Are you ready to jump into the very first Ask Scott Session of 2018? Kick off the New Year on the right foot with all the motivation and inspiration you need to push ahead as you build your thriving ecommerce business! On this episode of The Amazing Seller, you’ll hear Scott share his thoughts on the need to focus and commit this new year to Take Action! He also gives a shout out to a TAS follower like you, and of course, answers the many questions you have about various ecommerce topics. Don’t miss a minute of this exciting and informative episode!
Why focus and action will help you succeed!
What are some helpful concepts that will help you start off the year fired up and ready to go? According to Scott, sellers like you need to hone in on two things, staying focused and taking action. They sound simple but if you are able to make these two ideas your motto for 2018, you’ll go far. Listen to this episode of The Amazing Seller as Scott expands on these concepts and much more! Also, don’t forget to check out episode #458 where Scott lays out a helpful guide that will set you up for success in 2018, the link to that episode is in the resources section below this post.
What is the best way to respond to damaged products?
As you build up your ecommerce business, you’ve got to be prepared to deal with the inevitable, damaged products. Do you have a plan in place of how you will respond when you hear from a customer that their product arrived damaged? On this episode of The Amazing Seller, Scott goes over the best way to respond that can turn a bad situation into a great opportunity to expand your brand's positive reputation. It may sound counterintuitive, but Scott recommends responding to that customer with a replacement item and a full refund. When you take this extra step, you communicate to your customer that you care about their experience and their satisfaction. To hear Scott go further with how you should respond to this type of situation, make sure to catch this episode!
Is it a good idea to wholesale someone else’s products?
As you’ve heard Scott say before, a great way to get started selling on Amazon is to partner with another business or individual who has a product that they don’t sell online yet. However, is it a good idea to put all of your eggs in that basket? On this episode of The Amazing Seller, Scott encourages a seller like you to proceed with a similar business partnership but to quickly start building up their own brand. The reason for this advice is because you never know how long that partnership will last. Don’t assume that a good business arrangement will last forever! Hear more from Scott on this topic and others on this fascinating episode!
OUTLINE OF THIS EPISODE OF THE AMAZING SELLER
- [0:03] Scott’s introduction to this episode of the podcast!
- [1:30] Why you need to focus and TAKE ACTION in 2018!
- [3:30] Scott’s shout out to a TAS follower like you.
- [8:00] Question #1: What should I do when my product arrives damaged?
- [15:30] Question #2: I’m using FBM instead of FBA, is that a good idea?
- [20:00] Question #3: Should I open a new seller account or keep my current one?
- [27:30] Question #4: Is it a good idea to help a company wholesale a product? What are the downsides or concerns?
TRANSCRIPT TAS 460
TAS 460: (ASK Scott #142) $500k Listener Story – Damaged Products – Advantages of Old Amazon Account – Partner Deal with Existing Company (Thoughts)
[00:00:03] Scott: Well hey, hey what’s up everyone! Welcome back to another episode of The Amazing Seller Podcast. This is episode number 460 and session number 142 of Ask Scott. This is where…
[read more=”Read full transcript…” less=”Read less”]
…I answer your questions here on the podcast. I do it every single Friday and guess what, I'm doing it again in 2018 because this is officially the first Ask Scott session of 2018. I can't even believe that I'm saying 2018. Crazy that we're already into the new year and we're planning and we're taking action and there's just a lot of things to be excited for in life and in business.
I'm super excited if you couldn't tell. You guys probably already know that. I'm high energy guy here. But really pumped up here because it is the first of the year or the part of the new year depending on when you're listening to this. Now, if you're listening to this in July or August well then it's pretty exciting to be in July or August. It's always exciting to be here and to be alive. I mean we are living in such an amazing time. Now, today what I'm going to be talking about just to give you guys an overview we're going to talk about handling damaged products. We're going to talk about advantages of an old Amazon account versus a new Amazon account. Then also a partner deal with an existing company and I'm going to give you my thoughts on that.
That's f going to be talking about and going deep into. Before we do jump into that, I wanted to give you my thoughts and I have a lot of things that humble around in my brain every now and then. Right now because it is the beginning of the year I want you guys to really, really consider focus and taking action. I want you guys to just always be thinking of that. Now if you missed the episode that I did for the first of the year, for your goal setting and how to create your plan and all that stuff, that's like your first assignment. I like to look at my podcast as a way to teach you and also to give you action steps.
[00:02:04] Scott: That action step right now if you have not done that, you need to do that. There's nothing to buy there, there's nothing to have to commit to other than going out there and finding a notepad and writing your stuff down and answering the questions that I lay out for you in episode 458. So episode 458, I'm looking at my notes. It's why I didn't know it top of my head. That's episode 458. So go listen to that if you have not done that. Please. Because that one there will set you up for the year. Now, if you're listening to this in July or August, you can still do this.
There's no reason to not just start and pretend that it's the start of the new year. Or the start of your journey that's what you want to do. You want to have those clear goals and you want to also know how to map all that stuff out and it starts by asking the right questions and I give you a framework to use in that episode. So that's episode 458. Definitely check that out. Now the shown notes to this episode will be found at theamazingseller.com/460 and everything we talk about will be there as well. Now, before we do jump in I wanted to give a little shout out to one of the TASers.
The reason why I like doing this as far as giving shout outs is I like to recognize you guys. I like to recognize you guys that are out there taking action especially and just also to show you guys that it starts by taking action and there are going to be ups and downs but the people that stick with it are the ones that succeed. That's in any business. That's in fitness, that's in weight loss, that's in any of that stuff. The people that stick with something or focus on something and stay committed to something usually will succeed. Now it may not be succeeding at on that one thing but it's going to bring them to the thing that they will succeed at, hopefully that makes sense. But, what I want to do here is I want to give a shout out to David Zaleski.
[00:04:02] Scott: He's got a little emoji saying, “Feeling thankful,” with a little smiley face showing teeth by the way in that emoji. So, what David writes here and I'm not going to read the entire thing and I may even do a whole podcast dedicated to just running through this entire post because that's what he did. Now, I will link this up in the show notes. You're probably going to want to go and read this. It's pretty awesome. It's also a way for you to look at the entire process but then also to understand that if you're out there and you're seeing all these big massive screenshots and you're like, “Oh my gosh, I want to be that person.” You can just see by what he's sharing here, which is a screenshot for like $500,000. That's over the course of two years.
So about $250,000 but he's learned a huge amount by going through this process and he says that. I just want to read the first part of this. It's a pretty long prost that he did inside of the TAS Facebook Group. I just wanted to share with you like 500 grand like a screen shot, you'd be lake wow that's awesome. That's over two years and that's phenomenal. Like I don't know any business that wouldn't want to say in the first two years, I was able to generate 500 grand. That doesn't mean he profited that, but he validated, he got through the process, he's building a business, he's learning a whole bunch, I mean he gives a whole bunch of bullet points of what he's learned.
That just goes to show me that he understands that this is a learning process and everything that he does he's learning from. So I just read this real quick and then we get into the questions.
“Can't believe it's been exactly two years since I posted in The Amazing Seller Facebook Group. Just wanted to thank Scott Voelker and his amazing podcast.” Thank you for that David. “For getting me started back in April of 2015. I would never have gotten started if it wasn't for the Amazing Seller Podcast by making it so achievable. So thank you for that Scott. Dozens of others successful sellers I know to this day got started and thank you.”
[00:06:01] Scott: Then he pouts a link to a post that he did two years before which I think is awesome to see that he's kind of diary in a sense of his progress and then what he's done here is he's went back and reflected on the entire journey. The cool thing about it is you kind of get to go through that journey by reading this one post. I would say definitely go over to the show notes to this episode theamazingseller.com/460. I will link it up inside of the show notes and you can go to Facebook. Give him a little love. Let him know he's done an amazing job and learn from it. Learn from what he's outlined. He's outlined a whole bunch of bullet points like I said with all of the things that he would do differently, the things that he's learned that he would do more of.
Like all of that is in there. And I think this will just make a great podcast episode to go through those bullets. Which I may end up doing but again, I just wanted to give a shout out because I just seen this the other day. David, I just want to say thank you for being a listener. Thank you for taking action and thank you for sharing your results. That's what I want more of you to do. I want you to jump in Facebook, in our TAS community and share. Or, you can just send me your story theamazingseller.com/story. And just send me your story. Whether that's through email or that's through the mail. I would love to hear your story.
This helps me know that what we're doing here is making a difference. When I get emails from people that send in their story that fires me up to continue doing what I'm doing. So kind of fuels me but then also I could possibly share that story if you don't mind. And we can inspire and motivate more people. So that's really what we want to do here. So anyway, I'm going to move on here to the first question here in a second but I just wanted to let you guys know I appreciate all of you and I just wanted to share David's accomplishment here and share it with you to inspire you but also to motivate you that this is all possible.
[00:08:00] Scott: He says it in one of his bullet points. It's still so possible. It's growing the possibilities of what you can do. You just have to get out there and do it. That's it. That's my motivation for you for this Friday. So let's go ahead and let's get into this. Let's go ahead and listen to today's first question and I'll give you my answer. Let's do this. First question, 2018. Here we come.
[00:08:24] Rich: Hi Scott. This is Rich. Just wanted to tell you thank you for everything you're doing. Can't tell you how much I appreciate it and I'm sure I'm speaking for all of us. I have a question for you. If my product is delivered damaged, how do I go about replacing that for the customer? Do I need to take and hold on to inventory at my home or my home office or is there a way that I can do the product replacement through Amazon using the FBA. I hope that question makes sense. I'm looking forward to your answer. Again, this is Rich from Michigan and thank you.
[00:09:13] Scott: Hi Rich. Thank you so much for the question. I want to point something out here. The very beginning I could have cleaned that audio but you can hear it kind of crackling. It sounded like an old record and the reason why this is so fresh, I know this has nothing to do with the question, but I thought I'd leave it. I just had a get together with some friends of mine and we did a whole vinyl night where we played vinyl and I forgot how awesome it is to just hear that crackling through the record. If you guys ever get a chance to just sit down for an evening and just spin some records and I don't know, if you guys are young and you don't know much about records, you should even just play along and have some fun with it.
It's a pretty cool experience and it's thing that we had as a kid and it's just fun to go back to those times and listen to some of those albums. Some like Foreigner or Def Leppard, we even did some Black Sabbath. What else did we do? We did some stuff for the girls too. We did Greece and we did, what's another one, oh Shaun Cassidy. Remember all those? If you guy are from my era I am 45, I'll be 46 next year. So it's kind of my era. Anyway, nothing to do with your question Rich but it did bring a little bit of that memory back. So I loved it. I know you didn't even intend for it but anyway. Let's talk about this. So you have inventory that is damaged or someone emails you and says, “Hey Rich I noticed that my item is broken.
And now I want a new one. I want a replacement.” So they can contact Amazon but it would be better for the most part if you just handled that. Now, if they go directly to Amazon you're not even going to know about it really. Because then they would get a refund and they will just have to buy another one. But most of the time if this happens they are asking for you to send it to them. So what you can do, there's two different things you can. One, you can just create a fulfillment order.
[00:11:14] Scott: You already have the inventory in Amazon. For those of you that don't know if you were selling your product on eBay and you had a sale or any other channel for that matter or even your own shopify store you can have all your inventory in Amazon and you can create a fulfillment order to send to those people. All you do is create the fulfillment order and then from there just plug in all their information and then it will be sent to those people. Now, you also have tools out there that can actually connect to a shopify store, they can also connect through eBay like all of that stuff. That's out there.
But we're talking about is really you can have your inventory in one location. In this case, that's what I think your best option is. It's to really just have it reside in Amazon. If you have a problem email those people immediately and then from there just say, “Hey, sorry and here's what I want to do. I want to send you a new one,” and if you want to kick it up a notch what I want to do is say, “And I'm going to refund you because I want to make sure that you're 100% happy. Upset that you received a damaged good and you had to wait now. So I want to refund your purchase and give you one for free. Just want to say, we really appreciate your business.” That goes so far and some people would say, “Why would I do that? Why would I give away my money…?”
Well, I'll tell you why. It's called good will. When you do that, people are going to naturally want to give back. How can they give back? Let's think about this. They could leave feedback on your account, they could leave a review on that product. Those are some pretty big things. If you don't understand that you got to start thinking about that because if you we get more feedback, better feedback on our account, our overall account that helps our account. It strengthens our account. It gives us more authority in Amazon. Then our reviews obviously that will help us for a conversion aspect if people are looking to reviews in order to buy our product. So that's what I'd do.
[00:13:14] Scott: Now, the other thing I want to add here is sometimes you will have product that is in your possession. If you're shipping everything into Amazon, then it won't be in your possession. But if you're doing what I do right now, is we have a warehouse here where we bring everything in. This way here we don't have to send all 2,000 units in. We can send 500 at a time. This way here we don't have long term storage fees or any even just storage fees at all unless we send it in. We monitor our inventory that way. It's a little bit work on our part but we like it that way because we can order more, keep it in our warehouse and then we know we have than a 30 day supply. But if you're not doing that, then you're going to ship it all in. You don't have that inventory.
But what will happen is most likely is you will have refunds and they'll hand them for you but they are going to take that inventory and they are going to bring it back and they are probably not going to reuse that inventory. It's going to sit there. Then you will have to let them know within, I believe it's 60 days if you want them to destroy it or if you want to have it shipped back to you. I would recommend you shipping it back to yourself. This is where you can take that inventory, you can keep it and then in this case if you wanted to ship to someone directly product or a replacement you could. The other thing is though, sometimes when things get refunded, they don't get refunded because there's a damaged product. It's just because they didn't want it or they got it as a gift or whatever.
Now, you have inventory that you can technically ship back in as long as the FNSQ or the UPC code is all still intact. If not you'll have to repackage it or have to put on a new label. But that's the other thing that you can do. So just something to think about your goods sitting in Amazon getting ready to be destroyed and if you don't destroy them, they will take them. They will do whatever they do with them. They will either destroy them or they could also sell them off. So just be careful on that. But I would just whenever you can, just go in there and see what inventory is there that you have to make a decision on and then from there have it shipped to you. That's it.
So hopefully this has answered your question Rich and I think you go it and thanks for that little crackle at the beginning to bring back the memories of vinyl. Love it. All right, let's go ahead and listen to the next question and I'll give you my answer.
[00:15:27] Wes: Hi Scott. My name is Wes. I just now started up my own LLC and I was going to do a private label. I ended up doing some networking and bumping into somebody who was a vice president of a company and wanted someone to run an Amazon side of the business for him. What we end up working out was I'm wholesaling the product from them and then selling it on Amazon. I keep the profits. Which ends up being nice because I'm not doing Amazon FBA. I'm doing fulfilled by merchant because they have their own warehouse so I'm going to be able to user their warehouse. They have customer service center. I can use their customer service center. So it's absolutely insane opportunity that I ended up running into.
[00:16:24] Scott: Okay. I'm going to stop right there with this question or the questions because there's a bunch of questions that Wes asks. First off I'm going to say Wes thank you so much for the question and yeah does seem like you have a pretty good opportunity here. There's some other things that Wes says in the question. It's really like a three or a four part question. So what I decided to do is just cut in here really quick. So I don't lose my thought here on the first thing that I'm hearing. Number one, I'm wondering why FBM and why not FBA? If you're wholesaling the product there's no reason that you can't take a portion that you buy because you're buying them. That's what wholesale is, and then just putting them on FBA.
I believe that you're going to have more benefit to using FBA because people that have prime are going to have to benefit with shipping and all that stuff. If you don't, it won't. The other thing is when you have FBM or FBA I believe that you will rank better, it's just my personal opinion unless you are the only one selling this product or this style and then you can find a way to get a bunch of sales through FBM. I know myself personally, and I'm going through it right now, when I'm buying stuff on Amazon, there was something I was just looking at the other day and I was looking at prime and shipping and can I receive it before this certain date.
If you're FBM, you're going to lose that sale. I will guarantee that. Now, if you have something that is completely unique and I can only get it from you, then that's a different story. I'm going to wait, I'm going to have to wait. I'll probably even jump over to eBay, I'll probably jump over on Walmart. I'll jump over on other platforms to see if I can get it quicker. That's where we're moving. Amazon is making it like almost ingrained in our heads that we need to get it within two days. I'm even getting stuff the same day. I ordered a solid chopper the other day and I ordered it at like 9 o'clock I the morning and I got it at 5 o'clock at night.
[00:18:35] Scott: Just because the warehouse was here in Charlotte and they just picked it up and went. I could even have found like ten or fifteen other locations to go pick it up with Amazon locker. That's something else that's happening We're being trained as a shopper to get it quick. We want it quick. So FBM you're going to have to make sure that those people can get it really, really quick. Maybe you have the logistics to make that happen. I don't know. I would much rather you say let me buy 100 units from you. Let me ship them in on my sellers account and then they are done. They wipe their hands, they made their money, you're wholesaling it so now if you sell it, you make your money. That's how the wholesale thing works.
So I would definitely consider that versus FBM. Now, if you have something that's humongous, that's heavy and it's going to not make sense, then that doesn't make sense. But I'm assuming that you could do FBA because you said, you thought it was going to be a benefit of having them warehouse it, them do the shipping and then them handle support and stuff like that. I would much rather Amazon handle as much of it as possible because then it's on them if the customer doesn't get it. So that's my first thought on the FBM thing on this business venture. I've got some more thoughts too as we go through this but let me go ahead and turn it over back to your question that you submitted or the recording and then I'll dive back in.
[00:20:01] Wes: So my question is as I'm trying to like I'm going to launch this product before the end of the year, and I'm trying to think long term on this. I want to be able to launch my own product at some point but it just happens so that this is a good opportunity, I can make some money and hopefully build up a firm base for me to be able to launch bigger on my own personal product. Does me having an Amazon account already and having sales from this other particular product help my sales on my new personal product? Does my seller store if I want something else in that store or that other product that I launched automatically be ranked higher because of the experience of the store?
I don't know if I've had a clear answer on that. I've heard some people talk about maybe and I didn't know if you'd had anybody who had tested that theory and had any success launching. Of course you've launched all your products over and over again and maybe you've experienced that it is easier the second time because your account's bigger. Any info you can give me on that would be awesome.
[00:21:23] Scott: Okay, so I'm going to cut in here and Wes, yes I do have some thoughts here. I have some suggestions. So what we're basically talking about is you creating one seller's account. One account. Then you going to sell this product or their products in this brand underneath that sellers account. That's great. Now if you sell something of your own brand on that account we've now cross promoted or we've joined those two products under one brand. Now, the first question would be do those two products that you're going to be selling or three or four or five or whatever it is, do they work together?
Now, you could treat this as an open brand and you can say, “Well, I'm going to launch that product, build up the account so that it can get seasoned.” We call that kind of getting seasoned where you get some feedback and you start to get some history with Amazon. I do believe that there is benefits to that. A lot of benefits. One of the benefits is and I'm just experiencing this now, I've got an account that's over two years old on one brand that I'm just letting it sit there in a sense. It makes money, it takes probably about $5,000 to $8,000 every single month without doing much. That's not profit guys. I'm not saying it's profit.
We're still at about 25% on that, without doing a thing by the way. Really, just a reorder but I've thought about just launching miscellaneous products on there. Even doing retail arbitrage on that account because it's more seasoned. The other thing is you will get ungated for certain brands or certain categories if you have an account that's older than let's say eight months. Or even a year. The other thing that you'll get is you'll probably get, there's no proof on this. My good friend Dom Sugar does have a lot of experience with this and he swears that you definitely get a lift in ranking when you launch a product.
[00:23:30] Scott: If you launch a product on a brand new account and I launch the same exact one, same day everything is optimized completely the same that one that has the seasoned account will rank better. I can't say that for sure, that's what he swears by. So I'm just kind of giving you some feedback and some of what I've learned and that I've heard. But there's no proof of that. I'd have to actually do a side by side comparison but I would think so. It's like a website that is brand new or a website that is five years old and they have the exact same content, which one is going to rank better. The one that has more history. It's the same thing.
So going back to should you use the one account to do all your stuff? Well here's the other question you got to ask yourself. Is there any possibility in the future that you will ever sell that account? Now, right now you might be thinking, “Nah, probably not.” But you have to consider that. Because you're really not going to be able to split that if it's under one sellers account. You'd then have to do something like I will not sell that product on that listing. They can possibly hijack it in a sense under their new sellers account but they are going to lose the seasoned account or vice versa. Your account will then lose its season, because you're going to have to put all products under a new sellers account which is not easy.
So I would say start from day one the business that you are doing, the wholesale through I would probably do that one all in its own. Then I would start another one for your own brand and keep building that one. Then this way here there are two separate pieces of property. You got to think of it like real estate. There are two different pieces of property and you're not going to pollute I guess would be the word or maybe that's not the best word. You know what I'm saying. You don't want to have one bring the other one down because that could then hurt you in the future. The other thing is if it's not going to be an open brand style then you don't want you to be selling like one thing on the brand and then over here it doesn't make sense to sell the other thing.
[00:25:40] Scott: Then the other thing is you get cross promotion. So if someone comes in to your brand and they see that you sell five things and they are all related, there's a god chance that you're going to be able to sell that but not the six things that this wholesale thing is a good deal for you because you're doing it for that business. So that's what I'd do personally. I would focus on building two separate entities. Like you said, you already created your LLC. You already got this just go ahead with that. Even if you don't do anything with it, like I would just set that thing up and let it sit there. Maybe even do some retail arbitrage on that account and start getting it seasoned. That's what I'd do.
Get some history with it. Or just launch a couple of test products on it. Then the other one, the wholesale that's easy. You're setting it up, it's specifically for that business and that brand because if you ever sell that, you can say, “Listen, this one here is totally dedicated to my wholesale stuff that I'm doing over here with this business and if you want to go and add more products you can that are related and you can build out this brand.” You don't want to try to take those two and separate them if you ever go for a sale. I know right now you might not be thinking of a sale but you should be because you never know.
Right now in our new brand, I'm not even thinking about selling but I know that if we get it to a certain level and I get the right offer, I'm going to sell it. It's just you don't know and I don't want to have to go through all of this red tape and figuring out how to separate and how to let that one sell this and then have to get an attorney to write up stuff that I can't sell this stuff ever. I don't want to get into that. So that's what I'd recommend there. So that's the answer, that's to address that section of your recording and your question. Now what I'm going to do is play the rest of it and then I'll follow up with my thoughts and then we will wrap up this episode. All right guys, let's do it.
[00:27:22] Wes: The other thing if you have anybody or if you personally have worked with a business that's already established and then wholesaling a product onto Amazon if you have any thoughts of feelings or things that I should potentially look out for I'd be supper appreciative to hear your thoughts and feelings based on what I'm doing. Like I said, this company is actually has a big licensing deal and they just haven't been able to get the traction that they want because they don't have any… It's not a huge focus of theirs. It is but it isn't because there is this one guys is kind of juggling, this one vice president of like three different companies, weird. I don't know how it's set up it's strange.
He lacks the time in order to really drive it home. That's where I'm coming in and I'm really going to drive this product home with this licensing deal that they have in order to help him leverage and he's also got marketing materials that I can use and stuff like that. I've never done it before, if you have any things I should be concerned about, maybe watching out for I'll be super appreciative just to hear your thoughts and feelings about the entire thing. But thanks Scott. Really appreciate all you do. I've been listening to the podcast for like a year. Finally taken action, I'm super excited to get launched on this first one and excited to hear your thoughts and feelings. Keep it up man. Thanks.
[00:28:52] Scott: Okay so I'm going to give you my final thoughts Wes and everyone else listening. This is a great question or series of questions and this is what I love. I love sitting down at that table or at that meet up and going through this stuff. If you ever get the opportunity to hang out with us at a meetup or a live event this is what we do. I love it. So let me address my concerns initially. Wholesaling is risky in a sense for a long term play. Here's why. Let's say for example, the company that is supplying you with that unique product that is licensed, let's say for example they sell or let's say for example they go out of business or things happen internally. Your lifeline if you will of product is gone.
That's what scares me about wholesale. Or who's to say they don't have someone else that comes in and makes something that's similar and then they've got competition now that they didn't have before. Weird things happen. So you don't have the control you would if it was your own product. You're kind of like an affiliate for them and that's what we talk about here in the internet marketing space. It's like being an affiliate. That's basically being a partner in a sense. And same thing with like whenever you partner you have to understand and you have to have it very clear of what the roles are and like in this case that you are the only one that will be able to sell that product on Amazon.
If that is not in writing by an attorney I wouldn't believe it. I wouldn't trust it on just a handshake. Because if you do all the work and you build this thing up to be successful in a sense and then they do something that changes your stream of products then you are going to be in trouble. So that's why I would not bank on that. Personally what I would try to do I would do exactly what you're doing but I would create that like I said, I would create a separate business. A separate entity for that thing. That way there it's not going to affect my other business that I want to build.
[00:31:02] Scott: But what I would do is I would try to get that thing profitable. I would try to get that thing cranking and then I would try to offload it. That's what I would do. I would try to get it built up to where I could have some nice cash payout and then I would sell that business. That's what I would do. I would do that over the first 18 or 24 months. I think 24 months is like max and it's also really I say 18 months but I was talking to Joe Valley who actually buys and sells for people 24 months is the best. If you can get 24 months of a track record, that's going to get you the best payout possible. But 18 months will still work and even shorter than that.
They like longer and you get a better pay out on that. That's what I would personally do and then from there you can reevaluate it. I would give myself a 12 month kind of like I would put the energy to this thing, I want to get this thing going, I'm going to try to get some momentum by but at the back of my mind I'm thinking that once I get it to a certain level at the 18 month to the 24 month I'm going to shop it. I'm going to go ahead in the market and see what I can get for it. Then from there, you may just cash out and again you're building your other business. You're just doing this because it's a way for you to get in without you having to go out there and find the supplier, find the whole shipping chain and all that stuff.
And you don't have to figure all that stuff out. I get it. But there's also risk in that as well. There's risk in anything but that there is you don't control as much as I would like to control. So hopefully that makes sense. I think it's a great opportunity. Again, I want just people to understand like you bumped into this guy and then this conversation happened and here you are about to launch a business using products that they license and you are going to get them wholesale. That's how things happen. That's the way it works but you have to get yourself out there. You have to have conversations, you got to tell people what you're doing and then the people like you said, it' like the sky is busy, there's no time for this.
[00:32:56] Scott: But people will say, “Well why don't they just do it themselves?” Because they are busy. They don't understand the platform. So you got to keep your eyes and your ears open. So anyway, little side note there. But I would definitely take advantage of that for sure but I would also be thinking to myself can I build this thing up and can I cash out in the next 18 to 24 months? I would also be starting my own brand like you said you want to and get that going so that account starts to get seasoned. Whether that's just a little bit of retail arbitrage or maybe a little bit of wholesale on that one and then you can start to throw your own products in there and build that on the side.
It is important to get that account seasoned and especially now with Amazon is always changing so we want to get in when we can and I think right now is the time. So definitely do that. Hopefully that answered all of your questions and I wanted to break that up because it was kind of long but it was interesting and I wanted to address it and I didn't want to get lost as far as where we were having this conversation about different aspects of it. I think it's a great opportunity. Keep me posted Wes. I would definitely love to check in with you, see how that works and if you have any other questions definitely hit me up and I'll do my best to answer them for you and help you out.
So, guys that is going to wrap up this episode. I'm going to remind you one more time if you have not listened to episode 458 for setting your goals for 2018 and really how to create your own personal roadmap step by step go do that. That's your homework please. Go do that and I want to know that you're sitting down and you're doing this exercise exactly how we laid out on that podcast because I think it's really, really powerful. It's eye opening and it will also give you a sense of power because you're in control. You're 100% in control of this journey and your destiny in my opinion. So go do it. Episode 458 theamazingseller.com/458. I'll link everything up on the show notes including David's post that he posted in Facebook which I think is an awesome read and you'll definitely learn from it.
[00:35:00] Scott: Also give him a little love there in the comments and I'll link everything up on the show notes for you guys, theamazingseller.com/460.
All right guys. That's it. That is going to wrap it up for this episode. Remember as always I'm here for you, I believe in you and I am rooting for you but you have to, you have to… Come on say it with me, say it loud, say it proud, you guys know what I'm going to say, “Take action.” Have an awesome, amazing day and I’ll see you right back here on the next episode.
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