This Episode, #24 ,  is another “bonus” episode that is a little less formal than usual episodes. Again, I hope you can forgive the more casual style and above all the lower audio quality – this was another episode squeezed in between visits to relatives and loved ones!

The start of a new year is a natural point at which to think about big-picture strategy and overall approach to business and business building.  If you like this approach, let me know in the Facebook Group and I’ll give more summaries of powerful business strategy books I’ve been reading.

This episode is about The Star Principle,  as espoused by the wonderful business strategist, Richard Koch (who is a fellow Brit!). This principle is behind Richard going from £3 million to above £150 million in net worth, with 8/16 investments making money, one with an astronomic return! (venture capitalists expect 1 in 10 to make money). This is almost unheard of – this guy utterly walks his talk!

SHOW NOTES FOR EPISODE #24 -Richard Koch and The Star Principle  

American Amazon strategists mentioned:

* Jason Fladlien was (and probably still is) the biggest single affiliate seller of Amazing Selling Machine

*  Ben Cummings was a star student of Amazing Selling Machine as sold by Jason Fladlien.  He now works with Jason and runs his own courses, masterminds, etc.

Perry Marshall (who is an excellent Adwords expert and teacher) interviews Richard Koch here in a very extended, natural interview. Totally worth viewing.

Perry Marshall is also publisher of the best-selling book ever on Google Adwords (let me know if you would like to know more about this book).

Richard Koch worked for the Boston Consulting Group and although he didn’t enjoy the job, he learned a business strategy  that was a simple but incredibly powerful strategy:

THE STAR PRINCIPLE

There are just 4 types of business and 4 actions to take:

* STAR business: High growth and Market Leader.  Action: INVEST!

* Cash Cows: Low Growth Market but Market Leader: Protect!

* Question marks: High Growth BUT not leader: Drive to leadership or Sell.

* Dogs: Low Growth and Follower: Exit or Run for Cash.

So how does this work for an Amazon business?

Researching new potential product niches

* Find & monitor trends in your industry or market:

* Be a member of your target market & be consistently observant of product trends

* Follow your industry/market magazines,  websites; go to meetings, conventions, etc.

* Use Google Trends if it helps but use a variety of keywords

* Go after markets where there is an upward trend overall

Reviewing/Reflecting on your own business

Once you have had a product or products live for a time, review your products. Aim: Determine whether you have found a Star, Cash Cow, Question Mark or a Dog!

MARKET SHARE

* Monitor your position on Amazon in response to main keywords for your product(s).

* If you aren’t yet within the top 4-6 positions for the most important KWs:

* give away product until you have at least 50% of the reviews of the no. 1 or 2 player