Uncomfortable with Jeffrey Gabriel

Let's Meet The Co-Founder of AMZ: Mike Begg | Saw.com

April 24, 2024 Jeffrey Gabriel
Let's Meet The Co-Founder of AMZ: Mike Begg | Saw.com
Uncomfortable with Jeffrey Gabriel
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Uncomfortable with Jeffrey Gabriel
Let's Meet The Co-Founder of AMZ: Mike Begg | Saw.com
Apr 24, 2024
Jeffrey Gabriel

Today on The Uncomfortable Podcast, we're breaking our format to bring you an extraordinary guest. Meet Mike Begg, an e-commerce entrepreneur and the co-founder of AMZ Advisors, a digital marketing agency specializing in the Amazon platform.

Mike's journey into entrepreneurship began while working in real estate for Sears, where he foresaw the company's decline. Alongside his friends Robin and Steve, he took a leap into e-commerce, launching their own business to create global growth for brands on Amazon. Tune in for his inspiring story and valuable insights!

About Jeffrey: 

Jeffrey M. Gabriel is the founder of Saw.com, a boutique brokerage that specializes in acquiring, selling, and appraising domains. With over 14 years of experience in the domain industry, Jeffrey has a proven track record of closing multimillion-dollar deals and delivering exceptional value to his clients.

Jeffrey's core competencies include remote team management, online marketing, and strategy. He is passionate about helping businesses and individuals achieve their online goals and dreams. He has been involved in some of the most notable domain sales in history, such as Ai.com, Sex.com, and Poker.org. He is also a Guinness World Record holder and a frequent speaker and writer on domain-related topics.

Follow us on social media:

Facebook: https://www.facebook.com/sawcom/

LinkedIn: https://www.linkedin.com/company/saw-com/

Twitter: https://twitter.com/sawsells

Show Notes Transcript Chapter Markers

Today on The Uncomfortable Podcast, we're breaking our format to bring you an extraordinary guest. Meet Mike Begg, an e-commerce entrepreneur and the co-founder of AMZ Advisors, a digital marketing agency specializing in the Amazon platform.

Mike's journey into entrepreneurship began while working in real estate for Sears, where he foresaw the company's decline. Alongside his friends Robin and Steve, he took a leap into e-commerce, launching their own business to create global growth for brands on Amazon. Tune in for his inspiring story and valuable insights!

About Jeffrey: 

Jeffrey M. Gabriel is the founder of Saw.com, a boutique brokerage that specializes in acquiring, selling, and appraising domains. With over 14 years of experience in the domain industry, Jeffrey has a proven track record of closing multimillion-dollar deals and delivering exceptional value to his clients.

Jeffrey's core competencies include remote team management, online marketing, and strategy. He is passionate about helping businesses and individuals achieve their online goals and dreams. He has been involved in some of the most notable domain sales in history, such as Ai.com, Sex.com, and Poker.org. He is also a Guinness World Record holder and a frequent speaker and writer on domain-related topics.

Follow us on social media:

Facebook: https://www.facebook.com/sawcom/

LinkedIn: https://www.linkedin.com/company/saw-com/

Twitter: https://twitter.com/sawsells

Speaker 1:

Today on the Uncomfortable Podcast, we have a very interesting person outside of our normal format, which is Mike Begg, who is an e-commerce entrepreneur and currently the co-founder of a digital marketing agency called AMZ Advisors, focusing on the Amazon platform. Mike made the jump to start his own business with his three buddies and get into e-commerce while he was working in real estate for Sears and could see the writing on the wall that the company, as he said, was going down. Him and his friends, rob and Steve, launched their own business, focused on all Amazon platforms globally, to create growth for brand manufacturers, and you sell products not only in the United States, europe, Canada, but also in Asia. You've grown up in New England and Connecticut and you are now living abroad like I used to I'm very jealous of that in Mexico. So let's get right into it. What does your company do? And then let's back up to the part about you working for Sears and kind of knowing when you should take that leap.

Speaker 2:

Sure Jeff, and thanks for the intro. Thanks for having me here. So what the company does is we essentially partner with brands that are looking to sell more products online.

Speaker 2:

So we'll do all the advertising, SEO, graphic design, everything that you need to be successful on the Amazon platform, and we have a team that's distributed across the globe so we're able to handle every single Amazon marketplace that exists. So you want to sell in Europe? Well, our team in Europe has you. You want to sell in Mexico? Our team here has you. You want to sell in Asia? Our team in Asia Oceania has you as well. So that's very high level what we do. I could get down into the nitty gritty, but it's probably not as interesting for everybody.

Speaker 1:

Well, so let's go back a little bit here. And you know you mentioned you're an entrepreneur, you started a business with two of your buddies. You were working at Sears in the corporate world in Chicago. As I was reading about you, you know, and with myself, when I decided to pull, you know, pull the chute and say, fuck it, I'm going on my own. You know what? When was that moment? Or when was it when, you like, walked in your boss's office and you just said, hey, listen, you know, I think I'm going to give it, I'm going to give it, give it a shot on my own.

Speaker 2:

So it wasn't a. I would say it was a gradual transition. I don't think I pulled the chute and jumped out of the way. But first of all, I mean I was working at Sears and I had originally joined Sears to work on a real estate investment trust spinoff. So we essentially pulled together about $2.5 billion of real estate, sold it off, took it public, and then that money. The idea was that it would keep Sears running and the fact was Sears just kept burning through cash and like yeah, that was kind of the problem.

Speaker 2:

I stayed on after the spinoff, stayed working with Sears, worked on the real estate development group, so I was responsible for taking a lot of the valuable assets that Sears still had and then turning them into something else. So taking them all, turning it into a huge development mixed juice, whatever it may be and part of that job was kind of going around and looking at Sears stores and Kmart Kmart was also owned by Sears at the time so looking at stores that were going to close and we were like, oh, this is a good location, but having a Sears store doesn't make sense here, let's turn it into something else.

Speaker 1:

This will make a wonderful spirit of Halloween, right? How many times can you say that Exactly?

Speaker 2:

And we did all types of unique deals too. We did like many storage units inside Kmart stores, or like split at Kmart, star Wars, and did that and other retailers, but I digress. The point is that I was going to these stores, I was seeing people and I was like hey, you're not going to have a job in a few months to myself.

Speaker 2:

I obviously wasn't telling them that that would have been mean, but and it kind of made me realize that there's no such thing as a safe job, there's no such thing as job security. It's just really the decisions that the leaders are making and whether they're good decisions or bad decisions. And that's kind of where I started having the realization. From there, I started learning about how to sell products online. I probably tried like three or four other things before selling products as well Affiliate marketing, writing a blog, all that stuff and I was like this isn't going to make money. So I was like, let me figure out how to do something. And I figured out how to sell products. After I launched my first few brands, we got a lot of traction this is with my partners, Rob and Steve and we decided well, we were actually selling art supplies and we realized that we were beating Crayola in some of the categories. We were selling it and Crayola is a monster.

Speaker 1:

And we were like oh, these companies don't know what they're doing.

Speaker 2:

That's kind of why the idea for the agency came from. After we had about three or four clients is when I actually went to my boss and was like you know what? I'm going to give this a shot on my own, so that's how I got to that point.

Speaker 1:

So why don't you explain your business a little bit more about not just being a seller yourself, but helping others to do what you do?

Speaker 2:

Yeah. So Amazon is an incredibly complex platform for a variety of different reasons, but it's gotten more and more complex over time and what we saw eight, nine years ago when I was starting selling on Amazon is that the ability for a disruptor brand or a brand that pretty much was coming from nowhere to come into Amazon and start stealing market share was really easy. So the example of Crayola I give we were selling art supplies, we were selling markers, we were selling colored pencils, we were selling paints, that type of stuff, and we would start selling our products and within a month, a month and a half, we would be showing up at some of the top search results for those types of products which, again, it's a category dominated by Crayola. It's kind of obvious.

Speaker 2:

It's like well, how does this multi-billion dollar multinational company not know how to manage the platform? And in general it just becomes people are slow to adapt, people don't know how things work, they don't have the internal teams that have the knowledge and understanding. So we realized that we could provide a lot of value that way and we also had a lot of big clients early on because these companies were looking for people to manage this. So some of the big brands we worked with early on were Rembrandt, whitening Plackers, dental Supplies, headwear, uh, burt's bees, so like a variety of different, like well-known names were working with us as a small little agency and, uh, we were driving millions of dollars a year in sales.

Speaker 2:

Uh, revenue for them would do the platform, which was awesome. So, uh, yeah, it was really that they don't have the capability or the knowledge to do it themselves. Obviously, they've started to hire people and they're a little bit more knowledgeable on how the platform works, and there's more and more advertising dollars pouring into Amazon, but still it's difficult if you aren't in there the day-to-day. We've seen stuff. We've seen some of the weirdest stuff happen. We've worked with hundreds of brands at this point and we'll see something happen on one account, like three years ago, and we won't see it again for another three years. But if you're in a company where you're only working with one brand when that thing comes up, you're going to have no idea what to do, and that's kind of the advantage that we have is we've seen pretty much everything.

Speaker 1:

So a company like Crayola, for example I mean, obviously it is a household brand. Every child in America and probably Europe and other parts of the world have used their products at least once or hundreds of times Right, I mean, they're probably not used to selling direct to the consumer anyway. And then to put the twist of Amazon on it as well is even more confusing to them, because they probably have a Web site where everything's overpriced. And then you go to Target or Walmart or wherever and get the same box of crayons for two dollars cheaper a box, and mom just goes there to buy those anyway. So you don't really think about it. But then Amazon comes along and people are buying that, so it's interesting. And then if you're not going to help them with it, then what A reseller would have to go on there and create the Crayola account and add the crayons and then sell it for them, which they probably weren't really?

Speaker 2:

that excited about. Is that why they felt like they needed to be on there, exactly? I mean, I think you just you pretty much nailed it when you create and this still creates a lot of problems for brands that don't have solid supply chains and solid distribution.

Speaker 2:

So if you don't have a good map agreement in place, you get resellers on the platform which just wreak havoc on your listings. They'll change content, they'll change images, they'll take the buy box from you. So, yeah, part of it's a necessity. The other way I kind of put it is that I guess it also relates to a necessity, but in a different way, is that?

Speaker 2:

70% of all online product searches start on Amazon. So if you are a brand and you're not on Amazon, like, most customers are not going to find your product unless they like, know your brand by heart and are specifically going to your website looking for it. So it's kind of a combination of different factors. It's a combination of trying to get control of the marketplace and trying to make sure that you're not letting uh resellers in, but the other one is just product discovery and brand discovery and customer uh reach and like you can't get better reach or better discovery, even better conversion rates than than what you get on amazon so talking about someone like crayola or some of your other current customers, or rembrandt or what any of these companies?

Speaker 1:

so amazon, you send them the products, they do the packing, they do the shipping, they do the storage, but you are your client, like Crayola has to provide the product to Amazon when they're running out of like yellow crayons, right, and you're making them manage the inventory. Amazon's making all the fulfillments right. If it's Amazon Prime shipping, then it goes to an Amazon warehouse. Is that how it works Exactly?

Speaker 2:

So there's two different models. You have 1P and 3P. 1p is you're actually selling the inventory at wholesale to Amazon. Typically, that's only reserved for big brands. It's an invite-only platform. About 60% of all products on Amazon are 3P, so and 60% of all sales that happen on Amazon are 3P, so that's just. You know any brand, any person, can start a selling account, list their products and start selling. So that's kind of how the two different models are differentiated.

Speaker 2:

When Amazon is buying your inventory, they literally handle everything.

Speaker 2:

When you are the third party seller, you can send your inventory into a fulfillment center Amazon FBA is what it's called and from there Amazon will help you with the customer service, the shipping, the tracking, all that stuff to the consumer.

Speaker 2:

They manage a lot of your inventory management aspects, but you as the seller still need to be responsible for making sure that, yeah, you're sending inventory in, you're anticipating the inventory that Amazon's going to need. So forecasting is extremely important and yeah, I mean that's more or less how it will work. And then, once your inventory is at Amazon, either on the 1P or 3P side, you get the Prime badge, as you mentioned, which means two-day shipping or less, although a lot of people have seen that promise kind of fall off over the past few years as Amazon warehouses have just gotten busier and busier. There's so much volume, so many warehouses being opened and so many people trying to get their products into Amazon that it's actually slowed down their processing times and the wait time to get your inventory from your warehouse to amazon's increased by at least one to two weeks it's.

Speaker 1:

It's unbelievable. The logistics between ordering something and then it being delivered to you, sometimes that same day, yeah is on as absolutely a wonder. It's like one of the wonders of the world. In my opinion. You might, if you actually really think the number of boxes going through Amazon in a day and just the whole system and it working, and then working with someone like you who's working with somebody else to get the inventory to them, and all of that working. Does that all go under the same Amazon account? Knowing that there's people like you helping companies, or you and your clients accounts and you're kind of sharing.

Speaker 2:

How does that kind of all in the us yeah, in the us, uh, we're in our clients accounts and we're managing that. Uh, we do have a company in mexico as well, uh, which helps brands expand to mexico and that, specifically, is through our own account, just because of different, uh tax and legal issues. So that's kind of the way we need to go about it there. And, yeah, I mean the logistics behind it is incredibly impressive, I mean especially on the Amazon side, but they're also interesting when we look at Mexico. I mean the big platform here is Mercado Libre, amazon's also big, but Mercado Libre is the Latin American e-commerce platform and their fulfillment network, in Mexico at least, is better than amazon's and wow they

Speaker 2:

they literally have the capabilities to do same day delivery within like an hour, depending on where you are. I mean, most of the population of mexico lives in three big cities, which makes it a little bit easier. Yeah, but it's crazy like we actually on the mercado libre side, we actually get an order, send out the inventory and we can't upload it, upload the tracking ID, fast enough to the platform before the consumer already gets the product delivered. So we get the product delivered to the consumer and Amazon or MercadoLibre are like well, where's the tracking ID? And it's like well, the customer already has it. Do you really need it? So it's pretty impressive in general how these big e-commerce companies have figured out to do how to do last mile delivery in the most efficient way possible.

Speaker 1:

Yeah. So I'm going to kind of ask you something a little bit off off a normal subject that you're used to in your own industry. But just bear with me while I give you a little explanation of the question. So in my business, when we sell a domain name to a merchant like yourself or to one of your customers we talk about if they're selling toothpaste we can say, you know, maybe you should think about buying Toothbracecom or Mintcom or Mintyfreshcom, and then it goes with your marketing and it makes it memorable. It creates brand recognition, trust, repeat business, word of mouth, business, you know all of these different benefits and then when someone's running low on toothpaste, they'll just come back to your domain name, your website, and you'll do it again Now with yourself.

Speaker 1:

Other than the subscribe option on Amazon, how are you really creating brand loyalty to yourself and your vendors? Because I don't remember I just see it's Amazon. Like I don't know that Mike Begg, incorporated Amazon Advisors, is the one who made sure that it was delivered at my door and it was exactly as it was advertised and it isn't broken and it's good. Like you're just relying on that and that is kind of a strange business model, that you're totally in bed and kind of in there with Amazon and you're promoting their brand and making sure everything's okay with that, hoping that they provided again that same person again that you're gonna have to compete for in the future. So what do you think about that, of not doing it the traditional way?

Speaker 2:

I mean everything you said. There is pretty much a common complaint we get from our customers. I mean everything you said there is pretty much a common complaint we get from our customers. I mean you don't own the customer data at the end of the day. Amazon pretty much blanks out any personally identifiable information on every order that you get. So one of the big challenges from the brand loyalty standpoint is how do I get people to come back and you mentioned subscribe and save.

Speaker 2:

That's a really good option for getting someone to come back to your listing. The only other real option in the Amazon platform is to use advertising, and we have targeting capabilities to target people that have purchased products, and it's up to the last 365 days, so we can target purchases with whatever look back period we want. So, for example, let's say you have a product that lasts 30 days, so we can target purchases with whatever look back period we want. So, for example, let's say you have a product that lasts 30 days. Well, maybe we should probably start targeting that person after 30 days to make sure that they're coming back and buying again. So the only way to do it on the Amazon side is just keep putting more money into the system. It's pay for play. That's kind of the only way it is.

Speaker 2:

Now, if you run your own DTC website, there's some things you can try to do, which don't necessarily mean they're going to work. Product insert cards you probably ordered something on Amazon. It comes and there's a little piece of paper inside that says check out our website or here's a coupon for our website or give us a review and we'll give you more product stuff like that.

Speaker 2:

Yeah, exactly that type of stuff, and the whole idea there is to try to capture your information of the purchase on Amazon. So a good way that we recommend doing this to a lot of our the companies we work with and the brands we work with is use the product insert cards to give them something that can only be claimed through your website. So now there's gray areas here because of Amazon's terms of service, but if your product comes with a warranty that they need to register for on your website, well that's legal. If you are offering a free e-book that they need to get on the website, well that's also legal.

Speaker 2:

All of those are opportunities for you to start capturing the customer emails at least, and maybe some of their other details, depending on what you're asking, once they actually go to your website. But from there is where you can start really building the brand loyalty on platform or sorry, off platform on your own website, because now you can start email marketing them, you can start putting them into lookalike audiences on other platforms.

Speaker 2:

You can start trying to get them to purchase their offering subscribing, subscription services through your own website. Yeah, All of that is kind of the way that you really have to think about it in the long run of how you create brand loyalty.

Speaker 1:

All right. And then the other question is in our business there's this thing called domain parking right, and so what happens is if someone takes a domain name, they change the name servers and there's ads put on that domain. So if you have freemapscom, there's links for maps and somebody clicks on that ad and it's most of the time those ads are fulfilled by Google and their ad network. When I first got in the business, there were actually multiple companies that people could choose from, one being Yahoo, bing, and then they have kind of fizzled in the market and now it's just Google. And then Google used to pay exponentially more and then every quarter, every half year, they go because of market conditions.

Speaker 1:

We need to turn down your split a little bit. We need to turn down your split a little bit. Oh, we need to take a little bit more off your split. Oh, because of the market. But even when the market came back, they didn't give you any more back. They'd say, oh, we're going to pull it back a little bit. So now names that made X amount of dollars per month. They're probably down from when I got in the business between like 60 and 80 percent in earnings that they would have gotten back then living off of these opportunities, I could see that their price, or their split with you over time would potentially is going to have to get worse. Right, and do they change your revenue share? Do they? Do they mess around with that, or is it really always been consistent with them as a partner?

Speaker 2:

No, I mean they're constantly increasing the fees to use the platform. I mean the main fee is the referral fee and that fee has been pretty consistent. That doesn't change. It's usually a flat 15% fee for selling a product on Amazon. Where they've really been squeezing people has been on the logistics and fulfillment fees. So if you're using their own warehouses they charge you a certain amount for storage, for pick and pack, for sending every shipment, and that's slowly been increasing over time and they've been figuring out new ways to introduce fees. So there's a lot of there's margins that are continuing to be squeezed by Amazon through all these different fees. And you know that's part of the reason why Amazon is being investigated so much by the FTC, because a lot of these practices are kind of like questionable. So, for example, I can choose to fulfill inventory from my own warehouse or I can use Amazon service.

Speaker 2:

If I don't use Amazon service. If I do fulfill from my warehouse, the ability to get my product visibility on the Amazon platform is suppressed, so Amazon is pushing you towards using that. Another good example of this is this year. Amazon introduced a couple different fees. One's called the inbound placement Well, inbound placement fee has been around, but they increased it. And there's another one called low inventory fee. Well, it kind of helps that Amazon also rolled out their Amazon warehousing and distribution service where, if you use Amazon's warehousing and distribution service, inbound placement fees go away.

Speaker 2:

Uh, your inventory is automatically replenished, so your low inventory fees go away so okay they're just pushing you into trying to use more and more of their services and becoming more and more dependent on them, which, in a way, is really scary, uh, but it's. They're just like I said before. I mean like 60 percent of all searches are happening on Amazon. You can't be there. You kind of have to be playing this game even though it sucks.

Speaker 1:

Yeah, well, it's the same with parking. Like, what are you going to do? You know you're dealing with Google. I mean it is, it is what it is, you know, and what Google does. What Google does to people is they will do what's called clawbacks, and so if you make a certain amount of money in parking, they could come back and they can say wait a minute, we don't think that traffic that came to your domain name was real or met our guidelines and we want our money back, and they can take your money back. So I'm guessing you're probably dealing with that with returns.

Speaker 2:

In a way.

Speaker 1:

So what I don't understand with Amazon, right, or like if I go to Target or I go to Home Depot and I bought like a saw blade at Home Depot and I hand it back to them and the person at the counter kind of looks at it and goes, ok, takes the return, they're gonna be like uh-uh, but like with Amazon, I've actually like never heard of Amazon even questioning anything that I've sent back. And it's even at the point where I open the box of something. I look at the product and I'm like you know what, I don't, I don't want this and I don't even really do a good job packing it back in the box. I just send it back and I get my money back and I mean I and I'm not abusing it, you know, I'm just you know, but I've never had a return rejected and I've never had an issue. So like, what is what happens with that? You know, in a very quick answer, people can hear that one.

Speaker 2:

Yeah, so I mean you pretty much nailed it Like Amazon's return policy is 30 days and that's like the minimum. So all sellers have to meet 30 days during Q4. They have some extended return periods. But dealing with returns I mean from the actual operational standpoint it's pretty easy as a seller because Amazon's gonna handle it. If you're using their warehouses, where the fees and costs come in, is that I'm going to get my money back, but I'm not going to get the money back for the shipment. So every time you return something, the seller is losing money on the shipping costs. If the product comes back in good condition, amazon will put it back into inventory and start selling it again. If it comes back in poor condition, all you can really do is have it sent back to you or have the inventory destroyed. So it's kind of a lose-lose situation for the sellers in general. And I mean you're obviously not abusing the system, but there are a lot of people that are literally committing fraud every day doing this.

Speaker 2:

Oh, yeah, a good example of this is like I just heard about a brand that had like a high-priced ticket item uh, like two, three hundred dollars and they were literally taking the product, taking the product out, putting something else back in it and sending it back for a return, and then they're reselling the product.

Speaker 2:

So they get the product for free, sell it, make money that way, and then they're they're doing, uh, they're sending like rocks so it's like ridiculous some of the stuff you see from people and it really makes you like wonder, like how people even think about doing this to other sellers, other brands, other companies, I mean most of them don't care, obviously, but yeah it's a huge challenge and returns is probably one of the least enjoyable things of the platform.

Speaker 1:

Well, if you see what's happening in brick-and-mortar locations, with people just going in and blatantly stealing things, I mean if it's a faceless crime and you're just doing it in the comfort of your own home, I mean people obviously are going to keep pushing the line. So quickly, in a one sentence answer what are your feelings about Timu? I heard they do $5 billion in sales in the United States last year.

Speaker 2:

It's one of the fastest growing platforms, Unfortunately. I don't have a lot that I'm selling on it right now, so I really don't have much insight. You haven't even thought about trying out?

Speaker 1:

Are you worried about becoming obsolete or a dinosaur by not expanding on a team, or do you even have that opportunity to do so?

Speaker 2:

I mean we have the opportunity, but I'm not worried about it at this point. I mean, amazon is just such a bigger platform. It's just such a household name. The thing that I am more interested in and this depends a lot on government rulings is TikTok shops. I think TikTok shops has more potential in the long run if TikTok does not get banned in the US. So Tmoo is a good opportunity as well. I mean, there's lots of platforms. You can be on Walmart at sea, depending on the product you have, uh, but TikTok shops is super interesting if you have a really good content machine.

Speaker 1:

Uh-huh Got it. So a guy like me, if I say, you know what, I don't want to be in the domain business anymore, I want to get into Amazon, I want to start selling things, so I would come to you and you'd say, as long as you can get me the inventory consistently, we can do everything else for you. Or if you're like I know the guy that bought bobbleheadscom, so they make bobbleheads, custom ones for people. I think it's more of an Etsy thing. But if he had baseball player bobbleheads, he'd come to you and say I can deliver a thousand of these a month. And then you guys are like all right, we'll make it happen.

Speaker 2:

If there's demand, right? Yeah, that's more or less it. I mean we'll help them get the products on Amazon. We'll help them set everything up and then run the ads for them. So the inventory will go to Amazon. Every order that comes in is just shipped out. That's pretty much it in a nutshell.

Speaker 1:

So I have a friend that works at a grocery store and he said that hamburger is the bread and butter of a grocery store. He said in the 4th of July it's just hundreds of thousands of pounds of hamburger just going out the door and the markup's good on it. It just sells and sells and sells. What is like, what is the automatic product that you know your sellers usually can do well on? If you can, if you can tell me like what is it? That is the winner on there.

Speaker 2:

There, I would say there's no one thing actually. I mean, it's really gotten to the point where you have to be very niche in the products you're selling to be able to hit something that's just going to run away. I mean, highest margins by far is supplement products, but it's also the most competition. What products Supplements?

Speaker 1:

Oh, supplements.

Speaker 2:

Fitness supplements, proteins like that type of stuff. The margins are incredibly high on it, but your customer acquisition costs are extremely high as well, so I don't recommend doing that unless you have like deep pockets.

Speaker 2:

Generally, I would say go niche down, find a little niche where you have an audience that you can reach or you know how to reach this audience and then figure out a product that they want to buy, and that's really where you're going to start seeing the profit, because your advertising costs are going to be low, because it's a really niche market. You have other ways to reach these people and sell the products, which is just going to increase your margin. I mean, those are generally the ways to be successful.

Speaker 1:

Got it. It's interesting when it comes to supplements. When I was selling the domain sexcom, I went to the adult video network awards and part of those award shows isn't just the entertainers. There's actually a very large segment of the people at those conferences that make supplements that do you know different things to you and some you might be able to purchase at a gas station or, you know, online or whatever. And when I spoke to them and asked them, like you know where is your manufacturing plant, and some of them were giggling and laughing because they say they make them in their garage.

Speaker 1:

So you know, when I look at supplements I certainly spend time researching the company name, who it is, when it says it's lab tested, you know what, what's the lab, you know where was it tested and the legitimacy of it. But I find it interesting because supplements at Amazon are quite expensive. You know I take fish oil every day and a jar of that isn't cheap and you know it adds up really fast. So I can see that in the margins probably like 50 percent, right I'm guessing, or higher.

Speaker 2:

It's pretty high yeah.

Speaker 1:

Yeah, and then when it comes to the type of client that you would like to focus on would be a Crayola, or a person or individual small business with a lot of little products that they specialize in that they can consistently deliver. I mean, what is that kind of person that you like to go after and how do you think you can help them?

Speaker 2:

We've done lots of work with like Fortune 500 companies and they're great in the fact that they allow us to do a lot of what we want, but the expectations are really high and you generally have 10, 15 people you're dealing with that all have different uh priorities, and that's one of the most challenging things about dealing with large companies. Uh, the other thing that's a little bit challenging is they have massive ad budgets and then figuring out how to actually use all those advertising budgets is a is a challenge. Ideally for us. The clients we work with are between one to 20 million. Uh, because it they generally have a team.

Speaker 2:

You generally have one to two points of contact, which makes the ability for us to manage the relationship a lot easier, and it also means they have enough money for us to get the results that we need or to have the budget to have the inputs that we need to help them get the best results on the platform. So that's kind of the sweet spot that we found and it's really where we kind of stick in our lane. But you know we've done the big companies. We'll do them again if they come back. But, uh, it's just a little bit of it's. It's a lot more work and it's kind of a headache dealing with some of those challenges.

Speaker 1:

Got it, got it. And then, uh, most important question you said you're from Connecticut.

Speaker 2:

I am.

Speaker 1:

Are you a Patriots fan, Giants fan, Jets fan? Connecticut doesn't really have much of an identity when it comes to sports. And have you lost that, or you've turned to Chicago and you moved out to Chicago.

Speaker 2:

Unfortunately no. So I'm like this is just going to blow your mind, but I'm actually an. Eagles fan.

Speaker 1:

Oh God, even worse.

Speaker 2:

My aunt and uncle went to school in Philly, and I went to school in Philly actually too.

Speaker 1:

Excuse.

Speaker 2:

Yeah, when I was little they just bought me all the Eagles stuff. I got hooked, but I will say I'm a bigger hockey fan than anything, so let's go, rangers.

Speaker 1:

Go Rangers. Yeah, there you go. They got a decent team this year, so I'll see you guys in the playoffs probably. So we'll see about that. We'll see about it. And if anybody is interested in your services and what you can do for them, what is the easiest and best way for them to contact you?

Speaker 2:

So one of two ways. Either reach out to us directly at the website amzadvisorscom, or you can email me directly, mike at amzadvisorscom, and I'm glad to help in any way that we can Awesome.

Speaker 1:

Well, thanks for your time today. It's been great. I actually really enjoyed this one. I learned a lot about Amazon and a lot about your business.

Speaker 2:

And I hope we can get you some good opportunities for you. I appreciate that a lot, Jeff. Thanks for having me again.

Speaker 1:

All right.

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