It’s not difficult to stumble across a bunch of examples where top level Amazon sellers and eCommerce entrepreneurs are utilising the power of “Content Sites” to rank and launch products on Amazon. Not to mention, earning affiliate commissions in the process.
This week I bring to you Dave Bryant of EcomCrew. Dave is a serious entrepreneur with great pedigree, so when he pursues a strategy it’s worth listening to.
Dave Bryant talks about his off-roading eCommerce business in this episode from the EcomCrew podcast, revealing some of his numbers and how he sees the long term benefit of having a “content site” that drives traffic to products on Amazon.
Dave’s Content Site – Offroading.com
Dave’s site is over at offroading.com
Dave mentions that having started the content site in January of 2019, it took him between 3 and 6 months to get out of the Google Sandbox. By August 2019 however, Dave was seeing more than 400 unique visitors (not huge, but not shabby) delivering $200 a month in affiliate commissions (that is impressive from only 400 unique visitors).
Dave sees the power in utilising this site to maintain the sales rank AND launch new products on Amazon by redirecting Google traffic to his Amazon listing via his content site.
The Long Game
Dave doesn’t talk about his investment or the costs involved with his content site, but you can be sure, as of writing this article, Dave is still in the investment phase.
But he’s 8 months into the strategy? Surely he should be profitable?
That’s where the “FBA Mindset” clashes in a big way with the “Content site mindset”.
Content sites are low revenue, but high profit. In conventional form, as an affiliate site, the website value would be based on it’s monthly net profit (and content investments would be deducted from the monthly costs).
Typical multiples on monthly net profit for content sites are anywhere from 30-45x!
That means Dave’s site is worth $6,000-$9,000 if he was to sell it.
Better still, if and when Dave sells his Amazon FBA business WITH the content site, he’ll get a more favourably multiple.
Yes – that means that 30-45 x will more likely be on the higher side AND it will be a multiple of the monthly net profit of both the content site AND the Amazon FBA Business.
(in fact Greg Elfrink of Empire Flippers was on a podcast recently where reported that an FBA business that sold WITH a content site went for a whopping 48 x multiple!)
What are you doing about traffic?
When people like Dave Bryant are investing in content sites “as a matter of course”, you know this is more than just a fad. This is THE next phase of Amazon FBA and eCommerce in general.
Have you got a content strategy? Or are you still relying on the 2015 launch strategies that everyone seems to have so much invested in? (giving away product at rock bottom price at the same time as everyone else!)
If you haven’t got your strategy together, talk to us today. We’re Amazon Entrepreneurs first – but we’re maximising the benefit of a content strategy for our business, and our clients.