A couple days ago I was interviewed on the Bacon Wrapped Business Podcast (crazy name, I know)… we planned on discussing drop shipping but the conversation quickly turned to how to invest and acquiring assets. We did a deep dive on the topic for about 90 minutes and I’ll definitely share the link with you once it’s live.
For now, I recorded my top takeaways / lessons from the conversation and posted them as a podcast on eCommerce Lifestyle. Enjoy!
Mentioned in this Podcast:
- Bacon Wrapped Business
- Free Training Webinar
- Empire Flippers
eCommerce Lifestyle Podcast Show Notes: Whatcha Gonna Do With All That Cash? (A Lesson on How to Invest)
Table of Contents
- How to Invest into your Business -Buy Traffic & hire people
- Next Best Place to Invest- Business Acquisition
- How to Build brand for your business
How to Invest into Your Business- Buy Traffic & Hire People
What’s up guys? Anton Kraly here from Ecommerce Lifestyle and welcome to another episode of the podcast. So today, I’m driving into work right now, and I was thinking about a conversation, actually an interview that I did a couple days ago, and it was really a good one. It was with a guy named Brad from a podcast called Bacon Wrapped Business, so pretty funny name. Again, yeah Bacon Wrapped Business. It’s not live yet at the time I’m recording this episode, but when it is, I’ll mention it, like where you can find it, because it was, I thought it was a really good interview. Not to like pat myself on the back, but Brad just had really good questions, and the things he was asking me about, specifically the eCommerce industry, were things that I actually have researched myself, and I had some good information. Kind of just like randomly there were just things I’ve personally looked into. So we talked for like, I don’t know, an hour and a half I think almost, and just got to share a lot of I think really good ideas on how to invest that should benefit you as well to listen to.
But what was interesting about that podcast and kind of what came up, was investing and how to invest. So not investing in the traditional sense, like you know getting stocks and opening a 401K, and you know blah, blah, blah, blah, blah, but investing into businesses and investing into business growth. So I did wanna share kind of, I guess the cliff notes if you wanna call it that, or some takeaways that I shared there that I think could benefit you as well. Because one problem, I mean it’s a great problem, but one problem we have as business owners is what to do with our money. Now you know, let’s say you start your business and eventually you work really hard for really long and you figure some things out, and between everything you did right and between your work ethic and just between everything clicking, you start making money. And now the question becomes, “Okay, what do I do with this money, once my basic needs are met,” right?
So I’m a big believer that always, as much as possible, you should be investing back into your business, and I do that really in two main ways. The first being into traffic, so paying for customers. You know I’ll gladly give Facebook and Google, and anyone else I can, money all day if they’re gonna send me customers for less than I’m gonna make from the customers. So the first thing that obviously I recommend, is spending really as much as you can to buy traffic profitably. Meaning, you’re getting a great return on your money. So let’s say you kind of tap that out, or usually that’s not true, but let’s say you feel you’re at a comfortable level in your ad spend, and you don’t wanna go up proportionately to how much money your business is making, right? You don’t want to put it all into ads.
Well the next best thing, which you should be doing simultaneously as you’re investing into ad growth, is investing in people and building a team and getting the right people to work together. Because the truth is, you know I kind of alluded to this in yesterday’s podcast, but no matter who we are, and how great we think we are, and how highly we think of ourselves, we are not the best at everything, and we simply can’t get everything done on our own, right? So to next best thing, or something again that should go hand in hand with buying traffic is, getting great people by your side, on your team, to work together to accomplish your goals, okay?
Next Best Place to Invest- Business Acquisition
Now with those two things being said right, again top two priorities right there, I’ll focus on traffic and people all day in terms of how to grow a business, but once those things are in place, again once you don’t feel like you really need to hire more people, or maybe you don’t wanna grow to more people, that’s kind of where I been at for a long time. I don’t want a huge team. I’m happy with how many people we have now. Then what do you do, right? So this is where that podcast conversation, or podcast interview that I did, kind of took place, or in this frame. Because the host of the podcast told me he recently acquired a site, a website, and he did it because he saw opportunity for how he can build it out with his eCommerce brand.
Now this is where I think it also could make a lot of sense to put your money. And I’m not just saying, let’s get this out of the way, I’m not just saying you should spend your money buying websites and flipping websites, not that it’s a bad business model, not that it doesn’t work, but there’s probably bigger things you could do to improve your business from what’s already working. But again, let’s say your business is spitting off cash flow, and you’re looking for ways to grow your business, and you’re like, “Okay, what can I do with this?” Well, what the podcast interviewer did and what is a great thing to do is, look for opportunities that you can acquire within your niche, that will instantly grow your authority. Very important, not just sales, but authority and reach.
So I’m not saying, if you sell things like, I don’t know, if you sell racing steering wheels, I’m not saying to go out there and look for another website that sells, you know car racing steering wheels to acquire, because that’s only going to grow you so far. And honestly, if you’re listening to this, and you’re part of eCommerce Lifestyle, you could probably just replicate what they’re doing. But if you’re selling racing steering wheels, you can go out there and look for all other racing blogs, and racing forums, and all different racing communities, right? Where are the ones that people are active at? Where are the ones that have traffic? Where are the ones that have eyes on them, and where are the ones that are under monetized? Meaning the ones that don’t have their eCommerce stores. Maybe they’re only making their money from simple Google Ad Sense from their website. Maybe they’re selling sponsored posts or something like that. But they’re not monetizing the site as well as you know how to, because you are an eCommerce person and you know how to make as much money as possible from every web asset there is.
So, these are the type of things that, if I was in this scenario, situation, I would look for. I would, and just so you know, this isn’t something, you’re gonna go onto flippa.com or empireflippers.com who I love, great place to buy and sell sites, but you’re not gonna just go there and say, “Okay I sell racing steering wheels, let me see if there’s any racing enthusiasts blogs for sale.” Because what are the chances? It’s low. It’s possible but it’s low. What you’re gonna do is go on Google, just like anyone else interested in racing would, and you’re gonna search for racing blogs, and racing forums, and racing communities, and whatever other keywords there are out there, and you’re gonna look at these sights, and see which ones again are busy, which ones are active, which ones are under monetized, and when you do that, you’re gonna reach out to the webmaster, the site owner, to whatever you wanna call them, and you’re gonna start a conversation about possibly acquiring their business.
How to Build a Brand for your Business
This is how you’re gonna find opportunity, not by people presenting it to you, but by you going out there and finding it and actively pursuing these deals. Now, something I’ll say about making these deals happen, some of them take months or years, right? Because not everyone that has a website that is doing well wants to sell it. Maybe the first pass you make, they’re offended. Or maybe they say, “No, I have no plans,” but at least you’re starting the dialogue, and just like when you’re trying to get approved with, you know gold suppliers, and trying to work with the best of the best people, these are conversations that evolve. These are people that you follow up with. And really these are relationships that you build over time.
And I mentioned earlier that, you’re really looking to acquire these, more so for the reach and the social proof that in instant sales boost. Because the biggest again, sales boosts you’re gonna get again, are having great people on your team that either do sales, or that help you to buy paid traffic or run ads, and the other biggest boost you’re gonna get is by spending more money on ads, opening new channels, because those are things that directly impact your top line. But when you have, you know these new blogs in your portfolio now, or these new communities, it just increases your visibility in the market place. More people know about you, again for the racing steering wheel example. More people see your logo, and when they’re ready to buy, because they probably don’t have intent right away, but when they’re ready to buy they will think of you.
So your store will make more money in the long run, and your store will be worth a lot more money in the long run, because now you have more of a brand behind it. You have more social proof, you have more credibility. You have more people who know who you are. So it’s gonna lead to bigger brand deals, more customers, and again, a higher valuation on your ecommerce business. So that’s to kind of message, or that’s the message that I wanted to get to you. I’m actually at Starbucks right now, right near the office. So I’m gonna go in, I’m gonna get a coffee, then I’m gonna get today started and crush it.
So guys, if you’re enjoying these episodes, I know at this point it’s not on iTunes and everywhere yet, but it should be in the next few days. For now, if you wanna leave a comment, let me know your thoughts, I would love to hear from you. Go to ecommercelifestyle.com. Again ecommercelifestyle.com, click on episodes. You’ll find this one and let me know your thoughts on how to invest. And let me know what you wanna hear about in future episodes as well, all right guys? I will talk to you in the next episode. See ya.
I’d love to know how you invest the profits from your eCommerce store. Let me know in the comments below!