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…a lot about the numbers. We're going to be talking about making $100,000 profit in 12 months with three products. Sounds pretty cool. Sounds pretty sexy, right? Well, here’s the deal. It is pretty sexy but it’s not all glitz and glamour. It’s going to take work to get there and the reason why I’m using these numbers because I’ve actually built this plan around it but I also want you to look at the 100,000 we’re looking at is profit in pocket and a lot of people are out there saying, “I want to create a million dollar brand,” and you hear a lot of people out there, a lot of people in our space where they’re sharing screenshots or they’re sharing their numbers and they’re saying, “We just did $2.5 million last year.” Okay. Great. How much did you put in your pocket?
Because here’s the thing too, a lot of people they're selling like one product. They have a one hit. It's kind of like the one-hit wonder. They have one product that did $100,000. Is that really a business? Not to me, it's not. It's really risky in my opinion because you're not building something that will allow you to continue to grow outside of one platform and if one product fails, even if let's just say for example you did go out there and you built your entire business on Amazon which I do not think that you should do but if you did, and let’s say that you did that with one product and it was selling $100,000 a year in profit. So, let’s say that you generated $800,000 but you netted $100,000 or whatever. It’s still not that great of a margin but let’s just say that that’s what it was. Cool. At the end of the day, you still got $100,000 in your pocket with one product. Problem with that is, number one, it’s all dependent on Amazon. If Amazon decides to shut you down, you’re done. If you have a problem with that product, you’re done, or you’re delayed, and all your revenue goes away so that’s risky.
[00:02:07] Scott: So, why not diversify and go out there and find three products at least minimum and then build a brand on and off of Amazon. Like doesn’t that sound better? Doesn’t that sound safer? I mean, any financial advisor would say, “Listen, don’t put all your eggs in one basket. Don’t try to invest in this one stock. Do a mutual fund or whatever.” I’m not a financial advisor by the way. But you get the idea, right? So, what I want to do here today, I’m kind of fired up today because it’s kind of annoying to me sometimes where people go out there and they chase these numbers that they think they’re going to make a whole bunch of money if they just chase the million-dollar thing when in reality it’s really about your numbers. It’s throughout the margin. I mean, you can do less numbers and still net $100,000. You don’t have to do a million dollars to do $100,000.
If you’re only netting $100,000 and you did a million, you’re not doing something right either by the way. The margins are terrible. They’re only 10%. We want to see 30% to 50% margin. That’s what we want to see. But what I did is I did a video on this and this would probably be a good time to remind you about the show notes and stuff because I'm going to link up that video inside of this post, of this episode so this way here you can see me actually outline everything too. I kind of went through and drew everything out on the whiteboard and showed you how all the numbers kind of tie together but I'm going to kind of do it here in an audio fashion here because we're on the podcast but I want to walk you through these and I've got like six key components that we're going to talk about and I'm going to talk about all the different pieces to make this all kind of happen and then it gives you a roadmap. Now, if you want it to be more than the $100,000 net profit then go after a different number. You got to figure that out. You're going to see how I'm kind of reverse engineering how we can get there. And I think that a lot of people, again, they go after the number, but they don’t really see what it’s going to be at the end of the day and they also don’t look at it as building a business.
[00:04:01] Scott: They just go, “Oh, I want to find the next fidget spinner where I can make $100,000,” like that’s not a business. That’s like it’s risky but it’s like you’re flipping a product and then you’re onto the next. It’s gambling in a sense because you’re only going to be able to produce that for a certain amount of time and then you’re done. You got to go out there and find a new product that’s going to do the same thing and it might not be like that. It’s kind of like someone that’s a singing artist. If they have one song and it does okay, that’s great but they got to continue to put out hits and they got to continue to build that audience not just on iTunes. Like, so they have to do that outside of just that one platform. So, and the other thing that I want to say here is this is not like a get rich quick thing. This is not going to happen overnight and anyone that’s telling me that is lying to you. I’m telling you that right now. Okay. Because it is going to require work. Any business will require work. But I will say this, if you’re selling one product only on Amazon and you’re banking on that, that is very risky and that is not a business.
What you need to start thinking and you need to start considering is how to diversify and a very easy way of doing that is to have more than one product. That’s number one. And number two then bringing those products outside of just the Amazon platform and building other assets around that business and brand. So, the show notes to this episode, The Amazing Seller.com/494 I think I forgot that. I said I was going to say it before and I didn’t because I’m so fired up. TheAmazingSeller.com/494. I’ll link up everything there, the show notes, the transcripts and I’ll embed that video that I did on YouTube there.
[00:05:35] Scott: All right. So, let’s dig in. So, there are six key components to building a real business. Now, on my notes here I have, in all caps, A REAL BUSINESS because this is what it will take in my opinion to build a real business and a real asset because what we can eventually do if we want, if we build a real business then we can sell that business. We can do an exit and we can make a million dollars profit. But we got to build it first. So, number one, in these six key components is this, brand focus in a market. So, number one, we got to think about a market. What market are we going to look into? What is the one that we're going to kind of set our flag in the sand or stick our flag in the sand? What one is it going to be?
Now, I talk a lot about this in the 24-hour challenge where I actually have you go through and start to really figure out the market by looking at things that are already currently in your life. Definitely go check that out, TheAmazingSeller.com/Challenge and then for anyone that just wants to actually go through this entire process over the course of three weeks, there’s actually a course that we’ve recently created called Product Discovery Bootcamp and that actually goes through and we identify your market, your submarket, and we find products to serve that market. If you’re interested in that, definitely check out ProductDiscoveryBootcamp.com.
All right. So, first thing, brand focus in a market. That is number one because once we have that focus on the market that we’re going after, and we’ve got a brand now and that brand, all that that means with a brand is that’s our focus. That’s what we’re going to be known for. Not right now. Eventually. So, when someone comes in, they’re going to go, “Oh they sell things in the fishing space. Let me look at all their other stuff.” That’s one way. The other way would be, well, they’re going to come in to your ecosystem in a sense and then they’re going to be led to that next product automatically.
[00:07:36] Scott: Or maybe if you’re just on Amazon, it’s going to be frequently bought together because now you have other products that complement the other products. So, that’s that brand focus. And it’s easier to find more products when you do this right because now you already know the market that you’re going after. You’re not going to be like, “All right. I’m going after health and fitness, but I want to sell fishing gear over here.” That’s what we call the open market. Now, if you want to do that as like a testing ground, go for it. I would prefer if you did that that you do it for a short-term and then from there you start to see what markets that you want to then drill down into. All right. But that’s the only way that I would suggest doing that for a long-term thing is I wouldn’t want to have like a repair brand and then I sold things that you fixed a garden hose and then over here I fixed something for a roof so I’m like a home improvement kind of repair company. It’s too all over the place for me. Could it work? Sure, but I wouldn't do that. So, that's number one, brand focus in a market.
Number two, products that support the brand and market. Like I said, once you have that focus on the market that you were going after, you’re going to start knowing who that market is. Now, one little tip here. You do not have to serve the entire market and I don’t suggest you even thinking to do that. What you want to do is you want to find the market, big market and then you want to find a submarket and maybe even another submarket. Example of this, outdoors you could say that would be a big market. Outdoors you would say sporting an outdoors like let’s just say that that was the big market then you can say let’s drill into fishing. That’s another big market. We kind of took it down one level and then from there we say, “Okay, let’s go into bass fishing and then from there let’s go into kayak bass fishing,” and believe it or not, that is a thing. So, I just took it that many levels deeper and that’s what my brand is focused on, the kayak bass fishing.
[00:09:37] Scott: Not just bass fishing. I could still serve the bass fishing market and I could also serve the fishing market later if I want to but right now I’m going to be known for the kayak bass fishing market. Okay. So, and then once we do that, we have now a focus on what we are or who we are serving so then it’s going to be easier to find those next few products. So, that’s number two, products that support the brand and market.
Number three, a website that gets traffic. Now, who doesn’t want their own website traffic? If someone types in Google, wouldn’t you like your website to come up? I mean, people still use Google by the way. So, who wouldn’t want that? Well, that’s not going to happen overnight. That is going to take time. In our new brand which is under 12 months at the time of recording this, we started that to basically just as we were creating content, we would publish something and then from there, we would link to other resources and then we would also have a YouTube video and we would embed it or we do a Facebook Live and we would embed it or we would link people back and forth.
Just doing that stuff without really getting too crazy with like search engine optimization and all that stuff which we’re going to be working on here in this upcoming year, we’re getting over 25,000 unique visitors to our blog, our website every single month like that’s free traffic. We’re not paying for that. That’s our home base so think about your website or your blog as your home base. So, you have your business, you have your brand. You need a home base eventually and that’s where everything is going to reside and then when you want to go out a little bit further and you want to create a little asset out there on social media, you can do that. If you want to have another asset out on Amazon’s platform because that’s where you’re going to be selling some products to, that’s another leg that goes outside of your home base. So, everything kind of goes outside of your home base but everything is actually led back to the home base.
[00:11:39] Scott: And over time, that will start to compound on itself and start to get more momentum and then you’re going to start to get some of that organic traffic but that’s a long-term play. Let me also say that once this starts to happen, when you go to sell if you ever wanted to sell your brand, you could say, “I get 25,000 unique visitors to my blog, my website, my homepage every single month.” That's an asset. That's free traffic that they can pretty much bank on. They can look at the analytics. They can see all of that stuff. So, that's number three, website that gets traffic, creating your home base.
Number four, an email list. We talk a lot about this. You guys know we kind of harp on it because it's so important. It does a lot of things. Number one, it allows us to communicate with our market. We also are able to then push sales if we want to on Amazon which then spikes the algorithm inside of Amazon which gets us organic search inside of Amazon, another platform which by the way if someone buys something it could lead them back to our home base and there are ways to do that that you're not violating terms of service. We're not saying you put an insert in your product and you say, “Oh go here and get this for a discount. You're not doing that.” What you're saying is, “Hey, for more information, for more resources, go check out XYZ.com,” and that's it. And then they're going to go there, not everyone. A small percentage will go there and then you'll start to build up that outside traffic that's being led from Amazon and that's just one way.
What if it’s eBay? Same thing. What if it’s Etsy? Same thing. Those are all separate channels, platforms outside of your home base that you could lead them back into your home base, and on your home base, you would have an email opt-in form of some kind where they could opt in to get special deals or more resources.
[00:13:33] Scott: And then on that email list we can communicate with them either like I said to push the product over on Amazon or maybe we just communicate with them to get them more value to let them know that we are the brand that’s focused in kayak bass fishing. So, we’ve got a new video that came out this week of father-son doing some kayak bass fishing and how they caught this 4-pound bass or whatever. I’m going to sound really silly here about my fishing skills, but you get what I’m saying, right? Like that’s what can happen. That is another asset that you have inside of your business, inside of your brand, and that you can direct again that traffic wherever you want. If Amazon decides to take you away or suspend your listing for a short period of time, you can always send people to your website or to another platform if you want to. And the other cool thing is you can take people on that email list and you can direct them to something that you created on social media to start to get your social media going.
So, there’s all that stuff that can happen with that email list. If you guys are brand spanking new and you’re listening to this and it sounds like you’ve never heard of like building an email list for opt-in form or landing pages or any of that stuff, definitely check out our free resource at TheAmazingSeller.com/BuildList. Again, I’ll link this up in the show notes because that one there is a must. Totally free. It’ll teach you everything about building a list, how we’ve done it and how we continue to do it so definitely check that out. Okay. So that’s number four. Email list, traffic source that we control.
Number five is social media channels. This allows us to have more traffic that can come back to our home base. It can go over to Amazon and then it also builds trust and reaches people. That’s what we want to do here. Social media to me is again it’s another platform so we don’t want to really go over there and build our house over there because if YouTube decides to maybe ban us for whatever, a violation of something that we didn’t even know, they can take all of our subscribers and basically delete them overnight and that’s what we don’t want and that’s why we definitely do not want all of our eggs in one basket either and we don’t want to build our house on a social media platform or our business on Amazon exclusively.
[00:15:55] Scott: Now, do we want to use these other platforms, absolutely. Absolutely. Why wouldn’t we? But that’s why we want a home base. That’s why we want our email list. Those are our true assets that we control that we’ve built that we know won't go anywhere. They're ours and nothing will really change with that unless, again, we got de-indexing Google or something like that. I mean, could that happen? I guess but for the most part, that's going to be very, very rare that if something like that ever happens especially if we’re doing everything above board. Now, Amazon, on the other hand, you guys know if you’ve been around the block a little bit you guys know that stuff can change like really, really fast and it just depends. Or you could have a problem with your supplier and then all of a sudden, you’re banking on one product now. And you don’t have anything to kind of backfill, to kind of spread out amongst your brand. Anyway, number five, social media channels. We definitely want to use them.
Now here’s one other thing, I do not want to see anyone go out there and think that they need to do all of the social media channels. Right now, we are primarily using Facebook or just starting to tap into YouTube. So, what we’re pretty much doing is we’re taking some of our Facebook Lives that really did well and we’re going to start creating videos that are similar and we’ll start putting those on our YouTube channel and starting to build out that platform. We’re doing a little bit on Pinterest, not much but for the most part, it's really Facebook and then from Facebook, we will be going to YouTube and then we'll play around with Pinterest a little bit, maybe a little bit with Instagram but not that much right now. It's not our focus. The social media channels that you want to concentrate on are the ones that are bringing the most traffic right now or where your audience is hanging out. So, social media channels again when we’re building this brand, it’s another thing that we want to use and leverage but again, it’s not building our platform or our house if you will, our business on the channel. All right.
[00:17:58] Scott: And then six is a customer experience or customer support. We want to give the customer a great experience. We want to give them a good journey. You got to remember when they’re buying something they’re on a little journey and the thing is, is even though they’re on that journey right now, they may be on a different part of the journey in that market six months from now. We want them to remember to come back and one way that we can have them remember us is by being front of mind, delivering value through our email list, through our blog, through our website, through our social media channels. All of that stuff again is that brand awareness for our kayak bass fishing market are our focus. Like, that’s what we want to be known for. So, it takes time. It’s going to take time to build out this stuff but like I said right now we are on track. We’re in mid-six figures right now, not profit. That’s top line and we’re netting between 40% and 45% right now.
And honestly, I mean, our thoughts where we’re not going to make any money this first year and we’re already pulling some money out of the business. So, this is totally possible. Now, here’s the deal. Let’s talk about products because I talk about that in the beginning like how to make $100,000 profit selling just three products in 12 months like is that even possible? So, here’s kind of the plan that we’re living by and that I think is a great simplified version of building a massive business because we don’t want to be overwhelmed. We don’t want to think we have to do everything. So, here’s the deal. Number one, going back to finding that market, you need to find a market that is buying products and I like looking at the hybrid approach of finding a passion/hobby market and a problem market and kind of bringing those two together. I’ve talked about that in past episodes.
[00:20:00] Scott: So, here’s the deal. We want to focus on three products that go together. I can’t tell you how many times I hear people saying, “I’m getting started and I found one product, but I don’t know what I would sell them next.” I think that you should have your first three products kind of mapped out and an easy way to do that is to really just go to Amazon, look and see that main product and see what’s frequently bought together. Heck, before I just got on here, I’m going to be traveling depending on when you’re listening to this. I’ll be in Orlando and I’m going to be there in an event. I’m going to be there also with my team and I needed a couple more mics. So, I went on YouTube, did a little bit of research on the best travel mics and stuff and I had some configuration things I had to do but long story short is I needed to buy a couple of mics. So, I bought these two mikes and frequently bought together, there's a cable, an XLR cable and there's also those little windscreens that go over top like those little foam, what is it? It’s like a foam whatever. It’s a windscreen of some kind. I think it was like a foam cushion that goes over top of the mike.
So, it protects it from hearing all those Ps and all of the Bs and those explosive words and also takes care of any wind or background noise. So, those were things that came up in frequently bought together. Now, I bought the cable. I bought that little muffing that goes over. I think that might be what it’s called, that little muffing that goes over top of it. So, I bought those different accessories because they were part of it. Now, I went with I think it was the Shure microphone, so I went with that brand. They also have a cable. They also have one of those windscreens. Bought it all. But it all there. Now, I don’t know, I haven’t been through their customer journey yet. I don’t know if I’m going to get emails. I don’t know if I’m going to have a way to join their email list. We’ll find out but that will be a great way but that’s just a great example of three products that go really well together.
[00:22:06] Scott: Now, there are other things obviously that I would want. Now, if I’m buying that, it’s kind of like more of a broader thing. I’m buying it because I want to record but they don’t know if I’m a musician. They don’t know if I’m an interviewer that’s going out and doing interviews like a reporter. They don’t know any of that stuff. Now, if they were targeting me over here on my website about how to do great interviews and podcasting and then I went through that link or I opted in for a certain thing, maybe I gave my email address for five ways to do great interviews and then I happen to see these two mikes and then I bought those mikes, they would know that that’s who I was. That’s the type of person in that market because that microphone serves a whole bunch. It’s kind of like bass fishing. It’s kind of like I can buy our fishing rod or I could buy one that’s specially made for bass fishing. So, now they clearly know what I am doing. They know that I’m someone that’s a reporter in a sense. So, just another example of kind of how that worked.
All right. So, back to when I was talking about as far as like figuring out this plan to build a six-figure profit brand where you can actually put profit in your pocket. So, focus on three products that go together, number one. Number two, focus on brand home base website. That would be my next thing because now I want to be able to get them to a certain place were where I could also educate, also maybe have fun with them or they could have fun with our products if it’s that type of product or maybe how-tos, all of that stuff. Build the email list in the market and this is again content, discount codes, special offers. It could be contests, any of that stuff so build that email list in that market, deliver how-to content on a regular basis, I say at least once a week whether that’s Facebook Lives, whether that’s just Facebook video, YouTube videos, whether that’s just written content, whatever. You want to deliver that stuff and then using social media to deliver and also direct the content over back to a sale or wrap the content around a product that could lead to a sale.
[00:24:15] Scott: And again, that’s it like that is it like that is the plan like find the market that buys products, find three products that go together, focus on building a brand in that market, create a home base, build an email list, deliver content, give them discounts, special offers, help them by giving them how-to content, show up on social media, and just keep repeating that. And then just keep driving people through that system in a sense or that funnel as a lot of people call it. Because we’re continually touching them and educating them and making them laugh or showing them something that they might be interested in. So, that to me is how you would do it and that’s how we’re doing it. If I was starting from scratch right now with someone else came up and they said, “Hey, I want to start a business with you,” this is what I want to do. These are all the different things that I would be asking like are there three products or more?
And honestly, going back to the three products, I like three to five minimum but again I would only start with the first three pretty close back-to-back. I wouldn’t do them all at the same time. It’s just sometimes that could be financially hard but also promoting-wise, but you could do all the other stuff. Now, talking about like how do I get to the $100,000? Well, here’s how I did it. And I drew this up on the whiteboard so again I would definitely recommend watching that short video. The show notes would be found at TheAmazingSeller.com/494. So, here’s the deal. So, just picture you have your brand at the very top of the page and then you draw a couple of lines off of that, three lines, three lines off of that, and then underneath that you write product 1, product 2, product 3. Now in each one of those products, we want to generate $100 profit per day per product.
[00:26:12] Scott: So, you guys have heard me talk a lot about the 10 x 10 x 1. This is where that comes in, a $100 profit. How do we get to $100 profit with that one product? We sell that product. We sell 10 sales a day or we sell that product 10 times a day and our margin is $10 profit per unit so however, you arrive at that the margin is totally up to you but at the end of the day, you need to make $10 per unit to arrive at the $100 if you’re selling 10 units. Now, if you have a product that sells for $40 and you can source it for $8 and you can make $15, well, you can sell less per day but you’re still arriving at the $100 profit per day. I just like using this because it’s an easy number and that’s usually what we shoot for. So, just again 10 units a day of one product, $10 profit each sale equals $100. We have three products that go together.
So again, someone could buy all three or you might just get someone that comes in today on one product and comes back later or maybe someone comes in and does buy all three. But we want it arrive at that $100 profit per day per product. Again, so looking at it visually, if you’re looking at the brand, we have three products. They all support each other. Each one is netting a $100 profit per day. That’s $300 per day. Pretty easy math, right? 30 days is $9,000. So, $9,000 we just did real quick math. We just times that by 10. That’s 90,000 but guess what, we’ve got two extra months. We’ve got 12 months in a year so that’s going to be over $100,000. $108,000 profit in 12 months if we follow this simplified version of building a brand and selling on Amazon or selling on e-commerce or selling on – whatever you want to sell doesn’t matter. This is where you would need to arrive to get there. This is what you would need to put in place.
[00:28:15] Scott: So, again, you could take this whole thing and say, “Well, how can I go over to eBay and sell ten of something every single day?” Like you can go that route if you want or you can just say, “I got my own website and I’m going to drive paid ads to an offer and I need to make $100 profit on that ad every single day.” If you can make that work, you’re going to arrive there. But we’re using Amazon right now because it’s an easier platform to get in front of all that traffic. So, again, just to kind of recap. We’re looking at a market. We’re looking at building a brand in that market and preferably like a sub, submarket in that big market and then from there launching three products that go together, building our house, our home base on our own platform and then building an email list, driving people to and from our home base using that email list and then starting to get some organic traffic through search, through Google, through YouTube, through Facebook, through all of these other places that we went out there and we’ve created a small little piece of our brand outside of our home base. And then getting to the place where we’re able to generate $100 profit per product for those three products each. And that would arrive at $9,000 and then that would be $108,000 profit.
So, again, that is the simplified version of making $100,000 profit selling only three products and doing it in 12 months. So, that would be three products you would have to launch, and I would say launch them in the first three months and then that way there, you have another eight months, well, nine months. You have nine months and then you would be able to really ramp that up. So, that’s what you, again, maybe you don’t get to the $100,000. Maybe you get to $70,000 but maybe all you really need to get out of your current situation was 52,000. Shoot for that and then you’ll arrive there.
[00:30:18] Scott: And the other thing is this is a starting point. Let’s now say, okay, I want to make $200,000 profit. Well, then you’re just going to double what you just did and you’re also going to find out that some of those products that you’re only shooting for $100 profit, they might do $200 profit per day. That’s happening in the new brand. We’ve got some products outselling the others and that’s just the way it works. That’s why we diversify. That’s why we want more than just one product. So, guys, I can go on and on and on with this because I feel so strongly about it and I think this is a real business. This is something that you can build and then guess what, when this is built, and you put the time and effort into it, you can pretty much turn it over to a broker and say, “I’ve got all these assets. I’ve got this brand. I’ve built up all this stuff. I’ve got the revenue coming in from all these different angles. I’ve got an email list being built. I’m collecting 75 new subscribers every single day or 100 subscribers. I’m getting traffic here. I can show you my analytics.” You got all this stuff and now you can sell that brand if you choose to for a larger sum of money than just the yearly. So, that’s what also you could be building this for. So, to me, I love this really approach and going at building a business versus just going out there and finding the next fidget spinner.
[00:31:32] Scott: All right. I went on long enough. The show notes, guys, can be found at TheAmazingSeller.com/494 and everything will be linked up there. Definitely go there because I will embed that video of me kind of drawing everything out there on a board. A lot of people have been really enjoying those whiteboard videos. So, definitely leave me a comment on that video too as well and if you’re going to YouTube, if you’re going to find me there, definitely subscribe to that channel and then the other little reminder I would give you is if you are stuck in like just getting started or not really knowing what market that you should go into, I would definitely recommend checking out our brand new training and that is the Product Discovery Bootcamp. Definitely, check that out. You can find that at ProductDiscoveryBootcamp.com. All the details will be there and that’s where we take you through the entire process to really figure out what market you should go into and figuring out those first three to five products so this way here you know exactly the path that you need to go moving forward to attack this submarket that you’re going to be delivering these products to and really just a better vision of how to go out there and build a brand from scratch.
All right. So, guys, that’s it. That’s going to wrap up this episode. Remember, as always, I’m here for you, I believe in you and I am rooting for you, but you have to, you have to, come on, say it with me, say it loud, say it proud, take action! Have an awesome amazing day and I’ll see you right back here on the next episode.
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