How to Get 10,000 Reviews on Amazon

Hello, my friend. And Justin, can we bring you into this thing?

It's time for a simultaneous sip. Here he is.

That's what I'm talking about.

Are you guys ready to do this?

Let's do this.

All right, ladies and germs, it's time to talk about 10,000 reviews. But first, we have something that we do here that requires universal participation. It requires everybody, and it's something that we like to call the simultaneous sip. Although here in our capitalism cult, I think we're gonna have to get our own name for it. We're starting to get some pushback for stealing this from Scott Adams. So for now, grab your cup, your mug, your glass, your chalice, your stein. I've got a stein, a flask, maybe a tankard, could be a thermos, anything that you desire and fill it with a liquid. I've got coffee with some sort of cocoa something. And join me now for the simultaneous sip. Go.

That's what I'm talking about.

Oh, Gabe, yours is spiked.

Justin, yours must have something extra in it, so you'd be getting all these reviews.

I just gotta brag on you guys for a second while I pop in my earbuds. You know, Gabe, I think you undersold the rockstar team that y' all have over there.

I mean, we've.

We've gone through one exit.

We have.

That all are doing well. Your company has continued to grow year over year. You guys have a team that is really tight and you guys are super young and still figuring everything out and yet you've done really well for yourself. So Justin, you and I have got to know each other over the last several years through the back room.

But. But I was hoping you guys could give a little bit of background on your. On the company and like the overall vision for what it is that. That you are trying to do. Would you. Would you be willing to share? We dive into everything else.

Yeah, absolutely.

So.

Jeremiah and I started roam about. Yeah. Five years ago in 2015. Wow.

And yeah, Jeremiah obviously is not on the call today, but he's here with us in spirit. So we. It basically it's an adventure lifestyle brand and we were just really passionate about, you know, travel, adventure, things like that. And so we just make products for people that live an active on the go lifestyle. And since then we've been able to grow the brand to a multi seven figure brand. And we've been able to do it through strategies that have kind of been tried and proven. Jeremiah, he also has done this in other businesses like you Mentioned Ryan, and he's been on your podcast, and he's had another business that he's exited. And now kind of the vision for Roam is to really just provide some of the best customer service out there and some of the best value for our customers out there. And I think people underestimate how much that can build a brand, and it can also build your products. And then the vision for the company is to kind of set it up to continue to flourish and then sell it in a few years.

Gabe, what I thought was interesting about the video that you put together that walked everybody through the SOP was you kept saying over and over again, the goal is to just overwhelm the customer with a good experience. And you have mechanisms for doing that. Like you made some sample copy that you use manychat to fulfill, and you have, like, certain strategies that you use to overwhelm them. But the. The over. The overall strategy is overwhelm them with a good experience, and some of them will leave reviews and do that at scale. And you have. You have yourself a company.

It's really funny because this is actually the same strategy that Starbucks does. And I come from Starbucks. I worked there for, like, seven, eight years, and they do the exact same thing. So when I came on with Rome and saw that Rome was doing this, it all just made so much sense. Now, like, that can transfer to online.

Yeah. So explain to me the different roles in the company. Gabe, what is your role versus Justin's role versus Jeremiah's role and who else is on the team?

Yeah, for sure. So I am the Chief Project Officer, so I pretty much implement the ideas that they come up with. So Justin, he is the CEO, so he is pretty much in charge of managing me, making sure I'm doing everything I'm doing.

Technically, Jeremiah would be the CEO.

Right. I always get those confused. So Justin is the CEO. He's still in charge of managing me, making sure I'm on task, making sure I'm still doing what I'm doing. Jeremiah is the coo. He make sure that we're profitable, make sure everything's running smoothly. They tell me what to do, I implement it, and we love it.

That's great.

Yeah. And if I could speak to the structure of the company a little bit right now, how it kind of looks is like.

The titles don't really matter so much because it's like Jeremiah and Gabe and I, you know, besides Jeremiah and I being the owners, it's kind of like all. If you were to think of it as like a Board of directors or whatever. It's like me, Gabe, and Jeremiah, and we're running the company. And we were looking at the growth pattern for the company the other day, and we were like, you know, for where we're going and where we're headed. The rest of the company is then virtual assistants. So it's like us three and then virtual assistants. And that's kind of the hierarchy. And we really don't foresee that.

Changing. You know, we might add a few more BAs, but it's really a simple structure and we kind of all keep each other accountable. We kind of all have maybe little different nuanced things that we do. But yeah, we're kind of just all running the company from. From the standpoint of like it's us three, and then we. We hire out and subcontract the rest.

Okay. And the strategy that you're using to get thankful thousands of reviews was, was this used over in the previous company that was sold and was brought over, or has it been refined and changed since?

It's been refined and changed over the years a lot.

Okay.

Obviously five years ago, incentivizing reviews was okay, so. But still, the principles still apply.

Yeah, makes sense. And Gabe, you said something interesting in the video, which was talking about how some products take a really long time to ROI under this thought process, because you are giving so much to the customer. So that can scare some people. It can also scare away competitors. So would you walk. Would the two of you walk me through that thought process of how you are determining what you are willing to put on the table while also putting proverbial food on the table, if you will, Leaving room for profit for sure.

Justin, you want to take this one? I feel like you're going to have a better answer than I will for this, to be honest.

Okay, so could you say the last part of what you're asking, Ryan?

Yeah.

So. So how are you weighing get overwhelming the customer with value while also leaving room on the table for profit?

Yeah.

I mean, I guess it seems like a straightforward question because in my mind it's just like provide a product that performs and treat the customer like you actually care. Right. So it's like it always seemed like second nature, I guess, to us. But then we realized that a lot of people don't do that.

So if you're. When you're in the product phase and you're choosing a product, hopefully you've left room for margin. Cause I've also seen some people go the other way where they just make this crazy Expensive product that they can't afford to sell in their marketplace. So before going into a market, you do need to make sure you can provide a high quality product that still has room for profit margin and things like that.

But maybe like in the overview that you guys put in the members area, there was, there was like the whole process can be expensive per customer. Right. Of not only fulfilling the product, but I mean the follow up process, the things that you give them to enhance their experience.

Yeah.

Like all of that can add up. So are you in some way, are you kind of working into your calculations that not everyone is going to become.

Is going to eat into that profit margin? You're going to have what we might call breakage or spillage. Yeah.

Up front. Yeah. And you just got to be ready for that. That was something when I first started five years ago, I had a really hard time with because you would just lose so much money up front. But then once I saw the results that it yielded over time, over a matter of even a few months, it was like, oh, okay, this is worth it. This is the upfront cost of starting.

Starting the business, you know, so help us understand that, like for those of you watching, I mean the whole strategy and SOP is in the members area. So like we don't need to walk through every step of the process. But Justin, help me understand what you, what you just said that you, when you see the results kick in, it settled that part of your brain that was like, this costs money, this is expensive. What results? And when did you start to see that? Relax a bit.

Yeah.

And the best way I can describe it is actually something you used to say that I remember from when we first started was the further you can go into the red when you start, usually the better results you'll see. So you start to see the results once you start getting momentum because it's, especially if you're selling these products exclusively, launching on Amazon, you have to get that momentum and.

That takes time and it takes real sales. So once you're paying for advertising, if you guys have looked at the SOPs, you're paying for all these different forms of advertising through PPC and Facebook. But then once your product starts to rank in Amazon's algorithm through those ways that are more organic, and that's when you start to see the results and then you start to see the organic sales come in and then you're like, okay, this is paying off.

That makes sense. So the, so the really expensive part is that upfront buffer period where you're paying Money for advertising. You are, you're in what we call the grind. You're dumping as much volume in the front end as possible, knowing that the system that you have outlined through ManyChat and through the other, the other pieces of that process are going to capture that experience and put them through the review getting process. Is that what you're saying?

Yep, exactly. Exactly.

And then, and then you start to see momentum when you're. That the organic sales are now covering the other expenses.

Right.

Coming from the system.

And then you're at break even because now your organic sales are still coinciding your, your advertising, your cost of advertising essentially. And then you're seeing reviews come in. Then the momentum builds, but it's slow. So it takes time, but it starts to pay off. And that's when you see the results coming in.

Got it. So today.

How would you guys like to dive deeper into your strategy? I can pull it out of you, but you guys are also very prepared. So do you have something, do you want to lead the conversation or would you like me to lead the conversation?

Honestly, I think we could do this. I think we got this. We outlined this whole process. For those of you who haven't gotten the sop, first off, you should absolutely do that. Really pretty in depth, comes with visuals. Really well done. But for those of you who haven't looked at it yet, I'm going to give you a quick overview and then I'm going to pass it over to Justin. The overview of the process is that we deliver value and velocity. That's what we call this, the value and velocity principle. So the idea is that the more sales you get, the more likely you are to get reviews. Super simple, super logical, straightforward. But then the downside is if you only focus on increasing your sales and leveraging sales, you're not leveraging positive reviews. You're increasing the likelihood you'll get reviews, but it's no guarantee that they'll be positive. So that's where we add the value. That's where we add a obscene amount of value to our customers. That's the overview of the process. And then Justin's going to explain the velocity side of this.

Yeah.

I guess it kind of starts with the velocity, doesn't it Gabe?

100%.

Yeah. So essentially it's like the chicken egg theory. You need sales to get reviews and you need reviews to get sales.

So kind of, I mean, Gabe, how this process really starts, when you say it really starts with first paid advertising, and that's where you're getting the Sales and you're offering obviously if you're, if you've looked at the sop, so we won't get into the details. If you're offering the discounts through Facebook ads and then you're doing ppc, you're going to start getting sales.

And the other thing that I think is really important and this was really hard for me at first, especially first product launching, your first product is you have to put, and just for the beginning period at least, or if you're relaunching a product for that relaunch period, you have to put your price lower than you normally would or what you are anticipating putting it at, you have. We call it competitive pricing. So if everyone in the market is at $20, you come in at like $18 or $17.

And, and Justin, this is, this is like Amazon philosophy specifically.

This is specifically. Yeah, we are talk, that's what we're talking about today, right?

Because, because, yeah, just, just for context, right, we are, we are now talking about Amazon management, not necessarily business management. So when you are, when you are launching a product and the goal is to maximize the volume from Amazon, what is being said is you come in at a lower price at the beginning in order to get volume or what we're calling velocity through the system and allowing the process to bring those initial sales into a review getting process until we can then go into more of a brand building or business building mode which would be higher prices, more of a moat around your competitors, more audience building. So I just wanted to add that, that nuance because I know some people have read my book and are looking at it from a brand perspective versus Amazon management perspective. And those are two different mindsets and they both are great.

Yeah, absolutely. And the other thing you got to think of is when you're launching that product, you have no social proof. So especially if you haven't built the brand outside of Amazon first. So you kind of have to prove yourself a little bit and be willing to give people that discount up front in order to get those sales. So yeah, so that, that really helps to get that velocity because now you have the advertising kicking in, you have all those things happening and, and you're at a competitive price. So people are willing to give you a chance because you don't have as much social proof. So the buyers are scrolling down page one and they're like, well, this person doesn't have as many reviews but their price is good and the product looks really good and they have great photos because hopefully you have good photos and all that, because that contributes to the, the value piece of it. So, yeah, and then you're, you're gaining velocity through that. And that is kind of something that is just there because you have your price lower. It's giving you a little bit of an edge.

So that's how you're, you're, you're kicking things off, right? You're getting some, some velocity in the system. You've got pay per click ads and you've got, you've got a lower, lower entry point, lower entry price. So, Justin, it makes a little bit more sense and confirm if I'm following your thinking now, that when you kind of got into this, there was a little bit of like, this is expensive because you've got a low price, so you've got less profit. You're building a great listing and you're running pay per click ads and you've got this system running in the background. It would make sense for someone to look at that first coming into a business being like, how do y' all make money?

Yeah. Oh, absolutely. And especially like, you put all this hard work into developing the product and making sure it's good. So you don't like, it's like an ego thing. You don't want to keep it at a lower price than what you believe it's worth. But it's just for a time. Right. And I think it's important to mention the time when you'll know it's right to up the price is you do it slowly and incrementally. But when you have more reviews and you are ranked better in the algorithm on the keywords that you're targeting, like your top one or two keywords, that's when you'll know it's time to start upping the price. And you do it incrementally and you watch how it responds. Like, does it fall down in the algorithm or does it stay ranked where it is because you want to, you really want to keep whatever rankings you've built up.

Now a question for you, Justin. My, my approach to this would change if I had an audience that I was launching to. And I, I think you started Roam with no audience.

Yeah.

You just started taking sales. So I'm just curious if you share in that analysis that if, if you had, you know, if Gabe all of a sudden decides he wants to be a snowboarding influencer and has a hundred thousand people following him that are active. And he said, yeah, and he starts, he starts posting about Rome at the beginning to get initial sales, would you still Follow the same pricing and Amazon management or would you just run the review getting process in the background of Gabe's influence?

If I were doing that with an influencer, I would still, I would still do the same process.

Interesting.

Tell me why on Amazon specifically, unless I was launching on website, different strategy altogether, which I would even argue if you're launching Cat to an audience, even on your website, still give them a discount if it's the first launch of a product. Right. Because you're building that social proof again. But anyway, Amazon specifically because you want every edge you can get and you want to like catapult that product as far forward in the beginning as you can see, because it all translates into ranking, into the algorithm, into getting reviews. And in Amazon's eyes, if your price, if let's say you want to have your product at $25 and you set the price to 18.

It'S still going to count as a full price sale in Amazon's algorithm, whether it's 18 or 25, because it's whatever you have set at, it's the discounts that aren't going to weight as heavy in the algorithm.

So that makes sense. And Gabe, you are not.

What would you add to that?

Gabe?

I was just agreeing with that. The whole idea that like you were talking about, if you want to really succeed, especially on Amazon, then the further at the beginning, the further you go into the red, the more likelihood you would be to shoot forward and make this successful. And so I feel like the same principle would apply here that yes, if there was a big influencer, absolutely leverage that. But I wouldn't necessarily, personally, I wouldn't say let's raise the price or let's be a normal competitive price or normal price as opposed to being a competitive price. Just because we still have the influencers. I would say let's just double it up, let's go all in.

You know, it's so interesting because I, I disagree. And they would both work.

Yeah.

So it's like I just, I'm sitting here like in my brain weighing like should I push back or are they right? And it's like they both work. It's just a management of what's right for your business. And what I love about what your team has put together is the only variable is can we get sales on the front end so that the machine and the system takes care of the rest and everything else is variable. Right. So I'm sitting here going like, like my businesses, I launch them with influencers. I want to play the price game. As little as possible. I want to build the brand. I want to have profit margin from the beginning. And I'm okay scaling that slowly and profitably. And Gabe and Justin are in the position of like, let's go mother licker. Like let, like, let's put, like, let's put our chips all in. Let's, let's break even or even at a loss for a while. Let's win the Amazon game and move on to other things. And guess what? They both work. They both work. Here's what does not work. Having a big launch and then having no system to follow up with those customers, to provide value for them and getting them into a process to follow you and to review you, which is why you have the one, two punch of volume and velocity. All right, so Justin, I cut you off.

Because I wanted to add that context, but.

You were on a tear going through the rest of the process. I don't remember where we were because we went down that rabbit hole right there.

Well, I think, yeah, I think that was it for the velocity piece. Just speaking to the importance of that up front.

So actually, Gabe, do you want to kind of speak to the idea of the law of reciprocity?

Yeah, this, I love this part. I love this part.

Okay, so the law. If you guys are familiar with the law of reciprocity, go ahead and put a yes in the comments because I'm super intrigued. Super intrigued. If anyone is. If you're not.

Yeah, Gabe, how did, how did you discover this? Is this a Cialdini thing that you discovered this?

This is something that, like, I love psychology. I'm freaking obsessed with this stuff. So, like, this is just something I've learned over the years. I'm all about it.

Oh, Greg.

I see you, Greg. Okay, cool. So the law of reciprocity is essentially if you give someone something, if you're nice to someone, if you provide value to someone, they are more likely to provide value back. If you boil it all down, that's what it comes down to. They naturally, we, in our minds, we have an account balance with every person we interact with. So if Justin here goes and is like, hey, Gabe, he lives in Colorado, I live in Maine. If he ships me a pizza or ships me a coffee, just something crazy like that. Right? Just out of the blue, I am more likely, when I see him, when I'm interacting with him, I'm more likely to do something nice for him. He's not asking me to do anything, but because he did something nice for me, I'm more likely to do something nice for him. Simple as that. So we've built our entire strategy off of that principle. And so when it comes to value, um, some people think, like, we run a lot of Facebook ads, a lot of rebates on our Facebook ads, anywhere between 30 and 80%. At one point, we were doing a hundred percent rebates and, like, throwing. We're not throwing away. We were losing a lot of money doing that. But we've kind of narrowed down the focus. But all throughout that process, a lot of people think, oh, that's the value you're getting. Okay, if I just run rebates, then I'm giving my customers value. And the reality is that's actually not the value that you're giving. Because when you say, hey, this is what I'm going to do to you, if you do X, I will do Y for you. That's not necessarily value. That's just a transaction. So what we do is, I'm going to get a little granular here. But we have very specific things that we will add value to for a customer once they've already bought. So we run the rebates to get as many customers as we can. And then once they've bought in, we'll have very specific things we do. For example, on our inserts, all of our inserts have, like a QR code. You scan it, you go to a page, and it just says, hey, thanks so much for buying this product. We will give you 50% off. Join our list. We'll give you 50% off a second one. They join the list. 20, 24 hours go by. We say, thank you so much for buying that second one. Excuse me. We say, thank you so much for buying that second one. Here is 30% off any of our product. Pick your product. We'll send you a code. They do that, we'll have like, three, four, sometimes five of those different processes, depending on the product, just giving an obscene amount of value at every single turn. And then at that point, that's when we ask, hey, if you want to join the list. Yeah, I saw. I saw you coming. I saw you come in there. We say, if you want to join our list, we would love to give you more of these offers. We'd love to invite you into our family. If you want to join the list, let us know. And then we get their phone, their email, and then we do the review. Ask after that.

So, Gabe, well, here's. There's two things that are just beautiful about what you're saying. Number one, thank you so Much for referencing the fact that the pricing strategy or the rebate strategy is not reciprocity. It's just a transaction.

Yeah.

And it is only transactable if there is reciprocity baked into the system. Right. So thank. Thank you for that. Of course, there is a wonderful example of this where Gary Vaynerchuk did one of his episodes with somebody who advises restaurants, and he was saying, you want to know how to grow a restaurant? You remember this game?

Absolutely, Absolutely.

So he's like, every time somebody comes in, we ask the customer, how have you been here before? And if they say no, they give them a red napkin. Right. And the red napkin is like, the special person of the day. The other waiters and waitresses come over and greet them, say, thank you for being here. Welcome in. We're so glad that you made it. They give them a great experience. At the end of the meal, they say, your meal's on us to.

And they walk out. Right. Oh, and here's. Here's a coupon for a free dessert. You got to come in for the free dessert. And as a result, there's like. Like, how do I. How do I not come back here? But if you put an ad outside that was new, People eat free. There's no reciprocity now. It's a transaction.

Right.

That's the difference. That's why so many people don't get.

Get it.

Don't get this. This is why the value part actually matters. So, Gabe, well said. And I love the, like, acceleration that you have of, like, you have the first transaction go really well, and then you blow them away, and then you blow them a little bit more, and then you ask for something.

Well done. Yeah.

Thank you.

It's a beautiful process. We're so stoked to be able to do this. But the other thing to say is if for some of you guys, you're wondering, I'm sure you're wondering, oh, my God, this is so much money. I barely breaking even as it is price lowered. How can I give away these rebates? But for us, that's not the only source of value that we're giving them. We have a couple others. One of them is our customer service. This is something that is so overlooked. Like I said at the beginning, I worked at Starbucks for seven years. I am a huge believer in Starbucks. And honestly, their customer service excels. The reason why they are so huge is because of their excellent customer service. And it's something that is so overlooked, especially when you're building a business that's Online.

So rare, too. Gabe, we were talking about this the other day.

So rare.

To get good customer service. Oh, yeah.

It's crazy. I hate. I don't know if I should say this, I hate going to other coffee shops other than Starbucks for that reason. And it's not necessarily because of the coffee. It's because of the service.

And so that's one of the main. That's another area where we provide so much value, is we go above and beyond for every customer that we can. I know in your book, Ryan, you talk about it, about treating that customer as if they are your business. Because they are.

They are.

They are. It's really simple. So we go through that whole process. We give them a ton of value, whether customer service or different rebates, and then we do that review, ask.

That's the value. That's the whole process right there.

Beauty. Now, would you walk us through the way that you're communicating with these customers? So when somebody transact with you in those early stages when they were operating on a discount, are you following up with them through Amazon system, through something else? What tools are you using for that?

Great question. So when someone originally buys. So regardless of ppc, regardless of rebate, however it is. So if they buy. Actually, let me rephrase this. If they buy via ppc, then we. We obviously we send. We have Amazon service that'll send them the typical emails, but there's very little response from that. And we all know this. It's not. It's not ideal. So what we do is we try to engage with them in a personal way. And one of the best ways we've found to do this is through a system called Minichat, which is just a social bot interacting with people via Facebook Messenger. So when they get the product on the. On the insert, there'll be the little QR code. They scan it, and it goes to a landing page and says, hey, here, we would love to have you. We'd love to give you all of these different rebates join our list, and they join the list on ManyChat, and that's when the whole process starts. So if they go via Facebook, via Facebook ad, then right off the bat, they're joined into ManyChat. They click on the ad, they enter a whole flow in manychat, and that's how they get their rebate.

Got it.

Cool.

And actually, I just want to point out something that Adam A. Said that's kind of important in this process. He said, from what I understand, a deeply discounted sale disqualifies that buyer from leaving a review.

And that is true. It depends on how heavily discounted the sale is. But also one of the big keys here in this whole thing for, for getting good high quality reviews that are within TOS and you know, actually genuine is the Facebook ads. And what we're doing is giving the customer a rebate not through Amazon. So that review is still verified.

Meaning the rebate can come after the purchase.

Yeah, it comes after the purchase. Yeah. Sorry for clarifying that.

And also you're testing different rebates and you're testing different offers and you're testing different things throughout the value ladder.

Yes.

That aren't necessarily just get cheap stuff.

Yeah. No, it's not 100% rebate.

Yeah.

And then like it's all different kinds of 30% and like on us, not through Amazon system where we after the sale go to the customer and give them that rebate that we promised them, which they're okay with because we let them know that up front.

Yeah.

So let me, let me recap the process as I'm hearing it. So you launch, you launch with whatever it takes to get velocity. And with from a cold start that means a discounted price, some Facebook ads and Amazon pay per click, whatever can feed the system with sales and transactions. Which by the way, this is the exact same process that we've talked about with Travis Killian on the show, which is just at the beginning. We stuff the system with as much as possible in order to get Amazon to take us seriously, to rank for keywords and to get momentum moving. The second thing that you do is you have customer follow up processes where you're using manychat and email follow ups depending on where they are in the system to overwhelm them with value and a quality experience with both your interactions with what you're giving them and also with the overall just customer experience and customer service. And then deep in the process, you're asking them to either get plugged in or, and, or to leave a review. And doing that enough over time with enough volume is how you're getting thousands of reviews on your products.

Yes. And if I didn't miss anything. No, you didn't. I just want to highlight the two different ways in which you're getting reviews to start. The one that's coming more upfront in the beginning is from the Facebook ads. That's where the bulk of your reviews are going to come from. Not because you told the customer if they buy it or if they leave a review, you're going to give them a rebate, but because you're building that law of reciprocity. And I know, Ryan, this is something you talk a lot about and just harboring that goodwill toward the customer. And then you, because you have their contact information directly, because you got their information to start, you can just say, hey, would you leave a review? You don't say like you don't really. There. There's different ways to go about it. I won't get into that. But yeah, that's where most of your reviews are going to come from because you get to ask. But then because of that velocity piece and you're getting sales and your product's good because you've added value on that touch point as well, then you'll get reviews from there as well.

So that's what was the. What was the ding, ding.

I was like, preach it, brother. He was talking about the other way to give value isn't just again, through rebates, isn't just through customer service. There's a thousand ways. And what we probably should have said right up front is the most important is your product has to be freaking amazing. Your product has. It can't. It has to be the best within your price range. It has to be top quality. If your product is crap, if this was back in 2015 and you're just putting up something, whatever you can, and you're putting up crap, you're not going to last. Or you'll get reviews and they'll all be one or two star reviews and they'll sink your listing. That is one of the best ways to provide value.

And just one. One pair. One point of clarification. Justin, you said that at the beginning. That initial part comes from the initial roost come from the Facebook ad.

Yeah.

Is that running Facebook ads to the people who bought on Amazon or the. What did you mean by that?

Yeah, yeah, good clarification. Well, Gabe, actually, why don't you talk about that a little bit? The Facebook ads I got you.

So we actually. We run two different types of Facebook ads. That's a really interesting question. So we do. Well, actually technically three types. So we run Facebook ads to people who are just like our audience or lookalike audience. We also run Facebook ads to people who have. Who are interested in deep discounts. That actually gets a lot of people going through. So in the beginning, the other reason why this strategy works that we actually don't really touch on in this call. Yes, it works to get reviews, but it also works to help rank your listing. Because every time through ManyChat. When they click on the URL to go to your list, we'll have it indexed or we'll do a search find buy.

So it helps your listings rank, especially when they're brand new. All great stuff. And so doing the deep discounts, we love doing that because then people are just running through it and that's less about the review but it's more about getting, getting it ranked and then letting Amazon system take over. And then the third type of audience that we attack is the one who are interested in our type of product.

And where we, where's the audience coming from? Like it's specifically because that was one of the questions. Right? It's. We're essentially just doing. I can't think of the word right now. Well, look alike audiences. That's how we're getting.

From previous purchases.

Yeah, from. From previous purchases. Or if you don't have any, if you're just starting, you can just basically do whatever you think your target demographic is and make a look, look alike audience in Facebook that way.

So what, what you, what you said was the initial reviews will come from the Facebook ad. What I, what did you mean that your initial sales will come from the Facebook ad? Meaning that you're going out and advertising to pull people into the system and letting the system get reviews. Where I'm confused. As you said, those initial reviews will come from the Facebook ad. So is the Facebook ad running after the purchase to get people into the system or is it putting people into the sales system so that your follow ups get them to leave a review.

Into the sales system?

Got it.

Okay, cool. So you're heavy on Facebook ads in order to kick off the momentum to put people into that system that you've got to follow up with them, kill them with a great experience and then get those reviews.

Yes.

Got it. Loud and clear. Cool. Are you guys cool to take some q and a?

100% alright.

Awesome. So I prioritize people who have their video on. So Mario, if you want to pop on your video, I will take you in the meantime. Thomas Lancer, are you good to come on, Give me a thumbs up if you're ready. Now I have never done four people on a split screen. This is a new experience. I don't even know if that's possible, but we're going to try it. Here we go. Oh, y' all got a box. Look at that.

Everybody.

Love it.

Welcome, Thomas.

Welcome.

This is, this is the Young White Man's club right here. Look at this.

Oh man. Good to be here.

So the question I have isn't directly related to the, the topic we're covering today, but so Justin and Gabe, I always want to thank you guys first because I know there's like a lot of people in here doing the physical products and this is going to be like so helpful and so useful to them, scaling their brand and getting that spot in the marketplace. So that's awesome you guys are coming on here and doing that. But.

Question directed at you, Ryan. So over the past couple weeks I've been developing a high end digital product. So retailing for $1,000 is the first iteration of what I'm planning on it. And I have no list, no audience and basically I wanted to get your take on if you were in this position of you have this high end product that's worth this and even more and you have no connection to audience where, what are your first steps and what would you do to launch that?

Yeah. So I mean, first of all, do you have case studies or customer stories.

That could kind of prove the value that your course is going to bring to people's lives?

I don't have those yet, no.

Okay, so you have a digital product that you're coming in cold with. Right. All right, so I'm going to give you the same really awful hard advice that a mentor gave me, which is you need to launch to a very, very, very small group of people, punt the price and only focus on results for a while. So like for example, my right hand woman, Inez Manziano just did a weight loss product and her, she's, she's kicking things off by doing like her services are worth thousands of dollars. She did one $25 deposit refundable when you complete the 10 week challenge because.

She has no public track record to be able to run off of. And in the long run, meaning a year from now, that track record will be the best conversion source for her than anything else. So you coming out of the gate by saying how do I launch with a thousand people or with a thousand dollar course with no track record, you've either got to come up with a great webinar and run traffic to the webinar, which you can do by the way, but I would suggest that for the next three months you take what you create an irresistible offer that gets people into your system. Just like Gabe and Justin have a system for killing people with a experience. The same thing is true for you where you have to do whatever it takes to get people into that initial system, get them amazing results and you use those results to be able to put them in your webinar, to put them in your ads, to put them in your emails so that your conversion rate is a lot higher. That will actually be long term, meaning six to 12 months from now, a faster route to pater than you're trying to launch out of the gate with $1,000 product. Unless you've got a great sales mechanism, which we can talk about if you want, or you have an audience, which we can also talk about.

Okay, yeah, that's. I was just watching Russell Brunson's Get a High Ticket seminar this past weekend and he talked about getting the. One of the steps to become an expert is like having those people go through and like getting their reviews and the testimonials.

Okay.

But also remember, like if you've read Expert Secrets, Russell talks about this, the sales mechanism happening after you have fed the system with amazing feedback from people. Now that could be as simple as, and this is just audience building 101, putting people into a Facebook group and teaching some stuff and getting amazing feedback in the comments and in the posts and then doing a launch to those people. But you don't go from hello, nice to meet you to would you like to come to bed with me within 10 minutes. You have dates in between and you have. This person was happy with my services too. So you have social proof that comes along with that. You have, you have, you have status and track record that comes with that. And that has to be built. And that, and that can't come from the very beginning. It has to come by you feeding the system with what we were calling reciprocity on this verse.

Yeah.

Okay, that's. Do you have any idea how long I podcasted before I came out with a thousand dollar course? I don't know. A long time.

Very long time.

Okay, now again, you can do it, but your process is going to look a lot like Gabe and Justin's where you're going to be running Facebook ads at break even or a loss in order to get your initial customers. You're going to be going in and giving an amazing experience to them. You're going to be using those results as you're retargeting ads. And it's going to become a system that builds over time, but it doesn't go from zero to taking a thousand dollar sale out of the gate unless you have an audience or unless you've got a great sales mechanism, both of which take time and work.

Okay, thank you, Ryan.

That's helpful, man.

Very helpful.

Thank you.

Good.

And thank you, Justin, again, for giving this value to the community.

Thanks for joining, man.

Yeah, thanks. Good to see you, Thomas. I would really like to get a female in here. So if you're in the 1%, and I am giving priority access to.

Females, since we are a little testosterone heavy over here.

A little bit. So if I sent a text to the community, you've got a link to come back here if you would like to come join. Gabe, you mentioned that you came from Starbucks. Very different business than what you are doing now. Did you go from Starbucks to Rome or have you. Was there an in between as well?

So it's funny that you say that. I was working at Starbucks. Worked there seven years. And during my last year or so at Starbucks or during about two years, I saw all the results. I saw Maya, I saw my little Jeremiah. I saw he was killing it, and he was. He was becoming the kind of person I have always wanted to be. And I was like, you know what? And I'm like, he's doing something and I want to. I want in on that. And I realized it was more about the entrepreneurship, less about the business style, but more about the entrepreneurship, the community. So then I took about. I took about a year to two years deep dove, read almost 200 books.

Jeez.

I. I listen to about two or three a week. Yeah, it's. I absolutely love it. I went crazy in. But I did that in order that I could provide value because I knew if I want to be in the entrepreneur community, I know nothing. I was a musician and I was at Starbucks. I'm like, being an online business, I know nothing. So read a ton, got myself in a good position, did some consulting with some e commerce businesses. And then Rome took me on. And when Rome took me on, I left Starbucks. Simple twist.

What was the consulting work that you did in between?

I helped. Actually, I helped my other family. You've met my parents. I helped them grow their Amazon business.

Okay, great.

Exactly. So they were going through some. Some struggles, and so I helped them push through and develop a similar system for them.

Yeah, Justin, you were gonna say.

Yeah, just to brag on Gabe a little bit. We actually took him on as a subcontractor at first, just doing work here and there, but then he was working out so well that we were like, all right, dude. Like, we. We need you on full time. So we just kind of worked some stuff out and brought him on full time. And it's been awesome.

So, yeah, I have a little hiring tip. I have experience that all. Hold on. Everyone on my team and everyone who stays long term, I do a test with first.

And then you decide if you want to get married.

Yeah.

Everyone that I like, the hard fires the like. I thought it was going to work out and it didn't. Were all people that I hired cold, they started and then it didn't go as expected.

And that everyone had before, Gabe. Yeah, exactly.

And that was like a recurring thing. Right? Or it's like you're trying to make this work and it isn't working.

And we. Yeah, and we way overpaid and way. And our guy was way under delivering and we're like, why isn't this working? Why isn't it working? So.

Yeah, yeah, understood. So Gabe, reason I brought up that transition is I was curious what you saw the crossover between the two of the Starbucks world and the E Commerce world. And what I'm basically hearing you say is that if you bring that world class experience into even a competitive space like coffee, you create a unique value proposition in the marketplace that helps the company grow 100%.

100%.

Yeah.

I mean Starbucks coffee is good. They do have it nailed. But I think most people go because of the experience. Whether it is the customer experience or it is the ambiance, like the buying experience of being there. And that's how they build a world class brand.

It's 100%.

I get why people have a problem with like corporate coffee and stuff, but it's really hard to find service that matches it.

Right? Okay, Maria, give me a thumbs up if you are ready to come join us live. All right, let's do this. Hello, Maria.

Welcome.

Oh my God.

Are you at Starbucks?

Oh no, you're not. Okay, sorry.

I was like, that is so ironic.

It has a Starbucks vibe. The whole country has a Starbucks vibe.

Maria.

What?

What's up? What can we do for you?

Yes, exactly.

We are allotting to coffee.

You're on a bit of a delay, Maria, but what can we do for you?

Okay, thank you so. And here's Gustavo.

Hey, Gustav.

We finally thank you guys for all the value first. And then my question is, we finally launched Ryan. We, we already are live with our Facebook and Instagram building, building the face the. The audience. And then we, we have two products that we can sell right now. One is like private. It's an info product. It's personal finance. So.

One is a personal session with Gustavo and he has like amazing reviews from people that have had in the past personal sessions with him. And it's so transformative and that one is $300, like for a couple hours. And then there's a product that we are preparing that is going to be called, like, where the.

Where the heck is my money going? Or something like that is just budgeting. It's basic. But it's so important right now in this time of the economy everywhere. And it's also transformative. We have already.

So what's your question, Maria? How can we help?

So my question is. So I already started the Facebook and I'm doing ads for live sessions once a week. But I've been said that the Facebook ads are a trap because then you have the followers, but the followers are not really seeing you because of the algorithm. So my question is, should I do a Facebook.

Likes campaign or is that no more of a resource that we should use?

How often are you going live on your page?

Once a week.

Okay, cool. So whether it's likes or followers or putting people into. Or putting people into a group, the only thing that matters is engagement. Likes are a vanity metric. And going and advertising for likes at the beginning can be an okay vanity metric to get in order to create some social proof or to drive comments and likes to a video. But the whole point is engagement. So the only thing we have to solve for is how do Maria and Gustavo increase their engagement and what. How do they focus on engagement? And whether that is driving more attention to the lives or it's driving more attention to the group. Wherever you're going to put attention, amplify that with your ads. And that's the only thing that we have to solve for.

Got it.

Okay.

Perfect.

Okay, perfect. Yes. Engagement. So people making comments and those kinds of stuff.

Yes.

And just going all in on the people who are showing up. And if you do that, then you have no problem booking more of those consults and the things that you want to do.

Okay.

And then just one more question. For the launch of the budgeting product.

Would you advise that we do it just like simply on Facebook or having a landing page where people come and leave their information and buy the product and then delivering it via whatever email.

Or kajabi or clickfunnels, whatever is going to make it easier for you to collect a sale and move people through the process? Do that.

Okay.

Never delay the get money date.

So it's not a landing date.

Whatever allows you to move forward the fastest. Prioritize that. Got it.

Okay, cool.

Okay, cool, guys, thank you so much.

Good to see you. See you later.

Bye.

Bye.

See you, Marie.

Bye.

All right. Oas you're up next. Give me a thumbs up if you're ready for us. Let's do this. Hello, Ace.

Hello.

How you guys doing?

What's up? Good, man. Good to see you.

Excellent. So my questions are on Amazon. So to the guys, Gabe and Justin, when you guys were talking about a discounted price, was that the actual price or was that the sales price or is that like a discount to the price? There's three different ways you could do it.

No, that's it. That's a good question. It's essentially whatever your. Your selling price is on Amazon, it's gonna. An Amazon system look like a sale price because all their products are always quote, unquote on sale because they do the what the retail price is and then what your sale price is. So like, is like. It looks like a sale is what I'm trying to say. If you've never seen it, if you've seen it, you'll know what I'm talking about. That's like we. That's our. Just the price that we put the product at and we set it at.

Okay, so it's the sale price. So you've got like an rrp, whatever that is, and it's the actual sale price is the thing that you kind of do it low initially and then you gradually increase it over time.

Yeah, yeah, but. But that price is the actual price they're paying. Yeah, they're not. You're not gaming anything. You're. The actual price that they're paying is what you are. Yeah, adjusting.

Yeah, exactly.

Cool. Thanks, guys. The other question I had was around customer service. So you guys mentioned you do extra things for great customer service. So what are these extra things?

What are extra things?

So I'll kind of field this one. So some of the things we'll do, like we said earlier, all the different rebates. So sign up for a warranty then. Or discounts, rather. Sign up for a warranty, you get X amount off. Sign up for or buy a second one, you get X amount off. Cross sell, get X amount off. All of those things. Except they're really great for a customer. Even that is customer service. Because in their mind, it's like, oh, I did nothing and you're just giving me a discount just because you like it at one point. Actually, Justin, actually, I'm pretty sure you may not know about this, but I'm testing a flow right now. Or where I'm saying, hey, you bought our product. That's great as a thank you. Just as a pure and utter thank you, we want to give you 30% off this product. And the point for that is one increase, just increase the lifetime value of the customer. But also it gives them exceptional, like, service in that sense. So those are some of the ways we do it. Other ways is we. We look at our customer and we treat them as if they are gold. Like, it's not necessarily that they can do no. No wrong, but it's that they are gold. They are the standard. Without them, our business wouldn't exist. So if they have a problem, we stop what we can and we help them. We're always looking at are the feedback that we're getting, the reviews, any sort of information we can to improve our products. Every feedback that we get, we're always looking for it and saying, what are the little things that we can do to incrementally get better? Because that in and of itself is customer service.

It's a mindset thing for you, Gabe. Right. It's a mindset that the customer experience matters. And so you, as a team, will do what it takes in order to ensure that that customer has a great experience. Exactly.

And just what that looks like up front before you really have that much interaction with the customer is really just like, if you have your. Your manychat flow in place, obviously that's all automated, but providing the rebate and things like that, it's done instantly. So the customer is not waiting. So they know that you actually care. And you're. You're just like the back and forth is really quick, obviously, because it's an automated messenger bot, but you're taking care of them right up front, and they don't have to, like, wait for you to respond or wait for something to be happening. So that's also part of the tweaks up front that really help provide that good customer service.

Okay, cool. The other question I had was around the Facebook ads using ManyChat. So I've got ManyChat set up similar to you guys with a QR code on the insert card. And basically I offer them a free product once they scan in.

But you mentioned that when you set up a Facebook ad, they automatically go into a manychat flow. Is that. Is that. Is that correct?

Yes. So when they get the initial rebate, not necessarily from, like a QR code on the insert, but if we're going to do the velocity side of running rebate. Yeah, they'll click on the ad and it goes. We'll have. We have it routed to go right into a manichat flow, and it's actually if you have more questions on that. I know in the SOP itself, which I saw the link in the comments. If you scroll up, I actually have the actual flow that we use for our customers. I have a photo of it up there, so you can see exactly what that looks like and exactly how. I don't believe the percentage conversions are on there, but you can see exactly what process that looks like.

All right, cool. Thanks, guys. Thanks so much for your help and your advice. Really appreciate it, dude.

For sure.

Good to see you too, mate.

See ya.

Sam, Leslie, I would love to bring you on next. You keep coming in and out.

So if you've got a stable Internet connection, Sam, give me a thumbs up and I'll bring you on for the last word.

Maybe.

All right, I'm just going to bring you on and see what happens. You ready for this? Here we go.

Sam, can you hear us?

Whoa.

Now you're just a black screen.

All right, Sam, I'm going to come back to you when you've got a stable Internet connection. All right, Lil just joined us inside of the green room. Good to see you, Lil. Lil, give me a thumbs up if you'd like to come on live. All right, let's do this.

Hello, Lil.

Hey.

Hey.

Good to see you.

Loud and clear.

So.

Justin was the first person I met at Freedom Fast Lane.

Yes, I remember you. I was gonna say.

And. And then when he spoke at the. Oh, I don't remember what it was called at the.

Yeah. And I was like, oh, my gosh, I can't believe it.

Anyway, I'm so proud of your success. And I was. I. I don't know if you saw in the comments. I. I just bought a bike, and I had just bought three Rome products, and I. I hadn't even opened. I opened the bike seat, but I hadn't opened. I got a. A helmet and a phone holder also. So I'll give you some good reviews.

Nice.

And I didn't even know y' all were going to be doing this when I bought them. I just wanted to support your business.

Oh, no kidding.

It's the first time that I've bought any products from y', all. And I. I think the brand and the logo is so awesome.

And they do a good job.

Thank you.

They do a good job.

So, you know, one of the things problems for me was managing expectations. And what y' all have done is, you know, saying that you're either going to break even or lose money. In the beginning, I was like, you know, in the Beginning, I was like, oh my gosh, I can't do that. And that, that really is a business model that to do that, to grow. And so when you were going in and you started with just the one product and then you added on, right?

Yeah.

Okay. And so, I mean, what are you looking as far as a budget? To be able to go in and do ads and stuff, to be able to lose money in the beginning, knowing that down the road you're going to. And what time frame do you look to at this point we hope to be making money?

Good question.

I would say hopefully within. I would give it. It depends what the market is first of all and how competitive.

So assuming that it's not an extremely competitive market.

Let'S say it's even like medium level competitive. I would say give it at least two months. And as far as budget.

Well, to get to break even. To start seeing break even.

Okay.

Because once you're at break even, then it's going to be funding itself. So it's, it's a little less pressure on you to be continuing to put money into something and losing money. Because I know, like, like when we started we were on a really tight budget. So yeah, I would give it at least two months. It's, it's all going to look different. You're going to have more data. It's hard to say because you're going to have more data. Once you get into it, you're going to know how competitive the market is compared to what you thought it was and how much time it's going to take to actually get the ranking to stick, basically. Meaning stay on page one and actually just stay there without continuing to feed the system with heavy discounts or things like that. So yeah, it's kind of like once you get into it, you'll know.

But.

Yeah, I don't know. Gabe, do you have anything you would want to add to that as far as budgeting?

Honestly, not really. It's really hard without knowing the specifics, but it's a mental hurdle to get over.

I happen to have one sitting next to me, so it's probably going to be hard to tell, but this is a belt and it has, you probably can't see this, but it has hidden pockets in it.

Nice. So like a security belt for.

Yes, but it's fashionable. I mean it, this is like the same thing that Calvin Klein or Designer. It's high fashion and it does hook an eye in the back.

Okay.

Yep, yep.

So it's, it looks like just like something you would See something worn with some nice outfit and it looks just like the outfit, but you can put your phone and your keys and your credit card and stuff in it. And I mean, I have more. I have other styles that are less, you know, high quality cotton and then, you know, a poly blend.

But.

To answer that question, though. Oh, you can go ahead.

Right, Go ahead, go ahead, Gabe.

To answer that question, I would actually say very similar to Justin. No matter what the market, small or medium, it's going to take a few months. But.

If it's taking more than like six months, then it's possible that the market, it might not be a good fit. There might be something wrong or something in the system might be wrong. So the product might be great, but. But then the system might be broken. So it's depending on like, if you're not profitable or if you're not breaking even rather within the first, like four to six months, then that's when it's like, okay, we really need to look at what specifically where our conversions are. We really need to look at the numbers. We need to like, diagnose this problem.

Yeah, I would even say less. Less time than that to be at least breaking even unless you're doing something wrong in the, the process up front.

But yeah, how much should I expect to lose to. To get to that point?

Lil, I'm gonna. I want to help you a little bit differently.

What? Okay, I'm just.

You just listen it. Lil, Lil, you just need to pick a direction and go all in on it. Like you, you are. You're kind of wavering between strategies. And the thing that's holding you back is just like, this is what I'm doing and I'm going in that direction. There's not a magic number or a magic amount of time. It is just deciding which direction you're going to use to put this product that you believe in in front of people and then evaluate and letting the chips fall where they're going to fall.

Okay, you don't like that answer, Lil.

It'S I. Because I get you're asking for a specific budget, but you can't really know until you go in that direction.

Right. I'm just, you know.

Just because I've had unrealistic expectations on things and so it helps to know what to expect and then you expect that that's the way it's going to go as opposed to, oh, gosh, I thought that it was going to go like this. And. And so that just gives me some good feedback on what to expect.

How many units are you selling right now at per day?

Well, I only have prototypes right now, so I'm trying to figure out how much I need to order in order to have them in, you know, for Christmas. And so.

Have you, have you, have you read the book, Lil?

I am about halfway through.

Cool. So here's your set of expectations. Order a thousand units. If you believe that you can sell them over the course of a year. You run this process with five to ten grand for three to six months until you're at 25 sales a day.

Or you go out and you talk to other people who have audiences and you get them to love the product until you're at 25 sales a day. But you pick one or two things and you go all in until you're doing 25 sales a day. That's your set of expectations. And then you move on to product number two, three and four. Then you've got a million dollar business. That's your set of reasonable expectations for what you can do when you go all in on something in order to build a seven figure business.

Okay.

You want, you want something, you want it to be like, here's what you do to get this result. And that's why you're disappointed, because, because you're used to looking for the thing that is going to give you X result. And you're like, it didn't work. Expectations not met. Am I correct or am I way off?

Well, this is not the first product I've done and the first product I did, I ordered thousands and thousands. And so I am trying to change what I did wrong and do it right.

So.

And also, you know, I have to figure out how much money I'm going to spend and how much.

Hold on, hold on. What went wrong in the last run, in the last product?

I'd never learned how to sell it online. I could sell it, you know, in person and in stores, but I could never figure out how to sell it online. And that was because I ran out of money to be able to do that.

How did you run out of money? Where was the money going?

Expenses.

Yes.

Well, if you weren't selling, where were the expenses?

If I wasn't selling, I was selling to stores and in person.

So where were your expenses that made it hard to run out of momentum selling online?

Well, things came up.

You mean personal expenses?

Yes.

Okay, got it. Because that's different. Because you don't have to, you don't have to go deep into the red in order to get this. The momentum that you need in order to put them into the review getting process.

You don't, you don't have to do that at all. You could go slower. You could do free advertising. You could take the same conversation that you have in front of people and, and do it as a Facebook live.

And get four sales and put them through this exact process and get two reviews which gets you to five sales a day. Like you can go slower or you can go smaller or you can partner with people or you can pitch an investor.

Where you are selling yourself short believing that there is some system outside of yourself that is going to make the business work, when the thing that will make the business work is simply if you believe in it and allow that to carry your momentum forward.

Yeah, actually, could I add a really quick example of this? So I have a friend right now who I think it's about knowing your product, Lil, and knowing where people are going to buy it because it might not be the right fit for some platforms. I don't know without looking at the product. But if you're getting sales in person and people are liking it and giving you good feedback, then keep going that route until it starts to feed the online sales. I have a buddy who just started a butter business. He makes like Gourmet Butters. He has an online order form he has sold over. It's been his first month in business. He sold over a thousand dollars in butter. He sells them for $7 a thing. And he has not taken a single online sale. And I know for a fact if he were to launch that product online and rely only on online sales, he'd get nothing. Because he needs to build that product in person. Because the product, the nature of the product is such that it's just not going to do well right off the bat online. But because he believes in it so much, he has literally sold like over 200 sales in his first month. Not a single one was online.

So it depends how much you, you what you want to do with the product. It sounds like you really believe in it.

Oh, I do.

And I think it's important to know what if it's the right fit for a certain platform and how to go about marketing that. Because if the demand's not there on Amazon, it doesn't matter what you do, people aren't going to buy it. But again, I don't know without looking.

At it, if it's what on Amazon?

I didn't hear if, if the demand for that particular product on Amazon specifically is not there, then you might be launching on the Wrong platform.

Okay.

If I. If I were you, Lil, I would be for sale on Amazon, and I would be talking about my product relentlessly on Facebook, right? And I would have a list of 15 to 20 people that had followings of 5 to 10,000 people that I was sending handwritten cards to and sending them free product.

Okay.

And I mean, people within your network with very small followings that you believe could get the word out to a few hundred or a few thousand people.

Okay.

I would be going super scrappy, and I would let my passion for this product carry that experience to getting the 20 to 25 sales a day.

Okay.

Great process out loud because you're, You're. I know that this isn't the advice you wanted, so talk to me.

So my other products that I was selling, their collegiate license products, so I've sold in, you know, the Cotton bowl, the Texas bowl, and. And they would sell them inside, and then I also sold outside. I mean, I could sell just on my own, $1,000.

Because it said, you know, buy at the time, impulse buy.

So it's not the same. And.

It'S not the same as, you know, something that you're planning for, you're looking for, because it's kind of a goofy collegiate product. And so, I mean, I know I can sell.

Personally, but figuring out how to sell it online, I was, you know, I just didn't ever really pursue that to the place where I could, where I was successful with it.

Then this, then this is your assignment to sell it in person online.

Which means you sell the exact same way that you would sell in person, but you stream it online.

I never thought of that.

And, and, and you're gonna suck at first, and then it's gonna flip when they're like, oh, this is the exact same thing as selling in person, except a hundred people are watching live.

Okay.

Got it.

Well, I'll tell you your book. When I first got it, I. I thought I was going to be able to, like, do A, B and C each day. I was going to read something, I was going to be able to do what that was. But it. Since I, I don't. Since I'm going to be manufacturing, it's. It didn't follow that same, you know, model that I have. In fact, you said don't, don't manufacture.

But what does that mean? Since you're manufacturing, does that mean you're making the product?

I'm having it manufactured. I designed it.

Okay, so what. What is different?

Well, because there's as far as 12 months to a million. You have to order it. You have to, you know, get it in then. And there's. So there was no way that you could do that in 12 months is basically what I got that you were saying. Sure, you could be able to start off with a product that you could sell right away.

Well, could you. Could you order this product from the manufacturer right now?

Yes.

So. What?

What?

Well, I mean, actually, they. The prototypes that. The last prototypes that they sent me, they need to be tweaked. They didn't do them quite right. So. And it's very, you know.

I mean, you deal with Chinese manufacturers.

It's.

It has to be exact for them to get it.

You are overthinking it and perfectionizing it. Just go.

Put it up for sale and go.

Okay.

Yeah. Our product was not perfect when we started. It was a process.

And when you're getting sales, you perfect it real fast, don't you, Justin?

Oh, yeah. When you're getting sales, then you're like, okay, we gotta do this, this, this. And you've already sold through the other inventory, so you have the space to now perfect the next round.

Okay.

Do a post in the group two weeks from now and update us on your progress.

Okay, I will.

All right. Good to see you.

All right, see ya, Justin.

Good to see you too.

See ya.

All right, Sam, we're gonna try you one more time. Give me a thumbs up.

All right?

Sam, can you hear us?

Yeah, I can hear you just fine.

Can you hear me all right?

Yes, we can hear you. What's up, dude? You get the last word today?

So looking real quick, looking at an acquisition of a One SKU business or One SKU business on Amazon right now. It was launched in January 2019. It launched with a lot of velocity. They were doing about 30 sales a day, pulling in about 35k a month gross. And they started dropping in the ratings. They went from about 4 1/2 stars to like 4.14 stars. Stopped. Stop. Started losing a lot of organic momentum. And there wasn't a lot of the owners didn't want to reinvest back in the business. Currently they have about 30k worth of inventory and they're selling about 14k gross, and they're netting about $4,800 a month.

Listening to you guys about. I heard you say something about a relaunch and using this strategy as a relaunch. I'm thinking I might be able to get it at a 2 multiple net at this point. And I was thinking I might need to relaunch it if it's a four star or four had a full rating. So just wanted to kind of ask you guys if that was something that you would. What you would think about that.

This is fun. This is gonna be a good one.

Have you. Well, first of all, Sam, do you. Can you identify what they're doing wrong, what you think they're doing wrong?

One hour a week maintenance.

Okay.

They're doing barely any ppc. They have no. They have no direct response. No direct response funnel. So I was going to build a direct response side of the business as well. So we'd have both the organic Amazon and direct response with copy. So they're, they're just. They have two owners that don't reinvest back in the business. One owner runs it at one hour a week. And I just feel like they've just.

Neglected it so they just don't put time into it. Really. Yeah. Nice. And it was selling more when they were, when they were actually caring about. And the product had a good rating when they launched.

So when they had about a 4.5, they were doing about 30k gross a month.

Nice. Yeah, I mean, we actually, we just did this to one of the products we had that we weren't paying attention to. It dropped to a 4.1 rating. And just this month we saw it go back up to 4.5 overall. And it's doing really well. Using the strategy to relaunch it. We use this exact strategy to relaunch it.

What's making me excited is that it is profiting currently and that I can just pour that profit back into doing this strategy so quickly. Increase the value.

Yeah, yeah, definitely. And they'll give you a good price on it to buy.

Yeah, it looks like I'm gonna get it probably for about a 2 multiple of net.

So does that mean yearly multiple?

Yeah.

So one, one.

Just so I think you're overpaying.

Okay.

I think first like a 1.5, I would actually, for something that is doing under a million dollars a year, I'm looking at a one times net with an earn out.

Oh, okay. Yeah.

It's like the upfront. If it's profiting 5k a month, then I'd be looking at 60k up front with 60k deferred.

Okay.

Yeah.

And the earn out would just be a percentage of the gross or a percentage of the net.

I'd rather have a percentage of the net.

Yeah, it should be. Okay. So it's one skew. Correct.

Yeah.

Currently, Justin, you've had your business has been sku dependent in the past where you've had, you know, one or two products doing the majority of the momentum. In fact, somebody asked in the comments, you know, there's some of your products have really high reviews. Others don't have a lot of reviews. How do you manage that mix and what do you do in order to create more of that moat of a bunch of different products?

Yeah. So essentially. And this. Every business. Most people don't know this, but every business has one product that is really doing the bulk of the sales.

Yep.

There's endless examples. So essentially, what you're doing is once you are, like, have a gold medal on one product, you're using the credibility of that product to build all the other products in your brand, and then you're just. Just rinse and repeating the customer service.

So essentially, like, with the new product launches that we just did, we're getting a lot of organic sales as a result of the credibility we've built on one of our products that has really high reviews and really good ratings.

Hey, guys. Ryan, does it matter? This is a one SKU item. It's in the pet treatment kind of niche. So there's so many more. There's so many more available products out there that are ready for white labeling for this business.

Would you guys leverage what. What it has right now to get the ratings up and then just start rolling out other products that are similar?

As soon. As soon as it's doing 25 a day, I'd be looking at number two or three.

Okay, cool.

Is there an audience that comes with this business, Sam?

No, that's. That's the issue. I'm gonna have to build it.

Okay. So if it were me, the way that I would grow this business is I would defer payments into the future on the acquisition side.

Sure.

I would use the system that Gabe and Justin have outlined in order to get that star rating up. And as soon as possible, I would be contacting one audience that I could create a partnership with for the launch of product number two.

Got it.

And I would absolutely hold off on doing a direct response funnel. Okay. So so many entrepreneurs try to build two sales platforms at the same time, Nail one first and then use that as leverage to the next one. They're really different businesses, so you have to get. You have to get that meat on the bone from the first one in order to have the COVID to build the second one.

Love it.

Thanks, guys.

Thank you, Sensei.

Yeah, it's great.

All right, cool. Thanks, Sam. Good to see you.

See You, Sam.

Bye, Gabe.

Justin, you way over delivered today. Thank you very much.

It's been an honor, my man.

It's great to see you, Justin. It's been a privilege watching your growth over the last couple years. I'm honored to be a small part of it. Thank you guys so much. What?

What, what should I have asked you that I didn't?

Oh, you guys there, it all froze. Okay, cool. Sorry. What should you have asked that you didn't? Actually, I would say one thing in particular.

When it comes to the rebates, we run the rebates and the reason why we run the rebates and the discounts differently is because we're trying to get the lifetime value of the customer increased. So we run the rebates, we talked a little bit about it. We run the rebates up front so that we get the full value right off the bat. We run the discounts afterwards because we're just trying to increase the lifetime value. So just that it's meant it's a slightly different strategy for those two.

That actually makes a lot of sense. It's a lot of sense. What I really like about. I love that you just ended on a mic drop because the thing that you're highlighting is how you're able to increase the customer value from an Amazon sale where most people look at Amazon as the end point and now I got to get reviews in order to put more people into the system. Like they focus so much on the organic side that they don't ever think about increasing the customer value once that customer is acquired. And so you have this beautiful bridge between getting the customer and then keeping them on the same platform, but increasing the value from that right away. Thank you for that. Justin, is there anything that I didn't ask you that I should have?

I don't think so. I think team building would be for another call. That's what right now.

Yeah, I understand. How do you build a world class team like the two of you have? Well, guys, thank you so much. It's been a joy to be a small part of your journey. Thanks so much for contributing to the group. It's great to see you.

Yeah, you too. Thanks for having us.

If you guys got value out of this, please give some love and some hashtags in the comments for Gabe and for Justin. Please go buy all of their products. If they release anything in the future, go buy it. If you're an acquirer from a multi million or multi billion dollar brand that wants to buy an amazing team with a great set of products with amazing systems that you could plug into other businesses. You should reach out to Justin and say, I want to write you a really fat check to buy your company. If you are an influencer with an audience of hundreds of thousands of people in the outdoor space, you should start talking about their products.

So these are two givers, and you should do what it takes to try and partner and serve and contribute value back to this group. Guys, good to see you. Thank you so much.

Great to see you guys, too. It's been an honor. Thank you.

Yes. Thanks, guys.

Thank you, 1 percenters. We'll see you next week. Take care, everybody. Have a great week.