12 Months to $1 Million in Your Amazon Business by Ryan Daniel Moran
Three Points for Success in Your Amazon Business
- The Longer Your Vision You Can Have For Success, The More Successful You’ll Be. The more you can put off the profits and not take money out of the business, the more successful you will be and the faster you will get to this success
- Your Timeline to Full Time on Amazon is About One Year. This can be less if you are aggressive and have more cash to deploy or longer if you start taking money out too soon.
- The More You Invest Up Front, The Faster and Easier Your Path Will Be. Starting an Amazon business with $50,000 will produce faster results than if you started with $500.
Three Stages To Growth in Your Amazon Business
Stage One: THE GRIND on Amazon FBA
Getting your listing up, keyword research, samples, and product research is considered stage zero. If you need help going through that, check out Amazing Selling Machine, which is how both Ryan and I got our start selling on Amazon. Click here to check out Amazing Selling Machine (affiliate link).
Stage One is the first 3-4 months after your first sale on Amazon. We are now in business and starting to gather data. This is when you have less than 50 reviews and fewer than 20 sales per day. At this stage, you don’t need to worry about anything else except getting more reviews and sales.
Don’t worry about branding, packaging, a second product, or anything else. Just focus on getting more reviews and more sales.
Your objective is to JUST GET MOVING. Whatever you do, just try to get more reviews, which means a great product and great customer satisfaction. Also focus on the 80/20 of your source of sales on Amazon. What is the 80/20 principle?
80% of your results come from 20% of your efforts. In Amazon’s case, 80% of your sales will come from where you rank for keywords. Great keyword research is vital for this to work.
So how do we get better keyword ranking? Increase your sales.
GOAL OF STAGE ONE: Generate enough sales and reviews to rank for keywords on Amazon.
This is the only thing to worry about.
We need to focus on three actions during this time. Do a product launch, hopefully to a list that you have, having a great review system, and finally a great Amazon PPC strategy to go after the keywords we found during our keyword research. THIS IS IT.
RELATED: How To Do Keyword Research
So how do you do a product launch? You build an audience. Once you have started to build this audience, give them a discount for the product you are selling. Sales drive ranking!
The longer you can provide this discount to your audience, the more sales you will get, the more reviews you get, and the higher you will rank on Amazon. It is that simple. But it all starts with an audience of people that wants or needs their problem solved.
RELATED: Building Your Audience To Increase Sales on Amazon FBA [GUIDE]
A summarized Amazon Launch Formula from the course above is to create a squeeze page advertising the giveaway of your product at a low cost. Then use Facebook or Google ads to drive the targeted traffic to the squeeze page. Finally, follow up with your new leads for reviews.
Start Amazon PPC when you have 10-15 reviews and BE AGGRESSIVE while bidding on keywords that you want to rank for. If you are operating at a loss, pause until you get more reviews and/or improve your listing.
RELATED: Free Amazon PPC Course
STOP HERE AND WORK ON THIS IF YOU DO NOT HAVE 20 SALES PER DAY AND 50 REVIEWS FOR THAT PRODUCT.
Don’t look for new products, don’t start your website, don’t get distracted and focus on building your audience and giving away a product to them. Keep doing product launches over and over to build your audience and make more sales.
Stage Two: THE GROWTH on Amazon FBA
Stage two is when you are making 20-50 sales per day and have over 50 reviews. Now we can do more. This is simply duplicating the whole process with a second product THAT IS RELATED to the first product.
You should do this when you can easily duplicate the process WITHOUT detracting from what you’re currently doing or destroying your cash reserves. Do not run out of product one because you can’t fund the inventory since you ordered product number two.
The launch process for product two is the same as product one. Continue to build your audience and even use the audience that you built from product one to launch product two.
Sales for product one will increase as a result of launching product number two.
The faster you can get through stage one (more cash and keeping money in the business), the faster you can get to the compounding effect of multiple products.
To emphasize this again… ONLY RELEASE PRODUCTS THAT YOUR EXISTING CUSTOMER BASE AND AUDIENCE WANTS TO BUY. Ask them what else they want.
Reviews should come easier as a result of your audience.
You can also put up a company website at this time, but don’t focus on it.
Stage Three: THE GOLD on Amazon FBA
This is when it is okay to start paying yourself. I recommend paying yourself about 5% of all the money that is brought in. So if, in a month, you bring in $50,000 in cash, you can pay yourself $2,500.
You can also start to customize the product and create variations for improvement. You can also come out with new colors, sizes, flavors, packaging, and other variations.
Also start customer data collection. Start putting inserts inside of your packaging leading buyers to a squeeze page to get their email address. Then you can follow-up for other products. Try to get them on a social media channel of yours as well.
You can also start exploring new traffic channels, but if stage two is working so well, continue focusing on that. New traffic channels include Google Ads, Facebook Ads, press releases, your own website and content, search engine optimization, and social media.
This is a summary of Ryan Daniel Moran’s video Zero to $1 Million on Amazon in 12 Months on YouTube.
Check out his brand new book that just came out!