JIM COCKRUM'S CES CONFERENCE #IV 2016 Nashville, TN. Day 1: Brett Bartlett Q & A

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1 JIM COCKRUM'S CES CONFERENCE #IV 2016 Nashville, TN Day 1: Brett Bartlett Q & A [music] 00:05 Speaker 1: Alright, everybody up. Okay. You made it almost through the first day. Your mind is racing, you've got all these notes, right? So I want you to do one more thing, raise your right hand, stretch it up, now pat yourself on the back. You did a good thing today. Alright, you can sit down now. I'm pretty sure you're awake. Alright. Brett is up here with his PPI team, and it's gonna be a panel discussion with Q&A. So we're gonna let them take the reins and we're gonna... I think it's 30 minutes we've got. Alright. They're moving the pulpit. Is that scriptural? 00:41 Brett Bartlett: Under certain conditions. 00:42 S1: Under certain conditions. Alright. [background conversation] 00:50 BB: Hey, guys. [chuckle] Awesome. Well, for the panel, I really think we just kinda open it up to questions, and then we'll do our very best. Anybody in here have specific PPI questions? For the panel? Put your hands up and then I think they're gonna start passing round the mic. How many of you guys are brand new to PPI? That's a healthy amount for sure. 01:16 Speaker 3: I just have a quick question. When you went over your exposed review and train, I did not get to write down everything. 01:23 BB: What was that first part? 01:25 S3: When you went over your exposed review in your train... 01:28 BB: Oh gotcha, yeah. 01:29 S3: If you could just do a quick overview of a few of the key features for all three of those, that would be great. 01:35 BB: Yeah, sure. So, the whole point of what I talked about earlier was that you don't... So everybody's hand who just went up about PPI, you don't have to be the expert, right? Because of the resources that you guys have available through Jim's community, you can leverage those to build your own PPI team. So we talked about exposing people to the PPI process which is basically just like a filter. And then we talked about basically training them and I give you a couple key steps for training them. And you can adapt those. Those are just my steps. So, basically that was just 10/21/16 Page 1 of 16

2 repetition, repetition, repetition, repetition, and then reviewing it. And that's really where it becomes the most important and you have someone who you're constantly giving feedback to as far as their performance and how well they're doing in the process. 02:23 Speaker 4: Hi there. Quick question for you about sourcing. When you've found a product that you want to move forward with, what are some of the ways that you find appropriate sourcing avenues for that? 02:32 BB: Yeah, that's a great question, and that comes up a lot in our coaching calls. So, let me premise, because I saw so many hands go up about what is... Brand new to PPI. All PPI is, from like a very broad easy understanding of it, is it's a way to lower the amount of bad buys that we do as Amazon sellers. So all we're trying to do is use data to educate ourselves so that we make great educated buying decisions. So back to your question which is really about what's the process of sourcing in the PPI process? The first part, and I'm gonna just do this really in an easy answer, it's start very small. So when you're looking at sourcing an item, you should really only source maybe three of them, maybe five of them. I don't really care where you source that first amount from. Once you get proven data back then you can look, typically what we look into is wholesale opportunities, and then when we have enough proven data, a small type of private label order. That would be the exact process that we would go through, all through defined data. 03:45 S4: Where are you finding the wholesalers and the private label manufacturers and things like that? 03:50 BB: That's a great question. I wish I had some fancy answer to it. I'm going to be totally honest, Google. Look, when you have the proven data, it changes the dynamic because it almost flips the relationship a little bit. 'Cause you're like, "Hey look, I need 200 of these. And if you can't give me the 200, this person can." And you're not looking for this one specific type of product. You have a range because it's based off of search terms. Does that help a little bit? 04:19 Speaker 5: So, are you talking to the manufacturers or distributors before you even start the process to make sure you can actually get the item from them? 04:28 BB: No, we're not, actually. So that's a good question. We start with getting the data, and then once we get proven data, we would start talking to different suppliers and manufacturers. Not the other way round. Because a lot times, like we were talking about today, and Leah and Billy would attest to that, a lot of times, it's not the first couple products that you look up that work. So, it'd be wasted time and your lead on that manufacturer. 04:52 Speaker 6: Back earlier today when you were on stage, you were talking about your expose, train, and your review. On the train section, you said there's three things that you want people to do. The first one is you want them to create three to five listings per week and the third one was join and participate in the PPI Facebook group. What was the second one? I missed that and I'm sorry. 05:13 BB: Let me pull my notes out, 'cause it sounds like you have better notes than me. [chuckle] So I'm just thinking back real fast here, and I may have heard a voice over here. It's look at sponsored ads. 05:26 S6: Sponsored ads? 10/21/16 Page 2 of 16

3 05:27 BB: Look at sponsored ads, yeah. 05:28 S6: Thank you. 05:29 BB: Compliments of the voice over here. 05:29 Leah: Look at sponsored ads daily, was that. 05:31 BB: Good notes, good job. 05:33 Speaker 8: Hi. Say if I have some difficult to sell listings. What are the suggestion can you give to us to boost up the sales? I know you said that we can use some software to search for some search terms, but if I only have one or two product that I think, they are good, but somehow they just don't sell. I don't want to use the software in the beginning yet. There's some way to search products in the same category, what are the search terms the other products are using and that are selling well? Could you... 06:19 BB: Yeah. So, I think, really your question is, and this is a question these guys have both gotten a lot in coaching calls. Some of you guys have inventory that you'd like to see start to move and sell faster. PPI is not a silver bullet, meaning you can't apply it and then all of a sudden with every single product you'd like, it starts to make it sell. But what it can do is extract value out of almost everything. And the way I define value is in, you can still extract valuable search term data out of almost any product. Leah, for example, built an account for us that is with extremely competitive products, but we were able to, through the PPI process, apply it, and get the search terms out of it. And so when you're asking about not using specific software and stuff like that, you don't really have to start off with the software, but what you do have to start off with is running Amazon-sponsored ads. If you start to run ads on your products, you'll see a lot more of what people are really searching for, whether they're interested in your specific product, and what the level of competition is according to your CPC. 07:31 S8: Hi. I do try to run two ads, campaign, but what do I look? Like, what are people searching for? How to decipher those reports? 07:47 BB: Yeah. So, the coolest thing that I like to do... Well, first off, I definitely recommend, take the time to watch all the PPI videos all the way through, because really, a lot of the questions you just asked are outlined in that video, or in the multiple videos that are on there. But, I don't know if there's anything you guys wanna add on this, but one of the ways that I like to find possible search terms and the way we first started to do it, before we had any fancy software to help us, we'd literally walk up to people with the product and say, "What would you type in for this?" And people would tell you, "Well, I'd look for... I'd type 'pink plastic flower'". It's a quick hack to get another person's perspective of the way that they would search for your product. And then you could put those into your sponsored ad, and then see if people are actually searching that exact item in the process. But I definitely recommend watching all the PPI videos all the way through and following them step by step. Especially for everyone who raised their hand. I saw there was a lot of people where PPI is brand new to you. Jim did an awesome thing and added it to the pack course, so I highly, highly recommend you guys, even though it's brutal to listen to me for that long. Take the time to watch it and consume it, and if you're interested in it, really apply it. 10/21/16 Page 3 of 16

4 09:10 S8: I have a last question. So, in order to boost up the sales of certain products, in addition to find the search terms, what are the other strategy you think are most effective? 09:23 BB: Most effective for finding search terms? 09:27 S8: In addition to finding search terms, what are the other... Other? [chuckle] 09:34 BB: Oh, okay. Look, I think the first thing you always have to start with, is selling a very high quality product. And Jeff would attest to that, that if you're not selling something that's super high quality that someone's not gonna be super excited to get, you're already starting off on the wrong foot on that. And then number two, I don't think these are alternative strategies as much as just checking boxes of like, these are the basics of what you need to be successful on Amazon. You need a quality product. It typically needs to be at a price point that makes sense to the consumer. And then if you run the PPI process, that's really where you're trying to focus on traffic and conversions. And so, really sponsored ads are the... Here's the good news. 10:21 BB: Because this team's so awesome and they're really taking on the bulk of the PPI process for our business, we've been focusing on alternative ways to drive a lot of traffic, and I can tell you right now we are seeing some amazing results. But like I said before when I introduced Jim, Jim really holds a gold standard to, if we can't produce success stories with what we're teaching, it's not ready yet. I can tell you by this time next year, we're gonna have some awesome stuff for you that's evolved PPI, that should be able to give us alternative traffic sources, very happy customers coming to our Amazon listings and our products, but right now it's just not quite ready. So, I understand you want those alternatives, but right now I do truly believe Amazon is the marketplace. Sponsored ads are the way to get those customers that are very interested in your products. 11:15 Speaker 9: This may be a spoiler alert, because I'm asking very specific questions but, do you see a correlation between various marketplaces as far as numbers go, sales volume? 11:28 S1: Are you saying like jet.com versus Amazon? Or more like... 11:32 S9: Correct. 11:32 S1: Amazon versus Amazon UK? 11:34 S9: The former. 11:37 BB: We don't have a ton of experience on alternative marketplaces besides really ebay, and those things are a fraction of the volume that Amazon gets. It doesn't mean that you shouldn't diversify. We really take the approach that... Kinda what Jim was talking about today, when you do multiple income streams, you gotta master one first before you start to divide yourself up too much. But we are heavily looking into complements. Complements are probably a better word than alternatives. Complements to our Amazon sales channel, to where you're not 100% dependent on the Amazon machine. 10/21/16 Page 4 of 16

5 12:18 S9: Okay, great. I have one more half question. [chuckle] Do you have any recommendations for those that might not have the capital starting out and not have that data to go from themselves? Do you have a source that you like? I know, of course, MerchantWords is fantastic. 12:38 BB: Yeah. 12:39 S9: Is there anything else that you like to go by? 12:41 BB: So Billy actually has a pretty cool hack that... Well, both Billy and Leah do this. But Billy, would you mind sharing a little bit about, just quickly... She's basically asking, the way I understand it, what are some good ways to find possible search terms that are basically free? I know you do the search bar hack. You wanna explain that just real quick? 13:03 Billy: Yeah, so one quick way to just gather as much information before you even go through the process of finding products that you like, is just start to play around with searching organically on Amazon.com. That's what we're talking about, right? And so, let's say you went to Target and you saw a bunch of different products that you would love to bring to market on Amazon, and you wanted see what the type of supply and demand is on Amazon. So, you just start typing in, let's just say "dish soap" or something like that. And you wanted to bring a really high quality dish soap. So you start searching for that, and you just start playing around to see what type of options come up on the drop-down menu to auto-fill, or just think off the top of your head. 13:47 Billy: And then as you start to go through and see the organic as well as the ad products that are posted on the sides or on the top, you start to see like, "Wow, is that a number one seller search term, or is it that more off the beaten path?" And the more unique words that you add to your root words, so "soap" would be the obvious root word of that. "Dish soap" would make it a little bit more unique, and then "organic dish soap" would be the most unique. And then once you get past three words, like if you get into four or five, you're gonna just get really obscure data from that. So, that would be the answer. 14:25 BB: Cool. Does that help? Awesome. 14:30 Speaker 11: Hey, Brett, I love everything you're teaching us, [chuckle] but let me talk to your two assistants here. 14:34 BB: Okay. 14:35 S1: Your associates for a minute. Hey Billy and Leah, just curious in terms of, in talking about Brett's training process, create three to five listings a week, for you folks in your daily activity, when you're creating a listing, what are some of the triggers or processes, or things you do to begin and initiate the creative process of figuring out, "Hey, what is this listing gonna be?" or "The next listing I need to create," where do you come up with that? 15:03 Leah: Yeah, that's a great question. I think we get that a lot. Where do I start? And I keep telling people to just start and get something up there. And I know it might be easier said than done. But, honestly, I am always looking at different things and trying to think, "Okay, what is something that maybe people want but we can make and change a little bit, or maybe it's not super competitive on Amazon yet?" So then I just start researching. I think of something. I start researching it on 10/21/16 Page 5 of 16

6 Amazon. I'll do what Billy was just saying, those little words, like "organic dish soap". Start to see, "Is that something that there's a market place for? Is it popping up on Amazon?" 15:44 Leah: Do some research on there, click on different listings. Look at everything on Amazon. Look at how many results come up in that corner. Is there only like 50 results? Then maybe customers aren't looking for that. Is there 200? Stuff like that. And then once we do that, I go into wherever you wanna find your key words, you put it into your sponsored ad and that's gonna tell you if your hypothesis is correct or not. So, everything before you do the data is just a hypothesis. It's an assumption. The data's gonna tell you whether or not people want it, or people search for it. But the best thing to do is to just start somewhere and get it up, so then you can start to read data and analyze it and know what the customer wants, 'cause that's the most important part. 16:33 BB: That was awesome. 16:34 S?: I agree. I agree. [laughter] 16:37 BB: The part I love in Leah's answer is really, it's like "get started", get started, get doing it, otherwise it just seems like Mt. Everest. And so I know for these guys, that's what they really wanted: Get started, get started, get started. 16:52 S1: Just do it. I think I've heard that somewhere. Okay. 16:55 S?: My one addition that's helped me the most is actually be an Amazon customer. It's a weird thing that has developed for me. But I try to buy as much as I can off of Amazon, so that I'm constantly thinking like the customer. And then that in itself has just given me so many breakthroughs of like, "Wow, I searched for that and this is what came up." And I inevitably bought something completely different 'cause I needed that for my own life, but then it led me to think of different ideas. So the best way is to immerse yourself on both sides. Not just distinguishing yourself as a seller, but also be using the services that Amazon provides. 17:35 BB: Very cool. 17:36 Speaker 12: Just curious, you sell on ebay also? 17:39 BB: Yep. 17:39 S1: Have you noticed your process making an impact on your ebay sales as well? But also, have you noticed maybe your process works on Amazon, and it hasn't impacted any listings that you also sell on ebay? 'Cause you're doing multichannel, it sounds like. 17:53 BB: Totally honest answer, Doug would know more than that. I truly... I don't think I've ever created a listing on ebay. I know that Doug learned a lot... Doug's ebay experience helped shape PPI, and so I'll tell you this. I know that PPI was not that complicated to Doug because he had sold on ebay. And so, we haven't necessarily made an effort to take PPI and apply it to ebay. But look, PPI is not like, "I invented this thing that is truly revolutionary." It's really just using different tools that are out there to allow Amazon to tell you what customers are searching for. I'm pretty sure you 10/21/16 Page 6 of 16

7 can do that on every marketplace, but the way the levers that you pull and tweak are gonna be a little bit different. Honestly, we haven't migrated over to ebay, but we apply the same method of like, we don't like to buy a lot of things that we don't know are selling. 18:57 S1: He was also saying that he assumed that you did multichannel fulfillment for ebay. Do you run your ebay business that way or is it completely separate? 19:01 BB: Yes, we do run multichannel fulfillment. It's just a much smaller type of volume, but we love it. Look, we'll take 10 sales a day on any channel. 19:14 Speaker 13: Hi there. This may sound silly, but if you're new to PPI but want to get to the point of having a team, about how much time would you think from going from doing it alone to now you have a team? 19:31 BB: Yeah. These guys would actually probably be better... I'm gonna pass the mic to them. How much time they think it took for them to really understand it. 'Cause for me, it was a little bit different. I was trying to train them. So I think they would have a better answer for that on how long it took them to really grasp it. 19:47 Leah: It was definitely a process for me, and that was one thing I know I'd said earlier. I'm kinda envious that you guys get the opportunity to learn all of it first, 'cause it was... I mean, I definitely learned a lot through my process, but I spent more time understanding it, I think, because we were developing it at the same time. But I think it's dependent on how much work you wanna put in understanding each step along the way. Like understanding why or where is this data... Or reading the data and really, really taking the time to understand what the data means, and looking at it, and understanding that. Because if you're just doing the step by step without thinking it through too, you're gonna get lost along the way. And it is. In his videos, it is a very step by step, but I would just recommend making sure you completely understand the process and what you're doing before you bring someone else on. Because you'll find that it's pretty difficult to teach someone if you can't explain, "But what does this data mean? I see these numbers, but what does it actually mean?" So I guess, I don't know if I could give an exact time. 21:00 BB: How long have you been... Both these guys do coaching. If you had to average it out, I know it's a little bit different with the coaching, how long... 'Cause I think this will help answer her question too. What's the average amount of time in hours, almost breakdown, or maybe a little bit elongated time frame, of seeing a coaching client get to the point where you know, "Okay, this person's really starting to get it?" What was that timeframe on average? And then Billy, I'll let you answer that too, 'cause I know you have those coaching clients. 21:28 Leah: I think it depends, but I've seen... So we do hour sessions, and depending on where they are... So, if we're just starting from the beginning, we go through the listing creation process. I'd say that could take like two sessions or so, just to explain it all the way through. So that would be two hours. And obviously, I recommend going on their own and going through that process of creating a listing so they understand what that means. And then, the sponsored ad part is pretty simple, pretty quick. I'd say it's pretty self-explanatory. You get that up and you wait for the data. I think the data part, reading it, takes a little bit longer to understand just because it's just analyzing different things you've never seen before. I haven't had... Yeah, I think that changes. You might have a better answer with the data reading. I don't know [22:17]... 10/21/16 Page 7 of 16

8 22:21 Billy: Data would be a hard thing to explain in this atmosphere. But I agree with everything Leah said. I would also include that we space out most of our calls over two to three weeks inbetween the hours, which is really beneficial. Because, think of it as we're providing a course for you to digest, and if you went to a university, the professor wouldn't just say, "Read the entire textbook, and then take the test next week." So we're saying like, "Hey, we're gonna give you a piece of information now, study it, understand it. Come back after you've implemented that in two to three weeks after you've seen progress." And then our next hour long call is scheduled, so if we did our first call on a Wednesday, two Wednesday's later, we would talk about that. And they'd be like "Wow, I created my three to five listings per week as best as I could." 23:14 Billy: A lot of people are like, "Oh my gosh, I have a million other things going on." So sometimes they put PPI to the side to manage everything else. But it really is a week by week thing, not like a, "Oh, I'm gonna invest an hour today, and then I'm gonna feel like I've got it." It's like you need to let it mature and process, and as you go through the process, three, four, five, six, seven, most of my clients, once they've made their third listing and they've actually gone through the process of waiting the multiple weeks to see the ad revenue come in, see if there's any sales, then they're like, "Wow, I see it. I see the full picture of why we do this." 'Cause worst case scenario, you've collected data that you can now branch off and try a completely different listing. 24:02 BB: Yeah. And I know when I was training... I think that's a great question. So, really it's, how long does it take to train someone on PPI? Glen was a great example because she was brand new to Amazon in general. But she's very, very capable and smart, and so she, I'd say, took about a month of training, and then from there, she was able to take it on her own. 24:23 S1: With that from being just solely doing it on her own to now, how do you know when you're at the point to bring on and expand to a team to start... 24:35 BB: Look, my honest answer is, the earlier, the better, because in my opinion, PPI is infinite. It's like saying, how long will it take to sell every product that someone wants? It's like taking on an elephant. And so, the sooner, the better you can get someone to come along side you. You're gonna have to give up something in some capacity on that, right? But truly, honestly, sooner the better, if it's the right person. It has to be the right person. Hey, Jeremy. [chuckle] 25:13 Speaker 14: We talked yesterday, and I've had a little bit of success with PPI, but one of my things I've done is I've created a lot of low end, lower priced bundles, and one of the things you told me yesterday is that I need to work on creating a higher average selling price. For those of us that have created bundles, 'cause I think I start everything around the $19.95 point and I'm making some money, but I'm not making much. What are some thoughts about making higher end or higher priced bundles? Would you suggest more components? Would you suggest higher end things? Any thoughts along those lines? So instead of having an average selling price of $20 or $25, maybe a bundle that would be... I know you guys have got probably bundles and products you sell that are $50, $100, $200. Any thoughts on creating something along those lines? 26:02 BB: I always come from the standpoint, like less is more. And so, if you're just starting off with PPI, again, it's just a process to find the valuable search terms that are out there. If you go too 10/21/16 Page 8 of 16

9 big, too complicated, too fast, you're really gonna go nowhere fast. So I know for these guys, when they're creating bundles and stuff, if it gets too expansive, we're not able to actually get true data back, and so your question really is, do you put more stuff or just more high quality stuff with a higher perceived value? I'd vote with find stuff that has a higher perceived value. Yeah. 26:42 S1: And the other question that I wanted to ask goes back to building a team. And I asked Leah this over lunch or during the conversation station. If I wanted to expand, what is a fair way to pay either a VA or somebody who loves data, loves research and the IE, the typical internet marketer? What is a fair way to compensate somebody? Is it for finding per thing, per hour? What has worked for you? I know it's also gonna depend on the person. Does this person might like video games. Does this person not... But you need to certainly compensate them monetarily. What has worked for you? 27:17 BB: Well, yesterday we talked about the power of constraints. Everybody's at a different place in their business, and so I like... So here's an example. When we first started this business, we started it with $400. Truly, I was not at a point where I could've taken on a team and employees. We would have been out of business in three days. And so, I don't necessarily like answering that answer with like, "Hey, here's what you should pay someone." I think you should assess your business. And it's true constraints as far as cash goes, 'cause cash is usually one of the bigger constraints. My best answer to someone building out a PPI team right now would be, find someone who wants to partner with you, to start. 28:06 BB: It doesn't have to be the whole thing, everything that you do, but find a creative solution. Jim's the master at that. Find a creative solution where the person has some sort of ownership into the process. Does that make sense? That's the first person you'd want on your team on that. I would assume for the majority of where everybody's at in that. Look, if you start to bring someone in and it's just like straight hourly and you're still building up your cash flow, that could put you in too tight of a spot because of the learning curve of PPI. 28:38 Leah: I agree with that. One thing, as a part of Brett's team, and I would say too, if you're able to find someone who's excited about starting something as well in wanting to help you out, I think that is very valuable because you want someone who is going to wanna do the work with you. And one thing is, I never thought Amazon would be my work. Honestly, that was not my life plan for me. But I will say that I respected Brett a lot. We talked about mentors. He's definitely one of mine. And I knew that if I did this with him... I've been there for a while and we started in a different way, for sure. But I've learned so much, and I've had opportunities that I never would have thought that I would have. So give people that opportunity. Tell them this could be a great thing for them. And if they're excited and they wanna learn, it could be a great, great partnership. 29:46 BB: Okay, cool. Yeah, Jeremy, basically find someone who is in it for... Look, PPI is not good short term. It's good long term. So whoever you have coming in on that, make sure they wanna be in it for the long term. 30:00 S1: Okay, I vote that Billy stops nodding and starts talking. Anybody else? [laughter] 30:05 S1: Okay. You can't just sit there and "Amen, Amen, Amen". Okay. Who's got a question? I 10/21/16 Page 9 of 16

10 think we've got a good 30 minutes. I'm blind, sorry. Okay. 30:18 BB: How many of you guys are gonna go back and watch PPI now when you go back? Cool, awesome. I want to see all of you guys on the Facebook group. Give us like a "What's up? Hey, we got our questions now. You opened up Pandora's box, Brett." 30:31 Speaker 15: Hey, Brett. I have a question. It's about some... As in doing businesses, it's always about the 20/80 rule. So 20% of your product may be generating more than 80% of all the revenue. So if for some product they are selling like 50 or 60 a day, with a pretty decent profit margin, and have the potential to really sell more than 100 or even 200 a day. So for this type of product, do you have any suggestion how to reach out or how to scale it up? Like you need to look for more keywords you put into to fit this listing? Or is there any way or suggestion you can single? 31:21 BB: I'll give my very... Do you feel comfortable answering that one? I saw you... Okay. This is me. I loved what Jeff said yesterday during the group. He said, "There's lots of different strategies when you're selling on Amazon." One of the strategies is to take a product and see how big you can grow it. So you're talking about 60 sales a day. Can I get it to 200 sales a day? Right? That's basically what you're asking? Okay. Our strategy isn't exactly like that. Our strategy is more of, "Okay, how long would it take to take this item from 60 sales to 200?" So, let's say "Okay, that's going to take four months." In those four months, it's gonna take, to go from 60 sales to 200, that's an additional $3,000 a day. This is literally the math that we do. Is it worth spending the next four months trying to get that product from 60 sales a day to 200, or can we find five other products in that time frame that equal that same amount of revenue? 32:26 BB: Typically, from what I've seen, 'cause we have some monsters in our account, it is much more difficult to take an item that has matured and increase it and capture the entire market for it, than it is to find five other complementary products. Does that make sense? 'Cause really, you don't necessarily care that much about that product. You want to just increase your revenue, right? At the end of the day, that's what we're all trying to do is increasing that revenue. So we found that it's a quicker hit to expand out, go wide, not so much like deeper, deeper, deeper, deeper. Mainly because my argument always with someone who would challenge me on that is this: You may have captured the 200 sales a day now, but what happens, and it will happen, when someone comes in and targets you on that and wants to go head-to-head against you? If you start to spread out this wide, it's just so much harder for someone to really make your business go upside down. 33:27 Speaker 16: I'm assuming, based on the way you do business with your team, that you're all in a building or something together. Is that correct? 33:35 BB: Yes and no. So the answer is yes, we do have multiple offices and warehouses. Last year, it was funny, I'll let you get to... Is that you question? 33:47 S1: Well that was part of it, then I was just gonna back that up by saying, for those of us that aspire to do that with the team but yet don't aspire to have to be in an office everyday and still do some things remotely with a team, with this business model, is that possible or probably not a good idea? 34:02 BB: You know what, I'm not even the right person to answer that. Do you guys feel comfortable to answer that? Cool. 10/21/16 Page 10 of 16

11 34:09 Billy: The short answer is, I'm probably in the office like two hours a week. And we have a main office where we do all of our big meetings in, so that when we bring people in who we want to show them what we have and what we're capable of doing, we'll bring them in and sit them around the big office chairs. But I do my best work at home. 'Cause it's like my happy place. I've got my dog there, I've got my fountain that's bubbling water, and I'm just in my zen zone, and I can crank out so much work. So if you're ever talking to me on a coaching call, you're probably calling me from my house. I don't do my coaches' calls from usually anywhere else. But the exciting part about having those locations where we can all meet up is then when we need to collaborate and get stuff done, we can all meet at one central location and just crank it out and then go back. 35:03 Billy: It's a crazy thing for people to comprehend when they leave their 8:00 to 5:00 job and they're like "Oh, what'd you do today?" I'm like "Oh, you know, my dog Bella and I did some Amazon stuff." And they're like "Dude, you have the coolest life." It's just I'm excited to be a part of it. A book that I read in college that I really liked, and I don't want to butcher the title, but it's called "Who Moved my Cheese". If you actually live your life by that, and you don't get caught up in like marrying a product, or a specific idea, or like saying you have to live or die by this specific thing, and you try your best to step by step, day by day, live that, of just knowing that if one thing falls off, you can just replace it with five other and live in that mindset of abundance, it just is such a more fulfilling life. So, sorry to go philosophical on that response. 35:58 S1: I appreciate it. The reason I ask that is because, like I said, there are some of us, I being one of them, that would eventually like to do that, but I don't really... I like working out of my house, and I was just thinking with that business model, it might not be conducive because you have to constantly be talking about data and things but how do you do that if you're not altogether? So, that make sense. 36:20 Billy: Skype allows you to screen share. And so, as you get more comfortable with working with partnerships or employees, especially people who we've benefited from all living in a similar area. So it's harder to do when some of your employees or partners are overseas or international. But some of the most enjoyable calls that I've had with some of my coaching clients are from people from overseas. 'Cause then I spent half the time trying to explain to them how they can try to do PPI in a better way. But then I also ask a bunch of questions about their culture and their history, because then I get to learn from that process. And it's like, when you take that into consideration, you also get to learn as much as you're being the coach for them. So they're coaching me as much as I'm coaching them. 37:19 Leah: I would agree completely with everything Billy said. I think one of the biggest benefits of what we do, and one of the reasons why I love being a part of it, is because once you get to a point, it gives you a lot of flexibility. And I know everyone works better at different times. I'm not an eight hours sit in an office kind of a person. I like working at night, in the morning. And I like my free time. So, I think this is such a great business plan for what we do, and it works really well with me because you do have that kind of flexibility, and you can be wherever as long as you have a computer. 38:00 BB: Yeah. Millennials really like that flexibility. So, you can lock down a lot of them if you're like, "Hey look, you can work from home, you can work when you want," kinda building those parameters, so I've seen a lot of them go like, "Hey, I kinda like that". 10/21/16 Page 11 of 16

12 38:13 Speaker 17: Okay. Since we have our bookkeepers and our tax people here, let's talk particulars. Do you have your business set up? Do you have employees? Do you have contract labor? Do you have the VAs? How do you... 38:22 BB: Yeah. These guys are all in our payroll. We didn't start that way, so I don't think that you have to stress about that right away. We're a corporation, oh, we're actually an S corp. And then we have everybody getting W-2s and on payroll. So, that helps. But definitely don't start like that. Get to that point. 38:42 S1: Thank you. 38:44 Speaker 18: Hey, Brett. All products have product life cycles. My question is, as you're gathering the data, are you all using this data to determine where in the lifecycle this product is, and is there an example where you've taken something you've sold in the past and say "Hey, this product is at the end of its life cycle. We're not continuing selling this anymore"? 39:04 BB: Yeah. I like that question. You can put a grade to each search term that you discover. And so, the lower grade ones that are less valuable are ones that maybe are gonna have a shorter lifecycle or maybe are heavily seasonal. I'd say 80% of our valuables, or 80% of our search terms are valuable because they don't really hit like a heavy product lifecycle. If you discover a search term that's a little more... 'Broad's' probably not the right word, but it's a little bit more applicable to a lot of different types of products, you'll actually find the search term doesn't have a lifecycle. The product currently does. So, let's just use... This isn't gonna be revolutionary to anyone. Let's use the word "kid's toys". If kid's toys was super valuable, it's not gonna lifecycle out. At some point, someone's not gonna go, "Man, kid's toys, no one wants to buy those." But maybe whatever product you're using to fill that, maybe it will have a lifecycle. So, we find that our search terms are more valuable than the product themselves, and that's why we really emphasize that. 40:22 Speaker 19: So, you said that you have employees. That these two individuals are your employees. And that you pay them, maybe a salary versus... And then they get W-2s. Do you also then provide them a bonus? Suppose that... 40:38 BB: Man putting pressure on me up here. [laughter] 40:42 BB: Look... 40:43 S1: Suppose that this individual, the gentleman on your right finds a super product that is going to sell gazillions of dollars. 40:45 BB: Well, they're gonna want a bonus now, for sure. Yeah. Look, I'll tell you my dream situation, okay? And I think this is where when I talked earlier about the trust factor, trust cuts both ways, okay? I have to trust them, and then they have to trust and believe in me. And that's why I've said before, nobody likes to work for someone. How many of you guys just love working for someone and getting bossed around? Yeah, zero. That's why you're all here. That doesn't really change. People love to be a part of something. And so, my dream situation for these guys, is that 10/21/16 Page 12 of 16

13 when I look at our business, I look at it almost in branches. My dream for them is that whatever they're passionate about and they have visions for, that they get to completely take that thing over and run it, and make a living that they would've never dreamed of. And my benefit, is, "Hey look, I get to be a part of this story." I think you have to paint a situation like that, that's long term, that gives them vision to grow into, but you're also realistic of the time like, it took almost two years to train everyone. 42:02 BB: If I would've been shelling out bonuses and everything like that, it would have been like this, "Hey, here's your bonus. Bad news, we're out of business." So, there's this constant dance between it that you have to paint this long term vision, but at the same time, reward them in the short term so they want to go the long term. So it's definitely a dance. I think it's unique to each situation. We try to be very creative in how we reward everyone. Like Billy loves his flexibility, Leah loves her flexibility. Doug actually is putting together an amazing brand right now around music. It's just gonna be incredible. I actually think it's gonna be the biggest arms of the business, and Doug loves music. So, my goal was like "Doug, what do you love?" "I love music." "Okay, let's build something around that." But it's Doug's thing, it's not really my thing. I'm just kind of a support. So, I think if you get too fixated on, "Here's what you're making, here's your bonuses, here's how you level up," it can work for the short term, but if they're not bought into that long term vision that you are there to serve them, then it'll still be a short lifespan. 43:06 Billy: I'll tell a quick story to answer it from the other perspective. So the year is 2013, and I'm a financial counselor for a university, and I'm just not enjoying my job there. And so I go to Brett and I say, "Hey Brett, you know, we've been garage selling, we've been retail arbitraging, online arbitraging, but I want to be a part of something bigger and join your team." And Brett's like, "Awesome, man, let's do it." And he could've just been like, "Alright, be my employee and I'll pay you an hourly and do whatever," and that's not what Brett did. Brett brought me alongside and partnered with me on one specific liquidation deal, and it was this toy buy of these little kid Zhu Zhu pets. And we were like, "This is the best deal ever. It's so cheap, it's amazing. We're gonna buy all the units." 43:56 Billy: And so, we bought all the units, and it was like 3,000 units of these little tiny Zhu Zhu pets. And I told Brett, I remember it and I'll never forget it to this day, I told Brett, "Oh, we'll just keep them on the truck and we'll process it and get it out the next morning. I'll stay up all night and I'll do it." And Brett's like, "Billy, I saw that amount of units." And so through that process, I had to learn how to do Amazon, and it took me like three months after getting off of work at 5:00 PM from my other job, and I would work from like 6:00 PM to 9:00 packaging all 3,000 units into different bundles or different... And we were making brand new listings, and that was a time where we were just jumping on and trying to sell off of other people's listings. And so through that process, I had to teach myself from scratch how to make brand new listings. 44:48 Billy: And when it was all said and done, and it took a year past multiple fourth quarters, we sold through all of our units from that buy. And in my head when I first signed up with Brett, I'm like, "Oh, this is gonna be the easiest X amount of dollars that I've ever made," and whatever. It was not, but it was the fact that Brett wanted to partner with me, and that was the first time that I actually put my money where my mouth was because we split that initial liquidation by 50/50, and then we split the profits 50/50. And since then, it's morphed and transformed into many different things, but that was the first time that Brett wanted or agreed to work with me because I was interested in doing stuff that he was doing with the Amazon platform and other platforms. 10/21/16 Page 13 of 16

14 45:39 BB: I like that story, and thanks for all that work, man. Appreciate it. [laughter] 45:43 Billy: That was pro bono, I didn't get paid at all. 45:45 BB: He didn't get paid hourly at all on that. 45:46 Billy: None. 45:47 Speaker 20: Brett, I also have employees that work from home, and I was just wondering, how do these guys keep their time? Is it just an on your honor system? Or how do you all do that? 45:56 BB: Well, I'll answer it from my perspective, mine will be quick. And then I'd love to hear... I'd actually be interested on their answers. [laughter] 46:03 BB: So, I kinda have one rule. I will give you ultimate flexibility as long as you perform. And they know that. So, it's like, "Look, I don't care what you do during the day." I see it from this perspective. I don't like to be told what to do, I don't like to have to work in certain hours, but I will always perform. Does that make sense? 46:25 S2: Yes. 46:26 BB: You don't have to worry about that with me. And so, I like to give that privilege to other people, but they can't abuse it on the other side. So, it's really just one master rule for me, "You have ultimate flexibility as long as you perform." But that's my answer. I'd love to hear their answers. 46:44 Leah: That's, I think why I like it so much 'cause I want to be... Like I said, I'm not and eight hour, strictly sign in and clock out, whatever. I do it on my own timing. But I wanna be held accountable for what I'm doing, and I respect Brett and I respect what we're doing. So yeah, we have projects, we have things that we're working on, and he has always made a point to say, "Look, I don't care. I'm not gonna micro-manage you. I'm not gonna watch you do your thing, but there's a standard that you're held to and you need to do it." And so, it's all about performance. Which I think is how most people should be held accountable. If you're not performing and you're not doing your job, then... Because I think some people work for an hour and can do it. Some people need more time. I don't think that this kind of system works that way, so I think it's all situational. So each person has their own system for the way that it works best for them, and I think that's why we are so successful, is we have built a business that we found a way that works for each person in our company, which is a really cool system. 48:03 Billy: Yeah, I totally agree, and I think it comes from just a point of being authentic both as the employer and the employee. And you need to have an open door policy on, if at any point you think that you're being undervalued... Just like the process of, "What if I deserve more compensation for this?" And I think that when you partner with people... 'Cause I feel more like a partner than an employee, even though on paper, it's more of an employee-employer relationship 10/21/16 Page 14 of 16

15 right now. But when you come from that authenticity of knowing that Brett has my back and I have Brett's back, and I wouldn't ever say, "Brett, this is what I need to survive and this is what I'm worth," 'cause then Brett would just say, "Well, you know that'll take away from our ability to scale and grow." And I'm only here because of what Brett and Scott and all of the people that surround us have been able to build. I'm just one important piece of the puzzle. 49:11 Billy: So if you can find that in your friends, family, or contacts that you've built in your own life, that's a much better place to start for me personally, than trying to hire someone off of Google, or trying to hire someone off of just some random site that you don't know. 'Cause you need to have that personal relationship. You need to look them in the eye and say, "Do you have my back? 'Cause I'll have your back," type of thing. And that's how you grow a team properly, and that's why Brett has kept our core group from the beginning. There would've been plenty of times where a different boss would've said, "Man, I could replace such and such person so that I can bring in someone cheaper and quicker and faster," but then it's just not scalable on that team relationship. At least that's what I've seen. 50:03 BB: Yeah. People call us the mafia [chuckle] 'cause we don't let them leave, basically. But no, I love listening to their answers, I'm truly honored in that process, and I hope that gives you guys visions on how you can serve others and build just awesome win-win situations. 50:19 S1: Great. Last question was over here somewhere. Yup. Can you stand up there and ask it for the camera? 50:24 Speaker 21: I still work a full-time job. I have a couple of people that list part time at home. Any thoughts or advice on how to build a team, still working 40 or 50 hours, how to manage that, how to grow that and scale that up? 50:37 BB: I know that very well. That was my life for a year and a half, almost two years, on a very, very... I always say, there's usually two constraints. Money or time. I was lucky enough to have both constraints. No money, no time. So the, by far, most important factor and advice I would give you, is find someone who you can partner with. I partnered with my in-laws, and there is no possible way that I would've ever even gotten out of just going garage selling on the weekends, making some extra cash without partnering with them. 'Cause when I was working 40 to 60 hours a week, they were working 30 to 50 hours a week, growing the Amazon business, building that bridge for me to be able to leave and focus on that full time. Would've been literally impossible. So I highly, highly recommend, find someone you can trust and that's excited to build something awesome with you. You just have to go up a little bit in the process, but I don't even think about that, 'cause the story has just been amazing. 51:53 S1: Okay, Brett, we have our final five minutes. If you wanna just give our closing statement, wrap it up for us. We're about ready for a break. 52:00 BB: Yeah, sure. Hey guys, I think the best way I can close this is, when people hear this story and get to see the team and stuff, I think one of the coolest things you could start to develop while you're here, and while you're on your way home and stuff, if you were to talk to someone who potentially was gonna partner with you or work with you, what vision can you paint for them? Does that make sense? What could you get them excited about doing with you? Not for you, with you. If you don't have that, you got some work to do. Does that make sense? You'll get people who will 10/21/16 Page 15 of 16

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