How To Make $100,000 Per Year PROFIT Selling On Amazon

Hey, capitalists.

I'm Ryan.

Daniel Moran. Welcome to Capitalism tv. On this episode, we're going to go through how to profit $100,000 a year by selling on Amazon. So if you've been watching the channel at all, you know that we work with a lot of Internet businesses who have gone past seven figures in revenue. But what if you're just getting started? What if you're the type of person who is still looking for your path to, to break through six figures and take home money per year so that you can start to define life on your own terms? We're going to go through exactly how to do that throughout the next few minutes in this video. So come on in, grab a seat, let's have some fun.

We're going to kick this video off with a very weird statement that you might not expect me to say. But most people in this Internet business world lie about their numbers. Most people who are selling courses or who just want to posture themselves on the Internet are over inflating their numbers in order to look good and make you think something of themselves. So in most cases, people will talk about revenue, top line numbers, they'll talk about how much they're selling. But very few people will talk about profit and what they're taking home. This is true. But there are people who sell seven figures per year on Amazon who don't make a profit. Now, if we were to look at these businesses like real businesses, there's ways that we could make those businesses profitable. But that's a conversation for another day. Today we're going to talk about how you can start this journey and you can use Amazon as the platform to create the income that you want, to create the lifestyle that you want. So we're going to go through exactly how to build a business that allows you to take home at least $100,000 a year. Now, to start, I'm going to remind you of the formula that we've popularized here@capitalism.com A million dollars is very simply 100 sales a day. At 30 bucks, that's about a million dollars. 100 sales a day. So that's all we have to solve for. To summarize it, the big takeaway is this. If you have three to five products that sell on average 25 sales a day, that's about 100 sales a day. 100 sales a day at an average price point of $30 is a million dollar business. And of course, the hope is that you have profit margins that are high enough for you to be able to take home at least $100,000 a year. Now, I know people, we have people in our community that have just one product that does really well or they have products that allow them to have that type of an income. The real secret sauce is in the fine details after you know that formula because you can game those numbers by having really low prices or by having a whole bunch of different products but not really making any money. So there's a few key things that if you know when you start, will make it almost, can I say guaranteed in a YouTube video? Not guaranteed, definitely not guaranteed. But make it a lot more possible for you to cross six figures in take home profit. And so we're going to go through that right now. Now, I'm often asked, are the good days over or have I missed the boat? Is there still opportunity in making six figures a year selling on Amazon? And to me, the answer is still a resounding yes. In fact, CNBC recently predicted that Amazon would be the most important company of the next decade. Not just the past decade, but the upcoming decade. And if you think about it, Voice is just now coming to be a player. There's about a billion people who are about to get Internet access for the first time. And we're just now starting to link together international markets. So the market for Amazon continues to get bigger. I run a monthly community called the 1% of people who are building businesses and investing the profits. And sometimes I like to go live in the morning and just talk about what's on my mind. And I made three predictions for Amazon sellers for the next few years and I want you to watch them right here. Number one, you're going to see a wave of new products. What I mean by this specifically is the private label days of just selling another spatula, of selling another coffee cup, going after what everyone else is selling.

And then selling that.

That's over, that's done, that's been done.

What you're going to see next though, is a movement towards launching new products, like new innovative products, like a new brand launching specifically on Amazon.com and here.

Is the reason why. Tune in Tokyo on this. Amazon. Back in 2013, 14, 15, 16 was a buyer's engine. It meant you typed in what you were looking for, you typed in the product you already wanted to buy and you bought it.

But that's adjusted, it's widened now. Now, Amazon is a search engine, it's a shopping engine. So what the difference there is that now you can sell a broader range.

Of products that don't have to meet.

The typical Amazon criteria that you would look for when selling a new product. So the second prediction for Amazon in 2020 is people are going to stop trying to get off of Amazon.

You hear this a lot among the.

Amazon circles of people trying to get get away from the platform because they're afraid of having all their eggs in one basket. That concern is lessening. And that concern is lessening because Amazon continues to gain more market share. So instead you're going to see people double down on what is working. And where the diversification will come will be from audience building, from being good to your customers, from getting them to be on an email list, to get them to follow you on social media. Number three will be that people are going to stop selling their businesses. So from 2015 to 2018, you had.

This big wave of people build this.

Big brand and then sell it. And the people who were buying it were taking advantage of that first mover benefit. But what smart people are realizing now is that having businesses that make a million dollars a year is pretty awesome. It's pretty rare. So it would be, it's kind of silly right now to sell a million dollar business. A business is making a million dollars for $3 million. You're way better off holding on to that business and growing it. And so you're going to see less people flooding the market trying to sell their businesses, which might actually make valuations go up, which will be interesting to watch, but you won't see as much of this hurry to sell their business out of, out of fear. I think you're going to see a maturation of the Amazon entrepreneur during this time.

Now, the reason that it's so important for you to see that is because I want you to see that you're still in the ramp up period for this opportunity. When I was beginning my journey as an entrepreneur, I was still trying to find my direction and know which, which path to go down. So I went to one of my mentors, his name was Perry, and I asked him the question, if you were my age, what would you do? And here's a clip of me telling this story from stage.

Sometimes it is one insight that sets.

You on a different path.

Happened for me right after I graduated college and I was at an event like this and I met a man named Perry Belcher who's speaking tomorrow. You guys like Perry Belcher? Yeah, both of you.

Whoo.

Right, so Perry, Perry put on this event. It was this event called Traffic and Conversion Summit. And I went to the event and I realized, oh my goodness, the same skill set that I've been developing, the same skill set that I've been doing to promote offers to sell affiliate stuff.

If I really refine this and I apply it to something bigger, there's way more money to be made. And so I went up to Perry. I was like, perry, I am.

I think I was 23 or 24 at the time. I'm 24 years old. I'm single. What would you do if you were me? And he said, as many girls as possible.

And then he said, you know what I would do?

I'd sell stuff.

Not hopes and dreams.

Not a bunch of scammy offers.

Everybody's after that.

People are always gonna buy stuff.

And that was interesting to me. And I had built. I'd made all of my money, I had built all of my wealth at that point by looking at channels, looking at where the customer concentration was, and showing up in front of them. In the info world, that was clickbank. In the traffic world at the time, that was Google.

Selling stuff.

Where's the concentration on selling stuff? That was right around the time that Amazon was starting to really pop.

Now, the really important thing to take away from this is having a physical product is just a really easy way to kind of hack what to sell. If you have a group of people and you know what they already buy, like, you know, CrossFitters, for example, buy ropes and jump ropes, and they buy gloves and they buy protein bars and they buy all kinds of stuff, right? Then it's an easy hack to say, okay, what physical products can I create or what can I supply to that group of people? It's kind of like it's the easy way to get out of all this mental noise. Because so many of us don't become entrepreneurs just because they're thinking about it too much. Well, listen, if your goal is just to make a hundred grand a year, we can make this really simple by saying, who's that group of people that we're going to serve? And then what physical things do they already buy? That's a really good mental hack for you to know that you're going on the right track. And then that's how we can start to make decisions about what types of products we can sell on Amazon. And all of the good stuff in terms of turning a profit come next. And that's what we'll talk about.

Now.

Another sticking point that comes up for a lot of new entrepreneurs is even if I know what I want to sell, how do I sell it, and what's the formula or the strategy that I should follow to ensure that it's profitable. Well, we're going to solve all that right now. Some people will tell you that Amazon is too competitive or that Amazon is too difficult now, or the good old days are over. I simply don't believe that that's the case. You want to go to where all the buyers already are and they're already on Amazon.com so I tell all of you, all businesses, new businesses and established businesses, that if they don't have a presence on Amazon.com, they're leaving a lot of money on the table. Now how, what's our approach? What do we do here? If you look at most YouTube channels or you read a lot of blogs, you'll find a lot of ways that work for other people. You'll find this three step method or that promotional strategy or that traffic source source works for that person. And all of that is great. But I've seen a lot of new Amazon sellers fail because they were trying to copy what somebody else did versus doing what feels easy and natural to them. So I think there's a lot of value in finding out what's working for other people and looking and modeling success from people that you want to be like or results that you want to create. But those are more guideposts, they're more signs of what's possible. A much more effective way to approach this is say, okay, great, I know what is working out there for all of these other people. And we'll go into a couple strategies here in a second. But what's really important is to look at, okay, what am I doing that could be unique in this? Where do I have a specific skill set? If I used that to sell the products that I want to sell, I could make $100,000 a year. @ one of our events, my partner Jeff Lieber, who runs an Amazon agency called Turnkey Product Management, he talked a little bit about this, how every Amazon seller is a little bit different and that's a good thing. And if you focus on there, you can have higher profit margins. So let's watch this.

Clip. Yeah, so anytime we take on a client, the first thing we do is we analyze their entire business. And you should do this internally as well. Like take inventory of what assets do you have? What is unique about your brand? Do you have an email list? Do you have a Facebook audience? Do you have a unique product? Is your product great at video? So we really do an assessment of like, where are your strengths? And then really trying to double down on those because oftentimes they say we hear it so many times, like, yeah, I have like a 30,000 person email list, but we haven't emailed them, you know, since last year. And like, well, can we email them? They're like, yeah, we could do that. And then you do it and then they get a bunch of sales and it spikes the algorithm and then takes them off. So yeah, just using your asset list. And then oftentimes there's lots of different things you can do to optimize on Amazon. There's always, always a few different things that they're missing on their Amazon page that are easy wins to boost your.

Conversion. Especially when it's a one to four person show that's talking about product innovation, the little blocking and tackling stuff can get.

Lost.

Right? And so you live in that world and so sometimes you can just come in and find some of those changes. But there's also some like promotion opportunities that I know you focus on that a lot of people miss usually because their plate's just way too full. So what are some of.

Those? Yeah, so first we do always start with the blocking and tackling, making sure you got an incredibly optimized listing. And sometimes again those things just get overlooked. So if you don't have great photos, if you don't have video on your listing, that's a new eligibility. Now for most sellers, you know, start there having great sales copy and building those reviews. But once you have that base, then you can start doing, you know, fancier stuff, external traffic, Facebook, manychat things of that.

Nature. If you are good at video, you should be doing video demonstrations of your product. If you are good at writing, you should be making Facebook posts or blog posts about your product.

If you are a networker, you should be going to influencers that you know or giving out your product to people that you know who will talk about it. And that formula, that formula that works for you is not going to look exactly like somebody else's. What's really important is that we've got a product or a few products that serve a specific type of person and then it's going out to people outside of Amazon and bringing them to the platform. That's how we're going to be able to have those high profit margins that allow you to take home $100,000 a year over the next year or two while you're building this thing. So there's a one, two punch to this where you've got the thing you're doing really well outside of Amazon. That's sending people to Amazon and that feeds Amazon's algorithm and allows you to start ranking for keywords and getting reviews and people start talking about you and this whole machine starts to really build in your favor. So if you optimize for people, if you build your business, even if you don't care if it becomes a million dollar business, you just want to make $100,000 a year, you will get there so much faster if you prioritize people and the customer instead of what works on Amazon. It's a big mistake that I see people make where they get all obsessed with the mechanism of Amazon and they forget about product and people. So I gave a keynote and an event with about 3,000 people in the room and I was surrounded by some sellers that were on Amazon.com that were doing pretty well, but they were struggling with this. And you're going to see me speak some very bold truth in this clip. Sales channels are easy for you to manipulate. Yes, you can make Amazon your.

Bitch.

Exactly. You can't make a customer your bitch. So there's fear of rejection. You have to actually be good. That's risky because most of you know you're not good. Y and that's, that's humble pie. Be like, oh, my product actually isn't any different or better and I actually don't care about my customer at all. The thing is we know it like, like, like I, I know I knew it all along. Like you do. You really know it if you don't say.

It. It's like, I mean we, we.

We are really good at tricking ourselves. But you're right, we're really good at pushing it way back.

There. I mean, it's a good.

Point. And being like, oh, if they're buying from me, it better than other people and so you find ways to justify it. But that's not, is not a real.

Business.

Right. And so you can keep doing it and have a nice little cash flow business, but you'll never be a real.

Entrepreneur. This was so kind of great to hear this from you because I just, you know, we hear the same perspective I think so many times just focusing on the sales channel. My wife and I are definitely the sale the Amazon sales distribution kind of managers and we're doing about 40k a month now, which is great for us. At what point should I do that? And then also kind of going.

Off.

What? Yeah, I mean you.

Should. So just, you know, if, you know, you don't care about the, you know, caring about the customer or you know, having product that's not really superior. Do we just completely shift into something else.

Or. No, you find a way to care about your.

Customer.

Okay. Yeah, people can be really interesting, especially when they want to give you money.

That's a really interesting conversation. You asked. The first part was, was how do I, or when do I start building the audience? Yes, it was.

Yesterday.

Okay.

Yeah. Next, next. Best time is now. Right. And like I said this morning, an audience does not mean you have millions of people. It means, it means going Super Micro. It is, it is emailing your customers and asking for feedback and calling one on the phone.

It starts at the super micro. That's how it grows. Your first step to making $100,000 a year on Amazon is to decide what to sell. Physical products make it easy for you to make this decision as long as you know who the person is that you're serving. So an easy hack for this. Who are you? Do you work out a lot? Do you make crafts? Do you have a pet? How would you define yourself? Or what products do you buy on a regular basis? That's a really easy way to start. Next, identify what that person already buys a lot of. Then you choose your, let's just say your first product, the first thing that you're going to sell to that group of people. And then when you know what your skill set is for bringing some people to the platform, and I mean as little as 100 people. Do you have a hundred friends on Facebook? Do you have 100 followers on Instagram? Do you have a hundred people who read your email list? Do you have 100 people who watch your YouTube videos? If not, it's time to start creating that audience and start serving that group of a few hundred people who are going to become fans of that business. And if you do only that, you'll have a business with high profit margins and, and you'll be able to cruise through that six figure mark and start to pay yourself rather than have a big machine that doesn't turn any profit. Now, of course, there's some tactical things behind the scenes like how do you ship the product and how do you, how do you do all of that stuff? Well, what's really important right now is that you have a clear set of decisions for you to make and that's who you serve, what you sell them and how you serve them in a way that brings them to Amazon. That's going to be how you build a business that profits six figures per year. If you'd like some help making these decisions, we have a training called Million Dollar Brands, which will help you identify who that person is, what your three to five products are, and what your launch strategy is to ensure that you're profitable. The training's free as long as you do the work. So you put down a deposit, you go through the steps, and then a few days later, once you've completed the training, you've got a clear vision, you get your deposit back, and now you know exactly what steps to take to build your business. So that will give you a launch pad to be able to cross through the revenue numbers that you need to be able to live life on your own terms. Hey, if you enjoyed this video, please ensure that you subscribe to the channel because we talk a lot about this stuff and if you're doing this alone, you probably want to join us inside the 1%. This is our community of people who are building businesses and investing the profits. So thousands of people have gone through this journey ahead of you and a lot of them are waiting for you inside of our community, which is called the 1%. And you can check that out@capitalism.com 1 thanks for watching the show. I believe that it is entrepreneurs and capitalists who create the greatest change in the world. And I know that magical thing that happens when you have enough profit coming in for you to be able to say, what do I want to create next? And I hope that this video gave you some insight in how to get there faster. Thanks for watching and we'll see you next time.