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Learn the basics of placing Amazon FBA product ideas. Know the pre-requisite of when to go into Amazon and when NOT to go into Amazon.
Dana Derricks is the author of “The truth about business”.
Founder of the Dream 100 Launch Programme, Dream 100 book, Dream 100 Challenge
Amazon seller pain points
Amazon as a business model
Most people are so in the weeds, they don’t see the big picture.
It’s easy to get excited about a tool but lose track of what works.
So discussing Dana’s book (“The Truth about business”) we’re going to zoom out.
Dana has made $1M four ways, one of which was on Amazon.
Is Amazon for me?
What is it you want? What’s your outcome? Then reverse engineer from that.
Do you care?
Dana had a pet supplements company.
One thing he weighed up was “Do I care about what I’m going to sell?”
If you don’t, the road won’t be as smooth.
Especially the RESULTS of what you sell.
Dana was able to help a ton of pets.
To finish the marathon, you have to care.
Financials
Every new seller Dana worked with – a lot of programmes promise “passives income” etc.
They don’t tell you how much money it will actually cost you.
They don’t tell you you’re going to need to have at least $10K to pay for inventory, services and software.
You need to have a cash cushion. Either anticipating more cash or access to it.
And you need to be able to swallow a product flop, a bad supplier, a bad batch.
It’s a long-term strategy!
How to start out in Amazon
Being a freelancer is a great way to get into any space.
Dana worked with 100s of sellers as a copywriter.
Also, you get paid to learn about Amazon FBA product ideas!
Dana then created a 7-figure amazon business within a year.
You see the gold medal in the Olympics but you don’t see the 10 years of work before it.
If Dana’s Amazon business had tanked, he would have had a freelance business.
What outcomes can be served by an Amazon business? And which not?
If you can’t articulate what you want, it’s okay. We don’t really know until we get stuff.
Maybe you feel like you want a sports car, maybe you don’t know until you get it.
So you don’t have to know what you want.
Amazon is not property/real estate
There is a misconception that Amazon is like an investment when you passively invest $1000 and get $10K back. This is not a real estate (property).
It’s an actual business rather than an investment.
Is it worth doing?
Some of the things that make it worth it:
Random wins that keep you going
- Success stories from products – eg dog had seizures daily, on medicine, took the product and was seizure-free for 6 months. So make a great Product and make a difference.
- When it started scaling, Dana was able to employ family members – aunt working at a grocery store
- Had huge demand for product inserts and packaged etc.
- Take control/ownership overproduction
- Found company that employs people with special needs
- Sent inserts to be folded and stickers etc to that company
- That company loved them and felt good about it.
Less fun things
- If you’re in the game for real, you’ll launch a product that flops
- You can blame others including Jeff Bezos, gurus, coaches
- But you’re the one who has to have the stubbornness not
- Competitors will rip you off.
- Chinese will rip you off.
- Supplier may rip you off.
- Just PLAN on it happening to you.
Put it in perspective
Something bad happens but you build up a tolerance.
- Was your listing hijacking worse than x event in your life?
- People post screenshots of money-making but not this stuff
How does Amazon compare to the other ways to make money/business models?
One of the ways was as a freelancer – service.
Another was digital/info products om Amazon FBA product ideas.
Another was coaching/consulting.
What Amazon is not
Amazon is not an instant solution to a job you dislike
What Amazon is NOT is an “easy button” to get out of the pain they’re in.
If you’re working a job you hate, it’s not the answer.
Also if you have no cushion, if you have expenses you need to meet each month, then it’s not a good idea.
The expectation “this has to make x by next month” means your decision-making gets bad.
If you went in to take a huge exam and you’re up all night nervous, you’ll do worse. Same here.
What Amazon can be
It can make money round the clock, 24/7.
When you’re not physically present.
Not trading time for dollars.
Build a legitimate asset you can sell
Dana sold his company after 2 ½ years.
He got to make a lot of money in the end.
Someone kept it going in their portfolio.
It’s almost like an investment you’re making at that point.
Or like a crop – feed it, nurture it and then eventually harvest it.
Owning assets as part of your financial portfolio
From time to time Dana looks to buy a business
- Dana bought a company for $3500 with the rights to 36 recipes
- Built a 7-figure business on it!
Get other things because of an income stream
- You can get other things
- Got over $100K line of credit
- Could acquire companies
- Staff
- real estate
Proving ground – help other Amazon sellers
- The best consultants are the ones actually doing it
- You don’t have to open the doors
Dana’s book “The Truth about business”
Dana’s other books used to be VERY expensive – often $100s or $1000s per copy.
This one is different – Dana wants everyone to have a copy.
The last person who read it messaged Dana that “it literally changed their DNA”.
Digital version for $ 1, a bundle of audio, physical, digital.
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Watch my full interview with Dana Derricks
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