In this week’s episode of Freedom Fast Lane Ryan Daniel Moran interviews Joe Junfola who is one of The Tribe members (and The Tribe Member of the year.) Joe believes his success boils down to one thing and shares what he thinks he has done differently to most people who are building businesses right now. This is a great example of someone who started a new business and made it work in record time.
Main Questions Asked
- Why has your rise to success been so rapid compared to others in The Tribe?
- What did you take from other businesses that you applied to this business that caused such rapid success?
- What was the difference in your rapid success compared to somebody who is struggling?
- Talk about investing up front and where that lead you?
- What do you say to the person who wants to protect their assets but also start a business?
- How do you manage your time and stay entrepreneurial?
- How did you come up with a strategy and identify the things you were going to focus on in order to produce the most direct result?
- Was there a time when you were tempted to get distracted and deviate from your plan?
- What was the point when it shifted from investing a lot but not getting sales to getting more sales and profit?
- What was the reason for your continued growth?
- Explain why you spend money on an ad that lost money
- Is it just Amazon ads you are willing to go into the red on or are you using the same approach with Google AdWords?
- What is your perspective on a ‘trip wire?’
- Was there a point when you worried about upfront investment?
- Do you ever worry about competitors coming in or the marketplace getting saturated in your space?
- What is the plan for differentiating your product from others in the market place?
Key Lessons Learned
- Be willing to outspend your competition
- Be willing to delay gratification by investing in customer acquisition
- The person who can spend the most to acquire a customer usually wins
- Be willing to get the revenue flowing even if the profit margins aren’t apparent immediately
- Be in the mindset of getting reviews (need sales to get verified reviews)
- Joe expected to go 3-6 months before seeing any return on investment
- Invest a lot up front in order to get the systems, and sales and cash flow in place in order to be profitable long term
- You need to be looking at timeframes in years not months or weeks
- You don’t need a lot of money to start on Amazon (especially when compared to starting a franchise)
- Don’t discount what a few thousand dollars can do when you’re starting up a business
- Joe works on getting the sale, getting the review, and running Amazon ads
- Focus on things that have worked for you in other businesses or that directly impact sales
- 3 Step Process; build the website, put products on the website, rank the website (do things that impact your bottom line)
- Ask yourself: what is going to directly impact sales?
- Many people focus on social media during the launch phase however Joe doesn’t think this is necessary
- The switch to making money often comes after establishing the brand name on Amazon and having social proof in the form of reviews and gaining rank
Spending into the Red
- When it comes to Amazon ads, Joe sets a high bid in order to let the ads actually run to get traffic and sales
- In order to bully your way to the top you need to be prepared to spend into the red
- The more traffic, the higher the conversion rate on the traffic because ads convert at a better rate than organic traffic (important driver to ranking on Amazon)
- Joe is willing to spend as much money as possible until he is in the number one position on Amazon
- Even though the loss on ads may be 10-15% Joe is making up for it on organic traffic which gains rank
- Set a reasonable budget high enough to capture the top 3 positions and let it run
- Traffic coming in from AdWords will convert at a lower rate
- In the beginning each sale is worth more than the profit
- It is the potential for an Amazon review that is worth more than the profit
- A trip wire is luring people in with a low price product as a means of getting them to convert at a decent rate into a higher priced product or service
- The idea that those who can spend the most amount of money to acquire a customer are those who win
- Have a variety of different products you can sell to that person
- Spend money to get a customer in order to be high enough in a channel to where you get massive exposure that you are not paying for
- If you follow the system and identify products that you know are selling (Amazon willingly gives you this information) if you choose well, its proof of concepts without having to invest any money
- Look at other listings that are making money and approximate
- Look at the potential volume and profit in a business and know that you will have to weather the storm before you achieve your desired results
- Competition is a sign that there is profit in a market
- Having multiple products allows for a stronger ranking within a brand
- Spread your risk across different brands and products
- Adding an accessory is a way to differentiate and give customers a new opportunity to buy from you
- Differentiate in the listing itself. Pictures and title can affect conversion rate
- Continually refine listing to stay ahead of your competition
- Tweak and test new things to see what brings you the most amount of new customers by changing your marketing approach
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Ryan Daniel Moran
Ryan Daniel Moran is one of the most sought after speakers and thought leaders on lifestyle freedom in the world. He specializes in creating extremely profitable cash flow streams and businesses without compromising your lifestyle. Ryan is passionate about inspiring, educating, and empowering people to live extraordinary lives, and he believes that anyone can live the life of their dreams as long as they take responsibility for their results and take consistent action toward getting what they want. When Ryan isn’t inspiring his listeners and readers, you’ll find him at an improv show, a Cleveland Indians game, or traveling the world.