July 23,2020

What arrangement should you create when partnering with influencers for a brand on Amazon? How did Amazon do it?

Andrew Shield‪s‬

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Full Episode

Transcript

A lot of people focus, you know, they listen to people say focus on your numbers know your numbers, all that kind of good stuff. And of course, that's really, really, really important, however, and I want this to be burned into people's DNA, when you focus just on the numbers and you look at just your head, your baseline costs for the product to source it, to obviously get it into nice packaging to get it into the channel, be it Amazon FBA or you're an FBM Shopify type site, or whatever it may be specifically you're selling in. That's one layer of cost. Above that sits obviously your marketing costs and stuff. Here's the thing - if you give away a little bit more, if you make it really sweet and juicy for those influencers to engage with you, the amount of brand equity that they can help you bring to the table if you're using them right should far outweigh 1% or 2% or one or two little chinks of piece of gold or pieces that you're going to give away on top of what you might normally have done. That's why Amazon's Associates plan for years was one of the most generous in the industry. Does anybody really think that this multi billions tech, now trillions company was crazy enough to just give away free money and because they were so dumb that they didn't know anything. Or maybe, they'd run the numbers and understood that being the most generous marketplace made you the most sticky and therefore, you could drive the most equity out of those relationships whilst they were symbiotic and working for everyone

Thanks,
George