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Selling my FBA Business – Interested?

Today for the first time I am putting my unique entire FBA business including all authority affiliates websites that drive the sales up for sale!

For those of you that have been following my Journey with FBA (all posts here) you have seen this unique business strategy on a very steady upward trend!

 

Unique Opportunity:

Purchase this $11k+/month net income highly diversified, stable and growing business…

Diversified Business (not simply 1 website)

  • 2 affiliate sites with stable history of driving sales
  • FBA product line and brand generating solid sales on Amazon

Growth:

  • Upward trend for business
  • Growing market (see Google Trends data below)
  • Peak season in May but steady all year long (not a holiday rush product)

Opportunities:

  • No PPC being used to date
  • Ecommerce drop shipping option at Affiliate Sites to increase margin
  • Product Line Expansion (several great options)
  • Value multiple growth (with more data the business/brand value should be 3x annual net income)

 

Validated Unique Amazon FBA Business Model:

The business model of using an Amazon Affiliate site to drive sales to launch an FBA private label product line has certainly proven itself as you can see in the graphs below. This lower risk online business model when compared to simply purchasing a single website provides both risk mitigation along with more opportunities for growth.

 

Simply Buying & Holding Will Result in Upside Plus Lower Risk with Diversified Traffic

The business model I am setting my team up to execute is a higher risk process involving the acquisition of several affiliate sites and the creation of brands around them. This model requires capital and I will look to use the funds of this sale to rinse and repeat the model.

Currently the value I can continue to add to this business is less than growing a new affiliate site and FBA brand.

As a result I know I am walking away from a potential 3x annual income sales multiple if I were willing to simply hold (even without additional growth).

Lower Risk vs Website Purchase – Most online business purchases are a single website that the downside of the investment is a complete $0. In this case with the diversified traffic streams of Amazon Organic, Google Organic to multiple sites there is no single point of failure.

 

By The Numbers:

Income

Nov & Dec Average Net Income = $10,983 USD

The business will be valued based on the numbers from November, December and January…

FBA-Business-Metrics

(sale valuation will be based on Nov, Dec and Jan numbers)

Affiliate Site 1 Weekly Traffic

tcc-traffic

Affiliate Site 2 Weekly Traffic (Purchased Website)

bwc-traffic

 

High-Season Approaching, Steady All Year in a Growing Market

With both the high-season coming (May) for this market and the market growing at a steady rate over the last 5 years shows that the sales are not only holiday seasonally driven.

(17.5% year over year growth from 2006 – 2016 and very stable interest around the entire calendar year)

What Is For Sale?

  • FBA Business & Brand
    • Inventory at Amazon
    • Brand & Brands Website
    • Social Accounts
    • All procedures and marketing plans
  • Affiliate Website 1
  • Affiliate Website 2
  • 600 person email list (growing at a rat of 5-10/day) (30% open rate with 15% click through rate)

 

Effort of Work to Run:

  • 4-8posts per month published (1hr/week – if using a VA)
  • Track inventory & Re-Order From Supplier (2hrs/week)
  • Monitor Listing (7hrs/week)

 

Timeline for the Sales Process:

  • Determine if there is interest in the sale from my audience (Jan 18)
  • Qualify interested parties (Jan 18 – 31)
  • Discuss via Skype with potential buyers (Jan 18 – 31)
  • Determine if private sale will be possible (Jan 18 – 31)
  • Complete private sale (Feb 7)
  • If no sale in the first week in February list on EmpireFlippers.com (first week in February)

For Myself – Rinse & Repeat

For the Buyer – Grow (PPC, Ecommerce Side, Product Line & in 1 year value business at 3x Annual Earnings ideally)

 

Next Steps:

If you are interested I look forward to discussing the sales process with you…

  1. Please simply email me (jonhaver11 (at) gmail (dot) com) including…
    1. Your initial questions
    2. Proof of ability to pay (numbers or recent examples – need to filter out tire-kickers)
    3. Basic information about you/why you are looking to buy
    4. Potential times to get on Skype to discuss the sales process
  2. If interest is significant I will select ~10 qualified buyers to work with and send the due-diligence packages to
  3. Filter number of potential buyers down to 3-4 buyers and find the best fit
  4. If no private sale is in place by early February I will list at EmpireFlippers.com

Depending on the seller and their wishes I look forward to sharing the results of this process for everyone reading AuthorityWebsiteIncome.com

Invested $50k and 3.5 Months Later the Business is Worth $300k (400+% ROI)?

I started writing this post before I had finished the data analysis…the ROI is a little shocking! I want to make sure up front I say these numbers are still a little “fresh” and it would be stupid of me to consider these last two months as the basis moving forward.

Since my decision (when the wife was away and I had had a couple beer) to launch my can’t fail FBA business on a Friday night mid September I have been moving quickly (especially in the first two months).

This post is an update on my business and I share exactly how many of the assumptions I made have held up.

Apologies to those non data geeks as I share a LOT of data below!

In this post I am going to share…

  1. My Basic FBA Business Strategy (summary)
  2. Recent Success
    1. Increased Price!
    2. Keyword Ranking
    3. Reviews
  3. Recent Failures (plenty!)
    1. Lowered Price
    2. PPC (Amazon and Re-Targeting)
    3. Pushing the business forward
    4. Promo code (lost $1.5k)
  4. Sales and Traffic Numbers
    1. FBA
    2. Net Profit & How are my assumptions holding
    3. Path Forward – Revised FBA Goals
      1. Sell 50 units per day by the end of the year (Completed)
      2. Grow Business to $15k/month average for 6 months and sell for 30x
      3. Launch 2 new brands on the back of affiliate sites

Continue reading

The Ultimate Guide to Creating a Website for Amazon Brand Registry

The key to the VERY FAST success my Amazon FBA business has been having a powerful authority site driving sales to the product every day without the need for doing any ongoing promotions!

Quick FBA Update – Selling over 30 units per day at $10 profit per unit in my 2nd full month on FBA!

Something I haven’t revealed yet was that the site I am using to drive the majority of the sales was purchased from a Proffesional Website Builder, Andrew, for $3,500 and I grew it from there.

Although I have a massive team building great looking PBNs and very respectable money sites I wanted to build this business off of something much bigger/better and that is why I turned to Andrew.

After seeing both the results of my FBA business and the quality of the sites Andrew can build I knew we had to come up with a plan to share his skills with a wider audience.

Announcing – PREMIUM Done For You FBA Branded Websites!

In the next series of posts Andrew is going to share exactly how he goes about building perfect Amazon Branded Websites.

Everything he shares will be free but if you are interested in using his exclusive/highly skilled services have a look at the premium offering we have created with his skills and the support of my team...

Meet Andrew...

28-year-old family guy. A devoted husband and father to a 7-year-old son. I'm also a huge basketball ( go Magic 🙂 ) & soccer fan.

I'm in the game for almost a decade now and I've gone through it all. I enjoy being in the trenches and doing all the hard work.

Andrew
Co-Creator of BrandBuilders.io

Part 1 of Ultimate Guide to Building an Amazon Private Label Website

What is FBA?

This ultimate guide to creating a website for Amazon brand registry will be your guide and companion as we walk you through exactly what you need to do to get your online FBA presence up and running.

Before we get to the specific steps you should take; we want to explain a few principles that will provide a basis for everything to come. Two of the most popular methods to build your own online business are Fulfillment By Amazon (FBA) and Private Label businesses.

Here’s how they work.

Because online giant Amazon has built one of the most sophisticated logistics networks in the world (soon to include drones!), they have set expectations very high for what people expect when it comes to ordering products online. If people don’t experience the same ease of ordering, speed of delivery and low prices that Amazons provides, they are not likely to buy your product.

Thankfully for you, Amazon has decided to take advantage of their inventory and logistics system to create a service called Fulfillment by Amazon, or FBA, where you get to benefit from their experience.

You store the product you want to sell in Amazon's fulfillment centers. They do the rest – pick, pack, ship and provide customer service for these orders. They will even let you list your products on Amazon.com, which can boost your sales.

A 2014 survey reported that 71 percent of FBA businesses who responded to the survey saw their sales increase by more than 20 percent since joining FBA.

A private label business is when you sell existing products under your own private brand or label. Once you decide what product you want to sell, you can contact manufacturers directly. They will make your product with your label and ship it to Amazon ready to sell, which is where FBA takes over.

A Closer Look at Online Business Models

While FBA is a popular model for business owners right now, drop shipping and affiliate marketing are other lucrative models.

Drop shipping is a way to run an online store where you don’t have to store inventory or ship your own product. You set up your store and collect money for orders as normal, but instead of packing and shipping a product, you turn around and make the same order with a distributor at the wholesale price, which is less than the retail price you collected. Your profit is the difference in these prices.

With drop shipping, you don’t have to manage any inventory, but you do have to take care of customer service and deal with distributors who may not be reliable.

With affiliate marketing, you refer customers to another business, and then you get a commission if they make a purchase. Your website is just a referral source – you don't actually sell any products. The entire sales process is hands-off for you, but the downside is that you don't collect direct sales income (you get periodic commission checks), and you are not likely to get repeat customers because you are not actually offering any products for sale.

The Dominance of FBA

FBA is booming in popularity right now primarily because the barrier to entry is so low. You can decide to start a business today and be making a profit in just a couple of weeks if you choose your products well.

You need very little capital to start up (you can start with very small quantities), your audience is built in, you don't have to build your own website, Amazon handles almost all the customer service and logistic details, and you don't even have to manufacture your own products – you can just buy low and sell for a profit.

There has never been a better time to start your business because the speed and reach of the Internet are unparalleled.

A Word of Warning

Amazon is probably the world’s best marketplace, and it is amazing that you can gain access to it so quickly with the FBA program. You have exposure to a wider audience than you could ever dream of on your own, and you can quickly make a significant profit.

You face one major disadvantage, though: you don’t control the platform!

While business is booming and Amazon shows no signs of slowing down, they could end the entire FBA program tomorrow if they were so inclined. If you are entirely dependent on Amazon for sales from your product, your profits would immediately disappear, and you would have to start all over again.

What’s the Solution?

The answer to this dilemma is simple. Yes, take advantage of Amazon's incredible reach and resources, but don't make FBA your entire strategy. It is absolutely crucial for your long-term success to build your own brand outside of Amazon's reach and influence.

The best way to establish yourself online is with a well-designed, functional website bringing in natural traffic without the benefit of Amazon. Your own website gives you a piece of online real estate entirely under your control. No matter what happens with Amazon, you will have your products for sale under your brand, and that is a valuable asset.

What’s Next?

What now? You still don’t have a website, and you don’t know how to attract traffic to a site even if you did have one. You have a long way to go before you are up and running.

That’s why we’re here. In the next three or four articles as part of this series, we will talk about the importance of keyword research and how to attract traffic using the best keywords for your niche. Then we’ll get into the nuts and bolts of how to actually build your site - we’ll walk you through every step you need to take.

This is an exciting time with lots of opportunities and we are happy to be apart of it! 

Cant Fail Amazon FBA Business Month 2 Update – 117% ROI in 2 Months

It has been 2 months since I decided I was going into the FBA Business with my “Can’t Fail FBA Business Plan” and here is my update!

Todays post is a fun one… I share a LOT of data/graphs and details about my journey over the last 2 months to get this business moving.

If you like numbers, business plans, excel, assumptions and sensitivity analysis you probably have issues (like me) but will enjoy this post…

Picture1Continue reading

19 Profitable Amazon FBA Private Label Product Ideas

Finding an Amazon FBA product can be very difficult! Here are 15 profitable products people are selling that I believe are worth exploring for additional opportunities.

private-label-product-ideas

List of Potential Amazon FBA Niches/Products:

  1. Neoprene Camera Bags
  2. Neoprene Bibs
  3. Knife Sharpener
  4. Alarm Clocks
  5. Flashlight
  6. Bike Light
  7. LED Lantern
  8. Decals for Self Balancing Scooters
  9. Bluetooth Waterproof Speakers
  10. Mosquito Repellent Bracelets
  11. Cell Phone Camera Lens Attachment
  12. Phone Screen Protector
  13. Hammocks
  14. Kinesiology Tape
  15. Picture Frames

See this list broken down in much greater detail here…

https://docs.google.com/spreadsheets/d/1Ycaz6fIkavZlYldxeYlFXrZ_mvZhgp8TMuNBbTg8LiI/edit?usp=sharing

 

BONUS – What are my 2 “secret” sources for getting product ideas?

Idea 1 – Go to review websites and look at what other people are selling and looking for reviews on and reverse engineer your own slightly unique angle!

Idea 2 – Other great resources for finding profitable products to sell is website selling marketplaces. The strategy is to find websites that are selling a lot of private lable products and use that as market validation that private label products will sell in that space! Here are 2 great sources to find websites selling Amazon Affiliate products where you can then identify if you could make a Private Label FBA entry into the space:

  1. Flippa.com
  2. EmpireFlippers.com

Tips from the Experts!

I am not yet an FBA Expert so here is some advice on this subject from people who are…

  1. 20 Point Checklist to help answer “will your product sell? http://www.webretailer.com/lean-commerce/amazon-private-label-checklist/
  2. Josh from PassiontoPaychecks.com has a great post on How to Find a Product to Sell on Amazon FBA http://www.passionintopaychecks.com/how-to-find-profitable-products-to-sell-on-amazon/
  3. Scott at TheAmazingSeller has a great podcast from just when he was getting started on selecting ta great product to sell… http://theamazingseller.com/tas-004-how-to-research-and-choose-products-that-will-sell-on-amazon-step-by-step/
  4. JungleScout (awesome tool) has an entire 10 part course on this subject here http://www.junglescout.com/10steps-to-private-label-success/