This is Part Two of our interview with Mo Johnson, the owner of Better Display Cases. In this part of the interview Mo gives indispensable wisdom for anyone launching a business. For Part One click here.
I got a few interviews on some websites that were kind of biggish. I never made it to ESPN, but I was making a name for myself. But then along the way Google changed the rules and it became much more difficult for an independent website to rank for those kind of search terms. I don’t blame Google. When I started, a lot of people didn’t think the Internet was a big deal, so it was easy to compete if you just knew a little bit you could rank very high. So I just learned a little bit, in retrospect, and I probably thought I was a genius. It was just a few simple things I was doing. First of all you have to search for a keyword that is profitable, and you know, by the way all this stuff applies today to what I’m doing now so it’s worth talking about. So the first thing you want to do is find search terms that a lot of people are looking for, but there is relatively little competition so you can do well. You also want them to be profitable so product stuff is really good. Where were we?
How you got started with the idea for the business.
Google sort of changed the rules so for product search terms. I wasn’t really adding a whole lot of value for the most part. The only thing you had to do to rank high back then was find the keyword, put it in the title, put it in the first paragraph, put it in the last paragraph, maybe in the middle, put it in the meta tag which is a simple thing. I was using a particular website builder. You are telling Google what the keyword is that you are focusing on. You need to put that in the description and also the meta title. It was good to have an image or two that again use that keyword you have all this stuff going on in the page that tell Google this page is about this keyword. At that time, that was all you had to do. It didn’t really matter if it was a quality page or not because nobody else was doing this, so you could easily rank at the top. But Google got a lot smarter and they look at a lot more factors. The truth of the matter is, for the customer honestly it’s probably better for them if they are looking for Alabama Crimson Tide football to go directly to Amazon or directly to the eBay listing rather than going through my page which honestly didn’t really add a whole lot of value, you now what I’m saying? I understand why Google did it. But whatever, it happened. All I’m saying is my traffic went from way high to just nothing, or almost nothing. So that went away. So I struggled a bit to try to make it work. Eventually I pretty much gave up. I still have that website. I still have SECSportfan. It still makes money, but not enough for me to spend much time on, unfortunately. So that is kind of a downside of what Google did, because there were probably more quality sites back then, because there was more reward for it, in my opinion. You need to be a big company that can invest a lot of resources to make it a high quality website for there to be any return on your investment.
So how did you transition to display cases?
So eventually I kind of dropped that idea and around and about that time I had to come up with something different. I was retiring. By the way, I applied for government jobs, and I would have been very happy to receive a government job. If I had, that’s probably what I would be doing. I would be driving up to DC and sitting in a cubicle and doing the government thing and that would be okay. Might be better.
It doesn’t sound like you’d be very passionate about it, though.
No, I wouldn’t be passionate at all. That’s what you give up. Now that I’ve been on the other side, that’s not a bad deal. I mean, being an entrepreneur in my experience has been very hard. Very hard. I can’t overemphasize that. And very risky. And I’ve been very lucky, very blessed, but there is no guarantee. A lot of things that could happen that my business is ruined. Every day you have to worry about that as an entrepreneur if you own a business. If somebody wants to hand me a government job at $100,000 guaranteed money, not much stress, not even much work, I’d want to talk about it you know what I mean (laughing), for the good of my family. You have to understand, I have a lot of…
You have a big facility here, over 5,000 square feet you were telling me when you took me on the tour, and something could happen. You could have a fire, act of God, who knows. There’s some risk.
The more concern is my selling channels like Amazon. Right now I have a fantastic relationship with Amazon, better than ever. Amazon has improved things, I think, so that they are not as arbitrary. If you were to search on the Internet something about, I don’t know, “seller stories with Amazon”. There are all kinds of horror stories. I have a friend who lost his account on Amazon, mostly because of things that were not his fault. It’s not right. That’s scary. Amazon has just recently done some things. I was afraid, see this is what I was getting at with the stress thing. He lost his account in November, early November, I was afraid I might. We had some of the same issues. It wasn’t real clear even what the issues were. We still don’t even know why he lost his account. He just lost it. Part of it probably was some things he was doing that I’m not doing. He was selling MLB licensed products, and I guess he shouldn’t have been. He bought the MLB licensed products, but Football Fanatics which is now called Fanatics apparently has purchased the rights to all MLB licensed products and they told Amazon all these people shouldn’t be selling. Now there are all these lawsuits because this doesn’t seem right. All these people bought legitimate products that they were selling so it doesn’t seem right that they can be told retroactively told sorry you no longer have a right. There are some legitimate issues there. It’s all being fought out in court. In the meantime, though, my friend lost his Amazon account. Now he had some other things going on, I think. My only point about this whole thing is it’s uncertain, and it’s stressful. That’s kind of what I was getting at there.
Luckily, on the way, I was also worried about some shipping issues at the time. I was getting all these red flags on my account. Your shipping is late. That’s a whole another issue about Fatheads shipping that I rely on and that’s another problem. That’s another reason that I would just assume get away from Fatheads because I have to rely on their shipping when its late it reflects on me, and again, I could lose my Amazon account. Turns out there were some issues Amazon was not tracking things correctly so really it was more Amazon’s fault.
A couple weeks later, while I was in the middle of this stressful situation, I got an E-mail from them saying “congratulations, you’ve been selected as one of our top sellers, and you are now in a special program”. I was assigned to a special account and given a somebody who would help me with any problems that I had. I did have some problems at that time. See I told you with this interview, I could talk all day.
It might be a two parter here. We’ll see.
Direct me another way. I don’t know. Anyway, we were talking about #1 product, right?
Tell me about the #1 product.
So my #1 product was banned from Amazon.
Banned from Amazon.
Banned from Amazon. Gone. Deleted. The reason for that it had MLB in the title. It said MLB. It’s not. It has nothing to do with MLB. There’s no logo on there. It was just to help the customer understand that if they had an MLB baseball bat it would fit on the display. It had MLB, something else, something else, all these key words. Totally stupid. But Amazon, they are this big huge company they send a notice “get rid of MLB”. Zoom. Hundreds of thousands of listings with MLB in them are gone. So I went from selling 20 of those per day (pointing to baseball bat display on wall), #1 product, very profitable, to nothing. And I had hundreds of them because we were getting ready for Christmas. So I had sent hundreds of them to Amazon. They were sitting in the Amazon warehouse and I’m paying storage fees every day. What am I going do? I’m losing money. But maybe they’re going to reactive it. They tell you to go get permission from the MLB to sell it. I went to MLB. Of course it takes weeks, and eventually they did send me a reply “Oh, we’re very sorry for this problem. We never complained about your listing. I don’t know why Amazon did this. Please let them know we have no problem with your product.” Of course, that took about 3 weeks before I got that E-mail back. By then I had already fixed the problem because of my new guy who was assigned to me and he was able to sort of intercede because he works for Amazon. It took him about 10 days to talk to different people and whatever he had to do to get that reactivated. So we just got rid of the term MLB. So that’s back up. Then, and not just that one, we had about ten products like that. A lot of baseball stuff. All our baseball stuff had MLB in it so were all thrown off Amazon then it was all reinstated. But when that happens you’ve lost sales history, now, so the product loses it ranking. You know, there are a lot of factors that Amazon uses to rank products but the most important one is sales velocity. So if you’ve lost your sales, you’ve gonna lose your…
You start all over again.
So we were down at the bottom of the page. And so I had to do a lot of things. But now it’s back stronger than ever and hopefully we won’t have any more problems. All this relates to a whole bunch of things, including the stress on an entrepreneur who is the owner who is responsible at the end of the day. If you’re an employee and the business goes bankrupt you just go find another job. It’s not such a big deal. One of your questions was would you advise someone to be an entrepreneur. No. No. If you can get a good job that isn’t stressful. Now, there are a lot of rewards from being an entrepreneur so I also wouldn’t say don’t be an entrepreneur. And really I can only answer that question ultimately probably on my deathbed looking back and we’ll see. I don’t know. If I become a millionaire because of it, then yeah, it was great. For every millionaire I’m sure a hundred people fail.
We will continue this interview in Part Three. Stay tuned for another post…