which online business model is better
Amazon FBA or Amazon book publishing in
this video I'm going to do a
side-by-side comparison of each business
model to help you decide which online
business opportunity that you should
pursue over the long run now right now
I'm sure you know Amazon is one of the
best opportunities for someone that's
looking to work from home build an
online business and start making money
online right now Amazon stock is at an
all-time high
online sales are surging right now
because a lot of traditional stores and
retail and bookstores are dying off
especially due to what's happening with
the coronavirus and there's more people
than ever just like you that are maybe
watching a video like this looking for
ways to make money online looking for
ways to work from home and make money
and now it's just a matter of which
which model should you pursue and which
one is better and which one is more
appropriate for you so I'm gonna explain
Amazon FBA Amazon FBA stands for
fulfillment by Amazon this is the
process of private labeling a product
where you find a supplier or a
manufacturer that's already making a
physical product it could be in China it
could be in the United States it could
be anywhere in the world
looking through Alibaba websites like
that finding a product and then you
sourcing that product from them putting
your own packaging and branding on that
product shipping it to Amazon's
fulfillment centers their warehouses
anywhere in the world United States and
your Amazon listing and then selling
that product on Amazon either in the US
or other Amazon marketplaces that they
have that's Amazon FBA Amazon book
publishing is the process of you
creating a book either a Kindle book
paperback book or an audiobook or all
three and then publishing a book on
Amazon and making money online through
that method even if you're not a writer
you can hire ghost writers to write
books for you and I'll talk a little bit
about each of those models a little bit
more if you're not familiar with them
okay so which one should you pursue well
I'm gonna do a breakdown to help you
decide and share my experience selling
on both both of these different business
models I started with Amazon book
publishing about nine years ago and then
transitioned to Amazon FBA
about five years ago so I've got a lot
of experience doing both as well as
being involved in many different online
businesses and also helping and coaching
and teaching a lot of people to get
started with both as well in this video
we're gonna explore a few different
things number one the potential of each
business model how much money how what's
the potential how much money you can
make and scale what level can you scale
it to with each of these different
business models the level of competition
or saturation which one is more
competitive you're going to have to deal
with you know higher levels of
saturation involved with that which can
make it a bit more difficult the level
of difficulty the difficulty of getting
started in that business model in terms
of if you're a complete beginner you've
never sold anything online before you've
never had a business you don't know
anything about internet marketing
whether you're a kid in school or you're
a grandma or grandpa
what level of difficulty would be
involved and you actually getting
started with it as well as the level of
difficulty actually scaling it to a
level where it's making enough to you
can quit your job and live off that
income full-time we're gonna explore the
startup cost how much is that initial
investment and the cost to get involved
in that business model the timeframe in
terms of how long it might take to get
started with this business to a point
where you're making money with it as
well as the level of risk okay so I
thought these are some great categories
that we're going to explore and we're
gonna help you just decide to determine
right here today which one that you want
to pursue and get started with now by
the way here on project life mastery my
youtube channel and my podcast I talk a
lot more about selling on Amazon
building your own online business
investing and mindset self development a
variety of topics if you're interested
in more content from me make sure you
hit that subscribe button and turn on
notifications to get more okay first
thing is the potential which one has
more potential let's first start with
Amazon book publishing when you're
publishing books on Amazon whether
they're a Kindle paperback or audiobook
the one challenge you're gonna face even
though Amazon is a huge marketplace
hundreds of millions of people at your
disposal that you can market your books
to they've got the Kindle e-reader
devices there's a lot of potential on
both platforms on you know both business
MA
but the one thing that is limiting I'd
say with the Amazon publishing business
is that you're selling low ticket
products if you're selling a Kindle book
usually that's a book that's gonna sell
for $10 or less and even to sell it $10
for a Kindle book you know it's gonna
have to be a best-selling book or one of
the top books in its categories or have
a lot of reviews a paperback book you
might sell up to $20 okay and even then
being at the high range of 20 bucks for
a book can also be a little bit
difficult as well not unless it's an
authoritative book a bestseller book or
have a lot of reviews and so the
challenge with that even though there's
great potential to make money by
publishing books on Amazon if you really
want to scale that to a six-figure or a
seven-figure business to 8,000 a month
10,000 a month or beyond that it's gonna
become very challenging because you're
selling a low ticket product that means
you're gonna have to have tens of
thousands of customers buy your book and
there are certain categories and niches
on Amazon that you can publishing that
have more potential than others some of
them it's a lot more achievable to do
that to scale up to that point others
are very difficult there's some you know
niches and topics on Amazon might only
have the potential to make you a couple
hundred bucks a month now that might be
great for you if you're just starting
out if you're a complete beginner you
just want to make some extra income and
you want to get your feet wet and make
some money on the side that can be great
for you but if you're all if you're
exploring which opportunity is gonna
allow you to you know make a six-figure
income or seven figures quit your job
and really depend and live off that
income then that's gonna be a
challenging part of Amazon book
publishing now the one thing I'll
mention with Amazon books is a lot of a
lot of people don't realize that a book
is just a means to an end a book that
you publish on Amazon even though you
can you know make some good money with
that it's really the back end that leads
to more potential because when you're
selling books and let's say you have
hundreds or thousands of people buying
your book well a lot of those people now
they're your customers and if you can
build a back end where you funnel people
from reading your book to now
subscribing to your email list or
following you on social media
now there's potential for you to build a
launch
relationship with that person and make
more money on the backend by selling
courses doing affiliate marketing even
selling physical products you can make
more money on the back end from that so
there's more potential if you think long
term and building up back end but just
selling books in and of itself it can be
a great way to make a couple hundred or
a couple thousand bucks a month but to
really scale that beyond that is gonna
be much more difficult okay
Amazon FBA on the other hand has much
more potential there's way more niches
and topics and types of products that
you can sell through physical products
than you get then you can buy publishing
books even though Amazon started off as
a book store now they've become the
everything store more of their business
is the physical product side of it then
ebooks the book side is still strong
there's still the biggest book store in
the world online or offline even but in
terms of the potential of the demand and
where the real money is going to be made
it's going to be made by selling
physical products with Amazon FBA not
only can you charge more money for those
products there's just a lot more buyers
more buyers at your disposal and you can
scale to those those numbers much higher
when it comes to Amazon book publishing
I've been doing it for over nine years
now and I've you know made it you know a
lot of money doing it but if you're to
ask me how many people do I know that
make a six-figure income from that over
8,000 a month
it'd be less than ten you know I
couldn't you know I could hardly count
just on two hands or barely count just
with two hands Amazon FBA in the other
hand I can list hundreds of people that
are making over six figures even seven
figures with that so by far I'm gonna
say Amazon FBA wins in terms of
potential and the long term potential of
actually building an asset that can be
sold Amazon FBA wins that by far because
a lot of people they build an Amazon an
e-commerce business they build it over a
few years and then they sell it for six
figures seven figures even eight figures
very challenging to sell a book
publishing business even though yes you
can
Amazon FBA is a more common where you're
actually building an asset that could be
sold and then allotted a lot of
e-commerce
sellers they just kind of start over
again build another one and then they
sell it and rinse and repeat that model
next one will be competition which one
is more competitive which ones more
saturated well the truth is both are
very competitive ok I'm not going to lie
to you both are very competitive it
doesn't matter what niche what market
what product that you might think of
selling what book you might be thinking
of selling I can almost guarantee you
that there's competition in that and if
there's not yet I can guarantee you that
soon enough there will be if you found
some sort of niche that's just emerged
and no one else knows about it I can
guarantee you there's gonna be a lot
more people jumping in that soon after
as soon as they recognize and realize
the potential and the demand for it so
no matter what you're gonna sell online
it is going to be competitive and that's
not a bad thing I actually first look at
that as a good thing because part of
what helps you identify what product you
should sell on Amazon is going to be
looking at the competition doing product
research and by looking at what other
books and other products that are
selling on Amazon and looking at their
Amazon bestseller ranking there's tools
and softwares that can even help you
analyze all that that is an indicator
for you to help lower your risk in
knowing that if you decide to sell this
product you've got a winning product
that all these other people are making
money with this product that's showing
you the demand and the opportunity of
that so competition is actually really
useful and valuable I don't like it to
even enter into a market if there's no
competition because then there's a lot
of unknowns there's a lot of uncertainty
and there's higher risk associated with
that so looking at competition is a good
thing but the reality is you know you're
gonna have to market your book outside
of Amazon to really get those outside
sales which gives you a competitive
advantage with both of these business
models and and you know I think with
publishing what I would say is that
there's there could be more competition
in the sense that's a little bit harder
to stand out you do have to
differentiate with competition with your
book but I'd say it's a little bit
harder to differentiate and stand out
with some topics of books then other you
know categories and products that might
be sold as Fizz
go products and because as I'll share
with you a little bit later publishing
has like a lower barrier of entry it's
not as complicated not as much money
involved to get started with it whenever
there's such a low barrier of entry for
people to get into it even though it's
very easy for people to do it there's
more there's gonna be more competition
with that which makes it a bit more
challenging Amazon Amazon FBA on the
other hand because there's a higher
barrier of entry to do it's a little bit
more harder and difficult and cost more
money there'll be a little bit less
competition because of that which can be
a good thing but also the mere fact that
the physical product side of Amazon is
so much bigger so much more potential
you can stand out and and and still do
really well in spite of a lot of
competition so let me give you an
example Amazon it's a search engine
right people go to Amazon they type in a
keyword ok to type in yoga right they're
looking for a book on yoga they're
looking for a yoga mat or yoga pillow or
blog or something like that ok they're
gonna type in a keyword if you're
selling a book and let's say it's on the
topic of yoga there's gonna be a lot of
yoga books out there and it's gonna be
very difficult for you to kind of stand
out and differentiate even though yes
you can you absolutely can the challenge
is though because the market for yoga
books is not going to be as big as
people looking for yoga mats and yoga
you know physical products for the book
category you have to kind of have your
book ranked on the first page of Amazon
you know that when people search for
that you've got to have your book and
the top 10 the top 20 to really make
some some decent sales from that on the
physical product side if you've got a
yoga mat and you're on page 5 page 10
page 15 you could still be making
thousands of dollars a month because the
category is so big there's so much
demand and there's more ways you can
kind of stand out and differentiate in
that niche so when it comes to
competition I'm gonna say that there's
more competition with publishing than
Amazon FBA but either way we're just
kind of looking at selling just on
Amazon cuz Amazon is a marketplace what
I teach people and help people with is
the marketing outside of Amazon
if you get traffic from Facebook from
YouTube from a blog from other sources
to your product now you're standing out
from your competition you're getting
more sales than your competition that
they're not getting Amazon will love you
for that
and rank you more for it but just in
terms of going back to the potential
there there's more because that's more
potential demand on Amazon FBA it's
easier to still do well in spite of
competition than publishing a book that
makes sense trying to explain this
really thoroughly for you guys okay how
about we move on to difficulty which one
in terms of the ease of getting started
is harder or easier than others
first Amazon book publishing Amazon book
publishing one of the reasons why I love
it is that it's very newbie friendly if
you're a complete beginner it's a great
business model it's one of the easiest
business models for someone to get
started selling online with compared to
anything else that I've come across even
more than affiliate marketing even more
than like anything else that I can think
of publishing books on Amazon will be
the easiest that I've ever come across
not that it's easy there's still you
know difficulty with it but compared to
others it's a lot easier okay so the
process of publishing is very simple in
fact you don't even need a course to get
started publishing a book on Amazon you
could literally go to Amazon's platform
called KDP amazon.com KTP stands for
Kindle direct publishing you can go on
over there set up a free account if
you've got a cover on your computer for
a book and you also have a book file
like a word document PDF something
formatted for a Kindle or paperback you
can literally log into your account
today put in your book you know your
book title upload the cover put in a
description put in some keywords upload
the book put up the price hit publish
tomorrow your book is live on Amazon and
is available to make you money and
potentially get you sales so when it
comes to that the ease of that is pretty
simple
I'd say compared to a lot of other
models now yes there can be difficulty
in finding a niche and creating your
book either writing it yourself or
working with a ghostwriter and having
them create the book for you and
formatting it and even launching it and
marking the book that's really where you
need a course
in my opinion it's not the process of
publishing a course is leveraging
someone else's experience that's already
had success and worked with many other
people that have created success and can
give you a proven process on how to come
up with ideas and niches and help you
choose the right niche the right keyword
and avoid mistakes of going through a
process and publishing something that's
not going to make you money so of course
can help you with that as well as the
process of creating your book and your
cover how to create a book that actually
will get people's attention and
captivate them and make them say I want
that because your book covers incredibly
important determining whether or not
some advisory book you could have an
amazing book but if you have a cover
that people don't click on and don't
want to buy it you're gonna have a hard
time creating a great title knowing
keywords knowing how to rank your book
on Amazon's algorithm and how to launch
your book successfully to get sales and
get reviews for your book that's where
you where a training and a coach and
expertise can help you out with and I do
have a training which I'll link to below
in the description if you're interested
on the other hand now let's go to Amazon
FBA Amazon FBA is a much more difficult
process not that it's hard it's more
complex there's more logistics involved
with it okay the process of private
labeling a product you you know
obviously going to do research and find
product opportunities that are high
demand high potential on Amazon but then
you've got to actually do the math and
determine what your costs and expenses
are gonna be and manufacturing the
product what your profit margin will
gonna be which is really important
there's a lot more things you got to
have to calculate and really be certain
of before you pursue that product all
the numbers have to make sense with that
and so you're gonna have to reach out to
suppliers and communicate back and forth
with them you're gonna have to get them
to send you samples you're gonna have to
look at the products and and determine
the weight and the size of the product
the shipping costs all the logistics
involved you have to make more of a
bigger decision I guess or assessment in
deciding what product that you're gonna
go with and then the logistics of
getting that product manufactured
getting your product packaging done
getting the barcode you know shipping it
from with a freight forwarder from your
supplier to an
warehouses maybe you might have an
inspector involved to inspect the
product or you might inspect it yourself
setting up your Amazon listing launching
the product there's more involved in
that process which if you don't have a
course and are trying to figure it out
on your own very challenging and I my
opinion can be very risky especially
when you're investing a lot of money
into that process which can also take
you a few months to actually do so in
terms of the difficulty I'm gonna put
publishing is a lot simpler but simpler
to get started with the difficulty is
gonna come in this business when it
comes to scaling it okay so yes it's a
lot easier to get your product up there
and maybe first make your first dollar
your first hundred bucks first thousand
bucks but when it comes to scaling
beyond that then I'm gonna actually put
the ease of scaling here a lot better
because once you get a product selling
with Amazon FBA you get past that
difficult part the logistics and you
know what you're doing it's a lot easier
now to go to ten thousand a month twenty
thousand fifty thousand you can ramp up
to a hundred thousand month and more you
have seen it countless times with this
model which is this one that's gonna be
very challenging to ever get to those
numbers with publishing a book either
you have to have a best-selling book and
and you know do a lot of you know media
to really build it up and it has to be
in a huge broad and wide demand topic
and category for it to really blow up or
you're gonna have to publish many
different books and have each book make
you a certain amount of money and that
becomes a lot more challenging though to
scale and manage all of that over the
long-term to keep them each consistent
okay so I'm gonna say it's kind of even
with both of these it's kind of even I'd
say this one's a lot easier just getting
started with great weight I always
recommend it for someone that just wants
to like get experienced get their feet
wet learn the ropes it leads into FBA as
well as you have some of that experience
it's going to help you with this this
one is very difficult and I just think
having a course in the training programs
mandatory because of the level of risk
involved and a lot of people I see lose
money and make a lot of mistakes because
they don't know what they're doing and
they don't
course that can help them with it and
they get discouraged and they give up
because of that and it's not because
there wasn't potential there it's just
because they just went about it the hard
way
and why go about something the hard way
why reinvent the wheel when there's
already you can shorten your learning
curve and compress decades in the days
by investing in a course that can bring
you there a lot further faster than you
ever could on your own so that's my
philosophy with that how about startup
cost how much does it cost to get
started so Amazon book publishing the
great thing about this model is that it
doesn't cost much in fact writing a book
is free if you want to write a book
yourself you could do that doesn't cost
you any money it's just gonna cost you
some time creating a book cover on the
other hand you can get done pretty
inexpensively you can actually go to a
website like Fiverr calm and I'll link
to these below for you guys in the
description Fiverr comm you can hire
someone to create a book cover for you
for ten bucks five bucks I usually you
know hire maybe three different people
you know ten bucks 10 bucks ten bucks
and then see which cover that I like out
of those three I get more options and
you can even test that too on Amazon
other than that you know if you want to
market your book and put some money into
that that's not that's an optional thing
you could do you know Amazon has their
advertising platform you could put aside
fifty bucks a hundred bucks give your
book a boost with that but when it comes
to marketing the sky's the limit on how
much you want to spend it really depends
how much you want to put in to marketing
and advertising your book so for the
most part though you know there's very
little cost couple hundred bucks I mean
if you want to hire a ghostwriter which
is a great option or even work with
another author and you do a split with
them you do the publishing and the
marketing they write the book for you
that's a great offered opportunity for a
lot of people but ghostwriters you can
hire pretty inexpensively it does depend
on the level of quality of book that you
want to create but one thing that a lot
of people don't realize is that a book
doesn't have to be 300 pages in fat
Amazon has a category called Kindle
short reads for books that are very
short 20 pages 30 pages many people
publish a 20 30 page book and they sell
it at a lower price point maybe $2.99 as
a Kindle version and can do pretty well
with that
you can maybe publish something maybe in
the forty or fifty page range and that's
a lot easier to create a lot faster
doesn't cost that much you can hire
someone and especially right now there's
a lot of writers right now looking for a
work and so there's a lot of demand
right now for hiring ghost writers and
working with them because they're
looking for ways to make money from home
as well so you can publish a shorter
book and it doesn't cost that much money
to do that you can get that done
pretty inexpensively allotted by the way
a lot of celebrities and famous people
that come up with books they didn't
write the book book themselves they
hired a ghostwriter to write it for them
usually the ghostwriter will interview
that person and then take that create it
into a book you could even have the
ghostwriter do the research for you and
put together a great book for you if
you'd like and you could publish it
under a pseudonym a pen name your name
their name a company name a publishing
company name you know there's many
different options for doing that now
Amazon FBA on the other hand there is
more startup cost involved in that
primarily because you have to invest in
inventory so when you talk to supplier
you're gonna have to invest in the
inventory of that usually it could be
five hundred units up to a thousand
units when you're first starting out
you're not gonna get the best price when
you order a small you know smaller
quantity from a supplier usually they
give you better pricing when you order
larger quantities and every supplier is
gonna have a minimum order quantity so
some of them it might be 500 some might
even be a thousand some even less some
some 100 or 200 you want to make sure
you invest though in enough stock that
you don't run into stock when it's
selling because one of the worst things
you want to do is have a product that's
selling well in Amazon but then you run
out of stock and now the ranking is in
the boost you got from Amazon plummets
as you wait for more inventory to come
in but you also don't want to have too
much inventory that if your products not
selling and you want to get out of it
it's a lot harder now you have to sell
that off so there's more cost involved
in an inventory shipping the product
creating your product packaging and and
you know maybe even marketing costs and
even giving away some units when you're
first starting out as well to maybe get
some reviews or get a boost on Amazon as
well Amazon FBA I'd say can cost about
$2,000 okay versus the book publishing a
couple hundred bucks but that's not even
include
course a lot of great courses some that
I recommend which I'll link to can cost
a couple thousand bucks because it's
just that's what you need you need you
need the right training and the
mentorship that these courses include
it's not just a course but they give you
mentorship as well that can really help
make sure and yes you're investing a
couple thousand bucks in this but with
the potential of making six figure seven
figures you've got to always look at the
return on the investment not just what
something costs so I'm gonna say in
terms of startup cost though the
publishing business is definitely a lot
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