Amazon Seller VS Affiliation

[kadream]

Hi,

This is my first topic. I have a choice to make and need your help.

I'm an experienced SEO guy and I began to make niche websites for 9 months (monetized with amazon affiliate commissions). I stopped to search for customers because it was like trading my time for money, you know the story... I now earned 1K in December and may earn about 300 in January (end of Christmas craziness).

I have ear about amazing selling machine gurus (they say you can win 1K+ next month) and I found The Fast Lane Forum last week. It seems I could scale things quicker with this type of business than with affiliation websites.

What do you think would be the best choice regarding my background ?

1) Start from scratch because amazon selling is THE thing this year
2) or continuing what I've just begun and stay focus (I estimate stable 1K+ income in 6 months)


This question can be generalized to "when to focus and how long VS search for new opportunities"

Thank you very much.

 

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[Vigilante]

Do both.

 

[kadream]

Thank you for your answer. What are your arguments for doing both ?
Because I feel that if I do both I'll will be less focused, worse and my growth will be slower for "both".

I worked on maybe 5 to 7 projects at a time for my 3 first years of entrepreneurship. Some worked, most not. Doesn't seem a good thing as I'm still struggling to get a minimum (like 9to5) money after 4 years. Since 2014 I say to myself "You did everything wrong, now do only one thing right."

 

[GuestUser113]

Hi,

This is my first topic. I have a choice to make and need your help.

I'm an experienced SEO guy and I began to make niche websites for 9 months (monetized with amazon affiliate commissions). I stopped to search for customers because it was like trading my time for money, you know the story... I now earned 1K in December and may earn about 300 in January (end of Christmas craziness).

I have ear about amazing selling machine gurus (they say you can win 1K+ next month) and I found The Fast Lane Forum last week. It seems I could scale things quicker with this type of business than with affiliation websites.

What do you think would be the best choice regarding my background ?

1) Start from scratch because amazon selling is THE thing this year
2) or continuing what I've just begun and stay focus (I estimate stable 1K+ income in 6 months)


This question can be generalized to "when to focus and how long VS search for new opportunities"

Thank you very much.

Have you read The Millionaire Fastlane book? http://www.amazon.com/dp/0984358102/?tag=tff-amazonparser-20

POWER PARTHENON OF GEOMETRIC BUSINESS GROWTH
By Jay Abraham

This concept is predicated on the very, very simple assumption that 99% of all companies today, and 99% of all companies ten years ago, generate the vast majority of their revenue, and income from one primary revenue activity. And that’s the dumbest thing in the world, because with just one pillar supporting the entire revenue stream (it looks to me like a diving board,) it is very, very, very precarious. A diving board has never been a means for propelling anyone upward to growth on a sustained basis. You do go up for a moment in time, but eventually you plummet back down. I try to get everyone I work with to build pillars and pillars and pillars not unlike the Parthenon in Greece of additional, complimentary revenue and income-generating approaches borrowed from outside their industry. And if each one only adds 10% more… 15% more… 20% more… the combined geometric effect can be hundreds and hundreds of percent growth. And everyone thinks that my press and my track records are almost hyperbolically ludicrous. They’re not. I’m just one of the few people who understands how much more you can actually get out of an opportunity, out of an effort, out of a day.

http://abraham-pop.s3.amazonaws.com/Abraham-101.pdf
http://www.earlytorise.com/the-principle-of-multiple-pillars-of-income/

 

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[Vigilante]

If you build your whole business on an Amazon affiliate model, and then Amazon changes the rules or eliminates the program, where would you be?

http://www.postbulletin.com/news/po...cle_f11adc5b-3cb6-50bb-a090-52a0ca36dfc1.html

Ideally, no more than 20% of your income would ever come from a single source or channel.

 

[GuestUser113]

If you build your whole business on an Amazon affiliate model, and then Amazon changes the rules or eliminates the program, where would you be?

http://www.postbulletin.com/news/po...cle_f11adc5b-3cb6-50bb-a090-52a0ca36dfc1.html

Ideally, no more than 20% of your income would ever come from a single source or channel.

 

[AllenCrawley]

Amazon is making it increasingly more and more difficult to sell on amazon. More and more categories are becoming restricted meaning you have to go thru a ridged approval process before you can sell in that category. This is ultimately a good thing as it increases the barrier to entry. The time to become an amazon seller is now.

EDIT TO ADD: Don't just create an "Amazon business". Create a brand and use amazon to launch your products but eventually diversify your distribution channels to your own website, wanelo, opensky, etsy, ebay, retail, wholesale, etc.

 

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[kadream]

Thank you Raoul and Vigilante. I didn't saw things like this. I always think scientifically about generating more earnings with better process and better scalability. But I forgot to think about risk this time.

I'm beginning to read the millionaire fast lane. Moreover, I took a slap with the video. Because my current model rely only on affiliate and SEO. See the double risk ? Crap !

 

[kadream]

Amazon is making it increasingly more and more difficult to sell on amazon. More and more categories are becoming restricted meaning you have to go thru a ridged approval process before you can sell in that category. This is ultimately a good thing as it increases the barrier to entry. The time to become an amazon seller is now.

EDIT TO ADD: Don't just create an "Amazon business". Create a brand and use amazon to launch your products but eventually diversify your distribution channels to your own website, wanelo, opensky, etsy, ebay, retail, wholesale, etc.

Thank you Allen, I really mean it. Would you advice a particular category with less risk as I would begin "in my own name" (I can't afford better company creation in my country) and without insurance. So I don't want to hurt anyone with my products.

 

[AllenCrawley]

You can search google for 'unrestricted amazon categories' to see what you can find BUT that is a bit backwards thinking. Identify a product(s) that brings value to the marketplace first.

 

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[GuestUser113]

Would you advice a particular category with less risk as I would begin "in my own name" (I can't afford better company creation in my country) and without insurance. So I don't want to hurt anyone with my products.

https://www.thefastlaneforum.com/community/threads/how-i-went-from-0-22k-in-30-days.57480/

Read that thread, then check this out: http://readsource.com/business/from-0-22k-in-30-days-how-i-did-it-and-how-you-can-in-4-steps/

He shows you how to find a product. If you can swing a INSIDERS membership: https://www.thefastlaneforum.com/co...s-how-to-create-something-from-nothing.47966/

 

[kadream]

Thank you all. So much info to absorb after one little question.

 

[Kak]

"Amazon selling" as you say it is not a business. We don't just simply open an account and start making money... Making a brand, negotiating terms, importing the products, honing logistics, widening margins, getting the packaging and the pitch right, creating a real product line, making your supplier exclusive, buying your supplier... This is a business not a joke.

Amazon is a great first distribution channel for consumer brands you create... But it is a hobby for those who do not intend to go this route.

That is how it should be treated... Like a cog in the wheel or a little bit of a jumpstart. Now, I'm not going to lie, it is super easy to treat it like a crutch, but you need to get out from under it. Plan your distribution potential from the beginning... Hint, this is a mistake I made.

 

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[kadream]

Thank you Kak. Frankly, last month I didn't think about going build a brand or sell on Amazon. So I'didn't saw this as simple/a joke, but as a crutch, yes. Simply because I do have a plan in affiliate websites. And I don't have yet on selling. I don't see so many opportunities there right now. I just spent time on it (and took INSIDERS) because you guys slapped my face on the risks of my current affiliate business... I don't see yet where I can add value on Amazon (more than obvious good customer support or good explaining manual).

 

[putinwork]

Every day I read stories of people getting banned for no reason and this and that.....you don't want to rely on Amazon or your competitors manipulating your "Amazon Business". It's a great traffic/sales/brand builder, but try expanding other sales channels asap. That's what I'm working on for 2015. I don't want Amazon to have more than 30% of sales revenues, or better yet 20% or less as MJ stated.

 

[Kak]

Allen that is going to be really difficult since they are the worlds largest internet retailer. You are going to need some B&M distribution to get it there for sure.

 

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[James Fake]

To answer the OP's question: Do Amazon.

 

[kadream]

To answer the OP's question: Do Amazon.

I think you mean selling not affiliate.

So thanks for your advices putinwork and JamesF.

 

[kadream]

On the profitability of selling my products (Amazon for example) :
I found a product 13€ on Aliexpress
I could sell it 25€ (1€ less than my hypothetical main competitor on Amazon) it' near 100% more than aliexpress
Amazon FBA takes up to 1.3€ fix + 1.9 shipping = 3.2
Amazon referall takes 0.13*25=3.25
Profit : 5.55
Taxes : 3.25
Net profit : 2.3

What do you think of the profit ? Bad item choice ?
So charge 200% of Aliexpress is not enough ? I must find x3 or x4 only products ?

Comparing to what I know, it seems to me way easier to make someone buy the competitor item (which has already 2 good reviews) through Amazon affiliation which makes me 0.05*26€ = 1.3€ minus 0.3€ of taxes

I don't speak about risk, I understand this point. But about figures here. What is your opinion ?

 

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[InMotion]

What do you think would be the best choice regarding my background ?

Ideally, no more than 20% of your income would ever come from a single source or channel.

I think everyone should heed Vigilante's words here.

Commandment of control etc.

Tons of comments online on how Amazon has wiped out many sellers, most claim through no fault of their own.

http://www.startupnation.com/start-your-business/plan-your-business/amazon-fba-program/

http://www.cpcstrategy.com/blog/2014/05/commingling-amazon-fba/

http://www.ecommercebytes.com/cab/abn/y13/m03/i19/s02
http://www.cpcstrategy.com/blog/2014/05/commingling-amazon-fba/

 

[Vigilante]

That being said, you can spend all day reading horror stories of other people's experiences (with Amazon, with Paypal, with the IRS, etc..) or you can do things to stay out of harm's way.

Spending time, by way of example, on Amazon discussion boards... is a bad hobby. They're full of people who have run afoul of Amazon selling practices, many of whom have been banned.

If you ever get in trouble, you can post there as a resource to get some help. But... a word of caution, don't spend time there. Reading their threads might get you unnecessarily freaked out, unless you realize those folks are the exception and not the norm.

 

[kadream]

But... a word of caution, don't spend time there. Reading their threads might get you unnecessarily freaked out, unless you realize those folks are the exception and not the norm.

You are right, I've just freaked out after reading the 3 stories...

 

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[kadream]

Update :
I followed your advices guys ! I did both.

My successful pillars are :
- I am still in Amazon affiliate with SEO. It still works for passive income (3k+)
- I sold on Amazon for 5 years (sold the business in 2020).
- My wife started her business and I am able to help her grow quickly
- SEO services. This one is not passive and not scalable. But it is nice to know that even if all the other revenue sources fail, I am able to find a client with 6k+ margin anytime.

What I tried and failed big time :
- Selling SEO trainings creating a Youtube channel. When you don't like to be on camera (more a number-person than a person-people), viewers think you are a lier.
- Dropshipping with SEO : Never fully engaged because I didn't trust in the value of the business. So I quit after 6 months without any sale