Our guest on the 20th of January, 2020, on the sellerboard show was Tomer Rabinovich, a successful Private Label seller, speaker and coach.
Tomer shared his perspective on picking the right product for amazon FBA.
Watch the full video here: https://www.youtube.com/watch?v=NILVsPzE1Rk&t=14s
Speaker: Everybody welcome to the sellerboard show, my name is Vladi Gordon today I have Tomer Rabinovich with me and we talked about Product selection, so Tomer is a successful private label seller who runs some coaching some masterminds in down basically we took a deep dive in this topic of product selection which is kind of a static topic but I promise you you’re gonna learn some new things today so some really interesting criteria and basically thinking about the bulking of your products.
Speaker: This is going to be interesting for experience sellers I’m sure but also for new sellers are we also discussed things like how much capital you need to launch and how much magic is involved which everybody can repeat or is it just magic and risk so make sure you’re you click the like button the selected content and if you have any questions to ourselves or to Tomer, then go ahead and post them in the comments.
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Speaker 1: Maybe maybe can introduce yourself shortly liketo how did you find your way into this in the world.
Speaker 0: Yes hi good to be here yes I actually came into this completely by accident sorry this is my first real business I was just graduating from college in Israel the start calls related causes serving the army for three years it’s mandatory didn’t start Collins I didn’t want to travel in the circles are twenty three twenty four.
Speaker 0: And went off to college I was certain danger my first day job working for this government job you can call it that helps small businesses to grow into the same time I look for something else to do because I was working nine to five and held all this free time after five PM yeah that was.
Speaker 0: Yeah that’s right.
Speaker 0: And then I saw Robin advertising and I was of course for the first time so I signed up to that and you know look back since that was in twenty fourteen and in the courts.
Speaker 1: I didn’t know he was doing Amazon the courses I know he’s a. He wasn’t he was promoting, I am missing something missing course.
Speaker 0: It started everything yeah back then.
Speaker 1: In this like what would you say like wasn’t a good decision to buy the course or can can you learn it yourself.
Speaker 0: I think in twenty fourteen it was very difficult to learn by yourselves I don’t think there was that much.
Speaker 0: There I honestly have no idea how to start today even though I was just starting out because I think there is so much content out there and they don’t know how they did everything is else looking over the best courses are today.
Speaker 0: But yeah I would just say go for recommendations or people that you trust and just.
Speaker 0: Starting that way and. Getting there from them what’s best.
Speaker 1: Right so tell us what you’re you’re selling yourself right.
Speaker 1: In the area also the coaching since teaching people.
Speaker 0: Yes so I’ve been started I started coaching maybe a year and a half ago it started all while I was in were many and you’ve been with a friend of mine from the culture of achievement in school and we know what we told the people that the best thing they can do for their business is to have a small masterminds to creates almost runs for them.
Speaker 0: But then we decided that they should have a cold sweat dust must remain and that’s kind of how it all came together and now we do coaching or maybe for bigger sellers but it’s like a four month process and.
Speaker 0: The older the products on the first call so it’s an actual Muslim yes we talk about things like you know deliver content every call it’s a very intense for months together.
Speaker 1: Will earn less I would like to learn some of your secrets today maybe not all but let’s let’s talk about product launch.
Speaker 1: And and maybe even before the product product selection right so what would you say like we’re an unknown December of twenty nineteen.
Speaker 1: I when I was telling myself like this was like four years ago five years ago R. five.
Speaker 1: Like the criteria where cave because small product which fits in the shoe box and which is the electronics and then.
Speaker 1: I’m more or less you’re good to go right.
Speaker 1: Can you can you talk about the secretary at the day’s work what should look for.
Speaker 0: Yes so I think if you find the winning a product that will call it kind of you know what people describe he said like a live product easy to launch one piece.
Speaker 0: Small and so on if you find other products those product obviously exist if you find such a product it will probably be saturated the very fast.
Speaker 0: My way of thinking was always against everyone else so if everyone is doing one thing I should do another thing when it comes to product selection sold these days we basically do the meetings so let me kind of elaborate on each of them.
Speaker 0: So the first thing I called it like the criteria so everyone have their own great TV like this number would you use this number of this type will be a star of this range of prices or things like that right that’s right yeah everyone has the courses have.
Speaker 0: This is great as in the software is recommended from great yours the way we do it is I I would say that I always look for if there is room to go into a certain market.
Speaker 0: So don’t wait to know that let me ask you this so let’s say there are there are I little ten pizza places okay and the same similar location ten pizza places all are doing amazingly well okay opens up places are killing it you see lines outside of old pizza places should you open another pizza place in that specific area using.
Speaker 1: Well my first like intuition will be probably no.
Speaker 0: Because there are many ten pizza places.
Speaker 0: When you know but I don’t care if it’s one ten or a hundred as long as all of them are doing well there is still room to going to the market.
Speaker 0: So if on the other hand let’s say there are ten people places but the last three that opens are not doing well at all let’s see the oldest one or the oldest two are not doing well anymore they used to but they’re not so that means it’s already saturated and you don’t really want to go into the market well so the first thing we do when we look for new products we look to see how easy it is to get into the park and the great zero we have for that is less than a hundred reviews over a hundred days and.
Speaker 0: And the revenue needs to be over two thousand dollars per month.
Speaker 1: Okay can I ask Congress you said less than a hundred reviews under a hundred I’m not a hundred.
Speaker 0: Over a hundred days in over two thousand dollars per month the reason they are you want to see that if those if those three things happen with at least two FBA products when I do the research that means that whenever we launch this product since they are over three months old right that means they are selling organically.
Speaker 0: All the I can checking people out of town or something you seem to be a sort of steady and if it is study done I know they are not in the launch was anymore they’re actually making organic sales some Organix.
Speaker 0: Yes they were anything but for me to go into the market is pretty easy it’s not going to be difficult and for me that’s just my grin to me you can save for you you you’ll feel comfortable with.
Speaker 1: If you or someone else will feel comfortable with two hundred reviews or less it just depends on you.
Speaker 0: Let’s look at what I’m trying to say is you need to have a great yeah you do have two different criterias one is when you go into that market and that’s when I look for those two sellers but my goal of this is not to make two thousand dollars a month with the products the goal is to make a lot more.
Speaker 0: So the second grade we have here is is kind of similar so it’s basically over sorry so it’s less than three hundred fifty rupees per month.
Speaker 0: Still over a hundred days over three months old and over ten thousand dollars in sales from.
Speaker 0: Because doctors going to give me again dot I mean if I find two more sellers like that if they find the games for sellers total to forty first with you and to for the second.
Speaker 0: That means that they can launch a product is only and I can still have room to grow.
Speaker 0: Until recently it might take you a few months or something but they can still reach the point of tension and not something that a lot of people forget a lot of sos forget to specially bigger sellers is that they still look for those low hanging fruit products but if they have the capital if they can afford to pay a bit more you need to remember that launching product A. or product B. is going to take the exact same efforts in development and be judging keyword research and you can see everything is going to be the same except for how much time and money you invest in that and then some we have lunches were invested twenty thousand thirty thousand fifty thousand dollars on a launch just on the first inventory because we prefer doing that instead of doing five small launches the low hanging fruit because it’s going to be much less efforts yeah one big one tonight this is what I recommend for sellers doing over a billion a year to go after.
Speaker 0: Bigger like like not bigger products like physically but just deeper markets and where you can really have like like again ten pizza places all are doing well you should definitely go in as well and still you are.
Speaker 0: I’ll be rechecked obviously looking to make its reviews improve everything making sure make a difference and saw.
Speaker 1: Let me reiterate this just make sure I got it correctly and we have some you know some beginners as well in the audience so in case you didn’t catch this so here’s what I understood from from door sports first look for products with less than one hundred years ago for small small portion but over one hundred days old right so this means that the product is no longer like launching is no longer promoting in the promotion faced this guy’s really selling organically and I mean there’s still a chance that they launched and they were not successful they’re selling off all right but I guess that we will need to.
Speaker 0: Find out that’s what you’re looking for at least two you can also decide to look for these floor if you want again it’s up to your own criteria but we look for at least two and it’s usually enough when we kind of know what to see if it’s actually organic or not we have an awful experience right now.
Speaker 1: Okay so if you find like in a specific needs let’s say like a little jump ropes were always so they can double jump rope what is over over situation of course but let’s say specific doctoral for dogs this.
Speaker 0: Okay.
Speaker 1: I don’t know if it even exists but also if we find like at least two sellers there with these criteria that we kind of know okay they’re selling organically their bowls all of this you’re doing okay we see the revenue and obvious your views right we see that there’s some stuff going on so your hypothesis is okay we’re gonna do well as well.
Speaker 0: Yeah I mean especially if we can do better than that right if I can have a better product video listing similar price point the competitive with the price.
Speaker 0: I can probably do better than they can so what we look for again Israel to going to the market now I don’t really care if I see someone with two thousand views or ten thousand reviews in the same beach because all I’m looking for is is there still room to go in.
Speaker 1: Well.
Speaker 0: I don’t care about those huge salaries actually I actually like having them in most cases because if I can get one percent two percent from their sales moving forward then great right now I just use the pines bigger for all of us yeah if they’re only low hanging gun sellers like only doing like ten K. eight K. seventy five K. how big can my product get home instills gonna get that small.
Speaker 1: Little.
Speaker 0: Difficult very be fine with a lot of big sellers and also the launching products easily and getting like two two K. ten K. fifty eight a month and that’s a very good market they want to be.
Speaker 1: Well okay very cool so look I’m I have a question about this big seller so I know there’s an example in Indy in Germany probably in in the address is the same but it’s like an HDMI cable right that’s a product which is I was shopping one for myself and the name you know when when you’re when you have experience in selling on Amazon you never bio numbers in the same way.
Speaker 0: Again.
Speaker 1: You know so I immediately spot those private label sellers and everything so I thought if you my cable like first guy we need huge amount of reviews a very low price probably like listing which makes it five five five digit income per month for sure.
Speaker 1: But my question is would you go into such a niche so that’s a big seller like you said well the good thing a good.
Speaker 0: Yes well the second thing you need to look at so there are two great TVS but then that’s like again taking you back to the pizza place and so I need to check if you saturate the wait to see if he exaggerated news to look if you see anyone with like let’s say hundreds or thousands of years was doing well before again you can check you or you intend for the be a star see if they need well before like a few months ago and if there are still selling it now so if there is someone with like a thousand using only two thousand dollars per month has four point five stars or higher level.
Speaker 0: And they have a good listing and everything is fine then it’s probably saturated by.
Speaker 1: Little.
Speaker 0: Like even if like new competitors coming those are probably very savvy sellers that are just manipulating the systems all the time and just launching new products all the time so yeah I’m kind of avoid those products we don’t want to go into a saturated market then usually that’s kind of how you can spot it immediately.
Speaker 1: We’ll.
Speaker 0: Just missing a lot of reviews good listings are not doing a lot of.
Speaker 0: God is the one that looked toward bigger sellers like they’ll start making a million a million a year or more what I recommend to them instead of the I call these two K. ten K. like the arguments that you can in that case so I would recommend skipping the two okay because they can probably do you know how to get reviews that can be more aggressive with their launch and then they can just go for the ten K. and then sixty K. so the way we do product research these days is we look for products that we can grow up to fifty K..
Speaker 0: With time it’s gonna take time you don’t let’s not many products for your anymore what we want to get to fifty K. with each of our products long term including variations including everything Bucks fifty K. at least three months that’s our goal.
Speaker 1: Well.
Speaker 0: Because again that’s going to take the same efforts to launch such a product yes it’s gonna be like a five K. products so we’ve got to put our money here instead of there and he just I know before launching one cut it like these I like this one instead of launching like ten out of products that are gonna take again ten times more the effort yeah what.
Speaker 1: Makes sense okay so tell me like suppose we we have this mathematical criteria right so basically it’s it’s analytics, BSR. a start number of reviews agents the listing.
Speaker 0: Sorry one thing I don’t look at BSR are you only look at revenue because if you look at the B. S. are you gonna be seldom more expensive products.
Speaker 0: Because of more expensive products consultants list.
Speaker 0: And be much higher price items so you’re gonna miss out on those so I don’t care about revenue and once we find the product is ready and then we’ll want to suppliers and sexually profitable and we also like really cheap products we have parents willing for eight nine ten dollars and they are doing amazingly well.
Speaker 0: And have a great R. O. Y. and those two products usually have a much higher are wide and yet it.
Speaker 0: That’s why I’m saying go like against everyone else.
Speaker 0: When I see a point in this requires FBA requires approvals required documentations everything I love those products because no one else is gonna do work there she wants to so I have no problem with any product as long as they see those F. B. cells and it was locked I know it’s possible to do as well so I can just go out three.
Speaker 1: Okay so so let’s formalize maybe couple of criteria one thing he said as many approvals as possible.
Speaker 1: Okay okay I mean I take this then cheap products I also find it interesting in my own experience I was actually never able to sell expensive products like …which cheap but.
Speaker 0: Some mix but yeah I mean the child when they are invented yeah.
Speaker 1: Okay so tell us what else like is there anything any need just you need to look for or like the product itself maybe some receipts what.
Speaker 0: One more thing I will mention is about conversion rate overall so for those that are beginners during the recessions and there is convergence sessions basically clicks on your products from like the search results and conversion is when they actually purchase the products.
Speaker 1: Well.
Speaker 0: When you go for products always think about the conversion making to the house so if you go to the Amazon dot com right now when you will check diaper bags for example you will probably send me in my criteria we’re going to K. ten case will probably fit best with you in a lot of people keep once you’ve got your bags on sale.
Speaker 1: Well.
Speaker 0: The reason they all fail is because of the C. span B. B. C. span on that product is insane because the conversion rate is very very low when you think about conversion we think if the maintenance price and reviews is enough to make a decision.
Speaker 1: Well.
Speaker 0: In diaper bags when mom shops or like a new one suspect everybody else is gonna open twenty listings and not by any of with most chances right.
Speaker 0: So to make a decision takes a long time.
Speaker 1: What does.
Speaker 0: The product because of the different variations different pockets different sizes different styles designs everything so we stay away and also different price points you can have a better back for twenty thousand four hundred dollars so it’s just a big variety of items and we kind of stand away from those products.
Speaker 0: So if it has like a very if we think it’s going to have a common sense of very low conversion rate in the variety of prices we usually stand away from those products.
Speaker 1: Well let me make sure I understand so basically are saying like I think it’s a very interesting what you what you missed a step main image pricing reviews of these three things is it enough to make it to the buying decision so when I think about myself like if I want to buy batteries for example right.
Speaker 0: More.
Speaker 1: Like a remote control.
Speaker 0: Yeah.
Speaker 1: I guess image pricing reviews and for sure enough I won’t even.
Speaker 0: Click right.
Speaker 1: I just don’t even listing basically.
Speaker 0: Yeah that’s what you products have a very high conversion rate because if it’s like ten dollars or less do you think you will open is probably what you’re going to buy.
Speaker 0: But you gonna look between date between the first probably on the first page and that’s going to be enough for you now the Adam Bartlett the second page but if you’re buying a laptop for example. Like a remote control.
Speaker 0: Yeah.
Speaker 1: I guess image pricing reviews and for sure enough I won’t even.
Speaker 0: Click right.
Speaker 1: I just don’t even listing basically.
Speaker 0: Yeah that’s what you products have a very high conversion rate because if it’s like ten dollars or less do you think you will open is probably what you’re going to buy.
Speaker 0: But you gonna look between date between the first probably on the first page and that’s going to be enough for you now the Adam Bartlett the second page but if you’re buying a laptop for example.
Speaker 0: An expensive item right Denny’s makes sense to do a deeper research to open the Google and research some more that makes sense and probably not on your mobile island just because you’re in there you want to look up into her research so I either go for a cheap product with a very high conversion including batteries or go for inexpensive product like fifty dollars sixty dollars seventy dollars with a low to medium conversion rate
Speaker 1: Okay and that the only makes sense that someone is shopping for a back door for a fashion item they want like research a lot right.
Speaker 1: So I totally understand it like easy things like batteries or other non.
Speaker 1: Well jump jump rope with I would say probably average but how do you actually estimate this commercial because you don’t know all right you can don’t you.
Speaker 0: Know but again it’s it’s just it’s more common sense than anything else.
Speaker 0: But again cheap products most cases that will have high conversion rates if you sell bracelets or something then maybe not right-like girls stuff.
[00:00:00] But in most cases, yes, it’s done. It’s going to work. And if you sílych I mean, most sellers, I assume, sell between $15 to thirty five dollars, I would say, wait, that’s like most private label sellers. Those are OK. But please do not sell products like Deiter bags because you’re just going to fail with those products is going to be very, very difficult. I mean, everything anything is possible. But why focus on such a product when there are so many products out there, folks? Yeah. So that’s like the first thing we look for, which is the criterias now. The example I wanted to give is with a yoga ball. OK. Let’s say I sell a yoga ball. Let’s say that’s about product they chose. Let’s say I launched it four years ago and it’s doing great. OK. These days you on onto your level. Now, let’s say it’s great and everything is fine. They have thousands of reviews and everything. Now, the second product people say, OK, I have a yoga ball, I’m going to do a yoga brand and I’m going to launch more yoga products. That’s like what they think in their heads. Now, that’s fine. You can launch a yoga mat tomorrow if you want, but the way we do it is we do something we call more of the same.
So we don’t want to work that hard. So we are just going to launch more and more yoga balls as much as we can. As long as it makes sense for us. We’re going to do more research on the competitors and everything to see what they sell and what’s going well, which colors with sizes, which material and everything. And we can have 10 different yoga balls in our catalog with variations for each of them. Well, that makes sense for our brand. Now, you don’t really expand your brand that way because the customer is only going to buy once from you. You are not going to buy 10 year olds. But you know the key. You know the PPC. You know the images kind of style and everything. So it’s going to be very easy for you and probably the same supplier for everything. So it’s going to be very easy to just multiply that product a few times. And a lot of times you will just sell a lot more. That’s all we can get 50 K with every product we launch and we look at everything. Look, what if this goes well? What can we do after that? Yeah, that’s kind of what we look for.
See, I like the deal. Aim for for for basically taking multiple spots on the first search results page with your products like that.
Yeah. So when it comes to variations or not variations, obviously variations help with the reviews counted together. And if it split the house with the real estate on the first page of search results. So the way we do it is if the launch was very, very easy, liquidity to invest a lot of effort in the launch, just the three of you is selling organically. We’ll probably open a new listing when creating that variation. And you’re listening for that new product. But if it was more difficult, if it’s a competitive product or if all of the competitors have a lot of colors like yogurt bowls, for example, we will have a lot of colors as well. And sometimes we’ve been launched that way. We even launched with multiple variations because we know it’s going to be physical. Second look.
So. Yeah. So that’s the second thing that we just do a lot of more of the same on the same product and just launch it in different ways. And at the same time you can still do research for a new product, obviously in everything. But if you have a good selling products right now, like doing 10k or more, and that’s the only product you have that is similar. I would bet with you it can double or triple your revenue in a few months. And just by doing that makes sense.
Yeah, shirks. I know some people, like a lot of guys, obviously want to develop their brand. Right. And you want it’s kind of ethical. It’s nice if you have a lot of products that fit together. But I think what you’re saying makes a lot of sense from the numbers. It’s killing you. Absolutely. Okay.
Anything else? Yeah. So is the last the last thing we do is we basically launch, like you said, jump rope for dogs, for example. So the example I wanted to give with this is yoga ball for pregnant women. Okay. Okay. So you go for it. So a lot of pregnant women apparently use yoga balls like close to the birth and everything helps with. I don’t know what exact moment. If you type in yoga balls or one out on Amazon, you’re gonna see a few results. So it’s not going to fit my criteria. But if you go to. So the way we’d find these submissions is we go. Let’s say you always solely on the ball. You want to find some submissions for you. You go to brand analytics and then you just type in yoga bowl there and you will see yoga both for kids, a global footprint for yoga balls or whatever. And that’s going to help you find some niches in your main products where you can also do it the opposite way. If your target audience is pregnant women or maternity or whatever, you could just take those keywords in it. You will find yoga ball for pregnant. Yeah, you can do one or the other. Usually when we look at the brand, we look at a target audience like pregnant women, for example. So another cellular balls for kids, then you’re the balls for credibility. It does make a lot of sense.
So you just usually have like one target audience. So if you type in Digable for pregnant women right now, I think it’s like 50 or 60 is also going to see a product selling for $40 or 0 while all the other yoga mats, yoga balls are selling for nine $10. And it’s all the same. It’s the same thing. All they did is they give like in like a booklet explaining the different activities you can do with the yoga, both for these women and also the groups non-slip socks with the other ball. So the mall will not slip and fall secure on the mall and are doing the 10k a month with the 100 reviews. So that is just one example of of what you can do. So when we see something that and we see that exists on Amazon, we can obviously launch the same thing. But what they like to do the most is going after such a product when no one is doing that. When I see some search volume, it’s very hard to judge how much search with when we see multiple keywords, our big search for. And people are just buying random yoga balls. Right. Most people are just going to buy. Most women will just buy random yoga ball. Yeah, but if you use something that all of their images of the list thing is just great. Women all over the place. She’s probably going to buy that one.
Like it’s a risk as well. Right. Because. OK. I mean, if you have some competitors already and you see you can estimate how much they’re selling, then we can kind of validate your idea. Right.
But if there is, it’s obviously a risk. But there are a few good things. So, first of all, no changes are going to go after you. Well, because you’re not really doing a lot of branding and things like that. And the preferred targeting everyone really just launching Migaloo balls. And the second thing, you can get a very high profits because you can just sell more expensive than anyone else. And people are still going to buy yours. And conversion rate is going to be insane because again, if you type that Q8 into Amazon right now, when you will see that product, you will know what I’m talking about. And women who will click on it are very likely to buy. So all of a sudden, reviews, image and price are enough to make a decision for a 40 dollar product. So imagine what happens to conversion rates with those second products. So we really like doing that branding thing for very competitive products like yoga balls.
Very cool. OK. That’s that. There are some golden nuggets in this discussion.
Look, I have a couple of questions. So maybe first one we discussed kind of like the criteria for picking the product.
But obviously you need to find a good supplier source the product, well and so on. So is there anything specific you’re looking for in your suppliers or as a whole?
Obviously, we just we just use only Bobba for most things about to have some switching agents. We work with. But one tip I can give you with finding new products. So, you know, you go all over all the negative reviews. Right. And you just summarize them in everything. So when we contact suppliers, we tell them, look, these are all of the defects with the samples we got so far and we didn’t order any samples. We just tell them, based on Keurig, this ritzier, this link. And then they just said, ask them, can you help us? Is your product better or whatever? And then we just tried to kind of work it out with them that way.
That’s amazing. So, guys, go ahead and read your competitors reviews, make a list of all the problems and send this list.
Their supplier is like problem list from your previous previous Ferntree Reassembles. That’s that’s amazing. First of all, they feel like you’re serious. And second, you’re probably going to get a better product or at least sort out the bet, better player, easier. OK, so tell tell me. Like in general, there are some voices to the. Amazon is oversaturated. Then if a mobile is dying, is it even worth or is it realistic to start a business in 2020, a business on Amazon or is it too late?
So it’s definitely not too late. I mean, I think like when I started, people told me it’s too late. And that was four years ago. Like years ago. And I’m sure it’s going to happen five years from now as well.
The people that are not selling like or weren’t successful saying it’s too late. So people are always going to say that. And that’s true for aging. What they will say is that you have to treat this like a real business. Well, so I don’t recommend going into Amazon unless this is your end goal or if you want to make a quick exit and sell your business or something. But if you love your day job, don’t quit your day job. I mean, my goal with this and my goal always was to build a boost, to build a business of some sort. I didn’t really know what I wanted, but I’m very happy to stumble into Amazon because I think it’s the perfect business to have law myself. I like working from home. I like traveling. I like I speak a lot of events. I have a lot of fun. Met a lot of. I have a lot of really good friends who are Amazon sellers. And they got a lot. So. For me, it fits. But just know, like at the end of the day, this business is you sitting with your laptop and worrying. Well, that’s the business. And no one is gonna do it for you. And I was going to hold your hand. So the best thing I can offer is look for people that are at the same level that you are and build a small musclemen between you guys and just help each other to grow and be open with everything, your products and everything. And just. And that’s kind of how I do the coaching. But it started by offering people to do masterminds. And that’s what’s really helped them scale because you don’t have to do it alone.
Ok. One more question, and it was very relevant for me personally.
So, you know, I have launched a couple of products that were not successful in my Siller career. Like, basically what happens is you do your research and kind of have a feeling that everything is OK and then you find a supplier and you find a good price, right.
And then you kind of take care of all the problems in packaging and, you know, different defects and you feel like the reviews are going to be good. Then you go to the online and you do all the steps that basically are well known, help to earn initial reviews and you know, how to set up PPC and then the product is just not working.
So basically you’re sending spending too much on PPC and it doesn’t stick organically. So my question is how much magic is involved into this? Is it just all right? Because I’ve done something wrong at a certain step.
I made a mistake. First of all, it’s experience. And I what I will say is that you can’t expect to nail your first product. So you need to look at the first and will even say a second product as a learning curve and you can’t expect them to make you a millionaire. Basically, it takes time and you need to look at that. Like your tuition, right? Like that investment that you put into those two products. But I’ve never seen anyone filled with products one after the other. Well, I’ve never seen that happening. So keep going and keep pushing and lunch up to at least three products, not to the same time, obviously, but just keep going and launching launching products.
And what I will say to what you said. So you need to remember that research research funding product is not adequate. As I mentioned, research including. That’s the first step. Second step is suppliers. Third step is getting samples in volume, validating those samples. Once you body the department said, yeah, I have a good product in my hand right now. Only when you pay your supplier the deposit 30 percent of whatever you pay them, that’s when you make the decision. So just before you make that decision, go back to your criteria’s check that everything is still valid. Look at all the competitors came in the market. That is when you really make your decision. I don’t want to. I’m sure you have a lot of samples lying around in your house right now that you got from products you never launched or every once. And that’s true for any soldier I know. So that’s OK. That’s part of the research. We have products that we say, OK, we see the market, we see some new sales are coming again. So maybe we will wait and we’ll wait a month. We wait two months to see what’s going on with them, to see if they are able to sell, if they are making money, and then we’ll start production. We are not rushing anything. They’re not going anywhere. So if and if it makes sense to us, we’re gonna launch a product. And today we also filled with products. That’s fine. We fill out one out of five, one out of six, seven products we sell. I say fill. That just means we don’t bring the second inventory in. Well, we might break keep it.
We might lose the bid and whites win a bit of money, but we don’t bring the second inventory in. And that’s, I can say, true for all the sellers I know. And again, you need to this is a real business and it takes. You need to have a tough skin rates to do business in. Yeah. Yeah. thick-skinned safe.
Okay. I know this in German. It kind of matches. So I think.
Yeah, I think you’re right. And by the way, I said they never saw a seller who launched three products in a row and failed.
So you see one. That’s me. I told you I was never like super successful, but I think I had like a dozen of ice cubes in my best times.
But I did have a period where I, like, launched maybe three, maybe one, four products and they all fail nobody.
What I mean is that at the beginning, you will have some success with this. For sure. Yeah. Think miserably with all of them and not selling anything. So now you need motivation to go.
So my first one was so successful that basically it kept me going for it for a long time. Yeah. Yeah. Okay, cool. So look. Last question would be for for beginners like. If somebody wants to start a business, basically a very easy question, how much money do you need realistically to like to start small?
So I think it really depends on your goals and everything and also like on the marketplace you’re going to launch on. I saw one only only in the US and that was it’s very competitive with time and you will need more capital probably. But if you launch into European markets, you might need less. But I would say probably again, I don’t know. I would. I’m not I didn’t start now. So it’s going to be a hard question to answer. But I will say that whatever whatever capital you have, it needs to be enough for its three products because of the reason I mentioned it cannot be enough. So let’s say you have $10000 in the product. You look at the initial investment for the first two victories, $10000. That’s not going to be enough. So if you have $10000, you need to look for a product that will cost you around three thousand dollars for the first inventory, because if it does well, you need to fund more. You need to put more money from your pockets at least once or twice before you get enough money back in.
So that’s why you need about three times of the first inventory. And that just depends on the product you got to launch. Right. That just like I discussed before. So you just need to kind of figure out your own criteria. And that’s great. You changes as you grow with your business. And if the product fails, then you still want to liquidate that stock profit as much as possible from that or break even or lose a bit of money. And at the same time, look for new product launch of new product. So that’s why. Well, I would say you need about three times of the usual investments.
Ok. That’s a good thing. Would you like if somebody has like $5000, let’s say, or if you had if you had five thousand dollars and you’ll need to start over completely from scratch, OK? You have this whole knowledge, which, of course, this would be a different situation. But would you rather say, OK, you go ahead on your own or you look for an investor or somebody who can invest?
So I don’t really know investors. I work with the investors and partners. And I had everything I make. I ditched everyone there within the mile. But what I will say about investor is those don’t make a lot of sense to me unless you don’t want to have the risk on your own yourself.
Then you take an investor. But let’s say you only have five thousand dollars. I think that’s not really enough unless you lunch and I could smell the European market. I’m not sure that’s enough. But let’s say that’s all you have and you say, OK, the first stock is going to cost makes me thousand dollars and you put that $3000 down before you do, make sure you have a friends or family or someone who can vouch for another amount of money.
Yeah. And you just think it is a law and you just paid it back with interest for that loan like 5, 6, 10 percent or whatever. After a few months, because funding inventory shouldn’t cost you anything like shouldn’t be a risk. Well, I would say like a big risk. Right.
So look, very cool. Thanks so much for sharing all those tips with us. I think it was very, very valuable. Well, tell us, where can I find you?
Yes. So you go you can add me on Facebook and also you can go to my Web site, Tomer Rabinovich dot com. You can message there and we’ll get back to you. And also the coaching is there. The details are there. I also have some live lectures. One of the lectures is about this threat you talked about. And you can see the only one hour lecture. I go into a lot of detail, but everything is on the website. Just look at everything and see everything.
