Original subtitles

Hey, this is Terry Dean.

And today we're talking about the Amazon

funnel formula, how YouTube can create a passive income and attract a flood of

self liquidating buyers from Amazon.

So why Amazon?

That's because Amazon is the buyer's search engine.

Now pretty much everybody knows that Google is the number one search engine

and the second most popular search site is YouTube.

But when it comes to buyers and where they get started, 63 % of online shoppers

go to Amazon when they start searching for products.

That comes from a 2020 survey from statistica.com

Think about that for a moment.

63 % of online shoppers go to Amazon.

Now let's add in the fact that Amazon has over 200000000 prime members.

And their prime members spend an average of one thousand nine hundred and sixty

eight dollars annually from the latest statistic that I've seen.

And 89 % of buyers trust Amazon more.

Than other e commerce companies that

comes from feed visor.

You put all these stats together and you

can see that Amazon is the place that people go to buy.

So that if you want to get your message in front of the largest group of buyers

online, Amazon is the place to go.

Now for most of my clients, we deal with

some type of information product or some type of service that we offer coaching

consulting courses. Other types of information workshops.

And that means with Amazon that you're going to be dealing with books and Kindle

books primarily.

And when you start thinking about Amazon,

it seems like everybody wants to have that big one best selling book.

But when you do your research and you see what's working on Amazon for others,

you're going to find out that the majority of authors that do really well

on Amazon have multiple books.

I went over to written word media.com

and I have a link here that you can go over to and visit and they talk about a

survey that they did with authors who are earning 6 figures or more.

And one of the interesting statistics that came up in that survey is that the

authors who were earning more than a thousand dollars a year on had twenty

eight plus books in the system now.

That isn't directly relevant to what

we're talking about today because the 28 books, this is for an author that's

primarily making their living based off of book income.

That's not what I'm suggesting that you do, or that the majority of my clients

do. Instead, your books are a lead generator

for other courses or other services that you offer on the back end, so you don't

necessarily need 28 books.

But I brought up the statistic so that

you can see they're not making money just from one book.

They're not making the majority of their money just from one book.

They're making it from a multitude of books.

And there's a reason for that, which we'll cover in a few minutes.

And that's because Amazon, the way the system works, the way that the algorithms

work, if you have multiple books in the system, they're going to end up promoting

each other.

They're going to end up reselling each

other, and then pretty much all of your books end up doing better.

So this stat is for those who are full time writers who are trying to make a

living from Amazon.

We're using it as both a source of some

passive income and as a lead generator for our other products and services.

And so as we talk about that, I want you to think about what the term self

liquidating leads mean.

I just used that at the very beginning.

Self liquidating leads means that we're selling something on the front end that

pays the cost of customer acquisition.

So we're not really trying to make a

large profit on the front end.

We're just trying to sell something to

bring customers in, because selling a new customer is a expensive proposition.

It can cost you a lot of money to bring in new leads.

Let's say, for example, that we're doing some type of advertising.

Maybe we're advertising on Facebook or we're advertising with videos on YouTube,

or we're advertising in Google search, let's say.

That we're taking a stepbystep process.

We're generating leads.

We're then converting those leads into sales.

And here's the process that we're doing on a friend end.

So we might be spending 3$ per lead.

That's going to vary wildly based on the

type of market you're in.

That's often on the lower end.

If you sell business to business, you're probably going to be paying a lot more

per lead than that.

But let's say that we're spending on

average 3$ per lead.

And so it cost us 3000$ to bring in a

thousand leads into our business.

Maybe we offer a 49$ offer on the front

end. So this isn't the primary product or

service that we want to sell.

It's a front end offer that's going to

generate benefits for our customers.

And at the same time, it's going to start

building that relationship with them where they know, like and trust us for

other services that we might sell on the back end.

So we do a good job on converting those leads and we sell 5 % of those on a four

9049 dollar offer that brings in two thousand four hundred and fifty dollars

in revenue. So we've actually lost money at this

point in time, generating leads, selling that first product.

We've now lost money.

Well, we do an upsell on that product

immediately after you buy the 49$ product we give the customer an opportunity to

buy another product for 99$ And we do a good job on the upsell and 20 % of the

buyers end up buying the upsell.

So that's another 990$ in.

Revenue so you add those together, subtract the 3000$ we spent to bring in

the leads, and we would make 440$ in gross profit.

There wouldn't be a lot of expenses on this because I'm talking about something

that could be like a digital course, but there would be some customer support.

Expenses, there would be some credit card or PayPal expenses.

So it's 440$ gross profit, but really not much of A profit at all.

What we did in that process is we paid for the advertising.

We generated a thousand leads and 50 buyers and about a break even level.

That is a very successful front end because that also means that hopefully

we're able to scale it up.

And keep similar numbers as we scale up.

So that's a self liquidating offer.

But of course the danger here is that

we're paying up front for all these leads.

We're paying 3000$ to generate these leads and we don't know just how we're

going to convert.

Maybe we don't get a 5 % conversion,

maybe we do lower, maybe we can't convert 20 % of them to the upsell.

So maybe we actually lose money on the front end.

But basically that's a self liquidating lead process.

Now let's transition this over to Amazon.

So in Amazon, we sell a thousand kindle

books at two dollars and ninety nine cents on amazon we're going at the lowest

cost where amazon lets us have seventy percent of the money so we just mark the

book at two dollars and ninety nine cents it could be higher or you could even go

down at ninety nine cents but you don't get to keep seventy percent of the money

in that case so if we sell a thousand books we would bring in two thousand and

ninety dollars. Now, of course, we might have spent some

of that money advertising on Amazon, which we'll talk about a little later.

Or we might have spent some of that in our time going out on podcast interviews,

doing podcast interviews or other types of marketing to sell those books.

But in most cases, we're going to be able to keep our risk very low because if

we're doing Amazon ads, we're going to see the the sales as they're coming in.

Day by day, inside the system, if we're doing podcast interviews, yes, we're

investing our time.

And if we make good choices with

podcasts, we'll talk about that on a different one of these modules.

If you make good choices on the podcast, then you're going to not only generate

leads immediately, but you'll generate them over time as well.

And then we'll convert some of those buyers.

Now, Amazon doesn't immediately give us people's email address just because we

sold a book to them, but we can put what we call a content upgrade.

Inside of the book where you offer something else, and again, we'll talk

about this later, maybe some Cheat Sheets or some videos to go along with it, or

some other type of bonus that customers will get.

If they go over to your red website and they opt in to your email, list they'll

get this bonus along with the book.

Let's say that 10 % of buyers join your

email, list and you could probably do better than that as well.

We can push that up to 1520 % or more of the buyers with a strong enough.

Content upgrade. So out of the thousand books we generated 100 buyer or leads.

Remember these weren't just free opt ins, they paid money, they read your book.

These are high value leads that not only purchased but they frequently now know

like and trust you from the book itself.

And I'll say this, the Amazon lead

generation, the process that we're talking about is best when you have.

Higher ticket or continuity offers to sell on the back end.

And that's because we're building a strong relationship with their customers.

Because again, they're not just freebie seekers who joined an email list and get

a few emails from you.

They purchased a book from you.

They they sat down and read information that you provided on the front end.

So they're much higher quality leads than you might generate just from General

General paid advertising and.

Using Amazon this way allows us to tap

into Amazon's credibility.

Even more than that, having books on

Amazon can increase your own authority, your own proof, your own credibility for

everything else that you sell, and.

And what other clients have experienced

and talked about is that you can see a bump in cells for all of your other

products and services once you get like 50 plus good reviews on your Amazon book.

So you get a book up on Amazon and you get it to about 50 reviews and you might

even get more than that.

Maybe you get to 100 or 200 reviews,

you're going to start seeing your other products and services sell better because

of the built in credibility that Amazon gives you.

It's independent social proof that you don't control.

So it's awesome.

You know, imagine the difference in value

of a customer who has heard your name on an ad versus a customer who read all of

these great reviews of your book, then read your book and decided to then opt

into your list.

It's a totally different kind of lead, so

that's what makes this system so powerful.