28. Is Your Product Failing?

Video Transcription

Adam Hudson: (00:01)
Good morning, everybody. I thought I would jump in today and do a carpool coaching into our private Facebook group, which is something that I haven’t done in a long time. This is kind of like what I do in use by pretty much every day, but I thought I’d jump in here and do a, do this in Facebook this morning. So guys, uh, it is, uh, say five 30, 5:30 AM. Uh, I’m doing a podcast interview at 6:00 AM this morning from the studio. So I’m on my way in there. Um, but I wanted to jump in and just talk to you guys about, uh, something, uh, that happened this week. And it’s not an uncommon occurrence that I wanted to share with you because I think this, this part, this broadcast that I’m doing now is about failing. It’s about what happens when you launch a product and the product doesn’t work or isn’t working, uh, and you decide that it’s time to quit Amazon.

Adam Hudson: (00:58)
So I want to talk about this for a minute, because, um, earlier this week, and I won’t reveal anything here about the student, but it’s just, I think there’s a powerful lesson in this for everybody, a message came in saying, Hey, look, you know, my product hasn’t worked. Um, uh, I, I I’m, I’m done, I’m quitting and I’m out. I’ve spent the money on PPC. I’ve spent the money on professional photography. I’ve done everything that I think is right. I’ve followed the course to a tee and my product isn’t working. And so I’m going to call it. And, um, I’m wondering if I can find somebody to buy my account and the remaining products now, um, what I want to talk about out of all of that is, uh, a couple of things. So in the last little while, um, we’ve been talking about a guy called Matthew Fraser.

Adam Hudson: (01:52)
Who’s in our community. Who’s one of our early students like student number 400. I think he was, um, somewhere around there. He was in our first platinum partners intake. And Matthew is currently doing about a million dollars a month, a little over at the moment, half of that on Amazon and half of that through his own funnel marketing. And here’s going to be talking at the upcoming virtual summit. But what I want to tell you is something that a lot of people won’t know about Matthew. And that is that the first two products that he did on Amazon failed, he and I worked together. He chose the products he wanted to launch. Uh, we were optimistic about them, but neither of them really fired. Now. I was the same. I was, uh, when I first started, I was six months in after launching and I very, very nearly quit Amazon because I just couldn’t figure out what was going on.

Adam Hudson: (02:49)
And I was convinced that I’d done it. Everything not only that was right in the course that I bought, but also my own business experience told me this should work. Um, I’d visually differentiated. I’d gone up market. I was selling a product for $99. That was my very first product was $99. Um, because I knew all the way back then at a higher dollar value. I, this is back in 2012, had higher gross dollars in it to buy advertising. So that’s why I went to an I $9. And let me talking about this at the virtual summit and how we’re seeing this as an emerging trend. So I very, very nearly quit. And, um, you know, it was, uh, you know, um, uh, six months in, and then I went and got a coach who had looked at what I was doing. I learned a couple of things and fixed it.

Adam Hudson: (03:39)
And the rest is history, right? Went on to build my, not only my Amazon companies and, uh, globally, but also, um, reliable education, but I very nearly quit. So what I said back to this student was look, you know, I’m quitting now where you are, you have like, your product’s not right. You didn’t choose the right product. Um, the, the, um, the way that you differentiated doesn’t matter to that audience. Uh there’s uh, it was extremely competitive niche. It’s a $22 items. So there’s no gross dollar margin. Like there might be $8 or something. Now, when I, one of the important stats I’m going to be revealing this week, uh, sorry. The weekend after, uh, is that right now, the average, um, click on Amazon is 88 cents across the platform. So 88 cents across the platform, and the average conversion rate is one in eight. So it takes about $7 or one to nine or something.

Adam Hudson: (04:41)
It takes about $7 to buy a customer, irrespective of the product that you sell. So if you’re selling a $20 item and I thought this, this cost $8, it was, I’ll say $7 cost, $7, Amazon fees, and $7 profit. You’ve got no profit after paying PPC. Whereas if the product was a hundred dollars, you’d have 30 or $40 of gross profit, you could spend SendOwl at $7 on clicks is still in profit, right? So I looked at his listing, I could see he’d followed most of the training. Like he had differentiated. He had gotten, um, great photos. Um, he had done a private label brand, but he chosen the wrong product, um, at a difficult price point to win at, unless you really, really visually differentiate in a very real way that organic traffic is going to carry you. Um, but just the rum product, he just, he just chose the wrong product.

Adam Hudson: (05:32)
Um, and so now he’s talking about quitting and I said to him, look, you know, it takes a lot of work and you now have in your brain, and not only all the neural pathways connected to know how Amazon works, how to create a listing, how to import all the UPC barcodes, how to find a supplier sought out an international supply chain, or the thing that humans is, we forget, we forget all of that pain and all of that work that it took to get us there. Um, reasonably quickly, I always joke that, uh, making businesses is like making babies like they’re painful, right? The women, I think must forget how much pain they went through because they got to do it again. Um, as men have no idea. So it’s this hugely painful, hugely taxing experience on the body to give birth. Right? But then we forget because we go, Oh, well, you know, I want to have another one now.

Adam Hudson: (06:24)
And that’s what entrepreneurs do. So imbedded in this guy’s brain is this incredibly valuable asset. And someone like Matthew Fraser took that knowledge and then started partnering with, um, brands that don’t know how to sell on Amazon and started to type them on the Amazon and taking them to his own funnel, um, knowledge. And, uh, and now he’s doing a million dollars a month, right after the same experience of failing, not once, but twice with two privates when he first started. So what I want to encourage those of you that are out there, and this is the beautiful thing about Amazon. Amazon’s not personal, right? Amazon is not personal and it’s success as a distribution platform is not in question. You made the right decision by choosing to go with Amazon, right? Amazon is the most successful e-commerce platform in the history of the world, right?

Adam Hudson: (07:23)
It is the easiest place to figure out whether your product is what the market wants or not. This is just a binary, um, almost almost binary feedback mechanism. The market says, we like what you have. We don’t like what you have, that’s it, there’s a product that you create is a price that you put on it. The great thing is you can go and spend a thousand dollars and get a thousand clicks to go and view your offer at the price you’re asking. And if nobody buys it, you know, it doesn’t care. It doesn’t matter at that point, what your master mind thinks. It doesn’t matter what your mom thinks. It doesn’t matter what your bias is. The market will just tell you by way of voting. These are people that searched for your product. You can bid on that exact keyword. And within a week, you can have hundreds of clicks.

Adam Hudson: (08:13)
If you’ve chosen a large enough niche, you can buy hundreds of real, intentional eyeballs to look at your product and offer in the company of your peers. And if you are not getting orders, it is because you didn’t differentiate. We’ll create something that people want at the price that you are asking. It’s not that you know, Amazon’s unfair. It’s not that you’re a boy. It’s not that you’re a go, it’s not that you are black. It is not that you are white. It is that you misjudged the market, that’s it. And it happens to all of us. We all do it. We all struggle with have bias around and what we think the market wants experienced entrepreneurs are just those that have the ability to let the market decide and who do not take it personally, who just understand the work is the work. And then experience comes from the doing and this particular person.

Adam Hudson: (09:21)
And I said this to him as well. I said, you now have the added assets of real pain about what happens when you are not, uh, critical enough, uh, or you, you didn’t take a big enough risk because he chose a product that was relatively cheap to make he differentiated in a way. Um, like I’ll, for example, I can say this. He was giving a white, an ebook in a category that I don’t think makes Jack of a difference. Um, uh, whether the ebook is part of it at 20 bucks, I don’t care. I just want the best thing that he was telling, but the evil and the packaging he was putting in this beautiful box, right? I just thought I’m going to add value to a beautiful box, which is a mistakes. So many people make a beautiful box is only relevant in certain categories.

Adam Hudson: (10:13)
There are a lot of extremely successful Amazon sellers that put this stuff in a plastic bag, right? Because the consumer doesn’t care about packaging. So you have to differentiate in a way that matters in that particular market, um, to that particular audience. So I strongly encourage this person. I said, look, you did a great job, 80% of the way, but the underlying problem is you chose the wrong product. That’s it? Right. So, and I always revert back when I was in Los Angeles, living there, I started a flight simulator company. I started an animation company. I started, uh, an Amazon company, and then I started an Amazon reviews company called I love to review. Now, let me give you the breakdown. Same entrepreneur in the same city at the same age. At the same time, my animation company took off, did really, really well made millions of millions of dollars.

Adam Hudson: (11:14)
Did great. Okay. My Amazon business struggled for six months then took off, did really, really well. Great had two successful strikes. Then I did. I don’t have to review that when Amazon allowed people to go out there and re and incentivize reviews at that time, it was within terms of service to do it. That business took off into and right, a few million dollars. And then Amazon changed Tim service lost the business overnight. And then the flight simulator, pardon? The pun crashed and burned. Right? I lost $150,000 like that because I didn’t do my due diligence. Well enough. And I made a, and I lost my money. Same entrepreneur, same city, same time. Two went really well. One got closed down by the terms of service change and the other one failed. That is entrepreneurship, ladies and gentlemen. So if you’re sitting there right now going, Oh my God, I’ve got a product and it didn’t work.

Adam Hudson: (12:15)
There’s a difference between saying that product didn’t work and jumping to the ill informed much safer, much more cozy blanket of Amazon doesn’t work. Amazon doesn’t work. If it’s no, it’s all hype. It’s that? Because the minute you say that, it’s very, very easy for you to go. Yeah. See, that’s the problem. The problem is that it’s all just a big scam. Yeah. Amazon’s not the largest e-commerce company in the world is not one of the most successful businesses ever to launch on planet earth. It’s not that right. It works. If you get it right. Is it getting hard? Is it hard to find it right? It isn’t, it isn’t it once you’ve developed the eyes and why don’t you head some experiences? Once you get kicked in the guts of the knots, a couple of times you start to understand you, you know, you start to see differently and you start to, most people quit before they even get a product to the market.

Adam Hudson: (13:14)
This is what I said to the guy. You know, most people don’t get to where you are. You’re in the 2% club now, and this isn’t motivation. I’ve got nothing to gain by telling this guy to stay the course. And you know, like, it, it, it, I’ve got nothing to gain. Right. I’m just telling him because it’s true. Right? So just don’t reach for that comfy blanket of making the world wrong. When in fact it’s just that your product wasn’t right. That’s it. That’s all you all, you did wrong. You did nice photos. You, you know, you did an icebox, you sorted out the supply chain. You’ve got all of that. Right. But nice photos of private label, brand, a nice box and all that. That’s still not quite right. It’s like baking a cake. You have to get all the ingredients. Excuse me, all the ingredients in place, in the right order.

Adam Hudson: (14:04)
You got to put it in the oven for the right amount of time. And once you figure it out, bang, it’s on, it’s on like donkey Kong. And if you talk to any of the rhinos, any of the white rhinos, they’ll tell you the same thing. Sometimes they didn’t know which was going to be the most successful product in the market, told them. And that’s all very well and good to hear this stuff and listen to this stuff and to read about it in a book and all that. But it’s not until you’ve gone through six months of pine and the market just dismisses your product. Just like not, not right. That’s when you get the lesson, that’s when you go, Oh, I should have been more objective, but they’re not, they’re not going to the market. Doesn’t give you a warm blanket and a cup of tea.

Adam Hudson: (14:52)
When it gives you the feedback, it just gives you nothing, no sales, or maybe dribs and drabs, right. And then what you’re going to do and sit there. And it’s my process that I’ve taught many, many times is ask people who know, if you’re stuck there, ask people who know and who have the results. Not people who’ve quit. Not people who have never succeeded, not people who are thinking about quitting that you know, is going to be a really warm audience for your compliance. Go and talk to people who know what they’re talking about. And a strong enough to tell you straight. Cause I told this guy, here’s, what’s wrong with your product? Why you, where you made the mistakes right? Going and ask people who know what you did wrong Valley will tell you how to fix it. Or that it’s time to get rid of that product.

Adam Hudson: (15:37)
I told him that product wrong prop, put a bullet down, go, right? You’re wasting your life, your money. Money’s gone. It’s over right. Find people who can tell you the truth. Then if there’s things to fix, fix them to basically do everything you can. And if it still doesn’t work, kill it. And then decide. Are you going to go back to the life of looking for the next shiny object? Or are you going to double down on your knowledge, on your experience and try to capitalize on what you’ve put in? Because let me tell you this. And it isn’t Amazon, isn’t Amazon over, over the five years I’ve been doing this guys. I’ve seen this over and over again where persistence beats intelligence over and over again. I don’t mean this to sound derogatory. Like I, you know, Matthew is very, very smart. Um, Angela, very, very smart, but there were people that were equally as smart, that filed on their first attempt, walked away.

Adam Hudson: (16:34)
And now they’re looking around for something to do still that their story in their head is Amazon doesn’t work. And then meanwhile, Matthew’s coming onto the virtual summit, not this weekend, but next telling you how he’s doing a million dollars a month to 35% margin. He two failed at the start. The difference is he kept going, right? He was convinced. He looked at the data in stock picking. I call it conviction. Right? Great investors convicted about the stocks that they buy. There’s probably going to be a market adjustment coming up soon of some magnitude. But the ones that will succeed are the ones that have conviction because all stocks generally are going to get smashed when that happens. And then out of it, I think what’s going to happen there. We’re going to see a bifurcation coming up, which is, we’re going to say a real changing of the guard, right?

Adam Hudson: (17:25)
We’ll see an adjustment, wherever it comes. The great innovative companies are going to go to the moon and the others are going to die. A quiet and fast death, right? That’s where I think is going to happen. Um, and then those people who have the conviction that the underlying asset value or the underlying concept of what they’re doing as a business is strong. We’ll stick with those stocks and they will stay the course, right? And they will get back to where their highs, wherever they finish. And they will go beyond them. Whereas others, the first sign of a wobble will bile. They’ll sell their stocks when they shouldn’t sell their stocks and they’ll go, Oh my God, the stock market doesn’t work. But the stock market, if you look over the fullness of time guys up and to the right, same with real estate, fair-weather investors always lose out, Oh, it’s got a bit of a wobble.

Adam Hudson: (18:19)
Get the property onto the market. Now pay the capital gain, right? You know, pay the agent, which has all your profit out of your profit. And then go back when the market’s starting to emerge again and pay stamp duty again. And these people will never win because they’re not convicted about property. Right? My good friend, Michael has one of the top agents in Australia, top commercial agents in the world says to me, Adam, the best time to sell a great property has never. And when you’ve got Amazon and you’ve got Shopify, you are in great property. You made a great decision. You just have to learn how it works. Don’t fold your cards too early. Then you can fold the cards on a bad product, but folding the cards on your dreams and the right vehicles is a mistake. All right, guys, I hope that helps. Um, and uh, they have it guys have a good day and we will see you at the virtual summit. If you don’t have your tickets, get your tickets. They go up Sunday night at midnight, they go up it’s the last week to get them at one 97. We will see you at the vigil summit pot guys. Bye for now.