I first found Matt Loberstein on youtube sharing some tips on the Amazon FBA business.
In 2017, I started hearing more and more about Amazon FBA business.
Now at this time, I already had an online lead generation business that was doing multiple six figures for me.
I was living that laptop lifestyle, but I’m the kind of guy that likes to continue to try new things & challenge myself so I purchased Matt’s course along with few others and decided to dive full-on into it.
I had some ups and downs along the way but I was able to get a successful product selling on Amazon.
I’m going to provide you an unbiased review of Matt’s course as well as what I think about this whole Amazon FBA business.
How does it compare to other online business opportunities?
I’ll go into all of that & more, as I break down for you why everyone should build their online business around Free Traffic and why.
What I like about Matt Loberstein’s course
I have to admit this is not my first Amazon FBA course that I’ve gone through, I’ve actually reviewed quite a few of them so far, so most of Matt’s content was a good review of the Amazon FBA business but I still took away some nuggets from Zero to Brand.
Here’s some of my favorite bits.
- Straight to the point lessons, Matt shows you A through Z exactly how to start selling on Amazon, its broken down nicely and great for a beginner with no experience
- Great product research methods
- Great method of supercharging your product launches and getting more reviews by using clickfunnels, PPC campaigns & email marketing.
- Matt’s been running Amazon FBA business himself since 2015
- The active private Facebook group (so important to immerse yourself with other like-minded people)
So Matt’s course has got all you need to launch your very first physical product business on Amazon.
Why hire a coach?
Because some of the more advanced stuff Matt teaches, you’ll be hard-pressed to figure out on your own.
Trying to do it on your own only takes more time & money to figure out.
He gives you the technical breakdown of how to run paid advertising and creating funnels to collect buyer’s email addresses so that not only can you direct them to your Amazon product page but you can follow up with your buyers for reviews or recommend them other products down the road.
So becoming successful on Amazon is not just about product research & order/buy from suppliers & get a product listing up.
Its what you do behind the scenes to boost the traffic to your listing that makes all the difference.
The Good & The Bad of Amazon FBA Business
- Amazon is a growing company, 20%-30% increase in revenue each year
- Amazon #1 place to buy things on the internet
- Amazon FBA program takes out all the manual labor out of physical product business because they do the packaging & shipping for you
- Many different products out there to choose from
- Once you get to page 1 rankings, its free traffic
- Scalable business
- Possibility of building a brand & selling it in the future
- Take a while before you can get your product listing up (product research, vetting out suppliers, ordering bulk)
- no guarantee that the product will sell well or reach page 1
- getting harder & longer to reach page 1 search results as more people start doing Amazon FBA
- very difficult to manipulate the search results because it’s heavily dependent on your reviews
- hassle of dealing with foreign suppliers
- others can steal your product ideas
- selling physical products means much lower profit margins because of the cost of goods sold & Amazon fees
- selling on Amazon means you have less control over your profit margins because you have to stay competitive with your competitors, & as more people join Amazon FBA it increases competition & drives the price of products down over time
Amazon FBA program makes it easier than ever before in human history for anyone to start a physical product business. You don’t have to deal with much of the heavy overhead that was traditionally required like warehousing, packaging & dealing with customer service/returns.
However making it this easy & accessible for everyone has its drawbacks as well, because now the competition will go up expotentially overtime as more and more people join the business opportunity.
More competition is only good for the consumers. It’s always bad for business owners & entrepreneurs.
Despite being able to sell so many different kinds of products, there’re already many product categories that are showing signs of over-saturation by the huge increase in FBA sellers.
When the first page products already have hundreds or thousands of reviews, it’s unwise to try to compete with that.
The reviews being the major factor for people to purchase or not to purchase makes Amazon FBA more difficult for new sellers to come in and try to compete.
If you’re driving down the street and you see one bakery with a line wrapped around the building and another bakery with no line, immediately you want to buy from the first bakery.
This is simple human psychology.
So much of your Amazon FBA success depends on proper product research, basically finding a product that’s not over saturated yet with tough competition while still having decent sales volumes.
The problem though is as more people join Amazon FBA, there will be less and less of these product categories available.
Also, competitors might come in and try to undercut your prices.
However there are certainly still a good amount of opportunities out there, just don’t be afraid to fail few product launches.
Avoid the trap of paralysis by analysis aka getting stuck on product research.
The good thing though is that its not that big of a deal if your first few product launches don’t do well, it’s not that much money out of pocket because you have no overhead cost besides the cost of the goods which you can liquify by lowering your prices and just waiting till they sell out.
Local Lead Generation Business vs. Amazon FBA business
Generating leads for a local business is much easier to rank on page 1 because you’re only competing with local companies maybe 10-20 companies at most. Whereas with Amazon, you’re dealing with 10x the competition or more.
Also Google rankings are much easier to manipulate because the biggest factor for rankings in Google is backlinks which can be created on demand if you know what you’re doing. Whereas with Amazon its the reviews, which is much harder to fabricate, ever since Amazon did away with incentivized reviews.
Also one thing that annoys me about Amazon FBA business is how others can come in and begin selling the same product or very similar product with simply different branding & packaging, and then they go to undercut your prices.
Which lowers your sales or forces you to lower your prices.
With local lead generation I don’t have to worry about that, I have sites that I haven’t touched in years that’s making money for me every month and the amount has stayed consistent over the years.
One thing I will say about Amazon FBA business is that I like it over shopify e-commerce model because with shopify business you have to rely on paid advertising (Facebook ads or Adwords) to keep the business going, whereas with Amazon as long as you rank your product to page 1, you’re getting free organic traffic.
Just like my lead gen biz which is also free traffic.
I say this all the time on my blog.
I love free traffic and I think everyone should focus on building their online business around free traffic primarily because free traffic allows you to build a business consistently that’s much more sustainable and longterm.
The 80/20 Rule
Have you heard about the 80/20 rule?
That 20% of your activity is producing 80% of the results.
The problem is many people are spending their time messing with things that ultimately ain’t gonna make a whole lot of difference to your bottom line at the end of the day.
Here’s an example of non-income producing activity that you could be wasting time on
- Product research
- checking your rankings
- Excessively watching training videos or youtube
All these activities have its place but when you’re spending too much time on it, you could be using these activites as an excuse to not take action and procrastinate
For myself, I have clearly identified that 20% topline activity that propells my business forward more than any other activity
And that is content creation.
Let me explain…
Each time I write a blog post or create another lead generation site that’s another online property that has the potential to be viewed by thousands of potential customers for years to come at absolutely no cost.
1 lead generation site might make for me $10,000 per year.
That lead gen site might of took 3 hours to complete. So if you do the math that was a $3,333 per hour activity for the first year.
That’s just for 1 year.
But these online properties will produce results year after year.
Within 5 years, that’s $50K from 1 lead gen site. (I have some lead gen site that’s making me more than that)
Which means that was a $17K per hour activity
Free traffic is king.
Its how you can begin to dominate your space or an industry.
Wielding the power of free traffic is what really creates that time freedom & a life of abundance because your time is leveraged out the wazoo.
Now you understand why local lead generation business is such a great business model? And why I still have my team produce lead gen sites for me every month even though I’m already making $50K per month.
I’m at a point where I started this blog to show others how to do it because the opportunities are that abundant in this business, I mean think of how many cities there are in the USA alone and how many different types of businesses & niches there are in each city. We show you A through Z how to do it with this coaching program.
This is why I make it a point to wake up every day and the first thing I do is to make sure I produce at least 1 piece of content before I eat my first meal. (Lately its been blog posts on this site.)
Pro Tip: Do the most important task of the day first thing in the morning, ideally before your first meal.
You may find that your level of focus is highest before you put food in your belly. Digestion takes energy. This is called Time Restricted eating & it’s also super healthy for you as well.
Usually, I’m spending at least 2-3 hours writing/producing content. Every morning.
I’ve made it a discipline.
Because I know as long as I complete that task, which is the 20% activity that produces 80% of the results, then I know that my business is consistently growing.
Because every piece of content that you produce, increases your free traffic aka directly increasing your sales.
Now you know why, Amazon gurus like Matt Loberstein & others make it a point to consistently produce Youtube videos.
And other top guys like Gary Vaynerchuk make it a point to produce daily social media content such as the Daily Vee show. (his Vlog)
Look, Amazon FBA business is just bit limited in your ability to scale your free traffic because you can only create couple product listing at a time just based on the amount of time & work required to create each product listing such as finding suppliers first & making sure you have inventory.
When you’re completely digital such as generating leads or selling a coaching course, you can scale infinitely easier because you’re not tied down to a physical product.
You can create a blog post, youtube video or make a lead gen site daily that will go towards boosting your business.
More lines you have in the water, the more fish you catch.
Money loves speed.
Also digital products are nearly 100% profit margins, whereas with e-commerce/Amazon its around 10%-20%.
Big reason why many eCom or Amazon FBA guys transition to selling courses.
Less competition, better scalability & higher profit margins. (which btw is the exact reason why local lead gen is still my #1)
Over the past year, I’ve dived into the Amazon FBA business so I invested in courses by Matt and few other coaches and I finally found a successful product after 3 failed product launches.
It took some patience & persistence.
Because I already had a lead generation business that was making me multiple six figures online, I only worked on the Amazon FBA business part-time basis and I wasn’t in any major rush or anything.
I think that helped me stay the course because some of the initial steps of setting up the business are quite tedious and time-consuming.
Like contacting suppliers, waiting for them to reply, ordering samples, waiting for the item to arrive, etc.
Not much else you can do besides wait & that’s a shame because with my local lead generation business you can continue to make more and more lead gen sites if you have free time and stay really productive.
Being productive is great because the lessons & the results will come faster.
I love always having that high-income activity that I can get busy on.
I still place lead generation as my #1 online business pick and Amazon FBA as my #2.
I just have that personality of always wanting to do different things so lead gen keeps me satisfied because you can get involved with so much more projects at once.
Whereas Amazon FBA might be more for someone that wants to have a singular focus on 1 project at a time, someone with good deal of patience. If you’re that person, then Matt Loberstein’s Zero to Brand might be the thing for you.
If not, lead generation is the faster / easier path to 6 figure online income IMO. Check out this coaching program.