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Google My Business | Ecom Weekly
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[00:00:15] I'm in Arizona now. Uh, but, uh, I'm glad to say that we have Google business clients around the world. So there's a chance that one of your neighbors is using some of my techniques. You know, one of the things that blew me away was, and I hear this a lot. But I was one of these people that said the same thing.
[00:00:38] I get the question. Uh, can my brand use Google, Google my business, because it was always for bricks and mortar, right? It was all local SEO and no one like a year ago, at least my knowledge was using this for brand building. Is that correct? Yeah, that is correct. Uh, early in, uh, uh, 2020, uh, Google changed the rules and allowed, uh, uh, area only businesses.
[00:01:08] Uh, the drawback is if it's a drawback is you do have to still use. Physical address and it has to be a legitimate address. Uh, it can't be like a suite number or private mailbox or anything like that. Uh, but you can make the address private. So just to give you an example, I have a number of clients that sell.
[00:01:31] Globally on Amazon, they're actually clients of, uh, norms, uh, that we, uh, we actually use my address for their physical address. They're in Australia, New Zealand and places like that, selling on Amazon in the U S so, uh, the address really isn't so important as the message and the product that you deliver.
[00:01:52] You know, this is when we started talking. One of the things you told me about was a car dealership that you were dealing with. So this is a great example of how effective and how cost-effective. Uh, Google my business can be, you want to just talk about what you did and how it is virtual. Like it is a bricks and mortar.
[00:02:12] It's a car dealership, but what did you do for that dealership? And what were, how did you cut the expenses and. Okay. Well, that's actually a chain of dealerships in each individual store is spending an average of $55,000 a month on digital marketing. And, uh, we came in, we've been with them now. We're on our fifth year.
[00:02:36] They just, they just paid for another year in advance. So. Uh, but there are seven dealerships in that chain right now. And the average store gets 220,000, uh, opportunities to do business a month from their Google, my business profile. Uh, it's actually crazy. Because they have a lot of inventory and this is important for all of you retailers out there.
[00:03:01] Your inventory has to be on the Google business platform. And there are a number of ways to do that now. Uh, but people will look at your inventory and my clients are getting 200,000 views a month of their inventory that they're going to sell a few cars. In fact, They've completely eliminated all of their other digital marketing expenses.
[00:03:24] I'm not saying that they've done away with marketing altogether, but their digital marketing is only based around their Google business profile. So I believe that the numbers that you were talking and were around 50 ish, 50 plus thousand a month, and you eliminated most of this and. It was a, roughly around a thousand bucks a month.
[00:03:49] Was that, am I correct? You are absolutely correct. All right. Yeah. So imagine that. So 50, $55,000 a month in. And I, you know, I I'm an old school SEO guy. Um, and when I first heard this, I couldn't believe it. So, you know, I hear this all the time, give me three months and give me X number of dollars. And I'll either do this locally or nationally for you at X expense.
[00:04:17] And it can grow very quickly, especially if you're trying to grow a brand. And here's Craig going out there with this dealership, getting them down to basically a thousand bucks a month. So. Ah, I think that's doable. So let's talk about like, what is Google my business. So it's really interesting. And I'm going to give you the long explanation in a very short amount of time, like Google, like, like Facebook and LinkedIn and everyone else is trying to keep people on their platform as long as possible.
[00:04:49] So Google has generated all of these tools that are designed to hold content that they can deliver as what we call as ClickList searches. And so that content is delivered through the Google, my business knowledge panel. Now, normally. Uh, Google business knowledge panel is not being manipulated. Only comes up when you say the name of the business city and town, etc.
[00:05:15] But if you utilize the profiles and optimize the profiles with your products or services suddenly, uh, when somebody types in. Solar powered light or a soy candle or Southwestern style blazer or whatever. Right? All of a sudden the Google business panels are relevant, uh, because of the manipulation of the profile and the Google business panel actions and miniature weapons.
[00:05:46] So instead of driving people from Google to your website or to your Amazon page or your Shopify page, you can actually have your products onto Google panel. People can engage with the Google panel, they can buy the products. I can have it delivered and they're right back on. And the thing is Google rewards that because they want to keep people on their platform as long as possible.
[00:06:09] So they'll actually push your content to people that their algorithm has decided are most likely to engage. And that's huge. The engagement on every Google panel I run is at least 12% from search to engagement that. Right. And you know, one of the things I love about this is every piece of content can go on to your Google, my business account or your profile.
[00:06:38] So like for, for us, for example, if we write anything, if we write a blog article, it's there. If we have a guest blog article, it's there. If it's a product, so we have different product categories I sell on Amazon, I sell, um, you know, different products and I can have a variety of. Products like categories and then the product itself.
[00:06:59] And then any of the images that I have can automatically be searched in Google image as well as you can see it in shopping. So it's just something that you just get so much extra ranking power from this. And not only that, every social media post that you post, all of a sudden goes into Google my business.
[00:07:23] What about like on a mobile phone? I don't know if anybody knows, like, if you've seen this, you probably have, but when you, you can't be number two with Google, my business, your number one. And Craig, how many times do you dominate a mobile search? If you come up number one, how many swipes? Uh, if the, uh, the miniature website fully OD, fully managed Google business profile is three full swipes of the thumb.
[00:07:55] Uh, before you get to any ad content or anything else, it's just a, that's a tremendous amount of real estate. And you remembered everything from every conversation we've had in our well, you know, it's just, it's so impressive. And you know, when I, when I, uh, I get into. Debates with people that just absolutely don't believe the power of this, or they don't understand that they can do it.
[00:08:22] Like I see Brian Johnson here. I see Rosalyn on here. I know both of these people from the Amazon world, and I'm sure Brian's either heard me talking to people about this at events or, um, you know, have seen it in, in some of the groups, but this branding, this whole issue of a branding. If you've got a pet item, Any of you that have supplements if you're in a competitive.
[00:08:47] How would you like to start ranking in your competitors? Won't know what you're doing because you're all of a sudden ranking. And like, for me, um, all of a sudden I'm in these carousels, you know, and I'm in like just things I would never dream of being. Because of Google my business and this clinic was searched by the way.
[00:09:09] So if I'm selling bully sticks, okay. Or natural soap, and then all of a sudden I'm relevant and I'm not even targeting lavender soap or handmade or cold press soap. These ClickList searches. All of a sudden they're pumping me up and promoting me to these other searches that I not even targeting. That's absolutely correct.
[00:09:32] And it, and it's really crazy. I just give you a real easy case study. Uh, one of your clients came to me, uh, it may sell a. And, uh, they weren't, they didn't have any traction at all had. So I think in the last 30 days, uh, something like 53,000 people visited their website and fact, the doctor sold his supplement company for quite a little tidy song.
[00:09:59] So, um, so he's a happy camper all the way around, primarily because of Google my business.
[00:10:09] Yeah. Yeah, you do. I know. You know, so, uh, but, uh, so that, that, that's awesome information that the other side of the coin, and this is how cool it is. If you're actually managing a Google profile, when you optimize it, you can utilize your competitors. That might be actually having a larger marketing. You can actually use their keywords or their name as one of your keywords or key phrases that will trigger your profile.
[00:10:39] And I did this for a furniture company. A local furniture company was starving and, uh, one of the big, big furniture companies in town was spending about 400,000 a month. And advertise it. And so we utilize his name as a keyword in the backend of the profile. And in, in that first month that he did that, he got 4.9 million views in 28 days.
[00:11:06] That's crazy. Blew my mind. That's the biggest number I've ever had in one month. But, uh, uh, but yeah, but yeah, it works. Here's the crazy thing. Norm 94% of the people in the world use Google to search. Yep. So why wouldn't you want to be there full time instead of just trying to drive people from the search engine and they're fighting you by the way.
[00:11:32] And the old SEO in my opinion is gone because Google is fighting to keep people on their platform. Well, now we've also talked about this, uh, you and you and I have talked about this. Now there's people on here that are selling on Shopify or they're shopping on Amazon, they have a listing on Amazon or their Amazon store, or even now their brand feed page.
[00:11:57] Right? Imagine this, you know what, there's there? It's under a hundred people listening right now. I can't like, maybe it was just because it's Google my business and they didn't think they could get that much out of it. We should have a thousand people on here listening to this right now, because the information is so crazy.
[00:12:17] You can take your Amazon product. Okay. Your, your, um, your listing, your product page, you can put it onto Google, my business. You can put all the images that you have, and you can use that. As what we w we'll call an anchor URL. So your anchor anchored L is your unique identifier, that if you put that unique identifier into a social media post into any form of content that will drive.
[00:12:46] Like that will start ranking your product. That's the that's that's right on the money. And not many people do that. And for the technos in the crowd, I will explain that the Google algorithm update pigeon gathers social media signals and. About two months after they launched the pigeon algorithm update, uh, they launched the Google, my business profile, Google my business profile, or as panels, whatever you want to call them, they are a social media panel.
[00:13:21] And, uh, to that end, if everything that you connect. Virtually in other words, using anchor URLs, uh, indexes to search, and that's the big key we can do everything we want to try and SEO and try and get stuff to index, but it's all based on what the bots like or don't like. And, uh, so you can just utilize in Google tools and Google my business.
[00:13:49] You can get your content to index. In seconds to search, which is a game changer for people trying to sell online. Yeah. That's what I love. Uh, the word in seconds immediately. Uh, let's help. Let's start, you know, targeting. How do you even get a Google profile up? Uh, you know, we've got a bunch of people on here.
[00:14:12] Let's show them how to set up a. It's it's really easy. And, uh, uh, so if you have a Gmail account and you really do need to have a Gmail account to make the most effectiveness, when you're logged into your Gmail account and you're on the Google search page, just type in business.google.com. It's really easy business.google.com.
[00:14:39] As soon as you hit enter, if you don't have a Google business profile, there'll be a little mobile phone icon up there or a photograph rather, and it says type in the name of your business type in the name of your business and get started. If you utilize your cell phone as the contact number on the Google, my business set up, you'll be able to activate your profile in about five minutes.
[00:15:05] If you utilize a, uh, a landline or R a, a virtual number or something like that, uh, you have to get a card in the mail, uh, which takes about, uh, about five business days. But you know what, norm everybody that's listening to you. If they want, uh, I have a website. And this is not a pitch. Okay. I have a website where they can learn how to manage their Google profiles and Google tools.
[00:15:31] It's normally a $500, uh, get on. I will give it to all of your listeners for free. If you'd like, I'll give you the URL so they can go in the back door and register for this program for free. Would you like that? That would be great. Okay. It's a TVI for the visibility is to tbi.education forward slash best hyphen R O.
[00:16:00] T V i.education forward slash best hyphen ROI. And then there's a little icon on there that says, uh, or a button rather it says, get my credentials, do that. And you'll have access within 24 hours. It's simply videos of me managing my client's Google business profiles and teaching you how to do it. It's the same.
[00:16:22] Very good. And I, I do know that, um, you you've done this on the podcast before and you know, it's, there's no pitching, it's just, here's some training videos go and learn or, you know, hire somebody, but it's simple to set up, uh, once they get the, the profile set up, what do you think the first thing they should do?
[00:16:43] Well, first of all, I think we should stress because if nobody, if everybody hasn't tuned in at the very beginning, Do not put a phony address in you. Won't get registered. You have to have the address. And the address does not have to be visible. There's a check box there and you just don't have to, you don't have to show it, but you have to provide.
[00:17:05] Yeah. So I think what it says, you put your address in, it says, do you have a place where people can come, uh, to do business or do you do it outside? And you have to click the outside. You know, we, we go to you or we deliver the products, that sort of thing. And then you're there. Then you're. Your your residence or whatever address you sh you're utilizing does not show.
[00:17:29] And, and, and also this is important to note, uh, if that's the case, then you also are not visible on Google maps, which is, which is fine because we only want to use the Google business panel anyway. Right. Okay. So going back to the question after that, you, you get your business name set up and your address and all that other stuff.
[00:17:53] Where would you focus if you're an easy tailor or if you're on Amazon or Shopify, um, how do you set or what would you set up for? Uh, when you're, when you're in there, there's a, there's a really cool dashboard has got lots of buttons. Don't be intimidated by it. Every one of them is simple and easy to operate.
[00:18:12] Uh, gosh, if I can run 280 clients around the world, uh, anybody can run. Promise. Uh, but anyway, go to click the button that says products and then start listing your products. Start putting your products up there. Put good descriptions. Good SEO descriptions. If you don't don't have SEO descriptions of your product, utilize a Jarvis or some other AI to write a.
[00:18:38] Uh, a highly effective, uh, product description that that will, uh, uh, optimize start putting all of your products on there. And once you have your products up there, then there's a thing called a Google post, and you can start making regular Google posts that increase the relevance of your. Of your products.
[00:19:01] So, uh, for example, uh, you know, norm you, you've got your lunch with norm, so we have to talk on those regular Google posts about your lunch with norm, uh, episodes. And we link to Google to it. We linked the, uh, uh, YouTube to it. And all we're doing is talking about the lunch with norm podcasts and it gets a tremendous amount of visibility.
[00:19:23] So there's, that's put your products on there first. That's all I'm saying. Right. And again, it's the content that you can put on. I can't stress enough. As long as you use the anchor URL, wherever you're driving it to. So if you're driving it back to your Amazon product page or your store, just have that there, it will rank every post will rank anything that you put up there and including.
[00:19:52] Like for me, I'll go. And I'll, I'll, I'll do a presentation. I might go on a, um, somebody else. I might be a guest on somebody else's podcast or a webinar, and I'll do a presentation. I take those slides and I upload them. And all of a sudden everything that was presented in those slides. On Google, uh, or sorry are ranked in my profile and Google instantly, by the way.
[00:20:18] So every piece of content that you do that you're writing for your, um, for your listing, if you've got a plus content and you can take that again, I'm talking to the Amazon crowd here. Um, if you've got product descriptions or, you know, something that you could put into a Google sheet. Okay. So we're talking about all of everything.
[00:20:37] So that car dealership. Craig was talking about, they changed their prices on a Google spreadsheet every week. I think that's what you were telling me. Yeah. So, uh, yeah, so they utilize one of the Google tools. We all probably know what it is. It's called Google drive. And in that Google drive, there are a Google documents, Google forums, Google slides, a lot of, a lot of things that you could do, but on the Google docs, you can actually make webpages that are priceless or, you know, tech centered of course, uh, and, and utilize those pages on your website.
[00:21:13] So. What happens is that technicians are the girls in the office can make price changes on parts on services, or what have you, as they're linked on the website without having to do anything specific to the website, uh, it makes managing a business onto a website, uh, your business on a website. It makes managing it much easier.
[00:21:35] And. Everything that you do on a Google doc when it's attached to a website is indexed to search. That's just powerful. Right? So can I, I'm curious about like what they were doing in the dealership. Could you do that with a Shopify, like an e-commerce. Yes, you can. Uh, but even better. Uh, if you have a Shopify site, Google has just released a program where the Shopify feed goes right to the Google business panel.
[00:22:09] Uh, it just gets better. That's actually a pretty good deal. So once you're, once you Shopify panel is connected to the Google panel or your Shopify site, your products are automatically listed on Google, including your inventory, et cetera. Okay. I just want to, you know, ask the audience that if they have any questions, like Craig is the guy to talk to about Google my business.
[00:22:35] If you have an e-commerce business, or if you have a business at all and you want to get some extra juice, uh, you know, throw your hand up, let's get you up on the panel and be happy to answer your questions out. Of course, Roslyn is going to be coming up. Here's your.
[00:22:56] And we'd love to hear from anybody. So we'll keep this going. As long as the questions are coming in. am I un-muted? Uh, you are, how are you? Oh, I'm good. How are you? I'm looking forward to seeing you next week down here. I can't wait to get out of this fall weather. We can't wait to embrace you in Miami. So I have, what's probably a really rookie question.
[00:23:25] I'm just in my own vision, trying to assemble all these online and, and different websites into one kind of cohesive picture. So the. I guess the threshold question that I have for Craig is, so there there's Google my business. There's Facebook advertising. There's Tik TOK. There's my own. Hopefully soon to be completed.
[00:23:54] Website. How, how do you prioritize all of those and how many of them do you need? If you, if you have Google my business and how do they all intersect and do they need. Uh, well, yes, they absolutely need to intersect because if you have, well, first off, I believe personally, didn't most important aspect is setting up your Google, my business profile for sure.
[00:24:25] Because as soon as you set up your Google, my business profile, your content on your social media platforms can be configured to index. And that's really the key behind it. All, you know, Google business panels look, nice websites, look, nice products look nice, but unless you're being found by people searching, it's a waste of effort.
[00:24:46] So, uh, so I highly recommend the Google business panel first, and then whatever you RL is anchoring your Google business panel. Whether it's www I got something for sale, or what are your www, Amazon buy my product, whatever your URL is, you need to utilize that URL in your social media posts in order to make an index.
[00:25:09] And let me explain. So you put your media in first. You put your description or your post, whatever it is that you're writing. And then you put the URL in. If you put the URL in first, it inhibits your view possibilities on Facebook, because Facebook doesn't like external links, but if you put the media in first and then your content, and then put the URL a as a very last.
[00:25:35] Piece of it. It will index to search and Facebook and LinkedIn and Instagram. They won't penalize your visibility on those, uh, on those posts. Does that make sense? Yes. Cool. I hope I answered your question Roslyn. It's really easy to set up your Google profile takes you about five minutes. Okay. You did.
[00:25:57] Thanks. So very much. And Roz as for all that, you know, the hooking up and putting all your different social media platforms and, you know, you don't have to go on to every single social media platform. A if you're focusing on one or two, you know, that's, that's good enough. But like Craig said, make sure you just have that anchor URL in there.
[00:26:24] Okay. So you are very welcome prio. Welcome to the panel. Hey Norman. Hi Chris. Hello everyone in the room. Uh, I have, um, two quick questions. I have seen the charm of, um, you know, Google my business for, uh, for hospitality space and I have worked an optimized profiles, uh, Dell, uh, in the e-commerce space. I have.
[00:26:51] So when normal, you started the room saying that we were, we've always been under the impression that there has to be a brick and mortar, or there has to be physically address. Um, I, I do that. You could have your home address and kind of hide it, uh, from the public view, but, uh, for an e-commerce brand, how much sense would that make was, uh, was something that I was debating internally, but after.
[00:27:14] You know, listening to Craig for, for last, uh, 20, 30 minutes. I believe that it, it might make sense. Now, my question is that when you link your channel, Uh, so Google channel two to Shopify, or you activate the Google channel on your Shopify backend. It definitely pulls in all the product data and kind of updates the merchant center for you.
[00:27:36] So that that's the API that, that does the job for you. And I am currently running my shopping ads like that, but my question was. Successfully create a GMB profile for e-commerce business. Uh, what industry do we choose? Do we choose just the e-commerce or, uh, is there anything else that we need to put in for better search optimization?
[00:27:58] And second does the data by just activating the Google channel on Shopify, get automatically pulled up on GMB also, like it gets pulled up for shopping ads. Yes. She asked him yes. So the, the most important thing is that that I gathered from your question is, is the categories. So you can list more than one category.
[00:28:22] And I personally would probably list as many particular categories as I possibly could. Uh, so e-commerce, uh, retail. Uh, the cool thing is, is that once you set the panel up, you can go back and you can create custom categories. You don't have to utilize when you're first setting it up and you type in a category, it will only allow you to type in specific categories.
[00:28:47] But after it's set up, you can go back and you can put in a custom categories, you can type your own. You don't have to use Google, but, uh, yeah. Put, put 5, 6, 7, 8, 10 categories in there. I would. Okay. So, so the one that we put it put in initially, does that become the primary category or something like that?
[00:29:07] Is there a differentiated solution? And that, I think primarily when we first start, we always use the retail retail shop retail. Okay. Okay. Got it. Yep. Thank you very much. Okay. So you know what Craig, um, I think this is a. Place to stop. Uh, we've talked about sort of the let's get set up, let's set up your profile and we should get you back on into the room.
[00:29:37] Uh, you know, maybe later on next month or the month after, and let's talk about intermediate or more advanced, uh, marketing techniques using Google my business. How's that, that would be, that would be awesome. And I'd look forward to helping your followers out norm. All right. Fantastic. So if you like what you heard, you want to get in touch with Craig or follow up with Craig, just click follow him.
[00:30:01] If you want to hear more information about what he's talking about, make sure you ring the bell. Um, if. If you, uh, want to get more information about entrepreneurs, make sure you go up and hit startup.club up in the top left corner and make sure you click the little green house. So my name's norm Ferrari.
[00:30:21] I have a podcast called lunch with norm every Monday, Wednesday, and Friday. Um, just love having a community showing up every Thursday. Listening to me talk next to next week. We've got another great room here that we've got another great speaker here and, uh, I'm going to close the room and we'll see you next week.
[00:30:41] Thanks for tuning in.
Google My Business | Ecom Weekly
October 28, 2021
using Video | Ecom Weekly
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[00:00:15] We've got a great topic today. We're going to be talking with. Burns a about video, how to build your brand, uh, not only on Amazon, but right across e-com, there's so many ways that you can really build that brand up and, uh, take advantage of it, especially for fourth quarter.
[00:00:33] But, um, before I get to that, I just wanted to introduce me. Uh, my name's norm Ferrara and I have a podcast called lunch with norm, uh, the Amazon FBA and e-comm podcast airs every Monday, Wednesday, and Friday. Um, again, today's topic is going to be, uh, really about how X, how to accelerate your video, how to accelerate your sales using video, the room will be recorded.
[00:00:57] And if you have any questions, uh, please raise your hand and you'll be welcome to the stage. If you don't want to record a be recorded, please don't raise your hand. Um, let's see. I just see somebody raising their hand. One second. I'm just going to make somebody a moderator. Rachel, I just made you a moderator.
[00:01:21] Okay. Um, as for today, the speaker is going to be Rob burns. He's been on the, in the room before he's going to provide some really excellent information. And if you like what you hear today, make sure you follow the panelists and the speakers. And if you want to get. More really great entrepreneurial information.
[00:01:44] Make sure that you go up, click the green house beside start-up clubs and you'll get some notifications as he, my buddy, Mr. Colin, Campbell's on. Yeah, norm. And I just wanted to come on and introduce you because everybody here in the audience, if you haven't seen norm speak before, he's, he's incredible. His knowledge is incredible.
[00:02:04] Uh, we run multiple e-commerce companies and he. One of the individuals that we rely on to help us succeed. We run the Ellingtons and we run potluck calm. He runs a great podcast. I'm looking forward to hearing this some recording, cause I have to jump over to another meeting norm, kick it off. Thanks, Colin.
[00:02:26] And um, you know, you can give me back that $20 anytime. Um, all right, so let's get started. Rob burns. Is it an incredible entrepreneur? Uh, he has been in, I don't even know how long he's been, but he's worked with all the greats in the e-com industry. Anyways. Uh, Rob, where are you, sir? Just push that little microphone.
[00:02:57] I think he just trying to mind my fingers were super gold, so I couldn't, uh, the button wasn't working. So, Hey, Rob your volumes down just a bit. I'm not sure if you can increase it or if the mic can be placed a little closer, but anyways, maybe it's just my phone, but Hey, why don't you introduce yourself and what you do?
[00:03:20] Sure, sure. How's how's that now? Perfect. Cool. Cool. Yeah. So, um, I own a company called, uh, video telepathy and, um, and we actually kind of, uh, uh, just recently we kind of split into dependent into two different two different parts. And the first part is we do, um, I I'd say about 90% of our business are just specifically e-com.
[00:03:43] Um, and Amazon. Product videos and marketing videos and ads, and, and really just kind of hyper-focusing on that mark on that niche. And then the other half, we're actually doing stuff where we're working with, um, larger brands and we're, and we're doing more kind of, uh, uh, short documentary style videos.
[00:04:04] And, um, and, and mainly what we're doing is we're attaching, um, people that are doing good stuff, uh, that really matched that demographic for that brand. And, and we're doing a video series for them. And then, and then, and then it kind of attaches to the brand and that's, you know, and it's really more of a brand building than a sales video, you know, on, on, on the other side, we're really focusing on sales and conversions.
[00:04:31] And then the other is really more brands where it's like, you know, any anybody that's 30 years and younger, you'll usually. You know, they, they investigate their corporation and they say, well, Hey, you know, w you know, or do these people stand for the same things I stand for? And so this is, you know, pretty much becoming kind of mandatory, um, where, where we do that, where we kind of make that, that, that demographic match, where, you know, say maybe it's a cosmetics company.
[00:04:57] So we do a series of, of little stories about. Uh, girls and body image or, you know, things like that. And so then that kind of makes that connection. And then, and then there's kind of stuff in the middle where, you know, we will take a sales video, but then we, you know, we, we still kind of put that ethos and that branding and inside of the sales video.
[00:05:15] So that's a, uh, Uh, a long explanation for probably something could have been a lot shorter. So, so, uh, one of the things that I don't usually do this, but we've got a great crowd listening right now. And if you've got a team, a marketing team or anybody, who's a VA, this is probably the room that they should be listening to.
[00:05:40] So you might want to invite them in because we're going to get into different types of videos. What type of videos are going to be. Retails, especially during fourth quarter. So there's just a bunch of information. And so if you want them to learn about this, this is the time this is the room that they should be listening to.
[00:05:59] So Rob right off the bat, let's talk about using video right now. Well, I mean, especially, and so, so this grip is also a very, very e-comm centric, right? It's not just Amazon. Um, Yeah. Probably more e-commerce than Amazon. Yeah. Yeah. Well, especially that, um, um, I think Google, eh, uh, you know, they'll, they'll issue these different marketing reports and, and, and differences statistics, and they say most people now, and I'm not sure the exact number, but most people will watch a video before they purchase a product.
[00:06:39] So literally anybody that's actually selling. Or anybody that has a client that needs to know information, um, you know, uh, if you need to somehow build, you know, lower that trust barrier so that people kinda know who you're about and what your products are about, then videos are probably a good option for you.
[00:07:07] Sorry. It was my fingers that time. Uh, I heard a stat and this comes off of thomason.com and they were talking about images compared to video. And there was a 480% increase in engagement using video over an image. Yeah. And that's the thing too is, is we're all, we're all a little bit different. You know, some people are visual, some people are auditory, eh, you know, some people just like to read.
[00:07:38] And so, um, and, and a lot of times too, that's why, you know, you'll see a lot of the old school direct response sales copy, and it's, it's, you know, it's, you know, a million words it's because people, you know, the, the people that, that like to just to read and investigate, they'll just kind of keep going down that rabbit hole and the longer that they're, you know, the reading that stuff.
[00:07:58] And so, um, but with images, yeah. Uh, you know, if, uh, if. You know, a picture says a thousand words and a video says the millions. So, um, and, and a video is good because, you know, if, especially if you, you know, you put the captions in there, so then you're actually capturing all of those, all of those, you know, three different kinds of demographics where, you know, you have the visual, they can listen to it.
[00:08:22] And then, you know, also, you know, the captions will draw people in, you know, so if there are, they want to investigate, you know, just by reading, then they can do that too. So catches a ride. When I, when I think I've become videos, I'm thinking of product videos. So first of all, uh, product videos, how long should they typically, how long would the average product video?
[00:08:44] V yeah, it's really, it's really gone down. So if you're talking about a product video, just where they're wanting to know more info about the product, um, you know, and not like, you know, something like a VSL or, you know, something like that. Um, I would say. Six years ago, a five to eight minute product video was, was doing great.
[00:09:09] Um, now I would say 45 seconds to a minute, a minute and a half, uh, are really the sweet spots as far as video is converting. And it's just, um, one is, I think there's more videos, so there's more competition and. To people's attention spans are just, they just keep decreasing and getting shorter and shorter.
[00:09:33] So your attention span of Goldfinch. Yeah. Yeah. That's stuff that, yeah. Well, was it, uh, uh, the tip span of a goldfish has nine and the average human's attention span is like eight seconds now. Crazy. But now you have your own studio, but this is just in general. This is a podcast. So I don't want anybody thinking that this is, you know, just targeting Rob Robinson, the business.
[00:09:59] When you, when somebody wants to send you a product to do a product video, first of all, what type of information should they give? Yeah. So we're, you know, um, depending on the, kind of the V kind of video, um, we really look at it because even though, you know, even though there may not even be any talking in the video, um, everything's a story.
[00:10:25] And so you want to figure out, like, how do you tell that? How do you tell that product story? And, um, so. We wanna know, you know, who's watching it, and this is for people that are, if you're just, you know, you want to create your own stuff, um, you know, you really, really want to understand like who, who are the people that you're going after and, and you know, what are their interests and, you know, what's their culture like, and what's their lifestyle like, and what's their age group.
[00:10:50] And, you know, all, all of the stuff that you would use to create, you know, a customer avatar and, you know, Anybody that's anybody that's selling, anything really needs to do that. Like they need to figure out exactly who is that ideal customer, you know, how old are they? What are their hobbies and, and all that good kind of stuff.
[00:11:07] So, so that's super important. Um, You know, and then, you know, as far as your product, you really want to, you want to talk about the benefits, not the features and it, this is something that most people, um, when you first start marketing or they first start doing video stuff is, you know, they're, they're so enamored with their own personal journey.
[00:11:32] And all of the features and all the technical stuff and all the things they went through to get that product created. Um, and the reality is nobody cares. Like absolutely nobody cares. People, people care about. Uh, you know, is, is this a good match for me? You know, how is this going to make me look better?
[00:11:51] It's going to make me stronger or faster or smarter or whatever. And, and that's really what you need to focus on. So you need to focus on being, you know, very benefit centric. Um, and then, you know, maybe a little bit of your features, you know, if there's something that's, you know, kind of uniquely, you know, that's technical about it, like, um, Like I did.
[00:12:13] I just bought a, a solar generator cause we do a lot of remote shots and stuff like that. And basically it's just like a big, giant electrical battery instead of having a LAR large noisy generator. And, and for us, because we just had a lot of gear, like we needed a certain number of different plugs in different ways that we can charge it.
[00:12:31] And so that, you know, is a feature that's really more of a benefit, you know, because for us, we're looking for something very specific. So if it's some kind of a technical thing, then, you know, you maybe want to. At a couple of features, if they're unique, but in general, you really want to focus on the benefits and how it's going to make somebody's life better.
[00:12:52] And, you know, so for a 45 second to a minute and a half video, four to five benefits at the time. And, and then, and then when you focus on those benefits, you know, look at each one of those benefits is almost like a little mini sub section of your video, because then you can break those out and maybe slice them up into micro ads.
[00:13:13] And then you can find out which benefits people are purchasing from. Um, and, and that way, you know, the next time you create a video, then you can focus more on that benefit a benefit. Then the other benefit that you thought, so you thought, well, oh, well, It makes me grow taller. That's what everybody, that's the reason why people are going to buy, you know, and instead it was like, oh, you know, it makes it, it makes my hair shiny.
[00:13:32] That's why people bought your product or whatever. So I don't know if there's a product that actually makes you go to all have shiny hair, but if there isn't. But, uh, anyways, yeah. What you were talking about? Uh, what I like about it too. I really wanted to do it themselves. I don't really recommend it, but if you want to do it yourself, you could get a table rotating table, put your product on it and decide if you're an Amazon seller.
[00:14:00] Anyway, Shopify, you have the. But it's more common in Amazon that you have five bullet points and your bullet points for the most part should start just exactly like you said, benefit leading in per feature. And all you're doing is highlighting. Those benefits as the video's going the very short video, it doesn't have to be fancy.
[00:14:21] But the other thing I'd like to add to that, if there's an opportunity to show somebody, um, using the product or a lifestyle, you know, just, just showing your demographic, I'm not going to show a catalog. When you're selling bullies dogs, you know, but, uh, that's one thing that at least on the Amazon side, I've seen convert a lot more when you have lifestyle and the benefits.
[00:14:46] Are there any other things that we should consider? Yeah, I mean, th that's actually a great point and maybe you can expand on that. We can expand on it a little more is, um, I would say on, on a, on an Amazon video, especially because we don't, um, because they're, they're super anti direct response and anti hype-y or salesy.
[00:15:07] So a lot of our, uh, the stuff we do on the Amazon site is really, um, focus more on demoing the product and not having a lot of talking. And so, um, and it turns out. Those actually convert a lot better because what we focus on is actually putting the product in the user's minds eye. Because if, if you think about the, you know, the average Amazon buyer, they're, they're kind of surfing around and looking at these products and they might have four or five of that, the same products.
[00:15:36] Pulled up. So if there's one that has a video and it's basically kind of doing the thing that, that, that person is, is looking to do, or, you know, for, for a product, then they're like, oh yeah, I can, you know, I can see myself, you know, riding his mountain bike, you know, you know, offer you these, you know, of the top of these, the Sierra Madres or whatever, you know, kind of thing.
[00:15:59] And so, you know, then, then they're imagining using that product. And so then they've, they've already. You know, made that connection and, and decision. So, so that, that would be, I would say a huge, huge focus is really focus on, on shooting the video in a way so that people imagine themselves, you know, being the PR person in the video and using the.
[00:16:25] One other, and this could be a whole other podcast is copied, you know, just, how do you write copy for a video? How do you get engaged? But, um, would you recommend that at least at the beginning, and you're trying to save money, would you still go to Fiverr or Upwork or wherever? Um, or can you take a stab at it yourself?
[00:16:52] As far as. Yeah. For, for the video short video. Yeah. Yeah. So, um, you know, for the, for, for demo stuff, really, you know, just focus on the benefits and then, and then, you know, try to visually show those benefits. Um, as far as being a copywriter, that's really, you know, every everybody's so different. Um, You know, I, I think there's basic fundamentals, um, in copywriting and, and, um, you know, kind of the things like we were talking about, like, don't, you know, don't focus on, um, uh, features, you know, focus is more on benefits and, and, and really, you know, kind of, you know, you know, building it into, you know, maybe a three-part art or something like that.
[00:17:40] So, um, I, I, I would say. I would say, yeah, you know, maybe half the people could, could take a stab at it. And the other half, you know, they're just not, they're probably not inclined in it, but it might be better to have a copywriter do something like that too. So one of the things I'm, I'm curious to hear what your answer is going to be on this social media platforms.
[00:18:02] What social media platforms are converting the best on video? Is there one specifically. Yeah. Well, I mean, yes and no. So, uh, I think, you know, every social media platform is so specific and that, um, depending on your product, you know, you may or may not fit in that niche. So, um, Yeah. If you want to be an influencer, um, you know, tech talks great tic-tacs is blowing up.
[00:18:31] And, and when I first saw tick-tock, I'm like, well, this is it's cool. It's interesting. But I can't see how we can do this as a marketing tool, but there's tons of people. I mean, you know, foodie people doing recipes and then, you know, using our products and the recipes and things like that. And, and so, um, or say, or, or if you're a crafty person, so tick talks good.
[00:18:49] You know, if you're doing some kind of a craft thing, but honestly, Pinterest. Like a lot of people don't use Pinterest videos and, and Pinterest is huge on people. Like, do it yourself, craft people, things like that. Um, you know, if it's something, you know, maybe it's a fitness product. Um, Know, also like YouTube pre-stripped videos where, you know, you could, you could target, you know, you could maybe have a supplement and you can target other people's fitness channels.
[00:19:18] That, that may be those potential users that, um, are, you know, are there, you know, that, that are, that would use that particular product? So I think, um, I mean, I guess the short answer is. Is is yes. I mean, social media is awesome. And I think, but you should really look and understand what that, you know, what that channel is about.
[00:19:41] Um, before, you know, before you really start, you know, putting, you know, putting your, your, your time and money running ads or pushing. Okay. So just before I get to the question, I just want to reset the room. We're talking about building or using video to build your brand, especially in the fourth quarter.
[00:20:00] Um, we are going to be talking about a couple of other video types that you might not have considered. Uh, if you like what you're hearing today, like the information, please follow the speakers. Just follow them. If you want to get notified, ring the bell. And if you want to get really great entrepreneur, And you should make sure you follow.
[00:20:20] Start-up just go up to the top, click the green button. And the last thing I have to say is if you do like to, uh, if you want to come up and talk on the panel, um, raise your hand, you will be recorded if you don't want to be recorded, don't raise your hand. Okay. Tony. I know Tony, how are you, Tony? What's your question.
[00:20:42] Hey, Norman, how are you today? Um, just a great, uh, you know, conversation you're having. And, um, my question is, um, I love video. And, but I realized to do a good job. It can really be time consuming. You know, my personal assistant started off as a video editor and that's what he still is good at. But if I get him to do that, it'll just take up so much of his time.
[00:21:08] And my question was, do you have any tips that sort of speed up the process? Um, um, so we can get more done. Thank you. Yeah. Yeah. That's for me.
[00:21:23] You know, one is, I guess, the equipment. So, you know, the more you invest on just faster video editing equipment, um, that works, um, depending on the software. 'cause we shoot like super high, like we're shooting in 6k, but if we were to add it in six K I mean it, to get it done in the time that we needed to do it, we need like a supercomputer.
[00:21:46] This is like processing is like crazy fast. So what we do is we work in something called proxy mode and that helps quite a bit. And basically what proxy mode is, is it, um, depending on the software, whether it's, you know, premier to Vinci or, or final cut or whatever, you, you know, Sony Vegas for whatever, um, Uh, a lot of them have something called proxy mode.
[00:22:07] And what that does is it basically gives you, um, a visual, visual representation of, of the work. Um, But, but it's using low Rez files. And then once you finally, you know, you'll finish the edit then and render the video, then, then it'll take all of that, that work you did, and I'll render it into, you know, your, your high resolution file.
[00:22:28] So that way, you know, you're, you're not working with 6k files, you know, which would be like in terabytes, you know, we're working in and, you know, um, 10 80 files, you know, That you know, or maybe, you know, 35 gig or something like that. So, um, that's how we do it, but, you know, we've, we've got kind of a Beastie Beasley set up.
[00:22:49] So, um, I would say probably for, you know, the average user, that would probably be the fastest thing to do if you're not already doing something like.
[00:23:00] And, you know, I had a followup question. Um, usually, um, like certain platforms like Instagram or tick Docker in the vertical and, um, YouTube in the horizontal. So. Which is the best way to film it. Should I film it with my camera or my phone? Like horizontal and then just kind of put it on, um, edit it for, um, um, the, the vertical platforms, because right now I find it too much, then I, otherwise I have to do like two sets of videos.
[00:23:32] So are you talking about like you're shooting with a camera or a phone with a phone? Yeah. Um, I, I generally shoot. Um, I read it. We don't do a lot of phone stuff, but, um, when we do, like, I would say horizontal, just because, you know, then you can kind of use the rule of thirds so you could shoot it so that.
[00:23:57] You know, whatever the subject is, is, you know, in, in a third, you know, to the side, um, which horizontally it's still visually compelling, but then also, because when you slice it and you want it to make a vertical, then you can kind of center that and, and have it. So it looks, it looks, it fits a little bit better.
[00:24:15] Um, I mean, everybody kind of does that different, honestly. I see a lot of times, um, And we've had clients say this too, where, um, they've run something like, like they ran, um, uh, something that was supposed to be horizontal. And then he ran it on a vertical format. So like say, um, uh, Facebook stories or something like that.
[00:24:40] And it actually performed better. Um, Like I, I remember. Yeah. Cause they were running like a, like a square Instagram image and then they put it on Facebook and you know, so it looks a little bit different, but it fit the phone. It actually fits the phone a little bit better. And just because it looked a little bit different, it looked a little bit odd.
[00:25:01] It actually, people watched it more and it converted better. So a lot of times too, I would not even be as concerned about that. Um, really fitting that, that foreign factor, um, perfectly because sometimes just the fact that it looks odd will, will actually help increase conversions and viewerships.
[00:25:25] How's that going to help you out? Yeah. Thank you so much. I really appreciate it. One of the other things that, uh, I really liked when you you've done some work with, with us before, and I've seen some other types of videos that you've shopped for people. What I loved about. Is it solves a pain point.
[00:25:46] Usually people see lifestyle which using the product and the product, it gives the actual product authority. So authority equals trust equals sales. And what I'm talking about is at the, um, the market review videos that you do, they blow me away. So I think some of your, like the higher end brands that you're representing and what they've been able to achieve.
[00:26:10] And what it is like, I mean, I'm going to let you explain, but basically it's just getting the person on camera, answering four or five questions, getting their real reaction, and then using that to, to show, you know, either solving a pain point, um, benefits, uh, whatever it is. What are your thoughts on that?
[00:26:30] Robert? What can you say about that? Yeah. Yeah. It's so I think I was hoping I would avoid. Jumping into my weird nerdy brain science stuff that bores everybody to death. But. Hmm, the way we think really is it's still, it's still kind of tribal, like, like our brains, the way, you know, at function they function are, you know, we're looking for, you know, you kind of imagined sitting around the campfire, you know, and I was like, oh, this Mastodon was chasing me.
[00:27:03] And like, and, and because people tell these stories, it's like, so don't go into that valley or whatever, you know, the saber tooth tiger is there. And, and, and that's how we really got our information. That was our. Or, or CNN, you know, back in the day. And so our brains are really kind of tuned up to that, you know, to, to listen, you know, to listen to this, you know, the advice and the experiences of other people, so that, you know, you can judge your, you know, your next move, you know, on, on, on what happened to somebody else.
[00:27:33] And so that's really where, where the market review video works, why it works so well. That we, and we used to get a lot of people and we still do where they're like, Hey, can you just hire an actor and then film these testimonials? Um, because you know, we're a new company or we just never bothered getting testimonials.
[00:27:56] And can you just, we'll just use actors and they'll do the testimonials and. Yeah, it will be great. And we're just like, no, wait, we won't do that. And, and one is, it's just unethical because they're not real people. And two is it, it just doesn't work because people just, they, they just know, like they absolutely know this is an actor.
[00:28:17] And like, and it actually probably hurts your brand more. And so that's how we kind of really came up with the idea for the market review. Video is like, well, we'll just take the product and. We'll just go out in the street and then so like say it's a coffee product, so we'll maybe we'll set up. So a farmer's market.
[00:28:36] And then, um, people, you know, people would go by and he was like, Hey, do you want to try this copy? And we'll have like five or six benefit based questions or maybe a pain point question that is solved and we'll ask those questions. And then, you know, as we're filming it, You know, they'll, you know, we'll ask them the questions and it'll answer, and then they usually answer it more like a statement.
[00:28:58] And so that's what we show in the video. So, uh, an example would be, um, organic coffee. So we had a company that has organic coffee and, and traditionally organic coffee, I guess, is, um, thought to be a little bit weaker than, you know, some of the, you know, the, the industrial, commercially grown coffees and, uh, as far as taste and.
[00:29:17] The, you know, these guys kind of saw that problem. Um, and, and also it was, it's not super acidic. So, uh, you know, it was a harder on her stomach. And so those are the, those are the things that, you know, and also what it lets you do is, is other people can brag about stuff that you can't. So if you're like, Hey, we're the best, you know, people like, yeah, sure.
[00:29:38] Of course. You're going to say that. Um, but if somebody else says, Hey, you're the best? Or like, oh, well these people tried it and he said, And so, so anyways, so, you know, going back to that, Coffee analogy then B you know, because people thought that, you know, people generally think that organic coffee is weaker than, than regular coffee.
[00:29:59] So they wanted to solve that problem and they also wanted to make it a benefit. So then they would ask this question and then, and so we would say something like, Hey, so, you know, normally, you know, so this is organic coffee and normally, you know, it's kind of acidic and also, you know, people think it's weaker.
[00:30:14] So how do you think this compares. And, you know, people like, oh, wow, this is, you know, for organic coffee. This is, you know, this is, it's really robust. It's got a lot of flavor and it's, you know, it's almost kind of sweet and, and, um, yeah, and it's, it's great on my stomach. Like I don't get that, you know, that acid feeling and.
[00:30:30] And, and those are real people that are giving real testimonials, actually talking about your product. And they're saying things, you know, that you want to say about your product, but you can't really say because you know, it, it comes off as disingenuous. And so, so they just convert like crazy. And then what you can do is you have, you know, those pain points and those five or six benefit points.
[00:30:51] And so you ask these questions and you ask these different people. So now. Whenever you can do is you and each one of those answers is probably, you know, maybe a 15 second segment. We try to keep things in 15, second blocks before we transitioned, because that's kind of keeping around that general attention span area.
[00:31:08] And so now you can take those 15 second videos. You can slice them up and you can make micro ads. So, so now you can run five or six. Based micro ads and you can find out like, what, you know, what are people responding to? You know, is it because of the low acid? Is it because, you know, it's, it's an organic coffee, so it's healthy.
[00:31:28] Is it because, um, you know, it's, it's, you know, it's super robust. And then, and then the next time you do a video series or, you know, you, you write copy about your product then, um, Now you're able to focus more on that because that's what you understand. People are really interested in. It is. I mean, it's so cool.
[00:31:53] Um, again, I, I don't have affiliates. I it's no pitch, but if you want to see a couple that Rob has done, uh, go to video telepathy, uh, dot com and he has a section there and you can see what I'm talking about and why I love it. You know, you can build that authority. That's so important, especially. If you're a micro brand, you know, people don't know us, they have to trust us.
[00:32:17] And if they're seeing you for the first time, they've got to get that feel good. And if they see other people in their demographic liking the product or solving a pain point, then they're going to have that. And especially this is a whole other podcast or a room, but, you know, building that content that is also going along with it.
[00:32:38] The other type of video or the other types of videos or rich media that is important, uh, that, that, uh, I've seen Rob put together too. So it would be kind of the product. The market review, and then he would take images and just turn them into either cinema graphs or plot or graph. And if you don't, if you've never heard of that, you've seen them.
[00:33:05] It's a S it's a, it's an image that has just one part of the image. Very simple to do. There's all sorts of software out there that can do it, but it grabs people people's attention. And that's what we're trying to do, especially if you're on Facebook and you've got all this stuff going and then there's that cinema graph or plot a graph.
[00:33:26] And it's just showing me. You know, a kettle pouring coffee. I've seen that from Rob, you know, um, I know I, I've seen a lot. That's done with snow, you know, cinema graphs and a lot of graphs. It's really, really cool. And fairly inexpensive. If you have to job. But then you take all of that and you break it up into repurposed content.
[00:33:54] And I know like Tony, I think Tony. Yeah. Tony still here, you know his question about editing. You do this, Rob, you have a square for. A, um, a vertical and a horizontal, and it's basically the same video or, you know, micro ad or whatever you're doing. And it allows you to go on these different platforms, use the information and not at the same time, but you break it up over a period of.
[00:34:23] You know, it could be rotating over three week period a month, but you've got all that content and that's, you know, getting that into a calendar is so important. And I'm talking about hundreds and hundreds of pieces that you can do if you, if you do this right. If you have an editor that can go in, change the font, change the text.
[00:34:45] Um, and especially with the, with the cinema graphs and Plata graphs, you have anything to add to that? Yeah. I mean, I think that's, it is, is this, it's almost like an infinite amount of content you can create. I think, uh, um, does a Gary V habit thing on is at a site where it's like, you can take, uh, uh, you know, one piece of content and, you know, converted into this.
[00:35:11] 67 pieces or something like that, you know? Or like you shows how to do it, or it's like some crazy number of things, you know? And that's just like from one little clip and so. Yeah. And, and it's the thing is, is you always want to look at your social platform farms and, and, you know, w w you know, what's the culture and what's the demographic of, of each platform and then take those clips.
[00:35:34] And, and cause the one thing I think is a mistake, a lot of people do is that maybe they'll get some kind of robo software or like, they'll take this clip and then it goes, oh, it automatically slices up. But you know, it sends it to every social media platform there is, but. You know, each, each, each social media platform, you know, speaks a different language and they, they speak to different people and then they have different viewpoints.
[00:36:00] And so you really, I honestly think, you know, you need, you can take that one piece of content and slice it up into a million things, but you still need to think of, you know, who, you know, when you send it out because. You know, then you're thinking about branding and not just, you know, not just sales or, or, or whatever, because you, you know, you want to try to keep your brand consistent and, and that's, you know, a lot of people do get confused.
[00:36:23] You know, what's the difference between branding and what's the difference between sales and, you know, what's the difference between marketing cause you know, they all three crossover, but they're all three, you know, they all three have different purposes, different reasons why you would want to do it.
[00:36:37] Okay, Rob, I think, unless there's any questions, I think that's it for today. I hope everybody enjoyed the information. If you like, what you heard, please follow panelists. Um, Rob, thank you for coming on. How do people get ahold of you? Hey, thanks for having me on. Um, yeah, so you can just go to video celebrity.com.
[00:36:57] Um, and uh, if you have like a specific question, uh, Yeah, for me, you can just send an email to Rob at video telepathy, vid E O T E L E P a T H Y. We not easy name for an email. And, um, yeah. And I'm glad to answer any questions at all. And also too, like if you want, you can go to the site and you can actually schedule a time to chat.
[00:37:23] Like if you're interested in stuff and like we don't ever try to pitch anybody. All we do every day is just answer questions, you know? So, um, you can do that too. Great. So next week, Thursday one o'clock uh, we've got another really interesting topic. Google my business. If you're not using it, if you don't think you can use it for a brand.
[00:37:45] This is something you've got to listen to this. We've seen some crazy results. Being able to search engine, optimize our product, our content, our social media posts, everything that we post on the internet getting ranked. And we'll show you some of the tips and secrets on how to do that. Not really secrets, but people just don't realize that it's available.
[00:38:07] So we're going to have. Uh, another really incredible person, Craig Darlene, come on from Darlene digital. He's been handling some of my Google, my business accounts and he's done some really great work. So tune in next Thursday on that. And thanks for joining us today. Uh, we've got a great community. Um, love seeing some of these familiar faces and, uh, come back next Thursday.
[00:38:30] If you like, what. Please R w what you hear, please follow us. And don't forget startup club for more entrepreneur entrepreneurial information. Make sure you click that greenhouse. All right, until next Thursday, we'll see you later.
Using Video | Ecom Weekly
October 21, 2021
Why People Are Leaving Amazon | Ecom Weekly
[00:00:00]
[00:00:15] Well, I just want to do a quick intro. Uh, first of all, my name is norm Farrar. I am a host of AMZ or the, uh, lunch with norm AMZ FBA and e-commerce podcast every Monday, Wednesday, and Friday, except for today was that Thursday.
[00:00:30] Um, just wanted to let everybody know that, uh, this is a no pitch podcast. We just want to give you content. Um, the. The room is being recorded. So if you want to come up, we love engagement. So if you want to come up, ask a question by all means do so. But what we ask is that you don't, uh, pitch a course or whatever, and that if.
[00:00:57] Uh, willing to be recorded, just don't raise your hand, but this is going to be a really cool, uh, Brian came up to me and he talked to me about, you know, this potential topic that we'll be talking about today. And I went, whoa, this is kind of cool. So, you know, we'll get started in a second. The only other thing I want to say.
[00:01:15] Just a bit more housekeeping. If you like what you're hearing today from the panel, please remember to follow, uh, and hit the bell. So you'll get notifications. And also, um, startup club is a club abode entrepreneurs for entrepreneurs. If you like, what you hear, if you want to hear more information, click the green house and make sure you subscribe so you can get notifications.
[00:01:40] Okay. So. But those of us who don't know you, can you give us a little bit of a background and letting us know. Yeah, of course, of course. Yeah. So my name is Brian Johnson. Uh, I tend to go by Brian R. Johnson. So I'm not confused with rockstars and people who have, uh, gotten a lot more notoriety in life. Um, my claim to fame is basically I've put in my 10,000 hours.
[00:02:05] Uh, I've been in e-commerce for about 14 years and in the last seven years, just in the Amazon space, I have. Very fortunate to be able to help over 20,000 sellers sell over a billion dollars on Amazon. So I think I've, I've learned my lessons. I think I'm always learning, you know, I mean, there's always going to fall flat on my face sometimes, but.
[00:02:30] I mean, if it was 1,000,000,001, maybe I would trust you, but I don't know the lack of social proof. I know, you know, Hey, um, let's talk about this subject. So this is kind of curious, you got me hooked. Why are people bailing from him? What do you mean by. Well, I think it's more of a case of Amazon sellers, especially the, the well-established sellers.
[00:02:58] And I am also fortunate to, um, like yourself, be able to mingle in with some very high level sellers. Um, those who are on Amazon, off Amazon, uh, multichannel, uh, those who've, uh, operated at a much bigger scale, usually tend to 100 times what we're doing on. Ourselves. Um, and there is a, a very common trend, a very common conversation is going on right now.
[00:03:26] And that is, um, uh, essentially reducing the necessity of the Amazon sales channel as far as an income stream. In other words, it's not new news that people would say, oh, well, I'm going to sell also on Shopify, or I'm going to look at Walmart or something like that. But what they're talking about is, um, they're, they're not only talking about multi.
[00:03:47] Channels, as far as those platforms that sell, you know, target, uh, a, an Etsy, uh, Walmart, Amazon, any of these, uh, but also going out of course, selling direct to consumer through Shopify, through woo commerce, through, you know, any kind of a shopping cart platform. And then. You know, moving on to things as far as like, you know, Google shopping and Facebook shopping and any of these kinds of like, uh, social commerce kind of platforms and testing out seriously testing out like throwing like an obscene amount of money at advertising and testing to see which social platforms fit their target audience and fit their product line.
[00:04:30] Of course. So where, where the bigger money is being played. Essentially getting off of Amazon and making Amazon a minority sales channel relative to everything else they've got going on. All right. So probably nine out of 10 people that are listening right now just fell off their chair. They need a better chair, but you know, this, this is not like, oh my gosh, this is shocking news, whatever.
[00:04:57] Right. You know, the, the, the, the, the writing has been on anybody who's been playing in the Amazon space like you and I, and probably most people in this room, we've always known. It's like, look, if something goes wrong on Amazon, Where's my income coming from. Right. I mean, I think that we can probably all agree on that.
[00:05:16] I think it's just a case of not really knowing what is working, who's looking at what, um, my perspective is simply just because I keep on, you know, it's getting to the point where it's kind of getting shouted into my ear. You know, where I literally have people who will sit me down when I'm meeting with them and say, you know, it's like, what the hell are you doing Brian?
[00:05:35] And say, you could be doing 10 to a hundred times what you're doing on Amazon right now. If you just, you know, pull your, you know, insert whatever statement you want. Um, and actually I look at some of the other platforms that we're looking at, and it really has, I wouldn't say that it's new, but the level of.
[00:05:53] How aggressive they are being about it this year right now is that's that's blowing my mind. I know I've never seen all of a sudden there was a trend, you know, a few more. But I don't even think it was a year ago, but all of a sudden the word was starting to creep out that, okay. Amazon has a captivated audience.
[00:06:15] Amazon is the largest, uh, search search engine for product out there. You've got that captivated audience. Then I started to hear the trickle coming down. And one of the things I know that there is a brand on here. I'm not gonna mention any names. Um, they haven't given me the permission, but I know a brand that two years ago grew their company from basically zero to $10 million off M they weren't even on Amazon 10 million.
[00:06:45] In this there's a series of about four or five products from the last two years. They grew their product up to $50 million in sales and only 1 million, one point, I think it was 1.5 million is from Amazon sales. How did they get that? They went to retailers, they went to Wayfair, they went to all these different outlets and they started to get a piece of the action, Walmart, the Walmart marketplace.
[00:07:17] And it started to develop on top of their own e-commerce, which was kind of cool because they were able to trap drive traffic over from. Primarily Facebook at the time, um, over to their, uh, over to their e-commerce site, trap the information with simple popups to grab the, um, to grab their email address, but the pop-up was worth something.
[00:07:39] It wasn't like, oh, you know, download this free PDF. Uh, people got returned. So I just wanted to state that. I don't know if you have any other examples of that, or if you wanted to expand on what you were talking to. No. I mean, I, I think, you know, we, we've heard so much about how you know about the aggregator space, right?
[00:08:04] And the aggregator space know it gets our attention, but if we're not in a position to, to sell right now, then it's kind of a moot point. Right. So, okay. That's, that's interesting to know, but what what's in it for me. Right. And I think what, what ultimately that does is you kind of have to look ahead to where you want to be in two to five years.
[00:08:23] You also have to look at and see like, who is essentially pulling the marketplace. Uh, where is the money going? You know, I'm, I'm a big believer in the rule of follow the money. And I know certainly some of these, uh, you know, I was talking to a friend of mine and he was, he was sharing a story about one of the, his, uh, mastermind, uh, associate.
[00:08:47] And they had, they had just closed on their PR their product and they, they didn't have a fantastic product. They weren't particularly the, they weren't the best business people and savvy, you know, they, they just were consistent. Uh, they just kept at it and they kept building year over year and they didn't rely on one channel.
[00:09:07] They do have Walmart presence. They do have Shopify presence. They do have, you know, they're in a couple of different places. They're not everywhere. Like they want to be and they planned to be, but they just, like, in this example, they just exited their pro their brand for gosh, what was it? 30, 35 million or something like that.
[00:09:25] Yeah. Um, you know, it's, it's a big number, right? And, and sometimes we look at it as a, as a seller. I know my brands would not currently qualify for that kind of an exit. I, I certainly plan to get them there. The, but my brands wouldn't wouldn't qualify yet for that. Um, but at the same time is. They're showing, they're kind of showing that there's a friend of mine for many years ago.
[00:09:50] It says you got to show them your, your tail lights. In other words, you've got to start pulling ahead so far ahead of whether it is your competition or your students or whatever the case is that they. That they want to chase you. They want to go where you're going and that's kind of what these people are doing.
[00:10:06] And so by example, maybe, maybe not their intention, but we certainly want to, those of us who are plugged into the community and realize that this is the trend, this is the path that we can look at. Um, as far as being multichannel, um, not being reliant on any one channel and really. Committing some more time and effort to diversify.
[00:10:33] Now I know somebody out there is like, yeah, if I could just get my shipping container, uh, off the coast of California, that would be all fine and dandy Brian. But, um, cause I've got some there. The. We have to, we can't be so narrow minded that we're thinking it's like, what levers do I have to pull on Amazon?
[00:10:55] There's always going to be new lovers and more letters, levers, and better levers that you can pull on Amazon, um, in order to make things work better. But I know from personal experience where I had a false Amazon came in and their bots did a false positive saying that my, what am I bringing. Accounts was associated with a bad player.
[00:11:20] My account is currently banned. Yeah. And I'm currently in, um, I wouldn't say litigation, but we're going that direction in order to get the account live again, simply because their system screwed up. Like there's no possible way that it was correct. Or, you know, unless there was some kind of a hacker or their system did a false positive bias.
[00:11:42] But I still have to go the route of taking legal action in order to get it back. And it's, I've been working on this for the past couple of months now, you know, one of the things that happened to. Yeah. And I want to really be really clear about this. What we're talking about today is don't abandon Amazon, Amazon.
[00:12:04] No, no, no. Yeah. It was way too many shoppers on Amazon, Amazon check it out. Um, but there are other ways of making money. I see a bunch of really great Amazon sellers on here and I see, uh, like Hugh and Jim and Abe, if they want to chime in, you know, just do so. But. I've done. And what I've seen is I've been able to not only, um, take it from Amazon, go onto Walmart, develop well e-commerce sites and another way of doing it.
[00:12:35] So it's not impossible. You don't have to have a million dollars. It depends on really your, your price, your competitiveness, you know, are people looking for it? Is this a brand new, innovative product, all different types of marketing strategies go into that. But. One of the things that I've seen. And this is a friend of the, I think the room, um, I've talked to him on my podcast, Joe Martin influencers.
[00:12:59] He's not selling on Amazon. He doesn't sell a product. I don't think he sells a product, but he has box each term, a subscription based box that he concentrated on perceived value. Put it into a box box look incredibly beautiful. And he had mega to celebrity. Now you mean it takes money to do this, but mega to celebrity influencers promote the product, the Kardashians promoted his product.
[00:13:28] Sure. Ryan or Brian, you were talking about, you know, uh, you know, a few million, right. Tens of millions. He is sold for 500 million. Yeah. And it's not on. And beauty products.
[00:13:48] I mean, it's, it can, it can happen at all levels. Um, I, I think it's more of a case of the, the, the trouble that I usually have as somebody who's in the community who, who wants a lot of people to succeed. I've made a career of trying to help people do better than they did last week. Right. And. There there's such a wide range in the cellar level from those who just, who are about to get started with our first product, all the way up to those who have a hundred products and a hundred million dollars in sales, um, just on Amazon, um, you know, there's just a massive range.
[00:14:27] And a lot of times some of the confusion comes in and maybe this requires a little bit more discussion that is. When do you pull the trigger? When do you go after which one do you pick first? As far as diversifying, but ultimately it's the same kind of argument that you get in in real life? Is that, should I buy life insurance?
[00:14:44] Should I invest for my retirement? Should I get life insurance? Should I, um, you know, store money away, you know, any of these kinds of things that you would normally. Think about, you know, if your life works like, you know, I really should do that. And it's not until you get hit by that, that you have regrets that you didn't do that.
[00:15:08] Yeah, very good point. Now I know we've got, uh, uh, two Amazon sellers here with two marketers on here that I, I do want to get to. So, uh he'll how are ya? Hey, Dora, I'm doing what really well, I like this discussion because it's very relevant to what we've been doing for the past few. And exactly what Brian had said.
[00:15:29] I mean, it's really, there's just a wide range of different sellers out there. And I think that what is something that we all kind of run into. You know, what are we good at? Are we just good, just general business people? Or there are a lot of brands that have started, uh, because you know, they have a really good idea.
[00:15:46] They've built up a community and one of our brands is we sell fashion, jewelry and accessories. And that started kind of as a hobby a few years ago because my wife and my sister are both influencers or my wife was an influencer. My sister still is. Um, but you know, they had an audience, they understood the market and.
[00:16:07] They're not selling on Amazon, but they built off their entire business, uh, off of influencers, Pinterest, social commerce. And, um, we don't really have any plans on going on Amazon because there's a lot of things that you can't control. And there's a lot of em, there's a lot of, um, actually advantages, uh, for doing that.
[00:16:25] You mentioned boxy charms and, um, you know, one of the things that is really good in art in, you know, this. Direct to consumer business is we have the ability to hand package custom package and deliver the products so that people that are receiving it feel like they're receiving a gift every single time.
[00:16:45] Right. And that is just provided just an immense value to the brand and really allowed us to keep the prices as high as we do. So just kind of want to chime in there that, you know, there, there are definitely are so many opportunities outside of Amazon. You really have to kind of think. You know your strengths and kind of where you want to go.
[00:17:07] And I like what you're talking about, you know, the, um, the quality or the perceived value, keeping that up high as. Um, I do have one comment, uh, you know, about the Amazon and swaying away from Amazon. You want to make sure that you do know your audience and, you know, go in, do the research, do your competitive research.
[00:17:28] See if other people are selling either, you know, Walmart, Wayfair fair, uh, you know, in bricks and mortar. Um, you know, they're on their own e-commerce platform. See what they're doing, see how they're marketing. And then one of the things that I can highly recommend, it's an eight minute video. I have nothing to do with the company.
[00:17:50] All I know is the guy is incredibly smart, Rand Fishkin, and, uh, he's the founder of Moz. He started this app called. Toro T O R O spark Toro. And within eight minutes you can dive in, go to your competitors and figure out, um, the, the audience who's listening, the influencers behind it and target the heck out of them and just make that part of your.
[00:18:17] Competitive advantage. So it's really cool. I don't know if any of you are using spark Toro. If you're not, you got to check it out. It's, it's incredibly cheap and it's very effective. I know. I think Joe you're using it and on that note, Hey Joe. Welcome. Okay. Thank you. And I agree. Spark Turo rocks. Um, it is a tool that I try to use regularly because it really, um, you nailed it when you said you, you need to know your.
[00:18:46] Um, you know, Amazon is great. It's a great place to start because it, it provides a ton of traffic, which, I mean, you don't have to know marketing to be able to sell on Amazon. It is a great, um, it's a great sales channel, but that's all it is, is a sales channel. Amazon lever controls leverage over your. And can take it away as fast as, as, as you get it.
[00:19:13] That's one of the really bad things about Amazon. However, to overlook Amazon for most sellers, it's something that they can't overlook and I really don't necessarily recommend it. However, um, you know, I mean, I started selling 21 years ago. Before Amazon was actually selling products and my products were too expensive for Amazon when Amazon first started.
[00:19:38] So we started by building out communities, you know, I wouldn't start a business just on Amazon personally, and I don't really recommend it. You it's smarter to establish yourself. On in business period. And that means being on more than just Amazon in the last couple of years, studies have shown that buyers now, um, Are more concerned about the experience than the price, not in all cases, but they perceive value at a much higher level than they have in the past.
[00:20:17] And that creates situations where like you, um, uh, he he's been able to do very well without Amazon. Uh, I have a lot of different clients that I've taken off of Amazon that are doing. Off of Amazons and they are doing on Amazon, but together they're doing really, really well. It's not as hard as people think.
[00:20:42] However, you have to learn about your community and your audience, and you have to learn marketing. And some of it's just basic marketing, but you have to be willing and open to do that. Amazon is about closing the sale. It's the cash register. Working off of Amazon, you're dealing with people in all the different levels of the buyer journey.
[00:21:04] So the message has to change. It's not about the hard sell it's about helping them solve issues and problems and, you know, solving their motivation for needing a product or solving their problem that the product can resolve. And it's about understanding who those people are and being, being able to talk to them.
[00:21:26] Just that experience alone makes you a better Amazon seller. All right. Thanks, Joe. That's, uh, that's really great advice. And please stay up on the panel if, if you'd like indefinitely and you know, if you could, I just wanted to reset the room for a second. We're talking about an interesting topic that we probably wouldn't have talked about a year or two ago.
[00:21:50] Um, It was different dynamic than, uh, although what Joe just said has always been, you know, you don't have. Oh, he's on Amazon, but we're talking about why sellers are straying away from Amazon or looking for different alternatives, which I think is a really trendy topic right now. And most people, most people, new sellers when they hear this, their minds are dropping because they think that Amazon is the only game in town.
[00:22:18] And it's not by far it's, it's not, you just have to do some exploration. The other thing. If you like what you're hearing, if you like what you're hearing from the panelists, the people that are, uh, that have come up to stage, ask the questions, drop some knowledge, please follow them. If you want to hear more from them, you know, you can hit that bell.
[00:22:37] If you like, what you're hearing in the room, a clubhouse or a startup club has a room. It's all for entrepreneurs and it's a no pitch area. So feel safe. You're not going to be pitched a course, anything like that. Anybody tries to pitch a course. Uh, Olivia's pretty good on the mute button. So, um, anyways, uh, before we get to your Shantay, I just want to, uh, see if Brian has anything further to add to the conversation.
[00:23:03] No, I, I, I'm glad that Joe was able to, uh, to join in here for those of you who have never met Joe. Um, definitely stalk him, you know, listen to what he's got to say, because he's got some pearls of wisdom that will just hit you right. Between the eyes on a regular basis. So, Joe, thanks for you.
[00:23:23] Okay, so, and, and I agree 100%. Uh Shawntay. How are you? Welcome to the panel? Hi, thank you for so much for having me. Um, I'm fine. Thank you for asking. I just wanted to get on and I wanted to ask a question because I am considering getting on Amazon, but for some reason I've gotten approved for the Amazon FBA and everything.
[00:23:44] For some reason, I just cannot figure out how to get my products listed. So I wanted to know, is there anyone who could assist with getting products listed and, you know, with all the correct marketing and everything on the tools and gadgets secrets that there is into marketing with Amazon? Is there anyone who could help that specializes in that?
[00:24:03] Well, there's, there's tens of thousands of people. A lot of people that, that, um, I, I think one of the starting points. Uh, if you, if you're getting into Amazon, you want to probably get a service called helium 10 and within a helium next to it. Um, there is a free court, Kevin King. If you don't know Kevin, you know, you should follow him and listen.
[00:24:34] He's very knowledgeable, but there's a course in there called freedom ticket and that can help you go through that whole process. There's tons of consultants. The problem with that right now is that there's so many consultants that are really. Bad consultants. So do your homework. Um, if you, after all of that, if you do need some help, I can point you in the direction of a few, just the DME.
[00:24:58] And, um, I can, I can help you, but again, I don't want to be pitching anybody or anything right now, but yeah. W H 10 or helium 10 is something that you can take a look at. It's free, the paid service. You might want to take a look at that course. Well, and I was going to suggest too, is that, you know, there's um, and I completely agree with you on this one.
[00:25:19] Uh, norm, is it, there are tens of thousands of VA's that have flooded the market lately. They call themselves experts with a weekend experience. Um, and I know I cook, I keep kicking them out of my group all the time. Um, Some of the things that, you know, if you've got access to a YouTube, of course, there's plenty of great authors on YouTube who have free content that you sure they may have courses and services.
[00:25:44] Uh, but their free content is usually worth following. Um, like norm said, you know, helium 10, you've got Brandon Young, you've got Adam highest. You've got, uh, norm, you've got myself, you've got a number of others that, um, That have a track record on YouTube or on Facebook of putting out free content? Um, the nice thing I like about YouTube is that if I have a specific question, I can usually get a specific answer, which is one of the things I really like about the YouTube search engine and it doesn't cost me anything.
[00:26:17] Very good. So hopefully that helps out. It helped a lot. And I also did have another question. What was the name of the app that you had just mentioned? It was called spark Toro. I did try to look it up. Yes. It's spark like spa RK, Toro, T O R o.com. They've also got a really incredible blog. Okay. All right.
[00:26:42] Thank you so much. That was. Okay. So Brian, um, out of the, the platforms that you're seeing perform right now, um, any suggested. Well, I mean, I think probably the ones that are the easiest and I say that in air quotes, but easiest to get onto, um, are going to be, uh, well, okay, so let's kind of break it down here.
[00:27:04] So you've got the platforms that are. You know, simply just, you know, sales channel or their sales marketplaces. Amazon is an example of that. Um, you could roll over to Walmart, um, or an se really kinda depends on the product and the price point you're shooting for generally a Walmart's got a lower price point.
[00:27:26] Um, and their whole system is quite considerably more clunky and requires more patients than, than Amazon, but it is a, it is a way to test out if you have, um, you know, one of your better products. My recommendation is usually like, you know, it's the 80 20, you know, it's like take your top 20% and test those products in other marketplaces.
[00:27:49] Um, so you've got those kinds of marketplaces. Then you also have. Um, you know, you could, you could sell on, uh, I mean, there's, there's multiple other sites, you know, the, the, the home depots and the, uh, target and Google, and, you know, all the platforms that Google support go with shopping supports, those are our options.
[00:28:13] Also, I'll be at each of these is going to add in kind of a sliver of traffic in comparison to Amazon, but I'd rather have an additional 5% from someplace else than to be a hundred percent reliant on anyone. Right. Yeah. Um, if you, um, there are plenty of tools. If you use something like a Shopify or WooCommerce, there's plenty of, again, there's YouTube videos and set up wizards and that kind of stuff in order to sell, uh, sell your product directly.
[00:28:42] But there's two things that, that requires a course. One is your own. You know, so fulfillment by merchant, uh, not an FBA kind of this way, unless you did like a fulfill through FBA, which is kind of a pain sometimes. Um, and you also have to drive your own traffic there too. What that usually pushes you back into which what I would recommend.
[00:29:03] And certainly I'm putting a lot more time into, and that is building out my. Personal conversations that I'm having with my target audience on Instagram, on Pinterest. Um, and then tick talk. Um, I do have some on YouTube as well. Um, and I know that there's somebody who probably does really well with advertising on YouTube would say, Hey, that's the best source, but there's generally, that's not an entry level point.
[00:29:32] That's more, um, if you've got, uh, you know, money to play. YouTube advertising would be a great way to go also, but from a low cost standpoint and just testing it. How do I connect directly with my target audience instead of letting any platform do it for me? How do I actually reach out and have my conversation directly with the audience that I'm targeting with my products?
[00:29:59] It does require you to actually care about your target audience. And I know that kind of sounds funny and flippant maybe, but the point on this is. There's so many people who have gotten into the Amazon FBA business because they didn't have to think they use somebody else's process. They erase and use the same tools and the same process to reach research and, uh, source products that were an opportunity.
[00:30:26] And they had no consideration really for. Who are their target audience is what their needs are and what the product is, what benefits this product provides to them. And so a lot of times what we'll see, and we see this a lot and like really badly on Amazon now is so many new products. Simply just copy those that they're trying to emulate the top sellers, and they're trying to copy their, uh, their copy of their, their content and the content of somebody's top sellers.
[00:30:55] Hasn't changed in five years. And it's using a very outdated, uh, design method, um, that, that does not address the needs, does not hook the target audience does not speak to them about the benefits of, uh, of the product. And so, uh, having that conversation through social media, yeah. It's more work, you know, and like you could probably find a teenage neighbor or somebody in the family that just lives and dies on one of these social media.
[00:31:26] Yeah. Who you could probably pay on the weekends to get in there as having started having conversations and try to figure out, Hey, why do people like this product that everybody talks about? You know, what is it, what I needed to bring to market in order for people to get excited about a new product, uh, that would fit this target audience, you know, what's their biggest pain point.
[00:31:47] So it's about having that conversation and get. That feedback, but either have to do it yourself, or you got to get somebody in there who can do it with you. Ideally not a service, but somebody that, you know, um, they can get in there and actually have a genuine conversation with people on social media over several weeks at a minimum to really understand the pain of your target audience.
[00:32:13] Otherwise you can't speak to solving their pain with your product, but once you do. You're going to have just, you know, massive fans who are like going, it's like, oh, I can't wait until you bring this product because you've been, you've been talking about it. You've been asking. It's like, well, what have I did this?
[00:32:32] It's like, what if we had a product that came to market? You know, that, you know, what if I did this with a product or, you know, what color would you like or what, you know, what function is missing or what, what do you hate about the one that you've got now, after a while people are going to like, Hey, are you going to bring this to market?
[00:32:46] Cause sign me up. That's a good way of building out your social commerce. Yeah, I would. Um, if I could just jump in here. I think Brian that's exactly right. I think that having those conversations and being able to understand your audience and they can also help you with the product research. So in the.
[00:33:06] Jewelry accessories business that we have. I mean, we've got thousands of skews and we're always trying to come out with, you know, the next trending product. And a lot of that comes from the community. Um, we built that community and they'll even sometimes without asking they'll message us, you know, DMS, their Instagram.
[00:33:23] Or, you know, or wherever. And they'll just say that, oh, I wish it came like this. Or do you guys have anything like this? And that's really helped just with the product development and allowed us to go back to our manufacturers and saying, um, you know, we just need to make a modification to this or want to bring out this style.
[00:33:41] And it's really helped, especially, you know, for businesses that have a tremendous amount of skews, difficult to keep up. That's a really good point. Yeah. So, and I agree with that and, and you know, what used, well, you guys are all talking about is really the bottom line, understanding everything about your buyer personas.
[00:34:02] Buyer personas are not focused on enough at all in most businesses. And really they're the key and the essence of understanding your business really well. Now I've been in plenty of corporate meetings with guys in suits, three guys in their sixties and suits, creating buyer personas for a product that appeals to 16 year old girl.
[00:34:26] And there's no 16 year old girl in the room representing, you know, that group, your buyer persona has half to include actual questions to real buyers. Um, and something that we focus on is building an audience. If you can build an audience, build a following, build a, uh, somebody else's. Group, you know, from a, from an influencer's group of their men, their members that are interested in your product, however you do it.
[00:34:57] If you can build an audience and have some trust with them, they will tell you. What products they need, they will tell you what your next best selling products should be. It's easier to build an audience and ask them what you should, what they need help with for you to find a winning product than it is for you to pull winning product out of your back pocket from research on helium 10, and then build an audience around it.
[00:35:27] And that's what you're talking about. So that's really, I mean, that's the essence of, of business. When you can go to your community and say, Hey, what do you think about this? They're going to tell you, and it eliminates a lot of wasted money and a lot of, uh, you know, trial and error of finding what works and that really, really, really you people just don't realize how beneficial that is.
[00:35:55] And he doesn't sell on Amazon. This is where his success comes from is knowing and his audience and being able to, you know, touch them. Yeah. Part of that too, is like, like the, we, we tend to be tempted both more. We're trained to get, you know, you know, trying to find influencers macro or micro influencers, or we tried to introduce a product to, um, you know, a hashtag on an Instagram, you know, thread or whatever, um, is it's we are tempted as sellers to promote our products.
[00:36:29] Beg you please don't even mention that you have a product in the first two weeks of getting to, of having that conversation with your shop, with your target audience. Yeah. So, uh, Brian, there, there are two other points I want to bring out. And by the way, Samuel, if you're still listening, I know you've been trying to come on and ask a question for a bit, but please pop up.
[00:36:51] I turned on the raise hands and if you want to come back up to the panel, we'll take your question right away. But, um, two things chatbox. Uh, chatbots. If you can work with a chat bot, if you could drive people over to your chat bot, I was just talking with Paul Baron on my podcast, um, just a few minutes ago.
[00:37:11] And there's some really great things that you can do to enhance the customer experience and to build out brand ambassadors, very inexpensively by taking somebody who is either been a repeat customer, get them to become an influencer, get them to become a passionate person about your product or somebody.
[00:37:29] We call a brand ambassador. I was just talking to him. And over the last three months, I thought it was, I thought it was 2000, um, images or pieces of user content. He's generated 11,000 images over the last three months of user content. Now, if you go out and you try to get this, try to figure out how much that would cost, you know, some would be free.
[00:37:55] Some would be $10, some would be upwards of a hundred dollars and it's free. 'cause he's, he's got people to, to be passionate about the product, but you can't do, like Brian was saying like, everybody here. Yeah. You can't just go out and say, oh, promote my product. It doesn't work. You have to build that. And the last thought I have, uh, unless Samuel comes up, um, one thing that we, we, we typically don't talk about because we're, e-comm sellers, it's the small retailer, the specialty store, the mom and pop store.
[00:38:28] There are hundreds of thousands of these stores out there that we can populate. And they don't like I'm in the soap niche. Well, They don't want dove. So they want Irish spring. They want, um, uh, like artisans soaps, and they don't get approached that often people are focusing on their e-commerce Amazon stories.
[00:38:51] They are wide open and guess what? They pay cash. So you're not in a receivable situation. They pay cash and they're not looking for one, they buy case or cases of product. So anyways, that's, you know, really, I think we've covered, we didn't cover enough. We've got to come back to this topic another time. Uh, but we are running out of time.
[00:39:13] Okay. You are running out of time. Yeah. That's your flight to, to London, right? Yeah. Yeah, that's correct. So again, I'm a little bit rushed today on, uh, on, uh, on the topic. But what I like to do is I really want to thank you. Thanks, Joe. Um, the, the people who came up and asked questions are great. And Brian, you know, thank you for coming on board.
[00:39:39] Thank you for bringing up this topic. It was brilliant. Um, and, uh, hopefully we can talk more about it. So. On that note, if you like what you heard today, make sure you follow the, the speakers or the people that have been up here on the panel. Uh, click that, uh, that bell, if you like to get more information about start-up club or get notified, click the, um, the greenhouse and we're back every Thursday.
[00:40:05] Well, almost every third, 95% of the time, Thursdays at one o'clock this is e-com weekly and we're bringing you topics that will make you a better seller. So until next room, we'll see you later.
Why People Are Leaving Amazon | Ecom Weekly
October 7, 2021
Avoiding the SPAM Box
[00:00:00] , my name's norm Ferrara and I have a podcast called lunch with norm the Amazon FBA and e-comm podcast, which is every Monday, Wednesday, and Friday, we have. As I mentioned a second ago, a great topic today.
[00:00:27] We'll get into that in a second. Uh, the room will be recorded. So if you have any questions, please raise your hand. We're always looking for an engaging group. Um, and we'll bring you up on stage, but if you do not want to be recorded, don't raise your hand now. This is all about content. We're not selling courses, we're not selling any events or webinars we're giving you pure content.
[00:00:51] So we expect the same. So when you come up, please don't pitch a course or pitch something, a webinar or an event, just content questions. And finally, if you like what you hear from our panelists today, Please, don't forget to follow them. Uh, maybe ring that bell. So you'll get notified. And I wanted to think start up clubs.
[00:01:14] I started up a startup club for having us as one of their rooms. And if you want to hear more, really great entrepreneurial rooms, make sure you go up to the left corner and click that green house. So getting started today, Adrian Savage is monthly. Is my guest today. And we're going to be talking about how to keep your email out of spam.
[00:01:40] So working and building email campaigns, which a lot of us just forget about, we think it's old, old news doesn't work. We'll wait till you hear what Adrian brings to the table today. And I see my buddy call-ins on as well. Hey, Hey, I just wanted to say hi. I was one minute late to introduce my. Everyone here is in for an amazing show.
[00:02:06] This guy is amazing. It's norm for our guy. I'm telling you, you know, we have Mr. Wonderful on today on start-up club at six o'clock, but that's not going to compare it to norm Farrar and his e-commerce genius. You're in the right room. Uh, I don't know about that calling, but thank you for that intro. I'm going to be talking about, uh, there's a few questions.
[00:02:28] So we're going to be talking about how e-commerce has changed the world. Uh, over the last few years, it's completely new ballgame. Talking about increasing those open rates, talking about the engagement and how you can engage in of course, keeping your emails out of spam. So with that, Adrian, would you like to introduce yourself?
[00:02:50] Yeah. Thanks norm. So my name is Adrian Savage and I've been in the world of email, email marketing for close on 10 years now. Um, I started life. And how tools like Infusionsoft and other automated email marketing platforms worked. And very quickly I found that lots of people had a similar problem, and that was the emails they were sending to the audience.
[00:03:12] A lot of them were ending up in the spam folder and I'm kind of a geeky person by nature. So I was quite intrigued and started digging into this and working out well, what really causes emails to go to spam or end up in the promotions tab in Google and things like that. And. Over the last few years, I've written a software to help people avoid the spam folder.
[00:03:33] I've done a lot of research so I can do my best to share the most important things that everyone needs to know if they want to make sure they're going to be heard as well as possible by the audience, because there are many different channels out there. The ways that you can get your message out. But email is still one of the most important one of the most effective ones.
[00:03:51] So it's my mission to make sure as many people as possible can just get the very most out of their email and how they can avoid the spam folder. Sometimes you can even double your open rates and get just more people listening to your message. So you can be heard more. And if you heard more than obviously that means you're going to get more customers, you're going to make more sales.
[00:04:09] Your business is going to grow. That's what this is all about. You know, you were on our podcast, uh, about a month ago, maybe a month and a half ago. And you really did shock me with some of the information that you provided and we implemented it. So we implemented it with one of our, um, email campaigns that were going out.
[00:04:28] And I thought we were doing really well, you know, 20, I said, oh, 23% open rate and you kind of went, yeah, it was nothing. You said, oh, just do this, do this and do this. And you'll see that you can double it. Well, guess what? It's gone from 23 to 48% open rate X percent open rate. It's awesome. Yeah. So anyways, I wanted to thank you about.
[00:04:54] Well, let's talk about, I mean, the first question I have is how has the world of email changed over the last few years? Well, you're right. It changes all the time. I remember 10 years ago. It was, it was so easy compared to now. Um, because back then in the good old days, it was just a case of building the biggest.
[00:05:12] By this mean email list, you could, you know, thousands, tens of thousands, hundred thousands of people on there. And then you just kept mailing the hell out of them until they either buy they die or they unsubscribe. And that, that was the old way. But as time has gone on, then we've really struggled because.
[00:05:28] We've got a big enemy out there and those enemy, the enemy we've got other spammers out there. Um, because the shocking thing is that as much as 85% of the email that is sent worldwide every single day is considered spam. So that means as the legitimate people sending emails, you know, if we're the good guys, then we're struggling to be heard amongst all of that noise.
[00:05:48] And if you look at those there's three dominant mailbox providers, we've got Google. Gmail and they'd run Google workspace. We've got Microsoft, they run a Microsoft 365 they're on Hotmail. They run outlook.com, all those kinds of things. And then we've got Yahoo who also run AOL. And between the three of those providers, they can control as much as 300.
[00:06:09] Or more of a typical mailing list and those guys, they want to make it, they want to make the experience for their users as good as possible. And that means they have to try and filter out all of this spam that, that their users don't want to see. And the problem is they don't always get it. Right. So now we've, we've really got to do everything we can to, to behave like good people and to show the world that what we're sending is legitimate because the big three.
[00:06:34] Mailbox providers, then they really are in control. And it's, I often can compare this to good old search engine optimization, where everybody wants to stay one step ahead of Google. They want to stay on page. One of the Google search and email is very similar to that. We have to play by the rules of these big three.
[00:06:51] Um, and then on top of that, just to make things even more confusing, we've got something called personalized mailbox filtering, and that means that every single person with their own. Email box is going to get a different experience based on what they do. So supposing I'm supposing you're on my email list, Norma, and I'm sending you lots of emails.
[00:07:10] Then if you keep opening those emails, you will continue to receive them. You'll see them in your inbox. But if someone else is ignoring those emails and they kind of voting with their feet, and they're saying, I'm not interested in what Adrian's got to say, then that person is going to find that my emails end up in the spam folder.
[00:07:26] They have effectively told Gmail or whatever they're using that they're not interested. So, I mean, that's good news in some way, because if someone comes to you and says that the email you sent them as landed in spam, that doesn't mean it's everyone else. But the other big thing now, and this is bringing us right up to.
[00:07:41] Hey, because we are what, we're less than two weeks since apple launched iOS 15 on the world. And that brings a new, um, something new that as, as marketers, we have to be aware of and we have to try and stay one step ahead off because apple have brought in male privacy, protect. And that's that means the apple are now giving their users the ability to stop us from seeing whether or not they've opened the emails that we've sent us.
[00:08:07] So lots and lots of changes there. And all of that means that we've got to really keep up to date with what's happening and understand what we need to do to continue to look like a good player in the, in the world of email and make sure the emails we send out are still going to land in the inbox. So lots of changes that gives us lots to talk about.
[00:08:28] I was just trying to get off mute, but yes. Um, and that is definitely something I want to hook back to and to talk about, uh, the iOS 15, one of the things, since we last talked, I've had this happen two or three times, and all of a sudden it started happening. People had come to me and asked me, is it worth buying?
[00:08:51] Who? Okay. So this is, this is a very, very important question because email is very different to say, um, direct mail where you're sending, you know, where are you sending letters out in, in, in the, kind of in the, in the snail mail, if you like, because people get less upset. If they receive something through their front door, With their name on it.
[00:09:13] Then if they receive an email that they haven't asked for. So the first thing to consider if you were to, if you buy an email list, is that might be one of the best email lists out there, but you've got to bear in mind that those people haven't given you personal permission to send them an email. And when people receive unsolicited email, then they treat it as quite a violation of their personal privacy in their personal space.
[00:09:36] And it means they're very, very likely to actually hit the spam button when they receive those emails. Okay. You've got to bear in mind that when you send emails from any kind of email marketing tool, they will only allow you to receive one spam complaint for every thousand emails you send. And if you buy an email list from someone else where you haven't been given permission, the chances are you're going to get more like 10 or 20 or even 50 times the level of scamper spam complaints that you are actually allowed.
[00:10:04] And I've worked with many clients, who've bought an email lists, um, and they have effectively been shut down. Within hours after they sent the first email blast to that list because they haven't been given permission. So there's a strong risk that unless you, unless you're sending to an audience where, um, they've already heard of you, or they're expecting to hear from you or something like that, then there's a risk that you are going to get into trouble just because people don't want to hear from you and they report you for spam.
[00:10:31] But then the second side of that as well is you've also got to be very careful about the legitimacy of that email list and where it was gathered because. There's something out there called a spam trap and a spam trap is an email address that hasn't actually been used for legitimate purposes. And there's different companies out there and it's there.
[00:10:50] They make it their business to try and catch people doing naughty things with email, and they will start to publish these email addresses on the internet, knowing that people are going to scrape them and put them onto lists. And if you send an email to one of these spam traps, that's known as a pristine spam trap because it's never been used for anything.
[00:11:06] Then you're going to end up on a list on a block list very, very quickly, and that can get your entire sending reputation in taxes. Um, so unless you can be sure that the list that you've purchased is absolutely legitimate and has been given from real people with real permission, then that makes it even more dangerous.
[00:11:23] But as I said, You know, you generally need to be very, very careful when you do purchase this, because even if there's no spam traps on there, the chances are, you're not going to get a very good reception. So, you know, yes, there are exceptions to that, but they're very few and far between. And if someone asks me, how do I send an email to a list that I've bought?
[00:11:41] My answer is very, very carefully and possibly don't do it. I think we will get to a couple of ideas that, uh, you talked about, uh, a little bit earlier on, on the podcast about how to get that traffic, how to get those emails. But right now, one of the things I want to talk to, um, we talked a little earlier, but your four factors of, um, that impact email delivery.
[00:12:10] Yup. So we've got what I call the race method, um, because everyone wants to win the race to the inbox. And rays actually spells out four different key factors that can make the difference between landing in the spam folder or hitting the inbox. So we've got all that stands for reputation. We've got a, that stands for authentication.
[00:12:29] We've got C that stands for content. And then we've got E that stands for engagement. And there's a number of different things that fall under each of those areas. We'll see, we haven't got much time to cover all of that today, but I think we'll probably get around to sharing a couple of the most important tips, because obviously there's always a priority with this and, you know, I'm, I'm a geek, so it's very easy for me to get right down into the detail.
[00:12:52] But the good news is I've taken my anti geek pills today. So I'm not going to blind people with science. I'm not going to baffle you with lots of, lots of facts and figures and acronyms and things like that. But I will just share a couple of the most important things that make the biggest difference because.
[00:13:06] There's always something more you can be doing, but as long as you've done the basics, the essentials, if you like, then that's, that's the thing that matters first and foremost. So, you know, as long as you can take something away from this today, it might be that you've done the two most important things already.
[00:13:20] So maybe there'll be a third one that I can share, but those there's a few really important things that matter the most. All right. Very good. Oh, we've also touched on engagement. So getting people to engage with your emails, how important is it and how can you. So, this is probably the most important thing now.
[00:13:40] So I'll do a little spoiler alert at this point. The two most important things are authentication. We'll probably circle back and talk about that later on. But engagement is the second important thing. Authentication is a one-off once you've done it, then you can relax. You don't need to worry about that again, but engagement is something that you need to take on board, and if you're not already.
[00:14:00] Battering this in mind, you need to change the way you think you need to change the way that you send your emails, because Google, Microsoft, Yahoo, they are going to penalize you. If you continue to send emails to people that aren't engaging with you. And what we mean by engagement is just a simple.
[00:14:18] Whether they are opening your emails or not. And then whether they're doing anything further, are they clicking links in those emails? Are they replying to you? Are they following the call to action in some other way? But it's all about how you can make sure that you're only sending the emails to the people that want to receive them.
[00:14:34] And if you find that people aren't engaging with you, then you might give them a last chance to say, Hey, I still want to hear from you, but if you've got no kind of sign at all from them that they're still there. Yeah, and they want to interact with you. Then at that point, the best thing you can do to keep your own reputation healthy is to actually unsubscribe them, remove them from your list.
[00:14:55] Because at that point, it doesn't matter if you've got 50,000 people on your mailing list. If 40,000 of them haven't opened anything in the last six months, then those people, unfortunately, aren't worth very much to you. You need to focus very much on the people. That are most likely to come back and either buy something from you or interact or, or carry on, um, engaging with you.
[00:15:14] Those are the people that you need to keep mailing. Um, and you know, again, we'll, we'll come back in a minute to apple launching the mail privacy with RS 15, because that's going to change the way that we manage this. But historically, the main thing that we've looked at here has been whether or not people are opening our emails and, and even now to where, you know, we're less than two weeks in, since apple have released.
[00:15:38] And we're not yet seeing a huge impact with their changes, but it's likely that it, that we are going to see a bigger impact. So we need to bear that in mind, but it at its simplest, we just want to make sure we're restricting the emails that we send. So they only go to the people that we know want to hear from us, and we know have done something recently.
[00:15:57] And that's what I was talking about. So we were having this 23% open rate. We were sending out to a group of people. And it made complete sense that we took, we, we didn't want to do 30 days and it was kind of, oh gosh, you know, is that too much? We're going to lose too many people, but we eventually. And we got up to 48% open rate and we just did something and I know this is probably going to hurt us, but we, we sent out a list of the people who didn't.
[00:16:28] So anything over 60 days and the results were just absolutely horrible. So you're bang on why even send out to people that don't open your email. And we've got people that are, that are communicating with us, joining our Facebook group, watching videos and Kelsey, you know, Kelsey, Kelsey's my son. He takes care of all this, and he's coming back with some really great results just off of that.
[00:16:56] But since you told me about that, I've talked to my partner, Kim Jordan, and we have a fairly large mailing list. And. I said six 30 days and okay. Maybe 60 days because, you know, we, we weren't sure if that was too short or not, but even letting. Saying there's 25,000 emails at word open and letting go of that audience.
[00:17:23] It's bloody hard to do because you think you're not. Yeah, absolutely. And I think this is it there's, you know, there's a big fear of loss because there's that little voice in every business owner's head that say. Yeah. But out of those 25,000 people, there's a few of them that might still buy. And that's absolutely right.
[00:17:44] But as you said, norm, the, you know, the challenge you've got is you sent that email out only to the people that hadn't opened anything for 60 days or longer. And you've got a ridiculously low open rates. You know, if it's, if it's more than one or 2%, then I'm going to be surprised. So when you continue to mail those people that haven't opened anything for a long time, you're pretty much sending a message out to the Googles and Microsoft, this world saying I'm mailing a bunch of people where 90% of them don't want to hear.
[00:18:10] And at that point, you get labeled as a bad center. Whereas if you just focus on those people that are engaging with you, then it's the other way round. And it's what I call this virtuous circle, because you want to get higher open rates. And if you've got a higher open rate than your reputation improves, And the better your reputation is the more likely is that the next emails you send are going to land in the inbox rather than the spam folder.
[00:18:33] And that actually matters for two reasons. Firstly, it means that your existing list are more likely to see your emails, but secondly, the new people that you add to your mailing list, they are much more likely to engage with you from the get-go. And you're not going to be facing with an uphill struggle to get, to kind of get them to engage.
[00:18:49] After they've signed up and not, not sit in your emails and this, this matters massively. If you're doing any kind of paid for advertising to sell your products or to also build your email list. Because obviously in those cases, if you're spending $10,000 a month on Facebook adverts, and you're only getting 40% of the people to actually read the emails you send out, you're losing a lot of money because you could be getting as many as 80% of those people to read.
[00:19:13] So there's lots and lots of reasons to be really proactive and keeping. Keep the emails that you're sending restricted to those people. And let's be really honest with this in the short term, the open rate will go up. That doesn't mean the number of people seeing your email is going to improve because all we're doing is we're taking away.
[00:19:29] Some of the people we're sending to. So it's kind of like a bit of a math trick, but by doing that and having. In increased percentage of opens, then it means that you're seen as a better sender. And that's what makes a big difference. And then long-term, you'll find that that's what leads to the greater number of people actually seeing the emails.
[00:19:46] But you know, like you said, no, it's a very, very frightening thing to do. Clicking that button when you're saying right, I'm going to let go. All these. Thousands or even tens of thousands of contacts that haven't opened anything for a long time. So, you know, I've, I've worked with so many clients on that now.
[00:20:01] And every time I feel the pain, because let's face it, we've invested a lot of time and money building our email list, but we have got to understand that the, the, the asset is only the people that are still active. It's not necessarily the asset that people think it is. That's the important thing. I want to just reset the room really quickly.
[00:20:21] Uh, we are talking about how to avoid this fam folder with email campaigns. Just the new world of emails, especially with iOS 15. Uh, so we're going to be talking about that, but once again, if you like what you hear from the panelists, please make sure you follow ring that bell. So you get through notifications and also we are recording this.
[00:20:44] So if you would like to ask a question, please do this is a great topic. Don't be. Raise your hand. We'll get you up here and we'll make sure that, uh, that, uh, we answer your questions. If you don't want to be recorded, just don't raise your hand. Uh, the next question that I have is, is about the actual email.
[00:21:05] You told me not. You told me that when we send out weekly newsletters and you were telling me about one thing, that was very important, not too many links and maybe not even a news. Can we get X on that? Sure. So content is, you know, you'll notice that content wasn't one of the two things I said that were most important, but there are still some basics.
[00:21:30] So this may be the third takeaway of the people that already understand about authentication and engagement. The way that you send your emails and what they looked like does make a difference. Um, because, um, in the good old days, it was nice and easy because you had a list of a few hundred words that were, that wouldn't seen as common spam triggers.
[00:21:49] And if you had the word free, or if you had the word, um, you know, make money, or if you had the word Viagra or, you know, a few other things. Keywords. If they were in your email, then it would go into spam. Or that was the belief. Um, and maybe 5, 6, 7, 8 years ago, then it was that simple. But Google led the field with this and Microsoft and Yahoo and everyone else's as far as followed up.
[00:22:12] And they've invested a lot of money in artificial intelligence and natural language filtering and things like. So it doesn't really matter the exact words you've got in your email anymore. It's more how you say it. And if it sounds like a promotion, they will probably realize it is a promotion. If it's spammy or if it's, if it's a phishing email, something like that, then they're clever enough to realize that no matter how you try and dress it up.
[00:22:35] So from a wording point, yes. It's important that you are authentic and you just get your message across in a nice, clear, simple way where less is more the days of having a 10 page sales letter, an email on numbers. They just don't really work that well anymore. And then when it comes to the images and the links, then it's very simple.
[00:22:53] The more images you've gotten, an email, the more links you've got, the more likely it is to be treated as a promotion. The more likely it is to go into the promotions tab, or maybe even the spam folder, because. If you're sending an individual, an individual email from yourself to a friend or something like that, it's not going to start with a great big graphical banner at the top of the email.
[00:23:12] It's not going to be littered with image after image, after image, it's not going to have loads of promotional links. It's just going to be something like, Hey, normally, Um, just getting in touch to let you know what I've been up to. Maybe share a bit of a story, maybe have a few other bits in there, and then you might sign it off.
[00:23:27] And similarly, you wouldn't have lots of links to all your different social media platforms in your email signature, because that might well distract people. Distract from the message it was sending out. So the most, the best thing you can do is keep it nice and simple. Have it fairly short, fairly concise, uh, as few images as possible.
[00:23:44] Three is pretty much the upper limit, but bear in mind, that's a, that's a guideline rather than a rule because let's face it. We're talking about e-commerce here and it, and people still send. E-commerce newsletters with lots of links and product images and things like that. And they still do work, but it's much better to focus on maybe one thing at a time and just have a clear message in each email you send.
[00:24:04] And that might mean it's better to send more shorter emails than fewer longer emails, because if you're sending emails just to your engaged audience, then. The more emails you send that they're wanting to receive. The more quality emails you send, the better it's going to help your reputation as well, but content can make a big difference.
[00:24:24] And the big thing there is certainly reduced the number of links, reduce the number of images and just be your authentic self. That's probably the best advice I can give. Very good. Hey TK. Welcome to the stage w question. Uh, thank Norman. Uh, I accidentally click, uh, This, uh, this, uh, not that link, but accidentally click this, uh, uh, club that's happening, uh, this conversation, but I like hooked because this is really aligned with what I was trying to get into.
[00:24:59] So I have, you know, and then I'd take much time and I have two questions, one, uh, to agree on you guys. Uh, is it a good idea to have, um, you know, send that kind of. You know, email marketing or email sales type of campaigns, uh, to a sub domain, let's say your domain and sub domain are, are separate domain are within group, like, you know, having a separate email from your origin product that you're selling.
[00:25:30] That's number one. And number two is. I let's say you have a list of all the opt-in, uh, opt-in subscribers that, you know, are willing to get, you know, emails from you, right? What is the frequency, uh, per week that you want to run some legit email and what type of recommendation let's say, you know, I tried to run newsletters or product updates.
[00:25:54] What sort of like, you know, do's and don'ts that you would recommend for those types of, uh, opt-in email campaigns. Awesome. Those are, those are two great questions, TK. So let's start with the question about domains. So supposing, um, you've got a domain. I dunno. Let's just, uh, let's, let's use Nike as an example.
[00:26:15] They've got nike.com. Um, and they might be sending out emails from something like, I don't know, info.nike.com. So you could either send an email from hello@nikedotcomoryoucouldsendtheemailfromhelloatinfo.nike.com and. There's a lot of different opinions over. What's good and what's bad here. And what I look at the most is there's a tool called Google postmaster tools that, that can tell you what Google thinks of your reputation.
[00:26:43] Um, and what I've learned from observing a lot of clients, some who use sub-domains and some who don't. Is that the ones that you sub-domains. There's still a level of what I call reputation bleed between the main domain and the sub domain. So if something happens on the main domain, then it's also going to drag down the sub-domains reputation to some extent.
[00:27:04] And if something happens on the sub domain, it's going to drag down the main domains reputation a little bit as well. Um, now if you're being a good email actor, then you don't really need to separate everything out because. As long as you're following the rules and, and, you know, playing, playing by the rules of the game.
[00:27:23] Then you're unlikely to cause a problem that's going to mean you need to worry about your reputation falling. However, if you've got, say a sales team that you can't really control, and maybe they're sending out lots of spammy emails and things like that, you might well set up a separate sub domain for the sales team.
[00:27:38] So they can't have such an impact on the rest of the emails that you send out. But I would say the majority of the time, you don't really need to separate them, but if you're finding that a particular type of email that you're sending out, that you can't avoid is having a negative impact, then it might be worth considering it.
[00:27:51] But most of the time I find that it's a little bit more trouble than it's worth. So think about it carefully. The thing to bear in mind with that is there's no right and wrong. Um, so I will often just look at well, what is the least amount of hassle to actually get everything set up? And if you find that it's causing lots of problems, keeping domains separate, then maybe don't do it.
[00:28:10] But if you're finding that you, that you've got a particular type of email that does get a lot of spam complaints, or are you finding, that's giving you a domain reputation issue, then may keep them separate. So hopefully that helps on the first question. The second question on how frequently should you send emails is a really, really good question because there's a lot of opinions on this and I've done a lot of research myself.
[00:28:33] I've seen a lot of other people do similar research. And the thing is, as long as the email. That you're sending out are ones that people want to receive and they see them as valuable. Then there isn't really a limit on the number of emails you can send. I've seen people sending an email every single day to their opt-in list and, you know, to be very clear here, they're still only sending it to the people that have opened recently within the last 30 or maybe 60 days, maybe even 90 days of the push.
[00:29:02] Um, And if you're sending an email every single day, you wouldn't send a sales email every day. You're sending content, education, entertainment, value training, things like that. Maybe you might have a little PS at the bottom of the email saying, by the way, you might want to check my thing out. But the majority of each email is focused on adding value.
[00:29:20] And if you're sending emails like that, as long as you have told your audience to expect to receive something, There's nothing wrong with doing that. On the other hand, if you just want to send emails once a week, then that's okay as well. Um, I would recommend you send something at least once a week though, because that way your.
[00:29:39] You're really maximizing the chances of getting a good email reputation, because if you just mail once a month and you're getting open rate of 20, 30%, something like that, it's going to take you a long time to reach all of your audience. Whereas the testing that I did back in February of this year, where I sent a daily email to my own list, I found the.
[00:29:58] Even though I was getting maybe a 35, 40% open rate for each email, which was a bit lower than I was getting. But if you're sending something every day, then obviously fewer people are going to read all of them. But I found that despite an open rate of only 35, 40%, by the end of that month, more than three quarters of my entire engaged list has seen more than one email from me.
[00:30:19] So. So the, the, the more frequently you send something the quicker, you actually going to be able to get your message out to more people on your audience. And yes, there's gonna be some people that don't like you sending that often. So you can always have a little opt-out at the bottom of your email that says, if you don't want me to mail you this frequent.
[00:30:36] Click this link, and then you can set up your email platform. So for those people, you just maybe send them something once a week instead, because not everybody wants to receive lots of content, but I found that when I personally sent something out every single day for the first time I started getting replies from people because I was telling stories and things about myself and sharing hints and tips, and people actually replied and said how much they love the emails that we're sending.
[00:30:59] And I didn't get a particularly higher rate of unsubscribes across that month compared to any. And I also found that I actually, you know, that was one of my best months ever for making sales as well, just because I'd actually been communicating with my audience. So I'd say that if you're sending something once a month, that's probably not enough.
[00:31:16] And I'd encourage you to try and send something more frequently, but certainly weekly is good. Two, three times a week is even better. If you can send something weekly and it fits your audience and you've got something to say, then absolutely try that as well. But again, there's no right and wrong with this because you don't want to send content for the sake of it.
[00:31:33] You can only say. What you can actually write if that makes sense. So work out what feels right for you and stick with it, but you know, you can't go wrong with St. You know, it's difficult to send too many emails unless you're either sending out garbage or unless you've got an audience that really does need leaving alone for some particular reason.
[00:31:49] So hopefully that helps. Yep. Thank you. Okay. All right. So let's get to the main topic. The scary topic. I O S 15. What can you tell us about it? Okay. So interestingly, there hasn't been as much panic as I was expecting yet. So that's a good thing because we don't need to panic about this. Um, I think a lot of people, when they first heard about this, then people became very concerned because the headline was apple are going to stop us marketers from seeing what our audiences is.
[00:32:33] And to some extent that is very much the case still because apple are championing privacy at the moment, you know, I asked 14 was all about stopping Facebook tracking and things like that. I was 15. Then they've taken that further. They've obviously they've empowered their people to stop, to stop their emails from being tracked.
[00:32:53] Um, and what that actually means is that the way the apple. Doing this, that whenever you upgrade to iOS 15, one of the first questions they will ask you is, do you want to prevent people from seeing your IP address and whether or not you've opened the emails and people either say yes or no? And it looks like the majority of people are signing up for the privacy option, which is not particularly surprising.
[00:33:18] Um, and, but equally. We haven't seen a huge impact yet because the take-up for iOS 15, hasn't been as great yet as it was for iOS 14. So I expect that another two or three months from now, then pretty much every apple user out there will have upgraded, but we haven't seen that yet. But the impact that we've seen for the people that have upgraded, is that the way the apple are doing this is that actually preloading all of the email content after it's been sent out before the user opens.
[00:33:51] So, what that means is the open tracking that platforms like MailChimp or active campaign or QI or any of these other email platforms, they rely on an image being in that email. And when the image is downloaded, that's how they know it's been read. So in this case, apple is downloading that tracking. In advance of the person actually opening it.
[00:34:10] So it looks like all these people using iOS 15, who've opted in for the privacy. It will look like every single email they get sent is being opened, which means that our open rates are likely to start going up. And we haven't seen a massive overnight shift yet, but we are seeing a gradual increase. And the thing to bear in mind is this isn't restricted to people.
[00:34:32] Who've got an apple email address. This can apply to anyone who uses an apple iPhone, an iPad, or a Mac to read any email to any address. So it could be a gmail.com address. It could be a Hotmail address. It could be, um, a business domain. The only thing that affects it is whether or not they're using the apple mail app.
[00:34:54] On their device to read it. If they're using the Gmail app on an iPhone, then this isn't effected by this. We're only talking about the people who use the, the native apple applications, but the testing that we've done so far, it was suggests that somewhere between 25% and as much as 50% of a typical mailing list do use apple to read some or in most cases, all of their emails.
[00:35:18] So that means that maybe a few months from now, we might find that as much as 50% of our audience. We can't trust the open rates that we have been used to. Now, we've always said that email open tracking hasn't been the most accurate thing in the world, but it's been the statistic that most people have attached onto.
[00:35:36] So it means we've got to start looking a lot more alternatives to that. Like whether or not people have clicked a link in an email, whether they visited your website and various other things. So that's the important thing. But at the same time, we also need to bear in mind. That maybe, you know, 30, 40, even 50% of a list might be using apple.
[00:35:53] But that means that 50, 60, or 70% of that same list are not using apple. And we still need to manage their engagement as much as possible. Because Google and Microsoft and Yahoo and all the others are still keeping an eye on us to make sure that we're only sending emails to people that want to read them.
[00:36:11] So in an ideal world, we want to manage the engagement of the people who don't use apple the way we always do. And if we can find out who is using apple, then those people, we need to start looking a little bit more intelligently and saying, okay, so if they haven't clicked anything in the last few months, maybe we need to send them an email saying, Hey, do you still want to hear from me?
[00:36:32] But the thing to bear in mind there is you might get, you know, as, as you've seen norm, you've got a, you know, 48% open rates. But the challenge you've got is even if it's the best written email in the world with the best quarter, If you can get more than a few percent of those people clicking the links you're doing really well, which means we can't assume that someone has disengaged just because they haven't clicked something for a couple of months.
[00:36:54] So we have got to be very careful with this because I don't want people to throw the baby out with the bath water. We've got to make sure. We're still made in the people who are most likely to want to hear from us, because otherwise we could end up with a very, very small mailing list and we could actually be losing people that could become customers sometime in the future.
[00:37:13] So there's a lot of work that we're still doing now to work out exactly how to do this. I'm working on bits of software and tracking and different analysis so that I can get some better advice as time goes on. But this is where we're at at the moment. And I think we're going to know more about this over the next few weeks.
[00:37:29] The next few. What great advice. Um, I'd really like you to come back. We've run out of time for today, but I hope you can come back and we can get into email marketing. Yeah, the people that were listening to the great audience today, and I think people were interested in how email marketing is still alive.
[00:37:50] It's not dead. It's very active. You can get lots of business that way. And, um, uh, you know, you're, you're my go-to guy, so I really do hope you can come back on for another session and we can dive a little bit deeper into this, but, uh, before I go any further, how do people get in contact? So the best thing is, um, if you follow me on clubhouse there's links and my profile to show how to get in touch, that we don't have to write anything down now.
[00:38:17] Um, but the other way, if people want to get onto my email list and the best ways to sign up for my free email health check, where I can actually help you work out how well you're managing your engagement right now. And to do that, you just go to email health, check.net. Very good. Okay. So that's the end of the, uh, the, the room today.
[00:38:40] Um, if you like, what you heard, please follow the panelists. If you want to hear more about the entrepreneurial journey, please join startup club and hit that green house and you'll get notified. So join us every Thursday at one o'clock Eastern standard time for new. Um, he comes stories. So we'll talk to you soon.
[00:39:02] Rachel Kelly, thank you for being on Adrian and we'll see you next time.
Avoiding the SPAM Box | Ecom Weekly
September 30, 2021
Working with Influencers
[00:00:00] So I just wanted to welcome everybody to econ weekly this week. We've got a great topic. We're going to be talking about working with influencers and I invited Paul Barron. Um,
[00:00:27] More building up an influencer network. But before we get started, I just wanted to mention that my name's norm Ferrara, I have a podcast called lunch with norm, uh, the Amazon FBA and e-commerce podcast runs every Monday, Wednesday, and Friday. Uh, we have, like I mentioned a great topic. We're going to be talking about influencers.
[00:00:45] I think influencers is the buzz buzz word, right? The session is going to be recorded. If you have any questions, just raise your hand and we'll welcome you up on stage. Uh, if you don't want to be recorded, don't raise your hand. So, um, we also want to just provide content. We're not into pitches. We're not into selling courses.
[00:01:04] We're into providing free content to help you run your business. So if you do come up on stage, we ask you that you don't pitch anything. Uh, if you do, I see Rachel's here and she's really quick on the mute button. All right now. The last thing I really do want to invite you to come up on stage. This is hemming.
[00:01:25] This community grows because of the engagement. So don't be shy. There's no bad questions. And, uh, uh, Paul is always willing to dive deep into whatever question that you have. So on that note, let's get started. Mr. Barron, how are you? I'm fantastic. I feel like I'm still. Catching up on all my, uh, lack of sleep from billion dollar solar summit.
[00:01:49] We were both at, I don't know about you, but I mean, you, you're a responsible person. You've got gray in your hair generally. Like your substantial more. I was up talking with Erez and mark until like five in the morning on Sunday. So technically Monday. But it was a man. Does in-person events like networking with people and talk about influence?
[00:02:10] Like one of the ways that you build influence is just consistency and, you know, being, being in front of people and it's just like, you can't beat that type of you feel like it's a good thing to do and just keep it going. So anyway, I'm great. Um, we got up, man, dude, we, I don't know. Did you, did I tell you about the, the, um, distributor that contacted us after coming back from BDS?
[00:02:32] No. So we had at 8:00 PM, 8:30 PM on Monday, I got an email from a distributor who actually lives in Denver. I'm in Colorado. Uh, for those of you guys listening and he had basically broke open the swim diaper market in Mexico, um, about a decade ago. And so you can check out my bio, we have a brand called Bowen belt littles, and, um, we've done, uh, I feel a decent job.
[00:02:57] Building up brand equity, you know, powered by influencers for the past six years. And he actually contacted us because he was dropping, uh, the brand that he carried in this brand kind of established the market in the 1980s. And he's dropping them because they want to go after low end retail. And he feels that that's going to dilute their brand equity and kind of ruin some Goodwill that little, not some the Goodwill that he built with the high-end retailers.
[00:03:21] So got an email from him at 8:00 PM on Monday. And, uh, during our weekly standup meeting with our, our, our COO on, on Tuesday, he actually called. And so like where the ball, the ball is in motion to start distribution, like large-scale to like the biggest retailers, high-end retailers in Mexico, um, all because of brand equity and stuff.
[00:03:44] It was pretty it's awesome. That's fantastic, Paula, and that's another reason this is a whole other podcast or another room that we can create is about the power of networking. It's incredible. Like even going there, I've met people that I've wanted to meet for three years and this one fellow and got to know him, got to sit down, break bread, and really got like, got to the next level.
[00:04:11] You know, something that we couldn't do just over a zoom call. But anyways, on this call, we're talking about. And I thought it was a great topic. I was talking to a guy, um, on the podcast called Joe Martin. If you haven't heard of him, uh, he started the company boxy charm and he built up, uh, this company. He just sold it for $500 million.
[00:04:38] I mean congrats to him. He did it with branding and he did it with influencer marketing. So I thought this was timing, uh, timely, you know, we've got a lot of brand new people that are getting into the e-com market. You know, they don't know the power of influencers. So let's start right from the beginning.
[00:04:56] Like, what is influencer? I just really just the act of leveraging the audience that an influencer has built and partnering with them. I mean, it's think of it as just traditional networking, really it's it's traditional network done in a digital sphere. Um, influencers, typically, when you say influencer now, most people think of it as social media influencer, you know, like, you know, the Kardashians, that sort of stuff, where you have hundreds of millions of followers, sometimes millions in plus, but really an influencer is anybody who has.
[00:05:28] The ear of their audience. So they built an audience and Jen, and actually anybody really could be an influencer mean if you think of yourself, you hold sway, you have influence with the friends and family that you have in your sphere of influence. Right? So influencer marketing is just, you know, being intentional, intentional, that's not a word intentional about.
[00:05:52] Creating these partnerships, you know, with influences sometimes, uh, that's a short-term partnership. Sometimes my preference is long-term ongoing. Mutually beneficial partnerships that, um, you know, the influencer can grow with the brand and the brand grows with the influencer. So it's really just about, you know, kind of word of mouth on digital is kind of the way that I think about it.
[00:06:14] Okay. So there's all sorts of different influencers out there. And I didn't really know that there were different types of influencers. I thought there was a small influencer and a celebrity influencer. Can you talk just very quickly about the different types and who should be using those types of influencers?
[00:06:34] Yeah. So, um, there's, you know, the, the influence of scales starts at nano. So nano, if you guys are familiar with Greek or Latin, my brain isn't fully on yet, but nano is, you know, it's, you have nano, then you have micro and you have is a Greek, Rachel. I'm not sure.
[00:06:57] Anyway, sorry about that. Uh, so it starts off with nano and, uh, they're they live in w when we're talking about influencers, I'm speaking specifically about social media influencers, um, and they live anywhere where your audience lives. So if you have an audience that is, you know, really. So you, you sell tech gadgets or something.
[00:07:15] YouTube is a great, great place for that because there's a lot of tech influencers on YouTube that you could reach out to and, you know, partner with. So, uh, it starts nano and goes all the way up to celebrity, right? Yeah. Uh, I don't have the scale in front of me. You know, I talk about this all the time.
[00:07:30] You think it haven't memorized norm. Um, but where we really live and where we play primarily, where we do a lot of our outreach is, is in the nano market. Um, we do have some celebrity influencers and we've partnered with, you know, mega and mid tier influencers too. And, um, generally speaking, if you're doing like an outbound thing, right?
[00:07:48] So you're going out and you're trying to find people that are celebrities or, uh, you know, mega influencers. Most of the time that's going to require cash out up at, you know, upfront because you know, these people have spent a lot of time building audiences, providing valuable content to the people that listen to them because the people that listen to them on social, you know, one of the reasons why they built an audience is because it's resonate.
[00:08:11] With their demographic, their audience. So, um, in order to gain access to that audience, you're generally going to have to pay something up front. And sometimes you can do like, uh, uh, upfront payments and sort of split commissions sort of stuff. But where I really believed that anybody. Anybody that is establishing a brand that the brand has something unique about it.
[00:08:31] That it's not just another silicone spatula. That's a little bit cheaper than the competition. No, a brand is a story that has some sort of gravitas to it that can rally people behind it. And it's, you know, nowadays it's not just about selling a cool product. It's about, you know, there's a lot of give back and stuff.
[00:08:48] So anyway, so coming back to the nano influencer market, most of the times, I mean, that is the most attainable market for anybody. Again, it's building a brand that can reach out and connect with influencers and where we've had the most success with our influencer build outs is, uh, with our customer base people that have purchased from us in the past, they've loved our products.
[00:09:07] They, they resonate with our story. They resonate with our mission. And when they're presented with the opportunity to promote us and, and help, you know, work together to promote us, and then also get rewarded along the way, you know, they, they jumped at the chance. And so we've built a really thriving community of nano influencers in the baby space.
[00:09:26] And again, um, I think that's where we start. I mean, there's, you could go again. I could give you, step-by-step like what you could do with celebrities and all that stuff, but the most attainable is the national market for, for.
[00:09:42] Yeah, very good. And that's what I found too, because if you reach out to the nano influencers, their friends and family, you know, you've got this higher engagement range. So I think that's a great way to start for most people. And one of the other things I want to talk about is reaching out to different social platforms.
[00:10:03] Each one of them are different. Each one of them have. Uh, I, I guess you could say a different culture. Um, that's probably the best way of saying it, like Tik TOK, have you used TechTalk uh, do I waste time on Tik TOK or have I used it to market my business? Cause those are two different things, but have you used it for your business?
[00:10:26] Yes. Uh, yeah, we have, and we we've used this also, so I also run an agency. Um, we, you know, we do this for people. And so in our agency, um, we've had a ton of success with tick talk because, um, being that it's such a new new platform and the way that the algorithm works is that it just takes a couple of videos to make it go viral.
[00:10:46] And, um, you know, one most recent one is we have, uh, a customer who sells really like awesome. Uh, chef knives and, um, we were able to get a, uh, influencer for them. That is the, I can't remember how many it's over 500,000 followers on Tik TOK and she's doing it because she likes the company, the brand, she loves the knife and, um, the knives that were.
[00:11:09] Working with her on. And so she like she's driving sales, like Tik TOK is great for driving sales. Um, you can also get great YouTube UDC or user generated content like videos, obviously. Um, and obviously then you have Instagram. Instagram is great for UDC in the form of like still photos. I mean, now they have reels and all that sort of stuff where, you know, Facebook always see something and then they're like try to copy right away.
[00:11:31] So, um, but yeah, I mean, there's influencers everywhere. You would need to know is just where do your customers hang out? Are your customers on Tik TOK or are they primarily on Instagram or are they on Pinterest or are they on YouTube? Um, are they on Facebook? Facebook is weird for influence marketing, but you can still do it.
[00:11:54] So, um, first step is understanding your demographic where they.
[00:12:02] Take that have audiences of your demographic and whatever social channel that you're wanting to grow your business on. Right. Um, I was just going to be,
[00:12:16] before I get to that question, like, what are the expectations, uh, do people, and I've dealt with, I've dealt with people that have come to us and said, you know, they want to do this influencer marketing and it wasn't for them. It was the wrong. And they were expecting way too much. Have you ever run into that where people are hearing the buzz word influencers and then, you know, they expect that they're going to go from nothing to a mega brand.
[00:12:40] Oh my gosh. All the time. Uh, the biggest, um, I guess.
[00:12:50] Marketing speak KPI, key performance indicators would be people just assume that you're going to start partnering with an influencer and you know, they've got gazillion of followers and then all of a sudden you're going to be making, you know, you're going to get a ton of sales and that's going to be the best thing for your brand, which is not really accurate because influencer marketing is, I would honestly say.
[00:13:11] Mislabeled in some degree, I would almost say it's influenced branding and brand awareness and brand awareness via influencers because, um, a lot of the, the, the benefits that you get from working with influencers are sort of intangibles in terms of, again, user generated content and, and social media exposure.
[00:13:29] And if you're building a team of influencers, instead of just doing one-off stuff, then you can go to that team and you can say, Hey, we're up for this award and we need you to help us vote and go to your audiences to help us vote. And we've actually won awards that way, going to our influence audience and those awards, then, you know, get us into best of lists.
[00:13:49] And then those best of. You know, help convince our audience that, you know, our, our audiences mommy's, they researched stuff for their babies. So they're going to go on Google and they're gonna look up best swim diaper. And when we're ranked in seven of those 10 best of lists, you know, what are they gonna think?
[00:14:05] Of course, obviously we're going to be the best. And that also results in people like this distribution agency down in down. Googling us or Googling, swim diapers, and then finding us and seeing all the social proof that we built because of influencers. So you'd asked about expectations. So I was kind of divided into prerequisites and expectations.
[00:14:21] So I'd mentioned this before. You really need to focus on your brand and branding. Uh, you need to focus on your story. You need to have highly differentiated products. You need to be willing to invest in the long-term and the long play. If you're looking at. This is like the, the, the magic pill, the silver bullet.
[00:14:37] That's gonna solve all your mock marketing woes, and you're going to become a millionaire tomorrow. That's simply not true. Um, you need to make sure that you are again, looking at this. Long-term so focused on story branding, brand highly differentiated products. Influencers are in the business of making money by looking good.
[00:14:57] Okay. So what they want to do the best ones look good by helping. So their goal is to help their audience provide great solutions or great content to help them solve their needs. So the influencers that you want to work with will not work with you. If you don't have a solid brand and a brand story, something that has, uh, something that they can latch onto, because you want to work with people that love your brand and your products, because they're great and they love you and they want to work with you.
[00:15:28] They feel like this is something that they want to share with their audience. You do not want to work with people that would work with literally anyone and it just to pay to play game because I mean, yeah, you can pay the money and we've done this in the past. And it almost turned me off from influencer marketing because we paid that, you know, seven, 50,000, $1,500 to people.
[00:15:48] And then we got placements like 13 minutes into a 17 minute video with a 32nd cut. And they don't even like pronounce our name. You know, that's not what you want because it's, it comes across very fake and people don't want fake. They want real that, that's one of the reasons why I love nano influencers because it's very genuine.
[00:16:09] And then you were starting to see like, even these mega influencers that are just super, just normal everyday people. They're not like, you know, the, the, the. You know, fashionistas, so then expectations. So I covered started a prerequisites expectations is that you want it to be relationship based. So I kind of touched on that where you, um, you don't want to work with people that don't like your product, your brand, because it resonates with them.
[00:16:31] You don't want to work with people that are just in it for the money, um, because it comes across dish and genuine. You might make some money. You might make some sales, but in terms of a long-term investment return, investment equity, you just don't see that. So you need to expect that it's relationship-based, you need to expect that it's not going to be overnight, and you're going to need to expect that on a, on an agency level, a business level, what have you, that is going to be indirect ROI.
[00:16:57] Um, because quite frankly, like I have talked to it's crazy Tik TOK influencers that their audience will not click and affiliate. They just, for some reason, like, I don't know why, but they, like, they have followers that resonate with their content, but for some reason they don't like affiliate links. So that means that they don't want the influencer to get paid.
[00:17:18] So then they'll go to like Google or Amazon or whatever, and then type it in a second. The brand, see a bump in sales, but tracking that, you know, like definitively to a specific influencer is really hard to do just because this, the way that people purchase and buy and buying behaviors. So expectation.
[00:17:37] Relationship-based not overnight indirect ROI and some pre-recs that you'll need to have going into this is that you need to focus on brand and branding, focus on your story, which is intrinsic to branding. You know, you have to have highly differentiated products. You can't just be a blue, silicone spatula and a sea of red Silicon spatulas.
[00:17:55] Uh, unless you're selling in a. You know, I don't know that that was about to be a very politically incorrect joke, but, uh, and you got to be willing to invest in the long-term, but you get it. It's, it's not a overnight success. It's just like anything in business, you know, if you think you're going to be an overnight success, you're dreaming not going to happen.
[00:18:15] Yeah, that's right. Call, uh, I I'd like to do a couple of things. First of all. I'm going to be providing, um, an app in two seconds. I have nothing to do with it, but wait to hear about it. I just want to reset the room though, before I get to that. And by the way, if you do have, or if you are using influencers, we want to hear from you, what are your results?
[00:18:35] What are you, what are your takeaways from using them? Have you done? Or if you're an influencer, so. Yes, that's also. And thanks for interrupting me. No, just joking Paul joking, but, uh, anyways, just wanted to reset the room. Uh, this is e-com weekly today. We're talking about how you can build up or a successful business using influencers.
[00:18:56] What they're all about. Uh, if you like what you're hearing, make sure that you click on Paul or myself, uh, and follow us. If you like the room itself, uh, go up to the top left corner, you'll see start-up club and there's a greenhouse there. Make sure you click on it and follow, and you'll get other notifications of really great rooms that they have.
[00:19:17] So here's the. This is Paul touched on it. You have to know your audience. So who, who are you marketing to? Sometimes it's really tough to figure it out. You might guess. And a lot of people do and I I've done it and I'm completely wrong. I have a soap company. I thought it was females that were buying it.
[00:19:36] It was mostly males. So I had to change around my marketing strategy. There is an app out there. It came out this year. That anybody who wants to listen to me, I tell about this because it cuts down on 99% of research. It's called spark portal.com. I think it's dot com, but, uh, it's from Rand fish and he's the guy.
[00:19:59] He's the founder of Moz. This guy knows his stuff. He's, he's an incredibly smart guy. And, uh, anyways, in eight minutes he's got a training set. It's inexpensive and you'll learn your audience. It goes through who your competitors are and who's listening. I don't know if you use that at all, Paul, but I just wanted to shoot that out there because if anything, influence, you have to know who to go after as an influence.
[00:20:27] Yeah, we have. And, um, that, that's actually something that I would recommend people if they're sort of pre-market or they're doing their market research and they don't have an audience to go and pull. So one example of that is that before pre-launch right, you, you haven't launched your company, so you haven't started aggregating or acquiring that customer data.
[00:20:43] The other would be in the Amazon space and you and I are pretty deep in this space norm. And we see, oftentimes there's just people don't do a good job of building their audience because. Yeah. I don't know why maybe they think it's expensive or maybe they don't know how, or maybe they don't know what to do once they built an audience.
[00:21:01] So if you're in a spot where you haven't built an audience and you need to understand your demographics and not just the demographics, but sometimes psychographics of what makes people, people take spark. Toro is great. My preferred method. Is polling my audience and doing a customer segmentation and questionnaire.
[00:21:17] And then we reward people for going through that. And I run all of that through chat marketing. Um, we do a lot of that through messenger and now Instagram direct. And, um, we don't really have an audience that uses WhatsApp, but that's available too. And so, um, you know, literally talking to your customer.
[00:21:34] And asking them why they bought from you. Literally just one question, if you, you don't need to have like this 20 question questionnaire, you can ask them, why did you buy from us? And the responses that you're going to get are going to be, I would say that they would probably blow your mind because you have sort of assumption.
[00:21:51] As to why people buy from you and you might or might not be correct. And we had this assumption going in, that people were buying from us because they wanted to save money in the long run. And we were wrong. The reason why people buy from us is because they're more eco-conscious and they don't really necessarily care about the.
[00:22:11] Too much and the, the, the primary. So those are like core driving motives, but the, you know, the primary reason is that they're busy moms and they want a worry free solution. And so that's, we discovered that talking to our audience, and if you don't talk to your audience, you're not going to find out why they buy from you and who else they're buying from and, and what other products they want to buy from.
[00:22:31] So if you're pre-market you want to go to spark Turo is something similar. Um, you know, if you already built an audience than just literally ask them, email them, you know, email them and say, Hey, would you mind if I just took 20 minutes to call you and all you can even give them like a $20 Amazon gift card or something.
[00:22:48] Oftentimes if you just say, you know, we're trying to do a better job of serving our customers and we'd love if we just took some time to talk to you, you'll be surprised at how many people will just do this for free. It's pretty incredible. You're gonna get the very angry. People who had a problem or the very positive, I think.
[00:23:09] Correct. Yeah. Um, we actually, haven't had too many angry people, which is, I, I think we, we have a really high intentionality on, on quality and making sure that we have a good customer experience so that we don't have those customer service nightmares, but yeah, you will. And the best thing about angry people is they're going to tell you exactly what they think, and they're not going to sugar.
[00:23:29] So, if you genuinely care about the quality of your business, talking to angry customers is a great way to understand your failing points. And the thing is you got to go into there. If you know, with a thick skin, not take it personally and look at it as genuine market research for how you can become a better brand and how you can provide better products and services and a better customer.
[00:23:50] Paul, are you a hockey, dad, soccer dad, or baseball dad? Any of those? Um, we're at, so, you know, Bo is seven. My oldest is seven and he, he's kind of in the phase where he's trying to figure out what he likes the best, um, layout is for. So they're in gymnastics now. They've done soccer. Bo loves soccer. My wife played for 15 years.
[00:24:13] She's really good. Um, I play hockey and so the kids are also in skating lessons. I'm in the, uh, I'm in the busy phase of, um, Lots of things right now. So what, the reason why I asked that is there's, there's one thing that coaches usually say because they have all these hockey, moms and dads that come out and their kids the best, and they don't have enough ice time or whatever it is.
[00:24:40] It's the 24 hour rule. Right. If you've got that nasty, nasty, nasty email that comes back, that kind of irks you the wrong way, it's always best to reach out to those people. You know, in 24 hours and that's just a tip, this is what I found, because then, you know, you've got them, they've cooled down. If you don't, you're just going to get screamed at.
[00:25:02] They're going to be very emotional, give them 24 hours. So, and, and that's also, if you're using an influencer, maybe something has gone wrong. Um, th this actually something that's gone wrong, this happened recently, and this is another great given. Who owns the product who owns the material, the user generated content.
[00:25:25] What do you do to make sure that you don't get sued or there's a copyright problem? Yeah, you got, you got to work with the influencers on that, and that is the most common mistake. Well, there's. There's a lot of mistakes that I see people that are getting into influencer marketing. Um, but that's a, that's a very common one.
[00:25:43] Um, you need to have a contract and even when you're working with, you know, like our, our team, you know, they're all generally nano micro influencers. Uh, You need to add, you need to have a contract and sometimes it could be, if you don't have a contract, it can be simple email. Like, Hey, can we use this here?
[00:26:03] And then if they say, yes, you need to ask like, okay, well how, how long you can get, like, again, how long can we use this? But in our contracts, we have that. We have rights to the, the creative works in perpetuity, which sometimes that scares some people off. I mean, cause imperpetuity means forever endeavor and some influencers.
[00:26:20] I want, you know, they don't want you to, to have that. So sometimes it comes down to negotiation. But again, my number one rule of thumb going into, into any, anything, um, with influencers and business in general is just treat people with respect. Um, you have to treat people with respect because. If, if you're in it just to use people for their audience, like, come on, don't be a douche like you don't want to be used.
[00:26:44] So don't do that to other people. And it's going to kindness will get you a very long way. And to the extent that, you know, I've had conversations with mega influencers where they've even said that they would, they would even oftentimes work with family owned brands and smaller businesses for free. If they really resonate with them and they feel like there's a personal connection.
[00:27:03] So. I'm coming back to that, treating people with respect in the contract thing, you know, we do have in most of our contracts that we, they share the content with us. We, we own the rights to use it in perpetuity. Um, just so that we don't risk, you know, getting sued in the future or something for some random thing.
[00:27:21] So I'll give you a good example. That's a little bit off the wall that you would never think would happen. Um, we had, uh, an influencer that we had worked with that, um, you know, shared her content on social with her baby. It was a public account. She shared it with us just like normal. And there was a, um, a convention that we had exhibited at it.
[00:27:41] You know, a handful of times it was really deep in like the natural parenting, uh, space with kind of a lot of hippy-dippy people. Technically, I would probably be considered a hippie Debbie person because I've composted chickens and all sorts of weird stuff. But anyway, um, there, it had come out that somebody who was associated with.
[00:28:02] This convention or this trade show, um, had child pornography on this person's computer. And, um, because of litigation, the, the, the attorneys for this place said until we get this resolved, you know, don't go public, but some people found it. And in the cancel culture that we lived in, it was a shit storm and it was not associated with, there was nothing to do with the event.
[00:28:26] It was, it was crazy because it had no impact on the event or the people that ran. It was just some person that was associated with it. And so we had this lady who had shared this content with us, you know, she had signed the contract, she just went full freak out mode. 100%. She is like, you're exhibiting here and we want to make sure that you're not using it or photos inappropriate.
[00:28:46] I'm like we they're the ones that you shared you've shared on social, but out of respect to her, we, we, she asked us to take all the photos down, which we did. And then, um, inadvertently our social media management manager accidentally posted another photo of. Her her child and that obviously she was angry and it was just a miscommunication.
[00:29:07] And we were obviously deeply apologetic, took it down immediately, but she threatened to Sue us because her, her father-in-law was a lawyer and the contract protects us from that. And we reminded her like, Hey, you know, again, this was an honest. We're not doing this out of ill out available for you at all.
[00:29:24] Um, but again, you did sign this contract on this date, which protects us legally from this. So again, crazy random situation. Um, and sometimes you will have people that have malicious intent. I don't think that she did, but you need to make sure that you're legally covered because, um, copyright law. Yeah, at least in America, that the copyright goes to the person who creates it.
[00:29:44] And so if you use it without their permission and they can prove it, then you could get sued and you can get in a lot of trouble. Okay. One of the, I guess this is probably the last topic, unless anybody has a question. Uh, last question would be, uh, about bringing around that influencer to becoming a brand ambassador.
[00:30:03] And that's where you've got a passionate person working with your brand. So how do you go about tweaking? Influencer to becoming your brand ambassador and what isn't a brand, a brand ambassador. What can they do to your company? Yeah, well, again, it goes back to my rule of thumb. Is that you, you want. To treat people with respect.
[00:30:26] Um, and if you treat people respect respectfully and you bring them into your community, so it's, you want to make sure that they're in community of some type. So oftentimes that just takes the form of a Facebook group, or it could be like a WhatsApp, you know, group messaging thing or wherever your, whatever works best for your.
[00:30:44] You want them in community and you really need a face of your brand, whether that is one single brand ambassador. At first, it's kind of a community manager or like with us, it's my wife and I are really the faces of the. And so that's good and bad because the people that follow us and are in our brand ambassador team, they love connecting with us.
[00:31:04] Now, if we're wanting to exit, then we're going to have to figure out a way to make us not the faces of the company so that, um, we, we, we, you know, replace yourself, but a brand ambassador is really somebody who is a face of your brand. And they could be one person or it could be multiple people. They really are a true brand enthusiasts.
[00:31:21] And they really love promoting your brand within their network. It's not something that they're doing because they're getting paid. Yes. Oftentimes they are getting paid something and depending on how you structure the deal, it could be. Um, you know, an ongoing retainer, it could be a percentage of commission, like of sales.
[00:31:41] It could go even as deep and as, as far as like you're doing a private label or white label brand for them, and then it's, you just sung on those lines, but then. You know, they, their content distributors, they distribute images and blog articles and videos, and they do word of mouth. And really it's just somebody, again, they live for your brand, they endorse it organically and they're not doing it because they want to get paid in there.
[00:32:02] There are people that we're collaborative with, collaborate collaboratively with you. Um, and so for example, we go to, uh, you know, our team and if we need, we have an, uh, content ask. So say if we're launching a new product and we say, Hey, we need just to do a quick video. This is kind of what we're looking for.
[00:32:20] Um, those people they'll, you know, put together some stuff for us because they love us. And, um, yeah, so content some, some, or sorry, community, some way to communicate with them, bring them into community, again, treat them with respect, um, because nobody likes to be treated disrespectfully. Um, and yeah, I mean kind of, I don't see it's too complex, but.
[00:32:44] Well, no, that's, that's it, Paula. And, you know, we could get into that a lot more detail, like the layout of how you do it, and maybe we can do that at another time. But, uh, for now I just wanted to thank you for joining me today. If, um, if you like, what you heard, please follow Paul or myself. Um, and if you want to get more, really great content from start-up club hit the green house hit, uh, you'll be notified on other rooms that they have for entrepreneurs.
[00:33:14] And I think that's it for me. Thank you very much. Thank you, Paul. Thank you, Rochelle. And thank you everybody for being part of the community.
Working with Influencers | Ecom Weekly
September 23, 2021
Sourcing in the USA | Ecom Weekly
[00:00:00] My name's norm Farrar, and I'm a host of a podcast called lunch with norm. Uh, it's the Amazon FBA and e-commerce podcast every Monday, Wednesday, and Friday.
[00:00:21] We have, um, a room every Thursday at one o'clock called e-comm weekly and we bring you great new topics. And we get, we dive deep into them each week. Um, just a couple of things. The room will be recorded. So if you have any questions, please raise your hand and we'll bring you up on stage. If you don't want to be recorded, don't raise your hand.
[00:00:42] And also, uh, we want to provide just really great content here. Uh, you know, it's content driven. We want to just share what we have with the experts that we bring on. Uh, so if you do come up on stage, uh, please don't pitch. If you've got a course, if you've got something. Yeah, you can do that in another room or, you know, just, we just want content.
[00:01:03] And by the way, uh, Olivia who just joined us, she's pretty quick on the mute button. So, uh, anyways, uh, by all means ask questions. We really do want to have an engaged room. The other thing I want to talk about is if you like what you're hearing. Uh, please go up to the top left and see startup club and click the greenhouse for more, no notifications.
[00:01:26] And that's on all the different rooms that are available through startup.co startup club. And if you like what you hear, please follow the speakers. So, all right, so let's get started today. We are talking about. Sourcing in the USA. Uh, it's something new. We don't talk about that. We, we usually go out to China or we're hearing a lot more people going to India now, but different countries because of some issues that are happening in China, long delivery time, CA containers.
[00:01:57] Are horrible, trying to get a container and just the wait time. So, um, apple lobby is going to go through this, um, apple lobby. Can you just, uh, a brief introduction who you are, what. Uh, thank you. Uh, my name is . Uh, I have been sourcing products, developing products for over 20 years now. Uh, my journey started when I invented some shoes and that was, I was looking for someone to help me make it.
[00:02:25] I couldn't find anybody. So I found myself in Taiwan and then to China, uh, I've manufactured a lot. Products developed a lot of products. Uh, since then, uh, I was with Amazon at the very beginning of the, uh, before FBA, actually, um, in, in the early two thousands, when they were transitioning, I've worked with Alibaba on some, several cool projects, uh, you know, privately done with them.
[00:02:53] Um, uh, so. You know, I developed a lot. I, um, I just enjoy, you know, developing products. I enjoyed the manufacturing process. I love to source products from all over the world. Uh, I've been buying products in the U S for a long time, uh, be before COVID. I just exited a brand, uh, that we had over 60 or 70% of our products were actually sourced in the U S and do a way very, very good.
[00:03:22] So we had. Uh, experience, you know, buying products here in the us. Uh, thanks for having me on the show now
[00:03:34] just got to, I got fat fingers. I'm trying to find that, uh, that, okay. So one of the things I just kind of wanted to go through, uh, you know, a deep dive. But one of the things that I want to point out is that we're not just going to ramble. We're not going to go on for two hours here. We want to give you the information over the next 30 minutes to 45 minutes.
[00:03:57] We might bring it up to an hour. So if you do have questions, we really do want to promote questions. Uh, first of all, of course, yes. Everybody. Can you talk a little bit about that apple lobby? Uh, you broke up just a little bit. What was that? Yeah, so sourcing in the U S is not for everybody. Can you talk about who it is for the niches, the categories that are best suited for this?
[00:04:24] Awesome. Awesome. Yes. Um, many people would come, uh, you know, looking for sourcing in the U S. Like you said it's not for everybody. Uh, so we want to make that clear that some products are just not well fitted or well suited to us manufacturing. Uh, if your product is a bulky, your product is big. Your product is, you know, like foam your product is, it was made out of wood, specialized fabric, premium chemicals.
[00:05:00] Metal tubes, extrusion plastics. These are all the products that I feel that you would, you will really enjoy, uh, making in the U S um, I also had, uh, I have to say had the background noise. I don't know where it's coming.
[00:05:23] It looks like someone is on muted somewhere. If you want, you can make me a moderator so I can. All right. How about we do that?
[00:05:35] Okay. There you go. Olivia. All right. Yes. So if your products are made of wood, uh, some metals, some Cushing, if your products are big and bulky, if you have specialized fabrics, specialized chemicals in your product. If you have extruded products, a lot of fabricated products, uh, the U S would be very good for you because wood products, uh, especially wood products are really, really great.
[00:06:09] Uh, if your product include like powder coating, sandblasting, electroplating, uh, these are products that us is really good. Uh, the products. Will not fit into this category would be products that have a lot of touch points. So if your products are very, labor-intensive like sculpting, like they use a lot of handmade stuff to do.
[00:06:36] Uh, it would not fit with the U S manufacturing because there is, you know, the labor rates are very high here in the U S so we want to try and stick to products that. People touch it less. Uh, in some cases, even if your product has a lot of, has a lot of touch points in my want to redesign it and, and just optimize it to, to be very, to, to, to use.
[00:07:03] You know, screws or less nails, you know, I see products all the time that has like 20, 30 nailing in it. That's not so good because you have, people will be nailing something 20 times. You know, if you're paying in the U S if it's like 25, $30 an hour for your nailer in China is about $2 or $3 an hour. So those kinds of products will not fit into us manufacturing, but if the bigger and bulkier your product, the better for it to be made here in the U S.
[00:07:34] So we saw, uh, about a month or two ago, um, a wooden product I would have never, ever thought would be competitive with. Yes. You, you told me that you were able to find, uh, a company in the U S because there were more automated Chinese that took out those touch points. And actually, what, what was the landed cost?
[00:08:01] It was, you know, it was 20 or $30 compared to like $90. Yes, it was, uh, it was a lot, um, we had the products have been made in China for 17 bucks or so, and by the time it's landed in the U S it's, it was over 30 or 40 bucks. Uh, we were able to get it here in the us for, uh, less than 27 bucks, uh, which is really good.
[00:08:29] And, uh, If everyone in the us, by the time I got to the factory here, I, uh, there's a lot of, that's. Another thing about the U S manufacturing is that you you're going to see a lot of highly experienced engineers on board. You know, that I work in at this factory. 30 to 40 years experience, uh, just making products.
[00:08:49] By the time I took the product there, they were like, no, we could redesign this product. We can do it this way. We can do it that way. I'm like, wow, I didn't know I could do that. So by the time they came up with the, with the ways they were going to do it, it came up to be way cheaper, uh, here in the us. Uh, and it's a lot of savings and that, that's a good point that you brought up because let's say that you are using a specific type of material.
[00:09:15] Sometimes it's just thinking outside of the envelope, going to a product innovator or going to the manufacturer and seeing if they can produce it a different way or with a different model. That is more cost effective and possibly even better than the original, uh, uh, material that you're using. Yes.
[00:09:35] Correct. And the U S leads in material science, believe it or not. So there's a lot of materials that are now available that people don't even know about. Like if you're making a product. Would, or you're making it with some, some plastics. There are so many different new products out there now, new materials that you can make your products in.
[00:09:58] I mean, by the time I got to one of these factories, they showed me all these names of materials that I can't even pronounce their names. And they're very eco-friendly and I'm like, what is that? They say, oh, this is a poli you retain this. Polycarbonate. This is these I'm like, can I use it for this product?
[00:10:16] They say, yeah, it's actually 200 times stronger if you use it for this product. And it's good for outdoors is good for indoors. So I was really lectured about material science. By the time I went to all these batteries and I'm still learning. So if you're not married to a specific material, you might really want to look at redesigning your product or exploring, or the materials that can actually cost you less.
[00:10:43] Another good thing about this us made materials or chemicals are, uh, is these materials are exports to China. So China is one of the leading buyers of us made materials and goods in terms of, I mean, raw materials and chemicals, DuPont, 3m, all these companies. Materials and chemicals here in the U S and most of your Chinese factories will buy it from the U S ship it to China.
[00:11:13] Have it, have your products made only to ship your products back to the U S so if you can just cut a deal, find some really good suppliers. I may be able to use this same product and make it here in the us. You're going to save yourself a lot of time. You're going to see a lot of headache. A lot of hassles, your product quality will be impeccable.
[00:11:33] Very, very good. And one of the other, a couple of other categories that we skipped over. Uh, I sell in the beauty category and beauty products in the U S are incredible. Um, I trust them. That's one of the, the, the, I don't know about you, but maiden trying to beauty products. I just got this thing in the back of my head when I buy.
[00:11:58] Um, I re I much rather put my faith into a Canadian or us manufacturer for, for beauty products. And also, uh, I'm also in the pet niche, but, uh, you know, selling food or like pet food and, and, uh, just other types of pet products. All in the U S you don't have to go elsewhere. I mean, there are tons of opportunities, uh, to sell different types of food from around the world, but, uh, U S manufacturers again, raw food.
[00:12:30] That's really big right now for, for pets all in the U S you just have to, you know, find the, the, the suppliers. And that leads me into the next question. We talked last, uh, the last time, couple of weeks. About a couple of sources. How and where do people find these sources? Great question. So, um, I know have been a big, uh, talker about, uh, Thomas net, but the more I use Thomas neg, the more I'm realizing that Thomas natives.
[00:13:05] A directory, not a sourcing platform. And a lot of people have confirmed to me as well that, uh, all the suppliers they are just kinda dominant, you know? Uh, so what I do now, ease if I do find any supplier on Thomas net, I will go to Google. I will go to LinkedIn. I will go to Yahoo, uh, YouTube, uh, to go and see the activities of the suppliers.
[00:13:30] I want to know if the supplier is hungry enough, because if you just get them on, uh, if you just contact them on, uh, I mean, true, uh, Thomas net, or you send them an email, they may not reply you because they're not hungry. But if you go to, if you copied supplier's information from Thomas net, You know, copy and paste it into Google and you see some real recent activities or you put it in YouTube and you find that they have videos and a tour of the factory that tells me they're hungry.
[00:14:04] They really want to do business. They're looking for, you know, businesses to do. They're looking for products to make. But by them just being on Thomas net, I found out that that doesn't really mean anything. They're just there ThomasNet just has a directory. It's just like a yellow pages. And you know, some phones may be on the yellow pages and they're not working anymore.
[00:14:25] Right. So in the same way, it's almost seems to be like that. So what I've been doing is if I find a. A supplier on thermos. Net are good. Google are verified. Name are victim in Google, LinkedIn, uh, YouTube. And also there's another one I use this day. Uh, Facebook. I wanted to see if they have a Facebook page.
[00:14:46] If they're promoting, if they're posting on Facebook, that's another way to find them. But Google has been the best for me so far, even, even better than Thomas. You know, we we've talked about this before on other podcasts, in our, um, uh, clubhouse rooms, like on e-com weekly, and that's understanding the culture in China, but when you're first negotiating over there, you know what to say, how to introduce yourself, just different things.
[00:15:17] Well, you have to do that here too. What we've found with manufacturers. And I come from a manufacturing background. Uh, my family has been in manufacturing forever, uh, but they're not used to e-comm sellers. So all of a sudden somebody gets an email from somebody saying, Hey, I'm interested in 250 pieces.
[00:15:38] I'm an Amazon seller. That's really not going to turn their crank. Um, how do you approach it? So the screen that I've been using, so Friday is worked very well. Is one. I called them up on the phone. I really don't send them any email. I call them. And then they tell me to send them an email following up on that conversation and the script I use these.
[00:16:03] Hey, how are you? Uh, In the process of bringing my production from China back into the us, because I want the quality here in the U S do you think you can make some of these products for me? So what that script does is first it appeals to the emotions. I found out that when you use the word, bringing your manufacturing back into the U S.
[00:16:33] Is a major, major selling point, all of a sudden in to wake up. They're like, oh, that's nice. You know? So I tell them, that's what I'm about to do. And I have a couple of products that I want to give them to make for me. And the next thing they're going to ask you is what are these kind of products? So you have to simplify your product very well.
[00:16:54] Don't make it complicated. Say I'm bringing my Walsh. On bringing my wedding organizer or I'm bringing my fabricated steel, a hangar or whatever, make it very simple. Don't don't, don't, don't go into using, you know, complicated words. Uh, they're going to open up and they're going to start talking to you. In most cases you might, they might have to transfer you to the sales person.
[00:17:23] Which has happened to me a lot of times, they'll say, okay, hold on, let me transfer you to our salesperson. And when you talk to the sales guy, use the same script. I'm making some products in the U S I in China, I'm in the process of bringing my production back locally to the U S to, to help the economy here.
[00:17:41] How do you think we can work together? Nine out of 10 times, it has worked for me. I've gone to, um, for one of my products, I've gone to pet expo and walk the floor and that's, by the way is another great way to find, um, suppliers. So go into. Uh, your association. So for me, I would go to and walk to go to trade shows and walk the floors, talk to the people there, and you'll be surprised how many people that you can talk to.
[00:18:17] Now, what happened to me though? I went into pet X while I was trying to just find somebody to manufacture or not manufacturer, but provide. With a certain, uh, uh, pet product. And I found a very hard time because my badge said, you know, basically e-com it had e-com on the badge. Nobody would talk to me. I I'd have to really fight for attention.
[00:18:40] And until. Yeah, you get them and you say, yeah, well, how much do you sell? That's going to be the first thing out of your mouth, out of their mouth. And you know, if you are selling, if you are experienced, you can blow them away. So when I told them all, you know, I, I T I sell this many a month. All of a sudden I got not only their attention, but the head guy in the booth came over and started talking and started to build a relationship.
[00:19:04] I found the relationship. Like if you go to China and you go to EU, or if you go to the Canton fair, You get a, uh, a friendlier group of people that want your business again, coming into e-comm in the U S it is tougher, but you have to fight for your product. You have to fight for your brand. And I think you have to ask the right questions.
[00:19:24] If you come in as an underdog, oh, I'm testing out a product. And, uh, I only want a couple. Yeah, a hundred or 250 or 500. You have to really show that. First of all. Yeah. You, you are developing this product, like after lobby said, um, I have a successful brand, uh, that I sell from China, bringing it over, um, exploring my different avenues.
[00:19:47] And, um, I'm just looking for somebody to manufacture. Don't look like you're just starting. You know, just make sure that you talk with confidence. Uh, again, associations are probably a great way to start, go to trade shows. Um, that that's an incredible way to open up doors for you. Uh, all right. So after lobby, the other ways of communicating with your U S suppliers.
[00:20:16] Um, when you say trade shows, let me touch up on that a little bit. Um, so, uh, let me give you a real life scenario. We were looking for a foam product, right. And getting to the. Trying to look for a foam manufacturer in the U S for like a Cushing or form like a pillow or something. We discovered on the website of one of these manufacturers that says who we belong to the foam products association.
[00:20:48] I'm like, what is that? I clicked on the link. Guess what took me to the website of the trade association for all the foam manufacturers in the world. Uh, you can now search. You can now go to us section listing all about 40, 54 major, major filmmakers in the U S and now you go to this form makers and then you go one by one.
[00:21:13] You can go to through their website one by one. So trade association. Sometimes they call it dudes in America, G U I L D S guilds. It could be a Guild of a fabric makers or guilt of fabric meals or something. Uh, you could check out all those guilds. You can check out all your chamber of commerce and not a website I wanted to throw in there is made in america.ca.
[00:21:40] Made in america.com. You're going to see all the products that are actually be made here in the U S you could sell your products on there too, but I just use it for the manufacturer. As there are direct contact with manufacturers of like really, really cool products, a lady was talking to me, she wanted to make some.
[00:22:01] Uh, cookware and I'm like, yeah, go to made in America dot see you. You're going to see a bunch of cookware, make us there and relax. She found them made here in the U S very high quality, uh, you know, knives and metals and, and, and big way and stuff like that. Okay. That's another one to do it, um, contacting them.
[00:22:23] Uh, definitely. You have to. Definitely. You have to research on Google research on YouTube research on LinkedIn research on Facebook and call them and then follow up and everything that norm said about introducing yourself. They don't know about econ. These are old school factories. These are factories that are owned by 80 year old guys.
[00:22:46] They don't know anything about e-comm. You talk about econ. They're like, what is he talking about? You know, but if you talk to them in their terms, like, Hey, I need. 3000 pieces of these on a monthly basis, then you get their attention. I need 10,000 of these on a monthly basis. Then you get their attention.
[00:23:03] You, I need 500 or 600, whatever it is, they want to talk in data. They want to talk in numbers. The more you talk about numbers and data with them, they're you get their attention and follow up with emails and continue the conversation until you strike a deal. We forgot to mention too, that, uh, another way of sourcing on Google is to type in, um, either manufacturer private label or white label and whatever your niche is.
[00:23:33] So those are a couple of quick search terms that you can use, and you'd be surprised, but that's a, that's actually F a lobby. That is a great point. If you find the manufacturer. Oh association, it will help out tremendously. So before I get to the question from Tom, um, just want to reset the room you're listening to.
[00:23:51] E-comm weekly. Uh, we are talking about finding products and how to find products in the U S sourcing products in the west. Uh, if you like what you're hearing so far, and you want to hear more from the startup club. Click the green house. You get notifications. If you like what you're hearing, please click on the individual and follow us.
[00:24:12] Uh, okay. So Tom, welcome to the stage. Hi everybody. Did you receive my message, right? Both of you so way to find made in USA brands in the United States and also foreign made like China, Thailand, whatever Tokyo in United States. Problem, as you mentioned, it's now transportation takes like two, three months and some more, more brokers here or going there, the long run, going to be trade war between China and United States.
[00:24:47] So I believe so better. We can find in the United States is the right problem is where to find the warehouse or whatever. So I'm an owner from wholesale. Um, Tatra so we developing our app apt in that platform is coming very soon. I'll almost finished. So we looking for research. Thank you. Okay, Tom. So yeah, that's exactly it.
[00:25:18] When you start talking about. The extra 25%, uh, you know, costs a Trump tax that does add up, you have to have pay your HTF, uh, HTS. So your tariff taxes, uh, that's an add on, and you know, sometimes even outside of China, if you're not going to the U S right, there are alternative, uh, places right now that you can go to, uh, India, Vietnam.
[00:25:44] Uh, you can go and to south America, there's lots of different places, but the opportunity to come back. And create what I see as perceived value. So you, I feel that you, if you're, if you're dealing with somebody who's coming in with a $10, um, Chinese product, if you package the product properly and you send it out there, With the proper copy and the proper listing, um, and the consistency within the brand you'll have a much higher selling, uh, or procedures value.
[00:26:20] You'll get a higher price when you go out to market. Now, is that going to happen with every product? No, but okay. You can guarantee that anybody listening, um, if you're looking at a made in the USA product, right. I look at it as a higher perceived value. So also, um, warehousing costs, there's all sorts of fulfillment centers across Canada that do the three PL if you're selling on Walmart and doing fulfillment for them FBM over at, uh, for, for Amazon or, um, you know, you, I'm going to backtrack a bit.
[00:26:55] When you're coming in from China, a lot of people bring in full container loads. You can work out a production schedule with a us manufacturer, so you can buy less, but over more like over a monthly period, over a two month period and split the shipment over to your three PL and sending half the shipment over to Amazon, which will save you a ton of money.
[00:27:18] So one of the things that come up. All the time. Uh, we had it yesterday, uh, in our group, they were talking about inspections. You want to talk about that? Yeah, sure. Um, in the U S here, there are inspection companies, uh, decor they're called independent inspection agencies. Uh, so when you're Googling them or you're trying to find them, uh, that's what you should type in independent inspection agency in the U S uh, please had in the U S Dewey or in USA, uh, so that it doesn't give you a worldwide, uh, result.
[00:27:57] Some of them are SGA. See SGS is also in the us and they do inspection. They do factory artists. They do, they do all those things highest. So, uh, certification verification, uh, in the U S as well. One of them also is, uh, it's called pro QC pro QC international. So if you go to PR or qc.com, you're going to see them.
[00:28:19] That bunch of bunch of independent inspection agencies here in the us. Um, but, uh, one of caution, like norm, like you were saying about some of your customers are like, uh, uh, the U S factories are very, very protective, uh, of the, of the, of, of the IPS of their tech or their processes. They don't want people just coming in and looking to, they don't know if you're a competitor, they don't know if you're a spy, they don't know anything.
[00:28:45] So, you know, you gotta be careful with that. That's why the. I reluctant to just let anybody show up as an inspector, you have to come from an approved and, you know, generally known inspection agency company, uh, before they will let you into their factory. Another reason why is because some of these factories have hazard.
[00:29:07] Uh, uh, conditions or they have like some processes whereby no, just any Joe Smith can show up there. You have to be geared up in a certain way. You have to wear the proper clothing and stuff like that. So, uh, but you can set for independent inspection agencies. You can go to the pro QC, you can go to STS.
[00:29:27] Uh, they do have inspection here in the U S.
[00:29:33] One of the things we've talked about, uh, with UX action. Uh, the next, the next question people usually will ask is, well, how do I protect myself? How do I protect the product? Um, at least in China, when you're, when you use a inspection agency, if you fail, you've got something in writing that to either fix the problem, uh, or you, you know, the next step.
[00:29:56] And one of the things that you can do is first of all, you can have a production sample. And that production sample can be signed off on and you can stipulate that the production run has the manufacturer has to match this. Also, one of the things you want to build in to your PO is that, um, there's a defect, uh, ratio or a defect percentage.
[00:30:20] And if it goes over that, uh, defect, um, percentage what's going to happen. Can you get a credit, uh, and this is going to help protect yourself as well because in China, they're, you know, gazillion miles away. It's very hard to do it. So you're leaning on inspection company to do this. Other thing you want to make sure is, you know, is there any certification?
[00:30:43] See it, like, just ask them for it. And. Make sure that you, you just put all of this into your contract. So any of the, anything that you're, you're looking at the time, the lead time, uh, what happens if they don't meet the production? Uh, what happens if, if something, uh, let's say that there is a run and I've seen this happen where you've got a really quality product and in one run, um, they use, uh, An inferior product.
[00:31:15] Well, what happens? So I would build that in. So you can build that least, um, some foundation in case you have to go to court. I don't know if you have anything else to say to that, but you in America, you don't have to have that inspection company. It's it is a lot harder to say, uh, to a manufacturer. Oh yeah.
[00:31:34] We're going to have somebody come in and. Yes, you're right. I mean, the quality of product in the U S is generally a lot higher and when something goes wrong, uh, I mean, you don't really have to, uh, fight much, you know, they would just replace it for you. Uh, I remember starting out a brand several years ago, we started with, uh, some, uh, some US-made, uh, metal materials.
[00:32:03] Uh, and every time we had issues. Did you send us? You know, replacement immediately and they add in a noodle, few extra at no cost to us, they cover the cost of shipping. They cover everything. So, uh, you know, correcting mistakes or defect rates here is a lot lower and you don't have to, uh, have sleepless nights.
[00:32:26] You know, on, on getting your, you know, products replaced or compensated or whatever. Uh, I have some few tips here now, before we take more questions. So I don't want to forget, um, if you're selling on Amazon and you want to, you you're reaching out to a us factory. Uh, you don't need to send your Amazon link to them.
[00:32:49] Just send you a product specs or product photo, uh, product dimension. Because some, some of some, some factories here, you know, once they see how much you retail for them. You know, gang up the price on you or whatever, I've seen it happen before to me. So, uh, you gotta be careful with that unless you don't have any other option, uh, do not send your Amazon link to them because they see your products selling at 99 99.
[00:33:17] And you know, you make it, you know, you make this product in China for like eight bucks or 10 bucks. They'll be like, oh, that's a lot of margin. You know, we should be able to get a lot for this product. You know, us manufacturers do weed, but some, especially the smaller ones, uh, they might do it. So that's one team.
[00:33:34] And another team that has been really helpful to me is if you call a company, if you decide, if you find a company on YouTube, ThomasNet Google, whatever you call them. And they say, oh no, we don't make that kind of thing. Don't just hang up the phone while you have them on the phone, say, Hey, thank you so much.
[00:33:56] Do you know of any other factory or company that may be able to help me with these products? I did it like two weeks ago and the guy was willing. Yeah. You know, it gave me two major companies that could help me. It's like, oh yeah, they are bigger than us. Yeah. More of a manufacturer than us. So reach out to them, ask for this guy, tell them you, you, you know, we sent you from this company or whatever.
[00:34:21] They're willing to give you free information. You know, if they cannot help you, they will point you in the right direction on to who can help you. Uh, the top tip is the word customer. So when you're researching us manufacturing, are you all of a sudden in their profile? You see custom, well, custom could be good and could be bad in us manufacturing.
[00:34:48] The good side of custom, let's say they call themselves custom powder coating company or custom extrusion or custom finishing company. That means they own, they can only do small orders. They can only end a small order. So if you're doing a hundred pieces, 200 PCs, any factory that has the word custom in their profile or their description, or they pride themselves in doing custom made stuff would be your best bet.
[00:35:21] They will do low runs for you. They will do smaller. They'll do 50 units. You just want to prove a concept. You might want to go with them, but if you're already selling 2000, 10,000 units a month, a custom may not work for you. That means they're a small shop. You might want to look. Companies that have full manufacturing capacity or full factory.
[00:35:43] Those are the ones that can handle a lot of orders for you. Um, another thing is, uh, if you go to a factory and let's say you want to make a, a metal product and they say, oh, we can stop. We can do the metal. We can, we can, we can powder coat the metal for you, but we don't bake. We don't bend our metals, just say, okay, no problem.
[00:36:12] How go and find a factory that will do the bending. You do the powder coating. How about that? They'll say, oh yeah, we can do that. So you might have to work with more than one factory when you're dealing with us suppliers. It's okay. In China with do see a lot of factories that have everything in house.
[00:36:29] But in the U S I found that many us factories are very specialized and they're very rigid. They don't bend. They would not say, oh, let's try and see if we can do it. No, if they don't do that kind of process, they will not take your order. They will say we will only paint with painters. We will paint, or we have powder coaters we will powder coat.
[00:36:50] We are extrusion person. We will do. We will only cut metal and Polish. We don't pack. We don't, we don't do this. It's okay. Just find the ones that would do that or the piece that this are the factory's missing, or you can ask the factory and say, Hey, do you know of any factory that can do the bending for me, but oh yeah.
[00:37:10] Assist the factory or, you know, factory ABC about 10 miles down the road. They can do the bending and cutting. And we work with them all the time. They'll send it to us. Bingo. That's your answer, right?
[00:37:27] Perfect. I see Roz is up. Hi Roz. Hi norm. Hi F lobby. So nice to see you both here. I have a question about, um, manufacturing, something in the U S that would require a form, a custom formulation. So let's say, um, hypothetically, I'm gonna, I want to manufacture a cream for, um, your face or, or pet skin. And I call a company.
[00:38:02] Um, that does the manufacturing company that specializes in doing this. What I, what I file something to protect the confidentiality and the exclusivity of the formula. Before I asked them to do this work during the work afterwards. What, what, what, what sort of precautions, if any, what I need to take in that?
[00:38:33] That's a really good question, Roslyn. Very, very good. Um, I happen to know a lot of, uh, uh, uh, manufacturing or feeling in the cosmetics industry here in the U S uh, it's very tricky. So once you do, they will not sign any agreements to protect your formulary. That's the one thing I found out they will not do it.
[00:39:02] Um, so what you could do is you can find a mixer and you can find a feeler. It makes sense. You give the, you give the formulation to you can, the mixer is usually a smaller facility that they can sign some sort of documents to protect you because they know the process of mixing your ingredients in the right amount.
[00:39:25] And then the mixer would transfer drums and drums and drums of your, of your cream to the field. And what the field does is they just, you know, feel it into bottles and you can also private label it. Uh, so you might need two entities to get that done. Uh, and you know, because like in Syracuse, New York, I, I know some of these a lot.
[00:39:51] Cream, uh, manufacturing companies that the, they will not sign anything. Uh, you could probably get away with hacks, you know, letting them know they cannot sell these to other people, uh, which they might choose to obey or not. But, uh, in the cosmetic and topical industry, I found it in a heart in the hard way that they, they do not, they will not want to sign anything.
[00:40:21] Would what it protect me if I, well, I guess I couldn't do it. I was gonna, I was going to ask you, could I get, could I get some IP protection, but until it's formulated, I don't have anything to try to patent right. More. I mean, I couldn't do it anyhow at that point.
[00:40:42] Yeah. That would be, if you don't have. A product. Yeah, it would be tough to do. Yeah. What I, what I would probably do. I, I can't give legal advice and you know, you're a lawyer,
[00:41:06] talk to either, uh, you know, rich Goldstein or, uh, Yale Kimberly on that. Um, so you can get some advice on it. Um, I do know you want to. You you that protection, but you, you might want to end, end up entering it with a, you know, the old triple D um, uh, right. Fremont, right before you do anything. Okay. Yeah. I have an excellent, um, IP lawyer who I I'm pretty sure he wouldn't be able to do anything until it's ready to be trademarked.
[00:41:41] So by then, the cat's out of the bag, the horse has left the barn. So Roslyn. Um, another thing is that, and I found out in the, uh, cosmetics industry is they can easily reverse engineer your formulation. It's just a matter of time. Oh yeah. So, so bear that in mind, a very good in reverse in engineering stuff.
[00:42:03] That's why you have a lot of these companies out there that, you know, maybe they're selling on Amazon or wherever they're selling. They'll just take the pro they'll take the product, send it to the lab. Are some labs that specialize in reverse engineering stuff. So is it worth it to do this? Yes, of course,
[00:42:28] right. A nom nom would give more advice on the branding or your marketing. See, you could sell anything to anybody. If you have your branding and your marketing. Right. You know, so your cream, you know, you could, you could have the best cream in the world if you don't market and branded very well. It's not going to sell.
[00:42:47] I have to WASC crib. You can have the worst or decent cream and, uh, and you know, and it's selling like crazy because you, you know how to package it very well. Your packaging, your math, your marketing is so good. You know, norm will be the expert part. I'm aware because I bought some of that junk. Believe me.
[00:43:14] Okay, so thanks Roz for that. Uh, that question and thanks for answering it. No problem. All right, Tisha. Welcome to the stage. Hi. Hey everybody. How are you? Good. Good. Good. Thank you for bringing me up. Um, I was listening to Rosalyn's question and it caused me to think about my daughter's situation. So she is into the natural health care type stuff.
[00:43:49] Um, she makes her own body creams, bath salts, bath bombs, things like that. And I. Thinking or trying to help her figure out what would be the best course of action to be able to private label. She, she wants to keep it organic, where she makes everything herself, but to be able to produce her product on a mask.
[00:44:18] It would be impossible. So I don't, I don't know how to direct her or what to do and the places and the people that I've taught. I mean, not the places, but the people that I've tried to get a contact with that could point her in the right direction, what to do, where to go. Um, she's just not getting anywhere with it.
[00:44:42] Okay, so, uh, Tisha, thank you for that. Um, so when you have all natural products or all natural remedy, um, you might scale it in, in, in, in, in stages, right? You might talk to, you might want to talk to a smaller lab first. To take it to the next, to the level of doing, you know, 200 to 2000 units, right. That there are, there are some smaller labs.
[00:45:12] They respect confidentiality. They're willing to just help you produce it and mix it on a very small scale. They probably have the whole facility they have is probably 2000 square feet. It's very small. Right? You might do it. You might do it in stages. So tell that to. Little ones first. There are tons of them in Canada.
[00:45:33] Honestly, Canada is really big with all natural products. I give it to them. They're really good with that. So you might, you might look into Canada too, to go to this lab. They call it, they call them labs or formulation labs. So you would tell her to say, The ingredient list. Of course you should sign the agreement, you know, tell them to do an NDA before sending all that mixes.
[00:45:59] So she sent it to the smaller labs. The smaller labs will provide they'll produce in smaller quantities for her. And it's, you're selling if you're selling a lot or she wants to private label to other companies there, she she's going to look at coal packs. They call them co-packers. These are people that do like a 60, 70,000 units.
[00:46:24] Okay, so that's C O dash P a C K E R S. Co-packers exactly. So data, they are more geared to us. Some of them have the packaging done people in India, even in their, uh, in the facility, they can do your packaging. They can do your printing. They can do. The everything though, the pouring, the sealing, the capping, the shrink wrapping.
[00:46:50] They'll do everything, the whole process they do, but they will require, uh, a larger, uh, uh, quantity before you can get their attention. You may be, you may be talking, you know, five, 10,000 units. Then they want to talk to you. If you have anything less than that, you might not want to talk to you. That's why we have to use stuff.
[00:47:10] Phase like a smaller labs or smaller formulation labs and they might be a little bit more expensive. Maybe they can make a bottle for you for like who knows a, a $2. And when you get to the logical Packers, it may be a dollar 50. So you're going to save when you start getting into larger co-packers. Okay.
[00:47:31] Okay. That makes sense. So half our star check-in companies that. In Canada. Yes. Canada has a lot of the smaller, there are some in Florida as well. I mean, Florida, um, like Canada does have a lot of, uh, natural, organic, uh, labs, but yet right across the states as well. Uh, there's no shortage in them of them.
[00:47:58] Okay. All right. Um, can I ask one more question and I don't know if this is on topic or not, but, um, I'm helping, I'm a tax professional and I have a client who's trying to start a children's clothing, online clothing boutique, but it's, it's more of the, um, uh, off brand name brown. I don't know the exact term for it, but like if it's a fake Gucci or.
[00:48:24] Barberry or something like that. Um, they don't, it doesn't have the, the children's clothes don't have the actual logos on them, but they have like the Burberry pattern maybe, and she can't find any vendors like that.
[00:48:43] So we called those, uh, we call those replica. That's the word
[00:48:55] uh, it's a very gray line, uh, where you're doing replica, um, because the Barbary pattern is trademark, right. So you cannot make, you cannot successfully build a big business or scalable business in, or doing replica. It's just a matter of time. Uh, they will get to him or her. Uh, and, and there we studied down.
[00:49:22] There's a big task force in the, uh, is it the CCI or FBI? One of the two that are, uh, they're cracking down on. Uh, on replica because, uh, you know, the, the owners of the trademarks of filing complaints. So what they do is they will complain to the China's customs and the U S border protection. And when they see products that are replicates of any of these brands, they, they will shut it.
[00:49:53] So it's not a product that is sustainable and many factories or many manufacturers would not want to do it. It may be 10 years ago. They will do it, but now it's getting tighter. They might not want to do it. Tell her to create our own unit. No patterns and do it, you know, kind of do it the right way so that you can build a successful business.
[00:50:17] If not, she's just going to be looking behind her back all the time. You know, anytime somebody knocks on our door, she's like, you know, they come to, to grab me or whatever. That's just, that's just be my 2 cents. Okay. All right. And then do you have, or would you be able to point me in the right direction so I can tell her.
[00:50:36] Reputable vendors for children's clothing. Like just regular, not replica type clothes. She won. She wanted to buy it in the us, or she wants to import it from China. I don't think it really matters at this point. Well, uh, you know, she could start on AliExpress, uh, because I'm, I'm guessing she just wants to buy maybe two pieces or three pieces of different styles just to start.
[00:51:01] So AliExpress would be. Uh, or wish.com highly express or wish.com would be the best place to start with very little quantity until she grows it a little bit. Then she can gravitate more to Alibaba and then she reaches out to them. Okay. Thank y'all so much. I appreciate your help. You're welcome. No problem at all.
[00:51:27] Okay. So I think that wraps it up. For this session, I will be back next week. Next Thursday on e-com a weekly. And we're going to be talking about content, content, marketing, how to drive external traffic to your site, how it can affect your SEO. And our guests will be Shane aglow from PR reach. If you like what you heard, , in the room today also, uh, startup club has a variety of other entrepreneurial driven, uh, topics and rules. All the time.
[00:52:00] All right, everybody. So we will see you next week at the same time Thursday at one. O'clock
Sourcing in the USA | Ecom Weekly
September 21, 2021
eCommerce Accounting | Ecom Weekly
[00:00:00] Uh, welcome to the Thursday session of e-com weekly. We're going to be talking about a really cool topic and that's going to be e-commerce accounting in a, why is it so important? And what's the differences, you know, how can we be become better sellers and have better?
[00:00:33] Uh, operations, just understanding e-com accounting. And I've got a couple of experts that I'm going to introduce in a second, but anyways, my name is norm Ferrara and I have a podcast called lunch with norm and the Amazon FBA and econ podcasts that happens every Monday, Wednesday, and Friday. Um, today we're going to get.
[00:00:54] Um, like I said, with the accounting, uh, e-commerce accounting explain, which is different than a normal setup that we would do. The room will be recorded. If you do want to ask or come up on stage, raise your hand. If you don't want to be recorded, uh, don't raise your hand. Uh, we also want to provide just quality content.
[00:01:14] That's what this is all about. We're not pitching anybody. Content. So if you do come up on stage, please no pitches and the courses, uh, were pretty good on the mute button. And finally, I just wanted to thank start-up club for allowing us to have this room. And, uh, if you do want to hear it, Great entrepreneurial or attend other great entrepreneurial rooms.
[00:01:39] Make sure that you click the green house up on the top left. Um, I'm showing that I have a poor signal. I hoping everything. Everybody can hear me. Okay. Uh, now that's it. We can get into the topic today and introduced our guests, Lil little Roberts. How are you? Doing awesome. Norm, super excited to be here with everyone.
[00:02:00] Uh, we just love e-comm as you know, we were at prosper together and e-comm businesses are the future, right. And the future is here. Absolutely e-com is exploding. And you know, one thing I do want to attack. Focuses. There's so many people out there, uh, leaning against Lamborghinis and flashing cash. And you know, that's, that's not the case.
[00:02:24] There might be the odd person that's doing it, but for the most part, it doesn't work that way. We have to act like a business. We build it like a business and you know, we, for me, I love building brands, but e-com is completely different. If you're building an e-com business or an Amazon business, you might find out.
[00:02:43] Well, I can tell you this for a fact that if you just go to a typical accountant and you try to sh uh, to tell them that you're an Amazon seller, they're going to look at you. Like you're there, you're in a headlights. So, um, that's why I think it was so important that I bring a little on and, uh, Lewis, who's going to be talking about tax a little bit later on.
[00:03:05] Where do you want to start? Well, you know, I guess let's start with the basics, right? And Norma, I'm a hundred percent with you. We're not here looking for customers. Obviously, if anybody wants to become a customer, we love that, but we're here because we have a passion and the love for small businesses.
[00:03:20] And you know, I'm with you. Uh, as you know, my background, I'm not a CPA. Lewis's a CPA is a forensic CPA. The w when it comes to the traditional industry, understanding e-com, it's very difficult because it's like no other business. Um, there's a lot of nuances to e-comm, that's different than doing bookkeeping and tax for regular, everyday businesses.
[00:03:45] So I guess I'd like to start with the foundation and the foundation is that. Really you want to make sure that you're with the right entity, that you've signed your business up as the right entity. So if I give a high level of, of it, you know, let's talk about this over the next 20, 30 minutes. We're going to talk about the right entity for your business.
[00:04:07] Then once you're in the right entity, That it is really important to do monthly bookkeeping. And then what tools do you need to use? What's the financial tech stack. And then from there, we'll get into the fun part of how do you maximize tax savings. And that's where Louis is going to get a lot of great information.
[00:04:23] Um, does that sound good? Sounds fantastic. You know, one of the things like accounting for most people, it's like, oh my gosh, it's pulling teeth. You know, for some people a little, I don't want to say, you know, for everybody, but this is definitely a room that you want to hear because these tips will save you time and money.
[00:04:44] So let's get going with just the basics. Okay. So the basics are. As a business owner, you need to sign up, what's called, uh, an entity type for your business. And then the tax type is different than the entity type. And so I'm going to, uh, Louis and I will we'll share about it. You know, most people you don't necessarily want to just be a DBA or a sole proprietor.
[00:05:07] You want to have some type of liability, right? Lewis. You want to be, uh, an LLC, an LLC, which is going to be your entity type. And then when you're an LLC, You can be a different tax type. You know, if you don't choose a different tax type as an LLC, you could be a single member LLC, which means you're going to be a, a schedule C on your tax return, or you can file to become an S election.
[00:05:31] Now, Louis, what's the benefit of an S selection. At what point in profits, should they be an S selection versus just a straight LLC? Well, the problem with the amount of the problem, but the. Disadvantage of being a schedule C filer is that line 31 th at your total net income, you're paying some Plymouth tax 15.3% on line 31.
[00:05:54] However, if you're an LLC, you have the flexibility to elect, to be taxed as an S-corp, where then you can then further elect to only take a salary of like say 45% of your net income. And so then you pay someone to tax on that. So let's break that into layman terms, right? Cause they're not gonna know like line 31.
[00:06:15] Perfect. So you have a hundred thousand dollars of net income as a schedule C filer, you're paying $15,300 in self-employment tax, social security, social security, Medicare. If you're a schedule, if you elect to be taxed as an S-corp, you only have to do. That some limited tax or employment taxes on half of your income, or we'd like to say about 45% of your net income.
[00:06:40] So let's do the math if we can. Right. So the mass would be 45,000 would be your salary because the IRS is looking for what's called reasonable salary, right? So they pay themselves 45 grand instead of a hundred. And now they only have to pay. So that 15% on 51,500, about about 6,500. So now they're paying social security.
[00:07:01] So, so everybody has pissed off security, but when you're an employer, self-employed, you're paying for the other side of the social security, the employers. So now they're only got. 6,500 versus 15 for versus 15,000. And then, but, but now what do they do with that other 55 grand in profit that they want to put in their pocket?
[00:07:21] They'd take that as what, right? It's just a very informal distribution from income or just corporate distributions. You can just take that. Uh, checked, you can take a wire transfer, you can pay personal expenses from that and just classify it as a, as a distribution. And then, so they're still going to be liable for income tax.
[00:07:42] But what we're saying is social security. So norm did that come across as layman terms that are you following? What, what we mean. I think so, but if anybody does have a question about this, please raise your hand. Okay. So, so entity type first and foremost. So some people now we may have some people on right now that maybe are foreign entities, right.
[00:08:05] And if they're a foreign entity and they want to see. Amazon in the U S so for them, their tax type typically is a C corporation because they need a tax, a taxpayer ID number. If they have a taxpayer ID number, or if they're American and they have a social security number, then they would take the SLS.
[00:08:26] Okay. So the only caveat is if we have foreign, uh, people that live abroad that are not us citizens, that they, that their entity type, they want to, they want to chat with us about their entity type. You know, they want to be an LLC, but then the type of tax return, they file. Structure of your entity type and what tax return type you choose.
[00:08:49] Two separate things are super important to the foundation of your business. Now, do we have anyone raising their hands that need any clarification on that? And if not, we'll move right into bookkeeping and texts. I do not see anybody's to let's just keep moving. You got it. All right. Great. So now the next area is, you know, the next part of your foundation is monthly financials.
[00:09:11] And so you want to do monthly bookkeeping, whether you do it, or you use a company like us, that's online bookkeeping, or if you can find, you know, uh, uh, traditional that understands e-commerce, but whichever way it is an investor. In your financial, uh, uh, your, your, your financial security, safety compliance, all of it.
[00:09:31] You need monthly bookkeeping. Don't wait till the end of the year to try to do your books because you're gonna miss out on valuable, uh, tax savings that you can have. Right. W to do mostly bookkeeping needs to be done in one of two programs. It needs to be done in either QuickBooks online or zero. We work with both, but we have a preference for zero with e-comm companies.
[00:09:55] And I'll tell you why e-comm companies have a rather robust tech stack. So you may be on Amazon. You may be on Shopify. If you're on Amazon, you may integrate with and those different software packages. That you may be using to run the revenue side of your business. You're going to want them to integrate directly with the tool.
[00:10:17] So QBO and zero are just tools. No different than if you want to, you know, do some renovations around the house and you have a saw and a hammer. Uh, if you're not a carbon. The work is not going to be as good. Right? And so it's the same thing. If you want the best quality accounting work, you want to use trained professionals that use those same tools, but you by all means can do it, you know, do it yourself and use.
[00:10:41] So be sure that you either have zero or QBO, don't go with fresh books or wave or any of them. You, you know, you have an Amazon business, you have a Shopify business. E-comm, it's going to grow. It's going to get big and you need to, from the beginning, have the right tools. Most people, when they come to us have been, you know, really just running their business by looking at the revenue numbers in their app from seller central or from Shopify, you're leaving money on the table.
[00:11:09] So foundation. Monthly bookkeeping. Now, why is it important to do monthly? Because monthly is what gives you a snapshot of your business, your sales, when you're doing sales are done monthly, right? So you want to know what your monthly revenue against your monthly expenses. Maybe you have a physical location.
[00:11:30] If you do. You're paying rent, rent, monthly, you have insurance, you have communication phone. So you want to know. Are you profitable each month, correct? Louis? Yes. Very important. Yep. And then, so from that, when you now, well, we'll get into a couple of texts, tips around this. So say somebody is, um, running an e-comm, right.
[00:11:50] We have tons of e-commerce. So they're making a hundred grand a month, right. And profit. Um, and then it gets to be. But I don't know. Oh, October, November, December, what kind of tax tips are you giving them in those months to help them minimize their tax burden, their income tax burden? What do you say until that they need to be doing right?
[00:12:10] So, first of all, you want to make sure that you're paying estimated taxes are also at the end of the year, you're going to get this big, huge tax bill, and you're going to be shocked, but ways to minimize your taxes would be to, um, to make sure that you account for all your expenses. A lot of. E-commerce small business owners forget that money they spend out of their pocket cash or on their personal credit.
[00:12:34] Might not hit the business bank account. So whoever's doing the books might not know about those expenses. You want to keep track of all of those expenses. So you can add them to your books at the end of the year. Very important, because you can leave money on the table and your car payment, but yeah, auto, every business needs an auto.
[00:12:53] So whether you have the auto actually on the business's books to use to appreciation, or you just use the mileage. You know, however many miles you drive times the standard mileage rate, 56 cents for 2021, either way. You want to make sure you account for mileage, mileage or a vehicle cause every business has to have a vehicle.
[00:13:15] The other thing is you want to make sure you take advantage of retirement savings, whether you have a SEP IRA or, you know, you just, you, you contribute money to a traditional IRA either way. You only. On the table there, uh, other things prepays, prepaid, prepaid expenses. You could buy, buy inventory up upfront because you can get attached to deduction for that in the current year, even though you don't sell it until January, February of.
[00:13:46] So let's break that down a little bit. So it's October, they're getting ready for the holiday season. They've got a hundred grand of profit on the book. Um, so what you're saying is buy, buy all the inventory they need. And instead of putting it over 30, 60, 90 days, Paid in full before the end of the year.
[00:14:05] So by paying it in full before the end of the year, it will go against their profit for this year. Now they're going to have the same problem next year. Right. And it'll be a bigger problem, but you kick the can down the road because now you use say you have a, a so business that we're talking about a hundred grand a month, 1.2 million profit a year, pay themselves say 80 grand a year.
[00:14:28] They've got a pretty big number. Of of profit that they got to pay. So more likely they're going to be paying 35% of that to the government. So if they spend another $200,000 in inventory that they prepaid, no one that that's, what's going to take them through to say January or February provided the inventory, doesn't get stale or old.
[00:14:49] Um, then they're going to take that 200,000 right off and that 30% or 35%, 60, 70,000. Was money. They would have been paying uncle Sam that's instead an inventory for them to make money on that's Dutch, an investment. I like that. Yeah. You're investing in the business, the norm. Any questions around that?
[00:15:12] I'll put it out there. Does anybody have any questions so far?
[00:15:19] And Lou I'll let you know if I see a hand rail. Okay. Fantastic. Fantastic. So, you know, prepays, uh, right entity. Um, the other thing is that a lot of e-com, there's a lot of expenses. For like marketing and advertising. So get with your broker and ask them if they could, pre-pay some marketing or advertising that we have a few I've ran into that quite a few times this past year, where are one of our customers wanted to pre-pay instead of, is it okay?
[00:15:52] Of course. That's a benefit to you prepay it. You put it on the expense for the current year and you can use, you can use those credits next year. Any expense run that you have tried. Which is awesome. And then those you want to do really, as you get into October, November, and December, right. Um, and when's a good time Louis that they should be looking at profitability and tax savings.
[00:16:16] Is it something they should do quarterly to best practice? Like, you know, see how they're trending? Cause you know, a lot of e-comm, as we know, businesses make the bulk of their money and the fourth quarter of the year, And so, but, but do you say at what level your businesses, should you be looking at talking tax strategy quarterly?
[00:16:35] Is it if you have a hundred thousand of profit, 200,000 in profit? I mean, I don't really think that there's a number. I think that once you're profitable, you want to talk with a tax professional, quarterly, at least to make sure that, you know, Where, your way you stay, where you are and how much tax you may owe.
[00:16:55] So you can put money aside. I know, certainly once you get it to the large numbers, 50,000, a quarter, a hundred thousand, a quarter, a hundred thousand a month, you definitely want to make sure that you screen it through a tax professional. So you can put aside the right amount of money and you can pay into the IRS or paying it to the state.
[00:17:10] So you don't end up at the end of the year with a half million dollar tax bill and end up paying $30,000 in interest and penalties, which is crazy. Okay. So. Yeah, sorry to interrupt, but we do have a question, uh, Katherine, welcome to the stage. Thanks. Um, so yeah. Cool question here. And I, um, uh, just to start, I am an accountant too, and so I'm just wanted to make sure I was understanding this correctly.
[00:17:40] Um, so given that it's a PR we're prepaying inventory, correct. Um, and when you. Be able to match the expenses with the revenue when they're generated, which are going to be like, you know, for example, the next year. But so what you're saying here is although we're prepaying, um, we can still deduct that entire amount right now, um, on the current year tax return.
[00:18:03] I just want to make sure I understood that correctly. Right. I think what you're talking about is accrual based accounting and the tax rule of most small businesses file. Cash basis. So if you spend the money, whatever period you spend, the money you can claim attached to that. And I think is it, is it 5 million or has that number been increased?
[00:18:25] That if you do it's 25 million now, so Katherine, if you're twenty-five million and lower, you could take advantage of the cash basis. Oh, really? Okay. Awesome. Thank you. That's helpful. Yeah. Yeah. It used to be 5 million and they increased it to 25 million. Yeah. And, uh, yeah, 2016, 17 yet, and a huge benefit for small businesses.
[00:18:49] So what we're talking about with Catherine for those in the room is that it used to be that you really got taxed on your inventory, right? And, and that is if you're under 25 million in gross revenue, that won't happen. You can do it as a cash basis. That's super helpful. Thank you. Good. Hope we save some money.
[00:19:11] Yep for my startups. Thanks. Oh, awesome. Awesome. All right. Any other questions? Uh, not at this time, we could just continue on, I've got to ask me to in a, in a couple of minutes, but, uh, yeah, just you're on a roll. So just go for it. Thanks norm. So, well, well actually, you know, that, that's the main part. I mean, there's some other things that you can do, but you need to really find, uh, uh, tax.
[00:19:45] I think so, you know, if you have a website besides what you have on Amazon. So if you're, uh, a private label product and you also have your regular website, you know, you may have an about us page. And if you have an about us page and you happen to have a couple of kids, you could certainly pay your kid's modeling fees, just be sure that you capture those pictures and you change them quarterly, and you can pay your kids up to what 6,000.
[00:20:10] 12 12, 12, each kid, 12,000 term change. Wow. And then they don't have to pay taxes. Well, it's kind of, sort of, yes and no, because if they, if they make $12,000, then the parents can't claim them as, uh, as the childcare deductions. So there's the ins and outs of a, is it a good day is a bad idea. Right? So if you're a higher income, And the tax brackets are much different than what you, your kids pay.
[00:20:41] Then you pay say 15% as opposed to 35%. Absolutely beneficial to parents, to your kids, tax arbitrage, just like econ me e-comm arbitrage, it's tax arbitrage. Right? So, so that's an area that, you know, speak with your tax professional, um, about, but there could be some, some savings there. Uh, of course all the standard stuff, like every bit of travel you do, uh, should be.
[00:21:08] Captured, um, my mileage on the cars, a lot of people, we find that a lot of e-comm businesses miss out on that, because they don't think about that, but yet they're running errands for the business and they, by all means have to capture that. And that's a big number at the end of the year. Right. You're paying wear and tear gas and all those things.
[00:21:27] Um, norm we've got about eight minutes left, so let's turn it over to you for some of the questions that you may have. Sure. So one of the things that, uh, actually we're talking about right now, The importance of being able to combine either a bookkeeper, um, a tax consultant, a CPA, you know, I've made that mistake in the past where I basically, when I had a small business, I just went to my book.
[00:21:53] My bookkeeper was my accountant and there are definitely. Advantages. I know that there's a lot of people out there that say, oh, especially a small business. It's so expensive. I'm just going to go to, you know, buy around the corner from me or, um, I'll just do it myself. And I can't stress enough that the bookkeeper, the CPA and the person who you're dealing with tax, if you can, first of all, use all three and if they are all in the same firm, even better.
[00:22:29] So I do, I like I'm a hypocrite here. But I do have a couple of businesses, but one uses a bookkeeper. And then the firm that I use are together. There's a tax consultant as well as a, uh, an accountant there and I'm from Canada. So, um, yeah, that could, that could save you a ton of money. Yeah, definitely. I mean, you know, you want to have it all under one roof because we see this all the time.
[00:22:57] We see where, um, some, because we bring on customers maybe, you know, halfway through the year and they've had books done somewhere else. Or we look at last year's tax return versus this year's tax return. And we see where they left money on the table. Of course we could file an amendment to get that back form, but it, it happens all the time.
[00:23:17] Uh, bookkeeping is very different than tax bookkeeping is a report card for what happened last month. And so in bookkeeping, you want to understand your cost of goods. You want to understand what all your expenses are. So you're not looking to, um, uh, I'm going to say this and Lewis was sitting across from me for, so hopefully he doesn't hit me.
[00:23:39] Um, you know, when you're doing taxes, you're looking to hide everything right. When you're doing your bookkeeping, you don't want to hide anything because you. Be able to understand what's going on. So then you can cut points off of your cost of goods and you can trim your expenses to make yourself more profitable.
[00:23:55] So bookkeeping, you want to see the profit. You want to see where you're leaving money on the table. You want to be able to understand how you can be better and do better month over month that's bookkeeping. Then when you get to tax time taxes, it rolls all those expenses up into just a few categories and tax time.
[00:24:16] All about, and I watched this over and over how Louis saves people thousands upon thousands upon thousands of dollars and that, and so at tax time, you're taking that bookkeeping and you're really, you know, bucketizing it. And you're looking for ways to save taxes, correct. Louis, you want to try and find the waste to take advantage of the generous deductions that the IRS allows you to take.
[00:24:41] You want to take advantage of the tax code to your back. No, no, no. I understand those of you guys listening out there, hearing a CPA, say that you want to take advantage of generous tax deductions is not normally the norm in the CPA industry, but we love saving small business owners, taxes and, and Louis and his team of tax professionals all feel the same way.
[00:25:05] How do you maximize those tax savings? He, he reads the, uh, tax regs for enjoyment. So. You definitely want a good point norm. You want to have it all under one roof because then somebody could walk just across the hallway there and say, Hey, what's going on with this particular customer's account? Uh, wa you know, what are these deductions?
[00:25:26] What are those? And figure out how to best maximize them. If you're just delivering to a CPA at the end of the year, um, buckets, they're just going to put those buckets on a form, and they're not going to worry about saving. You know, uh, my last point, I know that you, you both have to run, but my last point is all the entrepreneurs or the people that are getting into online selling.
[00:25:48] And maybe this is your first business. The most important thing you can do. And I stress you have to do this. It might sound like it's a pain in the butt, but get to know at least the minimal amount you need to know about accounting, uh, like financial statements learn, like there's tons of courses out there.
[00:26:08] They're not expensive. They don't have to be dry, but, and you don't have to have. You know, uh, you don't have to become a CPA, but know the minimum, understand what you're reading those three reports at the end of the day, and you know, just your PNL, your balance sheet and what a lot of people don't look at is their cashflow report.
[00:26:31] You want to that'll be our last, uh, Points of the day. Yeah. Cashless. So great point norm and, um, cash flow is much different than profit. And so if you think about it, uh, cashflow is, is water running out of this? Right. And profit is what's left in the bucket after you washed the car and you need cashflow, you need that running water.
[00:26:58] It's the oxygen of your business. And you need to understand how that money is flowing in and out, uh, through your business to be able to invest, to buy more inventory. So as your business grows, you actually become cash starved. Uh, and. You know, I'll, I'll, I'll plug sellers funding. Cause they just got that huge funding yesterday, right.
[00:27:20] To, uh, to help fund, uh, uh, econ businesses. So when you understand your cashflow and you understand your profitability magic happens. If so, what do I mean by that? So if you're running a 20% profit and to keep the numbers simple, so you you're, you've got a hundred thousand dollars a month in sales. And 20,000 is hitting the bottom line after you pay all your expenses and you buy your product.
[00:27:49] So now that 20 grand. So now what you should be thinking as a small business owner is you should be thinking, okay, how do I get my sales to 200,000 a month? So 40,000 hits the bottom line. And the only way to do that is you've got to have that oxygen. You got to have that cashflow to buy more inventory and to do more marketing, to get more sales.
[00:28:08] Now, of course there has to be demand for the product. You can't just go out and buy the more inventory. If there's not demand for the product, it's all a balancing act. So when that happens and you say, okay, so I'm making 20% profit. If it costs me 2% to borrow this money for the month, but I'm going to make 20%, then I'm.
[00:28:26] 18% ahead. And you got, it's a, it's a fine dance. And you got to have your numbers to understand that if you don't have your bookkeeping done monthly, you have no way to know, because what you're doing is you're looking at how much money is left in your bank and the money that's in your bank is not profit.
[00:28:44] The money in your bank has cast. Very good. Now, again, it's 1230. Uh, you want to let people know how to get ahold of you if they're interested. Yeah. Awesome. Thank you norm it's 1230 Austin time, right? One 30 east coast, uh, and 10 30 on California. So, um, Th the we're a@dodotcomxendoodotcomanddo.com. And you can reach out if you'd like to info@zehnder.com and that email will get to Louis or myself, just say, just referenced Louis or Lil Lal, uh, or you could reach out to sales as nd.com.
[00:29:23] We also do free consults. So you could talk to some of our customer success team. And if you go to our website, um, you can schedule on their 15. Consult and, or live chat in and, and look, you know, it kudos to all of you that are listening in today. Uh, you're in the most amazing business that there is, and that is only growing and, and changing the world.
[00:29:46] So super happy to be on today, norm, you know, you're, you're one of my favorites and, uh, thank you so much for having us on welcome. I can't wait. Okay everybody. Well, thank you for joining. If you loved what you heard from a little and Louis today, make sure that you're following. Uh, and if you like startup room or startup club, please click the green button.
[00:30:12] We're going to be back every Thursday at one o'clock Eastern standard time. We've got a great topic next week. We're going to be talking to Elaine Saras. Who is she? She is a defense attorney and she's going to be coming and talking about how. She built up her e-commerce business and basically left to, um, to have some incredible success.
[00:30:35] So that's it for us today and look forward to seeing you next Thursday at one o'clock.
eCommerce Accounting | Ecom Weekly
September 16, 2021
Content Marketing | Ecom Weekly
[00:00:00] Okay. So just a, a few housekeeping things before we get started, uh, just to introduce myself, my name is norm Farrar. I have a podcast called lunch with norm, uh, the Amazon FBA and e-commerce podcasts, which runs every Monday, Wednesday, Friday. And we just cover a lot of different topics to make e-commerce sellers better sellers today.
[00:00:35] Uh, we've got one of my podcast guests and the business partner, uh, Shane aglow. Uh, but before we get into the topic today, uh, I just wanted to mention a few things that the room is being recorded. So if you have a question and we want questions, we want to. Please just raise your hand and we'll bring you up on stage.
[00:00:55] Uh, if you don't want to be recorded, don't raise your hand. And we only, we're trying to provide strictly just content, content, content, and more content. So we really don't want to see any pitches up here. If you do have come up and are, um, asking any questions. Um, if you do, I know Rochelle's pretty quick on the mute button.
[00:01:15] Okay. And, uh, so today, We are going to be hearing from Shane Ogle. As I mentioned, he's my partner over at PR reach. I just want to be completely transparent on that. Um, and he's going to be talking about content marketing strategies. Now content marketing is an incredible way to market your business, to become more of an authority.
[00:01:40] And we have to remember that authority. Equals trust and trust equals sales. So it will be talking about what the, what con what is content marketing, the types of content marketing, who should use it, um, how to properly use it and what to expect, what type of ROI should you expect? Long-term term short-term.
[00:02:00] And one of the things, if you like, what you hear. Make sure you go to the top left, click up club, the little green house, and you'll get different notifications from startup club. And if you like what you hear from the speakers today, you can click on the speaker and follow them and ring that bell. So you get notifications.
[00:02:20] All right. With that being said, woo. All right, done. Now he can get into that. Okay, Shane, how are you, sir? I am pretty good. Thank you very much. Uh, it's evening for me here. So, uh, yeah, and the end of a long, a long day, but it's all good. Yeah, I'm great. Very good. So Shane Shane lives in Andorra, and if you don't know where that is, look it up.
[00:02:45] I never heard it was somewhere in Europe, somewhere on some mountaintop. Uh, Shane just explain, uh, who you are, what you do. Sure. So as norm said, I mean, we're, we're partners over at PR reach, but we've been both couldn't e-comm for a long time. Um, I guess I started my first private label prints or 2012 or 2013, something like that.
[00:03:07] Uh, Norm's obviously been at it longer than I am because he's just so, so much older, but. Um, I trained a lot of people. I've done a lot of courses and mentoring and all kinds of stuff, mostly around the Amazon space. And then I joined norm over PR reach where we do a lot of content on, uh, press releases and written content and media and public relations and all that good stuff.
[00:03:34] I think that, uh, everything we do and I, I guess I'll just say this, we don't really just focus necessarily on Amazon. So as we used to, uh, because e-commerce is so broad and we probably all know the ups and downs with Amazon, it's a great place. It's a wonderful opportunity. But it's not the only opportunity.
[00:03:54] And, um, we're, we're big proponents of, uh, diversify and not re re uh, relying on one platform to drive all our income and content is a great way to spread your message, great gain awareness across all different types of, of, uh, demographics and markets. So, uh, that's briefly. Yeah. You know, when people talk about content marketer to be very diverse.
[00:04:23] And so, first of all, let's get into that. What is content? Right? Well, I mean, that's a pretty, here's the problem too. As we start talking about content marketing, there's like a hundred different rabbit holes we can go down. So I tend a broad topic like this. I tend to drift off and go different directions, but content marketing is really just.
[00:04:46] Putting out that content, whether it's videos or blogs or press releases, uh, social postings, uh, media, it can be really all encompassing. And I think that the one mistake people do, and I think I made this mistake too way back in the days is you think you have to do it all. You don't have to do it all as long as you're putting it up.
[00:05:08] Um, decent quality content. Now, the days of keyword stuffing and just, you know, fluff or are long, long gone, um, putting out decent stuff that people actually want to read or listen to whatever. Um, I think that's a very, very important. And as you said, Whether you're using content, whether it's a third party talking about you, that's the type of content you're getting trust.
[00:05:30] You're being authority in your perceived value of you and your services or your products goes up. And that means higher conversion rates. That means you could hard charge, higher prices. You're a bit more recession proof. You can build your list faster. I mean, there's a whole list of things that, that will cascade.
[00:05:47] Once you start building. And, you know, I think we both know tons of businesses to literally built their business on content marketing alone. They weren't running PPC. They weren't, they were doing all the things. They just focused on content marketing and that's it. So it's a very powerful tool. And I think it's a really necessary thing.
[00:06:05] The one thing I just want to say is you don't have to do it all at once. Just focus on maybe what you're good at. What's closest to you build that out and then slowly start to expand. So, you know, when I think of kind of, you said it was very broad and 100% agree with that, but let's go through some of the different types.
[00:06:24] So when I think of content marketing, I think of maybe an article, an article on, right. So let's talk about that. The article, uh, what types of articles can we get into that and show how you can become an authority just by putting content on your website. Yeah. I mean, you know, you can, you can publish a blog.
[00:06:47] Um, and that's, this is a great starting point because here we can start to branch out and do different things all from a simple, simple piece of content. You can eventually do things like have guest bloggers every now and then come in and get some nice links from other people and get introduced to a new audience.
[00:07:04] But, um, let's say you have. Wonderful. Great. What you can then do is you can do things like syndicate that blog, because here's a problem. Let's say you've got your brand new Shopify website and your brand new business, and you're just so eager to get started. And you're putting out a blog once a month.
[00:07:21] Okay. That's not very much you're doing that. The problem is, is it's going to take you some time. I mean, this isn't magic, right? Is it gonna show up on Google right away, probable or not? Yeah, month after month after month, you keep at it. It will start to have an effect, but it's a slow process, but we've got all kinds of ways of accelerating that.
[00:07:41] And that's, that's the good news and that's sort of what we do. Um, and there's a lot of things you can do. So first of all, you can syndicate that content. And what that means is you can come to a. We do. And there's other people that do it as well, and they take your piece of content and they push it out to different media sites.
[00:07:59] So, boom, overnight now you're on 200 different media sites, for example, getting backlinks from those sites to your website, which helps for SEO and SERP results. Great. You're getting that content right. You know, potentially millions of people who are getting some Google love. Wonderful. That that's a great first start and it's not an expensive too.
[00:08:18] It's not expensive. Not that that's the nice thing about it. Uh, I think a lot of people don't know about it, but, uh, um, it's, it's, it's a wonderful thing. So there we go. There's one little thing you can do. The next thing you can do is you can. Press releases. So if you put out a press release, which is basically, uh, an article written in a very strict, uh, press format that gets pushed out to a distribution network first, similar to how syndication works, but these are only news networks.
[00:08:47] And. It goes out on the internet. You get some, uh, you know, some Google love for it, but the links from that press release are pointing back to your blog, helping push that up. And what that does is that pushes your blog or any anywhere you said you can send those links to, um, you know, an Instagram post.
[00:09:06] You can send those links. And we often do. We will almost always diversify them because only a pattern for Google. But if you send that links back to your blog, wonderful, that'll help push your blog up. And your blog over time will start to become a traffic driver. Now, the other wonderful thing you can do with Tableau let's lesson, you're just doing those two things.
[00:09:24] So there's more we can do. That's great. The other thing you can do is update your blog every now and then maybe every month or every three months or every six months, add in, you know, 2, 3, 400 words to that, update it, you know, new for 20, 22 or whatever you happen to be doing. Keep it relevant. Google will come back and crawl it and keep it relevant.
[00:09:43] Right. Wonderful. So you can do those two things. And the same with video too, let's say then you put out a YouTube video. Great. How'd that? YouTube? It. Link back to your blog. I'll put a blog into your, uh, put a link into your blog. Add that into your YouTube video. Do press releases on that. So the links over to YouTube and you slowly will start to create like a spider web.
[00:10:06] I mean, this isn't anything new or, or, or overly revolutionary. But people just don't do it, even though people know about it, they don't do it again. You go back to that situation. We've got your brand new Shopify account, new brand new blog, and you're, you're just super happy. If you're putting out one blog a month, it's going to take you a long time.
[00:10:26] These are ways you can really hyper accelerate that process. Get that content, ranking it in front of people's eyeballs, which is what you need to start getting a little bit more traffic and start testing out your conversion rates and start to see some results. From that content. And just like when you're starting social media, for example, everybody's gung ho.
[00:10:46] They see, oh man, it takes so long to get engagement or build an audience and people get frustrated and they give up same thing with blogs. I mean, one blog a month. Isn't very much, uh, ideally we'll be doing more, but it's a great place to start, you know? And like I said, don't always think that you have to do everything at once.
[00:11:03] You don't get better off just to do one thing, do it well, and then start to add to it or start to create that space. As I mentioned, you know, uh, if you want to see some success, like just take a look. Um, just research Dr. Axe, Dr. Axe, uh, had the website started out strictly content, only content, and it ended up selling, I think it was between one and $4 billion.
[00:11:31] And now it's just a powerhouse. It's selling all sorts of different things, but it was all built on. And in the very short term, and I've seen this where you, you, you create content about five interesting facts about, and then you write a newsworthy, uh, press release with a different type of title. Now, the reason why this is so important is the newsworthy press release.
[00:11:55] That's going out, you're spinning in your own words, what you want people to hear, right? It's whatever you want people to hear about benefits features a product line. Um, maybe research that you found out in event that you had, then that links to your blog article, which is going to be, um, something that people are going to read a lot more.
[00:12:18] Keeping in mind that if you embed a photograph or if you embed a video, people are going to also be on that page wanting to listen to the video and that video. So I don't want to be. I don't want to cause any confusion here, but when you create that very simple video on YouTube, it could be a talking head.
[00:12:41] You can easily get somebody to do it. You can do it yourself, and you can take that transcript. And put it onto YouTube and now you're getting search results from that as well. So you're getting search optimization from YouTube, which is embedded in your blog article. And you've probably seen that. And also, uh, there's the, the, um, I call it the answer box, but people also, uh, what does it say?
[00:13:06] People also refer, um, you'll see the four or five questions that, uh, that Google has. If you create a list of questions, uh, you can also get some ranking juice there. And I want to give, just to give you an idea on either the blog article or the press release, how much power it does have forget about YouTube.
[00:13:28] Just those two right now, if you send a Cate, uh, or if it's set up properly, uh, we've had instances where we've seen. Uh, uh, an article go out or press release, go out within one day. Uh, you have, depending on the combination of keywords, 400 plus keywords that are optimized overnight, uh, 170. This is when we just did 179.
[00:13:52] Where on page one of Google and 100. 31 we're number one. Now some of them were horrible, horrible, horrible long-term keywords, but others were incredible, like Amazon bully stick launch, and that's pretty tough to launch, uh, to rank for, and it also stayed around for a while. So, which is great. It's like sometimes they last for years.
[00:14:16] Another thing I want to talk about when it comes to content is that. When somebody searches your product, let's say that you are a Shopify, uh, uh, or a Walmart or an Amazon seller people don't trust a micro brand unless they bought your product before. So what's the first thing they're going to do.
[00:14:35] What's what do you do? I know that I I'll go and I'll see, you know, there's a plastic shoe stretcher and oh, okay. I check it out. I'll put the company name into Google. If something comes up and I start. Brand consistency, let's say with a social media or their website, or if I start to see their, uh, their content there and I start to click on it and it's quality content or a press release that gives me that authority.
[00:15:04] And I'll always go back to this authority equals trust equals sales. And it's so true when it comes to this. Like, uh, that's why I think content marketing. Is is really the way to do it. And one other thing, um, I, I don't know if we want to get too much into this. It's down a different rabbit hole, but if you get a grip on this, oh my gosh, you will rank and rank and re rank so quickly.
[00:15:33] And that's Google my business. Google my business is probably the least utilized tool in most people's wheelhouse it's there. It's free. If you set it up properly. Um, and by that, I just mean the proper anchor link. What do I mean by that? I just mean the website, either the website or the page, wherever you want to promote it.
[00:15:59] If that's in your blog articles, if that's in your social media, if that's in your photos, well, guess what it ranks instantly on Google. And if, if you, um, if you have Google my business and you're looking on a mobile. It's the first three swipes and it can never be second place. So if you're ranking for that keyword and you rank number one, it's the first three swipes.
[00:16:29] Now, what would you pay for that type of exposure? And also for any of us that are online sellers with, if you, if you open up and. Product images and also add the categories. It's like Google shopping. It does it automatically. It automatically ranks those pictures in Google images. It's so cool. And that's just a whole other form of content.
[00:16:56] So. Other types of content, Shane. I know I kind of took it over, but I'm really, really passionate about building up a businesses just through content. One other way is by using user generated content, do you want to talk a little bit about. Yeah. I mean, there's, uh, and it's not something that I've done as much as, because I've been focused on other ads, but the user generated content is a bit of a gold mine.
[00:17:25] Um, because you're, you're often getting it for free. Not always, but again, it's that authority it's like, oh, so-and-so is doing it. Or look at all these people who are like, well, you know, that must be good. Right? It's that third party endorsed. And you can get, there's some amazing, amazing people there know most people think about, oh, they're I go on to, uh, some type of influencer micro-influencer site.
[00:17:50] And, uh, you know, you pay someone to take some photos of your standing with your product or whatever. Yes, yes. You can do that. And that's technically, I guess it's user journey, I mean, are paying them so maybe it's not, wouldn't technically be considered, but if you are, um, building communities and you're engaging with people.
[00:18:09] And you're incentivizing them myself. You can do that with, um, you know, on social posts. You can do that with your product inserts. There's all kinds of ways to get people involved and sharing and you can, you can reward them, you know, you can give them prizes or discounts or a free thing, or there's so many ways to gain or fight and have fun with these things.
[00:18:31] You know, I've seen people get hundreds and hundreds of photos, videos, and different things. And that's that, that just gives you so much fodder for your social media. Uh, things to write about, uh, heck some of those can even be Presley's topics. Um, you know, there's, it's really a goal of mine. And I know that a lot of people, especially if they're in the private label business, that they're selling physical products and private label space, sometimes when you're getting started getting good images can be a challenge.
[00:19:01] Um, finding a good photographer can be a challenge, especially when we started years ago. Now there's so many people doing it. It shouldn't be that much hard, but it's still gonna cost you. Um, and you know, the beauty is not as the beholder. I remember. I, I, I pay some crazy mind to do some photographers and what I got back.
[00:19:19] I just didn't like, it just didn't resonate, but I had no ability. I didn't have that artistic ability to explain exactly what I wanted or how I wanted it to make me feel. Um, and with when you're able to get a lot of people following it and gave this user two continents, kind of like a shotgun blast, you didn't get a little bit of everything.
[00:19:36] Some people have hokey hokey iPhone photos. Kind of not so good, but they actually kind of convert cause it was so real and raw and you get some really nice polished images too. People can actually spend a lot of time and effort doing these when you're rewarding them with just, you know, kindness or a free thing or a discounter or whatever.
[00:19:59] I mean, it might depend on if you're selling a fibery massage gun for 250 bucks, it's, it's hard to give a lot of those away because certainly give discounts. Was there another aspect of user generated content you wanted to go after norm? Well, I think that, uh, I wanted to talk about just the ability, the value, and I want to give an example of this.
[00:20:21] So, uh, there's a few people on here. I can see that right now. Uh, no, uh, uh, one of our friends, Paul Barron. Who he, he had swim diaper. Okay. It's not a sexy thing. You know, it's swim diapers. And he went out and he started to build, he went back to repeat clients or customers, and he just wanted to know. You know, they wanted to, uh, take part and not so much a product test, but become more of influencer.
[00:20:51] And then as they liked the product and as they bought the product more and more, yeah. He built them up to what he calls a brand ambassador, but all that meant was there were willing to give more and more user generated content. So here's what he got. Uh, I think he said over a two month period, he ended up getting and you can correct me if I'm wrong, your, uh, uh, shame, but 3000 photographs.
[00:21:17] And these are lifestyle photographs of people, moms, and dads with their babies. And you know, what, how far does that go? People trust those people. Don't trust, stock photos with, you know, the baby, uh, with a diaper that's 10 times bigger than the image. I mean, they know it's fake, but lifestyle. And what you can do with these influencers is you can ask them to do specific things.
[00:21:45] If there's a better. Like maybe putting the baby, you know, up to his waist in water to show it's waterproof or stuff like that. You can direct them to do what you want. And then, uh, I know he did this too, over a weekend. He had to do something, uh, it was a video and he wanted to showcase certain features.
[00:22:04] He got 30 videos over the weekend from influencers that, um, that showed, uh, the product. And don't ask me what the benefit was or the features were. Over the period of time. He also. Has a ton of guest bloggers. So he showed me, uh, he went to Google and he was just showing me what he was doing. And I saw, um, best swim diapers came up about three or four times.
[00:22:31] And I said, yeah, that's okay. That's, that's good. I can see it on Amazon. I can see it, uh, you know, in your store and on your website, he goes, no, I like, I'm pretty much take up the whole page. And I said, where? And he goes, these are all influencers that are writing about my product. So just click on any of the.
[00:22:47] So it's not information that has to be directly on your page, but it's these articles that are linking back to your page, that these influencers are, are working on and you can find these influencers in anywhere and they'll do it for free. Just give him the product or there'll be a charge. And that depends if you're going to a nano influencer, which is a very small following, but people trust more micro influencers that have up to a hundred thousand people right up to the celebrities.
[00:23:20] Um, but you have to remember. The more you pay might work, you know, but I wouldn't recommend that for any brands that are just starting and there are some specific guidelines and you have to be ready to eat, eat a ton of money to get some results. And I do know, uh, and I think Joe, Joe Martin is part of startup.
[00:23:43] I I've talked to him before he used the Kardashians to promote his product and other influencers, and he just sold his company for 500 million bucks. Influencers. That's all he did user generated content. So that's how important this stuff is. I don't know if you have anything more to say about that.
[00:24:04] Yeah. Those are great points. And like those listicles that come up, like the, you know, here's my five favorite, whatever, like, like those, those do shop. And when we say influencer, sometimes I don't even really consider them influencers. They have pretty small followings, but most people I knew would rather have a hundred micro influence.
[00:24:21] Versus one big one that you pay for. And I've seen a lot of the big ones flop too, because, uh, the audience isn't always as dialed in, as norm said, those, those micro guys are trusted a lot more now. Yes. So if you're following a big famous star, yes. People will trust them because people are a little bit nuts.
[00:24:42] Uh, and they'll do whatever they're told, but those symbols audiences, if they're, if they're in the millions, I mean, your, your target demographic might only be a very, very small. And the other thing, of course, look, let's just put that aside and just say, okay, we're, we're, we're dealing with some small people.
[00:24:57] You're getting people to do contests and getting some user generated content in from your social or your inserts or, or, or reaching out to past customers, whatever the case may be. That's great. This is great, great material for you to talk about. If you're doing Amazon posts, you it'll feed your Amazon post-program is always going to keep your social media full of interesting different things.
[00:25:20] So it just takes the pressure off and it's great content. And by pressure, I mean, You know, what, what are you going to do for social this week or next month? Say the racking, your brain, because the old, and this is my opinion. I think it's some things I've read recently to the old. Techniques where we used to say, okay, what's some interesting, uh, oh, say necessarily viral content, but popular content, repurpose it, or we're posting on your channel.
[00:25:48] Isn't as powerful as it used to be. Um, you tend to need a little bit more unique stuff and a lot of people get scared of that thing and, oh my God. I'm not a writer. I'm not a creator. Like how can I fill my social feed full of unique stuff every month? Oh my God. You know, what are we going to do? Well, this is a great way to do it because you can get all this stuff done for you.
[00:26:07] And some of these images that come back great, you might even want to put them on your Amazon, your Shopify list and your whatever. Cause they're really, really fantastic. Well, I know we've, uh, we've done a course, um, a year or two ago, uh, about repurposing content. And I think that's the next thing we should touch on because it's so simple to do.
[00:26:29] So what is repurposing content?
[00:26:34] Well, it's a repurposing. Sorry. Uh, well, I mean, you just want to find, um, here's the thing, you know, if you do anything, if you pay for something, if you put the time in to do something, I'm a big fan of squeezing every drop of juice out of that content that I can, let's say you have. A video made great.
[00:27:02] Wonderful. You can break that up into smaller videos. You can, um, pull a transcript out and post that you, you can, you can do these types of things where you were repurposing or resharing that content, and then you break it up into smaller chunks. For instance on social and then, you know, once a month, you're going back to that well of things you had and you're slightly altering or changing it and re posting it, uh, you know, and a nice and a little bit more eloquent examples.
[00:27:31] Yeah. Is, um, maybe it's more about sharing, but let's so w w with our PR company, we do media for people. So it w we're we're getting their products into gift guides or magazines or whatever. Let's you get a really nice placement by a well-known or you're in a magazine. So many people. Just stop right there.
[00:27:53] And they're like, oh, well, that's great. That's wonderful. Oh my gosh. Let's share that. Let's make sure it's on your social. Let's write a blog about it. Let's do some press releases about let's post it on, uh, uh, YouTube. Let's, uh, Let's uh, what was the other thing I was gonna say? Um, you use it in your advertising.
[00:28:11] You can put it in your email signature and that's, that's how I view, um, repurposing your content. I just try and think, okay, how else can I chop this up or share it or slightly tweak it and reshare it in a different way. So you get that one piece of content. You get a great article written and get it video or whatever.
[00:28:28] Okay. How can we stretch this out over six months? And it's just the bottom bottom. Dog's going to save you a lot of money. And if it's engaging, especially the first article kicks button, you get a lot of engagement. Wonderful. Now, you know, your audiences is quite interested in this topic and you should be going after topics that you assume are going to be, uh, relevant or you've researched it and will be relevant and just keep chopping that up and sharing it.
[00:28:52] Yeah. One of the things too, you just mentioned that if there's a topic, uh, and it's. You know, it gets lots of engagement. You want to rinse and repeat that. And one of the ways that you can do it is two ways that you can do this. Very, very simple. You can go to a site called ask the public. I hope I'm saying that.
[00:29:11] Right. I keep getting, I keep wanting to say, asking the public, ask the public, isn't it answer the public dog. Oh, I knew I'd get it wrong. Answer the public. And you can just type in that keyword or type in that question. And it'll come back with, you know, this, this, uh, group. Of similar questions that you can or similar topics, the other one.
[00:29:33] And if you're listening and you want to write this down, this is incredible. I've got nothing. Absolutely zero to do with his company. I use it all the time. We use it in our company actually called phrase F R a S E F R a S e.io. And that company will, um, if you have a, if you type in a keyword, it will break down not only the questions or the topics, but it'll show you that.
[00:30:04] 10 that are ranking and what you have to do, what keywords, or how to format it, to make it rank better than those articles. It's incredible. And it's very, very inexpensive. So you could check that out. Uh, so that's, so if there's something that people like, why not give them more of it? And that's the same thing with images.
[00:30:23] If you're looking at your Facebook account and you're repurposing that content or that post. Do more of it. Why not do more of it, you know? And you'll, you'll probably see that certain things, depending on your niche, uh, it might be a motivational quote. It might be lifestyle images, uh, whatever it is, rinse and repeat one other thing.
[00:30:46] You just highlighted very briefly. Uh, you touched on this was earned media and that was, you know, like people hear about it, this public relations, but it is getting into those magazines. If you don't have a PR firm to do this for you, you can always try to reach out and try to get in. Now you can do it through LinkedIn, but reach out to these companies.
[00:31:10] And see if they're interested and, you know, whatever your, whatever you've got to sell, it might be an event. It might be something that some research that you have, and it's worthy of getting into that, uh, magazine, niche, magazines, associations, uh, you know, it could be anything, anything on that. Yeah. I mean, I know plenty of people who've gotten some good coverage by doing it manually.
[00:31:36] It is a longer process. Um, uh, you don't get a lot of, a lot of feedback, which can be frustrating for people. You know, you might send out a hundred emails and get one or two back, uh, but just expect that that's gonna happen. Um, and you have to understand their perspective too. They're not being snobs. Um, they get overwhelmed.
[00:31:55] Um, they're they probably get. Tons and tons of emails in their inbox. What are they going to open up? So if you do send stuff to. Or, or, or someone trying to get some attention and you want to, you know, you want them to talk about your products. You want to highlight why your product is so great or whatever the case may be.
[00:32:12] Be very brief. Um, have a snappy title and B you don't have a, oh, Hey, I I'm, I'm this. I have three kids and I didn't want to read that. They're th they don't have time. Well, maybe they do, but just don't have time just be short and snappy. Get to the point. If they want to get back to you, they will. Um, just people.
[00:32:30] That, um, you know, it is a longer slower process, but yeah, you, you can get some, some good coverage of that.
[00:32:40] Sorry. I got kids coming to have to mute just for a second. No problems. I couldn't find the mute button anyways. Okay. So the other thing I want to talk about is managing expectations. When people are talking about content, uh, you know, it's your blog articles or press releases. It could be earned media.
[00:32:59] What are those expectations? What can they expect? Short-term and long-term sorry, like, I literally just got the kid out of the room. So you're asking about expectations for media. Is that what. Different types of media. So you've got your blog. You've got, it could even be social media, like putting up your lifestyle, um, press release, earned media, so different types of media.
[00:33:22] What can you expect? I know there's different results. Yeah, sure is. And this is a pretty common question that we get because every wants to know, Hey, what's the ROI? What can I expect him? That's natural. I want to know that too. Whenever I do anything, uh, sometimes the ROI on all of these things can be. To measure.
[00:33:38] It's just like, you know, you take out a billboard on the side. Yeah. Now what's the ROI from that? I don't know. I'm not sure can ever know it lets you get some, you know, code on there or something. It's going to be tough, but it's about building recognition. So we, uh, you know, back in the day, back in the old days of Amazon and e-com we focus mostly on tactics, there was tons of loopholes and the platform has all kinds of hacks.
[00:34:02] We knew those would disappear as the, as the industry mature noodles, that's normal. Um, so. We really made a switch a number of years ago to say, no, we're just going to focus on long-term. I'm not interested in getting to more sales tomorrow. Let's work on this long-term brand vision so we can sell the business for more.
[00:34:20] It's going to have more recognition, higher perceived value, all those great things. So just, I'm going to put that in frame, that context here, when you're doing, uh, any type of a content, you have to have a long. Vision, you can't just say, oh, I'm gonna put it on a blog once a month. And that my business increased by 25%.
[00:34:38] I really very much doubt it. Um, it's a slower process because you have to get in front of those people. They have to read, they might see your message. 3, 4, 5, 6, 7, 10 times, and then buy that's how advertising works. Right. You have to have that long-term vision and it's a slow cumin process. That's why I love doing it as inexpensive as possible, but as efficiently as possible, because I know that it's, it's a marathon, not a sprint.
[00:35:03] And so many people get frustrated after three, four months to come, oh man, I've just done four blogs or not a damn thing has happened. This is stupid. Well, of course not. That's like running one Facebook ads campaign, not getting sales and say, well, Facebook ads don't work. It's preposterous. Right? These didn't have your audience Delta, you didn't have your message.
[00:35:21] Your conversion rate sucks or whatever. It's not that the, the, the, the platform's fault, it's your fault. I just need to figure out how to. Now some things will have a much faster impact, you know, w w we get you a, an article in Wirecutter magazine or something, for example, you know, that goes out, boom. You know, you can get a thousand sales the next day.
[00:35:41] Sure, sure. Um, but those are what we look for is we have a long-term strategy or do all these things. We're hoping for. Snaps, you know, that the hit from time to time, maybe once every two weeks, once every three months, who knows, depends on what you're doing that helped propel it on a nice upward trend. So we tend to blend things in, but everything we do, even, even that high authority magazine we get you published in.
[00:36:07] Yes, it might generate a ton of sales over a short period of time. But guess what? It's still a long-term tool. It's going to be searchable on Google, even if they. Even if it's not relevant, well, guess what, you've got an as seen on Wirecutter on your website, you can use that authority for the next two years.
[00:36:27] So it's important to always keep that long-term perspective in mind, but, uh, uh, um, we, we can get some great, uh, short-term results, but it's always with that longterm perception. Okay, Shane. I mean, I think these are some points, different, different types of content marketing going to get you different results.
[00:36:48] Uh, make sure it's always quality. Neil Patel talks about blog. If you can create a better blog, the best blog don't even produce it. Um, it's just not right. Uh, the, the different types of, uh, uh, the different types of content, uh, from influencers, blog articles, uh, uh, different types of influencers, gift guides, um, earned media.
[00:37:14] These are all things that you can do to help build your content. So it's so important. There's so many things that you can do enough of one piece of content. We track this and we showed that we, we had repurposed. Off of one piece of content, almost a hundred different times, just breaking it up, taking a piece like out of the, out of my podcast, we might take 10 sections out of it from one hour and cut it down to just one or two minutes and repurpose it on all the different social media platforms.
[00:37:45] There's don't give up on content marketing, use it as a tool. And Shane, do you have any last words? Yeah, I think I want to go back to what I said at the beginning. So many people, especially starting on the jury, do you think they need to do everything? They see shiny objects. Don't you're better off to do one thing really well.
[00:38:05] And then expand versus trying to do a little bit of everything and not have it really effective. And, and going back to what you said about Neil Patel, that's exactly right. If you can't do it top notch, uh, you know, you're really going to be fighting a long uphill battle and it's frustrating. We've all been there.
[00:38:20] We've all done things, attendant work. Um, but, but just, you know, make, do one thing really, really well. Okay, well, thanks for coming on today. Uh, Shane, I know you were traveling all over the week, so I really appreciate you taking some time and coming on. Um, look, I want to, um, just say, if you did like the information that you heard today from, uh, from Shane or myself, please, uh, click, uh, click on her name, follow and maybe Hey, ring that bell give you some notifications.
[00:38:51] Startup club has some really incredible rooms. If you want to hear more about that. Go up to the top left and click that little green house and you'll get notifications. And I think that's it until next week, next Thursday at one o'clock, uh, I'm looking forward to seeing everybody back and thank you for being part of the community.
Content Marketing | Ecom Weekly
September 9, 2021
Walmart | Ecom Weekly
[00:00:00] My name's norm Farrar, I have a podcast called lunch with norm and it covers Amazon FBA and E commerce every Monday, Wednesday, and Friday. uh, we have a great topic today. We're going to be talking to, uh, to you about selling on Walmart. The room is going to be recorded.
[00:00:28] So if you have any questions, please raise your hand and we'll bring you up on stage. If you don't want to be recorded, don't raise your head. Um, we also want to provide content and only content. We pride ourselves on giving out free content to help you during your e-commerce journey. Uh, so. That being said, please go and pitch.
[00:00:50] Um, you know, if you've got a course or something like that, we're not looking for any pitches. Um, Olivia is pretty good on the mute button and okay. So remember I do like what you hear today, click on the green house up at the top of start-up club. Uh, we'd like to start, thanks startup club for allowing us to have a room.
[00:01:09] And if you like what you hear from our speakers and we're going to get to McKell in a second. Please, uh, uh, follow and give her, um, and ring the bell. Okay. Now we can officially get started. McKell how are you? Hi everyone. Good morning. I'm great. How are you? I'm okay, now that you're here.
[00:01:36] Now that nothing going live and your guest isn't there. So I get that sometimes on the podcast. So I, all I do is I go into the fetal position for a few minutes and hopefully we've got all our listeners still. So, um, Miquel tell us a little bit about yourself. All right. So yeah, I'm selling on Walmart for four years already.
[00:01:58] And as you know, two years ago, I start helping people and getting into Walmart, understanding Walmart, selling on Walmart, and we had just amazing success success with people in 2020. Because of the pandemic, of course. And you know, Walmart, e-commerce just become one of the best e-commerce in the U S as we know right now, Walmart is the number two e-commerce in the us.
[00:02:28] So, yeah, I'm an e-commerce seller for 11 years and yeah, he just, you know, such a blessing with what's going on with Walmart.
[00:02:40] Important. And I don't know how many of you that are out there that are listening right now, um, are e-commerce sellers or Amazon sellers, but the word out there is that it's. It gets tougher to sell on Walmart. Um, they're not trying to be tough, but they just protecting their butts and with that, and I'm an e-commerce seller myself and I've seen it over the years.
[00:03:04] You know, you have to be on your game a little bit, um, uh, a little bit more, um, you know, not scaring anybody away from Walmart or from Amazon, but you don't want to be a one-leg it's. Whether it's Walmart or any other platform, if you're building your own Shopify platform, it's important that you do. So just in case you end up getting that nasty suspension notice.
[00:03:27] So, um, Miquel why don't we start it off by, you know, why, why should people sell online? Yeah, like you say, you know, people get suspended from Amazon. We hear it all the time. So before you get suspended or anything happened, um, you want to make sure you're have at least one or two more marketplaces. So I really recommend Walmart and Shopify.
[00:03:52] I think those are very important to have if you have e-commerce. Hmm. And again, why not? Because if you can make more money on Walmart, I know a couple of companies, they actually have numbers of their close to Amazon. Some of them have 50% more sales, 20%. So there is no reason why you shouldn't have another store that can bring you more income.
[00:04:20] Another thing that I hear from sellers is that, eh, When they're looking at their profit from Walmart, it's, it's, it's better than Amazon. So that's another good reason as well. Yeah, that is a great point. Um, we are getting a bit more nickel and dimed on the Amazon side, especially with, um, uh, on the Amazon side, we're getting nickel and dime, you know, and there's inventory restrictions and there's all this stuff.
[00:04:51] Good stuff going into the fourth quarter. I mean, there really is no better time because we are going into the fourth quarter to get approved and start selling and regardless, you know, to get onto Walmart because you know, we're going to have that accelerated sales, so no better time than the present, but Walmart, not your typical platform.
[00:05:11] And I'm talking Walmart, I'm talking walmart.com. walmart.com. The marketplace is not your typical, um, platform. They are looking for a specific type of seller. Can you get it in. Yes. So Walmart is right now is not accepting everybody. So it's not like Amazon, you can just come and open your account. And unfortunately it's not the case, but you know, from that, that it is good because we don't need another Amazon.
[00:05:40] Hmm. So right now, Walmart is looking for sellers. They have experience with the e-commerce. So Walmart is going to look and gonna review that you have Amazon store or Shopify store Etsy, eBay, or any other platform that he can see your history. You can see what you selling, what your price is, what your customer, um, feedback.
[00:06:03] So he's looking into that, that you're registered your business must be registered in the us. So you have to have a company and address in the U S eh, of course, LLC is recommended. Um, if you're not in the us, you don't live in the us, but your business is registered in the us. There is still a very good chance you can get your account.
[00:06:28] Um, so yeah, that's really what they're looking for for experienced sellers. Now it's interesting that you're, you're talking about experienced sellers. So we're not talking about a hundred million or sorry, a hundred thousand dollars a month, but you just have to show that you have some experience selling.
[00:06:47] Is, is that safe to say. Yeah. So I see many companies that just started and they have private label, just two or three skews and they get, are they actually gotten approved for Walmart? So yeah, they're not looking for like sellers that make seven figures. They're just looking for the experience in and what you can bring.
[00:07:09] So if you sell something that seems too weird for them, and I saw people get denied because you know, they're selling things they're related to, you know, or things like that. So you have to be very careful. And what are you trying to sell on Walmart? So I, like you said, no crack, no marijuana. All right. Uh, let's talk about some stuff.
[00:07:35] I, this blew me away. When you were telling me about the different stats it's happening right now, when you, when, uh, with Amazon in the marketplace growing phenomenally, I, you were telling me like 40% every quarter, is that correct? So in 20, in 2019, the grow the e-commerce Walmart e-commerce. In average of 40% every quarter in 2020, the actually grew, um, in, I think the first quarter was 40%.
[00:08:08] And then the second quarter was 69%. The third quarter was. Uh, more than 70%. So they actually, their 2020 was insane because, you know, because of the pandemic. So the growth was really massive. So if we're looking at the growth compared to any other e-commerce in the world, even, but especially in the us, there's nobody like it.
[00:08:32] Like their growth is just crazy. Right. And you know, the other thing we were talking about is their, their infrastructure they're set up. They ended up buying a jet, uh, but what, two years ago, and that built their infrastructure for the online world. But the actual distribution network, their fulfillment network, they've got 1600 outlets across the us already.
[00:09:01] So it's an instant, you know, fulfillment center. I mean, fulfillment and supply chain management. Yep. Which I think is really cool. Yes. Yes, definitely. So from the logistic side, they're much bigger than Amazon and they can able to deliver things the same day to, you know, almost everywhere in the U S right.
[00:09:26] Well, Um, and I think this is probably the most difficult part, but after you answer this, uh, I'll give a hint on where you can go to solve the issue, their application process. There are people, there are people that have been waiting for months to get approved. And then there are people that are waiting, they get approved within days.
[00:09:50] Can we talk about the application process and where some of the stumbling blocks are?
[00:09:58] When you do your application, you have to be, you know, take your time and make sure you did your research. Make sure you have all your documents in place because you need to upload all your documents like your a w nine and a letter from the IRS, showing your EIN, your address, your name, everything needs to match.
[00:10:15] So when you fill up the application, everything needs to match. If something doesn't match, you're going to get denied and you need to make sure you have your URLs for all your stores, Amazon Shopify. Um, and you need again, make sure you answer all the questions correctly. They w they have, couple of questions are very tricky about if you're selling refurbish stuff.
[00:10:38] If you're, if you have UPC for all your items. So, um, where are you shipping from? Uh, so all these questions need to be. And started, right? Because again, they're looking for sellers that can fulfill and ship from the warehouse in the us every day, the same day. So you need to be able to show you, you can ship the same day, you receive an order and you need to show that all your items, have you PCSed any Iran, sell anything used or refurbish.
[00:11:09] So those are really important when you do your application. As something as simple as, um, letting people know. Well, first of all, the big one and, uh, I see near, uh, is listening. So if you're out in Israel and you say that you have a w eight rather than a w nine, that's almost an instant rejection, correct?
[00:11:32] Probably, probably depends. Where are you from? I think they're being more easy right now or. Chinese sellers. Um, but I don't know about, you know, other places in the world. I still, I don't have the right answer for you because some people get approved and some not. Right, right. But probably the majority, if, if you're, if you're applying with a w eight, yes, probably I would recommend to fill up w nine because you need to show an address in there.
[00:12:06] Right. And so that, that's one thing then the other thing which is, uh, can really trip you up is it says, do you have any, um, other warehouses outside the U S and you might. So I have, I, I sell different products in Canada. Um, don't sell a lot in Canada, but warehouses in Canada, if I would have checked. Yes.
[00:12:27] Probably would have been red flagged. So even though I do that, I checked no. And that allows the process to go through very quick. Yeah, exactly. Like you say, you know, you, you really need to think smart when you answering this question because they are a little tricky. Now, one of the things that you can do, so anybody listening who has not been approved over at Walmart, um, there are some fruits.
[00:12:56] Absolutely 100% free. There's not going to be at the end. Oh, buy a course. It's just free. Uh, because it is a bit challenging if you go to, um, the YouTube channel, um, private label Legion. Okay. Just private label Legion. And there's six free videos on there. And one of them is the application process. And then the other one that follows, which is really important.
[00:13:22] I'm going to get into that right now. What happens if you get them? Yeah, that is such a good question. This question, I get all the time. People assuming that if they apply and they got denied, that's it? It's done. So they give up. No, I'm telling everybody it's not the end. You can do couple of things. You can reapply I again, or you can appeal.
[00:13:49] So you can go to. Walmart to seller help that walmart.com and you go to support and under support, you look for password and other issues and you go from there to appeal and then they let you open an email. So make sure you're not logged in no Walmart account when you do that. So you can get to the right place.
[00:14:15] And then from there, um, you can go and you can appeal and you can let them know, Hey, um, I applied, I got denied. Um, I want to let you know that, you know, I'm an experienced seller and just tell them, you know, everything they want to hear that you, what are you selling that you have merchandise ready in the UK?
[00:14:33] That you're ready to ship every day, attach your w nine attach your EIN later. So again, the same information you give them in the application. Give it again in the email and. I get so many messages from people that they actually got approved after this email. So it is working and if you're a good fit and from some reason they denied you the first time, eh, you should be able to get approved because right now there is an actual person sitting and looking at you, right.
[00:15:05] Okay, perfect. Um, Olivia, I don't know if you can help out. I see that has been trying to, uh, come up as a speaker or has a question I've been trying to give them access, but, um, I can't, I it's just not, he's not coming up, so I don't know if there's anything to do. I don't know that much about clubhouse, so sorry guys.
[00:15:27] Um, we're trying. So I did get Daniel up here, Daniel. Welcome to the stage.
[00:15:38] And you are muted.
[00:15:43] Okay. We can get back to Daniel in a, in a second. Uh, Daniel, if you, uh, if you, uh, if you get back just unmute and let us know you're there. All right. So yeah, go over to the private label Legion. You'll see that there's six videos there. Especially on the application process. There's oh, Hey Dan. Thank you.
[00:16:11] Can you hear me? I can hear you fine. Okay. Thank you so much. I have a question quickly. I made, I made my application about five, six months ago, but it was the client. Uh, I need to know if I can make it again. I should, uh, I did it like my, I have an LLC on United States, but I need to know if I can do it again with the same LLC or, or maybe I can do, uh, in another way.
[00:16:47] Yeah. This is such a good question because a lot of people think they've they apply and got denied and then now they need to apply with a different email in different areas. So that's not the case. You can apply again with the exact same information and I recommend to use the same information, but you have to make sure they can see you're a good fit.
[00:17:07] So if you try to apply again, it might going to go to, or you might going to get emails saying that you already applied, and then you go to do the appeal process. As I was explaining, um, through a seller help that Walmart. So that's where two option, but again, you have to make sure that you're a good fit and if you think you're a good fit, so yeah, definitely apply again or appeal your dinner.
[00:17:38] You know, McKell, uh, one thing to check out Daniel, um, go and check out the application video. On YouTube that we put through it is a, um, it is a step-by-step there's about 10 different stumbling blocks. And. If you're going to be reapplying or appealing, you've probably just answered some step wrong. So, um, anyways, um, it will walk you right through it.
[00:18:11] So if you notice that, oh, I, I, um, I said, yes, I have a warehouse outside of, uh, the U S you know, Uncheck that, but, um, it will guide you through the appeal process. And then, um, you could take a look at the videos, very short on the appeal. So those are just a couple of things I've heard on the plot. Like on my, my podcast, um, we had McKellen and there was a couple of people that had problems applying and they got, um, they, they, they, their appeal worked and they got right through.
[00:18:43] So hopefully that works for you. And oh, now I think my buddy near, how are you? Hi. Hi everybody. Can you hear me? I have a question. Yeah. Uh, for first, very interesting. I'm not in a woman experts. So I just wanted to say, because I will said about other country, which is correct. I heard some rumors saying that they will add some countries this year.
[00:19:13] It's just rumors. This will I dunno, be interesting to others. For me, it was very interesting. That's what I had to say. Yeah, I'm sure the wheel, because there's a lot of pressure because people are applying from all over the world and I know they start letting a Chinese seller, eh, go on Walmart. So yeah, they, they, now they need to let other countries definitely.
[00:19:42] Okay. One of the other things, um, that people should know, especially in the Amazon guys, uh, are, should you just cut and paste your listening?
[00:19:57] Yes. So that is such a good topic. I love this topic because everybody's doing the same. When they get the store on Walmart and now they go and just a copy paste, their Amazon listing to Walmart. Um, so again, that might work, but it's not gonna work a hundred percent like the potential of how much traffic you can get.
[00:20:22] Rank you can get is only if you actually optimize your listing specifically by Walmart guidelines. So that's very important. And their number one guideline is they're saying it's very good, clear, make sure your listing is unique. So they want it to, with different title, different description, a different, a key features.
[00:20:41] That's similar to the bullet points. So, you know, you're only two. You know, reinvent everything, but just a couple of tweaks, make sure your title is following the guidelines. Make sure the title is not too long. Eh, I would recommend 75 characters for your titles. So I know on Amazon people have like very, very long titles.
[00:21:03] Um, Don pack it with all your keywords. Just use like maybe two or three, the most important keyword search terms, any title? Hmm. Yeah. And, you know, make sure your images are following the guidelines and yeah, that should work. Can you break down the anatomy of a Walmart listing? I know, like in an Amazon, you know, you've got your images, titles, bullet points, you've got a frequently bought together a plus.
[00:21:34] What about on Walmart? Yeah. So it's actually very, very similar again, except of the guidelines. It's very similar. You have a title that has, I think that's like the most important thing on your listing on Walmart is your title and your images. If your description is not so long, and if your key features are not too many, that's your listing still gonna be able to be searchable and rank really.
[00:22:04] Um, so the most important thing is to follow the guidelines for the title. Like I mentioned, make sure it's not too long. And usually a title needs to start with your brand. I say many times that people have their title starting with. Keywords that are not relevant to what people are actually searching for.
[00:22:28] Like they started with like something like six pack or, um, you know, all kinds of words that are. Not really what people will search. So like with Amazon, make sure you're at least your four or five first words on your title is exactly what the customer is going to search for. So that's really, really important because again, you cannot have your title too long on Walmart.
[00:22:54] Not allowed to have any kind of symbols, Hey fans, and all, any kind of, you know, something that, um, Amazon allow, you cannot have it, like when Amazon, a lot of people have. I don't know if you tell me normally I see a lot of people in their bullet points on Amazon. They're using emojis. Is that really allowed on Amazon?
[00:23:15] Nope, us again. So again, it's against, it's definitely against Walmart guidance. Another thing with Walmart, your description and key features need to be informative. So you cannot have like, um, you know, like people use on there, usually in the. Bullet points on Amazon. Usually the last one they're talking about the customer surveys and the returns and a hundred percent satisfaction.
[00:23:45] So you're not allowed to have any kind of information like that on your listing for Walmart. So you have your description. And your description should be up to 500 characters. You don't want it too short and you don't want it too long. And then you have your key features, so you can have up to nine key features.
[00:24:07] So you can have, I recommend to have at least five. So five is good if you want to have more go for it. Um, so again, each key feature I recommend to have around. 200 to 250 characters, again, not too short, not too long am and your images. So to get a really good score on your listing for Walmart, you need to have at least six images that are very good quality, like high quality.
[00:24:38] Make sure your images are at least a thousand by a thousand pixels high resolution. If you can use 2000 by 2000. Yeah.
[00:24:51] Very good. Now what about, uh, in on Amazon, you have a plus content, uh, for those of you that don't know Amazon, the setup a plus is really just, it's kind of like a, a minute. Um, almost like a landing page of some sort, you know, it just gives you additional, it's called what's called enhanced brand content where you can have more images and a lot more information about the product.
[00:25:19] Um, does Walmart have that? So that is really good question. Um, so when you do it on Amazon, usually you need to be a brand and you can do it from your store with Walmart. You cannot do it directly. On Walmart, you can not have a store right now. So even if you're a brand, you cannot have a store on Walmart, just your, you know, your listings.
[00:25:44] So there are a couple of software, is that Walmart gave them the permission to host your it's called rich media. So you can have a template with like similar to A-plus content and videos. Showing up on your Walmart listing, but again, you need to use one of those companies and then, um, you need to pay, um, probably a monthly fee to have a tossed on their platform.
[00:26:18] Yeah. Do you know what kind of monthly fee did you have a rough? It really depends. Where are you hosting? So I think it's by, you know, the images, the videos. So it can start from, you know, 10, $20. More every month. Um, yeah, that's um, that's uh, I know, I only learned about that the other day and I was kind of surprised I had no idea.
[00:26:43] I just thought it would be, you know, just add, add your listing and, um, you could just add it like a plus content, but that's not the case. So just in case anybody else's confused, I know. It's a separate service that hosts, um, the, the, what I would call the A-plus or the enhanced brand content that you would see on Amazon.
[00:27:04] So kind of interesting. Uh, so it isn't, there is an additional costs there. What about actually getting your lists? Listed, uh, going back, I'm going to like on Shopify, you do it manually on Amazon. You can do it manually, but, uh, the best way to, to do this is through a flat file. How do you load your listing on Walmart?
[00:27:30] Yeah, so the best, the best, best ways to use a flat file, especially if you're the first. It creating this listing. One of the benefits of using a flat file is that you can keep this flat file. And then if you need, you know, in a week or two change an image, a title, anything you want to do, you just go back to your flat file and create this change.
[00:27:57] And just upload it again. It w and it will take, um, it will be taking like a couple of minutes even, and it will show up the way you want it. Um, so, you know, with Amazon, sometime it's really hard to change something in your listing. You need to go through, um, customer service. So with Walmart, um, again, if you create your listing on the web, like you can go to your account and go to add a product and create your whole list, then just, you know, on your account.
[00:28:28] But again, that's, what's going to happen. If you want to change anything, it's not going to be an option. You're going to have to go through customer service. So the flat file is the best way to create listing. Especially if you have a lot of skews, if you have variations, you know, multipack, bundles and so on, um, that's probably the only way you can do that.
[00:28:53] There is other ways that you can use all kinds of software. I know, for example, a seller champ and maybe seller active, all kinds of software that help you manage your inventory, they can help you import your listing from example from Amazon into Walmart. But when in that process what's happening, is everything been copied from Amazon to Walmart?
[00:29:21] So again, it will show up on Walmart, but it's not going to be optimized for Walmart. You're going to need to go. Into your listing again and add the attributes and everything is missing. So, um, again, I don't recommend that. I recommend to do it the right way and use a flat file. Okay. For, for people that don't know what a flat file is.
[00:29:44] Can you explain that? Yeah. When you go to your Walmart account and you go to add new products, they gonna let you choose your category. And then, Hmm. You just going to download an Excel. So you need to make sure you have a office on a computer and you're going to download the Excel and that's the, the flat file.
[00:30:07] Perfect. So I'm just going to reset the room quickly. Where you're listening to, uh, econ weekly and the topic today is how to sell on Walmart. And we have our guests today. McKell Chapman. Uh, Chapnick sorry, Merkel. Anyway, uh, we are taking questions. It's going to be a hard stop today at, uh, the top of the hour.
[00:30:29] Uh, if you do have questions and. There's so many people that have no clue about a Walmart. And you might think that this is a stupid question ask, and there are no stupid questions. We want to make sure that everybody gets the knowledge. They, you know, that knows exactly. Um, you know, what and how to sell on Walmart.
[00:30:53] We're going to probably. Dive in deeper into PPC and into listing optimization, just like we would do with any other e-com, uh, listing. Now, uh, just remember that we are recording the podcast. If you want to ask a question by all means, we'll bring up to the stage. Uh, but, um, if you don't want to be. Just don't raise your hand and that's it.
[00:31:18] Oh yeah. I mean, if you like what you're hearing today, make sure you follow the panelists. And if you like to hear more about startup.club or startup club, make sure you hit that green house and you'll get notifications. Okay. I am going to go over. I hope I'm saying your name right? Vernetta Vernon. Oh, you're close Norman.
[00:31:42] Thank you. Thank you. My name is pronounced Bernita. Like you need me and I'm grateful to be here at, uh, Norman and Olivia. Thank you. Pulled into this space. It's good. Sydney to Miquel. I see do come into this room, uh, quite often than listen. I. Uh, new and into, or I'm in the process of becoming an Amazon seller.
[00:32:03] And one of the things that, uh, peaked my ears at the top of the conversation, uh, Norman mentioned about kind of the nickel and diming hammock happening on Amazon. And so I thought to ask up and in regards to why. One, you know, what, what do the fee structures look like for sellers there? And then secondly, I know one of the things that drew me to the Amazon opportunity is just the massiveness of the marketplace.
[00:32:32] You know, when there's 150 active, active, um, accounts are active users in one space, that's, uh, a big potential customer pool. So while historically Walmart's brick and mortar has been the largest retailer. Uh, what does, what do the numbers look like on, uh, their e-commerce as far as you know, the, the market penetration for walmart.com and those are my questions for you that does speaking for them.
[00:33:03] Do you want to take that? McKell. Sure. There was a lot of good question. I can, I hope I can remember all your questions, but, um, so as for the market share right now, Walmart is taking 6% of the e-commerce in the us. So I think that's nice. And it's growing again, it's growing very fast, um, as for the fees.
[00:33:29] So Walmart is 15% fees, eh, similar to Amazon, 15% fees from your sell. So that's their, their fee. But Amazon has so many other surprising feeds that keep on coming. I don't even know how to call this, but Walmart do not have any, any other fee. There's really no other fee. If you do use Walmart fulfillment.
[00:33:54] And that is very similar to FBA, uh, there is going to be fees. And actually, um, so two days ago, two or three days ago, I received them. From Walmart and in their email, they're saying that, um, usually in Q4 they're raising their storage fees, you know, all the fees are going to be a little higher. So if we ship all our merchandise, I think before October, I think it was like 15.
[00:34:24] I don't remember the exact date, but if all your items getting into Walmart fulfillment on time, you're not going to pay any extra fees. And that's amazing because you know, just the fees that Walmart that Amazon will have on Q4 that can take so much from your profit. So again, with Walmart, you're definitely going to get more profit, less fees.
[00:34:47] And so I really liked that. And again, what was your other question as well? You did touch on it when I was speaking about this is Bernita speaking, but I was thinking about the market share. I was more specifically interested if you're able to share, like how many active, um, sellers sell or how many active sellers, but how many active customers, like how many active accounts?
[00:35:15] Yes. That's a really good question. So, yeah, so right now, by the statistic statistic, we see that for the last year, every month, there is more, some months are even more than that, but at least there, it doesn't go down then 400 million visitors a month for Walmart e-commerce. So there are a lot of, there is a lot of traffic.
[00:35:39] Uh, coming to Walmart. So there's millions of customers from a customer, you know, coming, browsing and looking for the product by this statistic. Every seller on Walmart get 13 times more traffic. And if we look at the sellers on Walmart, we have. Maybe now I'm guessing around maybe 80,000 sellers, active sellers on Walmart, a comparing to Amazon.
[00:36:07] I think it's one and a half million active sellers. So that's really the difference right now. But, um, McKell, uh, you shared with me the other night, the, uh, the amount of traffic that's going over to walmart.com. I think that was pretty impressive. Yeah. Yeah. So when we look at the last couple months is like I say, it's around 400 millions, a 450 millions, and we can see that 45% of the visitors that come into Walmart are actually coming from search and agent and social media.
[00:36:51] I have one last question, if that's okay. Sure. Yes. Okay, awesome. Thank you. Um, my last question was around the experience sellers. So for myself, I am new to Amazon, but I'm not new to e-commerce. I had had my own e-commerce brand, um, a number of years ago on my own website. What is that? Something that would.
[00:37:14] Counted or considered as experience, but it's not a currently an active site that someone could just think, go and see our, our, our previous history, for example. Yeah. So yeah. Then you have to prove them. What do you have? So you need to have an active Shopify store. Walmart have a partnership with Shopify.
[00:37:36] Um, so they give Shopify sellers the opportunity to apply and go through a very quick process for approval. Um, so it's very, it's really going to help if you have an active Shopify store. Um, and then if you're Amazon is new, they can probably find, they can see because you're not going to have a lot of feedbacks or a lot of, you know, a history.
[00:38:04] My, I will recommend that you, you know, take a couple of months, make sure you build in your Amazon store and then you should go and apply. Awesome. Thank you so much to everyone. You're welcome. Yeah. And one of the things that you didn't touch on McKell too is, uh, when you're, when you're going through the application, uh, you really want to.
[00:38:28] For your brand. You, you want to explain why Walmart should take you on, it's not like they're going to take you on, uh, if you've given that little nudge that might be. What you need to get approved. So, you know, just fight for why you should be on Walmart. So that's one, one thing to keep in mind. The other things I want to talk about too, is what to expect, what not to expect.
[00:38:55] Um, Amazon is absolutely the beast, uh, in the industry by far. Um, walmart.com just took over eBay as the number two position was 6% and. What type of sales, like from, from going from your Walmart sales, you get approved over a Walmart. What can you expect? McKell yeah, I get this question a lot. People really want to try to understand how much money they can make on Walmart.
[00:39:27] And I think right now it's really, really depend on what you're selling, because again, a lot of customers are going for Amazon, you know, For specially for electronics and you know, a lot of things like that, but still many, many customers will go to Walmart for their basic items, uh, groceries, clothing. Eh, shoes a cosmetics because they know it's cheaper there.
[00:39:54] So if you're in one of those categories, so you will probably have really nice numbers compared to your Amazon, you know, you can have at least 20, 30% sales and from your numbers on Amazon, on Walmart. Hey, I even know this couple of companies that have a lot of competition on Amazon have less competition on Walmart and actually even having bigger number, like couple of supplement companies.
[00:40:23] I know that they're making more right now on Walmart than Amazon. So again, if you're selling maybe electronics, maybe, you know, Amazon is a better platform for you. But I will still, you know, is no matter what, um, I will recommend everybody to add Walmart to their e-commerce and so, yeah, I hope that's answering the question.
[00:40:49] It's really depends what you're selling, I think. Right. Yeah, that's a great one of the things, I mean, manage your expectations. Don't expect that you're gonna at match your, your Amazon sales, um, or yeah, your Amazon sales. Uh, but it'll be a nice bump and especially, you know, we're talking going November, December.
[00:41:12] You'll have some, you should have some really nice sales if you can get it up there right now. Okay. So let's just touch on one last question. It's the do's and the don'ts, uh, what should you do? What shouldn't you do when you're coming on to Amazon or when you're coming onto Walmart? That is such a good question.
[00:41:32] So many people don't know that, but if there is one thing that will get you suspended on Walmart is if you fulfill your orders from Amazon. So Walmart. Do not want their customer to get a smiley box. Um, so that's like the biggest no-no don't do that. People get suspended. And another thing that will get you suspended is if you don't ship your orders on time, so it's going to make your seller score really bad.
[00:42:01] Um, and every couple of weeks I hear about this big wave of suspension. Usually that suspension, it's not the end of the world. They will suspend you for two weeks after two weeks, they're going to let you, um, you know, appeal and you will get your account back. So that's not a big deal, but again, I guess then if you're going to keep on doing that.
[00:42:23] It will happen again and again, that the problem with all these sellers that getting very bad score is because they're drop-shipping. So again, if you do want to drop ship, um, I don't really recommend, but it is, if you do it, make sure you have your suppliers are, can ship on time and very reliable. So that's like, I think the biggest no-nos, um, and again, So what is good again, get Walmart account.
[00:42:56] If you get denied, don't give up, just go for it. Eventually you will get your account set up your listing, right? Um, make sure it's optimized. Another thing that we didn't touch and it's huge is that Walmart, every listing there is optimized. Is will show up on Google ads for free. So you will get so much traffic from people that browsing on Google, because you're going to show up on Google ads and it will send them into your listing on Walmart.
[00:43:33] So that's something that maybe some of you get on your Amazon product, but I know that millions of millions of products from Amazon are not on Google ads. So that's a huge benefit for. For sellers. Um, I actually know a couple of people that, um, we looked at their numbers and we can see that all their traffic is coming from Google.
[00:43:57] So some people, you know, you can get like literally hundreds of orders every month just coming because your item is optimized and eh, He's showing up on Google ads. So I think that's really important. And if you, eh, on social media, I'm sure you notice that Walmart is very, very active on social media. I see a lot of influencers that I follow that they're always advertising walmart.com and you can see ads on TV.
[00:44:28] Eh, right now there's, I don't know all the details, but right now the good. Have walmart.com and Walmart delivery, and in-store pickup a March into just one United websites. So I think that's, what is that going to mean? Is that a people can get their, whatever they're ordering, even from third party seller, they can get it the same day or next day or two days.
[00:44:57] So that. That's such a big thing because customer want to get it fast. So I think Walmart will be able to deliver much faster than any other e-commerce out there right now. Like we said, at the beginning, you know, just matching the infrastructure or even going beyond 1600 facilities across north America or across the U S the other thing that, uh, I just want to say before we end.
[00:45:24] Is, uh, they also have their own prime, uh, their own prime program that they're, that they've launched called, uh, Walmart plus. And, uh, I don't know if you have more information on that. Um McKell so, yeah, so, so as you can see, Walmart is, is very clear. Well, they send, we are competing with Amazon. They're, they're trying to, you know, do everything very similar and more than that.
[00:45:51] So I think last year when Amazon announced the a one day delivery, they announced it even before them. So they're really competing with. So the Walmart plus is a great membership. It's given you all the benefits of similar to prime when you can order things and get it again the same day, the next day or two days, it really depends where you ordering.
[00:46:20] You can use it. So you can use the app. When you go to the store, you're capable to just, you know, grab your stuff, scan it and leave the store. You get discounts on gas when so many more benefits. And I know a couple of my friends are using it. They go to the app, they shop for, you know, their everyday things and in two hours it's outside their door.
[00:46:42] So that's amazing. Um, and the last thing, it's only $12. So you can do it monthly. You don't need to do it yearly. So I think that's really good for you. All right. Fantastic. So I think that's it for this room. I hope you enjoyed the information and the, uh, the details of Macau was giving on Amazon or on Walmart.
[00:47:07] Sorry. Mikelle on Walmart. And little, a few more months and we're going to be able to not get confused anymore. Say Amazon Walmart. I'm going to keep saying that I'm going to slip, but if you do want to get access to the free videos, just head over to the YouTube, our YouTube channel that has a myself McKell and Tim Jordan talking about Walmart.
[00:47:31] They're all free. Not pushing any courses, it's just getting you up on Walmart. You will be able to walk through this process. And, um, so this room is available every week at Thursday at one o'clock. We started a little late today, but we're going to be talking I'm I'm hopefully going to be talking about patents, the different types of patent, what should be per, uh, patents.
[00:47:52] Uh, patented the di the different types of patents, how you go about it and what to expect. So that should be next week with rich Goldstein, just trying to get the final confirmation. And until then, we'll talk to everybody next week.
Walmart | Ecom Weekly
August 19, 2021
Patents | Ecom Weekly
[00:00:00] Norm Farrar is probably one of the top. On casters in the world when it comes to making money online, selling online, he's phenomenal. I listened to his shows all the time and we have him today with rich. I have to drop off. I just wanted to come on and make the introduction. Um, but I will be listening to this session recorded because there are so many advantages by getting cut and for your business norm, take it away. All right. Oh, there we go. And banks, I appreciate it. Um, I'm really excited for this, uh, for this interview for this session. So thank you for all of that and the overview. All right. Very good and rich. I'm not sure it was just me, but you sound like you're a little bit distant.
[00:01:02] Um, it might just be my phone, but, uh, anyways, I said my name's norm Ferrara and I do have a podcast called lunch with norm it's the Amazon FBA and e-com podcast every Monday, Wednesday, and Friday. And, uh, before we get started on the session, I just wanted to mention a few things. The room will be recorded.
[00:01:20] If you have any questions, raise your hand and we'll bring you up on stage. If you don't want to be recorded. Don't raise your head. Uh, okay. One of the things that we do on this, um, in this room is we provide content and only con. This is a no pitch zone. So if you do come up, please, no pitching of any courses or anything like that.
[00:01:41] Finally, if you do like what you hear today, make sure you go up to start up.club and click that green house to get more notifications. Or if you like what you hear from the panelists, make sure you follow and ring the bell so you can get.
[00:01:55] Uh, notifications. We've got a great topic. We're going to be talking about. Um, protecting your brand with trademarks. It's going to be a real deep dive and we've got an expert in the field. Rich Goldstein. You might've seen him on clubhouse. He's all over. When it comes to intellectual properties, trademarks patents.
[00:02:15] And we're going to be talking to him in just one second. So actually that second is now rich. How are you? I'm doing great norm. Thanks. I missed you. I was at an event in Brooklyn yesterday that, that I normally see you at. So we definitely missed you there yesterday. Uh, and, uh, and yeah, I'm doing great. I'm excited for this conversation about patents.
[00:02:39] Oh, fantastic. Yeah, I wish I could have gone, but it's just such a hassle coming back to Canada. I learned my lesson a couple of weeks ago. Anyway, I, um, rich, why don't you just tell everybody who they, if they don't know you, who you are. Cool. Yeah, so rich Goldstein. I work with entrepreneurs to help them to protect their ideas.
[00:03:00] Um, and even more than that, I work with entrepreneurs to help them figure out when is the right time for them to protect their ideas. Um, because it's not always the best use of your resources when you're starting up, uh, spending lots of money on IP. There are certain things that you should do in the beginning.
[00:03:20] Uh, but again, uh, Well, when you're, when you're starting a company, your resources is the thing that you need to manage most carefully and the money that you might be spending on a patent, you could easily spend on many other things to help you in those, um, with those initial investments, those initial steps that you do.
[00:03:41] So, um, you know, in as much as I help people to protect their ideas, I also like to make sure that people don't put too much eggs in the basket and, um, in a way that would stunt the growth of their company. So I, I like to help them be strategic that's that's my thing. Um, that being said, I also have helped people obtain over 2000 patents for their various inventions that I do.
[00:04:09] Um, and, uh, I wrote a book, the American bar association asked me to write a book to explain to entrepreneurs how patents work. Um, you know, American bar association puts out a lot of books for other lawyers to read, but they wanted one for laypeople, for ordinary folk to read, to understand patents. And they tasked me on writing a book to explain it in plain English.
[00:04:29] And I did. It's called the ABA consumer guide to obtain. And, um, I actually, you can get a copy through my profile and we'll probably talk about that a bit more later, happy to send you a free copy, but that's really it. I'm passionate about helping entrepreneurs to understand how patents work so that they make good decisions about, uh, how to use them in their startup businesses.
[00:04:54] You know, I got a copy of your book and I thought it would be, oh God. Here we go legalees and I have a very small brain and, uh, it was awesome. Um, you know, so if you do get a chance, uh it's, it is free very well-written and you'll get a really great understanding of the whole patent process. So one of the things I want to talk about who is that ideal person to get a patent?
[00:05:20] Is it every Amazon seller that goes online? Who's the ideal target? Why should they get it? Absolutely. Well, okay. So, so first, um, we need to divide it into two categories, uh, in two different types of patents. So there are utility patents and design patents, a utility patent, uh, is the, is what you typically think of when you think of an invention, someone has made something new and improved.
[00:05:47] Like you have structural differences to it. It's, it's, it's, um, configured in a new way. It's got a new feature so that it works. Um, that's what a utility patent is typically for. And, um, utility patents are the more expensive kind. Uh, and then there's design patents, which protect the appearance of a product.
[00:06:08] So it just protects the overall look of the product. And, uh, traditionally people would say design patents aren't really worth very much because while you change the way the product looks and, and then it's not protected by that patent. But a lot of times we find on Amazon, Um, two things. I mean, first of all, we find that when people copy us, they don't get imaginative in how they do it.
[00:06:31] They don't say, well, that's a really cool concept. Let's um, you know, let's use that as inspiration to create our own product, our own similar product. No, they just copy it exactly. And if they copy it exactly then, um, and you have the design patent for that, the way the product looks, then you'll be able to stop them with your design patents.
[00:06:51] So design patents have become a very effective tool on Amazon. And I would typically say that if you have a distinctive looking product, you should do a design patent. It just, it just pays like, uh, in the long run. Um, if you average it all out with different products, different sellers, um, the ability to be able to stop copycats tends to be, um, uh, a huge ROI for a lot of sellers.
[00:07:20] And, um, so when it comes to design patents, uh, I feel like it's become more of a no brainer to do them. If you have a distinctive looking product, utility patents, it's different because you tele pen some more expensive and utility patents, as I mentioned earlier, are about kind of like, what is the thing that makes it different?
[00:07:40] What's the thing that makes it functionally different from things that came before. And so. In theory, you can protect things on more of a conceptual level, which can make them more valuable. But, um, only if it's a S only if it's a good patent, only if it's a patent that protects for that core feature. And let me explain.
[00:08:02] It's like a lot of times people think like, wow, you know, a, patent's not very valuable because you change a little thing and then you get around the past. Uh, and you know, all the people think that, um, you, you know, you have a new product idea, you need to do a patent because, you know, that's how you stop other people from copying it.
[00:08:21] And, you know, the truth is somewhere in the middle in that if in fact you have a new concept, like no one has done anything like it, you can protect that concept. You can get a broad patent that protects the overall, even like the category of what you're doing. But most of the time, the product is not as new as you think.
[00:08:45] Um, you think you invented a fidget spinner, but it turns out there have been many fidget spinners before. Uh, and so maybe there are some differences about yours, uh, and how it's structured. And yours has three rotating pieces and ball bearings on the inside. And so someone might tell you, well, you can get a patent, you can get a utility, right?
[00:09:09] But it would be limited to that structure because the concept is a new, so you can't get a utility patent for the concept. So now you're getting one that's more in the details. And so now this is a less valuable patent to get because all the people that see, um, wow, the public is going crazy for fidget spinners.
[00:09:27] Um, they don't need to copy the way that you did it because there's lots of other ways to, for people to keep their hands. Um, and it doesn't have to involve those like three rotating wheels with the ball bearings or whatever that your patent is limited to. So then that's not a very valuable patent. So just kinda, um, trying to give a full answer to your question to him about what an Amazon seller should do a patent.
[00:09:52] Uh, and I think, um, if we separate out the design patents and we're talking now about the patent on the concept, it really depends on how unique your idea really. Not just what you think it is, but what you verify by doing research, like is this groundbreaking and is the thing that makes yours different?
[00:10:11] Is that the thing that the customers are going to care about so that they only want to buy yours because you have that feature that's also patentable and that your competition only wants to make a competitive product if they could copy that feature, but oh, they can because you have a patent on it.
[00:10:27] That's when you know, you shouldn't be patenting your price. So let's go back to the, uh, design patent. The I'm just going to use the paperclip, you know, the paperclip. And then it was just, um, it was a smooth finish. Then it had a couple of, uh, curves, you know, the, the etching, um, which allowed it to be, uh, a new patent, a new design patent.
[00:10:51] Uh, how much do you have to do. Change your product before you can. Now, I guess with the utility thing, you just explained it it's much more difficult, but on the design end, how much do you have to change a product to get a new design patent? Oh yeah. Well, I'll give you the legal answer and the practical answer.
[00:11:11] Um, you know, the legal answer is it has an, has to be a non-obvious design, which means that you're changing in a way. That wouldn't be obvious to a designer. Like, so if you make yours a long aided and curved with a hook, like, even if, I mean, if there's no exact example of that, would that be something that kind of falls within the realm of what a designer would think to do?
[00:11:35] Um, that's actually the legal standard for whether a design is patentable compared to previous ones, but in practice it's a little hard to apply. Like well, okay. Making it more curved and taller and skinnier is that obvious or not. And you know, so as a practical matter, uh, you know, what I see with the patent office is that it really just needs to be different.
[00:12:03] It's not, uh, you know, I don't, I don't see many design patent applications getting rejected. Because they're saying, well, it's too close to this one. It's not the same thing, but it's a little too close. It's an obvious variation. So the legal stand that goes out the window a bit. Um, and so what remains is, as a practical matter, it's just gotta be different, but then let's talk about enforcement.
[00:12:29] So what does that mean? Like, so you make a bottle and your bottle is shaped, um, kind of a little bit differently. You've got a couple of extra grooves at the bottom. Um, and so, okay. You get the patent granted, but now if you want to enforce it against someone, the way that it works is that, um, the other product that you're saying is infringing a patent.
[00:12:52] Um, it needs to be substantially similar in appearance to your, um, to your design patent. Okay. That could be easy. It could look very, very similar, but it always has to keep in mind the prior. It always has to keep in mind the things that came before it. So it's like, let's think about a microwave. Like, so you have a design patent on a microwave oven with, um, uh, with a rectangular, you know, front and a, um, a key pad on the, on the side and then a curve door handle.
[00:13:25] And so, you know, when they examine your patent application, norm, they say, okay, it's different. It's different enough, that's granted, but then you see someone else that has a microwave. You know, that has like a rectangular front with a key pad and the curve door handle. And you're like, oh, they're infringing my patent.
[00:13:44] And this other person says, well, wait a second. If you look at the whole history here, uh, you know, you are, um, you know, you're not the first one to have like a rectangular front key pad, curved door handle microwave oven. There's lots of other people that have that general design. So, you know, I don't know, maybe yours is about the fact that.
[00:14:05] You know, the, um, you know, the, you know, the window has this kind of like undulating pattern on it. Who knows what the examiner had in mind, but what they didn't do is intend to prevent you from stopping people from making things that already existed. Right. You can't, um, you can't stop people from. Um, for making things that existed before your patent.
[00:14:27] So the, the point is, and I hope this doesn't get too confusing, but the point is, yes, you can get a design patent on even thin differences, but then you're also gonna have a thin level of enforcement to only things that are really nearly exactly the same as your design. You'll be able to enforce it against a, was that reasonably clear?
[00:14:47] Yeah, I think so, but it brings up another question. So let's say. I launched is really cool product that I tried to patent, but we didn't know that there was somebody already out in the marketplace. Who's been there for five or 10 years who does not have a patent. If you bring out yours and yours is patent acute, knock them off the market.
[00:15:13] No, because, um, well, here's the thing. So in deciding whether you are patent, um, should be green. The patent office looks to what's called prior art. Prior. Art are things that came before your invention before you filed your patent application. And prior art can be patents that existed previously. They, they generally are mostly looking at patents to see if there's a similar design or something of the same, that that would keep you from getting a patent, but it could also be things that have been out there in public more than a year before you applied for you.
[00:15:46] So that product from 10 years ago should have been, let's say if it was exact, um, then it definitely should have been the thing to prevent you from getting your patent. Um, so now, you know, few years later you did get your patent. You can't go after them. Um, because first of all, whatever they've been doing for 10 years was prior art to you, whether yours was close enough, enough.
[00:16:10] I mean, let me see. I put it, it's kind of like if it was close enough to infringe. That is close enough that it should have been the reason you didn't get the patent. Does that make sense? Yeah. Yeah, it does. Oh, okay. Why don't we stop here for a second. We'll get to, um, Benita, do you have a question? Welcome to the panel
[00:16:36] going once going twice. Okay. If you do get to your mic or if you can unmute, just let us know. Alright. And norm, let me just fill in something to, when you would ask about when people should do a pat. I think this is just a very important thing that a lot of people miss, and it really causes a lot of people to lose out.
[00:16:55] Uh, I mean, you just don't, most people just don't know this. And the fact is that if you put your product on the market, you make it public, then you quickly lose the rights to ever patent. And so, um, in the U S if a year goes by, from the time that it was public, then you've lost the rights to ever patent it.
[00:17:18] And too many people, um, kind of come to me a bit late with that. Like, they, they launch a product on Amazon or they, they just put a product out there and, you know, it's expensive to get a patent. And so they say, well, you know, what, if things go really well, then I'll go for a pet. But then they come to me two years down the road, sales are unbelievable and they know that they need to protect it.
[00:17:42] Um, and they tell me, Hey, I've been selling this product. I need to get a patent. And then I have to ask them the question, which I don't really want the answer to, which is, well, how long you've been selling it. And then they tell me, oh, we've been selling for two years and have to give them the unfortunate news that, well, it's true.
[00:18:00] Uh, you know, if it's more than a year, then there's no way to ever patent it. And their response is always the same. It's it's like, well, how could I have possibly known that? And the answer is, well, you probably wouldn't unless you were here today in this room, right. Or anytime I speak on stage about patents, I make sure that entrepreneurs know this because it's probably the biggest trap that they fall into.
[00:18:24] And then just one more footnote to that is that if you're thinking about international patent protects. The rule is even harsher is if you put it out there in public, uh, before you first apply for a patent, you immediately lose the rights in a good deal of the world. Um, the U S like I said, still has that one-year grace period, but a lot of the world, it's not true.
[00:18:45] You need to apply for a patent before you put it out, right. If you ever want to patent it, that's crazy. I, I didn't know that I knew about the one year like that. And that's called a provisional patent. Is that correct? Well, um, two, well, that's another one one-year thing. Um, I mean, provisional is a way for you to kind of stop the clock and get a temporary filing of sorts, um, that you then have a year to, to file your patent application.
[00:19:10] But what I'm talking about here is forget provisional. Like it's, if you didn't file anything and you just put the product out there, If a year goes by then it's too late to ever apply. All right. So, Phillip, I'm not sure if it was by accident, you raised your hand, but, uh, if not, welcome to the panel and what's your question.
[00:19:33] Oh, Hey, thanks for inviting me up here. So, um, quick question for, uh, for real. Um, so I've heard, you know, in the technology space, uh, you know, small tech startups they'd get outspent when trying to put up a legitimate battle against a larger organization. Um, I'm curious what your thoughts are, and just literally like being able to defend yourself against a, you know, an asymmetric well-funded opponent.
[00:20:03] Uh, yeah, absolutely. I mean, look, and, and, um, it, it, it's clear to all of us that, that, you know, big companies with lots of resources can be a problem and, and re in any type of realm, right? Whether it's in the legal realm or whether it's with regard to even marketing or advertising our problem, someone with more resources can wreak havoc to our plans.
[00:20:26] But I think a lot of those stories, I mean, there's a lot of folklore around it. Um, a lot of it comes from weaker patents. You guys I'll tell you something is patent battles, cost a lot of money on all ends. If you've got a strong patent that, you know, even a big company, they look at what you've got and they say, wow, this is pretty, this is significant.
[00:20:52] You know, of course they could spend a lot of money to try to just litigate with. But, um, it, it makes more sense for them to work something out with you if you do, if you're holding a strong hand. So I think part of the answer there is that it really depends on how strong your hand is. Um, a lot of the patents that I see startups end up with are just pretty crappy and they think that they have gold where they really have maybe bronze.
[00:21:19] Uh, and then they get into these battles cause their attorneys say, well, yeah, we could, you know, we can fight this and we can go after them and they're running up the bill and, um, you know, a lot of, you know, a lot of times, again, it's the hand that they're holding. Isn't very strong. I think that that tends to be the biggest factor, you know?
[00:21:39] And, and just even in terms of like licensing. Um, a lot of times people have an idea and they think that what they'd like to do is, is create a licensing deal with a company that could then take it on and distributed because they have the resources and they have the audience, uh, you know, they have the distribution channels and that's a fair strategy.
[00:22:01] But one thing to think about with licensing is that the rights you have is, is what gives you your level. It's the, it's the, it's the thing that gives you the foot in the door. It's the reason why they're talking with you is the strength of what you have, because then the, the ultimate answer is, is if they're going to look at your patent and if they decide, well, we love this idea, but we can't do it without them.
[00:22:25] That's when they go into a licensing deal with you. But when they look at it and they say, well, okay, He didn't exactly patent the fidget spinner. It's like his version of the fidget spinner. And we liked the concept of a fidget spinner, but we don't have to do it this way. You know, then it's like, whoa, okay.
[00:22:40] The big company they just got around my pants. It's like, no, you didn't have the patent that created the leverage for the situation. Um, and I think, uh, Know, you know, some people think like big companies evil and like they'll just crush you. Well, yeah, but they also typically take reasonable actions that are based on what something's going to cost and typically cost a lot less to work something out and pay a licensing agreement licensing fee, or work out a settlement with you than it is to go into litigation.
[00:23:15] Then. So, you know, that's, I think that's, that's some of my thoughts on that. Is that helpful? Yeah. No, thank you. That was super helpful. Um, I, so I haven't followed, uh, I haven't followed up, but I remember, uh, there was some situation with the Sonos speaker system. Uh, I think that they had gone into some kind of, I actually think it was a licensing agreement with Google.
[00:23:37] And, uh, from what I remember, there was some issue where it became a really. Um, litigants really ugly situation. I think Google had created their own, um, you know, smart speaker and Sonos was like, you, you, you basically stole our, our tech and, uh, anyway, I'm reminded of that situation. And I'm curious if you'd had, if you'd heard about that situation or, uh, your thoughts on, on something where a licensing kind of situation goes sour.
[00:24:04] Yeah, no, um, I, I'm not up to date on that, but I think it's, it's similar principles of play. If, um, Sonos, you know, really had the patent that was preventing what Google wanted to do. Um, then, um, it's, it's more likely that they'd come to a, uh, that they'd come to an agreement than not. It's just always a cost benefit analysis.
[00:24:24] Right. And, and no, no one wants that litigation, but apparently just reading into it from the outside, not knowing much about it. I would say that is probably a situation where. Um, you know, Sonos is putting more value on what they have then what Google is seeing. And then ultimately there's a breakdown in negotiations, but you reminded me of it, but it's good.
[00:24:46] Your you, your follow-up question reminded me of another point I wanted to make about that, which is that, um, you know, the strength of your hand comes into play in an additional way in that if you've got the strong patent, even against a huge company, Um, there are people that will come and represent you on a contingency fee basis.
[00:25:08] There are, there are contingency fee attorneys in the IP space that like, if they see that they've got a great case against, uh, a big company where there's millions of dollars at stake, they will take it on. The problem is most of the time, it isn't that good of a case. And, uh, and that's what it ends up being like, wow, all they can get all the attorneys that they're paying.
[00:25:32] Uh, hourly, um, to, to, to bring the dispute and it's not, um, you know, it it's, it just seems like a big waste of time and money and, uh, the big company, like just. Um, keeps the thing, keep prolonging the litigation and making it more expensive again. I think it usually just trickles back to just the efficiency argument here is like, if you have a strong hand things, you will have the ability and the leverage to work things out.
[00:26:05] So super helpful. Thank you so much, rich. Really appreciate it. You know, rich, one of the things that I was thinking about while you were talking yeah. The policing of the patent. You have a patent, but it's no good if you can't police it now, how costly is that? Yeah, well, it's extremely costly. And so here's the thing.
[00:26:28] Like, I, I don't, you know, I don't look at it that same way that if you have a patent, what good is it? If you can't police it? Um, I think, you know, you don't get a patent for the honor and privilege of being able to spend a million dollars or more on a patent literate. You get a patent because it tends to keep 80% of the would be wrongdoers away.
[00:26:49] Now they'll always be people that decide to just, you know, challenge you and, um, and take the riskier approach or just kind of, um, you know, just, they just want to do it and they don't care. Right. They'll always will be those people, but the majority, or I think 80% of entrepreneurial. And you could even ask yourself this, like when you see a product and you see a patent number, well, you see a product and you're thinking like, Hey, I'd, you know, this might be something cool to go into this area and you see a patent number you said, okay, well maybe not.
[00:27:24] Um, and. That's what I think happens 80% of the time. And I think that's the number one reason why you do it. And the other reason you do it is because it gives you that leverage. It's the thing that gives you the foot in the door. It's the reason why they're talking with you is because you're the one with the patent.
[00:27:40] It's the reason why the investors are interested in talking with you about, um, about investing is because you have proprietary. Harry writes, um, I very, very few of my clients have ever gotten involved in litigation, like, uh, Much less than 1%. Um, and, um, I think that the, again, the bigger reason you do it is to establish your rights and it acts as an effective deterrent for most people.
[00:28:07] It's not perfect. Um, you know, there will always be people that will challenge you and, and, you know, usually the things that do end up in litigation or, you know, the successful companies, you have success. You get bigger than other people want to do what you're doing. So it's kind of like, um, uh, you know, ultimately it's because there's money at stake that it's worth litigating anyway.
[00:28:31] Um, if it doesn't turn into much of a product, then it's not worth spending the money on litigation, even if you did get to that. So another thing I wanted to talk about, you know, there's a lot of entrepreneurs, sellers that are trying to get either an e-commerce store Shopify store, and it might be getting onto Walmart or they're getting onto Amazon.
[00:28:54] Uh, and they want to do this on the cheap and they might go to like XYZ, legal.com. Um, any thoughts on that? Uh, yeah, I mean, I've a lot of thoughts on that. And I say in general, it's like, um, th th to me the biggest thing, the biggest reason why you do this stuff, the biggest reason why you do a patent is to get a good patent.
[00:29:24] Um, and the most important thing to do in the beginning is IP strategy. Cause it's kinda like this. It's like I've worked with startups and I have lots of friends who are, who have startups that, um, you know, that I didn't know when they started things up and like I've taken a look at some of their, the work that's been done for them.
[00:29:43] And you know, a lot of times it will go like this, a startup will say like, you know what? We've, we've got these six patents. We want to file. And we just did a series a and, and where, um, you know, we've got some extra money, so let's shop around and let's find out who can do these six patents for us, you know, at, uh, you know, you could even say as cheaply as possible or some balance between reasonable and someone who we feel like, you know, we trust.
[00:30:11] So they shop around though from the standpoint of let's get these six patents. But then when I've looked at it later on, I, I might say, Hey, you know what? I don't think I would've filed these six is actually three others that you probably should have filed. Um, or, um, or maybe none of the above. Maybe you should've put your attention on, on trademarks in your brand.
[00:30:38] Uh, maybe that was the best IP for you. Maybe you, um, is really wasn't well developed at the time. And we should have waited until you had something that really was kind of one of those features that are worth patenting. Um, so yeah, a lot of times what happens when people go that route, they're just thinking in terms of, I got a patent that I need to be filed.
[00:31:00] I've got three patents I need to be filed is they end up finding someone who's willing to file the patents, but skips the whole strategy. And to me, there's just nothing more important than the strategy part and dovetailing into that strategy. Of course, having someone who could effectively help you with the strategy is great.
[00:31:17] But I think a lot of it is on you as the entrepreneur, the more you know about IP, the better prepared you are to discern and say, oh yeah, like, now that I understand this, I don't really think that patent would be so valuable for us. And maybe the, this other approach we should. So, you know, like, yes, there are companies out there and discount that to do discounted work, but it's skips the whole strategy part is one.
[00:31:45] Uh, and of course though, also you get what you pay for. There's a lot of really crappy, uh, patent work out there, even issued patents that I read and I'm just appalled. Uh, you know, sometimes I get them where the resumes, where people are applying for a job with me. And I always ask for writing. And they send me some of the patents they do.
[00:32:05] And, um, and they were actual patents that went through that got through the patent office. They were approved. But when I look at them, I'm just appalled by the writing and I'm appalled by the way they were organized. And yeah, there's just a whole range of what's available out there. Um, and then again, you know, it's the strategy that you don't want to skip and you don't want to skip the education, which, um, Hey norm, is it okay if I just tell them about them, about my book and just the quick way to go.
[00:32:31] Yeah, absolutely. Okay. So as a, I mentioned the beginning American bar association asked me to write a book to explain to entrepreneurs how patents work in plain English. It's called the ABA consumer guide to obtaining a patent it's on Amazon, but I'm happy to send the copy to anyone who wants one seriously.
[00:32:49] Like I'm, I'm passionate about educating people about this and having them make good moves for their company. And the easy way to get that is, I mean, if you're in front of a computer, you can just type into your web web browser. Patenting.club, P a T E N T I N g.club. Or you can click to my profile and then click my Instagram link.
[00:33:10] And then it's the Lincoln bio. It's the link in my Instagram bio. We'll get you to this page where you can just fill out a form to request a book. And my office will just order you one on Amazon and send it to you. And I'm happy to send it to anyone who wants to learn about this stuff. You know, I, I send out a lot of books to people.
[00:33:28] Some of those people come back around to become clients and that makes it worthwhile on that level. But, uh, I'm just happy to, to help educate anyone who wants to know about this stuff. So just please feel free and, and, uh, thanks for letting me do that. And thanks. And back to you. All right. And like I said before, I have the book read it as it's it's very good.
[00:33:50] Okay. I'm just gonna, we set the room. Uh, first of all, uh, we're at, okay. It's our, e-commerce a weekly podcast, not podcast room. And we're talking about patents, understanding patents today with our guest rich Goldstein. Uh, if you have a question. Please raise your hand. You can come up and, uh, you are being recorded.
[00:34:12] If you don't want to be recorded, don't raise your hand. If you like what you're hearing, follow our panelists. Follow rich. Follow me. Follow Olivia. Um, if you want to hear more about startup club. Hit that green box and you'll get notifications. Now I will say that we'll be closing off questions in the next few minutes, but if you do have questions and I can't believe that rad Dion, Rosalyn, Chad or Jim, do not have questions.
[00:34:40] I know they should, but, uh, anyways, throw up your hand and we'll get you up as a panelist and we can talk about anything you have, uh, ideas for, uh, or questions for, uh, Okay. And we do have a question. Oh, right. I knew Jim wood. Okay. There we go, Jim. Yep. You should be. Yep. You're up. Thanks, Darren. Uh, really don't have a question.
[00:35:06] Uh, uh, per se, we did, uh, I have five patents. One utility will be for design, the utility patent. We did license out and. It was a very good process. Uh, the lawyer that we used, uh, was a medical doctor that got bored being a doctor. So he went back to school. He wanted to get into IP. And the patent that we, uh, had was, uh, for a quasi medical device, I had three partners.
[00:35:42] One was a doctor. Uh, the other characters, uh, did some other stuff. But what was interesting is that, uh, the claims that our lawyer, uh, put together, he never thought the patent office would approve of them. Very broad claims. They basically, uh, flew through the, uh, review process. Uh, we were issued the patent.
[00:36:08] We did, uh, go out and get additional, uh, uh, protection in other countries. We, uh, had an individual that contacted us that had just sold a business that was flushed with cash. And he wanted to get into a new venture consumer goods, uh, using this patent that we had. And the interesting thing is that the upfront money, uh, we got like six figures upfront, just, uh, give him the exclusive rights to a five-year, uh, patent.
[00:36:43] Uh, we then, uh, structured a minimum, uh, royalty that he had to pay us the company. And it was a very good, uh, scenarios. So I personally like the licensing routine and with the design patents, what I've done when I was selling on Amazon, uh, I did design patents because there were quicker less money and it keeps honest people, honest, the crooks are the crooks.
[00:37:14] They're going to do whatever they're going to do. And you know, it's worked for me, you know, it's like, if you really have something. Solid that is patentable, uh, you know, go the utility route and you know, Rich's very, I've listened to him in many rooms. Uh, he, you know, it's just something that people need to take a look at and I've enjoyed listening to the conversation today.
[00:37:41] So really more comments than questions norm. I'm done talking. Perfect. Thanks, Jim. Yeah. Thank you. Rich. I've got, uh, another question that is fairly broad, but what are some of the more common mistakes people make? Um, yeah. Okay. Well, I I'd say probably the most common mistake that people make is to, um, move forward on just the answer that your invention is patentable without understanding what it is that they will be passing.
[00:38:18] It's just going back to the point I was making earlier of like there's different levels of patenting of patents. There are some patents that are very broad and very valuable, and there are some patents which are just all about the details and they're very specific and they don't have much value. And I think, you know, conventionally, when people start the process, they have a patent attorney do a patent search and the patent search will give them, uh, a bunch of copies of other similar patents.
[00:38:46] And the attorney will say, okay, well, it's, it's still patentable. But the question they don't ask is like, well, what part of it? Like what, what aspect of it? Because the attorney could just be saying like, well, yeah, if you, if you have this space, if you take all the things about yours that are very specific, we could make some claims as Jim was mentioning patent claims, that's kind of how you define, like, what's the combination of things that, that would make it infringe.
[00:39:13] You can make some very specific claims where it's just things that have ABC, D E F, G, and H. If it has all of that, it's going to infringe the. But obviously if the competitor leaves out D they're not going to infringe, that's not a very valuable patent. So I'd say very common mistake is just to not understand that you would be getting a very specific patent, if anything, and just getting excited by the prospect of like, oh yes, we can go ahead and get a patent.
[00:39:42] Um, you should ask some deeper questions there, um, to, to understand what, um, you know, what the patent would actually be.
[00:39:54] All right. Very good. So, uh, I think we're going to be closing up the room, uh, after this question and that is, are there any last comments? Okay. Last comments. Well, um, so I mean, first of all, I, I just something that we didn't tackle. That, that I, I just think it's probably worthwhile patents and trademarks because in the beginning you had said, we're gonna be talking about trademarks and then we flipped it around the actually last time we talked about trademarks, but it's so common that people just don't have those clear people will say, Hey, you could, um, you know, that's a great idea for a product you should copyright it, or that's a really cool name for your product.
[00:40:35] You should. And I think it's just worth just, um, just dispelling any of those notions of what you can protect with what, and so, you know, first of all, if it comes to content like images or writing, you know, um, usable composition, um, you know, the, um, you know, the content of a program of some kind, like in other words, like a, like a learning program or.
[00:41:05] Uh, things of that nature, any content is protected with copyright, um, when it comes to branding, when it comes to the thing that you use to show people that, Hey, this is something from my company like, and that's usually the name of your company. It could be the logo. It could be a slogan, could sometimes be a color scheme on the packaging, such that when people see it, they think of your company and that if a competitor.
[00:41:32] Um, so I, um, so, um, if a competitor use those items, uh, to, to mark their product and put it out there that your customers might think, oh yeah, that's another one of, of Jim's products. Right? That's what trademarks are for trademarks are for pretense for, for protecting those things. Like the name, the logo, the, um, uh, slogan things that if a competitor were to use it, it would create a likelihood of.
[00:42:01] So trademarks protect branding. So copyright protects content, trademarks, protect branding. And then lastly, when it comes to products, product ideas, uh, the thing that makes the product different, the, um, the overall design of a product, those are the things that could be protected with patents. So we think copyright C for copyright C for content.
[00:42:25] Uh, P for patent P P for product ideas, um, branding doesn't quite fit with M T for trademark, but close enough, but that's a, that's just a good way to remember it. Good way to separate those three out those three different categories, because whatever it is you do, you want to make sure that you have the right category of protection for the thing that you want to protect.
[00:42:49] That's a great way to close the room. So once again, Thank you. Rich, you, you gave us a ton of knowledge. If you liked what you heard, please follow rich and hit the bell so you can get more notifications. Rich's all over clubhouse. He's dropping knowledge all the time. And on that note, we will see you next Thursday at one o'clock at e-comm weekly.
[00:43:14] Thank you so much for being part of this community and we're going to close the room. So thank you.
Patents | Ecom Weekly
August 26, 2021
Trademarks | Ecom Weekly
You're listening to e-com weekly and we have this room every week at one o'clock. Um, we try to bring different topics.
[00:00:22] To help entrepreneurs and e-com, uh, online sellers really sort of bring your business to the next level. We never promise get rich quick Lamborghinis and unicorns. You know, we're telling you the real McCoy, you know, how we got here, success. More failure than success, but we tell it as it is. And if you hear anybody saying that, they've just did it, you know, it was always, you know, bubbled, you know what, what's the term unicorns and bubblegum or whatever it is run.
[00:00:57] It's not a true entrepreneur. Anyways, today we're going to be talking about something so important. It's going to be, uh, I've got an expert here. You just logged in rich Goldstein, and we're going to be talking about protecting your product. So getting your product, doing competitive research, getting it launched and all of a sudden.
[00:01:21] You find out that you either don't have the right to it. Um, somebody got a trademark it's already patented, and we're going to talk to you about how to go about protecting that. But before I get into that, I just wanted to let you know that this is a gift to get, um, uh, environment we want to share as much as we can.
[00:01:42] We are not pitching. And we ask you, if you come up to ask a question, not to pitch, we. Hearing questions. So put your hand up since this is a recorded, uh, room. If you're not willing to be recorded, don't put your hand up, but we want people. We want that interaction and please by all means, engage with. Also, if you love what you hear, make sure that you click the startup club, um, greenhouse, so you can get notifications up in the top left and make sure that you follow the panelists.
[00:02:17] So I think I got everything. Uh, Jeff Jesse expert. Yeah. I'll just add norm. Thank you. Um, excuse me. I would just add that, uh, this e-comm weekly show is part of startup club. And if you go to startup.club, our website for the club, you can find recordings of past episodes of e-com weekly and other great recurring shows that are on startup club.
[00:02:39] And you can also sign up for our mailing list so that you can be informed of special events, upcoming shows and everything cool, and new and interesting in startup club. So thank you for that. Thank you. All right, so thanks Jeff. Without any further, uh, oh, what am I trying to say? I told you guys, I just got back from a three week trip business trip.
[00:03:05] So it was all no fun. What, a little bit of fun. Anyways. I got to get my mind straight and I think I got a little bit of a cold, but I want to. Our expert panelists today, rich Goldstein. He's a great friend of mine. I got to know him through, um, events, actually through a friend of a friend or through a friend and we just have become great buddies and this guy knows his stuff.
[00:03:29] So rich, welcome to the, uh, to the room. Hey norm. Um, so, so great to see you here. And, and I would say on that business trip, you did have quite a bit of fun. And I have, I have the pictures to prove it. So still write it off, but you did quite a bit of fun and I'm sure of that. Okay. All right. So I, I, and also, I guess I got to pay a couple of bucks not to publish those pictures right now.
[00:03:55] Yeah. Well, I'll just, I'll just keep them, uh, you know, I'll keep them private for now, uh, close to the chest. Yeah, absolutely. Absolutely. No, I'm, I, I really appreciate you having me here today. Uh, and I appreciate all the kind words as well. Uh, and just one thing I want to note about startup club is I got onto clubhouse in December.
[00:04:15] So I was kind of on the early adopter curve, let's say, and start a club was one of the first clubs that I encountered and I was so impressed. I watched one of the, the, the, um, pitch panel feedback sessions. And I was just really amazed by the quality of the feedback that was being used. And I promoted it to a lot of people.
[00:04:36] I told a lot of people that, that if you want to really see how business people approach a pitch and how, um, how they hear things that you might say when you're pitching your product, pitching your venture, then check out the, that, um, that feedback session that, um, that the startup club was doing. So, um, I've been a big fan of, of, uh, startup clubs since the, my beginning of clubhouse.
[00:04:59] And I just wanted to say that. Oh, yeah. And that's great. You, you actually, um, right from the beginning, you came out, you were telling people, people don't realize sellers don't realize entrepreneurs. A lot of the times don't realize how important it is to protect your IP and not to do it on the cheap, like there's there's uh, and we've had, uh, the, actually, I think it was one of the first times we sat.
[00:05:29] And we were talking about, um, a trademark I was trying to go under or one that I was suspicious about. And, and you were explaining to me, you know, these are, this is an area that you just don't go, oh, I'm going to go to whatever.com legal.com and file my own trademark. So can we start with trademarks because I think that's the, probably the simplest.
[00:05:50] Why should somebody patent or, um, uh, create a trademark and how easy is it to. Yeah, absolutely. And, and, uh, and so I want to touch on what you said there about, um, doing it on the cheap. Yeah. And, um, I think part of that is it, it it's, it's, um, a bit system, um, symptomatic of having the wrong focus. So like it's not even strictly about doing it on the cheap it's it's, um, it's about having a focus on the wrong thing.
[00:06:20] And I'll just give you an example of that. A lot of ventures will say, well, we want to get idea. We want to get some patents and we have these four innovations in our SAS that we want to get patents for. So let's, um, you know, let's budget to apply for a patent for, um, these, um, these four different, um, ideas, these four different concepts.
[00:06:43] And then like what happens then is that maybe they begin to shop around for different firms and maybe they're shopping by price and go for getting it down on the cheapest. But what happens then is their attention is in the wrong place. Their attention is let's get these four patent applications done, or two trademark applications, for example, um, where their attention really should be on let's figure out what we ought to be protect.
[00:07:11] Let's figure out what IP strategy we ordered to take forward. And I've seen a lot of companies, a lot of, um, venture backed startups, um, put money towards IP, apply for those four patents. And then when I got into the picture and I looked at it, I said, you know, these four patents, you applied for Warren, really the right direction to go.
[00:07:31] There were these two others that you should have done. And so it's like, No I'm doing it on the cheap is I think part of a bit of the, the, the wrong direction to take it, which is to not look at strategy first. So I'm a big proponent of figuring out the strategy. First, figure out the why and figure out how the IP you get could serve that.
[00:07:53] Why? So just wanted to say that now I'm now going to the meat of your question about trademarks. So the reason you would want to get trademarks is to protect your brand. To protect the things that differentiate your company from other companies out there in the marketplace. And when I say differentiate, what I mean in particular is, is the impression on the consumer.
[00:08:17] So when consumers see your, um, your branding, when they see aspects of your company that have them think of your company and your company, Those branding aspects can often be protected by a trademark. And that could be the name of the company. It could be the name of a product. It could be the logo that you use to represent your company.
[00:08:39] Um, it could be a slogan that you use and those different elements that when people see them, they think of your company. Those are the things that you typically want to get a trademark for. Um, Uh, applying for a trademark is relatively simple, but it's highly nuanced. And what I mean by that is, um, the trademark application itself may be, takes 15 minutes to do, um, Knowing what you want to say in that trademark application, knowing how you want to, uh, differentiate your product from others that are out there in terms of the type of product or services that you're applying for, and even picking which of the elements of your branding that you want to apply for.
[00:09:29] That's a matter of strategy. Um, and that's where cheaping out. Doesn't pay. It's kind of like, you know, you can go to one of those services, like legal zoom. And say file this trademark application for me. And, um, they can do an okay job of doing that. And, and probably 60% of the time they won't mess anything up.
[00:09:49] Um, but two things, um, first is, was that even the right trademark that you should have been applying for. Um, and then the other thing is, well, you know, the other percentage of the time that something does get messed up, either resulting in a rejection. Or resulting in a problem down the road where, you know, three years down the road, you did get a trademark, but now there's an issue with a competitor that could have been a non-issue if the trademark was handled with the right strategy.
[00:10:20] So, um, I guess those are the considerations in doing it on the cheap and, and what it takes to actually apply for a trip. One of the things that I do when, whenever I'm either looking at launching a new brand or launching a company, uh, I'll do my initial research. So I do it myself. Uh, I'll go and I'll check out the competitors.
[00:10:43] I'll try to figure out a name and then I will go over. Uh, I mean, one of my first moves is to go over to the, uh, U S PTO, uh, dot gov site. And just do a quick name search, which is free on tests to ESS as the government databasing rich, correct me if I'm wrong. This is, uh, you know, I'm a very simplistic old guy trying to figure things.
[00:11:07] But anyways, this is what I do. And so then after I do that, I also go over to, I think it's called name. I'm just checking this out on my computer. It's named check. Um, and w named check spelled N I sorry, name C K. I believe our chk. Um, it shows you anything that's open on the social media platforms. Once I get to that point.
[00:11:34] Is probably when I'm going to call you or an IP attorney and, you know, there is a difference. There's a huge difference because just recently I, um, I had a, uh, uh, a trademark that I, uh, I tried with a attorney that was just, um, he didn't specialize in IP. Well, It got written up. It didn't get rejected, but there were people coming back on me because I guess the definition of the, um, the class or the classes I was, um, trying to file for, weren't correct.
[00:12:13] Almost just like what you were talking about and they had no idea. They thought they were doing me a favor. I thought, okay, well, you know, let's, let's give it a shot. From now on forever. I'm not like I'm not gonna go with, you know, somebody who practices law or just, just practices law. I'm going to a specific IP attorney.
[00:12:34] So, you know, I learned my lesson that way. So thoughts on that? Yeah, absolutely. And so, um, you know, so first of all, um, you know, any attorney can file a trademark application. And so if you ask your contract attorney, Can you file a trademark, they'll say, sure. I'll, I'll file it for you. And maybe they filed a few before.
[00:12:55] Um, but the difference is that, uh, like a IP attorney who specializes in trademarks for example, has probably filed thousands. And a lot of times that experience comes into play in how they approach the applicant. Uh, you know, how they counsel you with, with regard to what can get through. And what's going to be a big problem getting through the trademark office.
[00:13:18] So it's, you know, as I said, trademarks tends to be fairly nuanced. It's like, it's like a little difference. Can, can, um, uh, or just a little piece of knowledge, a little piece of experience with maybe something previous. Uh, that's similar, um, in, uh, in the fact pattern can make a big difference in how they are and how an IP attorney approaches it.
[00:13:41] So, uh, you know, I think it's, um, uh, it's extremely worthwhile to have an IP attorney, um, work on the, your, um, your IP essentially. Um, you know, and, uh, um, and so just going back to what you were saying before about your initials. That all sounds great. I mean, that sounds like a great thing to do, do some homework first.
[00:14:04] Um, the thing about self searching is it's not terribly difficult to find, um, all their marks that are similar to use those search tools. The things that that you want to be aware of though, is that you don't necessarily, you're not necessarily going to know what you're looking at and you're not necessarily going to know.
[00:14:26] For example, like you find a mark that's very similar to yours. Does that prevent you from doing it or not? Because like there's some odd concepts and trademarks, like one, one concept. So check this out. So it's like, if you've got a mark, you've got a name for it, product and someone has a very similar name already registered.
[00:14:50] Ben, that could be an issue, obviously, because that could cause consumer confusion and prevent you from getting your own trademark. It could mean that the other person has an opportunity to go after you for confusing their customers. So finding one that's similar to yours in the same field can be a problem.
[00:15:10] But if you find two, then that actually it points in the other direction that tends to show that maybe there isn't a person. Because it's like, if there are, if there are two or three or a bunch of other people that have similar marks to what you're seeking to pursue, then that tends to show that the public isn't thinking about any one of them in particular, it would be hard for any one of them to say, well, yeah, if you were able to get your trades.
[00:15:38] Um, if you were able to launch your product and then this name, well, while the customers would think that that where you, and like they would get confused and they would end up buying from you instead. It's hard for them to say that if there are actually several other people that have that item or that have that type of mark and what that points to is something called distinctiveness.
[00:15:59] It's like how distinctive your mark is, how much it sets your brand, apart from all the brands. Is the extent to which it's trademarkable. But my point here is simply this norm. It's just that a lot of times when you're looking at your search results, you might not necessarily know if they're good or bad.
[00:16:19] Right. Uh, and another thing that comes out of a professional search often that doesn't necessarily sort of most amateur searches is, is knowing what types of alternatives to look. Like look for other, um, other spellings, for example, all the words that sound like, kind of like homonyms, um, because on the trademark law, if a, if a mark is spelled differently, but it sounds the same, it's still probably a conflict.
[00:16:47] So there's just things like that to have in mind. But I think your approach of doing some homework ahead of time is, is great. And I think it's really helpful. Uh, like to me as an attorney, when, when my clients come to me having already done some homework, you mean I'm doing something right. You know, sometimes we get things right.
[00:17:08] You know, by chance or yeah, you you're doing a lot. Right. Know him. That's right. So the other thing about this is a trademark is not a trademark is not a trademark. There's different types of marks out there. Can we get into that? Um, yes, but, um, Okay. Like, I, I think I know what you're getting at here is that like, for example, there's like a logo mark.
[00:17:32] Yeah. Word design, mark. Wordmark okay. Yes, absolutely. So here's the thing, um, w when you are, if you have a brand name, um, and so this is a distinct name for a product in your field, then usually the first angle of approach is to get a word mark registered. So the word mark is then for that name, Regardless of, of how it's presented.
[00:17:58] So regardless of whether it's presented in a fancy font or in plain text, or what have you, or in other words, it's separate from the notion of the design or the logo. Um, like you could have your name embodied in a logo. That's also distinctive, but that's usually not your first angle of attack. Typically it is to apply for the word mark to protect that name.
[00:18:25] So that it's prevents, it prevents other companies from using a mark that's confusingly similar again, regardless of what style or presentation it's about the name itself. Uh, and then, you know, often the second angle of attack is to go toward the designer elements, protecting for example, the, the logo. So the logo mark is helpful to, um, to prevent other people from using a logo that, that looks like yours, even if it's a different.
[00:18:55] So if it's a different word, but it's presented in a similar color scheme, similar style, such that it could confuse the. Then that's, um, you know, that could be a trademark infringement that I think an example of mine, and I'm going to date myself here significantly. And anyone who's from New York will know what I'm talking about.
[00:19:12] So going back to L street in the eighties, um, it was like a, it was like, uh, uh, canal street in New York city in the eighties was a big flea market. There was all kinds of knockoff products there. And I remember seeing a set of headphones that they look like Sony Walkman headphones, but it didn't say Sony.
[00:19:31] He said, Uh, and it was the same writing style, his Sony like big wide block letters, C O B Y. And you know, at first glance that really looked like. Um, and so that's an example of, of when, um, a logo mark or a design mark would be helpful to you. It was like if you have, um, if you have a competitor not actually copying your name or the name of your product, but they're copying the way that it's presented such that it would confuse the public, then that's a good candidate for the design mark or a logo.
[00:20:09] And I think, are those the types of, of, um, registrations you were referring to? Yeah, absolutely. So and enrich for our Amazon listeners, which I see a bunch here. Um, and they probably already know, but if you're new to Amazon and they talk about brand registry, is there any specific trademark that Amazon is looking for?
[00:20:33] Um, yeah. I mean, they are looking for the word. Um, I mean, because the word mark is what is, what says that this brand name is registered for you. Um, and, um, there's many reasons why, um, it's possible to get a design mark even, um, when the word mark is not possible to obtain. So, so like naturally, and I'll give an example of this to clarify that in a moment, but so.
[00:21:01] Uh, Amazon doesn't favor you doing a design mark or a logo mark. I've heard of people getting their application, the brand registry with a logo mark. It doesn't make sense to me that they could. And by and large though, I've heard people rejected for a, uh, um, if they try to submit a design mark for brand registry.
[00:21:22] And so, but here's the thing. And here's the principle. It's kind of like one thing you can't usually trademark is a descriptive name. So like, imagine like, you know, you're selling red licorice and you want to call it red licorice. You can protect that because it's descriptive or maybe even generic of the product.
[00:21:40] But if you have a really cool logo for red licorice, um, you can get a design mark or a logo mark for that. Um, you know, red licorice with this design. And, um, the trademark office would allow you to do that. And typically what they have you do is something called disclaimer, which means, um, you admit that you're not trying to prevent people from using the words red licorice, um, other than at part of this really cool looking design logo that you have.
[00:22:12] Um, so. You know, if, if let's say you were selling on Amazon and you try to go for brand registry, um, and you you're trying to stop all the people essentially from, from using the words red licorice, um, you know, Amazon doesn't want to give you that. Right. And they, and they shouldn't, uh, and, and rightfully it's, and that's the reason you were only able to get the design mark and not the word mark, uh, is the same reason why they shouldn't allow you to have brand registry.
[00:22:44] Because you really should not have the ability to stop people from using that phrase. So, uh, Amazon will be looking for the word mark to see that the trademark office actually said, yes, this is a distinctive name for you. And you have the right to exclude other people from using this name in the context of your type of product or service.
[00:23:03] So, um, so that's how that plays. Yeah, I don't usually reach out to the audience about this. Usually they'll raise their hands if they want to have questions, but I see a bunch of Amazon's tellers here. And if you, if you're not an Amazon seller, um, the reason why I'm asking this is to get all the little bells and whistles at Amazon.
[00:23:26] Um, wants to provide you. They want to have this thing called brand registry, which means you need to have a trademark. So I'm looking at all these people, Rosalyn, Jani, rad Anket, uh, Marsha, Joe Neri. Most of these people I met in Vegas, by the way you did too. Um, so that's another reason why we have to reach out there and network because you get to meet great people.
[00:23:48] But do you guys have any questions? Have you got any stories about. You know, things that have happened while you were trying to register with, um, with brand registry or trying to get a trademark. I'm just curious. So if you do just put your hand up and we'll get you up on 'em. Oh nary. Of course. There you go.
[00:24:07] So now he's coming up. Hi guys. Sorry to see you guys. I have a quick question. So my brand name is brand registered like ABC, uh, brand and it's, um, five days award, um, mark, whatever you just call it. And I realized later, Um, it's all opera case and I talked to Yale and she said, it's all opera cares. It's okay.
[00:24:39] My brand name is represented and bred registry as like, because right now I've been just habitually using a as opera case BC. D as a lower case, but then one case where I'm as going to send me like, Hey, this are matching your brand name. And I'm like, no, it's matching. But then I realized actual trademark is showing up as all uppercase and Yale said that that's okay.
[00:25:04] That I don't have to go try to fix it. Is that correct? Do you agree with that? Yeah. I mean, um, the most typical way that trademarks are presented is all up here. Uh, I mean, if you're, um, if you're seeking to, um, do it in some other pattern, like that's secondary almost the, the way in which you would, um, register a logo, it's like, then you're going for the stylization of it.
[00:25:34] But, um, all uppercase will typically be sufficient. So it's okay. When I use my brand name, um, And it's w I I've been using just one opera case and the rest is the lower case and that's okay. That's not, not matching the brand like treadmill. Yeah, no, it's, it's, it's not, um, you know, that's, that's not an issue in itself.
[00:25:58] Like it's not an issue with it not matching. And I think the bigger thing you want to, to be concerned about is whether other people, if they change. The way in which they presented it with different combinations of upper and lower case, would they be able to avoid your trademark? And the answer is, is almost definitely not, uh, because the standard is likelihood of confusion and people would be confused between the two, whether your mark is registered at all upper case, and then they present it as a whole load case.
[00:26:27] It doesn't, that doesn't make much difference. So, so yeah, you're you're okay. Is the, the short answer is you're. Okay. And the larger answer is a yell is correct too, since she's a fine trademark attorney. Um, rich, um, this is Jeffrey up in the corner of question related, I think what about a space between two words?
[00:26:46] If you have a two word name that you want to trademark, and when you use it as your domain name, for example, there's no space between the two words, but when you use it outside of that, you might have that space. Does it matter if you trademark it with or without the space between the two words? Yeah, absolutely great question.
[00:27:06] And it's a different issue that that creates it's called a specimen issue. So when you apply for the trademark, uh, they want to see, um, an example of how you use that name out there in public. How do you use it in commerce? Um, and that example needs to match, um, how you applied for it. So it's like if, for example, You apply for it as, um, as a single combined word, but yet you are, um, presenting it, um, like on your website, et cetera, as two words, then you'll get a rejection, but the specimen not matching.
[00:27:45] So you want to apply for it exactly as you use it. Um, so, so there's that. But then the other side of it is, um, then competitors, whether they, you know, they do the same thing as yours, but they don't put the space in, well, they do put the space in, or they hyphenate that usually will not get them out of trouble with you for trademark infringement.
[00:28:07] So, but what you want to do is you want to, um, when you're applying for it, you want your space summons to match, um, to match how you're applying for the mark. And so for that reason, make sure it's correct. So rich. Um, and I, I know this is all logical. What you're talking about, Amazon is not logical. Um, I've seen, and I I'm working this out with a client right now where, um, they have something, they have the brand all in upper case.
[00:28:42] Sorry. It's it's all in lower case. They have it on Amazon is uppercase. They, they just messed up. They've got three different versions of it and Amazon has put a hold and a suspension on their list. They're not sorry. They're not, it's not a suspension. Yes. So it is, it was, uh, it was a suspension or a suppression of the listing.
[00:29:05] And so, um, I know what you say makes complete sense, but depending on who you're talking to, or the algorithm at Amazon, you could run into some problems. Uh, My experience that I've seen, but, um, I, I just wanted to bring that to everybody's attention. So, absolutely. I mean, when it comes to like terms of service issues or just issues with Amazon, like, you know, I'm not an expert on that and I can't, I can't tell you, no, I can't tell you exactly what would kind of cause a problem with Amazon or not, but just as a matter of trademark law, they're, they're, they're equivalent that they are as close to equivalent as, um, as they.
[00:29:47] Needs to be for practical purposes, but you know, it's like that, it's again, it's one of the reasons why people apply for multiple trademarks. Is there, there is some additional angle of protection when you have like, say a stylized version, even though you already have the wordmark version, let's say an oil caps.
[00:30:03] It might provide some additional benefit to you. But yes, I can comment on, on how it plays out in the Amazon arena, but as far as trademark law, yeah. That they're they're equivalent. And, um, the example she gave, I don't, I don't see any issue there. Right. Okay. Super. Uh, let me see. I'm just going to reset the.
[00:30:23] Today, you're listening to our weekly podcast. E-com weekly today. We're talking about how to protect your product. There's nothing like doing all your homework and then finding out that, uh, you don't have the trademark or something comes up. We're going to get into that in the second half of the, uh, the room today.
[00:30:41] But also if you like what you're hearing and Rich's just, he's incredible. Just tons of knowledge here. If you like, what you're hearing, make sure you follow rich or any of the panelists today. If you'd like. And you want to hear more about startup club? They've got some great rooms. We're just lucky to be part of the, uh, uh, the club hit that green house up top and you'll get notifications from them.
[00:31:03] So, Marsha Reese, I just met you in Vegas for the first time. Hi norm. That was the highlight of my trip was meeting. Yeah, seriously. I had no idea you were so tall and such a nice person, but anyway, I, um, as, as norm knows, the MGM grand in Las Vegas has 27 or eight properties and they have a floor in each property called the stay well floor.
[00:31:37] We have a registered trademark for stay away. Copper and their trademark is stay and then had, has, uh, two little half circles in between an icon. And then the word well, and our trademark is capital S state capital. Well, a capital w well with no space in between now, I would like to actually talk to the MGM grand about using our product as a premium promotion or an add specialty to them.
[00:32:10] Guests who stay on this day, well floors, but I see they're showing their trademark registered and I know ours is rich. What should I be aware of before I approached them? Because I don't want to get into a legal battle with the MGM. Okay. Absolutely. Very interesting. And so first, I guess this requires a little disclaimer that this is not legal advice, that this is really what we're just seeking to hash out some of these, um, scenarios and, uh, from an educational standpoint to really kind of see like what some of the issues might be, but really like, you know, before you, since you, you know, you're expressing like you are concerned, you don't want to get yourself into a litigate.
[00:32:52] You want to make sure that like, the advice that you actually take is from someone who really understands all of the facts and circumstances, they've, they've taken a deep dive into the situation enough so that they can give you the right answer of what to, um, you know, of what you ought to do. So just don't take this as what you ought to do, but let's just look at a few pieces of it.
[00:33:13] Okay, great. Thank you. And I have not called my trademark attorney yet. I just I've been swamped since getting back from it. Okay. Cool. So a couple of principles here. One is that trademarks are specific to the type of product or service that you have registered. Um, so yeah, it's like if you have stay w regardless of the spelling or of the spacing or the hyphenation, it's like, if you have saved, stay well for, for copper products that doesn't, um, that doesn't preclude them from coexisting with the trademark of stairwell.
[00:33:51] Having to do with the say hospitality services. Um, and you know, often in determining whether someone can have those, uh, whether two different entities can have that same mark in different fields. The question is, well, what people tend to be confused between the two would people that like see your products, um, for example, think that it's affiliated with MGM or vice versa.
[00:34:16] So like if there's no likelihood of confusion, often products can, co-exist in very different fields and, you know, that's why there's, um, there's, there's, um, only 50,000 words in the English language, but there's millions of trademarks. And part of that is because there are, um, marks that are being used for the, for by different companies in very different fields.
[00:34:39] And that's okay. So there's that principle. Um, another thing, another issue that occurs to me is, um, uh, you know, having them carry the pro your products might only add to the confusion, um, because if you've got Staywell products in the state, well, suite, then people might tend to think that they must be products from MGM or when they see your products.
[00:35:06] Again, think that, oh, this must be MGM selling their products in a different, um, in a different, um, forum. Uh, so, you know, having a cooperative deal with MGM might cause some trademark issues in itself. Um, but you know, again, something that probably needs a deeper dive and, uh, you know, to figure out also like there's third parties, if there are other state Wells out there, um, in, in other types of, um, um, in other fields that could sway things in a certain direction.
[00:35:41] So you really need to get the whole. Picture before, um, before, you know, taking action or even like knowing whether there's as, as a potential conflict. Um, and I, and I get that you don't want to get yourself into a litigation. And so you don't want to kind of, um, put it in a, in a, in a, um, in a, in a situation or you don't want to create a situation that leads to one either.
[00:36:06] So, um, yeah, definitely, definitely want to get some good advice. Um, and I would say not just from, uh, uh, any old trademark attorney, but from an IP litigator, you know, that's very good advice. Rich. Thank you. And I'm not positive. I wouldn't want it. Sorry. Very good comments. Uh, I also wanted to offer to the group in my experience.
[00:36:30] I have been very successful in defending my trademark and patents on Amazon. On walmart.com on wish.com and on, and there's one more, but I have not had good success defending my intellectual property on eBay. They don't seem to care. And I just wanted to see what the group had to say about that.
[00:36:56] Yeah. I mean, I mean, I would just say it kind of depends on the, there the IP policy, there are complicated issues when it comes to IP. Uh, and I mean, I've noticed with Amazon that they tend to take the side of, of the IP owner, uh, often to a fault and often where they shut down listings. That really shouldn't be shut down.
[00:37:16] They kind of shoot first and ask questions later. Um, you know, it's a difficult thing for, for them dealing with millions of different listings to try and figure out IP rights violation. Uh, especially doing it with, um, a very large team that, that deals with such issues, um, and to do it consistently. And, um, and so I'm just not surprised that other platforms like have different slants in terms of being maybe more slanted towards not taking action for IP violations, um, or potential IP violation.
[00:37:51] So that's just my take.
[00:37:56] Okay. Very good. Well, thank you Marcia for the question and all here's Roz. I just met her in Miami. Yes, you did. So when you say you didn't have any fun on that trip, I had a lovely day that day with you. It was a lot of fun. It was a great day. So, um, I have a couple of things here. The first thing is rich as a, as an attorney.
[00:38:27] Also, I practice in the area of family law. I do some federal ADA title, three defense work, some other things. I am the first person to recommend to anyone who wants some IP protection, hire an IP specialist. I, I went to law school with one of them. Amazon IP accelerator. People's name is Michael Chesil.
[00:38:54] And even though I looked at, I looked up the name that I wanted for my company, from my word mark, myself and I registered as an attorney on the USP CTO's website. When I looked at the, at the application and to use your word. I reviewed all the nuances. I thought I trusted don't want to get involved with this because for a few hundred dollars, what I don't know and what I could be doing wrong.
[00:39:22] And this is what I tell my clients. It's not worth it to take that, to take that chance. So hire somebody who knows what they're doing. And, um, I, I just find that that's the best way to go. Okay, I'm on your side here and I'm on your side because like, if, um, you know, people ask me sometimes about divorce situation and what have you.
[00:39:48] And I'm like, you know, I know some of the big concepts, but often the, the, the situation is ruled by the not, um, well, the situation is determined, not necessarily by the big rule, but by the exceptions to the rule or by the exception to the exceptions, to the role. And so it's like, it's like, you need to know.
[00:40:07] Things to that depth to know when seems to be pointing towards this answer. But oh, now, now with this one additional fact, okay. It points in a totally different direction. Um, so I absolutely agree. And you know, it's, with trademarks, to some extent, it can be somewhat critical of having help with an IP, uh, by a high IP specialist.
[00:40:27] But when it comes to patents, which we haven't really talked about here today, patents it's absolutely essential. I mean, like do not take any. Uh, advice from someone who isn't an expert in patents, like a non patent attorney, even an IP attorney that doesn't, um, that isn't a patent attorney. You shouldn't listen to when it comes to patents, because it is extremely specialized information.
[00:40:53] And, uh, and again, I just want to go back to the first thing I said, where the most important thing here is strategy. And very often, um, like having enough, being able to zoom. Didn't take a 10,000 foot view of a situation. We'll allow you to take the right strategic approach. So even if someone seems to know the rules, um, uh, and, um, and much of the concepts, it's like being able to know where those nuances are, can give you the ability, especially in a patent situation of steering it towards spending a lot of money and, um, uh, needlessly and not.
[00:41:31] Well here. Here's here's my, here's my question. So I am, I am initially selling on Amazon in a certain category and that's, and that's the class that, the word, well, I have a word mark and a logo that, that I'm on. I'm asking. Michael to, to, to trademark, but I'm also planning to do some other, some other products all within like a, like a unified theme.
[00:42:06] And one of them in particular, I might want a patent. I specifically chose him, like you said, because he does do, he does do patents. And then along with that particular product, I have, uh, A unique advertising sort of theme, um, to present the product. What I also, or how do I ask this? It's this is a question for you and norm, I guess.
[00:42:35] So my first question is for Amazon, what I would I be better off to initially? Trademark, both those classes of products. And then what I also be looking for a trademark on the, on the, um, on the specific advertising copy or does that have nothing to do with it? Yeah. You wouldn't typically trademark advertising copy.
[00:43:07] Um, I mean a short phrase can sometimes be trademark, but not. Uh, when I copyright it, it would be copyright protected by copyright. Yes. But it would, but it would be in some way, there are some IP protection for, cause I think it has the potential to be good and to be susceptible to a lot of people wanting to copy it.
[00:43:31] Yeah. Um, yes, probably. And so that's the copyright is the appropriate way that you protect con. Um, Brandon with the trademark and product differentiation, product ideas, product design, I mean, that's patents, but now if you are going to be selling the products, that two different products, um, in, um, you know, with that brand name, so you'd probably want to apply with two categories, but question is all you, um, all you selling both of them currently, or is one current and 1%.
[00:44:06] One, neither one is current. One is about to be current and the other one is perspective. So I couldn't perspective like, like two months, six months. Oh, at least. Yes. Okay. Well, here's the thing it's consideration. Um, in order to get a trademark fully registered, you need to actually be using it in other words, selling products under that name.
[00:44:26] So you could apply for a trademark, um, on, on that basis called actual use where you're actually using them. Yes. You could apply for it as an intent to use when you're planning to start using it. And then what happens is it goes, so the process, the trademark examiner reviews it. If they approve it, then it gets, um, then you get what's called notice of allowance.
[00:44:47] You then need to supply proof that you're using the mark. You need to supply specimens that show up how you're actually using it. So the reason I ask about the time right frame is because if, for example, you apply on the, both in the same applicant. And then, um, in six months, you're in the position to supply that proof, um, so that you get the trademark registered, but you're only selling one of them.
[00:45:13] Then you're going to hold up the application until you're selling that second one. If they're very different timeframes, you might want to apply for them separately. Okay. Two categories, but you know, put them in two different applications so that one could actually go fully through and get registered.
[00:45:31] Well, the other one you could have on hold for a little bit. And then if I'm going to set up an advertising campaign, I would tell him about it so he could figure out the copyright, um, application or however that goes. Um, yes. Uh, likely that that's, that's how you could do it. Copyright is tricky and I think it's beyond the scope.
[00:45:55] I'm getting into it. In-depth here, but yes, you could, you could, um, file the, the text as a, and get a registered copyright for that. Okay. Thanks so much MRIs then I'm done. Yeah. Thanks Roslyn. Thanks Roz. Okay, so rich. Um, we're gonna be cutting this off within the next 15 minutes. Um, just wanted to get a, and you know, why.
[00:46:20] I was crazy to think that we were going to get through trademarks and patents today. I'd love to have you back on a, an another, um, uh, in another room talking about patents. Cause we could go forever on that as well. I do want to mention that. And again, this is, I don't want to pitch anything. But you have, and I've read your book, um, that you, I think that you published a few years back and it was incredible.
[00:46:49] Like, and this was on paper. But it gives you an incredible understanding of patents. We haven't touched on patents, but I do want people, if they're interested in trademarks and patents, to be able to get that book. So do you, uh, can you give us, um, your contact information on how to download it or, oh yeah.
[00:47:09] Yeah. It's, it's actually really simple. Um, uh, and thank you for mentioning that and, and thank you for the kind words about the book. So, um, I've actually made it available, um, to all of my clubhouse friends over here where you can, you can get a free copy of it. I mean, basically I, I buy a copy on Amazon and send it to you, but, um, but I'm happy to send it to anyone who wants it.
[00:47:33] And it's, it's really easy. I mean, there's two ways. One is go through my profile. The other is, um, if you're in front of a computer with a web browser, you just type in patenting.com. And then there's a bunch of options there, which include like fill out a form to get a free copy of my book. Um, and then the, the other way to do that is just to click my profile and then scroll down to my Instagram.
[00:47:58] Um, and then the link in my bio brings you to that same page, like patenting.club, where if you want to, to submit a form and just get a copy of my book, happy to send it to you. And. Yup. So that's that, that's how they can get a copy of my book. Um, and, uh, but I, I appreciate you bringing that up in one thing and I'm happy to come back and talk in more in depth about patents.
[00:48:22] If we want to scratch the surface, now I'm open to it. I don't even, I don't even want to start that because you mean it would be another, at least hour, even if we just scratched the surface. Um, but I do want to ask you, uh, and we may have touched on this, but mistakes. What are the absolute do not, do you know when you're, when you want to start this process?
[00:48:48] Okay. Um, well, um, on the patent side, major mistake is to launch the product, um, before you apply for a patent. Um, and that's, that's the biggest mistake that people unknowingly make is by launching the product without having applied for the. You immediately lose the rights in most of the world to ever apply for a patent.
[00:49:11] And people don't know that. Um, and in the us, um, there's technically still a one-year grace period. And so if you filed that application within a year, then under the right circumstances, you will not be stopped out from getting it. Um, but a lot of people without knowing that, that, that grace period is a year, they come to me a year and a half down the road and say, I've got this product I'm selling, you know, $6 million worth per year.
[00:49:38] Um, I've just got to protect it. And I asked them how long that they've been selling it. And they tell me a year and a half. And I have to tell them that as much as I'd love to do this project for them, and clearly they could afford to pay for it. Um, we just can't do it. It's too. And their answer is always the same.
[00:49:56] It's like, well, how could I have known that? Um, and, and that's why whenever I get a chance to speak to entrepreneurs, it's always something that I bring up. Um, because now, you know, um, and, and just the one little caveat I want to add to that is I'm not saying that every product should be patented or you should apply for a patent on every product.
[00:50:18] Um, I actually advocate being very judicious about. Products you apply for, it's not necessarily the first product that you launch, that you should be applying for a patent for. Maybe it's the third or the fourth. That really is worthy. And sometimes if you apply for patent on the first one, uh, and it really wasn't a good candidate.
[00:50:37] It's not gonna work out very well. And then you go and then maybe when you get to that third product, that really is a good candidate. You'll feel kind of burned and you won't do it. And so. Uh, well, I recommend is not that you apply for a patent before you launch the product that you do, some real due diligence and you, and you seriously consider whether you, you should be applying for a patent before you launch.
[00:51:02] That's. What you need to do is figure it out before you launch. And if you're not going to apply for a patent, then fine, then just move forward, full steam ahead. Right? If you marketing efforts, get that product out there and don't look back with regards to the past. But I think that's the, that's the biggest advice.
[00:51:18] Um, and, uh, um, you know, and then let's see, as far as do's and don'ts, um, or, or don'ts, I mean, there's, there's some things, there's some misconceptions that people have, uh, about this stuff. And one of them is, you know, copying other people's, um, images, copying other people's texts, uh, under the mistaken belief that if you give them.
[00:51:45] Then that gets you out of trouble for copyright infringement. It doesn't, you can't just, um, appropriate something and then give them credit as an excuse. As a matter of fact, giving them credit gives an easy way for them to Google and find that you've copied their content. Um, so that's, that's another donor that comes to mind.
[00:52:06] All right. Great. Promise anybody who's listening right now. We're going to have rich back and we're going to get right into, um, patents. But yeah. Get the book. Um, you'll never hear me talking about, or very seldom. You'll hear me saying you got to get this book. Um, but if I can, uh, if I can take something complicated and read it and it's simplified.
[00:52:29] Oh my gosh. It's so bright. And this book is like that. So rich, congratulations on that book. I know I've told you a million times about it. It really helped me understand patents. Um, all right guys. Or everybody, um, just wanted to say we are going to break a little early today. Um, we, uh, let's see if you like what you heard, please hit the green house up on start-up club.
[00:52:56] Uh, if you like the panelists today, uh, Please follow rich. Um, he's incredible. And I'm assuming an awning right now because my battery is about to go on my phone and I'm no where near somewhere I can plug it in. So hopefully if I cut off, we'll see you later. But anyways, this on Thursdays at one o'clock join us.
[00:53:16] Econ weekly. We have current topics for entrepreneurs and how to become a better online seller. Thank you so much for listening. Thanks. I'm seeing that we're having an ongoing, like I'm, I'm recognizing people that are listening. So thank you so much for being part of our community. And if you have any topics, make sure you get in touch with me that you'd like to hear.
[00:53:37] So thank you.
Trademarks | Ecom Weekly
July 29, 2021
SEO | Ecom Weekly
Hey norm, how you doing? Doing great. Uh, yeah, I just wanted a chance here to, uh, introduce you. Uh, we'll do that. And I know as people gather here in the room right at the hour, uh, I just, you know, I wanted to talk about your, uh, your show today. I'm so excited. You know, it's interesting that, uh, we were talking earlier today and I didn't know that you had thousands of listeners a week who tuned into your podcast lunch with norm, uh, the rise of the micro brands.
[00:01:10] And you do 15 of these a months. Incredible. I know I've, I've listened to a number of them and I've learned a lot. And I think this, this particular episode, the one that you do every, every, uh, Thursday at one o'clock Eastern, e-com weekly. I think I learned more from this than I have from any other hour. I spend on club a week.
[00:01:32] You're incredible. Mark, take it away. Thanks a lot. Uh, Colin, uh, I, I've got to tell you today. I'm really excited about the topic. Um, I had, I really had the pleasure of having Steve. Um, we had him in, on the podcast, the other, it was probably about a month ago now. And, uh, you know, we were just talking about SEO and how that can affect not only Amazon, but e-com listings.
[00:02:01] And he blew me away. Um, I know a bit to be dangerous about, uh, SEO, but I had no idea what he was going to come up with. So Steve, before we get going with this, I'm just I've first of all, I've just got to mention that. So today's podcast, the topic is simple SEO strategies to optimize your online sales. Uh, we are being recorded.
[00:02:25] So if you don't want to be recorded, don't raise your hand. If you'd like to ask a question, put up your hand, we'll get you up on stage ASAP. Uh, so please, uh, Steve, tell us a little bit about yourself and, and welcome back. Thanks norm. Thanks for having me. Um, this is my first clubhouse. If you can believe that.
[00:02:44] I hope I hope I'm sounding okay. Can you hear me all right. It's perfect. Fantastic. So, so yeah, just some background on me. I'm about 22 years in digital marketing. I hail from, uh, some pretty exciting companies like Disney. I was the SEM account manager for disneyland.com and adventures by Disney, uh, left the corporates and eventually the agency world in 2010.
[00:03:07] And I started a little consultancy here in the Los Angeles area. We've, we've been called the, the agencies agency and sometimes I'm called the guy behind the curtain and, uh, it's just been an exciting journey. And a lot of our, our clients, uh, uh, stem from e-commerce to a multi location brands, such as Applebee's and I hop, and I've got a lot of fun stories and, um, and case studies and things I love to share.
[00:03:32] So thanks for having me and, um,
[00:03:38] There, I just have to learn how to use the bloody mute, but, but anyway, so today's topic is going to be fairly broad. Uh it's it is going to be centered around e-commerce. Um, what I, I do want to talk about is really simple strategies. What can people do and sort of small, medium sized companies to get the most out of SEO.
[00:04:03] That's probably the first thing, you know, how can simple SEO make or break sales? Sure. That's, that's a really good question. And I think. I think if we take a step back and before we start talking about safe, tactical things that that businesses can do and, um, you know, who's involved. I think the first place to start for anybody is really sort of establishing what your, what your goals are, what your, your key performance indicators are going to be.
[00:04:36] And then, you know, once, once you kind of know what those are, Then you start to build your team based on the different areas that play a role in search engine optimization, starting with of course, the web data, right? Making sure we can capture all the information that, that we need to make good decisions about what we're going to change on our website and what pages we're going to add.
[00:04:56] So somebody needs to be a little bit savvy with, um, you know, with, with web data. I, I teach a class at UC San Diego, uh, called SEO tools and analytics, and you'd be amazed. How many of these digital marketing students have just never touched analytics? They're like I got into digital marketing cause I wanted to do content.
[00:05:14] I got into digital marketing. So I like HTML. Nobody says I got into digital marketing because I love crunching numbers and analytics, but you need that role if you're going to. Uh, measure your success. Um, you need the, you know, the person who's going to be working on the, the website technical, uh, search engine optimization, your web developer, your web designers.
[00:05:34] Uh, you're going to need somebody who can write content and understands the different phases of the buyer's journey from, uh, the upper funnel awareness type content, all the way down to that, that content that's going to drive customers to your site. And then you need somebody who can do a little bit of outreach and, um, you know, and, and try to get other websites to mention and link to our sites so that search engines can find those links and, and help us to move our, our rankings up once you've, once you've kind of built that team, uh, the, the next step is, is holding every team member accountable.
[00:06:07] To their specific discipline for the analytics person. That's going to be, Hey, I want, I want you to get to a place in a year from now that we can see full attribution and really understand, you know, what our customer's journey looks like when they visit our website for the web developer, it's going to be, Hey, every month we're going to get together.
[00:06:25] And you're going to send me a report on how you've improved our conversion rate, our speed, our accessibility, our privacy, our security, our mobile friendliness. Right. Um, you're going to get with the, the writer and you're going to say here's, here's kind of where our content ranks at the moment. You know, when we run this initial basis, Um, here's, here's where the potential is based on our keyword research, which so, you know, our, our KPIs are going to be how we're, um, getting closer to hitting a specific goal in the number of keywords we're ranking for, and, you know, the, the pages that are driving that traffic and the same thing with the person who's doing some of that off page visibility every month, we're going to sit down and we're going to see how you've improved, how many other websites are sharing our short answers and checklists, so that we appear in those featured answers, which are now showing up in voice queries on Google assistant.
[00:07:15] Um, so I think, I think really establishing what your goals are across all of those different disciplines that are involved in SEO, um, and holding the team members accountable every month to the progress and reaching those annual KPIs. It's the one thing that's going to make your business stand out from any other business, regardless of the tactics used.
[00:07:35] If you're, if you're focused on that once a month, check-in toward hitting those KPIs and holding the team members accountable to it, you're already miles ahead of all the other businesses. You know, one of the mistakes I made, uh, earlier on was thinking that my web developer was automatically my SEO guy.
[00:07:56] And I was wondering why I wasn't ranking why he were falling. I couldn't even find them anywhere. And I found out when I said, you know, uh, what are you doing for SEO? I, he basically told me nothing. Uh, I took a look at, you know, even going and just typing my name in, uh, in, in Google, you know, just the way he set up the, the, the, the title structure.
[00:08:20] I mean, it was horrible. Um, nothing on my page made sense. Um, my site was so slow it, but, you know, It looked pretty. It looked really pretty, but nobody could find it. And it's two minutes to load. That's so true. I've, I've had some really fun clients in the past and I use that word of course. Um, but. Uh, where they would say, I want you to make our website rank.
[00:08:46] Um, but I'm not going to create any pages. I just want you to use our homepage and this flash that we have and make the homepage, just show up for all the words. And I said, I don't think you understand how search works. They're not going to see the words they searched in a title or a description in the search results.
[00:09:03] If we're only using one page, it doesn't work like that. You've got to create a page for each user intent to reach, um, you know, and desire that somebody, you know, wants to search for. So while the technology folks can do an incredible job in making sure that the site loads fast and it passes all of Google's page speed criteria and all the new page experience, things that they're, they're pushing out, uh, and they play a really important role in.
[00:09:28] The technical side of SEO is only one part of the equation. So, you know, and, and here's, here's another challenge I see a lot of larger organizations struggle with is trying to get the marketing and technology teams to play together. We've gotten to the point where as organizations we've even used terms like MarTech to try to merge them, but the personality types between the marketer and the technology person are completely opposite.
[00:09:52] One likes the dimmer room and, you know, the, the coding late nights and leave me alone while I have my headset on and the other loves to talk and converse and research and brainstorm and, um, you know, and it, it helps them to, to nurture really good content. So, so getting those two people, those two roles, you know, to play well together, It is a fundamental challenge.
[00:10:12] And I think, I think holding quick little, 15 minute, maybe 10 minute meetings once a week, um, to get everyone on the same page and figuring out a way to, to get those folks to be best friends, um, can, can make a huge impact to the long-term success of your SEO, because what happens is the marketing person says, Hey, we need to rank for, I don't know, glass stairways, we sell spiral glass stairways.
[00:10:35] And, um, we need to show up for that term. So I wrote this page and I see that there's 20,000 people a month searching according to Google's database. So can you load it up so that we can start appearing for this page and the tech person's like, yeah, well, so I kind of have a work, you right now, I'm working on bugs and some other things, and I'll probably get to it in a few weeks.
[00:10:53] You know, meanwhile, you know, the last, what, 10,000 potential visits that could have come in during that time period. And then they do get to it and they load it up and it looks nothing like. You know, original design and it doesn't work the way you want it to, and you go back and you say, Hey, could you, could you clean it up a bit?
[00:11:07] It's like, no, I've already moved on to another ticket and I'll put it into the next sprint and I'll get to it next month. So now two months go by, you know, and, and unfortunately in large larger organizations, that's the challenge or worse. It gets on staging and it won't get published for a month because we only roll out updates once a month.
[00:11:22] So, so there, there are, there are structural problems with how mark. Um, can play a role, especially SEO, uh, you know, when it, when it comes to how, uh, how the, the whole digital marketing department is structured. So I think that's, that's a big part. If you can get through that and get the, the tech folks playing while with the marketing folks.
[00:11:41] It's amazing. When, when we were doing a bit of agency work a few years ago, uh, we actually had the, the technology people sitting right across from the people who wrote the content who were sitting right next to the people who were doing the off page. And so the three of them throughout the day could get really synergized and share the success that they're having with each initiative that they were doing, but putting them in separate rooms and different silos, not having them communicate, you know, it just, it just causes a lot of frustration.
[00:12:08] And the developer's frustrated because he's trying, he or she is trying to, you know, deploy fixes and this marketing person keeps pushing them to do content, not realizing that that content could generate millions of dollars of revenue. So, yeah, I definitely see where you're going, Steve. I'm not an SEO guy.
[00:12:26] I, if there's one simple thing that I tell people to do, and I find this, like, it's so easy, it's so simple. And I find that so many websites don't do this is actually put together the right title tag and the advice that I've been giving people, and this could be wrong. That's why don't you challenge me here, but the advice I've been giving me or, or improvement improve my thought process on this, but the advice I've been giving people as, you know, the space that you want to own on Google and put in five or six keywords in your title tag, and believe it or not, it costs you nothing to do.
[00:13:02] It's very simple to do. And it seems to have a big impact. What are your thoughts on that? Sure. I think that's part of the equation, right? I'm of course, making sure that when somebody does perform a search, that what they were looking for exists in the title and description that your page offers. I think that's, that's definitely a.
[00:13:22] Um, but it's, you know, again, it's, it's a piece of a bigger picture, even if that title's fantastic. If they get to your page and it hasn't really been designed for mobile and they've got. You know, fill in forms on a keyboard because you didn't use auto-fill and your tap targets are too small for their, their big thumbs.
[00:13:40] Right. Um, they're going to have a bad experience and go back to Google. So I, I look at when somebody says, how do I get a page to rank in search results? And how long does it, does it generally take? You know, and I, I, I try to tell them, well, uh, initially we run. Some research to see which search terms we should be using.
[00:13:56] You know, what's, what's driving traffic to our, our competitors pages. Uh, what's the historical traffic that's driven. Uh, that's been driving traffic to our pages through, you know, tools like analytics and search console. And let's take all of those and organize them into, you know, a keyword research spreadsheet and then analyze to figure out which of the keywords are the ones that we really want to target.
[00:14:16] Let's get those on the page. Search engines will crawl the page when, you know, when they, when they reach it through links, internal links from your website or external links from other websites, they'll find those terms and they'll test your terms for those words over time to see if the page was a good result for them.
[00:14:32] And then that, that efforts, that content effort. Titles and headings and subheadings and so forth will probably help you get to maybe page two of Google within about four months. Phase two is some of that off page signal it's are other brands mentioning your brand in conjunction to those words are other websites linking to that content or to your website using words that, um, you know, that you're targeting those off page signals, the, the, the links, you know, that especially search engines like Google use.
[00:15:02] You know, those, those will help you get to page one. And then you're sitting there at position nine in the search results on page one. You're like, all right, I did the content. I got to page two, uh, six months later, I've got all these, these links and mentions and I'm on page one. How do I get to that first position?
[00:15:18] It's all about the searcher behavior. Users finding your listing the most helpful, maybe it's the most helpful because of the title and description, um, are, um, are keyword rich and, and answer what they're looking for. Maybe you're using call to actions and value propositions and competing listings.
[00:15:35] Aren't maybe you're using some of the special markup code that's available, you know, called structured data to provide rich results like FAQ's and star ratings, right? Beneath your listing in the search result, maybe you've marked up your, your images and your videos, so that the little thumbnails show up on their mobile experience next to your listing so that your listing stands out.
[00:15:54] So if your listing stands out and they're kind of flipping through the page and looking at what they want to click on and you're stands out, you'll get the click. And as long as they had a great experience, security, privacy, accessibility, mobile friendliness, right? As long as they had a good experience and they stay on your website, You know, the search engines like Google are going to re record that behavior and say, wow, this must've been a good result.
[00:16:15] They clicked. And they stayed. They didn't come back and choose a competing result. So at some point the keywords, the contents that the links depreciate in value that law of diminishing return on, on what they do. And it's all about how users are interacting with your listing in the search results.
[00:16:31] Long-term to tell the search engines, Hey, this was a helpful result. So yeah, I do agree that the titles descriptions, headings, you know, all of those are important. If you're a personal injury lawyer, for example, you might put, um, you know, your title tag is something like, uh, you know, the number one personal injury attorney, uh, offering free online consultations, um, and then our lawyer, and then you might use attorney and your H one main heading tag, so that users see attorney and the location that you serve in that main heading.
[00:17:00] Um, and then you might use something like, uh, you know, personal injury law, Somewhere within an H two or subheadings, so that you're emphasizing those top three search terms, personal injury, lawyer, personal injury attorney and personal injury law firm. Um, and you're introducing those to those search engines.
[00:17:15] The first time they crawl. But long-term, long-term those things aren't going to matter as much as how users interact with real estate. I met a, uh, an SEO gentlemen who did work with lawyers and his trick was he put the word best in there. So if you're in Toronto, for instance, can be best Toronto personal injury lawyer.
[00:17:34] That was, is just have to be careful with that though. There were organizations that got in big trouble for using best, I think Papa John's and pizza hut, or Domino's if you go back and look at some of the historical news, uh, one of them were, was using the word best and I was challenged by it and it was like a whole lawsuit.
[00:17:52] So you just gotta be careful depending on what industry you're in and using the word best, unless you have a genuine award that says best in, you know, California or best in, you know, But yeah, I've seen the same thing. I've seen number one best. And so we, we ended up with these things called title tag principles, and you can Google search for them.
[00:18:11] And I think the little page I wrote comes up, uh, entitled tech principles are including, of course, that search term. You want to rank for a call to action by order download gets, um, and then some sort of value proposition. Uh, for me, the value proposition is figuring out what it is they actually are looking for.
[00:18:29] So when you search title tech principles, do you really care about title tech principles or are you trying to boost your click rate in search results and boost your keyword rankings? Right. You're searching for tile type principles because you want your page to rank. So, so the title tag principle there is, you know, use these title tag principles to boost your click-through rate and improve SEO.
[00:18:48] It's not just, um, title, tag principles, ultimate guide or something, you know, sort of generic or cliche. It's, it's really trying to understand what your audience is looking for and finding that out. Isn't hard. You can send surveys and emails. You could even use crowdsourcing tools like mechanical Turk and asked thousands of people.
[00:19:06] Why would you use the service? Uh, what would be a benefit of it? Why would you choose us versus someone else? You know, aggregate that data and run a little pivot table and test some titles and see what.
[00:19:19] That's great. And by the way, I just checked out your, uh, your title tag principles. And of course you're ranking number one on that. Oh, Hey practice, what you preach norm, right? That's that's the rule. Why don't you even go a little bit further on this? And by the way, um, this is simple, e-commerce SEO strategies that you can use.
[00:19:41] If you are looking for advanced SEO strategies, that'll be a different session. You can still stay tuned. I know that I know a little bit about SEO, but what Steve was telling us, you know, in, uh, on the podcast, it just blew my mind and what we are going to get to some of them. And one of the things that you did to prove your worth, but you had to mess it up, was ranking for S E O expert, right?
[00:20:09] Uh, you gotta, you gotta bring that one up. All right. Talk about that. Sure. Do you want me to give that history of the story? Yeah. Just give a brief summary of what you got. So I'm, I'm at, I'm at Disney, uh, up in Burbank and, um, I was the, of course SCM is paid search, right? It's really more referred to like PPC or paid beta advertising through Google being.
[00:20:31] And at the time, even this site called ask.com that we miss, um, still around, but we don't have our Jeeves anymore. And I, I go to my boss because our adventures by Disney website is all flat. And I said, Hey, it would really benefit us. If we want to show up for family travel to Ireland, family travel to, you know, wherever to have a dedicated page instead of just being all flash.
[00:20:53] And my boss, Terry says, you know, I, I believe you, but we're, we're Disney. We really don't need to worry about SEO. Maybe, if you can prove to me that, that you are good or, you know, or are savvy with search engine optimization, then, then you know, I'll, I'll give some of your suggestions, have a thought. And so I'm like, well, how do I do that?
[00:21:11] I'm like, I'm showing up for this local keyword for people looking for like orange county SEO expert or whatever, back in the day. And he says, well, nobody searches for that. Show me that you can show up for SEO expert and I'll be impressed. So I go home, I create a website and it's a five page, a little website, um, called top Tennessee tips.
[00:21:28] I created a page called SEO, underscore expert dot HTM. Um, and then I, I added video. I added the titles and headings and everything. We just kind of talks about a minute ago. Um, I got some links from other websites. I even got the, the college I went to to, um, to link to me because I, you know, won some awards with them and.
[00:21:46] Um, I called a favor. Um, and then I got the page to rank and I, I show my boss, Terry, check it out. I'm on the first page for SEO expert. And he goes, yeah, well, you're not number one. I'm like, are you kidding me? So I go back, I do a little bit more. I start to affect the user behavior signals by doing some local events, asking people to search.
[00:22:06] Hey, who saw my listing? Where am I? Number four. Hey, who clicked on my listing? You did. Hey, thanks. You just help me move my listing up a little bit just by that click behavior, just don't don't go back and choose a competitor. And so we did a little bit of that just to test and show how, how important click through rates were.
[00:22:22] I got to that number one spots. I was able to take that adventures by Disney sites and move it to a hybrid of flash at the top and, uh, crawlable text at the bottom. And, um, you know, it, it was a, it was a big win for the brand. It was a big win for, um, being able to, to kind of prove what I know, but the challenge was as, as the years went on and I got other clients and built some great case studies.
[00:22:44] Um, and got really, really good at search. I wanted to share a lot of my experiences at conferences like the pub cons of the world and, um, search engine strategies and search marketing expo, all these great conferences that they have for our little community. And, and I had some amazing pitches and they always got turned down and I couldn't figure it out.
[00:23:03] Uh, one day my friend doc comes to me and he's like, it's like, I'm going to tell you why you're not getting accepted to speak. It's because everybody thinks you being number one for SEO expert is a bragging thing. And I had to put SEO experts, Steve them on everything to get that keyword correlation so that my, my brand, Steve.
[00:23:20] Um, you know, became semantic to the keyword there, the phrase SEO expert. And that was part of how you get the rankings. But in doing that, it looked like bragging to the industry and nobody wanted to have anything to do with me. So I, I made a huge decision. I got rid of the website, I got rid of the landing page.
[00:23:37] Um, you know, it generated a lot of revenue from it over the years, but you know, I, I was doing well enough with our clients that I could let it go. And, um, and then when I did, I immediately, um, started making more friends in the community again, once they got to know me, they're like, I wish I would've known you 10 years ago.
[00:23:52] Like, well, you wouldn't even talk to me 10 years ago. And now all of a sudden, you know, you, you get that I'm authentic and a real person. And I love to, you know, to, to do passionate things around search engine optimization. So, so that was a huge. Huge decision. I had to make that, that changed a little bit of the course of my career and how I was perceived in the industry.
[00:24:13] I've made a lot more friends. I now have a peer group I can reach out to, if I get stumped on something, I don't feel like, oh, I got to spend a week trying to figure this out. I can open up a thread on a private group in Facebook or a clubhouse or wherever. And, um, and I can ask, you know, the industry, Hey guys, I'm stumped on something.
[00:24:30] Can you help me out? And everybody raises their hand. Like we got you, Steve. You know, and I wouldn't have had that. Had I kept that, that little vanity keyword up there ranking. So that's just the way. And what, what they say when they say it's lonely at the top? Yeah, it was, it was pretty crazy, but luckily I had, you know, amazing friends that weren't in SEO.
[00:24:52] Um, especially one of them that looks like they jumped on here. Casey, who, uh, who always believed in me and, um, helped me help me. Oh, that's, that's great. I love that story. Um, one of the other things I want to go back to just engaging. Okay. You were talking about the, uh, the title, uh, the meta titles and just how your you've written them.
[00:25:14] You told me a story about Skechers and how you took something and change it around a little bit to build engagement just by, by not so much keyword emphasize emphasis, not so much emphasizing the keyword. The quality or the special that was going on. Do you want to talk a little bit about that? I just, and then we'll get onto some other techniques.
[00:25:38] Sure. That we, we did several things with, uh, with Sketchers and even, even more recently with Applebee's and I hop that, that, you know, made a big difference with, with that brand. One of the things, uh, I'd I'd wanted to do even before it was a usability thing, um, or an SEO focal point was attribution. I wanted to know if I drove traffic to this local page, could I, can I trace it back to revenue?
[00:26:02] And there really wasn't a way to, to do that at the time. I, we said, well, let's, let's add a coupon in a special coupon code so that when it's redeemed, I can trace that special, unique code back to revenue. And even though sometimes people go into the store and they choose to buy one, get one offer, instead of, you know, the, the $5 off coupon that we had, um, we were still able to, to trend the improvement in revenue from, um, you know, from that medium and help provide better ROI because a lot of the work that we were doing.
[00:26:32] Um, wasn't sending people to the e-commerce online store a lot, or sending people to the actual locations. And so I wanted to be able to quantify and say, yeah, I know, I know e-comm is doing good, but you know, we're also generating revenue in the stores. Prove it. Well, okay. Coupon code that made a big difference.
[00:26:51] And I think, I think we've added that along with some of the other factors that we, uh, that we tested on our local pages into, uh, the study. I think we talked about in the last podcast, it's on our site now it's in the top nav, it's a local landing page study, and it actually includes a huge infographic that you could use.
[00:27:08] Um, you know, as you start to create your local pages, if you're up at e-commerce, hybrid's, uh, you know, multi location, uh, brand that infographic can help you design the pages, uh, in the same way we did with Sketchers that include, uh, focal points, like, um, you know, the, the coupon, like, uh, buttons to social media profiles that relate to that location, um, like open hours, like, and showing that we're open right now without the user having to think about it.
[00:27:36] The one thing that. Um, also really well from a local page perspective, um, is because, you know what, 80% of the traffic is coming from mobile devices where we, and this is with I last year, we, we actually added a start order button to the very bottom, right, as a floating button. And you can see this, if you go to any of the iHub location pages, um, and that start order button for mobile users made up a massive difference.
[00:28:02] So much that we got an email the next day from, you know, our, our points of contact. They're like, whoa, what happened this weekend? We had like a $2 million weekend what's going on. Like, all we did was load up up a sticky button so that users didn't have to flip through the page to figure out, you know, where to place an order or what to do.
[00:28:20] They knew right away start ordered. Loading button right there. Um, so that, that was huge, but yeah, if you want to see some of those examples, check out that local page study that we did, um, you know, and it, it does include that, that infographic, that walks through every feature that we've noticed and tested over the years, pretty fun, pretty nerdy, but fun.
[00:28:42] Nerdy is fun. Uh, I don't know. Um, Rochelle, I'm inviting a couple of people up to the stage and I'm finding that, uh, they have their hands raised, but they can't come up. I'm just looking at Lee, for example, not sure if I'm doing something wrong, I'm kind of new to this, to Steve. So anyways, let's go to a question, somebody that we were able to get up on stage Casey, uh, welcome to the stage and what can we do?
[00:29:09] Yeah. Yeah. Uh, I am new to a clubhouse and I apologize for the audio technical difficulties at the beginning. Uh, couldn't find the mute button. Uh, yeah. Well, let me tell you, first of all, I will give you a little brief history. Uh, Steve doing some data entry way back in the day. And he made my very first website for me and got me up on Google's first page within like weeks for my music.
[00:29:39] Uh it's so long ago, I know it does not see it. I feel so old now, just even bringing it up and, and I've, and I've loved watching your family grow. And I was wondering why you changed the expert part of that, uh, from your own branding name perspective. And that makes sense now, because you know, we ain't talked in a while, but I love what you're, you're putting, throwing down right now for the people out there because, uh, a good SEO expert is also understanding branding and how to take that branding and move it forward in the right ways to make sure you're not just putting out content, but you're retaining your fan base and listeners.
[00:30:20] And I know Steve. Hey about that, Nancy, the only reason I've had any, uh, moderate amount of success. And I have, so I'm looking to push that success forward my brother. So what can someone like me who can't afford your amazing services do on my own end to be my, uh, to make sure my SEO strategies are up to.
[00:30:39] Sure. That's a, that's a really great question. And if we, I know we're, we're pivoting away a little bit from, from the e-commerce side, but you brought up a really good point and this is, this was important to Skechers as well. They wanted a brand driven SEO strategy. Um, and, and we did introduce a lot of non-branded search terms, kids shoes, and so forth, but, but by having a strong brand driven SEO strategy, uh, we were able to help solve problems and questions that people had related to the company.
[00:31:06] So sometimes, you know, you can find information about it. People are searching for, for your brand using tools, like answer the public.com, um, SEMrush SCM, R U S h.com has a questions filter in their keyword tool. You can see what types of questions people have about you or maybe about your competitors. Um, and then start to solve those problems by putting content up on your website that addresses those, that introduces the brand.
[00:31:34] Um, that's, uh, that gives you the, the people also ask, um, results in the search results instead of giving that traffic away to some third-party site. Um, and you can use that traffic to remark it and bring those people. You know, through the conversion funnel over time. So I think that, I think you've got a great point on how important branding is and how, how neglected it can be, especially for brands like, like Applebee's we found, I don't know, 2000 different search terms that people were searching for where Applebee's was part of the search.
[00:32:05] And then if you performed any of those searches, 85% of the time, it wasn't Applebee's that was showing up. It was some third party site or recipe site, a news site, and that's all traffic that they could absorb. Um, because Google already knows that they're the brand that correlates to it. So I think learning about how people are looking for similar brands and words they're using, um, and questions that they have and creating your own version of them.
[00:32:30] And then going out to the sites that mentioned that brand and saying, Hey, they've, you've got a really great point here. And at school that you've referenced, you know, this, this website, you know, we also have something similar. Maybe even a little bit better, if you want to take a look at it and add it to your page.
[00:32:44] Great. If not, you know, um, hopefully you can give me some feedback on it and let me know what you think. They check it out. They love your content. They link to it, Google, then crawls that link and moves your site up. So I think that's, that's a, a great, um, story. I think for any brand thinking about doing SEO is, is make sure that there's a, there's a brand angle to it.
[00:33:06] And for larger brands that, that it's prioritized over non-branded keywords because it's gonna convert better. And that's your traffic. When I left the news sites and, you know, bloggers get all that. Steve. I don't know if we ever talked about this, but, uh, and I don't, I don't think, you know, but I do have, uh, a content company, a press release company.
[00:33:25] And one of the, um, tools that we use is, I mean, this is, this is a nugget. So if anybody's listening, you've got to check this out. Okay. I don't pitch this. I don't, uh, I don't have any affiliation with it, but this is a tool that we use that just kills it for us. It's called phrase F R a S E. And what it does, it's like ask the public on steroids.
[00:33:54] You'll go out there. You, you type in a keyword, it'll find the top rated articles that then what it'll do is it'll break it up sort of mindless. Into questions that you can use and find the top articles, uh, for that summarize it. And then you're able to build a very quick FM FAQ, or you can send the top 16 or 20 article summaries snippets over to your article writer who can then research and publish it right away.
[00:34:27] It's crazy. And we use this all the time for new writers that are, that are looking for content and you can easily grab content and write it in your own words. Um, they even have an area that you can play around with content and bring it in, um, in your own words, using some AI. But anyways, you've got enough there that it's so easy just to click, click, click, and you're done.
[00:34:51] Uh, that's how we can pump out a ton of articles. So don't know if you w. Check that out, but that is another really cool app. We do use that quite a bit actually. And one of the things I want to make sure that the audience knows about that tool is when you're, when you're creating content, just don't, don't create a bunch of paragraphs, break it up, use, you know, bullet lists, numbered lists.
[00:35:15] Um, do do some custom images that you, if you use stock images, Most of the stock imagery is already sort of recorded in Google's database that, that binary, zeros and ones that goes into that image are already there. They already exist. So create unique images too, to help illustrate to your points of the page.
[00:35:34] Maybe even put a video on the page to, um, to help those folks that, that like to consume video content. So that way your page has rich. Yeah, it has video. It's got images. It's got lists. You're breaking up your content with subheadings. Emphasize other keywords. It's, it's so easy for somebody who hasn't done any search engine optimization to think, oh, all I gotta do is a little bit of keyword research, write up four or five paragraphs and put it on my website.
[00:36:01] And if you were to look at this, the search results that appear for those words, you'll find that very few of them on the first page are just paragraphs of content. They're very, well-structured. They have a good storyline and they contain really helpful media. So, you know, that's, if you're going to use that tool, it's, it's not a, it's not a hack to, to rank by throwing some paragraphs in with keywords.
[00:36:24] You really do need to put some time thought and energy into, you know, making sure that your pages, the most helpful of all the pages that appear for those search terms that you're targeting. And I'm just going to reset the room. But when we get back, I'm going to talk about the elusive answer box and how do you get that?
[00:36:42] So, uh, anyways, just a quick reset, uh, we're talking today about simple SEO strategies to help optimize your online sales, uh, today. Uh, it is being recorded. If you don't want to be recorded, don't put your hand up. Um, if you do come up on stage, just, you know, ask a question a we're happy to answer it. And if you like what you're hearing.
[00:37:07] From our, our, uh, panelists today, don't forget to follow them so that you can hear more, really great information and the startup club. Okay. Check it out. They've got incredible rooms going on all the time. And if you want to get notifications and you're new, just check that green house up besides startup box and you'll get these notifications.
[00:37:30] There's tons of really great content coming out of startup club. And we're just one of the rooms. All right, Steve, I go crazy over the bloody answer box. You know, I tried everything, you know, sometimes we get, most of the time was we don't help. I, I think you're talking about position zero, right at the top of the search results.
[00:37:57] Yeah. You know, what's interesting about that too. I mentioned it earlier, but the statistic is that 70% of voice answers on the Google home are sourced from that featured answer box. So not only do you get that first, you know, zero position above the organic results when you do get it. Um, but you also get your brands heard by people who are performing those voice queries.
[00:38:21] So there's a, there's a massive benefit to it. It shows a lot of, uh, authority and it makes your page the one that people are going to reference in Lincoln. Um, you know, most of the time that featured answers for informational queries, you don't generally find a lot of e-commerce results at the top. There normally in an e-commerce search, you're going to get, you know, a carousel of products and, um, you know, and, and a lot of organic results, maybe some videos, unboxing videos or whatever, but you don't generally see a featured answer.
[00:38:50] Um, you know, for, uh, uh, what's the word I wanna use a result, that's got a purchase intent, right? So this is an informational opportunity for you to create some really helpful content that drives links to your websites, builds brand awareness and builds authority to do it. Um, you know, there's, there's a number of different things that you can start with.
[00:39:10] Start by looking at the type of featured answer that Google is already displaying. Are they displaying a list? Um, are they displaying a paragraph? Um, is it something else? Um, once, once you look at what that result is, you know, the type of content that, that people, you know, tend to resonate with for that query.
[00:39:28] Um, and then you make sure that you've got the better results on your page, where as. Building a framework for our upper funnel pages. As we shift with all the changes that search engines are making over the years, we've gone from taking our best answer to a topic and putting it at the bottom of the page to keep them on the page longer, the 12th time.
[00:39:50] Right. That's what we always do as marketers. We get them to stay on the page as long as we can. We have to change our thinking now to put it at the top. In fact, put that short 375 character or less paragraph at the top next to a copy, copy to clipboard button so that people who do see it can easily copy it and paste it on their website because that's going to be one of the factors that, um, that search engines are going to look for.
[00:40:14] So one, can they identify. And answer quickly and, and they're doing that much better now since the passages update, where now they're looking at sections of a page to rank instead of using the whole page and deciding whether to rank the page. Um, that's, that's when we're one. Number two is, as I, as I mentioned is getting that short answer that you want to appear for on other websites, start by taking your social profiles, if there's a video on the page, but that short answer into the video summary on your YouTube or your Vimeo.
[00:40:44] Um, if there's an image on the page, put it in your, your Pinterest in your, um, you know, imager in your flicker. But that, that short description with the, you know, the short answer that you want to appear in the description area, if that means. Um, maybe even do, if it's press release worthy, maybe even do a press release and have that, that snippet, you know, shared across, um, the, the channels that will syndicate your, your press release that way when Google's crawling through the web.
[00:41:10] And they see, you know, those, those subheadings with how to do X, um, they're seeing your paragraph, your answers show up across all these other websites, because, um, because of that syndication effort, uh, we, we tested this by using a recipe. So we actually took a recipe from a Google search result and we copied six or seven words of that recipe in quotes and searched for that phrase.
[00:41:35] And sure enough, thousands of other websites had shared that recipe, that content, um, and that's where we knew that's, that's what search engines are looking for for featured answers.
[00:41:49] You know, through it's it's syndication, uh, which brings me to another topic or the third piece that, that you could use to, we mentioned structured markup earlier, but those e-commerce folks I'm sure using the schema.org/product on all of your product listings. Right. So that Google knows that those are products.
[00:42:07] Uh, but, um, but from a, you know, a featured answer standpoint, if, um, if you can to help search engines, understand what that data is that could also help you. Uh, it's definitely not a prerequisite. One, one thing that that's, I've heard, and I haven't been able to verify it, but I've heard to get that feature answer.
[00:42:28] You first have to get your listing onto page. So maybe you're the 10th or ninth listing on the page. Um, and then you get some syndication of your list or of your paragraph, um, so that you can get the featured answer. So, um, I'd have to test it to see if that's really what's, you know, what's going on, but that's something that I hear a lot when I read articles, uh, around, um, people who've had success with featured answers.
[00:42:51] The, um, the page I mentioned earlier, the local SEO pages study that we did, um, offers a lot of that same sort of featured answer content. And the team here has already sent me a few screenshots, you know, where our lists have, have become the featured answers simply because we structure the page accordingly.
[00:43:10] So if you want an example to sort of cookie cutter off of, you could use that local page. Yeah, we did this table of contents to see how we had a summary paragraph above that table of contents, the list that we want to appear in the search results. Um, it's going to take some time. We only launched the page a couple of weeks ago, but, um, I'm sure within a year, you know, we're going to have a lot of those featured answers, uh, because of how we structured the page with those short answers and short checklists.
[00:43:37] That was a lot, sorry. Let me know if you need to unpack any of that. No, but I, I, I think you've motivated me to think about startup club and right now we're, I think we're number one or number two on Google for the term startup club, but I was just trying to check the featured listing and someone else has that.
[00:43:55] So that's an interesting goal and I think that's something we can work on. Colin can send me an email. I'll help you. Well, we'll get that spot. Thanks. I got you. See what happens when you go, uh, uh, welcome to the stage. Do you have a question?
[00:44:17] Oh, yeah. So I want them to ask hi. I wanted to ask Steve the name of the page that he just mentioned to check out. Um, and second question was, uh, I'm, I'm just launching, uh, printables. So printable planner, um, and flashcards. So these are educational flashcards on a particular topic and a Panadeine city. Uh, so I wanted to know like, uh, for this kind of stationary, what is the best e-commerce strategy?
[00:44:50] Sure. We, we did some work with a company called Hanson Ellis back in the day, and they did a lot of party favors and that sort of thing. And, um, we got to do a lot of testing around how to get our product pages and the categories to, to rank well, uh, by the way that the page that I'd mentioned earlier, it's on our website.
[00:45:08] Uh, we demand w I D E M a n.com. It's the very first link in the top navigation because we wanted to give it emphasis and get it ranking quickly. We linked it as much as we could from our website, from pages on our site, starting with the top navigation. So there's another little hack you've got phrased, and now you've got, you know, if it's an important page, like if from the homepage.
[00:45:29] Um, so, so for those particular products, I would, I would start, oh, sorry, go ahead. Okay. Um, I would start with, um, you know, looking at that product detail page and then comparing it to the other product detail pages that appear in search results. Um, look at what's Google's serving users, cause it might, it might infer what they're looking for.
[00:45:51] Maybe they're looking for a larger product images or, or more high definition images, maybe looking for a product video. Maybe they want more attributes around the products or, um, product or shipping guarantees or warranties or who knows. So I would, I would take a look at the different features of the pages that appear for the query and make sure that that yours is there.
[00:46:11] The other thing I would do and Shopify has done an amazing job with this is, is make sure that the mobile experience is, is one. Um, the user can get through the entire purchase, um, and the experience with just their thumb. And you've done this before, right. You've gone to Instagram and, you know, they're, they're targeting you really well, like too well to where I don't even want to go on it anymore.
[00:46:32] And, um, I click an ad and I'm like, yeah, I want, I want that. That's, you know, Paulo neuro, you know, it's going to make me less anxiety and stress. I got to have that. So I clicked the ad. I hit a few buttons, uh, purchase the auto-fills there, the pay button, uh, for the, um, you know, the, the integrated Shopify system is there.
[00:46:53] I don't have to put in personal information or credit card information. I can get through it by either using a PayPal integration or an Amazon pay, or the shop page. Um, and be done with the transaction in seconds. And I'm like, oh my God, I just spent, uh, you know, uh, a couple of hundred dollars, um, impulsively, um, because normally there's friction in the transaction.
[00:47:15] And because there wasn't friction, I just blew a couple hundred bucks. Now I gotta go home and explain to my wife. So, so I'd say, I'd say that that mobile experience is going to play a huge role. And we, we did some testing. One of my favorite sites that, that we, we got to work with in the past is Bob's watches.
[00:47:32] If you go to balms watches.com, um, what I would encourage you to do is look at the product detail pages and the category pages like Rolex submariner, um, and then go to archive.org and look at how those pages have evolved over the last 11 years. This is a site that didn't exist. It was just a safe, full of watches that owner Paul Terry had.
[00:47:51] And he's like, wait a minute, help me put aside to you. You know, and, uh, 11 years later that the site's generating over $78 million a year in online sales. Um, and, and a lot of it was just nurturing those pages and testing attributes over time. That just the page up breadcrumbs, um, you know, are the images, um, optimized to look really good on, on mobile.
[00:48:13] And, um, can we, can we add a video to describe the product and get into the product details a little bit more? Are we using the right markup? Can we, can we do some conversion? Um, optimization so that people stay on the page and want to convert, like perhaps do a, if they throw on the page long enough, do a little, um, light box or a CSS style sheet injection that says, you know, Hey, you like this product, buy it in the next, you know, two minutes and save 50 bucks.
[00:48:40] Um, or maybe it's five other people are looking at this product and, um, or six left in stock, right? Little things that, that invoke sales principles like trust and reciprocity and urgency and scarcity that get people to want to make a decision quickly. Um, so, so take a look at that site. It's it was, it was a lot of work to get it where it is and.
[00:49:02] Um, you know, obviously a really competitive industry. So if you want to take a look at that as a, as a roadmap, um, also if you've done that, if you've gone through that whole routine of my sites, my page is just as good on mobile as any other competitors. And I'm still not ranking, you know, send, send the link to me or to any SEO consultant and say, Hey, could you give me some tips on what I could do to make this better?
[00:49:23] We love to share our communities so open and transparent, so feel free to reach out to myself or any other SEO I'm sure would give you free advice. You know what I, I love like hearing when you were on the podcast, you said the same thing. I mean, you're willing to share, so I just want it, like, this is a no pitch podcast, so, you know, for you to go and give that up.
[00:49:47] That that's awesome. So thank you. Um, I also noticed, uh, just before we get to Chris's question that, uh, we have a special guest here, Steven Price, and we've been talking back and forth for a while and he is the CEO of a co-founders lab. And it's the world's largest grouping of entrepreneurs, you know, check out his website.
[00:50:10] I, you know, we talked about, I didn't know about your organization, uh, until about a month or two ago and it blew me away. So, Stephen, I don't know if you want to just do a quick intro. Uh, we're talking about SEO strategies today, but if you want to just come in and just do a quick intro on yourself, that would be awesome.
[00:50:29] Hey norm. Yeah, no, thanks very much. I apologize. I wasn't meant to be on this a lot earlier. That one I caused dragged over. So you're happy to quickly come on and, and listen in and just, uh, hear about what the different strategies have been approached too. But yeah, I'm Stephen, I'm the CEO of co-founders lab and we are ultimately, I suppose, the largest platform in the world for founders meeting.
[00:50:52] Co-founders just think of it like a dating site for founders and team members and people looking to start ups and we have advisors and mentors on there. It's a free platform free to sign up and we have a subscription model as well, but yeah, it's go and check it out. So it's a great place to be. We're doing a ton of work.
[00:51:09] I've only been in the role for the last four or five months and our devs and engineers are working hard at completely revamping the experience and the community aspect of it and where we're trying to pull in a lot of the aspects of clubhouse and the positive aspects of clubhouse and how people engage.
[00:51:25] Give their advice or have discussions in communities within our platform too. So it's definitely worth checking out if you don't know it. And, um, we also have a shameless plug here for our co-founders lab room, which is every Thursday at two 30 Pacific and norm. Hopefully you'll be on there later when we've asked them to be a guest each week when he can make it.
[00:51:46] So, yeah, I appreciate you giving me a little spotlight there, man. Hey, no problems at all. You and Colin have to meet. Okay. I was just about to say that I think we should, we should probably ideate, you know, with, uh, with, uh, what we're doing here on club has with startup club and what you're doing there.
[00:52:02] And, uh, I'm certain there would be ways of working together. Yeah, that'd be great to connect Colleen. I am. If you just click on my profile and uh, just, uh, damn me on Twitter. Cause, um, yeah, you can that's the best way is probably to contact me for our clubhouse until clubhouse actually now people to message you to.
[00:52:22] All right. So, uh, we'll get back to the simple e-com, uh, strategies, SEO strategies. Uh, just again, if you like what you're hearing, make sure you follow the, uh, the speakers today. Uh, Chris, welcome to the stage. How can we help you? Thank you, Norma. And thank you, Steve. Colin. Rachel, thank you for having me on the stage.
[00:52:44] I don't quite know how to follow Steven there. That was amazing. Listen to his story. Uh, you know, what, what an inspiring story and a great job you're doing, they're really enjoying the room. Uh, you know, I, um, no pitch, I, I am in the e-comm space, uh, have been for nearly 15 years. So it's great to hear and see e-commerce rooms happening on, on, uh, clubhouse and in the startup club, which I've listened to quite a bit.
[00:53:10] So it's really. To be here. I have a question. So I'm just going to hit you with a question. You, you, you've tried to build this room simple e-commerce SEO strategy. So I want to take you back to basics a little bit. Uh, you know, I found that I have mostly worked with, uh, clients that have an existing presence, have an existing amount of organic traffic, have an existing, uh, organic strategy for SEO that perhaps isn't working all that well, and that's what I've primarily done, but I've taken on a client recently who is starting from position zero.
[00:53:45] They, they, you know, they've only been running for a month. They have very little traffic on the site that got a little bit of referral traffic, but organically that just not ranking for anything. And they've come to me and they've said, look, what do we need to be doing? Uh, and I realized that, you know, I use it.
[00:54:04] Woods at review, all of the keywords that got review, all the pages that they've already got and, and develop a strategy based on that, but starting from position zero with a limited budget in mind, not, not minimal, but, but limited. Um, what would be your best tips for the, um, the three, perhaps two or three or four?
[00:54:27] Things that you would focus on the most to start getting some organic traffic to primarily as an e-commerce store to drop shipping store. Uh, so they have, um, they got descriptions of a come from the drop shipper. They know they need to rewrite the descriptions. They've written blog posts. They know they need newborn blog posts, but what would you do?
[00:54:48] What would you tell them is the things that they should really focus. Some start getting some, we know how important Google's, um, link signal is. So one of the things that I would do is, is take the top 20, 30, 50 competitors in the space. Um, and then do a intersecting link research, maybe use the, you know, H refs tool, a H R E F s.com.
[00:55:12] Um, in their more tools section, they have something called the intersecting link, um, tool. And what you could do there is you put in those competitors, um, and then you put in your site at the bottom as. You know, does not include links to this website. And then what you'll get is a list of all the links that competitors are getting, um, organized by the ones that are the most frequent.
[00:55:33] So let's just say 10 competitors all have a link from industry site.org. Um, but you don't add start there because, you know, as Google's, you know, looking at the internet, you know, the, the web and we want to be as close to the center of that semantic web as we can, why not be where our competitors are. So if I would do one thing, it would be to.
[00:55:53] Do that intersecting link audit, figure out where the competitors are getting their links. Um, go through that list, pull out anything. That's just, you know, uh, a garbage site that just happened to pick up links and find ones that are really specific that could drive referral traffic as well. Um, and then I would start figuring out what your angle is going to be to, to get some prominence on, on those websites, uh, and work your way down.
[00:56:16] Maybe you use a tool like BuzzStream, uh, or a pitch box, you know, to, to record those opportunities and assign an intern or someone on the team to do some outreach and come up with some creative ideas to get visibility on those sites. One, you're probably going to drive some good referral traffic. Cause that's where your competitors are being mentioned into Google is going to find.
[00:56:36] Mentioned those links and help boost your rankings. So I think, I think that that angle could be, it could be a good start to being where the competition is. The other part of that could be looking at your existing data as well. If you're looking at, if you're doing any paid search paid and organic Mary, so well together, Google, doesn't give you a lot of the keyword information about organic, but they will on paid.
[00:56:58] So if you're doing some paid advertising and you can parse out a little bit of budget to do some Google ads and some Bing ads what's going to happen is you're going to get some great search term reports to tell you which search terms are really converting well. So you can optimize the pages around, you know, what converts well, and some of it might be a little bit longer phrases as opposed to some of the broader keywords and other clients usually like to rank for start broad and work your way toward, you know, with the Bob's watches example earlier we started with, um, used men's use submariner, and you know, now over several years of doing some optimization, we don't need to use used or pre-owned anymore.
[00:57:33] We can optimize for the bra. Mensa Mariner. Um, so, so there's, you know, an example so that the data, and also in display advertising that you're doing in, in Google ads and Bing ads will actually allow you to, um, to look at placement opportunities. The placement opportunities are great because here's where, where people clicked on your ad on a website and became a customer.
[00:57:55] So you go back to that list of placements and you, you start to figure out, Hey, one, can I, can I have them swap out the Google ad sense ad with an ad of my own, can I buy that ad space? Um, and then maybe after a couple months of advertising with them, you can say, Hey, could we do something a little bit more organic together?
[00:58:11] Could I, could I contribute a post or an article or some data or some research that we did? They're probably gonna say yes, because they don't want to lose you as an advertiser. Um, and then you get that organic, you know, piece of it. So I think, I think the off page side is where I would start if the on-page is on point with what the competition's doing.
[00:58:30] That is amazing. Steve, um, you clearly know what you're talking about. So I've made, I've made loads of notes there, and I really value that input. Uh, and I will action all of that. So it has never been my, you know, focal point. So, and, and I know there's a lot of mystique around it. I know, uh, but what you've just said, right there shows the level of technical detail that people in the SEO space really know really too.
[00:59:01] So that was wonderful. Thank you. Can I just ask one extra side bits of that, which is to what importance would you put back linking into the, this strategy at the beginning? You know, I think user experience and search experience are number one. Uh, I think backlinks are probably number two and contents number three.
[00:59:22] Um, you know, Larry Page created this page rank algorithm, you know, back in the nineties, before there was a Google. So it's, you know, it's still got some merit to it and it's how search engines find your website. They crawl through links to find them. So I would say, you know, of the three primary ranking criteria we talked about on page off page and search experience, I'd say it's number two, right?
[00:59:42] Buy in search experience. Amazing. Thank you. I'm not going to take up any more of your time, but I haven't found that useful. I certainly did. And, um, managed Chris and I've done speaking. Thank you very much. Thanks guys. Thanks Chris. By the way, Steve, I know you're new to clubhouse. If you see Mike flashing, it just means, you know, applaud or, you know, they agree.
[01:00:05] So it's not that Mike is freaking out or anything. No worries. Um, Muhammad, welcome to the stage. Uh, what's your. Thanks for getting me on stage. I I'm really, they enjoy the conversation that's going on so far. Um, I, myself am a new entrepreneur, but have had, you know, small, um, attempts, uh, as, you know, as most people have growing up, but this time I'm, you know, quite serious with what I'm doing.
[01:00:40] I have a pretty solid business plan for, um, a platform I'm creating called ontology the IO. Um, it's not live yet, but it's a product that is almost done in custom development. Um, I actually just signed up for that co-founders lab. So I think I'm really excited about them. Um, but I did want to ask, um, you know, wall.
[01:01:09] Uh, print on demand. Um, any advice on SEO? What I can do there? Ooh, that's a good one. Well, I I've mentioned before the idea of looking at what pages are coming up to the search terms that you want to appear for and sort of reverse engineering them to see what, um, you know, what particular attributes those pages have.
[01:01:31] I'd also look at the search terms they're using and where they're using them. Uh, somebody had mentioned earlier, it might've been calling, looking at, um, uh, title tags, right? What are, what are they using entitles and, and descriptions that we could learn from and test and, you know, do something similar. Um, so yeah, that's, that's a good, it's a really good question for print on demand.
[01:01:52] You know, if you want to, um, if you want to shoot me a note after two, I can take a, uh, an in-depth look at one of your pages that you're trying to appear. Um, and then you'll come back with some feedback for you, for sure. We also have, uh, unoffended ones interested, but, um, I I'm teaching at a couple of colleges and other one is Cal state Fullerton.
[01:02:12] I have a full on course on SEO from beginning to end and, you know, it's, it's about a year old, so we're, we're kind of giving it away at the moment. If you, if you want to take that course for free, just use SEO, Steve, as a promo code, and you're more than welcome to go through it and walk through a little bit of e-comm.
[01:02:28] It goes through history of search and there's no upsells or anything. It's just free content. That was based off my course at Cal state Fullerton. So there might be some, some tidbits and nuggets in there as well as you go through it, along with the actual templates that we use here at Wiederman for some of these brands that we'd mentioned, all of the templates that go into the audits and the strategies and link intersects and so forth are all available there.
[01:02:53] If you guys want to check it out, can you remind me how to get there? Yep. Uh, we have it right now at academy of cert. But it's also available at courses dot dot com either way. Same course. Awesome. Thank you so much. You got it. I'm booking it. Okay. And this is our last question, uh, is from S uh, I hope I say this, right?
[01:03:19] Some of the tea. Thank you. Thank you, Nora Norman. Is that right? Am I saying that right? Yeah, thank you so much for bringing me up on stage and thank you, Steve and Chris and Colin, all you guys have been contributing, such great, valuable information. I just wanted to do this myself. I'm a new entrepreneur, but I've been on the block, uh, for about two years now, trying to get my e-commerce site and page up and ready.
[01:03:46] I have a Shopify shop as well as an Etsy. Uh, but my question is I've tried a couple of basic e-commerce I mean, SEO strategies, but nothing too. The extent where I can say that I've had complete success in the sense that I've have tried strategies of starting to do the full-blown product description.
[01:04:06] And at the, at the same time, a lot of blogging, a couple of my products are up now on page number one, um, on Google search, but not all of them. I'm not so sure why. Uh, and then I, I typically, I mean, I I've hired a few SEO consultants to do some backlinking work for me, but even that is not up to fruition as well.
[01:04:25] So, uh, my question to the panel is what is the first, I mean, what is the basic strategy that I can utilize right now having a Shopify site, um, that will actually lead me to some success on the current products. Before I start launching new ones, I think creating a strategy is always the best strategy, right?
[01:04:43] To starting with what's what our roadmap is going to be for technical SEO or our content roadmap for our off page visibility. Um, and then, you know, probably folding some, some resource in who's very skilled with conversion rate optimization. If a user converts, they're less likely to go back to Google and choose a competing result.
[01:05:03] Um, so I, I would say, you know, that course, I just mentioned gives you a lot of those technical checklists. I'm a checklist guy. So I've got a technical checklist and a, uh, example of a tax on me. But I did hear you say something about using the blog to support your SEO. And normally, normally we look at blogs, um, as a way to share company news, industry news, to have a voice in what's going on in an industry around a topic.
[01:05:29] Um, we might mention one of our products or services somewhere in the blog and link to it because if someone's, you know, picking up our blog through a syndication platform and they consume HTML, we might get a backlink out of it. Uh, but really if you've got good supportive content, that supportive content should be siloed in the section on your website that, um, that helps.
[01:05:52] That helps you to really create a, a topical section or a taxonomy around whatever it is that you're trying to rank for. I'll give you an example. We had a personal injury attorney who said, Hey, I'd like to show up for this. Um, this keyword that's costing us $900 a click on Google ads. And we looked at it and we're like, this is super competitive.
[01:06:11] You know, we're not just gonna, you know, put it under practice areas. We're going to move that particular practice area out and highlight it in the navigation as its own section. And we're going to build as much supportive content as we can. We're not going to put it on the blog, completely siloed away from it.
[01:06:26] We're um, you know, we're going to nest it underneath that main topic. So for, you know, an e-commerce site, it's going to be hard for Shopify because of how they, they use actions and don't let you really create sub pages, but in an ideal scenario, if you wanted to rank for. Um, I don't know, blue widgets, you would have a whole section of content under blue widgets.
[01:06:47] Y you know, all the questions that you get from answer the public or phrase or SCM rush would fall underneath that section. Um, all the variations in different ways that people use the product. Um, one, one example that we have for, uh, how we organize, uh, content is with that spiral staircase example. I mentioned earlier, we had, we ended up from our keyword research finding, finding out that people were searching by.
[01:07:12] Style by type by use. Um, they're looking for deck stairs, patio, stairs, addicts stairs, and we we'd nest all that content under its respective section for spiral stairs. And within a year, you know, we were in the top three results for spiral stairs. Um, same thing with the attorney. We, because we had 92 pages, I think it was like a truck accident, uh, uh, keyword.
[01:07:34] And, you know, we found all the different types of trucks that people get in accidents with and create a content for it. So now we're not competing with one page. Like our competition is we're competing with one section. So I would say don't put your best content on your blog, nest it underneath the product or the category that you're trying to appear for.
[01:07:52] If you're able. Gotcha. Okay.
[01:07:58] Would you be able to recommend any SEO consultants or can I approach you? Yeah, of course. There's. I mean, there's, there's us, there's, you know, um, several, I mean, hundreds of, of really good consultants. Some of them are even on that. The clubhouse here I saw today, uh, what I would do is I would join, um, you know, one of the groups like on Facebook, there's a group called, um, SEO signals lab.
[01:08:23] Uh, there's also, um, white hat SEO there, there's all these different groups that exist where us consultants go in and share ideas and tips and, uh, and help each other. And, and then you jump in there and you can, you can ask a lot of questions and those people who come back with answers that really want.
[01:08:38] Um, support you are probably the folks that you can work with affordably because one, they have the time to use Facebook to do it, uh, into, you know, they're willing to put in, you know, uh, the effort to help you. Uh, but yeah, me and the whole, we only have nine people on our team here. We, we love to help small businesses.
[01:08:56] And if there's something we can do to, to give some free advice, um, you know, we, we do that all day long. In fact, I think I just got a review from somebody this morning who I did a free, uh, you know, support for so kinda neat. And I was like, oh cool. I got a Yelp review, but yeah, whatever we can do to help our, our handle on all the social media profiles is just Weedman.
[01:09:15] W I D E M a N and S if, if I don't pick it up, someone else on the team, well, and we're here for you.
[01:09:25] All right. Any last thoughts? Any tips from any of the panelists? Um, and we'll be closing it up shortly. I've just turned off the, uh, questions. So any nugget, my only tip norm is I got to go back and listen to this whole episode again, cause it was like a hundred different things and it's going to be posted on start-up dot club, click on the blog section.
[01:09:48] And it will be because it was a quarter. You can go back and listen to it again, calling complete everything. I would say Steve, Steve man, you're brilliant. And your knowledge is excellent. You got to write a bio man on your profile because they will is God. I wrote, I wrote something. I wrote something even better.
[01:10:12] I wrote a textbook and we have a launch party for it next Friday, it's for a student. So, um, I'll do a bio, but I'm more excited. The fact that I actually wrote something. Yeah, you can say, Hey, I wrote something, but yeah, I'll do my bio after this, for sure. My tip would be for everyone to, to set those goals.
[01:10:30] We talked about at the beginning to, to get with their webmaster, get with their content writer, um, get with their, their outreach and social media people. Um, and sit down, figure out what your goals for the year are. And then every month sit down and see how you're achieving them. And if you're not, um, one of the things I do with my team, even though, you know, we, we kind of tout ourselves as like elite of the elite.
[01:10:49] Um, we actually hire other consultants and experts to give us training and advice. You know, when one of my good friends calls herself, BB, the link builder, and we have a link builder on our team, but we still hired her as a consultant to come in to give us advice on how she's doing and how she's successful.
[01:11:05] So, you know, give that idea of interdependence and not saying, Hey, we know everything. We can do everything, reach out to others and, and pull others in to help your team so that they can hit their goals. Um, that's, that's been a huge win. That to me is the biggest takeaway is figuring out what your goal is going to be for the year around tech content, uh, and, and off page and, and hold your team members accountable to, you know, giving you those monthly, um, status updates.
[01:11:32] All right, Steve, thank you so much for, uh, being part of this today. Thank you. All the other panelists. Uh, we have a weekly room called e-comm weekly and we have different, uh, different topics every week. If you liked what you heard today, make sure you follow everybody. And if you like, uh, or if you like to get more notifications from startup club hit the green house up top.
[01:11:58] Look, it's been a real pleasure talking with everything with everybody and thank you for being part of our community.
[01:12:08] Thanks Darren. You're. There are I'm on mute. You're very welcome, guys. We'll see you later.
SEO | Ecom Weekly
July 1, 2021
Scaling | Ecom Weekly
[00:00:00]
Hello, Mr. Colin. Hey Jeff, how are you doing? Norm actually texted me. Oh, I just got back. I emailed a norm that I would open it. That's great. Cause I have not been on clubhouse for about five days. Welcome everyone. Welcome. We are about to kick off with an incredible session. Today. We have norm Farrar who runs this weekly session every week for one hour on Thursdays at one o'clock Eastern.
[00:00:33] And I can tell you like Jeff and I are involved in a number of e-commerce companies and we have learned so much over the last, what? Seven episodes though? Norm it's been incredible. We have a podcaster. We have a genius. We have an e-commerce expert. We have an e-commerce entrepreneur. He's been doing it for as long as I know.
[00:00:55] No I've known him, but 25 years, norm over to you. I'm red. I'm really red. My head's about to explode, especially when we have the people that are going to be on our panel today. And I already see Marshall Reece up here, Andrea lake. Uh, this is going to be a really great session. Uh, we're going to be talking about something a little bit different.
[00:01:17] Uh, we're going to talk about scaling. Uh, we've touched on it before, but the people that I have on the panel today know how to scale their business. I'll give you an example, Andrea lake, I mean, Andrew, you can get right into this, but between her and her partners have had over a billion dollars in sales, uh, with t-shirts and this is a rinse and repeat this.
[00:01:40] Isn't a first first-time for her. She's involved with all sorts of different things. Marsha Marsha Reese has been involved with scaling all sorts of different companies from inventing sidewalk chalk to bringing the power ranger license and having over a billion dollars in sales with power. And we, hopefully Michelle will be able to come on Michelle and Colin and Jeff are part of doc club and they just had an incredible on not exit, but, uh, they've just sold the GoDaddy.
[00:02:09] And there's a couple of other guests that are, hopefully will show up as well. So I think before we do anything, if Jeff always does this, but I'm starting to get the knack of it. This room is being recorded. So if you don't want to be recorded, let us know before you say anything and we'll make sure that we stop and, uh, normal.
[00:02:33] Let me, let me just say to make it easier. If you come up on stage, you're giving us permission to record you. If you don't want to be recorded, please don't raise your hand. Please. Don't come up on stage and participate. That's why you do this. Jeff. He's so smooth. Anyway. Anyway, um, yeah. This will be about scaling.
[00:02:53] I can't wait. Oh, there's actually. So, uh, we'll get, we'll start talking with Ashley as well. Ashley Armstrong, you may know her from the view. Um, got lot of great entrepreneurs on stage today. So if you like what you hear hit the green house at startup club, if you'd like to, if you like the details that you're hearing from the people today, make sure that you follow them so you can get more information.
[00:03:20] And now let's just start it off. Andrea, how are you? I am doing still great. I'm coming from Sedona, Arizona today. It's beautiful. The smoke is finally clearing from the fires and all is well in my world. Oh, that's fantastic. And Marsha, how about you? Well, I'm doing great. I'm coming to you from Scottsdale, Arizona, Andrea.
[00:03:46] We need to hook up. I may be one week away from getting out of the Amazon prison. So keep your fingers crossed. I, I do have my fingers crossed for you. And another reason why I love Marsha so much is her husband is in the hockey hall of fame. So that's a bonus. All right, Ashley, how's it going? Hey, Hey everybody, it's gone.
[00:04:11] It's an awesome sunny day in Vancouver, Canada. So really? I can't complain. I'm so happy to be here. Thank you so much for inviting me. Oh, you're very welcome. And Ms. Brenda, hello everyone. Thank you for having me and Marsha. I'm also here from Phoenix, Arizona. So they were taking over the state. Now Brenda was one of the co-founders of snow.
[00:04:36] So snow, uh, jeez, I think that was an exit of about a hundred million dollars. Wasn't a, Brenda's something around there. Yes. It's revenues up to, to that. And, um, yeah, I, I helped start it from the very, very beginning. Um, and it's been a journey and I recently stepped down, uh, January of 2020 to consult other startups.
[00:04:58] Fantastic. All right. So let's get, get into this and I guess, uh, Andrea, you've become an expert at this whole clubhouse, you know, system and structure right now, but, um, what are you doing? What have you done? Like, what are some of the secrets to your success of scaling a company? Well, I do love the rules of like, don't let your business get bigger than your book.
[00:05:24] So I always make money first. That's the first top priority. I literally figure out I started 14 companies and Marcia I'm so excited to have another license around here. I own a distribution company that owns the exclusive sales rights on the merchandise from Minecraft world of Warcraft call of duty.
[00:05:41] It was just
[00:05:47] scaled. It was just so grassroots hit every single store with a catalog. Follow it up with a phone call, get a website up, get the, um, you know, sales cranking there, and just be super, super, super consistent with posting to social, with, um, you know, doing cold calls with chatting with the people who are actually going to be placing orders, larger orders in the stores.
[00:06:10] And that really is what helped us, um, scale.
[00:06:16] I just got to find the mute button. There we go. Marsha, what about you? What are some of your secrets to bring in. All of your different products like you you've had sidewalk chalk, uh, power Rangers. You've got involved with the gel, um, uh, pads for, um, uh, for keyboards. Uh, what are your secrets to scaling?
[00:06:38] My secrets are to find a problem. And then I have the ability thankfully to create a simple, affordable solution. And I actually started this back in the late 1970s. So I'm at the dinosaur of the group. I started selling Walmart when they had 66 stores and I became a friend of Sam Walton's. He mentored me and taught me so much.
[00:07:06] And actually we grew our sidewalk chalk, uh, globally. And the reason that I got involved with power Rangers is the company that manufactured. Those was Bandai and they had never had a successful product in the us. They had been an OEM manufacturer for all the big toy companies. So they bought my Chuck company because we sold to everyone and they wanted my distribution system.
[00:07:31] And I then put the team into place, uh, to bring power Rangers into that distribution system. And I do want to offer to the, to your listeners, uh, the gal that was my VP of sales is a tremendous human being. And she has a nationwide marketing rep business that takes product into brick and mortar. So for those of you who want to go beyond e-commerce, I'd love to link you with her.
[00:08:00] She is as fine, a human being as you'll ever, ever get to partner with. And she is also now working with this unstable copper. So, um, my secret has been, uh, finding simple, affordable solutions, but also using the people. To help grow your network and never, never, never forgetting the power of thank you. It will get you miles and miles.
[00:08:30] You know, one thing I can tell you about everybody that's on this panel right now. Um, and I see this when I walk into Collin's office, it really is the give to get, uh, give, to get, to get you everything it's totally unselfish, but selfish, you know, just contradicting myself, but Marsha, I mean, everything that you're talking about, like just introducing this person to help anybody that's out there.
[00:08:58] And by the way, this is a no pitch podcast or a PA a room, whatever you want to call it. I just want to make that clear. What we're trying to provide here is strictly information to help e-commerce sellers expand their brands are right. I wanted to thank Marsha really quick though, because she introduced us to Roberta last week and we have a call and say that this week or next, um, set up with her Marsha.
[00:09:25] So thank you for that. You know, Paul, I just talked to her today and I'm not pitching her. I get nothing for what she does. She's just a tremendous person and norm, I want to say I am so pee. My pants, excited to get to meet you in person. Next month. Paul told me that about prosper. I didn't know about it.
[00:09:46] And then I thought don't tell him I'm going to go. Cause I want to surprise Norma if he shows up and now I found out you are, I am so excited to meet both of you in person. Yeah, I can't wait to go there. So if anybody else listening is going to prosper in Vegas, uh, on in July, uh, just let us know DMS.
[00:10:04] We'd love to meet you. We are going to have. Uh, I hang out there too. So, uh, yeah, we're going to get to the questions in a second. I just want to just go through a couple more people here. Um, Ms. Ashley, how are you? I am awesome. And I'm like, what was the question again? Oh, some secrets. And then we're going to talk to some about six successes and failures, but right now it's yeah.
[00:10:29] What are some things that you do to constantly scale and repeat success? Um, you know, honestly, I've pivoted quite a bit in the last decade from product development and selling and then consulting and course creation and software tools and the whole nine yards. And really at the end of the day, the most fundamental, foundational, most important aspect that I know a hundred percent that has helped me in all of those areas is relationship building and partnerships and mentorship.
[00:11:02] And, you know, Marsha, she already said it, you know, your business moves at the speed of relationships and when you're the smartest person in the room, you're in the wrong room. And when you have a goal, definitely go out there and find someone who's been there and done that and pay to be next to them. Get the mentorship, connect yourself with like-minded individuals who are going through the same trials and tribulations and successes and, uh, and just really grow and being open and honest and vulnerable in your journey and ask for help.
[00:11:31] All right. I love it, Brenda. First of all. I always tell you this, I love snow. I love that product. I love how you developed it, but, uh, anyways, let's, let's talk about
[00:11:48] yes. So I really do agree with everybody on the stage of bringing it back to the simple things that the big secret. So we all want to talk about it's going back to the fundamental. So I would say, um, one of the quote, unquote biggest secrets that I think brought a lot of success to, uh, when building snow, it's just bringing that convenience to the customer, adding a lot of value and enhancing the customer experience.
[00:12:13] So my biggest focus when I was there is just delivering that amazing customer experience to the, to the, uh, direct to consumer and, and organically just, um, they share it, they love it. They stayed loyal. So I would really focus on the, on the.
[00:12:32] Paul. How about you with your, a swim diaper line? Yeah. I mean, you gotta be customer obsessed. I mean, that's, I think that's the common thread that people are saying here is that, you know, cause he, in the end, like you are in business because they are buying your products and they're, you know, you have to think through like, I mean, like Marsha said, like how are you going to best solve their problems?
[00:12:57] How are you going to not just solve their problems? Like as effectively as you are now, but how are you going to continue to innovate and continue to be the best problem, like solution to whatever problem you're solving that your competitors could solve. Um, so there's that, but then like for us right now, we're going through this.
[00:13:15] There's always something in business that that will cause you to either pivot or. Uh, just stress you out and you're not expecting it and it doesn't matter how much planning you do. You know, you can get everything you can, you're only in control of yourself. And so I think for the people that, I mean for us anyway, that have been, we've had a lot of those times where it's just like, you, you gotta figure out you gotta, uh, you know, something happens with supply chain and then you've just got to figure it out.
[00:13:48] Um, so it's, it's listening to your customers, but then also when you have like being prepared for the unprepared and, you know, uh, just understanding that it is what it is, and there will be things that happen that are completely beyond your control. And when those things happen, um, you have to be able to have the mental fortitude and I guess the intestinal fortitude to just get through them.
[00:14:14] And not allow those things to suck all of your energy, to the point where you're just demoralized and you, you, you, you don't want to go you whatever. That's where having a team is super important, making sure to rely on, you know, your team members to get through hard times. So, um, listening to customers and then successfully pivoting, I think are the, are my two.
[00:14:37] All right. Thanks Paul. Hey, Josh, we're going to get to your question in just a couple of seconds. I've just got a, a question to the panel. Oh, Colin, you have, yeah, I just, I'm fascinated by this topic nor am I. I actually feel like you're, you're pulling up a coup because every Friday at two o'clock we have, what's called a serial entrepreneur hour and we're trying to crack the code.
[00:15:01] We're trying to figure it out what it is that these serial entrepreneurs do over and over and over again. And Andrea Marsia Ashley and Brenda, we know we'd love to see you at that session. You can, you have a lot to contribute. Uh, I will say that when I look at a new business, um, I actually begin the process of thinking about how I can scale that business before I even pick the idea.
[00:15:24] And there are two characteristics of companies that I look for, um, either investing in or I'm starting and those are, can it scale? And can I create a moat or can I defend that company as it scales? And it's worked out very well for me as I've gone through a number of different companies. Obviously when I first started, I had no idea what I was doing, but over time I began to see a pattern develop and began to understand that you can actually, um, develop systems and predict and come up with ideas that help you scale your company faster.
[00:16:04] And it starts with the idea at the beginning, it takes just as much hard work. To build a small business as it does a large business. I truly believe that my wife and I own a school, and it's incredibly hard for us to scale that school beyond the capacity of that existing school. It's very hard to scale.
[00:16:24] It requires a lot of infrastructure, a lot of funding with.club. The company you mentioned earlier, which we sold to GoDaddy registry, that company was all about selling domain names. It was a company that sold domain names that were alternates to.com.net.org. So we could sell a million of them. In fact, we did sell a million.
[00:16:43] I make a million, two names we've gotten up to right now, and that was very scalable. And so I'm attracted to those kind of businesses. When I look at new businesses and new opportunities, and I, I urge those who are going into business just to think about scalability as part of the process of choosing that idea, calling complete.
[00:17:04] I've gone to conferences where you've been speaking on this subject and you've got five stages basically of scaling a company. Do you want to touch on that for a sec? Yeah. I mean, if you really want to map it out, I actually did a discussion at MIT once on this and it took me about six hours, but really it's, it's, it's four areas.
[00:17:26] Um, people, money, story, and systems. If you could take those four things and apply it to start scale, exit and repeats. So almost like a graph, a quadrant here, an autograph, a quadrant, um, where you could see, um, on one side start and then with respect to start, what kind of people do I need to start my business and what kind of money do I need to get this business off the ground?
[00:17:58] What's my idea. What's my story. What makes me unique? What gives me an X factor? Or something unique that can help me drive scalability that my competitors don't have. And then lastly, what are the systems? And it's it's, I really, it would literally take me hours to go through it, but if you could really think of your company in terms of the start phase and people, money story systems, and then you've moved to the scale phase, and then you think about people, money story, and systems, and with respect to the scale phase, with respect to people, you're looking at people who can lead others.
[00:18:34] When you're in the startup phase, you are the leader like you are in, when you're in the scale phase, it's all about hiring great people around you so they can build the company and you can continue to accelerate the growth. So that sort of gives you a high-level idea. Hope that covers it. Norm calling.
[00:18:53] Thanks Colin. And, uh, oh Jeff, you have something to say. Thank you. Thank you, norm. Um, and thanks everyone for, um, what you said. I really enjoyed listening to Andrew and Marsha and Ashley and Brenda and Paul as always. And I liked that everyone talked about, you know, building your brand and building your business as a relationship.
[00:19:12] And, and when you think of it, in terms of relationships, you know, the things that you would do to establish a good relationship with a person are also the things that you should do when establishing a relationship for your business or for your products, especially in e-commerce. When you think about.
[00:19:29] First impressions matter. You know, when you're meeting someone for the first time, what do you try to do? You might wear, you know, a nicer outfit than you normally wear and make sure your hair is combed or whatever you want to look your best. You want to make a great first impression. And that's true with your products and your brand as well.
[00:19:45] So think about, what's going to be your first touch point with a potential customer. It might be an advertisement. So what are your ads look like? What is the message they're sending? You know, this is why packaging is so important. And norm you talk a lot about the impact you can have when an e-commerce product, just by thinking about.
[00:20:02] The packaging a little bit differently, the unboxing experience, you know, you know, what are those first impressions you're going to make? And all of those customer touch points matter. So that's one way that I think is really important. Think of a relationship as the way you're building your brand and your business.
[00:20:19] You know, living up to your word. If you want to establish a good relationship with someone, you want to keep your word with them. Well, you want to keep your words, your customers, you don't want to puff up and make claims that when they get your product, they're going to realize, oh, those were just marketing claims.
[00:20:32] It's not really true. You want to live up to your word. You want to make a good first impression. You want to think about it the way you would think about building any good, strong, solid relationship. I'm Jeffrey and I'm done. Thanks, Jeffrey. Um, you know, what's something else I got to point out here, which is kind of crazy.
[00:20:51] I know everybody here. Uh, that's on the panel and you're not just focusing on one thing. So I know Colin, multiple companies, multiple successful companies that you're running right now at the same time, Andrea, you have 14 companies. Well, I started fortune companies. I'm not currently actually running 14 companies in tandem.
[00:21:12] Well, you are running multiple modes, uh, companies, or, uh, I mean just all sorts of different things. How, how do you do this? How do you keep everything straight? Is it just people? Do you know what? And somebody touched on this before. It really is about just hiring amazing people. And I took my hiring practices.
[00:21:35] This will help anyone scale. I'm from the United States Marine Corps, where I set the expectations so incredibly high, and I give a speech to every person during the hiring process. And I mean it, and a lot of people drop out. Once I say it. I don't expect you to be good. I don't expect you to be great. I expect you to be extraordinary and to make yourself irreplaceable to me because I run too far and too fast to turn backwards all that often.
[00:22:02] So. I expect you to do your absolute best. And if you do, we are going to ride the best ride together. But if not, you will not be surprised and you will not know it's coming, but you won't last on my team. If you're not ready to be the very best version of yourself that you have to offer. And then of course, I offer all sorts of stuff to help people along with that journey, but it really is about the team that you have in.
[00:22:23] And all of us, I think have had businesses where we've put the wrong team together and the business will just fail and it doesn't matter how good the idea is. It doesn't matter how talented the individual team members are. Um, if they're not properly being led and if they don't have those expectations of being extraordinary and irreplaceable to you, it just is not gonna work out.
[00:22:43] But if you get everything sort of in place, a lot of my stuff is press and play. I've owned a company called sticker junkie for over 20 years. Like I'm going there next week for three days, but I. The first time in over a year, I'd even been to the offices because it doesn't require my daily attention. So I do like to set up companies that then create recurring revenue.
[00:23:02] Most of my time, frankly, I spend trading crypto. So I don't even actually work in my businesses all that often, but, but it's just about that initial 18 month to two year startup time. Awesome. I love being surrounded by incredibly smart people. Anyways. Uh, let's get into a couple of questions and then we'll get back to a few more questions from me.
[00:23:25] Yeah. Josh, welcome to the stage. What's your question? Yeah, like, uh, happy to be here. So the question is like, uh, in initial stage of any small or large business, like a they're taking the right. So like, uh, I am currently running a shoe business and I met in like, uh, a day, not at an initial stage. They started and I'm like, uh, at a venue of, uh, 1 million also.
[00:24:03] But then like, uh, in the team, I only have four to five people who are working and, uh, uh, those are just like, they are giving that 10 to 20%. So like, what are the ways we can, uh, motivate those people to give their a hundred percent to scale a business, uh, today at the level? Well, let's open up that to the panel.
[00:24:30] What are some ways that you can incentivize people? Yeah, I'll start off with, um, you know, when you're starting a business, it's very different than when you're scaling a business and you don't have a lot of. And that's a fact, right? But really selling your vision is absolutely key. If you're, if the people around you can understand and see your vision and see what you're trying to create and recognize that there's a piece of that for them down the road, then that can be very compelling.
[00:25:00] You can often hire great talent into a startup because they've done the big corporate work they've done. You know, they've made the money and they've done the corporate work and they know they can go get 200 grand working for another corporation, but they also understand that a startup can be a lot more exciting and the right startup could also be more, um, uh, could actually make the employee more money because they get a piece of it.
[00:25:26] I often say, pay your people with love, not money. Don't get me wrong. Everybody needs some money. But then also back that up with options or some stock ownership or some profit sharing as well. So that if the company performs and you actually build some wealth as an entrepreneur, you share that with all the people.
[00:25:43] Colin complete.
[00:25:50] Yeah. Yes. I would like to comment on that. Also, when I started my sidewalk chalk company, I didn't have a lot of money either. And we were growing so fast money became a very precious commodity, but I employed a lot of moms that made our chalk. And one of the things I did, I was a toy company. I made product for kids.
[00:26:13] So I gave the moms their children's birthdays off with pay because I think a mom should be at home with their child on their birthday. My accountant said to me that I was nuts because a lot of my mother's. The majority of them were Hispanic and they had a lot of kids, but I thought that that was an important benefit and they all loved it.
[00:26:34] The other thing I would do is I would pit my night crew against my day crew. And whoever did the best production numbers at the end of the month would get free manicures. And they love that because these were working women, they didn't get, they didn't get to treat themselves to manicures. It didn't cost me a lot, but it built a ton of loyalty.
[00:26:55] And the final thing for mother's day, I would give them all their windows washed in their homes because you know, we're working moms and we want our homes to be clean and having their windows washed, gave them a great boost feeling. So it was simple little things that I found that would have meaning for them.
[00:27:15] And that showed them. I understood what it was to be a working mom. And I wanted to honor them for giving their time away from their kids, to my company, Marsha.
[00:27:30] Go ahead, Paul. I mean, some of the things that I'd like to say is like working with people to figure out their strengths. Um, you know, one of the things that we've started doing is, is having our people take different strengths. Like, um, the Colby test is one of the ones that we've had our, our people take.
[00:27:50] And it basically helps identify areas where like any potential job, like positions, where they would Excel and, you know, people get energy differently from different tasks. Like for me personally, I don't really like sitting down and documenting a plan line item by line item and like writing out proposals and stuff.
[00:28:12] Like, I hate that. And. Um, you know, be talking to people, be, you know, having a sales call or something along those lines. Um, so making sure that you have the right people doing the right jobs based on not just their, their strengths, but their actual, you know, unique individual personalities, like the things that they innately do and do well, um, has been, has been huge because when you have somebody in the right position and they're doing the things that come naturally to them, then it's easier for them to Excel.
[00:28:44] And it's easier for them to come up with creative solutions in their specific area. A focus than it would be for, you know, for you. And so, uh, first would be identifying, you know, making sure that the right person's doing the right job and then making sure that you set up, you know, ways to reward people so that when they come up with creative solutions or do, or do something add more value than, you know, like going above and beyond what they're technically paid to do, making sure that you provide ways to recognize that.
[00:29:15] And I love what Marcia said about, you know, providing, you know, like the, the time off and that sort of thing. Um, it's just the little things that count. Like, you know, it doesn't matter, you know, if somebody has six or seven kids at six or seven days a week that, you know, you're paying, I don't know, maybe their salary.
[00:29:33] I dunno, a hundred bucks a day. So you're paying $700 to make somebody ecstatically happy with their position and their, and their work atmosphere, which will then obviously increase their productivity. And I mean, you know, for those of us that are, you know, starting and scaling businesses, half of the challenge in, well, sometimes more than half of the challenges is training and, you know, you acquire, you know, getting people on and making sure that they're a good fit with the company, with the company culture.
[00:30:01] And there's nothing worse than, you know, investing so much time and a ton of energy into somebody and then them leaving, you know, because maybe you didn't treat them with enough respect or, or, or they got, you know, shiny object syndrome and they felt like another company would treat them better or give them something more.
[00:30:19] So I'm going, Mike, my two things would be making sure that the right people are doing the right thing. You know, backing that up with personality profile tests, that sort of stuff. And then, you know, rewarding and giving them the freedom to fail and to experiment and to grow in their own in their positions.
[00:30:38] And, um, I'm Paul, I'm done speaking. Thanks, Paul. All right. Uh, let's talk to Al. Welcome to stage out. What's your question.
[00:30:55] Hey, thank you everyone. Nice meeting you. My question is very simple. It's pricing and important decision making aspect for any business, like for a product you sell or a service you offer, how important is pricing it, uh, like, you know, anything, whatever you said, or like, you know, what are the services you offer?
[00:31:14] How important is pricing for the business, and if it is very important, how is that any metrology to calculate it? Or how did you. Figured out that this is the best numbers for your business.
[00:31:31] I can take that one. Oh, sorry. Go ahead, Andrea. Well, I mean, there's loads of different metrics depending on what, what type of company that you have that are usually available for the general price, but then you have to consider what your audiences. So if you're going after a super luxury audience and you actually price the product too low, they think that it doesn't have any value to it.
[00:31:51] So it truly, truly depends on like what type of accompany you have, what type of the pricing that you're doing. But in general, I personally find the marketing and the look and feel all of this stuff is more important when I'm not going after a particularly price sensitive customer. But if you're going after like mass, a mass customer, like when I was selling a lot of merchandise to hot.
[00:32:12] That's a really mass customer. And so we would just go with the cheapest thing available and we would have to have our pricing accordingly low. So, so it depends. What type of company do you have? Uh, it is a it company. It's a software business. Actually. I would actually imagine that in general, for software companies, although there's tons of metrics and analysis that have been done on like, if the SAS company, what you should charge per month, but depending on if you're going B2B or B to C or whatever people, if you priced too cheaply, people are not going to associate value with what it is that you're offering.
[00:32:45] So it's so sort of just depends on, on where you're going, but if you're going B2B and you have a, like a slightly higher, more expensive price point, um, then, then usually they're going to think that your product is better. Got it. Got it.
[00:33:03] Great answer. I love perceived value. I'm going to give you an example out of okay. Billion times, but we were bringing out a knife, a chef's knife, and it was a, the landed cost was $16. It launched at 49. Uh, we changed the packaging from a clamshell packaging to just a nicer package. We were able to take it from $49 up to 99, up to 124.
[00:33:30] Then we put it into a wood package into an, and then it had an outer box similar to an I, I phone box that's same knife. Want to sell 1 99, 1 24. The new product is selling for 2 24 and it's the same $16 knife. So, um, that's what you can do with perception and packaging doesn't happen. The product is one thing.
[00:33:55] It's gotta be a good product and everything about it's gotta be good, but that's definitely how you can, um, package now about scaling. I've got a question for the panel. Have you ever heard of, um, providing dynamic equity? I read a book called slicing pie years ago and started a company by just providing dynamic equity to any of that.
[00:34:21] I couldn't afford anybody. And what I needed to do was bring on an expert team like Andrea was saying, I didn't have the money to do it. So what I did is I basically came up and I said, all right, look, I'm going to assign a value to your hourly service and you're going to keep track of it. And at the end of it, I'm going to evaluate the company and you'll get a piece of equity based on what you've got.
[00:34:47] So I could bring in all the top people that I could not afford and yet get them to help build the company. If you guys ever heard of anything like that, it's a great book by the way, and has a really short read. I actually did a crazy equity split. That's sort of similar to like a slightly different concept, um, where I really wanted to talk to your top tier team.
[00:35:07] And I didn't want to put any money into the starting of the company simultaneously. So I divided equity this way based on indicator, markers of sales within a short period of time. So if we hit like, you know, 3 million within a year, then you get this much. But if we hit 9 million within a year, you get like three times as much equity.
[00:35:25] Um, and as a result, everybody was like super incentivized because we were giving away so much of the company to this team.
[00:35:35] Very good. Now, Ashley, Brenda, I have not heard a lot from you today and I know you have a lot to say about scaling. Would you like anything? Yeah, I'll add to that. A little twist to that. The equity split, we did that with celebrities. Um, so instead of paying per post or per this, and it got really expensive, we brought on a couple of celebrities to say, Hey, if you really believe in the product and it makes total sense.
[00:36:03] A lot of, um, male celebrities use mouth guards, uh, for football, for boxing, whatever that is. And they love the product. They love the company, the people, the, I mean the entrepreneurs in there and we gave them some equity and now they, they really push that. Um, they push our company on their own. So that's a little, um, equity split with, uh, celebrities.
[00:36:28] Didn't you honor McGregor Floyd Mayweather, chocolate Del and Gronk from the, from now not the new England pagers, but the Florida one. Yes.
[00:36:46] What would you, so I w yeah, I had a question on, on equity, so, correct me if I'm wrong, but, um, giving somebody equity, they've been also legally, uh, liable for any, any loss that the company may have. And so oftentimes I've heard that people will give stock options and term instead of equity. Is there, I mean, is there a difference there again, you know, I I'm good at like starting and failing businesses.
[00:37:12] I've done that a ton. I have a few like that. I run now that are successful, but, um, I haven't done anything with like the, the equity split. I mean, that was the one conversation we had with our lawyer. We brought on a fractional CMO and we wanted to give her 5% equity in the company. Um, and basically he was asking, okay, what's the purpose in this?
[00:37:33] And I said, You know, we want to reward her so that, you know, we can't afford to pay her what she's worth right now. Essentially, we want to reward her on exit that when we exit the company, that she's going to get 5% of the sale price. And so basically what he, he w he wrote up a contract that she gets at, that she has the option to get 5% on exit.
[00:37:52] And so she doesn't actually have equity. And that's just, again, I'm, I might be butchering this, but I don't know if there's any difference between stock options, equity or anything like that. Yeah, I will add, I'm not a lawyer. Um, but I will add from an entrepreneur's perspective, I've thought about this a lot, and I really do want to find ways to get equity in the hands of my employees or partners for that matter.
[00:38:18] But one of the major issue is this. If you, if you gift equity, you have to come up with a fair market value of that equity and charge taxes is if that was correct. And if the company were to fail, that employee could end up paying taxes on equity, they received, uh, and yet the company did not succeed. So you have to be a little bit careful with that.
[00:38:38] I do agree that you need to really get your contract straight when it comes to equity and often a lot of lawsuits around equity. So I really, you know, concur anyone considering going down any of these paths, good work to help them structure a plan. And there are so many different variations from Phantom options to options to, um, straight out actually the ownership.
[00:39:01] Um, you know, if you're thinking about doing it, just get good legal advice, Polycom. I also have used equity in my current company. Uh, we brought on a photographer, a graphic designer, our it department, our social media folks and our copywriting people all with equity. Uh, they have worked out great. We did find that our company's needs outgrew the skillset of two of those folks and they still own equity, but they are not involved in the day-to-day.
[00:39:35] We also had another person. Person that had equity, that became an enormous problem. And we ended up having to buy that equity back. So I would caution people. Equity is we think it's an easy thing to give away, but once you give it away, it's gone and the equity is a very valuable commodity in your company.
[00:39:55] So I'd be very, very, very careful to vet the people you're considering giving equity to Marsha. Yeah. That's another reason to add onto what Colin was saying. Colin talked about some of the tax considerations with giving equity versus options, but another reason why options may be a more viable, um, solution is because options typically vest over time so that you are protected in a case where if someone leaves the company and they only have options, they only have the options that eventually.
[00:40:25] By the time they leave the company and then they have to exercise those options, um, to, to convert them into equity versus giving someone equity. And this is, uh, a mistake sometimes founders make because, um, you know, someone could leave the company and they have half the company and they're no longer involved and they're no longer, um, working on the company.
[00:40:43] So if you structure things with options, you can control, um, how they're actually given. And it's typically vesting over time. Um, so there are controls there, and I'm not a lawyer either, but have been down this road many times with many companies. Uh, thank you. I'm Jeff and I'm cool. You know, one of the things that I, uh, I want to point out whenever you're in any room and you're talking business, if you're hearing anything about accounting or legal contract.
[00:41:10] Yeah. Make sure you definitely check it out with the professionals. Um, this is advice is some things that, you know, we've gone through. Um, but it's always good to make sure that you do check it out and that book, by the way, it does go through, um, all of these different scenarios that we've been talking about, but it's called slicing pie and it's by Mike Moyer, you can get it on Amazon or pretty much anywhere, but it's a, it's a very short read.
[00:41:36] It's a great read. So, um, check it out. If it's something that you've never thought about. Okay. So before we get any further, I just want to reset the room just to let everybody know that this is e-com weekly. Learn how to sell online. Today's topic is scaling your business, right? Uh, we are recording the session today.
[00:41:56] Jeffrey's gonna slap me in the back of the head. If I don't say this, right. If you are not prepared to be recorded, please don't put your hand up. And if you like, what you hear, if you like what our panelists are saying, please follow them. If you like the room today and the details hit the green house up by the startup club.
[00:42:15] All right. So let's get to the next question. Uh, Jenny, welcome to the stage.
[00:42:25] Sorry, I couldn't work my mic. Thank you so much, referee. Um, I am. I, well, I started my first company, which, um, I'm currently working in, um, it's an e-commerce business. And, um, like many of you said, this is the first time that I've ever done this. Um, it's self-funded I designed my own products. And so I've already learned such valuable information from all of you.
[00:42:51] Um, and I hope one day to, um, just be I'm just so in all of, all of your successes and how well you have done, I guess the question that I had is if there's one thing that you could tell someone who is starting their very first business, um, what would you tell them is, you know, maybe one thing that they need to do or that they need to remember, um, especially now that you all have went through, um, the phase that I'm in and I've found so much success in becoming serial entrepreneurs.
[00:43:29] Open to the panel. I can jump into that. And actually I'm just paraphrasing what was already mentioned previously. And I honestly can't remember who of the amazing people on the panel here have answered it. Whenever you're starting something, have your end goal in mind. And especially like with e-comm businesses, like back in the.com era, you built a.com.
[00:43:51] You sold the website. And a lot of people now are in the whole concept of build an e-comm business in order to sell it. And a lot of times people don't even think about what is actually going to happen in year two or year three or year four or whatever that might be. So if you're starting something, have your, the end goal in mind so that you are building the foundation appropriately and properly, and you're getting the right guidance and support in order to be able to accomplish that.
[00:44:16] Even if it could take you three years or five years, or maybe even a year who the hell knows, but really make sure you, you are clear on what that end goal is going to be. Are you going to exit and sell a business or not kind of thing? I also think that when you're starting a business, I am going to speak from a product business because my life has been creating products.
[00:44:37] It's very important to have all of your safety testing done, have your ducks in a row. And also I always put together a pretty complete focus testing and make sure you know, what your focus consumers are saying about your product. Listen to them, listen to the ugly stuff. Cause that's where the real learning will be.
[00:44:59] Don't just listen to the praise and then modify your product accordingly before you take it into brick and mortar or e-commerce because the mistakes are far easier and less expensive to correct early on than they are. Once you've started to scale. Yeah, on that note, I would like to add to that. Um, if you're just getting started, don't treat business, like it's a hobby that you are going to be butt hurt if you don't succeed in.
[00:45:33] And what I mean by that is like business. Like you're not ultimately you're in business to make money, right? That, that is the purpose of business. Now, you know, obviously if you're making money, doing something that you really enjoy, it's going to be a lot better for you than, you know, doing something that you don't enjoy.
[00:45:52] Um, but I see far too much confirmation bias and aspiring entrepreneurs where they want their idea to be, to be good, that they almost ignore anything that would make them feel like their ideas. Um, and you have to do this within, within boundaries because successful entrepreneurs, you know, there's, we, we all, I mean, I feel like we all mentioned it, but there was a lot of talk about, you know, being successful as an entrepreneur requires you to pivot.
[00:46:26] And, um, you know, that's, that's pivoting is different than sticking with a bad idea. Sticking with a bad idea is you're just convinced that your idea is so good that it's, you're just going to keep trying it and you're going to keep doing it the exact same way. You're not going to change anything that you do.
[00:46:44] Okay. So I'm not saying that like, you need to be stubborn. You need to be, you, you do need to like stick with things and make sure that you see them through, but you have to be like teachable. And, you know, to the point that, uh, where Marsha said, you know, you listen to your customers. If your customers are saying something consistently about something that you sell, that, you know, Not necessarily easy to hear.
[00:47:07] You need to make sure that you listen to that you internalize it and you figure out how you can then, you know, improve what you're doing so that you actually do a better job of solving people's problems. And so, um, yeah, I know that's kind of long-winded so I apologize, but I guess for me it would just be, uh, trying to avoid confirmation biases, trying to look for the answers that you want to hear.
[00:47:32] And because, you know, you want to feel good. Um, it's, it's better to be realistic and honest. If you have something, if you have a dead, you know, one of your products that just, you know, may need to be cut loose and just, you know, it could be a real, like, it could feel like your baby, like, you know, you spent so much time on this and you've been, and you've invested so much money.
[00:47:54] You don't want it to fail. Well, that's, that's just not any way to really run a business. So, um, I know it's kind of long-winded. But that would be my, I guess that's 5 cents at this point. My name is Paul. I'm done speaking that's about a quarter fall quarter. I actually just checked out your website. It's super cute.
[00:48:15] Um, I'm your target audience? You know, women in their thirties and forties who like are obsessed with their pets, with their dogs, but also want a beautiful clean home. I think that what most I would look at for your website is, um, just expand out your story of really make it relating and connecting to you.
[00:48:34] Because I think a lot of people don't realize that one of the most visited pages on any website is the about us story. And I don't really see your story of making it super hyper-personalized. And maybe that's in your extended emails, maybe that's in your social media, but I'm missing it on your website.
[00:48:49] And I, I can just tell you have a great story behind this, especially because I saw that you were featured on Oprah. So I feel like just getting more of a. Why this is important and creating sort of a communal sense of like you're part of you're part of our tribe. You're part of the cool chicks who have great dogs, so have beautiful homes and want to keep them that way.
[00:49:08] Um, type of a type of tribal feel. Uh, the only other thing that I saw, cause I actually am looking for an Ottoman for my dog right now. Cause he's eight to get up on the bed is maybe having more styles. Cause that's very particular to one particular style of home and it's different than my style of home.
[00:49:23] Otherwise I would have purchased Nadim and right then, but super cute product, keep going the way that you're going. And I can totally see that it's building, but it just needs a little bit more of like, I want to know a little bit more about you and get that whole feeling throughout the whole website for your product.
[00:49:36] Photography is great and your products are gorgeous and that's all I have. Andrea, you have, um, uh, a site in an organization for women entrepreneurs, uh, power chick mafia. Is that, is that correct? Yes. So check out the power chick mafia for sure. It's power chick, mafia.com. And it's just a bunch of grad bad-ass women.
[00:50:00] Who've all started companies that are valued, you know, at least over the 10 to 20 million mark. And then we have several women who've started billion dollar company. So yes, I would love to connect with all the cool women on the call. So check out power chick mafia today. All right. My I've got a 2 cents to, to that question as well from Jenny.
[00:50:19] One of the things that I've experienced, Colin's off the call, but he knows me very well. You gotta be resilient if you're going to be a serial entrepreneur, or if you just want it to be an entrepreneur, the one thing that's going to happen is you are going to get kicked between the legs and it's going to happen every three months or so they say every three months, you got to learn to get up and attack it again, get up and have, you know, what it actually gets easier.
[00:50:47] Every time something bad happens that you think you can't survive. I'm talking about losing a home or things like that, or it could be something minor. It could be, you know, something you can get done fairly quickly, but things happen in business and it's never as bad as you think. That is probably my biggest thing.
[00:51:07] I can tell you, if you want to be an entrepreneur, the other thing is become an expert. You don't have to become an expert in everything, but make sure that you're doing training. Make sure you provide training, the proper training to your staff, let them become the experts. And you know, by doing that, like I know when in our operation, everybody in the operation that I have is working or trying to become an expert in whatever they want to.
[00:51:34] If it's social media, if it's content writing, if it's whatever we pay for it, we want to make sure that people get the right, um, the right information. And we have a sheet that people fill out the end of the week, Friday. Whoever the, the sales or the senior project manager would be, they would receive, uh, the five top things, five strengths, the five weaknesses of the week, and then what you would, what you trained over the week and how you think you, that it could apply to the company.
[00:52:04] And that happens on a weekly basis every Friday. So that's just my 2 cents on adding to what everybody else said. Thank you so much, everyone. Um, I truly value your opinion and, um, I definitely agree. Um, early on, I learned that regardless of what happens, you have to take a step forward. Um, and so I appreciate you and Andrea, um, I'm going to look into your group, so thank you everyone.
[00:52:32] Okay. Now, uh, let me see if my glasses are, I'm an old guy. Okay. If, uh, Shika, how are you? Welcome to the stage. What's your question. Thank you so much. And thank you for welcoming me to the group. So as we all know that the digital space is growing, like it's growing on a very rapid stage. And when we talk about competition, I mean, there is a lot of competition in the market.
[00:52:59] I mean, there are multiple e-commerce websites available, and personally, I have a tutor and I may go handmade or gemstone jewelry. So my question was actually a nominee. In fact, you said it once when we were there in the panel, that packaging plays a very important role. And I wanted to shift from my old packaging to new packaging because I wanted, I want to go into something more luxurious, but again, that's the thing that since I'm a startup and packaging involves a huge cost, and at the end of the day, it is the customer who needs to pay for that package.
[00:53:39] So I had this question from everybody, like, is it the right time for a startup to invest in a luxurious packaging or whether they should be, you know, since they are on a Nisha stage. So they should just stay on the basic packaging for now and then maybe when they grow, they should move more towards the luxurious packaging.
[00:54:02] So thank you so much, Brenda. You've got the most gorgeous packaging with your product. You can say. Yes, I love packaging. And you know, this is a tough question, because again, you have to know your customer and if you're going towards the masses and you have a lower price product is really, um, hitting your margins when you add packaging.
[00:54:25] Um, but this is how you can go about it. Whatever that price point is for your, for your product already, you can go about it in, okay. Let's just say if your customer gets a, um, buys multiple different products. So like, depending on the average order value, if it's XML, they get a free velvet, um, uh, little bag traveling bag.
[00:54:48] So add value with your packaging that they will reuse. And then if they're going to end up paying for it, then you can. Have a little like postcard that says, Hey, for your next purchase, you get a percentage off. So there's different ways to go about it. And even in that little postcard, you can have your, um, I like how Andrea said about your, about me.
[00:55:09] So you had more sentiment towards that opening unboxing experience. Um, I would go about it in the most, um, You have to be really careful when you get into packaging, especially at the beginning. So I would do little steps at a time and then start analyzing what's working. So are more people buying, um, a bigger or order value, and then you start adding more packaging to it, but there's different ways to, to add value to it.
[00:55:36] So think about how can I add value. People are going to keep this packaging and not just throw it away. Think about how apple does your packaging. We all have that little box in our kitchen that has all the products of apple, the boxes, because it's just so nice, but also think about your customer as a whole.
[00:55:56] Is it an, um, the jewelry it's in the bedroom, right. So think about a little jewelry box that comes with, um, your third purchase or whatever that is that your brand will always stick with them. And they have a friend come over and they see the really cute jewelry box and they're like, oh, where'd you get that?
[00:56:13] That's really cute. Oh, it's this? So like, think about that brand awareness that will go for the law. I would like to jump in. Oh, sorry. Ashley. I would actually just love to know what is your current packaging? Cause I am a jewelry for reek. That is the one thing that I collect like crazy. And my husband absolutely hates it because he can never buy me a gift because he never knows what I want.
[00:56:41] And so I have like boxes of jewelry. And so I'm really conscious of how the jewelry does show up as if I'm buying it online or if I'm walking into a store and how they're handing it to me and then the reusability of what I'm getting as well. So can you dive into like, are they just getting the item and like a little plastic bag, a little Zippy and like a little, you know, string bag that has see-through what does that look like?
[00:57:06] Okay. So currently my box is a small cardboard box with a small, sorry, with a small velvet pouch inside. It it's a good packaging, but, uh, I wanted to shift to a more luxurious one with the heavy boxes, with the satin clawed inside, and then, well, the pouch. But, uh, I forgot to add this before. Uh, since we were talking about econ, the most difficult thing, which I face at the moment is the shipping cost.
[00:57:34] So as you go towards the more luxurious packaging, the weight of the product increases, and so you need to pay extra for the shipping. So again, this was the second question I had while thinking about packaging. Right. And what is the price point of your jewelry? Like I, is it handcrafted jewelry? Because I used to be a jewelry designer as well, actually.
[00:57:56] Um, so it was a gold. Is it silver? Is it real stones? Is it crystals? What does it mean. So, um, my jewelry is nine to five Sterling silver, and they're starting with semiprecious gemstones. So obviously I won't say it's cheap or I won't say it's too much of high value. It's all for mediocre costs. So maybe you can save 40 to $50 for a single ring, maybe up.
[00:58:23] Awesome. And I love, um, what Brenda was saying, you know, previously when it comes to starting out small and incremental, and if you walk into my room, I have a crap ton of boxes. I mean, like they're piled up and I don't actually keep any of my boxes. What I do keep in was what you already provide, which is the little velvet pack.
[00:58:40] Um, But they're like, I don't know if it's a button or something along the lines or zipper those types of things that do keep for travel sake, especially if I'm, you know, going on the plane or whatnot. But if you're talking about Sterling silver, one thing that I wish came more often was, um, a polishing cloth to be quite honest with you.
[00:58:58] Cause silver, obviously, you know, it loses its shine quite quickly compared to obviously something is gold, but I would incrementally work your way up. Like Brenda was talking about, ask the people who are already buying right now, if they're even using it because nine times out of 10, the boxes get thrown out.
[00:59:12] It's a beautiful aspect to it. But really at the end of the day, if you just wrap it up, And like tissue paper with a really beautiful sticker on it. That adds just to that like extra layer of opening that it doesn't add to the weight of the, of the package, but it just creates it a little bit more of like, yeah, it be able to present, like for me as someone who buys jewelry religiously, that's something that, that hits home for me rather than the actual box itself, having like a satin liner.
[00:59:39] I don't give a crap about that, but that's just me personally, I'm Ashley and I'm done. And I I'd love to add in my thoughts on this. And they kind of more pertain to branding specifically, um, packaging as an extension of your brand. And so think of it as that. It's another way that you communicate your, your brand, your value proposition, the things that you value as a company, if you are, if there's any causes that you believe in, um, you know, it's that, you know that about us sort of sentiment, um, packaging as an extension of your brand.
[01:00:15] So you need to think of, think of it in, in that regard too, when people are opening it, you know, what is the impression that you're trying to leave people with? You know, branding in its basic form is just, is leaving a mark on someone. And, you know, we have brands, you know, apple, uh, Tiffany's coach, whatever, right?
[01:00:39] When you, when you, when I say those names, you know, images and thoughts come to mind about those brands.
Scaling | Ecom Weekly
June 24, 2021
CopywritingCopywriting | Ecom Weekly
[00:00:00]
And people are coming in here now to start up club. Hey, Hey norm, did you know that, um, startup club is the largest club on clubhouse. Now we became the largest club, uh, I think a week and a half ago. That's incredible. How many members now? I think we're almost up to 600,000 followers. If anyone here is in the room and they are not a member, um, please follow us and we'll, we'll try to activate you as a member.
[00:00:36] There's a lot that goes through the other alternatives. You could follow it in men like myself or Jeff, and we can just, uh, add you a much easier, um, startup.club, almost 600,000 members. We've got great speakers and let's just get to today's show and norm, look, you've done this five weeks in a row. Every time I come in, I learned so much as you know, Well, Jeff and I are invested in two e-commerce companies, um, here in the incubator, uh, and, uh, we're really excited to learn more and more about how to make those companies successful norm nobody's better than you do.
[00:01:13] You, you, you run a, a podcast that you've run for two years. I think it's probably one of the top podcasts rise of the micro brands, uh, by norm Ferrara. And I know you call it lunch with norm and you won that three times a week and it's just incredible. Keep it going and take it over. It's just a norm before you start, just want to remind everyone that we are recording today's show.
[00:01:37] So if you do come on stage to ask a question or participate, you are giving us permission to record you. And also a reminder go to startup.club and sign up for our mailing list. So you can be informed of e-com weekly and other great rooms that are happening on a recurring basis, as well as special events.
[00:01:56] Thanks norm, back to you. All right. Uh, thanks Colin. Thanks Jeff. Um, Hey look. Yeah, it's five weeks in a row. I think Mitch, I think Michelle, no, just meet you. There we go. Uh, so it, it has been five weeks in a row and hopefully we keep building, uh, just like the podcast, uh, what we're trying to do. Is bring everybody solid content in a no pitch environment.
[00:02:27] Okay. We're not going to be pitching. And the people that are coming up to ask questions, please don't pitch. We just want to give solid content. So the room is called welcome to e-comm. We are, uh, well, uh, e-com weekly learn to sell online today's topic is how to write. Great copy. So like Jeff said, we are going to be recording.
[00:02:49] If you come up and ask any questions, just let us know if you don't want to be recorded. And we have got some really fantastic guests that know how to write. Copy. So, uh, we've got Rob burns, Diane bolster and Michelle Harris and uh, oh. And you know, Jeff, Jeff sass, of course. And we're just going to dive right into it.
[00:03:12] Uh, by the way, if you like what you're hearing, please invite guests or your friends over to, to pick up any content if you like to start up. Uh, or if you see the little green house up there, this is new to me, the greenhouse, but click on it. And I guess you get notifications and if you like the panelists and what they're saying, please follow them.
[00:03:32] They've all dropped great expert advice. Okay. So let's start off, Mr. Rob burns. How are you? Hey, how you doing? Good. You were, you were just on the podcast and we were talking more about video marketing, but scripting and copy it. It's so important. One of the things that you were mentioning the other day, and it was writing for the, the, the, the customer and not writing with ego.
[00:04:01] And I think this is how we can start it up with everybody on the panel. Let's talk about that. Let's talk about writing for the customer. Yeah. I mean, you know, I, I sound like a broken record, but, you know, I mean, I would say probably kind of rule number one is, you know, it's not about you and it's not about your product.
[00:04:22] It's, it's about, you know, the customer and you know, what, you know, what kind of pain are you fixing for them? And, you know, what's in it for them because, you know, honestly, that's, that's, that's really, you know, anybody that's, that's viewing your content or your copywriting, you know, they're just looking at yeah.
[00:04:40] You know, how does this make my life better? Or how does this solve some problem? Or how does this fix, you know, some kind of pain. So that's really what I lead off with. And that's really kind of at the top of my head, you know, anytime we write anything,
[00:04:56] Diane, what about you?
[00:05:03] Can you hear me? Yes, I'm doing great. Norm. How are you? I'm doing great. And I know your techniques are crazy, but let's talk a little bit about that. You attack this, you know, I know that you're tacking on a very similar way Rob would, but you've got some really great strategies and, and also different styles that you work with.
[00:05:27] Can you just explain a little bit about that? Sure first, I want to say, Rob, I believe you were absolutely spot on. And, um, one of the things I would like to add to that specifically is if you're going to write to their heart and you're going to focus on solving the customer's problem, make sure that you look at whether or not they feel that they're capable or jaded, which I believe is customer awareness, level five.
[00:05:47] And I know Rob already knows this, but I figured it's a good add on because a lot of the reason people see a product and they, you know, they, it has everything. They want everything they need, you can paint their dreams and you can solve their problems. But if they don't believe that they're capable of using that product to solve their problem, then they're going to bounce.
[00:06:05] Right? So it's, it's kind of a, I believe that theory is called copywriting is therapist. You know, when you go into a therapist, you think about, you know, you're going there because you don't know how to solve your own problem. And you're not aware if you're capable or not. And so you almost have to hold their hand and show them.
[00:06:22] That this particular product works, even if, and that's a big copyright. Do you see them cooperating everywhere, even if you failed at this before? Because a person's biggest fear is not that the product will fail and they'll be annoyed or that the waste time it's, that they'll fail. Right. So, and then they're going to feel embarrassed because they're, you know, buying with emotion, they're justifying with logic and right in between, there is that failure.
[00:06:43] So, um, I do have a lot of advanced copywriting techniques that I use that I believe a lot of top copywriters use it. Is there anything specific norm you want me to touch on?
[00:06:57] There's like we could do this for five hours, um, so
[00:07:04] that I want you to make sure you hit on, uh, during this call is your Hey, um, hypnotic anchor text or whatever you're calling it. I forget what you said. The hypnotic anchor. Okay. Okay. Okay. So that kind of, that goes back to the fact that most of the product things sold on Amazon and across e-commerce are actually private label rights products.
[00:07:29] And so they're me-too products. And so you have to look at positioning, right? And if let's say you search for dog leash and you pull up 18 search results on the first page of Amazon, um, if you look at those, any consumer, any customer and consumer can look at those and say, okay, these all look like the same dog leash in different colors.
[00:07:46] So why is this person charging 26 99? And this person charging. 13, right. Um, if they get curious and they clicked because you did great with your images, you'd well with your title, um, you've been persuasive enough to get that click right then your next job is going to be to position your product is one that superior enough to gain that price, to gain their respect enough for them to pay that price, that extra $2, $5, $10.
[00:08:10] One of the ways that we do that is with something called a hypnotic anchor and a hypnotic anchor is literally something you make up about or uncover, um, that combines a feature and a benefit of your product that you're selling on Amazon. That's a me too product, right? Because you probably sourced it from someone in a factory, just guessing.
[00:08:30] And you, you create a name for, for either a feature or a benefit or, you know, a high-tech part of that product, even if it's just a basic dog leash, right. And that sticks in people's brains and you justify it after creating that feature. And then when they go to search for other products that they bounce off your page, because if you're charging $10 more than everybody else, they'll probably go do some more searching just to make sure you're as good as you say you are.
[00:08:52] Right. And that you're worth it. Um, they'll have that hypnotic anchor stuck in their mind and they can't find it anywhere else. So their subconscious mind is running through the cycle of looking for comparisons, looking for superiority. Is there anything better than this? Is this going to work for me? And so with that stuck in their minds, it's kind of an openness, a loop.
[00:09:11] They have to close by knowing that they made the best decision and purchase your product. And that's part of how we get such high conversion. Love it and gave some really great examples on the podcast about how people are using them. I think you used the, a vacuum for an example, but you see this all the time.
[00:09:30] Like once you, once you explained this to me and this goes back probably a couple of years ago, but then you start looking at TV commercials or even you successful products and okay. On the Amazon listing, you might have a thousand different competitors, but you have this hypnotic, uh, anchor and well, you know, none of your competitors have it.
[00:09:52] So they're going to, if everybody's the same price point and you have that one thing, whatever it is, you know, hypo sock for a vacuum, what Hoover's Gore-Tex technology can pick up a bowling ball. Everybody else's can pick up a bowling ball too. You just have to stick the end of the hose on it, but they have vortex technology, right?
[00:10:12] Exactly. The other thing that's really cool about this is if you're doing this, if you do this right, and you have a good quality listing that vortex, uh, technology will also take it from a hundred dollars product to $149 product, because nobody else has it. That is correct. It's all about positioning and you want it.
[00:10:36] The reason that hypnotic anchors works so well is because the human brain does not like to process a lot of information, right? It's you, everybody has filters. It's almost like from the moment you're born, you have this video camera stuck to the front of your head and it creates these things called meta programs that.
[00:10:51] Mean that your brain specifically, your subconscious mind will push out most of the information. So you're only looking for specific things when you're looking at a listing, right. And that's only based on what you know, so if your brain sees something that's curious and it's in a small enough bite of information, that makes sense to your brain, your brain will remember it instead of trying to go through and explain where your product superior in, you know, five different bullet points when everybody else's product is flashing up below it on Amazon.
[00:11:15] Right. So it is helpful. It's kind of thinking about the brain as being a child, as opposed to thinking about the brain as being a highly intelligent processing unit. Right. You know, um, I'd really love to get some input on you because, uh, I know anytime we're getting together and we're talking about branding or anything, uh, you always come up with incredible, amazing copy.
[00:11:40] And it's like an aha moment. I remember sitting down with you with a PR reach and you just within minutes went, oh yeah, you should do this, this and this. And this is how you position it. And I went, how did you do that so easily? It makes complete sense. Any thoughts on copy? Uh, thanks. Thanks, Norman. Thanks for that.
[00:11:57] Yeah, I remember that was, uh, in, in new Orleans. I think we did that. Um, which was a lot of fun. Yeah. I think, you know, I really liked, um, what both Rob and Diane have said. Um, and I wrote down the hypnotic anchor. I, I think I've been doing that without really knowing there was a name for it. And, and, and another way to look at that is really just branding your features, right?
[00:12:18] Come up with a name for the features that is memorable. Sometimes it's also an acronym. Sometimes it's an acronym that's catchy and easy for people to remember. That'll serve the same purpose. So expand on what Rob was saying. Yeah. You know, when you're selling something, you're never really selling a product or a service, you're always selling the outcome.
[00:12:37] Right. It's all about the outcome. That's, you know, what is it going to do for the customer? How's it going to make them feel what kind of problem it's going to solve for them? So if you write your copy thinking in terms of what is the outcome and how can you convey that outcome effectively to your customer so that they understand, you know, why they want this?
[00:12:56] Not because it has these features, they want it because of what it's going to do for them and how it's going to make them feel after they own it. Um, and I also think it's important to have kind of a consistent voice, you know, find the voice for your brand and make a decision. Is, is it going to be very serious and technical?
[00:13:12] Are you kind of humorous? Are you light and friendly? Are you talking like a business or are you talking like person to person and then try to be consistent and have your copy fit within that voice? Those were a couple of suggestions I would make I'm Jeff and I'm done speaking you. Thanks a lot, Jeff.
[00:13:28] Hey, we're going to get to the questions in just a second. Hey, Paul. You're here. I am. I am here. Sorry. I was a couple of minutes late. This is, uh, uh, uh, I love listening to smart people. Talk about what they're good at and like I'm a geek about psychology. So, um, just that the concept of anchoring. Um, I know I'm not sure if you've were out or you're familiar with, um, Dan Arielli, Diane, but he talks about it.
[00:13:55] He calls it, uh, keystoning. It's a keystoning effect that everybody does. All, all Diane did is, uh, use an anchor. Uh, there are a hypnotic anchor. That's all Paul I'm I'm hypnotically anchored back to, but it's funny cause this is making me think through our listings and like we were category leaders and it'd be very easy for us to just trademark a phrase, uh, you know, have it be a part, a part of, one of our feeds.
[00:14:25] Exactly. Like how cool is that once, once you like really anybody who's listening, if you're watching TV tonight, just watch any of the beauty commercials watch. Oh, um, what is it called? Olay, whatever it is, skin, what's the bloody thing called yeah. You know, beauty products. Um, but anyways, just watch any of those commercials and you'll see these anchors that come up time and time and time again.
[00:14:53] It's so cool. And, and, you know, just try it. I've got another question just for the panel. Uh, copywriting looks so easy. Like I said, I sat down with Jeff in new Orleans and I'm not a great copywriter. Um, I'm smart enough to know that that's probably my weakness and to let somebody else handle it. You guys make it look so easy.
[00:15:17] I sit down, you know, like I said, we're, we're sitting down having lunch in Jeff's in five minutes, solve my problem that took me weeks to do. And you know, why? And this is, this is true, by the way, uh, by changing this a little bit of copy on my website, all of a sudden I went from very little or few subscriptions to mega subscriptions because people got what I was trying to say.
[00:15:43] How do you make it look so easy? And when should you job it out?
[00:15:53] Anybody? I mean, I think on the, on the easy side, I mean, it's not, it's, it's, it's like Malcolm Gladwell's 10,000 hours rule. I mean, if this is something you've been doing. You know, for your whole career, um, is writing and massaging copy and, and writing in different ways than it just comes faster. Just like if you, you know, talk to anyone who's been doing something, if you, if you know, someone who's can climb a mountain, they can climb it a lot faster than you can.
[00:16:19] Cause they've done it before and you're just starting out. So I think it's just practice and experience that makes it seem like it's easy. It's like that classic. Uh, there's a story I'm going to jumble it up, but it's like someone went to some famous designers to have their logo, um, designed, and they literally met them for coffee, a cup of coffee, and the designer took a napkin and sketched out the logo.
[00:16:41] And that was the logo for a big brand, just like that. And so the client said, okay, well how much is that? And the guy says $250,000 and he says, well, wait a minute. You just took. 15 seconds to do it on a napkin. I'm not going to pay $250,000. He says, you're not paying for the 15. The designer said, you're not paying for the 15 seconds I just did in front of you.
[00:17:02] You're paying for the 30 years that I've been doing this, that led up to me being, being able to do it in 15 seconds. Right. So I meant that's how I would answer that question norm. Um, you know, um, I forgot what your other question was, so I completely agree with that. Yeah. Oh, go ahead. Well, I mean the concept that something, you know, it may seem easy to somebody.
[00:17:27] Well, the reason why it seems easy is because you do it all the time. You know, it's not like you say, I play old fart, barely cocky. Right. Um, I'm not under any delusions that I'm going to be making the Stanley cup playoffs, but, you know, I watch, you know, the ads just get their butts kicked, unfortunately by the golden Knights.
[00:17:45] And you know, some of the stuff that Nate McKinnon does, it's just like, it looks so easy. Well, why does it look so easy? What cause the dude trains all the freaking time, like he's a beast. And so you look at that in sports and that makes sense. But then when you go to skillsets and service-based stuff like copywriting, it's the same exact thing it's easy because you know, you do it all the time.
[00:18:07] I mean, it's definitely a skill that you can learn, but that's where you have to look at your value proposition. Um, or, or what is that value proposition? The, um, Opportunity cost. You have to look at your opportunity cost of like, do you really want to become an expert in this? Do you have the time to do this?
[00:18:23] And is it something that you really think that it's actually worth your time? Um, you know, considerations that you have to take into things you have to take into consideration, or obviously how much capital you have, you know, if you can't afford to hire a copywriter, then you're going to have to do it yourself.
[00:18:41] And you're going to have to, you know, learn some things. But I think that you should always look at it with an eye towards we're going to earmark this for the future to go with the professional, because you know, clearly, you know, I'm not a pro copywriter or something like that. Yeah. And like I'm looking at, um, a bunch of, I, I know a bunch of people that are listening right now that are incredible e-com and, uh, uh, Amazon sellers, like there's I see Dr.
[00:19:10] Cause and Vernon and rad and Tom Hartley, Roslyn, um, Jani kid. I mean, there's, there's so many people that are listening right now and there's a fine line because I, I can see by writing, letting somebody else right. And doing it myself, I can see a dramatic increase and, uh, in conversions, uh, and that could be in your emails and conversion rates, their click through rates that could be for your Amazon listings, that could be for e-commerce.
[00:19:44] Um, but there is, at some point you've got to take a look at it and say, yeah, I can do this. Okay. Um, but should I really go out and look for that copywriter questionnaire? How do you find, or what questions do you ask? A great copywriter. There's so many people I've gone to free up. I've gone to Upwork, I've gone to, um, online jobs pH and a lot of the times I see crap that comes back and you're, you're paying pretty good money for it.
[00:20:12] Any thoughts on that?
[00:20:19] Hey, I don't know if I'm still figuring this whole thing out. So I think the number one thing you look for when you're Jennifer copywriter, obviously from a financial perspective, is going to be, what are their conversion rates? You know, um, obviously how much what's their experience? How much have they made others in sales in your industry?
[00:20:36] But I think the biggest thing that most people miss out on is they don't look for copywriters who have a passion to help other people. Um, and a copywriter who that's, that's why I started doing it is because I figured I could help families actually leave their jobs. And I just had a daughter. This was like 12 years ago, um, who was in the NICU for four months and I was working a job 80 hours a week and I was okay, I've got to do something.
[00:20:55] So I pulled my copywriting skills back out of my bag and started doing it again, you know, but if that person is not passionate, if they're not thinking about how, what they're doing is so critical to your life, that they're putting food on your table, making sure you can feed and clothe your children, making sure that you have the dream that you want.
[00:21:10] Then I wouldn't touch them with 10 foot poles. So whenever I'm looking to hire somebody else for copywriting, I don't handle and handling your own copies a little tricky because most copywriters know, um, I'm always going to ask the questions about, you know, how passionate are you? Are they paying attention to me?
[00:21:22] Are they going to care enough to make edits? You know, are they going to care enough to, um, make sure that, you know, what's on the line, which a lot of times is your family. Survival is actually going to be imminent by getting you those conversions on those sales.
[00:21:38] Yeah. And I guess you also want to make sure that it's the right writer for the right copy. Uh, I know with press releases, uh, we'll end up targeting people that have, they might be incredible blog article writers, um, but they really suck at press releases or press release writer that sucks at being an email marketer.
[00:22:02] So I guess you should be targeting those types of, um, you want to see that portfolio and you want to make sure that you're targeting the right person. Correct. All right. Yeah, I would add, I would add one thing too sometimes. Not always, but sometimes it's also important that the copywriter has, um, domain knowledge of the industry, right?
[00:22:24] Because depending on what your product or service is, if it's in an, in an industry where there's particular language, you know, common phrases, terminology, the way things are. That your customers would understand because of the industry they're in. Then it's going to be important to have a copywriter who has familiarity with that language has familiarity with that vertical.
[00:22:46] So that's not true in all cases, but in certain verticals, it could be very important to have someone who has the technical knowledge of that industry to understand terms of art, understand the language it's commonly.
[00:23:01] Thanks. Jeff, I'm just going to reset the room. Uh, you're listening to, uh, you're listening to e-comm weekly, uh, learn to sell online and today's topic is how to write. Great copy. Uh, I've got, uh, an incredible panel of guests today that are all, uh, great copywriters. Uh, if you like what you're hearing, uh, please give them a four.
[00:23:24] If you like the, if you like to get notified, click the greenhouse up by startup club and always appreciate it. If you can bring in friends. So, you know, please invite friends. If you think that they get anything out of learning a bit more about copy. So before we go, oh, and I guess this is a Jeff thing, they'll always say, oh, you forgot to talk about the recording.
[00:23:46] If you come up on as a panelist or speaker, um, please, if you do not want to be recorded, uh, make sure you let us know. Okay. Let's start with a question, the Veeam, welcome to the stage.
[00:24:06] And if you have a question,
[00:24:12] I just invited Johnny. I think he has a question, but I actually have some questions too prior to this. So this is just gotten my brain spinning. Like how important is it to trademark? Like this hypnotic phrase. Um, so that it's something that only you can use. And then is that also something that you then you could go in and like do a press release about, for example?
[00:24:31] Well, that's a great question. So the first thing that we do is we make sure that hypnotic phrase is going to work and actually add power to the listing. Um, and for some clients we'll test a few different hypnotic phrases. Of course they'll split test. But after that, I think you can go to legal zoom and it's like, or U S PTO.
[00:24:47] And I think it's less than $200 just to copyright that. And you want it to be yours and owned by you because it's part of your brand, right? So it's relatively important for legal reasons and financial reasons. If you don't want someone to swipe it, once you find something that works
[00:25:02] from your perspective, norm, is this, do you feel like this is something that would be public, uh, like press release, publicity type words? Oh yeah. Uh, not only that, I I'd write a. I'd give it as much exposure as anything. If you've come up with is hypnotic phrase. I write an article about it and put it on my blog.
[00:25:26] I would, if I had influencers or brand ambassadors, I get them to promote the heck out of it. Uh, and, uh, you know, you could even get them to do contests or whatever, just to get the word out that you've got this really great, you know, a vortex technology. Uh, the other thing is make sure that you're sharing and repurposing this all over your social media.
[00:25:51] Everybody's got to know about vortex technology, nobody else has it. And of course, um, a press release would be a great, uh, uh, source for you to get a lot of exposure. Don't go cheap on the press release, um, you know, make sure it's not a free press release or you'll get what you pay for. Um, but you know, pay a hundred or 200 bucks.
[00:26:12] I mean, you could pay 750 and get some really incredible exposure and to link the press release back to your blog article, but yeah, just pumped the heck out of, out of it. I think it's a great idea. Well, no, no. I'm, I'm going to play devil's advocate here for a moment and just put some caveats in that, in, in that I think, you know, when, when Diane was first mentioning the, uh, hypnotic phrase as an anchor, um, I really liked the way she described it and how it's, how the human brain works and what you're really using it for is to make your listing stand out above all others for same or similar products, right.
[00:26:51] So that I think is, is a great concept. If you're going to names a feature that's really not particularly unique and not really proprietary, I wouldn't go, hog-wild doing press releases about that feature. Um, if it's not truly a unique feature, even just because you came up with a clever name for it, um, because that could potentially backfire, um, when people realize it's really nothing different than what everyone else has.
[00:27:19] So I would, I would put a little bit of a caveat. Um, but I would also agree with you that, you know, if you're going to use that phrase to brand a particular feature, whether it's unique or not, you want to use that every time you're talking about the product, whether it's having an influencer promoting it or social media, whatever you always want to highlight that feature using the brand or the hypnotic phrase that you came up with.
[00:27:42] So I would just put a little bit of caveat or not going overboard, unless it truly is. Uh, something that will be perceived as proprietary or unique. And that's just my opinion. I'm Jeffrey and I'm done. Jeff's always got a good opinion. Uh, but let's take, um, an example. That's a use a plastic shoe stretcher and he's horrible product.
[00:28:03] Um, everybody that's selling, it has horrible reviews. Uh, anyways, if I take a look at it and I take a look at these seven people that have got an average of a three and a half star rating, that's over all seven. Um, anyways, it's, if you look at the reviews, the spring breaks, the plastic breaks, and this is a perfect example of what you were saying, Jeff, where you could bring in some product innovation, we had awful of Eurocon on the other day, talking about just slightly be slightly different than your competitors.
[00:28:38] And what you're saying is exactly that, um, you know, if you want the one, two punch with the hypnotic anchor, uh, yeah. Change the spring, make it a better, you know, it's a titanium spring, or you've got w you've gone to wood instead of plastic to show a little bit different. So I don't know what you would think about that.
[00:29:00] Actually, I have a couple of things to say about this. First of all, um, as you know, there's kind of a code of ethics and top copywriters, where if there's a product that's bad, we call it throwing back the fish. And so we're not going to go out there and try to convince somebody to buy something. That's not going to benefit their lives.
[00:29:15] It's kind of a, you know, just a core ethical thing. So, um, the second thing is, yes, you can create a hypnotic anchor for it. Uh, I would also focus on letting people know how you've updated the product. So make your first bullet point about how you've updated it, because if you yourself have those bad reviews and you're not going to launch a new listing, cause you don't want to lose traction in terms of ranking, you know, see if you can place updated in the title, see if you can place update at 2021 and the title and the bullet points, um, make your make part of your golden thread about the fact that you've updated that product you've gone out.
[00:29:45] You've spoken with your con your consumers and your customers. And you have fixed all the flaws that people are seeing in other products on the market. And that's what makes it innovative. And you wouldn't necessarily need a hypnotic anchor for that, but you could certainly use it.
[00:30:01] Hey, Rob, you're quiet. I'm not quiet. I'm curious to see if you have anything to say. Yeah. Yeah. I mean, there's, there's a lot of good stuff. I think. Um, uh, well, one thing I like touching way back on, on some of the stuff that Diane was talking about, like almost kind of writing for therapy, um, what, what, which I totally agree with, it's almost kind of like a, um, uh, kind of a subset of, of, of the hero's journey, you know, kind of Joseph Campbell stuff where, um, I think a lot of times, um, When you write, you know, to create a mindset is, you know, you're really, you know, you know, in the hero's journey, there's always kind of like the hero, but the hero usually, you know, has this obstacle or this challenge or this thing that they need to overcome, you know, which is a customer, you know, what, you know, whatever pain they have, you know, but then there's always like, you know, this, this person who who's, you know, um, you know, as Diana was mentioning, you know, maybe, uh, doing, you know, you know, doing kind of therapy, you're helping them out.
[00:31:14] But, you know, in, in a hero's journey, it would be, you know, somebody that's kind of wise and knowledgeable, that's a guide or an advocate. And, you know, and I always use like the star wars analogy where. You know, there's Luke Skywalker, who's kind of, you know, rising and coming into his power, but he has all these challenges and things he doesn't understand.
[00:31:33] He doesn't know, you know, and then there's Yoda, you know, who, you know, who, you know, in reality has all the power, but, you know, he's really kind of just sitting back and he's just kind of guiding, you know, Luke into, you know, in his own personal, you know, personal journey. And I think when you write like that, um, you know, either, you know, as therapy where you're the person that's helping and solving, you know, the challenge or, or, um, or, you know, if you know this, which is really kind of, you know, similar to the, to the hero's journey thing where, you know, you're the, you know, you're the Yoda to Luke Skywalker where you, you know, you're helping them out, you know, and, and if you can keep that mindset, I think it makes a huge difference, you know, and I, I would say.
[00:32:17] And this is really, you know, kind of copywriting 1 0 1 too, is, you know, people, you know, people make purchases, you know, based on emotion, you know, except for, you know, maybe a few exceptions where, you know, maybe it's like B2B where, you know, the boss said, well, you know, just go out and buy, you know, part number, you know, 35 dash eight or whatever, you know, we need a bunch more of those, but usually, you know, the decision, you know, from on a consumer level, um, is going to be more, you know, based on, you know, how is this going to make them happier or smarter or better looking or feel better or solve a problem.
[00:32:51] And so if you can kind of keep that, you know, in, in your brain, you know, why you're writing copy. I think you'll probably be miles ahead of most, you know, most folks. Um, also you, you guys were talking about, uh, you know, how do you pick, you know, how do you pick a good copywriter and, um, you know, for us w when, when we're hiring, you know, usually we just test them out, right.
[00:33:16] Um, and, and like, we don't even say, Hey, you know, we're just giving you a test drive, you know, because we basically just want them to be thinking the way they would think as, or as they have a normal gig and not like they're auditioning and trying to get a gig. And, you know, w w you know, and see how are, how are they through the process?
[00:33:32] And, you know, what are the questions are they asking? Are they asking more questions about the product? Are they trying to ask more questions about, you know, who is your customer and trying to get into their customer's head? Because that'll tell you a lot about, you know, just the mindset of the copywriter, you know, and I'd say, you know, maybe one in five, one in 10, you know, are going to be those, those golden copywriters.
[00:33:51] And then, you know, the other ones are going to be, you know, okay. Or not work out. Very good. Hey, Yani. Welcome to the stage. Hey, norm. Uh, thank you for inviting me up. I have a one question regarding copywriting. It is. Why do we keep seeing, uh, Amazon listings? A killer, like selling a ton and we don't see actual wholesalers or vendor accounts investing in a good copy.
[00:34:28] Well, my thought is, uh, especially on the vendors side, um, vendors side is probably because of Amazon itself. Right. I don't know. I, uh, you know, Paul probably could answer that one as well. I see the same thing with, um, with vendor central, you know, it's very, you know, 50 characters, that's it. And you know, there they go.
[00:34:52] They're off selling. I don't know. Maybe the algorithms picking them up a little bit differently. Maybe they've got a little unfair advantage. Um, I do know on the seller side, It's all about the copy. So, yeah, especially now, uh, Steve Simon son got it goes back a year and a half ago, he was talking to me about short listings and it was like, oh, no way.
[00:35:16] We've got to have these longer listings and, you know, put in pain points and put in the benefits and put as many keywords as you can while making it legible, um, for the, uh, for the, for the buyer, but shorter titles, all of a sudden started ranking better, not, um, like no duplicate keywords started ranking better anyways.
[00:35:41] Um, I can't tell you why, unless, you know, Paul or anybody else has an idea why an Amazon listing or like, Hey, rad or any of the guys that are listening. If you've got an idea, why vendor is outselling on shorter? Um, shorter titles, let us know, because I really don't have an answer for that.
[00:36:05] I have no idea. The hypothesis that I have would be that Amazon typically test stuff in vendor before they roll it out to everyone else. And what I would, what I would think is that they're testing something. And it, my guess is that it has to do with the, like the, the actual user, like data that they're getting from users clicking on links.
[00:36:32] Um, I would assume that, you know, people are more, more, more likely to click on a link that has a title that's not stuffed with keywords and like, you know, 250 or 500 characters long or something insane like that. So that that's my hypothesis, but there's no, I have no proof to back that up. It's just make sense.
[00:36:52] And it couldn't be, so don't take my word for it. And Yani. One of the things that, you know, we, we could look at too, it's not just the title, right. What's in their bullets. Typically they're pretty short, what's in the back end, but also how are they doing their PPC? You know, maybe that's optimized and maybe they're, you know, doing a better job, but really, I don't know.
[00:37:17] And I wish I did because I, I see it all the time and I just kind of cringe when I see, you know, we're putting in all this effort and they put in 50 characters killing it.
[00:37:29] Sorry, I didn't mean to jump in on your thought you were finished. Let me, okay. So I have a couple of theories we've been testing over on our end as well. One of them is ranking organically without any keywords in the listing. Um, hint because of PPC and because of Amazon cycle of love, it works. So we've had people with shorter titles, titles, like 80 characters are shorter.
[00:37:49] They're more mobile optimized, their ranking higher. The way that we're still increasing conversions is by moving the sales copy over to the images, right? Um, they may not auxiliary, obviously they're not the main, but the auxiliary images and then also an EBC because 48% of sales from the last measure, start on mobile phones and end on mobile phones on Amazon.
[00:38:08] So what people are seeing first is your title. They're not really paying a lot of attention to it right below that when they look on their cell phone, Your images, you put your sales copy on your images, right? And then people know about the product. And we're finding that a lot of people, even if we're not including bullet points sometimes just because we like to test things, right.
[00:38:23] Or maybe like 50 characters or fewer, which some people are locked into and we're not doing ABC, people are looking at for these listings. People are looking at the images and the copy on the images and they're buying anyway. Right. And those sales with, if someone searches for a keyword and it gains a cell from that keyword and continues to gain sales from that keyword, that is a lot of how it seems Amazon's ranking on the backend right now.
[00:38:43] So not having huge bullet points in a lot of categories, isn't really mattering. As much of those people feel comfortable making a decision, uh, by starting their search on their mobile phones. I don't know if that helps at all, but it's a theory, but it's one more testing and it seems to be working pretty well.
[00:38:59] That's awesome. And one other thing, uh, which, uh, you know, this is all part of copy, but for those people who are writing their book, that they wish it would be published on their image. Don't do that. Nobody's gonna read it. They're gonna skip past your images faster. They they're just not going to look at your images.
[00:39:21] Nobody wants to read it. Your ego on an image, especially on Amazon, you could put the highlights like Diane was saying on the image and you can mirror it in your bullet point, but a couple of words or three words per bullet, you don't have to write a paragraph or two or fill up the whole thing because it's for who was it?
[00:39:48] Diane. Were you telling me about Burt's bees where they don't use any words at all? They use? Like, I, I don't know. I'm going to say chocolate mint, you'll see the container or the lip balm, and then you'll see this incredible gorgeous, um, photograph of chocolate and mint and it says everything. And then it's also over in the, um, over it.
[00:40:14] They, they describe it more in the, their bullet point, but, uh, yeah, I just see so many, um, sellers. Sell a book on an image. So I'm not sure. Um, if you agree with that, Diane, I definitely don't sell a book. We don't want to have five bullet points on every single image. Um, we want short, punchy, powerful specifics, anything that you want if you're using testimonials.
[00:40:37] And then in terms of companies like Burt's bees, um, I'll say two things. One, they have a multi-multi multimillion dollar budget. So. Where the customer is at in their acquisition process is different than where customer will be when they're searching through several private label products. Um, so while I love their images, an image is worth a thousand words, but that means there's a thousand different ways a customer can interpret your image, right?
[00:40:59] So it is important to put something on there that sells your product, right? That shows you understand their problem. You can solve their problem. Um, two big things that, you know, we're just kind of copywriting 1 0 1 are put the car, people read things that are right below an image. So make a block below your image and put the copy down there.
[00:41:16] If you have more than a few words again, don't overload it. And also people like to read things at the end of straight lines. So if you're doing a, you know, all my features image, draw a straight line to a box that has a few words about that particular feature, a benefit. Don't just slap it up there as a checklist, even though people read checklists, they like to know how the feature, the benefit tie together, right?
[00:41:41] Oh, go ahead. Sorry. I have a follow-up question to Diane. Uh, probably you have already discussed how, uh, I mean, you probably are already gave some hints on how to do the mullets in images. So you said that basically it's going to be better to transport, uh, bullets to the images, but, uh, do you, uh, uh, probably do you do like a whole story, like, um, have a sequence of three, four images, which link together?
[00:42:13] Like you're going to do it in the book. It just depends on the product, honestly. Um, some products, you know, we write for B to B and B to C business to business and business to consumer. So, you know, it really just depends. I actually, I've created a few trainings on that that are free. You can always shoot me an email and I can send those over, but it would take a whole episode of this to explain.
[00:42:34] Um, I'm not trying to Dodge your question just to explain what to do with your images. And I don't want to take up everybody else's, um, panel time. Thank you. Thanks for that. Can you check that on your website then you can just shoot me an email. I think norm probably has my email. Yeah. Diane maybe is your, um, Instagram or information in your profile in your clubhouse profile?
[00:43:01] I just opened this thing yesterday. I'll put it in there. I'll put it in there right after this. I'm so sorry. I'm just, I hadn't jumped on board yet. I just put up an image and said yeah, I'll show up. Yeah, absolutely. I'll get you Diana. Now, one other thing that, um, I wanted to talk about since we're on Amazon and writing for four, um, Amazon listings, eight plus pages.
[00:43:27] So for those of you who aren't familiar with it, it's just, uh, an additional, um, page that when you scroll down, you get to see sort of rich content, um, and a little bit more information about a product listing. So I heard something incredible the other day from Stephen Pope. So, uh, he was saying that he just tried this out and it blew him away and he didn't try it out with one, but he tried it out with multiple products.
[00:43:55] So he added a plus with very little, like he wasn't targeting specific keywords in the listing. These keywords were very specific, um, in a plus and every single one. Was indexed, even though none of them were in the backend or above the fold, you know, where your product listing is, they were only in the A-plus I'm listening.
[00:44:23] I don't know if any of you have seen that, but Amazon saying that they don't index a plus listings. Yep. They do. They index. And so does Google because they are now following Google's protocol, which a lot of people aren't aware of, they index the keywords you put as descriptions underneath your images in your A-plus ABC section.
[00:44:42] And that's very important too. So, Hey, Paul, I know we talk about, um, naming images properly. Again, this is still copy, but uh, why don't we talk about, uh, how to name a file, how to upload it? Not only for Amazon, but for Google ranking. Yeah. So is this, I mean, I guess one question I have is, do we know for sure if, um, Amazon actually looks at the, the image titles and all that stuff?
[00:45:14] The like the, or from what, what I had seen is that they had actually, they didn't look at the titles, they looked at, uh, like all texts and description description. Right. But even with Google, so the images will show up on Google as well. Right. So what, so I know for sure this works on Google. I'm not sure if this works on Amazon, but basically let's say that you're, you know, you talked about your, your plastic shoe stretcher.
[00:45:41] Um, you want the name of your image to be like, you know, searchable, text, you know, you know, best plastics use stretcher and. You know, for large shoes or something like that. And if you wanted to go a step further, you could modify the metadata by using something like Photoshop, or I'm sure there's online tools that do this as well.
[00:46:04] But you could have, like, in, in a lot of photos, there's metadata, meaning it's not actually in the, in the file name, but it's saved in the file and it'll have like location data, um, like sometimes even subject of the photo, it can get pretty deep and you can modify all the metadata. And that actually helps really a ton with SEO.
[00:46:27] Very good. Okay. Uh, we're getting close to the top of the hour. If anybody does have any questions. Oh, I see. There's one there. I missed. I see two, we missed that. There we go. Gosh, I got to far on these questions, please. Uh, come up, answer your, asking your questions, Muhammad. Welcome to the panel. Thank you very much for giving me space.
[00:46:52] I have a very quick two questions for one. Is that as a consideration. What's your recommendation. I, uh, this is my question from the panel. That was the recommendation as we are just going on standard pattern, just whenever you go for the Amazon title, page title for the, the, we just select the two most relevant keywords in the title.
[00:47:19] And as suppose saying of the Dan that we go for the pain point, we go for the emotion we go for the benefits rather than the features. Sure. How, uh, what's the best practice to, uh, to what's the sequence? How would we the best sequence to give on the, eh, uh, about the pictures? Uh, like first will be the hero image and second world.
[00:47:44] Uh, the diamond options or the, the comparison or how, how, what the best practice is they have seen till now. And second thing about that, how you, uh, how you, uh, sequence the bullet points. What should be the top one? The second one, the third one and fifth one. What are the buyers prospective? And if you see the Biogen buyer click, the main listing is it goes down directly towards the reviews or he is just going to images and then to the bullet points and then going to description, would you please, uh, uh, share your knowledge about that?
[00:48:28] That's a whole couple of hours session, but Diane, why don't you, uh, uh, just summarize it. Okay, that is, I'm not good at summarizing things. I apologize. Um, so in terms of what I'm going to say is that I have that I I've been asked that question so many times I created a training and the training turned out to be 12 hours long.
[00:48:48] So the training is free. It's on YouTube. I'll put the link up. You know, after this, cause there's a lot of really great questions, but there's no one standard answer. And the people who there are writers out there who say, well, I follow the specific process of like this bullet points about this and this bullet points about this and this bullet points about this, this bullet points about this and this image is about this.
[00:49:05] It really depends on who you're speaking to in the person you're selling. Um, the first bullet point should always be about summarizing and positioning and why your product is superior. The last bullet points is people read the first and the last ones is the last one should be a guarantee that knocks them off the fence, right?
[00:49:19] Um, that you're going to, if you don't solve their problem, you're going to make sure that you solve the problem you created, which is that they bought a product that didn't work for them. So I hope that that explains it. I, like I said, norm, I can get you the link. I can put it somewhere. I'll figure out the profile thing too, but it's, it's a very long explaining.
[00:49:37] Okay. Yeah. And I, I agree. So Muhammad, uh, yeah, just, we will get that link from, uh, Diane and, uh, you can check out that free YouTube, uh, lesson. Okay. Okay. Thank you very much. Thank you very much at the last thing. Can I, can I ask w is the S the concept of hypnotic anchor, how it's differentiated from the, uh, the other things that, uh, in the, mostly we are seeing that go for the emotions hit for the, uh, benefit rather than the feature, how it's differentiated from other people, uh, concepts, can you please, a bit, a little bit.
[00:50:19] Well, you definitely want to tie emotion and, you know, your benefits and especially the transformation that the product provides into your hypnotic anchor, wherever possible, but to have not an anchor is more about positioning and anchoring, or I believe I can remember it was who said it, but keystoning, um, your product into, or sometimes your brand into the customer's brain.
[00:50:40] So when they go hunting for another product, because they haven't made the decision yet, because they're just not at the decision making phase, they can't find another product that has the exact same thing. And so it's about superior positioning. So you gain more sales. Um, it's not, it's not just the benefits and it's not just a feature thing.
[00:50:56] It's benefits and transformation as well. Thank you very much. I'm looking forward for the link of YouTube training also. Thank you very much so nice. If you everybody, Hey, Rosalyn. Welcome. Hi norm. Um, I just want to say before I asked my question that I just enjoy you're my lunch partner, these Monday, Wednesday, and Friday with your guests and Diane, I listened to the episode that you were on and I just could not take notes fast enough.
[00:51:33] And Rob, the same thing was true for you. And, um, I'm a big Joseph Campbell fan and I was a classics major as an undergraduate and I've read the hero's journey and all these things, and I'm, I'm just enjoying this so much. And when Jeffrey comes up with something where everybody, yes, we've been doing it for a long time, so we can do it quickly.
[00:51:57] I think. I don't think it's just because somebody has been doing something for a long time. It's just that you're you see it. You are, you have already a partial picture and that's, that's a perfect segue for myself for my question, because I'm, I'm a lawyer I have over 30 years of practicing law and telling stories and writing to be convincing, starting from an, a set of rules and an analytical model.
[00:52:36] And so my question for who ever will answer it. Yes. I understand that you have competitors listings that you want to stand out, so you would need to study them. You also have a market, so you're marketing and you want to write copy that will appeal to your market. Where do you start? How, how do you, how do you balance the two is, is one, do you start with one because it makes the process, um, flow better for you.
[00:53:12] And then the other question that I have, because I've been reading a lot of, a lot of, um, really interesting stuff on marketing and, and, and all of that is how much different is it selling a product on Amazon than if you were. In terms of copy, I'm talking about now, then if you were to do a radio ad or a TV ad, and, uh, w I'm reminded when I was in my twenties, I was watching a TV show with my husband and it was for a new laundry, um, soap.
[00:53:53] And I remember thinking, wow, that's designed to get the husband to ask the why funny have you tried that? And before I could say it to him, he turned to me and he said, Ross, if you ever tried that, I mean, it was that effective. It blew me away. So I'm guessing that all of you have the same standard. You just want it to be automatic.
[00:54:16] It's like anybody would, would do this. So how do you get there? I'm done.
[00:54:25] I'll, uh, I'll leave that up to Jeff Paul, Robert, Diane. I have a few things on, on the second part, as far as, and this is coming from a video perspective, not a, uh, I'm not real familiar as far as, you know, just the Amazon product copy, but as far as the video stuff, um, you know, and especially like compared to infomercials back in the day.
[00:54:50] Um, so, so Amazon is very, very, uh, from a video perspective, anti direct response. So, you know, no claims, no hype, you know, no, you know, really kind of just hyper, you know, emotional type things. Um, you know, they're, they're, they're very much against that. So, you know, w with Amazon, um, you know, from, you know, from a visual perspective and a lot, and honestly our best converting videos are ones.
[00:55:21] Actually don't even have, um, a lot of talking in it, but actually just really kind of put the product in the user's minds eye and they imagine using the product. And then, you know, we kind of support it with benefit point texts and things like that. So, and, and those work out really well, because then again, now you're creating a story that, you know, the users, you know, creating in their own head about, you know, why this product, you know, why they need this product or what it's going to solve.
[00:55:48] Um, you know, the others, you know, the other stuff, you know, kind of the back of the day infomercial stuff. I mean, those, you know, I would say would be the almost complete inverse of an Amazon, uh, video where, you know, it's just, uh, you know, it's, it's just a guy with a spear. This is stabbing you with all these emotional cues, you know, just like every three seconds.
[00:56:08] It's like, ah, you know, you know, why you got to buy this and why it's the greatest thing on earth and you know, all, you know, all that kind of stuff. So, um, you know, you know, the infomercial ones are really trying to really kind of. Build this huge emotional reaction and a sense of need, you know, super fast because you know, they're on a limited time, but, you know, they just wrap it up and they just, you know, it's almost like you just get blasted with a shotgun of emotion where, you know, Amazon would be the inverse where you it's much more subtle, um, uh, a subtle type of video to make.
[00:56:48] That's it for me. All right. Thanks Rob. Did that help Roslyn? Well, yeah, it did. I mean, I, I understand that I. I want my listing to tell a story. So maybe Diane, you could, you could tell me how you start. Do you start with the competitors and how to distinguish yourself from their listings? Do you go to the, to the marketing and where, where do you start?
[00:57:22] I start with their hearts actually. So, and that probably sounds really woo, but I know appealing to me because I can relate to doing it. Yeah. Yeah. So I, so what I do is I like to go to the different forums and the different Facebook groups where I'm see, um, that they're actually openly talking about their problems.
[00:57:43] Right. And some people might call it complaining about other people, maybe. Ching out, right? You want to look at where people are reaching out and actually discussing the problems and start with a listing of a list of words and phrases. I don't know if you guys can hear me. I'm like I live in the middle of the woods in Washington, so you can still hear me at this.
[00:58:00] I have a funny connection. Um, so I like to go and look and kind of dig into their minds and hearts first and see what their, what they, how they're framing their problem. Before I even look at the competitors, because if I'm just trying to position against the competitors and the competitors, aren't speaking to their hearts and minds, I'm just going to get it wrong.
[00:58:16] Right? So start with forums and Facebook groups where it's solving the problem, everything from, you know, I have, you know, like my ankle is injured and I need an ankle brace because I'm a runner and this keeps happening too. I feel embarrassed when people come over to my house, what kind of wine rack should I get?
[00:58:32] Right. Um, start looking at that and then go to Facebook. Um, audience insights. And you can see that they're kind of expand upon those groups and see what else they're interested in and start kind of looking at those groups and get to know the person, right. Get to know the person you're selling to get to know the person you're solving the problem for.
[00:58:48] And until, you know, how you need to speak to their heart, don't go and look at your competitors because your competitors, um, you know, that's kind of, that's kind of a checklist when you go to your competitors, you say, okay, is there anything they're mentioning that we have, that we should look at mentioning, right.
[00:59:02] Just in case the client didn't mention it, um, in the copywriting brief, and then also looking at the reviews of their products, the competitors, product reviews, um, and looking for. You know, use it looking for hot words that you see their customers repeating over and over and over again. Right. And Amazon's now made that pretty easy because if you look at the top of their reviews, it'll say something like, um, you know, like for, let's say it's hair dye, right?
[00:59:26] It'll say something like staying hands, right. And then you can click on that and you'll go through all the reviews for stain hands and say, okay, this is a problem. I have to see if we can overcome and our listing, or, you know, if it's like a pet CBD, I mean, you know, not CBD, but it really is CBD. Amazon.
[00:59:40] Doesn't let you sell it product. Um, you know, if it talks about calming, if it talks about chewing, if it talks about biting, if it talks about nine, you can get a lot of insights from their customers, but always start from the point of the problem and solving their problem instead of just trying to compete and then you can compete even better.
[00:59:55] So you start with the customer first and you try to tell a story that your customer will want to hear. If it's truthful about the product yet,
[01:00:10] we don't want to tell a story that the customer wants to hear and then have a bunch of battery. I wasn't thinking of committing fraud here. I'm not a legal expert. This is not legal advice. I can, I'm not your attorney. You were in a courtesy to this. Yeah. I mean, you can definitely tell their story. And a lot of it's about where they're at right now and their mental state and where they want to move to.
[01:00:31] So you want to focus on, you know, what's you kind of story on paper of that transformation, right? And then the trick is getting it down into bullet point format and making it, putting it down in a way that's organized for the human mind. So they can actually absorb it. Instead of, you know, you can write a 500 character bullet point.
[01:00:49] I wouldn't advise it, but you can write one that someone can absorb. Um, but you see a lot of these bullet points out there that are keyword stuffed and people don't even want to read them. Right. I mean, you're not gonna be able to tell somebody, right? So the more you can reach into your heart and think, or reach into their heart and have them thinking, this person really understands me.
[01:01:06] They understand what I'm going through. They've done the research. They've looked into solving the problem and they know how to solve it, and I can trust them and they've overcome my incapabilities right. Um, the better you're going to do in terms of conversions. Okay. Last question. That's that's just sounds brilliant.
[01:01:23] How much, how much Roslyn, um, Paul, I've got to head over. I tried, uh, pinging you, uh, you didn't see the message. Are you able to continue the room? I've got a I'm on a plane. Uh, yeah, I can, I, I've got to hop off at about 1230 though, cause I have a call, so perfect. We've got one question left. I've turned off that the hands, uh, or the questions, but, uh, I see Chad's there Roslyn, we're going to continue to answer your question and just, uh, because I'm not going to be able to, uh, talk a bit later.
[01:01:59] You guys are probably happy about that, but next week I have got some really incredible people that are going to be coming on. Um, the first person, Andrea lake, I don't know if you know her check her out. Uh, she, her partners have done over a billion dollars worth of sales in the apparel industry. And I've also got a couple of other treats that are going to be coming on and we're going to just be talking about entrepreneurship and uh, so anyways, selling on e-com and oh, by the way, All of these sales are going through, um, either a Shopify store Amazon.
[01:02:39] So it will be a really interesting, um, uh, really interesting room. Anyways. I gotta run. Thank you so much, Paul. Thank you for carrying on the room. Absolutely. So, um, Roslyn, I feel like we hadn't fully answered your question, but, um, so I want to kick it back over to you just to hear if there was any, thank you.
[01:03:00] Yes, just real quick. I just want to know, um, from, um, anyone, Diane, um, Rob, do you ever in your copy include, um, quotes from previous customers if they've left reviews? Um, we also for our videos and it's funny, like almost nobody does it, but, um, And I'm not sure like how much you can do that in Amazon, because, because of their tos stuff, but, but other videos, like say if you don't, if you're on a Shopify site or are actually even running ad, but you know, tacking on real testimonials from real clients, um, are huge, like, like huge, as far as your conversion.
[01:03:46] And sometimes you can just string out that ad or that video, you know, with just, you know, because if somebody get a watch, you know, watch your stuff, there's interested in your, you know, your product long enough to go all the way through the end of the video. And they still want to stay more than then.
[01:04:00] All you're doing is you're just solidifying that. And then we also, actually, we, we create a kind of video that it's pretty much all testimonials. So it's, you know, we're giving the products to real people, um, and they're trying it out and they're asking real questions. And then, and then those things convert like, like gangbusters.
[01:04:17] So from a video standpoint, I would say, yeah, um, you know, and Diane can, can speak more to as far as, you know, writing copy, um, you know, on some of the other platforms and other.
[01:04:29] I mean, I know from an advertising perspective on Facebook, the, some of our best converting ads have direct, um, you know, reviews on the creative and like whether it's video or still, if it's just an image. Um, so yeah, that's, I mean, if you can do it, I don't, there's no, there's no rules against it on Amazon when it comes to your, your, your second, any, anything other than the main image, the main image, there's pretty strict guidelines as to what you can have in it and how it needs to look.
[01:04:59] But after that, I mean, going back to what Diane was saying with, I'm gonna love that bullet, you know, you, you have here's the primary feature, have a line going people's eyes follow the line. I mean, You know, I would test putting in a testimonial because that's really what people are looking for is they're looking to have a problem solved and they want to make sure that it will actually solve their problem.
[01:05:20] And so when they have somebody who looks and sounds similar to them, that has said raising their hand, this has solved my problem. And that problem happens to be the customer's problem. That's reading it. Then the chances are that your, your conversion rates are going to go with are going to go up. Yeah, I think, um, also, uh, it depends on a testimonial because we've had one or two clients where, where, uh, their videos got bounced, just because, you know, it was real people and it's real testimonial, but, you know, it's like, ah, this is the best thing since shaved ice or that kind of thing.
[01:05:55] Amazon, you know, they're, they're so hyper vigilant as far as not having that kind of direct response, feeler that, that real hype-y thing. Um, but I'd say for the most part, yeah. You know, it's, it, it is, it's really good. And yeah. You know, and testimonials kind of, you know, going back to kind of the caveman thing is, you know, where we all just sat around and you know, that that's how we got her information on what was good and say, you know, was like, Hey, this, this club, you know, kill saber tooth tiger is way better than that club, you know, kind of thing.
[01:06:27] And so, you know, just getting a referral from somebody who's actually using this stuff is, is huge on the, on that point, Rob, that you made about like the, the hypey stuff, there are certain things that you're not allowed to say about your products ever, such as like the best, the, um, there's a, there's a whole list.
[01:06:43] So you just need to make sure that if you're putting a testimonial into your copy, um, you know, people, people can leave reviews and they can say whatever they want in the room. And so they can say in the review, this is the best, you know, shoe stretcher ever. Uh, but then once you say that about your own product, and then you put it in your image, that's when you're going to get in trouble.
[01:07:05] So, um, make sure that you look up the tos on, um, what you like, what you can what's allowed and what's not allowed, but that's, I think that's a great question. I don't know, Diane, if you had anything else to add when it comes to copy and photos and whatnot, but, um, if that was. I do, but I was having a hard time.
[01:07:26] Unclicking my microphone for some reason on my phone. So, sorry. Um, first of all, well, I love your idea of using the lines in the image and then backing with testimonials, as long as they're short, specific kind of spicy, not super spicy on Amazon, but kind of spicy. And then of course believable. Right? Um, you need to make sure that it's, you know, obviously not someone saying it's about.
[01:07:46] That one of the places that we know we cannot use testimonials is in the A-plus and ABC content. Most of the time we've had listings originally you could, but we've had some listings flagged because of that. Um, so my general, when we've tested, right, we split tested images with copy on them, the place to position the testimonials, again, short, spicy, a little bit, or a little bit spicy, specific, and definitely believable is in your second image and your seventh image where you use it.
[01:08:13] A lot of times we'll add a guarantee seal on that, right? So you can split test that and just make sure that it's, you know, th that the language that you choose, the testimonial you choose to speaking a language of your target customer and not just something that's hype-y okay. Oh, thank you all so very much.
[01:08:31] This is just, this is wonderful. Thank you.
[01:08:38] Absolutely. Thank you so much for coming up and asking that awesome question. And so, Chad, good to see you, man. Um,
[01:08:48] That was, oh man. Are you, are you, are you a Vegas fan or you're an absent? Well, I'm a hockey fan. I love ice hockey. I played it all. I played all my life and I just think it's, oh man, it's the greatest, whatever I've spent way too many hours trying to convince basketball fans that that's stupid and hockey is amazing, but it hasn't worked out so far.
[01:09:09] Yeah. Yeah. That's okay. I don't know. I mean, there might not be help for him, but yeah, it was devastating. I want to honor. I want to honor the stage and everything, but let's let's uh, what question do you have for copywriting, man? I just wanted to add something. I know, um, like Roslyn when she said starting, I might be taking this too literally, but, um, I was, uh, I wrote television sitcoms in a previous life and, uh, while I consider myself sort of a sane person.
[01:09:39] Punched, uh, more than one monitor because the cursor was blinking at me and it was just, I was staring at it and it wouldn't stop blinking and there was nothing else on the page. And just starting to write anything is it's all about starting and rewriting and no one ever writes the perfect sentence the very first time, like every, I would say 90% of the, of the things I've written start with.
[01:10:07] I hate this exercise. This is so stupid. It never works. And then I wonder what my main character would say about having to do this exercise. And then I look up and there's three hours of past, you know, of, of just writing. And so literally just starting to write is how you write. And then you rewrite it and you rewrite it again and you re-read it again.
[01:10:33] And you rewrite it again. Um, rewriting is much easier than writing is what I say. Um, so I, as just some advice, if you guys, you know, if anyone is thinking, oh my God, I can't write. I'm a, I'm a terrible writer. I guarantee you I'm a terrible writer, but I can rewrite. And that to me is, is for people who are just totally freaked out and overwhelmed by having to write anything, just start like stream of conscious, write down exactly what you're thinking.
[01:11:07] And eventually it will just flow into what your task is. And you'll be amazed at how much you can actually. I love that. I mean, that, that advice is good for business in general, because if you wait for everything to be perfect before you get started, you're never going to get started. Yeah. I mean, I've had entire I've ha I've written entire scenes in my head that stink.
[01:11:30] Like, I'm like, this is terrible. It's awful Bubba. And if I had just written it down, I could have made it better. But in your head, you're just like, no, I don't want to put that down. That's stupid. Like, it's your own computer or your own notepad? Like, no, no. One's looking over your shoulder saying yes, that is, that's a terrible idea.
[01:11:46] You should not ever put that down so that anyone can ever see it. You know, you're by yourself. You're just writing nothing. There's no bad. And so I would, again, just urge everyone. You can do it. Um, you know, no offense to people who want to buy professional copywriters, they want to sell copywriting. Um, they obviously have way more experience and, and it'll take them far less time, but, um, just starting, just start that's it.
[01:12:15] I, I've got a few hats too, if, if anybody's interested in it. Okay. Yeah. So, so I, I totally agree with like the, just starting part. Like, I, I would say probably the biggest, like my biggest learning lesson, and I would say most folks kind of, kind of think that too is like, there has to be like some kind of zone that you're in when you write, you know, and you're always waiting for the zone to happen, and then you just gotta sit there and, and, and it, it usually just doesn't happen.
[01:12:44] It never occurs. And so, so w one thing I do, um, that it'll sound kind of weird, but, um, Actually boredom is your, is your best friend. And especially now, because if you think about it, like, like almost everybody, they live their lives, you know, and they're just like tethered to this social media crack, you know?
[01:13:05] And they're just like, all they're doing all day long is this input, input, input. Like everything is just coming into your brain and you're just getting fed all of this media. And, and so our brains are, you know, and more so recently, you know, are, are just wired just to, to, to take in all this little micro content and stuff.
[01:13:26] And so you're not, you know, you're not necessarily really thinking about stuff that much. And so like sometimes all I'll actually go and I'll sit in a, in a room like that has absolutely nothing in it. And, and for like 30 minutes or an hour, and I'll just stare at a wall and it's funny, cause like you'll, you'll get really super antsy and then, um, You know, like your brain just starts freaking out because it's like, where's the input, where's the input.
[01:13:54] And then, um, there's like a little switch that'll happen. And all of a sudden your brain is like, well, there's no input coming in. So maybe I'll do some output. And then all of a sudden, like you just get all these ideas and like literally a flood of ideas. And so, so kind of, you know, it, you know, how to, you know, if you feel like you have to be in a zone or, you know, you're, you're just kind of creatively stuck, you know, that, that's probably one of my, one of my best tricks.
[01:14:21] And then, um, just like Chad was talking about, you know, usually what I'll do is I start out is, is all just all bullet point out first, just the structure of whatever script I'm writing and just like the main points. And they're just bullet points that are related to, to that. And then I'll just start around those bullet points.
[01:14:39] I'll just kind of expound on it until. Yeah, there's a script and I'll just read the script and I'm like, oh my God, this, this sucks. And like, I don't really care about grammar or quality or anything. I'm just putting ideas down, you know, th that are really related to those bullet points. And then, you know, and then I'm just like, oh, I hate it.
[01:14:55] You know? And then, and then my brain just kicks it on. Like, how can I, you know, how can I make this better? And then I just, I just keep refining down. And pretty soon, like, you know, Chad mentioned like three hours is like five minutes. And so those were kind of a few things for me, as far as this gaining momentum and actually getting the copy down.
[01:15:13] And you know, that whole thing about being in the zone is, you know, is a bit of a fallacy. Um, I mean, there, there are flow states and things like that, and that's a whole different rabbit hole to go down and, and, you know, something that I studied quite a bit, but you know, really just the act of just writing is, is usually.
[01:15:36] Enough to really get, you know, get things going. And so, so I, I totally agree with Chad so well, thanks. Um, um, we're a little bit over the hour now, so we're actually going to end the recorded part of the show, but if you guys want to keep, um, chatting afterwards, that's fine, but I want to just remind everyone, this is e-com weekly.
[01:15:55] Um, and norm hosts his show every Thursday afternoon at 1:00 PM Eastern time to 2:00 PM Eastern time. And, um, if you go to startup.club, you can sign up for our mailing list and stay informed about this. And other recurring shows on startup.club, uh, on startup club here in clubhouse. And of course this show is being recorded.
[01:16:16] So the recordings will be available afterwards. And I want to thank everyone for coming and joining today. And, uh, that's going to end the recorded portion of the show, but thanks for everyone for all the great comments and feedback. Thank you very much. Yeah. Thanks Jeff.
Copywriting | Ecom Weekly
June 18, 2021
Cashflow | Ecom Weekly
[00:00:00]
Lou. Hello? Hello?
[00:00:27] Hello. Hello. Hello. Welcome to e-comm weekly. We're just, uh, letting people join the room and our hosts norm Farrar will be here in a moment. We'll get started at one o'clock, which is coming up in a few seconds. So thank you for joining us for e-comm weekly here on startup club and, uh, Wait for our host today, norm Farrar will be joining us momentarily.
[00:01:00] And if you're new to this room, this is part of startup club and you can go to startup.club and sign up for our mailing list to get informed of new weekly shows, just like econ weekly, uh, that are happening here in startup club. And here is norm right now. Hello. Hey, how's it going? Good. Good. So we're all set.
[00:01:24] It's a one o'clock so I will. Turn it over to you. I was just reminding everyone that, uh, you know, econ weekly is part of start-up club and it's a weekly show. And if you go to startup.club, you can learn about other featured and weekly shows and special events. And in fact, tomorrow, um, I mean today and tomorrow, today we have a special event, uh, at four o'clock this afternoon on startup club, a small business meditation break because you deserve it with Lisa Abramson.
[00:01:53] Who's a best-selling author and mindfulness teacher. And that's today at, uh, 4:00 PM Eastern time here in startup club. And that's in partnership with QuickBooks. So that's coming up today. So, uh, hope you can join us for that. And with that norm, I'll be quiet and turn over the mic to you. And I do want to remind everyone that we are recording econ weekly.
[00:02:15] So if you come up on stage and participate, you are giving us your permission to record you. Uh, and with that, here's our host of the show, uh, norm for our. All right. So I'm glad to see everybody in the room today. Uh, today we've got a, a great topic. We're going to be talking about cashflow, the importance of it, traditional ways to find it traditional ways to find it.
[00:02:43] But anyways, I've, I've invited a couple of, um, uh, experts in the field to just sit down for the next hour and talk about, you know, making sure that you have proper capitalization and proper cashflow. So just, um, just a quick note, um, I've got little Roberts and Tim Jordan joining us and, uh, welcome Lil
[00:03:08] Hey norm. Pleasure to be here with you guys today. Hi, Jeff. I looking forward to a great conversation. So a little, why don't you give us a, a brief description of who you are, what you do.
[00:03:26] Um, Robert CEO of
[00:03:35] sorry, little, it looks like, uh you're. Yeah, it looks like your cell phone. We're an online book being an accounting company. We're a FinTech company. And by leveraging technology, we do liver, uh, small business.
[00:03:58] Okay. So little, if you can hear me, your mic was cutting in and out. Uh, I just muted you and, uh, over to Tim. Hey Tim.
[00:04:10] Hey, what's up. Glad to see you can make it. Why didn't you tell us about a 32nd bio? Well, I feel bad that we kind of cut Lil off since her cell phone was going in and out. I, I hate to turn her over so sorry. Maybe she'll get better service in a second and come back on because we didn't hear any of that.
[00:04:28] But, uh, yeah, my name's Tim Jordan. I've been in the e-com space since about 2015. I've had a few business successes and, uh, probably larger list of business failures. Um, just get to operate in this space, meet a lot of cool people, do a lot of cool things and see a lot of cool stuff. Awesome. So just wanted to remind everybody that, uh, during the one hour session, every Thursday, we're talking a little bit different format.
[00:04:55] We're inviting people to come up, ask questions, you know, by all means any question that you have, uh, let us know. So it is a sort of a closed panel. Uh, we, we bring in different experts each week. Um, it's a little bit different than your normal clubhouse, uh, room. So what I like to start off with today is, you know, let's talk about first of all, the importance of cashflow and you know, how that make or break your business a little, you want to try to see if, um, you have a better signal now.
[00:05:27] Sure. How's this norm, is this better? There we go. Awesome. Awesome. My apologies. So, yeah, so, uh, real quick, I'll, I'll give you the high level, uh, uh, serial entrepreneur, FinTech company, online bookkeeping and accounting, not a CPA or an accountant, just hated the fact that we couldn't get our numbers out of the industry and that there had to be a better way to do it, and we needed to make the transition to digital.
[00:05:53] So love it, super excited to talk about cashflow, because that is the oxygen for all businesses, right? Exactly. So let's start off with you. What does proper cash flow mean to you?
[00:06:12] Norm to me, I think that you have to look at your business and I'll tell you how I've always run. All my businesses is that you have to say, okay, how much money do I need to run my business? If there's no business. And that needs to be almost like the deck that needs to be the hard deck, you know, back in the day with top gun, they say, oh, we don't fly below 10,000 feet.
[00:06:32] So you have to say, okay, if you need $25,000 in the bank, you have to realize that when you hit 25,000, it's like you have no money, so don't fall below it. So figure out what that number is that you can't fall below that if the sales dry up, it's sitting in the bank or you have a resource for it, whether it's, you know, sellers funding, where you can get quick money or it's a credit card or whatever it may be, that's what you need.
[00:06:59] And then the other side of that is, is that you constantly need to watch your revenue coming in. Is your revenue coming in steady, understand your revenue, if you give people terms, which, you know, we're all e-com right. So we don't, um, you, you need to make sure that that money flowing in every day to meet your, to meet your monthly goal.
[00:07:20] You know, one of the things that, like, I I've dealt with tons of small businesses I've owned, um, you know, a bunch of small businesses. And when I talk to entrepreneurs, startups, they always talk about, oh, I talked to my account and they gave me my P and L sheet. Okay, great. What about your cashflow report?
[00:07:41] Well, what's that, and you know, this is one of the most important financial things that you can do is, is take a look at your, your cashflow what's coming in, what's coming out. And, uh, I don't know if Lil or Tim, if you want to expand on that, but just the importance of first of all, understanding that cashflow report.
[00:08:06] Jim you want to take it or? Yeah, this is also cash flow is something that took me a long time. You know Tim. Oh, sorry. Can you hear me better now? Yup. Okay. I was just saying that cashflow is something that took me a long time to learn through a lot of mistakes because I didn't come from like traditional business education.
[00:08:29] Right. I was kind of a typical e-commerce guy. I was a solo preneur, a side hustle, or trying to figure this out. And I didn't understand that cashflow and profit were very separate things. And what first started happening with my e-commerce businesses is I was very profitable per sale. Every time I sold a product, I was profiting, you know, I had a hundred percent ROI or 30% margins.
[00:08:52] It was great, but as I continued to grow and as I continue to need more resources or more staff or more inventory, I realized I had zero cashflow, right on the opposite side, you can get that stuff backwards. Um, I had a construction business for, I got an e-commerce where I had really strong cashflow. I was bringing in a lot of money, but I wasn't profitable.
[00:09:14] Right. So the business ended up dying after a few years because it couldn't survive because it wasn't making money. It was moving a lot. So I think that people get confused about the two. Now, I think in e-commerce going back to cashflow, there's a misconception that, um, it's easy to have enough cashflow or have enough money coming in to do what you need to do as long as you're profitable.
[00:09:37] And that's not true because e-commerce grows so freaking fast. Right. You have to buy sometimes. Inventory four months before you plan on selling it, especially if you're, um, you know, sourcing from places like China and you have to get it shipped in. And then with the Amazon FBA restrictions or whatever marketplace or platform you're using, right?
[00:09:56] So you get money tied up a ridiculous long time. So even if you can't sell that product for profit, you've got to have that money in advance for months prior to you even making that sale. And then sometimes it takes two months for you to get that money back. Right? So I think that there's a big misconception about profitability versus cashflow and even the most profitable companies in the world still struggle with cashflow.
[00:10:19] You know, I've spoken with representatives at Lego who are looking for working capital for inventory. I thought all the crap, you know, a big, big, fancy, you know, dominant company like Lego, even they have have cashflow problems, um, or maybe not cashflow problems, but a need for additional help with their cashflow, even though they're massively branded profitable.
[00:10:39] No, those are two great points. Um, I recently, over the last year, there was a company that I was talking to. I was working with and they had over $10 million in sales. They were Amazon seller. And when we look at, when we looked at their financial, uh, report, it turned out when you dug into it, they were a hundred, they were losing a hundred thousand dollars a year and they were making 10 million and they were bragging.
[00:11:09] Like it was, it was, uh, uh, Tim, I know that you would know the company. Um, I won't mention the company, but they're talking about, oh yeah, we did 10. We had this crazy growth. Yeah. Luckily you had an extra, a hundred thousand dollars kicking around or you wouldn't be in business. So the other one that I had, she'll get this, especially if you're a new e-com seller, right.
[00:11:32] You could have a home run and this has happened. You can have a home run. Everybody's looking for that home run on Amazon or Shopify or whatever. Uh, even in, in, you know, traditional businesses, bricks and mortar, I've seen where person's gone, they've invested money. They thought they had enough in the bank.
[00:11:54] Then the second order comes in, gets eaten up. They have to put in a third order, which is double and maybe by the third or the fourth order, they have to sell off, you know, or just, you know, take pennies on the dollar because there's nothing there. They can't afford it. And I actually bought a company because of that reason solid company.
[00:12:14] I ended up just buying their inventory and making sure that it carried on. But, uh, you really do have to know and look into, uh, especially the model that you're, you, you have so little, can you talk a bit about where some hidden costs and cashflow that could really trip you up?
[00:12:36] Yeah, totally norm, you know, and great point. And it's, uh, you know, when you said 10 million in sales yet loosen a hundred thousand and people, lots of times, they don't see that that's the whole purpose of having monthly profit and loss and balance sheets. Because when you have so many balls moving down the court, like, you know, product on the ocean, coming from China, uh, sales happening reserves happening with, with deposits.
[00:13:00] You don't, you, there's no way for you to know, am I profitable or not? Because you have to count your inventory. So for me, what we say to small, to, uh, To e-comm business owners, as we say, you know, have the right tech stack. So you don't need to have an inventory tracker when you're real small, but when you reach a certain point, you know, you're doing a million, 2 million in sales, you have to understand your inventory needs and also manage your inventory in the sense that how many skews do you have because that's where you get spread thin.
[00:13:31] Right? Um, so many, so often people don't pay attention to the Pareto principle where that, yeah, you may be selling a lot, but probably if you really look at it, the bottom 50%, you're not selling and then liquidate that and get rid of that. So when it comes to the cashflow into understanding where it's all at, you have to understand your numbers.
[00:13:52] You have to treat the business as its own living, breathing entity with the needs. You have to look also forward. Besides backwards, you have to say, okay, how am I reporting? How am I looking on my reporting of my numbers? Am I making money? And what does the future look like? For me? Don't be surprised if you need big money, come Christmas, save up for it all year long and be careful that you have it in the bank and ready, you know, three months ahead of time to put the product on the water.
[00:14:21] Great point. I just want to, um, I know we have, uh, a person, um, a question. I have no idea how to pronounce your name. I give it my best shot, but I would mess it up. And I'm going to say norm, give it a shot. I want to hear it. Okay. So stop laughing if Isaiah wrong. Tripi yeah. Curry. Shana. . Is that close? Yeah.
[00:14:48] That's okay. Yeah, that's a street norm. You did better than I would have. Very good. Welcome to the stage. W uh, what question do you have. Um, I have a question it's like, uh, how do you tackle when you fall, when there is an issue in the cash flows? Uh, that too, during the pandemic. And then the second question, is that, uh, how do you phase, or how do you overcome the cashflow issues?
[00:15:22] Uh, I know when you're actually doing very good at the market. Well, that's, um, that's a very good question. I was actually going to be the next round of, of questions. And so, um, Lil or Tim or, or Jeff, if, if you want to pipe in, uh, let's talk about when cashflow, when you, all of a sudden you've exhausted your cashflow, you have this aha moment that you're in trouble.
[00:15:53] Where can you go either for traditional or non-traditional, um, cash flow norm, could we back up and just briefly talk about the, the first question she had, which was specific to the so, uh, we couldn't hear you really well. Your wife's is literally too low. Yeah. Tim, your voice is still a pretty low volume.
[00:16:23] In other words, move your mic up. All right. Is that better now? Oh my gosh. Sorry. I had a headphone or a headset on, I thought it was working. So yeah, what I was saying is I'd like to, before we move on to that norm address, the first question, which was specific to cashflow in the pandemic and in e-commerce I saw that there were kind of two problems.
[00:16:45] One is that. Or two, two notable things. One is that there really wasn't a cashflow problem initially in the pandemic, right? Because anybody that had any inventory was selling so stinking fast, their money was moving quickly. Everybody was, was, you know, moving bright a little later on to the pandemic as e-commerce was becoming more and more in demand, more people were buying online.
[00:17:07] We realized that the problem was that we couldn't keep up with demand and there was a cashflow problem there. I don't necessarily, um, think that that's a problem unless we allow it to become a problem by trying to move too fast. And here's what I mean, every business, in my opinion, can only scale a certain rate based on the type of business it is.
[00:17:28] Right. And sometimes. We have to slow down to speed up during the pandemic myself. And I saw so many other people that were just trying to get every piece of sale that they can with this increased demand. And they were over exerting themselves. They're being buying so much inventory and spending so much money in inventory that they couldn't even pay their staff.
[00:17:48] They couldn't pay their, um, their duties and taxes for import that couldn't pay their three P hours. So what I think happened is everybody was just so focused. And so like tunnel vision to this idea of, we have to capitalize. We have to capitalize. We have to capitalize that we, I say we, because I did it too, for a period of time, overextended ourselves and create a cashflow problems.
[00:18:11] Cashflow problems I think are exacerbated when we get ahead of ourselves. So for me, what I saw in the pandemic was not that we had a cashflow problem per se, more than any other time, because there was so many sales going on. The real problem was we were trying to overextend ourselves too fast. The folks that did well in the pandemic were the ones that to Lil's point dropped the crap products, the stuff that wasn't selling well, you know, the variations that were just tying up money and inventory and labor and effort focused on the things that were selling well and kept the throttle, you know, governed on what they were doing.
[00:18:46] They didn't try to get all of it. They tried to move at a reasonable pace and that allowed them the opportunity to, to kind of keep all of their chickens in the coop, so to speak and not just go crazy and overextend. Does that make sense a little bit, at least in my opinion, on where I saw cashflow problems in the pandemic.
[00:19:04] Okay.
[00:19:10] It's Tim. And thanks for your input. Little, do you have anything to add to that? No. You know, spot on. It's about managing it. It's like everything else. You have to manage it. And if you manage it properly, you won't be surprised. Okay. So I've got a question for Tim. You go out and you're fairly conservative.
[00:19:32] However, now, uh, you see that your, your during the pandemic and all of a sudden you're you, you are experiencing hyper-growth okay. You w you want to go to the next step, you know, you can get to the next step. So how do you cross the chasm? Well, the first thing that you do is you sleep on any decision that you want to make, right?
[00:19:56] And I know this sounds way too conservative for some of you listeners, but, but if I'm thinking about how do I scale up, how do I go get funding? Sleep on every decision to make don't make any emotional decisions, because we all want our business to succeed. Right. And we see our inventory flying off the shelf.
[00:20:12] We start thinking, oh my gosh, oh my gosh, there's so many great opportunities to go out here and get funding. And the truth is, is finding funding to grow your business is tough, especially when you're looking for good funding. And if we make emotional decisions and we reach out to everybody that we can, we try to just, you know, find the easiest, simple solution.
[00:20:30] A lot of times they suck. We saw this a lot when cabbage existed, right. Cabbage K ABB age, and they were giving money. Honestly, the people that shouldn't have had it, you know, they weren't profitable. They didn't have, you know, very, um, stable cashflow. And, and we saw when the pandemic hit and some of the industries like restaurants and things really started struggling.
[00:20:54] Cabbage went under and I think American American express bought them for like 8 cents on the dollar. Right. I have done that. I've gone on got cabbage loans and they're easy to get, but. They're a little bit misrepresented, right? Because a lot of, a lot of folks like myself, you know, I used to be, I didn't know anything about finance and I would look at a cabbage offer and say, oh, it's 4%.
[00:21:17] Well, what they didn't tell me is it was a 4% flat fee over four months, which amortizes out to like some ridiculous 30% or something. So that'd be my first piece of advice. When you go out, looking for funding one day is not going to matter. Two days are not gonna matter. Spend several days researching, filling different offers.
[00:21:35] Find someone that might know more about finances and you, so look at any offer or term sheets and make sure that you're not jumping out of yourselves to get a quick merchant cash advance drop in your account to buy inventory. When you've got to pay that back in 60 days, but it's going to take you 90 days or 120 days to get an inventory and get the cashflow back.
[00:21:54] Right? So that's my first piece of advice is take your time, slow down, take a big deep breath, make logical decisions and look for actually really good solutions. Um, uh, I'll pause there and see if Lidl has anything to add before I keep going. No awesome Tim spot on, you know, and also the, well, I would add one thing, you know, you don't want to be in a situation where you're paying 2% a month for always cause that's 24% interest and you're giving away so much of your margin, but if it is a 90 day situation and it's going to give you the oxygen, you need to get to the next level, just be sure that, you know, that, that.
[00:22:34] That you get off the IV drip, right? So it's like, oh, okay. This is going to get me over my next hump. I'm going to take that profitability from my product that I sold with that. And I'm going to get myself in a better position to where I don't need that money. Long-term at that 24% a year. You agree Tim?
[00:22:51] Yeah, absolutely. I do think that people also don't think about taking money for as long as they need to. You know, people look at these 60 and 90 day terms and they assume best case scenario. Oh, that's fine. I can pay this back in, in 90 days when usually you can't. Right. So don't get on these long terms two months or 2% a month like Lou was talking about, but make sure that you give yourself some wiggle room on whatever deal that you try to take, because things always take longer than you think they will.
[00:23:16] And not only do you want your business to succeed, you don't want to default on a loan or, um, you know, not be able to pay your employees, but you also wanna be able to sleep at night. Like one of the hardest things about being an entrepreneur. And I know a little, a normal agree with me is just keeping our heads straight, like being able to sleep at night, not going insane.
[00:23:33] And. If I'm taking, um, a form of loan versus a six month loan or a cash advance or revenue advance or whatever it is. If I have the opposite take the six month loan, that interest may cost me, you know, not much a few hundred dollars, a thousand dollars extra, but it gives me two months extra wiggle room, which could help me stay sane if things get tight, because things were slower to ship, things were slower to, to sell.
[00:23:57] Right. So there's definitely a balance. I do think that, um, you know, it's a little as point. People confuse numbers. They see, oh, 2% a month. Yeah. You don't realize that's actually 24% a year. And you don't realize that maybe that 2% doesn't even apply to the principal. Right. There's a lot of shady, just bull crap offers right now for e-commerce sellers out there where they're saying, oh, you know, we take a percentage of your profit.
[00:24:25] What they don't tell you is they take a percentage of profit in perpetuity until you've paid back this amount they forward to you. Right. Um, there's some pretty shady stuff out there.
[00:24:36] All right. Yeah. There's some great points. Uh, one other thing I wanted to talk about, and this is really. A very simple approach, even before you get into all of that, whether you're in north America or if you're dealing over in China. One of the simple things that you can do is try to renegotiate your terms with your suppliers and try to get them instead of, you know, upfront payments.
[00:24:59] Or if you're paying a 50% deposit, maybe it could be a 20% deposit if you're paying 90 or 30 days, maybe you can make it 45 or 60. And by doing this and having, having changed your terms, I know on one of our accounts, we were able to save or loosen up almost 200,000 in cashflow. I've heard of other people.
[00:25:21] I was just talking to another guy that did exactly that move and he saved over $450,000 in cashflow. And so he was able to just loosen up some money. It goes a long way. So what about, um, what about that working with your suppliers? Well, let me back up and ask this a philosophical question. Little, this is for you.
[00:25:42] Would you say that proper management of cashflow is about timing? Because what norm just said, you know, getting terms with your suppliers, you're still paying your supplier the same amount of money overall, but you're just delaying it. And I feel like a lot of people's issues with, with cashflow is just they're paying or they're having to pay sooner rather than later.
[00:26:04] And a lot of the secrets to managing cashflow is just stretching out your accounts payable a little bit further. Did I oversimplify that or are we onto something here? No, you're a hundred percent. And so there's two schools of thought, right? You don't want to delay your greatest vendors because you want them to be in your, you know, in your court, right?
[00:26:25] You want them to be supporting you. And so you want to be up front with them. You don't want to just late pay them. You want to negotiate that on the front end and say, Hey, I'm new in business. I'm getting started. We're definitely going to pay you. Or I've got a really big orders or anything you can do to help me out.
[00:26:41] Instead of me maybe paying you the whole bill in 30 days, let me pay you half and let you pay. Let me pay the other half, you know, 15 or 30 days after. So you want to, you want to communicate and be clear with them, but you know, I'll tell you in a lot of my past businesses, um, and, and this, you have to be very disciplined to do this, but there is something that you can do with the IRS.
[00:27:00] And that is that as long as you pay 110% of the tax that you paid last year by December 31st. So, so December 31st, 20, 21, as long as I pay 110% of what I had to pay in taxes in December 31st, 2020, I can use that money all year long instead of quarterly estimates. And so it's, it's you gotta be very disciplined.
[00:27:25] So I, I caution everyone with that tip because if you miss it, you are going to pay penalties and interest in IRS interest is ridiculous, but if you are disciplined and you do that, right, you could use, especially when you're growing, you could use that cashflow and put it to work provided. You're turning it fast enough, you know, just keeping on topic.
[00:27:48] Another thing that you can do is a pro, especially in north America, if you're. If you, if you have a 30 day term, you can approach your supplier and just say, look, would you give me 2%? Or would you give me whatever it would be if I pay it early? And, uh, you know, okay, so now you get 2% off by paying it early.
[00:28:10] You have to take a look at it. You gotta see what it looks like in your cashflow report, but sometimes taking advantage of an early payment or getting your, if you, if you have it, if you're invoicing your client, I know it's hard to do an Amazon, but if you're invoicing a client, you know, can you do it due, due upon receipt or 30 day ease or, you know, just shorten it up.
[00:28:33] We've tried to do that with every business that I'm operating. It's, it's all I love it it's all due upon receipt. But when I had other types of businesses where that people were paying hang 30 days, or even going over 30 days, you know, it took a hit and now I love it because you know, I'm always casual.
[00:28:55] And norm another hack. Another hack to that in line with that is, you know, pay, get your 30 days with your vendor and then throw it on your Amex and pay that within 30 days. So now you just got 60 days free end points.
[00:29:16] I'm not sure if I was on mute. I thought that was funny. Any
[00:29:23] funnier than we actually are. No, no, no. That was funny, but you know what I mean? Look, that's the easiest way to get yourself out of debt, pay the zero interest credit card game and pay down all your debt. But you can use that also. And again, be very cute. Be very careful because you got to make sure you pay on time, but you can get yourself 60 days interest free that way.
[00:29:45] Right. So I think that a good time. I just want to reset the room. Uh, we're talking about, uh, understanding the importance of cashflow. Now, this is the e-comm weekly, uh, learn how to sell online. This room happens every Thursday at 1:00 PM Eastern standard time, always talking about a different topic, trying to help online sellers or.
[00:30:08] Printers startups, anybody. Who's got a business just with a few tips, but if you're on the, in the, if you're in the online game, oh my gosh, you'll learn so much. You'll pay what we call, uh, as an Amazon seller, you'll, you'll get away from paying the Amazon tax, all these things that you trip up on, you know, some there's so many little things that we can show you how to do.
[00:30:34] I mean, just Tim's, uh, Tim's in the, uh, Amazon, uh, game as well. Lexi Jim's here. He's also a seller on Amazon and how much money has slipped through our hands because we just didn't know something. So anyways, if you like what you're hearing today, make sure you follow the panelists. Um, if you like the room, uh, there's a little green house up by startup club, click that and you'll get notified.
[00:31:00] And also, um, Jeff does this the best we are being recorded. So if you don't want to be recorded, please just let us know that you don't want to be recorded. Okay. Uh, I think that's it. Let's get back to talking. Uh, oh, I C N and welcome to as, uh, uh, as a speaker or as a panelist. How are you? Hi guys. Um, I'm you, do you mind not recording yet?
[00:31:24] This one? Just cause I have never done that before. Is that okay? I actually, if you don't want to be recorded it's best. If you don't, um, don't participate on the stage then. Sorry about that. But if you want, you can, you can just DM me, just go to my profile, DM me. And if there's a question, I'll make sure I get that to you.
[00:31:45] Okay. Thanks guys. I appreciate it. No problem. Hey Jim. Welcome norm. How are you today? I'm doing great. How about you? Good. Uh, I just have a couple things I want to share. Uh, I love, uh, the topic cashflow and I'll add one thing. Inventory flow. The two are so important for any business to be successful and go forward.
[00:32:11] And I think, uh, what I've done, you know, most of my career, I've sold to the brick and mortar. So I've learned different principles and different ways of, uh, managing business, you know, online, uh, is, uh, a little different animal, but what I've always done is create a sheet, a cashflow sheet. You know, it's not by accountant, I'm not an accountant, but I will, uh, do a 12 month forecast of what I anticipate my sales are going to be what my, uh, ongoing expenses.
[00:32:45] Uh, it's a multi, uh, sheet I plug in the inventory. That way I can take a look at. Uh, what if I'm meeting those sales goals, if the inventory levels are such a, the two have to go hand in hand, you need inventory to make sales, but you also need to manage, uh, the cash, you know, when you're starting out. Uh, I think it's very important for people to really lay out a detailed cashflow plan.
[00:33:18] If they're launching a, say a private label item, you know, what are all the costs associated? How long is it going to take from the time that you place the order until you receive it? Uh, how long is that inventory going to last? There's a lot of questions you have to ask yourself by, uh, just going through the whole exercise.
[00:33:40] And I think a lot of people get excited about selling online, but they stall out because as you, uh, mention norm and Tim, uh, you know, sales ramp up and. You know, it's time to reorder. And when is the proper time to reorder? You know, I would rather have cash sitting in the bank versus a warehouse full of inventory.
[00:34:03] Uh, I've always used the phrase. Inventory is a necessary evil when you're in the physical product business. So you have to manage the inventory. Uh, very closely. And I think a lot of people need to understand the host cycle, uh, especially if they're direct importing, the lead times required compared to the sales forecast.
[00:34:24] So a great topic. And I think a lot of people, they don't understand it. I didn't understand it years ago, but it's worth some time to investigate it and talk to some people that can walk you through the process. You know, the P and L is great. Oh, I'm making money, but I have no cash in the bank. And I owe a vendor X, overseas, $10,000 to get my order released.
[00:34:49] But if you had a plan in place, you would then be able to saying, uh, I'm going to have to make some adjustments. And some of the things you talked about, norm going back to the vendors and asking for some open account terms, I've done that. That's a great way of, uh, you know, using other people's money. And if you're a valued customer of theirs, probably they're going to work something out.
[00:35:16] Maybe you don't get exactly what you asked for, but, uh, instead of paying on departure, maybe they'll say we'll give you 30 days after, uh, lands in the U S so that all helps. The other thing. Uh, if you go into a traditional bank, which I've done many times over the years, and you go to the bank and saying, Hey, I needed some cash.
[00:35:37] Uh, you know, I'm a little bit short. Uh, the first thing they'll say, let me see your, uh, accounts receivable and accounts payable. And they go down the list on the accounts payable saying. Can you delay paying this guy? Can you pull it, delay, pin this person and on receivables, how can you collect this money?
[00:35:53] So that's kind of where I learned by going to the bank, asking for money. Uh, they will point out what you need to do to improve your business and be less dependent on borrowed funds. So I just wanted to share that norm. That's awesome, Jim. Hey, do you want to stay up as a panelist little head to take off?
[00:36:15] Sure. That's no problem. Awesome. You know, you just reminded me when you were talking. Um, supply chain management is so key and just staggering or making your shipments smaller and just understanding the lifetime we use. 'em. We use a app called so stocked, which really helps us visualize when the life cycle, when we have a, um, when we have to reorder how we can reorder the cost of the shipping, whether it's high-speed vessel or just ocean freight, or if we have to air freight it and believe me, you can spend so much extra money if you don't calculate a properly.
[00:36:59] And like you were saying, Jim, just being able to go back to your supplier and order instead of 2,500 or 5,000 units or 10,000 units order 1500 and start to like, just make smaller shipments and plan that out. And you'll what you'll end up doing is you'll see that your costs come down dramatically and your cashflow improve.
[00:37:23] So true norm. Uh, I've worked with a lady in New York that was an arts and craft, and she had a great selling item, uh, low MOQ 500 pieces. And, uh, the item started ramping up and she'd order a little bit more. And she got frustrated because she was out of stock. And she said to me, I'm going to, uh, you know, order 2,500 units.
[00:37:45] And I said, why? Because, uh, this vendor was superb, you know, uh, less than 30 days turnaround, she was, it was a very light items. So she could air freight it in. I said, what you need to do is look at your sales velocity. You need to, uh, then kind of plan out, you know, the length of time it's going to be manufactured time, uh, in, uh, uh, transport.
[00:38:10] And every time an ordered, uh, hits the U S place a reorder. I said, you don't want to own excess inventory. It took her a long time. Before she understood that concept, but I said, that's the smart way of doing it because you want to turn the inventory. That's where you make money. And it was a profitable item.
[00:38:31] I said, why tie up cash? And the other thing that we never know on any item, uh, when it finally, uh, if it does have a, uh, a selling cycle and it slows down. So you want to, you know, minimize the amount of inventory that you need to have on hand to make those sales. Yeah, I was, um, I was talking to a Christian Berlin over at a global wired advisors and, you know, one of the things that he was telling me, one of the key points is that proper planning.
[00:39:03] And if you don't have a business plan, think about putting together a business plan. You know, you've really got to plan it out because there's so many things that can come and just nip you in the butt. Um, and it could be simple things. It could be just shipping costs or it could be packaging costs, or it could be kidding in assembly.
[00:39:20] There's all sorts of different things. Uh, Amazon fees. Oh my gosh. There's a gazillion Amazon fees, but there's little things that you might not understand that you could work it back. But what I like to talk about is now we need more money. Okay. What do we do? Or we have a business. We want to start up.
[00:39:40] One of the things that I'd like to talk about is approaching friends and family. What do you guys think about that, man? That's tough.
[00:39:54] You know, there are a lot of businesses that started with family investments, right? There are, but there's probably a larger list of businesses that started with family investment that turned into some Megan nasty, nasty, massive drama. Right. And look, I understand that, uh, um, business is going to be stressful, but we should be able to eliminate as much stress as we can.
[00:40:20] And when something is tough with business and you're able to turn that off when it's family time or be able to disconnect, that's great. But when business trouble, you know, what, if something happens, what if your business fails? What if you lose money? You know, you're always going to be stuck with that family member.
[00:40:35] What I'm finding out now is that if you educate yourself and you learn what you're doing, there are other ways to get money besides family. Because in my opinion, it's a little bit too risky for me. I failed at a lot of businesses before I started figuring out how to get it right. And if I had taken family money on those, and I might not, I might not have ever recovered from it.
[00:40:53] And it would have been so traumatic and stressful for me. It might be, um, it might've been that I didn't pick up and try again. Now, I'm not saying it can't be done because there are a lot of people that have successfully done it even had, you know, family, business partners. But man, when you take, you know, $10,000 from aunt Sue or, you know, your, your parents just understand that it is going to cause a lot of stress.
[00:41:19] That you probably did not anticipate, and it might not be worth it. Tim, Tim, I agree with you a hundred percent, but just also to play devil's advocate a little bit norm, if you don't mind, the flip side of that is if you don't offer a friends and family, the opportunity, and then you have a usually successful business and you took money from strangers, you also run the risk of them really being upset with you for not giving them the opportunity to make some money.
[00:41:44] So yeah, there are two sides to that coin, um, that should come like more in a seed round or a pre-seed round. Like, Hey guys, I've got this business going. Or do you think that that that's adequate or that they should be involved in just a very, very beginning startup? Well, I think w you know, if it's in the very, very beginning, I think you have a better, um, situation to let them know that look, I don't need much and, and you're probably gonna lose this money.
[00:42:13] So, you know, I don't want you to give me anything that you're not going to. Uh, be willing to lose, you know, think of it as parents giving their kids loans. And I'm putting quotes up in the air, meaning that they're giving their kids money saying it's alone, but they know for sure, they're never going to get it back from their kids.
[00:42:27] Um, you know, it could be more like that situation. Yeah. I, I got stuck in that situation. I loaned for my dad on loan me money for one of my first businesses completely fell under like fail, big fail. And uh, another one that I did, oh my gosh, I wish a little was on, but I financed through credit cards. So I went out and I thought, oh, this is a great idea.
[00:42:55] Everybody's going to love it. Of course, you know, the inventor, everybody's got a love, everybody's going to buy it. And I'm at about a hundred dollars from about five different cards. And I maxed out all cards and all I was paying was bloody interest and the, the idea failed. So I learned to that way too, but credit cards are a horrible idea.
[00:43:20] As long thing you're disciplined and you can pay the bloody things off. Yeah. Norm, do you mind if I bring up a different take on the cashflow because we've talked, we've talked almost exclusively about cashflow from the perspective of paying money out. But part of cashflow management is also managing receivables and monies that monies that are owed to you.
[00:43:43] Now, I understand in a straightforward e-comm business, you know, the, the money that you're paying out for inventory and stuff is really going to be a priority. But if you also start to expand your distribution beyond DTC and start putting your products into other marketplaces, where they are going to be buying from you and paying you, you know, there are opportunities to manage that cash flow, because typically they're going to want, you know, to pay you 60 days, um, you can negotiate.
[00:44:11] Sometimes you can go back to two people who owe you money, uh, and say, look, if you can pay me now, or in the next 10 days, we'll give you a one or 2% discount off of what you owe, you know, and that's part of the cashflow management too. It's not just managing, you know, making sure you have money, uh, moving around from who you're paying, but also managing how the money.
[00:44:32] He's coming in. And I have one quick story from early in my career where I learned about the importance of cashflow. One of my first jobs out of college was for a publicly traded company. And as you know, as most people know, public companies are really driven by their quarterly numbers. And I watched as a young, you know, pretty green, uh, employee I watched as the CEO of this company just was making started to make, once we went public, when I joined the company, they weren't public.
[00:44:58] Then they went public. And as soon as they went public, they started making crazy deals from a cashflow perspective because they were good deals, you know, when it came to reporting quarterly numbers. So I remember in one instance we made a deal that was worth a few hundred thousand dollars. In recorded revenue for that quarter.
[00:45:18] But the cashflow from that deal was literally something like $75 a month, you know, over the next 10 years. So it looked good on paper for that quarter, but it was clearly not a sustainable deal for the company to survive on from a cashflow basis. So you want to resist those temptations. You know, if you're in a position where you're trying to boost your numbers for investors or the public markets and make deals that are look good on paper, but actually are very poor for you from a cashflow perspective.
[00:45:48] So I just wanted to share those perspectives from, um, money coming in and not just money coming out. I'm Jeff and I'm done. Thanks Jeff. Interesting. Tick Kim, do you have anything on that or a gym receivables? Uh, I agree with, uh, Jeffrey, you know, my, uh, I had a business. It was the gift in stationary business.
[00:46:12] We were selling into the gift market, you know, college bookstores, hospital gift shops. Uh, the interesting thing there was that, uh, say colleges, hospitals, we would, uh, give them open account terms. And when it came to, uh, say smaller boutiques and stuff, uh, everything was credit card. So it was a blend majority of, uh, the accounts set up where.
[00:46:38] On a credit card that helped the cashflow considerably, uh, on some of the bigger accounts. And we did sell some, uh, chain stores. Uh, there is another, uh, method of, uh, financing, safe, a traditional bank, uh, is not interesting. And, uh, just, uh, a straight out a line of credit or whatever you can, uh, go to asset based lenders, uh, the interest rates higher, but they will, uh, look at your receivables.
[00:47:05] They will look at your inventory and then they come up with a formula where on a weekly basis or whatever you set up with them, that you can get advances against the hard assets, meaning inventory and receivables to help, uh, run your business. So the receivable business, uh, I've always said, I'd rather have a receivable.
[00:47:27] Than a warehouse full of inventory because, uh, I had to collect money, uh, over many years and most people pay maybe a little bit slower, but, uh, very few people, uh, will exit in not paying you if you're reasonable with them. You know, the deal is, is the goal is to collect the money and try to work something out where, uh, they can pay you, uh, the getting, uh, over to normal about, uh, friends and family.
[00:47:56] Uh, I really, that's a tough one because, uh, family's important. And you know, if you go to family and unless it's, uh, there's no a hundred percent deal and I I've just never been comfortable going that route. And if you did go that route, uh, you should probably do it in a real formal way of a promissory note.
[00:48:19] Uh, know your numbers. And you know that it's, it's a legit deal. This is a business deal. This is not a favor. And Gil will also keep you honest that you have a promissory note with that, a friend or a family member that, uh, I'm going to pay it back. And if you're going to go that route, if you say you need the money only for a year, probably say three years, because nothing goes according to plan.
[00:48:49] Right. And, uh, the other thing is not just a promissory note. It might be that the understanding that. You might just lose the bloody whole, you know, whole amount. So, you know, there is the risk. And, um, I think that that's important if, if it's very clear and the expectations are managed, um, it can be done, but there's a lot of families that have broken up because of, uh, you know, just lending money, you know, another, um, area that I like to talk about.
[00:49:20] And I just want to touch on, we've got about 15 minutes to go, and if anybody has any more questions, please let us know. But you know, another way of doing this might be a little bit different. A lot of people might not have thought about this. A lot of people have, um, crowdfunding to get your product off the ground.
[00:49:37] What do you guys think about doing that? I think it's gotta be the right product. So I've got some experience in crowd funding and here's, I'm actually going to argue with you here, norm I don't know that crowdfunding is as viable as people think it is because on the surface crowd funding looks like.
[00:49:54] You know, you go to Kickstarter Indiegogo, and you throw, you know, some images up, have a cool product story, and people pay you in advance. The problem is any of those crowdfunding platforms, Indiegogo Kickstarter, or whatever it is, is very similar. Uh, like to Amazon, meaning you have to gain the system or you have to optimize your listing to a point to get Kickstarter Indiegogo to actually feature your product.
[00:50:18] Because most people that just post their stuff on a crowdfunding platform, they get relegated to page 422 of offers. Nobody ever sees it. You never raised any money. So do crowdfunding. Well, it actually takes some pretty good money up front. There's this whole algorithm of, um, you know, if you have a 3% conversion on your email list and you need to sell X amount per uh, you know, on day one, just like the other algorithm to get featured, then you have to spend X amount to build that email.
[00:50:45] It's crazy. The launch that I'm still planning on doing this year is going to cost me about $40,000 upfront is my estimated cost just in ad spend in marketing before I even announced the project, right? This is just to build hype, build buzz, build awareness, get the product, um, kind of like preset in people's minds.
[00:51:07] That way when I actually launch it on the crowdfunding platform, I'm hoping for about a $400,000, um, initial launch. So I think on the surface, it's easy to say, Hey, crowdfunding is great because. You get paid up front without having to the product, but it's a little more complex in, it's not saying you can't do it, but I don't want anybody to think it's easy.
[00:51:29] Um, and you're not, might not have to have $40,000. I'm doing a pretty big launch, but most people at least have to spend some marketing money to get awareness of their crowdfunding project before they actually get people to commit to it. So that's one little thing to keep in mind. Yeah. And Tim, uh, all this is, is presenting ideas good, bad or ugly.
[00:51:48] So, uh, like, you know, same thing with credit cards, it could be a horrible experience or it could be a good experience. Just depends on how you approach it. Um, another one that I want to talk about, or like, let's go down to some of the other lending, uh, companies or, uh, lending options that you can do at least for Amazon sellers, uh, Amazon lending.
[00:52:12] What do you think about that? Would you use it.
[00:52:17] So here's my opinion on a lot of these, these lending, whether it's Shopify, capital, PayPal, capital, Amazon lending, it offers lending opportunities that probably create an opportunity. Let me think how to say this. It's usually offered to people that might not be able to access traditional lending. Right?
[00:52:40] Jim, we're talking about asset based lending and you know, bank lines of credit. The cool thing about Amazon loans, like the first Amazon loan I got, they gave me $250,000. I hit accept in like five minutes. And then two days later I had a quarter million dollars in my account. Right. I could have never walked into a bank and said, Hey, I sell this stuff on Amazon.
[00:52:57] Can I get a loan? I didn't have two years of tax returns. I didn't have, you know, all my, my ducks in a row. So basically what these platforms are doing is offering lending based on, uh, just sales. They don't even know your profitability, but just sales. Now that's also changing because a lot of these people got hosed.
[00:53:14] You saw the Amazon lending stopped for a while, and now they've teamed up with Goldman Sachs. Who's doing the Amazon lending is getting more restricted because I realized, oh crap, this is a little bit scary and dangerous. So it's getting tighter. But I think that things like Amazon lending are interesting because they are looking at different things than traditional lenders.
[00:53:31] They're looking at growth, potential, not past cashflow and P and L right. Um, I'll bring up sellers funding low, brought it up to the very beginning. Sellers funding is interesting. There they're a FinTech company. That's. Basically offering working capital for e-commerce sellers, not based on two years of sales history, it's based on growth potential.
[00:53:51] So they plug into your marketplace. As you plug into, you know, you, you connect your Amazon account, your Magento, Shopify, eBay, Walmart, Wu, whatever it is. And, and they have an algorithm that looks and says, Hey, they may have only been in business for eight months, but look at this growth potential. And look, when they were out of when their sales dropped it's because they're out of inventory, we can fix that and they're offering larger amounts, but cheaper than like your merchant cash advances.
[00:54:13] Um, another thing you have to think about with like your SP I'm seeing it with Shopify capital and Stripe capital, if you're using like a Shopify store at Stripe account Stripe, sending out offers is they're also hitting you with what I was talking about earlier. This really cheap looking, right. Hey, access capital for 4%, but they don't say it's 4% per month for 12 months.
[00:54:31] Right? So it's like some ungodly APR, right? Or you just pay up front 4% for six months. But they don't tell you that there's no early payment options. Right. So you're stuck and maybe there's a disbursement fee or something like that. So I think that to your point, or to your question, norm, the marketplace lending or the transactional lending from Stripe PayPal is a good start because it's starting to look at things that banks don't want to look at, which has potential.
[00:54:58] So you can get money easier and larger amounts, but just make sure that you're looking at all options, because there are some things like sellers funding that are doing some, some similar things, but with cheaper rates and more flexibility. So it's FinTech and the world of finance is catching up to e-commerce.
[00:55:13] It's just taking a little while.
[00:55:18] Angela. I've never used angel investing, but I know a lot of people love it.
[00:55:28] Yeah. Sometimes that's just a great way to get somebody involved who loves your product. If he sees potential in your product, you, you know, you, you, you might, uh, give them a piece of your business. You might give them, uh, I th they'll, there's a variety of different options when you're working with angel investors.
[00:55:47] And sometimes that, that could be the best opportunity for you.
[00:55:57] Any thoughts? Uh, I've never had, uh, uh, angel investor. Uh, so no comment there, uh, getting back to, uh, the Amazon lending, I did use it, you know, example of say a hundred thousand dollar a credit facility that they would offer to me. Uh, it's utilization. You know, I wouldn't take the full amount, said, uh, say, Hey, I need $10,000.
[00:56:25] Get that. And then. Try to get that, uh, payback as quickly as possible. Because I think with Amazon, when they do offer, uh, tools for you, it's probably important to utilize it. Uh, but you have to be cautious just because, uh, it's not free money. Uh, it does come out of, uh, your disbursements and it's that whole cash flow thing that, uh, people need to really, uh, monitor closely.
[00:56:56] I did have another thought, uh, on cashflow that a lot of people may or may not be doing, especially if they're new, uh, they may be doing their accounting on a cash basis versus a cruel, uh, you gotta go to a cruel basis like from day one. Uh, you know, that that's a true, uh, test and picture of how your business is performing.
[00:57:18] And a lot of people will say, Hey, uh, I've only done on a cash basis. I got all this money sitting in the bank account. But it's meaningless because there are certain expenses that need to be recognized, uh, on the sheet instead of, uh, you, uh, haven't paid, uh, 10 vendors and it's not reflected in your, uh, numbers.
[00:57:42] So just wanted to bring that up. Gore cruel, forget about cash basis. Hey, welcome. Uh, Ronna. Hi, norm Jeffrey, Jim, how are you guys doing good. Yeah, I just had a quick point. Uh, you know, you were talking about funding, another company that looks interesting. I actually have not used them. Uh, I'll caveat with that, but they do look interesting.
[00:58:09] It's a Canadian company called clear bank, uh, which is now called clear Clearco. And, um, they do Amazon funding as well, but they use a slightly different model where it's a revenue share on, on your, your sales and revenue after the fact. And they actually plug into your Amazon system somehow and they take their payment, uh, from your Amazon payments.
[00:58:30] And it looks like an interesting model, but I do need to do some more research in it. And it was actually founded by I M Michelle Romano from shark tank. So it might be an interesting company to, uh, to take a look at. And then to the point of the, uh, crowdfunding. Um, with, uh, you know, something like Kickstarter, like our friends, uh, Mina, um, has, has started something on, on Amazon and th they're funding there, or I don't know if they're funding it or it's more of a marketing technique for their Amazon business, uh, in, in terms of, um, generating a list, uh, and using that list from Kickstarter and then using that as a, as a launch base, uh, for Amazon.
[00:59:11] So there's, there's other potential kind of side benefits above and beyond the actual funding, uh, that you may or may not get from Kickstarter, but it's, it's a different way. Uh, I would call it a marketing system, um, in terms of helping to launch new products on Amazon. Thanks, Ronna. Yeah. You know, I do want to, and there's just not enough time to talk about investing.
[00:59:35] I think I'll make this a, another topic. I have launched a couple of businesses using angel investing a couple of different models. It worked incredibly well. And it's an absolute win-win, but, um, it's more than two minute conversation or a one minute conversation. It guys were hitting the top of the hour.
[00:59:56] Uh, just to let everybody know if you like what you heard today. This is a weekly meeting meeting it's called e-comm weekly. Uh, if you like, what you heard, please follow, uh, our panelists today and also, uh, hit that. I don't know what that is. Jeff, the greenhouse besides flub and also I wanted to thank, uh, startup club having a meeting.
[01:00:25] Okay. So guys on the panel, do you have any questions or last comments? No, I appreciate you putting all this together. It's um, you know, really cool just to see so many minds get together and talk about some of these things that we're all trying to figure out ourselves. So thank you and Jeffrey for, for putting this together and thanks for having me,
[01:00:46] uh, very important topic. And, uh, I definitely appreciate it because sometimes looking at numbers are fun and sometimes not fun. And it's reality that we all need to know our numbers. You know, I just thought you saying that Jim, I got to give a plug to a guy that's not even on here that helps with entrepreneurs.
[01:01:07] Check this out, go to Tim Francis's site called profit factory. If you want to learn the basics of knowing your numbers and how to run your business, check it out. I can't give any discounts. I'm not an affiliate. Um, I have sent some of our, uh, employees and staff through the program and it's excellent.
[01:01:27] And on that note, guys, Have an awesome day. Thank you for being part of our community. And we'll see you next Thursday, everyone. And thank you norm and Jim and Ronna and everyone who was here. And I want to remind everyone, if you go to start-up dot club, you can enter your email address and sign up for our mailing list to get informed of other weekly shows.
[01:01:47] Norm does this great show every week here on startup club. And we have two special events this week that are in partnership with QuickBooks. One is this afternoon at 4:00 PM. Eastern coming up today, small biz meditation break because you deserve it with Lisa Abramson. She's a award-winning best-selling author, a TEDx speaker she's been interviewed by Oprah Winfrey.
[01:02:08] When she's going to do a guided meditation and a session about reducing stress. For your small business today and tomorrow at 1:00 PM. Eastern time. Also in partnership with QuickBooks, we'll be asked the expert strategies to grow your small business. So check out those events, go to startup.club for more information and make sure you follow us.
[01:02:29] And, uh, thank you so much.
[01:02:34] See you everybody later.
Cashflow | Ecom Weekly
June 10, 2021
Hiring VAs | Ecom Weekly
[00:00:00]
Hey, Rachel. Hi norm. How are you today?
[00:00:06] I know I'm. How are you today? You're doing great. How about yourself? I'm doing well, myself. Happy Thursday. Well, yes and happy Thursday. Pray back at ya. How's it going? Colin. Hey, how are you doing norm? I'm doing, this is going to be actually really exciting today. I can tell. Um, I think a lot of us are always thinking about we're too busy.
[00:00:31] We're too busy. We're too busy and there's a way that we can really, um, improve our productivity by getting some assistance. And, uh, if for those in the audience who do not know, norm Farrar is, uh, probably one of the top podcasters for e-commerce and how to sell online. Uh, his show is, uh, two, twice a week, I think norm is that correct?
[00:00:59] And it's all about, um, really how to sell on Amazon or, uh, with Shopify, um, everything from the supply chain to the actual marketing. So I'm going to pass it over to you norm looking forward to hearing about it today. Very excited. Let's see. All right. Thanks a lot, Colin. Yeah. So a little mistake though, it's three times a week.
[00:01:23] So it's lunch with norm Monday, Wednesdays and Fridays. And, uh, what, um, what I want to talk to you today about it's so important about selling online. And a lot of times when I'm talking with friends or just talking with people who, um, might just, uh, uh, DME, they're talking about VAs and why grow with a VM?
[00:01:44] What can I trust a virtual assistant? When I say VA, I'm talking about somebody that's remote or working with. Totally. Um, well, let me see. Now I have, I'm just have to check this too, to make sure that I've got the people that I want on, on the panel. There's a few people that I'm expecting that our recruiters and I also have Vandana who is my right arm.
[00:02:07] Uh, and we're just going to go through the whole hiring process. What to look for, everything that you need to know about getting the right person, what to, what to pay what's, uh, what's kind of a good PayScale. What's not a good PayScale. Um, And then the training and how to get the actual, the most out of the person and, um, allowing the person to, to grow.
[00:02:33] So when Vandana, uh, started working with me, uh, about a year and a half ago, uh, she knew she knew a little bit about Amazon selling, but we wanted to have her expand so she could come to us and expand our, uh, not only our company, but also spread the culture throughout the company. So Vandana had to have a 100% buy-in.
[00:02:58] So anybody who's got a business right now knows it's all about corporate culture. And if you have that, buy-in. From your employees or from your staff, uh, it's so much easier to grow that company. They understand that they live it, believe it or not. You know, there's so many people that really want to be a part of a great company.
[00:03:19] And they're your promoters are your biggest promoters. So I just, let me check the room again. I just want to make sure that, uh, the guests okay. All right. So let's start right from the beginning and I'm gonna come over here. I'm on my own with, uh, doing this as a moderator. I'm trying to just give me one second and I'll make sure that we get the one person on,
[00:03:47] hear my typing. That's where I love live. You know, um, w when things happen, when some of the guests don't show up, uh, now I'm in the, I'm actually in the fetal position, but let's, let's start. Virtual assistants. A lot of the times as an entrepreneur, if you're starting out in e-com, uh, What happens is you get into this, what I call sales rollercoaster, and you, you go out, you know, your product, you build your product, you're getting sales, and now you're working 25 hours a week.
[00:04:21] So what do you do? Well, you try to hire somebody, but the problem is you go out and you hire somebody very quickly. You might do it. I mean, you you're, you're just trying to get somebody to fill that position, to get that headache off, off your back. So you hire somebody, uh, they do everything wrong because you didn't train them.
[00:04:40] Right. And you fire them. And then you take over everything because you can, you're the only person that can do it. Right. And then it gets to 25 hours a week again, and you it's just a whole, it's called the sales roller coaster for entrepreneurs. And until I read a book called the myth, uh, back in 1995, I didn't get it.
[00:05:03] I didn't understand the importance of processes. I didn't understand about scalability or how to hire this changed my life. It's changed the way that I've run my businesses and this can change everybody's business. So anybody who's here that, uh, that is on a business right now, you're, that's growing a business right now.
[00:05:28] You're probably wondering, you know, when should I do this? I only have a small business. Um, you might be, you know, you might be a nine-figure seller, but you know, you might just be starting out and you've taken a course. And now what do you do? Um, when do I start. And the, the answer there is right now, every single time that you're doing a task, I would write it down.
[00:05:54] I create a task board. So it's, it's a simple board that you create on, okay, here's what you're doing in marketing. Here's what you're doing in operations. And you could just write the tasks in, and then you'll start to notice a repetitive pattern. Well, that's the key, the ones that you come on and you have to check, maybe it's doing the review checks or the feedback checks or whatever type of checks that you have to do that are very repetitive.
[00:06:23] And for the most part that take you off your game. Okay. That's where to start. I also sign assign a, um, um, a dollar amount. So if somebody is at a $10 rate or at a hundred or a thousand or 10,000, it might not be the actual rate, but what it is, it's just, okay. At $10,000, what am I doing? I'm going to events, I'm networking, I'm creating plan.
[00:06:52] I'm working on strategy. What's the $10, the feedback and the reviews. And by the way, if you do have questions, I see somebody who does have a question, oh, I see a few people have questions. I'll bring you up. And we will, um, get to you, uh, throughout the day, the room throughout the show. How's that, oh, and by the way, this is being recorded.
[00:07:13] So if, um, if you don't want to be recorded, just let us know. So I'm bringing a few people up right now. And by the way, I got to say a welcome to my right arm, Vandana. How are you? Thank you. Bye. Oh, I can barely hear you. Can you hear me now?
[00:07:39] Hello? Oh, okay. Somebody's got their mic on. I'm just going to turn that off. There we go. So
[00:07:50] okay. Oh, uh, where are we? Somebody here with the mic on. Okay. So, okay. Yeah.
[00:08:04] Okay. So then Donna, what are the again, you're uh, I can barely hear, uh, I'll try to speak loudly, but I guess now, can you hear me? Oh, yes, I can hear you fine. So this is van Dan, his first time on clubhouse. We, we set her up today, specifically for this. And one of the things that, um, I I'm interested in your thought process.
[00:08:32] So when you're looking for somebody to hire you, because you've rejected people in the past that, you know, just were not the right fit, what are you looking for? Uh, basically the first thing that I look for is if there is, you know, a business or I don't know, a single entity or a single seller, we need to have a discussion wherein I understand the requirement of a particular seller or this job.
[00:08:57] And then if I can fit into that or not. So, you know, there is a time like I cannot walk for 24 hours and get on three accounts or, you know, three businesses and want me to work on all of them. But, you know, there's a limitation. I can work for like eight hours, 10 hours, but not more than that. And. There are many things, but one of those is this.
[00:09:18] Uh, the other thing is how a person would like, you know, you to come on, take the position or, uh, how the flow will go on. So I generally like to discuss like the, the thing that we work on. So we have a task list. We have a, uh, software variance. We have all our team members, so we can see what task is on, what task has been finished, all of that.
[00:09:40] So how that process would go on. So if you could do all that manually, then I don't know, it's going to take two hours to just set that up. Talk to everybody, reach out. They see, Hey, hi, what are you doing? What's the date? So. Yeah. And you know, you brought up a couple of interesting points. One is communication, and I was going to talk about this a little bit later on, but you started out, uh, with me in Poland.
[00:10:05] And then, uh, you went back to India, which huge Ange. And one of the things that we had to do is manage that expectation. When are you available? And that had to be right up front. So I'm in Toronto, Canada. You were in Poland at the beginning and it was, are you able to work with me sometimes? I don't mind if somebody has a different time zone.
[00:10:29] Uh, I have a lot of VA's that work with me in the, uh, in, in, um, uh, well in India and in the Philippines completely different time zones. They can work. I can come up, I can check their work there, they stay on with me a couple hours and then they go to bed. Um, and that's, that's completely fine. But for you, we were working together.
[00:10:49] And the question was, are you able to work with me on Eastern standard time? And if the answer was no, I don't know if I would have said, oh, you know, we that's it see you later end of the interview, or just find a different, um, different way to work with you because you had a lot of strengths coming into it.
[00:11:09] And I hate finding a really great person that has high quality goods, good strengths, great strengths, and then, you know, not working with them. So we probably would have been able to, um, work with Vandana. Somewhere else, but it was very clear that she needed to be nine to five with me. And I can tell you, I don't ask her to do this.
[00:11:32] Um, she just, I mean, she's a powerhouse, she just works with me so well, um, like yesterday at four, which is, I don't know, probably 2:00 AM. You were up doing something, but, uh, you shouldn't be anyways. Um, but that's what we agreed upon. Like on the first ones I remember when sending an email, I said that, yeah, I'm available on your time zone.
[00:11:53] So I'm just okay with it. I'm just used to it now. So it doesn't, it is not even a task for me. It's like 2:00 AM. Yeah. Chill and the sleep in a awhile. But, uh, you know, one of the things that's so important is finding that VA. So how do you even start the process? I'm going to get to that question in a couple of questions here.
[00:12:16] So Zeba welcome to the panel. What is your question? Hi, um, just wanted to, uh, wanting to share my story of a social startup and, um, would like to have certain advice from you guys. So we started off as an NGO where we were working with jail inmates too. Like, you know, help them with the legal funds because, um, I'm based in UK, I have a co-founder who's based in India and we were working with jail inmates and then we'd realize that giving donations and legal funds is called the way forward.
[00:12:52] We wanted to give them a sustainable livelihood. And I mean, it's been a long seven years journey over. We did end up revolutionizing one to JS and we have been workshops are what they're and they build these home decor items. We have a market strategy where we can place them 20% less than the cost of the market price.
[00:13:14] Um, we earned our avenues mainly to international trade fairs and recently. I've scaled up to a social star. We might, you know, um, actually, uh, launch ourselves online. So I have this question of hiring perfect way when you're working in this kind of a setup where it's not like, you know, it's, it's going to go more mainly to the autisms, which is the inmates.
[00:13:43] So, uh, how do you, like, you know, um, higher, we like generally we have been working with, you know, interns or something where money is very crucial for us. So, you know, like how can we hire ways in company like this, where we cannot afford to pay them the amount, but we have a story to sell and we might get investment in future where we can, you know, hire better team.
[00:14:11] So that was my question. That's a really great question. I hear people saying, uh, I go to events and I hear people saying, how can I get somebody to work with me for the least amount of money? It's probably the wrong way of thinking. Um, I like to always hire smarter, but if I'm looking for somebody that I can train.
[00:14:36] And spend that time and train, then there's a variety of different ways that you can go about it. You can go out and depending where you want to go to. So those there's all sorts of types of recruiting. You can go to a concierge type recruiting, and I was hoping to get a couple of, uh, concierge. I call them concierge, um, recruiters that they'll go out.
[00:14:59] They'll find the person for you. You pay a premium for that. And usually they're more expensive. Then there's companies like free up, uh, F R E E, uh, freeeup.com I believe. And. They are, you can go to them. They'll vet everybody for you. You'll pay a little bit more, but you've got to, you have a person that you can work with.
[00:15:22] And if you, if it doesn't work out, they'll replace the person. So it takes a lot of that vetting process and time out of your, uh, out of the process. Now, my buddy and partner in one of my businesses, uh, Paul Baron he's, he should be joining us shortly, too. Uh, anyways, he did something just the other day and he puts something on online jobs dot P H.
[00:15:48] So that's a Philippine recruiting site where it's very, very inexpensive and you can find people, uh, at low to minimal costs. The problem with that or Craigslist is that you could get bombarded. He ended up, uh, receiving. 700 applicants. So how do you sort through 700 applicants? You know, how do you know, how do you go back and check?
[00:16:14] Uh, if they're, if they can really do what they say they're going to do, I'm going to show you how to do that in a second. But the, if you're looking for doing something on the cheap, there are lots of places. Like I said, you can start at Craigslist. You can go to online stuff, uh, online, uh, Job's got pH. You can go to work.
[00:16:36] Uh, Upwork Upwork is a little bit more expensive. Uh, but those two that I talked to about originally, uh, probably the easiest way to go. How do you cut through that? That's the other thing, you know, when you're putting up your job post, you have to be creative. You want to make sure that the person can follow, uh, instructions.
[00:17:02] And those 700 that went over to Paul the other day, if it was, if it was created in a different way, he probably would've got 50 resumes and then he could have brought that to a short list. It saves time. Now, does anybody have any questions about what I just said? Cause I can get deeper into it.
[00:17:31] And one of the other ways that you can do this as well is you can go on to LinkedIn. LinkedIn is another area where you can post the job very inexpensive, like go out, find tons of people. Um, but again, it takes your time. And are you a professional recruiter? And for me, I don't have that time. I always pay a little bit extra.
[00:17:53] Uh, for the most part, I'll go to a company like free up. Um, or, um, the other companies I was talking to a little bit about earlier, also work with a company that's called I worker and they recruit all over the world. Um, very, very affordable and they don't charge any upfront fees or anything. Uh, one other one that I work with a glad Freeman out of, um, it's V a Philippines, a lot of these.
[00:18:21] Companies people don't know about. And so they'll, they'll go to Upwork and they'll pay so much more money than going out to these type of recruiters. And I find that they do vet. Um, it's just not as much, or as in detail as what, uh, some of the concierge services would do. So, uh, anyways, I hopefully that helps you out now, dollar wise, depending on if it's an entry position, you could pay a few dollars.
[00:18:50] Uh, and I'm talking about three or $4. Uh, I like to pay a little bit higher. Uh, one of the reasons for this is because I want to build loyalty and I want to give anybody who's working with me security because. When you hire somebody for $2 or $3 an hour, excuse me. Uh, they're probably going to be looking out for the next job that pays 10 cents more.
[00:19:20] And then you're going to find out and you know, anybody who's hired a VA knows what I'm saying right now. All of a sudden there'll be a family emergency for the next one or two days, and then everything's fine. And then two weeks later, there's another family emergency. And when you start hearing about these family emergencies, I literally, I had a VA who forgot that.
[00:19:47] She told me her mother died three times. I'm not kidding. So what does that tell you? Something's up there looking for work. They're bringing in projects for some other reasons. So why are they dissatisfied a lot of the time it's probably because of pay. So, um, Pay I pay high. I pay a lot more. I also look at, um, on the first interview, I usually am talking to them about, uh, or the second interview.
[00:20:18] I'll be talking to them about their, uh, and bandana a, she knows this. Uh, it was okay. What is your internet speed? Go to this site, show me a speed test and send me a screenshot. What type of computer? Tell me what you're working with and send me a screenshot. What type of phone do you have? And what I'm trying to do is make sure that they have the right tools to work with because at $2, $3, a person could end up being a $15 person.
[00:20:51] If they have really poor, slow internet speed. And we'll what we'll do is we'll, uh, bump their speed up to 10 at the minimum, but we try to get them to a hundred megabytes. And we, we absorb the cost. We buy the computers, uh, with a clause that, uh, they, they need to be with us for one year and we'll pay everything off, but we pay for the computer.
[00:21:15] And we also, if they're in a really bad area for, um, monsoons, uh, will over over the year. So after a year, we'll buy a generator, if need be certain areas you don't need to, but we have to equip people to be able to work. So Vandana, do you want to add anything to that? Yeah.
[00:21:41] Yes. Hello? Okay. Yes. Whatever you said is exactly. And this happened with me, so yeah, we actually had a issue with the laptop, so we bought it and I think it's one and a half year now we are working together, so it's waved off. But yeah, we did that and it really makes sense because if I end up working for like two hours on the same task, which was maybe 30 or 40 minutes, but I just kept on working because maybe my internet was not good or my, uh, laptop was not working properly or whatever reason.
[00:22:15] So that doesn't make sense. It's it becomes expensive and it just is not worth it. There are some tasks that has to be done right away or, you know, has to be done immediately and then it will just kill it. Perfect. Thanks, Vandana. All right, so let's move on to Janda Jayda. Do you have a question for the panel?
[00:22:36] I actually have like a little bit of alternative to another route to hire virtual assistants, if that's okay with me Sherry, because I'm actually a virtual assistant social media manager and virtual assistant coach for I'm fashion. E-commerce businesses. Perfect. So another route that you can go about getting a virtual assistant, if you are maybe a little bit afraid of making a lower investment and in turn, maybe not being satisfied with your results, you can definitely go on Instagram.
[00:23:01] There are so many virtual assistants on there, and the big deal with this kind of field is that us virtual assistants usually specialize in a certain area. So for me, for example, I specialize in the fashion e-commerce space and there are many other virtual assistants. We specifically have their Instagram where they advertise their services for e-commerce.
[00:23:18] So the reason why I suggest this alternatives, because our Instagrams are kind of like our business card. We have our testimonies upfront and our highlights. And you can look through all these virtual assistants and see who is people's content that you connect with the most, look through their testimonies, look through their qualifications to see, wow, this is someone I can work with and not necessarily having to go the route of Christless or fiber.
[00:23:39] So from there, I would really recommend if you see someone that you think would match with your ideal business, you can go and message them and DM that, and really get to know them through authentic conversation. And the thing is with virtual systems and many of us will actually get on the phone with you have what we call a discovery call, where we learn more about exactly what we could help with this as a business.
[00:23:58] And if we have certain specialties, you won't have to equip us with trainings and all these things. So you'll find people specialized in the certain particular tasks that you were looking for. And there are so many of those people on Instagram and many people just kind of go the cheaper route, which makes sense in some cases, but if you really want that higher investment and that.
[00:24:17] Better outcome within your investment for virtual assistance. This is a great route to take because the last thing I want to mention is that we have contracts. So there are, there are actually situations where we could get sued. You could Sue us if we don't provide the amount of work that has given. So this is a much safer alternative in some scenario.
[00:24:35] So, um, again, my name is Jada. I work with fashion e-commerce businesses and I'm a virtual assistant coach. Thank you so much for having me onstage today. Jayda. That's awesome. I know, I really never thought of going through Instagram and just listening to you, uh, It's about personality too. If you're, if you're doing an interview, like you said, and you get to know the person, um, sometimes you just don't, you know, you don't jive and it's nothing about the one person or the other person.
[00:25:05] It might be for the job position. Like I'm not the accounting guy. Um, I don't have that kind of brain. I'm more on the creative side and that might be a whole different personality and that's okay. But if I'm working and if I'm trying to get somebody to work on my, um, photography or videos or something on the marketing side, I really do have to have that personality, that person that can jive with me.
[00:25:29] And one of the other things that I'm looking for, I said it before, but for, and this is only for us, there's many other ways of doing this, but I try to hire smarter. If I'm just trying to hire somebody to do video work or video creation or, you know, email campaigns and I'm teaching them what I know, I can't know everything.
[00:25:52] And so what I'll do is I can show this is what we're doing, but you better come to me with here's some suggestions or here's what we're doing. If you're only coming to me with, oh, this is what I can do, or this is I'm going to do what you do. I'm not interested. So Vandana, uh, one of the things that we've created, I have, I have, uh, I work with about 55 VAs and we have a culture in the company that says, do not come to me with, do you know how to, it's always, we, we start with an SOP.
[00:26:32] So everybody's trained with an SOP and the SOP really is a policy and procedure. It's the, buy-in, it's the definition of, uh, of the terms that you're going to need, it's prerequisites that you might need. And then it's a screenshot and how, um, how the flow goes through, you know, X number of steps. And then if something was that you done.
[00:26:59] Yes, I was trying to say something, but yes, please continue. Okay. So, and at the end, um, there's also, who is who, who you're reporting to and when are the updates? So when you're doing this, if there's a problem and you know, the, the, the VA or the project manager comes back to you and says, I ha I I've got a problem.
[00:27:23] Okay. What's the solution then. Okay. On step 19. This is what happened. Oh, okay. What's the solution. And it gets the VA or the project manager thinking you're not the person to go to for the answers. You're you. As the project manager, come back and say, look at it, step 19. This happened, I think this is the situation, the, the solution, if it's not no big deal, but that's how you start to build that culture.
[00:27:54] Most of the time it gets fixed. If step 19 is wrong, guess what? It's usually me and I did the SOP or whoever did the SOP there's a glitch, or it has to be revised. If the person comes back a second time on the exact same issue on this exact same, um, task, let's say, okay, what's the solution? Oh, it's step 32.
[00:28:18] Okay. Fine. Probably me. I made the mistake if there the third time and the project manager is a really awesome person. We'll move them into another position. Obviously they've made three mistakes. It's not their position of strength. It's more playing off a weakness. We always want strength and we move them.
[00:28:41] Or if the person is just not working out, we let them go up there. People are allowed to. Make mistakes. It's encouraged. You know, I don't want to see mistakes every day, but people have to have the freedom to make a mistake if, if you're screaming down their throat, because somebody made some minor mistake because you're in a bad mood from something from home.
[00:29:05] Um, or if they think you think that they can just do it from better than you, because, and you provide no training, then you got a problem. You're going to have a person that's actually afraid to make suggestions because you're going to Ram it down their throat. So, um, I just see, I saw Paul come on. Uh, Paul's my partner in TCA and the Chad agency.
[00:29:27] Uh, Paul, you got anything to add to that with virtual assistance? Um, I mean, I loved what you were saying about being able to make, make mistakes and. I mean, that's the thing is if, if you truly want to grow as a business and you want to scale, you've got to learn how to allow people to be there. Um, like to, yeah.
[00:29:50] To make mistakes, to go out on their own and learn it's that's when the difference, the transition from being a business owner to being a leader is really important. And I would say it's much more important to look at leadership principles rather than just management principles, because especially with virtual assistants and people that are working abroad, you know, say that you, you hire somebody who's who's coming on, you know, part-time and they've got, you know, two or three other jobs.
[00:30:21] That are also part-time, but they're really, really good. And you want them to work with you. They're not going to want to work for you and continue to work with you. If you're constantly breathing down their neck and treating them as if they're a second class citizen or something. And so I look at a lot of like growth in our business and it like ways that it's freed up our time to do things.
[00:30:42] And by our time and me and some talking about my wife and I with our, our e-commerce brand, um, it's all come up when we empower our team. And we, we, we, we empower them to just be better at what they do. Do, you know, be more independent, give them more, you know, decision-making control sometimes that bites you in the ass.
[00:31:04] Sometimes, you know, most of the time, if that does, you can learn from it. And if you have somebody who's truly committed to growing with you and learning with you, then it's actually going to be a really good thing for you. And like, Failures and mistakes are some of the best things, the best learning experiences that you can have as long as you learn from them.
[00:31:23] The only, the, the worst thing about a potential failure or something, you know, the only time that I would say true failure is if you fail to learn and you fail to improve and get better from it. So I think it's, it's, it's, uh, it's incredibly crucial to give your, your people and your team, the freedom to make mistakes.
[00:31:44] And it's hard to do that. And it's hard to not step in and be like, well, here, this is how I do it, or how it fix it. It's learning how to lead people and learning how to help people think for themselves and come up with solutions. Um, It's time-consuming, but it's worth it. Um, you know, it's easier for you to jump in and say, well, this is what I do, and this is how I'm gonna fix it.
[00:32:06] This is what we're going to do now. Uh, but if you do that, then your people in your team are not going to learn. They're not going to be able to internalize any lessons, because what you're basically doing is you're training them that when a mistake happens or when something bad happens, that you're just going to jump in and fix it.
[00:32:20] So you're training your team to just rely on you for all the important things, which is a terrible thing to do. Yeah. I like what you're saying, Paul. Um, I know that we've got a few people here with some questions. Uh, one thing I want to just mention before we go to the questions, the importance of training.
[00:32:43] So especially the first person I like to train. The person who's going to train the rest of the staff. So Vandana came in during her onboarding process. We went through, we went through different types of training. Um, I'm very simple. I put, if we're not doing it live, uh, I just put it on loom, like a loom video, L O M it's free.
[00:33:08] Um, I do have the paid version, but you know, you just do it on loom. You can send over the information. Uh, we will, uh, with the SLPs, there's a very specific process to do that. We create templates it's where do you file? Uh, so everybody can get the information. You have to think that coming into a company, where can you access the information?
[00:33:34] Uh, so we have a Google drive. Uh, Vandana is gonna roll our eyes right now, but, um, I'm very, very specific about where things are, are, where they are, where they're located. If a new client comes on, um, you know, there's 40 files that get opened up. It takes her about a minute to produce these files and then everything's there.
[00:33:54] So if I'm working on the weekend or if one of the other 55, uh, uh, VA's are working on the weekend, they know where to access the file without even thinking. But, um, just wanted to get back to, uh, the questions now. So Abdula, welcome to the stage. What's your question.
[00:34:20] If you want it on the mic, on the right-hand side and by the road. One moment. Okay. Can I ask you? Thank you. Okay. One thing before any, uh, Abdul, if you talk, I just want to make sure that it's okay. We are recording this. So please let us know, um, that it's okay to record you. Actually, I'm going to say something different.
[00:34:49] It was not okay. You know, let us know how's that I'm learning this moderator stuff as we go. Sorry. Are you able to talk now? I'm doing well.
[00:35:05] Okay, Ron, let's move on to Santosh. Welcome to the stage. What can we do for you?
[00:35:15] Hey. Hey Norman. Thank you so much for paying me up. No other very quick question. Then the hiring is so I'm based in India in Bangalore. And, uh, I was specifically into training business and consulting business. Basically I look forward to hiring VA's in other countries or in India too. So one of the things, uh, what are the checklist, uh, I need to consider before hiring a VAs because I'm pretty new to this and that's how, that's why I'm hoping here.
[00:35:51] So, uh, I'm just looking to understand, since I heard you telling me that, um, you need to, you need to also provide a training unit to provide all the prerequisites to raise, but then how is that different? I'm in I'm hiring. I am already having my own company in India, where I have my executives already working in my company.
[00:36:13] I do provide the same thing to them, uh, as, uh, uh, I'm in training or, uh, all the prerequisites for our business. So, how does that make of this? How does that make a difference? What is the basic difference between, uh, hiring a VAs as well as hiring an in-person executives? That's what is my question? I'm done.
[00:36:34] Speaking thing. Well, you know, that's, um, that's interesting that you mentioned that, so it's the same. It there's no difference except that when you're working with a VA, it could be in the world anywhere in the world. Um, it's just that it could be at any hour of the day. Um, it could be like, maybe you don't want to have the overhead of an office.
[00:37:01] So I had an office, I had a fulfillment center. I've had it's horrible. I don't want to have that overhead. And if I can run, uh, especially if you're working in e-comm or an agency or being a service provider, nobody comes to my house. I can work here. Vandana. You've never come to my house. She's never accepted any of it.
[00:37:23] to come to Canada, but, uh, anyway, but anyways, you know, you could, you can build the same relationship and that's the key. Uh, if you're training, if you're training, uh, in in-house, you're doing the same. If you're building your brand story or your corporate culture, you're doing the same. Now, one of the things that we try to do, not everybody can do it.
[00:37:52] Uh, but at the beginning it might be tough to do this, but I'd rather hire somebody full time and get their commitment. Even if I can give them only 20 hours worth of work. I want them working with me. I want them to train. Um, one of the things that we'll do is we'll provide, we'll say one of the questions is.
[00:38:15] Where do you want to specialize? Where do you want, want to become an expert? And we pay for their training. So Vandana one hour a day, trains. Now she could go in social media. She could go into Amazon. Uh, she was when she came on board, uh, a mid tier Amazon person. Now with all the training, she does one an hour a day.
[00:38:38] She takes Kevin, King's a helium 10 elite. She's taken all sorts of courses. A matter of fact, she attends most of the webinars that I'm supposed to go on to. And she summarizes it for me. Now she's an e-comm expert or now she's an Amazon expert. I don't even have to ask her anything. She knows it before I do.
[00:38:57] But, um, anyways, so just going back to the question is exactly the same and what you want to do within your company is probably have that one. Liaison between the VAs. So they are the expert in training, onboarding, getting them to buy into the culture. And it's so important to make VA's project managers feel part of the team have staff meetings.
[00:39:28] If you have multiple people have a set time where you meet, talk about it, you know, we have multiple people, we'll have a weekly meeting and we just discuss the projects everybody's gotta be involved. So hopefully that answers your question. All right. Over to the basket, I would like. No, I'm. I would also like to answer, uh, to send those question as well.
[00:39:56] You go, go ahead, Robin. Yeah. Thank you so much for Santos. I think so the very first thing is that, like, if you are looking for a VA or someone who can help and assist you in your business. So the very first thing is that the, the. Anyone who is going to offer, uh, his or her services in the terms of like e-comm or any kind of the business as a VA.
[00:40:21] Uh, so they definitely have, uh, that kind of training, which you need to, uh, w which you need to check on on the top of artists. Like if they have the certain amount of skills with them, then they are able to, uh, give you that kind of set of says, you don't need to train them as compared to, if you cannot, if you're going to hire a simple employee in your office and you need to train them.
[00:40:43] But in the terms of like, if you hire a VA or account manager, you don't need to give them a training. They already have that kind of a skills. Our expert is number one. And secondly, if you hire someone who is, uh, actually having that particular experience, you don't need to arrange a separate space. In your office for his or her to sit and you don't need to spend the money on office or on a separate, uh, chair table, uh, maybe some, uh, computer related stuff or anything else.
[00:41:14] So there are the two main points. If you hire a VA as compared to, if you, if you hire a person in your office, like if you hire a person in your office, a normal employee, you need to train him and you need to give him a space, uh, which is actually cost in the term of, uh, like office and, uh, some of the expenses.
[00:41:32] But as compared to, if you hire a, your account manager, uh, that person, or that person should have that, uh, capabilities and, uh, having that kind of services with them, and then, uh, they need to manage their own office and stuff like that. Thirdly, if, uh, like you have the right to evaluate and get the targets from that as well.
[00:41:53] So I think, so this is the main defense. If you hired a person in your, uh, office, or if you hired a VA. Thank you so much. Roger. I just a follow-up question. I'm sorry. I'm taking much of the . So, uh, what is the metric to track the particular, uh, uh, particularly the VA's, what are the metrics do you track?
[00:42:18] What are the ways to track them precise presented? For example, I put up in India and I'm, I'm hiring, uh, a person from us to work in us markets. So what are the metrics you guys can track it because that's, that's one of the challenging point, which I think thank you. I'm done speaking. Yeah. So that's a very good question.
[00:42:36] First of all, uh, and, uh, uh, like I'd prefer to go with a system that is quite key. KPI means key performance index. So first of all, send those, you need to identify like what kind of vision you have, and then you need to translate that in your mission and goals, and you need to give some kind of targets to your VA or account manager.
[00:42:57] So how are we going to track that? Uh, there are the different, like, it's totally own you like how you want you to track that. For example, if I I'm, I'm I'm going to hire a VA. Uh, for, uh, like I said that like, uh, Hey, I think so we are getting 200 units a day sales now from Amazon PBC and our ad spend is around 25%.
[00:43:18] So what your target is in next one month, in next two months, you need to maintain that particular 200 units a day and bring that advertising cost or the spend from 25 to 20%. So this, this is a clear cut target. So if a person is going to meet that particular target, you're gonna, you're going to divide that in, in, in different phases, like in first two week or in first week, we need to have, uh, at least 24% and 23, then 22 and 21 and 10 20.
[00:43:46] So these are the, like, you can, uh, if you wanted to track the performance of your employee, you need to identify. Like what kind of performance I need and you need to establish some kind of the SOP and some kind of the goals and objective for that. And then you need to make sure that like, that person is going to closer or hitting that particular targets and asked to very first thing is that you need to, uh, clear clearly, uh, instruct the, uh, the targets to, to that particular person.
[00:44:16] Secondly, you need to add on to give the KPIs, the key performance index as well. So that is a proper method, which we can use to, uh, and, and that's totally, that's totally defined on the basis of the task or, or maybe the results you are looking for. For example, uh, if there's a designing related work, we cannot give any kind of the targets or define the KPIs.
[00:44:37] Uh, if there's a task for completing, uh, something, for example, listing optimization, then the task will be different. And the KPI and the system tracking system will be different. And if we have some kind of the marketing related traffic oriented stuff, then we need to go with the some stats oriented stuff.
[00:44:53] So I think so, like the best answer for this particular question is that, uh, is totally depends upon you and the task, which you are going to assign your VA or account manager and own that particular task. And on that particular condition, we need to customize lead, define the KPI process, like how we're going to attract that particular guy.
[00:45:16] Okay, thank you Raja. And just to remind everybody, this is a little bit different room, we're trying to keep, uh, the, the, the panel that was invited in, uh, to just, uh, just stay on to the VA topic. Okay. Um, It's a little bit different than what normal clubhouses are. Uh, I'll, I'll, I'll mention this, uh, again with the next weeks and each one that's going on, we're trying to do is create, uh, an area where, and unfortunately, some of the people that were supposed to be here as recruiters weren't in, uh, we're in onstage today.
[00:45:55] And, um, but next week and each topic we have every week to learn how to sell online better, uh, we'll be just set up with a group of, uh, experts that are going to be on the panel. So the other, um, or hopefully Sebastian, uh, or, um, santosha that answered your question. Uh, Roger did an excellent job. Thank you so much, Norman and Roger.
[00:46:21] All right. So moving on, uh, with training. So let's touch on that training again. So, you know, If you don't have the training or how important it is, where can VA's get training, you've got to go out and find, you know, the training for them. If you're not let let's say, I don't know anything about social media.
[00:46:43] I'm an old guy with a beard. I'm bold. You know, I just don't know anything about social media. I had to find somebody to go out and learn social media for me. And then we got them signed up into social media examiner. A digital marketer got, just hit them with a ton of social media and they had to pass their test.
[00:47:05] So they got certified, which helped us out. And now that person has four people working under them with SOP. So I think that, uh, you know, once you get that person on board, that it's so important to make sure that. You figure out your tasks, what is important? Figure out. I know in I'm the project manager tool, that management tool that we have, there is a, um, a time or a billing, um, device, a billing app that you can set the template for so much time.
[00:47:40] And if you're noticing this has happened, you know, it's taking an hour instead of 15 minutes to complete a task, you can review it and figure that out. So, you know, that's, uh, that's another way of showing whether the person is able to keep on track with what you're doing, you know, or what your expectations are.
[00:47:59] Maybe your expectations are out of whack, but that's another way of, you know, Vandana will go in, sign in, put on the timer. I keep away from screen doctor, a lot of people do they like taking those screenshots? I don't do it because I want to give. As much just trust, uh, you're doing your work. I don't gotta to see it.
[00:48:24] Um, you know, you, you come back to me, you get your job done. Great. You know, I'm, I'm, I'm wide open, you know, I don't want to have, okay. You have to screenshot every time you go onto your computer using time doctor or something like that, I'd rather give them the, um, the benefit of the doubt. But, uh, anyways, let's go on there.
[00:48:48] There is my next door neighbor run. Uh, how are you, sir? I'm fantastic norm. Thank you. I just didn't touch you lately. I'm authority in your side, and I'm still feeling that slap you gave me a yesterday on your podcast for not hiring a VA. I still see it. I still feel that one. Uh, so my question is actually norm your it's a follow-up question, uh, to norm and DePaul actually, because, uh, norm was killing the story or making fun of Paul actually, uh, for his, uh, online jobs.ph job posts.
[00:49:25] And Paul got flooded with, uh, with applications. So my question is what's the best way to filter that. Uh, normally you did kind of, uh, you, you, you did kind of mention that, but in terms of filtering, like you do a test, uh, do you some kind of service or, uh, some other plugin, you know, some way to vet the applications to, to filter that down to something that's more manageable and, you know, qualify the applications, uh, with some kind of automated system versus you going through one by one.
[00:50:00] Well, hopefully most of the time I'll get somebody to do this for us. So there we'll hire the recruiter to go and vet, and then they'll come back to us with three or four people. But if you do want to go on to like an online jobs or LinkedIn, even, um, you want to make it hard. You want to make sure that the person can follow instructions so very easily, uh, or one of the things that you want to do is also make sure that the person, uh, is part of your culture.
[00:50:33] So typically I'll either create a video or have somebody create a video on the team. They'll go through the company, uh, what the company's all about, uh, what we're looking for in a person. And then the instructions and the instructions. Uh, and I, I know Paul does the same thing and if I miss out anything, let me know Paul, but what we'll do is we'll, um, create something that makes people trip up.
[00:51:00] So many people, when they're like on, on Craigslist, they just apply. They don't read it. And, you know, you could say you're looking for an expert in social media or in a, whatever it is, and they just apply. And then you find out that you're wasting their time and my time. So we'll put maybe in the first paragraph, what we're looking for, then we'll say in the second paragraph, please reply maybe in a different font, make sure in the subject that you put this and that like, for the most part, we're just trying to.
[00:51:35] Get the person to follow the instructions. Sometimes we'll even ask the person, uh, usually this is the second interview, but you can ask them to make a video, following certain things and have them send it over to you at the sec. Uh, at the same time, also, you want to make sure that you get your, their portfolio because it seems like everybody who's a social media expert has taken one course of graphics in high school.
[00:52:04] And you know, they just post and comment. They don't know how to be engaged. They don't, or they're not creative. So you want to see. Who they are, uh, what they do, what their specialty is, what are their strengths? Because maybe they can fill a void. Maybe you've already got the person already set, get it and get a resume.
[00:52:26] Um, that would be for the first and that usually like, if, if you're going to get two, three, 400, like online jobs, you'll get two, three or 400 people, but you'll probably get these down to 50. And then on the second one is where you have the actual interview. So, um, might be on Skype. Uh, I like doing video. I know some people would rather go on to Skype, but.
[00:52:52] It's for response time. So when you're on Skype, you can see if the person's answering your fairly quickly or if they're dealing with 10 other people. Um, if, if it takes a long time on Skype for them to react to you, especially during a job interview, that's a big red flag. Uh, but when I, I go to zoom, I talk to them, I can see the internet connection right away.
[00:53:14] I can talk to them about that. I can talk to them about the task. I can see how well that they're following instructions and just communicating with me, fill out their personality, talk to them about internet, computer, and phone. And most importantly, during this interview is managing all expectations. Uh, that's probably the big fail for a lot of hires is either.
[00:53:39] Your expectations or their expectations are wonky. And so this is where you just lay everything out. This is what time I'm expecting that you can work or not work. Is it flexible hours? Uh, you know, how are you reporting? Are you, are you willing to train? Uh, one of the other things that we'll do in our company is that, uh, you have, what are your five strengths?
[00:54:02] What are your five weaknesses? What was the training and how could it apply to our company? So, you know, are they willing to do that? So these are the types of questions and, and, uh, feel good answers, you know, and any red flags go up, you can get rid of them. And then the last one, I usually on the second interview, I pretty much know who I'm going to have is usually a fairly short list.
[00:54:25] But if it is a tie, then I'm just digging into a bit more information I'm seeing, you know, can they use Skype? Can they use our project management tool? Uh, just, you know, the, the finer things. Second interview is usually the person that I can, um, that I know I can hire, you know, anybody, uh, like Paul, do you have any thoughts on that?
[00:54:48] Uh, you know, we're actually in the middle of hiring two new VAs at the chat agency and the simplest like w so everything you outlined we're doing. So Jerry is my executive Wolf was my executive assistant. She still technically is, but she has basically transitioned to being the ops manager now for us.
[00:55:14] So she's essentially running the company, which is amazing. And like, she actually did all of the interviews for our current positions that we're looking for and what we, what we do when we're hiring. Um, I like online jobs that pH, um, you can pay for the upgraded monthly membership. I think it's $70 a month and you don't need, you can cancel it if you're not using it.
[00:55:36] So the cool thing about it is if you're just doing one job search, you can pay for the upgrade and then cancel it the next month when you're not using it. And what we do, like the screening, following instructions a bit, Rhonda is you you'll have the entire, you know, your, your job, um, your, your job posting, your, your, you know, your description, everything that you have, like, so let's say you're looking for a virtual assistant to manage your social media.
[00:56:03] You say, you know, put all of that in there. You know, we want, you know, somebody with experience working with brands, you know, that you have to be familiar with the Instagram platform. Blah-blah-blah, you know, whatever you're, you're saying, right? You have that all in there. And then what I like to do is about three quarters of the way.
[00:56:18] Or somewhere in the middle and don't make it stand out, make it so that you have to read. And you say, um, only applicants that apply with this as the subject line, whatever the subject line may be. So when, when we do this for bow and belt littles, we like to use children books, title children's book titles, because, you know, we got kids and we have literally kids books everywhere.
[00:56:42] Like there's one right here. So spinning science, put spinning science in your, in your, uh, subject line, if you want to be considered for this job. So that's a really, really great way to cut down the amount of that.
[00:57:01] And, um, Jerry forgot to put that in. And we got like 700 applications in that first day. And like, how are you going to go through 700 applications? And, um, w what, what had happened was like, we do, we change it. So she didn't go through all of those. We changed it. And I think we got like another 800 the next day or something, and less than a hundred had that in the subject line.
[00:57:23] So that right there is one of the quickest tricks that you can do to make sure that if you're looking for somebody that, you know, they have to have attention to detail, put in some weird subject line, like, um, my exalted Lord and savior, Ron, uh, guru or something. Oh, man. It's all true. Ronna. All right.
[00:57:50] Thank you. I appreciate the, uh, the, the reply and the, and the advice. Thank you very much. No problem. I'm still, uh, making sure that we get that barbecue too. So, um, anyways, yeah. Hey, it's calling here. Um, Uh, I just want to say I've actually, um, really appreciated this and what's stood out this episode. What stood out for me was that the importance of training your VA or your, you know, people you offshore as humans.
[00:58:22] And I've actually been a partner in a company called geeks for less. We have a thousand people, mostly in Ukraine, mostly programmers, and we outsourced the programmers and some clients treat them almost like machines and that's wrong. Uh, it really, it really our people. And when you, you know, I know in some ways they act and behave in some ways like machine, because you can scale your company very efficiently and you can throw lots of tasks at them.
[00:58:53] But at the same time, I think it's important to understand they are humans. And they appreciate every human appreciates. Um, uh, a number of things. One is recognition. Two is, um, uh, bonuses, you know, three is being part of a team, uh, just because they are off shore or they're not, you know, when you have a team here in the United States, doesn't mean that they're not part of the team.
[00:59:17] And, uh, I think that's something that really stood out for me in this hour. And I really appreciate that. Call-in complete. Thanks, Colin. That's a, that's a great point. All right. We're going to be winding down fairly soon. We try to keep it tight, fairly tight to two. We might go a little bit after, um, but I noticed that Tiffany is on hi, Tiffany.
[00:59:38] Welcome to the panel. What can we do for you? Yeah. Hey guys. Thanks so much. This is a really great room. Um, I was actually just chatting with. Someone this morning, you know, because, um, we both, you know, work on our businesses together and, you know, we constantly have issues hiring BAS. Um, so I did want to ask how do you guys handle or manage basically verifying what the VA's skills are that they say that they can do?
[01:00:06] Um, right now, you know, I've learned through trial and error to just have a document where I have them fill out like a bunch of questions that I already know. Like if they don't know the answers to those questions, they're probably not going to be qualified, but whatever. Experienced is they, a lot of these VAs, they just tend to, over-exaggerate what they can do.
[01:00:26] Um, and what they kind of know, um, as far as their skillset. And so it's kind of, you know, it's really frustrating when you get, you know, you go through all the steps and then you start trying to train them or whatever, and then you realize like, okay, they don't even know the basics of, you know, let's just say, for example, you know, finding wholesale suppliers, things like that, like they don't even understand the wholesale business model.
[01:00:47] Um, so that's just what I wanted to ask you guys. So thanks so much. This is Tiffany. I'm done speaking, Tiffany. It's so important. Usually at the very beginning, you know, when the, the first batch come through and you've got those 50 that are left, um, you know, you, you try to weed out by what they're providing, but when you do get to the interview, uh, let's say for social media, this is one thing that I had to do.
[01:01:14] What makes you different? We, we are looking for somebody that can either create. Uh, do the copy or do engagement. We know we can get two and not three. What are your two and how are you going to do it? And something like back them into the corner. Like those questions have to be asked because you'll hear a lot of fluff and I'm very specific.
[01:01:37] Like Amazon I'll be, oh, I'll work with Amazon. I'll talk about Amazon. I know Amazon. So I'll ask some very specific things. Okay. What are your, what are your latest PPC strategies? Um, okay. When you, um, when you ask somebody, uh, is this a good strategy, create an insert and put, if you like my product. Click here, if you don't and it's just series of tests, we know that if you're an Amazon person, you know, you can't do that and you can either have a series of questions.
[01:02:09] You can create a sheet, but you can also go to, like, if you're doing this on Upwork, they have skills. Like you can go and do a word, a word test, or an Excel test, and you can see what, what their, how they're, um, how they're, how they grade, you know, if they're any good or not. Uh, but I, I really do put them to the test end when they get down to the second.
[01:02:35] I didn't mention this. I assign a task. So I'll get the person to go and do something. I'll pay them, you know, but just go and do this. I want to, I want to promote, you know, I want to create an email campaign. How are you going to do that? Um, that's how we do it. And then we just take a look and we really dig in to their resume to make sure that that happens.
[01:02:57] So I don't know if anybody else has any other experience with that, but that's how we do it.
[01:03:07] I can share. Go ahead, Pete. Yeah. Thank you. It's a great, really good information. Um, to answer the Tiffany question, what we did, we need a graphic designer for just, you know, a few months ago and we created exact same project, but the person needs to do three images and we hired like five or seven graphic designers.
[01:03:34] We paid them like 10 or $15 for that project. Did this have to do exactly the same thing so we can compare apple to apple. Who's the best. So help us to save time besides, you know, the very portfolio they trained to show us and to see who is the best, because we don't have time to test on one person waste a month or two, and then go back and search again.
[01:04:06] So that's kind of a small piece. What we did. I know it's cost, so it's more of a content contest, I guess. Um, but that's what with it. And we talked a bit earlier about the concierge service and you know, when you go to. Uh, like, uh, uh, I wouldn't call free up a concierge service, but they do vet and some of these other places they vet and that's one thing they can help out with that.
[01:04:38] But when you go to, um, um, a place like, um, multi multimedia, um, Yani over there, and he goes out, he finds, he does everything that you need to make sure that you have one, two, three, you know, uh, outstanding people, but you pay for it. Uh, Tim Francis, for example, he has, um, uh, another, uh, it's a, it's a VA academy, I think.
[01:05:08] Uh, it's called the greatest system. That's it? And Paul actually just, uh, well, not just, but his, uh, his executive assistant now came out of that, but you pay. But you get what you pay for. Yeah, the good thing. So Tim's, I can speak to this. I have been like the biggest evangelist of the greatest system since I hired Jerry.
[01:05:29] Um, since Jerry has been with me, it's been two and a half years. Uh, I've given her three, two or three different raises. Um, and she just keeps killing it. She's an amazing, an amazing assistant, like amazing worker. So Tim's wealth, Tim's focus is executive assistants. So think of some, like you're, you know, you're running a company.
[01:05:54] Is this somebody that would be like your right hand person that has fills in all your weak points? Like that's what Tim Francis does and their fee last time when I used them, it was 4,000. It could be five or six now, but that is worth it in my opinion. And they do a phenomenal job. So I can't speak highly enough.
[01:06:15] Yeah. And again, you pay the price for that. Um, with Yani service, it's, it's nowhere near that, but they do the same as well, but Tim is at a higher level with that executive assistant. So, uh, anyways, I'm going to try to put this, uh, into the notes or if anybody wants to, they could just DM me and I can provide those services.
[01:06:38] I don't make anything from this. This is a no pitch. Um, room, by the way, we don't have affiliates. We're not trying to sell anything. Um, we just want to provide you with content. So, and at that note, uh, let's see, we've got two more people here and we'll just quickly go through that and then we'll close the room.
[01:06:57] How's that? And by the way, before we get to ANC it, um, we just wanted to let everybody know, Hey, if you liked what you heard today, this is, uh, this room is on every Thursday at one o'clock, it's always a new subject, always have new panelists stuff and we've got some great people speaking today. If you liked what you heard, please follow them.
[01:07:18] And once again, if you're coming up on stage, if you don't want to be recorded, let us recorded. Let us know. All right, Ankit. Welcome buddy. Hello guys, uh, norm and everyone in the panelist here. Thanks for hosting this room and providing a great content. Um, my question is, um, I do use, um, online jobs, pH and I have a in-house team, um, 3d motion designer, 3d animators, customer cares even employees in China.
[01:07:49] So I pretty much got the basics down and working very well. I, I trained my employees. Very good. We create SLPs and everything. So everything seems to work, work and fine, but where I am stuck at is now I wanted to scale my business at a rate at a little bit more rapid space. And what I mean by that is that how do I go and hire.
[01:08:11] Uh, or train and the top tier employees or the VA's, uh, uh, in a way where they could be a project manager where we can launch the products at a rapid space. Um, for example, uh, have them create a listings, understand how Amazon works, um, have them go through the launch processes and, uh, all kinds of things, uh, segmenting, uh, email list, stuff like that.
[01:08:37] And I do have access to a lot of training, um, you know, the helium tans and many other, uh, trainings available. But what I w where I feel stuck is, you know, if I hire a person and I feel like, you know, all those trainings that we have an access to, it feels like how do launch your product or start your business and things like that.
[01:08:57] So I've always afraid to, uh, show them certain trainings in a way and afraid that they might learn, uh, and spend some time with us and then run away and start their own business. So I can't seem to overcome this and, uh, and maybe not so much of a question, but an advice on how to overcome this and how to kind of hire people, uh, in a way.
[01:09:19] So I can, uh, source the products, create a listings A-plus contents kind of manage the team in a way. So we can kind of launch and scale at a rapid space because gotta take the company from, you know, um, after certain points that your reach, you just don't have enough time in a day. So how do I do this? It just feels like stuck for me forever.
[01:09:43] Uh, ample answers, simple work, 25 hours a day, but yes, sadly, that's what I'm going through right now. You know, I'm stuck at my warehouse and office in Stu and three in the morning. Yeah. So one of the things, sometimes it always takes more effort. And even if it's, if it's a process or if, if it's finding that right person, that's going to lead your team.
[01:10:11] So that leader, that senior PM Vandana is my senior PM. Manna is my senior, uh, or my operations manager, my other company, these people know their stuff. They also, because of the training that they have, they're the fulcrum, they're the liaison. They can train the others. So Vandana can go in and if we need people for listing listing optimization, um, launching rank content, she can hire a group.
[01:10:41] Or a person or give it to the right person, given the tasks. And they, they get trained through, uh, going back to these folders, by the way. So in our, we have, um, a project management tool called teamwork in teamwork. We have templates when we create a new task, like our launch strategy, we have 279 templates for launch strategy, but only certain ones are used.
[01:11:11] So if I'm using an influencer campaign or rebates or a search find buy, we'll take that, copy it. And then within that task, even if the person's not right up to speed in the, in the description task, we have a link. That tells everybody what to do. The link goes over to the folder. The folder has the policy and procedure, everything that they need to know.
[01:11:39] It could have a training video there, and then it has the templates. So you can't go wrong. The system is made now and get this sounds like it's Uber easy and it's not. You have to really go, you know, where do you need to train first? And once you do that, uh, there system was made so people can go on holidays.
[01:12:02] So our perfect scenario is if we can have our team worked four days a week, have a cover off and pay them for five days a week. If I can go away. And I do, I go away. I haven't since COVID, but, uh, prior to that, I could go away for two weeks at a time, not even call the office to check in. Not call because I know the only way that they're going to get ahold of me is with my urgent email.
[01:12:29] And if nothing comes in, I don't have to check or Vandana is covering things up. But, uh, anyway, that's what we do from our end. I don't know if anybody else has anything to say about that. I can speak a little bit to this. So, I mean, there's a couple of routes that you can go, you can hire internally, you have the rising stars that just go above and beyond.
[01:12:55] And, you know, I always like to reward. Anything that I see as outside the box, creativity, like problem solving, you know, ways for, for, for us to drive more revenue. Anytime that anybody comes to me with an idea like that, I like to see how I can empower them to make that happen. Um, because the worst thing that you can do is create a culture where there's no innovation and a culture that the only person that gets the credit is you are the boss of the person that taught.
[01:13:24] So it starts from the ground up there, so you can hire and promote internally. And it's kind of basically what we did with Jerry is, you know, she's been working for me or with me since he was 28. Yeah, 2019. I can't remember. Well, two and a half years now, and now she's essentially running, you know, she's the ops, the ops person over at the chat agency.
[01:13:47] Now one different thing that we did at oh, and bell littles. My role at, at BB littles was instill, you know, to some degree is marketing. I was CMO. So with that, I actually met somebody at a conference who is one of the most creative. She's just an amazing marketer. Um, used to work for Disney that the, the team that you worked on at Disney, they didn't touch a project.
[01:14:15] There was like six people on the team. It was internal stuff only. They didn't touch a project. If it didn't have a 25 million budget or, or greater, like she's amazing. And with her, um, she is now the COO at BB littles and she's actually a fractional CMO, meaning that she's, she runs, she does run her own agency.
[01:14:35] And, um, basically what she does is her agency has all of her people, they're all on her team. She then uses them for BB littles and with, with Lauren, um, she has an equity stake in the company. There's, we've negotiated stuff, you know, because she's that good. And so when you're looking at expanding and growing on those, those are the things that I would say, like there's a hand there's hand tasks and there's heart and head tasks.
[01:15:02] There's like the tasks that are just doing things. And you want to look for people that are leaders, uh, to put them in charge that had, that had the head in the heart that are going to be able to think outside the box problem solved for you. And with you take ownership of the company alongside you, alongside you, and really work to grow it along with your, you know, the vision that you have for the company.
[01:15:25] Those are the people that you're looking for. Um, you know, I feel like. I've, I've never built a absolutely massive company, but I have built some decent teams and I'm really proud of them. And that's just like the experience that we have is I look at, you know, what people are good at and I helped them do more of what they're good at and work to have them do less of what they're not good at.
[01:15:50] Ultimately. Thanks, Paul. All right. Last question, Pete, how are you?
[01:16:06] Sorry. All right. So I guess that wraps it up for today. So like I mentioned, just the, a little earlier, uh, if you like what you heard today, uh, please follow her, our panelists. Uh, we have this room. Every Thursday at one o'clock Eastern standard time. Every day we bring on a new experts, different topics, and hopefully we just provide pure content, no pitching.
[01:16:33] So, Hey everybody. Thank you for being part of our community. Uh, we loved having you here and we will see you next time.
[01:16:48] Thanks. Have a great day.
[01:16:54] Thanks guys. Thanks norm.
Hiring VAs | Ecom Weekly
June 3, 2021
Simple Sourcing | Ecom Weekly
[00:00:00]
Thank you for opening, Rachel. I didn't expect that. And apple lobby. Nice to see you again, norm. That's awesome. I think everyone is going to be in for an amazing treat today. I saw apple lobby speak a few weeks back and it was amazing norm. I think you may have heard this. He's one of, one of the top podcasters in the world with respect to selling online.
[00:00:23] He's done this for years. He's literally a genius and a good friend norm over to you. Take it away. Wow, Colin. Okay. Uh, that 20 bucks. Uh, I'm going to give you 40 instead. Thank you. All right. I just wanted to, uh, you know, welcome everybody to the room. Uh, it's going to be a really amazing show today, uh, talking about learning how to sell online, but how to save a ton, an absolute ton of money when you're sourcing and you know, it's not hype.
[00:00:58] I'm not trying to, you know, just, uh, build up your anticipation, but these are things that you don't hear about. We'll be talking probably about 10 different points. If you put any one of these into action, you'll be able to save money immediately. So, and I'll challenge anybody to that. If they don't make money or save money with these tips, just make sure you DM me.
[00:01:22] And we make sure that there's gotta be some mistake. And I want to also, uh, talk about awful lobby, so awful lobby. Um, he's incredible. So, uh, we met and I'll get I'll let him talk about that. But we met at, um, through an, uh, a friend of ours and I know a lot of sourcing agents I've been in sourcing for years.
[00:01:46] Um, but he blew me away. He came by and he said, you know, he's got some ideas that he wanted to shoot pass me. And, uh, you know, who is this guy? Well, This is a guy that when Amazon was just little Amazon, no FBA apple lobby was brought in to consult. What were his thoughts on building an Amazon FBA? He also works or worked with and built projects for another small company called Alibaba.
[00:02:16] So this guy really knows his stuff and he blew me away with the information that we're going to be presenting to you today. And if you have any questions, you know, please come forward. Uh, you know, we're willing to help. And by the way, this is a no pitch. Absolutely no pitch room. We don't allow it. If you're, if you come up on stage and you start pitching, we'll just cut you off.
[00:02:38] Okay. We want this filled with content. So anyways, with any more long-winded this from me. I have a lobby. Where are you, sir? I'm here. Hey buddy. Hi, Iowa. You set on you. Good. So, you know, I just, uh, uh, you know, talk to the last, uh, hour on, uh, your introduction, but if you have anything else, let everybody know.
[00:03:05] Well, thanks. Thanks for having me here. Uh, it's just, is there another importance of networking? Uh, it's really good to network, uh, link. I think the right relationship is everything in business. Um, so I'm really honored to have met you. Uh, Paul calling Rachel everybody. Uh, it's, it's been an honor. Uh, it's just very important for us to all network together and to, you know, have a really good relationship because you never know what somebody can lead you into or what somebody can help you with.
[00:03:39] So I believe this kind of group, uh, is just to help. We're not pitching anything like norm said. Uh, we just want to drop in some few cents on what we've learned, all our past failures or successes, what works and what didn't work. Uh, so that's what we'll be going through. Right, right now. Right. So, uh, that's, that's going to be very important.
[00:04:01] We're going to be also sticking in, oh my God. Failures. Yes. Yes. Successful fail. And we'll be talking too about how you can do that, especially in sourcing now. Um, we've also got Paul Baron up here and he's also another successful online seller, Amazon seller. And, um, you know, Paul just chime in at any time.
[00:04:26] All right. My, my, my input will be minimal. I deal with like 2% of logistics. That's all, that's all Rochelle. So if there's something that I'm like, oh yes, do this. But mostly I'm going to be, I'm going to be here learning because I don't deal. I don't do the logistics in our businesses. All right. Well, uh, hopefully you learned something down to it.
[00:04:50] Today's simple sourcing and these are sourcing really they're they're, they're sourcing, uh, tips that you're not going to hear from your average sourcing agent. So after lobby, why don't we start off with, uh, what's the first tip? Well, I'll say the first tape is, uh, when you're sourcing, especially from China and by the way, China is not the only place to source.
[00:05:14] There's a lot of countries coming up now. Uh, just because we're having so much issues with China's, it's given a room to a lot of countries like Vietnam, Pakistan, India, uh, uh, Malaysia, Indonesia. These are countries that are really rising up, but, uh, the first one I'll share is when you're sourcing from countries like China, try to pay in their local currency.
[00:05:40] Cool. So instead of paying in us dollars, like 99% of us do a and R and B, why is that? Well, because every supplier, when they're giving you their quotes in us dollars, they already built in the buffer into the currency exchange. Uh, so for example, when you're, when they give you a USD price, know that there's another 15 to 20% buffer in that price because of currency fluctuations.
[00:06:08] Uh, but if you look at the history of USD and RNB, which is the Chinese currency, if you look at the history, you will see that the maximum fluctuation on is probably six and a half percent. So the moment you're, you know, you're getting your quotes in RMB, or you're getting, if you're getting your coats in USD, you might be paying an extra, uh, seven, seven to 13% just in buffer.
[00:06:35] Uh, fees that I have built right off the bat. You can save, you know, just a few points, even if it's 5%, but, um, one of the things, again, like you said, it's hedged. So if you're paying directly, uh, you know, if it, wherever you're getting your fund or your product from, if you're paying in USD, it will be hedged now people.
[00:07:01] And I know, um, you've got this question before, cause I've heard you answer it, but what about my suppliers now? So I've got supplier a that I'm buying my product from. Can I take advantage of that now? Well, they, your supplier at the moment, you go back to your current supplier that you want to be paying in.
[00:07:20] RMB knows your you've just learned something. He knows you're onto him. So, uh, what you could do is to force them into it and the way we do it, uh, is to get another supplier, uh, source, you know, source from another supplier in RMB, and then use that rate to force your current supplier to also start accepting RMBS.
[00:07:46] All right. Very good. Hey, uh, just noticed something, Ray or Rochelle. Can you make me a moderator, please? I just noticed that I'm not, uh, all right. One thing I want to, um, bring up just to quickly reset the room. Uh, we were talking about sourcing today and a few weeks sourcing techs. Uh, if you have any questions, raise your hand.
[00:08:07] I believe we were, we're going to be recording this. So please agree. When you come up on stage that it's okay to record you and anybody on stage right now. Um, just, uh, if you are opposed to it, just let me know. Okay. So Paul, what you got to let me know whether that was the right way of doing it. Cause I am absolutely.
[00:08:30] What about being a moderator about recording and yeah. Being a, the being the moderator. So you're doing great, man. So the other thing that we should talk about, uh, after lobby is that sometimes, you know, by using your bank or. Oh, my gosh, using PayPal, you're killing yourself with extra costs, right? Yep. A foreign exchange bank use a foreign exchange bank.
[00:08:59] Um, you know, for those of you that know sellers funding, or if there's other banks out there for ex banks like Cambridge, um, there's a bunch out there. You'll find that you'll get an incredible break on, um, on your charges, on your fees. Yep. And, uh, CLS funding has a really good exchange rate. Uh, you know, if you're sending money overseas, uh, when you're talking thousands and thousands of dollars, uh, you know, sending any through your bank, uh, especially when sending foreign exchange
[00:09:32] It's a lot expensive. They probably have, you know, they could probably add up to 10% spread on your money. Uh, so your supplier will not be happy if you S if you lose almost 10% of your spread before it actually gets to China. Okay. And the other tip, now let's talk about working with the suppliers. You've you've, you've got the relationship.
[00:09:58] You're going out. You're sourcing Alibaba, 1688, a sourcing agent. Anyways, there's a relationship you've got gone out and you found your supplier, or you're trying to find your manufacturers
[00:10:14] okay. Of negotiating the power of cashflow. Can we talk about that? Yes. Yes. Uh, talking about. The perfect time to negotiate. Your price is major and it's very key, many, uh, new sellers, the, the, maybe the, maybe you discover your supply on Alibaba or anywhere you find your supplier. People already try to negotiate price.
[00:10:40] Uh, I don't think the beginning of your conversation is when to start talking about pricing. Honestly, uh, I've been very successful in getting really, really good price on payment terms. Uh, when I first developed a good relationship with my supplier and then. Price terms and price negotiations come after.
[00:11:01] Let me give you an example. So you meet this new supplier. You want to source some towels or something from this new supplier and you, you, you hit him up on Alibaba and she say, oh, I want to buy your towels. And you see so, well, the prices, you know, $2. And you're like, well, but I only want to pay $1 50.
[00:11:20] Well, in the mind of your supplier first is he doesn't know if you're serious. It doesn't know if you're one of those time-wasters, you know, he doesn't want to spend so much time with you. It's just going to be like, yeah, you know what? It's not going to work the best way to do it is if you reach out to a new supplier, they give you your PR, they give you their price.
[00:11:41] You just say, okay, no problem. Let's look at your samples first. Let's take a look at your quality, send me your samples. Let me take a look. First. You see the goal is to make you have the goal is for you to prove yourself to the suppliers that you're serious. And then the second is to make your suppliers invested time and effort into making samples, replying your messages, getting to the point of purchase.
[00:12:11] Now, when you've already proven that you're serious, you're about to place the order. That's when you start negotiating prices, it works every single time. One of the, uh, the points I'd like to talk about too is, uh, the packaging. So I very rarely let my manufacturer price the packaging because they're not prep package design, usually.
[00:12:40] And it's probably a lot cheaper to go out, get your package designed by a true package design company, uh, get it printed and a trick that, um, uh, we use is that we'll, um, we'll ask the supplier after we've negotiated the price. If they would mind packaging the product upwards or kitting and assembly and that's free.
[00:13:06] And if we can, I like to order, like if I'm ordering a thousand boxes, I like to try to order 2,500 or 5,000 because the price break, especially in printing is so cheap and the manufacturer typically will allow you to store for free because that means you're going to be, bring back more orders to them.
[00:13:29] Yep. Take advantage of that price point, negotiating that we should talk about. Well, um, there's a ton, uh, uh, negotiating. Um, let me touch on your packaging. And now we go into negotiating, uh, for the packaging, uh, when, when you're making your product, you know, your product has to be, to finally be put in the packaging.
[00:13:55] And like norm said, uh, your supplier may not be as packaging supplier because they only make towels. They don't make. Towel packaging. So in order for you to save more, you should buy your packaging from the packaging supplier, because that's what the packaging supplier does. Let me give you a real life scenario.
[00:14:15] So we're sourcing some school supplies and, uh, the person gave us a quote of a dollar 95. And I said, well, that includes packaging. She's like, yay. It's all inclusive. Eight 95. It's a good price. I said, so how much is the packaging? How much is the box in that eight 95? Then she went silent. I said, what if I provide my own packaging?
[00:14:45] And I ship it to you? What's the new price. She kept quiet. I'm like, what is the new price? If I bring my own packaging, she's like, well, well, it's a 25 cents. W w w you know, we'll, we'll credit you 25 cents. I said, you are you telling me your whole packaging is 25 cents. I finally found out, by the time I broke down their prices, they were charging up to it for my packaging.
[00:15:15] No, take out the packaging price. I mean, the cost, which is drop, it drops the product down from eight 95 to seven 95. And then I've had my packaging done for like 35 cents. So I was able to save almost, you know, 10, 15% just in the pricing of product, because I'm sourcing my packaging by myself. Yeah. Crazy.
[00:15:41] When you're ordering 200,000 pieces of product and you'll save 10%, it's a big deal. Even if you save 5%, it's a big deal. Absolutely. So just resetting the room for a second. If you love what you're hearing, if you like what you're hearing, don't forget to, uh, follow the speakers. Uh, the people aren't that are on the panel, um, you know, you can always reach out if you have any other questions, uh, more than happy to answer questions.
[00:16:11] We try to, I know apple lobby does. I know I do. I know Paul and Colin does, but you know, if you do have questions, happy to answer them. And if you know other people that are interested in sourcing, you know, make sure that you, uh, invite them into the room. Uh, this is such an important topic that doesn't get talked about.
[00:16:30] I mean, we hear the same old, same old about sourcing. This is stuff that most people don't talk about. So, um, after the lobby, yes, sir. Validating samples. . That's a simple one. Some people may have heard of that, but you can save a ton of money by bringing in samples. Why don't you explain a little bit about that?
[00:16:54] Well, your samples, when you are, when you are getting samples from the suppliers, just to see their work, you're their craftsmanship. Most of the suppliers want to charge you for the sample. Sometimes it's okay to pay for the samples is fine. But remember to tell the supplier that if I do order this product, I want you to credit me back my sample costs.
[00:17:21] So if they're sending you, if they're charging you 50 bucks, just to make you one sample or just to send you one sample, make sure that you put it into the performer, invoice that at the end of the transaction, I want my sample costs deducted from the order. So that's another thing that it would be nice to do, because if you're getting five, six samples from, you know, from suppliers, you should be able to get your money back.
[00:17:47] So that's one of the ways to get a free sample, um, promise to go back to the, uh, to the price negotiation norm. Uh, can we touch on it a little bit? Yeah, let's do it. So many people ask me how to negotiate prices in China. Uh, there are several ways to negotiate. Um, you, you, you know, first we develop relationship before we start negotiating prices, but when it gets to the final time, I mean the final, you know, at that point that you're negotiating your prices.
[00:18:22] I found out that the most, uh, effective way to negotiate your pricing is silence. What do I mean by that? So your supplier gives you a price. Let's say it says it's $2. You're about to order or your supplier states. It's $2 and you really want to buy that product for a dollar 75, or you want to buy it for a dollar 80.
[00:18:49] What do you do? The supplies that's but my boss, well, to me, the last price is $2.
[00:19:02] What you do is you tell your suppliers, they look have been sourcing from how the suppliers, the price that they're giving me is in the $1 50 range. If you can match that price, Dan, we should be fine. Guess what? The guy comes back and says, Nope, my boss tells me it is still $2. Maybe we might be able to do one 97.
[00:19:27] Well, you know what to do next, nothing. Just switch off your phone, cut off the conversation. Don't reply. Any messages with the supply? Just keep quiet. Don't do nothing. I'll many for how long. Sometimes I keep quiet for like a week or two, because your supplier will start getting impatient. Anytime you see, as you're quiet, it's gonna, you you're driving him crazy.
[00:19:52] It doesn't like quiet. So if you wait for you one day, two days, three days, four days, he didn't have anything for you from you. It's going to check up on he's like, Hey, uh, where are you? Don't say anything. Just keep quiet. Oh, well, uh, are you okay with our pricing? You don't say anything. Keep quiet. And then finally a magic, a magical thing starts to happen.
[00:20:21] Your supplier will start negotiating against himself. Because your silence is driving him crazy. It's going to be like, oh, okay. Okay. Okay. Okay. Okay. Okay. I think we can do it for 180. Don't say anything. Still keep quiet. Uh, okay. What about one 70? Keep quiet. Don't say anything. You'll be tempted to say something.
[00:20:42] Don't see anything. Just keep your quiet. And then when he gets to the kind of price you want, then you come back and say, okay, all right. Um, you know, because we need to make profit on this and we want to make our quality good. Uh, okay. Let's let's do it on one 70. Okay. That's how you finally get the kind of pricing you want without sacrificing your quality.
[00:21:05] And guess what? Uh, another thing to do to be careful about is when you're negotiating your price, especially if you negotiate a lower price, make sure you get a production sample, make sure you sign off on your production sample. That means they have to make you another sample that is going to look exactly like the production they're going to make before you send them the money.
[00:21:31] So Ethel lobby in China has been that, um, most manufacturers won't go into a losing relationship. I mean, if, if you do negotiate too hard, you might with crap, you know, gotta be a win-win to keep that relationship or the next person that comes in offering them. Um, That's I'm going to say a better customer, like, you know, like that.
[00:22:03] How do you protect yourself when you do that type of strategy? How do you know that? You know, it's a win-win and you're not just one sided. It's not a one-sided deal. Awesome. So, um, I call it a point of harmony. Uh, we have to remember, like you said, the suppliers here to make money. You, you want to make money.
[00:22:25] He wants to make money. He has staff. He has employees to take care of. He has a missionary, he has everything. So it has to be a win-win situation for you. Uh, you, you don't negotiate too hard. You get to a point when you're negotiating, where you're negotiating your price, that your supplier. Ew, Ew, Ew. Ew. Ew.
[00:22:47] When that, when you reach that point, when you, you and your suppliers, it's okay. Um, uh, if your supplier stops at one, let's say your supply stops at $1 90, even though you want to get to one 75 and it stops at one 90 or one 85, just go back to just reach out to them and say, look, I really want us to make a really good product.
[00:23:09] Uh, if 180 makes you happy, you're going to do a fabulous product for us. Okay. Let's do it. We know you're in business to make money. We also want to fund a good relationship with you. Let's do it. Because you're, the quality really matters both the price because you don't want him making a crappy product for you.
[00:23:30] Uh, so at that point of Harmonix is when your supplier or your supplier reps also says, well, you know, this is the best we can do so that we don't have to cut any corner. We don't have to, you know, you know, you know, play games with you. This is what we really want to do. Uh, you compare with other suppliers as well.
[00:23:48] If it is in the range, if other suppliers are giving you 180 to one 90 or $2 range for the quality you want, then it's still okay to settle at one 81 85 for the sake of the quality, because that extra 15 cents is not worth people giving you bad reviews on your website or Amazon or wherever you sell.
[00:24:12] Yeah. And I think one of the other things that you said that's so important. Is the production sample, um, signing off, getting that production sample signed off by you agreeing that this is exactly what you want. Um, these are the, the, this is the exact sample that the production should run by. And this is exact sample that your inspection company, which we'll touch on in a second, um, work with.
[00:24:39] So I think a lot of people don't, you know, don't do that. And, um, it's so important because, uh, I don't know about you and the listeners. I'd love, you know, somebody who's ever experienced this to tell us their experience, but the production sample, like with, with a supplier, a lot of times, and most of the time, this is Chinese suppliers.
[00:25:03] I find this with not everyone, but you've got this quality, um, The decrease in quality. So you'll have a great run, a great run, and then something will be skimped out on. And then all of a sudden you'll open up the container is like, what is this? Yep. Has anybody experienced that? I mean, I have, I, uh, I had that where I'll give you a great example.
[00:25:28] So we used to like five years ago make, um, uh, screen wipes and they would be in an alcohol packet and the container came in and our broker, Freddy, uh, Freddie, the broker, uh, did not do his job. He decided that he was going to go with this film on the inside and he changed and all the alcohol.
[00:25:57] Fandom, but we learned a heck of a lot. You know, we, we paid our tax and now that's not going to ever happen again. Um, I've heard so many people with Shopify stores or Amazon stores has happened too. Yeah, it's really sad. It's really sad. So one of the other things to protect that, let's talk about that.
[00:26:20] And again, please, we're open for questions, um, inspection, how important is having a proper inspection, how like the, the type of inspection and how much should people expect to pay. Well inspection. Uh, unfortunately inspection is a major, uh, is a good thing to do. It should be part of your cost of goods.
[00:26:45] Many people treat it as if it's a separate or optional thing. When you're bringing in products and you don't inspect it, you're sending a message to your supplier that you really don't care, whatever it gives you, because when you schedule inspection to, for your inspection company to go in and take a look at your product before they ship out, it's a way of telling your supplier.
[00:27:06] You're watching. You're watching so that it doesn't mess with you so that it doesn't play games with you. You really have to inspect your product before they leave. If not by the time your product gets to you. By the time you start spotting all the arrows under the defects on your product, it's already too late to get your money back.
[00:27:28] Especially if you're doing Alibaba trade assurance. They only give you a window of time for you to check all your products, to make sure that everything is good before you start filing a claim for, uh, for, for refund. And there are three types of inspections. I'll say three major sites. So the first one is, uh, a spot inspection, which is you did take your products.
[00:27:53] Randomly. The inspector goes into the facility or to the factory, and then it randomly selects different products, uh, to, to take a look at, to examine, uh, to, to, to see if there are any defects, uh, they do about 10 to 20% of your, uh, of your production. They, they pick it and check it. Uh, the second one is your full inspection, which they have to touch a hundred percent of all your products.
[00:28:20] We do this, uh, I see this done in, uh, jewelry, uh, when people are making jewelry, making electronics, uh, they do have a hundred percent inspection. That means they have to check and touch every single unit before it's packed. Uh, the third one I'll say is a production monitoring. Um, Some products by the time they package it into the packaging, it's too late to inspect them.
[00:28:47] Th th th th the, the, whatever the problem's already done. Uh, so, you know, I will advise for someone to do a production monitoring. That means that your inspection, your inspector will go into the factory while they are still making that product. Because if after they make it. It's too late to check for some defects.
[00:29:12] So depending on the type of products you have, uh, it would determine what kind of inspection you should go for, but please do not skink. Uh, what's the price of inspection. It could go from a good one could go from like two 60, uh, for the spot inspection to 60 to 80, roughly. Uh, and for the full inspection, I will say 500 ish, uh, for full inspection.
[00:29:38] And its, uh, inspection is calculated in man. They, so that means they will send one man or two people, uh, into the factory and they'll charge you for the whole day of inspecting the full, uh, manufacturing. Okay. Very good. Yeah. And expecting could be more, especially like on that a hundred percent. I I've seen the funniest inspection report because you've got a full report with pictures, sometimes videos, and they could be like, they could be huge.
[00:30:09] These reports like, um, 40, 50 pages is nothing, but the funniest one I ever saw was just recently where we, um, we had a client who made skateboards. And so, um, the person, the inspector had no idea how to ride a skateboard, but they had to learn how to make sure that they went left straight and right. And then the president, it was cause it was, it was hilarious.
[00:30:35] And then, uh, the funniest photo I saw was the, they've had a whole, like 300 pounds. So you had all these bags, I guess it was Sandra something. And. At the inspectors sitting on the top, it's somebody pushed you to go and look like it was a viral video from, um, you know, Tik TOK or something.
[00:30:57] I see Marsha, Marsha, Reese, how are you? Good morning. Good morning. To a lot of friendly faces. I'm seeing on my screen. I wanted to just give you, um, a real-world example of why inspections are so critical decades ago. I was one of the early manufacturers to go to China. And so we didn't have all the.
[00:31:22] Practices and procedures that are in place now. And I learned the hard way, how important it is to give visual aids to every workstation that's producing your product because they don't speak English. And I don't speak, I will speak a little bit of Mandarin, but not much, but I ended up having a product that was blister packed.
[00:31:48] And at one point I got a shipment that was going to a major us retailer and my, I didn't have an inspector yet, but my agent went over from Hong Kong, into Gwangju to check our production and found out they were putting all the blister cards on upside down. Wow, which meant we were going to miss our ship date when they had to redo all this work and the F here's also the importance of w several weeks ago.
[00:32:23] I heard you all talking about building a relationship with your, your factories. We had had such a good relationship, and I had done everything they had asked me to do and vice versa. So when this major glitch happened, the only way we could get that product to the distribution centers was via an airplane.
[00:32:46] The entire. Order had to be airfreighted over. And the factory stood behind the cost of that air freight. So it's just kind of an interesting decades old lesson that maybe some of our group here can learn from the value of helping your factory, understand what you want them to produce each step of the way and the critical importance of an inspector, because had that all arrived.
[00:33:14] Our DS of the retreat Taylor's DCS, I would have had one man ad buyer and all that got waylaid because thankfully my agent was kind of my inspector back in those days. Now they have much more formalized processes, but oh, it's so critically important that you help them make what you want. And I can remember one other example.
[00:33:41] I manufactured sidewalk chalk. And back in the eighties, my factory, it was like, it mentioned 83. I was one of the early women to have a factory in China. And I wanted mov and teal. Now who on this call knows what color mov and what color teal is. Everybody know what Kyo kind of a blue, green and Mav is kind of a pinky purple.
[00:34:06] Well, these people in Asia didn't have a clue what mob and teal were. So I learned how to very carefully, right. My, my BA my bill of materials, so that I used a Pantone color, then they could match it. So if you tell them, do their job, they really do want to please you, they want more business, but sometimes in our hurry to get things done, we aren't specific enough
[00:34:34] Marsha you're so correct. And also just building relationships. Is important too. Um, we really haven't touched on that today and we'll get to that another show, but building your relationship overseas, actually flying out and meeting and breaking bread is so important, um, with your manufacturers. And you'll see that it'll come back.
[00:34:56] Tenfold. I used to fly over every six weeks and that's a hard grind, but it was critical because we were, we were growing so fast and we were putting so many elements into place if I had, and we ended up with factories, uh, three of them, one in Shenzen Guangzhou and up in Sharman. I had to be there then.
[00:35:20] And that's how I built those relationships. And I've got a funny story. If you've got time, one night I was having dinner with these seven Asian men called the seven brothers and only one of them spoke English, but they all have English names as the it's very common there. And the one gentleman just kept staring at my face and it was a little unnerving.
[00:35:42] And finally, I asked one of the brothers that I was speaking with. Why is the brother looking at me? I never broke gaze. And he said, he reads, faces like people read palms. And then this man started to tell his brother exactly what he was reading in my face. And it's like giving me a Palm reading. It was the most bizarre dinner, but that's how we built great relationships with our Chinese people.
[00:36:09] I still have relationships with many of them and this is what, 35 years. Wow. So thank you, Marcia. And if you're not following Marsha. Make sure you do. She's a serial entrepreneur. She's had over a billion dollars in sales. She is one smart cookie. So check her out follower. You'll you'll every anything she says.
[00:36:33] I, I, you know, make sure that I follow. So, um, anyway, uh, we got four other points that I think are going to blow you away. We've we are saving the best to last, but I see that we do have two other questions. So say what's your question.
[00:36:51] Uh, Mike, uh, I have an observation. Um, you can depend on inspection company a hundred percent. I have seen with my own, I expect a good price, $200, or they call lavishly fed and entertained in the factories. Sometime you cannot even depend on those inspectors who go see or inspect your product. Sometime if you have a big order is best to fly in yourself, build again, build a relationship with factories, fly in.
[00:37:26] And if you have huge orders, be there, just, just make them feel that you are connected with your product. And, you know, and I used to fly in every two weeks and that's how I build relationships. So I don't trust, uh, in a spectrum all the time. That's that's, that's all I want to add, you know, that's um, that's a great point.
[00:37:52] I do hear that there are companies. That are out there right now, like mobily. Um, they're a great company. Um, we've used them. Uh, they have, uh, they have a pretty good, uh, uh, protocol or workflow that ensures that this doesn't happen. And if it, if it ever did the inspector would be gone. Uh, I know, uh, like even with AFA lobby, the way that I know he doesn't have inspectors, uh, but the, the, the way that they're hired, it's outside of, you know, the norm.
[00:38:28] And a lot of the times, uh, this brings me to another point, is that never, ever let your manufacturing facility, uh, hire the inspector? Because I think that'll be, that's very easy for that to happen for them to get bribed or they're just, yeah, they're on the take. So thank you for your questions. I eat. All right.
[00:38:50] And welcome to the stage. I hope I'm saying this right. Re ran a qua. Hi guys. Yes. That's a AK. Ronnie rose. Yeah. Ronnie rose. You can call me if you want. So I have about three questions, three to four questions, and I know the answers are very short and simple. So I'm not going to take up a lot of your guys's time.
[00:39:12] Like the first question that I wanted to ask you guys was like, when you're sourcing the products in other countries, how do you buy that in the country's currency? Cause I was on 1688 and they required you have a bank account with China and I don't have, okay. We're going to get to 1688, which is somebody would come up with that.
[00:39:36] That is one. Okay, well, we'll talk about 1688, but the easiest way to make sure that you have, um, currency work with a, uh, for like a foreign exchange company. Um, and what, like, for example, uh, if you go to, um, sellers funding.com, they have nothing to do with this room or anything. It's one that I've used, but when you sign up for an account, you can get, I think, up to 21 currencies and, uh, you could deal in China.
[00:40:08] Um, there's some forks for an exchange that won't allow you to deal in China, but probably the best way to deal. And, um, don't go on 1688 and 10 reasons why in a second, right? And th the, uh, the other thing I wanted to ask you, cause I I'm an Amazon sellers too, and I had success doing both the MBA, you know, fulfillment by merchant, also the fulfillment by Amazon.
[00:40:35] So like, do you guys prefer doing the FBA versus me fulfilling the customer's orders? I'm going to get by and heard from Paul Baron. And, uh, you've heard a lot from me and off the lobby. So Paul take that one. Yeah. Can you, uh, quickly restate it just so I can make sure that I don't go too long. Okay. You got all this.
[00:40:56] Okay. Do you guys prefer fulfillment by Amazon or fulfillment by merchant and why? Right. Oh, fulfillment by Amazon a hundred percent even though they screw stuff up. And let me give you some, I know this is about sourcing, but no, you're fine. They still like with fulfillment by Amazon. They're like Amazon is going to screw stuff up, even with like the amount of stuff that they screw up.
[00:41:18] Like we're in the middle of. Checking 5,500 units because they mislabeled five so far, we found five and they, we had to pay 25 cents per piece for them to ship back to us. Now, even with all of that, you know, we're losing thousands of dollars every day in sales, even with all of that, I would still go with FBA over FBM.
[00:41:40] And the reason is one primarily FBA ranks better in search. Now we saw some fluctuations last year with COVID, uh, supply chain issues that, um, FBM listings were ranking decently. And we weren't seeing that much difference between FBA and FBM, but we are starting to see signs that it's moving back to normal.
[00:42:01] So for that reason alone, I would S I would choose FBA. The other reason is I don't have time to ship all those packages. We get in our busy season. We're doing thousands a day. I just don't have time. I don't have the time desire patients, anything space, you name it. Amazon really is good at fulfillment.
[00:42:24] So I would definitely go FBA. Okay. This is the last, last thing, Norman. I'm sorry. Let's the last one. So, um, I was looking on like Proctor and gamble and Unilever effort led lever to get products from them. Right. And being that I don't have enough cashflow or enough money to buy it from them. I was wondering if there's any us suppliers that I can source from that make those, that, that, that they are suppliers for those companies.
[00:42:49] That, that was the last thing I want to pass. I don't know if you'll get the exact suppliers for those companies. You can definitely source, um, Google for, um, for like bottle battlers or labs or, uh, people that are, um, uh, creating or manufacturing, uh, beauty products, supplements, stuff like that. Um, I don't know of a direct way to find the exact source for, uh, something proper Proctor for Procter and gamble.
[00:43:22] I mean, if anybody does, uh, just let us know, but, uh, unless, you know, apple lobby, well, it looks like is going to wholesale way. Is that true? Yes, that's what I was preferring to do or drop shipping in the beginning, but really I prefer yes, the wholesale way and the being that I don't, I'm not, you know, you have to get a truckload, like a half of a truck load or 300 cases, and I did not have that type of money, so I have to start small.
[00:43:48] So yeah, I see, uh, sales reps. There are some nationwide sales reps for these big companies. Just don't know where the, her on the digitally. Uh, but I do know, um, these, sometimes they call some of them jobbers, J O B B E R S do, is they go and grab a bunch of, uh, of these products, especially the ones that are like eight months before expiry date or six months before expiry dates.
[00:44:21] I knew some guys in New York, they were doing like 70 million a year, doing all these special requests, talking about it. Uh, but what, what I heard them do is they just go to CVS. They tied in with all these Rite aid pharmacy, and all these people that want to discard all their PR. They want to sell off these products that are going to expire in six to eight months.
[00:44:46] Go ahead and grab it. And this sell it really quick, quickly on Amazon, because Amazon is also very experimented sensitive. So very, very careful when you're buying in bulk like that so that you don't buy stuff that might expire really quickly. Yeah. Because I would go on Amazon. Right. And I'll go on my Amazon seller app and I would look for the top sellers.
[00:45:07] Right. And then you see these brands and then I'm like, you see about eight sellers or something like that. So I'm like, how do they get, how do they get their product? Because I know. Yeah. So that's my research, Procter and gamble, or I'll look on the back of the product to see like who manufactured it. And then I Googled it like that.
[00:45:25] So I'm like, there has to be a way where I can get the product without going through them until I'm ready. You know, we're going to have boom. Um, not this week, uh, might be about two or three weeks from now. And I'm probably going to have the leading, probably the number one wholesaler for all of Amazon.
[00:45:45] So, um, equal, you know, please stand by and, uh, uh, it will be posted, uh, you know, every Thursday at one o'clock. So I know it's not going to be next week, but maybe within the next two to three weeks. Okay. Thank you. You're welcome, Tara. We're going to hold off on the question just for a second, because I want to get through another, uh, tip here.
[00:46:07] We've got four left and the next one I want to talk about, um, after lobby is the pricing. Yeah. So the difference between fob and explain fob, and then what's what's fob versus X works and how much you can save. Yeah. So when you're sourcing, uh, outside of, you know, the U S or wherever your home country is, uh, you have pretty much two major pricing that the suppliers are going to give you.
[00:46:39] The first one they're going to push to you is an fob price fob means free on board. That means they will pay to get your products to the, to the China port. Okay. Um, if you don't ask for XYZ price, they rarely offer it. But what prices is really the best what's an X work, or they will call it E X w a X works price means I want the factory.
[00:47:08] I mean, I want the factory direct price. I will be responsible to grab my products from your factory and take it to the port by myself. That's the difference now? How much can you save? Remember the first rule is you must ask for X work price. First, do not ask for fob first. I I'll tell you and why now, so X, what price means the, the, the, the factory direct pricing without having the cost of shipping your goods to the Chinese port and all the domestic transportation.
[00:47:48] So what's the difference in how much can you save? All right. So let's say you're buying, I'll give you a real life scenario. Uh, a product was about a dollar 50 a fob. That means the factory is responsible for, you know, taking it to the port for us, putting it into the container, loading it and taking it to the, to the Chinese port in Shenzhen.
[00:48:12] Um, so we say, you know what. Okay. What if we are, what if we want to arrange the local delivery by ourselves? What if we just want to pick it up from your factory? Forget about you helping us. We want export price. You know what? They don't want to give it. They say, well, we only want to do fob. Why? We, we, we, we want to be responsible for our own shipping of our products.
[00:48:36] Why are you hiding the price? Guess what? It was about 40 cents cheaper. Now somebody would say, okay, a dollar 10 to a dollar 50 does not so much for them to transport the goods for me onto you realize that we're shipping 400,000 units of that product. How much is 40 cents savings on a 400,000? It's a lot.
[00:49:09] And okay, so now let's break down the price of actually transporting that those goods from the factory to the port, it was less than $1,500. So I was supposed to pay a dollar 50 times, 400,000 units, F O B. And if I went to take control of the, of the goods and transport it by myself, it was going to be a dollar 10.
[00:49:36] So 40 cents, times 400,000 units versus spending $1,500 to transport it by myself. It was a huge savings. Huge. Very good. So, yeah, as you can see, just by doing something very simple, you can save a ton of money. Oh yeah. Oh, um, Ronnie rose. Was it okay for us to record you? Yes, that was fine. Okay. Perfect. Tara welcome to the stage.
[00:50:07] What's your question. Hello? Hello. I really nice, uh, clap to the, I just happened to be joined it. So I worked, uh, for my basically entire life for world bank and ADB projects. So I'm new to the, um, small business market. And I have a three questions. First was I know that the study research shows that a lot of newcomers in a small business startup business, they are coming with all types of products, but how, in the, what extent.
[00:50:50] Does the small businesses consider environmental issues. For example, packaging, is that our packaging, uh, having the plastic, but pack with that, um, paperback, right? Or is that of a manufacturing? Let's say a plastic toothbrush, but over that to choose bamboo toothbrush, or those can have initiate initiates, how does small business really considered that?
[00:51:21] And the second one is, uh, for the economy is really we're giving money to China. Right. But how. Too sweet swift that to our market in us, or at least to diversify that what is the second or third options next to China, which country can be our next supplier would competitive price offering. Yeah. So that will be the question to question.
[00:51:55] I think that's and laugh. Thank you. One of the things just anyways, um, is that small business entrepreneurs, people starting small shops on Shopify or on Amazon are very environmentally conscious. They're the ones that are trying to make the change. They're the ones that are asking for recycled products or wood, or trying to make the difference.
[00:52:25] Uh,
[00:52:29] probably. And I have no figures, no stats on this probably way more than any of the larger corporations. So I think that's one real plus with dealing with small businesses and entrepreneurs that they are trying to do that. Do you have, do you see any of that F lobby? Yes. Yes. Um, and, uh, you know, she gave it a plastic tube brush versus the, uh, um, the bamboo to brush.
[00:53:01] Um, so I think that, uh, it goes back to product research. Uh, Tara, um, I believe you have to look at your, uh, demand and, uh, once you know, what the keywords people are actually, uh, demanding for, uh, it would help you as an entrepreneur, just starting out. It will help you shape what kind of product you go into, uh, and then put your innovation into it.
[00:53:34] If, if I understand your, uh, your questions correctly, right? So, you know, uh, nom as a branding expert, uh, you know, he always teaches about, you know, being different. If you want to be really successful selling anything online, you just have to be really unique and different. You can take a very simple idea and put your own spin on it, put your own unique feature on it and, and you'll see your success rate will be really, really high.
[00:54:05] Um, second question, uh, it's really sad that, uh, what's going on in the world today, especially, uh, with the trade wars and everything going on. Um, I do believe that the rising stars, uh, in, in, in the global grade, uh, will be Mexico, Canada. Uh, do you S in case people don't know that you could source so many products in the U S I have a, I know a branch, they do, you know, millions and all these products they sell from the U S uh, these are products that many people don't even know what's manufactured in the U S um, I do make a lot of products in Canada to bring for, for, for, for brands.
[00:54:53] Uh, Malaysia is a really good place. Uh, Indonesia, Vietnam. Uh, really good places, Pakistan, India, uh, rising stars, and they could be a major contender, but China to be, to be honest, China as cornered a lot para uh, we really have to be honest with ourselves here. Uh, so many things have been controlled by China, but I do feel that maybe 10 years time we'll start to see a major, major shift it's shifting already, uh, because of all the shipping prices of all the, you know, uh, inconsistencies.
[00:55:31] But, uh, I mean, I don't want to label China as bad, uh, because there are really, really great people, great suppliers in China and we evolve. We are the order from China, but I do see a rising stars in those countries that I mentioned. Yeah, I'm not labeling and Channing in any ways, but I just. The big picture wise, because one day those small startup companies so-called today will be giant companies maybe in five years, 10 years.
[00:56:02] So, yeah. So in current economy, even though we started started with a slow, with a small name, we should see in a foresee future, which we should have a vision that, okay, what if my company really grows? Right. So how am I really contributing my own economy in us? How we are, how am I, am I really bringing value or benefit in my really creating jobs?
[00:56:29] In my own economy, there has thousands of thousands of people are unemployed and jobless. Whereas, you know, we are just for our profit, we are. Flowing are all our assets to outsiders. So I really want to just point out that keep that let's keep it in our mind. And that's in some way, you know, at least maybe half of the products or, you know, some type of products can be manufactured in us or at least started with China or in Asia.
[00:57:09] And then slowly it divert to our current economy. Because I believe that in some states, especially in the mid mid, uh, area states do rough, lot of managed small business that would like to manufacture in us, but they just don't know, have to find we are in the final. I talked to find startup companies that are willing to actually negotiate with them.
[00:57:38] So. Yeah, one day we will become
[00:57:45] question and hopefully we were able to answer it. We've got just a couple minutes left and questions have been cut off. I'm going to get to Jose and Ruben, but I really appreciate you coming on to stage. And I do have a couple of other quick topics. We might run a little bit over today, but we're trying to keep it to the hour, but, uh, APHA lobby.
[00:58:08] This is a big one. Oh, you're you're very well, thank you very much. Uh, are you okay to, um, are you okay to be recorded? Oh yeah. I'm okay. I'm dyslexic. So I asked you at the end, thank you, HS, compared to, or versus HTS. Why is that so important? Okay. So in case, uh, uh, some of our listeners today, uh, you have never imported any product before you're just in the process.
[00:58:43] It's okay. Uh, so we want, I want to define some to, uh, uh, uh, terms for you. It, one is called H S and the one, another one is called H T S H T S is called the harmonized Tyree, uh, system. Uh, it's pretty much, uh, it's, it's a set of 10 numbers that are assigned to every product in this world. Every product you're bringing into the U S uh, has an HTS code assigned to it.
[00:59:19] Before, they can let you bring it inside. Now when they bring it inside, you have to reference this HTS code so that the government, the us government can tell you how much duty you pay on this product. Now, when people are researching and sourcing for products, they want to sell online HCS or your customs is the last thing on their minds.
[00:59:44] They never, never realize that they're going to pay customs when they bring their products in. And these rates could be as high as 25%, some as high as 35 or 37%. Uh, when you are bringing it into the country. So many people don't realize they will pay customs. So please know that you're going to play us customs, where you're paying, when you're bringing goods into the U S now, how can you, you pay less if you do not use the right H T S code.
[01:00:19] You can get charge, hopefully excessively, and you're going to lose a lot of money. Now, when you're talking to your supplier in China, nine out of 10 times, they will give you an H S code. Not an HTS code. You have to make sure you convert that to an HTS code because HS code doesn't work in the U S it works in Europe and other parts of the world to bring goods in, but the U S government uses H T S code, right?
[01:00:54] So when it, when your Chinese supplier gives you an HS code, make sure you speak to our next part, your broker to correctly classify your product into HDS so that you can save a lot of money. Sometimes your duty may be 0%, but if you're using HS code instead of an HDS code, you might be paying 25 to 30%, even more.
[01:01:15] I've seen it happen over and over again. So when you're bringing your goods into the U S make sure you. Correctly classify. Now, how do you classify you? HTS code is based on materials is based on application of your product is based on your content of your product. So if you're bringing a magnet in as a sip, there's a, you know, it could be, uh, if you bring in a blank magnet name, it could be 25%, uh, that you're going to pay in U S customs.
[01:01:45] But if you're bringing a printed magnet in it's 7%, but if you're. Customs guy is not well vast in HTS code classification is going to say, oh, what's your product? You say, oh, it's a magnet sheet. Oh, that's 25%. And then, you know what, you're, you're bringing in a product with 20,000. You're going to have to pay 25% on top of that to bring it in.
[01:02:13] But if your customs person is really good, it's going to say, who, what kind of magnet are you bringing? Who I'm bringing, uh, a magnet, you know, uh, for, for little kids to play with, or for little kids to put on the fridge or a little kids to put on the wall. Oh, is there anything printed on the magnet? Yes, we have some nice flowers printed on the mango.
[01:02:36] That means it's a printed magnet. It does not. Uh, it can, it shouldn't be classified under the magnet anti-dumping law in the U S so it's only 7%. The difference from 25% to 7% is huge when you're bringing in a lot of goods. So HDS code is a major, major thing to consider when you're bringing goods into the U S yeah, that's probably one of the biggest money savers, you know, especially, uh, being able to, uh, that 25, that 25% savings I had, um, I sell soap and I had no idea.
[01:03:15] I thought I knew this stuff and I was paying a 17% tax, uh, bringing it into Canada. Uh, we looked at it and, uh, found out that I could bring it in. True. You can't lie about this stuff, but it was a Castiel soap, which was at zero. So, um, I had it as natural soap. So something to, you could save. Thousands. If not tens of thousands, just changing that HTS code.
[01:03:41] Now we do have two questions we're over time. Um, we'll uh, we'll just make a quick, I do have one more point that we'll bring up at the very end. Um, Jose, welcome to the stage. Hello, Norman. Hello off lobby. This has been great. I I'm crazy with all the information you guys are giving. This is new for me. A lot of things I've been in 40 for quite a while, but I, everything I import is DDP terms.
[01:04:11] So I basically don't do anything of that because like the H the forwarder does everything. So now I'm guessing shit, should I be doing more of these to save money? And I think the answer is yes, but I have to look more into it. So just, uh, you mentioned something about getting the X works price, uh, and not the fob.
[01:04:32] Well, how, how do you recommend to get it? Because if they don't want to give it, like I'm currently buying everything, every product from one of my suppliers, I'm buying fob. Uh, but I guess that if I asked for the experts price, they will like put a higher price than it would be. How, how have you managed this kind of, uh, uh, issues when, when you're, when you're asking for, for the, for the X works price?
[01:04:59] Well, uh, that's a good one. Cause a, uh, the way I've been able to handle it is to go to another supplier and get the pricing in X. What is supplier that I've never dealt with before? And once they give me a next work price, I take that price and go to the current supplier and say, look, I'm about to switch my order to this new supplier, giving me X work.
[01:05:20] You want to match it? Or you want me to take my business away? Well, okay. Okay. Sounds good. Yeah. And, uh, and, uh, is it, is it okay like. Aye. Aye. Aye. I've always shipped everything with DDP terms, because for me it's easier. Like, is that, is that the okay way to go? Or should I start doing like some of the job to save more money?
[01:05:48] Well, DDP just means that you're prepaying your duty. It's including your duty. Uh, but we just talked about HTS codes. How are you sure you're paying the right duty rate? Yeah. Now I'm not sure. I have only an HS code and they thought it was okay.
[01:06:09] So now I'm going to, I'm going to ask for the HTS and see. So what I have to do is ask for the HTS and tell my forwarder, Luca, how, how is the price effective if I, if we do it with these HTS, is that right? Yeah. So find a good broker that can, uh, give you the correct. H T S code and then give it to your broker and say, use that using this HTS code for me to clear my goods, you will see that you will save a lot of money.
[01:06:36] Okay. Jose, I would, uh, DM, uh, apple lobby afterwards. I'm not saying that you'll do this for Jose, but since he asked off the lobby, why don't you see if you can save them some money? Yeah, I was, I was trying to DMU, but I didn't see like a contact contacting your, your profile, but w if you can tell me, or if you can DM me, uh, if you don't want to give you a contact that way, I don't know.
[01:07:04] I don't. How does that work? Normal. The grandma, Bobby, if Jose, if you wanted to contact, go ahead and I'll forward it over to AFA lobby. And, um, he'll just see, we'll just see, uh, what we'll do is we'll report it back. Um, you know, if we were able to save anything or not, But, and this is not a pitch. We're not doing anything.
[01:07:26] This is just a, Hey, let's just see this as a, as an example. So we're gonna move on. Thank you. Uh, Jose Rubin. How are you? Do you have a question? Hello? I see. Is everyone. Uh, let me say, thanks. First of all, just from the time I've been listening, it's just a ton of information here and I'm taking notes. Uh, my, well, my question is I started a startup printing business, specifically focused on Christian t-shirt apparel.
[01:07:55] And, um, I got a website now and I'm making some sales, but to be honest, I'm not, I'm not performing where I would want to be. So my guess I seen the title learning, sell online. My question would be, uh, what, what would you suggest currently? I'm buying at the wholesale price in downtown Los Angeles. I live in Monrovia, California, so it was close enough for me to drive and just pick up my garments there.
[01:08:22] And then I, you know, I sell them.
[01:08:26] Is there any suggestions that you could, you know, help me or point me in a direction rocket optimize profits or my sales online Rubin? Um, that is a, another rabbit hole. Um, we will, how about this? I'm writing it down right now. Uh, we were talking about, uh, um, with, uh, who was it? We were talking to somebody earlier about wholesale.
[01:08:55] Um, got this down and what I'm going to do in the next two minutes or so is, uh, you know, uh, ask about or tell you about some topics that'll be coming up, but that could definitely be one how's that.
[01:09:09] That'd be cool. Yeah. And I'm trying to follow the club fruit for whatever reason. It's like, oh, there it goes. I got it now. Cool. So I'm able to, I'm already a member actually. Okay, cool. So yeah, whatever you can help normally. And I appreciate it. Thanks, man. I'm looking into looking into it and again, for sure one, while we are Rubin one quick thing for Rubin, uh, Reuben, it looks like you, uh, you're making like a screen printed t-shirt, is that what you're making?
[01:09:40] I actually invested in direct to garment printer, so it prints directly onto the garment and it provides a really mover and softer feel and it just looks really good. So, uh, do you want to be buying your supplies? Are you, do you want to be importing or buying your supplies from another supplier so that you can save on printing supplies?
[01:10:04] Is that what you're looking at or just to sell your, how do you sell your t-shirt on online? Is that which of the w w I guess the question I'll fill out, either question was of a two-fold nature, I guess part one. And I apologize, cause I know we're limited on time, but the first part of the question was, is there a way to optimize or get a better price rather on wholesale?
[01:10:26] Um, right now I'm buying at the wholesale level in Los Angeles, um, from, from a family owned business in downtown Los Angeles in the, in the garment district. And then the second part of the question was really how do I, you know, uh, you know, maximize my sales or, you know, my selling potential on online with my website.
[01:10:47] It's a tough one. Uh, right now after the lobby, um, we, we have to close the room. We're running about 10 minutes late. We'll have to get back to it. And we've got, um, one other thing I wanted to touch on briefly, so sorry for having to cut you off. But, um, I wanted to stick to the topic today and we are at the very end.
[01:11:06] And I think that this is the killer point that if you're not doing, uh, this will save your butt one of these days. And that's, what are the proper documents, the documentation that are going to cover your butts and there's four different types. So, first of all, a lot of new sellers when they're either dealing with or finding, um, uh, suppliers overseas, uh, will work with email.
[01:11:35] Email is not a binding contract. Email is just, you know, it will hold nothing up in court. Um, you can get, you can get killed, does just put it that way. Um, and that's the polite way of saying it. The second thing that a lot of, uh, at least in north America people do is they create POS is, are comfortable to north Americans.
[01:12:00] Uh, they mean squat in China, so you can fill out a PO and a lot of people do, you can put your information in and, um, by the way, when you're doing a PO in China, you should have it in Chinese. Um, and the reason for that is, uh, many, if it ever does go to court, um, even though it's not binding, uh, but if it does go to court because it's an English, it's sometimes thrown out because of interpretation.
[01:12:29] So, uh, having it in Chinese is one thing, but keep in mind, it means nothing. It's not a binding contract. The binding contract, the sealed binding contract is in a proforma. And if you do have information on your, um, on your appeal, transfer that over to your proforma and it should have all the details, every little thing that you can imagine.
[01:12:56] So, you know, the dates. Um, the production sample, the sign off and you put down something like it must match the production sample. Uh, it must pass, uh, inspection. What about defect rate? Let's say that you're selling on Amazon or selling and you know, you've got a 4% defect great where it, 1% is, um, acceptable.
[01:13:20] Well, you put that on your proforma and, you know, must credit back. So if there's 4%, you get 3% back credit on your proforma. The other thing, uh, is to make sure, well, the pricing is there. Of course. Um, and oh, uh, mold molds, who is the molds, right? You put it on a PO, forget it. If you put it on a proforma, then you know you on the mode molds and off the lobby, you brought up a great point.
[01:13:53] Um, just before the call, we were talking about that and tell us about that point. Yes. So, um, make sure your proforma invoices signed and sealed by your Chinese or your supplier. Don't forget about that. They have to put a seal of their company on that performance invoice that, that, that keeps them binding.
[01:14:12] Uh, but what norm was saying for me to share is so many people when they invent or they have an idea and they're developing their ideas in China, they go to their suppliers and they're texting, or they're chatting with the suppliers and say, Hey, you know, I wanted to use an aluminum and I want it to be this way.
[01:14:31] What do you think any time you're asking your supplier for his or her opinion, you are putting yourself in a very, very, very bad spot. Please. Why did I say that if your supplier contributes one way or the other in your product development, he is legally a core invention and he can legally patent trademark.
[01:15:07] Okay. Copyright that idea in China because you co invented it with him. So do not fall for, you know, letting your supplier contribute in your innovative product design. Another thing is many suppliers would say, oh, the mold fee is going to be $5,000. We'll help you pay. Don't worry. We'll pay it for you.
[01:15:30] Don't fall for it. Do not let your supplier pay for your mold if they do, they own it. If they own it, they own you. They own the product pretty much. So, yeah. Make sure you invest in your mold and put it in the performer invoice document that the mold belongs to you and you can take it wherever you want to take it.
[01:15:56] Okay, well, thank you. I have a lobby. You're welcome, sir. That does it for today. I want to, to thank everybody who, uh, helped moderate today. Paul Barron, Colin Campbell, Rochelle lobby, and Avalara. You came with some incredible information and these are the types of, uh, Topics that we want to bring to this room every Thursday at one o'clock.
[01:16:21] So if you liked what awful lobby was saying, please follow him. Uh, he is an incredible guy. Um, if you wanted to check him out, uh, I believe at the lobby you're on Facebook, correct? Yes, I am. Okay. And, um, all right. And I wanted to thank everybody who came up and ask questions. Hopefully we answered them.
[01:16:41] Okay, next time we want engagement. We want to build a community. You know, we can't do this without you. So please invite whoever you can over to the room next Thursday at one o'clock. Um, if you'd like to hear more from me, my name's norm Farrar. I have a podcast. We don't sell squat. It's a no pitch, no Lamborghini podcast.
[01:17:01] It's called lunch with norm. I have it every Monday, Wednesday, and Friday, we talked to you about how to become a better online seller. How to maximize sale and optimize your listings. So, uh, that can be, um, on Facebook, Instagram, and, uh, uh, what's the other one. YouTube. There we go. So buddy, and have a great day.
[01:17:22] Bye everyone.