Part 2: How To Escape The Golden Handcuffs Without Risking Your Current Amazon Income
Imagine you have a piece of chocolate wrapped in gold.
You eat the delicious chocolate to satisfy your cravings.
But you throw away the gold wrapper.
That's the story of most Amazon sellers.
They pop the champagne when they make a profit on acquiring the customer.
And then forget about them and move on to finding new customers.
So they miss out on the gold - which could've fed them for a lifetime.
Let me give you a real scenario...
The Old Way - $30 Sales With 20% Profit Margins
Let's say you're selling a $30 product on Amazon.
And your product fulfillment & shipping costs are $12.
(Just to keep the numbers simple).
And you're paying another $12 in advertising to acquire the customer.
That's $24 in total costs.
So you're making about $6 profit per unit - which is 20% profit margin.
And you move on to find new customers...
The New Way - $90 Sales With 53% Profit Margins
Instead of making one $30 sale from the customer, what if you sold 3 products to that same customer?
Now you’re making $90 per sale.
Your product & shipping costs would be lower (because you’re shipping multiple products in the same package).
Let’s say your cost is $30 ($10 per unit).
But your advertising cost remains the same - $12.
So your total cost per sale is now $42.
And since you’re making $90 on each sale… That’s $48 profit per order.
3X Higher Sales & 800% More Profits
Instead of a measly $6 profit per sale, you’re now making $48.
That’s 8X more profits on each sale.
Your profit margin shoots up to 53% instead of 20%.
Just an extra 10 sales a day is $480 in profit per day.
That’s $14,400 in extra profits per month.
Or $175,200 in profits per year added to your bottom line.
What would you do with an extra $175,000 in profits each year?
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Re-invest the profits back into buying more customers?
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Hire a new A-player on your team?
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Add 10 new cash-flowing products to your catalog?
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Treat your family to a few extra vacations?
What happens when you sell your business?
Let’s say you exit for a 3X multiple.
Because you have a $175k per year profit stream…
In fact, it gets even better.
You’re adding an extra $525k cash in your pocket.
In fact, it gets even better.
Because you're now making $48 per sale instead of a measly $6...
You can spend 800% more money than your competitors to acquire new customers!
You’re no longer obsessing over decreasing your ad costs.
Because even if your cost per click shoots up by 50%...
And your cost to acquire a sale goes from $12 to $18…
You are still making $42 per sale, instead of making $0.
That’s the power of a retention-focused business.
Add fresh new buyers to your
You’re no longer obsessing over decreasing your ad costs.
Because even if your cost per click shoots up by 50%...
And your cost to acquire a sale goes from $12 to $18…
You are still making $42 per sale, instead of making $0.
That’s the power of a retention-focused business.
The fastest path to growing your profits is to remove the obstacles that stop browsers from turning into buyers, and customers from coming back!
This solution is what we call, “Revenue Optimization”.
It’s where you optimize your customer’s shopping experience and increase their lifetime value, which naturally leads to you making more money.
Period.
The fastest path to growing your money (and profits) is to remove what's stopping browsers from turning into buyers, and customers from coming back!
In the past, you would need to get amazing at ALL of these:
Facebook Ads, Instagram Ads, Google Ads, LinkedIn Ads, Twitter Ads, YouTube Ads, Display Ads, Pay-Per-Click, Paid Search, Sponsored Content, Influencer Marketing, SEO, Email, and so on.
In the new world, you just need to optimize your customers’ shopping experience and all of your traffic sources will simultaneously convert better.
Giving you exponential growth—EVEN if you’re average at buying traffic.
You can't control the cost of Facebook or Google ads...
But you CAN control your customer's shopping experience on your website to maximize Revenue Per Visitor.
