The E-commerce Leader

Michael Veazey

Mr. Jason miles in Seattle, Washington. How are you?

Jason Miles

Good man. How are you in London, England?

Michael Veazey

London, England. I always love it London, England, like where else could it be? No. Well, it is. But I mean, where else?

Jason Miles

Was it not the right phrase?

Michael Veazey

Yep, London, UK. I don’t know this thing that is indeed in England and the UK and Britain, and the British Isles just to confuse everyone. But also, I just wonder where else it would be, you know…

Jason Miles

Man the branding of that country’s really screwed up!

Michael Veazey

Tell me about it. Is it defensible business model, I ask myself? To business here, then we are talking about profit strategy today. Well, that’s a subset of profit strategy, which we know is your favorite topic in the world. And I’m sure that’s a great thing for your clients. And we talked last time about the critical importance of the business model in the underlying structural thing that drives profits. So there

The question became, how do we evaluate a business model? So, right, right, what are your thoughts on evaluating business models?

Jason Miles

Yeah. Well, when we I think when we left the last conversation, we really teed up sort of these two big questions. The first one is, is it scalable to a large number? And that, you know, that would be the first thing to think about to really evaluate, can you get whatever you’re doing? Can you get it to some sizable, meaningful thing? And I think we could probably clarify what we mean by that. But then the second big question is, is it defensible? In some way? I mean, you know, can you can you create a long term value proposition that you benefit from defensibility. So these are the big these are the big top level questions, I think that go into the evaluation process. And then there’s, there’s questions that flow out of that. Yeah, that’s sort of I guess, the opening commentary.

Michael Veazey

Excellent. Those. They seem like very, very good question. So I want to say a couple of things. First of all, I think defensibility is absolutely critical, particularly my experience in the Amazon space, because it’s so hyper competitive. And and I know you’ve got a cunning…What’s your phrase about the defensibility analysis that you do?

Jason Miles

Well, we have a model we call this. So I keep unpacking these different models, we have a model called seven layers of defensibility that we use with clients and I’ve taught before and so that the whole question of, can you create something that has long term, business value for yourself and, and own that value?

There’s ways to evaluate that there there are structural things, of course, the classic, I’ll just tease, tease up two things, but maybe that’s a whole different conversation.

The first two things you look at is, you know, can you create a brand? Warren Buffett, of course, is the classic commentator on these topics. And he has this idea of creating a castle with an unreachable mode when he talks about that he talks about the power of a brand.

And then the second thing that most people look at is: can you create a monopoly through various shenanigans, tactics, strategies, legal rights, that kind of thing. And if you can’t create a monopoly, you know, there are things that are close to it near monopolistic attributes, but those are just two out of like seven layers of what you would look at to create a powerful defensible business model.

Michael Veazey

Excellent. Well, so I’m looking forward to hearing about that. But I think that’s going to be for another day, because we’ve got a lot of thoughts. I know that you and I’ve been discussing about the scalability piece, which Yeah, is obviously pretty critical. And that’s more kind of resonates more easily with people because everyone’s taught by the courses that you should be scaling a business to huge revenue overnight. For some reason, it’s a bit of an obsession. Yeah. So why guess we’re starting with the, you know, the one that is people are very open to the idea.

So, obviously, we’ve got to get some kind of rational Analysis going on here. So what’s your approach? are we are we just gonna give it a sort of a score in some way?

Jason Miles

Yeah, I mean, I think there’s a way to actually evaluate business models where you really literally score a model. And so let’s walk through that I’ve got sort of the template I use for that.

But the you know, the first question I guess back to the very top of the conversation is: is it scalable to a large number should be top of mind and but I think that can trip people up.

And so I’d love your thoughts on you know, what you consider a what is a large number and then what does it look like to scale and I fit I have a few opinions about how people make common mistakes as they think about these things.

You mentioned one which is just an obsession on I guess, you know, revenue getting to a number like Yeah, but what I mean what as you look, work with your, you know, 10 k collective people and you work with your mastermind groups, what do you see people gravitate towards in terms of that question of scalability, what is scalability mean to your, you know, to the newbies and but then also to your veteran people?

Michael Veazey

Good question. I’m not sure that people…and yeah, so those do two different questions. Let’s talk about the veterans first. I mean, they the veterans, I’m not sure they necessarily think about it that way, just to be honest, they want to scale. But I think for them, I mean, a lot of people once you’re in motion, it’s not about address, looking at the market potential. It’s looking about growing what you already have. And most people are aiming to do pretty aggressive things like 40 50% revenue growth a year, maybe even doubling.

That’s very much a revenue target, which obviously, I know your passion for profit, and rightly so that that is already a risky approach. And so of course, we’ve got to talk about what we’re scaling, which we haven’t talked about. So when we say scaling to a large number, what are we scaling to a large number?

Jason Miles

Yeah, I mean, I think that’s the well when you look Look at like an Amazon brand new person. What do they taught to do? Well, they’re taught to probably get viral launch start to do and do some research on you know, what is the what is the potential of item number 42 in category number 59 on Amazon right so the plastic spoons or the whatever haircare product or whatever it is how much sales velocity is there? And you know, there are tools out there that give us that kind of info right.

So that’s the first thing I think people look at is how much of this being you know, sold on Amazon. I mean, that’s the first lens many newbies and even veteran sellers. I mean, you know, you can look in Amazon and you can deduce from the numbers what the math looks like on on these, you know, specific products. I think that’s the first thing that comes to people’s mind.

But um, but I will tell you, you won’t find my products on Amazon. You not even as a other competitor. The what I sell is not on my Amazon Marketplace. Yeah, you cannot just find what I’m doing and say oh my gosh, that’s a good number. I’m gonna like get into that business. There’s no there is no version of that that I can occur but I but I do think that that’s the first way people look at it is the velocity of units that are moving

Michael Veazey

well I think yeah this is a space talking about total addressable market and I spoke about this to Tommy Griffith of what’s his place clickminded.com he used to do he was head of Airbnb is SEO and also PayPal. So he’s got some pretty, you know, decent SEO chops very bright guy,

Jason Miles

Is that a podcast episode? Sorry, just a tease that out

Michael Veazey

podcast episode that I’ve done with him in with the 10 k collective podcast. Yeah, when we could maybe invite him in I’m sure be happy to chat.

But what he used to do there is that they would do, they would take the sort of total universe of keywords on Google, which is amazing. Be much broader than Amazon. Because yes, you wouldn’t find your products on Amazon. But you would find it through a Google search, I guess so. or, for that matter somewhere else like Pinterest, like, I know, you guys are huge on Pinterest.

But the point being that you start with that, and then you do some metrics, like the percentage of clicks you think you would get if you were at the top of page one on Google. And, and, you know, you can do the same on Amazon, and then, you know, comes from basically look at the total addressable market, which all the tools that Amazon do for you, which is to say, how much money is being paid made per month in this market on Amazon, or even broader through Google, which is a bigger lens, if you like. So the total addressable market size is, I guess, the formal word for that right. But then, that my question is always, never mind how big the pie is. What percentage of it could you win for yourself, which, again, relates to the defensibility piece, right?

Jason Miles

Right. Yeah, I mean, I think so. And I think that’s where I see some errors occur when people are brainstorming new products. For sure. The error in logic is that it has to be a big number. Like, you know, as soon as you say, what’s the total addressable market, then you’ve put yourself in a position to say bigger is better? Well, actually, I would just argue that it could be possible that smaller is better.

Because if you say, what’s the total addressable market and you say, in your mind, I want a big number. Every other marketer on the planet is thinking the same thing. So the bigger the number, the more professional marketers you have to eventually compete against. So the smaller the number, then the fewer professional marketers you have to compete against. And in fact, in some categories in dying industries, nobody even wants to operate in space, because they think it’s a dying industry. And so you just need to think through what is it You are actually wanting to do with the question of scale?

And, you know, you know, I sell digitally downloadable doll clothes patterns on Pixie fair.com, you can go check it out, you have a catalogue of about 3000 that is a subset. Little tiny corner of the sewing industry, which most people would say is that even a thing in existence, which is a subset of, I guess, craft, and like, you know, hobby, which most people would say to me, maybe. Yeah, so my whole caution to people when they’re starting isdon’t go for something super competitive. Don’t go for a big Tam, go for look for an underserved market. And I guess that’s my point about scalability is you know, you can get in this trap that you want to avoid.

Michael Veazey

I agree. I mean, it’s interesting that we’re touching on defensibility. Even though we’re talking about the scale of this, you kind of can’t avoid it, can you But yeah, my question to you Then is is, is that the right question? Can it be scaled to a large number maybe that needs to be defined to is this niche big enough such that if I dominate it, I can scale it to a big enough number to have a comfortable living for my family or something?

that’s a that’s a hell of a long question. But maybe it’s that kind of question. That is a rational question. Right. What do you think what what are your thoughts?

Jason Miles

I think that’s exactly right. And it goes back to Tim Ferriss’s four hour workweek book where he really talks through the idea of what is your ideal lifestyle and then your product Muse as he referred to it in that classic book such a great book is The Muse has to work for equipping you with what you need to have a nice lifestyle.

Michael Veazey

And you know, so there’s a big difference between you having a great house and car and family fun and, you know, food in the pantry versus trying to build an industry, an industry level business, you know, I mean, very different, but you have to kind to start with your own goals in a way Yeah. And if you can find the smallest possible, underserved market that will, you can dominate, that can get you to a livable, nice outcome, then I would say that that would be smarter than finding something where there’s professional marketers that you have to do battle against every day. I couldn’t agree more on his his what we’ve come to then I guess, in the business model analysis, which is evaluation rather, which is critical, but we’re trying to sort of do objectively but what I would say is the first objective criterion I would have is before you evaluate your business – and this is, by the way, another episode right? – before you evaluate your business model, it’s like evaluating a vehicle

Okay, well there is a Tesla outside, which looks very nice, but it doesn’t fit my budget. Therefore, an evaluation of the car as a car, I would say it’s amazing. You remember, I’m a bit of a car geek, but actually, for me personally, it doesn’t make sense in my finances. My wife would divorce me if I spent it on that rather than paying down the mortgage.

And so I guess before you can evaluate the business model, you need to evaluate your own objectives or set some objectives. And then, yeah, set some goals. But then once you’ve done that, I think it’s probably going to come down to, you know, what business could I sell for X amount of money that would enable me to have passive income for the rest of my life as I effectively retire? Or what is going to create a fairly passive cash flow? And I guess that’s another question, that’s going to enable you to comfortably live at whatever level so I guess if you set an income figure, then you can come back to your question you all your thing, which is what’s the smallest market that I could dominate that will produce that figure for me?

Jason Miles

Yeah, that’s right. Okay. So that’s scalability, right? Yeah, you’ve got one down. Okay. Let’s talk through some other ones. So what do you think is, as you will work with, you know, your your Amazon sellers and others, what do you think some of the criteria in their mind In terms of the business model, when they’re talking about Should I do private label? Should I do retail arbitrage? Tell me about wholesaling. You know, what, what’s the first thing they’re thinking about?

Michael Veazey

Well, that’s a good question. The first thing they’re thinking about isn’t necessarily what I’m thinking about when I’m trying to help them, which is one of the issues as a coach, you have some times, right, you have to go well, I want to help you. But in order to help you, I need to gently deconstruct the question you’re asking and ask a better question that I think will serve you. So their question is normally, how do I make you know, X amount of money in the shortest time with the smallest amount of money? And my question is normally, how well equipped Are you in terms of your experience, your knowledge of a marketplace, your capital, and the time available to actually have any kind of chance of building a defensible and scalable business?

And I try to filter out the people I work with one to one, especially if they’re early to the table, by making sure that I have capital requirements and time requirements and time commitment with not necessarily to me personally, but to the business building process that even if you’re going to have a go, you know, at this that you don’t have to give yourself six months as a bare minimum and abandoned capital.

So I think that that’s a slightly different question. And then the other question that people come to me with is, does it work? Does this private label thing work? Does Amazon work? Does you know, should I build a Shopify store?

Jason Miles

Yeah. Does affiliate marketing work or drop shipping? Yes, drop shipping is one. I get the most questions about drop shipping to be honest. Really? How do I set up my shop Shopify Shopify site for dropshipping? Right. Have you ever done drop shipping? No, but I heard I can make a lot of money too. Yeah, like talked about drop shipping. Not saying it’s a bad thing, but I’m just saying there’s pros and cons to it. So yeah, yeah, it doesn’t work is that and that’s a really central question. And I guess I would do as a nuance to that. Does it work for a common person, a common Man, common woman to run? And that’s a that’s a key question. If you have to have a PhD, to pull some of this stuff off, it’s not realistic. You know,

Michael Veazey

Interesting you say that I just have to say, one mastermind that I run in early iteration of it, where people didn’t seem to be doing very much in sales. At one point, we had three people with PhDs in there. One was a biologist, somebody had one in film study or something, you wouldn’t think it’s particularly helpful. I’ve also had people with MBAs, I know you have an MBA and it shows in your thinking, but this guy, again, just did a lot of analysis but didn’t take any action for months. I’d say. It’s very interesting that actually, I’m not sure that a PhD helps just to clarify, yeah, or an MBA weirdly, which I would have thought is a no brainer that it would help but it didn’t know it.

Jason Miles

That’s the point. You you actually, the question is, like when I used to do, I used to be an HR guy, my original first career was human resources, and I would work with managers and on recruiting and they would say, I want to hire somebody has a graduate degree in whatever PhD? And I would say no, you really don’t do you? Do you really want that? Because those people are hard to find and really expensive. Don’t you want a minimum wage worker? And they would, and they were like, no, they’ll never you will do it.

And I was like, well, that’s so what you’re describing is a process. It’s too complicated. So the question is, is the process simple? Yeah, because what you really want is a very simple process that two or three average people can show up and execute on and the owner, the owner, the manager is responsible for creating a simple process and so you know,

The value proposition of retail arbitrage, for example, it’s just to get very practical, is it it commonly works for people if you know math, it’s not hard to do we, you know, taught my kids to do arbitrage is one of their first online things and you know, when they were in high school, and so, so that I guess that’s the point here is is a commonly work for an everyday person, you know, and I think that’s a key evaluation question for business models. And the answer should be. Yeah, I mean, it’s not that’s not this is not jard work.

Michael Veazey

Yeah. That’s a very good point. And and I think I nuance that a little bit by saying, does it work for a particular… I mean, I guess you know, what, it depends what you’re trying to mass produce courses, or whether like you and me that you’re trying to work one to one with somebody or somebody’s trying to evaluate for themselves. I do think a self event again, coming back to the point of, I can’t avoid the fact of evaluating a business model means I have to define first, for whom?

You know, so how much money do you want to make? How much money do you have to put into the equation to start with? How long are you going to give it for that sort of mundane question.

But also with the business model? more subtle, psychographic questions likeYou know, how good is this person at creating and running systems processes? And how much experience do they have in the space?

So I mean, I find that a lot of people that have done well with private label that I know started off with some retail arbitrage back in the day, so they’re familiar with Amazon. They’ve had successes. So they built some confidence. They often come they’ve got analytical brains, sometimes they come from business analysis type backgrounds. So I think those things feed in and I agree that it’s desirable to have a model that commonly works and I guess that you know, private label wouldn’t score very high for example, on that one compared to retail arbitrage and, but that doesn’t necessarily mean that you should dismiss it, I think you’re going to add the nuanced label love layer of evaluating yourself, or indeed the client accurately and matching them up with a business model, which I think is really important.

Jason Miles

Yeah. Okay, so let’s just for the fans at home here, document where what we’ve done so the first question is, is it scalable to a large enough number for you to make a living off or to fit your needs, your goals and needs? Is it defensible which we’ve said we’re going to dive into later.

Michael Veazey

And then this third one is does it commonly work? Is it something you can execute on? Yeah. Okay, so let’s let’s rip through a few more of these evaluation metrics. And then maybe let’s apply a few of these to some common business models.

That sounds great. So I’m just skipping a couple of notes, which will be as ever, the e commerce leader.com. And one of the things I think, I think, I would like to if you’re up for a deep dive into the whole thing of the entrepreneur, and, and themselves, their self awareness, setting goals, you know, what goal clarity which a lot of people just kind of go, Well, I want to make money and retire.

But what does that mean? Do you really want to sit on a beach with a laptop? A lot of people have been sold that idea? Do you really want that? Think it through! And then, you know, evaluating your own skills and experience because I think a lot of people start off with that mismatch between themselves and and that thing. So anyway, I’m just teeing that up if you’re up for that discussion, sure.

Um, okay. So another question then which is his top of the mind in terms of the classic pitch sitting on a beach with a laptop? It’s Can you sit on the beach without a laptop and your business still runs without you? In other words, can it be passive? I think that’s really critical.

Jason Miles

Yeah, well, the the buzzword that we all hate and love and all that it’s uh, it can can it be passive passive income is so great. And that phrase in the e commerce space, of course, means different things to different people. But I think there are layers of active work versus sort of portfolio management or, you know, you can talk about this in some detail. I think the question is, what one first question about passive income is just defining what you you know, what you mean by technically, is it passive or do you mean, you just don’t have to personally do it?

You know, I mean, if you build a really awesome small business, and you’re a really good manager, and you have somebody running the business for you, you can be anywhere you want, because you’re sort of, you’re a passive owner of an active ongoing business. So I mean, that’s the first question is, is it technically passive income? Or can you set it up so that your team runs it for you? Now? Okay, go ahead.

Michael Veazey

I was gonna say sorry, I think that goes in layers to your point that which is a really critical question to define passive. I think, as you said, there are layers of work. and I think that if you can set it up so that the day to day running is through systems and automation, particularly with Amazon, because Amazon does a lot of that for us, not passive. Somebody’s literally running around the warehouse. 12 hours a day worked very hard, but you’re just not seeing it. So it looks passive to you, but you’ve outsourced that.

And then if you outsource customer service and various other things, you automate things, you know, if you can check in once a week and maybe do five hours a week, then I guess that’s the kind of dream that sold to people and that that’s a kind of passive right in the sense of the day to day operation. We’re taking care of it.

Jason Miles

I wouldn’t call that passive income I would call that you’ve you’ve created a systems driven business email through visited his book. Yes. beautiful book. Yeah. Systems driven business is very different than passive income.

So let me technically define passive income I think as an economist would I think and that is income that you’re deriving from an asset you own. That literally takes little or no work to maintain. So of course, a portfolio of cash you know, cash or stock or whatever is passive income if you have income flowing off of an asset. I, our business model is digital, you know, patterns that we sell. And so we have royalty based income we in our business, we call it royalty based income.

And so you know, my wife designed for example, a pair of cute little jeans for American Girl doll in September 2009, that pattern still is one of our bestsellers, 12 years later, or whatever it is 11 whatever, that’s 11 years later. She updated it once I think in 2015, maybe,

is that passive income? Well, she did work. But in our view, it’s royalty income off of work. So is like an author’s business. I mean, I got a check the other day for 20 $900 for a book that I had done, you know, years gone by. So, so this is the idea of, you know, kind of parsing out whether it’s technically passive income versus a business that you’ve got set up with systems in place.

Michael Veazey

Yeah. Agree. No, I think that differentiation is very important. I would say there’s a there’s a sort of a halfway house which is really critical, which is kind of leveraged income, which is to say you work, you know, whatever it is maybe 10 hours a week in your business, but you are working on stuff that’s going to pay off with a lots of like product development if it’s done well and you’re selling into significant SAS marketplace again, see the, the whole question of scalability, right? A

nd then, you know, onboarding, finding onboarding and training upgrade people or indeed hiring somebody else to do that if you’re working on a bigger scale business it’s that sort of magnifying your effect is not meaning that you don’t work it just means your work produces a greater effect so you don’t have to work lots of hours for decent money or even good and you know, big money.

Jason Miles

Yeah, and of course, just in the Amazon ecosystem, of course, you have retail arbitragers are come in and then the first thing they think through is Dang, I found one of these and I sold one of them, what what can I find that I can sell over and over and over again, you know, so private label product strategies become they become aware of and then re cleanse they become aware of so Oh, I can find a replenishable item. I just go find the exact same thing, send it in, and that becomes very, very simple.

In essence, it’s a layer of passivity, a halfway house, compared to retail arbitrage, which is one product sold one time.

Michael Veazey

Yeah, I think what most people I suppose if they’ve just done an employee type situation where you know, or a self employed person, which is was my background is my wife said, You work x hours you get paid, you know, why?

Unknown Speaker

income times eight hours? I don’t use equations that way. But anyway, so you know, and then I guess it seems passive if somebody else is working and you’re not and you’re still getting income, but you’re right is not passive. I want to flag up that I do you know, anyone with an e commerce business that is 100% and owner and just passive because I think that’s quite unusual. I think, for starters, for the economics of it to work for an Amazon type business. I think you would need to grow the business from what I’ve seen to at least several million dollars in revenue, not profit, before you can actually afford to hire a full time CEO because that’s a position that requires a great deal of skill. And I know one Amazon sellers, like

Unknown Speaker

Groupon he did a lot of stuff cost a lot market but very smart Dutch guy in our masterminds and he outsourced it at he got hired a CEO and then fired him because it didn’t work. Yeah, it’s not easy to make happen, I think.

Unknown Speaker

I think it’s a question about the size of your business your to your point.

Unknown Speaker

Yeah, you’ll, if you’re a hands on operator, a personal technician in the e commerce space, you’re probably in the six or low seven figures range. As soon as you get into the seven and eight figure range. You’re you don’t you’re not a hands on technician. You’ve managed a team and the question is, how good is your team? And how good are you at managing your team? Yeah, it’s a layer of abstraction there. I agree that but it’s still not truly a passive I like for example, I own a little property, which is managed for me. So it’s 90% passive income. That is not the case with any Amazon business owners that I know of, because they are the CEO. They may have a lot of people like

Unknown Speaker

In some cases, 2030 people working for them, and you’re in a similar situation, I guess, well, Shopify, but nevertheless, they are still having to make decisions deal with problems, whatever. So it’s not passive. Whereas, you know, I guess what we’re talking about with a truly passive investment, like a property traditionally or real estate,

Unknown Speaker

stocks and shares royalty income, it’s just 100%. Hands off. So I think that’s quite a rare situation, which is quite interesting to contemplate. Yeah, I think the question is, there’s, there’s passive business and then there’s passive products, I guess. And you so we could just distinguish between the two but Okay, so the idea though, passively, I think we’ve got that nailed it. Yeah. Is it possible? Yeah, sorry. We’re getting into too much detail here. But let’s go. Let’s go into the next one. So I guess the next question I would have, you know, your perspective or thoughts on

Unknown Speaker

digital products. I think the question is the question I suppose we ask ourselves, is it for the business model? Can it be digitally delivered?

Unknown Speaker

You know, going from Digital physical to digital is an absolutely mesmerizing thing for those of you who have ever worked hard on a physical product and shipped it and you know, the manufacturing, and then ever as a juxtaposition to that worked on a digital product, and then had it be out into the, you know, into the internet into the wild. Just very, very different. What are your thoughts on on how that fits? And I know it’s not a common amazon seller, or at least not a common third party seller topic, I guess merge gets towards this But yeah, I guess merge does get towards I mean, apart from that the obviously you know, Amazon is geared to that in many ways. You can sell obviously, Kindle, as you know, with your many, many Kindle books out there on Amazon. I think I’ve got some experience of this from the amazing FBA space. I don’t know what I call that e commerce or not we have a discussion about that. I mean, to some extent it is and I think

Unknown Speaker

You know that the problem with physical products which digital product speaks to? And obviously you know about that, because that’s your main business. So I’d love to ask you a couple of questions on that. But obviously, the main issue is, apart from the painfulness of trying to get products moves around the world compared to via the internet, which right now a lot of people are experiencing. There’s Yeah, the capital requirements is not just about the profit margins, that’s one thing there are lower, but right, it’s the capital requirements. There’s such a killer. And that’s, that’s what makes it very hard to scale the business. So to the point of scalability again, you know, can I scale this to a large number? Well, the answer is if you’ve got a lot of capital, or it’s incredibly profitable, and otherwise, no, so I guess what I love about the digital products idea is that it bypasses that whole block to scalability. So I mean, what’s your experience, man? You’ve been doing this for like 12 years now. Something like that. Oh, yeah. Nine years, it’s digital. We started our digital selling in September 2009. Yeah. I like it.

Unknown Speaker

So, um, so well the basic merits of the situation should not be under appreciated by anybody. And I would just say if you’re an Amazon seller, whether you’re retail arbitrage or online arbitrage, wholesale, private label,

Unknown Speaker

I would just encourage you to think about for your if you’ve if you’ve narrowed your work down to a niche

Unknown Speaker

audience, is there a digital product that they could could be potentially served well by, it could be a how to guide could be a consumer report. It could be something along those lines, the if you can find an angle on a digital product, I think exploring it and thinking it through is a fantastic exercise and can be very, very meaningful for your business because the basic math is, I think, not lost on anybody, but just let me just explain it.

Unknown Speaker

Um, Digital Goods work on this operating principle called near zero marginal cost is sort of an economist term. And what it means is, it takes nothing

Unknown Speaker

To make the second copy, this is why Bill Gates is the richest man in the world. Or maybe Jeff Bezos is I can’t remember which one. But But software works on this principle as well, if you the first copy, could take you months, and it could take you a long time to put together. And if it’s software, it’s super complicated. If it’s an E book, it’s super simple. But it’s the same principle. And that’s the first work of at the origination of it is hard work. It takes time and money, maybe. But then the duplication of it is literally a non issue. And so that’s the power of digital goods. And that duplication to your point is it’s zeroes out the cost of goods, there is no cost of goods in a digital based model. So you know, we’ll so for a good chunk of time, 2018 I guess I could say those stats, we did about 70,000 transactions a month, and so I didn’t have to worry about inventory. I didn’t have it.

Unknown Speaker

It was never crossed my mind. Because it’s all digital. So that’s the power of it. And I think that’s it just we shouldn’t gloss over the basic premise. Yeah, it’s not just another idea. It’s not just another add on it has different characteristics. Now I agree with that, right? I’m gonna say something at this point, that template was

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