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Should I Use Amazon PPC to Grow My Business?

Amazon PPC

That’s all, the end.  So, Amazon PPC can be an effective way to boost sales and boost rankings for a product that you’re selling on Amazon.  Or if you’re launching a product on Amazon, it can be a really effective source to give things a lift right out of the gate.  It’s a way to force your products into collective awareness so that you can get reviews and get things moving.  The problem that a lot of Amazon sellers have is they’re living on Amazon pay-per-click and only looking at the return on ad spend.  And they’re not looking at how it amplifies the overall business.  So if your goal is to just sell widgets on the internet so that you can make money and not have to get a real job, then you’re going to have a hard time with Amazon pay-per-click because you have to play the game for a long time and be willing to lose money.  Now can they be profitable?  Absolutely, you are seeing now bigger companies move into Amazon with much bigger ad budgets.  And the reason they’re able to do that, the reason why Charmin can outspend you is that their customer lifecycle is 10 years.  And yours is immediate.  And it’s really hard to win a game when you’re thinking about the short-term profits.  So this is the same shift that Amazon sellers have to make, just in the macro as a whole.  They have to pivot from thinking about selling products to building real businesses.  I don’t even necessarily recommend that people manage their own Amazon presence.  There are now agencies that will do that for the cost of an employee.  So you can have the best people in the world.

The cost of you as the entrepreneur spending time in the weeds doing Amazon pay-per-click is much higher than just hiring somebody to do it.  Because your job as an entrepreneur is to set the overall vision of the company, to be a leader in the company, and to go get talent.  To be around people that can build the vision of the company, that’s your job.  So, you managing Amazon pay-per-click and doing all this stuff, is a waste of your time.  And there are people out there who can do it better than you and already know-how.  And that’s building a business.  Your job is to define what the vision is, what the product suite is, how you’re making a difference in the world, meaning why your products matter.  And you use advertising as a way to amplify that, not as a way to trade quarters for dollars, in the short term.  And sometimes that happens, like sometimes, you can make money by advertising in one place and having the delta, be profitable on those ads.  Sometimes that happens.  But the real overall long-term profits come when you turn those customers into repeat customers and they stick with you for the long-term.  So you have a business that you can sell for millions of dollars, that’s where the money is, that’s where the opportunity is.  Because when there’s a white space in Amazon pay-per-click or Instagram ads or whatever it is, you should go all-in on that thing.  Like you should absolutely pursue that white space.  But other people will eventually crowd that space, but you continue to win when you can afford to pay the most to acquire that customer.  Because you know that their experience is so dialed in.  They’re going to stick with you for the long-term.  And you only do that when you are focused on building a business that you like, one that you want to scale, and one that has real potential in the world.  Too many people are trying to find the hack and the way to make money, rather than building a real business.  And if you can’t identify what the real business is you are always going to be playing from behind.

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