The first month of the Q4 is nearly at an end so its high time that I give you guys an update on my 2018 goals. There have been a couple of snags along the way but I remain optimistic about the coming months and what we’ve got planned for the business.
And now, here’s where I’m at.
1. Develop 50 new products
We’re currently very far behind because of the fact that we were forced to make changes tie due to existing market conditions. The advent of tariffs has resulted in us canceling further product launches in favor of having a more sustainable cash flow.
2. Launch on Amazon Canada, UK, Germany, France, Italy, and eventually, Australia
We’re already on Amazon CA and also Amazon UK. However, sales figures for Amazon UK have been lower than what we expected. Amazon CA remains a bright spot though.
3. Optimize our Amazon PPC listings to increase sales by an average of 50%
On-track but the whole process has taken longer than expected. However, I expect that we’ll get this done before the end of the year, at least for top listings.
4. Optimize Amazon PPC
We’ve managed to drop ACOS from 30% to under 25 %, this figure represents 5-figures a month in savings for us.
5. Implement the concepts in the book Traction in our business
6. Reach $10 million in revenue at a 10% net profit
Again, market conditions will mean that we won’t be meeting this goal. I’m hoping that we’ll end up somewhere around the $7 million mark, depending on Q4 performance.
7. Lose 12 lbs
To date, I have already lost between 8 -10 lbs from doing intermittent fasting and going on 3-mile hikes.
8. Record 100 episodes of the EcomCrew podcast
We’re already on episode 193 and can end up doing up to episode 198.
9. Launch a new version of ecomcrew.com
10. Launch at least 4 new courses
We’ve now done this with the recent launch of the Facebook Messenger course.
11. Speak at 4+ industry events
This has also been accomplished.
12. Hike 80 miles of the Pacific Crest Trail
This didn’t happen but I did go on a 3-day trip backpacking and hiking trip to Mammoth Lakes.
13. Take an epic 2-week vacation
We went on a great vacation to New England. We also visited Maine, New Hampshire, and Vermont and checked out the cities of Quebec and Montreal. This brings my total to 48 states visited.
14. Visit the Philippines office at least once
Visited the guys out there in April. I was planning to go back in October but that fell through. Planning a trip there next year.
15. Read 4 books
For this quarter, I read Phil Collins’s memoir Not Dead Yet.
16. Handoff my Facebook ads to other people within the company
Was checked off but now it’s unchecked again because our marketing person left. We’ll have to go back to the drawing board on this to rethink things because what we’re doing at the moment isn’t working.
17. Come up with at least one new tactic that no one else is doing
Haven’t had a whole lot of time to do this but we’ll see what happens.
18. Never lose sight of the bigger picture: create 5-star products that customers will truly enjoy. Enjoying coming to work every day and ensuring that we creating jobs and opportunities for employees ensuring that they’re excited to come to work every day.
I have been getting positive feedback on our products and from our employees.
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Full Audio Transcript
Intro: This is Mike, and welcome to episode number 193 of the EcomCrew Podcast. So glad to have you guys with us today. Finally feeling a little bit better here and hopefully, I can get through a full 30 minute podcast without coughing a whole bunch. I had either sinus infection, bronchitis or a combination of both on the heels of being in Vegas and just kind of getting run down from that trip. And it's been just kind of hanging on, but definitely feeling a lot better now and looking forward to doing this podcast.
And today we're going to be talking about 2018 goals, Q3 edition. And before getting into that, I just want to remind you if you go to EcomCrew.com/free, you can check out all the free content that we have to offer over there. That's again, EcomCrew.com/free. Right on the other side of this intro, we're going to get right into Q3 2018 goals and the progress there and how things are going.
Mike: All right guys, welcome to this edition of the EcomCrew Podcast. As I mentioned, we're going to be going over 2018 Q3 goals today, going down the whole list of 18 and checking in on progress of where we're at. Some good news, some bad news, but a lot of stuff to talk about here. So let's dig right on into it.
All right, goal number one. And just real quick before I get into these, there's a 2018 episode I did about this. I will link to that in the show notes. It goes over all these goals when I announced them at the end of last year or the beginning of this year, and then each quarter I've been doing a review. So, you can go back and listen to Q1 review and Q2 review. And this is going to be Q3 review talking about kind of the progress we're at with this.
So anyway, now that I got all that out of the way, goal number one, develop 50 new products. This is definitely one that we are going to be very far behind on for the year. We've had to take the executive decision, I guess maybe it was forced upon us in some ways to greatly change this goal based on just market conditions and timing and things that are going on mostly the tariffs. So, it's definitely got me a little bit rattled. We've talked about it on several different episodes of this podcast.
It makes it very difficult to plan an inventory based business when you don't know what the cost of your product is going to be when it hits the border. And it's something that's kind of again, caught us completely off guard. We did not see this coming in any way, shape or form. It's been very difficult for us so far this year, just because we're paying a 10% tariff that we weren't planning on paying and that is going up to 25%. So, I think the prudent thing to have done and that we are doing is to just cancel all new product launches and make sure that we have the cash flow to sustain what's going on in this environment and being just in a better position cash wise, and not pushing the envelope like we had been.
Launching new products is a pretty costly endeavor. There's the just the R&D part of it going to find the product, going over to China and dealing with the manufacturers and back and forth with sample fees. I mean, that's all the relatively cheap costs, that's the time that you invest and some of that sample fees. But the real cost comes to the advertising. When you're first launching a product, there's probably coupons or you're emailing your list or running Facebook ads, or any combination of all that. And we try not to run a lot of coupons for our launches, but a lot of them or some of them definitely require some discounting.
And then there's also working with influencer marketing and other things and all this stuff definitely adds up. There's definitely a pretty sizable upfront cost to do all this, plus the cash that you put to work on a brand new product typically has a longer payback period. It's not as efficient. So, all these things added up. We had some products that we had already ordered, placed order deposit on. Obviously, we’ve seen those things through to fruition. But any product that we had not placed an actual deposit for and actually ordered it, we just put it on hold for right now.
We have a bunch of products that we do want to launch, and we would have easily hit 50 this year if it weren't for this issue. But again, I think doing the right thing here is for us to have put that on hold. So, I'm not sure the exact number we're going to end with this year, but it's certainly going to be a lot less than 50, probably closer to 25. Most of the things that we were looking at launching were loaded towards the third and fourth quarter, and that's just kind of coming to an end.
So, I mean it's unfortunate. I mean, the fortunate part is that it allows the business to throw off more cash in a much sooner timeframe than we were planning on. So, from that perspective, things have been good. All right, number two, launch on Amazon Canada and UK. Obviously, we have already done that. Both Canada and the UK are up and running and have been now for most of the year. We actually got this done very early in the year.
But the sales numbers have been a little bit lower than we expected in Canada. We’re probably — we were expecting to do about 10% of our overall sales, we’re probably more like five. And we expected way more than the UK and the UK has just been struggling. So, to this point I would say, it has not been worth it for us. The amount of time, effort, and energy we've put into being in the UK has just has not been worth it. Canada on the other hand has definitely been a big bright spot for us this year.
We're continuing to work on the UK stuff. I think a lot of it just is the cost to get it there. So we have to mark the product up by that, and then the difference in the exchange rate, and then the duties and stuff to get in there. It definitely is making it difficult for us to get any real traction in the UK although we do have a couple products that seem to have taken off. Again, it's just nowhere near where we were hoping to be at.
Optimize listings to increase sales by an average of 50%. We're well on the way to do this. This has definitely taken longer than I expected. I thought that this would be done earlier in the year. But I do think that we'll have this done before the end of the year at least for our top listings. And it's interesting because I've talked a lot about this internally. I've talked about it with friends. Actually there was a snippet about this on the Ecommerce Fuel Live review like recap podcast I did very early in the year. You can go back and listen to that.
There's like a little segment in there where I'm talking to my buddy Dana about how this stuff in business should just be cookie cutter. Once you figure it out once, it should be so easy just to stamp it again and repeat. But it has not been that way, and especially with something like this where we're trying to optimize our listings. It definitely takes a lot of fingers in the pot to get this right, to get the proper images, to get the right infographic overlays, to get the right title, to be running Splitly on it, to be doing enhanced brand content, to get a video added to it.
So it's definitely been more time consuming and frustrating from I wish that this was done aspect. But we are on track to actually get it done by the end of the year because we have a little bit extra time here to do that. But the good news is because we aren't focusing as much on launching new products, it is allowing us some time to go back and optimize some of these listings even more. So, there is a silver lining to some things, that's for sure.
Number four is optimize Amazon PPC more effectively. We've definitely done that. We have dropped our ACOS down from 30 like 30 point something, it was 30 and changed to just under 25 now over the course of the year. This number represents five figures a month in savings for us. And the number of sales have not gone down anywhere near commensurate with the amount of spending that we've reduced. So, it's just been basically money to the bottom line that's definitely well received.
Number five was to implement Traction. I put several episodes about this out there. If you're new to the podcast, I encourage you to go back and listen to all the episodes on Traction. I will link those in the show notes. There were between three and five of them going over step by step how we kind of got everything on track within our company because we're using Traction by doing goals setting and being better organized and making sure everyone's on the same page. It's definitely been a huge difference within our company. And that that one I would say is checked off and done.
Number six is to generate $10 million in ecommerce sales at 10% net profit. Because of what I was talking about earlier, this isn't even going to come remotely close. We’ll probably be somewhere around the 7 million mark is what it looks like it's going to shake out at, maybe a little bit less depending on how strong the fourth quarter is. But not having all the new products we're planning on having is by far and away the biggest contributor to that lack of growth that we had been experiencing in the past. And it is frustrating because I was really looking forward to hitting that number.
But I'm even more interested in making sure that we don't go bankrupt. If there were some other tariff things or things that happened that we can withstand that rocky ride not knowing literally where things are going, because things are completely up in the air and they do change very fluidly. It seems that the stroke of a tweet at two o'clock in the morning, next thing, we have 10% tariff on all the rest of the stuff that's being brought in from China. Or maybe it's 25% on everything else. Or maybe the 25% number that goes into effect on January 1st turns into in the 30%, who knows where it will go.
And again, just be in a better position, I'd rather do 7 million in sales and still have a business that I can come back to on Monday morning, than try to aim for 10 million and have a 50% chance of going bankrupt because like there's a lot to cash is king, these cliché sayings that talk about cash and cash flow. And very quickly we can be in a bad spot.
Running a 10% net margin business, it doesn't take a lot for cash to just completely dry up and then be in a really awful spot. So that's kind of where we're at so far for that this year. I think we're pretty much because there weren't any new products to launch and we know what we can expect from Amazon CA and UK throughout the rest of the year short of something else really drastically bad going on, which I don't want to jinx myself, that should be where we end up at for 2018.
All right, the next one on the list here is to lose 12 pounds in 2018. I've been under this 12 pounds already this year but back above it a little bit right now but not by much. I've lost between eight to 10 pounds from when I first created this goal, and it shouldn't be much of an issue continuing to slowly lose some weight. It's just been mostly lifestyle change. It's been eating — first of all, I've been doing intermittent fasting which has helped significantly. So, I very rarely eat at all before noon or at all after 8pm. So I'm only eating on an eight hour window which is more than enough to get by.
It took a little while to get used to not eat breakfast in the mornings. We can have a whole debate on whether breakfast is the most important meal of the day or not. I don't think that it is. I think that that's just bad old dead science. We were also told to eat lows of white bread a day as well was a part of the food pyramid that it was a staple, and we know that that's now silly. But however you do it; I think intermittent fasting is definitely healthy.
There's a lot of science behind that. I've read a lot of stuff about it and it's definitely helped me because I haven't really done a whole lot more than just eliminate a meal in addition to hiking about three miles a day, which doesn't really end up losing you all that much weight. You're not burning tremendous amount of calories, just taken a fairly fast paced take, but it does, it definitely helps. It helps with metabolism and things like that. It's also helped just clear my head. It's something that I've enjoyed doing pretty much every single day this year.
I mean, there's been some exceptions obviously. There's been a couple of days where it actually did rain here which doesn't happen very often, I have been out of town a decent amount like I always do. But for the most part, my routine is Monday through Friday right after work, I drop off my wife and then go change my shoes and head right out for that three mile hike. It's 3.1 miles. So, it's been great. I've also been using that time to listen to podcasts which has been really fun mostly listening to non ecommerce type podcast.
I've been listening to — a couple of my favorites have been how I built that or how I built this or how I built that. I always forget the name of that, but it's an NPR podcast that is really intriguing. It's still a business podcast but one of my favorites. It's about just how people have built their companies. And the really interesting interviews that have come through that I've enjoyed the most have been the one about Atari just because I'm a product of the 80s and it was interesting listening to the guy, how he built Atari and eventually ended up building Chuck E Cheese.
The one about Cisco Systems I found to be really, really interesting. I don't want to give away how things ended there if you don't know the story, but I was taken aback. I didn't realize some of the stuff about that. And there's been some other really interesting ones as well. A couple of the other podcasts I really like, one is called The Pitch. It's a Gimlet Media podcast. It's one that I listen to all the time. I feel like it's good training for the 5 Minute Pitch, which we're going to be hosting ourselves here in just a couple of weeks. I'm really excited about doing that.
We'll talk more about that in a future podcast, but 5minutepitch.com, the number 5minutepitch.com. You can go sign up and be alerted when that comes out later this year, which I'm definitely looking forward to. We've already got everyone signed up. All our guest judges are ready. We're renting out a ballroom in one of the hotels here in San Diego to do all the filming and it's going to be really, really cool. So, I’m definitely looking forward to that.
The other one is called Startup. It's another Gimlet Media podcast. Again, I guess I do gravitate towards business podcasts. I tried listening to some other travel ones or comic or comedian type ones or whatever, but I don't know, my mind is always around business. So anyway, off topic a little bit on that. That's been the weight loss progress. I think easily 12 pounds will be done by the end of the year. Again, without having to do any crazy diets or things like that. It's just been more of a lifestyle change.
Number eight; record 100 episodes of the EcomCrew Podcast. We are at episode 193 as of this episode here. We will hit episode 200 this year, looking forward to doing that. I have a trick up my sleeve I'm hoping that I can pull off, I'm not sure yet. But regardless, we're right on target for doing 100 episodes. There's been a couple here and there that we have missed. We're going to skip a couple at the end of the year as well. I think we're probably going to end up coming in at 98 or something like that for the year just because it doesn't make sense to release an episode on Thanksgiving Thursday and things like that.
So, but I think we're going to get really close. I mean, it's been a heck of a ride. It's been a lot of work doing two per week. Not sure that I'm going to continue that in 2019. This was something that I said as a goal that I wanted to do for this year just to see if we can even do it, if we could pull it off and how it would transform the podcast. And I'm curious what you guys think about the cadence. If you prefer the two per week or the one per week, let me know either on Facebook or leave a comment here on EcomCrew.com/193.
Okay, number nine here is launch a new version of EcomCrew. That is definitely done and it's also helped with every measurable factor from conversion rate to our SEO going up and organic traffic going up. It's been really good. Number 10 is launch at least four new courses in 2018. We have done that now as well with the launch of the Facebook Messenger course. You can definitely go to Ecomcrew.com/premium to check that out, get on the waitlist. We've had the best problem possible as a business owner I guess if you want to put it that way.
The demand has been so high that we've had to actually close signups most of the month. We kind of have been opening it up once every six to eight weeks because the amount of emails we get once someone first signs up is way higher than their second or third month because they have pent up questions. So we've had to kind of re-launch EcomCrew Premium in stages throughout the year. But those four courses are the core part of EcomCrew Premium. We also have twice monthly webinars which wasn't even on the goal list.
We shot for the moon and did that as well and we've been on schedule doing those ever since we launched Premium which has been really cool. One of the webinars is just an open Q&A, the other one we call behind the scenes of our brands. We talk about our products and ads, and everything or bring a special guest on that we don't have anywhere else. We did this recently that was really awesome, plus you get email access to us and access to a private Facebook group and some more stuff. So that goal has been doing really well. I don't think we're going to launch a fifth course this year, but definitely looking forward to doing a fifth course early next year.
Number 11; speak at four plus industry events. I definitely have checked that off the list. I believe it's actually just four though. I was hoping to do more, but I believe Ecommerce Fuel Live, Sellers Summit, Retail Global, and Rhodium Weekend is four right there. There might have been a fifth one I'm not thinking about right now, but there's a couple that I wasn't able to do, Ecommerce All Stars, Ezra’s event, he didn't do again this year. So that was one that I had anticipated going to. And then Sellers Summit – sorry, Global sources, which is one that I spoke at, actually, I guess it is a fifth one right there, I forgot about that back in April. So that was five.
That's typically twice a year. But this year, there was just a conflict with Rhodium Weekend and Retail Global was like literally the exact same time. So, I was able to do two instead of one. So I ended up opting for that and I'll be back at Global Sources in April.
Number 12; hike 80 miles of the PCT. I’ve talked about how that just didn't happen in March. It's basically; the PCT down here by where I am at least is incredibly dry. It doesn't mean a whole lot down here. So the water on the trail is completely dried up usually by May, down here in the desert because what typically is running here is either snow melts coming off the mountains out of the Sierra, or it does rain during monsoon season here which is typically December, January maybe and February. But like I said, by May at the very latest, everything's completely dry as a bone. So I haven't been able to revisit this.
But I did go on an epic hike this last quarter. I went to Mammoth Lakes, my first time up there. If you ever get a chance to go up there, I highly recommend it. I did a three day trip up there backpacking at altitude, which was really difficult and a lot of fun, and definitely got me primed to want to do more of this stuff. I didn't think I was able to do high altitude hiking. I always had kind of worried that that would be an issue for me. But we did a sort of base camp at mammoth at 8,000 feet and then hiked to above 11,000 feet with a 40 pound pack on.
I was able to do that. It was slow going but I was able to do it. And man, the scenery up there is just absolutely amazing. And I’d love to do some more hiking this year but the reality is, is that the fourth quarter is here and that won't be happening anytime soon. So, I’m going to have to save the additional miles of either PCT or something else for some other time.
Number 13 was to take one epic two plus week vacation which we did. It wasn't as epic as previous vacations we've done in the past, but definitely a great vacation than the last one up to New England, and visited three more states that I had not been to which was Maine, New Hampshire, and Vermont. Also got to check out Quebec City, and Montreal; definitely a pretty awesome trip. With that trip I was able to like I said, cross off three more states that I had not been to, and now I have not been to two states. So, I've been the 48 states which is pretty cool. I have not been to North Dakota or Iowa.
I’ve got to figure out how the hell to get that checked off someday. And once I do all, I'll have it all done. And that's actually two states that are relatively close together. They're actually only separated by Minnesota. North Dakota boarders Minnesota and so does Iowa. So eventually hopefully I'll be able to get that done maybe fly in the Fargo and fly out of Des Moines or something just to get that done, or maybe get another RV sometime and do that trip somehow through that, but definitely happy to have crossed off three more states. It was a fun trip up to Quebec and Montreal, got the hang out with Dave and Dave as a part of the trip, and that's fun as always. So, that is checked off.
Number 14; visit the Philippines office at least once in 2018, definitely checked that off. We did that in April. I was hoping to go back in October. I’d actually been secretly plotting to do that with Mia and had not told me about it, but it just it wasn't able to happen. There was just too much other traveling going on at that time. As it turns out, probably it was good that we didn't go at that time because our marketing person left and it would have been difficult to try to deal with that at the same time. It just happened to be that's the timing that happened.
So yeah I mean, but I did get there once in 2018 and definitely look forward to going back in 2019. We've already pretty much got that planned out and ready to go because we're going to be going to the Philippines and then over to Hong Kong to do Global Sources. And that's pretty much set. The dates aren't set exactly, but we know that we're definitely going over to do that.
Number 15; read a book a quarter. This quarter I've been reading Phil Collins book called — I believe it's called I’m Not Dead Yet, I think is the exact title. I wanted to do something that wasn't business for once. Everything that I kind of read and talk about, listen to podcasts was like was talking about read articles on the internet, etc. It seems to always be some type of business related thing. And I don't know, I've always had a affinity to Phil Collins, again a product of the 80s. He was huge in the 80s, and I believe one of my first three albums was Invisible Touch, the Genesis album, and the book has been interesting.
His life was definitely interesting as you imagine from any rock star, multiple wives, one of whom he's back with now and kids and just a lot of regrets and drugs and crazy shenanigans. But as he says, he's not dead yet, and he's back out touring again. I can say that there was a time in my 20s, late teens and most of my 20s where I would go to at least a concert a month, a lot of times even more and I did go see Phil Collins in the 90s. I saw him at what was called the Capital Center just outside Washington DC with [inaudible 00:24:45]. He used to play in the Bullets but they moved that now to downtown DC.
But anyway, it was one of the best shows I've ever seen. And again, I've seen a lot of concerts, but the guy at least he was amazingly talented. He still is talented, but he's got some physical ailments now that prevent him from playing the drums and stuff. But then the guy played like every freaking instrument and it was a really cool concert. And it was like the greatest hits concert because he has so much good music.
So yeah, definitely been a great book, definitely been really interesting, eye opening how you can get sucked into that atmosphere of drugs and money. So, it’s something I’ve talked about in a couple of different interviews myself. Luckily, I never got into the drug thing because I always know that I'm a compulsive and that would be ending really badly for me. So at any rate, that was my book for the quarter.
Hand off Facebook ads to others in the company. This has definitely been checked off because we had our marketing person taking care of that. And now it's unchecked off because she left and I'm now stuck doing it again. So, I feel like I did accomplish the goal. She was running our Facebook ads almost 100% on her own, but she left. And it's actually the third person to leave that position in as many years. It has me really frustrated because I think that it's a good place to work, and I hadn't had three people leave in 15 years of working for me over all the other things I had done.
And it's definitely hit me hard and has me kind of bummed out about it. I need to figure out a way to bounce back from this, and I will need to replace the position one way or the other early next year. But it's something we're going to hold off on until January, because trying to train someone through the fourth quarter is basically impossible. And I feel like we need to go back to the drawing board and figure something completely different out because what we've been doing hasn't been working, whether it's — I don't know what it is, actually.
But that's another whole conversation for another day. But definitely need to rethink things because if you keep on doing the same thing, expecting a different result, that's I guess, the definition of insanity right? So, I'm going to give myself credit for this because I can wholeheartedly say that she was running Facebook ads and while we discussed them and strategized about them, and she was running our Facebook ads. So I had figured out a way to get this into someone else's hands and will need to, again, hit the drawing board again in 2019.
Number 17; come up with one tactic that no one else is doing. Man, I'm starting to worry that we're not going to be able to hit this one. We've been doing a lot of the same stuff this year, kind of hitting the repeat button like I said, try and use that cookie cutter nothing to get more organized and went through Traction and those things and trying to just get what we are doing more organized and haven't had a whole lot of time to sit down and think about doing something different which is dangerous. Because I mean, I think that businesses that get complacent and aren't trying in doing new things all the time are going to get surpassed by someone else.
So, I don't know exactly what we possibly could do in the last couple of months of the year here that's going to fit that bill. But there's still a couple of months left. So we'll see what happens. All right, number 18, never lose sight of the bigger picture, make great products that customers truly enjoy while enjoying coming to work every day, and ensuring that we're creating jobs and opportunities for employees where they're excited to come to work as well. So I mean, I think we've done this. I don't think I've lost sight of the bigger picture.
Obviously, one of our employees wasn't enjoying coming to work every day because she put in our notice and left. So, it's hard to say, hopefully everyone that is remaining, the other 14 or so people that are left in the organization are enjoying coming to work. We do a survey every quarter asking them specifically, and it's anonymous and we had really good marks. We asked three questions. I'm not going to remember them all top my head, but basically number one is like are you aware of your goals? One of them is how do you enjoy working at Terran as a company overall, and the third one actually I do remember is do you feel like you're appreciated?
And we were rated like a 9.7 or 9.5, something in that range. Most of what we got back on all three of those questions were 10s. There were a couple of 9s and a couple of 8s. So I'll take that unfortunately one of them, I can tell that the person that did end up leaving must have been the one in the last quarter that that gave us low marks. She had rated us a 6, I guess that's why she left. But I don't know why that one person felt differently. It does suck. I do take it personally, I probably shouldn't. This is a part of life and certainly running a business, but something that's still affects me nonetheless.
All right well, right at the 30 minute marker as planned for this 2018 Q3 goals episode. Let me know how you guys are doing with your first nine months of 2018. I’d love to hear from you at EcomCrew.com/193. You can always go to those as a reminder for most of our episodes. We just do whatever the episode number is at the end. So it's EcomCrew.com/episodenumber. It'll get you to the show notes and comments for that episode.
And again, we’d love to hear from you, get more people that are listening to us online to come try to talk to us. Or I guess it's still online but away from the car, away from the podcast medium and over to a different online medium with your comments. So, definitely appreciate you guys supporting the EcomCrew Podcast. And until the next episode, happy selling and we'll talk to you then.