Amazon

People don’t know what anything is worth

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Imagine you’re starting a new business as a cat and dog photographer. So as the first step, you head to Amazon to check prices on DSLR cameras.

Hm. That Canon EOS Rebel you’ve been eyeing is priced very reasonably.

In fact, the price on Amazon is cheaper than at the specialized photography equipment website… and at your local brick-and-mortar photography store… and even at Walmart.

But here’s the trick.

I didn’t know about it until today — maybe it won’t be news to you — but of course Amazon gets its own back.

According to an analysis by Boomerang Commerce, Amazon dynamically reduces prices of its most popular items to make you think you’re getting a good deal.

That’s why something like a popular DSLR camera is cheap on Amazon.

But at the same time, Amazon dynamically jacks up the prices of less popular items — cables, lenses, carrying cases — that you are likely to buy with your main purchase.

End result?

You feel you’re getting a deal. Meanwhile, Amazon sits there quietly, with that trademark smirk on its face.

“Meh,” you say. “That’s nothing special. Businesses have a right to manipulate their prices however they want to maximize profits.”

I don’t dispute that.

My point is simply — well, actually, it’s not my point. It’s the point from the people at The Atlantic. They made the video I watched today, which clued me into this Amazon pricing stuff. And the video summed it up like this:

“People used to think the Internet would usher in this new age of transparency for pricing. But really it’s just given retailers new ways to manipulate the same old fundamental bias: People don’t know what anything is worth.”

Marketer Rich Schefren likes to say that marketing is getting people to value your offer.

I used to think that means sharing enough information for your prospect to see what your offer is truly worth.

But people don’t know what anything is worth. No amount of information will help them see the “true” value of your offer.

When you understand this, then Rich’s koan takes on a whole new level of urgency and meaning.

Suddenly, positioning becomes the most important decision you can make.

Because if you can put yourself into a marketplace of one… and given that people don’t know what anything is really worth… well, then you can manipulate the prices of your own offers how you like. And you don’t even have to be sneaky like Amazon about it.

So how do you get yourself into that magical marketplace of one? That’s something I write about on occasion in my email newsletter. If you’d like to read what I write about it the next time, sign up for my newsletter here.

The latest run-ins with ad fraud

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Back in February of 2020, Kevin Frisch, the former head of performance marketing and CRM at Uber, said the following:

“We turned off 2/3 of our spend, we turned off 100 million of annual spend out of 150, and basically saw no change…”

It turns out that a bunch of sites, apps, and ad network were coming up with clever ways to cheat Uber of their advertising dollars.

You might think, “Stupid Uber. That’s what happens when you’re a giant corporation and you don’t know the basics of direct response.”

That may be so.

But I also read about a modest-sized company, headphones.com, which went from $1,200 in daily ad spend to $40… with no change in sales. This was in 2020 also.

So what’s my point?

I’m not sure… I just found this pretty shocking. I wanted to share it with you mainly because I worry that even small marketers can launch campaigns that do nothing… and the culprit might be fraud.

Also, i want to tell you about a seemingly well-behaved duck in this space of large and shady advertising vultures.

I’m talking about Amazon.

Yesterday, I told you about the lead-gen value of putting your book out on Amazon.

But what if your book doesn’t sell? No leads generated then, right?

Well, Amazon allows you to advertise your book.

I’ve been doing it with my 10 Commandments book ever since I published it back in September.

As of today, I figure over 50% of my book sales came from these ads.

And here’s where it gets interesting:

My average cost of selling a book is around 50%. In other words, when I spend $1 in ads, I sell $2 worth of book.

I would do that all day long, because the royalties from Amazon a typical kindle book are 70%. In other words, of those $2 worth of book sales, $1.40 are yours to keep, at a cost of $1.

So is Amazon a well-hidden way to print money with book sales?

Sadly, no. Because on most days, Amazon never gets to spending even my modest ad budget.

That’s why I say they seem to be well-behaved — at least for now — and that’s why Amazon ads (specifically book ads), might be something for you to look into.

Last thing:

I write a daily email newsletter about copywriting and marketing, much like what you’ve just read. In case you’d like to sign up for it, here’s where to go.

Tall Chinese boys and the Zappos case study

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I often wonder why teens seem to be getting taller, even in countries that are not famous for tallness — like Italy or China. Today I found a potential answer.

According to a study published this month in The Lancet, it comes down to nutrition. Improving nutrition is why Chinese boys became 4 inches taller in 35 years, and went from 150th tallest on the list to 65th. Meanwhile, boys in the UK got only one inch taller during that time, which dropped them from 28th place to 39th.

Dr Andrea Rodriguez Martinez, the lead author of this study, concluded by saying:

“Our findings should motivate policies that increase the availability and reduce the cost of nutritious foods, as this will help children grow taller without gaining excessive weight for their height.”

It was the bit about “increasing availability” and “reducing cost” that got my attention. It reminded me of a case study reported in Jonah Berger’s book the Catalyst, about the online shoe retailer Zappos.

In their early days, Zappos was limited in how low they could cut their prices — Nike didn’t want their cool new sneakers being sold cheap.

But even if Zappos could offer lower prices than in retail stores, people would still be wary of buying shoes online.

So what Zappos did instead was remove roadblocks to buying. They offered free shipping instead of lowering prices.

It could have been disastrous for the company… but it was not. Zappos went from struggling ecomm startup to a $1.2 billion buyout from Amazon.

So my message to Dr Rodriguez is, instead of pushing for food voucher programs… advocate for more vending machines selling expensive but delicious dehydrated zucchini chips. And watch those kids shoot up in height rather than width.

But it’s unlikely Dr Rodriguez will listen to me. Maybe you will.

So my message for you is that free shipping makes any offer more enticing… and that price is often not the main objection that you need to address. Rather than trying to compete on price, ask yourself why your prospects are not buying already — and then remove that roadblock directly.

Let me give you an example:

I write a daily email newsletter. It’s free, so I can’t cut its price any lower without paying you to sign up. But the fact is, you can subscribe to it and if it’s not right for you… you can unsubscribe any time with just one click. No risk. No hassle. So why not try it out? Click here to sign up now.

How to avoid disappointing readers and burning yourself with “secrets”

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If you go on Amazon right now and look at the top 15 bestsellers in the Internet Marketing category, you will see a curious thing:

6 of those 15 books have a title of the form “[Topic] Secrets.” So there’s Traffic Secrets, YouTube Secrets, Instagram Secrets, plus three others.

Obviously, “secret” is a powerful word in direct marketing. It goes back to Robert Collier at least, who published a book called The Secret of the Ages back in 1926.

In the decades since, you had Gary Halbert with his sequence of “amazing secret” ads… Boardroom’s collection of “secrets” books… and today, Agora’s newest imprint in the IM space, which has a newsletter called Daily Insider Secrets.

Like I said, secrets obviously sell. Then and now.

And yet, I’m writing this email to warn you about “secrets.”

For one thing, “secrets” can make you sound like everybody else. 6 out of 15, remember?

For another, “secrets” might attract the wrong kinds of buyers. They might also put the right kinds of buyers into the wrong frame of mind.

For a third thing, and most important, relying on words like “secrets” can allow you to coast instead of coming up with better content. For example, here are some of the secrets from one of those Amazon best-sellers:

“Secret #1: What is copywriting?”
“Secret #13: It’s all about them — never about you”
“Secret #31: Polish your sales copy”

I don’t know how chipper you would have to be to avoid getting down in the mouth when this treasure chest of secrets is opened up.

But what’s the problem? The book is a best-seller, right?

In my experience, being on an Amazon best-seller list doesn’t mean much. But even if this book were a legit best seller, putting out generic content and calling it a secret leaves you wide open to competition. Your only defense is this thin mist of curiosity, which can dissipate in a moment.

Maybe I’m digging myself into a moralizing hole. So let me finish up by telling you what I tell myself, because it might resonate:

Put in a bit of extra work to come up with unique content and a unique perspective. Once you’ve got that, if it warrants being called a “secret,” then sear that on its rump and let it run.

But odds are, once you’ve done that bit of extra work, you’ll come up with a better, more interesting title or headline for your content. Maybe you’ll even start a new naming trend. One which half a dozen Amazon best-sellers will copy for years to come.

By the way, I’ve also got a daily email newsletter. It’s called John Bejakovic’s Newsletter of Secrets. You don’t have to sign up. But if you want to read all the secrets inside, here’s where to go.

My little-known history as an Amazon ebook hack

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A-list copywriter Bob Bly just sent out an email about the National Emergency Library. I’d heard of this initiative but I didn’t bother to look it up until now.

Turns out, the Internet Archive is scanning books and making them freely available online during the corona situation. That’s the National Emergency Library. To which Mary Rasenberger, director of the Authors Guild, said (and I quote from Bob’s email):

“[It is] no different than any other piracy sites. If you can get anything that you want that’s on Internet Archives for free, why are you going to buy an ebook.”

I don’t know about you, but to me this sounds like the old argument about sex and marriage. Why buy the cow, when there’s an app that hooks you up with free milk, even at 3am.

And yet… plenty of people are still getting married these days. How come? Riddle me that, Mary.

But seriously, here’s a little-known fact about me:

For about a year of my life, I eked a meager living by writing ebooks and selling them through Amazon Kindle publishing. (Don’t search for the books because they were all published under pseudonyms.)

I actually sold thousands of copies of these books — but it didn’t mean much. Kindle ebooks sell for a couple of bucks each.

Thing is, had I known as much about marketing back then as I do now, I wouldn’t have failed or given up on my Kindle publishing dreams.

That’s because selling books on Amazon (or really, on any outside platform) is not a good way to make money. It is, however, a fantastic way to get highly qualified leads who have tried a glass of your milk, and who want more.

That means you can get these folks over to your site and sell them more milk — maybe at a higher price than what Amazon encourages you to charge.

Why stop there though?

If somebody likes you and knows you and trusts you, why limit your offer to a carton or two of milk?

Instead, take your new-found customer by the hand to the back of your property… open the barn door… and introduce her to your gorgeous cow. It might be just the bovine your customer has been looking for all her life.

In other words, if the National Emergency Library, the National Milk Authority, or any other pirate institution starts giving away samples of your money-maker for free, it might not be the end of the world. It might even be the start of something great. As multi-millionaire marketer Joe Sugarman once said:

“Each problem has hidden in it an opportunity so powerful that it literally dwarfs the problem. The greatest success stories were created by people who recognized a problem & turned it into an opportunity.”

Agora finally gets into Internet marketing

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I remember back in 2006, when Amazon announced its new Amazon Web Services.

How clever, I thought. Like Donald Trump selling golden mailboxes at Trump Tower to entrepreneurs who want the ritzy mailing address.

After all, Amazon already had all of the computer boxes and wires and know-how for connecting them together. Other businesses didn’t have this — but wanted it. So Amazon could make a nice business by making its internal IT resources publicly available on a per-use basis.

And what a cash cow it turned out to be. AWS is now estimated to bring in $25B a year — more than McDonald’s — and is one of the main profit centers at the famously profit-free Amazon.

Now here’s a puzzle for the marketers out there:

What’s lying around your desktop (literal, computeral, or mental) which you could sell like Amazon sold AWS?

Don’t just shrug if off, but think for a minute.

Because even some of the most successful marketing businesses out there don’t collect this free money. Case in point:

Agora.

Agora is probably the biggest direct response company, with dozens of subsidiaries, and hundreds (thousands?) of offers, mostly financial newsletters.

You can bet that with all this experience selling high-margin info products online, the people at Agora know a thing or three about copywriting and Internet marketing.

And yet, in spite of its tremendous proof elements and branding, Agora doesn’t have any offers in the profitable and growing copywriting/IM niche.

Or at least… they didn’t.

Right now, Agora is spinning up a new division focused on Internet marketing.

I’m not sure what it’s called, but they have an email newsletter called Daily Insider Secrets.

On different days, you can read insights from Evaldo Albuquerque, one of the most successful copywriters at Agora Financial in the past few years…

…from Peter Coyne, also a successful copywriter and the youngest publisher inside Agora…

…and finally, from Rich Schefren, a big name in the IM space for the past decade or two.

I’ve been signed up to these emails for a few days. So far, it’s been like they say — IM secrets you can’t get nowhere else.

Except perhaps, in my own email newsletter. After all, my only fun in life is scouring the Internet for new marketing and persuasion ideas, and then giving them away in my daily newsletter. Usually packaged up in some kind of story.

If that sounds like the kind of thing you might be interested in, then you can try out my (FREE!) email newsletter here.

Dog takes bus, Upwork success ensues

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A dog named Eclipse rides the bus by herself several times each week.

She even has her own bus pass.

Her owner is waiting for her at the dog park, and Eclipse takes the bus to meet him. It all happened by accident the first time — she got on first, the guy stayed behind — but now they’ve made a habit out of it.

The other passengers don’t seem to mind.

I guess it helps all this is happening in Seattle.

The liberal home of Amazon.

The platform on which I am planning on publishing my upcoming book on Upwork freelancing.

The book is titled:

“How to become a $150/hr, top-rated sales copywriter on Upwork”

And it’s going to share my experiences with the business (rather than the craft) of sales copywriting for clients on Upwork.

If you want to get notified when this book comes out, you can sign up at the link below.

And when I finish up the book, I’ll write an email, put it on the bus with its own bus pass, and send it your way. To sign up:

https://bejakovic.com/upwork-book-notification-list/