All language subtitles for 16. Think of Amazon Like Real Estate

Imagine if you would have gone and bought beachfront property in Manhattan or the Hamptons back when
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it was really cheap.
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It's essentially what the equivalent of getting all of the real estate that exists on Amazon.
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So in this video.
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I want to tell you guys how I think about Amazon in these search results as real estate.
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Now it's not as stable where you get to just buy it and keep the deed and nobody else can take it from
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you but there's ways that you can protect it.
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And as long as you've got that spot and you do your work to make sure that you maintain it, it'll keep
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paying you dividends just like all of that other real estate and will continue to appreciate.
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OK.
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So the first concept is essentially let's say we were gonna have a brick and mortar store.
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The most important to the thing to them and actually the most valuable asset is is not necessarily the
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brand or their store.
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It was their real estate.
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Where are the customers coming through.
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Companies actually went bankrupt think of Sears or what not, but the most valuable asset they had left
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at the end was their prime retail locations.
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So but things work a little bit differently on Amazon and you see it's not like there's just putting
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your product in the right spot in one spot.
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There's potentially two hundred paths that people come in to see your product.
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So we know that 50 percent of product searches in the world start at the Amazon search bar.
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OK.
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So essentially now everybody's gonna be typing in keywords and your goal is to find as many of those
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keywords and they become relevant in the best product for those that you actually get a good market
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fit for.
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And then if you optimize and you run your PPC and you do all the other things that you can do to get
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the most sales through those and optimize for those you're going to get a foothold and essentially grab
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some of the most valuable real estate that exists in the digital world.
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Now it's not the physical world but as we go in more and more everybody gonna be looking digitally and
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with the way that the algorithms work they look at buckets.
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So 30 days 14 days seven days 90 days it's always changing.
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I don't know them exactly but I know that the longer term buckets do have relevance because I've seen
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products at the end of their product lifecycle whose price will triple and their conversions will kill
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but they'll still be ranking for a lot of these keywords because they have this built in an ingrained
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thing.
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So I mean if these long discontinued products are able to sell and continue to rank if you so if you
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keep yours up to date and keep all of your customers happy and keep enhancing it you're going to be
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able to keep your ranking and then grab some of this digital real estate.
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Now why is it important to grab all this.
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Well because it's going to increase over time.
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OK.
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So eventually so everybody right now has been benefiting from the fact that it's a rising sea.
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OK.
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There's always more and more Amazon customers coming on.
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But what happens when there's a day that there's none.
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OK you know just like in America back in the days there was always people going out west so you could
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keep getting real estate and land and it was cheap.
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But eventually there's nothing like everybody's on it.
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OK.
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So that's why it's still in this golden era because there's just this never and ending land of creating
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new markets as well as new customers.
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So that's where this is the golden arrow right now.
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Now here's the thing.
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So right now there's literally just more and more real estate being made because of expanding customers.
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But there's always going to be new real estate mean made because there's new markets.
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So that's where there will always be opportunity but the opportunity won't be as great as several years
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out as the whole world becomes more.
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But I mean we still got maybe five years until that happens so I believe at least for the next two years
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I don't see any downside there's gonna be a rising sea for everybody as well as new markets being made.
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So this is just a huge disruption but as it goes on eventually tops out.
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And guess what then.
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The only thing is people are willing to spend more and more until eventually margins become zero.
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But we're still in that opportunity where people you know they could make more money doing something
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else so 30 percent are a lie.
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I don't want to do that but somebody else will take it.
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So or work harder so we're in this golden era where this real estate you could still go grab it.
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But if you hold onto it and make something great for that real estate it's gonna be it's going to appreciate
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and pay dividends.
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So you do everything right.
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You could sell it keep their make money at the same time and that's what I think is valuable about this.
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The most undervalued real estate except maybe parts of social media and getting people's attention and
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respect on there that's that's a real estate game too.
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All in itself.
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So but I hope that you guys kind of think about this more of the you know just think about the long
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term value not short term of oh I broke even that didn't make any money.
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Well you've gotten you've gotten your way to building up those keyword ranking and if you had a good
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product you know selling at break even break even and then eventually you raise it and you're starting
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to make money and then great.
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Now you've you've built up all these valuable assets and made money so people will lose money or go
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cash flow negative on houses because they know that they're getting appreciation and paying down that
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mortgage.
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Now maybe there is actually money coming out of their pocket the whole time but they know at the end
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of the day they're gonna be ahead you know two three years out for now.
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So this is probably the best business opportunity where you can grow your money go and ask any real
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estate investor if you could make 400 percent rely on your money in a year if they would do it consistently.
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They would love that.
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They make like 10 15 percent a year and they're happy with that.
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So know there's other ways that they make money with debt and leveraging so they can make more cash
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and cash value.
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But we're not going to go into that the end of the day as this is very undervalued real estate.
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And don't don't discount it and don't be afraid that it's going to go away but it will go away eventually
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or just become more.
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It'll be it'll become fairly priced.
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OK.
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Right now it is so underpriced and that's why you could put in the work and go grab some of it and eventually
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somebody else will realize that or you'll just make the dividends from it while it's underpriced.
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So just for an example if you think about the real estate charge so if it's a very profitable market
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and there's going to be consistent demand for a long time eventually everybody realizes the true value
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of it and they keep like a bigger investor will come in and be willing to pay more for it because if
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it yields dividends and appreciates over time then what a better investment to put your time into.
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So this is why brands are going to be bought out for large amounts in the future and people are going
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to be willing to lose more to get these spots because these spots for certain keywords in markets are
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worth so much.
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So I mean here's just a chart of Seattle real estate over time now.
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I do think it is a quite an unsustainable graph.
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But guess what.
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There's a constant demand from high paid tech individuals in the Seattle area and there's only so much
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land.
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OK.
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So you know is eventually the land stops expanding and then if there's that demand there and it's valuable
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then the price keeps going up.
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So as long as there's money to be made in a market the top spots are going to be worth a lot because
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it just goes to show.
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So essentially you can imagine this will be the price to pay for the first spot on a on a search result
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as time goes on with PPC bids and everything as the true value becomes determined.
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If we could go back now essentially the same thing has existed in the San Francisco area for housing.
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You know it's just you know it went up it goes up and down but there's just a constant.
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It's valuable and there's only so much of it.
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So I mean obviously these people need it for different reasons than this digital real estate but I'm
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trying to just get across the point that there's only so much of this.
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And if it is a profitable niche in bigger pockets come in over time and are willing to spend because
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they know it's valuable and it's limited.
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So go in there and try to grab land before it gets expensive and each market is different.
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Just like the housing market.
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But your goal is to find maybe the new and upcoming ones in the housing you know like there's new and
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upcoming areas and housing where demand is change like Denver recently that whole area.
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So you could go and then find the new markets and go grab that real estate Well it's cheap and then
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get that appreciation and the dividends that it pays.
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So all right.
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So one other key concept to think about on Amazon is that while you could get one piece of property
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like let's say you were at the Mall of America or you know in a place that you thought was going to
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be appreciating over time you want to grab as much of that real estate as possible.
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Now this is what all the biggest brands in the world to do.
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So if we look at Facebook you know they just started out as Facebook but then they realized Instagram
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was coming and they were in the real estate of digital attention which is a very valuable asset.
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So they bought up Instagram for one billion maybe two billion dollars.
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And at the time a lot of people thought they were crazy.
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But then what maybe two years later they bought WhatsApp for 18 billion dollars.
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You know I still really don't understand how they monetize WhatsApp but that's a whole nother discussion.
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This is what the biggest brands will do.
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So in the group of people that are consuming social media they are trying to grab all of that attention
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so that you know if they want to go on Facebook and connect with people they can get them or if they're
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getting people that are doing more pictures and videos they'll be on Instagram and you'll see that Instagram
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just edit the SCRAM TV to try to grab the long form video format and then WhatsApp of course and messaging.
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So they want to control that whole area.
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Now Coca-Cola does this also.
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So most people think they have coke but they also have water brands just designing I think.
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Don't hold me accountable to that.
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But then they have monster they have sprite they have so many more I even was even reading it.
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I think they Bacardi too.
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So they're literally getting the whole drink market.
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So what you can do though so essentially you want to grab as much of this real estate as possible so
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maybe because there's obviously different niches within each individual market.
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But if you grab as much of that it is possible you can really establish yourself as a valuable brand
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and I guess the best example of this is gonna be anchor.
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So let's go and I'll just show you how much of that real estate they've grabbed.
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All right.
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So when we look at anchor.
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They originally started out in about 2012 as just a replacement laptop battery.
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So they started to go into the whole charging niche over time.
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So I mean if we even really we look up now they have the apple cell phone chargers.
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So they are on here but they don't just have one.
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So let's see how many times anchor shows up here.
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So they have the top one there looks like they don't have any more there but if you've got a power bank
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they just took over the power bank market and they're the one that I trust the most.
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But essentially there's people who are looking for more hard core within this niche but then there's
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also people want more portable one that still is is a pretty good quality brand so that there's still
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those people who want a more economic smaller one within the niche.
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So if you just look at how many anchor is ranking four on this page there one two three four.
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So you know they're good even the super small so they're just taking up literally as much real estate
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as possible to establish themselves as the brand leader and to serve the whole market and make the most
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out of it.
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So you definitely want to be taking over your nation.
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This is what I did with the solar eclipse I took over forty four different skews I took every person
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into account the professional photographer I took it also took into account big groups like schools
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and governments and then also was taking care of those individuals who wanted the highest quality product
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also people looking at telescopes.
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So I took over the entire niche.
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Now was I the highest seller on any individual Aizen.
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No I wasn't.
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But I had the widest reach.
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And by doing that I didn't need to be the best seller because I was just all over the place.
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And while there were there was one guy who just crush it having the top ace and I found success by just
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serving everybody.
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So you know one SKU is not going to serve everybody in a market unless it's a very very specific market.
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But yeah so there's always room to serve everybody out.
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So as you go on time try to grab as much real estate as possible because if you eat I bet even if we're
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going to anchor here Now look there's not only that but then they can up sell their other stuff like
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their other cords and their other cases and then they will also have who who bought this also bought
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others.
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So there's other anchor products and then you will also get the ability to cross promote your other
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products here and then you can also do comparison once you get brand registry.
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So you're just getting so much real estate because somebody might click on Here's my guy.
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I want a smaller one but now they'll see oh well you anchor does have other options.
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And so by grabbing as much of the market as possible you are getting as many impressions and potential
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buyers as possible so go out there and grab some of this real estate while it's cheap.
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Now I don't suggest you try to go grab that power bank market because it's already been taken but find
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your place where you can grab some real estate before it gets too expensive.