cut out all the middlemen and sell to you direct at the best prices. Our affordable range of luxury mattresses start at only $2,000 and provide the same level of comfort and support as those expensive big name brands, but without the hefty price tag.

04:24
See what they did here? They got me thinking that mattresses should cost 10 to 15K and then they presented a $2,000 mattress. Incidentally, this is why you should always list your products in your online store from high to low. That way you train them to expect higher pricing and it only gets better as they scroll through your products. Now along the same lines of price anchoring, it also helps to introduce decoy products in your online store. Now there’s a famous magazine,

04:53
that tried to sell both their print and web versions of their content. So they priced the web version at $59 and the web and print version at $125. And when the prices were presented this way, 68 % chose the cheaper web-only version, which made $4,000, and 32 % chose the web and print option, which made another 4K for a grand total of $8,000 in revenue. But then they decided to introduce a decoy product

05:23
that offered the print-only version at $125. So basically they had the web version at $59, a print-only version at $125, and a web and print version at $125. So basically the print and the print and web version with the exact same price. And the upshot of including this decoy product was that only 16 % chose the cheapest $59 plan, and a whopping 84 % chose the web and print version

05:52
and they ended up making 12K. The decoy product anchored the price higher and encouraged people to spend more money. Now this next psychological strategy is simply telling a story and you wouldn’t believe how well this works. Once upon a time when my kids were young, my wife and I went shopping for baby slings. And I distinctly remember that we were in this baby store looking at a dozen different types of slings and it all blended together until the sales clerk started talking about their most expensive sling.

06:23
She told us that this particular sling was designed by a 70-year-old Japanese man who always wanted to have kids but could not due to infertility problems with his wife. So he decided to devote his entire life towards making baby slings and carriers. And then she pointed out specific aspects of the sling where the man had an incredible attention to detail and we fell for it. Now this sling was easily 2X more expensive than any other one on the market, but we ended up buying it because of the story behind the sling.

06:52
And I’m pretty sure every other cheaper sling could have done the job, but we made an emotional purchase. Buying anything is rarely logical, and you have to appeal to a person’s emotions. And storytelling does exactly that. This next psychological tactic you can leverage is something called the bandwagon bias. Now the bandwagon bias, also known as the bandwagon effect, is a psychological phenomenon where people tend to adopt a certain behavior, attitude, or action

07:20
because they see that many other people are doing the same thing. And this bias is driven by the desire to conform to the social norms, fit in with everyone else, and avoid feeling left out or isolated. Now here’s what I’ve discovered after selling hankies for over 15 years. People are like lemmings, and they tend to follow everyone else. So all you have to do in your email copy is something along the lines of…

07:44
Join over 121,000 other shoppers who purchase handkerchiefs instead of disposable tissues to save the environment. Gather testimonials, reviews, shout-outs, and case studies showing other people using and loving your products, and that will entice other people to follow suit. Now, according to Market Tailor, consumers who interact with reviews are 115 % more likely to convert, and the more reviews that you have, the higher your conversion rates. So make sure you mention this in your email or your marketing copy to grow your sales.

08:15
Now this next psychological tactic is even more effective than the other four in this episode, and it’s something called confirmation bias. Now confirmation bias is a cognitive bias that causes people to seek, interpret, and remember information in a way that confirms their pre-existing beliefs or hypotheses. Now this bias often leads to a distortion of evidence or selective focus on information that aligns with one’s existing opinions while ignoring or discounting contradictory evidence.

08:45
So how can you leverage confirmation bias in your email copy? The key to using confirmation bias effectively is to understand your audience and empathize with them. Let them know what you think, let them know how you feel and act like them. For example, we sell wedding handkerchiefs for brides and here’s some copy that leverages confirmation bias. Congratulations on your engagement. This is an incredibly exciting time in your life and we understand how important it is for you to have the perfect wedding that you’ve always dreamed of.

09:14
We also understand how complex planning a wedding can be, and you want to have a lasting keepsake of your special day. So let us take care of your wedding keepsakes for you. We offer a line of wedding handkerchiefs where you can include the bride, groom, and wedding date, or whatever text you want to create a lasting memory of your special day. And these handkerchiefs can then become your something blue as well. Now the more you can relate to your customer in your copy, the more likely that they are going to buy. Here’s another psychological tactic you can employ.

09:43
and it’s called action bias. Action bias is a psychological tendency for people to prefer taking action. And this bias arises from the desire to feel and control, to make progress, or to avoid the discomfort of uncertainty and inaction. People often perceive taking action as a sign of productivity or competence. So how can you leverage this action bias? When asking people to buy from you, make sure you let them know what will happen if they don’t buy

10:12
and this will nudge them towards making a purchase right now. Here’s an example. Are you tired of spending 40 hours a week at a job that you don’t like? And wouldn’t you rather be spending your time with your loved ones or actually doing what you want? Order my book, The Family First Entrepreneur, and learn how to achieve financial freedom right now. And if you order right now, you’ll receive a free three-day workshop on how to get started in e-commerce, a two-day workshop on how to make passive income with content, and my six-week Family First Challenge.

10:40
where I will personally help you find your next side hustle idea. By the way, the example that I presented to you is real. I have a Wall Street Journal bestselling book called The Family First Entrepreneur, and you do in fact get $690 in bonuses for picking it up. Now this final cognitive bias to use in your email and marketing copy is what I call the speak easy effect. The speak easy effect states the words that are easy to say and understand are more trustworthy and valuable. In other words,

11:10
Don’t use big words in your copy. You might think that using SAT words in your emails will make you come across as smart, but it’s secretly having the opposite effect on your sales. And my general rule of thumb is that you should write like a fifth grader. Make your copy and your product simpler and not more complicated and more people will buy from you. And once again, if you found all these psychological strategies and cognitive biases interesting, let me know. Send me an email and maybe I’ll produce another episode just like this one.

11:40
Now that you understand more about human psychology, make sure you listen to my podcast episode on 5 key insights that made me over $17 million. That episode can be found at mywifequitterjob.com slash episode 455.

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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!

469: The Secret Art Of Instantly Connecting With ANYONE With Andrew Warner

469: The Secret Art of Instantly Connecting with ANYONE With Andrew Warner

Today I have my friend Andrew Warner on the show. Andrew is the founder and host of Mixergy, which is one of the OG interview based podcasts in the world.

During the pandemic, he released a book called Stop Asking Questions: How to lead high Impact Interviews, which I read cover to cover. And I wanted to bring Andrew on the show today to talk about people skills because I know that my businesses didn’t start taking off until I started building relationships with other business owners.

What You’ll Learn

  • How to connect to people who are more successful than you are
  • Key takeaways from Andrew’s book Stop Asking Questions: How to lead high Impact Interviews
  • How to build relationships with other business owners

Other Resources And Books

Sponsors

Sellerboard – Sellerboard is a must have tool for Amazon sellers if you want to know how much profit you are actually making. Click here and try Sellerboard for FREE.

180 Marketing – 180Marketing is the agency that I used to grow my SEO traffic by 4X in just 6 months! Click here to book an appointment

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 the strategies they use to grow their businesses. Today I have my friend Andrew Warner on the show, and Andrew is the founder and host of Mixergy, which is one of the OG interview-based podcasts in the world. And during the pandemic, he released a book called Stop Asking Questions, How to Lead High Impact Interviews, which I read cover to cover. And I wanted to bring Andrew on the show today to talk about people skills.

00:28
because I know that my businesses didn’t start taking off until I started building relationships with other business owners and Andrew is a master of it. So enjoy this episode. But before we begin, I want to thank Jeff Oxford of 180 Marketing for sponsoring this episode. 180Marketing.com is an agency that specializes in helping e-commerce stores boost their SEO traffic. And in the past, I used Jeff and his firm managed to grow my search traffic by 4x in just six months. In fact, 180 Marketing

00:57
is one of the few SEO agencies that I trust 100%. For more information, go to 180marketing.com or just email Jeff at 180marketing.com. I also want to thank Sellerboard for sponsoring this episode. Sellerboard is profit analysis software that helps you figure out exactly how much profit you are making selling on Amazon. Now, if you’re an Amazon seller, you’re probably aware that there are many hidden fees in selling on the platform and Sellerboard organizes all that information for you in a clear and concise fashion.

01:25
Now personally, I recommend Sellerboard because they’re among the least expensive software that I know of that does this, which is one of the main reasons why I like them. For more information, go to mywifecouterjob.com slash sellerboard and try them free for 30 days. It’s literally a no brainer. Once again, that’s mywifecouterjob.com slash S-C-L-L-E-R-B-O-A-R-D. And then finally, I wanted to mention my other podcast that I run with my partner, Tony. And unlike this one, where I interview successful entrepreneurs in e-commerce,

01:53
The Profitable Audience Podcast covers all things related to content creation and building an audience. No topic is off the table and we tell it like how it is in a raw and entertaining way. So be sure to check out the Profitable Audience Podcast on your favorite podcast app. Now onto the show.

02:16
Welcome to the My Wife Clutterjob podcast. Today I’m really happy to have Andrew Warner back on the show. Andrew is largely considered to be one of the best interviewers on the planet. His show Mixergy is one of the OG interview-based podcasts and is a place where successful people teach ambitious upstarts. The guy has done over 2,000 interviews on Mixergy, including Barbara Cochran, Gary Vee, Paul Graham, countless others, which is more than 5X the number of people interviewed than I’ve personally interviewed.

02:45
And he has this magical way of getting people to open up about themselves and spill the beans, so to speak. So in late 2021, he released a book called Stop Asking Questions, How to Lead High Impact Interviews and Learn Anything from Anyone. And I just finished reading it and it was a fantastic read. Even if you aren’t interested in starting an interview-based show, I think the skills that we’re gonna learn from Andrew in this episode apply to all aspects of life, including making friendships deeper.

03:12
Getting to know someone better how to approach one of your heroes pretty much everything. Thanks for having me on Steve. Yeah, so it’s it’s been a while since we last spoke and You’ve been running mixer G for a very long time I think the last time we hung out was at the many chat conference Yeah in Austin was it in Austin you were really in the chatbots back then I think you created a company and then you later sold it right? Yes. Yeah, what are you into right now? Because what I found with you

03:42
is what you’re into tends to be like the next big thing. Yes. I started running out of ideas for a while. Chatbots were fascinating and I got obsessed with those. Before that, was just personal development, how to deal with the way that I was thinking. I got obsessed with that. I did an in-person meditation event. Tim Ferriss came and spoke and participated in it so many others.

04:10
And then I ran out of ideas and I came to Austin and I took a bunch of time off and the Airbnb we were in as we were looking for a house to live in had a guitar. And so I tried playing the guitar and I’m still trying. I got a chess teacher and I learned how to improve my chess game. And then I bought some property here in Austin and I learned how to do stuff with my hands, which was brand new. And then.

04:40
An old friend, Ben Ha, who I’d interviewed about how he created a thousand meme sites years ago, he asked me, do you know someone who could interview me? I’ve got this new company that builds DAOs and I need a way to explain to people what these decentralized autonomous organizations are. And I said to him, if they need to know how to interview, yes. If they need to know DAOs, yes. But if they need both, I don’t know anyone.

05:08
but if you can wait till I’m done with my time off, I’ll do it. I went away, I completely disconnected. And then I came back and I did a set of interviews with him on these DAOs that he put together and they were fascinating. And I turned it into a podcast. And then I started learning more about DAOs through just a friend interviewing a friend. And I have all the equipment set up and so it wasn’t a problem. And then I said, Ben, you need to…

05:37
talk about it in more ways, talk about more than just the DAOs you put together, and I need to learn more about it. How about if we work together? I’ll do a podcast with you on DAOs. I’ll have somebody write it up. I’ll have somebody else turn it into videos. You’ll get more output and more content for your people. I’ll get to learn. And it’s been a great way for me to learn because that world has been impenetrable for me. I don’t even know what that is, just to be fair. Can you explain it in

06:06
very simple terms so that people can understand. Yeah, I’ll tell you the story of how he got into it. He and a bunch of people who were all funded by Y Combinator had a chat group just on WhatsApp where they were talking about the different investments they were making in NFTs. Basically, they were buying pictures, investments they were making in Web3 crypto companies, and they were just chatting and giving each other information and making each other laugh and dreaming about what the future could be.

06:35
if these companies that they were backing succeeded. And they said, you know what, let’s invest together. And what they came up with was they said, look, if we just do another standard investment, we’re not really stretching ourselves. What if we create a Dow, decentralized autonomous organization, where every one of us, and it became hundreds, every one of us in this chat room can help find the companies for us to invest in. And then when we do, every one of us can…

07:03
help support the companies that we invest in. Cause if we’re hundreds of entrepreneurs here and a company gets funding from us, they should also be able to get us to open doors for them, to make introductions, to get them clients and all that. And so they said, okay, this is what we’re going to do. But wait, if we do all that, what if one person does a lot more than the other? Do we just say that’s okay? Or can we use this Dow to give that person more points?

07:29
And so they created a token so they could give whoever does more more points. And that’s essentially what a DAO is, a group of people who work together and they use these tokens for points to reward people who do a lot. So it sounds like a traditional venture capitalist model with a little crypto mixed in. In many ways it is. The challenge with the traditional venture model is, and through Ben I’ve been introduced to others who’ve done this model,

07:56
The challenge is it doesn’t scale, which is why you don’t see a venture capital firm with hundreds of partners who are all looking for deals, supporting deals and so on. At some point it doesn’t scale. And so you end up with a few people who get the bulk of the rewards, financial rewards, and the others who are doing the work, but they’re doing the work as kind of hired hands, getting paid okay, but mostly getting paid in experience.

08:23
And what this DAO was called, Orange DAO, what they did was they started to basically share in all the upside. And then because it’s a DAO, they came up with new ideas too. They were all sitting around saying, wait, why are we investing in companies? Can we invest in people? And so they came up with this way to invest in people and they keep innovating and coming up with creative ways. And so what the DAO does is it allows a broader group of people to participate. I love it. See, that’s the type of

08:52
crypto or Web3 that I can get behind, not these NFTs that were out that crashed. So, yeah. Me too. I tried an NFT, like I tried buying one. I tried making some when they started out of curiosity to learn. I didn’t want to be someone who just dismissed it, but I ultimately said, it doesn’t do it for me. This does, like you said, this kind of makes sense for me. A community of people work together with some kind of point system and the point system isn’t just to…

09:19
reward people who do more, and to be petty about keeping track of who does what. The point system also allows for someone who has limited capacity to pick who they work with. And I’ll give you another example. Through Ben, and that’s the beauty of interviewing, if I were just to meet someone at an event, I could get maybe a good half hour conversation about this, and that’s it. And it’s impolite to dig in deeper. But through interviews, you get to meet more and more people. So Ben introduced me to

09:49
this group of venture capitalists who said, let’s try a DAO as a way of disrupting our model. And I spent a long time interviewing the founder, Jules, of a DAO called VC3. And I said, okay, tell me more about what these points do. And she started saying things like, well, we have very limited resources personally. How do we know which potential…

10:16
portfolio company we should spend time with? How do we know who we should help? Well, actually, me say it this way. I said, you’ve invested in a few portfolio companies. Can all those portfolio companies have the names and email addresses of the people in the DAO so that the portfolio companies can reach out to all of these people and say, help me when they need help? And I said, that’s the way Orange DAO works, the Y Combinator DAO. You can contact any one of the members and just say, I need help.

10:45
And Jewel said, look, the difference is at Orange, you’re all entrepreneurs. They have more time for other entrepreneurs. We’re all venture capitalists. We can’t make ourselves as open as they are. And we’re a smaller group of people, so we can’t be as available. But she said, what we’re doing now is every one of our portfolio companies gets some tokens, and they could use those tokens to basically buy access to the venture capitalists who are within this community and get help. And so does that mean that

11:14
Every interaction you have to pay for a token to get, no, but it does mean that if you can’t reach them any other way, or if someone who works for one of their portfolio companies can’t reach them any other way, they could use a token. Bottom line, this is fascinating. To me, the bigger takeaway is whenever there’s a topic that I’m super interested in, I should just launch a podcast and forget about how many people in the audience are listening. Just use it as a formal way of learning. That’s exactly what I did with this podcast.

11:43
I went into this podcast not wanting to make any money at all, or that wasn’t my intention at least. I just wanted to meet people and people tend to open up when you have an hour with them. I thought you were one of my early role models because you just had this way of getting people to open up. One, you had fantastic guests, which is something I wanted to get into also, but then you also had this way of getting people to reveal stuff that I thought that they

12:13
didn’t actually want to reveal, if you know what I mean. Like, you always manage to get revenue numbers and, well, okay, let’s start with this. Let’s say you’re interviewing someone who you feel like is above you or way more successful than you are, right? Or maybe you’re a fan boy of that person. First of all, how do you deal with people like that personally, you know, in your mind also, and how do you get people like that to open up or perceive you as an equal, so to speak? My challenge has been that I think

12:43
they’re gonna say to themselves, am I even doing talking to this person who clearly doesn’t know enough? Or they’re going to use me and take advantage of me because if I don’t know enough, then they’re gonna start to use me as a way of getting their message out. And I’ve always been worried about that. My solution has been to go into it admitting, I don’t know this. The reason I’m asking you here is because I don’t know this topic and I’m trying to figure it out. Will you help me and-

13:11
Through helping me, there’s another audience out there, a bigger audience than just this one person listening, who have similar questions, and you could help them understand. Now, in the early days, there wasn’t a much bigger audience, so what I would say is, in addition to me, there’s someone who is going to be driving to an interview with you, listening to this podcast episode as a way of understanding you. There’s going to be somebody driving to an interview with one of the people you hired,

13:41
And they want this job interview to make sense and they want to figure out, I even be working for this company? And this interview will help them answer those questions and others. And so I would walk in and be very open that I’m trying to learn. I’m a student, not an expert. And then I would say, you’re teaching me, but through me, you’re teaching other people. And if it wasn’t a ton of other people, it would be one other person. I remember actually, jib jab.

14:08
was this content site that was super popular. They kept making viral hit after viral hit, and then they also made these apps that would make viral hits. It was all about like this fun musical things, and then their app would take their viral videos and let you put your face in them and your friends and family’s faces in them. Anyway, I didn’t have an audience when I interviewed the founder. He basically was doing me a favor, and he looked like it when I first got him on camera. He was like wearing a baseball hat and paying attention to the connection and so on.

14:38
I wanted him to take it seriously. And so before the interview started, I said, I want to do an interview that your grandkids, when they say, how did grandpa get so successful, will come back and listen to, to understand their family history and how they got and how you got where, where you all are. And I knew it resonated, but I didn’t know how much until years later, he contacted me and he said, could I have a copy, like a crisp raw copy of that interview that you did with me?

15:07
for my family. And it was that kind of connection. And that did make him take it seriously. And at the end of the interview, he said he wished he hadn’t had his baseball cap on and that he had actually come in prepared. But this was the early days of podcasting and he didn’t know what to make of this. And he didn’t know me from Adam. So I think about myself as a student and then the audience as the bigger group of people that they’re educating. And I give the importance if I can’t give the size. did you know to say that? How did you know that was going to resonate with him?

15:38
Because that’s what I cared about personally. I really wasn’t looking for massive audience through interviewing. I came to interviewing as a way of learning so that I could build something massive. And so I just was really open about what my goal was. And I’m someone who loves biographies and wanted to create the kinds of biographies that moved me. And I noticed that a lot of successful people, if they didn’t read as many biographies as I did,

16:06
They read a few that stuck with them and used those as guides. And so I thought there are going to be people like me out there who want the modern biography. And that happens to be podcasting, not necessarily books. You know, what’s funny is I’ve taken a similar approach as you have in the past, but sometimes what ends up happening is that person just ends up promoting everything that they have. sometimes I struggle to stop them from, you know,

16:34
answer the question, stop pushing what product or something that’s coming out. How do you stop that from happening? Because the larger people, typically have an agenda if they’re coming on your show, right? And the problem with the larger people is they are very well trained. At one point, I did the world’s first billion dollar jackpot. Warren Buffett backed it, his company did. And so I got to be on a lot of media, including on Good Morning America. And before Good Morning America, we just, I think, found out about it on like Friday.

17:03
Somehow in my office in Midtown was a pair of media experts sitting in my conference room training me on every possible answer and watching every reaction that I gave to see how I looked, how I sounded, and what the words were. Super analyzed with someone else on my team watching. And we spent hours. I was so exhausted. I love training this type of thing. This was my dream.

17:31
And I was still exhausted from all that work. And then when I went on Good Morning America, the challenging questions didn’t even seem challenging. I thought they went easy on me. wasn’t until I listened to it afterwards that I realized, no, they didn’t go easy. They were, they were challenging me. just practiced. And what I did was I gave them my practiced answers. And so when I interview somebody who’s really far ahead in business, they often are super practiced and I don’t think I like them. Look, I don’t think I like them as guests. If you look at what’s his name? Mark Cuban.

18:02
I listen to a lot of his interviews. He repeats the same thing and I admire that he could still laugh at his own stories to sell the story so well. Especially now that I see people who do YouTube clips where they clip the same story from multiple interviews and you see him laugh and sell it and get lost and enjoy the story every time and you think, oh.

18:26
That’s a clearly, he may not have a media expert sit with him, but that’s clearly a practice story that he told at cocktail parties or beer and then at interviews. And so I don’t necessarily like the big name interviews. People always ask, who’s the next big name you want on? I find they’re mostly too prepared. How do you get beyond that? I get that a lot actually. It’s only mainly for the big people. They have set answers and I always listen to their interviews beforehand that they’ve done in other podcasts and whatnot. And they tell the same stories.

18:55
So how do you get them to open up? One thing to do is, it’s kind of a ballsy thing to do, but I think it helps is to call it out and then to call it out with appreciation and to say, I’ve heard you say that. I love that story. I’ve heard it on these other podcasts. You know, I did my homework and I want to go a little deeper. The thing I’m wrestling with right now is, and if you show a little vulnerability after that, I think it helps. I think even setting it up beforehand with

19:25
This is my mission. What I’m trying to do here is do this thing. I think they want to work with you. I think if they don’t, they do, they, they don’t do it because they have some anxiety and the anxiety is will I get the output that I am investing my time to get? And it’s really hard to get that from an interview. I mean, even if you watch somebody on a professional late night talk show, talk about their movie.

19:54
You’re not necessarily going to go watch the movie the next day. It takes a little while. You just have a favorable impression of the person. And then if you see them again, and if you hear someone else talk about the movie or the interview, then it might start to sink in. And then maybe your wife says to you, we should go see a movie. And you think, you know, there’s this guy I saw, there’s this interview I saw, and there’s a movie. And then it comes out. It’s not like.

20:18
direct marketing on Instagram where you see a pair of jeans that are just amazing and you buy them instantly. so interviews are challenging that way and we can’t give them that instant response, but we could take away some of the pressure they feel by asking them, what’s a goal for you? What do you need here to make this a win for you? And I always ask the guests before an interview, what’s a win for you? And that makes them feel like I’m aligned with them. And the other thing is,

20:47
I also like to give them a warning. And if you give them a warning, like don’t promote, people are going to hate it. People don’t listen to advice, but for some reason they, they heed stories. So you can tell them a story without naming somebody. And you could say something like, I had this guy on, I won’t say his name. Everyone knows him. All he did was, and I was excited to have him on because I knew my audience would know him and would want him on. Everybody hated him. And I know exactly why all he did was.

21:17
He was a promotion machine. felt like an infomercial and instead of getting people more interested, all I got was hate mail. And I think that this audience is so cynical that the way to lose them is to promote heavily. So tell you what, I’ll do some of the promotion for you and I’ll tee it up, but let’s ease off so that they like you better than they like this other person. And you give them a little bit of a story, it helps.

21:40
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23:03
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23:14
I don’t know if this is the same person, but I interviewed someone who I idolized, one of my favorite authors, and they came on and it was a promotion fest. I didn’t like the interview and yes, I got people complaining about it. They said I had such high expectations because I’d loved this author, but the interview, it just sounded like a sales fest. But I was not able to steer that conversation around because he was too polished. It’s so very challenging to get past that.

23:43
It’s, and, and sometimes ultimately the sucky part about interviewing is it’s not all in our hands. And if we edit, we can edit it better. The producer that I hired from inside the Actors Studio, he would sometimes tell me how I could edit. And he had names for these types of edits where basically I’m asking a question and I get an answer from a couple of, I get answers from a couple of other questions, combine them together and get the answer that I’m looking for.

24:13
And so the audience gets a clear question and answer and all the other stuff is deleted. And I chose not to do that on Mixergy and that makes it a lot harder. What I’ve noticed is who’s the… There’s a company that started out in the pandemic with a guy who did interviews with entrepreneurs who then switched over to TikTok.

24:43
And he would just do short videos and he did dozens of interviews before giving up. And the reason he gave up was he wasn’t telling the stories the way he wanted to tell the stories. And so by just reading up on a person and then doing a TikTok video to tell that person’s story, he got a cleaner story out to the world. And there’s no doubt that editing will get you a cleaner story. And if you’re doing an interview, you can edit to get the cleaner story. If you’re, um,

25:11
If you’re summarizing it into TikTok, you can do it. The, chose not to do that for Mixergy and it’s not necessarily a universally sound decision. Other people may not frankly for the podcast I’m doing to learn about DAOs, I’m editing it. I chose not to edit for Mixergy because I wanted entrepreneurs to be seen as raw and real as they were. And I also wanted you to see that, that overselling is disgusting. I could tell you overselling is too much. You listen to one interview where a guy oversells and you’re disgusted.

25:41
I could tell you that they don’t know everything, but you wouldn’t believe me. And if you hear them just stumble through basics of their business and they feel uncomfortable with it, it makes you feel a little bit okay with not knowing everything about your business. And those types of, those types of moments were important for me to keep in the podcast. And so I kept them in, but that’s a problem. It’s a problem for the ultimate polish. I remember when I went on your show,

26:11
You did a pre-interview, are you still doing that also, still? I now do pre-interviews myself, and yes I do. I wonder, sometimes we do, I think what happened was after the book came out, people said, well, of course you’re doing great because you have a producer who does a pre-interview and it’s all that. And I said, no, you could do it yourself. And I started doing pre-interviews myself and I am still.

26:38
anal enough that I don’t think I do any interviews without having some pre-interview done. Even if I go off, I still need that pre-interview. Interesting. It’s too far back now when I went on your show. I don’t even remember what the pre-interview process was like, but what was your vetting process like? When it works well, the ultimate vetting process is, am I really curious about this person because I want to use some of what I learn?

27:06
I make rules sometimes because people on my team have asked for it, because the audience or the guests asked for it, but I hate to make rules and I’ve resisted it for a long time. Ultimately, you can see if somebody has all the qualifications, but I am not curious enough to want to use what the person is doing. Forget just curious out of like, I’m curious about how the world works. Curious because I want to use it is way different. That’s where you get real questions, real understanding.

27:37
what percentage of the people you pre-interview don’t get on the main show. And if you’re doing it yourself, it’s kind of insulting to the guy who’s coming on, especially if they’re a big person, right? It’s not. And the reason it’s not is I explain why. And so I’ve always understood that our producers can’t reject people because it’s too painful for people to do, and I’m comfortable being the person to do it. And I should, as I thought.

28:05
I’m the leader, I’m the guy deciding this. It’s almost always because of me. In fact, it is always because of me and almost always because I specifically said, no, this person’s not good, especially after a pre-interview. You know, they did the hard work and now I’m saying no. So, um, I’ll take that responsibility and I’ve always felt comfortable with that. And what I say is my audience is expecting this thing. And I explained what that is. Your story clearly doesn’t.

28:34
doesn’t fit that. If we force it in, the audience is going to feel like we are trying to cheat them and they’re going to be angry at you and angry at me the way they were before when I used to just do these interviews. I think we’re better off leaving this for now and coming back when this happens if you still want to be interviewed by me and I would be honored if you did. And so often it’s something like

29:04
The size isn’t there, right? The person has talked himself up on social media a lot, sold this company, sold that company. Turns out they really didn’t sell the company. They sold it for a buck and just like, they call it sometimes a gentleman’s exit. We need a better name than that. But it’s basically, it’s an exit for LinkedIn. When we talked to them, and this happened recently actually, with someone who was introduced to me by someone and I actually said yes before the introduction was made because I did my research and everything checked out online and then.

29:33
I did a pre-interview with him, wasn’t a good fit, and I said, I’m clearly gonna ask you about the size of the exits, and even if you don’t give me the number, it’s gonna come out that this wasn’t a big exit, that this was kind of a thing that didn’t work out, right? That’s basically what you’re telling me. And in the pre-interview, it comes out. If we do this interview, all you’re gonna get is ridicule. And I don’t think you want it, and I don’t think I want it. You’ve got really good social media presence. I think we should just stop right here. I’ve got my notes.

30:01
when it’s a better time, we can come back and do this interview and I have all my notes. And if it’s not, I completely understand. If you decide that it’s not a good fit for you, I completely understand. But if we do it now, they’re just gonna end up hating you and hating me and it’s just not worth it for that. We don’t need that kind of agenda. That’s a good way to put it actually. Oh, you mentioned earlier that big names aren’t necessarily the ones that hit. Has that been true with your podcast? Yeah. So give me an example of that. Cause I can’t imagine, like let’s say you had like Tim Ferriss on.

30:30
versus some no-name with a good story, I would like to think that the Tim Ferriss one would almost always do better. I don’t think so. No. I like Tim Ferriss a lot. He’s not just a big name, he’s also a really good guest. comes in prepared, but not scripted. He knows himself well enough to articulate why and how he did something. The thing is that even he…

30:57
is interviewed in so many places that it’s not as unique. Now these days actually he’s been holding back and that changes things. And so if you can actually get him to do an interview now, it’s a little more special, a little more unique. And if you put a good headline and a good topic on it, it’s different. What I’m saying though is that the audience wants us to do the hard work of finding those interesting stories to challenge them and that introduce them to new people.

31:26
or people that they can’t get access to otherwise. And that’s the big thing. How do you find those guests? No doubt that the names are important. The more names you have, the more attention people put on you and give you credibility. One of the reasons why I liked interviewing was if I sold, let’s just pick any product, toothpaste, and I wanted to put, say, Tim Ferriss’s.

31:52
photo on my toothpaste box and say, buy my toothpaste because Tim Ferriss is, because Tim Ferriss, whatever he’s associated with it. He’d sue my ass and he should. But I noticed, I remember going through Manhattan, there would be all these with what are called wild postings. These basically ads that are, that are glued on, um, anything, anything they could be glued on. so if you, if you had scaffolding, they

32:20
They’d glue them on that. If you had some broken window that you boarded up, they put it on that. And I remember seeing magazines would be on there. You’d see the magazine title in small letters and the photo of the person who was featured in it really big. And often they didn’t even interview that person. They just wrote an article on that person. And all you have to do is write an article and pay for a thing and you get to use the person’s name to sell your magazine. I thought media has that unique

32:48
place in the world where if you’re a reporter, if you’re a media and you’re reporting on someone, you get to use that person’s face. And the way the audience thinks is if that person’s sitting next to you, you get some of their warmth and credibility. So now I have two things. One, I have essentially the ability of drawing an audience using someone who they respect, using an influencer. And the second,

33:17
And the second part is I get the warmth of association with that person from being sitting next to that person. That’s completely unique. And so I don’t want to say that it’s not important to have big name guests. I’m just saying it’s not that important. There’s no big name one person you get and everything busts open for you. It just doesn’t work that way. Rarely. I think sometimes you might get that hit, but it’s not really a way to work. It’s almost like saying,

33:44
I’m going to go to work every day hoping that I hit the lottery. It’s not the way to build a business. So I run an event and I’ve resisted paying a lot of money for a big name speaker to come because I think people come from the community and less so for, like it’s not like the conference is gonna sell out because I get one person to come and talk. So I guess it’s a similar philosophy. I think so. I would say that

34:13
There are times when it does work for that. And I’ll use Casey Neistat. Casey Neistat, when he was doing daily vlogs, he was huge. His price hadn’t caught up with his, with his size. So he wanted some money, but he didn’t want an outrageous amount of money. Meanwhile, he was, he had achieved a level of stardom that would make people want to come out just to see him. And.

34:42
From what I understood, people were able to negotiate with him. And so I think occasionally there are people like that who are worth the money. A friend of mine, Robert Stevens, he created a geek squad that was bought out by Best Buy. And one of his promotions one time was getting the guy who played Batman on TV. I forget his name.

35:11
Old school Batman or Adam West, right? Adam West, yeah. I’m pretty sure it was Adam West that he got. And he told us the price and I’m pretty sure it was, I think it was in the hundreds. It wasn’t in the tens of thousands. It was inexpensive, but it conveyed something bigger on his brand. And he was always and still is always good about finding those types of connections. I would say in general, you’re right, but.

35:40
when it comes to events, there are times when the price is low enough and the draw is big enough that it’s helpful. Even today, for some reason, if you get Adam West in, I don’t even know if he’s alive, but if you get someone like that, like, oh, this is like, it gives it that Hollywood veneer or Hollywood little bit of glitter and it helps. But I would also say this, sometimes those people wanna be invited and

36:10
It doesn’t cost anything. great example is Blog World. Mark Cuban, very famous person. I asked the founder of Blog World, how did the conference, how did you get Mark Cuban, this billionaire, to come to your event? And he said, Mark wanted to blog at the time and he needed a connection to the blogging universe and to be seen credible and to understand the blogging world. And so he did it. And I don’t think he paid a dime to get Mark Cuban in there.

36:39
He might’ve paid for his travel, might not have. And that is what I call in my book, a motivated moment. A time when someone wants to be included in this world and would do it just for free. Almost would pay to be involved, but doesn’t want to be an ordinary person in the audience. So calling them on stage gives them the ability to do it. Rappers in the early days of startups. I think it was, I forget who the guy’s name, I think it was the guy who sang, Riding Dirty.

37:09
I remember there was a conference in LA when I was living there where I was asked by the organizer if I could give the guy a ride from the airport in because they told him that they’d get his ride and they weren’t like paying for a black car or anything. So they asked Andrew, could you do it? And I said, sure. And I gave him a ride and we had an interesting conversation and he just wanted to see the startup world to see if he could invest in it, start in it. And he’d become a big entrepreneur, a big investor, whoever it was that was sitting there.

37:39
I remember, anyway, so what I’m saying is there are these motivated moments where you can pull people in and it’s really impactful. Just like when they’re about to release a book, you can also get big names to come on your show and that’s a good segue into your book. Why did you write a book, Andrew? I’m very curious. Because I just went through mine and it’s been three years and it’s a slog. So yeah, I’m curious. I want to write a book since I was a kid. I kept starting books and couldn’t finish them.

38:07
And I would announce in public, I’m doing a book and you helped me get interviewees so that I can include them in the book. And then I wouldn’t finish. And I think part of it was that I respected books so much. I grew up avoiding the world and reading books. And I kept wanting the book to be really good. Meanwhile, I’d seen people would just take their transcripts and clean them up a little bit and boom, they have a book.

38:31
didn’t want to do that. And I probably should have started with that as like a first version here. You want to read these interviews, this is a cleaned up version and what I learned from them. I maybe was over making it overly special. So then over COVID, I was at home and I said, I’m going to try it again. I was, I was actually asked by someone to write a chapter for his book and I wrote it and he didn’t like it. And he asked me for another and I wrote again and

39:01
I kind of liked my first version. I kind of liked his version with his feedback and I liked getting feedback from him. And he’d written several books and I said, Robbie, who showed you, how did you do it? And he told me that he hired an editor to do it. And I said, can I hire that editor? He made an introduction and that editor was not available, but someone who she worked with was. And so I hired her and I had, and I said, look, all I need is can you write with me? We’ll just turn on screen sharing and I’ll write with you there. I can’t pass it on to you.

39:31
but I can write with you.” She said, no, I can’t do that. That’s kind of weird. But I can check in on you every week. And so every week she would check in on my writing. And then what I did was I signed up for Focusmate. I paid them five bucks a month. And for five bucks a month, anytime I wanted to write, I would have somebody basically who was doing their own work, looking at me through the webcam. I would share my screen. I said, who cares? Let them see what my writing is. Cause I want more readers of my book anyway. And not that they’re paying attention, but they’ll see if I’m.

40:00
if I’m futzing around and not getting anything done. And I kind of had accountability for writing. And what I did was I said, the thing that I have done best and in a more, most organized way is doing interviews. And people keep asking me for advice on how to do interviews. I have a Google doc. I kept it. I’m so anal and so organized that if there was a new technique that I learned for getting somebody to open up, I would

40:27
put it in a Google Doc and I would name it and I would have like copies of sections from my transcript underneath it so that I had an example of how it was used and then I gave it to our pre-interviewers, to producers and said, look, here’s a selection of ways that you could get people to be more open with you in the pre-interview. And I said, that’s been really helpful. I should expand that and that could be my book. And that’s how it worked out. What were your motivations though? So you’ve always wanted to do one. I’ve always wanted to do one, but-

40:55
Always wanted to do one and actually doing it, I guess, are two different things. Do you have another book in you or is this kind of like a bucket list item for you? I’m not feeling as compelled now that it’s there. Okay. I did right away afterwards. I enjoyed the outcome of all that hard work and I said to Mary Sun, the editor that I worked with, can we continue? And we tried continuing, but I didn’t have enough topics in me. I had no topics. I didn’t have anything that I had the same kind of passion for and-

41:25
Even though I was paying her and all she had to do was just show up. She basically said, it doesn’t make sense for me to show up here for, for this. And so we stopped. Did you go traditional or self published? I’m a startup guy supporting startups all the time. And so I went with a startup publisher. It was called, and it is called damn gravity. And I was happy to not self publish because, and also to.

41:53
Mary worked for Penguin and so she told me what the process would be and I wasn’t willing to go through that. I didn’t want at the end of all this to have another thing that would take a long time. She said, I can introduce you to the people who I work with that we hire to do line editing, I think it was called and all that stuff. And then if you’re willing to wait this amount of time, this is how long the process is. And I said, I’m not willing to anymore.

42:22
putting barriers before me in the past and stuff would happen. I can’t, I have to see this through. And then I also needed somebody to help me with marketing because I was exhausted. And so what Ben from Damn Gravity did was he basically marketed and pulled me through. Um, the, the finish line and the start, I was exhausted at the end of writing the book. I was exhausted with the topic, which I heard a lot of writers feel. I also.

42:50
was at a stage where I was feeling like I wanted something new and I wasn’t sure what, and in general in work I wanted to take a little time off and wasn’t sure what to do. And so having been there and lead the marketing was really helpful. Did you have goals for it? Were you trying to hit a bestseller list, nothing like that or? I considered it and I always thought I would buy a bestseller list entry, but when it came time to the book, I really…

43:19
I didn’t, wanted it to feel like as purely a connection to the thing that I’d done as possible. Just a guy that says, I did this thing and I need to close it out by passing it on to the next person. Interesting. That’s a good attitude. I find myself stressed out right now because my goal is to actually hit a bestseller list. Cause I don’t know if I have another- How are you gonna do it? It’s taken me three years. What’s my strategy? Okay, so first strategy is to just

43:49
Reach out to everyone who I’ve done a favor to in the past, especially really good friends who will help me promote it. Bulk buys, these are companies that have sponsored me in the past, do little favors like have them come on the podcast or make YouTube videos or whatnot. actually, in preparation for this book launch, I actually expanded all of my properties. So I created a YouTube channel that’s up to 200K subs now. I got on Twitter and increased that.

44:19
From scratch pretty much. I’m around 30k subs. I was on tik-tok Everything basically just in preparation for for this moment so bulk buys podcast interviews getting friends to blast out to their lists and then for me I Learned that you’re not actually selling the book You’re selling the bonuses and the book kind of comes with it because people don’t like to read they want solutions right away

44:49
So that’s how I’ve been approaching it. know, yeah, Seth Godin always says the book is a souvenir. It’s not what people read and I get it. So what type of bonuses are you thinking? So right off the bat, when people sign up, they get two workshops. One is a three day workshop on just how to start a side hustle. You know, something you can do while you’re working that doesn’t cost a lot of upfront money.

45:19
And then the second workshop, it’s a two-day workshop that teaches you how to make money with content. Basically everything that I do, you get those right away. Then when the book comes out, I’m doing a six-week challenge where I’m actually going on Facebook and I’m gonna be on there, give a live lecture once a week and just kind of be in there answering questions and that sort of thing to encourage people to start their own side hustle. Because I’m of the belief and I’ve worked as an engineering director for 17 years.

45:49
I don’t think that you can make life-changing money or improve your lifestyle working for somebody else. any little thing that you can do on the side, no matter how small you might think it is, can later turn into something significant. And then I’m also doing these little book parties all over the US where I get a chance to actually meet people who follow me in person. So I’m really looking forward to that. Those are my bonuses. I think those are great ideas. I like them a lot.

46:17
Yeah. Did you do any bonuses for yours? Um, I partnered with a company called Holloway to sell a really good digital version of the book. And that came with extra bonuses and they made it really good. You should check them out. Um, it’s a well-designed product that then easily connects into bonuses that then is then

46:47
gives you a connection to the reader, their email address. And so I actually, if you look at the Kindle version of my book, I promote the Holloway version. Um, and people do buy the Holloway version and they get the bonuses along with it. And that was the way that I did it. And we definitely get more, more money from Holloway than we do from Kindle, from, from Amazon in general, because it’s a, it’s a higher ticket product.

47:15
What I didn’t have that would have pushed me to sell it more is I didn’t have like a follow on upsell. I’ve been told that that’s, that the book is not that Seth Godin calls it a souvenir. Others would say it’s the entry point. Like you buy the book to learn it and then buy the next big thing. I remember Eric Reese, um, we were having dinner and I said, what’s

47:43
what’s going on since you wrote Lean Startup. And he told me examples about someone who would pick up his book at the airport and then take it to his boss and say, you should hire this person to come in and help us change the way we innovate here. And that was an entry point into a process. And I don’t think he intentionally meant for it to be that he wanted to change the way startups were built.

48:07
but he had a process for follow-on and others do too and I didn’t. And if you do, then it becomes a lot easier to say, let’s invest time and money to sell this thing because it helps build this product, this business, this service, this something. So let me ask you this, has the book impacted your life or your business in any way? Yes. I don’t know the Apecoin people, right? And the whole Board Ape Yacht Club.

48:38
But I was having dinner with Vera the ape who does, let me see, what’s like her official title? Vera the ape. I’m telling you, this is like a world that I’m not at all a part of. She’s special counsel to Apecoin. And as we were having dinner with a few people, she happened to bring up that she’s podcasting and she’s learning about this space through interviewing because she came from a much more conventional background.

49:08
And I said, I wrote a book on interviewing and she got like really interested in the process. And you know, once you get it, you want to get better at conversations, especially if you’re in the first hundred interviews. And I’m not, noticing more and more people are getting into interviewing as a way of learning from others. And so my Uber canceled on me. My next Uber canceled on me. She and her husband are incredibly polite. They just stood there. Everyone else left.

49:37
including all my friends, everyone else left. They said, let us give you a ride. I said, no, there’s another Uber, go ahead, I’ll figure it out. They insisted, they gave me a ride back and lately I’ve been traveling with a copy of my book. And so I said, hang on, wait here. I went upstairs, I got a copy of the book, I signed it and I gave it to her. And before I did, asked if she could take a photo of me signing it and all. And the reason I bring this up is there’s now a bigger group of

50:05
who are interested in interviewing as a way of learning and they’re either discovering the book or when I discover them, I give them the book and it’s been helpful that way. Nice. That’s what I’ve been told actually, that it’s kind of hard to measure the effects, it’s like this thing that you have, something physical that you have that you can give to somebody and the value, the perceived value of that physical object

50:35
is higher than anything digital and it has a lasting impact and it carries authority. Steve, I have to say, I think people use this much more than I ever would. Hal Elrod, he lives locally around here. Yep. There was a school event where everyone had donated things for the event so the school could make some money. He donated his books. And I remember going, he donated his own books? People are donating like,

51:05
time at their Airbnb. know, like, yes, it’s theirs, just like his book is his, but an Airbnb is like a considerable amount of money that they’re giving up for doing that, right? Or they’re donating stuff. He’s going to give us books. And people who I said that to, because I like to be very blunt with people, said, yeah, Andrew, why do you think that’s so wacky? And I do. And I do think that at some point it feels a little bit much the way people use it, but they do.

51:36
I would have made fun of him right on the spot also. I’m glad to hear that. I’m glad to hear it. And I don’t mean to be a jerk. The reason I could bring up Elrod is his book is good. He is a good person. And it’s not like a schlocky person who is using his book to get you to join his MLM or something. I do find sometimes when people use it, it’s a little much.

52:00
I can’t, why can’t I think of his name? He’s the guy who smiles all the time, who has a book company to help publish books. I went to his Super Bowl party last year. Chandler, yes. Yeah, okay, yeah. Chandler Bolt. I like the guy a lot. He told me to keep the books around. The reason I have it here on my desk is because people do bring it up and I get to like bring it on camera. He told me, bring your book, people care. I said, no, they don’t. And so I went to his house. He had it on the dining room table.

52:29
It wasn’t like you saying, take my book, go home with a prize, here, take my book, go home, and then sign up for my book course. It was just there. And the fact that it was like 15 of the books or 10 of the books made people feel like they could take it. And it conveyed a lot of authority. And it was a nice parting gift that if you cared about this person, you want to know how did he get to buy this house? You got a book that shows you what he did. I’ll give you one other example. Sorry. I went to Nick who wrote the book. Oh, Nick.

52:59
his last name. He’s a guy from Museum Hacks. He wrote the two-hour cocktail party. He has these fantastic parties here in Austin. Fan-frickin-tastic, because he gets good people together. He had this musician. He has tech people that you admire. But he also had this musician. go, she’s amazing. I went over and talked to her. I wanted to know how she showed up. It turns out she was hired by the yoga class that he went to. She was playing live music. He got her contact information, invited her to his party. He has a great mix of people.

53:29
He had three of his books out and he asked people, would you please take photos of my book? And if you enjoyed this party, all I ask is take photos of my book and post it and say that you enjoyed it so that people could buy the book. Having that book gave someone something to take a photo with, someone something to understand his method. It’s, there’s like, you can’t just say, take a photo of my website. I’m Steve Chu. Tell people about that. Take a photo with my book and help me out with the book.

53:57
It makes the person look smart. It makes you have something that they could look at. It takes ideas and it makes them tangible. Where you want to do it, where you want to use them is up to you, but it’s really helpful. I love that idea. I should do more of that. Now that I’m talking to you about it, get excited about stuff like that. I I think it gives you a new level of authority. mean, you’ve already had authority, but just the fact that you have something tangible to hand out really makes a difference, actually. At least to my mom. So this is what I do. I use the mom test, right?

54:26
My mom has never, I’ve been blogging for what, over a decade now, she has really never read anything. This is the first time that she’s excited to read something that I’ve produced because it’s published by a traditional publisher and it’s gonna be a physical book. So I passed the month. My mom never listened to my podcast, never checked out, they might have checked out my website, my mom and dad a few times didn’t really get anything, but she did take the book and she read it and she told me what she was reading. That’s a good point.

54:56
Yeah, the mom test is what I call it. I think I’ve finally done it, I’m done. So you’re done after this deal with retirement, you’re gonna exist in Texas, we’ll chop some wood together. I got two goats that I got randomly from some dude, baby goats, you’ll come help me feed the goats, great. Well actually last question here, since we were kinda talking about it before this interview started, your family and all the things that you’ve done, I know you’ve.

55:23
you moved from California to Austin, you had some things to say about that related to the topic of my book. Do you remember what you were gonna say? You know, we were talking about family and work and I used to know where I came down. My approach had been really aggressively ignore them and work for them and eventually it became less ignore them and more like work first.

55:53
family needs an infrastructure, part of it needs to be that my kids see me working. Because if they see me working, they’re going to get a work ethic for themselves and they should be expected to work too. Whatever that is, whether it’s chores with the goats or homework, whatever it is, we work and here’s why we work. With a feeling of almost aggressive fear of becoming homeless. Let’s look at the homeless. Let’s identify them as regular people like us. Something happened to them and others. It could happen to us. We have to work hard to avoid it.

56:22
And that is, and we can never, we can never feel like that is behind us. We could always feel like that, that demon is close. And I had my kids and I made a mistake where I enjoyed spending time with them too much. I was so enjoying and being with them that I didn’t realize and work just kept going. I didn’t realize that I wasn’t challenging myself enough. wasn’t coming up with new things. wasn’t pushing myself outside my comfort zone. had my system and things worked and

56:52
Now I’m in a process of a balance, but I’m not happy with balance. I do think that maybe aggressive fear of failure and hard work is not the right approach, but I’d rather be closer to that than balanced. It’s interesting you say that because I’m a pretty driven person as well. And you know that if you’re devoting some time to family, that’s time you could be using to kick butt.

57:22
And what I’ve just come to realize, I kind of have an ego, right, as we all do. So the way I stay interested or fulfill that ego part is I’ll just work on one project a year. And I try to do that one project well, and I don’t care, I don’t have revenue goals anymore. I actually used to have revenue goals. And those are the biggest detriment because you’d hit them and then you set the goalpost later for no reason. Like we only spend $150,000 a year as a household.

57:52
And we make way more than that. So why am I killing myself for money? So that shouldn’t be a goal, right? So this year, it’s the year of the book. Last year is the year YouTube, the year before that is the year of Twitter, the year of TikTok. And as long as I’m doing something interesting, that fills my ego. I like that because I do get obsessive about things. And if I could have one thing to be obsessive about, I’m in a happy place. And this year is your year of Dow, I guess, right?

58:21
Actually, yes. Super obsessive about it. And if nothing happens afterwards with it, I think I’m okay with it. But generally, I’d like them to build on each other. Four years ago is the year chatbots. Was that four years ago? Probably. Yeah. I didn’t. Yeah. Before that, was true mind. How do I learn to focus my mind and steer away from my demons? Yeah. So Andrew, always oppose your man. Where can people find your book?

58:51
Uh, everywhere, including Holloway.com or Amazon. Well, stop asking questions. Specifically the bonuses. You can find those on Amazon or no? Um, so if you buy the book from Amazon, we will tell you about the Holloway. If not, you can just go to Holloway. Uh, H-O-L-L-A. Uh, I don’t, I don’t even, why am not spelling Holloway? H-O-L-L-O-W-A-Y. That’s where the, oh.

59:18
The benefits are all those extra bonuses are there it is stop asking questions by Andrew Warner. I’m happy with people starting out with just reading the book by going to Amazon and getting it. But if you want all the bonuses, Holloway has a beautiful version of my book and all the extra bonuses, including every past interview and what I like about them, by the way, here’s another cool thing. When I say I use this technique, Holloway linked to that fricking technique. So you could hear me use the technique in an interview.

59:46
I love that they could do that. I don’t know why Kindle still hasn’t gone beyond just text. Anyway, that’s Holloway.com. H-O-L-L-O-W-A-Y.com. Hope you enjoyed that episode. And if you’ve never listened to Mixergy before, I highly recommend that you check out Andrew’s podcast. He is a fantastic interviewer. For more information about this episode, go to mywipecoderjob.com slash episode 469. And once again, I want to thank Sellerboard, which is the Amazon profit software that I recommend for Amazon sellers.

01:00:16
By going to mywifecouterjob.com slash seller board, you can get 30 days for free. Once again, that’s mywifecouterjob.com slash S-E-L-L-E-R-B-O-A-R-D. I also want to thank 180marketing.com for sponsoring this episode. 180 Marketing is the agency that I use to grow my search traffic by 4X in just six months. For more information, email jeff at 180marketing.com. Now I talk about how I use these tools on my blog, and if you are interested in starting your own eCommerce store,

01:00:45
Head on over to MyWifeCoderJob.com and sign up for my free 6 day mini course. Just type in your email and I’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!

468: Ecommerce Is Changing And This Is The BIGGEST Opportunity For 2023 – Family First Friday

468: Ecommerce Is Changing And THIS Is The BIGGEST Opportunity For 2023 - Family First Friday

Welcome to another Family First Friday in honor of my Wall Street Journal bestselling book, the Family First Entrepreneur.

In this episode, I’ll highlight and explain the latest developments in the e-commerce industry and how they’re shaping the future of shopping.

What You’ll Learn

  • 2023 Ecommerce Trends
  • The Rise Of Social Ecommerce
  • The Year Of Artificial Intelligence (AI)

Other Resources And Books

Transcript

00:00
Welcome to Family First Fridays, where there are no guests, just me and the microphone, where I teach you how to start a business or side hustle from the perspective of a father with two kids. And as you can guess, these Friday episodes are inspired by my Wall Street Journal bestselling book, The Family First Entrepreneur, which is a book that teaches you how to start a business that actually frees up your time instead of stealing it. And right now I’m giving away $690 in free bonuses when you grab the book, so go check it out over at mywifequitterjob.com slash book.

00:30
Now if there’s one thing that I can say about e-commerce and selling online, it’s that it’s constantly changing. If you don’t keep up, you’ll get left behind. Now e-commerce has revolutionized the way we shop and do business, and today online shopping is pretty much the norm. So in this episode, I’m gonna highlight and explain the latest developments in e-commerce and how they’re shaping the future of shopping. So change number one, there’s gonna be an increased focus on personalized experiences. Now, what does this mean exactly?

00:59
It basically means tailoring the shopping journey for each individual shopper based on their preferences, behavior, and purchase history. Now this can include product recommendations, special promotions, custom product offers, and other stuff, whatever you can think of. Let me just give you a couple examples on how we do this in our store to illustrate some of my points. Now first off, we primarily use email marketing to segment our email list on autopilot. And at a very basic level,

01:28
we segment all of our customers based on what they shop for or bought and only send relevant products to them. For example, we wouldn’t want to send out an email promotion selling dresses for our male customers. And then what we do is we place our customers into several different buckets. Now the first bucket are those people who are on the list that haven’t purchased at all. And for these people who haven’t bought at all yet, we tend to send deeper discounts just to get them to open up their wallets. Because I know

01:58
that if they make a single purchase, it’s going to be way easier to get them to buy again. So we basically put out all the stops for these visitors just to get them to buy anything, even if it’s something really small. Now the second bucket are people who purchased just once but haven’t made their second purchase yet. And for this group, they already know and like our brand. Otherwise, they probably wouldn’t have opened up their wallets in the first place. And for this bucket, they’ve already bought from us once, so we don’t overly discount

02:28
because it’s probably not going be necessary to get them to buy again. Instead, we try to get a second sale by cross-selling or offering special perks like a loyalty program or with some very light discounting. And according to studies, getting a customer to buy a second time is 65 % easier than getting that first sale. And why is this second purchase important? Because it establishes a pattern at that point. It indicates customer satisfaction and loyalty.

02:57
leading to potentially more repeat purchases and a higher likelihood of customer referrals. Now this next bucket of customers are what we call brand enthusiasts. These are people who have bought more than once, purchased somewhat regularly, but they don’t spend that much money. And for these people, our goal is to get them to up their average order value. So sometimes we’ll create special bundles for these customers based on what they bought. We’ll also email these folks more often because they clearly like our company.

03:27
and probably don’t mind getting extra email. We’ll tease special perks and we’ll cross-sell products based on what they bought. So here’s an example that I always give in my workshops. We sell matching cocktail, tea and dinner napkins in our store. And if a customer buys cocktail napkins and not dinner napkins, we’ll send them an email automatically to encourage them to buy the matching set. If someone buys a particular style of hanky, we’ll provide automatic recommendations for other hankies similar to the one that they bought.

03:55
And basically we want our brand enthusiasts to spend more money each time. Now this final bucket of customers are our most valuable and we refer to them as our whales. I think I stole the term whales from my good buddy Drew Sinaki. Now these are the customers who buy often and spend a lot of money. And for our store, our whales are event and wedding planners. And for these folks, we treat them like royalty. Instead of excessive discounting, we give them exclusive perks.

04:24
For example, we’ll call our whales on the phone, offer them a dedicated rep who will personally handle their orders. In addition, if they have any requests, we’ll see if we can custom source product just for them. Because these are our best customers and we want to keep them happy. Now, if all this segmentation sounds a little bit intimidating to you, it can all be automated, except for the phone call part, by using a tool called Klaviyo. Klaviyo knows which products customers looked at and what they bought. It knows their purchase frequency, their average order value.

04:53
which allows you to predict their lifetime value. And once you create your customer segments and your automated email sequences, this all literally happens on autopilot. Now personalized shopping experiences are where it’s at if you want to excel in e-commerce. Now another trend is the continued rise of SMS marketing. Last year, 62 % of customers subscribed to receive texts from businesses, and this is growing at 12 % year over year.

05:20
Now most consumers are actually subscribed to receive texts from one to five businesses for shipping notifications, special offers, and promo codes. Now you might be thinking to yourself, and this is mainly for the people listening who haven’t adopted SMS yet, I would never subscribe to a business for texts, but I’m willing to bet that you’ve interacted with a business via SMS already in some shape or form. What about the last restaurant that you ate at? Did they text you a reservation reminder?

05:47
Did they then follow up later with a text to remind you to come back? SMS literally has the highest open and click-through rates of any advertising medium with 98 % open rates and 36 % click rates. Now for my own store, I’m getting between a 15 to 20 % click-through rate and I’m getting 10x the engagement of email. 61 % of customers want the ability to have text conversations with businesses as well. And in fact, most people actually prefer text over a phone call.

06:17
Personally, in our store, we don’t like phone calls. We’d actually much rather deal with text messages any day of the week. Right now, only 55 % of businesses are using text message marketing, but it’s growing at 27 % year over year. And if your business is not utilizing texts, then you’re gonna fall behind. Another trend is omni-channel shopping. Basically, what this means is that you wanna be everywhere. And I know for a fact that a lot of you guys listening to this,

06:43
are either selling on Amazon, eBay, Etsy, or your own online store. In order to maximize your sales, you’ll want to be selling your products in as many places as possible. Some of you guys are probably hearing this and thinking to yourself, I only buy on Amazon, so why shouldn’t I focus on Amazon? And my answer is, you should never create strategies based on your own behavior. Because here are the facts. Some people prefer to shop on Amazon. Some people like shopping at boutiques. Some people like going to the mall.

07:12
Everyone has different preferences and circumstances, and you’ll get more sales if you sell in more places. Now, if this all sounds intimidating to you, there are many tools and plugins that will help you do this. For example, there are series of plugins that will allow you to instantly list products from your Shopify store on Amazon and eBay and even Walmart at the push of a button. And the inventory is automatically synced as well. Now here’s something else that you need to be aware of. 70 % of the shoppers on Amazon

07:39
will actually Google the brand first before making a purchase. And because Amazon has become this breeding ground of counterfeit merchandise and cheap Chinese junk, people actually double check the website. And this is why having your own website is so important today as well. So what’s funny is that whenever I talk about the need to have your own website, I always attract a bunch of trolls who claim that running a website is too hard and that selling on platforms like Etsy, Amazon or eBay are just way easier. And it’s true.

08:07
Selling on established marketplaces like Amazon, eBay, or Etsy are easier to get started. But listen closely. When something is easy to do, it will attract a ton of competition because there’s no barriers to entry. So you have to adopt a completely different mindset. Instead of always going for what’s easy, why not try for something a little bit harder? Because if it’s harder, then less people are going to do it, and you’ll have a better chance for success. So bottom line.

08:35
Selling on Amazon, eBay, and Etsy gets harder and harder every year. And on Amazon especially, there are tons of people out there to sabotage you as well. And so you absolutely need to own your own website that you control 100%. Now I’m not saying, just to be clear, that you should stop selling on third party marketplaces, but don’t limit yourself to a single platform. Sell in as many places as you can, and don’t just limit yourself to your own home country. Consider offering your products internationally as well.

09:04
Now often what you’ll find is that products that are competitive in the United States, for example, are actually much easier to sell in Canada or Australia. And for some reason, we get a lot of customers in Australia who don’t even bat an eye at really high shipping costs required to ship there. Now this next trend isn’t really a trend, but the reality is that the world today is mobile first. If you look at my traffic stats from my e-commerce store, 76 % of my visitors came directly from a mobile phone.

09:33
And to be straight up with you, that number is actually low compared to my friends and colleagues because a good chunk of my clientele is actually over the age of 55. If you look at my blog over at mywifequitterjob.com, 68 % are from mobile, but despite the disparity in stats, people are still designing their websites for desktops first. I’ve been running my online course over at profitableonlinestore.com for over a decade now. And part of what I do is give website critiques for the students in the class.

10:02
And I would say probably seven or eight times out of 10, students don’t even bother trying to shop on their own site on their phone. Mobile commerce is where it’s at. It’s been like this for years now, and it’s only gonna get more mobile going forward. So if you’re putting up your e-commerce store right now, design it for a phone first and desktop second. I actually do most of my shopping on my phone now, and so will most of your customers. Now here’s just a couple of quick tips. People hate having to type on their phones,

10:31
So any service where you can automatically import data is crucial. For example, PayPal will import the customer’s address so they can check out in one click and make sure you implement this. Now, this year is also going to be the rise of social e-commerce. I shouldn’t say rise, it’s already happening. Social commerce is the act of using social media platforms like Instagram and TikTok as a direct sales channel. For example, if you go on Instagram right now, you often see these little bubbles next to products where you can click and buy directly on

11:01
platform. In fact, 35 % of Instagram users will make a purchase on the platform this year. TikTok offers a similar shopping feature and drives a ton of sales for ecommerce sellers. And I looked it up, here’s just some crazy stats on what TikTok is doing for ecommerce. Two out of three users are likely to buy something while on the platform. 50 % of TikTok users have bought something after watching a TikTok live. TikTok users are twice as likely as users of traditional social platforms

11:31
to recommend a product or service that they found on the app, and 1.5x more successful at convincing others to try the product or service. A colleague of mine literally makes millions of dollars every year selling Katana swords just on TikTok alone. Now Amazon introduced a service called Amazon Live, where you can sell products live on the platform, and it’s killing it. My friend Tiffany Ivanovski makes tens of millions of dollars every year selling live on Facebook. Her shop is called Emma Lou’s Boutique. Go on Facebook right now.

12:00
and watch her in action. She goes live literally every day. This year is also going to be the year of AI, and here’s how e-commerce merchants are leveraging artificial intelligence. Now, we talked about providing a personalized shopping experience already. Well, stores are using AI algorithms to analyze customer behavior to suggest products that are relevant and personalized to every customer. You’ve probably seen this in action. In fact, you know, since I’m an old Chinese man now, I’ve been getting more ads for hair loss and ED.

12:29
And in my store, I use customer service chatbots that provide a first line of defense for support questions and assistance for customers. For example, in our store, this is probably true for most stores, the number one and number two at most asked questions are, where’s my order? When will it ship? Well, it makes sense to use a robot to answer these questions automatically. And on our store, we use a chatbot, which automatically queries our database and provides shipping and tracking info for our customers. There goes 70 % of our calls right there.

12:58
We also use AI to optimize inventory management. Since we import from different countries, the lag time to getting product can often be two to four months. And this takes planning, which is actually not one of my best character traits. Not a big deal. AI algorithms can help predict demand and optimize your inventory levels to reduce waste and improve efficiency. AI can also help you price your products. There are pricing split test programs that will automatically adjust your prices to find the sweet spot for profitability for the products that you sell.

13:28
And then finally, AI is already helping sellers create effective marketing and advertising campaigns. Right now, we’re using Google Performance Max campaigns, where you literally just feed Google your products, and that’s pretty much it. And based on its AI learning algorithms, it automatically shows your products to interested parties, and you do nothing. Now, as an engineer, I actually hate the lack of control, but it actually works pretty well. Facebook has similar technology called advanced shopping campaigns.

13:56
You just give it your catalog and does the rest mostly on autopilot. I’ve been getting a 3X return on ad spend so far with these campaigns without having to constantly refresh my creatives. Now this final trend is direct mail marketing. Now there’s a saying in business, which is what’s old is new and what’s new is old. And direct mail or postcard marketing is actually making a huge comeback. Now, if you’re my age and I’m going to date myself here, remember back in the day,

14:24
when you used to receive Valpacs or envelopes full of coupons in the mail? All that died down for some reason when email marketing and other forms of advertising came out. Well, now that email and PPC ads are getting saturated again, direct mail is proliferating. Here are just some interesting stats about direct mail marketing. 70 % of consumers say that direct mail is more personal than online advertising. 54 % of consumers actually want direct mail from the brands they like.

14:53
42 % of recipients read or scan the direct mail they receive, and direct mail response rates are 5 to 9x higher than other advertising channels. And 62 % of consumers who reacted to direct mail actually made a purchase. We recently ran a postcard marketing campaign that utilized a 16.47x return on investment that you can find on my blog if you just do a search. So bottom line here is e-commerce is constantly changing, and you have to keep up with the trends.

15:23
Now that you know what’s in store for this year, and hopefully you like this Family First Friday episode, make sure you go on my podcast page over at mywifequitterjob.com slash category slash podcast and check out my other Family First episodes.

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467: Vietnam: The Untold Gold Mine For Sourcing You’ve Been Ignoring With Jim Kennemer

467: Vietnam: The Untold Gold Mine for Sourcing You've Been Ignoring With Jim Kennemer

Today, I’m thrilled to have Jim Kennemer on the show. Jim and I met randomly on a panel run by Global Sources. And when we met, I knew I had to have him on the show.

Jim is the founder of Cosmo Sourcing and he’s helped hundreds of clients source more than $100 million worth of products from both China and Vietnam.

Production and sourcing have been slowly shifting away from China to places like Vietnam and Jim just happens to be a sourcing expert for Vietnam.

What You’ll Learn

  • Why source from other countries outside China
  • How Jim became a sourcing expert for Vietnam
  • The right way to source products from Vietnam

Other Resources And Books

Sponsors

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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 the strategies they use to grow their businesses. Today I have my friend Jim Kenimer on the show and Jim runs a sourcing agency called Cosmos Sourcing where he helps others source products from Vietnam. Now as China is getting more more expensive, especially with tariffs, Vietnam can be a great alternative. So in this episode, Jim tells us how to find suppliers over there and what to expect. But before we begin,

00:28
I want to thank Jeff Oxford of 180Marketing.com for sponsoring this episode. 180Marketing.com is an agency that specializes in helping e-commerce stores boost their SEO traffic. Now in the past, I used Jeff and his firm managed to grow my search traffic by 4x in just six months. In fact, 180Marketing is one of the few SEO agencies that I trust 100%. For more information, go to 180Marketing.com or just email Jeff at 180Marketing.com.

00:57
I also want to thank Sellerboard for sponsoring this episode. Sellerboard is profit analysis software that helps you figure out exactly how much profit you are making selling on Amazon. Now, if you’re an Amazon seller, you’re probably aware that there many hidden fees in selling on the platform and Sellerboard organizes all that information for you in a clear and concise fashion. Now, personally, I recommend Sellerboard because they’re among the least expensive software that I know of that does this, which is one of the reasons why I like them and recommend them.

01:24
For more information, go to mywifecouterjob.com slash seller board and try them free for 30 days. It’s a no brainer. Once again, that’s mywifecouterjob.com slash seller board. And then finally, I wanted to mention my other podcast that I run with my partner, Tony. And unlike this one, where I interview successful entrepreneurs in e-commerce, the Profitable Audience podcast covers all things related to content creation and building an audience. No topic is off the table and we tell it like how it is in a raw and entertaining way. So be sure to check out.

01:53
the profitable audience podcast on your favorite podcast app. Now on to the show.

02:04
Welcome to the My Wife Quitter Job podcast. Today I’m thrilled to have Jim Kenimer on the show. Now, Jim and I met randomly when we were on the same panel run by Global Sources. And when we met, I knew I had to have him on the show. He’s the founder of Cosmos Sourcing and sourcinghub.io. He’s helped hundreds of clients source more than $100 million worth of products from both China and Vietnam. And products that he has sourced have ended up in almost every major retailer for clients from over 30 countries.

02:34
The reason I wanted to have Jim on the show is because production and sourcing is slowly shifting away from China to places like Vietnam, and Jim just happens to be a sourcing expert for Vietnam. And with that, welcome to show, Jim. How you doing? Thank you. It’s pleasure. Thanks for having me. I’m doing great. Yeah, you know, I love going on these panels with different companies because I always end up meeting someone interesting. Yeah, same. I love them. I really do meet a lot of cool people on those panels.

03:01
Tell me a little bit about your background and how did you get into sourcing specifically from Vietnam? Yeah, so actually, yeah, I started like in China like most people so in 2011 I moved to China got my MBA from a university in Shanghai Hultin International Business School. That for a year and then afterwards I was actually working as project manager for an IT company so unrelated actually but just the whole being in China being in Shanghai I had contacts and friends and

03:29
Really anybody kind of reached out to me just out of the blue a lot of times. Just asked me, hey, I’m looking for this product. Do you know a factory or I have a factory. I’m trying to, I found this product on Alibaba. I came to check the factory for me. So I started just doing that on the side, kind of a little side hustle. And after doing that for about a year, I decided to quit my job and actually to focus on sourcing because I enjoyed sourcing more than sitting at desk all day. So yeah, I started sourcing in China and then 2014.

03:58
I decided to move to Vietnam. Actually, I visited on vacation earlier, fell in love with the country. I was like, this is where I want to be. So I moved to Vietnam, started sourcing from Vietnam full time. At the time, Trans-Pacific Partnership was in the works, which ended up getting canceled. would have been the largest free trade agreement in history with 14 countries, with Vietnam being one of them and the US being another. Even though it got canceled, was still in Vietnam, still had a lot of projects, still had lot of interest from clients. So I kept kind of focusing on both Vietnam and China. And yeah, it didn’t.

04:27
2017 trade war happened and yeah trade war happened So business kind of boomed and kind of was in the right place at the right time and pretty much mostly sourcing Vietnam sentence Does that mean you speak fluent Chinese? No Okay, I try this you can go to school in Shanghai for however many years. Yeah, it was an international business school. So it was English language classes Okay. Yeah, and when you were in China

04:52
You didn’t speak the language yet, you could just go into the factory and communicate, okay? basic Chinese, but it’s very bad and out of practice. I’m terrible at learning languages. I’ve actually, taken probably equivalent of about four semesters worth of Chinese classes throughout my time, all the way from undergrad up until, and it just doesn’t stick. I’ve done the same with Spanish and I’m just not, I’m just not a language-intended Okay, it’s clearly not necessary at all then to do what you do. I mean,

05:19
Yeah, I mean, I often hire assistants to translate a lot of times and like my staff in Vietnam is entirely bilingual. So we have stuff on the ground. I know basics of Chinese and Vietnamese. I can go around town and order food and whatnot. So I’m not like completely in the dark. level as mine then. Yeah, probably. I am curious since you mentioned it, what was this free trade treaty? Can you just give me like a little bit of detail on that? Like what was supposed to happen? Yeah, so it was the trade specific partnership.

05:48
It would have covered 14 countries in full that had a free trade agreement. Vietnam, United States, Canada, trying to think of the others. I know Chile was one of them, Mexico, Australia. So what are the implications of that though? Yeah, well, I mean, it got canceled, unfortunately, because it never could get ratified. But the implications would have been that all 14 countries along the Pacific Rim, I know China was excluded. was specifically designed. Oh, against China, okay. Yeah, against China. kind of.

06:16
leverage, help boost these developing economies. Yeah, and it would have been the largest free trade agreement in history. Kind of portions of it are still in effect and Vietnam’s always been pretty proactive about getting free trade agreements. they have one with the EU that just kind of got recently. But how does that benefit like a buyer? Oh, from a buyer’s perspective, you don’t have to pay tariffs or high taxes. So you get a much lower rate. Okay, got it. Yeah.

06:45
the free trade agreement was in effect, you would basically pay no tax or very minimal taxes to get your products imported from Vietnam to the United States or whatever countries were in the free trade agreement. I see. I mean, there’s already tariffs from China and they haven’t gone away. So I mean, it’s already cheaper, right? Absolutely. Okay. Yeah. All right. Yeah. I think we’ll stay because they’re actually really politically popular. Oh, the tariffs are?

07:12
Yeah, I mean, Biden has made no effort to take him away, even though he has fully has that power. You know, think his I think his political populous just be having tough stance stance on China at the moment. So I think I don’t anticipate terrorists going away. My opinion, my professional opinion. And know that so which is kind of unfortunate and all these other activities against China to related to computer chips and semiconductors also. Yeah. So so why would someone source from Vietnam over China?

07:43
Generally it’s cheaper. It’s kind of more politically stable. But it’s less hands-on from the government, I would say that. Just in terms of things like COVID, you they had total lockdowns in China and then back to nothing and that’s caused tons of disruptions. Vietnam was pretty smart with how they managed COVID lockdowns. They had one of lowest rates of COVID. They actually had one of the highest or not the highest.

08:09
that had one of the highest and fastest vaccination programs in the world. had some, I want say they had like 80 % of their, once the vaccines were released, they had some like 80 % of their population vaccinated within two months, I believe. Wow. Yeah. Okay. Which is great. There are no major lockdowns for that. Just in terms of experience, I find them pretty easy to work with. I do find China easy to work with for the record and yeah, generally cheaper labor, different, they have different skills. much cheaper are we talking about here?

08:38
It used to be a lot cheaper when I first started sourcing in 2014 I was getting sometimes 30 40 percent savings, but Wow Yeah, I mean the man for Vietnam has gone up a lot. So it’s a lot of times probably comparable pre tariffs and In terms of pricing just cause labor costs have gone up in the last several years and demand for Vietnamese products Has gone up. So it’s pretty comparable now, but without like the same price you mean without yes, I would say about 10 to

09:06
Same price to 10 % cheaper is what you probably should expect. So it’s not huge anymore, I guess. So where the savings are really is if you’re on like a tariff list from China, then Vietnam is your best bet. Yeah. And there’s free trade agreements too with Europe too. So you get savings there even though they don’t have tariffs against Chinese goods. Right. Yeah. Okay. And with Vietnam, you kind of have to focus on specific products too, because you know, trying to get everything in any quantities and any style. Vietnam, you know, they specialize in a handful of products.

09:36
such as, they do wooden goods really well, clothing really well. Any I’m sorry, what were the two things? You said clothing and what else? Wooden goods, anything made of wood. Wooden goods, okay. Yeah, we do a lot of furniture from Vietnam, a lot of rattan, a lot of bamboo. Rattan is like wicker. It’s like rattan baskets. Let’s see if I have Because I know from China, tariffs on wooden pencils, for example, is like 25 % or I can’t remember what it was. Something ridiculously high.

10:05
But that’s not the case in Vietnam, right? No, it’s not the case and one I mean Vietnam is a tropical country. So there’s tons of forest and plantations So they actually get the wood the raw material is pretty cheap and it’s very high quality woods to a Lot of words we work with our kasha teak bamboo bamboo is probably most sustainable material going to work with maybe you’re into sustainability Akasha grows super fast. So it’s pretty sustainable like is used

10:31
Rubberwood which looks a lot like oak and then they import some woods like we get some virgin spruce and a few other woods Imported from Canada. So let me just kind of rephrase that question then so yeah If what products would you definitely source from Vietnam over China? Material I clothing. I would do wooden goods. I would do a lot of furniture I want to say all furniture, but we do tons of furniture in Vietnam. Um, I would do bags from Vietnam

10:57
Backpacks purse bags like leather or canvas or what every time I think yeah leather bags canvas bags We do some shoes are kind of tricky at that moment, but we do a lot of shoes still try to think what else I would say those my bags over China. I’m just curious. Is it just the pricing or what? Yes the pricing and the factories they have huge factories that do I mean cut and sew is just a broad category of cutting fabric sewing it correct? Yeah, so bags clothing off into that so

11:25
They have just huge factories and relatively cheap labor to make it. And yeah, from our experience, bags have been pretty consistently cheaper. mean, because China like kind of owns textiles, I feel. I think Vietnam has a very good competitive edge with textiles over China. And is it mainly price or is it skill? I price and quality too. There’s a lot of skill. Yeah, because I mean, there’s a lot of the old factories. I mean, they have like thousands of people working at a

11:54
massive factories cutting and constantly. But even new, they’re getting new technology that makes it a lot more efficient too. I mean, look at your bags, like Patagonia, North Face, all those big companies make their backpacks in Vietnam. I know some luxury brands like Tory Burch or Michelle O’Cores and whatnot make their purses in Vietnam. Lulu Mom makes a lot of their clothing in Vietnam. Lulu Lemon, I always miss that name for some reason.

12:21
I first read it as Luluban, it’s been in my head since. Are a lot of these companies in Vietnam, Chinese companies that kind of move factories over there? Because I know that in my experience that’s happened to some of ours. Yeah, it exists. It’s not every company. I would say at least 50 % are still Vietnamese owned. Vietnam, unlike China, companies and foreigners can own factories. So there are a lot more foreign owned companies. They tend to have Vietnamese man.

12:48
Often have Vietnamese management but kind of going back to free trade agreement part of the free trade agreement allows You know, there’s no tariffs but on the other hand allows foreign companies to own the factories and actually own these So like a lot of factories are Japanese owned a lot are South Korean owned and we work with tons of South Korean Japanese owned factories One of the biggest furniture factories is Indonesian known. Um, it’s huge like comically huge like literally one of the biggest factories ever visited. Um, Yeah, I mean there’s

13:17
Few day we worked like Danish and French known furniture companies like we do a lot of metal goods. Um Like we do like fasteners like bolts nuts screws all that type of stuff work with the Japanese own factory That’s you know, they have Japanese management so they get the whole efficiency and latest technology But the cheaper labor costs they would get a good balance of that in lot of So I guess a million dollar question here is how do you find a supplier in Vietnam? And I’m gonna ask this question in two parts. So number one

13:46
Like in China, you can pretty much find a factory that caters to every type of customer, whether they be small or large. Yeah. Is that the case in Vietnam? No, no, it’s really not. And I mentioned shoes earlier. There’s not really good shoe factories that do small orders anymore that we found. It used to be case like a few years ago, but I know COVID supply chain disruptions or whatever, just the shoe quality of shoes that you need to get to make shoes is bigger, like several thousand units now.

14:15
Per thousand units per order. Yeah for order just them. Oh cute to make the first order Like we try to do some projects with like one or five hundred shoes to start off, you know for small startups But it’s not doable but I mean with a lot of products you can but yeah You kind of do need to be more selective calls the factories It’s a smaller country. It’s about 1 15th the size of China So there’s limited factories and if the factory doesn’t exist, unfortunately doesn’t exist, right? I mean

14:42
We do tend to have a lot of luck with small orders too for products. Can you just define what a small order is to you? I would say small is less than 500 units. Oh, okay. So there are places that accept small orders like that. Yeah, a lot of times though with small orders they’re going to be handmade items. Like we’ve done luxury purses that are handmade for instance and then some leather briefcases that are handmade but if you kind of want to have a production run like actual line like assembly line.

15:10
You know, gotta have the MOQ, it takes time to set up those lines. What would you say like an MOQ for would be to set up like a line for like a bag or something? Yeah, for a bag I would probably say that 500. Oh, 500 units? Yeah. Okay, that’s not bad at all. Bag is a pretty simple item. There are more complex items where they’re gonna be higher. And a lot of times it depends on the value too.

15:36
We’ve done like kind of high-end hiking backpacks and those we had a really low MQ I think 200 units, but those were also going for almost thousand bucks actually. Really? Yeah, they were very high-end backpacks. sell or to produce? To sell. To produce it was still about 200 bucks. Wow, that’s pricey. Yeah, it was. It was a very specific niche ultra lightweight backpack. So yeah, was some advanced materials that we had to import from Taiwan and South Korea too.

16:05
What about clothing like if you wanted to make like women’s clothing what were the moqs there look like I? Would probably say about a thousand units that’s units per style per size. Yeah, I would say per style you can make some extra colors, but um Yeah about thousand one two three thousand

16:22
I’d probably say 2000 even have a decent mix of styles, but 1000 for SKU would probably be typical. Okay, wow. So there’s no like Alibaba for Vietnam. So how do you actually find a supplier? Well, one good thing is Google isn’t banned in Vietnam. So you can actually Google factories. Oh, a lot of times. Yellow Pages is actually a decent resource. Oh, sorry, the Yellow Pages? Yeah, the Yellow Pages, classic Yellow Pages. Like yellowpages.com, you mean?

16:50
Yeah, they have a Vietnamese website, but yes. Really? Yeah. Yeah. I haven’t heard that name in a while. Yeah. mean, with that, I mean, there’s going be, they list a lot of factories and it’s not the best updated, but if you’re willing to like reach out and call content at 50 factories or whatever, probably get a response from 10 to 15, but you get a response and then narrow it down. But I mean, for us like too, we have

17:15
We go a lot of trade shows. have access to trade database, because customs data is public knowledge, but you can sign up for a service like Import Genius or Panjiva. personally use Import Genius to get contacts or just names. And then we look it up. And then our team is actually based in Ben Duong province, which is just outside of Ho Chi Minh City, which is made in a dust-ridden area. we just from kind of going to events and our team just being on the ground there, we get a lot of contacts locally too that way.

17:42
How would just someone who’s listening to this podcast without using a sourcing agent find a supplier in Vietnam? I I mean for the most part you’d probably have to use like the kind of resource I mentioned and just be active and I’m just be aware you got to make a lot of cold calls and emails because we when we contact we do emails whatsapp calling

18:09
Zalo which is a local kind of whatsapp-esque service. Kind of like WeChat. Just be prepared to contact a lot of factories and do a lot of research. But there are factories out there. Can you walk me what you would say? What would you ask first? Is it the as Yeah, I we create, I would say just create a basic simple prompt. Like hey, I’m so-and-so, we’re American based buyer, we’re looking…

18:39
I’m just gonna say women’s dresses. We’re looking to make X amount of women’s dresses and we have the design files. Before we contact factories, you need to have the design files or product spec sheets too. Because if you just contact them and say, oh, we’re going to develop them later, they’re not going to take you seriously. So if you have the product spec sheets and sign files ready to go, you don’t have to attach them to the first email, just say you got them. And tell them, hey, we got the product spec sheets, design files, and we’re prepared to make an order of 1,000 units, if suitable. Can you give us a quote?

19:08
Just kind of solicit a quote. It’s card RFQ request for quote anytime you kind of first connect with contact a factory Just because you want to get them to quote you for your products and so right? Um, have a guide on our website if you want to Google request for quote Cosmos forcing I’ll definitely put that in the show notes. Yeah. Yeah for sure. Mm-hmm Is the process the same as China like they’ll create a sample for you and that sort of thing and yeah, it’s pretty similar Yeah, that’s all pretty standardized. So yeah, once you contact a factory

19:36
You know, you want to negotiate prices, get a firm quote first. And then when you kind of negotiate and again, negotiate sample cost, just so you know the cost are and lead time or samples. then, yeah, when you’re ready and happy with the factory, once you kind of vetted them, kind of want to check them out, make sure they’re legit and everything. Yeah, pay for a sample and get a sample made. How does one verify that a factory is legit? I would check third party resources. Like for us, there’s we have.

20:03
I’m trying to think of a regular person. If you want to really do it right, I would say hire an inspection company. There are tons of inspection companies like Tesco, Vietnam Inspection Service, Chima, that spoke QIMA. That will go to the factory for like three, four hundred bucks. And it’s worth paying because you’re about to send a factory $1000 presumably. Go to the factory, check their business licenses, check their restoration, check their equipment, make sure…

20:32
If you’re doing a pre-production inspection, which you should, they’ll check to make sure they’ve done similar items. So if you’re making a woman’s dress, they’ll see that they made woman dresses before. yeah, check out the factory and send you a pretty detailed inspection report with pass fail grading on everything. My first book, The Family First Entrepreneur, just debuted as a Wall Street Journal business bestseller. And not only that, but my book was also featured on a billboard in Times Square during the launch. I’m literally in awe right now.

21:02
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22:01
You also get access to my two day passive income workshop where I’ll teach you how to make money with blogging, podcasting, and YouTube. Go to mywifequitterjob.com slash book and I’ll send you the bonuses, invitations to book parties that I’ll be throwing all over the country, and special offers. Once again, that’s mywifequitterjob.com slash book. Now back to the show.

22:23
Where would one check to see the licensing and everything for a Vietnam company? And is language a problem? Yeah, okay, so first question. They should have copy on hand and if they’re legit, they’ll be able to share it with you. Okay. And there’s some government websites that you can kind of cross-verify it. They’ll give you a registration number, what not. We often use Vietnam credit, which is a government-ran, this is government-ran kind of service that you can just check the credit worthiness.

22:53
pretty much just says yes, they’re in good standing or they’re not. All that will mean from our end, it’s a little bit complex, I don’t know if this is beginner tip, but yeah, I would go through and kind of check that they have a business license registered with the government and that the banking, that they have bank accounts and that the bank accounts are in good standing. It doesn’t tell you the exact credit score, it just says yes, they’re in good standing or no, they’re not.

23:15
and if they don’t exist in database and those say they don’t exist and What second one? Oh English? Yeah, so for English, they’ll have somebody on staff, but um It really varies. Um, it’s sometimes there’ll be somebody fluent. Sometimes it’d be fairly broken English. It really depends on the factory. Um One thing too with Vietnam more than China is a lot of times they don’t have dedicated sales staff so they’ll often have an engineer who as Kind of like once a week, I guess or whatever

23:45
checks emails, but his main job is engineer. So he’ll go through and kind of talk that kind of answer the emails. And when you get in contact with the engineers and those people, they can be pretty direct. I know a lot of people are kind of used to sales people kind of wooing them. Hello, super friendly. You know, trying to really drum up and the salesman is like, yeah, we can do it. Great. And then ask how much and they’ll give you costs and then pretty straight to the point. Which I kind of like just cause.

24:15
You get in get out with the meetings you get exact pricing time. You want to make a modification They can they have the authority to actually you know actually tell you the price because a lot of times what sells people they’re like Oh, I’ll let you know what’s in it over and they send it to somebody and then a few days later, But engineers they can do a lot of times pretty quickly What’s the export infrastructure like I can’t imagine it being as mature as China? Yeah, they’re used to exporting. Um, yeah, that’s another tip is when you talk to factories

24:45
You need to ask them if they’ve exported to, if you’re American buyer, for instance, you need to ask them, have you exported America? Cause there are standards that, you know, they need to know. It really varies by product too. Anytime you work with a freight forwarder, they’ll clear the standards and make sure everything’s legit before they ship or they should. But yeah, in terms of export infrastructure. Yeah. A lot of factories are set up for export exporting, which is great. You can ask oftentimes clients or whatnot.

25:15
they’ll have certifications, ASTM or ISO certifications you can check. guess what I’m getting at is what is list of questions you would ask when you’re vetting a vendor? Yeah, I would ask first and foremost, do you have experience exporting to United States or whatever your country is? And then kind of quiz them on their certifications. Most factories, basic certification is ISO 9001. And then,

25:43
Like if you do wooden goods, for instance, you got to comply with the Lacey Act, which, know, you got to defumigate the woods. You got to have a certificate of origin for the woods. You got to, you know, certify that as, you know, legally or legally harvested from, you can be from plantation or you can actually do forest, but there’s also forest and standing on the council. If you want to go even further, FSC, which will make sure that everything was, for instance, um, there’s like some carcinogens you can’t use in fabrics or, um, in materials.

26:14
For instance from out of hide so China’s used to this already Vietnam. Do you actually have to ask these questions? I would advise to yes, okay All right, if you don’t ask him I mean you can have an inspection if you don’t know what to ask I would hire an inspection service and they’ll Make sure everything’s in line. Okay Yeah, those inspection service. Definitely that that’s your job is to know what the certifications are. Make sure everything’s in compliance Is everything conducted in US dollars as well?

26:41
Yeah, we do almost everything in US dollars and Vietnamese bank accounts. They you can hold for foreign currencies in Vietnamese bank accounts. Okay. And with just the dong being worse inflation in America right now is they they love UST. Yeah, yeah. So what would you say are like the major trade offs? If you’re choosing between China and Vietnam? Yeah, that’s a question. Yeah, like I said, you kind of need to be selective about your product categories. With China, you just go to China, go to Alibaba.

27:12
spend a few days on there or not even days, get tons of contacts with factories, reach out to them. It’s super simple. Vietnam’s still a little bit undeveloped in terms of networks and internet sourcing and whatnot. So you do need be much more proactive and reach out to the factories. There’s not really a way to just post your request on a website and then factories come to you. You have to go to the factories, which I know frustrates a lot of people.

27:41
If I can give a plug to Cosmos Sourcing, you can just go to us and we can do all that for you. I want to get into how much you charge and that stuff at the end. So yeah, it’s much more proactive. Kind of had to follow up with them. They do want your business, but they’re not as they just don’t come across as eager. I don’t know. Even though they do want it just as much. And it really, like I said, if you have specific products that V9 specializes in, it’s pretty good, but it’s like not for every product.

28:11
Alright, well assuming that what you want to source is something that Vietnam specializes in, what are some cases where I’d want to go to China over Vietnam? I mean, if it’s not something Vietnam specializes in, it… I mean, you still can get everything in eating quantities. Like, if you have low MOQs for lot of items, I find China can be better. If you do electronic items, China’s still better. Especially OEM. for the stuff that Vietnam might specialize in. Like you mentioned wooden products, textiles. Yeah.

28:42
I don’t know. feel like you should go to Vietnam. But um, well, yeah, it doesn’t it sounds like you’re You’re a beginner. I mean, would say it’s easier to deal with China a lot of times, especially your first time starting off just to find the factories. So I mean, if you have a address or something, you can actually you can get more quotes. You can actually get more factories from China regardless, just because they’re just for the sheer fact that there’s more factories that do it. Yeah.

29:10
They’re generally easier to deal with like I said, not every factory in Vietnam has a salesperson. So You know get somebody who’s really kind of walks you through the process So does that mean that just not as responsive is that I? Say yeah, I would say that’s a way to say yes I actually would prefer to talk to an engineer to be honest with you right? all the facts and you’re in and out. Yeah, exactly No, I’m saying why like the meetings we have like it turns some clients off because we have people visit factories in Vietnam

29:38
You know, they fly all the way from the United States, come to factory and they’ll sit down with an engineer and they’re pretty much in and out. You can do a meeting like 20 minutes and it’s just, oh, how much would this cost? Great. We make this very, very great. How much would it cost? Oh, that much. What’s the lead time? We can do it to start production in three weeks and be done with two months, know, straight to the point. And, you know, like China, when you go to China, like the factories take you to lunch or dinner, give you drinks. It’s an experience. I love that.

30:07
I mean a few factories in Vietnam will do it, but it’s not over top like China. So yeah, mean we’ll have casual meetings and like, you know, drink tea and whatnot just at the office, but it’s not like the whole What do you use to communicate with your vendors over there? Are they on WhatsApp or? Yeah, WhatsApp, Zalo. I say Zalo probably is the most common one, Z-A-L-O, and emails, mostly emails. Okay. Yeah, we’ll set up kind of just kind of what they’re working on.

30:36
So is email still the best initial contact method? Like you look for them on like the Yellow Pages for example, or Google and whatnot and you send them an email? Yeah, we usually do email first. Like when we research factories, like our team, when we research factories, you know, we can just tell which ones are good factories and worth following up with. So we tend to email them first and the ones that respond by email will keep that conversation in email.

31:01
but a lot of times they don’t. we’ll then kind of reach out by phone and kind of follow up with email or they’re on Zalo. We can get the context of the person on Zalo. We use LinkedIn too sometimes, actually quite a bit to kind of reach out to them that way. So we’ll kind of do a full court press of just whatever method gets a response. And we kind of press them at least probably three or four times each factory that we want to get quotes from, just to quote us until we get a response.

31:29
You know, not every factory quotes, so a lot of times they say we have capacity or we don’t think it’s suitable, but we at least try to get a response of some sort. I know it’s hard to generalize in an entire country, but from what I’m gathering, it seems like you have to be a lot more persistent with a Vietnam factory because they’re not necessarily, they don’t have salespeople, so they’re not necessarily trying to solicit new business. You really have to approach them, know what you want to get, and be direct. Yeah, and a lot of times they,

31:58
Yeah, you kind of do have to be a little bit more direct with them. mean, there’s exceptions that factories like there’s a lot of factories that are pretty proactive about getting sales, but it’s just something that a lot of people when they first kind of get in touch with Vietnam, they kind of dismiss factories that, you know, don’t seem super responsive, even though they’re pretty good. So I would just say be persistent if you think this is a good factory, but don’t be too persistent. But you can definitely follow up multiple times with the factory to get a response. But once you’re in contact with them and they

32:27
You know, once you’re in contact, like say 1000 dress, their dress factory, they need the business. They’ll definitely respond more and kind of give quotes. yeah. So back to the question on tradeoffs outside of price, why would I go to Vietnam over China? Yeah, I I would say a lot of products are pretty good quality as well. I think the textiles they make are very high quality. They work with like high end brands, like I said, same with furniture.

32:56
furniture and wooden goods, like the wood is very high quality tropical hardwood. So it’s much denser than your basic pine. So, and then in general, the labor force in Vietnam is pretty young. So they’re pretty skilled in terms of like what they can make. And yeah, I mean, it’s kind of, it’s easier to work with too sometimes. Like there’s not as much bureaucracy or headaches or anything. Like I never, I feel like I never really deal with the government or any government issues in Vietnam like I did with China.

33:27
Which is always nice. It seems like the major trade-off is just getting that initial contact then. that accurate? pretty much. Because… I we work factories for years and they’re really… a lot of factories are easy to work with. It’s true to point, but you just pick an order and it’s consistent order and they’re responsive and everything. I know for me, just in my experience, and this is only one data point, is every year this happens. Like after Chinese New Year, like half the workforce doesn’t want to come back to work.

33:55
Yeah. then sometimes we have to scramble to find, you know, a new vendor or, or like the materials in the same way do textiles. Yeah. Would you say it’s generally more consistent in Vietnam or does the same thing kind of happen? I know we’re generalizing the entire country. Pretty similar Chinese New Year or not Chinese New Year. It’s Tet holidays, T-E-T in Vietnam. So Lunar New Year is the same date, same general concept. But yes, the way the contracts work too and

34:24
Both Vietnam and China is they tend to workers tend to sign on one-year contracts to begin and end at arm Tet or Chinese New Year And so yeah right before Tet holidays a lot of it. Well, a lot of workers just quit early You know have extra long holiday and then after the Tet holidays or arm is same deal They got a you know hire new workers and sign new contracts. So this a slow upstart a lot of times To get the workers in so yeah, it’s definitely same issues same issue. Okay, it’s not

34:53
I don’t know. I’m gonna say it’s as bad. But yeah, it’s something to keep in mind. It just seems like maybe for someone just starting out, like if someone’s listening and they’re just starting out, it seems like China is still the easier way to go. Probably. It’s easier for first-time buyers and especially if you kind of have a smaller kind of have, if you have limited capital and you kind of want to start small and kind of work your way up. What would you say would be like the minimum capital that you would need to just have something made

35:23
Textile wise over in Vietnam. I probably say about 20,000 bucks 20,000. Okay. Wow. Okay. So that’s Yeah Okay, yeah and What about actually visiting the factories is it the same or? Okay. Yeah, there’s no issues visiting factories in Vietnam. Um Yeah, you can fly in a range of visits. We have people visiting all time. We have I’m several guests coming in over the next month or so

35:53
To visit so it’s yeah, you go in visit factories If you want to do production you just see what they’re doing what they make get it started that way and if you have samples made like we have a client who has Probably about to visit I think three times because he’s making I think golf bags and it’s pretty complex because he has very everything’s customized But he’s you visit before made an initial then when the samples are made he’s visiting for samples And now we’re starting production or we’ll start production around April. So we’re planning a visit

36:20
for him during the production run and he wants to be there, you know, just see the bags be made. So for something like a golf bag, there’s a whole bunch of different parts, zippers, pockets, materials, everything. Do they handle all the different materials or? Yeah. Most factories have their back end, what you call the back end supply chain, back end sourcing. So yeah, we expect in most cases, unless you have really unique fabrics or really unique needs for the factory to…

36:49
to get the products to procure the raw materials. So that’s pretty expected. We worked with Kodura and we had to source that separately in some special material. Like I mentioned the high end hiking bag one time, we had to source the material separately because it was very ultra lightweight material that was only made by one factory in Taiwan. was… What about packaging? Most factories can do basic packaging in a house. So if you have what we call kind of brown packaging, just the cardboard or…

37:19
Plastic bags they can do all that and it’s we often call retail ready packaging which means it’s ready to go into retail Yes, if you’re FBA seller, know, you need a barcode on the outside They can most factories can do all that and we can bet them beforehand. Okay, make sure they do that Okay So it seems like okay if you have the money And let’s say we just go through someone like you for for sourcing

37:44
Vietnam will tend to be cheaper and the quality is good mainly because there’s no tariffs and the hurdle really is just finding the factory and kind of developing that relationship. Correct. And as far as you can tell, once you’re kind of in production, there’s really no major disadvantage of going with Vietnam over a Chinese factory. No, there’s not really that.

38:08
What I mean if they have their meet all your qualifications once you kind of bet them everything then there’s not really any specific disadvantages I Mean is it harder to vet because like an Alibaba they actually vet them all for you now Yeah, if you just go through a trade assurance So so basically you have to do this your own legwork Is there anything like trade assurance over with the Vietnam factory probably not right? Not really No, yeah, and yeah, we got a lot of people saying hey I’m trying to find factory of Alibaba trade assurance Vietnam. I’m with that. Yeah

38:37
Okay. Yeah, and just in general, Vietnamese just don’t trust the Chinese, to be honest. I don’t get too deep into that. But yeah, in general, they don’t trust Alibaba, they don’t trust using Chinese-based platforms. they don’t. I can see that. Yeah. I can see that. Let’s talk about Cosmo real quick. How much do you charge? What are your services? Yeah, our basic services,

39:03
We so we do a different pricing model than most other sourcing companies. We charge a flat rate instead of commission. And so the reason we charge a flat rate is you’ll get full contact details of every factory work with what do you direct your introduction between you and the factories and you can work directly with the factories. But our basic sourcing, simple sourcing starts at 1500 USD and then we have kind of a pro tier. So a lot of times you need certifications, certifications, whatnot. And that kind of starts at 2000 USD. But our basic package is 1500 USD. So 1500 that’s defined just

39:33
That’s per project. I would I would gather right we do it by product category So we generally find a product categories of one factory and make it so if you’re doing clothing for instance And you got like let’s just say ten different women’s dresses or ten women garments But they’re effectively the same one factory make all ten styles and that would be one product category Okay, that actually ends up being cheaper because a lot of times the sourcing companies will take like five percent or something like that off Yeah, production run right? Yeah, which yeah for fifteen hundred bucks. Okay. Yeah and

40:03
Another thing too, like why we do a thyroid in Vietnam instead of China, because when I first started sourcing, I was doing commission like everybody else, worked fine. And then I moved to Vietnam. I was trying to do commission. They just don’t trust middlemen in Vietnam like they do in China. And so there’s just kind of expectation to that the Vietnamese factories work with the end client. So I set my services up so that, yeah, if you were reach out.

40:27
with us, you’ll be talking directly to the factory, you can work directly with the factory. We can assist, we have additional services to help out, make sure everything’s going smoothly and nothing sketchy’s going on, but yeah. Okay, do you guys provide, I guess just referrals to freight forwarders and… Yeah, we do referrals to freight forwarders and same with inspections. We visit factories all the time, just with our team, but it’s, they’re basic visits to be honest.

40:52
The more detailed inspections I think are better served by an inspection company because they’ll go in and get full test of every product But we get samples in all the time from fact for clients who just have the sample shipped to us and we can do checking out and do basic checks but Let me ask you this what other countries are kind of up and coming? Yeah, we’re actually looking at expanding to Thailand, Indonesia, Malaysia and Taiwan right now, but

41:21
done anything there yet. So I would say all of those countries. think Taiwan’s pretty up already. But they, in terms of Taiwan, they do a lot of high end precision stuff. Like with the projects we like to do in there were automobile and airplane parts actually. Yeah, LED casings for airplanes specifically. So they do a lot of high end precision stuff. You probably know that Taiwan TMSC.

41:45
Yeah, the biggest microchip factory in the world is based there. So they do super advanced stuff in Taiwan. It’s very high end, very precision stuff. In terms of low cost Thailand, we’re looking at doing some clothing. Indonesia actually does a lot of shoes. So we’re looking at doing shoes there. I’ve looked at Bangladesh, but I don’t trust Bangladesh to be honest. What about Pakistan? Yeah, I would say probably Southeast Asia in general. I would say most countries in Southeast Asia are pretty up and coming. I think those are the next Vietnam. think that’s next boom. Next area. Yeah, I really have it.

42:15
Massive growth. Yeah. Well, hey, Jim, cool. Thanks. Thanks a lot for coming on. Where can people find you and your company? Where should they go? Yeah. Cosmosourcing.com is our website. Just Google Cosmosourcing. We come up. If you want to get in touch with me directly, can shoot me an email at info at Cosmosourcing.com and I’ll respond. I’m also on Facebook, on LinkedIn, or on Instagram. So if you want to follow us there, all under Cosmosourcing, you can, but I think probably.

42:45
email and just go into our website is probably the best. Cool. Hey, well, Jim, hey, thanks a lot for coming on, man. Thank you so much. was pleasure.

42:57
Hope you enjoyed that episode. Now John is a great person to speak with about sourcing from Vietnam and diversifying your suppliers is a great idea. For more information about this episode, go to mywifecoderjob.com slash episode 467. And once again, I want to thank Sellerboard, which is the Amazon profit software that I recommend for Amazon sellers. By going to mywifecoderjob.com slash Sellerboard, you can get 30 days for free. Once again, that’s mywifecoderjob.com slash S-E-L-L-E-R-B-O-A-R-D.

43:26
I also want to thank 180marketing.com for sponsoring this episode. 180 Marketing is the agency that I use to grow my search traffic by 4x in just six months. more information, email Jeff at 180marketing.com. Now I talk about how I use these tools on my blog, and if you are interested in starting your own eCommerce store, head on over to mywifequitterjob.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!

466: Outdated Ecommerce Tips You Should NOT Be Doing In 2023 – Family First Friday

466: Outdated Ecommerce Tips You Should NOT Be Doing In 2023 | Stop Doing These Now!

Welcome to another Family First Friday in honor of my Wall Street Journal bestselling book, the Family First Entrepreneur. In this episode, I discuss what not to do when it comes to starting an ecommerce business today. 

There’s just way too much content to consume online and a lot of it is outdated and worthless. To help you sort through the junk,  here are all the outdated ecommerce strategies and tips that no longer apply in 2023.

What You’ll Learn

  • Outdated ecommerce strategies and tips
  • What not to do when starting a business
  • The problem YouTube, Google and Tiktok

Other Resources And Books

Transcript

00:00
You’re listening to the My Wife Could Her Job podcast, where I teach you how to start a business or side hustle from the perspective of a father with two kids. Welcome to a new segment of the show, which I’m calling Family First Fridays in honor of my Wall Street Journal bestselling book, The Family First Entrepreneur. Now in this episode today, we’re going to talk about what not to do when it comes to starting a business. And the problem with learning how to start a business on YouTube, Google, or TikTok, or listen to a podcast, is that there’s just too much content to consume.

00:30
and a lot of it is outdated and worthless. So to help you sort through the junk in this podcast episode today, I’m going to tell you about all the outdated e-commerce strategies and tips that no longer apply. So number one, stop relying on Amazon, eBay or Etsy for all of your sales. Now relying on a single platform for all of your sales can be risky because it leaves your business vulnerable to changes in that platform’s policies or algorithms, which can instantly tank your sales. Also,

00:58
Diversifying your sales channels can help you reach a wider customer base and increase your overall revenue. Let’s start with Amazon. First off, Amazon does not care about you at all. For as long as I’ve been selling on Amazon, there are thousands of malicious sellers on the platform who game the system and try to sabotage your sales. For example, my friend Kevin Williams started a company called Brush Hero. He’s actually a guest on the podcast talking about this. He sells cleaning brushes and an evil seller in China

01:27
decided to knock off his entire product line, including the box with his picture on it. Now this Chinese company sold a crappier version of his product on his listing at half the price and totally destroyed his multi-million dollar brand. Now when Kevin complained to Amazon and showed them his patents and copyrights, they ignored his problem and did not suspend the malicious seller. And in fact, it took him two years and multiple million dollar lawsuits for him to get Amazon to take action.

01:55
Now for my store over at Bumblebee Linens, every year we have sellers who try to buy out all of our inventory over the holiday season to prevent us from selling and then return all of our merchandise in January after the holidays. My friend John Rampton lost his multi-million dollar container business when Amazon decided to ban his account for life. In fact, I recorded an hour long podcast episode with John about this that you can actually listen in in the show notes below.

02:22
Now Amazon is also getting harder and more competitive every single year. Roughly 3,700 new sellers join Amazon every day and it’s a very cutthroat marketplace. Now I’m not telling you not to sell on Amazon, eBay or Etsy, but you should never put all of your eggs in one basket, especially on a platform that you do not own. The only thing that they care about is their stock price and they are constantly raising their prices to make it harder for sellers to make money. And in this day and age,

02:51
You must have your own website and a property that you own and control. Now, the biggest disadvantage about selling on third-party platforms is that they hide all the customer information from you. And the heart of any business is repeat business. Now, the number two outdated strategy is to stop dropshipping from AliExpress. AliExpress dropshipping is an e-commerce business model where you take orders online and the orders are fulfilled by AliExpress.

03:19
Now products are much cheaper on AliExpress than they are in the US or Europe, so you can make a profit on the sales without ever seeing the product or touching any inventory at all. Sounds easy, right? Well, it’s not. Do not choose this business model because here are the disadvantages. AliExpress is based in China, so shipping times can take several weeks or even months. Now can you imagine ordering something online and having it delivered in 60 days or more? These shipping times alone will kill your business before it even gets started.

03:49
If you need faster shipping, the shipping costs will often cost far more than the product itself. Now most sellers on AliExpress have poor quality control measures in place. And most of the stuff that you find on AliExpress is just cheap junk that is made in China. You want to build your online store and brand on top of quality products and not garbage. Some products on AliExpress are counterfeit. If you end up selling counterfeit products by accident, then you are liable for the damages, not AliExpress.

04:19
There’s also low profit margins. Lots of people are using Aliexpress to drop ship the same junk. As a result, prices are road quickly and you end up having to jump from one fad to the next. There’s no longevity when it comes to drop shipping from Aliexpress and you constantly have to find the next trending product. But most importantly, it’s actually against terms of service to drop ship from Aliexpress on Amazon, eBay or Etsy. If you are caught, you will be suspended. Now, since we’re on the topic of drop shipping,

04:47
I also want to say that dropshipping overall is not a good long-term business model. Sure, it’s easy and cheap to get started, but your margins are low and you’ll probably not make life-changing money with it. Once upon a time, dropshipping was a lot more viable, but Amazon basically killed this business model. Outdated strategy number three is to stop using Amazon Automation. Amazon Automation is a service where a business owner outsources all the processes of their e-commerce store to a third party.

05:17
Basically, you pay a company tens of thousands of dollars and they go and find you a product to sell, list it on Amazon, and you split the profit. Now, when I first saw these ads all over YouTube, my Spidey sense started tingling immediately. Why would a company start an e-commerce business for you from scratch and split the profits when they could just do it on their own and keep all the profits? Amazon Automation had scam written all over it and it’s proven to be true.

05:42
Now I’m not going to call it any specific Amazon automation businesses in this episode, but all I can say is that if something sounds too good to be true, it usually is. Now, even if some of these Amazon automation companies were legit, most of the Amazon aggregators actually went bankrupt during the downturn and it’s an extremely difficult business model. The next outdated business model is to stop running Amazon giveaways or soliciting reviews.

06:09
Now over the years, Amazon has majorly cracked down on solicited reviews. It is now extremely difficult to get people to inorganically leave a review on your products, so just don’t do it. If you are caught, then you risk a product or an account suspension, and it’s just not worth it. The best ways to get reviews now are through Amazon’s backend, where they allow you to send a single, canned email to ask for an unbiased review. And the same goes with giveaways. Once upon a time, you could spam giveaways to increase your sales velocity and rankings, but these no longer work.

06:39
You also want to stop using public rebate sites. Once upon a time, people were using rebate services to get sales on Amazon and then reimburse them through PayPal. And this allowed sellers to get a full price sale, which helped boost rankings while attracting many buyers looking for free products. Essentially, it was like running a giveaway, except you get a real sale. Now, Amazon cracked down hard on these rebate sites when one of the most popular rebate giveaway tools, RebateKey, was suspended. Anyone who used a rebate service

07:08
was also sent a scary letter warning against these actions going forward. Amazon changed their terms of service with the following new wording. Manipulating sales rank, such as by accepting fake orders or orders that you have paid for, or making claims about sales rank in product titles or descriptions is against terms of service. Now, there’s still Amazon sellers using rebates, but definitely not with a paid service. It’s just not worth the risk. You also want to stop spending all of your efforts on customer acquisition

07:38
and sell more to your existing customers. Now, when most people run a business, most people focus on spending all of their money to acquire new customers and often neglect their existing customers. Well, let’s face it, we’re in a downturn and there are many reasons why you should be focusing on selling to your existing customers more. It is 66 % less expensive to sell to existing customers than to acquire new ones. After all, existing customers already know who you are and they trust you. They already opened up their wallets once.

08:08
As a result, the cost of getting someone to buy again is super easy. Just send them an email or a text. Existing customers are more likely to make repeat purchases and spend more over time, which means that you can greatly increase the lifetime value for each customer. Repeat customers are also much more likely to be loyal to a brand, which can lead to more positive word of mouth and referral marketing. And this is saying that on average, every happy customer tells at least nine people about their experience.

08:36
So by focusing on your existing customers, you can gain a better understanding of their needs and preferences. For example, with our store, once I started communicating with existing customers, I actually discovered that many of them were event and wedding planners. And by getting on the phone with them and offering them coupons and special treatment, I could get them to buy in bulk from our store forever. The other thing you also want to do is to stop focusing all on ads and more on content. Paid advertising is expensive.

09:06
and it’s getting more expensive every year, and the traffic is short-lived. Platforms like Google and Facebook are getting more expensive every year, and this is even taking into account iOS 14, which pretty much decimated the effectiveness of Facebook. The best way to attract long-term sales for free is by creating content. Three years ago, I started a YouTube channel, and let’s just use that as an example. Right now, if you go to my YouTube channel, and you watch a video, and you absorb the tactics and strategies that I teach you, I’ve gained a little bit of your trust.

09:36
And by trusting me, you are far more likely to buy a product that I have for sale. Now the beauty of content is that it’s free to produce and the effects are everlasting. Videos and blog posts that I wrote 10 years ago are still generating me traffic today. YouTube videos that I created years ago are still making money. And in fact, my YouTube channel makes over 300K on ads alone. And my blog makes seven figures on affiliate marketing and core sales every single year. And in this day and age, it’s all about building a brand.

10:05
which requires you to create content. After all, you can’t really build a brand unless you can get your message in front of customers. So just pick a medium, whether that be blogging, YouTube or social media and start posting on a regular basis. Because once you’ve gained someone’s trust, you can easily sell them products that you create. Another e-commerce strategy that you guys should be focusing on is email marketing and SMS. Now in this last section, I talked about creating content to build a brand.

10:33
Well, the average conversion rate in e-commerce is only about 2%, which means that 98 % of people consume your content and then bail. Now, the best way to bring these visitors back is to grab their email or their phone number. Create a lead magnet. This could be something as simple as giving out a coupon or free shipping in return for their contact information. And here’s the beauty of email and SMS marketing. Visitors may not be ready to buy from you right this second, but by emailing them and contacting them on a regular basis,

11:02
you’ll keep your company in their minds. So when they are ready to buy, they will buy from your store. Email and SMS marketing can also be used to promote products, offer discounts, and provide valuable content to subscribers. And the best part is that these are customers that you own and no one can take them away from you. Now my next piece of advice is to just stop doing what’s easy. Because if you go with what’s easy, there’s going to be more competition.

11:28
Now one of the most common questions I get asked is, Steve, what is the easiest way to make money online? Steve, what is something that can start and make money today? This is the absolute wrong mentality and let me just explain why. If you go and start something that is easy, that means that thousands of other people are going to be doing it. And when you do something easy, there are no barriers to entry and the competition is going to be fierce. Let’s take dropshipping as an example. It’s pretty easy to start dropshipping online because you don’t have to carry inventory.

11:56
and you can start selling immediately. But guess what? Chances are there are thousands of other people drop shipping your exact products. Now as a shopper, let’s say I find 10 stores selling the exact same product. I’m going to buy from the store with the cheapest price. So when you do something that is easy, the price always spirals to the bottom. So instead of asking yourself what is easy, you should ask yourself what is difficult or a pain in the butt to start. What unfair advantage do you have

12:26
over other people. For example, with our store, we do custom embroidery. We have five machines that cost over 10K each to do customer embroidery for our customers. And not only are these machines expensive to buy and maintain, but it’s actually a major pain in the butt to embroider something. Not only does the thread break all the time, but the machines need to be recalibrated and the machines chew up product all the time. Furthermore, it requires someone trained to operate them. And because doing custom embroidery is such a pain,

12:54
there are very few people who would try to copy me. Sellers in China can’t copy us because they can’t offer the service from 20,000 miles away. So instead of asking yourself what is easy, ask yourself what’s hard that you’re willing to tackle. Now my final piece of advice, it’s to stop throwing up random products to sell online. Because back in the heyday, you could go on Alibaba, find a product for cheap as is, listen on Amazon and make a killing, but those days are over. Now to be clear, you can still make money this way.

13:23
but only for a short time. Especially on Amazon, sellers are constantly using research tools like Jungle Scout to find good products to sell, and eventually someone will find your product and copy it. That is, unless you have a strong value proposition and a brand. A unique value proposition, or UVP, is what makes your product different or special, and your product doesn’t necessarily have to be better, it just needs to be different. For example, my brand over at Bumblebee Linens,

13:50
offers the largest selection of handkerchiefs on the internet. And I’m pretty sure that companies can’t make this claim because we specialize in hankies. My friend Dave over at Saddleback Leather sells bags which are a huge commodity. But his value prop is that his bags last forever. His slogan is that they’ll fight for it when you’re dead. So instead of throwing up random, disparate products to sell, think in terms of niches or families of products that you can build a brand around. You can start with a single product, sell it well,

14:19
and then expand into related products or accessories. This way, you are creating a business that focuses on a specific area, which will eventually lead to a brand. So that’s just a list of things that you should not be doing today. Don’t fall for the get rich quick schemes and be prepared to stick it out for whatever business you decide to start for at least one year.

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465: The Secret Sauce Of Successful Amazon Sellers: How To Rank Your Products In Search With Brandon Young

465: The Secret Sauce of Successful Amazon Sellers: How to Find High-Demand, Low-Competition Products With Brandon Young

Today I’m thrilled to have Brandon Young on the show. Brandon is one of the leading experts in Amazon private label, especially when it comes to Amazon SEO. He and his wife are eight figure sellers, and he’s also the co founder of one of the fastest growing Amazon software companies called Data Dive.

In this episode, Brandon reveals his latest strategies on how to research and rank your products on Amazon.

What You’ll Learn

  • How to find a high demand and low competition product to sell on Amazon
  • How to rank in Amazon SEO
  • What it takes to become an 8 Figure seller on Amazon today

Other Resources And Books

Sponsors

Sellerboard – Sellerboard is a must have tool for Amazon sellers if you want to know how much profit you are actually making. Click here and try Sellerboard for FREE.

180 Marketing – 180Marketing is the agency that I used to grow my SEO traffic by 4X in just 6 months! Click here to book an appointment

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 the strategies they use to grow their businesses. Today I have my friend Brandon Young on the show. And Brandon is one of the most successful private label sellers that I know personally, especially when it comes to Amazon keyword research. So in this episode, we analyze exactly how he picks winning products to sell on Amazon. But before we begin, I want to thank Jeff Oxford of 180marketing.com for sponsoring this episode.

00:28
180marketing.com is an agency that specializes in helping e-commerce stores boost their SEO traffic. And in the past, I used Jeff and his firm managed to grow my search traffic by 4x in just six months. In fact, 180marketing is one of the few SEO agencies that I trust 100%. For more information, go to 180marketing.com or just email jeff at 180marketing.com. I also want to thank Sellerboard for sponsoring this episode. Sellerboard is profit analysis software.

00:56
that helps you figure out exactly how much profit you are making selling on Amazon. Now if you’re an Amazon seller, you’re probably aware that there are many hidden fees in selling on the platform and Sellerboard organizes all that information for you in a clear and concise fashion. Now personally, I recommend Sellerboard because they’re among the least expensive software that I know of that does this, which is one of the main reasons why I like them. So for more info, go to mywifequitterjob.com slash Sellerboard and try them free for 30 days.

01:24
It is literally a no-brainer to sign up. Once again, that’s mywifequitterjob.com slash S-E-L-L-E-R-B-O-A-R-D. And then finally, I want to mention my other podcast that I run with my partner, Tony. And unlike this one, where I interview successful entrepreneurs in e-commerce, the Profitable Audience podcast covers all things related to content creation and building an audience. No topic is off the table and we tell it like how it is in a raw and entertaining way. So be sure to check out the Profitable Audience podcast on your favorite podcast app.

01:53
Now on to the show.

02:00
Welcome to the My Wife Quitter Job podcast. Today I’m happy to have Brandon Young on the show. Now, Brandon is considered by many people, including myself, to be one of the leading experts in Amazon private label, especially when it comes to Amazon SEO. Now, he and his wife are eight figure sellers and he’s also the co-founder of one of the fastest growing Amazon software companies called Data Dive. He’s also speaking at Seller Summit this year. And so if you’d like what he has to say today,

02:29
you can get Brandon in person and live in Fort Lauderdale, Florida on May 23rd. in this episode, we’re actually going to learn the story about how Brandon became an eight figure seller and the latest strategies regarding Amazon SEO. And with that, welcome to show Brandon, how you doing? Oh, thanks for having me, man. I’ve been looking forward to this for a while. The funny thing is

02:53
You were probably maybe the second podcast or third podcast that we ever discovered when we were building our e-commerce brand, my wife and I. And you were by far her favorite host by the in-depth questions you’d asked, the fact that you were practicing what you were preaching, the amount of marketing you were doing. And I think if you remember correctly, the first time that I met you, she was with me and she was starstruck. I told you that you were…

03:22
She was afraid to even talk to you because she’s such an introvert. But we’ve hung out at a bunch of events since and at your event last year. And you know, it is you’re like a celebrity to us. I’m trying to remember when I met you in person. Was it the mini chat event or the mini chat event may have been the first one or it was your event. I came to your event in 2018 maybe. OK, yeah, maybe maybe that was the same year actually. Yeah, yeah.

03:52
Cool, yeah. I managed to get a ticket because you were sold out, you sell out every year. People listening think that that’s sales gimmick, but the reality is once you’re done selling your 200, 250 tickets, you cut it off because you want the event to be small and intimate and the sellers to really get to know each other, which is awesome. But a lot of people will say, oh, only a few more tickets left, and then they just keep opening up and make the room bigger. You don’t do that. So I had found out about your event and I live in South Florida.

04:21
So I wanted to go really badly and I had a friend who couldn’t make it. So I had to get his ticket transferred to me last minute and he had bought a mastermind day and I was in Brad Moss’s room. That was the first time I met Brad Moss. yeah, that’s right. Yeah, yeah. He’s absolutely brilliant. Former Amazonian, helped create the Amazon seller app. Like the quality of people that I met.

04:45
When i was there for the first time just blew me away and i wasn’t expecting anything less but it was even more than i like it was just incredible So thanks brandon. You’re too kind In other words come hang out come meet, you know Come meet us and and meet all the sellers the high quality sellers and everything. I hope to see you guys all there for sure It’s funny. Uh brandon and I we were just talking about events because brandon just held his event, which was amazing

05:11
And we were just talking about small events don’t really make money. We’re doing it really for the community. The reason why we do these things. Yeah, I actually lost money at my event. It’s not I’m not even doing it to make money. I did not lose money next year. I think I think the the way that we did it was amazing and and intimate. like I got a lot of inspiration for the way from the way that you run yours. So it was fun. Cool.

05:40
Yeah, it’s not very profitable. I’m curious. I’m pretty sure a lot of people don’t know your origin story, at least the listeners in my podcast. Like how did you start selling on Amazon? And did you hit eight figures before you started going to the software and that sort of thing? Yeah, so we did hit eight figures before we started developing the software. But we started in 2015 with Arbitrage. We, we

06:06
We were listening to Scott Volcker’s podcast, like when he was really getting into private label and reselling and we were listening to a couple other people. We had just discovered what FBA was and my background in business, I said, man, FBA makes such an amazing opportunity to make a scalable business because the hardest part of running a business is the overhead and the cost associated with the overhead and they don’t.

06:34
they take care of all that for you. They let you leverage the billion dollars of infrastructure they have. And I don’t have to buy a warehouse. I don’t have to pay for boxes or anything. So I said, all we have to do is find things that sell and just keep sending them in and we can build a really big business. And so my wife and I decided to give that a shot and we, we, it almost seemed too good to be true. So I think we just went to a store. We had found out what app to get to, to scan something and we sent it in and it sold within a two days of checking in. so.

07:03
We looked at each other, said, what else can we sell? And in my background, my family owned a wholesale construction supply business. So I, I reached out to my contacts with DeWalt and Milwaukee, Makita, and we started wholesaling tools. We also found some opportunities with liquidation. So we found pallets of returns from T-Mobile where most of the goods were still brand new in the box. And so we were able to like, you see these giant pallets that would come in with a thousand items on them. And.

07:33
you know, a third would be trash. A third would be used that we could sell on a third, you know, would be brand new and, and sellable. People were actually buying them. And so we were, we were buying these pallets. We were buying tons of tools and we had a couple skews start to get blocked. Kate Spade became a gated brand. yeah. The Waltz became a gated brand and those were huge parts of our business at the time. And so with, with my wife being from China,

08:03
I said, why aren’t we doing private label? We have such a huge advantage here. You speak the language, like you have family there that can help us source. We can, we can figure this out. So in 2016, we hopped on a plane and we went to Canton and we picked a few products that were in the same vein of what we were doing in electronics, which turned out to be a mistake because it ended up being such a competitive niche. But we definitely learned by jumping into the deep end and learned from failures, learned from some successes.

08:33
and built it up. I’d say we did one million, then three million, then six million, 12 million, and then this last year we did 22 million. Nice. You know, it’s funny, you were just talking about overhead, like we just bought our own warehouse. Like, just ended our lease on our warehouse. Oh, did you really? Yeah. Congratulations. I went the other way. I had that option and I was like, renew my lease or just

09:03
Just outsource all the three PLs. I said, I don’t want to travel, come back to a messy warehouse. So it’s funny is I always optimize for low stress. And when I have everything under my own roof and control, that allows me to sleep better at night. Because I’ve had friends who have had nightmares with three PLs. Oh, OK. I find it the opposite because like finding it was was partly from finding like employees that would.

09:28
you know, basically receive the packages, inventory them correctly, quality control them correctly, store them, make sure they were labeled, had a cycle count every month. That’s all I wanted, right? Like just want things being received and put away. And it became overwhelming for the people we had helping us. I didn’t… That was stressful to me. Coming back and seeing a messy warehouse and not knowing what was in it.

09:57
Far more stressful than than than that can be stressful to out of sight out of mind, right? So so what we do is our biggest brand is a toy brand and I found an amazing not for profit that, you know, helps underprivileged families or poor families with underprivileged kids and they receive all of my returns from my toy brand. Give me a ticket for everything and then they quality control.

10:25
take out anything broken, throw it away, whatever. And what I’ve found, not only this is good for business, but it’s also good for them, is that things I would normally throw away, like something that’s open or the packaging is damaged, they’re breaking it apart and the parts become their own little toy that they can give out to little kids. Right? So, like a tool kit, for example, that I might, like I sell, the toy hammer is still good. It’s still a little tool that, like a toy that a kid might want.

10:55
And normally I would just chuck that in the garbage bin, but they’re able to use a lot more of it than I thought they could. And then I don’t have the overhead of having someone quality control it and get less of a write-off also. So it works out so many different ways and we get to help so many families. We ended up helping over 6,000 families last year. That’s amazing. How did you find this, Thrupeel? No, it’s the not-for-profit itself that has a warehouse.

11:21
Oh, got it. Got it. We said everything there and then they scan in the Amazon slip. That’s amazing. That’s it. That’s amazing. That’s amazing. I am curious. How many skews do you have? We depending on the holiday, it teeters between 250 and 300. We added about a hundred and 150 products almost last year. Wow. OK. And we’ll probably launch about the same this year.

11:52
So you have SKUs that just kind of come and go. Yeah, we do a lot of seasonal, a lot of holiday because our biggest brand being toys, we don’t want Q4 to be so heavy on us that, you know, everything’s a build up. It’s from a cashflow perspective, a risk perspective. It’s just really difficult. So we’ve added Valentine’s Day, 4th of July, tons of summer stuff, Halloween, you know, so it kind of, it levels out the year with bumps in those holidays.

12:21
It’s a little bit harder from a product development standpoint like our team has to put a lot of these Packages and toys and toy development together, but once we’ve done it a few times. We kind of see what works what doesn’t and it helps So I get a lot of questions from people asking me about what the margins are like on Amazon now So I was just kind of curious what your margins are like and what’s acceptable to you. Oh, it’s it’s it’s low

12:48
No, the reality is I’m one of the few people that’ll tell you the blatant truth about it. Margin compression crushed a lot of us the last couple years, especially when containers went to 20 grand. Well, they’re back to normal now, thank God. Yeah, thankfully, right? Like 2000 is a big, big thing. But the cost of plastic is still up 50 % or whatever, right? That’s correct. you still have some product costs that are higher.

13:11
there are sellers that are just okay selling at a smaller margin. And what we found is we’re pretty aggressive in that way. Tacos, so to explain tacos really quickly, like your total advertising cost over your total sales, people call that your tacos. So that would be like the percentage of your revenue that you spend on marketing.

13:34
And our tacos went from an average of like 11 % to maybe 16%. So that’s 5 % off the bottom line right there. And then the additional costs that we were talking about. And launching is always more expensive. So to give you an example, last year during March and April, as we were launching a bunch of summer products, we actually lost money.

14:02
And then we had single digit months a couple times throughout the year, single digit margin months, and that’s that’s after everything that’s that’s after like overhead and one time costs that you would normally get added back like from marketing and launches and stuff. But Q4 is where we make it up so we we will purposely stick with a skew that we know is tight throughout the year. You know 1520 % margin.

14:26
because we know that Q4, it’s gonna be 30 % or 35 % and sell five, it’s basically six months and three or six months and two. And so we’ll stick with it. But yeah, for the most part, you have to lower your expectations and make sure you’re getting an accurate landed cost and really, really factoring in the marketing that you’re gonna have to do, not only to launch the product.

14:53
but to maintain the growth and grow it, grow it and then maintain the position that you wanna have, like the market share you want. You have to spend in order to stop someone else from taking that market share. And unfortunately, PPC is the most effective way to do that. So you just have to spend dollars on marketing. That’s why I was just curious. mean, for products that you’ve launched and then you don’t sell anymore, that’s kind of like a hit, right? A lot of this is an investment in the listing, right? Yeah, for sure.

15:21
I’d say that we make money about 70 75 percent of the time on a product Yeah lose money about 25 to 30 percent of the time Maybe that’s up a little bit from where it was two years ago three years ago when the hit rate was better But that that accounts all of the products that you just discontinue and I’d say we used to reorder about half of the products that we launched now It’s probably 40 percent. It’s gone down where just doesn’t make sense doesn’t

15:50
You know, maybe the design wasn’t as good. The conversion rates, not great. We, know, the competition came in too harsh, whatever the reason we, we only reorder maybe a 40%. But the other 40 % that we don’t lose money, it’s because we can get our money out of it, but it’s going to take six months instead of the two or three we were expecting. Yeah. Yeah. That’s actually, was getting at like, how do you see the landscape on Amazon this year and going forward?

16:19
So it really depends what happens with the economy, I think. But I see Amazon continuing to grow overall from a overall revenue perspective and as a percentage of overall retail. So I think that even if the economy tanks, which it looks like we’re going to have a softer landing than people expected, is the talk around from experts that I I listen to simply because of this last jobs report.

16:49
Um, you know, being 500,000 as opposed to the a hundred thousand they expected, uh, they, they feel like, uh, maybe it won’t be as bad, but even if it does pull back, I think that there will be certain niches that you should avoid like travel and luxury goods. Right. But I think that there will be plenty of products that do well and will continue to grow. Uh, and I think Amazon’s just the clear cut favorite for us. Like it’s our main marketplace.

17:19
because of the ease of the logistics and supply chain, because of the leveraging their overhead, and because we’ve really solved their ranking algorithm, we can really do the product research and have a very high success rate.

17:36
My first book, The Family First Entrepreneur, just debuted as a Wall Street Journal business bestseller. And not only that, but my book was also featured on a billboard in Times Square during the launch. I am literally in awe right now. I’ve also enjoyed all the incredible reviews of my book that have been coming in from readers all over the world. Now if you’ve not picked up a copy yet, there’s no better day than today. It’s available at Amazon, Barnes & Noble, and anywhere books are sold. Now if you’re curious about what The Family First Entrepreneur is all about,

18:05
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18:33
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18:59
invitations to book parties that I’ll be throwing all over the country and special offers. Once again, that’s mywifequitterjob.com slash book. Now back to the show.

19:10
Well, let’s talk about that. How do you do the research? How do you rank and search? And what I like about you, Brandon, is like you really can dig deep into this stuff. And I want everyone listening to understand everything too. So I will try to explain when Brandon gets too technical or I’ll ask him to explain. Yeah, I’ll do my best to give you a high level overview, but to not hold anything back. Yep.

19:39
So when it comes to evaluating a product, I think that the most important question you need to ask yourself is how are the current sellers making their sales? So that’s the million dollar question in my mind. And so that was a question that I figured out when I was really just thinking deep on a failure we had. And I thought to myself, why did this product fail? And it really was because I didn’t

20:09
And I’ll tell you what it was. It was like a lighted Lego type set, like a brick set with lights in it. And I really was like curious why I couldn’t sell this thing. It was such a cool toy. I enjoyed it. I loved it. The designs were awesome. And like we put a lot of effort into the artwork and like the product kind of sold itself. Like if it was sitting in a store, people would love to buy it, right? And there’s a similar brand out there that people do buy. Like if, but it’s in Barnes and Noble and Toys R at the time and stuff.

20:38
And so was like, OK, well, we could do our own version of that and it should do great. The reality was there weren’t a lot of keywords like lighted bricks is not a keyword. I couldn’t use the brand name of the competitor that was in the space and I definitely couldn’t use Lego. If someone searches for Lego, what I figured out is that they want Lego. They don’t want Brandon’s bricks or whatever, right? And so that what they were called. No, they were not actually called Brandon Bricks, but it was just as an example and.

21:07
So I really thought about it I was like, okay, so the first thing I need to do is figure out how are people buying these products? How are the current sellers getting their sales? And then not only that, the next level question is, can I duplicate that? Can I do a better job than them? Are they all doing a good job? And so once I asked myself those questions, I started to figure out that I needed to put this in some kind of matrix. And so what I would do is at the time I had seller tools and I had viral launch,

21:36
And I would use seller tools for like the, they were the reverse ASIN and then viral launch had search volume that was accurate. And I would kind of V look up and try to figure this out and then put the competitors. And then Cerebro came out with Helium 10 and I could pull like one competitor at a time. And then they opened at the 10. So I could pull 10 at a time. So I’d pull the raw data.

22:03
I’d put in a formula to match, like to count how many of the competitors were ranked for each keyword, which to me is just a simple way of figuring out relevancy. Like the, if I choose the best competitors or best sellers of a niche, the more that are ranked good for a keyword, the more relevant that keyword should be. Just simple logic. And so we did like a count it formula and then we started playing around and sorting with search volume. And, and so this whole process of really digging into a product to

22:32
see what the relevant keywords are, how many, was then, then I was counting how many of those relevant keywords each competitor was ranked well for. Then I was counting, adding up the search volume and adding and figuring out how, what percentage of each, what percentage of search volume each competitor was ranked well for. And I was really getting a good idea of not only what keywords were driving sales, how the current sellers are getting them, but how good they are at Amazon.

23:01
And then I could figure out based on how many keywords there are, what the opportunity is, what the risk is around doing the product. And I really started to figure out this way of formulating through data, how to evaluate a potential product. Let me ask you this, Brandon. I know, cause I run a class myself, sometimes someone will come to me with a product and they’ll be like, Hey, this makes so many sales. And I look at the keywords and

23:29
there’s not enough keyword volume to justify those sales. And it turns out it’s some like TikTok sensation or someone, some blogger wrote about it or something like that. How do you factor that into account in your numbers? So when the, the, amazing part is that the story needs to make sense. And so there’s several things to look at. And by the way, like, like this is all of that manual work is what I taught and did in my own business and then taught my students for years.

23:57
And then until until we kind of create a data dive to make it instead of like that hour long two hour long process of putting that data into a sheet, a master keyword list data dive now does it 90 seconds. But what that also allows you to do is to find the whole like the inconsistencies in the story that you’re talking about. OK, so we have a seller that’s the like the second best seller. Let’s call him the first best seller because they have this big outlier, but they’re only on 60 % of the search volume that drives sales for that product.

24:26
Now we look at outlier keywords and we see, there any branded search terms? Are there any generic search terms that they’re ranked really well for that no one else is ranked for? So maybe, maybe they’re like number three for toys for four year old girls. And that’s 140,000 of searches a month. And no other seller can duplicate that, including you when you want to do it. So that needs to be backed out. And now the story kind of makes sense. But when you have a TikTok sensation,

24:54
What you’re going to generally see is you’re going to see keywords in the outliers that they’re ranked really well for that have decent amount of search volume around their branding and around like just descriptive words around that product that may have been used in the Tik Tok video. And a really good example of that is there’s an aggregator named branded that they’re really good at Tik Tok and they have a garlic press that’s in the shape of a vampire and

25:22
When you do a garlic press dive and you look at the 20 best garlic presses, theirs is one of them, but you see vampire garlic press, you see Dracula garlic press, and then they have like a new, like a branded name for it. Then they have the brand name for it. And all of those have search volume in the thousands. So people are going on TikTok and seeing this product and seeing the ads that they’re running, the viral sensation, and they’re like, oh, I didn’t remember, the brand name’s really hard to remember. It’s not a very good brand name.

25:52
But still, so what they’re doing is then they’re going and they’re searching for vampire garlic press. And so now the story makes sense, because you can see it in the data that somehow they’re still getting those searches. And it makes sense that their sales kind of match to the search volume that they’re ranked well for. What about affiliate links? Yeah, so affiliate links would be difficult to detect because it’s going to be.

26:20
It’s going to be outliers, right? Like so let’s say you’ve got the third and fourth and fifth best sellers and the third best seller is at 800 sales a month. 60 % of the search volume and then the fifth best or the fourth best seller. The next guy is at. You know 400 sales a month, 68 % search volume, so more search volume, less sales. Rank as long as the ranks are similar across the keywords.

26:47
then that would indicate that they’re sending outside traffic to me. That’s like an affiliate link. That’s, uh, that’s some kind of outside campaign where they’re driving traffic from outside of Amazon. And so that’s the missing link is generally when, when the story doesn’t add up, the branded search terms aren’t there. Those, uh, those, those outlier keywords with like generic keywords aren’t there and they just significantly are better with similar keyword ranks than it makes sense. The only place that you’ll see sometimes, uh, where

27:16
one seller will significantly do better with similar search volume is if their keyword ranks are in the top five top three for most of the keywords and the guy next to them with similar search volume are top 10 top 15 top 20 just because the higher up you are on the on the search results you generally will convert better so you’ll make more sales. Right let me just summarize what you told me just for the listeners just in case they’re lost so when you decide something that you want to sell you look at all the top guys

27:46
and then you map out all the keywords that they’re ranking for in a table that you can compare. And you’re looking for outliers and you’re basically just trying to figure out where all the sales are coming from, essentially, right? Yeah, you’re answering the question. It’s like, why is this guy getting 600 sales a month? Well, if you knew all of the keywords that they were ranked on and you knew the search volume of all of those keywords and you know the position of them,

28:11
And then you then you basically lay that out next to the other 19 best sellers. All of a sudden you have a complete picture of the niche. Right. Or 98 or 99 percent of it. Right. So assuming you have all this data in a table, what is your criteria for determining whether you should go into it or not? Yeah. So I look at the competition. I look at the general opportunity. the low hanging fruit is going to be ROI and budget. So.

28:40
Step one would be understand your own business requirements from a risk perspective and from a budget budget perspective. Getting into a product that’s going to require a lot more capital than you have is the fastest way to light your money on fire. If you find a niche and then you evaluate it and you see that, you know, the the third, fourth, fifth, sixth guy, seventh guy, best sellers, right?

29:06
of this product are ranked between 60 and 80 % of the search volume and they’re selling an average between them of 1,000 units a month, so 30 something a day. And it’s a $5 to land product, total landed in, all in. With marketing and enough money to reorder, you’re looking at needing at least five times 30 a day, so that’s 1,000 units.

29:35
So that’s $5,000 times three months is 15,000 for three months of inventory. Then you wanna have double that budget for your next order and for marketing expenses. So you need $30,000 to do that. And what’s interesting, mean, if you take a look at this, I don’t know if I can share really quickly. I know it’s not gonna translate to audio, but I wanna show you so maybe you can explain it in better terms. But before you open that up, those dollar amounts,

30:06
That’s assuming you hit the front page. That’s what you would need to keep up, right? With the sales. So the way that we write our listing and the way that we send signals of traffic, you should be on the first page of, like I said, 60 to 80 % of the surge volume within the first week of launch. So that’s assuming you preserved your honeymoon. You wrote your listing. You want to define all that, first of all, just in case people don’t know what your time is. Can you define the honeymoon period? Oh, yeah, yeah. So.

30:35
When you first launch a product on Amazon, honeymoon periods one of most important things. So when you first launch a product onto Amazon, they have no idea what this product is. And so they’re relying on two things for rank in order to understand honeymoon. You kind of need to know the algorithm. The algorithm relies on performance times relevancy. So the performance piece is going to be your click through rate, your conversion rate and your revenue. And so.

31:02
the day that that product goes live in Amazon’s catalog, just because you created the listing doesn’t mean it’s yours. It’s in Amazon’s catalog. It’s not your product. Even if you have brand registry, you control it. It’s still theirs. And so the day it goes live, it starts to accumulate history. And if you don’t have inventory in stock for three months after launch, it’s accumulated a lot of zeros, right? And so in order to prevent that from happening and to hit the ground running, you want to preserve that honeymoon period, that first 30 to 60 days.

31:32
where Amazon’s kind of figuring out where you belong. And so you want to put the launch and start date into the future, maybe a year out when you create the listing. And so you won’t really populate much into the listing typically, at least we don’t, but you’ll put the bare minimum and then the product will get shipped. It’ll get on its way and on the boat. And then the day before you launch the product, you can populate the rest of the content.

32:01
and you can move that launch and start date to that day that you’re launching and then it will go live in Amazon’s catalog. So in other words, if you had created it and preserved the honeymoon correctly, you click on it in your inventory tab, it’s going to lead to what they call the Amazon dog pages, which is this URL can’t be found. And it shows you a cute dog that someone that works at Amazon owns. Yep. And if, but if you see your listing there with like the bare minimum you would put in, then your honeymoon already started.

32:30
and you’re accumulating negative history. But assuming you hit the ground running, you wrote your listing to maximize rank potential because you wrote the keywords in the right order, in the right format, in the right match type, and in the right spots. And then you turn on the right PPC campaigns for launch, which would be targeting all the highly relevant ones, being very aggressive, sending a lot of signals, traffic signals, add to carts, getting add to carts and conversions and everything.

32:58
that performance piece that Amazon loves to see, then you should rank on the first page for hundreds and hundreds of keywords within the first five to seven days of launch. Very consistent if you do it in the right way. Doesn’t that depend on how competitive it is? So what was your criteria then for figuring out whether you could even do that or whether that was possible? I mean, it’s not always a matter of money, right?

33:22
So typically what you’ll see is like on the first page, what do you have 35 to 45 competitors depending on the layout of the page? Yeah, I’d say even in highly competitive niches like I’m not talking about like vitamin C serum, right? Like that would be like the top. It would be very, very competitive. Not a lot of keywords for it. And people throwing millions of dollars at it, right? Because they’re playing the LTV, the lifetime value game versus the make money on every unit game. So.

33:51
But even in there, the 21st through 35th best sellers are beatable because they’re not gonna be ranked for most of the keywords. They’re not gonna be converting highly. They’re gonna be sending the wrong signals. Their images might not be as good. You should be entering the market with highly converting images because you can test them in advance with PickFu or whatever service you use. could be, you can definitely.

34:19
do the homework in advance to make sure that your design, your product has enough value and is in the right price point to where it should convert. And you should launch at a slightly lower price. That’s our launch strategy. You can use a big coupon instead if you’re gonna run frequent lightning deals or something. But typically you’re just gonna outperform those 20 through 40 anyway most of the time. So when I say jump to the first page, you’re like 15 to 20 for most of those keywords pretty consistently because

34:46
you have a highly converting listing and it’s really strong signals on what you’re selling. So how do you quantify the strength of the listings that you’re going up against? Like what if those in position 20? Yeah. So it’ll be like, do they have infographics? Like are there images really well lined out? So in Data Dive we have a tab called Deep Dive and you can see their sales over the last couple years.

35:14
the trends, you can see how many variations they have. can actually hide, there’s a button, like a drag down to hide the details. And what it’ll do is it’ll only show you their content. So you can see how good their images are. When you start seeing most of the sellers with multiple variations, they have, their second image is about like the benefits of the buyer. They have infographics, they have good lifestyle images that are clearly not photo, like that don’t look.

35:43
you know, obviously Photoshopped, they have A plus content. That would be a more developed niche from a content perspective. Combine that with analyzing how good they are at the keywords, ranking for the keywords, their price point, and whether that leaves you an ROI if you have to compete on price, then that’s kind of how we would evaluate the niche. Okay. So the strength of the listing is a little bit more subjective, right?

36:12
Yeah, strength of the listing would be subjective based. It’s more of just a checkbox. Are there images good and clean? That’s that’s pretty subjective. But do they have a plus content is like a yes or no? Yeah, do they have? Do they have infographics that’s a yes or no? You know, you’ve seen it many times where there’s certain niches where people just have the same. They have like eight product images just from different angles or whatever.

36:38
And that’s not gonna be very sophisticated or tough to beat. Okay. And this is under the assumption that a lot of those guys aren’t doing a great job with their keywords. Yeah. SEO is where you crush them, right? So that’s the most reliable way to beat them. Okay. I’ve seen it many, many, many times where people have the most gorgeous listings, but they’re just not ranked really well because they didn’t do a good job with the SEO and the launch. And I feel like they could do a better job. Like,

37:08
I would love to hire them as a product development person, but they need that training on the SEO side. Okay, let me ask you this question then. If you just use a reverse ASIN lookup tool of the top best sellers and just added those keywords to your listing, how is that different from what you do? So you need to know which ones to prioritize. So we use a formula.

37:32
We take all of the data based on how many of the competitors are ranked well for those keywords. like that’s the relevancy formula. We factor that in and we factor in the broad search volume of the different root words that are found within that data set. So if I can explain that in another way, it would be like there’s 400 keywords. What are the repeated words and phrases that you can pull out of there? So if I was looking at a diaper bag,

38:02
diaper bag backpack out of 400 keywords might show up 200 times. And baby bag might only show up 34 times with 50,000 search volume. So prioritizing the correct phrases in the right order and the right match type and figuring out what words to put in requires a much deeper look into the data. Okay. So just for the listeners out there, when you create an Amazon listing, there’s only so many characters that you have in the title bullet points. So

38:32
It’s a matter of prioritizing what you put in those to make the maximum use out of those characters that you have. Correct. And not only that, Amazon gives you more credit or less credit depending on where the keyword is and what the match type of that keyword is. So if I wanted to rank what a mistake a lot of people make is that they’ll try to stuff a bunch of words together to make a bunch of different keywords.

38:57
And so they end up with all these broad matches where instead of diaper bag backpack, it was backpack for, you know, diaper bag. And so the words are there, but they’re out of order. You’re only getting 30 % credit towards diaper bag backpack, which is probably the biggest keyword for you. And you didn’t know that you thought you were going to get a hundred percent credit. And so, and, then match type, uh, that’s the match type and then where you put it. the title, the beginning of the title is worth more than the middle of the title.

39:26
The beginning of the title is worth more than the bullets. The bullets are worth more than the backend, some of the fields in the backend. And the backend is worth more than the description. Meaning that when there’s an action, anytime someone clicks on your link, like your product, like there’s an impression, anytime there’s a click, anytime that someone even looks at your bullet, like your reviews, anytime someone adds it to cart and abandons the cart, anytime someone converts, all of those actions will trigger a certain amount of credit

39:56
to all of the keywords that you’re trying to rank for. And the only way that Amazon can distribute that credit is based on, and allow you to tap into it, is based on how you wrote the listing. Because that’s how they establish relevancy. All right, so just to summarize for anyone who’s listening out there, when you’re putting together a high converting listing, there’s like a lot of variables in play. So what Brandon was saying was,

40:24
the phrases that you choose and in what order the words are all matter and it just becomes a prioritization problem. You can’t just stuff all these keywords in there. You have to do them in the right order and you have to put them in the priority that you want because the position those words are in actually matters. Correct. the million dollar question then. So in order to solve how to do that we had to put a quantifiable score to it. Right. And that’s where the ranking juice score that we created comes from. So that when you write your title

40:54
You’ll get a score and we analyze all the competition that you selected too. So we actually tell you their score and then we show you show you what your score is. And then we show you on the data set all the root words and phrases and all the keywords exactly what you have hit and what you’ve missed and in what match type you’ve hit it or missed it. OK, so walk me through data dive now. So data dive is Brandon’s tool.

41:24
that can be used to optimize the listings. So if I pop in my listing, let’s say, and then you’ve already pulled like the top 20 in there, will your tool tell me what I should populate in the title and the bullets and the backend keywords? So that’s the fun part is when you already have a listing that’s selling and you wanna know what you’re doing right and what you’re doing wrong, so you would do that dive with 19 other best sellers and you.

41:52
No matter if you’re the 50th bestseller or you’re the 15th bestseller, you want to include your listing and what you’re going to be able to see very quickly is when you prior when you when you sort by search volume or you sort by relevancy, you’re going to see your ranks for all of those keywords and then you’ll start to see patterns in those keywords and so you’ll start to see an example that I use sometimes, which is super fun and obvious, is the garlic press. Everyone’s favorite, right?

42:21
It’s been used a million times. He started that. Yeah. So, uh, it’s so funny. Yeah. He’s the originator. Yep. To this day, Oxo and KitchenAid, $2 billion brands are terrible at Amazon, right? They sell a ton of units, but they’re not good. And so why, how can I dare say that they sell a ton of units? They’re very good, right? Well, the reality is

42:50
If you look at KitchenAid’s listing, you’ll see that they don’t ever write the term garlic mincer into their listing. And so I didn’t know before I did a dive on garlic press, I was like, it should be fun, everyone’s used garlic press, let me just use garlic press to see how it looks. garlic mincer is the second most searched way of finding a garlic press. They call it a garlic crusher, that’s the third best, right?

43:18
Now it’s not, it’s like four to one. It’s like garlic press is by far the best. And then if yours has a slicing feature, there’s garlic slice or two. So it goes down, there’s several roots. We call those root words different ways of calling this product, right? And so we like to find products with a lot of different root words because we have the advantage of being able to find them, right? Whereas most people don’t and they just guess. And so they just call it whatever that is. Whatever they call it is what they assume everyone else calls it.

43:48
If you look at their ranks, KitchenAid is ranked in the top five for almost every single keyword relating to garlic press. But they’re ranked between 25 and 45 for any garlic mincer keyword or any mincer keyword. And the reason is because Amazon’s algorithm is not quite sure if it’s relevant. They’re probably running PPC at garlic mincer and performing okay. They’re probably…

44:17
building up a lot of credit in the bank, but Amazon has them in this maybe zone of 25 to 45. That’s what I call the maybe zone. And if you look at their listing, what they say is crushes, menses and slices garlic or something like that. So a garlic mincer is very different than menses garlic. Very different use of the language, but similar.

44:45
And so that’s enough for Amazon to say, OK, maybe it’s a maybe it’s similar. Maybe it’s a type of product, but I’m not sure. So I can’t rank it in the top of page one because I have to be very sure with my relevancy score in order for Amazon to reward you and say you deserve to be one of the top performers. So those three there’s three garlic mincer keywords with a combined I don’t know, 30 or 40,000 search volume that if they simply rewrote their title, they have they don’t use their whole title either. It’s terrible. But if they just wrote garlic mincer into their title, they would immediately have an uptick of.

45:14
25 to 40 % in sales. Crazy, but that’s the type of incident like that’s the type of insight that we could see by looking at that that matrix because we color code it too. So yellow would be like areas of like low hanging fruit of areas of opportunity and then you know green is you know wide open like there’s something wrong. You’re not ranked at all. You’re not index like you gotta fix something. There’s something major going on. It’s a huge area of opportunity, but the yellow is.

45:43
You know, like you’re almost there and and so what I did is when I sorted by search for him, I saw yellow and I was garlic mincer keyword. It was maybe garlic mincer at the top and then I I saw another yellow and it was a mincer keyword and then I saw another yellow and it was a mincer keyword. But everything else they were ranked top five and I’m like they’re crushing this. You know, no no pun intended. They’re actually like, you know, really good at this niche minus that phrase. They just they didn’t hit it so.

46:13
I don’t know if anyone listening works for KitchenAid, but you guys could do a little bit better. Nice. So this analysis sounds like it takes forever without this tool. Without the tool. Because I’ve seen these spreadsheets that you’ve shown me, right? Yeah. If I were to populate those by hand. Hours. Yeah. Yeah. Yeah. Yeah. OK. The entire premise was like we do on one end, so we learn from doing ourselves.

46:40
Right? Jennifer and I like to equate our businesses, our three businesses to like a three legged table. You know, we got our brands where we learn and ourselves and we do. And then we have seller systems where we teach what we learn. And then we were lucky enough to have a partner that can automate what we teach into data dive into. And then our team gets to use data dive. So we have a beautiful flywheel where all the tables reliant on each other and.

47:08
It saves you hours per day per employee for sure. So in your method of picking products, Brandon, the number of reviews doesn’t matter. I don’t really care about them as much as the other factors. Okay. Lows people away. Like I think that people cringe when they see a bunch of your views. Yeah. But if everyone’s bad at Amazon, then I’m just going to beat them on SEO. I’m going to be ranked higher than them for more search volume and more keywords. So.

47:36
I will convert higher than them as a whole than they will. What’s interesting about the way you do things is it doesn’t take into account like social proof, right? Like if I see like a thousand reviews, I’m probably gonna buy that one. Or if it has Amazon’s choice, is that all factored in there too? No, not as much like for my decision making process. Yeah.

48:04
So we give a negative score if the top like six or eight of the top 10, you know, have have more than a thousand reviews, right? Because once you hit four digits, it’s much bigger than three digits. It’s psychologically. So. This is your exact line of questioning around how to to how to like figure out whether a product is good or not is why I created a scorecard to give a quantifiable score.

48:34
for a product based on all of these different factors. Because the biggest question that people were asking is exactly like you. They’d say like, all these things look good, but they have all these reviews, right? Like, that’s a bad thing. So how bad is bad and how good is good? And so what I did is I started to put together a scorecard with a quantifiable score between 50 and 250 positive, and between 50 and 250 negative. And like, if everyone has…

49:03
like the top six or eight people have 1000 reviews or more than it’s probably minus 100. That’s not a good thing, but it’s not a deal breaker. So it’s still a negative. So at the end of it, when you count the ROI, you count the, you know, the keywords, the profitability, the opportunity to differentiate the opportunity to add value through smaller packaging to reduce your costs with on fulfillment.

49:29
Like there’s a lot of things that you can maybe add value in that are positives. Once you add up all of those scores, plus or negative, then you’ll have a quantifiable number that will tell you is this product good or bad. And then people are like, well, got this product, got a score of 250, should I do it? And I said, okay, do 30 products and then you tell me if 250 is good enough. And what ends up happening is like the more you look at, the cream rises to the top, the better it’s just gonna get.

49:59
you’ll end up finding something that’s worth getting samples on at least and then maybe move forward with. So everyone listening out there, like go check out Brandon’s tool. Like every single Amazon tool that I’ve ever used, I always ignore that niche score. You know what I’m talking about, right Brandon? Yeah. It’s always completely bogus and yours is the first where the number is actually meaningful because the data, there’s data behind it and the data is visible.

50:28
It’s not just this like magic number that’s displayed in There’s no black box. You have to fill it out. We haven’t automated that part yet. There’s going to be certain things eventually that will start to check some of those boxes for you. But we’re really early. Most people listening don’t know. We launched out of beta less than a year ago. And we’ve got 2,000 paid users and growing. But we’re…

50:51
We have a team of 25 on the programmer side because we just want to keep adding tools and value and making it better every day. But yeah, it’s not automated yet and it’s not a black box tool. You’re going to have to fill it out. But you’ll get a quantifiable niche score. It’ll be a real score based on real information and you’ll be pretty confident when you fill it out whether you should do the product or not, I think. Exactly. That’s what I like about it because

51:18
The fact that it’s not a black box, and there’s always nuances, right, that you need to take into account, which is what real life is like when it comes to deciding what to sell. Brandon, where can people find more about your tool? So datadive.tools, that’s the homepage. You have a Chrome extension, and I’m proud. I waited to get on a call with you, with your good friend. We just had a partnership with Jungle Scout. Nice. With Greg.

51:48
Now you don’t need any other subscription to power it so you can just download it and start using it and I believe you have a Discount code for your listeners as well. Okay. Do you remember what it was? What do you always what is your code usually? Let’s just make it my wife quit my wife, but I’ll have to alright I’ll go back and make sure that that’s in there, but my wife quit would get you $50 off per month so

52:14
Immediately you can start using the tool. There’s some instructional videos. There’s a free master class to look at how we do the product validation on seller-systems.com. Watch that three hour master class. It’s free. It’ll walk you through the data. It’ll walk you through the product validation and how we find and how we validate products and then how the tool works. And if you guys, I have a lot of people in my class who always ask me, hey, should I sell this product? Should I sell this product?

52:43
I usually go in and I don’t have like a super quantifiable method. Like I have like the eyeball test. I look at all the competitors and you know their images. But what would be really nice is to just give a number to it. Yeah, getting a number to it and then pulling all of even, even to use your eyeball test, like to pull all the images into one sheet like we do with deep dive. Yeah. Makes it so much easier just to say, okay, this is a very sophisticated niche.

53:11
These guys are all doing really great content. And then if you go back to the master keyword list and you see most of them are ranked really well for lot of the percentage of search volume, like right there, you’re kind of like, this is a super competitive, higher risk product. Maybe you should move in another direction or spend another week or two finding another 30 or 50 potential products and choose one of the better ones. Cool. Well, hey, Brandon, thanks a lot for this talk today. I hope it didn’t go over anyone’s head and

53:40
It’s pretty straightforward when you think about it, right? There’s all these parameters, all these keywords, and you just gotta put them in the right order and figure out what the low hanging fruit is and whether you even have a chance. And there’s a number that basically gives you peace of mind whether you should consider going through with it or not. Thanks for having me, Steve. It was awesome.

54:03
Hope you enjoy that episode. Now Brandon is really a wealth of knowledge when it comes to Amazon and you should check out his content. For more information, go to mywifequitterjob.com slash episode 465. And once again, I want to thank Sellerboard, which is the Amazon profit software that I recommend for Amazon sellers. By going to mywifequitterjob.com slash Sellerboard, you can get 30 days for free. Once again, that’s mywifequitterjob.com slash S-E-L-L-E-R-B-O-A-R-D.

54:30
I also want to thank 180Marketing.com for sponsoring this episode. 180Marketing is the agency that I use to grow my search traffic by 4x in just six months. For more information, email jeff at 180Marketing.com. Now I talk about how I use these tools on my blog, 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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464: Dead Simple Business Ideas That Anyone Can Start With No Money – Family First Friday

464: Dead Simple Business Ideas That Anyone Can Start With No Money - Family First Friday

Welcome to Family First Fridays, which is a new segment of the show in honor of my book, The Family First Entrepreneur.

It’s official! I’m a Wall Street Journal bestselling author! The first half of my book discusses how to find your next side hustle. So in this episode, I’m giving you 10 dead simple side hustle ideas that you can start from home right now with no money.

What You’ll Learn

  • 10 dead simple ideas to start a business
  • Why there is opportunity everywhere
  • Why you don’t need much money to start

Other Resources And Books

Transcript

00:00
You’re listening to the My Wife Could Her Job podcast, where I teach you how to start a business or side hustle from the perspective of a father with two kids. And welcome to a new segment of the show, which I’m calling Family First Fridays in honor of my book, The Family First Entrepreneur. And I want to start this episode by saying that I’m officially a Wall Street Journal bestselling author. It feels great. And what was magical about this entire experience was that I found out that my book hit the bestseller list during the closing keynote of my conference, The Seller Summit.

00:29
which allowed me to announce it on stage in front of everyone at the event. It was an amazing moment that I will never forget. In addition, my partner Tony got everyone to sign a copy of my book, which is a gift that I will treasure forever. Now, some of you might find this story funny. When I told my mom that I hit the best seller list, she didn’t say congrats. She didn’t say good job. The first question that came out of that woman’s mouth was, what number did you hit? And then I had to tell her that I hit number seven.

00:59
And at that point, it was a little anti-climatic. But she did finally say good job, though in the back of my mind, she was probably wondering why I didn’t hit number one. Anyway, the first half of The Family First Entrepreneur is about finding your next side hustle. And one of my biggest pet peeves is when someone comes up to me and says, hey Steve, I can’t think of anything to sell to make money. Or Steve, I don’t have any money to start a business. Or Steve, everything’s already saturated out there. So in this episode today,

01:27
I’m going to whip off some online business ideas that anyone can start this year without any money at all. And these are all businesses that you can start from the comfort of your own home with little or no upfront investment. You just got to be willing to put in the work and good things will happen. Now the first online business idea is actually a problem that I experience every day, finding good podcast guests. So why not start an online podcast matchmaking service? Now, according to podcast report,

01:55
the number of podcast listeners reached 464 million this year with over 5 million podcasts total. And many of these shows, including my own podcast here, are constantly on the lookout for new guests. In addition, there are many people out there who have written books or want to develop an online presence who are itching to be featured on podcasts as well. And all you’d have to do is collect a list of podcasts and ask them if they need someone to help them find guests for free.

02:23
And then once you have a portfolio of podcasts, you can then pitch authors, researchers, anyone, and have them pay you to get them on podcasts. And in reality, you don’t even need the permission from the podcast host. Just gather a list of podcasts and find shows for your clients. It’s a very straightforward business model that only requires people skills. And one of my friends, Jessica Rhodes, started a similar business over at Interview Connections and grew it to six figures within a year.

02:52
Now the next online business idea that you can start for free is a digital course business. Now just in case you guys aren’t aware, did you know that you can teach people something cool and make money at the same time? Well you can. By creating an online class about something you know really well, you can share your knowledge with people all over the world. Plus, you can become your own boss. Now a lot of people want to learn new things, and the money they spend on online classes is growing every single year.

03:19
In fact, the e-learning market is expected to surpass $375 billion by 2026. If you make your own class, you can help others learn and save for your future at the same time. Now you might not think that you’re qualified to teach an online course, but the key thing to realize is that you just have to be expert enough. As long as you know more than the person you are teaching, that is good enough. For example, I teach an online class on e-commerce, which has over 5,000 members and has made me almost $10 million.

03:49
Would I consider myself the foremost expert on e-commerce? Not really. In fact, what I teach is only good until a store hits about 10 million in revenue. Any store that makes more than that is unlikely to benefit as much from my class. But the vast majority of my clients would be happy to make a million or even 100K. And there many online course platforms out there that will host your online course for free, like Teachable. In fact, there are a ton of course platforms out there that will handle all of the heavy lifting for you.

04:19
and all you got to do is provide the content. And the best place to find clients is by looking in local Facebook groups. For example, I teach e-commerce, so you’ll sometimes find me hanging out in e-commerce Facebook groups, answering questions, and developing myself as an authority. It just takes some time, and once again, it’s all about people skills. Now, this next online business idea is e-commerce. And the beauty of e-commerce is that it doesn’t necessarily have to cost you any money to start. Now, earlier on in a prior episode,

04:49
I outlined 12 e-commerce platforms that allow you to sell your products for free. So there’s no excuse really not to get started. Now the number one question that most people have is where and how to source your products for sale. And if you have no money, then you can start with drop shipping. Drop shipping is where you take orders, but your supplier is responsible for storing and shipping the order to the end customer. And if you are interested in this business model, then there’s a bunch of videos on my YouTube channel that will teach you exactly how to get started.

05:16
and how to find the best dropshipping suppliers. Now I’m going to be upfront and tell you that dropshipping probably won’t make you life-changing money because the margins are low, but it’ll be a nice stepping stone towards a more lucrative online business. All you got to do is start out dropshipping, find out what sells, and then private label your winners to keep more of the profit. You can also start a print-on-demand store. A print-on-demand business is where you create your own designs that can be printed on t-shirts, mugs, hoodies, you name it. You create the design,

05:46
sell the merchandise, and the print-on-demand company prints and fulfills your order. And the best part is that you don’t even need to be an artist these days. With AI programs like Mid Journey and Dali, you can have a computer create the design for you based on your inputs. Now, this next business model is something that I just thought of from my last trip to Japan. And while I was there, there were all these cool foods that could not be found in the United States. And now that I’m back, I actually really miss some of the cool snacks that I ate over there. So here’s an idea.

06:16
Why not start a subscription box service that ships curated snacks from all over the world? And the best part is that you can expense all of your vacations and save on taxes at the same time. Also, once someone signs up for a box, they become a consistent paying customer. There are many services out there that can help you create and sell your own subscription box. For example, CreateJoy is a marketplace for subscription box entrepreneurs, and they’ll help you spread the word about your business. Another dead simple online business model,

06:44
is to create specialized content for e-commerce companies. Now have you ever seen ads online where a person is using a product and just gushing about it in a testimonial video? Well, I hate to burst your bubble here, but most of these people in those ads are hired content creators that are paid to create these testimonials. In fact, many video testimonials that you see online, especially in ads, are fake. Think about it this way. What are the chances of finding someone good-looking and eloquent on camera?

07:12
who happens to purchase a product and makes a professional video about it? Very unlikely. If you were good on camera, there are literally tens of thousands of companies looking for people to create testimonial-like content for their products. And the best part is that you don’t even need an audience. All you gotta do is film yourself pitching the product, and that’s it. This video does not go on your own channel. It goes on the company’s ads and social media. I actually have one friend who makes a living making these videos for skincare companies.

07:41
Now this next online business model is dead simple to start, especially if you love shopping on Amazon. Now did you know that you can make money by creating videos reviewing the products that you find on Amazon? Here’s how it works. All you gotta do is buy a product that you would normally buy on Amazon. Then you take your phone and film a video review of that product you just bought and upload it to Amazon. If anyone watches your video review and buys that product, you get a cut of the sale. Now the cut is pretty small.

08:09
and around 4%, but you get that cut off of the customer’s entire shopping cart at the time of checkout. Now, in order to start this business model, you must first apply to the Amazon Influencer program. Then, once you’re accepted, you can go shopping. And the key is to find popular products that do not have many video reviews at all. That way, if you create a video review, there’s a high probability that your video will be displayed in the Amazon product listing itself. And if you can get your review on there, you’ll start making money on autopilot

08:37
because Amazon gets millions of visitors per day. By the way, I actually filmed a YouTube video about this, and if you just do a search on my channel, you’ll find it. The next online business model I’m gonna talk about is great if you have people skills. Now, if you are skilled in a particular area, then you can provide personalized coaching and mentorship in many fields like personal finance and entrepreneurship. This past year, my daughter just entered high school, and since I’m Asian, it’s very important that she go to a good college.

09:05
But most kids don’t get into the best colleges by accident. It takes planning. As a result, we’re looking to hire a college admissions coach to help advise us through the process. And there’s literally a personal coach that you can hire for practically anything that you can think of. The other day, my buddy destroyed me in Super Mario Kart and talked so much trash that I looked up Mario Kart coaches and I actually found a coach online. I don’t know if I’m gonna hire this guy, but you get the point. There’s a coach for anything. So I’ll repeat this again.

09:35
If you are skilled in a particular subject, then offer to provide personalized coaching. List your skills on places like Fiverr, Upwork, or even Craigslist, and I can almost guarantee you that you’ll find some clients. The more obscure the skill, the better. Now this next online business model is one that I recently played around with, and it has to do with selling activity books online. Those of you with kids probably know that it can sometimes be difficult to keep your kids occupied if you want to have a nice quiet dinner at a restaurant. And what we used to do,

10:04
When my kids were younger, was bringing activity books everywhere we went. Trust me, there’s a huge market for these types of books and various niches. And the best part is that you can literally create these types of books in about an hour with software like BookBolt. BookBolt has built-in templates that automatically build you word scrambles, word finds, crossword puzzles, sudoku, you name it. And then you create an attractive cover, find an underserved niche, and then list your activity books on Amazon KDP. For example,

10:33
I was looking for a Chinese New Year activity book several months ago and discovered that these types of books sell super well on Amazon. And the best part is that you don’t even need to be artistic. If you want to create a coloring book, for example, you can simply have mid journey or your favorite AI drawing tool, create coloring book images on the fly. Now this next online business idea is one that I accidentally stumbled upon three years ago. The year was 2020. And you all know that I run an annual e-commerce conference called the Seller Summit. Anyway, because of COVID,

11:02
I had to cancel the live event and move everything over to a virtual event in the span of just three short weeks. And it was extremely stressful to say the least because I knew nothing about throwing virtual events. I knew nothing about the software, nada. Now, if there only was a virtual event planning agency available at that time, I would have hired them. And these days running virtual events is in very high demand and you can easily create a business that helps organize these conferences. Everything from the planning,

11:31
the arrangement of the speakers, the email sequences can be taken care of by your company. Now this next business model is a no brainer and extremely easy to do and can make you up to six figures just for being able to speak English. All you got to do is tutor foreigners in English. And the reason this idea came to me, and this has been around for a long time, is because one of my friends’ ended up making over 100K by tutoring Chinese kids in English over Zoom. Before video conferencing, you had to be physically present to do this?

12:01
but not anymore. In fact, language tutoring online has become the norm. Now this method of teaching goes way beyond language tutoring as well. I have friends who are taking virtual piano lessons, virtual singing lessons, you name it. I even gave my tennis coach the idea of providing virtual tennis lessons for $99 a month over at tpatennis.com. And today he makes thousands of dollars every single month without having to set foot on a tennis court.

12:28
Now in this day and age, there are no geographical boundaries for practically anything, and you can reach billions of people all over the world with your skills. There is literally no excuse for not starting an online side hustle today. So I hope you enjoyed this episode, and if you ever see me live at a conference or something, never tell me that you can’t think of a business idea. Never tell me that you need a lot of money to start a business. And if you use some of these ideas here, I’m sure if you sat down and just brainstormed for a little bit,

12:57
you can come up with a bunch of ideas on your own.

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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!

463: Crazy Rich Poets! How Will Green Gets 3M Visits/Month On His Poetry Analysis Website

463: Crazy Rich Poets!  How Will Green Gets 3M Visits/Month On His Poetry Analysis Website

Today, I’m thrilled to have William Green on the show. William is a member of my mastermind group and he is killing it online with an unusual website called Poem Analysis, a site that analyzes poetry.

He gets over 3 million visits per month and makes hundreds of thousands of dollars every year from poetry!

In this episode, we break down how he does it!

What You’ll Learn

  • How Will started Poemanalysis.com
  • Best way to monetize your traffic
  • How to grow your website’s traffic exponentially

Other Resources And Books

Sponsors

Sellerboard – Sellerboard is a must have tool for Amazon sellers if you want to know how much profit you are actually making. Click here and try Sellerboard for FREE.

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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 the strategies they use to grow their businesses. today I have my friend Will Green on the show, and Will is the owner of poemanalysis.com, where he gets millions of visitors per month and makes nearly seven figures analyzing poems for a living. Will’s story just goes to show that you can literally monetize any subject online as long as you follow through. In this episode, we analyze exactly how he does it.

00:28
But before we begin, want to thank Jeff Oxford of 180marketing.com for sponsoring this episode. 180marketing.com is an agency that specializes in helping e-commerce stores boost their search engine traffic. In the past, I’ve used Jeff and his firm and he managed to grow my search traffic by 4x in just six months. In fact, 180marketing is one of a handful of SEO agencies that I trust 100%. For more information, go to 180marketing.com or just email Jeff at 180marketing.com.

00:58
I also want to thank Sellerboard for sponsoring this episode. Sellerboard is profit analysis software that helps you figure out exactly how much profit you are making selling on Amazon. Now, if you’re already selling on Amazon, you are probably aware that there are many hidden fees in selling on the platform, and Sellerboard organizes all that information for you in a clear and concise fashion. Personally, I recommend Sellerboard because they are among the least expensive software that I know of that does this, which is one of the main reasons why I like them.

01:25
For more information, go to mywifequitterjob.com slash seller board and try them for free for 30 days. It’s a no brainer. Once again, that’s mywifequitterjob.com slash seller board. And then finally, I wanted to mention my other podcast that I run with my partner Tony. And unlike this one, where I interview successful entrepreneurs in e-commerce, the Profitable Audience podcast covers all things related to content creation and building an audience. No topic is off the table and we tell it like how it is in a raw and entertaining way. So be sure to check out.

01:53
the profitable audience podcast on your favorite podcast app. Now onto the show.

02:04
Welcome to the My Wife, Cooler Job podcast. Today I’m really happy to have William Green on the show. William is a member of a mastermind group that I’m in and he is killing it online. William runs poemanalysis.com, which is a site that analyzes poetry. Poetry, but get this, he gets over three million visits per month and makes hundreds of thousands of dollars every year from poetry. So for everyone out there who is skeptical,

02:32
about creating content for something that they’re interested in. William is the perfect example of someone who has managed to monetize his interests. Now, in this episode, we’re gonna break down how William has managed to create such a popular poetry site and how he monetizes the traffic. And with that, welcome to the show, William. How you doing? I’m very good, thank you. How’s it going? Good. I hope I got those numbers right. I knew they were kind of insane, but I guess millions of visits.

02:59
Right, per month. Yeah, it’s the right ballpark figure. As you can imagine, there’s a lot of fluctuations throughout the year, depending on when students are in school and out of school, but on average, yeah, that’s where we’re currently at anyway. Yeah, crazy. And I know we’re in the same mastermind group, but I actually don’t know anything about your background. Like, how did you get into this? What did you used to do? What did you major in? Yeah, this is a really interesting story. So…

03:26
I actually came up with the idea when I was at school when I was about 15 or 16 and I created a website where I uploaded all my revision material for school subjects and after about three or four years it turned out that the articles that did the best were always the poetry analysis followed by certain other subjects as well. So that was kind of the light bulb idea of oh I should really give this a go you know ten years ago.

03:51
But my whole life has been engineering. I did a master’s degree in automotive engineering with motorsport. After that, I went on to work for McLaren, helping to test our supercars, believe it Wow, that’s awesome. Yeah, it’s quite weird. then COVID hit. I left McLaren, went to another consultancy. COVID hit. Things got a bit shaky in the kind of engineering, automotive sector. And I had this kind of opportunity to be like, should I grind it out?

04:21
for continuing this career in engineering or should I give it a go with the website? And I remember I did a talk once in London for Ezoic, PopTelegen as it was, and a guy came up to me from Google and said, you’re clavish, no, stupidest, clavish person I know. Why are you working 40, 50 hours from McLaren when you could be sitting on this gold mine of an idea? And it kept on playing around this idea. And, you know, during COVID, I gave it a go and it’s kind of been growing ever since.

04:50
So yeah. That’s not so who told you this? Because if someone went up to me and said, hey, I want to create this poetry site, I wouldn’t have thought that it would be a gold mine, to be honest with you. I mean, at the time I was on a panel with two other people and at the end of this questions, I was obviously quite young compared to other people who were like in their mid 30s or 40s. And people said, oh, what traffic do you get? And this one person said, yeah, I get about

05:16
half a million and I’ve got about 20 people working for me and they’re like, oh, okay, that’s interesting. And the next lady said, yes, I’ve got about 800,000 and I’ve got about 15 people working for me. And I said, actually, I’ve had to take the day off my full-time job. I’ve been doing this by myself with one or two other people when I get about 1.5 million and everyone’s kind of just just dropped. And at that point, that’s when I realized, okay, maybe I haven’t been taking this seriously. I should really put more time into it almost, you know? So you’re an engineer, you were an engineer.

05:45
Were you in, like was poetry one of your passions or? It was all stemmed from learning from school. So I have an appreciation for it. I definitely have this growing want for poetry, but I wouldn’t say I am super involved with it, but my writers and my team are. So that’s where I can almost differentiate and let them create the great content. And I do everything else regarding the website. So it kind of is a bit split in that sense. But in the very beginning,

06:13
Were you doing your own poem analyses? Yeah. Yeah. So I was, I did all the poetry analysis, got great feedback. I actually quite enjoyed it as well. But as you can imagine, upscaling is quite difficult. So now the website has about 4,300 poems. So if I obviously wrote all that content, I would be there forever. So that was kind of where I diverged and went towards the kind of technical SEO side of the website. Walk me through the beginning. So you’re working at McLaren, presumably 40 to 60 hours. I don’t know. That’s what an engineer typically works.

06:44
And so you get home and you start writing these poetry analysis. When did you, like how long did it take before you saw any traction? That’s a really good question. So I started the website before McLaren. So I actually started it halfway through my degree. I had this kind of honestly, a light bulb idea. I’ve never experienced it, but this was like a light bulb idea. then basically every part-time job would help me pay for people to help me write and grow the website.

07:14
When it came to McLaren, yeah, was obviously it’s easier when you’re doing a degree. Well, it’s not easier still full-time job a degree But it was easier to make time to do the work But when I was at McLaren, I’ll be getting home at about six o’clock half six and then Sticking another couple of hours every night to it pretty much, but it wasn’t a chore It was enjoyable work. So I wouldn’t think of it as work in that sense and then Presumably it wasn’t making money for a while. Were you hiring writers before it was making any money?

07:44
Yes, and I think that’s always been the case with all of my websites. I think most websites. I would say it took about a year and a half, two years before it became break even. And then it kind of just kept on growing. But the real growth came when I was able to put full all of my time to the website rather than just two hours here, two hours there per day or week. That really surprised me with exactly what that Google guy says.

08:14
Yes, you can grow a website part-time, but if you stick all your time to it, blimey, it just rockets because you can put more time to the things you always want. I’ve got about 20 different ideas I want to do the website and I still can’t do it full-time. So you just keep bringing up new great ideas all the time as you put more time into it, if that makes sense. So walk me through this because I know if I was like a new entrepreneur and I’m starting a content set about poetry, I’d be…

08:43
pretty reluctant to hire writers. Did you know that this was going to make money at some point? Were you confident in the beginning? Yes. I think I saw enough with this revision website that this was worth pursuing. And then I believe with websites you get nuggets of feedback, which you should take note of in particular of this article is done well or this poet’s done well or this or whatever it is with a website. There is data that’s giving you feedback all the time.

09:13
and the feedback was always positive and every time I changed and improved it, the feedback would almost be exponentially positive. at the same time, just for the record, I had about three four other websites I was trying at the same time and all of them failed and each one of them brought brilliant lessons I learned to poem analysis. I have this theory that I want to fail almost more than I succeed because that allows me to realize where I’ve gone wrong.

09:41
and how to better myself. Whereas if I just keep growing, you can’t say if you’re, what you’re doing is really, really good or really good, if that makes sense. And I want to really know when I’m doing things wrong and when I’m doing things right and to what extent they’re right isn’t as important for me just as long as it’s right or wrong. Does that make sense? Yeah. Were those other sites that failed, they content sites also? Yes, in different niches and each of them has very obvious reasons.

10:10
for their failures, sometimes not obvious actually, but all of them life lessons have been kind of ingrained into my head and helped me to kind of build up the website portfolio I have now to where it currently is. Before we move on to like how you grew poem analysis, I’m curious what those failures were and what were the obvious reasons why those other ones failed? Okay, okay. I had a website about Twitter tips about optimizing Twitter.

10:40
And I just wasn’t an expert in it, I believe at the time. I was wanting to learn about it. I wasn’t an expert. So the content wasn’t very good. I had a few tweets that was articles that would go viral, but it wasn’t very good. Another one was about educating financial tips such as like it was in this style of Tinder. So you swipe right. If the tip was good, swipe left. If it’s not good. And then my website would showcase the better tips to people on the homepage. But the issue of that was the

11:09
word count for each of these tips was like 200 words. So it was very difficult to index and get traffic from Google. It wasn’t exactly super valuable content. was just a great user experience, but not good for SEO traffic. And then there was one about a tech website to do with the iPad, because I was a massive fan of the iPad when it came out. And again, I was probably copying too much content, not really understanding what I was trying to do in that website. And the last one was a website to do with Steam engines, believe it or not, which

11:39
is something I’m keen on actually, despite sheer coincidence. I have a book on Steam engines as well and but what I found was that was the first time I had people really giving me feedback in the comments and contact forms about the website, about how I was writing the content, how it could be better. So almost before Google told people categorically this is how you should write the content, I was almost getting that feedback from these real interested readers about Steam engines. So that was

12:08
what I kind of bought into prime analysis as well. Interesting. Okay, so it sounds like one, you learn that you shouldn’t write about stuff that you don’t know that much about. And two, SEO matters in your case. And then three, if you’re getting a lot of feedback from actual readers, that’s a good sign that you’re onto something. Yes, I would go down the route of if you can’t write about it as an expert, get someone else to, and it’s fine to outsource it to someone else.

12:38
And I think, yeah, what you said is pretty much bang on, I’d say. The only thing I would say is each one of these had very obvious reasons for failing and I should have noticed it sooner maybe. But yeah, the feedback is okay even now. I get quite a lot of comments on the website per day and I almost sift for the negative comments because they’re the ones that are really people that are passionate, that really almost…

13:07
unknowingly want to help me by showing me where I’m going wrong. even to this day, that’s a real key kind of feedback loop I use to kind of grow the website and help deliver the best user experience. What’s funny is I feel like blog commenting is pretty dead. Where are these people leaving their comments? Not if they’ve got questions. It depends on the context. So with poem analysis, a lot people have questions about the poetry that might not be answered in the analysis.

13:36
and they sometimes are very specific questions, sometimes not and you do find the more niche you go, the more niche questions you get and sometimes they’re quite beneficial to include as FAQ scheme or something so it’s almost like that feedback loop of they’re gonna ask me a question, okay I’ll answer it but I’ll answer it as an FAQ that’s something I do with a lot of the websites as it starts to get more traffic but it has to, I’d say you have to, it doesn’t always work some of my websites don’t have commenting enabled but the ones that do

14:06
tend to give really good feedback. Okay. All right. So if someone, so I teach a class on like building an audience and if someone came up to me and said, Hey, I want to do a set on poetry. I would probably say, okay, uh, you can probably get traffic and build an audience, but how the heck would you monetize that? And I’d ask them to think about that. So William, how do you monetize this site? That’s a really good question. Uh, I do it currently a hundred percent ad revenue.

14:36
So my objectives is as much traffic as possible, as much ad revenue. But recently I started to realize ad revenue is probably the worst way of monetizing a website. So this is where I’m starting to look into products, services and other ventures, which weirdly enough is what all my competitors are doing. So I’m not really sure why I haven’t taken note of it, but that’s kind of the area I’m going into now anyway. So can you give the listeners an idea of

15:05
Like how much ads pay out on like a poetry site? Not very high. So it depends on the ad network you’re with. So I was with Ezoic for a long time and they sometimes didn’t provide the best RPMs or EPMVs, what they call it, earnings per million thousand visitors. So with them and the price of their premium services… Can you give us a bit of a part like, what was Ezoic paying at the time and then the different ad networks that you’ve used and how the payouts had increased?

15:36
Izoic during COVID was terrible. was actually net negative for one or two days, but I would say about $7 RPM is a ballpark figure. For AdFribe, since I’ve been with them, you’re looking at around 12 to 15, I’d say. Okay. So just for the audience, that’s 12 to $15 per thousand impressions, right? Yes. Okay. And…

16:05
I don’t actually have ads on my site because I want people to sign up for my email list and whatnot, but how do you balance not turning your poetry site into just one big ad page? What are your limits? Where do you place your ads? What’s the optimal placement? So back when I was with Azote, they was doing quite a lot. I then went to ad fry, but it wasn’t as much. from my general consensus and from working with the companies,

16:34
It’s difficult to do too little because it’s always if you add 5 % more adverts, you might get 5 % more revenue. So right now, I’m probably at a point where I’ve got too many adverts on the website, which is also a good incentive for people to buy an ad for experience. But typically, I’d go with the Google guidelines. So in content, you’d probably aim for about 20 to 25 % coverage.

17:00
You don’t really want any adverts above the folds, so it kind of pushes the content down. And maybe one or two sticky adverts being at the bottom of the website or in the sidebar. But that’s quite intrusive. I admit that. It’s not perfect kind of monetization strategy. It’s kind of a concession. And that’s kind of why products and services is probably a better way to go. Because the third example, I guarantee and know that if I turn off the adverts for one week,

17:26
my traffic would just shoot because it’s a better use experience, but then I’m also not making money. So there’s a kind of strenuous effect of better use experience, but also monetizing the traffic as best as possible. Cause I know like if I click on something and sometimes I end up clicking on, you know, some of those articles, uh, like at the bottom of websites where it takes into, it’s obviously like an ad driven site.

17:52
because there’s ads everywhere and then it shifts the page up and down and everything, so you accidentally click on the ad. I know that when I land on one of those, it actually diminishes the quality of that site in my mind. And I’m just curious how you balance all that. I actually, I went on your site, it didn’t seem that intrusive until you scrolled down a little bit and sometimes there’s like a big ad and sometimes there’s like these little mini video ads, I don’t know if they’re gifs or videos. And you mentioned that

18:20
If you took those off, you would see traffic shoot through the roof. I’m just curious, is your goal 100 % right now to get as many impressions or is email part of your strategy? What is the thought process? Since I’ve done websites, there’s always been traffic. And I think that’s the way most publishers go. They go, I get more traffic, I get more ad revenue. It’s a one-to-one relation, but…

18:48
When you get to a certain level, and I can’t say for what industries you should get to in terms of impressions per month, but when you get to a certain level, I think the objective should move massively away from ad revenue and traffic, and which will also help with any drops in traffic, be it SEO or seasonality, and then move towards monetization with other methods. And I think that’s the best way to go about this type of industry, maybe because ultimately it’s difficult. I think it’s…

19:17
having a product and service is a real good niche and a great thing to have, but it also takes a lot of time. So getting enough traffic is what I tend to do with my website. And now I’m starting to think, okay, once I’ve got to that level, can I better monetize the traffic? So it’s not actually dropping, but it’s actually improving the website even further. So do you think that advertising has harmed your rankings in Google? Yes, I think it definitely has. There’s a lot of factors that will negatively

19:46
Influence a web user and how they browse a article bounce rates I get a lot of feedback for people with the adverse and they hate the adverts as well, which I completely agree with a Lot of the competitors. I even see some maybe testing of some people Removing adverts on some web pages and see some it’s seen it shoot up as well It makes sense. It’s not kind of rocket science if you’ve got someone come to a

20:13
webpage to read content and they’re getting on farther with adverts in between the content, it’s not going to improve, make them want to stay on the website, it’s not going to help the core web vitals as well, you know, it’s still not helping the SEO impact of the website.

20:31
My first book, The Family First Entrepreneur, just debuted as a Wall Street Journal business bestseller. And not only that, but my book was also featured on a billboard in Times Square during the launch. I am literally in awe right now. I’ve also enjoyed all the incredible reviews of my book that have been coming in from readers all over the world. Now if you’ve not picked up a copy yet, there’s no better day than today. It’s available at Amazon, Barnes & Noble, and anywhere books are sold. Now if you’re curious about what The Family First Entrepreneur is all about,

20:59
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21:27
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21:53
invitations to book parties that I’ll be throwing all over the country and special offers. Once again, that’s mywifequitterjob.com slash book. Now back to the show.

22:04
And,

22:34
You have all these ads, the user experience isn’t that great, yet you’re still getting millions of hits every month. Clearly you’re doing something right. Can we just- I will- one of the reasons that it’s doing well is because a lot of websites that offer educational content for especially students in schools offer it behind a paywall and I’m ethically against that. I don’t think you should have to pay to get education. So even with the ads, it’s better than paying for the content and-

23:02
That will always be the case, I believe. I’ve seen a lot of my competitors that even didn’t have a paywall, never went to a paywall, and their conversion rate improved greatly for whatever service they were offering in terms of paying to see the content, to the point that they could almost lose 80 % of their traffic and still be making more money from these memberships and premium services. But with a paywall, the SEO tanks as well, completely. Their website just crashes, and it’s still crashing for a few competitors, unfortunately.

23:32
So yeah, I think they’re of niche USP that I have with my content on all my websites that I don’t offer a limited experience. I offer the full experience, not as nice UX as it would be if it was ad free. Interesting. So with that philosophy then, that precludes you from selling products, right? Info products? It makes it more difficult, but then what I would be looking at is

24:01
not just given them the content, but in a better format that they can understand better. then extras on top of that, because a lot of websites, they offer something for free and then cut back almost a bit like Twitter. Twitter, believe it was a free service and now they’re making you pay. Paying for something that was previously free is never going to go down well. So whatever I choose to do in terms of products or service needs to kind of add to the free experience, not subtract from it. Got it. Okay. I understand. I understand. Yeah. So you just…

24:31
You’re going to keep the free stuff the way it is, but then you’ll add value and charge for that. Okay. Makes sense. Yeah. You’re just, you’re not against like just charging for education period. So you mentioned something key there. You said that a lot of your competitors have it behind a paywall. Has that allowed you to track a lot of links from like.edu organizations? I do get a lot of links from.edu. It’s a massive benefit.

24:59
It does seem like it does follow in terms of the backlink juice as well, even though sometimes they’re behind closed doors. But yeah, I’ve noticed a few times where links have popped up on the website and there’s a increase in domain authority in AHRES or Moz or have you within a few days. So it’s not ideal, but having it behind walls, but I do still see benefits from them links as well.

25:27
Can you just walk me through your process? Like you’re going to do a poem. Like how do you get so much traffic off of one of these? Like what’s your process for research? Presumably there’s careful consideration before you write any piece of content, right? Yeah. So some of this is poetry specific. I think some of it can be, you know, be used throughout different niches and categories for websites. I would typically do

25:56
And SEMrush keyword research, AHRF as well. I use both because they are slightly dissimilar in how they show the results. Use keywords such as poem, poetry, blah, blah, that type of thing and see what’s ranking well for that. Look at competitors, see what their top posts are and see what is working for them and basically do the same but make it better. So it’s not just copying or the same content but it’s actually improving the content for that keyword.

26:23
There’s a lot of listicles on best poems, books on poetry, there’s educational syllabuses on poetry which is going be great for students. So there’s a lot of resources where I can get lists of what poems people care about because especially with educational syllabuses, excuse me, you tend to find that the SEM rushes and AH refs don’t really showcase what’s popular because it’s going to be popular for the coming year for the educational syllabus. So that’s where you have to more rely on.

26:53
research offline books and or even Google trace to some extent as well. So they’re kind of the main core ways of doing research and just by doing that you get hundreds of ideas even thousands. So that kind of has kept me quite busy with my team.

27:12
Interesting. So does that mean you have people on the ground at schools to know what the upcoming curriculum is?

27:20
No, so a lot of the examining boards in different countries, mostly US, UK and India have everything online as PDFs so that teachers can take it away and learn how to best approach the new syllabus. So we would basically have a list of these all of the different examining bodies in the US, in the States, in the UK, in India, whatsoever countries we want to target and then go to town and basically add them where we can. And the great thing with these type of

27:49
target team which is something I would recommend people do is you create your content for each of the poems or each of the mini topics but then you then create it into a listicle so people can see the complete educational syllabus in an article and they’re the articles that tend to get really good backlinks from kind of educational websites and stuff so that’s what I would tend to do I would make these separate poetry articles or my team words and then we’ve congregated into these articles that are specifically aiming at certain

28:16
demographic of people, students that are wanting to study this specific examination so that when they go, ah, I’ve got a full list here, I can send it to my teacher, send it to my school, send it to a forum, and then that’s where the backlist can kind of be generated as well.

28:31
Give me an example. So for example, in the UK, we have a Xanon ball called AQA. They have, think, can’t say off the top of my head, about 20 poems in a anthology called A Power and Conflict. And each of these poems needs to be analyzed. So I would get my team to say, OK, these are the 20 poems that need to be analyzed. Go ahead. Let’s analyze them individually as one article per poem.

28:57
And then we then make another article that says, this is the list of the AQA poems that you need to analyze for these years. And it’s that article because you’re in a title, you’ve got the examiner body, the year that it’s been analyzed, and other examinational kind of keywords that ranks really high for students trying to analyze them. And then that’s where them links then get sent around to different .edu websites.

29:24
Interesting. So you’re putting together essentially like a curriculum and then you’re sending them out to the EDU sites as like study guides. Is that accurate? I would say reference guides of here’s the poem that you need to analyze with links to them. That’s why I would put it. Yeah. And then earlier, this is just for my own curiosity. You said you use SCMrush and Ahrefs.

29:51
Just curious what your take is on the difference between those tools. Because I couldn’t really find a big difference that would warrant me signing up for both. Yeah, so AHRFs I find is really good for… Well, the first thing is I tend to look at them on a daily basis to see what percentage increase or decreases my competitors and myself have had in terms of SEM rush. But AHRFs has something similar. So if I see SEM rush has a 10 % drop in their predicted organic…

30:19
traffic, I’d want to double check that against Ahrefs and if that says a 10 % drop, I would then start to worry but sometimes you’ll find one goes 10 % down, one goes 5 % up, so it’s like okay, that’s their own tools and algorithms that is making them changes. I find with Ahrefs, I prefer the keyword research and I think with SEMrush, it’s good for the site audits but it’s very good also for certain keyword researches where they

30:48
Introduced something that I tested with them called user intent was so it’ll tell you is it a commercial intent? Is it a brand intent? Is it? informational intent and then understanding the intent behind the keywords is something that I find is quite useful So I tend to use ah refs if I really want to go hard with a keyword on then use SEM rush But the other thing with SEM rush, which is a bit of a USP is click potential It’s something that I think they’re starting to roll out and I did a bit of recent testing with them on

31:15
where it will tell you for certain keywords what percentage click potential will you get for that keyword. For example, if I say how old is Barack Obama, it’s a zero click search term because you’ll see his whatever age he is. But if there’s one that says, what are the themes and the structural form of this poem, people are more likely to click onto the first result and not see a rich snippet. So then the click potential is higher. So it’s also a good way of

31:41
seeing not just which keywords to go for based on search volume and traffic, search volume sorry and keyword difficulty but also on click potential as well.

31:51
Ahrefs has had that for a long time. had no idea about that. thank you for letting me know. I’ll make a note to look into that. I had no idea. And ever since they introduced their plugin, like the Chrome plugin that a lot of people are using now, they have even more clickstream data than ever before. I personally give Ahrefs the leg up just because I feel like they’re investing a lot of resources in crawling. They have the plugin and they

32:21
They get that click data like you’re talking about. SEMrush looks nicer though. Like the UI just is prettier. yeah. Okay, so let’s dig a little deeper. Yeah. Sorry, I was gonna say the thing I find interesting as well is when you get down to the below 200 search traffic, the numbers can vary quite considerably. And I tend to find a address is a little bit more accurate from where I see my Google Search Console to how much traffic.

32:50
Ahrefs is predicting so that’s something that I find quite good if you got very niche terms, they’re probably a better one to go for

32:59
Okay, so one thing that we had talked about in the mastermind group is schema and markup. So one, would you mind defining for the audience what that is? And two, how did you even discover this was important in the first place?

33:19
So schema markup is a way of structuring data and content that you have on your website into a format that Google can read very precisely and effectively that they can then translate into a good user experience snippet or a rich snippet at the top of Google search results. ultimately, Google’s aim is to satisfy the user as quickly as possible. And I don’t think that’s going to change for years and years.

33:46
And the quicker they can do that, the better the UX, the more money they are probably going to make. And so the idea that you are getting a positive SEO by changing and formatting your content to have schema markup enables you to be more eligible for this rich snippet at the top of Google. And obviously, if you’re at the top of Google, you’re going to probably get more clicks, even if it is zero clicks. So that’s kind of the methodology of schema markup. There’s many different types.

34:16
which ones you use can have good consequences. Some might be better than others. It’s probably a niche thing as well. For example, if I have a recipe scheme on my website, it’s not going to work very well. Or if it’s on a food website, it’s going to work very well. So yeah, there’s loads of different markups. think finding out which ones are best for your niche and basically pushing them across your whole content is really going to help in the best of ways.

34:43
So you mentioned like the snippet at the top of the search results. Which schema is conducive to that on your site? Is it the FAQ markup or is it just answering the question succinctly? What’s your tactic for getting that? So the thing with the, so for example, I have FAQ and I rolled that out quite considerably about a year ago and I found with that, you would see the FAQ questions underneath too randomly selected. Well, it’s not random, but it’s chosen the

35:12
chosen selected questions from Google underneath the search result and that increases the space that you have on search results. And although the click-through rate does decrease having that, the impression you get on Google massively increases, which gives you a net gain ultimately. But in terms of the actual rich snippet at the top of the page, I tend to find that you don’t actually have to have any specific schema markup to achieve that.

35:41
You just need to make sure your content is as formatted as possible in a way that Google can really understand it. So one of the best experiments I did on this, which I haven’t seen replicated anywhere else, comes with my other website, OceanInfo.com, where I did a listicle on dangerous rivers. And the way I did this listicle, which I believe 100 % any listicle should have the same structure, is you have an introduction. You then list out the item, be it a H2 heading.

36:08
one to two points as to why it’s dangerous or whatever you’re talking about in the listicle, an image or a video of it, and then the content underneath it. And with the images, I had a caption for each of the images that said, why was the river dangerous? And Google, because I structured that article so well, and it was very clear that each caption answered the question of why that river was dangerous, they actually used it as a list, as a rich snippet list. They took each of the captions out and used it as a rich snippet. So it kind of…

36:36
homed into me that yes, can add FAQ schema, can add breadcrumb schema, but ultimately the biggest thing you can do is just structure your article as regimented as possible and as easy to understand as possible. Both to user on a crawl robot and then the rich snippets will naturally come your way anyway. Okay. So walk me through that again, cause I missed it. So intro and then an intro to the listicle and then

37:03
list all the things in the list, but you sit in the image, all tags, what do you do? So I would have each of the list of call items, I’d have the H2 heading up, whatever it is in that list of call, um, article, and then have two points under and underneath it, of, of where it’s located, why it’s dangerous. And that would change. For example, if you’re doing the top soccer players ever to live, you might say how many goals they scored, um, what teams did they play for? It doesn’t matter. It’s just two things about that list of call item that relates to the article.

37:33
You then have the image and I make the captions and the alt tags exactly the same and make sure that the alt tag and caption answers the question regarding that list of quits and so if it was Ronaldo in this football soccer example I’d say Ronaldo is one of the best players ever because he scored this many goals as the caption and the alt tag for that image and then have underneath that a paragraph you know 150 words 200 words which will go into more detail and that

38:01
Caption in this ocean info example that the domain authority of the website when this happened was zero It was two months old or something and it was beating everyone. It was beating National Geographic It was beaten DA’s of up to 80 on exactly the same keywords articles and I genuinely believe it was just because it was so well Formatted the structure structure that Google couldn’t not use as a rich snippet And I think the idea as well you can look at it from a Google perspective, but you can also look at it from a user expect perspective

38:30
The way I always try to think of things is how many different ways can the reader read your content? Traditionally, if you just got a massive paragraph, that’s one way. If you have H2 headings, that’s a second way. If you’ve got images, that’s a third way. If you have bullet points underneath the heading, two bullet points of why it’s whatever it is or just a bit more data such as Ronaldo scored this many goals, he plays for these teams, that’s the fourth way. If you have content underneath the image, that’s the fifth way. If you’ve got good captions, that’s the sixth way.

38:59
And I find the more different ways of digesting the content, the better SEO than articles tend to get. So that example you just gave, are you implying that you answer the question in the H2 tag or in the caption for the image in your Ronaldo? The H2 tag would be Cristiano Ronaldo. So you’d want to say who are the list, who are the items in this listicle? And then the images would kind of relate that list item to the

39:28
the question that you’re trying to answer being who’s the best footballers, what are the most dangerous rivers or what have you. So if you are answering the question in the caption for an image, that implies then that it’s not a keyword that you’re using for the tag for the image. It’s actually a sentence. Is that correct? Yes. Okay. Interesting. Okay. I’ve never thought to do that. My alternate typically just, yeah. Yeah. I tend to find that something that I

39:57
Categorically believe works. I do it with all my little calls now on any website and it really does work But the only time I’ve ever seen as a rich snippet was on this one example of dangerous rivers, but I never thought of the alt tags or the captions as being something that could be turned into a rich snippet But if they kind of relate back to the core topic where whatever that article is about Yeah, I can see how Google would use it because it’s something that’s repeatable that they can clearly extract from the article with every alt tag or caption

40:26
is answering a question in a way that could be turned into Rich Knippet, of course they would probably like to use it. So let me just summarize everything that you just said that we just talked about here. Okay, so you have the H2 tag, Cristiano Ronaldo. Then you have an image that answers the question, he scored this many goals and whatever. And then you might have a couple of points that say the same thing, this guy scored that many goals and whatnot. Not quite, not quite. I’d have the H2 of Cristiano Ronaldo. Underneath that, I’d have two bold point statistics.

40:56
family goals he scored, what teams he might have played for, a statistical point that emphasizes why he’s one of the best strikers in the world or whatever you’re talking about. You then have the image which would then answer in a different way with different information why he’s the best striker or footballer. And then the content would go and take all that information, add more to it, stuff that’s probably not related to why he’s the best footballer and just give you a better overview of who that player is.

41:25
or whatever that listicle item is. Okay, I like it. Okay, so it’s not the same verbiage. It’s reworded to answer the question, maybe in a different way. Got it. Okay. That’s amazing. Okay, that’s great. And so that’s listicles. So how does that relate to poems? Poems aren’t as factual as that, right? Do you do it in a similar fashion? And do you use images actually for your poem analysis? I tend to find that images are a USP that I like to…

41:54
Expand out to as many poems as possible because a lot of people struggle to visualize and understand what poetry is about so having some sort of featured image or an image of some kind that really homes in what the kind of vibe and what the Poetry is about helps understand the poem and it also helps you X as well But with the listicles is is this the great thing about what I just said is is can be transferred to any industry so for poetry I might have the top 10 best love poems and

42:24
and then have Sonnet 52 by William Shakespeare and then say what is it about, what themes does it include, love, relationships, blah blah blah and then have the image of whatever I have as a representation of it. I might even not choose an image and choose a different type of content such as a quote from the poem. That’s the most important part of the poem, quoted. I can then say why it’s…

42:50
a really good love poem and just repeat that again. the image isn’t something that might always work in each industry, but the H2, one or two bullet point reasons, some sort of content being an image video for me, for poetry is quotes and then the content underneath it is, yeah, it just works really, really well. Amazing. Okay. And then we didn’t even touch on, you know, how you run your team and whatnot, but what are your, clearly what you’re doing is working.

43:20
I’m just curious what’s stopping you from hiring more writers and really blowing this up and just scaling this even more? Or is that something you’re trying to do? think, yes, it’s something I’m trying to do, but it’s very difficult. And I think Elon Musk put it very well that anyone can create a prototype car, but mass scaling it and manufacturing it is a whole different question. And it’s the same, I feel, with anything upscaling. So I…

43:48
It’s difficult finding the right talent and people that you can trust because like you probably know, you can press the wrong button and then everything goes wrong. You don’t really want to entrust someone that might not know what they’re doing in that sense. But it’s also having the right processes ready to upscale. So I might have been working in Trello where people can pick the poetry that you want to write and so forth. Now I’m looking to move to programs such as ClickUp, using Loom to kind of give visual video

44:17
kind of lessons of how to do this, this and this. Hiring one or two people just to help with the management of the writers and to make sure everyone’s happy and do the commenting and that type of thing. So yeah, it’s difficult to do. There’s not a silver bullet answer I could give, but yeah, it’s something I’m still learning to be fair. Well, let me ask you this. Are you, do you personally read all the pieces of content that

44:47
get posted on your site today? Yeah. Every single article on any website I’ve read. I don’t always read it methodically, but I’ll go over it Grammarly. I’ll make sure the SEO is good. I’ll read sections just to make sure it makes sense, but not all of it. Just kind of a skim read. Right. Okay. So that means that you have editors that are kind of editing everything. And so you’re just kind of doing the final pass at this point.

45:15
I train the writers to be the editors. I don’t really see the benefit of having someone go over the content. I know a lot of people do that, but I would rather just let the writers do the optimizations so that when a new talk comes out, such as a set for SEO or topic SEO, I can train the writers and not have the editor do it as well. Cool. William, this is pretty enlightening. Where can the listeners find all the various websites? I know you have a poetry one, you have a book one.

45:44
And the most recently you have an Ocean website, right? Yes. So, ProAnalysis.com is the ProHT1 and the sister website, BookAnalysis, is BookAnalysis.com and the Ocean website is OceanInfo.com. I maybe will have you back on once you’ve monetized it with your own products. I’m very curious how that compares to like your ad revenue and do you plan on removing or reducing the ads once you have products?

46:14
Yeah, I would say part of my strategy, I think that also works well just on a side note, is I always have about 10 to 20 experiments going on and seeing which ones work, which ones don’t work. So I can see in the future, reducing the ads for certain categories, for example, seeing how that plays for an SEO gains and what RPM differences there’ll be. But the membership which I’m currently working on will include ad for experience. So it’s almost kind of incentivizing.

46:43
people to have a membership if there are ads on the website. So I wouldn’t want to reduce it too much, but yeah, I’ll be experimenting all the time anyway. I know that works for me. There’s this place where I watch anime called Crunchyroll. And if you don’t, like you can watch them for free, but there’s like an ad like every five minutes, it bothers me to no end. And you just pay like, you know, a little bit of money and you get those ads removed. So the model is proven and it works. I’m just kind of curious when you implement it.

47:13
how well it’ll do, I’m very curious. So keep me posted. I will do, yeah, sounds good. So thanks a lot for coming on the show, William, appreciate it. No worries, thank you for having me.

47:25
Hope you enjoyed that episode. Now if there is a topic that you are interested in, then there’s no harm in just documenting it online. And who knows, your content site might replace your day job someday. more information, go to mywebquitterjob.com slash episode 463. And once again, I want to thank Sellerboard, which is the Amazon profit software that I recommend for Amazon sellers. By going to mywebquitterjob.com slash Sellerboard, you can get 30 days for free.

47:51
Once again, that’s mywifecouterjob.com slash S-E-L-L-E-R-B-O-A-R-D. I also want to thank 180marketing.com for sponsoring this episode. 180 Marketing is the agency that I use to grow my search traffic by 4x in just six months. For more information, email jeff at 180marketing.com. Now I talk about how I these tools on my blog, and if you are interested in starting your own eCommerce store, head on over to mywifecouterjob.com and sign up for my free six day mini course.

48:19
Just type in your email and I’ll send you the course right away. Thanks for listening.

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462: The Hidden Truth About Dropshipping: Is It Really A Profitable Ecommerce Model With Saba Mohebpour

462: The Hidden Truth About Dropshipping: Is It Really A Profitable Ecommerce Model With Saba Mohebpour

Today I’ve got a special guest on the show, Saba Mohebpour. Saba is the founder of Spocket, one of the best Dropshipping marketplaces in the world, because their suppliers are primarily found in the US and Europe.

I get asked questions about dropshipping every day so I decided to invite someone entrenched in the industry to come on the podcast.

In this episode, Saba and I go into in depth on what it takes to be a successful dropshipper.

What You’ll Learn

  • Is dropshipping a profitable ecommerce model?
  • The pitfalls of Dropshipping
  • How to grow a successful dropshipping business

Other Resources And Books

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Transcript

00:00
You’re listening to the My Wife, Good or Jot podcast, the place where I bring on bootstrap business owners and talk about the exact strategies they use to grow their businesses. And today I have a very special guest on the show, Saba Mohibpur. And Saba is the founder of Spocket, which is one of the leading dropshipping platforms in the world. And literally every single day I get asked questions about dropshipping. So I figured I’d have someone deep in the industry to come talk about it. And in this episode, I don’t hold back the questions.

00:27
and we do a deep dive into the viability and profitability of this business model. But before we begin, I want to thank Zipify, OneClick Upsell for sponsoring this episode. If you were on Shopify and you want to instantly increase your revenue by 10 to 15 % without doing much work, then you’ll want to try OneClick Upsell. It integrates seamlessly with your cart and you’ll see the gains almost immediately. And best of all, you only pay Zipify a commission when they actually generate you extra sales.

00:56
For more information, go to zipify.com. That’s z-i-p-i-f-y dot com. I also want to thank Link Whisper for sponsoring this episode. Now those of you who follow my blog over at mywifequitajob.com know that I’ve increased traffic 4x in the past year and I couldn’t have done it without Link Whisper, which is my favorite internal linking tool for SEO. Link Whisper allows you to easily add internal links to your blog so you can maximize your link equity on the pages that make you the most money.

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Now if you have a blog, this tool is a must have. For more information, go to linkwhisper.com. That’s L-I-N-K-W-H-I-S-P-E-R.com. And then finally, I wanted to mention my other podcasts that I run with my partner Tony called the Profitable Audience Podcast. And not like this one where I interview other entrepreneurs, the Profitable Audience Podcast is just Tony and I riffing about online business. Go check out the Profitable Audience Podcast on your favorite podcast app. Now onto the show.

02:00
Welcome to the MyWifeQuitterJob podcast. Today I’ve got a special guest on the show, Saba Mahepour. Now Saba is the founder of one of the best dropshipping marketplaces in the world because their suppliers are primarily found in the US and Europe. And their claim to fame is that if you live in the US or the EU, your customers can get their products super fast compared to other services that can take a month or longer. And most of you guys who follow me now know that I’m not the biggest fan of dropshipping as a long-term business model.

02:30
which is actually one of the reasons why I’m so thrilled to have Saba on the show today. Now, clearly there’s a bunch of dropshippers who are successful, otherwise Spocket wouldn’t be where it is today. So what we’re going to do today is Saba and I are going to go into in depth on what it takes to be a successful dropshipper and highlight what some of his best customers are doing. And with that, welcome to the show Saba, how are doing today? I’m doing great Steve, thanks for having me on the show.

02:57
So Sabah, you told me you used to be pre-med. How did that turn into Spockit? Like what’s your background is medicine, but then you became a programmer and then you created Spockit. So what’s story there? Sure. I’ll tell you a little bit background about myself. So I moved to Canada in 2012. I had just studied medicine. I gave yourself British Columbia. Did my pre-med in 2015 while we’re setting my door. It was August 2015.

03:24
I was watching YouTube and I saw this 20, 30 seconds interview with this very young guy who was 17 years old and he built this out called Summary and he sold it to Yahoo for $30 million. So that was a trigger in my head that if a 17 years old guy can build such a massive business of software, I should be able to. So that night I started programming. So I learned how to program using YouTube and I bought a course at Udemy. So literally

03:54
Starting that, skipped all my classes, sat at my door and started programming 16, 17 hours a day. When I graduated in 2015, I started building many different apps while I was working, full-time jobs, and built probably 10, 11 different apps and they all failed. And I think Spocket was my number 11 or 12th try, which we launched it on the Shopify app store back in 2017. I’ve been trying to scale the company since then.

04:20
So I’m curious, so you self-taught yourself coding, like you didn’t take any classes or anything like that? I spent $20 to learn how to program. I watched a lot of YouTube videos. I bought a course for a team of 1499 from Udemy and I downloaded this script bought by Apple, which calls SWF, programming the SWF language. And yes, I taught myself how to program. Amazing. Amazing. And you coded the first version of Spockit from what I understand, right?

04:48
I did. The first two months when we launched the beta version on Shopify, I wrote a portion of it. I didn’t write all of it because I hired this co-op student from UBC that was helping me out to write the first version. yes, I wrote a portion of the code initially. I’m curious. So was this a bootstrap company or did you get funding for that first version? So I think we were eight months into.

05:15
building Spockit after we launched it on the App Store, which I think was June 2017. A couple months after we did our seed round with the Canadian VC. An year after we got into this program called Techstart. And after that we closed seed round. But we have not raised any money since. OK, nice, nice. So we’re kind of a trap because we haven’t gone through series A and B round of fundings, but not

05:45
the BlitzTrav, you know, some money. I just find it amazing that VCs will be willing to fund like someone just out of college, but I guess it happens all the time around here. For sure. Yeah. No, it happens a lot. Yeah. Yeah. All right. So most of my listeners are either store owners, people who want to start businesses, especially in e-commerce. And I mentioned before in the intro that I’m not a huge fan of drop shipping. So I thought it’d be interesting.

06:15
to just talk about how to get started and let’s just start with like how to pick the best products to sell. Like what are some gotchas? What are some best practices? Sure. I would say, uh, me without getting into the details and the data, because a lot of those confidential and I will not be keeping them confidential. Uh, to our success with dropshippers and merchant, uh, what a confidentiality matters. But in general, probably my first tip was that, uh, for dropshippers that to not start an Amazon store.

06:45
your stores should not have 2, 3, 4, 500 products. The successful dropshippers are the ones that focus on niche stores. You could have only 1, 2, 3, 5, 10 products and that should be enough. Usually if someone wants to buy just a general product, would go on Amazon or eBay. For a dropshipper, you would stand out when you focusing on a niche, as sourcing a very niche product to sell. So that’s probably the first thought on the dropshipping side.

07:14
In terms of data, obviously there’s a lot of products out there that help you out to analyze what’s selling, what’s the high selling products, are the training products, what are the winning products. We recently launched this solution within Swapy Dashboard, which is all winning products. Also within the next two, three months, we’re launching another section that we did on our dashboard, which basically to show you the trend of different types of products over time, within the past four or five years.

07:41
And then you see the trends, you decide what type of product and what categories you want to sell and what’s potential selling in the market. So let’s say I was a dropshipper. I actually wouldn’t want to see those features there because like you’re selling someone else’s product, right? And the fact that you’re highlighting what the trend, do you want to be selling trending products is what I’m trying to ask. Because that means a whole bunch of other people are going to be jumping on it, which will, you know, when you sell, when you’re selling something and a whole bunch of other people are selling.

08:10
that generally erodes prices, right? It does. So by the way, when we talk about the distinction that we’re adding within our dashboard in terms of training product, it’s not just the sales across Spockit, but we actually partner with multiple platforms and getting access to what’s being the sell of different products on marketplaces like Amazon, eBay, across the Shopify stores, there are over 2 million of them. So the analysis is not particular to a product or particular to a shop.

08:39
particularly to the powerful is across the market, e-commerce market. So, that high level would tell you that what type of categories you want to get into, what type of products you want to get into. To answer your question, let’s say it’s August and September, and usually August and September is back to school season. And those type of products would be very popular. So it’s good for you to see that what is the trend in August and September.

09:05
Maybe it’s not selling fashion product. Maybe it’s good to sell back to school products. So it’s not necessarily a thing. It’s good because you know what you need to be selling those particular quarters or months. Okay. You guys support Amazon, right? From what I remember. are very close to support Amazon. think the next four weeks, we’ll be launching our partnership with Amazon as well. Okay. So what’s funny is you said you don’t…

09:32
I don’t actually see how it works on Amazon because the margins are like the fees are so high on Amazon, right? So, yes. So maybe I can explain that. What if I step back and explain a little bit more about Spockit and what the offer, different top of the up where I said the offer, then I can explain on the marketplace side as well. when I started Spockit six years ago, I wanted to do dropshipping and I did not want to use platforms that

09:59
automate drop shipping using Aliexpress because the products are lower quality. to lot of thought leaders, there’s 50 % chance of failure in the shipping. And also the shipping time was like four weeks to eight weeks was too long. So that’s why Bill Spock in the first place for myself to automate my drop shipping while I get access to the local suppliers. So that’s it.

10:28
of Spockit that we create to meet local suppliers. Over 90 % of our base in USA, Europe. Now we have over one and a half million products. have over 3,000 suppliers that we matter the source within USA, Europe. We vet them. And another interesting requirement for the supplier to join Spockit is to offer us 25 to 50 % discount on the products. So when you start using Spockit, you automatically get a good margin on each of those products.

10:58
So to answer your question, if our merchants selling on different channels, do they have any margin? They already have margin on the products that are sourcing from stock. So that was the first section that we launched five, six years ago, which is just US and European suppliers. Over time, we found that a lot of merchants still want to drop ship from that express. what we learned over time is that we should not be biased towards the source of suppliers

11:27
and how other marketplace should be functioned, but we should provide what our customers and our merchants need. And it’s still a lot of people wanting to do AliExpress dropshipping. So we created another section and we built this cool tool called AdiScraper, which automates your entire AliExpress dropshipping that has over 60,000 active merchants using AdiScraper today. So later on, we found that a lot of our merchants that actually become successful,

11:55
They want to get out of drug shipping and they want to build their own brand. They want to do wide-level brands. So we partnered with this platform called Jubilee, which helps you out to build wide-level products. So if you want to build a wide-level cosmetic product, can literally do that within the dashboard, put your logo, put your brand on it, and we will basically warehouse it for you and ship it for you. And this is the extension of Spockit for very successful merchants that want to actually build their brand.

12:24
for a long-term e-commerce business that they want to continue to scale over time. Interesting. I actually didn’t know about that feature. So basically, it’s the same product, but you can put your own logo on it, essentially, right? Yes. It’s our partnership with this platform called Jupeleat. Their software solutions outside of Spockit. They have a different interface, but we’re still promoting them. I mean, our dashboard, with this Spockit dashboard, you would see the wide-level solution, which would

12:53
send you to the Jubilee product. So I’ll explain a bit further. So later on, we figure out that not all the merchants want to sell physical products. Maybe they want to sell digital products. And if you’ve seen the past two or three years, NFT has become very big. So we actually built another solution, which is helping our merchant to sell NFT within their Shopify store.

13:19
So the product is actually available on Shopify, App Store, and our TV Longitude, which they call it Dnfd, Dropship NFT. And within a few clicks, you can actually create NFT and sell it down their store. So we’re trying to evolve and trying to offer our merchant whatever they need, without being biased towards a source and the type of things that we think is right, right? And whatever you think, we’ll provide it for you. So your best customers still cater to a niche, right? Like I have a lot of people that come into me and say, Hey,

13:49
I have access to Spockit, so why don’t I sell 700,000 products? But you’re saying like for your best customers that you know of and you don’t have to reveal who they are. They all focus on a very specific subset of products. that accurate? Yes. Okay. Yes. So if you see our highest tiers, which is our unicorn tier, we cap the number of products that you can push from Spockit to 10,000. And we do get complaints from our merchants that

14:15
Why do you cap it to 10,000? I mean, for us, it’s very easy to increase that cap from 10,000 to 100,000. It just takes probably half an hour to put that in our code. Because based on our data, we know it’s not useful for you to spend your time pushing more than 10,000 products. Even 10,000 products is too many. But we actually try to help you out to save you time so you don’t go and spend days or weeks or months and importing 50,000 products. Because we had those cases.

14:43
And you have to answer your question. Yes. The best dropshipping stores are focusing on a niche. They’re not creating another Amazon store. Okay. So I have several friends who are successful in dropshipping and the way they are successful is one, either they’ve ranked in search somehow and drive traffic to their products that way, or two, they’ve created content and built an audience. Would you say that’s the typical route for your successful customers or how are they getting traffic?

15:13
I think it’s very different. Different merchants, different dropshipping, acquired customers in different base. Maybe I can tap into a few of them. Some of them really good marketers. They’re amazing at paid acquisition. We actually had this very successful merchant that was moving millions of dollars a sell. And maybe we started talking to them, we found that they had a marketing agents. And they started this dropshipping store on the site. There were solo details in how much money they spend and how much money they make. So the ROI was always positive.

15:43
And that’s how they were able to scale their dropshipping store. Whatever they’re making extra, they were spending it back into paid marketing and they were scaling the company. And at some point they actually built a brand around their store. So that’s one type of people that are extremely good at paid marketing. They’re sector of customer that you have, that they have a good social following. They have a, say Instagram account that has 10,000, 20,000, 50,000.

16:09
We have some merchant that their Instagram account are a few million followers. So for them it’s very, very easy actually, because they’re not spending any money to our customer. They they spit out a dropshipping store, quickly use Spockit to source on products and they go on their Instagram and they announce it to their customer that this is my store. It could be a bikini store, it could be a female fashion store, could be a cosmetic store. Those type of dropshippers usually become very successful early on.

16:36
because they don’t spend any money to acquire any customer. So they’re positive. The cash flow is from the beginning. Yeah. We have this case study on our blog. We had this dropshipper on our platform that started as fourth store. I she started with one store, was successful. She started another one. Then she started another one. Then she started another one. I believe she was moving $2 $2.5 million worth of sales every year and very, very profitable.

17:05
But also many of the successful dropshippers, they start, they, they expand to multiple different stores when the first one is successful. Yeah, that makes sense. Would you say the majority of your successful customers are on Shopify or their own platform, you know, their own website as opposed to, cause I know you guys support some marketplaces as well. So I’ve gone on almost 90 different e-commerce platforms, like all of the most popular e-commerce platforms are Shopify, Weights, e-commerce, Equid, Square, Squarespace.

17:35
Welcome to Moor. We’ve recently launched our partnership with eBay. And I think in four weeks, we should be launching our partnership with Amazon as well. I can’t talk about marketplaces they don’t and how they function. But I would say probably Shopify merchants, the dropshippers are, on average, probably the more successful ones because Shopify offers a wide range of tools and apps to help them out to become successful.

18:03
Of your most successful Shopify stores, are they doing all the other things that a traditional marketer would do like email, SMS, automated sequences and that sort of thing? Just trying to get an idea. Yeah, sure. So I don’t know the details of like what dropshippers do and every dropshipper file is different. Some of them do, some of them don’t. But I think things like email, SMS, push notification, sub, or…

18:29
And live in later stages after you acquire a customer, because if you don’t have any customer, you don’t have any email to turn an email to. So also the first step is to really think about how you would start acquiring customer and how you would be capturing that email, like either in checkout or we get a blog post or somehow have it in your website. But first you need to create an email list and list of customers that are interested in the products of yourself.

18:55
But then you can retarget that through, or remarketing through sending emails, notification, SMS, or retarget them using Google audience, or even Facebook network. When you say like the margins are, like you make sure that the supplier can provide adequate margins. And let’s say you said 40%, right? Like a 40 % margin. What is that off of? Is that off of MSRP?

19:25
And are these suppliers actually selling their own products on their own website or are they just strictly suppliers? So, uh, again, you have wide range of different suppliers. have suppliers that are just pure suppliers and they adjusted the warehousing and the shipping, uh, to suppliers that are from Etsy and they’re making things limited edition and they’re handmade. Uh, we also have a few wholesalers within our marketplace that is wholesalers sourced up from multiple different suppliers.

19:55
And their responsibility is just warehouse and ship it. So they’re not the producer. They’re just aggregating many different suppliers. So we have those type of suppliers too. So you get a wide range of different suppliers. To answer your question, when the onboard supplier, there’s different criteria requirements. There’s a checklist. I think we have almost 10 different requirements for onboarding every supplier. Onboarding this supplier is a

20:24
multi-week, sometimes multi-month process, just from starting the conversation to going through all the checklists, onboarding them. But one of them is that they need to offer us 25 to 50 % discount of the retail price. if they are, let’s say, drift selling their store for $50, we request that it goes 25 to 50 % discount of that $50. So our retailers, merchants, have a margin as soon as they start

20:54
I’m sourcing Port art from SmartKit. Are those suppliers that sell on their own website, are they allowed to give promotions and discounts on their own site? Yes, they could. But one thing that you have to consider is that there’s a difference between selling Port arts on marketplaces on Amazon. And again, that’s exactly what I said. I explained the marketplace situation later on.

21:19
There’s a difference between selling a product on Amazon or selling on your independent online store. So if you’re selling at Amazon, you’re selling the same product, when you’re listing it, when someone searches for that product, it’s basically a price competition, right? The customer would be able to see all these products and see who is cheaper, they got to purchase it from them. But that’s not the case if you have your independent online store. If you’re selling them Shopify, you make 200 store, 500 store, and it passes the store.

21:48
could be selling the same product and all of them have a good amount of sale. Because when you have your independent online store, you will be basically targeting different audience from different location, different age groups. So you’re not necessarily overlapping on the target as much. mean, US on its own has scary amount of 50 million people. If 500 stores are selling the same product, then each of them could be targeting many, many people only by the year-wise.

22:15
And that’s all concerning Europe and many other regions of the world. So we do have this balancer on our site that when merchants try to search for product or push product from our marketplace, we try to balance it out. if a has been pushed too many times, we try to not show it in the search as often than a product that has not been pushed. So we’re sort of balancing the number

22:43
that every product has been questioned, it’s been sold on different stores to reduce the amount of competition on different products. But that being said, we’re not too worried about it because these are like independent store and it could be targeting different audiences. Yeah. I mean, if you have your own audience, like you mentioned on social that it usually doesn’t matter. People probably aren’t price comparison or doing comparison shopping and that sort of thing because they’re just buying from their favorite influencer. I guess the same is with direct response ads as well.

23:10
I am curious though, so you could potentially be competing against your supplier though, in certain circumstances. just… Yeah. I want to say so. want to say so. think about it. I mean, maybe in like a very small cases, but in the most cases, usually suppliers and manufacturer are not good marketers. They’re not good sellers. They’re good at producing and their housing and shipping.

23:39
Basically, what we do when we discuss, when we have our negotiation conversation with suppliers, we tell them, what if you really focus on manufacturing and get really good at that and let hundreds of other merchants do the job of marketing and selling it for you? So basically dividing the responsibility on the both sides. So no, our suppliers are actually super happy because we’re actually bringing more stuff. They sell that they had to actually spend money to acquire those customers. Do you recommend

24:09
taking your own photography of the products and writing completely new descriptions or, or I’m just trying to get an idea of what most of your customers do. Do they just take the stock photos from the supplier and the descriptions? Well, what are your recommendations there? Yeah. So, uh, we actually have this feature on the Spock side, just sample orders. We were not great to consumer products. So we do not allow people to call it a web platform and purchase things.

24:36
Well, this is just for sample order and it comes from a merchant. So a merchant could be ordering sample orders and they could do their photography themselves. Some do. A good number of them actually do that, but not everyone does because that costs them some money. They want to do their photography on their end. I personally do not suggest it initially. I think it’s probably better to not have too much cost initially. Push those products to restore, do a bit of testing, see if that product sells, and then

25:06
order a few self orders, do the photography and build your store around those products. That makes sense. All right. So here’s a, here’s a different angle of a question. Do you recommend building the audience first and then starting the store or starting the store first and then trying to sell your products? This is a really, really good question. I think the way that I can answer that is how I end up scaling Spock it as a company. Okay. So.

25:37
I, as I mentioned, I built 10, 11 different products and they all failed. Between now and the reaction failure, because when I launched my first product, I learned how to code. When I built my second product, I learned how to run Facebook ads. My third product, I learned to hire my first co-op student. The fourth one, I learned how to apply for grants and get some more grants. So every single of those products that I built,

26:03
Maybe it failed at the end, it wasn’t actually a failure. I learned so much. So by the time when I landed on a successful idea, like Spocket, I knew how to hire, I knew how to raise money, I knew how to apply for grants and then all those steps that are required to build and selling a company. So to answer your question, I don’t think you should spend a year building your audience and not starting your online store to hopefully get to that number of audience and then start your store.

26:32
In my opinion, you should be doing it in parallel. Building your audience and at the same time, trying multiple times building a dropshipping store. mean, the cost is so low right now. Yeah, but you can’t pay with Shopify monthly cost is 25, $30. I think they’re increasing the prices to $40. Spark is $30. Your cost is less than $100 a month. That’s honestly like going out twice. Like it’s like having two dinner, two lunch outside.

27:01
It’s like eight coffees, nine coffees. The cost is just so low that I think it’s really worth experimenting, even if you know you’re going to fail first time, second time, third time. But every time you learn something new, learn the first time you learn how to use Shopify, how to set up your theme, how to set up your taxes, to use a platform like Spark Air, how to automate using different Chrome extensions. The third time you learn how to write Facebook apps, and every time it’s going to cost you less than $100.

27:29
By the time that you have the arguments, you exactly know what to do. You exactly know how to scale your e-commerce store. That’s my personal opinion. Again, everyone has their own way, but basically, it’s else-free. You know what’s funny about this is that where you and I live, one meal could easily be the monthly cost, but people don’t perceive it that way. They’re like, oh, I’m willing to spend that much money on a meal, but-

27:54
When it comes to like a cost of like Shopify, for some reason they bulk at 30 bucks. It kind of just doesn’t make sense to me. Honestly, many of my friends that they literally think that way and I’m trying to change their mindset. I’m like, we went out last night and paid a hundred dollars on cocktails. And how would you not, how would you don’t see that costly about when you want to start a business, you think a hundred dollars is costly. Exactly. Exactly. I am curious. So, uh,

28:23
How does Spockit make money? Is it primarily from the monthly fees or are there any other ways that you guys make money? So we started Spockit on a subscription business and over time we wanted to move to the GMB style and taking a cut or doing a mix of both like Shopify does that they charge a flat fee and also they take a cut. We wanted to introduce

28:50
and marching out of the cell. It’s been like two years I’ve watched in Jerusalem, but we always said, not yet, not yet, because we always want more marching to get on our customer site, on our merchant site. So they say in business. So if they say in business, got to stay longer in the business and we got to make more money on the flat to everybody. So we have not introduced any cut of the cell. Maybe we do that in the future. We definitely wanted to do it and the experimented it a little bit for a month or two.

29:20
And it was very successful for us as a company, but we thought it was probably not the right time yet. I’ve been getting some complaints from other merchants that, hey, what are you charging us fees and stuff? So we tried to not continue that yet. OK, so it’s just pretty much the flat monthly fee. At this point, it’s just a flat fee, yes. OK. And just logistically, from just a drive shipping standpoint,

29:48
Do the people get access to the supplier in case something goes wrong or do you guys kind of handle all the go-between between the supplier? So I think it’s good segue that I talked a bit about our customer support team that I’m sure. Yes. And honestly, the past, the last five years, probably been one of my top two priorities all the time. I still every single day check 10 to 15 tickets. I read them and they give

30:17
comments to our customer support team. have almost 35 people doing 24-7 customer support. We offer two minutes to respond to them. So, I mean, you can test it yourself, Steve, if you go on our website and you send a message to our customer support team, on average, you should be getting a response within two minutes. These are part of our KPIs that we track on a week-to-week basis. And I’ve been doing it for six years now. I would say I want Saba to respond within two minutes. Is that going to happen?

30:47
That’s totally not, can I hug? Yeah, obviously I’m like an awesome team that they’re doing a great job. mean, if you go look at our reviews on Shopify, look at our reviews on TrustBite, they’ll make different platforms. see like how much they’re talking. The reviews are definitely top-notch among all dropshipping platforms. There’s no question. Yeah, I would honestly give most of that to our customer support down top of it. If you have some sector of KPIs, what that is that?

31:15
It has to be two minutes to respond time, below two minutes to respond time. They must get over 95 % customer satisfaction, NPS, on a week to week basis. We understand that some customers are always not going to be happy with what we do, so we can’t really be 100%. But every agent that we have includes 75%. So we have some very strict and very high bar KPIs on the customer support side.

31:44
So to answer your question, we wanted to be in the middle. If there’s any communication our merchant wants to do with suppliers, we wanted to be in middle. And we were in the middle for four years. Like any communication from merchants was coming to our customer support team. We were reaching out to the supplier, getting information from them, and getting back to our customers. And we did that for multiple reasons. But one of them was that we as a company probably have higher authority.

32:13
to send this message to suppliers and get a faster response. Then let’s say our merchants reaching out to the suppliers, it takes days or weeks to get the response. So also when we are in the middle, when we reach out to the supplier, if they don’t respond to us, let’s say within 40 hours or 24 hours, we can remove that supplier. But if the communication is directly in our merchant and supplier, we don’t know, let’s say that communication is efficient. We don’t know if suppliers are responding to our merchant fast enough.

32:42
So we could not have the KPIs on our supplier end. That being said, seven, eight months ago, we launched a direct communication between our merchant and our suppliers on a limited number of suppliers, which we actually agreed to expand it to all of our suppliers by the end of this month. So at the of this month, if our merchants want to talk to any of the suppliers, they could do that directly. And if they want to talk to us and

33:10
We reach out to the supplier, they can do that as well. I mean, this is a segue to my next question, which was how are disputes resolved? let’s say I buy something from this one of your suppliers and I’m not happy with the quality, but the supplier doesn’t agree. Like, do you guys mediate or how does it get all worked out? We are, we are mitigating. are in the middle. If, if there’s any issue happens in terms of the product, know, where it is broken or it hasn’t reached into the customer.

33:39
or there’s any issue like our merchant would reach out to us. I mean, not 100 % of the orders reached successfully. Even not all the orders from Amazon have reached successfully. think Amazon’s success rate is around 98%. We’re really aiming to increase that bar and getting it as close to 98-99 % on a success rate, but there’s issues on the order processing for sure. And we’re there. Our customer support team is there.

34:07
24-7 to help out. We do reach out to the suppliers. We are in the middle of transactions. So if the situation is in a way that we think is fair, we will process a refund to the merchant on our end. And we will discuss the resolution of the supplier later on. because the transaction happens within our system, we could be processing those refund in case there’s an issue with the order. Right. Yeah, that makes sense. So

34:35
Under what circumstances would the seller reach out to the supplier directly? You mentioned you just introduced a new program with certain suppliers or like that. Do you encourage them to speak with the supplier directly or do you prefer that they go through you guys? Yeah. So honestly, the reason that we launched that, sort of beta and making it across all four suppliers by the end of this month was not really for…

35:04
situation like disputes. It was more a situation that, let’s say, a customer wanted this product to be a different color, or they wanted to ask questions about the inventory of products. So we’re like, it might be unnecessary for our merchant to reach out to us and say, many inventory of this product left? And they reach out to the supplier and the supplier let us know, and we get back to our merchants. Like, do you have the color of these t-shirt? And they come to us, and they reach out to the supplier, supplier get back to us, and we get a

35:32
communicated with our merchant. So for those smaller sort of question, if there’s any dispute, we still encourage them to reach out to us. Because we’re in a position to resolve their dispute much faster and in more efficient way. Inventory accounts are automatically updated though, right? It does. OK. It does. Yeah. Let me ask you this question then. Since there is communication now, is it possible for the seller to

36:01
interact directly with supplier outside of Spockit. So I mentioned one of the reasons that we didn’t have direct communication for four years, four and a half years. There was multiple reasons. Like we wanted to increase the quality of service, but at the same time, we were in marketplace and we didn’t want to encourage our merchants around us. At the end of the day, we are in marketplace and we have to protect our marketplace and all the work that we put in place in the past six years to build this marketplace. So we wanted to protect it.

36:30
We really believe at this point, the value out of spock is big enough that does not work for our merchant dropshippers or for our suppliers to go around us to save $30 a month. So our starter plan is $29. You’ve came that you basically getting access to millions of products. You get access to our partnership integration with both Alibaba and Aliexpress. You get access to wide level solution.

36:59
You get access to our NFT creation, you get access to our winning products, you get access to image search, you get access to real-time inventory update, you get access to 24-7 customer support, and many, many other features and solutions that we offer. If you really think all of these are worth $30 a month, and you’d to go around us and do all of these things manually by contacting the suppliers, sure, I mean, you can do that. We really think we’re at the stage that our value add is much higher.

37:28
than saving $30 a month. Also from the other side, our supplier side, for our supplier side to work with all of these merchants on a direct basis and processing these orders, getting these orders, the transactions, all of this thing, doing that with hundreds of retailers, manually, it’s pain in the agree. Yeah. Yeah. So a lot of our suppliers, even if a merchant want to work with them outside of it, they wouldn’t work with them on the dropshipping side.

37:57
Let me ask you this question. So one way I teach it is like, if you have no money, start out drop shipping, figure out what sells and then maybe carry inventory of that item to get higher margins. Is there that option in Spock? Let’s say you drop shipping something really successfully. Is there the option for me to buy like 500 units and get like a bigger margin on that product from one of the suppliers? Yes. So as I mentioned, our suppliers offer 25 to 50 % discount. So if you want to process a bulk,

38:26
order with them. could again, have thousands of suppliers like this is something that we can discuss with our merchant on a case by case, but they could even offer up to 50 % discount which is a wholesale price and you could warehouse it and ship it yourself. Some merchant want to do the packaging themselves because they want to have repackaging a certain way. So they put it all quarter. They put it in their housing, their house or the warehousing. They create the packaging themselves.

38:55
They create the experience that they want to for their customers. So you absolutely can do that. Yes. Is that something that requires talking, or is that already kind of built into the system? So right now, we do have a feature that you can process sample order at a discounted price. But I think we have a limit of 10 sample orders per product. And the reason that we added that limit is because we don’t want to become a direct consumer. absolutely.

39:23
because we basically are negotiating all this discount with our suppliers. We do that with the condition that business is going to be selling this product to the end consumer. So there’s a limited number of sample orders that someone can produce. Sorry, order. But if they want to order and want to doubt, yes, they need to reach out to our customer support and we put to facilitate that. Another question I have is we talked about AliExpress dropshipping earlier and you added it because some people want to drop ship from AliExpress.

39:53
Looking at your customer base, are your more successful customers drop shipping from your US and EU suppliers as opposed to people from China? Yes, as I mentioned, let me actually share some of the title stats. Okay. Then I’ll answer your question. So we add over, I think at the end of April, we crossed 150,000 active merchants across all the commerce platforms that we partner with.

40:22
And that has grown by almost $50,000 in the past eight months. So it’s been a really great year on the growth and having more dropshipper trusting us and using it as a solution. Out of that, since we launched our AdiScracker solution, which is automated AliExpress dropshipping, we have over $58,000 of active merchant using that solution as well. So that high level of the usage base, in terms of orders,

40:51
I think I was actually looking at our order stats a week or two weeks ago. Roughly around 68 to 70 % of our orders are processed in our USA, Europe marketplace than AliExpress. So I would say more than two-third of our orders are based on suppliers that are fast-shifting and high quality and lead on to vetting and verifying their suppliers. Okay. But you don’t vet the AliExpress suppliers, right? That’s probably a hard problem to solve.

41:23
We cannot really do that. And there are some measures on the Aliexpress side, like you would be able to see the rating of suppliers, the rating of port right. So we’ll let that to our merchant. If they want to use Aliexpress, they can use our Aliexpress solution. But then on the vetting side, it’s on their end. They have to decide if they want to work with the suppliers on Aliexpress or not. Yeah. So what I’m getting at is it’s a much better experience to use your vetted US and EU suppliers. Than the Aliexpress. 100%. 100%.

41:50
And even the support that we offer afterwards, we cannot really offer the support for Aliexpress. So if there is a dispute with a supplier within Aliexpress, because we did not vet them, we did not verify those are not verified suppliers, they cannot handle that. But within our marketplace, we can help with the resolutions and any sort of disputes. I just thought I’d ask you this question.

42:16
Do you know of any people who are doing AliExpress dropshipping successfully in the long term? So I know people that are doing great building AliExpress dropshipping and then making good amount of money, but in short period of time and then die afterward. I mean, they just sort of dies after a couple of months or maximum, I’d six to eight months. I think the final winning product, they go hard on marketing, failed acquisition mostly, they sell a lot.

42:44
some of them honestly sell a few million dollars in like two or three months. Really they’re making very good margin, very good amount of money. But very soon the competition grows and becomes so big that you can’t really compete as much. So they usually die and their store dies and they look for new products to sell. But the customers that sourcing local suppliers might not overnight like in like a month or two get to a million or two million dollar sales.

43:13
but they feel like more in all terms of sustainable businesses. Yeah. I am curious, and maybe you don’t even have this data, but how many of your customers who are the successful ones start out drop shipping and then move on to like the white label option that you mentioned and even going on to private label? Is that, is that like a stepping stone that you guys are seeing with your customers or do they primarily stick with drop shipping? So, uh, that’s a really good question. Uh, so you know, Shopify at launch Shopify plus, think as of 14. Yep.

43:42
And I listened to the interview with Toby and Harvey, the wide-diamond Shopify Plus. The reason wasn’t to get into enterprise e-commerce initially. The reason that they started Shopify Plus was that there’s so many people who are coming to Shopify, they become successful. But as soon as they become successful, they would have gone to use Magento or other platforms. So technically, the best merchants of Shopify, they were leaving them after they become very successful.

44:11
So that’s why Shopify started building Shopify Plus and you basically graduate to their Plus solution when you start selling auto-naughty like $100 million a year. Don’t quote me on that number. It’s like if you’re making like six to 10 million or something, it makes sense to upgrade or something like that. I can’t remember the exact number, but yeah. Yeah, so those are more like merchants that graduate to a Plus customer. So the same situation happened to us, like a drop-share pay was…

44:40
It’s for beginners, people that are entrepreneurs, people that want to start businesses. And the ones that become successful would graduate out of production and they want to their own brand. They want to warehouse their own product for a very long term, building the brand. And we weren’t part of that market. We weren’t part of, we weren’t a solution for them. So we’re part of this platform called Jubilee, which right now it’s purely focusing on cosmetic products. And we’re going to expand that to fashion products and other types of products too.

45:09
So if your dropshare store becomes successful and it’s helpful, you want to build your brand, we can help you out with that as well. you’re using sort of our system and our customer support, the same level of support, the same level of solution that we have, but now you build your own wide level brand. another very interesting stat that I might be just sharing too much, but I think this is very interesting stat that as soon as we started our partnership with Jubilee four months ago, they went.

45:37
from pretty much zero to over 12,000 active merchants using that solution now. So they’re scaling too, which on the Y label side and private label side, scaling is very beneficial because it significantly reduces the cost of shipping and warehousing. Yeah. Nice. OK, so it’s nice to know that you guys are going in that direction. It seems like there’s plenty of demand for that. And right now, there’s no extra charge for that. Is that correct?

46:04
Jubilee has its own sort of fees, which is like, honestly, very small. It’s like $19 a month. I think there’s a very small card of every cell, but that’s very small. It’s not many. But it’s not using usability. It’s the same. Like you use the Spocket app, you can import these white label products directly in your store. Right? It’s experience. It’s the same experience, but it’s a different solution. Got it. Okay. Okay.

46:34
Cool, Salva, I know you got to go. Where can people find more about your company if they have any questions and that sort of thing? Our website, spokken.co. We have our customer support team. guys see this purple bubble in there? The right bottom side of our website, our app, you can reach out to them. You should be getting a response in two minutes. If you don’t reach out to myself directly, my email is salva at spokken.co. Try our customer support. Again, if they don’t respond in 10 minutes.

47:04
They send me an email. But yeah, that’s how they can get more information. have our help center. I think pretty much have articles and content for every action within the dashboard and our solution that should help out as well. Yeah. mean, one thing just I’ve noticed, but by the way, if you guys are listening, Spongebob also has a free program where you can just kind of look at what’s being offered. And then the customer support is

47:33
is top notch compared to the other dropshipping marketplaces. I don’t do dropshipping, but I do see it as a good stepping stone for other things. And your answers actually confirm that with me today in the interview. So, Saba, thank you so much for coming on the show. I really appreciate your time. Thank you, I would just add one more point. Yes, sure. we end this conversation, last year, we actually launched our Academy. This is another section that added in our app that if…

48:01
There’s many courses over 50 quarters, most of them are for free. So if customers want to learn about SEO, they want to learn how to do marketing or how to start the dropshipping source set up in the Shopify store, there’s a course about it. That’s honestly the last thing I want to mention. Maybe if you just send me those links, I’ll link them up in the show notes. The Shopify facility. Yeah. All right. Well, thank you so much, Sala. Thanks, Sastif. Appreciate it.

48:27
hope you enjoyed that episode. Now if you have any questions about dropshipping, feel free to email me over at steve at mywifecluderjob.com. And I hope this episode helped to clear up any questions that you may have had. For more information, go to mywifecluderjob.com slash episode 462. And once again, I want to thank Link Whisper for sponsoring this episode. Now if search engine optimization is important to you and you run a blog, make sure you check out Link Whisper over at linkwhisper.com.

48:54
I also want to thank Zipify and OneClick Upsell for sponsoring this episode. Seriously, adding this one tool will instantly increase your Shopify revenue by 10 to 15 % with doing very little work. Go check it out at zipify.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 enter your email and I’ll send you the course right away. Thanks for listening.

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461: The Toxic Truth About Entrepreneurship – My Impromptu Speech At Books Inc | Family First Friday

461: The Toxic Truth About Entrepreneurship - My Impromptu Speech At Books Inc

Welcome to Family First Fridays which is a new segment of the podcast named in honor of my book, The Family First Entrepreneur.

Last night, I held my very first book signing at the Books Inc. In Palo Alto and I had a blast.

I wasn’t planning on giving a speech at the bookstore last night, but I ended up giving a 15-minute impromptu talk, which I’m sharing with you today. Enjoy!

What You’ll Learn

  • Why I wrote The Family First Entrepreneur
  • The 4 burners theory
  • Behind the scenes of my book signing

Other Resources And Books

Transcript

00:00
You’re listening to the My Wife Could Her Job podcast, where I teach you how to start a business or side hustle from the perspective of a father with two kids. Welcome to a new segment to the show, which I’m calling Family First Fridays in honor of my book, The Family First Entrepreneur. So last night I did my very first book signing at the Books Inc. in Palo Alto, and I had the best time ever. And one of the unexpected benefits of writing a book has been that friends who I haven’t seen or heard from for years have reached out to congratulate me.

00:28
And a bunch of them actually came to the signing last night. Anyway, I wasn’t actually planning on giving a speech at the bookstore last night, but I ended up giving a 15 minute impromptu talk, which I’m gonna share with you guys today. Enjoy. Hey, first off, thanks everyone for coming. I don’t know if we’re gonna do Q &A with this bunch here, because I got some people in the audience here that I’ve known for like 20 years, 25 years, 30 years.

00:57
So they know everything, yeah. Higher than that, but you’re right. We’re getting to that age now. First off, just so thank you so much for coming. This is my very first book signing. And it took three years to write this thing. I shouldn’t call it a thing, right? It took three years to write this masterpiece. And the reason why I wrote the book is because I read a lot of business books. And I just felt like all the business books that I’ve read don’t apply to me.

01:26
And especially in this area that we live in, Silicon Valley, right? Everyone’s all about venture-backed going public and that sort of thing. And what I’ve been reading in these business books is that you have to work 80 hours a week. You’ve to burn the midnight oil in order to succeed. And what ends up happening is that as an entrepreneur, you work so hard and you miss out on your family time. And then you’re going for this goal of going public or having that huge exit.

01:56
which sometimes never comes. More often than not, it actually doesn’t come. And at that point, you’ve already sacrificed your family time. You’ve sacrificed what you want to be doing. For what? But it doesn’t have to be that way. So I wrote this book because those books don’t apply to me. I actually want to see my kids. I actually want to see my wife.

02:23
She didn’t even let me finish my…

02:30
So I wrote the book to show people that there’s a better way. If all you want to do is make, let’s say, a couple million dollars or just several hundreds of thousands of dollars, you can do it easily without working 80 hours a week. We run two businesses that make seven figures, and we work around 20 hours a week. It can be done. The only problem with this crowd here

02:58
I know there’s some overachievers in this crowd. And one thing that was a problem for me was ego. So if you’re not used to making money online or making money period, and when that money comes in, you kind of get this fever. So when we launched our handkerchief store, we ended up doing six figures in our first year in profit, which allowed my wife to quit. But then I was like, six figures? That’s awesome.

03:26
Our initial goal was actually only $60,000. And when we hit it with the year, I was like, oh my god. OK, let’s see how far we can take this. I don’t even like handkerchiefs. So I was like, OK, let’s try to double growth next year. And then we hit that goal. And so then we celebrate for a dinner or something like that. And then I’d move the goal. Let’s grow another 50 % the next year. And it got to this point where

03:53
I just kept moving the goalposts, and this is my fault really. I kept moving the goalposts, and we were just making way more than we spend. You guys all know me, I’m pretty cheap, right? Very frugal. I don’t spend any money at all. I don’t have any expensive hobbies. I don’t like cars. I don’t like anything. So here we were making all this money that we couldn’t even spend or didn’t want to spend, and we were working our butts off until at one point, Jen came up to me and she said, and she was in tears.

04:22
Not the happy kind. And she said, hey, I don’t want to do this anymore. Like, why are we doing this business? The reason why we started this business was so she could hang out with me all the time. Right?

04:40
So yeah, so we had this talk. And at that point, we stopped all the revenue goals, because money isn’t a good measure of anything, And we basically remembered why we started the businesses in the first place. And at that point, we focused more on the processes, the automations, that we could take her out of the business more, take myself out of the business, and just really make enough to be happy.

05:09
Here’s the thing, I run a podcast. It’s called the My Wife, Quit or Job podcast. And at this point, I’ve interviewed over 460 entrepreneurs who are just killing it online. They’re all making seven, eight, even nine figures. And if you’ve ever listened to my podcast, it’s always like rah rah, we’re always congratulating the entrepreneur. But when I hit the stop button, that’s when the real conversations start. And I always ask them, so there’s this one dude who,

05:38
who hit $2 million in six months. And in that episode, was like, oh man, that’s incredible. When we were recording, as soon as I hit stop, I was like, man, how sucky was that? He’s like, oh my god, it terrible. It the most stressful time of my life. Because when you grow really fast, that’s actually not fun. It’s not comfortable. And it sounds great. And what you don’t realize is that there’s actually a lot of successful people out there who actually are not happy with their personal lives.

06:06
They’re killing it in business, but they’re actually just not happy. I interviewed this billionaire, and he was great on the interview. And then when I hit stop, I was like, hey, so do you have any regrets for what you did? And he was like, yeah, I lost my family. I got a divorce, and I don’t really see my kids much anymore. And he’s like, that’s his biggest regret. And then I just kind of asked him, what would you do to change that? And he was like, I don’t need all this money.

06:34
I don’t need these private jets or anything like that. If I could have my family back, that’s what matters to me. And so I was like, why can I hit record again? Can you say that? But that’s the thing about the media. Recently, our family was on CNBC. I don’t know if you guys got a chance to see that. You just have to realize that the media is fake. There’s this one part where, I mean, it’s not entirely fake, but there’s this one part where,

07:04
the videographer wanted the kids to just run in the kitchen and go, oh, daddy, what’s for breakfast? Right? And I was like, oh, we made waffles. Oh, and there’s cereal for you. And then I poured milk and whatnot. You should see the mornings in our house. It’s like, get your butt out of bed. Put on your clothes. Go eat breakfast. And then they’re out the door. just whenever you see the news about any entrepreneur you see in the media, it’s

07:33
Probably not as good as it’s not reality basically is what I’m saying. So back to the book. So the book is actually divided into two parts. I am a firm believer that everyone here needs to have some sort of side hustle. Even if you love your job, it doesn’t matter. You’ve got to have something on the side because that something on the side could potentially turn into something big. And it gives you options. You notice right now in the valley, mass layoffs. I think Facebook just announced their second layoff.

08:02
I think Google is having more layoffs, right? I have friends who are not happy with their situation, but they don’t have a choice, right? They have to stick it out at their jobs.

08:15
And so these side hustles, and I’ve met so many people like this, where you’re into something, right? Let’s say you’re into underwater photography. You start a YouTube channel or a blog about that. And you develop an audience, and that becomes a second income stream that could potentially be something big. Like when we started our store selling handkerchiefs, like, I mean, I was a little, you know, handkerchiefs, it’s not very masculine, right? But it was a side gig, and it turned into something big. It’s a seven figure business.

08:44
When I started MyWifeQuitterJob.com, it just a blog, just writing. I got inspired by this guy named Steve Povlina. He wrote this post called How to Make Your First Love Dollar. And in that post, he revealed that he was making $4,000 a day writing. And it’s just this random dude, right? I was like, OK, I got a stamp for education. I should be able to do that too. So I started writing. And I didn’t have anyone reading it for the longest time. It took three years before it made

09:14
six figures. But then once it started catching traction, it shot up. And this is just a side also that I just did on the side. I just set aside a portion of my schedule every single week. And Sunil knows this, right? Because we’d go to Russian Math, and we’d be in this coffee shop, and I would just write my blog post. He wanted to hang out and talk, but I was like, I just got to pump out this blog post. I just made it part of my routine to do something, and then it became something big. Three years ago, I started a YouTube channel.

09:44
Same thing, I just committed to doing one video a week. Just one video a week, and it took a while, no one was watching me. Who wants to watch a middle-aged Chinese dude, right? But within three years, that YouTube channel, just the ad revenue, supports the whole family and pays all the bills. Making the other businesses just kind of gravy now, right? You have to have something on the side just in case something happens. And everyone here is capable of this, and everyone here is actually brilliant. I know almost everyone here.

10:12
It can be done. just takes consistency. It’s really all it is. So the first part of the book is about figuring out what that side hustle is going to be. The advice that I always give, is to pursue something that you’re already into. Like, Yuji’s into electronics and games. Sorry, Yuji, I didn’t mean to call on you. So if he just started anything, piece of content, just documenting, like the guy buys a new piece of electronics every single

10:43
Every single week. But as someone who’s a friend of his, I want to know what he’s buying. I want to know about what he’s buying and what he thinks of all these pieces of electronics that he’s getting. So if he just documented it, I bet it would do well. It might take some time, but I bet it would do well. And who knows? It could be that side hustle that could make a lot of money. It could be the next big thing. So that’s the first part of the book. The second part of the book is about sustaining.

11:10
A lot of people start businesses and they get carried away with the money, like I did earlier when I told you guys. And what ends up happening is you feel like you need to do everything yourself. And you find that the more money you make, the harder you have to work. Those of you guys who know me know that I’m pretty lazy, actually. Right, Atsushi? Atsushi, yes. So the second part of the book really is about automation.

11:38
and putting systems into place so that you actually don’t have to spend all of your time doing it. And just to be clear, the businesses I’m talking about are smaller businesses. Like if you want to start like the next Amazon.com or the next Facebook, then you probably need to work really hard and get money and that sort of thing. We’re just talking about small businesses here. Because whenever I talk to someone who’s in business, almost all the people that I’ve ever interviewed didn’t start their business to start the next $100 million or a billion dollar company.

12:07
They just want to make enough money so they don’t have to worry about the money. So those are the types of business we’re talking about here. And we just happen to be living in this era right now of artificial intelligence, which is amazing. You can literally automate so many things with a computer. I’ve had writers on my staff to help me with the blog. I’m probably not going to use them anymore because of AI. And so if you haven’t experimented with ChatGPT, Mid Journey, or any of the AI tools,

12:37
You should do it.

12:40
So the second part of the book is about automation and really figuring out what you want to do with your time. You guys ever heard of the four burners theory? Anyone here? OK. The four burners theory states that your life is composed of four burners. Work, friends, family, and health. And the theory states that in order to do one thing well, you have to turn off at least one of those burners.

13:09
And if you want to do something really well, you have to turn off two of those burners. And if you’re like Elon Musk, you probably have three burners turned off and your work burners turned way up. Basically, the theory is about priorities. You have to figure out what your priorities are because you can’t do it all. Like if you try to run your business, maintain good health, be with your family and that sort of thing, it just really can’t be done. So you have to make a choice. And my choice has always been family.

13:40
And my wife’s too, right? Family, right? Just checking, just checking. And then we’re always all juggling things also. And the other thing, the other way I think about this is we’re all juggling all these balls in the air, but some of the balls are made out of glass, and some of them are made out of rubber. And so the glass ones are the ones that are precious. Like you don’t, never want to drop that family ball because it could shatter.

14:07
But the other things, you just need to figure out what the rubber ones are and what the glass ones are.

14:14
think that’s it. So I think you guys will really enjoy the book. By the way, if you do end up purchasing the book today, there are bonuses that come along with the book. So if you sign up, there’s a form which I’ll email out to you. But you’ll get access to a three-day workshop that I’m giving on how to get started in e-commerce if selling online is your thing. There’s also a two-day workshop in there that will teach you how to make money with blogging, YouTubing, and podcasting, which are the three things that I do.

14:45
And starting in June, I’m actually giving this six week, what I call family first business challenge, where I’ll be in there in a Facebook group, helping you guys figure out what your next title is gonna be. And so I’m trying to make it a no brainer for you guys to pick up the book. And I really do think that this is the way things are gonna be going forward. A lot of people making money on the side, just planting a bunch of seeds that could potentially grow.

15:14
into a real business someday. Thank you, that’s all I got.

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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.

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460: Insider Tips for Snagging a Traditional Book Publishing Deal And Becoming A Best Seller With Jeff Goins

460: Insider Tips for Snagging a Traditional Book Publishing Deal And Becoming A Best Seller With Jeff Goins

I’m thrilled to have Jeff Goins back on the show. Jeff is an accomplished author and the founder of Fresh Complaint, a company that helps authors turn their books into bestsellers. Jeff was a key player in shaping my book, ‘The Family First Entrepreneur’.

In this episode, we’ll cover the nuts and bolts of writing a traditionally published book, and walk you through my own experiences in the process. Hope you enjoy the episode.

What You’ll Learn

  • The ins and outs of writing and publishing a book
  • How to get a book deal
  • A behind the scenes look of writing my book The Family First Entrepreneur

Other Resources And Books

Sponsors

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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 dig deep into what strategies they use to grow their businesses. Now, first off, my book, The Family First Entrepreneur, officially comes out tomorrow. I’m so excited. And as a result, this is the last call to redeem the $690 in free bonuses for getting the book. You’ll receive a three-day workshop on print-on-demand, a two-day workshop on how to make passive income with blogging, YouTube, and podcasting,

00:27
and access to my six week Family First Side Hustle challenge where I will work with you in a private Facebook group on your next side hustle. This is going to begin in June. So grab the book over at thefamilyfirstentrepreneur.com. All right, so the book comes out tomorrow. So I felt that it was only fitting that I bring on Jeff Goins who helped me tremendously with the writing of the book. We’ll go over the ins and outs of writing a traditionally published book and everything I had to go through in the entire process. Enjoy the episode.

00:57
But before we begin, I wanted to thank Zipify apps for sponsoring this episode. Now I’ve been teaching e-commerce for over a decade now, and I’ve been recommending one-click upsell for years. If you want to increase your revenue up to 10 % or more instantly without doing much work, one-click upsell lets you add both pre and post purchase upsells to increase your average order value. This solution is almost guaranteed to boost your sales and the best part is that Zipify only charges you when it actually generates you more revenue.

01:26
Zipify also offers an easy to use page builder so you can build your own landing pages and themes without knowing how to code. For more information, go to zipify.com. That’s Z-I-P-I-F-Y dot com. I also want to thank Link Whisper for sponsoring this episode. Now most of you who follow my blog over at mywifequitterjob.com know that I’ve increased the search engine traffic almost 4x in just the past year. And a large part of that increase was because of Link Whisper. Link Whisper is a WordPress and Shopify plugin

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02:24
The Profitable Audience Podcast covers all things related to content creation and building an audience. No topic is off the table and we tell like how it is in a raw and entertaining way. So be sure to check out the Profitable Audience Podcast on your favorite podcast app. Now onto the show.

02:45
Welcome to the My Wife, Quit or Job podcast. Today I’m thrilled to have my buddy Jeff Goins back on the show. Last time he was on, it was 2017, episode 166, where I showered him with praise for being a bestselling author. He’s the author of many books, including a national bestseller called The Art of Work. But the reason why I’m bringing him back on the show today is because he was the one who helped me with the Family First Entrepreneur. And as I mentioned in my last solo episode,

03:13
Sometimes you just get lucky with who you meet because I would not have been able to finish this book without him So in this episode, we’re gonna talk about what it takes to write a traditionally published book and How much of a pain the ass I was as a client and with that welcome to show Jeff Hey, Steve, good to be here. Yeah, so I have to ask you this publicly last time I had you on you had a course I think you were pumping out masterpieces yourself because you’re one of the best writers I know

03:41
But then you decided to start fresh complaint and do client work. Is this because real artists do in fact, starve? Uh, that’s layered question. Uh, how did, how did I get into, you how did I get out of product work and get into service work? Um, so, uh, real artists do indeed sometimes starve. did, I did discover that. Um, and I think you didn’t ask this, but I,

04:11
It, I have learned that authors always write the books that they need themselves. And that when you are working on a book, somebody told me this years ago that this, like your life will always test your belief in the subject matter that you’re writing about. For example, if you’re writing a book about family first entrepreneurship, there is probably a temptation to not put your family first during the process of like writing and promoting a book. Yep.

04:40
Uh, when I was, when I wrote real artists don’t starve, uh, I had some financial challenges while I was working through that book and, it is kind of interesting, right? Like I think that, that the work is always kind of a mirror back to you. it’s, it’s, it’s when I write a book, I’m always going, do I really believe this? And I think it just creates a heightened sense of awareness where I’m paying attention to my life. Anyway, that’s not why I started a writing and editing agency.

05:08
I think the long story short is I got bored with working with people that were somewhere far out there. And I sold, you for those who don’t know, was selling online courses for years, had tens of thousands of students over the years, made millions of dollars doing that, been doing that since 2012. And I just kind of got bored. And I think I got a little bit tired of selling a $500 kind of go at your own pace, self-guided video course.

05:37
and wondering if people were succeeding. I would hear from people once in a while, but for every one or two people that said, your course changed my life, there were dozens of people that I never heard from again. And I could look at the stats and see not everybody was finishing the courses and they were getting harder to sell. And I was getting bored of coming up with the next marketing trick to get people to buy.

06:07
The long story short is I had a midlife crisis. went through a divorce. Uh, it was 2020, uh, and courses weren’t selling as well. And, um, I had got, I had started a side gig, uh, writing books for authors. Um, and the first book that I wrote as a ghost writer was, um, for my friend, our friend, Grant Baldwin, who, was the first. did not know that he was the first. And you were actually my second client. Um,

06:36
And there were books that were published in between, but, um, as soon as grant was done, I think he connected us pretty shortly after that. started kind of kicking the idea around and it just took that long to publish a book. Yeah. And so, um, it was harder to sell courses. I wasn’t into it. I wasn’t interested in figuring out the latest innovation to convince people to buy my info product. And I was enjoying, was enjoying clients paying me tens of thousands of dollars to.

07:06
uh, work with them on a book, which I love books. Uh, now there were, there were pains in the ass that I was not expecting about, you know, running a service based business that we can talk about if you want. Um, but it just sounded fun and new and, interesting. And, in, uh, 2020, kind of had two businesses. was doing the ghost writing and editing, uh, stuff, helping authors write and publish books. And then I was also trying to keep the info product business going.

07:34
It was too much to manage and in 2021 I sunsetted all of my courses. did a big flash sale, sold them all, put them in a vault, can’t buy them anymore, and then went all in on the agency work. Wow. I mean, I could have told you that running an agency would have been a pain in the butt. Well, while we were working on this book together, I was like, oh yeah, this is, you know, this is harder than I thought.

08:01
But you don’t know, you don’t really know how hard something is until you do it. But I am enjoying it. I’m enjoying the challenge of learning how to run an agency. And I do miss selling products. I’ll probably get back into that eventually. Because I think they actually pair well, nicely together. I mean, there’s stuff that I have to share with the world that, you know, people aren’t going to pay $50,000 for that can be, you know, that people still need to hear and understand. About half of what I do now is

08:31
is just educate people on the process of what it takes to publish a book. Yeah, I was just gonna say it’d be a shame if you didn’t write another book. But I totally read another book. Yeah. Yeah. Yeah. All right, Jeff, let’s, let’s talk about writing a traditionally published book. In a prior episode, I had my buddy Chandler bolt on to talk about self publishing. When I came to you, I had no intention of self publishing. And

08:58
but I didn’t know what I was getting into. And I’m just kind of curious, your experience with me, is that very similar to some of the other people that you had? Because I came to you, I had like thousand blog posts, I probably had 400 videos, I had like 300 podcasts, and I kind of just dumped all that onto you. Yeah, it is a type of book that we see. I would say there’s a couple of different types of books that we work on.

09:28
One is somebody has an idea and nothing else. And we’ve got to dive into the process of figuring out what that thing is together. I’m working on a book right now where the author has a big platform, know, well known internet personality. And they had a previous book, you know, that was a big book as well. But this person just has an idea.

09:52
You know, and, and they don’t have a lot of content around the idea. They’re, they’re sort of learning what the book is through the writing process, which I’ve written books like that before I get it. Um, that requires lots of this, lots of FaceTime, lots of interviews, lots of kind of teasing out the concepts, writing, rewriting. Um, I’ve got a couple of books that I’m working on right now that are like that. So that’s one type is they have an idea, but not much else. And you have to figure out what it is. You got to pull the book out of them. It’s, it’s in them. The second.

10:21
Um, which is probably the easier kind of book to write. It’s the kind of book that you and I worked on kind of book that grant had where typically, um, you know, the person has like an online course, they’ve got an info product there. They’re no stranger to writing podcasting, creating content. And, and we just have to figure out where is the book in all of this stuff, right? Like what is the through line that makes sense and, how can we build a book out of this content?

10:49
Um, now as you know, I mean, it wasn’t just like, we’re not just recycling blog posts. We still want to like structure the book. There’s a lot of, there’s a lot of content creation that happens, but there’s breadcrumbs out there that we’re sort of piecing together. Um, and I don’t know, maybe there’s a third type that I can’t think of, but those are probably the two main types that someone comes in and they say, Hey, I want to write a traditionally published book. What are you asking them? Like,

11:18
from what I was told from some of the people that I talked to, not everyone can get a book deal, right? So how can you, do you make any guarantees? How can you tell if someone’s going to be able to get a book deal and be traditionally published? never make guarantees. And I typically don’t take on projects that I don’t think will succeed. Meaning I wouldn’t help somebody try to write a book proposal and sell the book to a publisher if I didn’t think it was going to end up in a book deal.

11:47
because it’s a waste of time for both of us. And then I’m getting paid for something that literally didn’t like, there’s nothing. If you, if I helped you write a book proposal, this is how we started working together. Um, you paid me to write that book proposal and, and I did that going, Hey, that’s a good payday. Um, but, uh, if it doesn’t result in a book deal, you’re not happy, know, like, it’s not like you could do anything with a book proposal. And I, and I did that because I was like, you know, hopefully this is going to lead to a book deal.

12:16
that leads to a bigger payday for me and we can work on this thing together and both feel good about writing a book that hopefully goes out into the world and succeeds. So for those who don’t know, if you’re going to get a traditional book deal, the first thing that you need is a book proposal. And before you get that, you want some sort of platform. And I wouldn’t work with somebody who had fewer than say 10,000 people on their email list because a publisher or an agent is just not going to pay attention to it.

12:43
Um, and they didn’t have some sort of like original kind of interesting idea. Um, what was so interesting to me about you is running all of these businesses, being, uh, an achiever, know, like being a driven, ambitious guy and, putting your family first, having your life relatively balanced and, you know, being able to make it all work with being a husband, being a dad and, and being around for your kids’ games and stuff. I thought that was a cool idea.

13:13
Um, it’s something that lots of people talk about. Few people do. It’s one thing to say family first. It’s another thing to do it. So you had the platform, you had an interesting idea. Um, and, and I thought this will probably lead to a book deal and, it felt like a fun thing to, to work on. Do you have like a set of minimum requirements? So you mentioned 10,000 email subs. What else? I know there’s nothing hard and fast, but I literally wouldn’t work on a, I wouldn’t work on a, I wouldn’t.

13:42
I wouldn’t try to help an author sell a novel. wouldn’t work on any fiction. I would work on a memoir, that is typically we’re working on nonfiction, advice, self-help, personal development kind of books. But I wouldn’t work on something that one, I didn’t believe in, or two, just felt boring to me. Like if you said, Jeff, I wanna put together, I just wanna, here’s all my blog posts, build me a book out of this, we’re gonna call it.

14:10
My wife quit her job and which is not a bad name for a book. Um, but like there was, there wasn’t like any umph in it. There wasn’t something that got me excited. Um, that’s my first spiel. I think I shared it with you when we talked. It’s like, Hey, like I can’t work on something that’s boring to me. Cause I’ll just check out and I’ll refer you to somebody, but, but I won’t work on something that, doesn’t personally challenge me in some way. You’ll refer me to one of your enemies. mean? Yeah.

14:38
There’s, mean, this is a pretty generous space. Uh, the space of ghost writers and collaborators, collaborators, editors. And we all know that, um, you can’t take on every client just due to time. And so there’s, there’s a number of writers that I know that do good work that either, um, the author can’t afford me or it’s just not a good fit or I don’t have time and they’re not willing to wait. Um, but no, this was, this was fun. It was exciting. And, um,

15:07
I’d only, when I took you on as a client, cause we started with the book proposal, uh, I only done one book before that. You didn’t tell me that when I signed on. Yeah. Well, there’s certain things that you do say in a sales pitch and certain things that you don’t. Okay. So this proposal actually took, ended up taking a year. It did. Is that typical or it’s not a typical, I mean, I tell people it takes a minimum three to four months.

15:37
Um, and, and then there, the way we do it, there is sort of a progression of steps that has to happen. One, the author and I and our, and our team, um, uh, I work with a small team. It takes us about three months to write the first draft of the proposal. Uh, then we want to get an agent on board, right? We want to, not an Asian, that’s you. We want to get an agent on board to represent it. That might take another two to three months of going back and forth so that the agent is pleased.

16:07
And then they’ve got to shop it and get it in front of various publishers. And that took, I don’t know, a month or two. can’t remember. Yeah. Can we just talk about the agent? So my agent’s Roger. Shout out to Roger. Why do you need an agent? I was wondering that because I was looking at the contract and you know, they get a cut. they do. They get 15 % of everything, advance royalties, et cetera. You don’t need an agent. I mean, that’s the bottom line. You can do a book deal without an agent.

16:36
It is the equivalent to buying a house without a real estate agent. And people do that. It’s not, you can totally do that. Um, and I, I personally wouldn’t do it I don’t know that much about real estate and I don’t know that much about contract law. And, and so, um, an agent is, um, sort of like legal representation. It’s like having a lawyer. They’re not a lawyer, but they typically have a legal team. Um,

17:03
because they’re an agent is often part of an agency or they’ve, they’ve got a really great boiler template contract. Um, they’re looking for loopholes or looking for ways that the publisher might try to screw you and you not be aware of that. Um, and, uh, I like working with agents because many of them, ours included Roger, uh, come from publishers. have a background in publishing. Roger was an editor at Harper Collins, the publisher that you ended up working with and they help make the book better.

17:32
And, um, so why do need an agent? They usually help you get more money. So they pay for themselves. That’s, that’s generally understood in the marketplace that unagented authors make less money. Right. So, you know, if you could go get a hundred thousand book deal, a hundred thousand dollar book deal on your own, um, you know, an agent should be able to make you an extra, you know, 20, 30 grand to sort of pay for himself. So, you know, that’s the thing. One thing too, you.

18:01
Just, I mean, you’re signing a contract and you’re signing an intellectual property contract, especially if you’ve got courses, any sort of content IP, most of these contracts with publishers say that they own any derivative products or projects. Um, so if you had like, let’s say your core, you a course called the family first entrepreneur course, and you wrote a book about that.

18:25
depending on how the contract was worded, the publisher could lay claim to that. had a name, I had a client where they had to rewrite the contract because of that, because they were literally naming their book with their entire content system. Their platform was, was already named after and the way the contract was written, it would have been a bad deal for them. And it’s not to say that the publisher would have laid claim to that, but they could have. it’s legal protection.

18:50
Um, and I would say, you know, it, it does make a good agent makes the content of the book better. And I think as, as we experienced with Roger, he helped us figure out, um, like how do we position this book in such a way where we’re going to get the best book deal with the best publisher that’s going to lead to the best book possible. Yeah. So did you use an agent for all of your books? Um,

19:17
Yeah, I have one self published book and I have four traditionally published books and an agent represented me on all four of those traditional books. So now that you’ve done it four times, you would still go with an agent, even though you kind of know the ropes? Probably. Yeah, because I still don’t, you know, I still don’t read contract law very well. If I didn’t use an agent, I do have what a lot of agents have.

19:47
that most authors don’t have, which is I have a network now. I could call up any number of acquisitions editors at Penguin Random House, Harper Collins, you name it, all the big publishers, and probably get the attention of a publisher. But I’m not a great negotiator, and it’s never, I don’t enjoy negotiating on behalf of myself. But I do have the contacts, and if I didn’t have an agent,

20:17
I would get an IP lawyer to look at the contract. But an agent typically is bringing relationships, they’re bringing the legal, they’re bringing a little bit of editorial, and they’re just making sure that you get the best deal possible. And they also bring the Rolodex, right? Yeah, that’s right. For the most part. All right. So if I remember the process is kind of a blur now since it was

20:45
I want to say a couple of years ago now. Three years ago. I remember just hopping on a bunch of meetings with publishers and then Roger just set a date in the future, some arbitrary date and they all put in their bids and we just kind of selected the winner. That’s right. Yeah. And then it came to writing. I am curious about the writing part. So I know how we did it. You know, I had all this content already and it just kind of needed to be molded into something cohesive and whatnot.

21:16
Is this typically how you work? Yeah. I think ours was fairly asynchronous. Sometimes I do more meetings with an author if it’s necessary. I think we met only a handful of times, recorded those, transcribed them, and

21:37
Uh, started doing what I call building the book, which isn’t quite writing where we’re just kind of taking words and we’re throwing them on the page. If you remember the first couple drafts of the book were ugly and and it was, bad writing. Like a book has to be really bad before it gets really good. Um, I know of no other way to write a book. Um, so is it typical? Uh, again, I think there’s kind of those two types of books. There’s the type of book where.

22:04
The author has the idea in their mind, but they haven’t really created much content around it. In which case we’re getting together doing weekly zooms. I’m asking them questions, uh, transcribing that, turning that into writing, editing that, turning that into like stuff that they get to look at and respond to. Uh, the second type is kind of what we did, which is you have a lot of this content already created and we just kind of have to start putting the pieces together. And then you would go through the manuscript and say,

22:33
I’ve got a story about this. Go check out this podcast. Yeah. I mean, I probably read the thing like 25 times. No joke. You probably read it more than I did. Oh yeah. Easily. I’m sure. And then I had my wife read it. Yeah. Yeah. That was, um, but you did a good job in my estimation. You a good job of not, um, doing that too early, you know, trusting the process and, then when it was time to make it really good and you were signing off on pieces of the book, um,

23:03
Yeah, you were pretty meticulous with it in a good way, I think. So the book, I want to say it took a year, right? a year. That’s right. And then now we’re at the phase where I’m at now, which is marketing. And you had a lot of input during the marketing process. And then you introduced me to a coach, which I’m using. I know when you wrote your best seller, was the art of work, right? Yeah. Real artists don’t starve.

23:32
Wall Street Journal as well. Yep. Oh, it did. Okay. Which one sold more? Did Art of Work? Art of Work sold more copies. Yeah. Okay. It sold almost 100,000 copies. Right. Yeah. So that’s crazy. how did you, how many did sell in week one?

23:49
Uh, think we pre sold 15,500 books and about 8,000 of those books, uh, shipped in week one and another 7,000 or so shipped in week two. were intentionally trying to, uh, game the system a little bit to hit the New York times bestseller list. And we did not achieve that goal. So I’m curious though, I know I’ve been trying to hit like five or 6,000 books and that’s been a

24:19
That’s been a haul. Can you just kind of describe like what your audience size was when you hit those crazy numbers? had 50,000 email subscribers. And then I had social media, but we tracked all this stuff. And I had a tracking link, I create affiliate products in my old shopping cart. And I had a tracking link for every different type of medium, email, I had a bunch of affiliates that were helping me sell the book.

24:48
but I had one for email, I had one for Facebook, I had one for Twitter, I had one for my blog, and then had one for everybody that was mailing on behalf of me. And it was like 90 % of the sales came from email. so I basically had a 50,000 person email list, and then I had a network of online marketers that were willing to help me promote the book, and we did a free plus shipping campaign.

25:18
Oh, wow. Okay, so you were she was intense, man. As I told you, it was it about broke me. The hardcover book on a free plus shipping offer. You’re you’re taking a good chunk out of that, right? I mean, it it was a paperback, but it was 1499. And we we did 699 shipping and handling. And so I was eating about $8 on every book. So it launched in paperback. Oh, yeah. Yeah. Interesting. Does that happen today? It can this was

25:50
This was a book that didn’t really know what it was. was published by a Christian publisher. It was like a career book. And I had written a couple of smaller books before then, but I was trying to leverage my online business connections. So I intentionally wrote a book that my friends would be able to promote. And I didn’t even know. Like when the book…

26:17
was getting ready to come out. was is this coming out of paperback or hardcover? Sometimes authors don’t know the right questions to ask. And sometimes publishers don’t always hold your hand and walk you through the process. Right. Um, which is why I like to do that. Like when I’m working with a client, I think of myself as a Sherpa, like I’m trying to guide you through the process and help you think of the things that I didn’t know to ask until I wrote five of these books. Um, so is it common? Yeah, it happens. This was not a business book. This was like a personal development.

26:47
um, career advice book, um, specifically targeted at younger people, I would say. And so we were trying to keep it, um, cheaper and, more cost effective. maybe that, book was a lot older than real artists don’t starve. You hit the wall street journal for that one. Can I ask how many copies you hit on, like the first week? 2900, 2,000. Yeah. Not a ton. And that was a primary or email list. Cause I remember when we were talking, you were like,

27:15
Yeah, Steve, you want to get on at least 150 podcasts. I’m like, Oh my god, that’s like, I mean, I have 150 podcasts I could go on. Sure. That’s like an hour each. And I was just calculating the time commitment just to do that. Yeah. And it was something that I don’t think I could have done. think that was smart of you. I mean, my my approach to my approach to hitting all the lists in the past has been kind of this shotgun approach. And I think it was this it was very smart the way you thought about this and and

27:44
ran your strategy when I did, when I did art of work, I probably did 250 podcasts. Um, I did everything. mean, it was like desperate. was my, my ego was, was desperate for a, for a hit and, it, and it worked, you know, I hit every bestseller list except for the New York times list. Um, and it sold 50,000 copies in the first year and led to a major book deal. It changed my career as an author for sure, it,

28:14
It was hard. And then, so the next time I did it, I was like, I’m not doing that again. Real Artists Don’t Start was a business hardcover book. I did a number of podcasts, kind of like you, maybe 20, 30, something like that, a bit more strategically chosen. I had a number of folks promote it, and then I promoted it to my email list, which was a bit larger at that point. It might have been 100,000 at that point. I’m curious, so back when you were…

28:42
I guess we’re podcasts even around back during the art of work. probably aren’t as big. Yeah, that book came out in 2015. Okay. Okay. Yeah. So you said you tagged everything. We tracked it all with affiliate links. Yeah, as much as we could. So the 200 podcasts, and again, this is really hard to track on a podcast, but what percentage would you have affiliated with the podcast? There were a number of podcasts that that moved.

29:10
a good chunk of books. was on Jordan Harbinger, who’s a mutual acquaintance, friend of ours. He still was on the Art of Charm. I mean, that book like that single podcast moved a couple hundred books pretty quickly. Wow. That was, that was the exception, not the rule. You know how hard it is to just move, you know, sell a few hundred copies of book. It’s not easy. So the breakdown was about a third of the sales. pre-sold 15,000 books.

29:38
About 5,000 of those books came from my email list, which was good. That’s a 10 % conversion. That’s fantastic. It was awesome. Now keep in mind, it was a free plus shipping offer. was like, I’m going to give you the book for free. And it was a six week mailing campaign to my list. The other two thirds came from affiliates. So, you know, think of that however you want to think of it. But really if you want to sell a bunch of copies of a book and you’re not

30:07
getting other people to promote your book, you’re leaving two thirds of the sales on the table. So if you’re just writing a book to sell to your audience, you’re missing it. And this is across the board. Um, Mark Manson told me about, uh, the subtle art of not giving an F that, um, he could track maybe 50,000 sales, uh, of his book, uh, that had sold, you know, 12 million copies or something worldwide.

30:36
50,000 he could connect to his email list, which was a million people at the time. Wow. So it really is about you’ve got to have a big idea and you’ve got to plan it in a bunch of fields and see what grows. So a third came from my audience. The other two thirds came from people promoting it. Most of which happened through, um, emailing, not podcasts, but you know, I would say there were a couple thousand cause I did so many of them. There were a couple thousand books that we sold via podcasts.

31:06
You mentioned affiliate. Does that imply that the people helping you promote got a cut? They got a cut. So what we did was we did, um, uh, we did free plus shipping and then there was an upsell. So I created a course for, for the book. There was a $200 upsell. And so the idea was all we needed was like, I don’t know, a 7 % conversion rate on the upsell to make back our seven bucks, right? We needed every X amount of person.

31:36
you know, every so many people to every 20th person, whatever it ended up being to spend $200 to make up, you know, everything else. We ended up having a 4 % conversion rate and I had to find a way to make up the difference, but that’s a whole other story. And so if you were an affiliate, I gave you whatever it was, maybe 40 % commission off of the $200 upsell. Interesting. So they buy the book and then you try to sell them a course on

32:06
What was course? was, it was a course on how to, the book was about how to find your calling, how to discover your purpose in life and do the work that you were meant to do. And so I, basically took every chapter from the book and turned it into a lesson. And the big surprise was that did not work well. That people was thinking to myself 4 % isn’t horrible. Wasn’t bad, but I had, I don’t know, $200,000 in expenses. mean, that whole thing went sideways because

32:35
Uh, I sold it internationally and so a thousand people in Australia bought the book and I was having to spend $20 in shipping per book to ship it over to Australia. There was all kinds of crazy stuff. So I had about 200 grand that I needed to make up and I had $70,000 in my bank account. And basically I done the math that if I sold, you know, 10,000 books at, know, if I sell 10,000 books and I put whatever it was, seven, seven bucks into it, that if.

33:05
I didn’t get anybody to convert. I’d lose 70 grand. And I was like, okay, I can like, I’ve got 70 grand in my bank account. It would clear me out, but I’d be fine. And that is, that’s what I thought was the worst case scenario. That was not the worst case scenario. The worst case scenario was I ended up, you know, having an unexpected $50,000 tax bill. had a $150,000 in expenses because we sold more books than we thought. We had all of these other things going on. Um, and so a couple, I learned a couple of things. One, the worst case scenario.

33:34
Could always be worse. think you, you know how that goes. Yeah, I do. Yeah. Two, um, uh, people that buy a book don’t necessarily want the video version of that book. Cause I haven’t read the book yet. Yeah. Yeah. Um, and three, this was the good lesson that I learned even when I went, when I feel like my back is up against a wall, I can always pull a rabbit out of a hat. And basically what happened was I was

34:02
essentially facing bankruptcy, I thought, you know, I was completely over leveraged. had never taken on any debt in the business. was super conservative and I got this platinum Amex card to run all of these purchases, you know, and I had a $60,000 balance on that and this line of credit over here. It was just crazy. And then I, and I, I think I reached out to Derek Halpern and I was like, Hey man, I got to figure this out. And he looked at my sales page and he’s like, that’s a shit show.

34:31
And he goes, find one thing that everybody wants and sell it to him. I don’t care if it has anything to do with your book. And I wrote up this, this, I went back to what I knew, which was most of my audience is writers. They want to build a platform, make money. I’m going to, I’m going to resell an old course, pair it with the book. And I, I had about, uh, two, was, I was upside down. I was about, had about $200,000 in debt because of this book launch. And I made about 250 K in two weeks with this.

34:59
a product launch that I just kind of pulled together after the book. That sounds so stressful. It was so stressful. Yes. There were parts of your book that I could relate to in terms of like, you know, just hustling for some reason to get to some goal and then it almost costing you everything. You know what’s funny about all this is, uh, yeah, so I, I was taught by you and my book launch coach to not sell the book, sell the bonuses.

35:27
I didn’t do the, I didn’t have any upsells. I just gave a bunch of stuff for free for buying the book. I wonder if that, if your strategy would have been better. Well, the cool thing is, you know, like it’s not like you missed an opportunity, you know, so you sell, you know, five, six, 7,000 books in the first couple of weeks. And then a month after that, you know, you’re going to have readers, you’re to have people who have read the book and, are now,

35:57
converted and a really good thing for you to do in the next month or two is to sell them your course, sell them the e-commerce course, which I think is, um, is a perfect fit. What I learned was you don’t have to create a new product around the book. The book is a new product and it should connect everything else that you sell. Right.

36:17
I don’t know that an upsell to a book always makes a ton of sense because they’re like, no, I’m waiting for the book. I want to read the book. And I heard that from a lot of people is well, I’m to read the book first before I take the course. that makes sense. Yep. Well, can we just talk about the effects? So you did sell a ton of books. Yeah. Uh, were they measured? Were the effects measurable? Like what happened? Um,

36:41
What happened? launched your, you said it launched everything, but what, what, happened was, um, every major publisher and every major agent, um, contacted me and they said, I’d love to represent you. I’d love to sign you for another book. talked to Malcolm Gladwell’s first aid, uh, agency that represented him. mean, kinds of crazy stuff happened. Um, and I got to connect with people that I, that I otherwise wouldn’t have gotten to connect with, um, that heard about the book and,

37:11
What was cool about the way that we did this because we ran it all through my shopping cart, not through Amazon. Everybody who pre-ordered the book, I had their emails. had 15,500 new emails. ended up being about 20,000 people when it was all over. That was cool. I I made millions of dollars off of those people over the following years, just them getting into my marketing system, you know, and hearing about products. And we tracked all that stuff for the next 12 months or so.

37:42
Uh, it led to a bigger book deal. Um, the, art of work, um, was a $50,000 book deal and the next book deal I got was $150,000 advance. That was, that was cool. It was a hardcover book. Um, I was now, I am now a bestselling author as a result of that book, uh, which was what I wanted. I wanted a title. Um, and nobody could talk me out of that. You know, I, I, you and I had similar conversations. I was like,

38:12
Yeah. Um, yeah. And, uh, and it was, it was a net positive and I’ll never do it again. That was my next question. Actually. mean, looking back, any regrets or could you have gotten, gotten the same amount for just without killing yourself with three plus shipping? Yeah. Um, any regrets? Um, uh, I would do it differently now.

38:40
I would 80 20 it for sure. I don’t think a free plus shipping deal is a bad idea. You just got to know what you’re getting into. I would have done all the interviews. I would have just done emailing about 70, not quite 80 % of our sales came from like 10 major influencers, 10 major partners. Um, and I had a bunch of JV partners that were like, I did a webinar one time with somebody and like three people showed up, you know,

39:08
And instead of canceling the webinar, I was, you know, super nice and I delivered a pitch to buy a book for, you know, like three people. mean, was just, your conversion rate like 33 %? It was a killer conversion rate. I think it was a 0 % conversion rate. It was very discouraging to talk to three people. You know, they say if you just reach one person, it’ll be worth it. Not really. Although I guess you could have repurposed that content.

39:36
that you gave also, so maybe it wasn’t a net loss. Yeah, there was a bunch of really bad things that happened that I couldn’t have anticipated. Like Barnes and Noble, you can do this to this day. If you have a contact at Barnes and Noble, you can pre-sell a book to your audience, collect all of those orders, and then send a spreadsheet to Barnes and Noble with a credit card on file, and they’ll ship and scan each of those orders individually.

40:05
And I did that and Barnes and Noble didn’t ship the books. They kept them in a warehouse for about three and a half weeks. And so imagine you, Steve Chu, ordered a book from me, say three weeks before the book came out, and then the book comes out and the books are supposed to start shipping. Two, three weeks later, you see everybody’s getting their books. You see people can buy it on Amazon and get it the next day through Amazon Prime, and you still don’t have your book.

40:30
I was getting hundreds, because this was like an order of 3,500 books that Barnes & Noble was to ship. Wow. I was getting hundreds of emails every single day of people saying I had scammed them, I had lied to them, I had cheated them out of their $7. That was intense. So even though was good to get whatever 20,000 new emails through the book promotion and it was a net positive, I’ll probably never do that again where I act as the bookseller.

40:58
Um, and if I do, I’ll, I’ll, be a bit more aware because it turns out Amazon has a pretty hard job and I don’t want it. I don’t want to have to deal with tens of thousands of, mean, you know what it’s like. I don’t want to do it. Tens of thousands of angry customers who are like, where the hell is the thing that I bought yesterday that was supposed to ship? Yeah. That’s why I didn’t want to take orders for this book. I just haven’t submit the receipt, which is actually kind of a lot of work in itself too. Uh, if you want to verify them.

41:28
Uh, I actually, yeah. Yeah. I ended up just having someone verify them because you know, it’s a lot. It’s a lot. Yeah. Let me ask you this question. You said you had a bunch of orders shipped to Australia. Those books actually don’t even count, right? They did count because we bought them here and we shipped them to Australia. Oh, clever. Okay. And we did that with, we did that with, we did that with, um, Canada too. I see some books we were able to buy locally and shoot. mean, dude, like

41:58
It was crazy. Months later, I was like buying books on like, you know, some, I don’t know, some some random, you know, bookstore in Luxembourg, you know, that that carried my book, was shipping it locally to somebody for $23 or something. It was it was intense, man. Let me ask you this. Would you say

42:22
Authors who aren’t like super well known, like the books don’t sell by accident, right? Would you say that all authors who hit the best seller list have some sort of campaign going on? No, I would say most do. Um, and especially business authors. Um, but you know, Stephen King isn’t running a best seller campaign. course. JK Rowling. Uh, but even like somebody like Brené Brown, um, she’s got everybody knows her and she’s got such widespread appeal. She’s probably going to hit New York times list regardless.

42:51
she’s still probably running a strategic campaign. You know, she’s still probably got somebody. I don’t know that. I don’t know. Brene and, I may be wrong about that, but in my experience, uh, almost always there’s some sort of strategy. It is not an accident. Well, uh, last question, since, you, told me that you self published one book, uh, what are just, are your thoughts self versus traditional? So because of the,

43:21
nature of this work where I’m working on a few books a year with clients like I did with you, I get to see a lot more of the publishing industry than I did as an author. And I get to see it a little bit more objectively. I’m a bit less emotional than I would be if it were my book. Um, and I see the good, bad, and ugly, you know, um, all publishing deals are not the same. Um, all publishers, even though they might have big names or all publishing teams on various publishers are not equal. Some are.

43:50
great, some are not great. Um, and, uh, I’ve, I’ve worked on traditionally published books with authors where, where we realized at the end of it probably would have been better or easier just to self publish. Um, and, and sometimes it’s worth it. I would say if you want to hit a bestseller list, it is not necessary that you work with a traditional publisher, but recommended it’s harder to do as a self published author, um, for a number of reasons. Um,

44:19
If you want a higher quality editorial team, um, typically you get that with the traditional publisher, not always, but, typically this is something that you can piece together on your own, but it’ll cost you tens of thousands of dollars to pull that together. Um, and in terms of like, uh, uh, the other thing that I like about working with a traditional publisher is, um, if your book starts to move as your book is Steve, it makes it easier to get international distribution.

44:50
So it is likely that in the next year you will start getting offers through your publisher for translation rights. And it makes sense that, you know, they, they might want to publish, uh, you know, a Chinese version or a Korean version. Um, uh, it makes sense that, that, uh, they might want to do a Spanish version. And the way that works is publishers in those countries typically are buying the sub rights to publish your book from your publisher.

45:20
in their own country and that’s a hard, I’ve done that. have a self published book and I’ve sold into other international markets. It’s a bit harder to do on your own. And so if you want a book that you don’t need to make a ton of money off of, but it, it kind of establishes you as an authority and creates other income streams. Um, it’s still better to traditionally publish, but, I’ll tell you this. mean, I, um, I wanted, uh, since

45:48
2020, 2019, you know, I mentioned midlife crisis. started writing poetry, which is something I used to do as a kid. And I got back into it. And I’d been writing poetry just kind of as a thing that I do as a form of creative expression. And I wanted to publish a book of poems and give it to my wife for Christmas. And the easiest way for me to do that was to just publish it on Amazon. And so I designed the book myself.

46:17
I wrote all the poems, obviously, I designed the book cover, I did it all myself. And I worked with KDP, which is Amazon’s self publishing arm. And I had so much fun doing that. And I was like, this is kind of cool, you know, like, and I did it in two weeks, like I’d spent years writing the poems, but I laid the book out, publish it and had a physical copy in my hand, you know, it’s it’s sitting over here on our mantle. Yeah, in like two weeks. And I’ll probably do that again for some projects because I liked that I liked that

46:47
I don’t need to spend two or three years working on idea and jumping through this hoop and that hoop and whatever to get the product out. Um, so I would say, uh, I’m not quite ambivalent about it. If I had a big idea that I would have wanted to put out in the world, I’d still work with a traditional publisher. But if I had something that I just, knew my audience would sell, it was kind of a niche product or I wanted to make some good money and I just wanted to control all the costs, keep all the profit. would self publish. Yeah.

47:16
I think that’s what I got to ask that question. think that’s pretty much the answer I gave also. Yeah. Cause you know, it’s, like, you know, you’re not doing it for the money. Um, and you’re not doing it cause it’s, you know, easy. Um, but it is an authority play for sure. And if you do it right, it can create these ripple effects. mean, I’ve gotten international speaking opportunities as a result of, you know, writing real artists don’t starve the ING bank.

47:43
had me come speak at a symposium that they had in the Netherlands for artists. It was cool. Cool. Yeah. And that book didn’t sell super well, but it hit a best seller list. It’s been translated into multiple languages. You know, it’s, um, uh, one, two, three, four. This is the art of work. mean, like that’s, that’s a fun thing. That’s hard to pull off as an indie author. Yeah. Cool. Yeah. Jeff.

48:13
I’m not sure after this talk if anyone out there listening is gonna want to do a book but if they are Highly recommend you where can people find you? You can find our team at fresh complaint comm We help authors plan write edit and publish books we can do some of that or all of it and and if we can help, know, just fill out the intake form let us know and my job is to

48:40
Always leave somebody better than I found them. So worst case scenario, if you’ve got a book idea and we’re not a good fit for you, we’ll make some recommendations on what your next steps can be. I mean, just to be frank, I, there’s no way family first entrepreneur would have happened without fresh complaint. Although I did have some fresh complaints during the process, but maybe that’s a subject of another episode as they, they, as they all do now. Thanks. were, you were easy to work with Steve and I really enjoyed the process and

49:09
I felt really challenged working on this book with you. There were moments when I was working through the manuscript and I was like, oh yeah, this area of my life is out of balance. This book, just working on it, because I read it many times too, made me a better dad, husband, and entrepreneur. Thank you for the opportunity to work on it. really did affect me. Hope you enjoyed that episode.

49:36
And once again, this is the last call to redeem over $690 in free bonuses. Order the Family First Entrepreneur Now over at Amazon or go to mywifequitterjob.com slash book for more info. And if you want to publish your own book, head on over to freshcomplaint.com. And once again, I want to thank Zipify Apps. If you want to instantly boost your revenue with pre and post purchase upsells, go check it out over at zipify.com. I also want to thank Link Whisper.

50:04
Now if you want to take search engine optimization seriously with your blog, then you absolutely need an internal link tool like Link Whisper. Go check it out at linkwhisper.com. Now I talk about how I use these tools on my blog, 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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459: Unexpected Twists On My Book Publishing Journey – A Behind The Scenes Look | Family First Friday

459: Unexpected Twists On My Book Publishing Journey - A Behind The Scenes Look

Welcome to a new segment of the show called Family First Fridays.

Most of you know that for the past 3 years, I’ve been working on a book called The Family First Entrepreneur which is being published by Harper Collins.  

I’ve been getting a ton of questions about the process of writing a book so in this episode, I’m going to give you a behind the scenes look into everything that I did to get this book published by a traditional publisher and receive a 6 figure advance.

What You’ll Learn

  • My reasons for writing a book
  • Self publishing vs traditional publishing
  • How to write, publish and market your own book to a big 5 publisher

Other Resources And Books

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Transcript

00:00
You’re listening to the My Wife, Quit or Job podcast, where I teach you how to start a business or side hustle from the perspective of a father with two kids. Now, welcome to a new segment to the show, which I’m calling Family First Fridays in honor of my book, The Family First Entrepreneur. Now, today’s a very special episode because my book officially comes out next Tuesday, which is the culmination of three years of work. And I know that when Tuesday rolls around, it will feel somewhat anti-climatic.

00:27
but I did want to record a candid episode to describe all the work that I put in and the thought process behind everything. Now let’s start with the why. Why did I want to write a book in the first place? Now, contrary to popular belief, writing a book wasn’t really going to make me any sort of life-changing money or any money at all, actually. It probably won’t even have that much effect on my business. I’m just guessing this. And if there is a payoff, I knew that I wasn’t going to see anything for at least three years.

00:57
So writing a book obviously had zero to do with the money. Now, even though I did get a six figure advance for writing it, all the money, literally every penny of it went back into marketing the book. Now I had four main reasons for writing it. So one, for some reason, and I can’t even remember how this came about, I’ve always had writing a book on my bucket list and I never really considered myself a writer.

01:25
but I wanted to officially publish something at least once in my life. And along those same lines, I’ve always dreamed of walking my kids through Barnes and Nobles, actually at the time of Borders, but Borders went out of business, and basically showing them my book on the shelf. Incidentally, this is something that we’re gonna do Tuesday at the Barnes and Nobles in my area. Super excited about that, by the way. The third reason was that for as long as I’ve been doing business,

01:54
My mom has never really understood what I did for a living. And as a result of that, I don’t think she’s ever really fully appreciated any of the accomplishments that I’ve done in business. Let me just give you some examples here. When I started selling hankies, her first reaction was, really? Do people really wanna buy those? Can you really make a living selling them? Then when I started my blog over at MyWifeQuitHerJob, she was like,

02:22
how can a blog possibly make money? Are people gonna pay you to read your writing? And I was like, no, ma, that’s not how it works. I make money through advertising, affiliate marketing, and core sales. And I remember my mom asked me, affiliate what? When I started my podcast, she was like, wait a second here. So people are gonna pay you to listen to you speak for an hour. And I was like, no, ma, the podcast makes money with advertising.

02:51
It’s kind like radio. And then she was like, oh wait, you mean you own a radio station? And then I was like so fed up with it. I was like, no, not really. Nevermind. Don’t worry about it. Don’t worry about it. But when I told her that I was going to publish a book, she got all excited because for the very first time in my life, it was something that she could relate to because she buys books all the time. My mom is actually going to be here in the Bay Area for my very first book signing on May 18th at Books Inc in Palo Alto, California.

03:21
By the way, if any of you guys listening are in the Bay Area, you are more than welcome to stop by. I’ll probably say a couple of words, sign some books, and just hang out. You’ll get to meet my brother, who’s a judge. You’ll get to meet my wife, my kids will probably be there, and my mom, who discovered a cure for a disease. Everyone in the family is going to be in attendance. For more information, go to mywifequitterjob.com slash party. And incidentally, that’s going to be the link where I’m going to update you on where I’m going to be for all of my book parties.

03:50
all over the nation. Also, I just want to mention this, in the event that you see my book in a physical bookstore, please snap a photo of yourself with it, email it to me, and I’ll send you an official Family First Entrepreneur t-shirt. I designed the shirt, I think it looks pretty cool. Now I’ll have a form set up to automate everything, which I will place over at mywifequitterjob.com slash shirt. All right, so two links there, mywifequitterjob.com slash party for the book signings.

04:20
In the event that you see my book in the wild take a photo of yourself and submit the form over at my wife quitter job comm slash shirt Now the last reason which was kind of like an afterthought was that everyone has been telling me that a book is a great lead gen for my other businesses and That all the work would just pay off with an increase in respect and credibility Now supposedly having a book can lead to more speaking engagements as well

04:49
And that’s something I’m actually not that interested in. Although I mean, to be straight up, I think I could be bought, but it would probably require an inordinate amount of money for me to do the speaking circuit. Which leads me to the next questions that I’ve been getting asked. Why did I go traditionally published versus self-published? Now for me, self-publishing was never really on the table at all. In order to get your book into a Barnes and Nobles and have a chance of hitting a bestseller list,

05:19
pretty much need to be traditionally published. Now, while self-publishing will probably easily make you more money, money was never my goal. It was pride. I mean, it was ego, just to be quite frank. If I was to publish a book, I wanted it to be published by one of the big five publishers and hit one of the national bestseller lists. And in a way, this entire process kind of brought back memories of getting into college. When I was young,

05:46
I knew I wanted to go to Stanford to study electrical engineering. So I figured out exactly what I had to do to get in and I executed. Getting a book publishing deal was not any different and neither is hitting the best seller list. When I first started this book journey, I knew absolutely nothing about books. So the first thing that I did was hire someone who knew a lot about writing books and that person was Jeff Goins.

06:12
Incidentally, Jeff is gonna be coming on the pod and will likely be the next episode actually during launch. We’ll see if we can get that together. Jeff is a bestselling author of many books and he’s probably one of the most talented writers that I know. And we randomly met in 2015 at FinCon. He was one of the keynote speakers and I enjoyed his talk so much that I bought his book, which he signed and I still have his book on my shelf today. And at the time, I had no idea that I’d ever work with him, let alone…

06:41
ever even see him again. But things in life always seem to happen by accident. And I’m not sure if I’ve ever used this analogy on this podcast before, but I always think of life like playing the lottery. And the more people that I meet, and the more work that I do, and the harder I work, the more lottery tickets I get. And if you are able to amass enough lottery tickets, then good things are just bound to happen. And Jeff was just one of those lottery tickets that allowed me to hit the jackpot.

07:09
Now let’s shift gears and talk about the process. The first step was figuring out what the book was going to be about. Now most people start a book from complete scratch, which ironically looking back, I think it’s actually an easier process. When I first talked to Jeff about this book project, I already had about 800 blog posts of like 3000 words each, an online course with over 400 videos spanning over a hundred hours of content, probably like 350 episodes of my podcast and a bunch of YouTube videos.

07:39
That is a lot of content to go through. And the problem and the challenge was organizing that information because the topics I wrote about were just all over the place. I had posts on business in general, posts on e-commerce, posts on philosophy, posts on parenting, posts on investing, you name it. It was like all over the place. So the first piece of the puzzle was putting everything on the table. I literally just dumped all my content to Jeff and his team and they started going through it.

08:08
And from there, we had a bunch of meetings to sort everything out and just kind of talk it through. Now, I didn’t want to just put out any business book. And in my opinion, a lot of these business books out there, they’re all dime a dozen. And I didn’t want to put out a book that had already been written before. so, you know, I focused on my story and why I was different. And then after just kind of talking it through, for multiple hours with Jeff, it finally dawned on the both of us.

08:38
Most business books today are written by single guys who have no responsibilities in the world. Their priorities are to grow, grow, grow. And they have the time to hustle and work 80 hours a week because work is their number one priority. And I’ve interviewed over 450 entrepreneurs on the podcast who are just killing it. You guys have probably listened to some of these episodes. But what most of you guys don’t know is that many of the guests on my show aren’t really happy in their personal lives. They’re killing it in business, yes.

09:07
but not necessarily with the rest of their lives. I literally just got done with an interview with a very successful entrepreneur who’s in the middle of a divorce. I once interviewed a billionaire whose biggest regret in life was losing his family because he worked too hard. He spent too many hours in the office. Now, was I the only one who didn’t want to work that hard? Was I the only one who wanted to just be a great dad and spend more time with my kids? So I asked around a little bit and it turns out there are a lot of people like me out there.

09:37
We don’t want a business to become filthy rich. We want to start a business to be free and to make enough money to be free can be easily done without working 80 hours a week. In fact, right now I’m running two seven figure businesses in less than 20 hours per week. It can be done. So that became the theme of the book, Family First Entrepreneurship. Incidentally, in case you guys are listening to this and you don’t have a family, you don’t need to have a family in order to take advantage of the book. Essentially the book is about how to work less.

10:06
and make more money. Now the first step in this process was putting together a book proposal. I actually have it right in front of me right now as I’m recording this and looking back and I’m just reading this right now, it was pretty hilarious. First of all, this proposal was 49 pages long and divided into the following sections. Highlights about the author, about the collaborator, marketing and publicity about the book, the target market in the audience.

10:36
comparable titles, an annotated outline, and a sample chapter. Now creating this proposal literally took a year. I worked with Jeff on this. I didn’t even know what need to be in a proposal, but he walked me through the process. And then after the proposal was written, all 49 pages of it, I hired an agent to pitch the book to the big five publishers. I knew no one in this industry, so I needed an agent. And the advantage of having an agent

11:04
is that they already have relationships with editors at the big five publishing firms. So what my agent did is he shopped around the proposal to his contacts and his friends. And I met with a bunch of different publishers via zoom to see if my book was a good fit. And then we just set a date for each publisher to submit a bid. And on that date, we picked the winner. Kind of like selling a house. It really is. Ultimately, I decided to go with Harper Collins, mainly because of the editor Hollis. Hollis had worked with Gary Vee

11:34
and a ton of different authors in the past in the business space and we got along great. And if you guys are curious about the particulars of the actual book contract, I’m actually happy to share the exact terms in a separate episode. Let me run it by the publisher first before I do this, but I’m happy to share because again, I don’t care about the money, I don’t care about the contract, I’m an open book. But in a nutshell, I got a six figure advance and I get royalties of roughly 15 % per book sold.

12:04
And hypothetically speaking, let’s just use some round numbers here. Let’s say I got a hundred K advance to make up that advance, assuming the book costs 30 bucks, which it does would require about 22,000 books sold before I make any more money than the advance. And that’s pretty tough to do by the way. And I’m to get into that in a sec. Kind of like the economics. Anyway, the, after the contract was signed, it was time to start writing. And with the help of Jeff,

12:32
I was able to pump out the guts of the book within about nine months or so. Basically, we molded a lot of my existing blog posts and material into cohesive chapters, and then I recorded audio to fill in the blanks. And incidentally, that’s how I write a lot of my posts these days. I simply narrate into Google Docs and just edit the output, because I can speak a lot faster than I can write. Now, once I had my first draft, I sent it to the publisher for editing.

12:59
And I had heard a lot of horror stories in the past from friends where their editor forced them to change or cut out large portions of their book. But that definitely was not the case with HarperCollins. There was one time where I made some Asian jokes. You guys know me. I rip on Asians all the time in the book, and they suggested that I remove it. Now, since I was busting on China in this particular case, I decided to remove it because I do try to go to the Canton Fair every other year.

13:26
and I would hate to have my book blacklisted over there or somehow get stranded in China. Anyway, writing the book was probably the easiest part of the process, the most tedious, but I would say the most straightforward. Now the final step of the process is where I’m at now, marketing and the launch. Now let me just start by saying that selling and marketing a book has probably been one of the hardest things that I’ve ever had to do. It’s really hard to sell. The book is only 30 bucks.

13:55
but it’s actually harder to sell than a $2,000 course or even a $1,000 ticket to an event like the seller summit. And here’s why in this day and age of video, social media, TikTok, short form video, people just don’t read books as often as they used to. I looked it up in 2022, there was only 288 million printed books sold total. Now you contrast that to YouTube where five

14:24
billion videos are watched every single day. And don’t even get me started on TikTok and social media. The average TikTok user spends 1.5 hours per day on the platform. There simply isn’t as much of an attention span these days to read a book that can take you several hours to finish. People just want short-term dopamine hits these days, which makes me question the future of humanity. Anyway, here’s a stat that’s interesting. Only 48 % of adults finished one book.

14:54
in the last year. Anyway, you guys all know that my goal is to hit the bestseller list, which is no easy task. You have to sell five to 6,000 books in a single week in order to hit it. So what did I do? I wanted to hit it, so I hired a book launch coach. Now I’ll have them on the podcast at some point, but navigating the crazy world of book publishing and bestseller lists, it’s a whole episode into itself. So first off,

15:22
Those five to 6,000 books have to be hardcover and they have to be sold in the United States for it to count. E-books and audio books do not count, which is kind of backwards since so many people consume content electronically today. Like my wife, she only reads e-books. I have friends that only listen to audio books and to not count those seems kind of ridiculous to me. Anyway, my book launch coach told me flat out not to try to sell the book at all.

15:52
Instead, sell the bonuses and then throw in the book and I took that advice to heart. So right off the bat, I offered three incredible bonuses worth $690. My three day workshop on how to get started with a print on demand business, a two day course on how to make money with content, whether it be blogging, YouTube or podcasting, and my six week family first challenge, which starts in June, where I will walk everyone in a private Facebook group on how to find their next side hustle.

16:20
And it’s funny, when I first launched these bonuses, I might’ve sold 100 books total. And at that point, I knew that this was gonna be a major uphill battle to sell these books. So I’m gonna tell you my strategy right now. I had a four-prong attack to sell these books. So number one, I had the bonuses, which I just talked about. And in addition, I launched an expiring bonus every single week in the month of April to create a sense of urgency. This worked really well, by the way. I actually made most of my sales in April.

16:49
people often just need a kick in the butt to get started. Two, I went on a bunch of podcasts. Now, fortunately, I’ve developed a lot of friends with popular podcasts over the years and I’ve had them on my show. So for this launch, I basically called in lot of favors and at one point, I was recording like four podcast episodes per day. I don’t recommend this by the way. It’s both draining and exhausting and it remains to be seen what effect it will have on book sales.

17:18
Now regardless, going on a lot of podcasts at the same time is great for creating a buzz and immediate blitz, which hopefully we will move a lot of books on launch week. Three, I worked with a bunch of close friends to have them blast their email lists, announcing the book. And then four, this one was important, I worked with any company who has ever sponsored me in the past to buy books in bulk and have them distributed to their audience. So basically I would record videos.

17:45
do sponsored ad reads on my pod or write blog posts in return for books. Then the company would give them away to their list and then pass me a set of physical addresses for the books and we’d have them shipped out to these people. Here’s the thing about hitting the bestseller list. Every book sold has to have a unique person or IP address associated with it and you can’t simply buy 6,000 books or else it’s not going to count towards the bestseller list. And that’s what made this really challenging.

18:13
There are ways to buy yourself onto this list. So for example, an acquaintance of mine literally spent $1 million on ads to move books and this person eventually hit the New York Times bestseller list. But there was no way in hell, like I’m Asian, I’m frugal, there’s no way I was gonna spend more than my advance to promote my book. Anyway, here we are, exactly four days out and I’m pretty close to my goal. And every book counts though. So if you haven’t ordered the hardcover version yet,

18:42
I would love your support. I must say though, that this whole book experience has been extremely rewarding. There have been people who I haven’t heard from for years reach out to congratulate me or to help me push the book. And it’s been extremely gratifying. And you know, in any case, I hope you guys enjoyed this mini peek into my book publishing journey. And I actually hope to meet all of you at one of my book parties. First one is in Palo Alto, California on May 18th.

19:11
and the rest will be found at mywifequitterjob.com slash party. And in the event that you see my book in the wild, please take a picture of yourself holding the book and just send me the book over at mywifequitterjob.com slash shirt. And I’ll send you the official family first entrepreneur t-shirt. Pre-order the book now over at thefamilyfirstentrepreneur.com. I appreciate you guys.

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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.

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458: The Ugly Truth About Selling On Amazon And The Hidden Fees With Vladi Gordon

458: The Ugly Truth About Selling On Amazon And The Hidden Fees With Vladi Gordon

Today, I’m thrilled to have Vladi Gordon on the show. Vladi is the founder of Sellerboard, a software that helps you track profit and loss when selling on Amazon FBA.

Having sold on Amazon for seven years now, I know that there are many hidden fees when selling on the platform. In this episode, Vladi and I reveal the ugly truth about selling on Amazon and how to calculate your true profit.

What You’ll Learn

  • How profitable is the average Amazon seller?
  • How to track your profit and loss on Amazon
  • The common fees that most sellers do not account for

Other Resources And Books

Sponsors

Zipify – Zipify One Click Upsell is a must have tool for Shopify store owners who want to increase their AOV instantly. Click here and try Zipify for FREE.

Link Whisper – Link Whisper is the internal linking tool that I use to grow the SEO traffic for my blog. It’s a must have tool! Click To Try Link Whisper

Transcript

00:00
You’re listening to the My Wife Quarter job podcast, the place where I bring on successful bootstrap business owners and dig deep into what strategies they use to grow their businesses. Now, have you ever wondered how profitable the average Amazon seller is and how much margin does the average Amazon seller make? Well, in today’s episode, my guests, Vladdy, Gordon and I break down all of Amazon’s hidden fees. Vladdy is a veteran Amazon seller and the founder of Sellerboard, which is software that helps you track profit and loss on Amazon. Enjoy the episode. But before we begin,

00:29
I wanted to thank Zipify Apps for sponsoring this episode. Now I’ve been teaching e-commerce for over a decade now, and I’ve been recommending one-click upsell for years. If you want to increase your revenue up to 10 % or more instantly without doing much work, one-click upsell lets you add both pre and post upsells to increase your average order value. Now this solution is almost guaranteed to boost your sales, and the best part is that Zipify only charges you when it actually generates you upsell revenue.

00:57
Zipify also offers an easy to use page builder so you can build your own landing pages and themes without knowing how to code. For more information, go to zipify.com. That’s Z-I-P-I-F-Y dot com. I also want to thank Link Whisper for sponsoring this episode. Now most of you who follow my blog over at mywifequitterjob.com know that I’ve increased the search engine traffic by almost 4x in just the past year. And a large part of that increase was because of Link Whisper.

01:25
Link Whisper is a WordPress and Shopify plugin that allows you to quickly add internal links to your content pages. And by adding internal links to the money pages on your website, you can easily sculpt and focus your link strength to the pages that make you the most money and to the ones that you want to rank and search. For more information, go to linkwhisper.com. That’s L-I-N-K-W-H-I-S-P-E-R.com. And then finally, I wanted to mention my other podcast that I run with my partner, Tony.

01:54
And unlike this one, where I typically interviewed successful entrepreneurs in e-commerce, the Profitable Audience podcast covers all things related to content creation and building an audience. No topic is off the table and we tell it like how it is in a raw and entertaining way. So be sure to check out the Profitable Audience podcast on your favorite podcast app. Now onto the show.

02:21
Welcome to the My Wife Could Her Job podcast. Today I’m thrilled to have Vladi Gordon on the show. Now, Vladi is the founder of Sellerboard, which is software that helps you track profit and loss when selling on Amazon FBA. And having sold on Amazon for seven years now, there are a ton of hidden fees and ways to lose money on the platform without even realizing it. Now, if you look on the internet with all these internet gurus showing off their seven and eight figure Amazon revenue numbers, what most people don’t realize are that these numbers are way inflated.

02:50
Amazon ups your revenue number whenever money comes in, but doesn’t deduct from that number your fees and other hidden costs, which we are gonna talk about today. And I can almost guarantee you that by the end of this episode, you’re wanna look back and reanalyze your sales numbers. Now before we get started, all I had to say is that if you don’t have some sort of Amazon profit tool installed, it’s gonna take a wizard to figure out your true profit or loss because Amazon obfuscates everything.

03:19
And with that, welcome to show. Wladi, how are you doing today? Hi, Steve. Thanks for having me. How are you? Yeah, it’s great to have you. Wladi, I always have to ask this question. know, tracking profit and loss on Amazon and running a business doing that, it’s not the sexiest business, right? So how did you get into this? Yeah, you’re right. It’s actually kind of a nerdy job in order to work on the numbers and crunch in data and

03:48
you know, search for errors. So yeah, my background is actually IT. I’m a software guy and I was doing this kind of things all my life. I worked as a software engineer at IBM and some other larger companies and then as a product manager. And it was all about the backend. So none of my like products were apps or you know, the next big thing, was all like the boring data backend.

04:18
But yeah, I think it’s kind of my world or my focus and something I’m good at. So I’m okay with that. I believe somebody has to do that job as well. You were an Amazon seller as well. Are you still selling or? No, so I’m not selling anymore, but you’re right. I was a seller myself. started, I think it was 2014, so like nine years ago. Oh, that’s like prime Amazon.

04:48
Yeah, those are the good old days. Yes, that’s right. So yeah, I live in Germany and I started this basically as a side hustle. And back then I was listening to different podcasts and to yours as well. And I thought, okay, maybe I could do something like this in Germany. Cause I wasn’t even aware that you could sell on Amazon from everywhere. It doesn’t matter in which country you’re.

05:16
based in, I could have also started to sell in the US, but I thought since I live in Germany, there’s Amazon in Germany, so maybe this model will work as well. And back then, was the time when virtual reality was a hype. I mean, it’s kind of still a thing or hype and we have metaverse and stuff, but back then, these were really the first days of virtual reality. And I found a product,

05:44
Basically, it was a piece of cardboard which you could fold and it had two lenses and you could put your phone inside and look at on your phone through those lenses. yes, okay. It was called Google Cardboard. I remember that. So you were one of the big sellers for that. I remember, okay. Yeah, so basically what happened was back then Oculus Rift, I think was acquired by…

06:10
Facebook and everybody was talking about virtual reality and Google thought, okay, they need to do something. So they developed this cardboard VR device for your phone and they open sourced its design so anybody could produce it. And basically that’s what I did. I bought some on AliExpress and then I registered an account in Germany as a seller and I uploaded the pictures and back then I only needed

06:39
basically just a couple of PPC ads with a little budget and it started selling. And yeah, this exploded. This was like, this was crazy. Cause I kind of caught the wave. was the only FBA seller selling these products for maybe like a year. There were some other sellers who were shipping from China. And yeah, I was basically developing this product and adding some features, mostly

07:08
They were about design and maybe some, you know, padding. And this was great. And then I thought, okay, I need to quit my job and replicate the success. I can do it like 20 times and there’s absolutely no point doing anything else. I’m doing software. Why do I care about software? No, it’s like, it was an absolute gold rush. And by the way, in the U.S., I believe the market was already more crowded.

07:38
although it’s a much larger market as well. And in Germany, like, FBA was only starting, basically. Yeah, so basically, in the end, I had maybe 20 different products, and that didn’t work so great, because I found out that it’s actually a business, and it’s not like extracting diamonds from Amazon or gold.

08:08
it became a real business. And if you have 20 products, not all of them are success and you cannot replicate such a success every time. there’s competition in every niche and some products are not trendy. And it’s kind of hard to scale this model, to basically define those. Yeah. Could you develop Sellerboard?

08:35
because of your own products? Actually, yes, because when I was having huge margins with my first product, I didn’t really care about the numbers. I just was watching the money on my bank account and I knew if I’m buying for $2.50 and I’m selling for 18 euro, there’s no way I could make a loss, right? Right. So there’s this huge profit margin.

09:05
But when I added more products and when the market for my main product became crowded, so basically, eventually everybody figured out that it’s a very easy product to replicate and there were hundreds of sellers for this one. So then I needed to drop prices and invest more in ads and it wasn’t obvious at all anymore if I’m profitable or not.

09:33
And I started to look for a tool or actually for a way to assess if I’m profitable or not. And I didn’t find a tool that I liked 100%. And I also didn’t want to pay too much money because I was feeling like my margin is getting thin. So yeah, that’s when I thought, okay, maybe we can develop a tool. I partnered with my friend and we built Sellerboard. And after the launch, I…

10:02
basically sold my business. So in the end, like I had a lot of products that were not successful anymore. And just one that was really successful, these were not the VR glasses anymore. But another one, actually these were drink coasters. probably also have really standard product. Right, so most of the that you sold were just kind of as is from like Alibaba or Aliexpress.

10:32
Exactly. Like, you know, as a software engineer, I’m not really a marketing guy. So I didn’t know how to write great texts and make nice pictures. I mean, you kind of understand it if you look at other listings, but this wasn’t really my thing. And, or I didn’t also find a product that I was super passionate about. So what I did was basically I was looking for products just analytically.

11:00
more or less like an arbitrage model. So it was no private label, but I was just looking for a product which is small. Probably everybody knows these rules, right? It should be small, it shouldn’t have any electronics. And the competition shouldn’t be too high. And in this day and age, I that model just, I mean, I guess you can probably pull it off, but someone will knock you off unless you actually turn it into a real business and marketing and develop a brand. Would you agree with that?

11:29
Absolutely. that’s actually what happened. So I was kind of buying random products. had like ties, for example, I thought like a tie is a very light product. You can ship it by air and it’s, you know, doesn’t have electronics. So let’s make ties. And then I thought, okay, phone tripods, why not? You know, they are small. So all criteria are fulfilled. So what then happened was in

11:56
every one of those niches, there were players that were focused on their brands in that specific niche and they were winning because they had better products. They would invest more energy and more love into their listings and reviews and ads. And yeah, in the end, you know, I didn’t have any USPs for most of my products. Yep. Yep. Yep. All right. Well, let’s shift gears because that

12:24
Like I’m on YouTube and Facebook all the time and I always see like all these people posting their Amazon revenue numbers. And I just want to talk about how those numbers are really inflated. And for people who are actually selling on there, who actually aren’t tracking their profits right now, what would you say is one of like the main culprits that can affect your profitability that most people do not even think about or consider?

12:53
So I would say that the single most underestimated profit killer are returns. So first of all, as you said, lot of sellers, and this was my experience as well, don’t track profit at all, especially in the beginning, maybe, you know, in the beginning you want to invest and you know you’re building a business and it’s not that important. So you have an approximate view.

13:22
But at a certain point you need to start really tracking those numbers and understanding and you need some sort of a profit and loss tool, which gives you like profit or you can also do it by hand in Excel, but that’s a bit complicated and costs a lot of time. But you need to understand your profit by unit per unit, including all the fees. And you need to have some sort of a cashflow management tool.

13:48
which is basically your bank account, you need to track the money coming in and going out. And we need to have some sort of balance sheet. these three things, and balance sheet basically describes all the assets in a business. And for an Amazon seller, the main asset is their inventory. So you need to understand these three things. But now back to your question. Yeah, so let me just preface this for the audience real quick. you go on.

14:16
I’m not sure if you guys listening realize this, but when you make a sale on Amazon, the number goes into your revenue number that you see on your dashboard. But when you get a return, that number is not deducted from your revenue number. So you always think that you’re making more than you are just right off the bat. I’ll turn it over to you, buddy. That’s correct. yeah, so for example, let’s say you sold just one item.

14:44
and you go to your seller central business reports and we’ll say one item sold and your revenue is $20. And if the item is returned, it will still say $20 and one item sold. And most sellers think, well, what’s the big deal? I’ll just sell this item again, right? So this is not a huge problem, but actually it is because if you’re not tracking your profit properly,

15:14
Often what happens is you take the number of units sold from the seller central and multiply it by your average profit per unit, which you kind of calculate on a napkin or an Excel when you are researching for product. So you know the cost of goods, you know approximately what the shipping from your supplier to Amazon costs.

15:42
And you know, the fees like 15 % for the referral fee, for example, and then maybe, I don’t know, to 30 for the FBA fee. Most sellers come up with an approximate profit per unit. And then if you look at your seller central every day and you see like, I sold 100 units. And if your profit per unit is $3, then it’s $300 profit. And this looks nice, right? So she multiplied by 30 days. It’s nice business.

16:10
But the truth is, the returns, since your revenue isn’t decreased in the seller central and the number of units sold are not decreased when there’s a refund, sellers tend to ignore the refunds or they don’t even notice it. And what happens in reality is the moment there’s a return, basically you need to write off your sale that you previously made.

16:39
For example, if you sold a product for, let’s say, $20, and then one week later, it’s returned. So what happens then is you should book like a minus $20 position in your books, right? Because you’re paying $20 back to your customer. So there are actually multiple ways to account for returns in the bookkeeping.

17:08
And we are really focused on management accounting, so accounting for the business owner, which helps them make decisions. And here you could do two things. You should either reduce your revenue on the day when there was a return or on the day when the item was sold. But this one is not a very good idea because this way you would reduce your revenue retrospectively and you don’t even notice it, right? So if an item is returned, which was bought like two months ago,

17:37
you know, you don’t look at your revenue from two months ago every day, right? Or you need to reduce your profit. And this is actually the way we chose in seller board. So what you do is you return $20 back to your client and at this moment it’s your loss. And if your profit is for example, $6 per unit and you reimbursed 20, then it kind of kills or cancels

18:06
three items that were sold. But fortunately, it’s not that bad. And I’ll explain you why. But it’s still very bad. So well, let’s talk about the fees actually, that you don’t get back when someone makes a return. So first of all, there’s a refund fee. It doesn’t apply to all categories. But oftentimes, Amazon just charges you for a refund.

18:35
So it’s, well, it might be like something like 15 % of 15%. So for a $20 unit, so basically it’s a referral fee on the referral fee, right? So for a $20 unit, it’s somewhere near like 50 cent. And this money, you don’t get back. It’s just, basically Amazon charges you because they need to send the money back to the customer’s credit card. And this is another transaction. This costs them money.

19:05
They need to process the return in their warehouse. It all costs work, so they charge the seller. So then think about the FBA fee. When a customer buys a product, you pay the FBA fee, you pay the shipping from Amazon to the customer. Not that you don’t get back. And depending on the category, you also pay the shipping back from the customer to Amazon. So sometimes it’s free, especially if it’s a…

19:34
Prime customer that it’s free for the customer and also free for the seller but sometimes Amazon charges this shipping from the customer to the warehouse to the FBA warehouse like in the fashion category for example because there are a lot of returns there so you lose that

19:57
My book, The Family First Entrepreneur, is available for pre-order at your favorite retailer. And guess what? It’s coming out next week on May 16th and I’m super excited. And I made it a no-brainer to grab the book because I’m giving out $690 in free bonuses. Here’s what you get. Instant access to my three-day print-on-demand workshop. In this workshop, I’ll teach you exactly how to get started running a print-on-demand e-commerce store and provide you with a free website theme as well.

20:25
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20:51
because you can in fact achieve financial success without being a stranger to your kids. And you can make good money and have the freedom to enjoy it. And you don’t have to work 80 hours a week and be a slave to your business just to make it all work. I will teach you how to start a business from the perspective of a parent who makes both business and family work. Go to mywifecluderjob.com slash book and I’ll send you the bonuses, invitations to book parties that I’ll be throwing all over the country and special offers. That’s mywifecluderjob.com slash book.

21:21
Now back to the show.

21:24
Can we attach some percentages to this? So typical FBA fees like maybe 10 to 15 % of revenue, right? If something’s small. much is? I think it depends on this. Of course it depends on the size of the product. Of course, of course. than the this amount. But I think that’s a fair estimate if you say like 15%. So, then this return fee is what percent you said 15 % of 15%, right? Let’s assume it’s around about five.

21:55
6%. Okay, 5 or 6%. What about the return shipping also that’s sometimes charged on apparel? What percentage would you say that is? I think in general, a good estimate for it is the FBA fee. Oh really? Yeah, because it’s more or less the same package, right? In the same distance.

22:19
Yeah, you play somewhere between one FBA, you lose between one FBA fee and two FBA fees. So it’s like 15 to 30 % maybe. Okay. That’s crazy. Okay. Then there’s there’s good news as well. So you’re paying the referral fee when you’re selling like 15%, but when an item is returned, Amazon returns the referral fee back to the seller. So this one.

22:47
actually reduces your loss and it’s a goodness. And if you’re in Europe, you’re also paying VAT. Okay, VAT is, well, it’s kind of, actually it’s a tax basically, but yeah, if an item gets returned, then your VAT that you paid is also offset. So you don’t need to pay it anymore. So this also reduces your loss. Right. And then ultimately,

23:17
There’s the question where, whether the item is resellable or no. So when the item arrives in the warehouse, Amazon checks it and they either book it as a sellable item or they say it’s damaged. And if it’s damaged, then you also lose your cost of goods sold. So here, of course, it depends on the item. If you’re selling like iPhones, probably you wouldn’t lose the complete amount.

23:46
just because the packaging is damaged or because the item is already opened. So you would be able to sell it again. But if it’s a cheap product, like in my case, this cardboard VR glasses, it doesn’t make sense to repair them or to resell them if they were already open. Actually, my packaging was…

24:12
built in a way that you cannot even close it if she wants opened it, because you have to tear it apart. basically here, depending on the status of return product, you lose your cost of goods. So if it’s like maybe 20 % of your, let’s say 30 % of your selling price, then you lose another 30%. And if it’s sellable, then again,

24:40
we need to offset your loss. So cost of goods sold at the moment the item is returned becomes a positive position in your basically in your profit and loss statement because you can really sell it again.

24:54
So is that all trackable through the Amazon API? Like if something comes back as resellable, that can be tracked? Yes, basically you see it all in the reports. You can download the transaction report or like in the FBA reports, there are actually multiple reports that give you information about the inventory adjustments. So for example, there you see every return.

25:22
which arrived in an FBA warehouse and whether it was booked as a sellable item or no. You see all these transactions and transaction report. the charges and reimbursements of referral fees and stuff like this. Yeah, but it’s kind of hard to put it all together, I would say. So yeah, I would- Right, because they’re asynchronous, right? You might’ve made a sale like,

25:52
30 days ago and then someone makes a return. So it all needs to be correlated at some point, right? Yeah. Right. And the return can be in the next month and typically sellers think in terms of months. So like if you had a good month, don’t want to like change your bookkeeping retrospectively, right? So you want to close it or it can be even like in another year, right? So for example, if you’re selling before Christmas,

26:22
Chances are that the returns will arrive in January. Do you happen to know what the average refund rate is for particular categories off the top of your head? It’s very category specific. So I know from the fashion industry that there it might be up to 50%. And there are some items that are in the like

26:51
some other categories or some products that are in the very low, like maybe single digit area, especially if the products are cheap. So for example, you should buy like a battery or something that it’s almost never returned, right? Yeah. Or a pair of batteries. So yeah, anything between basically zero or like 2 % at 40 % is…

27:17
I think I read somewhere that the average refund rate is 10 % overall and then electronics is pretty high. I heard it’s like 15 to 20 and you’re right apparel is really high. What I’m trying to get at is like when you see someone’s income report and you’re thinking about profit, what adjustment would you make just in your head without software? yeah. I think

27:47
What would really help is if you do this exercise once with the software or without, just take a look at the transaction report, find one return, check out how many, oh, by the way, one thing I forgot. If damaged items are returned, then they are put back in stock until you basically dispose them. And they also generate storage fees, because they take place in the warehouse.

28:17
And if you choose to send them to your home or to your warehouse, then this will also cost money, of course. Is that like the equivalent of an FBA fee? To have it shipped back to you? No, that’s much cheaper. Actually, this is more like the inbound shipping. So inbound shipping is like, you pay, I don’t know, $3 something for 100 units.

28:46
But yeah, depends on how many items you have, of course, that are damaged. I don’t think I’ve ever had stuff shipped back. I always just destroy them. Yes. think that’s, well, it depends on the products. If you’re selling TV sets, then of course, of course, that’s not the wisest thing to do. By the way, I don’t think you have an option to destroy them. It’s actually called dispose. Sure. Yes. decides what to do with them in this case. So they also might decide to sell them.

29:15
and then they will kind of piggyback on your listing and will sell them, sell your items as used. I know for a moment. Oh, under your own listing. Okay, I didn’t think about that actually. Yeah, and sometimes this also might happen if they lose items and find them again after they already reimbursed you. So they just sell them. Well, okay, so let’s summarize refunds before we move on. So refunds anywhere between, you know, single digits to 40, 50%.

29:45
and you lose your FBA fee, you potentially could be paying two FBA fees for return shipping. And then there’s also a refund fee. And then there’s also your cost of goods if it’s not resellable. Correct. And if you want to get a feeling for the order of magnitude, then I would suggest you take a look at one transaction and at the percentage of damaged items.

30:13
and then you can kind of calculate it. Maybe it’s 20 % of your net profit that you should allocate for refunds. And by the way, there are some things that, or some like easy things that you could do to reduce the return costs. Okay. So for example, sometimes if you’re lucky, the reason for returns are bad pictures. So this is, or maybe inaccurate data in your listing.

30:41
And this is something that you could really fix very fast. So, I mean, if it’s a problem with your product, then okay, you need to work on your quality. But there’s a report in the seller central. It’s under reports, FBA, customer concessions, and it shows you all FBA returns. And there’s a column there with a return reason. So when a customer initiates a return, it was an ask some what’s the reason for the return.

31:10
And you can say, for example, product is not as expected, right? And they can also enter a comment there and sometimes they write something like, it’s bigger than I thought, or it’s smaller than I thought, or the color doesn’t match the picture. And if that’s the case, then this is something you can really fix. with respect to size, for example, you can add some pictures where the size is visible, either as a number,

31:40
or maybe you put something similar near your product, like a coin or something, so that the customer understands how large it is. And yeah, the color, you can just tune the colors in the pictures and sometimes it’s this easy fix, which can help you reduce returns. And if you reduce your return rate like by 1%, so if it’s five and you reduce it by 1%,

32:07
It’s going to have a huge impact on your profit. So it’s much more than 1%. It’s going to be like maybe 20.

32:15
Yeah, I mean, usually what happens is if you scoot up on your listing, usually you get suspended, right? Usually a flood of returns comes in. At least in my That’s right, but sometimes it’s not that big of a difference. Especially in fashion, it’s very easy. If a customer has a different light, and customers 100 % have different lighting conditions at home.

32:45
if the lighting is a bit different than your studio, then the color will be different. just make sure it’s realistic or you have multiple pictures so that you get a feel of the color. I think Amazon in general is just very clever because if you’re trying to do all this stuff by hand, I know because my wife does the finances, you have to download multiple different reports and then compile everything together.

33:15
and I’m sure they do that, so it’s hard for you to figure out your profit. Like they could have made it a lot easier for you to figure out your profit, right? That’s right. I mean, there are a lot of things that are hidden in the Excel reports and while you can download them and basically explore those fees and track them, it’s kind of hard to do and it needs manual work, so sellers tend to ignore this work.

33:45
Yep. Okay, so we’ve covered refunds and returns. What are some other areas that people often overlook? Yeah, so I would say one important area are like all kinds of different fees and sometimes sellers, especially new sellers tend to skip some fees and some costs. So, you know, when you’re researching for a product, you kind of see

34:15
the cost of goods sold and you see your selling price on Amazon and you kind of estimate the referral fee, maybe the FBA fee and shipping from your supplier to Amazon. But there are so many other fees. so we basically, download all the fees for every customer and try to break them down by product. And in my experience, there are more than

34:43
100 different small fees that Amazon charges you. So storage fees are, for example, something that everybody knows, but it’s kind of not very transparent. So it’s hard to say which item generated how much in storage fees in which month, right? But there are also some others that are not so obvious, like inbound transportation. It looks cheap, but if you are selling a lot, you know, and you’re paying maybe

35:13
It used to be three euro something, euro 60 or something per box in Germany when I was selling. And if you’re selling like 100 boxes per month, then it’s already a considerable amount. Then you have fees that they Sorry, you’re talking about shipping to Amazon’s warehouse, is that correct? Correct. Okay, right. Correct. Yeah, lot of people don’t take that in count.

35:41
Exactly, because it’s a small number, yeah, as I said, especially if you’re selling a lot and they all kind of add up, right? So you need to at least have some buffer. So if you don’t know them exactly, then plan some buffer, like I don’t know, maybe 10 % of your revenue for some unexpected fees. There are some other things like if a shipment is damaged, an inbound shipment to Amazon is damaged, then they can either charge you for…

36:10
a fee called the FBA inbound defect fee. So basically they have more work with opening it and fixing it and that costs time so they can charge you for that. Or even worse, you can lose some of your items if they’re damaged, right? So they become damaged, unsellable items, then you need to dispose them which costs money again. Then you have things like lighting deals fee.

36:35
You have the subscription, it’s $39 a month. You have a fee for coupon redemption. have like removal and disposal fees, fees for sales tax collection, labeling, bubble wrap, polybegging. So yeah, there are more than 100 fees. And I think, yeah, as I said, sellers just should be aware that there is such a thing and you should have enough profit margin to compensate for all these expenses.

37:03
Can we talk about the inbound damage fee? Like if they damage it, that’s their liability, but who’s to enforce that? Do you know what I’m saying? Like if it comes in and it’s damaged and they have to charge you a fee to look through it, what’s preventing them from just, when they screw up, charging you for that fee? So, okay, I mean, I think at this point it’s just trust.

37:32
Right, so if Amazon, so if they damage your product, basically they book it as damaged in their warehouse and then they are accountable for or liable for this. But of course if they don’t do that, then it’s, I mean, I don’t think that Amazon does this on purpose. I mean, I’m actually very sure that they don’t do it on purpose.

38:01
But of course it can happen and they can also lose products and damage products and not reimburse the seller. We see this pretty often as well. Actually, I have a fee that I’ve hit that’s kind of hidden that people don’t consider is, you know, usually around the holiday season when the volumes are much higher, Amazon tends to lose our inventory more and then we’ll get reimbursed for that inventory.

38:31
But then like in January, they miraculously find it. And then they take all that money back. But meanwhile, lost out on the holiday season’s worth of sales for that particular item. Is that accounted for? So in the software, like if that happens, that’s all accounted for on the month that it happens, right? Right. So whenever you get reimbursed, basically we show all your profits and all your income and all your

39:01
Uh-uh.

39:04
all your charges, right? So if you get reimbursed, we will show you a reimbursement the day that you get it. And sometimes it’s attached to a product and sometimes it’s not really clear what you are getting reimbursed for. But then in this case, we’ll just show it as a number on the overall account level. Yeah, but you’re right. Of course, they will reimburse you. So if Amazon loses your inventory, they will reimburse you for the inventory.

39:33
But they will not reimburse you for opportunity costs. So for the profit that you would have made, or if you’re listing loses like keyword ranks because you didn’t have sales, of course that also becomes your problem. But I think I really don’t want to be too negative at this point. There are a lot of fees and I think you just need to manage them.

40:03
that they exist and you need to have enough margin. And if you don’t have enough profit margin to account for unexpected fees, then probably you need to think about your product strategy. you either need like a cheaper product or you need to make the product cost of goods cheaper, right? Or you need to raise your prices or maybe add something to your product. Cause the last thing you want to do is of course work for nothing.

40:31
or even police So one thing I wanted to touch on actually was PPC, because I run a class of about 5,000 students, and oftentimes people are bidding without really understanding what their break-even point is. that’s actually one thing I liked about Sellerboard was that when you’re bidding, you kind of know what your profit point is. Can you just kind of talk a little bit about

41:00
common PPC errors that you see? So I think with PPC sellers

41:12
Basically, there are like a couple of reasons why you do PPC. So for example, if you’re doing a product launch, then the profitability doesn’t really matter because all you want is sales, right? Sure. Because you hope to launch the product and to get some organic sales and then you won’t need PPC anymore. And sometimes sellers say, okay, I want to run PPC ads just to support my organic sales because Amazon likes it when, you know,

41:42
when you advertise your product. And this also helps organic ranking, but when the product is already in a mature phase, it should earn money, right? So a lot of sellers say, okay, I don’t want to lose any money on PPC. It should just support my product, but I don’t want to lose any money. It should be neutral for the profit. And the last strategy would be just to

42:11
be profitable with PPC and that’s becoming harder and harder every year to be honest on Amazon. So, yeah, what’s important is the numbers that you see in the advertising console, like the PPC sales are four, have an attribution window of 14 days after the click. And typically Amazon shows you sales of all products, not just of the product that was advertised.

42:41
So if somebody, a client, a customer sees an ad and clicks on an ad and then buys a different product one day later, for example, a different color or a different variant, or even a totally different product from the same seller that will still count as a PPC revenue, right? So this product doesn’t need to be advertised. And this makes it a bit harder to…

43:10
basically to estimate the profitability of your PPC campaigns. Because if your strategy is, for example, to be profitable or break even on PPC, the question is then of course, how much can you afford to bid on specific keywords to be break even, right? And since the sales numbers are not necessarily…

43:37
corresponding to the products you’re advertising, it’s becoming a bit more like randomized or challenging to find out what your profitability point is. yeah, basically as a rule of thumb, you can take your profit margin for your like advertised product and maybe products if they are all similar from the same listing.

44:05
from the same category and take this as your target acres for the break even, point for the break even advertising strategy. But in Sellerboard, we try to do it more precisely. So we basically go ahead and take a look. So we get a little bit more data through the API than what is displayed in the advertising console. And we actually.

44:32
see how many sales are coming from the advertised products for every specific campaign, for every specific keyword, and what percentage of sales is coming from other products. And based on that, and based on all profitability calculation that we have, we estimate your profit per campaign, per ad group, and even per keyword. And if we have that profit, then we kind of automatically have the profit, the breakeven point.

45:02
Right. Yeah, which is very important. So like when I teach this in my class, I always tell people to start with the break even ACOS. But it’s hard to calculate that because you only have the, I guess the revenue, right? Which is what ACOS is. Calculating the true profit, taking into account all these other fees that we just talked about returns inbound is actually quite difficult to do. Right. And Amazon also doesn’t

45:31
tell us and it doesn’t tell the seller if an order was generated by an ad. So you see the sales per campaign and even per keyword, the PPC sales that are attributed to a campaign. But on the level of every specific order, we actually don’t know whether it’s coming from PPC or whether it’s an organic order. So it’s kind of hard to calculate.

45:59
because this information is missing, it’s kind of impossible actually to calculate the profit exactly, but we’re trying to do our best. And if you know your breakeven acres, then you can calculate your breakeven bid. right, since you know your conversion rate, you know, like for example, every fifth, or like let’s say every 10th click will result in a sale. And if you know your…

46:27
like break even point is, don’t know, maybe you have a target profit margin of $2 per unit, then you know that you can afford to pay 20 cents per click to stay profitable, right? And yeah, actually with PPC, it’s kind of interesting because this number also constantly changes. So the moment you figure it out, it’s already outdated and not just because

46:55
It’s actually not because of you as a seller, but because there are so many competitors that are constantly changing the bids and because of seasonality and different like days of week. So the market is highly dynamic in that regard. So yeah, but it’s a good start. you know your break-even acres and break-even bid for every keyword, then chances are you’re going to be.

47:25
pre-cubed. There’s one thing I also want to say here is that at least in my portfolio, there’s the I think the 80-20 rule applies like 20 % of your products are going to make 80 % of your profits and just seeing this in a real-time dashboard allows you to say hey this item did not make me money even though it generated a lot of sales maybe I should consider not selling that item going forward and focusing on this other item

47:51
that actually sells less in terms of volume but makes more profit in terms of raw dollars. I think a lot of people just sell in aggregate and as long as the overall profit is good, they don’t necessarily drill down to the individual item level and figure out what they need to stop selling or focus on. I think this is actually true for every business as long as you’re like total

48:21
that profit is positive, you’re like relaxed. yeah, if it, if if the times become hard, everybody starts analyzing. But actually my experience is, you know, it’s, it all, it’s always also about time, right? So you need a system which allows you, which enables you to track your profit.

48:50
and do your management accounting, which brings your data quickly and easily without you having to spend too much time on it. And then it becomes easy to optimize. Yeah. Vlad, where can people find more about what you do in your tool? Sure. So you can go to our website at sellerboard.com. And yeah, we have a…

49:17
a demo account there which you can actually start or try launch without any registration. So you just click the demo button and then it’s a live account with a fake product, but it’s read only, but you can still try the software and see through all the functionality. And there’s also a free trial and after the trial, the pricing starts at $15 a month. Yeah.

49:46
I was just going to say this.

49:50
For everyone out there, $15 a month, I want to say that Sellerboard is actually one of the least expensive tools out there. because everyone always comes to me with their tools and what attracted me to Sellerboard was the fact that it is so inexpensive, which actually makes it a no-brainer if you’re selling on Amazon, even in low quantities, because you have to know what your profit is. Amazon has gotten harder over the years and you really need to scrutinize and figure out what your true profit is.

50:20
and look at your winners and your losers if you want to be in the long game selling on Amazon.

50:29
Correct. This was actually our idea and vision and intention. We want to make it affordable, especially for new sellers, because when I was a new seller, I didn’t want to pay too much money for the software because you have so many expenses and have so many Amazon fees and you don’t want to pay too much for the software. So Vlad, thanks a lot for coming on and talking about some of these hidden fees.

50:52
And just a public service announcement, you whenever you see some guru advertising something and showing their numbers, just realize that, you know, revenue is kind of for vanity and profit is the important part in any business. Thanks so much, Steve. Yep. Thanks for coming on.

51:18
Hope you enjoy that episode. Now if you’re going to sell on Amazon, you absolutely have to use Amazon reporting software. Otherwise you’ll have no idea what your profits are and it’s really easy to lose money. Sellerboard is the least expensive solution that I’ve ever found. And once again, I want to thank Zipify apps. If you want to instantly boost your revenue with pre and post purchase upsells, go check it out at zipify.com. I also want to thank LinkWisper. If you want to take search engine optimization seriously with your blog,

51:46
then you absolutely need an internal linking tool like Link Whisper. Go check it out at linkwhisper.com. Now I talk about how I use these tools on my blog, and if you are interested in starting your own eCommerce 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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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!

457: Exactly How I’d Build A New Ecommerce Business Today From Scratch – Family First Friday

457: Exactly How I'd Build A New Ecommerce Business Today From Scratch

Welcome to Family First Fridays, a new segment of the podcast in honor of my book, The Family First Entrepreneur. In these solo episodes, I present to you my personal thoughts about family, entrepreneurship, and life.

Today, I outline exactly what I would do if I were to start an e-commerce business today from complete scratch.

What You’ll Learn

  • The best ecommerce business models
  • The exact steps that I would take to start an online store this year
  • What to avoid in ecommerce

Other Resources And Books

Sponsors

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SellersSummit.com – Sellers Summit is the conference I run every year that caters to ecommerce sellers all over the world. Click here and grab your ticket.
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Transcript

00:00
You’re listening to the My Wife Could Her Job podcast, where I teach you how to start a business or side hustle from the perspective of a father with two kids. Welcome to a new segment to the show, which I’m calling Family First Fridays in honor of my book, The Family First Entrepreneur. If you haven’t picked up the book yet, you can get over $690 in free bonuses for pre-ordering the hard copy over at thefamilyfirstentrepreneur.com. And in these solo episodes, I will be presenting to you my personal thoughts about family

00:29
entrepreneurship, business, and life, and we’ll talk about a wide variety of topics. Today, we’re gonna talk about exactly what I would do if I were to start an e-commerce business today. Now, if you’re thinking about starting an e-commerce business this year, it’s important to have a plan in place to ensure that you are successful, because the world of e-commerce is constantly changing, and in this episode, I’m gonna walk you through the exact steps that I would take if I were to start an online store this year. Now, first off, you gotta choose a business model.

00:58
Now, if you’re on YouTube or Facebook, you’ve probably seen ads for drop shipping or retail arbitrage or Amazon wholesale. And in the current landscape, I would not do any of those business models because it’s short term thinking. Sure, you might be able to make a couple bucks here and there, but it’s not going to be a business with longevity. I’ve been running my e-commerce store over at Bumblebee Linens for 17 years now, and it’s still going strong because I own my own brand and my products. And you got to think long term. For example,

01:28
Drop shipping has largely been nerfed by Amazon. And back in the day, brands wanted drop shippers in order to increase their sales force without hiring. But today, Amazon owns over 50 % of e-commerce, and it’s super easy for any brand to list their products on Amazon and keep all the profit. Why give a 50 % discount to an online retailer and handle shipping and fulfillment when you can just leave it up to Amazon? When it comes to selling wholesale, you are selling other people’s products

01:57
which means that there are many other vendors selling the exact same thing. And this always leads to price erosion. Now the way to be successful in e-commerce today is to own your own brand and have full control. This is why I would only consider doing private label today. Now that’s not to say that you can’t start out drop shipping or doing wholesale, but it should only be a stepping stone to private label. All right, let’s go through the steps now on what I would do. Step one, you got to find a product.

02:26
And obviously you can’t get started unless you have something to sell. And the best way to do this is by looking at your own everyday problems and just find products that solve them. By identifying a problem that you or people around you have and finding a product that solves that problem, you can be sure that there’s any market for that product. For example, we started selling handkerchiefs online because we couldn’t find them anywhere. My friend started selling decorative pill holders because she wanted one.

02:54
I run a class of over 5,000 students and the most successful students focus on products that leverage their specific skills or based on areas where they have knowledge. For example, Amanda Wittenborn makes millions selling custom-designed party supplies because that’s what she’s good at. My friend Rob sells an attachment for drone remotes because he’s into drones. If you’re completely clueless about what to sell, you can leverage tools like Jungle Scout that can help you find products that have high demand but low competition.

03:23
Tools like Jungle Scout will allow you to do market research on Amazon to find out how much money every listing makes and allow you to gauge the level of competition. You can also do research with tools like Ahrefs to see what people are searching for on Google or Terapeak to see what’s selling on eBay. By the way, if you want more information on how to find profitable products to sell, make sure you sign up for my free six day mini course over at mywifequitterjob.com slash free. Step two, got to find a supplier and the goal

03:52
is to find a supplier who can provide you with the product you want at a price that allows you to make a profit. Now when it comes to private label, your goal is to be able to achieve at least a 66 % gross margin on your sales. This means that if you sell something for $9, you get to keep $6. There are a few different ways you can go about finding a supplier. One popular method is to use a website like Alibaba to search for manufacturers of the product you want to sell, and you can filter your search by location.

04:19
price and other parameters to find the best supplier for your needs. Another option is to attend trade shows or fairs that are related to your product. And this can be a great way to meet manufacturers and suppliers in person. And it’s also an opportunity to see their products up close. That before COVID, I used to go to the Canton fair every other year. You can also consider hiring a sourcing agent who can help you find a supplier that meets your needs. And they’re just experts in finding and vetting suppliers. And they can save you lot of time and effort at a cost of

04:50
When you find a supplier that you’re interested in working with, be sure to communicate your expectations and ask for samples. Make sure you’re happy with the quality. Check for the minimum order quantity and the pricing of your product. And if you’re happy with what you receive, you can then proceed to order a small batch of products to test the market. And then move on to larger orders once you’ve validated that your product is in demand. Now it’s important to note when working with a supplier to make sure that you have a clear and written agreement about the terms of the deal

05:18
including delivery times, payment methods, returns and guarantees on quality. So for example, when we order linens, we expect a defect ratio of less than 3%. It’s also important to keep open communication with your supplier to ensure that everything runs smoothly. And we have all of our vendors on WhatsApp and WeChat. Step three is to validate your product. Once you have samples, your goal is to validate the demand for your product before making a large investment on inventory. And you got to try to sell them to gauge how well the product will sell.

05:48
There’s a couple different ways you can go about selling your samples. One way is to join Facebook groups that are related to your product and start promoting your product there. You can also reach out to group admins to see if you can post your product in their group. For example, when we first started selling wedding handkerchiefs, I started posting in the wedding forms. I didn’t try to sell anything. I would just ask questions like, hey, I’m looking for a hanky where I can put my initials on it. Do you guys know where I can find such a thing? And then later I would say something like, hey, I finally found a place online, but I had to buy a bunch.

06:18
If any of you want my extras, let me know. Another option is to list your product on eBay. This can be a great way to validate demand for your product as well as test different pricing strategies. You can also list your product on other online marketplaces like Amazon or Etsy. You can also use Jungle Scout to see how Amazon’s sales are for that product, do some competitive analysis and check which brands are doing well in the market and how much they are selling it for. Now it’s important to note that in this step, you don’t have to make a big investment yet.

06:48
Just sell a couple samples and test the waters. And in this way, you can see if people are willing to pay for your product. You can also get great feedback from your early adopters. And from this, you can then make adjustments to your product and pricing before making a large investment in inventory. The next step is to list your product on Amazon. Now, one thing that I do differently from other e-commerce business owners is that I always test my products on Amazon first. Amazon owns 50 % of e-commerce. They have a large built-in audience of buyers.

07:18
Now takes some work to launch a website, so the easiest way to generate sales quickly is to sell on Amazon. But remember, the end goal is to own your own branded website. If your stuff sells well on Amazon, then you should start working on your website immediately. Here’s a brief list of steps to get started on Amazon. And by the way, I cover Amazon pretty extensively in my course. Just do a search on mywifequitterjob.com and I actually cover everything for free. Now you got to list your product. To list your product on Amazon,

07:46
you’ll need to set up an Amazon seller account. And once you have an account, you can list your product by creating a listing on Amazon’s Marketplace and make sure your listing follows Amazon’s guidelines, is well optimized and has great images and a description. You also want to run Amazon PPC ads. Amazon’s pay-per-click advertising program can be a great way to generate sales for your product. And by running these ads, your product will show up at the top of the search results for relevant keywords, increasing the chances that customers will find it.

08:15
And to get the most out of your Amazon listing, you should make sure to follow all the best practices for Amazon optimization. This includes optimizing your product title, your bullet points, and your description with relevant keywords, making sure you have high quality images of your product, and pricing your product competitively. And if you want more information, you can just sign up for my Amazon mini course found on mywifequitterjob.com. Now, by listing your product on Amazon, you can reach a large customer base and generate cash flow

08:43
while you work on building your own website and brand. And keep in mind that selling on Amazon can be competitive and cutthroat. So my long-term strategy is to validate on Amazon and then focus on your own website. Use your Amazon earnings to fund your brand. Step number five is to start your own website. Now, if your initial samples or small order sells out, you should then order a larger batch and start your own website. And the goal is to establish your own brand and control the customer experience by building a property that you own.

09:13
And depending on your technical expertise, here are the shopping carts that I recommend. Now, if you’re not tech savvy, you have the budget, and you want the best supported platform, then just go with Shopify. Shopify is user-friendly and easy to use, and it allows you to set up your own online store quickly and easily. And Shopify has by far the best third-party ecosystem, and you can find plugins that do almost anything. Now, if you’re on a budget, you can use Shift for Shop or WooCommerce, which are free to use. Now, the main downside,

09:43
is that they aren’t as user friendly as Shopify, but they are just as powerful. And then finally, you can also go with BigCommerce, which is Shopify-like, but cheaper. And what I like about BigCommerce is that you don’t get nickel and diamond with apps. Most of the functionality you need comes out of the box. Now, once you’ve chosen your platform, you can then start customizing your website by choosing a theme, adding pages and products, creating categories, and setting up payment and shipping options. You’ll want to make sure that you incorporate your value proposition.

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and why you are different on your website and display it prominently on top of the fold. This will help visitors to understand why your brand is unique and why they should choose you over your competitors. And the goal of your website is to establish your own brand, control the customer experience, and differentiate yourself from your competitors. You’ll be able to build a loyal customer base that you can then market over time through email marketing, SMS marketing, and other strategies. Step number six, implement email marketing.

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Now the average conversion rate for an online store is only 2%, which means that 98 % of your customers will visit and leave your site without buying anything. And the goal with email marketing is to retain customers and encourage repeat business by sending targeted automated email campaigns. Here are the four automated email flows that you should implement. The first email campaign you should set up is for abandoned carts. And these are triggered when a customer adds them to their cart but doesn’t complete the purchase. By sending them an email,

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reminding them of their items in their cart, and possibly including a special offer, you can encourage them to return to your website and complete the purchase. Another campaign you should set up is a pre-purchase sequence. These are a series of automated emails that are sent to customers who have shown interest in your products but haven’t bought yet. And the purpose of these emails is to build trust and educate the customer about your product and why they should buy it. Once a customer makes a purchase, you can then set up a post-purchase campaign

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to thank them for their purchase and encourage them to leave a review or make a repeat purchase. And for customers who haven’t made a purchase in a while, you can set up a WinBack campaign to re-engage them and encourage them to make another purchase. Now, to get people to sign up for your email list, you must set up a lead magnet email sign-up form. You can offer free shipping or a discount code as an incentive for them to sign up. And by implementing email marketing and automating these campaigns,

12:04
you can effectively communicate with your customers and encourage repeat business on autopilot. And the same philosophy is true with SMS or text message marketing. Now like email, the goal with sending texts is to engage customers in real time and increase conversion rates by sending messages that customers get directly on their phone. By the way, I use Klaviyo for email and Postscript for SMS. Step number seven is content creation. Now let’s shift gears now and just talk about customer acquisition.

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I like to use a three-prong attack. The first prong is content. With content, the goal is to generate free organic traffic to your website by producing valuable and informative content that attracts your target audience. And one way to create content is through blogging. By creating a blog on your website, you can share helpful tips, industry news, product reviews, or behind-the-scenes information about your business. And you can also include calls to action within your blog post to encourage visitors to explore your website further.

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Our blog and search engine optimization generates about 25 % of our sales for free. Another way to create content is through YouTube. By creating videos that are related to your product or industry, you can attract a large audience, establish your brand as an authority, and drive more traffic to your website. My YouTube channel over at MyWifeQuitterJob makes $300,000 a year just on ads alone. Podcasting is another way to create content and reach a large audience. By creating audio content on a regular basis,

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you can establish yourself as a thought leader in your industry and attract a dedicated following. Now this podcast is a top 25 show on all of Apple podcasts in the marketing category. And yet you’re listening right now. And obviously if you’re listening to it, it must have affected you in some way. can also create content for social media platforms like Facebook, Instagram, and Twitter. And by regularly posting engaging and informative content, you can attract a large following and drive more traffic to your website. Now in order to make content work,

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You have to be consistent and that requires that you put yourself on a content schedule. This could be one post or video per week or whatever schedule works best for your business. And by consistently creating valuable and informative content, you can attract a large and engaged audience, establish your brand as an authority and drive more traffic to your website. And this will also help you to attract customers who are likely to be interested in your products and will increase the chances of them converting into buyers. Step number eight is advertising.

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This next prong is paid advertising and the goal is to generate immediate sales to reach your target audience on platforms like Amazon, Google, Facebook and Instagram. Facebook ads are a powerful tool for reaching your target audience and driving sales. And by creating highly targeted ads that are relevant to your target audience, you can increase the chances they will click through to your website and make a purchase. Google ads is another powerful advertising platform you can use to drive sales. If your product has high search intent, you can create ads that are triggered

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by relevant keywords and appear at the top of Google search results. Now, the exact methodology for running ads is beyond the scope of this episode, but feel free to browse my YouTube channel or my blog for more videos and content on how to run ads. Anyway, by advertising on Facebook and Google, you can generate immediate sales and reach a large audience quickly, but just keep in mind that these ads can be expensive. So it’s important to track your results, make adjustments as needed.

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Step number nine is to focus on your best customers. Most people focus all their efforts on getting new customers, but the bread and butter for any business is repeat business. After all, it’s much easier to convert someone who has already bought. And the goal with this step is to identify and nurture relationships with your best customers in order to drive more sales and increase customer loyalty. Now to identify your best customers, you can just start by looking at metrics such as lifetime value, purchase frequency, and average order value.

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Customers who have a high lifetime value, purchase frequently and have a high order value are likely to be your best customers and should be a priority for your business. Once you’ve identified your best customers, you can start building relationships with them by providing them with excellent customer service, special offers and discounts, or exclusive access to new products or services. Here’s what we do. We go up all of our best customers of phone call, offer them a special discount that can be used at any time,

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and a dedicated rep to handle their orders. Most of our big customers are wedding and event planners who buy in bulk from us, and they represent a large part of our business, so we make them feel special. You can also create a special Facebook group where your best customers can make suggestions and give feedback on products, and this will help you improve your products and services as well. And by focusing on your best customers, you can increase customer loyalty, drive more sales, and improve your overall customer experience. And by identifying the most valuable customers,

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You can allocate resources and energy on keeping them happy and engaged and this will help to increase customer lifetime value and drive a lot more large repeat purchases. Now I’ve said a lot in this episode, so let’s put it all together. Once you find a product and a supplier, you want to first validate your product on platforms like eBay and Amazon to make sure that they’re going to sell. Then you want to start working on your own e-commerce website as soon as possible.

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Implement automated flows to retain your visitors and focus on your best customers. And if you do all that, I guarantee that over time, you will have a successful e-commerce business. By the way, if you’ve enjoyed this particular episode, make sure you sign up for my free six day mini course over at mywifequitterjob.com slash free. And just make sure you pre-order my book, The Family First Entrepreneur over at thefamilyfirstentrepreneur.com.

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and make sure on that page you redeem your $690 in free bonuses.

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