We recently officially launched AGP. It is a non-agency model where we do not look for clients but rather partners. In this context we have a due diligence process that we started 4 weeks ago with the first company and that we will start next week with the second.
In this process we want to carefully evaluate three things
Sales potential of the partner’s products.
Market potential for the products.
Business profitability.
Once a deal has been closed accurate mobile phone number list we start working. We do not work with a fee but rather with a variable. Our time is not guaranteed to be rewarded as in an agency model. That is why we have to be very sure whether or not we get involved in depth with a new partner.
It is something we do for ourselves but that obviously also brings a lot of value to the partner regardless of whether or not they continue with us.
Market study to estimate total sales volume
To create the financial plan that is par what is the difference between these two groups?t of the business plan we need market data. To do this we calculate the total sales volume, typically starting with the largest market in Europe (Amazon.de).
We use different tools like Helium10, Junglescout or Keepa for this. We combine data from various tools to improve the quality of the data we get. The tools are made to analyse individual products or niches but not at market level.
We have developed a method, so to speak, that allows us to generate data for total and annual volume for market segments.
Spreadsheet with data
Now comes the second part. Most Amazon entrepreneurs would start here. The problem you have is this: you are typically too generous with the numbers.
I’m not saying that we are robots and material data that we can exclude all emotions in this exercise. If you are an entrepreneur, this is almost impossible. The good thing is that we have a reference.
At the end when you make your spreadsheet you get a total turnover. You can put this data in relation to the total size you found out in the market study. In no case can it exceed 100% because that would mean that you are predicting to have more sales than the existing market can absorb.