Podcast Episode #47 - Scale Your E-Commerce Brand | Neil Twa - Voltage Holdings - AFLUENCER

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Podcast Episode #47 – Scale Your E-Commerce Brand | Neil Twa – Voltage Holdings

Zeljko Nemet

YouTube Chancellor

We’re thrilled to present the latest addition to Afluencer’s content lineup – our podcast series featuring insightful conversations with influential brand owners. In this inaugural article, we have the privilege of introducing Neil Twa, the visionary founder of Voltage Holdings, as our esteemed guest.

Meet Neil Twa: The Mind Behind Voltage Holdings

Neil Twa, the innovative mind driving Voltage Holdings, takes center stage in the Afluencer podcast series. With a wealth of experience in the world of influencer marketing, Neil shares captivating insights, challenges, and triumphs that have shaped his brand’s journey.

Podcast Premiere: Delving into the Voltage Holdings Universe

Join us in exploring the enchanting world of Voltage Holdings through the eyes of Neil Twa himself. We’ve embedded the riveting YouTube podcast video below, offering an exclusive glimpse into the transformative power of influencer marketing.

Also, listen to the Afluencer Podcast on:

Transcription Insight: A Peek into the Conversation

Gain an insider’s perspective as we burrow into the transcription of our engaging conversation with Neil Twa. Discover the strategies, anecdotes, and wisdom that have fueled Voltage Holdings’ success, all captured in this in-depth transcription.

In Conversation with Neil Twa, Founder of Voltage Holdings:

Neil:

So in the simple terms, we continue to launch and grow and scale brands across e-commerce channels Amazon, FBA, Shopify. Tick Tock. It just kind of demands wherever the brand goes to man camps or on Amazon, demand awareness on Tick Tock shops or we probably will get into today is the halo effect and why it’s an omni channel strategy is something that everybody in 2024 needs to be doing.

They should have been doing it two years ago, but it’s not too late to get started. It started with us building our own brand, got our first seven figures in 2014 on Amazon and then been into omni channels and we’ve call our as seen on TV strategy because the first product base I created actually came off a television after the outcome is there’s some challenge in every business lie and you just may have a better aptitude at the marketing social media and pay traffic angle where others may have it more on the demand capture SEO side of Amazon and logistics and operational control.

Brett:

Welcome to our influencer podcast. We’ve got an e-commerce expert on today who we’re going to talk about a variety of things. We’ve got Neil Trois, who’s got a bio about as long as, as, as anything we’ll have to draw down. But Neil is an e-commerce expert entrepreneur, investor, speaker, podcast host himself. So we’re looking to kind of pick Neil’s brain today about what he’s up to and then what’s going on in the e-commerce world, especially with regards to selling to consumers marketing, getting in front of people, which we all struggle with.

I think as AdWords and Google changes its algorithm, AdWords becomes more expensive and Facebook becomes expensive. Everything does. Yeah, and everything. So Neil, you know the drill. Welcome and give us a little tease. Neil, what are you working on these days?

Neil:

Yeah, so in the simple terms, we continue to launch and grow and scale brands across e-commerce channels, Amazon, FBA, Shopify, tick Tock, It just kind of demands wherever the brand goes, Demand camps are on Amazon, demand awareness on Tick Tock shops, or we probably will get into today is the halo effect and why it’s an omni channel strategy is something that everybody in 2024 needs to be doing.

They should have been doing it two years ago, but it’s not too late to get started and that’s probably some of things we’ll cover today because it’s very important around that out with costs, CPM going up, ads, issues with account closures and just you know, the differences in simple terminology between demand capture and demand creation. Those are be something I think we can probably begin today.

Brett:

Yeah, that’s great. Yeah. And actually I’d love to dig into that in a moment. First, we can just kind of set the table. How do you specifically work with brands? Are you buying them outright or are you investing in them or are you consulting with them or is it all the above? How does your current portfolio look in and how what are the mechanics of that in terms of.

Neil:

So all of the above, It started with us building our own brand, got our first seven figures in 2014 on Amazon and then been into omni channels. We call our as seen on TV strategy because the first product base I created actually came off a television ad and so I started to create that demand capture growth aspect on Amazon first before it kind of became cliché.

And then as the Internet and social webs went out much larger and faster in the last five, seven, ten years, a lot of demand capture on the DTC side as well. But predominantly Amazon’s kind of become a foundational component of spillover and effect. So we’ve sort of stayed predominant in that. So we invest, we grow, we can sold, we acquire and exit brands on Amazon FBA, but we always want them to have omni channel.

Now we always want them to have some other percentage of revenue from another market channel, not just Amazon, because of the demand capture and aspect of creation and domain awareness that can occur on that social media side that can incur on the DTC side, that can occur in places like Tick Tock Shop and stuff, and then seeing up to 3% of it still back to Amazon where the captured demand could be there.

If you’re doing it correctly. If not, I’ve seen just recently someone did very good on a on a video that went viral on TikTok shop for their product and their brand. But the spillover actually affected another brand on Amazon, and they stalked out because so many sales came in so fast, they couldn’t keep up with demand. It wasn’t even there video.

It was a competition video that went off on another channel and they got to capture that demand on Amazon and basically blew out their inventory. So there’s a lot of cause and effect occurring. But yeah, we are in each component of that phase growth optimization, scale and exit and yeah, interesting.

Brett:

What’s the motivation for the omnichannel and diversifying then? Is it a margin thing? I know Amazon likes to squeeze its partners like they’re doing B2B or is it like a survival kind of thing? Just stuff changes so fast. We need multiple channels and well.

Neil:

I mean, business is nothing but a series of problem solving activities every day anyways. So whether you’re on the DTC world trying to solve it through ad acquisition, media ad CPM, rising cost attribution issues, you know, iPhone, IOS device updates in the past, the newest ones that are affecting people to the outcome. Is there some challenge in every business lie and you just may have a better aptitude at the marketing social media and pay traffic angle where others may have it more on the demand capture SEO side of Amazon and logistics and operational controls, which is what more of that platform is about today, which is where a lot of people I think missed that.

Mark. And so when you hear less screaming about Amazon today, it’s typically those lower price, lower retail sellers that are screaming about Amazon’s changes and fees. Whereas since we’ve been playing in the 50 to 200 plus in retail price point, the fees have actually gone down in the market share is going up. So we’re going the other direction with the way we play with brands.

We started out on the low end and over ten years we’ve now moved into the higher end products, higher end affinity brands and are seeing more positive outcome from that. But again, it’s a series of problem solving over there because you’re on a platform like any platform people, while Amazon is in control of all your platform, we’ll try running Facebook ads and see what happens when they shut down your account, Right?

Go over to Google and see what happens when you get banned. Go to Shopify when they banned your channel too, because they can do that too. And go to Etsy, go to any platform, you know. So at the end of the day, we need to just look at all of them as tools. And some people like certain tools versus other somewhat Makita somewhat DeWalt.

So on Amazon. So much Shopify. But in this day and age you need to understand a tool is a tool and you can use it to your benefit. Then you should take every opportunity around the channel to use it, especially if you’re building e-commerce companies with the end in mind, which is where I get down to the core component of voltage really loves to do, and that is look at acquiring companies for our IP groups and building a portfolio of assets that voltage runs in a omni channel situation that allows for growth through different changes in the market, inflation, stagflation, etc. don’t get affected as much when you have more channels of operation.

Brett:

Yeah, got it. So let’s break this down from a getting started standpoint. If I’m taking like an average Shopify store owner and this is something that we see a lot with our customers, users, people that we interact with, right? So they install our app and they’re relatively new. They’ve done a lot of work to get things up and running.

There’s a store, there’s a product they’re shipping, they’re live there in the U.S. and Canada, and they’ve got maybe some traffic coming to the store. And now they’re scratching their head saying, Man, what do I do? I’ve invested a lot to get to this point. And I think that’s a point in which they realize, and I’ve got a lot farther to go even to get that single channel going.

If they’re just looking at their Shopify type of empire, they’re right. Or what they’re hoping to build. So how do you break things down in terms of that order of priority? Be like, Hey, here’s what we got a new next year or we got to didn’t actually put a well, I think in terms of problem solving, yeah, but of course then limited resources, right.

So what do you sell first.

Neil:

Well I mean limitation of resources is always just risk because it’s technically not limited. It’s limited by your risk. Could you go out and get at a large capital line to run? Absolutely. You just have risk and not knowing how to apply it correctly or use it correctly. So therefore is your risk. So really, when people say they have capital limitations, it’s actually at risk limitations in what they do, Right.

Would you agree? Because at this point, you know, if I don’t know where to put it and I’m going to spend it and blow it and I won’t see it recouped.

Brett:

Yeah, that’s an excellent point. Yeah, that is a good point because you’re is it different and then it’s a different game you’re playing.

Neil:

And then it’s a different game, right? So when we.

Brett:

Got hit these milestones where.

Neil:

You risk it if you’re already down the line of building a DTC brand and you’re up to that point, you’ve done your optimizations and obviously you think you can get your add to cart, you know, above three 7% and you can get down to, you know, click through rates and get everything kind of optimized, which is a big component of mechanics on the side of the DTC world.

Unless you have someone who can copy that, optimize that for you and really get that dialed in. But the other effect of, of course, is you need to be smart at marketing and you’ve got to have an understanding of media buying an algorithmic traffic or you simply will just blow money on algorithms who really just want to take your money because that’s their profit center.

Same thing on Amazon, right? Amazon’s PPC side is the same deal. They’re becoming an advertising juggernaut. They’re going to surpass their AWP is as profits as a business with advertising by 2026.

Brett:

Oh, is that right? I didn’t realize that. So these are in in platform ads on Amazon then paper though.

Neil:

Yeah well Amazon has become demand capture when it was originally demand exposure it is now demand capture of anything that spills over from a comfortable zone because it’s the sixth largest logistics company. Everybody expects it and they are moving to one day shipping. So as in as a mechanism of deployment, that’s hard to beat. So you have to kind of look at how do I take advantage of that if I’m running mirror and tick tock shop traffic and over here and I’m getting acquisitions even at higher cost, I need to be able to look back to Amazon and say, Do I have anything that’s capturing the spillover?

Because that’s most likely where it’s going. Recent studies show that 30% of traffic on television ads that come off of physical product ad are actually ending up on Amazon, even if they don’t say, go to Amazon for this product. So if so, yeah, I started Amazon FBA first and have for many, many years. And while I’ve done DTC, I always like the aspect of proving that I can capture demand in the market with Amazon first.

And then when I do outside marketing, I know that demand is going to capture it backwards. If I don’t, the causality is a somebody goes off viral 2 million, you know, TikTok video views over here. And I mean I account for that traffic back over here. It may spill to somebody else’s brand and I want it to spill to mine.

So if I’m going to go out in the DTC world, I want to make sure someone knows how to get back to me. And that really becomes Amazon. It is kind of a known go to low barrier, a lot of money being spent on Amazon, $4 per person per year on prime memberships. You know, that’s a great, great place to capture that demand, creating demand and having that audience, you know, conversation and creating that audience conversation really does take marketing skills and marketing as just an activity, as sales.

And so many people get caught up in that activity and forget about the revenue aspect of it, like actually producing revenue, meaning they’re not willing to spend enough to figure out what it takes for them to actually acquire a customer. Okay, Once you acquire that customer and you have, say, a $39 product, maybe hypothetically, or a $25 product, but it takes you 49 to acquire that customer, you’ve solved one major problem, right?

You may think, Well, Neil, that’s stupid. I’m now $20 upside down in acquiring that customer, that for a $39 product or whatever, and I have spent $59 to get it. I’m 20 bucks upside down. You need to make that up and back in sales. This is where you actually have one on one game and lost on another. You need to be able to sell them a second product or a third product or a subscription.

You need to get them through text messages and SMS systems and direct mail. You need to go down deep in the follow up and in the bottom of the funnel stuff. It isn’t that you pay $20 more to acquire that customer is that you actually acquire the customer. Kudos. And I think people are not willing to go out and see what it takes for them to actually acquire a customer first, to then learn how to monetize that backwards into their systems.

Does that make sense?

Brett:

Yeah, that’s a great insight and that’s, I think, how the big players can we say, Yeah, right. And kind of always have. Right. Walmart didn’t give away the DVDs upfront because.

Neil:

Buying got to buy the market.

Brett:

Share in a big store, right?

Neil:

You got to buy the market share and then find additional products is why there are 250,000 SKUs of which only like 8% make their 460 something billion a year.

Brett:

Oh, interesting. Is that low?

Neil:

It’s very low on the overarching amount of products they actually make the majority of their profit on. And that 80 sort of 20 rule, if you will, flows through e-commerce companies too, which is why our five by five plan is to get five products in the marketplace to prove which is the 8020, so that we can take that and turn it into ten and 15 SKUs at that point.

Brett:

By per company is your goal.

Neil:

What, five by five is our is our playbook, which means we’re going to launch at least five products in the market. It’s a law of averages, right? You don’t invest a lot into just one product. I mean, I know that sounds great. At some point you will, but right upfront, you don’t know what your market, your seller account, Amazon, DTC, tick tock or whatever is really going to bear.

Ultimately, you see someone else doing it. So you think I can just immediately replicate it. But that’s a logical fallacy in this argument. You can’t just duplicate it. What you can do is say, How can I capture that market share in my account, my price point, my brand, and in my ads and in my space? And then not really worry about them for the moment, just start acquiring share to start getting in there.

And I think a lot of people miss that point when they go to market. I’m, you know, now aware that I need to spend 30, 60, 90 days acquiring market share before I start making profit. If you can’t do that, then who is ultimately going to win? So means you actually have to understand what it takes to bear the market.

That’s you can go test this on your own. It may take you 85 days or 65 or 125. The point is it’s going to take whatever time it’s going to take for you to acquire that market share and then prove that you’re going to do it. That’s why in the real world of e-commerce, it’s not really a side hustle or a hobby business.

Not ultimately it can’t be, because now you have to be willing to take certain risk to grow the business. When things start to work, you’ve got to capitalize it. It is the same risk on any other channel that most people fall into. Dropshipping does not work the same way it used to anymore. It won’t fly on TikTok shop anymore, right?

They’re getting to the FBT platform side of it now. Shopify tried to do that, but they discover they’re they’re failing at it miserably. And then in their last stock update, they’re down 20% because most of the people who are trying to get in and use Shopify for that quick side hustle thing aren’t making more than a thousand bucks and are bailing out and they’re bailing out really fast.

Brett:

Yeah, it was impressive. They managed to scale to the size that they did with a ladder. So many side hustles, right?

Neil:

So many side hustle, so many dropship, so many of all of those things. But like any sort of longevity and any sort of bell curve of growth and adoption, there has to be some stabilization to the platform for the people who were on it or it will start to decline if the people are on it or just paying monthly fees and making no money, it’s going to decline.

And there are other places in the market, in the industry that that’s occurring right now where people are bailing out of those platforms, those funnel platforms, because they simply aren’t able to make it work. They’re just paying monthly fees. And so you got to get in front of that. Sales is everything is the mantra. We keep saying around here.

Sales fixes everything, right? And so first you got to get to the sales, what by whatever means possible, even if it’s not profitable in the first acquisition, you’ve got to get the sales from there. Then you got to work the numbers. And I think a lot of people just don’t understand that. And you mentioned affiliates at one point or influencers, right?

Yeah.

Brett:

What’s yeah, I love to talk affiliates, influencers and even with regards to your initial portfolio, so and I totally agree, right, You got it. You got to acquire customers and then you worry about making money later, but you better figure out how to get a customer right and then what it costs. And so what’s your initial meal kit?

Hey, this is what we’re going to start with. We are going to start, you know, we’re going to do some AdWords, going to Facebook ads are going to do affiliates, influencers. What’s your starter kit for?

Neil:

Or my starter kit is Amazon first. It is. And I know that’s going to not ring well with a lot of people’s ears right? The reason is because I don’t have to split test the funnel. All I have to do really because the funnel of Amazon’s FBA or fulfilled by Amazon is really done for you. So in that base, all I have to do is make sure I get the product in there and let their logistics inventory and split tested trillion dollar funnel do its thing.

What I need to do is be very good at the marketing side, the language side, the copy side and the in the avatar aspect of developing that marketing profile for the person that I’m targeting specifically in the solution they’re trying to solve, which is less, you know, going for that higher priced solution, less reviews, more specifics, pain points, etc., and then get in front of them and determine how much I can sell and what I’m what they’re willing to buy from me.

And I can do that on demand traffic, right? Amazon is running 8600 units a minute, so it’s very easy to really determine quickly through organic and PPC marketing on Amazon. Did I hit the metrics right even before the product is sold? I like Dropshipping, but I have to get the inventory and a lot of people don’t like that, you know, But that’s also an asset.

If you think about it from a business perspective, putting money into inventory is an asset. I’m not putting it into a digital thing. I’m putting into a physical inventory. It’s tangible, can be taxed differently and managed differently in taxes and you’re taking cash out of one place and turning it into physical goods. So there are those at business benefit.

I know people argue, Well, you have to do inventory. And I’m like, Well, there are other benefits to the inventory from a business perspective. Yeah, you’d love to dropship everything. I get it. But again, unless you can differentiate the product, control the product, trademark the product, and even utility patent the product, you have not a business, you’ve got a side hustle, you’ve got flip in product for somebody else.

And for us, it has to create intrinsic value, which means we have to own the process all the way through to the end so that the business becomes a salable asset, right? So we control all that. So the affiliate side or influence or components, those are just traffic channels that also have a cost. You may think, well, I gave the free sample away.

No, the sample had a cost. I gave away 100 samples. We gave away 100 products at 100, you know, a unit of inventory that had a cost to it. So that’s like buying traffic really at the end of the day. And the differentiator, of course, is where you do that and how you do that and how you can track it.

I use joint brands and stuff in the class pass to track it. I have problems with that because I’d give away so many units and only get so much video back and then find out that some of those people are just manipulating their likes and user accounts. And so my traffic buys were terrible because I’d give them and, you know, a product and they’d go out and then it’s like, well, there’s no clicks, there’s no comment, there’s no traffic.

Like, you liar, like you just stole that product from me. So that’s a challenge on Amazon side of the house too, because we have much more complicated terms of service. So there are ways to go in and take the organic side of Amazon on the side, PPC side and give it the validation for the market we need before we go out and say, okay, this price point, this product, you know, this mechanism, now we want to get affiliates or influencers.

We found it much easier, much faster to go to Tik-Tok shops because of the influencer component and all the data they give us. The influencer can’t hide like we know they made that gross volume, we know they’re increasing, we know their user accounts going up. We know their, you know, market share is here and we know that 85% of them target, you know, our particular niche because it’s literally set up inside of there.

And so I know also that when I give away a hundred units, I’m going to get a hundred videos back like it’s a cross because I don’t want to get their account dinged. So there are variables of value there and with signed agreements can take that video and then put it back on Amazon and Facebook, etc. and it will do really well.

So once it’s validated on TikTok and generated sales, it becomes an asset that I can turn around and go the other way with and turn it into names on sponsored ads and go out and run on Facebook. Right? So then I can take that asset and move at different directions, opening different channels. And I’ve also discovered that in my experience and the people that are working with us and even clients that I’ve interviewed or people that come on my podcast, there’s the larger amount of spillover that halo effect is occurring.

They actually go back to Amazon from to, Gosh, well, I know nobody wants to hear that and I’m not trying to like take anything from this, especially those who are listening. But you need to understand to follow the people. You might have to pivot if you create demand capture on DTC for your Facebook and your ads and Google on to your Shopify, you need to be able to track where they went after that.

Did they go to Tick Tock or Amazon? Because that’s going to be probably the two places they end up. And if you can track that, you can measure it. That’s really the important output here, right? Not to favor one channel over another, but to your point, I do start on FBA because I want to find out where the capture is.

I want to find out where the demand is.

Brett:

Yeah. Interesting. How long is tick tock had that going with the tick tock shops and to your liking I guess in terms of the analytics and report.

Neil:

Yeah. Well like or dislike because when they rolled out the tick tock shop platform at about October November 2023, not too long ago, they basically in in my case, they went back and retroactively canceled all my Amazon ads to shut down my tick tock shop, which was talking about Amazon. And so they they driver or they rolled it out they did this whole thing and I wasn’t the only one is the fact that they killed what are called brand referral links that track off Amazon sales backwards and actually give us a commission 10% commission of all sales off social media backwards to Amazon.

So instead of paying like a 15% referral fee, we only pay a 5% referral fee, which is cool, except they killed those and then they torched my account and a bunch of other people too, right as they rolled it out. Now they’re kind of laxed on that now. And so you can kind of start using some of that again.

Now that’s out, but that’s just since 2023. But you can see a lot of the, you know, mass and viral traffic that’s occurring and just the speed at which those shops are moving units and growing is astronomically fast because of the way that social media, you know, chain and all this social platform is really moving extremely fast. So when we find them spilling over to Amazon to buy products, right, get a left over here, get good over there.

One of our clients, Tammy, he has a product that’s done about 50 units a day on Amazon. It’s been on there for like ten years. It just keeps chugging along. She has other products, but this one in particular, it got featured on a video on TikTok shop. Suddenly she’s selling out before noon and her product ten on Amazon and they’re over on Amazon buying it now because it’s sold out on TikTok Shop and then she’s got it stabilized.

So she’s making about 5000 unit sales a day on TikTok, and she’s raised up to about 25, 30 sales additional a day on Amazon. So everything just went nowhere. And that’s going to, you know, continue to stay there.

Brett:

That’s awesome. So and when they’re going over to Amazon, these are people who obviously with TikTok shops, they can just buy directly from there. They are. And when you talked about spillover earlier, they’re actually going to Amazon and typing in the.

Neil:

Diving board or the brand name specifically. Yeah. So keyword searches on TikTok are becoming extremely viable, right? Because if you type your brand name in on TikTok and you’re not there, someone else is looking for you. And if you discover that someone’s on their Pro-tip and you don’t see a particular well job they’re doing on TikTok shop, that may be your opportunity to bring a product in there and take advantage of that because the.

Brett:

Search is already.

Neil:

There.

Brett:

Yeah, that’s great. It’s a great tip. Cross-sell. It’s been awesome. Neil I love the discussion here. So for our brands, you could use your help in terms of setting up an Amazon presence in their marketing going how can they find you? How can they work with voltage.

Neil:

Yeah voltage DM icon you can go check it out. Voltage Digital Marketing, Time.com or Amazon centric. Although we do omnichannel and our goal is basically to help new sellers or existing sellers reach up another 100 K and net profits during a 12 month engagement with us with a little skin in the game on that to get the incentive in place as part of our consulting and incentive package that we do.

So we put some skin. We have like one offer. I don’t make this extremely complicated and I can only help those who are willing to help themselves. Really, At the end of the day, I don’t have a sales team and this is on large quota. It’s usually easy three to 5 to 7 people a month come in that qualify for what we’re doing at the pace we want to go in the in the stage we want to go so we’re not a mass marketing course, that kind of nonsense.

We’re a management consultants see just to be very clear. Clear. And so yeah, if there’s anybody interested in looking how to level up or if wanting to get in the game a little bit stronger, you know, we’re usually moving brands pretty fast in the first 12 months and helping them solve the problems of business and overcoming opportunities and frankly, getting them into a sellable state.

Because the last piece of what’s in it for us is that we like to grow these businesses up. And then we have what’s called a first rates of refusal. So they want to be sold that they come to us first and give us an opportunity in by our broker.

Brett:

And yeah, that’s, that’s great. And you mentioned you’ve got a network also of PE firms that you’re working with. Are they you’re so you’re either doing the acquisition yourself or you’re brokering with these.

Neil:

Three RPE groups, which then we end up owning the operations of it.

Brett:

Yeah, very cool. One stop shop. Give us the podcast info too, please.

Neil:

Yeah, High Voltage Business Builder’s podcast. You can go on Apple, Google, Spotify, side, YouTube, go to the Voltage DMC’s site, go over to the podcast interviewing guests of all different types, shape sizes, about 60%. E-commerce, 40% business. The business side of anything from real estate to vending machines to mindset to building wealth without Wall Street. And then 60% is roughly in the e-commerce space between Amazon, DTC, tick tock shops and anything around income.

Brett:

Very cool it’s been awesome conversation Neil I Voltage Holdings Neil thanks so much for joining us.

Neil:

Thanks Brett.

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Female fitness influencers are revolutionizing the way we approach health and wellness. If you’re looking to collaborate with inspiring fitness leaders, you’re in the right place. Afluencer connects you with authentic influencers, ambassadors, and content creators from around the globe. Whether you’re seeking professional trainers, fitness enthusiasts, runners, yogis, or weight loss experts, we have […]

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