JIM COCKRUM'S CES CONFERENCE #IV 2016 Nashville, TN. Day 1: Jeff Cohen Traits of an Amazon Seller

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1 JIM COCKRUM'S CES CONFERENCE #IV 2016 Nashville, TN Day 1: Jeff Cohen Traits of an Amazon Seller [music] 00:05 Speaker 1: So our first speaker is going to be a guy who knows... He's probably more connected in this industry than just about anyone I know. He does a lot of these events, he's got his finger on the pulse of this industry and we're proud to have him not only as a sponsor, but as a presenter as well. So you're gonna hear from him a couple of times the next three days. Mr. Jeff Cohen, good friend, buddy of mine. Come on up buddy. [applause] 00:35 Jeff Cohen: Thank you. Thank you. 00:37 S1: Awesome job, bud. 00:37 JC: Thanks. Hey Jim, let's just tell Rosemary one thing. Rosemary, I don't know where you are... There you are. You shuttered when you said the word 'profit'. Profit is not a bad word, okay? 00:49 S1: Preach. 00:49 JC: And we are going to get into that as we talk about traits of successful Amazon sellers. I think we just need to get the slides up on the screen so you don't have to stare at my face. For those of you that don't know me, my name is Jeff Cohen and I run Business Development and I'm part of the executive team for Seller Labs. You've probably have seen me at conferences before. I typically wear this shirt, I do wash it between shows. One of the things we talked about as we got started here today was trying to understand how many people have come to this show and when they've been at the show. But let's talk about you guys as sellers. So how many people have started selling on Amazon in 2016? Okay, so you guys are... We'll call you our newbies, welcome. How many people started in 2015? Great. How many in 2014? And then where are the dinosaurs that started in 2013 or before? Awesome. You guys were way ahead of the curve, right. Because this world has changed as Amazon has changed. And the big change that happened at Amazon was this thing called FBA. 01:54 JC: And as I have a chance to go across the world now and speak to thousands of Amazon sellers, I have the opportunity to learn from them as they learn from me. So how many people in this room are doing $10,000 a month or more in sales? Oh, that's amazing. How many... Keep your hands up, keep your hands up. 50,000 a month in sales? 100? Great. Is anybody doing over 250,000 a month in sales? Don't be afraid, we'll come attack you later and find out. There we go. We do have a few in the room. And what happens as we start to talk to the sellers is we get an understanding of miss. We all wanna be and aspire what these sellers are. And as we look at these sellers and we hear 10/21/16 Page 1 of 7

2 sellers talk about why they're successful, we all wanna emulate their success. But what people and what we as sellers need to understand is not where they are today, but where they came from. Because as sellers, we all started at the same place. And you'll hear the stories. 03:04 JC: And that's why Jim is very specific in telling you that Brett started with $400. Because when you get started in this business, you have to understand your 'why'? Why are you doing this? And you have to understand your goals. And for most of us as sellers our goals were not to sell $100,000 a month, our goals were to try to provide some additional income for our family. One of the stories I love to tell was a young lady I met at my first CES in Dallas and her husband was an over the road trucker and I don't know if she's here, I haven't seen her yet. And she was part of one of Jim's early courses on diabetic test strips and her goal was to make enough money in selling on Amazon that she could supplement her husband's income, so he was no longer an over the road trucker and he could actually do local trucking. And when she was doing around $60,000 a month in sales, she had the disposable income from that business for her husband to stop his job. 04:10 JC: And so, what we as sellers have to understand is that our goals don't have to be the same goals as others. Yes. We would all love to have eight figure businesses. We would all like to eventually aspire to that but what's driving us today is what's gonna make you successful. And so, as you learn and as you hear from the speakers who come on this stage, what I like to say is, "Don't imitate, innovate." And what this means is that as speakers come on stage, and speakers come up and talk to you, what makes somebody successful as a seller on Amazon is that they didn't just take a course and follow it. Step one, step two, step three, step four. They figured out how to make that course work for them. And this is where I think a lot of people fail. And if you can make the small little difference in what you do, that's the difference between success and failure. And so, what I like to joke about is that no courses give you every answer. 05:12 JC: So we've all had that situation where we're working on something, we're working on something, we're working on something, and bam, we stop. And you're like, "Wait a minute, the course didn't tell me what to do." And so that's where you reach out to your community and that's where you reach out to the people that you meet at conferences. And that's where you reach out to your mentors and your coaches to get the answers. And the successful sellers today have innovated the courses that they're now teaching you based on the courses of what they learned. And if you ask the successful sellers of today what courses they learned from, they'll tell you what got them started. It might've been a podcast, it might've been a webinar, it might've been a book that they read. But ultimately, that's a piece of the information of what you ultimately need to do to succeed in this business. 06:01 JC: You have to then take it and then do what I call, "Create and not follow". And create and not follow means that you can not just take what somebody else is doing and do it. And we see this all the time in private label, right? Because we all know that there are 5000 dog brush manufacturers in this world. And that's why there's 5000 different dog brush manufacturers selling on Amazon. We've all seen the barbecue gloves, we've all seen the garlic presses. Right? And one of my favorite stories was last year at CES, Brett Bartlet came on the stage and he gave us a very interesting presentation on sponsored ads. Right? Does anybody remember what he told us were the hot product was for Halloween? Halloween inflatables. [background conversation] 10/21/16 Page 2 of 7

3 06:54 JC: Do you know how many people came up to Brett after his presentation and said, "I just ordered Halloween inflatables!"? More than you want to know. Don't just follow what somebody stands on stage and says. That's a good way to fail. That's not a way to succeed. You have to create from that. So maybe you do want to do Halloween inflatables, that's awesome and there's five people in this audience who want to shoot bows and arrows at me right now because I said that word again. [laughter] 07:25 JC: But figure out how you can do that and make it unique and make it your own and make it sustainable over time. Because we as presenters, we as educators, know that everytime that we share information with you, it gets pushed out into the world. So whether we talk about snorkels and fins and whether we talk about garlic presses or whether we talk about Halloween inflatables, successful sellers hear that and they insert their product into that. But one of the things that I find for most successful sellers is they all understand how to fail. 08:04 JC: How many people in this room are afraid of failure? How many people embrace failure? And how many of you have failed in your business? If you haven't failed, you're not trying hard enough. Oh, we'll say it again then. If you haven't failed, you are not trying hard enough! Businesses are designed to fail, right? Opportunities are designed to fail. You only can succeed if you push yourself beyond your limit. And that's what successful Amazon sellers do. I had a conversation with a good friend of mine who does around $400,000 a month in sales on Amazon. Right because we've got to throw numbers out so you guys understand badges, because that means that he's cooler then somebody else. And I said to him, I said, "When you got started, were you ever worried that you would fail?" 09:01 JC: And his response to me was, "Jeff, I came from nothing. If I failed, I went back to what I already was." But so many of us are afraid of taking that next step because we don't want to leave our job because we're afraid of failure. Or we don't want to invest in the inventory because we're afraid of failure. And you get stuck in a paralysis. Where you're staring at the numbers and you're trying to decide what to do but you're so afraid of failure you won't take a step forward. Good successful Amazon sellers take that step forward. They're not afraid of that failure. They spread themselves out across multiple income streams so that if one of their opportunities fails, they can look at the next one. And you as Amazon sellers, as you look to grow your business, you're going to have to take risk. I don't typically speak to audiences that have that big of an audience that's doing more then $10,000 a month in sales. 10:00 JC: To get from $10,000 to $50,000, $50,000 to $100,000, $100,000 to $250,000, or whatever brackets you want to create, you have to take risks and you have to be okay with the idea of failure. But the one thing that I warn you against is that you don't just have to increase your sales because people are telling you that's the next tier that you need to reach. The beauty of Amazon is that we can all run our own businesses the way that we want to run our businesses and to the level that we want to run them. And so if you are at a level that you feel you're driving the income and the profit and all the things that you're looking for, it's okay. I had a guy at a conference this summer ask me a question. He said, "Do I have to do private label?" And I looked at him and I go, "Do you want to do private label?" and he said, "No." and I go, "Then don't do private label!" I mean, it's silly right? But we can't feel that we have to drive to do something just because that's what the industry is going, or the trends are going. 10/21/16 Page 3 of 7

4 11:09 JC: Now we should all be smart people, we should all be looking at what's happening in the industry and we should all surround ourselves with smart people. As you surround yourself with smart people, you begin to identify opportunities for growth. Successful sellers surround themselves with smart people, they're part of mastermind groups. They're part of consortiums, they're part of co-ops, they're doing group buys. These are all things that successful sellers on Amazon are doing. They're not dependent completely on themselves. We're in an isolated business, right? We all sit home, I like to call it, like this is Revenge of the Nerds on steroids, right? We all sit home, we work on our computers, we're all introverted. And then we come to these conferences and we have to like talk to people. But for some reason we really like it because we're like, our family, our wives, and my kids, they have no clue what I do or how I do it, right? But when you surround yourself with smart people, you then have people for you to talk to. And so, that's what you need to do at this conference today if you don't already have that circle of smart people around you. Because that's what successful Amazon sellers do. 12:25 JC: Finally, successful Amazon sellers, they have mentors. Every seller that's on this stage will tell you they have a coach or a mentor because they couldn't have gotten to this point on their own. They've had somebody else push them. And so, if you're looking to take your business to the next level, consider what kind of coach or mentor you need. That might be somebody in E- commerce, that might be somebody in a totally different line of business, but when you look at successful Amazon sellers, that's what they're doing to push themselves to the next level. 13:04 JC: The beauty of the world is that today's economy is about you. Today's economy is totally different than it used to be and I talked about this a little bit yesterday. We used to live in a manufacturing society and our education was all based on teaching people how to do jobs, so that they could come out of their high school or college degree, and move into the workforce, and have some type of job. Today is what we call the, You Economy. If you look at this, these are all the websites that exist today that allow you to have a job in an entrepreneurial-type role. So, it doesn't matter what you do, you can find a way to... If you drive a car, you can work for Uber. If you're a coder, there's five or six sites you can use. If you wanna sell, you can use Amazon. If you're a designer, you got 99designs. This is an amazing advancement that we've had, we now teach our children to think. That's how education works today, we teach our children to think, so that they can move beyond the box. 14:13 JC: So let me give you guys some tips, okay. This year I decided to coach the 9U Northbrook Black baseball team. The 9U Northbrook Black baseball team was the B team. We weren't good enough to be the A team. So, they took the top 10, top 12 kids and they put them on the elite team, and they're gonna see this on video and they're gonna get mad at me for saying that. They took the other 24 kids and they divided them up equally between two teams. And I'm gonna tell you the story about how two teams went two different paths with equal players. Because I coached and I knew the players on both teams and the kids on both teams were equally as good. 15:01 JC: When we started our season, we taught our kids one thing... Actually, 10 things. We told them that they have 10 things they have to do that requires zero talent. Now, this is not a new... This is not something I made up, this is something that's well-written about on the internet. But we sat down with them and we said, "There are 10 things that you need to do that require zero talent." And these things apply to you today. When we looked at the 10 things that requires zero talent, we said to these kids, "I don't care if the ball goes between your legs, I don't care if you drop a pop fly or if 10/21/16 Page 4 of 7

5 you strike out, but you gotta do these 10 things. These are the 10 things that you have to do and if you do them every day, every practice, every game, you will be a better person and you will be a better player." 15:51 JC: And so before every practice, we went through the 10 things, and if you know anything about nine-year-olds, this is how our practice started. "Everybody come around, we're gonna talk." And they took a knee. They go, "Uhhh, we're gonna do the 10 things that requires zero talent." [laughter] By the end of the season, they were reciting these to us without us reciting them to them. It got ingrained into what they were doing in to how they were working. 16:21 JC: So, let's go through the 10 things that requires zero talent before I run out of time. They have to be on time. Everything you do, you need to be on time. It requires zero talent to be on time. Maybe it requires a little bit of effort, but it requires zero talent. They cannot control whether their parents dropped them off on time but they were responsible for being there on time. You guys can be on time. If you're on time, you get a good seat. We all know that for interviews, you show up early, right? Being on time is a virtue that you, as an individual, have complete control over. How many people in this room have a friend who is never on time? Leave your hands up. Okay. Of you with your hands up, how many of you people complain about that friend? Right. So, be on time 'cause nobody wants to be the person who's not on time. 17:20 JC: You can control your work ethic. You can control your work ethic. You control how much effort you put into your job. I missed more than 9,000 shots, I lost almost 300 games, 26 times I was trusted with the game winning shot and I lost. I failed over, and over, and over again in my life and that's why I succeed. Why? Work ethic. When I talked to my son about playing basketball, I don't show him videos of NBA games. I show him videos of the NBA players taking 10,000 shots in the practice gym over the summer. That's how you get better. You get better by putting in the work. You get better by reading, you get better by studying, you can control your work ethic. You can control what you do to make your job successful. 18:15 JC: You can control your effort. "This little guy is working hard, he's trying to get somewhere". We always say to our kids when they're on the field, "You have to give an effort. You have to run in from the outfield. You can't walk." Your job as sellers is to give an effort in what you do, you have to set your time aside, you have to make time for yourself and your personal life as well as your business life, but you have to give an effort to what you're doing. If you're giving a course and you never review it, you're not putting in an effort. The education is there. How many people are using coaching, and they're at the point with their coaching clients where they can essentially call their coaching clients whenever they want? They've gotten over kind of the initial implementation of the coaching. And how often do you call? Think about it. That's your effort. That's the effort that you can bring to your business. Make that extra phone call, do one more thing per day, source one more product, talk to one more supplier. It's amazing how much your business will grow by making those small little changes. 19:28 JC: Something I was taught very early in my life, body language. How you present yourself is how are you're looked upon. When our kids were out at the base and they gave up a fly ball or the ball went between their legs and then, they would do what? They would be like... And we would just yell, "Body language". They've gotta perk up. If you present yourself when you're talking to other people as a positive vibe, people read that positive vibe. There's a reason why Debbie Downer was a whole skit on Saturday Night Live, right? Because nobody wants to be around that, nobody 10/21/16 Page 5 of 7

6 wants the negativity, nobody wants somebody that has bad body language. So think about it and think about it like this, how many people in this room have a standing desk? Okay. With you with the standing desk, how many of you recommend everybody else get a standing desk? Yes, it's one of the best investments you'll make. I guess that'll be my tip for takeaway here. Why? Because when you're on a phone call and you're standing, you give a different body language to the person who's on the other end. 20:40 JC: When I do webinars I stand at my desk and I can walk around my office because I can bring a lot more energy when I'm talking to you standing up than when I'm sitting down and I'm just talking, and I'm just gonna see what's going on, right? Think about it. Think about when you're on the phone and you're sitting down than when you're on the phone and you're standing up. That's your body language. It comes across when you're not face-to-face with somebody. 21:06 JC: You have total control over your energy level. Your energy level is seen by other people. You all have friends who are super excited, who have too much energy and you have friends who bring none. Where do you wanna be in your business? Successful Amazon sellers bring an energy level everyday, they bring it hard, they bring it strong and they work with a positive attitude. They take this attitude and they put it in to what they do, so it comes out when you're speaking to them. 21:40 JC: So think about your attitude, think about your body language, think about your work ethic. These are all things that you can control. It requires zero effort to control these pieces. But ultimately, success of this business is about passion. I had the ability to sit down with a seller last night, I don't know where Allan is, but had dinner with Allan last night and Allan was telling me all about his product. And he was talking about it as a hobby not as a product that he was selling on Amazon and he was talking about it and talking about it. I wanted to go and buy this thing. And then he looks at me and he says, "Do you think it'll do well on Amazon?" And I looked at him and I said, "Yes, I think it'll do well on Amazon and the reason why it'll do well on Amazon is because you have passion in what you're doing." 22:32 JC: If you believe in what you're selling, you believe in what you're doing, your products will be successful because you'll find a way to make them successful. It doesn't require much effort to be passionate. You also have to be coachable, this doesn't mean you have to have a coach, this doesn't mean you have to buy a coach, sorry Nathan, but I do think you guys have a great coaching program. But you have to be coachable. When people give you advice you have to take it, you have to implement it, you have to use it, you have to do it, you have to put it into action. Coaches provide you a structure, they provide you recommendations, they provide you an outline. It's your job to be coachable and to turn that into something. You have to go the extra mile. It requires zero effort for you as a seller to go the extra mile. This goes back to your effort level. 23:24 JC: It's your job to do the one more thing, to look at what else you can be doing to grow your business, to focus your business on the things that you can be successful. If you're not good at bookkeeping, hire a bookkeeper. I think there's one here today. If you don't like taxes, hire a tax company. Don't do the things in your business that you're not good at. Spend your effort on what you can do and what you can do best. Be prepared in everything that you do. The Boy Scouts teach this from the early age. We taught this to our baseball players, that they need to show up, they need to have their bag ready, they need to have their water bottle on the bench, they need to have their glove on, they need to have their cup in. Oh, you would be surprised how many kids we had to send back to put their cup in. 10/21/16 Page 6 of 7

7 24:17 JC: You have to be prepared in everything that you do. Ultimately, you have two choices once you do these things that require zero talent. You can go right or you can go left. Your choice is to do nothing. You can do nothing. You can keep going the path that you're going today. And you might be happy with the path that you're going today. Or you can do something. You can take action, you can make changes. And as we spoke to our baseball players, every day, in every practice, in every game, and as they started to repeat these 10 things that require zero talent to us, they started to believe it. They showed up on time. They started to wear their cup. They started to have their bags ready. They started to play with a better body language. And guess what? Our team went 14 and three, won the league. Our team won one of the tournaments and went to the finals in the other tournament. Was there a difference between us and the other team when the season started? No. The other team went three and 14. They didn't show up for practice on time. They didn't put in the same effort. 25:26 JC: And I'm not saying that the kids on one team are better than the kids on the other team. I'm just saying that if you do the things that you can do, that you take control over the pieces of the puzzle that you can actually control, you can drive your business to the next level. That's what successful Amazon sellers do. That's what makes the difference between one seller and another, is the 10 things that require zero talent. It's not about how much money you have in your bank account. It's not about how much resources you have and what course you took versus somebody else. It all comes down to the things that you can do that other people might not put as much effort into. 26:06 JC: Thank you, guys. If you have any questions I'll be around all day. [applause] 26:09 JC: Appreciate you letting me speak today. [applause] 10/21/16 Page 7 of 7

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