Is Amazon Automation a SCAM? 8 things most people won’t tell you

The reality...
Seth Kniep
Oct 27, 2020
Entrepreneurship
Done For You by Just One Dime is a program where we build an Amazon-based business for you with the goal of generating cash-flow within 6 months. You own this business 100%. But is it Amazon Automation? And are existing Amazon Automation programs scams?

Many of you asked me to please explain the numbers for the Done For You by Just One Dime program. 

So, today I’m going to answer the 8 most common questions we have received: 

1. Isn’t Amazon Automation a big scam?

Calling something a “scam” has become trendy. Instead of flirting with sensationalism, let’s get to the facts. 

A scam, by definition, lies about its very nature. It’s a dishonest scheme. 

If a business promises you one thing, but delivers another, yes; it’s a scam. 

If the marketer is sneaky about the profit model so that you get tricked into signing on for something totally different than what was offered. Then yes, that’s a scam.  

But if people do not like a business model, a business model that’s up front about exactly how the numbers break down, then at worst, they could call it a “bad deal”. But someone who calls it a scam because they think the numbers are unfair is more concerned with stirring up sensationalism than with honesty.

Selling a course is not a scam. Offering free training so that people can get a taste of what their paid training is like is not a scam. It’s called marketing. Yes, I know that there are a host of scammers out there—people who copy content and then repurpose it to make money off of people in desperate situations or even worse. 

Just One Dime and I sell a membership that includes a course, so you could call me biased. 

So, let me speak to you as a consumer. 

We purchased Sam Oven’s course, Consulting Accelerator, and it was worth every penny. It helped us a lot. 

I purchased Nathan Hirsch’s Outsource School and it was excellent. It was not a scam.

Yes, there are still good people in this world who create excellent content. Not everyone and everything is out to get you.

Keep in mind, YouTubers are incentivized with ad revenue to scream “scam” at everything that moves. The same people claiming online gurus are just in it for the money, are making lots of money by calling people scammers. 

And if you call other people “scammers”, you come off like less of a scammer yourself.

2. Isn’t Amazon Automation drop shipping? 

For every single Amazon Automation program I have seen out there, yes.

For us, no. That’s why we call it Done For You by Just One Dime. 

We build your Amazon store for you which includes finding the products, differentiating the products, finding the suppliers, negotiating with the suppliers, shipping the products, building the amazon listing, split testing the listing, creating the copy, setting up the PPC campaign, optimizing the listing based on the PPC campaign, and a ton more. 

That is not drop shipping. That is private label brand building. And you own the brand 100%. 

I know a lot of people get triggered when they hear the word “automation,” but look at any experienced business owner who’s been running a business—online or brick and mortar. If they are smart, then they work hard to automate that business as much as possible. 

To “automate” just means to use software and hire people to get the business running for you as smoothly as possible so that the business is working for YOU instead of you working for IT. In other words, automation means you are making money even when you are NOT working on the business. 

That's what we mean when we at Just One Dime say “automation.” Done For You by Just One Dime means you don’t have to lift a finger because our team builds the store for you so that you, the investor, don’t have to do anything. You invest. We build. Together we make money. 

In early 2019, before we knew anything like Amazon automation was trending (I don’t even know if it was trending then), we put on a big conference in Los Angeles for Amazon sellers called Ecom 2019. Many of you saw this as we shared live on Instagram. We were approached by someone who worked with a multi-billion dollar company in Los Angeles to discuss their online sales. This man drove us to their factory in Los Angeles. Many of you got to watch this as we documented it on Instagram. The company met with us—and although I'm not supposed to share who it is—I can share that they were struggling and were interested in our help. 

After that meeting, we realized there was a big opportunity for big brands or people with capital but no Amazon experience looking for help to sell their products on Amazon. That is what motivated us to build what we initially called “Expand on Amazon” and then later re-labeled, “Done For You” by Just One Dime. 

3. Why do you charge 15% of revenue? Doesn’t that put all the risk on the investor? 

Yes, it does if we didn't care about the investor or growing a long term relationship with partners around the world. 

However, in the contract agreement, we use a sliding scale which ensures that we can never make money on a single sale unless the investor makes money too. 

In fact, it’s set up so that the investor always makes as much as or money than Just One Dime does on each sale.  

Let me give you an example:

A product sells for $100. 

The costs are $50, including Just One Dime’s 15% revenue share which is $15. 

The remaining profit for the investor is $50. 

You, the investor, make $50. We make $15. 

Let’s say a product sells for $100 at a very conservative 30% profit before taking out Just One Dime’s 15%. 

$100 revenue
$70 in COGS
$30 left over

$15 of the remaining $30 goes to the investor. 

Using our sliding scale, if the product is less than 30% margin, then our 15% revenue cut drops to 10%. If the product is less than 20% margin, we only get 5% revenue. If the product is less than 10% margin we get nothing on the sale. 

No matter how you cut it, the investor always makes as much as or more than Just One Dime on the sale. 

4. What if the store is not profitable?

Then Just One Dime does not get paid on the sale. We will not invoice the investor if the Amazon store is not profitable. In fact, it has to be at least 10% profitable in order for us to receive anything on the sale. 

Let me show you our tiered system which ensures that the investor makes as much as or more than Just One Dime:

0% to 9.99% margin - Just One Dime receives nothing

10% to 19.99% margin - Just One Dime receives 5% sales revenue

20% to 29.99% margin - Just One Dime receives 10% sales revenue

30% and above margin - Just One Dime receives 15% sales revenue

Revenue share is capped at 15% sales revenue

Keep in mind, that when Amazon pays the investor, the payments go into the investor's bank account. The investor controls the Amazon revenue and then we send an invoice every three months. We build this relationship on trust which is why we put the power of control of the Amazon income in the investor's hands. 

5. How do you get such great profit margins?

We only launch high ticket items. By selling a product for $100 to $200+ the profit margins are much greater than selling a product for $20. There are two main reasons a more expensive item can give you far better margins: 

First, high ticket products’ profit margins are less affected by fixed costs. If you sell a $20 item versus a $100 item, and both items are the same size and weight, the cost you pay for the FBA fee and shipping fee are the same

For example, if $5 is going to FBA fees on a $20 product, that eats 25% of your sale. Add to that, if the shipping is $5 per unit, that eats another 25% of your sale! But if $5 is going to FBA or shipping on a $100 item, each of those is only 5% of your sale

By leveraging fixed costs, you can make way more money selling a high ticket item. 

Second, PPC fees are almost always lower for high ticket items. 

Why? Because fewer sellers are bidding on the keywords for higher ticket products. If 1,000 people are bidding on a painting versus 10 people bidding on a painting, which scenario drives up the price more? Well of course the 1,000 people scenario. 

PPC is essentially an auction. You bid on ad-space. And because far fewer sellers sell low cost items, PPC is way way less expensive for high ticket items.  Additionally, even if the PPC bid was the same for a low price and a high price item, let's say, $5, then $5 is 25% of a $25 item but only 5% of a $100 item.

See below an example of the proforma, cash flow sheet template we use for calculating all the revenue and profits. 

Done For You Performa

6. Why not invest your own money?

For the same reason companies go public on the stock market and investors invest to grow their money. 

Our tax advisor and CPA is on the same team who does Robert Kiyosaki's taxes. Their team wisely said, "If you want to grow your wealth, don't just invest your own money. Invest other people's money." We want to make more money. By combining investors' money and our 50+ combined years of experience we make money together and everybody wins. 

Put another way, would you rather own 10% of a watermelon or 100% of a grape?  

There are a lot of people with capital who don’t have the time and don’t want the hassle of learning how to build an Amazon store, so they’d rather pay someone to do it for them and enjoy the monthly cash flow off of that investment. 

I'd rather have 10% of a watermelon than 100% of a grape.

7. Why do you charge a $10,000 service fee per product?

Because that's what we are worth. More specifically, it's for finding the product, building out a differentiation plan, finding & negotiating suppliers, managing creation of a mold (if needed), overseeing product inspection, managing logistics, keyword research, creating listings with strong copy, creating PPC campaign, testing the campaign & optimizing based on keyword reports, split-testing, and a ton more.

The fees up front are for our 50+ combined years of experience. It took us years to reach this level of experience. We've failed and succeeded a lot. Investors who look at Done For You by Just One Dime value their time and therefore would rather pay for someone to do the work for them and turn this into a cash flow machine.

8. Why don’t you offer a refund guarantee? 

Because this is an investment opportunity for investors, not an Amazon product for consumers. When an angel investor invests in a company there is a 90% chance he/she will lose every single penny. But the 10% chance he/she will win, will more than make up for their losses.  When you invest, there is no guarantee. You could lose every single penny. 

Yes, the risk is very low for Done For You investors because we've been selling on Amazon for years and have made a ton of mistakes so that we know what not to do.  But it’s still a risk.

Imagine people who invest in stocks demanding the companies pay them back any money they lost. In other words, "I will only take a risk if there is no risk." That's the thinking of a consumer, not a business person. 

When you invest in a company, you take the risk on the credibility of the team or company you are investing in.

Here is how it works:  We launch, manage, and grow your Amazon brand into monthly cash flow. 

You invest. 

We do the work. 

You own the business 100%. 

Together we make money. If this is something you would love to do, click the link below and apply. 

If you want us to build an Amazon store for you, click here, fill out the application and our team will get back to you within 24 hours. 

Good luck! 

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Seth Kniep

Married a pearl. Fathered 4 miracles. Fired his boss. Turned a single dime into $104,857. Today, a self-made millionaire, Seth and his team of 8 badass coaches teach entrepreneurs how to build passive income on Amazon.

Dead serious about building income on Amazon with eight successful coaches in a community of badass Amazon sellers? Join the Amazon FBA Mastery membership.

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