PPP session3b process slides
THE PROVEN PRODUCT PARTNERING
FORMULA COMING UP NEXT...
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D O R
T C U
E L P O PE
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C O R
S S E P
S T I F O R
HOW-TO PARTNER P
C O R
S S E
THE PROCESS
YOUR CLIENT MUST BE WILLING TO: Follow Your Amazon Process (within a pre-define way)
A COMPLETE PROCESS is about to be revealed... This forms the BASIS of constructing your AGREEMENT
HOW-TO PARTNER P
C O R
S S E
THE PROCESS Strategy
Product Revamping
The Deal
Reviews
Inventory
Resources and Materials
Promos & Rankings
Marketing Disclosure
Ad Costs
Marketing Opportunities
Seller Central
Cancellation/Termination
Roles
Sale Of Company
Communications
Crazy Stuff
HOW-TO PARTNER C O R
P
S S E
Strategy
Agree to what is called the "Climb Mt Everest Strategy.” This means there is a single goal and none of us know the exact challenges we face just yet. Our mantra must be "do whatever it takes." We understand the summit is achievable (i.e. reaching the top three rankings and/or page one rankings for several primary keyword phrases) But we do not know how steep the climb will be or how many Yeti we must conquer along the way. What is known is that no one else in our category that will be as acutely focused on the goal or using the strategies we will deploy.
HOW-TO PARTNER C O R
S S E
P
The Deal
Agree to give you an EXCLUSIVE for first product on Amazon Agree that if product #1 is successful, future products will be done similarly. Agree on first 3 products to tackle upfront. Agree to not authorize secondary sellers. Agree to help remove/discourage existing secondary sellers.
HOW-TO PARTNER P
C O R
S S E
Inventory
Agree product must be Prime Eligible (Fulfilled By Amazon ~ FBA). Agree to maintain ample inventory at all times. Running out of inventory is NOT acceptable. OPTIONAL: Agree that each time inventory remains at zero (out-of-stock) for longer than 5 days the commission rate payable to consultant (you) shall increase permanently by 1%.
HOW-TO PARTNER C O R
P
S S E
Promos & Rankings
To Achieve or Maintain Rankings: Agree to "promo/discount" 50 to 300 per month for approx. 3 months @ Under $1. Agree to "promo/discount" AT COST (~50% off) as much product as necessary.
HOW-TO PARTNER C O R
S S E
P
Client agrees to open/maintain a Seller Central "PRO" account in clients name ($40 mo). Client agrees to grant FULL access to Seller Central account including all sales data. Client agrees to have limited people authorized to engage actively within Seller Central. Client understands consultant will be pro-active within Seller Central account on a regular basis. Consultant will keep client apprised of important modifications in a timely manner, but will not be required seek pre-approval to make edits or take actions.
HOW-TO PARTNER C O R
P
S S E
Roles (Seller Central)
Agree to to ROLES within Seller Central: YOU: Product set-up, images, all product detail page copy (Title, Bullets, Description etc) YOU: Set-up and manage Promo Codes & Amazon Ads THEM: Inventory, Financial Matters, Most phone communications with Amazon. BOTH: On customer issues, CLIENT will handle day-to-day issues EXCEPT when there are "issues" such as complaints, bad feedback, bad reviews, refunds etc. In these instances you collectively brainstorm the best solution, then in most case CLIENT carry it out. BOTH: CLIENT will handle most day-to-day communications within Seller Central, but it is best to brainstorm strategy collectively first if it is a sticky issue.
HOW-TO PARTNER C O R
P
S S E
Communications
To Maintain Maximum Communications: Each party shall provide:
• • • • • •
Skype Screen-name Primary Phone Number After Hours Number Mobile Number (for text messaging) Email Address Mailing Address
You as the consultant will ALWAY respond within 24 hours. Within 2 hours is best.
HOW-TO PARTNER C O R
S S E
P
Product Revamping?
If needed: Agree to cooperate in re-vamping of product if necessary This might include, different bundling, different packaging, different pricing etc. Anything required to increase Attention, Interest, Desire and Action (AIDA) with customers.
HOW-TO PARTNER P
C O R
S S E
Reviews
Getting good product reviews will be a collective effort. This will be an ongoing, never-ending part of the required strategy. Also, rest assured there will be BAD reviews and these will not be removed by Amazon no matter how egregious they are. It is agreed to brainstorm tactics to mitigate such bad reviews. One strategy which will be deploy is "Over-Refunding" - this is allowed by Amazon, can be effective, and is worth the cost. It is agreed that "Over-Refunding" up to $20 above the product cost may be used as a strategy from time-to-time. Client agrees to acquire at least the first 10 four to five star reviews (family, friends and connections)
HOW-TO PARTNER C O R
S S E
P
Resources & Materials
Anything necessary to complete consultants job must be made available in a timely fashion. This would include all up-to-date product materials, descriptive copy, images (preferably in layered Photoshop files), sample products delivered to: CONSULTANT ADDRESS 123 ANY STREET MYTOWN, MYSTATE 12345
HOW-TO PARTNER C O R
P
S S E
Marketing Disclosure
It is imperative that consultant be aware of ANY related marketing online or offline in other channels for same product (Active ads, Store shelf, Commercials, Blog posts, Social Media or Facebook Marketing, Sells Reps, Distributors, Affiliates, Resellers, Wholesalers etc).
?
HOW-TO PARTNER P
C O R
S S E
Marketing Opportunities Part 1
Client agrees to pursue marketing opportunities to promote Amazon sales via existing customer/prospect lists, company site/blog, and partner or cooperative lists. Client agrees that whenever possible, potential buyers will be given the opportunity to BUY ON AMAZON if that potential buyer is at company site/blog or social media page. Client understands that allowing wholesalers, distributors, outlets and resellers to BUY ON AMAZON (using promo codes to deliver at wholesale pricing) is a smart idea and will consider these opportunities on a case by case basis. Client also understands that Consultant earns NO COMMISSION on bulk wholesale orders purchased via Amazon in this manner.
HOW-TO PARTNER P
C O R
S S E
Marketing Opportunities Part 2
Client understands that driving Amazon sales via another sales channel (for example an infomercial or commercial) is also a smart idea and will consider these opportunities on a case by case basis. Client also understands that Consultant earns NO COMMISSION on pre-arranged external channel orders purchased via Amazon in this manner. Client understands that giving away products (contests, charity, samples etc) can also be done VIA AMAZON (using promo codes). This too is a smart idea and client will consider these opportunities on a case by case basis. Client also understands that Consultant earns NO COMMISSION on pre-arranged giveaways via Amazon in this manner.
HOW-TO PARTNER C O R
P
S S E
Event of Default
In the event sales do not materialize or sustain themselves despite all efforts, Consultant may terminate agreement at anytime by providing 60 days notice. Client may terminate agreement by meeting the following 3 criteria: Providing 60 days written notice AND within same 60 days, product cannot be sustained on page one Amazon search results for at least one of the following 3 keyword phrases: 1.Keyword phrase 1 2.Keyword phrase 2 3.Keyword phrase 3 AND net payout (monthly earnings) from Amazon remain below $X,XXX per month for this same 60 day period
HOW-TO PARTNER P
C O R
S S E
Pre-mature Cancellation
If for any reason client cancels, terminates or refuses to go forth under this agreement within the first 3 months, or before such time as gross revenues have reached a minimum of $1,000 per month, client must reimburse consultant for time and work rendered. This pre-mature cancellation fee shall be $10,000 and will be due within 30 days of cancellation. Consultant and staff commit significant time, resources and expertise in the early stages of every product set-up, thus a pre-mature cancellation is to be avoided by all means.
HOW-TO PARTNER C O R
P
S S E
Pre-mature Cancellation
If for any reason client cancels, terminates or refuses to go forth under this agreement within the first 3 months, or before such time as gross revenues have reached a minimum of $1,000 per month, client must reimburse consultant for time and work rendered. This pre-mature cancellation fee shall be $10,000 and will be due within 30 days of cancellation. Consultant and staff commit significant time, resources and expertise in the early stages of every product set-up, thus a pre-mature cancellation is to be avoided by all means.
HOW-TO PARTNER C O R
P
S S E
Termination
Upon the occurrence of an Event of Default, Client shall have the right to terminate the Agreement at any time upon 60 day written notice. In the absence of an Event of Default, Client shall have the right to terminate the Agreement at any time upon 60 days written notice to Consultant; provided, however, that client shall be obligated to pay Consultant the Termination Fee. The Termination Fee shall be payable monthly following the procedure below: (i) The term “Termination Fee” means the compensation that Consultant would have earned during the twelve (12) month period following the date Client terminates the Agreement assuming that Net Sales during each month of such twelve (12) month period equal Average Monthly Sales. (ii) The term “Average Monthly Sales” means the quotient obtained by dividing total Net Sales during the three-month period immediately preceding the date the Agreement terminates by a factor of three.
HOW-TO PARTNER C O R
P
S S E
Sale Of Company
If client corporation sells or transfers ownership, this agreement must be transferred intacked without modification or a buyout can be negotiated.
HOW-TO PARTNER P
C O R
S S E
Crazy Stuff Part 1
It is a known FACT that Amazon can be quirky, illogical, inconsistent and extremely frustrating at times. Your Seller Central account can be closed, frozen or put on probation by Amazon for no reason or for unjust reasons. Product images and product descriptions can be changed by Amazon. Product pages can be frozen preventing updates and edits. Promo codes on rare occasions can get shared beyond their intended target audience and product can end up sold at discounts not intended. Amazon can lose products, ship the wrong product, even ship empty boxes (they do reimburse on things like this, if you ask). In addition, customers and competitors can post bad reviews. This all sounds bad, but on the other hand, Amazon can, for many products, deliver more customer sales daily than virtually any other channel you might try. And Amazon customers will almost always pay higher retail prices than any other channel. For many sellers it is a love/hate relationship.
HOW-TO PARTNER P
C O R
S S E
Crazy Stuff Part 2
All this said, it is one of the primary reasons you'll sell more products and make more money working with a skilled Amazon consultant. There are solutions, workarounds and ideas that help mitigate these challenges. Whenever an issue arises (and after a few curse words), it's time to brainstorm the solution. While you as a company can reach out to your staff and executives for ideas, as your consultant I work with over 2000 other Amazon sellers in a group that provides support and first hand experience. I also work with some of the top minds in this field, and can get any question answered within 24 hours if I don't already know the answer or best path forward. In other words, Amazon can be so confounding at times, it takes the experience of thousands (including your team and my team) to determine the best solution. As your Amazon Consultant, I will provide exactly that.
THE PROVEN PRODUCT PARTNERING
FORMULA COMING UP NEXT...
P
D O R
T C U
E L P O PE
P
C O R
S S E P
S T I F O R
FORMULA COMING UP NEXT...
P
D O R
T C U
E L P O PE
P
C O R
S S E P
S T I F O R
HOW-TO PARTNER P
C O R
S S E
THE PROCESS
YOUR CLIENT MUST BE WILLING TO: Follow Your Amazon Process (within a pre-define way)
A COMPLETE PROCESS is about to be revealed... This forms the BASIS of constructing your AGREEMENT
HOW-TO PARTNER P
C O R
S S E
THE PROCESS Strategy
Product Revamping
The Deal
Reviews
Inventory
Resources and Materials
Promos & Rankings
Marketing Disclosure
Ad Costs
Marketing Opportunities
Seller Central
Cancellation/Termination
Roles
Sale Of Company
Communications
Crazy Stuff
HOW-TO PARTNER C O R
P
S S E
Strategy
Agree to what is called the "Climb Mt Everest Strategy.” This means there is a single goal and none of us know the exact challenges we face just yet. Our mantra must be "do whatever it takes." We understand the summit is achievable (i.e. reaching the top three rankings and/or page one rankings for several primary keyword phrases) But we do not know how steep the climb will be or how many Yeti we must conquer along the way. What is known is that no one else in our category that will be as acutely focused on the goal or using the strategies we will deploy.
HOW-TO PARTNER C O R
S S E
P
The Deal
Agree to give you an EXCLUSIVE for first product on Amazon Agree that if product #1 is successful, future products will be done similarly. Agree on first 3 products to tackle upfront. Agree to not authorize secondary sellers. Agree to help remove/discourage existing secondary sellers.
HOW-TO PARTNER P
C O R
S S E
Inventory
Agree product must be Prime Eligible (Fulfilled By Amazon ~ FBA). Agree to maintain ample inventory at all times. Running out of inventory is NOT acceptable. OPTIONAL: Agree that each time inventory remains at zero (out-of-stock) for longer than 5 days the commission rate payable to consultant (you) shall increase permanently by 1%.
HOW-TO PARTNER C O R
P
S S E
Promos & Rankings
To Achieve or Maintain Rankings: Agree to "promo/discount" 50 to 300 per month for approx. 3 months @ Under $1. Agree to "promo/discount" AT COST (~50% off) as much product as necessary.
HOW-TO PARTNER C O R
S S E
P
Client agrees to open/maintain a Seller Central "PRO" account in clients name ($40 mo). Client agrees to grant FULL access to Seller Central account including all sales data. Client agrees to have limited people authorized to engage actively within Seller Central. Client understands consultant will be pro-active within Seller Central account on a regular basis. Consultant will keep client apprised of important modifications in a timely manner, but will not be required seek pre-approval to make edits or take actions.
HOW-TO PARTNER C O R
P
S S E
Roles (Seller Central)
Agree to to ROLES within Seller Central: YOU: Product set-up, images, all product detail page copy (Title, Bullets, Description etc) YOU: Set-up and manage Promo Codes & Amazon Ads THEM: Inventory, Financial Matters, Most phone communications with Amazon. BOTH: On customer issues, CLIENT will handle day-to-day issues EXCEPT when there are "issues" such as complaints, bad feedback, bad reviews, refunds etc. In these instances you collectively brainstorm the best solution, then in most case CLIENT carry it out. BOTH: CLIENT will handle most day-to-day communications within Seller Central, but it is best to brainstorm strategy collectively first if it is a sticky issue.
HOW-TO PARTNER C O R
P
S S E
Communications
To Maintain Maximum Communications: Each party shall provide:
• • • • • •
Skype Screen-name Primary Phone Number After Hours Number Mobile Number (for text messaging) Email Address Mailing Address
You as the consultant will ALWAY respond within 24 hours. Within 2 hours is best.
HOW-TO PARTNER C O R
S S E
P
Product Revamping?
If needed: Agree to cooperate in re-vamping of product if necessary This might include, different bundling, different packaging, different pricing etc. Anything required to increase Attention, Interest, Desire and Action (AIDA) with customers.
HOW-TO PARTNER P
C O R
S S E
Reviews
Getting good product reviews will be a collective effort. This will be an ongoing, never-ending part of the required strategy. Also, rest assured there will be BAD reviews and these will not be removed by Amazon no matter how egregious they are. It is agreed to brainstorm tactics to mitigate such bad reviews. One strategy which will be deploy is "Over-Refunding" - this is allowed by Amazon, can be effective, and is worth the cost. It is agreed that "Over-Refunding" up to $20 above the product cost may be used as a strategy from time-to-time. Client agrees to acquire at least the first 10 four to five star reviews (family, friends and connections)
HOW-TO PARTNER C O R
S S E
P
Resources & Materials
Anything necessary to complete consultants job must be made available in a timely fashion. This would include all up-to-date product materials, descriptive copy, images (preferably in layered Photoshop files), sample products delivered to: CONSULTANT ADDRESS 123 ANY STREET MYTOWN, MYSTATE 12345
HOW-TO PARTNER C O R
P
S S E
Marketing Disclosure
It is imperative that consultant be aware of ANY related marketing online or offline in other channels for same product (Active ads, Store shelf, Commercials, Blog posts, Social Media or Facebook Marketing, Sells Reps, Distributors, Affiliates, Resellers, Wholesalers etc).
?
HOW-TO PARTNER P
C O R
S S E
Marketing Opportunities Part 1
Client agrees to pursue marketing opportunities to promote Amazon sales via existing customer/prospect lists, company site/blog, and partner or cooperative lists. Client agrees that whenever possible, potential buyers will be given the opportunity to BUY ON AMAZON if that potential buyer is at company site/blog or social media page. Client understands that allowing wholesalers, distributors, outlets and resellers to BUY ON AMAZON (using promo codes to deliver at wholesale pricing) is a smart idea and will consider these opportunities on a case by case basis. Client also understands that Consultant earns NO COMMISSION on bulk wholesale orders purchased via Amazon in this manner.
HOW-TO PARTNER P
C O R
S S E
Marketing Opportunities Part 2
Client understands that driving Amazon sales via another sales channel (for example an infomercial or commercial) is also a smart idea and will consider these opportunities on a case by case basis. Client also understands that Consultant earns NO COMMISSION on pre-arranged external channel orders purchased via Amazon in this manner. Client understands that giving away products (contests, charity, samples etc) can also be done VIA AMAZON (using promo codes). This too is a smart idea and client will consider these opportunities on a case by case basis. Client also understands that Consultant earns NO COMMISSION on pre-arranged giveaways via Amazon in this manner.
HOW-TO PARTNER C O R
P
S S E
Event of Default
In the event sales do not materialize or sustain themselves despite all efforts, Consultant may terminate agreement at anytime by providing 60 days notice. Client may terminate agreement by meeting the following 3 criteria: Providing 60 days written notice AND within same 60 days, product cannot be sustained on page one Amazon search results for at least one of the following 3 keyword phrases: 1.Keyword phrase 1 2.Keyword phrase 2 3.Keyword phrase 3 AND net payout (monthly earnings) from Amazon remain below $X,XXX per month for this same 60 day period
HOW-TO PARTNER P
C O R
S S E
Pre-mature Cancellation
If for any reason client cancels, terminates or refuses to go forth under this agreement within the first 3 months, or before such time as gross revenues have reached a minimum of $1,000 per month, client must reimburse consultant for time and work rendered. This pre-mature cancellation fee shall be $10,000 and will be due within 30 days of cancellation. Consultant and staff commit significant time, resources and expertise in the early stages of every product set-up, thus a pre-mature cancellation is to be avoided by all means.
HOW-TO PARTNER C O R
P
S S E
Pre-mature Cancellation
If for any reason client cancels, terminates or refuses to go forth under this agreement within the first 3 months, or before such time as gross revenues have reached a minimum of $1,000 per month, client must reimburse consultant for time and work rendered. This pre-mature cancellation fee shall be $10,000 and will be due within 30 days of cancellation. Consultant and staff commit significant time, resources and expertise in the early stages of every product set-up, thus a pre-mature cancellation is to be avoided by all means.
HOW-TO PARTNER C O R
P
S S E
Termination
Upon the occurrence of an Event of Default, Client shall have the right to terminate the Agreement at any time upon 60 day written notice. In the absence of an Event of Default, Client shall have the right to terminate the Agreement at any time upon 60 days written notice to Consultant; provided, however, that client shall be obligated to pay Consultant the Termination Fee. The Termination Fee shall be payable monthly following the procedure below: (i) The term “Termination Fee” means the compensation that Consultant would have earned during the twelve (12) month period following the date Client terminates the Agreement assuming that Net Sales during each month of such twelve (12) month period equal Average Monthly Sales. (ii) The term “Average Monthly Sales” means the quotient obtained by dividing total Net Sales during the three-month period immediately preceding the date the Agreement terminates by a factor of three.
HOW-TO PARTNER C O R
P
S S E
Sale Of Company
If client corporation sells or transfers ownership, this agreement must be transferred intacked without modification or a buyout can be negotiated.
HOW-TO PARTNER P
C O R
S S E
Crazy Stuff Part 1
It is a known FACT that Amazon can be quirky, illogical, inconsistent and extremely frustrating at times. Your Seller Central account can be closed, frozen or put on probation by Amazon for no reason or for unjust reasons. Product images and product descriptions can be changed by Amazon. Product pages can be frozen preventing updates and edits. Promo codes on rare occasions can get shared beyond their intended target audience and product can end up sold at discounts not intended. Amazon can lose products, ship the wrong product, even ship empty boxes (they do reimburse on things like this, if you ask). In addition, customers and competitors can post bad reviews. This all sounds bad, but on the other hand, Amazon can, for many products, deliver more customer sales daily than virtually any other channel you might try. And Amazon customers will almost always pay higher retail prices than any other channel. For many sellers it is a love/hate relationship.
HOW-TO PARTNER P
C O R
S S E
Crazy Stuff Part 2
All this said, it is one of the primary reasons you'll sell more products and make more money working with a skilled Amazon consultant. There are solutions, workarounds and ideas that help mitigate these challenges. Whenever an issue arises (and after a few curse words), it's time to brainstorm the solution. While you as a company can reach out to your staff and executives for ideas, as your consultant I work with over 2000 other Amazon sellers in a group that provides support and first hand experience. I also work with some of the top minds in this field, and can get any question answered within 24 hours if I don't already know the answer or best path forward. In other words, Amazon can be so confounding at times, it takes the experience of thousands (including your team and my team) to determine the best solution. As your Amazon Consultant, I will provide exactly that.
THE PROVEN PRODUCT PARTNERING
FORMULA COMING UP NEXT...
P
D O R
T C U
E L P O PE
P
C O R
S S E P
S T I F O R
