Click Here to Download Transcript <<
…some failing products, a couple of products that she feels are failing and her name is Kate by the way but she also, what I love about this little hot seat that we do is she has a couple of products that she feels are not doing as well as she’d like to or maybe she should give up on those and maybe start a couple of new ones and she really has a new plan and she wants our advice on that new plan. It does have to do with selling on Amazon, it also has to do with some additional sales funnel stuff.
We’re going to actually map out an entire sales funnel for her that you guys can follow along with and possibly you can use that in your business depending on where you are. Now, the other cool thing about this and some of you know this but Chris and I did a live event not too long ago. We had 30 people come to this live event, it was very limited. We limited it to 30 people. We wanted it small and we had to hot seats, so of those 30 we had 10 people come up for 30 minutes each and we broke down their business or any struggles they had at that time. The cool thing about it is everyone in the room was able to engage and really give their thoughts but what Chris and I are doing here is we’re able to do a hot seat and really again get our exercising, if you will, with our brain muscles.
We just love doing these but also gets us in shape in a sense to where we’re going to be doing another one here in November. If you want to attend one of those, if there’s still tickets available, head over to theamazingseller.com/live for all the information and if not, if there isn’t tickets available, get on the waitlist because if anyone has to cancel last minute or whatever, we could always go back to that list.
[00:02:05] Scott: Now, there is only going to be a very, very limited number of seats so I would say definitely head over as soon as you listen to this and hopefully there will still be seats available. We’re going to have 2 days and what we’re going to do here is day one will be exactly what we did the last time. We’re going to have 30 people, 10 hot seats. The second day will be half of that. It’s going to be 15 people in a room and that’s going to be a little bit more next level stuff or if you wanted to attend both, it will be like day one and then day two but day two will be more of sales funnel, mapping out your business, your plan and really putting it to work. Really hands on stuff.
If you guys are interested in that and again if it’s already sold out, you can still go there, register, there could be a cancellation or you can also attend the next one after that when we announce that. When you get on that list, you’re able to be notified of any upcoming ones that we do in your area or if you want to travel to that city.
All right, so really, really excited about this and excited about this hot seat that I’m about to share with you because it was really, really good and I think you’re going to get a ton out of it. One last thing, if you guys want to download the show notes or the transcripts, head over to this episode and that will be theamazingseller.com/254, again that’s theamazingseller.com/254. All the links, the show notes and transcripts will be there for you. So guys, what do you say? I can’t wait for you guys to hear this, it was really, really awesome so enjoy this hot seat that we did for our good friend Kate.
[00:03:41] Scott: Hey Chris, what’s going on my friend? Another day that we get to spend together talking about this Amazon stuff and today we’re going to be taking about an exit strategy and some sales funnel stuff. What’s going on man? How’re you doing?
[00:03:54] Chris: I’m doing great man, the sun is shining for the first time in weeks, finally stopped raining here in my new home base.
[00:03:59] Scott: That’s why I like South Carolina so much, the sun has been shining almost every day that I’ve been here so far.
[00:04:04] Chris: Well, I’m a little jealous. I’m getting a little bit of sun, a little bit of sun in between all of the rain but that will go away and then I’ll be nice and toasty all winter long just like you will this year.
[00:04:14] Scott: Yes, yes, yes.
[00:04:17] Chris: You know what? I’m pumped, I’m excited, I love sales funnels. I love talking about this stuff and we get to do another hot seat and we get to kind of expand on some of the stuff we’ve talked about in the past which is cool as well.
[00:04:27] Scott: Yeah, absolutely and this was another listener that emailed me and I get a lot of people after we do these hot seats by the way that say, “Hey Scott, can I be the next hot seat?” We can’t do it for everyone but we really want to make is useful, helpful obviously to the person that we’re helping here but then also enough of us discussing this to give more value to other people that could be thinking about this or challenged with this stuff. I know one of hers that we’re going to talk about is not just an exit strategy to get out of the business, we’re talking about an exit strategy to get out of this product that you launched because it’s not doing as well as you thought and that’s a common thread that people say, “I didn’t really know as much as I know now and I want to choose a different product. How do I get out of the current product that I have? What would you do?” Really talking about that stuff. Yeah, I love talking about this, I know you do so let’s kick it off. Why don’t you… Maybe want to go over the email that I received and then we can kind of break it down?
[00:05:24] Chris: Sure and we’re actually going to start Scott with the exit strategy thing, the Amazon thing. The email we have here is from Kate and she says, “On your podcast would you people address an exit strategy plan for people who have mistakenly selected products that are losers. Presently I have two products that are slow moving. There’s a great deal of demand but in my opinion too much competition. My ACOS on pay-per-click ranges from 46 to over 100%. I’ve looked at long tail keywords, vendor express, liquidators and right now I am testing lightening deals. Can you please address the topic of an exit strategy, I think it will give people assurance that even during the worst case scenarios there is a sound plan.” So Scott, what are your thoughts on an exit strategy for those kinds of products?
[00:06:08] Scott: Well, I think what she said and what she’s doing is pretty good. This is beautiful actually. If you have lightening deal which now, for those of you that don’t know, most of you will have this feature to where if you go into your promotions tab you’ll see a little drop down that says ‘lightning deals’ and depending on how long your product has been there, depending on how many sales you’ve had in the past, it will show up and if it does, you can then get that approved pretty quickly. I think it’s within a week or two to have a lightening deal go. Now, in this case, you’re going to have to really think about, “Do you just want to break even? Do you just want to get a portion of that money back?” so how much are you going to discount it?
It will usually give you a recommendation of how much they want you to discount it in order for it to be a good deal, that’s why it’s called a lightning deal. I would say I would run with that if I could just to try to get out of that inventory to get some more money back into the business so you can start using that for your additional products. I know we’re going to talk about this with the sales funnel because she’s got a really great idea and plan moving forward and I just want to let people know just because you launch a product, doesn’t mean it’s going to be a winner. Number two if you launch that product and it’s not a winner, I’m using the air quotes Chris, then you can learn from what you did and you can clearly see and we’re going to go through some of this stuff too, how she has evolved through this process and now she really has a better understanding of her overall plan but she’s learned a ton.
We’ll talk about that in a little bit but I would say the lighting deal if you have that available, definitely take advantage of that. That would be number one, the other thing is lowering your price whether you have a lightning deal or not to see if that can get you sales at least to just get rid of the inventory that you have. Chris, what’s your thoughts on those two things that I just brought up?
[00:08:02] Chris: I think both of those are great. The lightning deal is obviously the great place to start if you have that inside of your listing and most people do. The thing that’s kind of funny and annoying to me at the same time is that Amazon has never picked a product I want to run the lightning deal on. They always pick the other products. You don’t have control over that but if you have that as an option, absolutely run it. It’s a great way to move some inventory really quickly, you know exactly how much you’re going to make on every unit because you set the price. If you set it to a break even price and try to just blow everything out, you can do that, right?
[00:08:33] Scott: Yeah, yeah.
[00:08:34] Chris: The other thing that’s kind of interesting and we hear this all of the time and just I want to reiterate it is it’s hard to have an absolute failure on Amazon if you’ve done your research on the front end. Kate here has the demand, she sees that there’s the demand in the market but it’s probably overly competitive and I would agree with that in at least one of the markets that’s she’s in in the products that she showed us here and probably the other one as well. She can still make one of these work at least in the short term.
The other one I would probably do so something like the lighting deal with and Kate, just for your reference, that’s the less expensive one. You can do the lighting deal with that and try to blow out that inventory at break even price, I think that’s a great strategy. As far as the other one goes, it would depend on how much inventory I had in stock Scott. I might try to do another giveaway to boost that or I would take a look at PPC and she said her ACOS ranges from 46 to 100%. 46% sounds, in most cases like it would be right around break even. Does that sound right to you as well?
[00:09:37] Scott: Yeah, well I think it depends on the…
[00:09:40] Chris: Obviously it’s going to depend on how much she makes.
[00:09:42] Scott: Yeah, yeah, yeah.
[00:09:43] Chris: If it’s close to break even for her, I would pursue those keywords. Take a look at those search terms and see if you can test and tweak and improve upon the ones that are making you sales either slightly profitably break even, those kinds of things because if you can drive… There’s obviously demand on those search terms so if you can drive your rank for those specific search terms, you may be able to start to get some additional and you do have an okay number of sales. It looks like you’re selling a couple a day on that unit as well.
If you can increase that, you’re going to either break even or even come out with a little bit of a profit which Scott, I know you have talked on the podcast in the past about the product that you selected that you consider to yourself to be “a loser” because it wasn’t a successful as most of the other stuff that you’ve launched and you were even make that come close to making a little bit of money if not, just above break even. Is that correct as well?
[00:10:34] Scott: Yeah, I think it’s totally paid for itself. I turned off pay-per-click after I figured out that I’m not just going to put any more energy behind this thing. Even the couple hundred units that are still in stock, I’m selling a couple every few days and I’m not really discounting it that heavily so I’m kind of just like seeing what happens. I do have a lightning deal that I’m hoping to run with this as well and do a similar thing to what you’re doing. It’s only a couple of hundred units but those couple of hundred units really have already been paid for because of the other sales that I got with the first.
We ordered I think 600 or 700 of those and I did a very small give away with that. The money that already came in through the door has pretty much paid for the inventory and any storage fees or any of that stuff so to me it’s like I’m going to get that money back and when I get the money back that will be part of the profit that I’m getting back now because that other kind of paid for the product. Again, I don’t look at that as a huge failure although I learned a ton.
Here’s the other thing, the sales that you did get through that, people, not everyone but some people left feedback, not reviews, feedback on your seller’s account. Well that does help you as well and I know some people that say, “Well, it doesn’t really help you. I don’t really care about that.” I disagree. I think the more that you can get feedback naturally and really have Amazon see that you are a trusted seller, it’s going to help you especially in the future when things get even a little bit more crazy with people that are starting to get banned or slapped because they’re trying to go after and fake reviews or feedbacks or any of that stuff. That’s where you’re going to rise to the top and it’s like building that authority website.
[00:12:25] Scott: Like if you have a website that’s been around for 10 years or if you have a domain name that you bought that’s two weeks old, the one that’s 10 years old is going to have more history. That’s the same thing with a seller’s account, same thing with an eBay account, right. I believe that that does help you in the future with launching future products and ranking. Again, that product that might not have sold as well as I wanted to I still got benefit from it for building out my seller feedback. Does that make sense Chris?
[00:12:47] Chris: It does and you know Scott there’s kind of a third option here that we haven’t talked about. At least for the one product that’s getting a couple of sales a day and that is do nothing which it kind of seems like you did with that product that we’re talking about appears that was kind of a failure right. Just let it trickle along. I mean obviously you can blow it out at break even but if you’re getting a couple of sales a day, you know and you can project out how long it will take you to run out of inventory.
Chances are the price that you have it listed out on Amazon probably making you a couple of bucks so it may be worth it if you can recoup that money and you’re not tight on capital. You don’t want to start fresh, which it doesn’t sound like she does. She’s kind of already picked two other products that she wants to build both on and off of Amazon from the rest of this email that we have. If you’re not strapped for cash and you’re not trying to blow it out to get your money back right away, chances are you can actually come out of it with a profit if you give it a little bit of time.
[00:13:42] Scott: Yeah and let me just jump in there too. Again, like you had said… It was funny. I was talking to our good buddy Dom Sugar the other day and we were talking about this same thing as far as when you’re launching a product even, is it worth it to continue to go after pay-per-click in the beginning or is it better to do another promotion? Which one is better because you’re really paying in the beginning for the pay-per-click and you’re not making a ton because you’re new and you’re still trying to feel that whole system out?
If you’re looking to rank quicker, is it better to do another 50 or 75 or 100 giveaway, you’re still giving the product away even if you’re doing it at a steep discount and you’re still getting some of that money back but then you’re able to get on the map. If your listing is well optimized which we had recently found by us doing, you and I both, doing a launch together and seeing that we didn’t use any super URL or anything like that, we just did a good promo about 100 units and we’ve seen that we really did start to rank for miscellaneous keywords and some of the keywords we were targeting and it just took a little bit of time because we were optimized.
[00:14:50] Chris: And that’s the key Scott, not to completely cut you off there but I’m going to cut you off of there. This is something I see in the TAS group all the time is like, “I’m in day 2 of my promo and I’m not ranking for my main keyword yet.” The key ingredient in that is time and that’s something that we tend to forget because this works significantly more quickly than most other business models. You can start to see right away whether a product is going to be successful or not. When you start to see those organic sales come in, we get really excited and we go, “Why am I not number one?” Scott you and I do that too, not to say that we’re above that but we have to remember that time is the key ingredient there.
When you’re doing that giveaway you’re not necessarily going to rank that day. You might move up the day after or three days and actually I’m still seeing movement, we stopped that giveaway a week ago and I’m still seeing movement from that upwards and it’s a week later. It’s like whenever Amazon re-indexes for that search, that’s when you start to move.
[00:15:55] Scott: I like that a lot and again, with doing a giveaway you’re sure to get the sale or credit for the sale. If you’re doing pay-per-click, you’re not sure of that. If you’re looking to just blow out the units you might just want to do a promo and then blast them out that way. Even if you wanted to charge for that, instead of doing like a dollar, do it for $3.97 and see how many you get. Try different review groups, maybe do 3 different ones and go at it that way, that’s what I would probably say.
Again, if you still want to go after that market in some way, then use the pay-per-click as data but it sounds like you want to get out of that and move on from what I’m seeing. She did share her product with us which we’re not going to share here so we can totally see that it is going to be in a new direction and she’s pivoting and she has a great plan mapped out for that next product line. Is there anything else you want to add on the exit strategy? I know she had two products that she was kind of referencing. The one product that she was again looking at, should she blow this thing out, you want to talk about that one real quick?
[00:17:08] Chris: About the one that I think she can stay with or…?
[00:17:10] Scott: Yes.
[00:17:12] Chris: Yeah and that’s the one that’s already selling a couple a day and that might work to kind of just leave alone as well if you want to make a little bit of profit there but I would probably would do another giveaway with that if you have the resources to do it and you’re still going to have inventory in stock. The top selling guys have thousands of reviews and you have a handful basically. I would go after that kind of aggressively if you think you’re interested in continuing to sell that product, I definitely think you can make it work looking at the other listings. I would say Scott, and you and I took a look at this market and one of the biggest things that I noticed that’s a difference between your listing Kate and the listing of the top selling guy was the main image there Scott and can you jump into what your thoughts were on that really quick?
[00:18:02] Scott: Well, her images are great, the listing is great so she’s definitely got that down. Again as we talked I don’t know what this looked like the day you launched but it’s definitely really, really solid right now so it’s clearly… I don’t believe it’s pictures, it’s anything like that. I think the problem with that particular product is that it’s very, very competitive. Again it’s equivalent to the selfie stick. It’s like there’s just so many and they’re all like identical.
Now, what I said to you Chris before we got on here as we were going through this is the one thing that I would say about this market or any market that you go into and we talked about this a little bit with Greg Mercer as well when we were talking about split testing stuff, it’s like how do you stand out? I’m looking, you’re scrolling through as we’re talking here and all of them really look the same. Some could be a different color and that’s a good strategy too to make you stand out but everyone else is going to start doing the yellow or they’re going to do the blue or whatever but the one thing that stands out to me out of all of this, this was in a sponsored ad was that someone put their box of the packaging inside of the main image and that really stands out to me and it looks really professional, looks really, really good.
I would probably say if there was anything I could do differently is I can model that but if you have to go and get new packaging and stuff, I wouldn’t probably go through all that trouble because you’re taking a chance that that’s going to help you but that is one thing I think that you could get eyeballs on your listing. Anyone listening for that matter, the box is kind of like it’s black and got a little bit of grey in it with the shot of the image and then it’s got like a yellowish accent to it. We talked to Greg Mercer about this and that’s like a great strategy because you can show the box and on the box, on the very front of it, it gives you some benefits to it.
[00:20:06] Scott: Chris as you’re clicking in there real quick so I can kind of read but I’m not going to read it but it talks about the benefit really clearly in there. It gives you those benefits and we talk about benefits. Again, Kate you have down the listing, all of that stuff you’ve got it nailed down. I don’t think that we’re talking about here you making improvements to listing. I think the listing is spot on, it’s perfect. The problem is again we’re going after that selfie stick in a sense. It’s not a selfie stick but you get what I’m saying, it’s the garlic press. What we want to do here and you already have by looking of your plan for the second part of this that we’re going to be talking about sales funnels and stuff like that and building a product line.
Right now, I would probably see what happens. You’re going to be heading in the fourth quarter this could be a bump for you but I might do another small giveaway maybe to try to boost the rank. I’m not sure I would go too crazy with pay-per-click because it’ll probably be very expensive. I would just probably keep what you have going that’s working but I would probably do another small giveaway just to try get myself ranking and then just set and forget is what I would do unless probably you have like thousands of units in stock. So Chris, you want to add anything to that? I’m not even sure I answered the question that you initially asked.
[00:21:27] Chris: No, the question that I asked you was about the listing photo and there are a lot of things that are great about the listing but I’m curious what would happen if Kate, you were able to model that other photo that we were talking about because I’m willing to bet that your PPC costs would probably go down. You’re probably going to get more people on the listing which means you’re going to convert higher or you’re going to convert more, not necessarily at a higher rate but you’re going to convert more. If you can’t like that photo because you don’t have packaging it’s great but the reason that I brought that up Scott is the guy that has that photo has the same exact product as two other people in that market on the first page.
[00:22:08 Scott: Yeah.
[00:22:10] Chris: He’s selling it for twice the price.
[00:22:11] Scott: Yeah.
[00:22:12] Chris: And he’s selling thousands a month.
[00:22:14] Scott: Yeah. Packaging.
[00:22:16] Chris: It’s added value in that space and everybody has the same style of photo so when you’re running your PPC, I pulled out the listing, you have 50 reviews. A lot of the people on the first page have a couple of 100 or even a couple of 1000. Those don’t really give me a reason to click on that because you look like everybody else. If your listing stands out like Scott was talking about, you may actually be able to do that without having to do a giveaway, without having to really change anything. I would say that it’s worth a test if you have more than a handful left in stock.
[00:22:48] Scott: Yeah.
[00:22:49] Chris: Scott, let’s recap the three exit strategies that we talked about. The first one you talked about was kind of the lightning deals.
[00:22:57] Scott: Yes, I think that’s low hanging fruit right there.
[00:23:00] Chris: The second one was kind of re-launch where if you want to make a go of the product and you have the inventory still in stock, you do kind of another small giveaway and test and tweak your PPC and then the third one is if you are selling and you’re okay with waiting a little while just let it sit and let it sell out. If you’re selling a coupe a day you will eventually stock out and you’re going to stock out and make a little bit of profit as well, is that an accurate statement?
[00:23:28] Scott: Yeah. I would say. That’s everything we covered and those are your options and again it looks like Kate has really learnt a ton through this process so again I don’t look at it a loser or a failure. You still have a couple of products listed right now. Just as again as you’re evolving yourself you’re starting to understand a little bit better about a market versus just a product.
[00:23:53] Chris: Right, all right, so Scott, the second part of her email here… Well, actually the first half but the part that we’re going to answer second… sorry to confuse everybody, it’s about a sales funnel. Can you just cover what a sales funnel is really quick for everybody?
[00:24:09] Scott: Yeah, absolutely and anyone that’s brand new, a sales funnel is really a sales process that you are creating for someone to go through. Imagine you find your ideal customer and then you present them with something that gets them interested in that product or your products or that market. I’ve used this in the past like fishing. If you were going after someone that was interested in fishing and you found a Facebook group or a fan page that was all about fishing and you had products in that space like a fishing pole or maybe fishing line or hooks or lures or any of that stuff, that would be, and I call that on one of my episodes, that’s your pond of fish. That’s where your customers are hanging out.
Your job now is to attract them with… Sounds kind of bad when you say with bait but that’s really what it is. You’re just trying to attract the fish to you because you have what they want. For us to be able to then take them through a process by educating them and then by also giving them more value but then also showing them products that match up to what they’re interested in. That’s really the basic overview of a sales funnel. Now, I talk about this in episode, let’s see here, it was episode 230 and I covered three types of sale funnels. We’re going to cover a little bit of that today too but that episode I really just broke it down for the three types of sales funnels for your business. That was episode 230. I’ll put that in the show notes to this episode but that one can be directly found at theamazingseller.com/230.
The other one which we’ll be referencing to a little bit too is our good buddy, Mike Jackness. He has a seven figure business right now on Amazon and off of Amazon and primarily off of Amazon and it’s all because of a sales funnel. That’s where he’s taking Facebook ad traffic and then turning that into dollars in the colored pencils market but again that’s another great episode. That was episode 219 that I had him on, I interviewed him, just a great, great guy and a wealth of knowledge but a basic, basic concept really. I mean it really is. That’s what we’re going to be talking about here because she’s very interested and I think after one of those episodes that’s what got her wheels turning and now she’s really built this plan and she wanted to run it by us and see what we thought. That’s what we’re going to be doing here.
[00:26:41] Chris: Okay, so let’s kind of jump in and look at what she has. She has two different products, a couple of different variations to those products that are going to be coming in here fairly shortly. Actually it looks like one of them is already in and the other one is going to be coming in here next Wednesday from when we’re recording this. She said, “My initial offer is to do some giveaways. I plan to start with a contest and then later develop a blog.” She’s creating an off-Amazon strategy here. She says, “The latter takes time and my new products are coming in soon so I have to fetch the low hanging fruits first.” Scott, in terms of a funnel, in terms of starting to generate that off-Amazon traffic, is this a good way to go start, do you think and what are your thoughts on her plan as is laid out here?
[00:27:26] Scott: I like it and just to kind of give people that little bit of an overview of what she’s talking about and I really like this strategy and Chris you and I both talked about this as something we’re going to be implementing as well. Again, let’s kind of go in the fishing market real quick. Let’s say for example right now maybe I don’t even have a product to sell to the fishing market but I want to start to build an email list in that market. I can go find like one of the top rated fishing rods and a tackle box and fill it with some really cool lures. I can then post that on Facebook in one of these Facebook fan pages or these groups and I can say through Facebook ads, I can target these people. I can say, “Hey, enter your name and email address to win this $300 value or $400.” Whatever it’s going to cost, whatever it’s worth. “We’re going to be raffling off this complete fishing set brand new 2016 model,” or something like that.
You’re going to get a whole bunch of people that are going to enter their name and email address because they’re interested in this market because we’re targeting them and we have all these emails. Let’s say in seven days we run that… Let’s say that we get 500 people to register and then from there, we’re able to send the winner an email and say, “Congratulations, you won.” You might go buy these products separately, you might go buy them at your local store and then you just ship those products to those people. It’s a real giveaway, it’s a physical product.
But second part of this is then you can follow up with the people that didn’t win and you can say, “Hey, thank you so much for entering the contest. Sorry you didn’t win but what we want to do is give you guys 25% off our new product,” or the product you currently have or maybe your product line or your store and give them an incentive to want to go buy from you immediately. This will help recoup the cost of the spend. Even if you only get a few people to buy, that’s going to offset your ad-spend and now you’re built a list of 500 people that are interested in fishing poles, fishing lures, tackle boxes and all that stuff.
[00:29:25] Scott: Now we’re entering into that market and this is exactly what Mike Jackness did in the colored pencils and the adult coloring book market and it worked really good. He built an email list of over 30,000 people in this and from there now you can follow up a few days later and say, “Hey, we just posted this new fishing style to catch bass quicker and hey, go check it out on our blog.” Then you send them to the blog and then you give them useful content and that’s what she’s talking about, a content strategy as far as coming up with like five or 10 really good posts that help educate in this market. What I really like about her plan just to jump off here a little bit, what I like about her plan is the first two products that we just talked about the exit strategy, is kind of hard to do what we’re doing here with those types of products.
[00:30:15] Chris: Right.
[00:30:17] Scott: The products that she’s looking at now, a lot better, a lot better but that’s just my overview on that sales funnel and that’s again letting people understand that that’s how you can build your external channel and start bringing people through your sales funnel even on the very, very, most basic sales funnel which is that exactly what I just outlined.
[00:30:41] Chris: That’s great Scott and one of the things and you touched on it is you’re trying to build this email listing and using free giveaways to do that is a great thing to do especially if you can go after the fishing market and say, “Okay, I’m going to give you the world’s greatest fishing package.” You’re going to attract anybody who’s interested in that stuff and you can start marketing to them. Anybody who was at TAS Breakthrough Live in Denver heard me yell this into the microphone like six times, your email list is your single biggest business asset.
Those are people who have raised their hand and said, “Send me marketing stuff.” Long term, those are the people you have instant access to any time you want unlike even like a Facebook audience where you can build a fan page with 100,000 followers or 100,000 fans on Facebook and any given post that you put on there is going to reach 2%, so 2,000 people. If I have an email list of 100,000 people, I can reach 100% of them. Not everybody’s going to open but we can email 100% of those people and they all have at least a chance to open it.
If you get your 10 or 15, 20, 25% open, which is fairly typical if you’re sending good email marketing, that’s 25,000 people versus 2,000 people. If you can put a product in front of them that they’re interested in, “Hey, check out our new lure, check out this.” That’s when you can run your black Friday special on fishing vests and all of those kinds of things. That asset long term helps you drive the funnel even beyond some of the advanced things that you can do like driving paid traffic into the top end of the funnel where they’re buying something directly. Having that email asset long term is extremely critical to making your off Amazon stuff work correctly and for the long term.
[00:32:30] Scott: I agree 100% and again that’s what we talked about at the live event. It resonates with a lot of people. They didn’t realize it but once they did there was like that light bulb went on. It’s funny I just literally got done speaking to one of my neighbors who actually we met actually before we even got here. My wife just got done with a walk and I didn’t realize this until later but she’s got a pretty good following in the blogging world and in a certain niche and I’m helping her and guiding her a little bit. Obviously I told her to go listen to the podcast.
I’m helping her a little bit as far as what she can do with that audience because she’s got a pretty good size audience and it was funny because today she says to me, she says, “You know, I just really want to get this Amazon thing going.” I go, “You know what, time out for a second. If Amazon sales come for you, that’s bonus. You’ve got an email list that you’re going to be sending stuff to and you’re going to be creating helpful videos and tutorials and all this stuff around what you’re selling. All you need is a true 1,000 fans.” If anybody that has not read that post, go look up true 1,000 fans and you’ll find the post that was written.
I forget who it was written by but what it basically means is if you find 1,000 fans or 1,000 people that read your stuff on a regular basis you’ll be taken care of for life and as long as you’re providing value. It was just funny because the mind shift is so different for people that are already having the following but don’t know how to monetize the following, the email list that they have. They want to go to Amazon because they think it going to be easier with the traffic which it is in a sense but you actually have a huge advantage if you have that email list. What we’re trying to do is get you to that point and then have the Amazon thing as a secondary thing as well. Does that make sense Chris?
[00:34:16] Chris: It does and that’s something that you stress over and over again. The reason that Amazon is so appealing and Scott, people have heard me talk about this in the past during hot seats as well, the reason that Amazon is so appealing because they take care of 80% of the work for you. They have the audience, they have the website, you don’t have to build those things, they exist. All you have to do is plug in a product. It’s great for people who don’t have an audience. It’s also great for people who have an audience but you can do a lot of things once you have that audience that you can’t do if you launch without one.
You can either come to the table with one and do a lot of cool things with email right off the bat or you can start selling on Amazon and then start worrying about some of your offsite funnel stuff and build your audience that way. Either way you’re going to try to get to that 1000 true fans. You’re going to try to get in front of those people and getting their email address still and I know this is 2016 and everybody goes, “Who reads email?” Just about everybody still reads email, I guarantee you. Scott, you check emails, what, 2 hours a day? I know you spend more time in your inbox than even most people but guys. The first thing that most people especially in America do when they wake up is they roll over and they open their email on their phone. It’s terrifying to think about they’re probably not the thing that we should be doing first thing in the morning but it’s what a lot of people do. It’s just a habit for us now and so coming with either of those things is great.
Scott you brought up your neighbor who is a blogger that has that and I want to give a shout out to TAS Dallas as well because one of the people that I ran into one of their meet-ups they had. They had a coffee shop meet up in North Texas a couple of months ago and same thing, a couple of 1,000 emails, tens of thousands of people visiting her website and she was focused on not being able to do PPC on Amazon. It was funny because everybody at the end of the day was laughing as I said the same thing that I said a few minutes ago, your email list is your biggest asset in the business, see what you can do with that. Here’s a couple of strategies, here’s a couple of ways that you can go about it. She started doing some stuff about that and I believe she’s had some success and if she’s listening to this, send me a message and let me know if you’ve actually ended up doing some things with that.
[00:36:24] Chris: Scott, in terms of the sales funnel, is this a good strategy that she’s laid out for us: start with the giveaways, start to build that email list and then after you have that list, let’s say we’ve done two weeks of giveaways and we have 500 or 1,000 emails captured at that point. We then send out an email and we say, “Here’s the winner, congratulations to Scotty V from South Carolina for being our fishing vest winner.” I think you were giving away a tackle box and a rod and reel, I’m a cheap roll so I’m just giving away a fishing vest but Scotty V’s our winner just so you guys know we didn’t forget about the rest of you the other 999 of you guys that tried to take us up on this contest. Here’s a 20% off coupon or 30% off coupon, you can buy the fishing vest on our site.” Or, you can send them on Amazon and do that if you don’t have your own site at that point. Does that strategy make sense for her here?
[00:37:22] Scott: Yeah, absolutely and like you said it’s a good point to bring up that if you don’t have a website to drive people to then you’re going to drive people over to your Amazon listing. Some would say that could also lower your conversion rate because some people are going to hit it and they’re not going to buy and that is true but to me it’s still better than not sending that because those people are targeted. You’re not taking someone that is just randomly clicking around. These people are highly targeted so I would be okay with doing that.
[00:37:49] Chris: I would argue that someone in this case is more highly targeted than even PPC because they’ve expressed interest in the exact product that you’ve offered. You’re then offering them 20% off and they’re going, “Yes, I’m interested and then they get to the listing and they go, “Maybe I don’t want to spend the $19.”
[00:38:05] Scott: Yep. One other thing. Let me just chime in here too and this is going to be a little bit more advanced but that’s what I want to do here because this is just you and I talking about this stuff gets me all fired up. The one other thing that I would do and it doesn’t take a lot of work. Literally it’ll take five minutes. I would grab inside of my Facebook ad manager and I would create a retargeting pixel. What that would do is it would basically track anyone that hits the page, whether they opt in or not. Opt in means if they enter their name and their email address. On that landing page, squeeze page, whatever you want to call it, I would out a pixel there and that would start to build an audience inside of my Facebook ads manager account of people that hit that page.
What’s that’s going to do, let’s say I have 1,000 people that hit the page but I only have 500 people that actually opt in, I can still target those other 500 other people and retarget them with some more fishing stuff to try and get them back over to my blog. Again, sometimes, you don’t want to overcomplicate things but sometimes, just that one little thing it’s literally a snippet of code, you just put it on your page or have someone do it and it will automatically start building that list for you inside of Facebook whether you use it right now or not, you’re building a retargeting list inside of your Facebook ads manager so I would definitely do that from the start. What about you Chris?
[00:39:26] Chris: I agree with that 100% and the reason behind that is we talked about the email list and we talked about how powerful that is and I ranted and raved about that for probably 20 minutes just now, I have no idea. The thing that’s kind of cool about that Facebook pixel is it not only keeps track of the people who visited your page but Facebook lets you say, “Okay, now we have this list of,” let’s just use 1,000 again because that’s really easy. “We have these 1000 people who are clearly interested in the offer. When I ran the original ad, I targeted big Bob loves fishing fan page.” or whatever it is. I know these 1000 people are my target audience.
Facebook then allows you to go and say, “Okay, I want to find people who are like these 1,000 people.” You can start to expand from there and use that as your base. I love that idea Scott. The only other thing and not to complicate it further but the only other thing that I would do is I would add Google analytics as well so that you can start to track those people and if you ever want to branch out even beyond Facebook then you have that data as well but those would be the first two things that I would add to any of those pages whether it’s a lead page, a click funnel’s page or your own website page. Any of those kinds of things, I would add those two pieces of tracking so that you can use it even if you’re not going to use it now.
Even if you have no idea what those things are, as someone who works in the ecommerce world, please add both of those things because if you ever want to use that information down the road, you have to have it. It has to be there even if you don’t know what it is, even if you have to hire somebody on Fiverr to put those two things on the page, go do it. Get it installed, get it set up from the beginning so that you have the data if you ever need it or want to use it. Once you start to venture into this world you’re going to need it and you’re absolutely going to want to have it as far back as you can get it.
[00:41:17] Scott: Yeah and before we move on here again, I’m holding myself back here Chris because you know how we get excited about this stuff but I’m like okay. Now, here’s one more thing and we’re going to move on I promise but here’s one more thing. Now, we have that audience that’s being built whether it’s an email list or not. Let’s say it’s not an email list, we have a list that’s being then created inside of Facebook by that pixel and then it basically takes those people and it puts them on that retargeting list because they’ve been in that location. It’s like they’ve been there, now the cool thing is it’s like a custom audience. Now guess what we can do, we can create a lookalike audience. Now, Facebook is going to go out there and find people that match that criteria in their profile and now you can branch out to hundreds of thousands of people that match that type of person. Again just want to throw that out there, there’s so much that you can do just using Facebook in a sense to continually reach people that are your target market.
[00:42:16] Chris: I think that’s great. Scott, long story short on the sales funnel, does her strategy that she’s laid out here work and what would you say after she has done the giveaway should be her next step? Is it that email or is there something after that that you would suggest that she does?
[00:42:30] Scott: You mean collecting the email, is that what you mean?
[00:42:33] Chris: Do the contest, get all the emails for the entry, send an email to those people that says, “Hey, sorry you didn’t win, Scotty V from South Carolina did, here’s 20% off.” Is that where she should stop for now or did you have anything else that you wanted to drive into as far as the next step?
[00:42:49] Scott: The next step if you can is I would try to build out at least probably 5 to 10 pieces of content that’s on a blog and the reason why you want this is because when you first connect with these people you don’t want it to just be like once and done. You want to have what we call a nurture campaign. It’s kind of like where you nurture them along. You get them to know I can trust you and depending if you’re going to be the face of the business it is a good idea if you can find someone to attach their name or face to the brand. That has been known to do a lot better and whether that’s you or someone else that you know.
Again, if you’re in the fishing space but you’re not a fisherman, well, maybe you want to find one and then you can pay them monthly to help you create lessons or whatever and they’re going to love it because they’re going to actually get a little bit of money to do what they want. Again, I think that’s really important but you can also hire a VA to go out there and find the five or ten top things that people are searching for in this market or problems or struggles or things that they need to know and then you can educate them through those emails and create like a campaign.
What I would do is three to one so, for every three emails that you send out after that third one you can then deliver a pitch, something that just directly says, “Hey, we got a weekend special coming up, 25% off of all our gear.” Something like that. Even if you don’t have all those products to do that with, I would still have at least 5 emails to go out probably every 3 to 5 days to let them know that you’re still there and to get them to know they can trust you through that content. Again you can have a VA do that and have someone write the content for you that knows about that market if that’s not you but I think that’s really, really important to not just drop the ball.
[00:44:27] Chris: I was hoping that’s the answer that you were going to give. I figured you would, you’re a pretty smart guy. A lot of people will stop at that, “Okay we sent them one email. We send them an email, 10 people bought it at 20% off, now I’m going to wait 6 months before I send them another email.” Kate, you talked about creating the content, how that’s the long term strategy and it is specifically for something like organic traffic. If you’re building your own website, you’re trying to get traffic from Google and Bing and Yahoo and apparently Dogpile still exists which I didn’t know until the other day but all of those search engines that are out there.
They’re going to start bringing organic traffic that you’re not paying for, that you’re not driving through your email list. It’s going to start coming in but before you even worry about that, you need to have some other things to keep those people warm because while you may have had 10 people take you up on that 20% offer from that initial email, there’s still other people on that list who are maybe not ready to buy right now, who maybe didn’t open that first email, who they added it to the cart and didn’t check out and that’s a big one, a lot of those kinds of things. If you can stay in front of them, you can stay top of mind. Not only does that keep them warm to your brand and warm to the other products so that the next time you launch one, you can reach out to them and you can get a higher uptake but it also helps to pick up those people that haven’t purchased yet.
There’s an interesting set that floats around, it takes 5 or 6 sales pitches a lot of times to actually get people to buy something and you don’t want to just send them sales pitches, sales pitches which Best Buy does. If you ever look at a Best Buy email, not to call you guys out if anybody from Best Buy is listening. The only thing I’ve ever gotten from Best Buy is a catalog email. They go, “Here is all of our products.”
[00:46:07] Scott: With a head of graphic and all that stuff.
[00:46:08] Chris: Right. They don’t send me content, they don’t send me any of those kinds of things. I don’t engage with BestBuy and therefore I don’t have any affiliation to Best Buy. I couldn’t care less about Best Buy. The only reason I’m going to buy something at Best Buy is because they have the cheapest price on something. It’s not because they’re a brand that I like, it’s not because of any of those things. They haven’t created that relationship especially via email with me. Doing what you said Scott and launching this funnel, before you even do the giveaway is when I would do this and find those five or ten most frequently asked questions. In the fishing market it’s going to be something like, “What lure should I use to catch xyz fish? Is a carbon fiber composite…” If that’s even as thing, I don’t know. I’m just making this up. “The carbon fiber composite pole is that better than a traditional wood pole for doing this kind of fishing?”
[00:46:56] Scott: The three best times of the day to catch catfish.
[00:47:00] Chris: Right and they don’t have all to be these “Buzz Feedy” titles but if you of do a little bit of research into the market that you’re looking at you’re going to start to find the things that people are asking about and if you put that content in front of them, it’s something that the people who are genuinely interested in your product long term are going to want to know if they don’t already.
[00:47:18] Scott: Let me just cut in, when you have that email list, you’re going to get questions, those start becoming content. Right?
[00:47:26] Chris: Absolutely and having this in place upfront gives you something to have those people do after that initial giveaway that lets you stay in front of them. I would say launch it with 5 to 10 articles and build from there. Maybe have somebody build you a list of other content that you can write, work with a VA like Scott suggested or just ask people on Facebook. You can run an ad to that same audience and say, “What’s the number one thing that you want to know about fishing for trout or fishing for bass? Or…” whatever it is that people are fishing for, fishing for marlin and you can start to do things that way.
It lets you stay in front of them. The other thing that you can do with that is, okay, you’re going to write an email and Scott you mentioned three to one trade off which is kind of the GaryVee “Jab, jab, jab, right hook” mentality where you saying, “Give, give, give, ask.” That tends to work pretty well. I’m more of a fan of like 4 to 1 as far as direct sales ask just based on some of the stuff I’ve done, it’s going to vary from market to market so 3 to 1, 4 to 1, doesn’t really matter. Let’s say those first three we’re driving them to one of those blog posts. Anybody who’s bought it at 20% off maybe not going to be interested but since you’re driving them to a piece of content, you can put calls to action in that content, you can put a sidebar, you guys have all seen them. You think everybody ignores them but people click on them all the time, those banner ads on the side, you can drive that to your own product because it’s your website.
The email list allows you to get eyes on that page. You can then advertise your product there in a subtle way before you even go after something like another direct ask via email where you’re saying, “Okay, here is the product again just to put it in front of you. We made this change or it’s 15% off today because it’s cyber Monday.” Those kinds of things are a direct ask. You can do a lot of those things and you’re going to pick up incremental sales just by having a link to it inside that blog post because if that’s the one thing that that person needed to be sure that your fly fishing vest was the fly fishing vest for them because the three best things about the fly fishing vest are that it has Velcro fasteners, a zipper on it and it holds more than 10 flies.
[00:49:34] Chris: Those are the three things that make a fly fishing vest a fly fishing vest and your fly fishing vest, I’m saying ‘fly fishing vest a lot’, your fly fishing vest is the only fly fishing vest on the market that has all three of those things. If they now know that they realize because they’re in the market, that’s what they’re looking for and they have a way to buy, they’re going to buy at that point. You’re staying in front of them, you’re staying relevant. You’re giving value and you’re also giving them the opportunity to buy the product that they truly want. Does that make sense?
[00:50:00] Scott: It makes total sense. I think that’s also going to lead us into, we’re going to wrap this up here. We’ve been going on for quite a while but we want to make sure everything is really laid out. The one thing I want to cover here real quick before we do wrap this up is, she has, Kate has a lot of different things here for differentiating the products which I think is great but the one thing that I would like for Kate to do is to almost niche it down a little bit more and make your product line call out certain types of people.
It’s hard to say without giving away the product but for an example we can talk about the colored pencils because Mike Jackness has talked about but we could say we’re going to sell just pencils or just colored pencils or water colors or whatever. We’re going to paint. We’re not really calling out a certain market or a certain person but by doing it in a way that you’re calling out the adult coloring people, they want special pencils, they want to learn more about that because they’re into creating better art, it’s relaxing, there’s positive things that it does for you mentally and physically by relaxing and de-stressing. It’s not just about the coloring so there’s so many different things that we can wrap around that if we were talking about that like Mike does.
In the same breath, if you have something that’s just like a pencil that just allows you to just write a note, there’s not a lot of content you’re going to build around that. If you’re selling to someone that buys office supplies for their business and you’re going to buy sticky notes, does it make sense that you’re going to build content around sticky notes? You just have to understand that you want to be able to find a way to niche it down. You and I both talked off air about how she can do that but because you’re actually looking at something a long time ago that was in a space that could be very broad but you found a way to really niche it down.
[00:52:23] Scott: Again we’re talking about fishing publicly here. Let’s just say it was fishing, well if we were into fishing, we might call out those certain types of people that are fishing for certain types of fish or I talk about guitar playing. If we’re talking about guitar playing, it could be classical guitar, it could be rock guitar. There’s two different people there. I think Kate what you need to do is figure out who you’re going to target and what the benefits that your product is going to deliver. I have an idea but I think you should be able to think through this yourself. It’s a good exercise for everyone. Think about what it is that they’re going to be using your products for and how it’s going to help them and benefit them and how you can create content around it. Chris, does that make sense?
[00:53:05] Chris: It does and I think that ends it right there. I don’t want to ruin it. Beautiful.
[00:53:11] Scott: Yeah right. It’s true and if people understand you’re not just out there selling like a product, you’re selling the benefit that the product has to the user of that product. It’s one thing to say, “Well, I’m just going to sell a bunch of these products that are just you tear out of the bag and you use it.” That’s like, “I’ve got to buy a new cap for my gas can.” Or, “I’m going to buy that, I’m going to screw it on, we’re done.” I’m not going to build a market or I’m not going to build content around like filling up your gas can.
It’s just not going to happen, no one cares about that but there’s people that are selling miscellaneous products like that and they’re doing okay and that’s fine if that’s the strategy that you want to go but we’re talking about building a sales funnel so you can create an email list so that you can nurture that list so you can have those people keep coming back to your blog, keep consuming your content and then being led back to a possible sale. That’s really the whole thing in a nutshell. Chris, is there any last little bits that you want to add here for Kate or anyone else listening, that is thinking about a sales funnel or anything?
[00:54:15] Chris: I think you nailed it with the niche thing and I’m going to disagree with you for a second. I feel like Lee Corso might be offended about you saying there’s not any content about pencils. Wasn’t he a pencil salesman? One of the guys from that morning show used to sell number two pencils. There’s a lot of content for anything but the real hint there is you have to pick a niche. It’s not fishing, you’re selling to fly fishermen or deep sea fishermen or boat on a lake fishermen, I don’t know what I would call that regular fishing but I’m sure there’s a technical fishing term for it or you have a little bob on a line.
That’s just regular fishing to me but you have to find those people and by talking specifically to those people rather than saying, “I’m a fishing company.” No, “we’re a fly fishing company”. You not only generate those 1,000 true fans but it becomes easier to create products and content that appeal specifically to those people because you don’t have to talk about the best rod and reel for deep sea fishing if you’re pitching to fly fishing people. You’re going to talk about the best flies and then guess what, you can create a whole line of flies for fly fishing. You’re not spread out and you can actually going to generate more value both to and from your customers in terms of sales so go for it.
[00:55:28] Scott: I love it. We went on for a while here and we always do this. We could probably talk for another hour but we’re not going to do that today but we are going to wrap this up. I want to say Kate, thank you so much for emailing us and allowing us to share this with everyone. I hope that it’s been valuable to you and to everyone else that’s listening. I do also want to put a little reminder out there. By the time this airs, we should have our page live which you’ll be able to register or be on a pre-notification list or maybe register at that time for our upcoming live event which technically right now as I’m recording this we haven’t officially announced this but when you listening to this, it should be officially announced where it’s going to be and we are going to be in Arizona and it’s going to be November 5th and 6th.
What we are going to do there is have another TAS Breakthrough Live Event there. We’re going to split into two days this time. The first day is going to be exactly like we did it before. We’re going to have 10 hot seats with 20 attendees so it’s going to be 30 people total and then the second day is going to be more about this type of stuff so all the details will be on that page at theamazingseller.com/live. You’ll also see a highlight reel from our last event. We are really looking forward to it, we love doing these hot seats that’s why we’re doing it again here today. You can see we get pretty excited about it and we sometimes we can’t get everything out that we want to talk about and that’s why being in a room with people that are action takers that are thinking about taking their business to the next level or brainstorming, it’s really, really powerful.
I would definitely urge you to go on over there and register for either attending or just being notified of the next live event. We’re doing these periodically. We’re not sure as far as the schedule. Right now, our next one will be in Arizona and it will be November 5th and 6th so definitely go check that out at theamazingseller.com/live.
[00:57:21] Scott: Guys, that’s it, that’s going to wrap up this episode. Chris, we’re going to close this together today. I’m going to close it the way that I always do and I want people to remember that I’m here for you and I believe in you and I’m rooting for you but you have to, you have to… Come on, say it with me, say it loud, say it proud, Chris, you got to say it with me too on the count of three; one, two, three, “Take action.” Have an awesome, amazing day guys and I’ll see you right back here on the next episode. Thanks a lot Chris. Come on Chris, say something.
[00:57:53] Chris: Oh, I thought we were done, anytime Scott, anytime.
[00:57:59] Scott: All right, later.
Click Here to Download Transcript <<