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Speaker 2: Be protected sponsored by the United States Department of Homeland Security. Now, Josh,
Speaker 2: I've been an Amazon member for about that time. But
Speaker 2: what turns you on to the FBA side of it?
Speaker 3: So the FBA side of it, fulfillment by Amazon is
Speaker 3: what FBA is is one of the best ways that,
Speaker 3: in my personal opinion, you can sell on Amazon. So
Speaker 3: there's a few different types of ways to sell on Amazon.
Speaker 3: I'm glad you asked that question. Like I previously said,
Speaker 3: I was hustling stuff. So when I was going online
Speaker 3: trying to find ways to make money, I found out
Speaker 3: about arbitrage, which is another way you can sell online,
Speaker 3: which is where you take brand name products that already exist,
Speaker 3: large brand name products, you buy them at a discounted price.
Speaker 3: So if they're on sale or they're at the thrift
Speaker 3: store or something like that, and they're below MSRP, which
Speaker 3: is manufactured suggested retail pricing, you buy it at that
Speaker 3: discount and you sell it at full price and you
Speaker 3: keep the difference. So I was already doing that. I
Speaker 3: was taking my little bit of money and I was
Speaker 3: going to the Salvation Army and trying to find designer clothing,
Speaker 3: and I was reselling it on eBay for that full markup.
Speaker 3: And I was doing the same with Amazon. I was
Speaker 3: trying to find stuff online discounts coupons and buy it
Speaker 3: on sale and sell it at full price and keep
Speaker 3: the difference. So when he told me about Amazon, I
Speaker 3: started researching and learning about Amazon. I learned about arbitrage
Speaker 3: and I knew that you could do it on Amazon,
Speaker 3: but that was like a hustle. I wanted a real
Speaker 3: business that was going to work for me because my
Speaker 3: mentor always told me that the true key to success
Speaker 3: is to have your money work for you without you
Speaker 3: working for it. Like he told me, like, you got
Speaker 3: to eliminate the hustle mentality, Like, of course you got
Speaker 3: a hustle to get things started, but the end you
Speaker 3: should have the end in mind in the beginning, and
Speaker 3: the end is to have your business work for you
Speaker 3: without you working for it. He was always telling me
Speaker 3: about less touches and to work on your business, not
Speaker 3: for your business. So when I was looking at these
Speaker 3: different methods, I was like, I'm already doing this and
Speaker 3: I'm still hustling stuff and it's not sustainable. Like at
Speaker 3: that time, I didn't know what sustainable was. But he
Speaker 3: would break things down to me, like, you need something
Speaker 3: that you can sell over and over and over again.
Speaker 3: What you're doing is making you some fast cash. But
Speaker 3: you can't find these clothes on sale. You can't find
Speaker 3: these products on sale all the time. So when looking
Speaker 3: at these different methods and stuff in business. I said,
Speaker 3: you know what, like the light really, the light bulb
Speaker 3: really went off. I'm like these large brands like beat
Speaker 3: By dre or Apple, these large brands are finding products
Speaker 3: that have demand that people need, that they're buying every
Speaker 3: single day, irregardless of the day, the month, the age,
Speaker 3: the gender, and they're using Amazon to sell it. Right,
Speaker 3: they don't need a physical store. You don't. You don't
Speaker 3: need to do this. You don't need to make some
Speaker 3: special product. And there's products that people are gonna continuously need.
Speaker 3: So that's when I learned the difference between the two,
Speaker 3: and I dove in to FBA, which is private label,
Speaker 3: so you can sell on Amazon arbitrage, private label, or wholesale.
Speaker 3: These are different business strategies, but the strategy that I
Speaker 3: actually sell right, the business model is called private labeling.
Speaker 3: So instead of selling other people's products, large brand name products,
Speaker 3: we find products that people want that have high demand,
Speaker 3: low competition, and we create our own brands and then
Speaker 3: we sell them. So that's what I specifically do.
Speaker 4: So can we get into it the basic basic ground
Speaker 4: level one one explanation of what is FBI Understand that
Speaker 4: you're selling and is fulfilled by Amazon. You sell of Amazon,
Speaker 4: but what does it actually entail? Can you give the
Speaker 4: one oh one on the situation?
Speaker 3: Yeah? Yeah, So FBA is fulfillment by Amazon. And this
Speaker 3: is how to hold. Like a bird's eye view looking down.
Speaker 3: This is a hold how the whole business works. So
Speaker 3: we find these products. Once we find these products, we're
Speaker 3: gonna find a supplier. Rather in the US or overseas,
Speaker 3: doesn't matter where the supplier is at. The supplier is
Speaker 3: gonna make our product. Once that supplier makes our product,
Speaker 3: they're gonna ship it directly to Amazon. And this is
Speaker 3: where the FBA kicks and the fulfillment by Amazon. Once
Speaker 3: Amazon receives that product in their warehouse, they're gonna facilitate it.
Speaker 3: But then they're gonna disperse it to other Amazon warehouses.
Speaker 3: And that's how we They can ship products. And it
Speaker 3: can be Prime eligible, which like eighty percent high eighty
Speaker 3: percent of everybody who shops on Amazon or Prime members,
Speaker 3: so over one hundred and fifty million Prime members in
Speaker 3: the US. And basically that means whenever we go online
Speaker 3: on Amazon and shop, we get our product to our
Speaker 3: doorsteps in two days. So Amazon facilitates it disperses it
Speaker 3: to other Amazon locations, and then when consumers people like
Speaker 3: me and you, go buy products online, Amazon picks it,
Speaker 3: they pack it, they wrap it, use their own boxes,
Speaker 3: their own labels, their own workforce. You know, it's under
Speaker 3: their warehouse, and then they ship it directly to customers.
Speaker 3: And if we get it and we're like, yo, this
Speaker 3: isn't what we wanted, or you know, it was warehouse damaged,
Speaker 3: or they just decided they don't want it anymore, Amazon
Speaker 3: even handles the customer service. So literally all we do
Speaker 3: is we find the products, we find the supplier, and
Speaker 3: we manage our inventory in our advertising, which is all
Speaker 3: done from the Seller Central portal, which Amazon created, And
Speaker 3: that's like the bird's eye view of how the whole
Speaker 3: system works.
Speaker 4: So the products aren't like company products, that actually just
Speaker 4: random products and you're labeling it under your company. That's
Speaker 4: kind of what I'm understanding. So can you give us
Speaker 4: an example of like what kind of products that would
Speaker 4: entail for this?
Speaker 3: Yeah? Absolutely, so I got I got like they're all
Speaker 3: around the house, this little lent roller like I've just
Speaker 3: used before the interview to get the lin off my shirt.
Speaker 3: We would find a product like this like, there's no
Speaker 3: label on this anywhere. And let's just say that there's
Speaker 3: a huge brand. Just because a huge brand sells this
Speaker 3: product doesn't mean that we can't sell this product. You
Speaker 3: just can't sell it as them if you're not a licensee.
Speaker 3: So we would find a product that people have a
Speaker 3: demand for, that people are going to use every single day,
Speaker 3: irregardless of where they live, how old they are, gender,
Speaker 3: et cetera. And then we would create our own brand,
Speaker 3: so now it would be private labeled by our brand.
Speaker 3: We would put our brand on it, we would ship
Speaker 3: it directly to Amazon and they do the rest. See
Speaker 3: what like a lot of people don't know, Like when
Speaker 3: you think of like when you need to blow your nose,
Speaker 3: you say, hey, can you pass me that Kleenex? Right?
Speaker 3: Kleenex is a brand. The name of the product is tissue, right,
Speaker 3: So that and that's like brand notoriety. That's what we
Speaker 3: do is we try to become APEX predators for these
Speaker 3: different categories, saying like when you get out the shower,
Speaker 3: use a Q tip, right, Well, it's actually a cotton swab.
Speaker 3: Q tip's the brand name. It's a private label brand name.
Speaker 3: We find these products that people need and we try
Speaker 3: to become household names. We just find ways to differentiate
Speaker 3: them and prove them and to gain market share through
Speaker 3: differentiating the products. And that's what we do.
Speaker 2: So you put your logo on it, you put your
Speaker 2: brand on it. But after that it comes to a
Speaker 2: manufacturing standpoint, like what's that process like?
Speaker 3: So once we find a product, so first we want
Speaker 3: to verify and validate the product before we even order it.
Speaker 3: So a few things we do is make sure it's
Speaker 3: not a seasonal product. So I don't know if y'all
Speaker 3: got kids, but I got kids and we had these
Speaker 3: fidget spinner things all around the house. Right, that's a
Speaker 3: trending product. It went up like this and just as
Speaker 3: quick as it went up, it knows dives. So once
Speaker 3: we verify that it's not a trending product, we move
Speaker 3: forward and you can go to Google Trends. It's a
Speaker 3: free tool. Type in the name of your product and
Speaker 3: you can look at a historical chart, so it'll show
Speaker 3: you like, for the last five years, ten years, has
Speaker 3: this product been selling every day? So once you identify
Speaker 3: it's going to sell every single day, because that's what
Speaker 3: we want. We don't want to hit or miss. We
Speaker 3: want something that's going to make money every single day.
Speaker 3: After we knock out the trending, then we look at
Speaker 3: the seasonality so we can go on Google Trends again.
Speaker 3: If it's only selling tours October like pumpkin carving kit,
Speaker 3: or November and December like Christmas lights, then it's a
Speaker 3: seasonal product. We don't want that. We want January through December.
Speaker 3: So after we do these little things to verify and
Speaker 3: validate that product, we go to ali Baba, which is
Speaker 3: where we find the suppliers. It's free to use ali Baba.
Speaker 3: You don't need any type of special account, nothing like that.
Speaker 3: And we're gonna go and type in the name of
Speaker 3: our product. So just we would type in lent roller
Speaker 3: into ali Baba, it's going to show all these manufacturers.
Speaker 3: We want to reach out to the manufacturer and we
Speaker 3: want to do our due diligence and make sure that
Speaker 3: they're one hundred. So how long have they been in business,
Speaker 3: how many employees do they have, what is their gross
Speaker 3: annual revenue, how many star ratings do they have? Look
Speaker 3: at them on Better Business Bureau and prevet them to
Speaker 3: make sure that they're legit. And then that's where you
Speaker 3: do your negotiating. Once you come to a conclusion on
Speaker 3: the price, you guys agree on a price. You find
Speaker 3: a manufacturer, you're going to give them thirty percent down
Speaker 3: on the product, so that starts and initiates the manufacturing.
Speaker 3: Once the man manufacturing's done, you pay the rest. Once
Speaker 3: you pay the rest, they're gonna go ahead and ship
Speaker 3: the product directly to Amazon. So they're gonna handle getting
Speaker 3: it through customs. They're gonna find the freight forward or
Speaker 3: everything for you. It's gonna be shipped directly overseas if
Speaker 3: you're using a China supplier and be checked in by Amazon.
Speaker 3: If you're using US supplier, then it's from the supplier's
Speaker 3: warehouse directly to Amazon. Then Amazon checks it in and
Speaker 3: you go back to that other process, right, They pick it, packet,
Speaker 3: ship it, handle returns.
Speaker 2: So when you're in Google Trends, from what I read,
Speaker 2: you want to find products that have high demand and
Speaker 2: low competition. Is there a certain statistic or a metric
Speaker 2: that you use when you're trying to find that.
Speaker 3: Yeah, so we use Google Trends for seasonality and to
Speaker 3: see if it's a trending product.
Speaker 4: Can you explain what Google Trends are.
Speaker 3: Yeah, So Google Trends is a website owned by Google.
Speaker 3: It's a free tool owned by Google, and it's a
Speaker 3: way to measure analytics on products. So if you go
Speaker 3: to Google Trends, it's products, celebrities, countries. You can go
Speaker 3: and type into anything and it's going to show you
Speaker 3: like historical charts and analytics on that thing. If you
Speaker 3: go to a movie, to'll show you when the movie
Speaker 3: was created, how long the movie's been out, how many sales.
Speaker 3: If you go and put a product in it, it'll
Speaker 3: tell you the first time the product showed up, how
Speaker 3: long it's been around, how many people on Google are
Speaker 3: going to type for this product. And the reason why
Speaker 3: we use Google Trends is because Amazon is the search
Speaker 3: engine just like Google, and Google's the largest search engine.
Speaker 3: So even though it's not Amazon direct metrics, it's very
Speaker 3: similar and very close because Google is a huge search engine.
Speaker 3: So we go and we find that data from Google Trends,
Speaker 3: and that's how we find out, Hey, this product selling
Speaker 3: you know, twelve months out the year. This product has
Speaker 3: depth of market, meaning it didn't just spike like the
Speaker 3: fidget spinner. Like if you go and type this product,
Speaker 3: and you're going to see for the last ten years,
Speaker 3: it's been selling every single day, it's been selling every
Speaker 3: single month. So we want to see a nice horizontal chart.
Speaker 3: When we look for products that have high demand low competition.
Speaker 3: There's no exact metric that's going to say like, hey,
Speaker 3: this product has high demand low competition. What we want
Speaker 3: to look for is we want to go direct to
Speaker 3: Amazon and type in the name of the product, and
Speaker 3: when we're looking at all the different sellers, we want
Speaker 3: to see how many of those sellers have under one
Speaker 3: hundred reviews, have under two hundred reviews that are still
Speaker 3: selling you know, ten plus units a day. If you're
Speaker 3: selling ten plus units a day, that's three hundred units
Speaker 3: a month. So that's like the bare minimum metric I
Speaker 3: look for. So that would equal low competition, and that's
Speaker 3: how we identify if it has high demand low competition. Right.
Speaker 3: Another way is there's something called BSRO, which stands for
Speaker 3: best seller Ranking. If you're on an Amazon listing and
Speaker 3: you scroll down, you'll actually see category and then subcategory.
Speaker 3: So category may be home products, subcategory may be lent roller, right,
Speaker 3: and then it'll have a number next to it that's
Speaker 3: the BSR Bestseller ranking. So that's based out of a
Speaker 3: million out of let's just say there's a million sellers.
Speaker 3: It's based out of all million sellers. So we look
Speaker 3: at that listing and it's number ten. That's one of
Speaker 3: the top selling products. So we'll look at that competitor.
Speaker 3: We'll look at what they're selling, how many units they're selling,
Speaker 3: to make, you know, to make a statement as to
Speaker 3: does this product have high demand low competition.
Speaker 4: So that's interesting. I just learned something. So I was
Speaker 4: wondering what actually that meant to be a private label,
Speaker 4: But that's really interesting. So the private label is you
Speaker 4: pick a nondescript item like a lint roller, which nobody
Speaker 4: really knows who makes lint rollers, right, So now you
Speaker 4: put your private label on that, which is x Y
Speaker 4: and Z lint rolling company. So you get the lint
Speaker 4: rollers from China, some warehouse in China, and now you
Speaker 4: actually branded with your company, your logo whatever, x Y
Speaker 4: and Z lint rollers. You put it on Amazon and
Speaker 4: then they buy it from Amazon, so you never actually
Speaker 4: get receipt of the product. It goes to Amazon's website
Speaker 4: directly from the warehouse.
Speaker 3: We never touched it. It could be US, it could
Speaker 3: be China where wherever, we never touch it.
Speaker 4: And then when somebody goes to Amazon and types in
Speaker 4: lint roller, your product shows up on the first page.
Speaker 4: If you can make it to the first page, we'll
Speaker 4: talk about that, and nobody ever cares, like what the
Speaker 4: company is that makes the lint roller. They usually just
Speaker 4: go for like the lowest priced item, I think, or
Speaker 4: product you know the best reviews or who has the
Speaker 4: most star rating or whatever. And it's a variety of
Speaker 4: different products like that, like lint rollers, those things that
Speaker 4: you like stuff into your shoe to like form your shoe,
Speaker 4: nail clippers, like, there's all kinds of stuff that's just
Speaker 4: really nondescript. A couple of weeks ago, even toilet paper,
Speaker 4: when nobody could buy toilet paper. People's going on Amazon
Speaker 4: and buy toilet paper. You're not really tripping off of
Speaker 4: like it gotta be Sherman. It's like at this point,
Speaker 4: you just get whatever you can get. So now that
Speaker 4: I'm thinking about it, the more and more I think
Speaker 4: about it, I just think of different nondescript products that
Speaker 4: doesn't really matter what the name of it is, because
Speaker 4: nobody ever even knows the name of these products. It's interesting.
Speaker 4: I never thought about that before, So this is crazy.
Speaker 4: So how much money and you actually make in this business?
Speaker 4: Because now I'm actually interested, this is extremely interesting. How
Speaker 4: much money can you make on average? I know it
Speaker 4: probably varies, but on average, how much money can you make?
Speaker 4: I'm interested?
Speaker 3: Yeah, So what we recommend. What we recommend is nothing
Speaker 3: less than thirty percent net profit margins. So net is
Speaker 3: going to be after everything's set and done, gross would
Speaker 3: be like the total number net is that keep that
Speaker 3: number that you get to keep. So we like to
Speaker 3: shoot for thirty as the minimum. Typically it's gonna be
Speaker 3: around forty to fifty percent, but it depends on the product,
Speaker 3: depends on the time of the year. Towards the end
Speaker 3: of the year, you know, price is going to be
Speaker 3: a little bit higher, on logistics, on fulfillment fees, just everything.
Speaker 3: But typically we like to see between thirty and fifty
Speaker 3: percent profit margin. This is after we buy our product,
Speaker 3: after which is the cog or cost of goods, after
Speaker 3: we ship our product, which is logistics, after Amazon stores
Speaker 3: our product, because we're paying fees. After we sell a product,
Speaker 3: they pick it, they use everything. After everything's set and done,
Speaker 3: we want to make thirty to fifty percent profit. So
Speaker 3: if we're selling a product for twenty bucks, we want
Speaker 3: to keep six dollars. And if you could be around
Speaker 3: thirty three percent, which is right around that bare minimum number,
Speaker 3: every three units you sell, you're doubling your money. So
Speaker 3: that's how you can really, you know, start to grow
Speaker 3: and scale.
Speaker 2: Yeah, this is so crazy because for so long we've
Speaker 2: been taught like, having generic things is not the thing
Speaker 2: to do, right, and this is a prime example of yes,
Speaker 2: this could be a big business of having generic items.
Speaker 2: But my question is what's Amazon's cut? Like, I know
Speaker 2: they take a percentage, what's that cut in this deal?
Speaker 3: Yeah, so it fluctuates. They're constantly changing like how much
Speaker 3: they're charging in a reference to the referral fee, but
Speaker 3: it's typically right around fifteen to twenty percent of the
Speaker 3: product costs. So if you're selling the product for twenty bucks,
Speaker 3: they're going to take you know, they're going to take
Speaker 3: four bucks. But that's everything storing the product, shipping the product,
Speaker 3: facilitating the product. That's the referral fee and everything. And
Speaker 3: like I said, on top of their fee and the
Speaker 3: product costs and the shipping and the advertising, and everything else.
Speaker 3: We still want to make that thirty to fifty percent
Speaker 3: profit margin because we're going directly to the manufacturer. We're
Speaker 3: not going to a middleman. We're not going to someone
Speaker 3: who's wholesaling these products. We're not going and buying products
Speaker 3: at a discounted rate. We're going directly to the place
Speaker 3: where they manufacture it, where the large brands go. We're
Speaker 3: going where Nike goes, We're going where beats By dra goes.
Speaker 3: We're going while all the top guys go, and we're
Speaker 3: getting it manufactured. So that's how we make our money,
Speaker 3: and that's how we get our margin where it needs
Speaker 3: to be.
Speaker 4: That's interesting because I always kind of knew that the
Speaker 4: money was in the non descript items because if you
Speaker 4: think about it, like, let's take something like a refrigerator.
Speaker 4: The average person might buy three, maybe four refrigerators, like
Speaker 4: in their entire life, like life time, they might buy
Speaker 4: four refrigerators in the entire life. Maybe not even that much.
Speaker 4: But you pick something like a lint roller or you know,
Speaker 4: Q tips things like that.
Speaker 5: That's reoccurrent.
Speaker 4: Yeah, it's reocurrent thing. You might buy one hundred lint
Speaker 4: rollers gave you ho.
Speaker 3: It's a secret sauce. This is the secret sauce right here.
Speaker 3: The reason why a perfect product. Let me just break
Speaker 3: this down. So I like products that are lightweight. So
Speaker 3: there's two different products. There's lightweight products, there's oversized products.
Speaker 3: So lightweight products would be something like this. Oversize would
Speaker 3: be the chair I'm sitting in. So lightweight products are
Speaker 3: cheaper to manufacture, cheaper to ship, ship, cheaper to facilitate
Speaker 3: number one. Number two. The reason why this is a
Speaker 3: beautiful product is because this is a usable product. So
Speaker 3: I like consumable products, usable products in giftable products because
Speaker 3: people continuously use them. So if I buy, like, let's
Speaker 3: just say this desk that my computer's setting on, I
Speaker 3: only need that once and that's it said and done.
Speaker 3: This lent roller, once you run out of the tape,
Speaker 3: you might buy the lent roller set, but once you
Speaker 3: run out of the tape, you need the tape again.
Speaker 3: Or if we have a giftable product that can be
Speaker 3: gifted for a man or a woman, guess what. There's birthday's,
Speaker 3: father's day, Mother's Day, Valentine's Day, graduation. They're constantly being given.
Speaker 3: Another example is supplement and supplements are very small very cheap,
Speaker 3: to make, very small, very cheap, to ship, very cheap,
Speaker 3: to fulfill, and guess what, at the end of the
Speaker 3: thirty days, you need it again. So you can actually
Speaker 3: have a subscribe and save, meaning it's a continuity package.
Speaker 3: People order it and they get it every single month.
Speaker 3: So some of the products I look like, I'm in
Speaker 3: the beauty really big and I'm in office in the
Speaker 3: office products very big because these are products that you
Speaker 3: constantly use that you need to re order. So I'm
Speaker 3: constantly thinking, like, we don't want a one night stand
Speaker 3: with our customers. We want the marriage. And so many
Speaker 3: people focus on that one night stand, like how can
Speaker 3: I make the most amount of money on the first touch,
Speaker 3: or what's the product that people were gonna buy a
Speaker 3: lot of on that first touch. I'm thinking down the road,
Speaker 3: what's a product that you know, I may not crush
Speaker 3: it on the first touch, but they're gonna be locked
Speaker 3: in and we're gonna have a marriage. They're gonna need
Speaker 3: it every single month for the next year, the next
Speaker 3: two years, next three years. And that's something like amateurs
Speaker 3: they monetize the front, and experts in this business they
Speaker 3: monetize the back. They don't focus on the one night stand.
Speaker 3: It's that marriage dare you have it?
Speaker 4: Ladies and gentlemen, whole lot of game. So we gave
Speaker 4: you the one on one. So in the next segment,
Speaker 4: we're gonna go over some steps to get you up
Speaker 4: and running so you can get started, all right. Yeah,
Speaker 4: so in this segment we're going to actually go over
Speaker 4: the steps actionable items. But you know, I was just
Speaker 4: thinking about it, and that just really makes a lot
Speaker 4: of sense. And sometimes the simplest things is just mind
Speaker 4: blowing and it's like I never really thought about it,
Speaker 4: but it's like makes complete sense. Like nobody ever who
Speaker 4: looks at the brand name of a linp roller as
Speaker 4: it works?
Speaker 3: Man, Yeah, it's what all the big guys are doing.
Speaker 3: Beats by all. This is is a private label product.
Speaker 3: This is made in China. These are made for sixteen
Speaker 3: dollars and he's selling them for two hundred dollars. Why
Speaker 3: because of the brand name. So the whole goal, like
Speaker 3: I said, like Kleenex, Like everybody, like, yo, hand me
Speaker 3: a Kleenex. That's not the name of the product, that's
Speaker 3: the name of the brand. You see what I'm saying,
Speaker 3: Like the Q tip is not the name of the product,
Speaker 3: it's the name of the brand. So you want to
Speaker 3: become a category king, like Apple's a category king, beats
Speaker 3: by Dres category king, right, So that's that's basically all
Speaker 3: they're doing. Like if you look on if you look
Speaker 3: on the bottom of an Apple product, it says made
Speaker 3: in China. You look on the back of these made
Speaker 3: in China. So they're basically finding products that people need.
Speaker 3: Everybody needs to listen to music, everybody needs to clean
Speaker 3: their ears, and they're slapping their brand on it. Right now,
Speaker 3: Now that not everybody has a huge brand like Dre,
Speaker 3: but if you create a good product, good customer service,
Speaker 3: you can become a category king because you know, Beyonce
Speaker 3: is not going to go drop some Q tips, right,
Speaker 3: Like I sell a lot of office office products. I'm
Speaker 3: crushing it because there's no huge brand that's taking it on.
Speaker 3: Like you're not gonna see jay Z, you know, shooting
Speaker 3: or Kanye doing a line of binder clips, you know
Speaker 3: what I mean, or three ring binders. So if you
Speaker 3: go in there and then you serve these people and
Speaker 3: you're making sure that you're reading the reviews of the competitors,
Speaker 3: and you're making it a better product, you're making it
Speaker 3: a more affordable product, and you're doing all these things.
Speaker 3: Now you become the category king and people are like,
Speaker 3: I want such and such, which is your brand? So
Speaker 3: that's what we do, and it's like it's the most
Speaker 3: sustainable business model. Like people ask me all the time, like, yo,
Speaker 3: is Amazon dead? Like so many people are starting to
Speaker 3: sell on Amazon? Is Amazon dead? As it's saturated? Can
Speaker 3: you still sell? I'm like, let's forget about Amazon, which
Speaker 3: is the largest company in the world. The founder is
Speaker 3: the richest man alive. Let's set all that aside. What
Speaker 3: is selling on Amazon? What is private label products?
Speaker 5: What is this?
Speaker 3: Right? There's a demand. You need to hear your music,
Speaker 3: so there's a demand for headphones. I have the supply,
Speaker 3: supply and demand. If you go back to the Renaissance
Speaker 3: period when there was castles and horses and sword fighting,
Speaker 3: knights needed swords, so they went to a blacksmith. The
Speaker 3: blacksmith made the sword. They had the demand, there was
Speaker 3: a supply, and they exchanged rather be coins or they bothered.
Speaker 3: So it was just a direct exchange of supply and demand.
Speaker 3: So now times have changed and now we have computers, smartphones, tablets,
Speaker 3: and when we need something, we go to the market,
Speaker 3: which is Amazon. Amazon facilitates everything. They have everything, any
Speaker 3: and every product you can think of, basically accept cars,
Speaker 3: which soon they're working on that, and we just go
Speaker 3: buy what we want and boom, it's to our house
Speaker 3: two days later. So when people ask me like, is
Speaker 3: it dead, I'm like, no, it's not dead. This supplying
Speaker 3: demand has always existed. There's always been a need for items,
Speaker 3: and this is just the most relevant, most up to date,
Speaker 3: most user friendly, and effective way to purchase products. Like
Speaker 3: even during a pandemic, if you need something and you
Speaker 3: don't want to go to the store, you can't go
Speaker 3: to the store, you go online. Less than five minutes
Speaker 3: is bought, and then less than two days is to
Speaker 3: your doorstep.
Speaker 4: You just said that was crazy. That's actually extremely, extremely important.
Speaker 4: That's a gym where it's like everybody, not everybody, but
Speaker 4: a lot of people are private label companies, and it's
Speaker 4: like you use the example of Beats by Dre so
Speaker 4: it's like, yeah, if you don't really necessarily have your
Speaker 4: warehouse where you're actually making products yourself, which almost nobody
Speaker 4: really does, you're getting it made somewhere else. And then
Speaker 4: getting it shipped and then putting your logo on it.
Speaker 4: Essentially you're a private label company, right, And it's like
Speaker 4: the only difference is that like a beats By, Dre
Speaker 4: has celebrities that endorse the product, and they have doctor
Speaker 4: Dre's name on it, and you know, all of these
Speaker 4: different things. It's a billion dollar company now, but in
Speaker 4: the essence, the core business model, especially at the beginning stages,
Speaker 4: I'm sure, is kind of just the same thing. So
Speaker 4: that's that's really crazy, and that's interesting if you really
Speaker 4: think about it. Everybody's a private label absolutely.
Speaker 3: So peep game. There's three different ways. We talked about arbitrage,
Speaker 3: where you go to best Buy and you get something
Speaker 3: at a discount and then you sell it for the
Speaker 3: MSRP and keep the difference, right, that's arbitrage. You have
Speaker 3: wholesale where I go and find companies and I have
Speaker 3: them sell me the product at a discounted rate at
Speaker 3: a wholesale price, and I become a distributor and I
Speaker 3: sell it at an MAP, which is minimum advertised price.
Speaker 3: So that's strategy number two. And then there's strategy number three.
Speaker 3: People call it private labeling, which is what I just
Speaker 3: explained right. But if you think about it, the distributor,
Speaker 3: the wholesaler who's whole selling you the prout so you
Speaker 3: can become a distributor, has a private labeled product that
Speaker 3: you're becoming a distributor of. And if we are vitrage
Speaker 3: products where we go buy private label products of large
Speaker 3: brands at a discounted price and resell it at that
Speaker 3: MSRP and keep the difference, what are we doing. It's
Speaker 3: just a different form of private labeling. So what we're
Speaker 3: doing is we're cutting out the middleman. We're not going
Speaker 3: to a wholesaler and becoming a distributor. We're not hoping
Speaker 3: that we find products at a discounted price and sell
Speaker 3: it for that MSRP. We're just finding the products that
Speaker 3: the big guys need or big guys are selling. We're
Speaker 3: making our own sending it direct to consumer, and we're
Speaker 3: making all the profits. Like so many people say, like
Speaker 3: I don't want to get started with headphones because beats
Speaker 3: by Dre are the best. Beats by Dre are not
Speaker 3: the best or the well known, they're the most well known.
Speaker 3: You can go directly to the same factory and make
Speaker 3: the same headset more affordable and actually improve it and
Speaker 3: still get sells, and still get sells. Like I'm competing
Speaker 3: with Amazon, I'm competing with some of the largest companies
Speaker 3: in the world, and people have this misconception I can't
Speaker 3: compet with them. Why not? Adidas competes with Nike, same stuff,
Speaker 3: same supplier, made in the same country, made out of
Speaker 3: the same fabric, different brands, different uses. So what I
Speaker 3: do is I literally look at these products. What is
Speaker 3: the pros, what is the cons what people love? I
Speaker 3: don't change what people hate. I implement immediately. And because
Speaker 3: I'm such a small company and I'm so hands on
Speaker 3: as a private label seller, we can dive deep and
Speaker 3: become obsessed with making this product the best that it
Speaker 3: can be. You know, once you have a product that's
Speaker 3: crushing it. Even though they have huge budgets, huge teams,
Speaker 3: they're on research and development for more products, they're not
Speaker 3: worried about making this the best of the best. So
Speaker 3: like when your hands on and you become obsessed, it's
Speaker 3: all your money. You can literally dive in and make
Speaker 3: this thing, you know, make this thing great.
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Speaker 3: Like if you look at Peter tiel A, co founder
Speaker 3: of PayPal, right with Elon Musk, and they asked him, like,
Speaker 3: how did you revolutionize the payment processor industry? And he said,
Speaker 3: dominate the sector, control the space. So instead of going wide,
Speaker 3: I'm going small. I'm going narrow. I'm focusing on that
Speaker 3: one thing. Instead of hundreds of SKUs, I have only
Speaker 3: a dozen skews, but those dozen SKUs are household names.
Speaker 3: I'm trying to dominate the sector and control the space,
Speaker 3: like I explained, like tissue paper with Kleenex or Q
Speaker 3: tips with cotton swabs, they dominate that sector. And then
Speaker 3: zig Zigler, one of the best marketers alive. He said,
Speaker 3: when the market zigs, use zag So I'm doing the
Speaker 3: complete opposite. People are racing down to the bottom trying
Speaker 3: to be competitive with their pricing. My pricing is higher
Speaker 3: and I'm selling more and making more money. Why well,
Speaker 3: why is Apple one of the most commonly purchased consumer
Speaker 3: electronics products and it's sixty to eighty percent higher than HP,
Speaker 3: Dell and all the other competitors. Why Because the consumer
Speaker 3: product experience is that much better. The quality and the
Speaker 3: product is that much better, The customer buying experience is
Speaker 3: that much better, the customer support is that much better,
Speaker 3: the packaging is that much better. So I always tell
Speaker 3: my students and people who I'm helping, when you're thinking
Speaker 3: about products, when you're thinking about product packaging, when you're
Speaker 3: thinking about customer experience, what would Apple do? You know?
Speaker 3: Like the WWJD, what would Jesus do? What would Apple do?
Speaker 3: And if you follow their entire model, you can't.
Speaker 2: Lose that albatroge process And correct me if I'm wrong,
Speaker 2: But it reminds me of the kid who goes to Walmart,
Speaker 2: buys water, right, goes outside and sells it at a
Speaker 2: discount of price and keeps the profit from what he.
Speaker 5: Originally bought it. Right, Am I getting that correct?
Speaker 3: Pat? You're basically a middle man. You go into the plug,
Speaker 3: you get in at a discount because you're buying bulk,
Speaker 3: and then you're trying to sell it's the same. So
Speaker 3: arbitrage and wholesale is the same exact thing. The only
Speaker 3: difference between wholesale and arbitrage is arbitrage. You're buying, like,
Speaker 3: I'm gonna go, let's just say Black Friday beats by
Speaker 3: Dreas fifty percent off. I'm just throwing something out there.
Speaker 3: I'm gonna go buy ten of these, wait till Black
Speaker 3: Friday's done, and sell them at MSRP, which is manufacturer
Speaker 3: suggested retail pricing, and I'm gonna keep the difference. Wholesale
Speaker 3: is where I go to a private label company, like
Speaker 3: let's say that I got this brand and I'm crushing it,
Speaker 3: and you wholesale and you want to add to your catalog.
Speaker 3: You come to me like, yo, I want to buy
Speaker 3: ten thousand of them units and be able to sell
Speaker 3: it under your brand. You're not creating your own brand.
Speaker 3: You're just asking for a licensee agreement. So now you
Speaker 3: have the rights to resell my product. And I'm giving
Speaker 3: you a little bit of love. And that cushion in
Speaker 3: the middle is what you make. So now you're the
Speaker 3: middle man. Private label, you're the plug. You're going right,
Speaker 3: just like Frank Lucas did you going right to the jungle.
Speaker 3: You're getting the stuff there, You're stamping it with your logo,
Speaker 3: and you sitting there right the Amazon you.
Speaker 4: Blue Magic the stamp eyl is our stamp. That's the
Speaker 4: best product on the block for sure. So let me
Speaker 4: ask you this, because you know, my whole thing has
Speaker 4: always been one hundred thousand. Like, if I'm looking at
Speaker 4: a business, or if I'm interested in the business, I
Speaker 4: want to know does it have the ability to make
Speaker 4: one hundred thousand dollars a month? Not to say it's
Speaker 4: gonna make a hundred thousand dollars a month like as
Speaker 4: soon as you get in, but I just want to
Speaker 4: know that I could potentially make one hundred thousand dollars
Speaker 4: a month. If not, feel like I'm wasting my time.
Speaker 4: It's just my own personal take on it. So that's
Speaker 4: how I gauge anything. It's like, is it able for
Speaker 4: me to make a one hundred thousand dollars a month
Speaker 4: in it? So being a seller on Amazon one hundred
Speaker 4: thousand dollars a month, it is that reachable? And if so, like,
Speaker 4: what does it take to make one hundred thousand dollars
Speaker 4: a month selling products on it?
Speaker 3: Amazon? Absolutely man like. Success is math. So you just
Speaker 3: got to break it down, Like, if you want to
Speaker 3: make one hundred thousand a month, how many products do
Speaker 3: you got to make?
Speaker 4: Right?
Speaker 3: So, thirty units a day at ten dollars profit is
Speaker 3: how much three hundred dollars a day? Right? If you
Speaker 3: time is that by thirty days in a month, that's
Speaker 3: around nine thousand dollars. That's with one product. You want
Speaker 3: to make a hundred g's profit a month, you need
Speaker 3: nine more of those products. Or you break it down,
Speaker 3: how many units do I have to sell per day
Speaker 3: of one product? And when you go and do the
Speaker 3: research inside the software, there's tons of different softwares where
Speaker 3: you can find these products. You just go and you
Speaker 3: input that data. It's hard to do it without showing
Speaker 3: you guys. But if you need to sell one hundred
Speaker 3: units a day at ten dollars profit to make one
Speaker 3: thousand dollars a day, that's thirty thousand a month. You
Speaker 3: go and say, hey, I want to find a product
Speaker 3: that is selling x amount per day, X amount of
Speaker 3: units x amount of profit, and then you just reverse engineering. Right,
Speaker 3: success is math. You just break it down. It's that simple, all.
Speaker 4: Right, So let me ask you this because I actually
Speaker 4: googled it and I got a list of like some
Speaker 4: steps that beginners can take to get up and running,
Speaker 4: and it was a list of like seven different steps.
Speaker 4: So they said, the first step is to create an
Speaker 4: Amazon seller account. The second step is to pick a niche.
Speaker 4: The third step is to research products. The fourth step
Speaker 4: is to establish product sourcing, and then you have to
Speaker 4: establish a brand. Then you have to create product listing,
Speaker 4: and then you have to market your products. So those
Speaker 4: are the seven commandments according to Google. Does that sound
Speaker 4: about right? How do you feel about that?
Speaker 3: So let me intervene. Step number two says pick your niche.
Speaker 3: That's the opposite of what I teach. I always teach
Speaker 3: my students that you want to lead by data, not
Speaker 3: by emotion. If you're picking something, you're picking it because
Speaker 3: you think it's going to do well, and you're not
Speaker 3: going off of the data. So many of the mistakes
Speaker 3: I see my members and new Amazon sellers make is
Speaker 3: they try to lead with emotion not with data. Perfect example,
Speaker 3: men that are into fitness, they always want to launch
Speaker 3: the next supplement, the next workout gear, so on and
Speaker 3: so forth. Women that are into beauty they want to
Speaker 3: be the next Kylie Jenner, and even though they're passionate
Speaker 3: about it and they love it, that's not the smartest,
Speaker 3: most advantageous product to launch. So I always tell people
Speaker 3: just start with an open slate, do the product research,
Speaker 3: because some of the most profitable products that you're going
Speaker 3: to make a killing off of are products like this
Speaker 3: that you would have never in a million years thought
Speaker 3: about launching, or you're not passionate about, but they're making
Speaker 3: all the money. So I always tell people lead by data,
Speaker 3: not by emotion. So, yeah, you want to get create
Speaker 3: your Amazon Seller account. You want to start with an
Speaker 3: individual account. It's absolutely free. We don't change that by
Speaker 3: clicking a button to professional account until we have our
Speaker 3: products actually being checked in because if you have a
Speaker 3: professional account, it's thirty nine ninety nine a month. We
Speaker 3: don't want to pay that money until we have products live.
Speaker 3: Number two is we want to get right into product research.
Speaker 3: It's the most important aspect of the entire business. We
Speaker 3: want to find these products that are going to sell
Speaker 3: twenty four to seven three sixty five. We want to
Speaker 3: find these products that are not seasonal products, meaning they're
Speaker 3: going to sell twenty four to seven three sixty five
Speaker 3: that are not trending, meaning that it has depth of market.
Speaker 3: If there's volatility or there's no sustainable track record of sales,
Speaker 3: that's risky. We don't want risk. We want to make
Speaker 3: a lot of money. And again we go to Google
Speaker 3: Trends for both of those, a free resource. Once we
Speaker 3: identify all those things, we go to the supplier. We
Speaker 3: find the supplier. We want to make sure that we're
Speaker 3: going to be able to make that margin. So we're
Speaker 3: going to use a free tool called the FBA calculator.
Speaker 3: It's a free tool that Amazon owns fbacalculator dot com.
Speaker 3: We're going to put in how much is the product
Speaker 3: selling for, how much are we going to get it
Speaker 3: from the supplier, and all the other fees associated with that,
Speaker 3: and it's going to spit out the profit margin after
Speaker 3: Amazon takes their piece of the pie. So if it's
Speaker 3: below thirty percent, we need to increase the price or
Speaker 3: decrease the purchase cost. Right, So by doing that we
Speaker 3: can manipulate and get that profit margin to where we
Speaker 3: want to be. The goal is thirty percent bare minimum,
Speaker 3: thirty three percent. Every three products you sell you double
Speaker 3: your money. So if you put ten thousand into product
Speaker 3: and you're at thirty three percent every three per products.
Speaker 3: You're flipping that money, right. So that's the whole goal
Speaker 3: is to really just scale this thing. And then the
Speaker 3: way that you scale this thing is by adding more
Speaker 3: products to your SKU. You rinse and repeat. Once you
Speaker 3: get the first product, it's all downhill from there, because
Speaker 3: what I teach is the actual brand approach, not the
Speaker 3: generic approach. So the generic approach is where you have
Speaker 3: tons of different private label products. You might sell this
Speaker 3: phone mount, and then you might sell a calculator, then
Speaker 3: the lin roller, and have all these different products. That's
Speaker 3: one strategy. The more sustainable strategy that I recommend is
Speaker 3: the private label. So we do a catalog. So if
Speaker 3: we launch this product and it's in a specific category,
Speaker 3: we want to launch other relevant products to this catalog
Speaker 3: and create our own catalog. And the reason why I
Speaker 3: say that first product is it's downhill from there is
Speaker 3: because we already have the plug, we already have the supplier.
Speaker 3: So after that thing's up and rolling and it's making
Speaker 3: us money twenty four to seven, three sixty five, we
Speaker 3: go to the supplier and say, hey, send me your
Speaker 3: catalog of products and what other Amazon sellers are selling,
Speaker 3: and we go through it and we do our research
Speaker 3: and they already shaved time off the hourglass. So then
Speaker 3: we find another product and we just rent and repeat,
Speaker 3: and you keep stacking products and that's how you scale
Speaker 3: this thing.
Speaker 5: All right.
Speaker 2: So, once we got our product and we got our logo,
Speaker 2: all that put together, what are some of the upfront
Speaker 2: fees that we're going to need to get this product
Speaker 2: really out there and be a successful company.
Speaker 3: Now, Yeah, so the fees associated with starting the businesses
Speaker 3: number one, The main fee is going to be your product,
Speaker 3: right because we're not drop shipping where people buy our
Speaker 3: product and then we pay the supplier afterwards, where actually
Speaker 3: we own the brand, we own the product. So the
Speaker 3: number one fee associated with the whole business is going
Speaker 3: to be your COG or cost of goods. Now, it depends,
Speaker 3: because your product could costs a dollar, it could cost
Speaker 3: twelve dollars. But what I usually tell people when they're
Speaker 3: starting out is to start with no less than one
Speaker 3: thousand dollars. Have a thousand dollars that you can allocate
Speaker 3: directly to your inventory. Now, some people may say, like, hey,
Speaker 3: I was watching on YouTube and reading blogs and stuff,
Speaker 3: and they're saying like three to ten thousand to start
Speaker 3: your first product. How can I start with only one thousand?
Speaker 3: What I do with the AMC formula, what I teach
Speaker 3: people is how to micro launch products. So logically, what
Speaker 3: you would do is find out how many units you're
Speaker 3: going to sell per month. If you anticipate that you're
Speaker 3: going to sell one thousand units a month and your
Speaker 3: unit costs three dollars, that's a three thousand dollars launch
Speaker 3: because you don't want to run out of inventory. But
Speaker 3: what I've learned through trial and error with my own
Speaker 3: brand and through helping you know, thousands of people around
Speaker 3: the world, is that there's no software that's one hundred
Speaker 3: percent accurate, and there's nothing like actual factual buyer data
Speaker 3: directly from Amazon. So we don't put all of our
Speaker 3: eggs in one basket and launch three thousand units or
Speaker 3: one thousand units. We'll actually order twenty to thirty percent
Speaker 3: of the inventory that we anticipate on selling for that month.
Speaker 3: We'll get it to Amazon as quickly as possible because
Speaker 3: success loves speed, and we'll test actual buying data from consumers,
Speaker 3: and if it sees that we're getting consecutive days, like
Speaker 3: three to five days consecutive sales of what we anticipated
Speaker 3: on selling, then we make that back order. But if
Speaker 3: it's not then we liquidated and move to the next product.
Speaker 3: And this is like my proprietary system, and this is
Speaker 3: how you profit off of failing product. So many people
Speaker 3: put all their eggs in one basket, but if you
Speaker 3: drop the basket, all the eggs are gone. So instead
Speaker 3: of putting all my money in one product, will micro
Speaker 3: launch three products at once, or will micro launch that
Speaker 3: one product that way? If we get it to the
Speaker 3: marketplace and it doesn't perform the way we anticipated, we
Speaker 3: can liquidate that product, add a profit, and move to
Speaker 3: the next one. Because you got to remember, like so
Speaker 3: many people ask me, like, what's the worst that can
Speaker 3: happen with their product, like a failing product or losing
Speaker 3: Amazon product? What does it look like? How much am
Speaker 3: I going to lose? What's the worst case scenario? And
Speaker 3: if you do this properly and you cross your t's,
Speaker 3: you dot your eyes, and you do that product verification
Speaker 3: and validation that we discussed, the worst thing that's going
Speaker 3: to happen is you're not going to sell enough units
Speaker 3: daily to reach that ten thousand profit a month or
Speaker 3: three thousand profit a month or whatever you're anticipated on
Speaker 3: its selling. It may be one here or two there,
Speaker 3: it may be inconsistent, but you have to remember you're
Speaker 3: still at that thirty percent of fe fifty percent profit margin.
Speaker 3: So even though it's a loser because it's not making
Speaker 3: us what we wanted to make, it's still profiting and
Speaker 3: we only have a specific amount. We don't have an
Speaker 3: abundance of units that we can't get rid of or
Speaker 3: that's going to take a long time to get rid of,
Speaker 3: that's going to lock up our capital, So we can
Speaker 3: liquidate it profit on the liquidation of that product, put
Speaker 3: all the proceeds into another product, and just keep testing
Speaker 3: until you find that one that's going to have consistency.
Speaker 4: So you mentioned something earlier where you said, you know,
Speaker 4: there's different software that you can use to actually find
Speaker 4: out if a product is going to be an actual
Speaker 4: good seller or not. So I know that's something that
Speaker 4: you know is probably my biggest question, and I'm sure
Speaker 4: a lot of other people's question as well. So how
Speaker 4: do you determine if it's going to be a good product?
Speaker 4: Like what are some of those software or websites that
Speaker 4: you were referring to.
Speaker 3: So there's a combination of a few things, using Amazon's
Speaker 3: direct website, using the free resources that we talked about,
Speaker 3: like Google Trends, free FBA calculator to determine the seasonality,
Speaker 3: the trend the profit margin. But there's many of different softwares,
Speaker 3: like I personally use jungle Scout. There's dozens of different
Speaker 3: softwares that are relatively inexpensive, like between thirty to fifty buck.
Speaker 4: Nich Hunter is that one.
Speaker 3: Nich Hunter's one. There's tons of them, Viral Launch, Viral Launch,
Speaker 3: Helium ten, Jungle Scouts is the one I personally use.
Speaker 3: There's tons of different softwares out there. And what this
Speaker 3: does is basically take all the data that's on Amazon
Speaker 3: and compiles it in front of a user fase right
Speaker 3: an interface. So after you do all that manual stuff
Speaker 3: to see is the product trending, is the project seasonal?
Speaker 3: Is the profit margin there? Then you can use this
Speaker 3: software to actually pull up, Hey, this is all the sellers,
Speaker 3: this is the average reviews, this is the average amount
Speaker 3: of sales. So you basically want to compare the amount
Speaker 3: of sellers the amount of revenue to the amount of reviews.
Speaker 3: So one of the like the telltale ways of seeing
Speaker 3: if a product has high demand low competition is comparing
Speaker 3: the reviews to revenue. So our bare minimum is we
Speaker 3: want to see a majority of the sellers selling a
Speaker 3: product at three hundred units per month, that's ten units
Speaker 3: per day, and we want that profit margin to be
Speaker 3: around you know, thirty percent, like we mentioned, and we
Speaker 3: want a majority of the sellers to have less than
Speaker 3: two hundred reviews. So if you see a bunch of
Speaker 3: sellers who are selling a crapload of products per month,
Speaker 3: you know, one hundred, two hundred, three hundred, one thousand
Speaker 3: units per month, but they all have two three thousand reviews,
Speaker 3: that means that there's a lot of ogs in that industry.
Speaker 3: There's a lot of people that's been selling that product,
Speaker 3: they have established track record with that With that industry,
Speaker 3: people prefer that brand, just like Colgate. Like if you
Speaker 3: go onto toothpaste, it doesn't matter if you're cheaper or
Speaker 3: you're better. People love Colgate. They're not going to try
Speaker 3: the new guy, right, So that's how we establish does
Speaker 3: that product have high demand low competition? Is a lot
Speaker 3: of sales a little bit of reviews.
Speaker 2: Yeah, so now that you have the product and you're
Speaker 2: registered on Amazon dot Com, what's the process of getting
Speaker 2: it to the front page because that's what everybody sees,
Speaker 2: right or even in the first two pages.
Speaker 5: Is it like an SEO strategy that you can use.
Speaker 3: Yeah, So SEO is search engine optimization, And that's a
Speaker 3: good question. So a lot of the money, Like I said,
Speaker 3: Amazon is the search engine, just like Google. So the
Speaker 3: main goal as a seller is to get your product
Speaker 3: is hied to the first page as you can. And
Speaker 3: the way Amazon their whole algorithm works, it's very simple.
Speaker 3: If you're the number one guy in the world and
Speaker 3: you're selling one hundred units a day, I just need
Speaker 3: to sell one more unit than you for a few
Speaker 3: days in a row. So all we have to do
Speaker 3: is run. We can do giveaways, and there's so many
Speaker 3: different tools. We can run giveaways, we can do influencer marketing,
Speaker 3: we can do PPC, which is pay per click, and
Speaker 3: a majority of this is all within Amazon Seller Central.
Speaker 3: We can do this all within Amazon. The only one
Speaker 3: that I use that's very effective that's outside of Amazon,
Speaker 3: which we were talking about, is influencer marketing, and this stuff,
Speaker 3: super super simple. In twenty eighteen, Jeff Bezos had a
Speaker 3: letter to shareholders that said that sales like third party
Speaker 3: sellers are kicking first party sellers butts. So people like
Speaker 3: me are kicking Amazon's actual brands butts and other huge
Speaker 3: conglomerates brands butts because of the powerful resources that they're
Speaker 3: dumping millions of dollars into. So, like, I don't know
Speaker 3: if you guys ever try to run Facebook or YouTube
Speaker 3: or Google ads. They're complex, they're difficult, The whole user
Speaker 3: interface is difficult, and you got to know what you're doing.
Speaker 3: With Seller Central, like, you can set these ads up
Speaker 3: in a like in in a minute or less. There's
Speaker 3: a few buttons and you click start. It's not as
Speaker 3: complex as Facebook or Google. And they're very effective. And
Speaker 3: we're able to literally take our product that no one
Speaker 3: knows about, that barely has any reviews and push it
Speaker 3: to the top of search results by this pai paid advertising.
Speaker 3: And then my secret weapon is the influencer marketing. So
Speaker 3: this is the only thing that's done outside of Amazon,
Speaker 3: and basically it works like this. I use Instagram because
Speaker 3: a lot of people know me on Instagram. You go
Speaker 3: into the search bar let's say we're launching a yoga mat.
Speaker 3: You type in hashtag yoga, and it's going to show
Speaker 3: all the hashtags, and next to it's going to show
Speaker 3: the number, which is the amount of actual searches and posts.
Speaker 3: You want to find that keyword that has the most
Speaker 3: search search volume or post volume, which means it's the
Speaker 3: largest and most impression based keyword, meaning people were basically
Speaker 3: searching for that keyword, So it's gonna be hashtag yoga.
Speaker 3: We click on hashtag yoga, and we scroll through all
Speaker 3: the feed and we just start clicking on different posts
Speaker 3: to find influencers. So influencer is someone who has a
Speaker 3: special following in a specific category. So we want to
Speaker 3: find someone that has over ten thousand followers. And the
Speaker 3: reason why ten thousand is the magic number is because
Speaker 3: on Instagram, if you have over ten thousand, you can
Speaker 3: do a swipe up story, meaning on their story you
Speaker 3: can swipe up and send them directly to a website.
Speaker 3: So we want to reach out to them by hitting
Speaker 3: the message button, which is the DM. Right, Yogati made
Speaker 3: that famous. They want to slide into their DM and
Speaker 3: just say, hey, my name is Josh, I'm getting ready
Speaker 3: to launch this yoga mat on Amazon. I love your page,
Speaker 3: I love what you're doing. I'd love to give your
Speaker 3: audience a discount on my product, which is an amazing product,
Speaker 3: and I'd love to work with you. And they're gonna
Speaker 3: be like, yeah, sure, awesome. Send me thirty bucks via
Speaker 3: cash app or via PayPal, send me your link and
Speaker 3: send me your content. So you send them a picture,
Speaker 3: you see them the link to your Amazon store. They
Speaker 3: post it. Now, people who love yoga, who want to
Speaker 3: buy a yoga mat are going directly to your Amazon
Speaker 3: store to buy your product. And remember, all we got
Speaker 3: to do is sell more than the other guy a
Speaker 3: few days in a row to kick his butt and
Speaker 3: move up in the search results. And that's what we do. Man,
Speaker 3: that's the whole strategy.
Speaker 4: Yeah, yoga MAT's another good one. Yoga MAT's a huge one,
Speaker 4: another product where nobody cares. Who makes a yoga mat.
Speaker 4: I haven't ever seen anybody that's tripping off of the designer.
Speaker 4: They're not looking for Gucci yoga mats. So let me
Speaker 4: ask you this. I think you might have access already,
Speaker 4: but I like to ask questions twice sometimes to really
Speaker 4: double down for people that are slow learnings like myself.
Speaker 4: This is this is the big this is the big
Speaker 4: one that everybody probably wondering. What's the budget that you
Speaker 4: actually need to get started in this business.
Speaker 3: Yeah, so I highly recommend obviously the more that you
Speaker 3: have access to, the better, but I recommend nothing less
Speaker 3: than one thousand dollars to micro launch and test your
Speaker 3: first product. Also, here's another thing. I'm an avid practitioner
Speaker 3: of OPM, which is other people's money. So even if
Speaker 3: you have cash burning a hole in your pocket or
Speaker 3: your banking account, but you have a zero percent interest
Speaker 3: a credit card, or you can go sign up for
Speaker 3: a zero percent interest credit card, use that because it's
Speaker 3: free money for the twelve months plus you're gonna get
Speaker 3: the bonuses and the benefits, so on and so forth. So,
Speaker 3: like I said, one thousand dollars to get started bare minimum,
Speaker 3: Definitely use lines of credit, business business lines of credit,
Speaker 3: or just credit cards. That's what I do. I'd never
Speaker 3: use my debit card. I personally use the gold Amax
Speaker 3: card because we get four X points on two different categories.
Speaker 3: So the two biggest categories that the money is going
Speaker 3: to be spent with your business is number one. Sourcing
Speaker 3: products and number two advertising. So with that gold Amax
Speaker 3: business card, you get four x the points on two categories,
Speaker 3: which is products right sourcing products, manufacturing products, and then
Speaker 3: you're advertising. So I'm using that and I'm like, people
Speaker 3: see me traveling around the world like them. Flights free,
Speaker 3: the hotels are free, and I'm doing it all off
Speaker 3: my Amax points.
Speaker 5: Yeah.
Speaker 2: So I know you mentioned Ali Baba as a potential
Speaker 2: manufacturer and partner. Are there any other ones that you
Speaker 2: would recommend or you know that's out there that are
Speaker 2: pretty good.
Speaker 3: Yeah. So Ali Baba is a website. It's like a
Speaker 3: broker and then it's like a It's almost like Amazon.
Speaker 3: So Amazon is not the seller, but they have sellers
Speaker 3: underneath their platform. Ali Baba is not a direct manufacturer,
Speaker 3: but people who are manufacturers go on lists underneath Ali Baba.
Speaker 3: There's a few others like Dhgate and Ali Express, which
Speaker 3: is a subsidiary Ali Baba, but Ali Baba is the
Speaker 3: largest and it's going to have the best prices direct
Speaker 3: B to B business to business dope.
Speaker 4: So that was a lot of information, But I just
Speaker 4: got one last question before we go into our last segment,
Speaker 4: Virtual Assistant. I saw you mentioned that on your YouTube channel.
Speaker 4: Can you just give some information on virtual assistance and
Speaker 4: how you're actually utilizing that.
Speaker 3: Yeah. Yeah, so VA's or virtual assistants are like another
Speaker 3: secret weapon in my business because the whole the thing
Speaker 3: is I follow this strategy is called the ASAP right.
Speaker 3: So ASAP is an acronym stands for autonomous, sustainable action,
Speaker 3: and perpetuity. So I'm always trying to find these four
Speaker 3: things and actions in there because faith without works is dead.
Speaker 3: You got to take action and you're not gonna get
Speaker 3: any results, right, So I'm always trying to find out
Speaker 3: ways to automate and delegate and not participate. And that's
Speaker 3: what if you go back to the beginning of the story,
Speaker 3: like my first mentor is always talking about touching.
Speaker 2: Wait wait, wait, hold up, hold on, say that again.
Speaker 2: You said automate, delegate and not participate.
Speaker 3: Hey, I'm trying to find ways to automate and delegate
Speaker 3: and not participate. I'm always asking myself, is this the
Speaker 3: highest and best use of my time and energy? Like,
Speaker 3: you want to become a millionaire, you got to think
Speaker 3: like a millionaire. You want to become a billionaire, you
Speaker 3: got to think like a billionaire and they're always they
Speaker 3: value their time more than anything, and they will trade
Speaker 3: money for time ten times out of ten. So I'm
Speaker 3: always thinking of ways to scale the business and scale
Speaker 3: the velocity and the volume in our business without scaling
Speaker 3: the amount of energy and time it needs for me.
Speaker 3: So the way I'm able to scale my company is
Speaker 3: by taking the reputitious duties that need to be done
Speaker 3: and by outsourcing it for pennies on the dollar for employees.
Speaker 3: So many people think that they got to do everything,
Speaker 3: they got to wear every hat because they can't afford
Speaker 3: to hire an employee. But there's VAS and all the
Speaker 3: top companies Fortune five hundred companies like Ge, like Apple,
Speaker 3: all these large companies, they use virtual assistance. And a
Speaker 3: lot of you guys who hear this right now, you're
Speaker 3: gonna be like like man, I was on the phone
Speaker 3: on customer support with this large company and it was
Speaker 3: someone who barely spoke English. And that's how they're able
Speaker 3: to do this is by using these vas, which are
Speaker 3: employees in other countries. So the best country that I
Speaker 3: have found that's not only very very affordable, but they
Speaker 3: are very loyal and very hard workers is workers out
Speaker 3: of the Philippines so you can go to online jobs
Speaker 3: dot pH and you can hire virtual assistants to do
Speaker 3: daily tasks to help you with your business anywhere between
Speaker 3: a dollar fifty per hour and five dollars per hour,
Speaker 3: depending on what they're doing. A majority of my virtual
Speaker 3: assistants are at two dollars and fifty cents per hour USD.
Speaker 3: They work forty hours. And the beautiful thing on top
Speaker 3: of being able to hire people in your company who
Speaker 3: are loyal and hard working is if you're in America
Speaker 3: and like right now, it's twelve o'clock in the afternoon,
Speaker 3: well in the Philippines it's like twelve o'clock at night
Speaker 3: or eight o'clock at night. So while I'm sleeping, our
Speaker 3: other employees in other countries are actually up working. So
Speaker 3: now our company is operating twenty four seven, three sixty
Speaker 3: five instead of twelve hours out the day or eight
Speaker 3: hours out the day. So that's two key components to scaling.
Speaker 3: Is Number one, you're able to automate and delegate instead
Speaker 3: of you actually participating doing reputitious stuff. Because if you're
Speaker 3: doing reputaious stuff, that's that you can easily delegate. You're
Speaker 3: working for your company and not on your company. So
Speaker 3: and this took me years. Like I've made millions of
Speaker 3: dollars across my three companies, I've made millions of dollars.
Speaker 3: And it was a combination is as entrepreneurs, we're control freaks.
Speaker 3: It's like our baby, it's like our child, Like we
Speaker 3: built this thing up and we want control of everything.
Speaker 3: So it's hard to give it to some someone else
Speaker 3: knowing they're not going to care for it the way
Speaker 3: that you would. They're going to treat it, you know
Speaker 3: what I mean. They're not going to treat it the
Speaker 3: way that you would. So it's difficult. But on the
Speaker 3: odverse side of that, you have to understand in order
Speaker 3: to scale that you have to be able to delegate.
Speaker 3: And that's like a key thing, Like you guys got
Speaker 3: to focus on working on your business instead of for
Speaker 3: your business. So now, like I'm an avid believer in
Speaker 3: the eighty twenty row. I tell people this all the time.
Speaker 3: Eighty percent of the profits, eighty percent of the momentum,
Speaker 3: eighty percent of the results comes from twenty percent of
Speaker 3: the effort. And now I can get more done in
Speaker 3: less time now than before when I was following the
Speaker 3: Gary Vee Like I was working sixteen hours a day,
Speaker 3: twenty hours a day, hustling, and I would literally get
Speaker 3: depressed if I didn't fall asleep at my computer because
Speaker 3: I thought I wasn't doing everything I could, you know,
Speaker 3: to accomplish my why which was helping my family out.
Speaker 3: Like I told you guys. But now you can work smart,
Speaker 3: not hard, and by being productive. There's a huge difference
Speaker 3: between being productive and being busy. See, I thought being
Speaker 3: busy was being productive. Now by through time management and
Speaker 3: virtual assistance and you know, just keeping track everything and
Speaker 3: using software as like Slack and TrailO. With your management tools,
Speaker 3: I'm able to be productive and accomplished way much more
Speaker 3: and less time, which means I can spend that time
Speaker 3: with my kids, with my wife, or working on other things.
Speaker 4: Not I was powerful, man. That was a lot of information,
Speaker 4: a whole lot of game.
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