22 year old in college with a million dollar business. Ask me anything!

[Jmadd95OE]

Hey everyone,

Happy to join this amazing forum. I wanted to introduce myself by answering any of your Amazon FBA/Vendor, Facebook Ads, Instagram, or Ecommerce Questions.

Introduction:

I'm a 22 year old about to graduate from College with a million dollar business. I spend about 60 hours/ week working on my business, along with getting my degree. I do about 50k on Amazon FBA, and I also sell wholesale to other amazon companies, and Amazon itself (1P seller). I'll provide proof so you know I'm not Bsing you guys! The product that I sell is something that my Dad has created and I do all the marketing for it. We are currently going into Retail Stores now to with it. In about 400 currently.

My experience:

-Amazon FBA (Approaching 1 Million, on one revenue stream alone)
-Instagram (Over 20k Followers)
-Facebook Ads (spent 100k on advertising)
-Shopify
-Retail Stores and Distribution

Why I'm Here:
I'm here to network and to learn from other entrepreneurs, marketers, and ecommerce experts. I'll help you and you'll help me.

Ask me anything you want! I'll give you my advice... Shoot!!

 

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[Vigilante]

Hmm,
You're selling it online already, buy you can't say what it is? I'm not trying to get any details on it. Just curious if the industry is something new, niche, innovative, or if your product is simply a better mousetrap.

It's literally none of your business and not relevant to the thread. You are missing the forest because of all of the trees.

He doesn't owe you an answer to satisfy your curiosity. It doesn't matter what the product is.

Focus on process.

 

[Iwokeup]

Hmm,
You're selling it online already, buy you can't say what it is? I'm not trying to get any details on it. Just curious if the industry is something new, niche, innovative, or if your product is simply a better mousetrap.

Dude. It doesn't matter.

It doesn't matter.

The widget or industry DOESN'T MATTER.

The execution and the processes do.

Stop asking these types of questions lest you be labeled as someone trying to steal or reverse engineer the OP's product.

 

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[Jmadd95OE]

Boom!

Congratulations - I'm getting into FBA so what's the best way to ranked quickly? I uploaded a new product but it doesn't have a BSR yet and I've ran PPC ads to it too. I've also heard of people running external traffic like FB to a lander first.

Like you I run a lot of FB traffic to my Shopify stores.

What are your thought on this? Thanks.

Best way to get ranked is a giveaway. Make sure you don't ask for reviews. There are Facebook Groups and a bunch of services (viral launch, zonblast, etc.) that do this. I personally don't use giveaways anymore because my brand is established, but its the fastest way to get it ranked if you don't want to do the whole organic and ppc thing.

Facebook Ads is a crabshoot. I wasted about 30k before I figured out what works. I would not recommend sending a Facebook ad directly to amazon. The conversion rate will be too low and will negatively affect your ranking. The best way to use Facebook for amazon, is to collect emails, run an email campaign, and then send them to the listing. You have to turn them from a cold lead into a hot lead essentially.

Sending Facebook to Shopify is the best way since you can see how they interact with your website using (Google Analytics, HotJar, etc.). It is also very tough to succeed using Facebook Ads to shopify too. You have to do a lot of A/B Testing and figure out your targeting group. I have seen a lot of people spend thousands of dollars on Facebook without any sales.

My Facebook Ads Method is:

5 Dollars a Day for 5 Days= 25 Dollars spent on one Ad
Low CTR (Under 1%)= Change Ad Copy or Picture (Pictures are a very important part of Facebook Ads)
No Conversions=( Change Landing Page)- Look at HotJar/Crazyegg or Heatmap to see where people are leaving

I recommend doing Facebook ads as well. CPC is much cheaper and high interaction!

For Targeting using Audience Insights. I can go more into this if you like

Hope that Helps!

 

[MJ DeMarco]

Can't private message vigilante to work it out, and honestly I don't want to stay on a forum that people flame you for asking a simple question. The title is Ask me anything. Simple as that. I think the content I've contributed thus far was pretty decent. Maybe not the best.

I'm genuinely curious in the guy's product. Creative innovative ideas fascinate me. A simple hey I don't want to disclose that info because I don't want it stolen would suffice.

If you get butt-hurt this easily, you won't have a prayer as an entrepreneur.

 

[MJ DeMarco]

I'm doing fine thanks.

The "delete my account" says otherwise.

I don't need to know the process. I get the process.

I seem to have missed the thread disclosing your multi-million dollar+ business, complete with the product you sell.

All uppity over a single question.

Sorry, but we're protective of real entrepreneurs who are doing stuff.

Too many cooks stealing from the chefs. And those cooks only care about "what do you sell?!?!" so they can quickly copy.

If that explanation upsets you, I'll be happy to delete your account.

 

[JAJT]

No it was getting 0 Sales a day, and through listening to scott voelkers podcasts on FBA and doing a lot of research I was able to start getting sales with the product! My Dad and I started it together.

I love that no only did you take a podcast that tens of thousands of other people have listened to and done nothing with (or failed at), you not only took action and applied the knowledge but you did it with the support and buy-in from your family.

AND you got through formal education at the same time (that must have been rough!). You'll go far with that kind of work ethic!

That's awesome. Welcome to the forum!

 

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[Scot]

I'm beginning to think this forum is a form of karma. Every time we get a great new user, a turd shows up. Every time a turd shows up, we get a great new user.

Welcome to the forum, phenomenal success thus far, just make sure you keep going forward.

You have a lot to teach, thank you for doing this AMA.

I know this forum will give back in spades.

 

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[Jmadd95OE]

I am not in ecommerce but I have always wondered the cash flow. I know you guys reinvest a lot. Do you mind explaining the typical profit/revenue breakdown and how much you reinvest or decide to take out? No personal details just like overall ball park figures - I don't want to know about your actual business. I am asking about the industry in general - what it takes to grow to this level and what usually gets put back in to keep growing.

So for example for a $10,000 website... (I do web sales)
- $2,000 - $3,000 sales commision
- $ 200 - 500 Design Costs
- $ 500 - 1000 Copywriter
---
$6,500 - 7,300 profit.

For $1,000,000 revenue in online sales whats your product / ads / profit mix? If this is too personal just leave it be but I am always curious what 1 million revenue in ecommerce actually means. Thanks.

Hey Fox,

Great Question. My first answer is it depends on what your goals are.

I want to build a 9 Figure Business so we put back all our profit. I'm also young so I don't have many expenses so I can take more risk.

Basically for us we spend 15-20% of our revenue on marketing. This is seen as highly aggressive marketing, but we are trying to actually take market share and not just be a niche brand.

Usually companies shoot for 5%.

What I can tell you is our main advertising channels are:
amazon ppc budget is 250/month
Facebook ads 250/month
Influencers/ Youtube ads/ Demos take up the rest of the budget. I don't have an exact number!

The advantages that we have is that we have a recurring business. Product is bought on a monthly basis (not a one time buy), so we can build a strong group of repeat customers that we can eventually cash in on, and not have to spend heavily on marketing.

In terms of Profit, it is something attainable on eccomerce, just know you will have to sacrifice growth. They don't go hand in hand.

 

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[Jmadd95OE]

Welcome to the forum. You should read 'The Millionaire Fastlane ' - it goes into specifics about how to separate time from money and other great life aspects.

Great to have you here -- can never have enough knowledge floating about.

How long has your business been running?
Was the business already quite successful before you started running the Marketing or did you and your Dad start this with you?

Once again, welcome.

The business started two years ago.

No it was getting 0 Sales a day, and through listening to scott voelkers podcasts on FBA and doing a lot of research I was able to start getting sales with the product! My Dad and I started it together.

 

[Jmadd95OE]

What process did you find to be most effective for getting into retail stores?

Cold contacts? Leveraging existing relationships? Distributor/showrooms? Tradeshows?

Trade Shows!!!!
Cold contacts didn't work. Had no relationships in the field before. You meet all the distributors and brokers at the trade shows. You get their information, send them product samples, and you follow up with them. It was about a 6months-1 year process of getting the first one signed. Then once one jumps in, the rest will!

^^That is how it is in my field. It could be different in yours. But to my knowledge this is the most efficient process.

 

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[Jmadd95OE]

I know he doesn't. No need to be rude about it. I don't need to know the process. I get the process. I'm interested in what he's selling. Maybe I want one? It's relatively inexpensive and he sells a lot. Maybe it's unique and cool. Not EVERYthing is about the money.

I know I know. Crazy idea. I'm genuinely interested. It doesn't make sense to me that he's selling it online, but can't talk about it. While it's not my business (literally). He posted it on a public forum. Don't see how it hurts to inquire.

Hey! Basically what you need to understand is Amazon FBA and business itself is a "dog eat dog" world. Going and telling everyone what your product is on an open forum opens yourself up to competition and counterfeit sellers (I have experienced this before).

The Product is only 10% of your business. The other 90% of business is marketing, execution, and creative ideas. Focusing on the product will not get you anywhere. Most fantastic products don't go anywhere.

That said thank you for your interest in my product.

If you want to know my product. I will send you an NDA you can sign it and you can ask anything you want.

DM me!

 

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[Jmadd95OE]

What's your PPC strategy?

This is on the premise that you have good photos, description, bullet points, and back end keywords.

2 Week Auto Campaign at 1.00 Bid
Transfer good Acos keywords into Broad Campaign at 1.50 Bid
Transfer good Acos keywords from Broad into Phrase Campaign 2.00 Bid
Transfer good Acos Keywords from Phrase to Exact Campaign 2.50 Bid

I also have a research campaign where I put keywords that i get from simple keyword inspector tool (great resource), google keyword planner, and scientific seller. I usually do a 2.00 Bid on those.

Bid Adjustment: I only adjust the Bid by 20%. So if it is 2.00 it can go up or down by .40. I do bid adjustments every 3 days.

Acos- I shoot for 60% or less. Most people want under 40%. I am willing to loose money to get sales. PPC is a double edge sword either profit or growth. Depends on the field you are in.

Conversion Rate on PPC- shoot for a conversion rate higher than 7% on your keywords.

Hope that Helps!

 

[Jmadd95OE]

I'm just curious what you're selling. Looking at your data metrics, the items are right around $20 and you seem to be selling a lot of it. I don't think most folks are interested in the widgets, but more or less focus on how you got where you are. Me on the other hand, I'm interested in what your father created and you have done so well at selling. Strategy is great, but sometimes the product is the key.

Unfortunately, I can't tell you what product we are selling. All I can tell you is that we are not competing against other Amazon FBAers, we are competing against actual brands in retail. We used Amazon as a platform to establish are brand, the endgame is retail for us.

You can ask more questions and I'll answer what I can.

 

[Fox]

No questions but welcome to the forum. Very impressive for a 22 year old (impressive at any age!) - I hope you stick around.

 

[Jmadd95OE]

So you mentioned audience insights earlier for facebook ads targeting, how do you normally go about defining your target audience?

Also how does your strategy look for turning cold leads into hot leads with email marketing? Any tips for acquiring leads or turning them into customers? Do you just send out direct marketing and offers or more than that?

For Defining Target Audience: You have to immerse yourself in whatever field you are in. Example: If you are in the Natural Skin Care Business.
1) Find all competitors in skin care business
2) Plug in those competitors into Audience Insights
3) Look at Page Likes Tab and Facebook will tell you what the fans of your competitors page are interested in.
4) Put those results in Audience Insights and keep expanding it.

You can also do behavioral targeting- People who purchase skin care, purchase online, High Annual Income (If product is expensive)

After running ads for a bit you can create a lookalike audience. This has been successfull for many people.

I have a funnel. I have a interesting video that goes to a landing page that grabs an email address. I have an email marketing sequence that I send them, and eventually I am able to get a sale.

I also do offers sometimes for amazon when I am launching a product.

For turning cold leads to hot leads: You have to give them constant inflow if information. This is the best way to develop trust, since they see you have good content. Also I recommend targeting a certain group with 4-5 different ads, with different copy. This is the best way to penetrate a market.

 

[Jmadd95OE]

Hey welcome to the forum! What made you stick to your degree while running a business at the same time? Very impressive at what you achieved at a young age.

My Dad. He wanted me to stay and get my degree. He said it will be useful at one point for adding credibility!

 

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[Vigilante]

Why I'm the world would I want to steal his product? I'm in the lighting industry. If it's a good product I assume it's patented. If it's not, then that answer would suffice. Hey I don't wanna tell you because it's not patented. Everyone's awfully uppety about a question.

Maybe it's past experience with members on the forum and it's warranted I don't know? I'm genuinely curious in what the guy is selling. If he can't answer he can't answer.

But... I suppose it's more fun for everyone to pile on.

You don't get the process unless you have a million dollar Amazon business, which you don't.

Back on track. Please spend some time getting to know the place, and you will understand why we don't press people about the business beyond what they feel like disclosing. The more you hang out here, the more you will find and discover!

We're not going to address this further in this thread, so let the thread get back on it's positive momentum. You might enjoy reading this thread:
IMPORTANT! - Why All The Secrecy? Here's Why...

but we're not going to discuss it further here. Thanks.

 

[G-Man]

A simple hey I don't want to disclose that info

Unfortunately, I can't tell you what product we are selling.

Done. 4 hours ago. Please let's move the f*** on.

 

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[Fox]

I am not in ecommerce but I have always wondered the cash flow. I know you guys reinvest a lot. Do you mind explaining the typical profit/revenue breakdown and how much you reinvest or decide to take out? No personal details just like overall ball park figures - I don't want to know about your actual business. I am asking about the industry in general - what it takes to grow to this level and what usually gets put back in to keep growing.

So for example for a $10,000 website... (I do web sales)
- $2,000 - $3,000 sales commision
- $ 200 - 500 Design Costs
- $ 500 - 1000 Copywriter
---
$6,500 - 7,300 profit.

For $1,000,000 revenue in online sales whats your product / ads / profit mix? If this is too personal just leave it be but I am always curious what 1 million revenue in ecommerce actually means. Thanks.

 

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[Jmadd95OE]

Welcome to the forum and good luck mate
1. Do you feel learning in college sometimes got you out of focus working on your e-commerce? I want to open an e-commerce business but at the same time study additive manufacturing or work in real-estate.
2.Do you think that focusing on one product is what allowed you to market it so well?
3.About the creation of the product: do your dad is an inventor or he had an idea and execute it?

- I do not own an e-commerce yet, but I do have few good books to give you about growth hacking & more. I am available on skype: hatzil47

1. Yes it does get me out of focus, but it forced me to be more organized and more disciplined. I am sure 10 years ago when I look back on it, it would have been worth it because of the habits I had to develop in order to make the business succeed. If you have 20 hrs/ week open it is worth it to open the business. You have to be prepared to grind it out and have a lot of late nights.

2. Yes focusing on one product was very important to my success. I am getting a Bachelors of Science, so I had no experience in marketing whatsoever. Focusing on one product enabled me to spend enough time on it until I could figure out what actually works.

3. Dad had an idea and executed on it. He had experience in the field, but not in creating products.

 

[Vigilante]

Back to business. Sorry for the side show, folks. Nothing else to see here. Back to the OP.

 

[Jmadd95OE]

How did your dad go from concept to production? Specifically how did he know the product was perfect before committing to a run and shipping it?

I have Walter's book so I know these steps but I just wanted to hear your take. Thank you for your thread!

It took 6 months for us to go to formulation to actual production. He formulated the products at home based on ingredients that he researched, then tried it on his patients, made a few changes to it, sent it to a formulation company, then we got a manufacturer.

He knew it was a perfect product because there had been research on the ingredients that we use in the product, and also he saw the results that he was getting with this patients!

 

[MJ DeMarco]

I'm a 22 year old about to graduate from College with a million dollar business. I spend about 60 hours/ week working on my business, along with getting my degree. I do about 50k on Amazon FBA, and I also sell wholesale to other amazon companies, and Amazon itself (1P seller). I'll provide proof so you know I'm not Bsing you guys!

Can you please message me as I like to verify the AMA's -- not looking for income proof or anything, just a link to the product or something were I can get an indication of volume and/or market presence. To message me, just use the contact us link in the footer.

Thank you for sharing your experience and a big welcome to the forum (missed this thread for months, sorry) - tagged NOTABLE for now.

 

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[James Fake]

Very nice and welcome to the forum.. and very impressive!!

My question is: Why are you still in college? lol... I have a business degree and even though I had the time of my life during those "freedom and responsibility free" years, I would have dropped out in a heartbeat if I could go back in time.

 

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[Jmadd95OE]

Dude. It doesn't matter.

It doesn't matter.

The widget or industry DOESN'T MATTER.

The execution and the processes do.

Stop asking these types of questions lest you be labeled as someone trying to steal or reverse engineer the OP's product.

It's literally none of your business and not relevant to the thread. You are missing the forest because of all of the trees.

He doesn't owe you an answer to satisfy your curiosity. It doesn't matter what the product is.

Focus on process.

Thanks for the responses. Here was my response by the way. Still learning how the forum works so I think I'm posting my response twice but whatever

Hey! Basically what you need to understand is Amazon FBA and business itself is a "dog eat dog" world. Going and telling everyone what your product is on an open forum opens yourself up to competition and counterfeit sellers (I have experienced this before).

The Product is only 10% of your business. The other 90% of business is marketing, execution, and creative ideas. Focusing on the product will not get you anywhere. Most fantastic products don't go anywhere.

That said thank you for your interest in my product.

If you want to know my product. I will send you an NDA you can sign it and you can ask anything you want.

DM me!

 

[Jmadd95OE]

Congrats! Im going to assume this is a consumable, within health/personal care niche. I'm recently seeing some success personally in the beauty niche (although not as much as you!). I started out with google shopping ads to my Shopify and then Amazon. Went from $3k monthly to $15k monthly now (1st month on amazon).

1)Whats your advice on building your brand through these two platforms?

2)google ads and Amazon places product in front of customers ready to buy. What was the process for you moving onto advertising methods that werent as targeted? Like instagram, email marketing, etc.. is this something worth the effort only after you master Amazon/shopify?

Good Job. 15K is a good amount of advertising. On Amazon you should spend heavily on amazon ppc, and you need to get reviews. How many reviews do your competitors have? What is your conversion rate like?

On shopify- your website is very important, you need one that people inherently trust. This is a very hard topic for people to understand so I attached some websites that I like:

onnit.com
glossier.com
lola.com

2) Yes tackle the low hanging fruit first. Once you get over 50k/revenue a month I would say it would be worth it to go into social media advertising. You should be doing email marketing right now on your shopify website. It is important to develop an email list and will come to use in many ways.

I am interested in what you are doing. PM me and we can talk more!

 

[amp0193]

What process did you find to be most effective for getting into retail stores?

Cold contacts? Leveraging existing relationships? Distributor/showrooms? Tradeshows?

 

[Jmadd95OE]

Welcome to the forum! I'm getting started in FBA right now. What do you know now that you wish you knee starting out? Are you getting your product manufactured overseas?

Sent from my Nexus 6 using Tapatalk

I wish I knew the importance of amazon ppc. I started doing Amazon before the whole ppc craze was in full effect. PPC was the main reason why I was able to succeed in a very tough market.

No we manufacture in US.

 

[MJ DeMarco]

.

Lemme guess... delete your account?