Charlie Munger Said the First $100,000 Is the Hardest Money You’ll Ever Make

Many Live Commerce sellers miss the target audience

Many people started online selling businesses (e.g. FBA, whatnot, eBay, TikTok Shop etc) and encountered difficulties generating sustaining revenue. Firstly, don’t be discouraged, the initial momentum is the most difficult to build. And the key is to not boil the ocean. You begin focusing on a small subset of users, customers, demographics etc. then you grow from there.

Use Data Driven Decision Making Process to Identify Target Audience

Let me give a QVC/Online Sales example. QVC’s internal sales data shows that the buyer demographic, contrary to common belief, is actually the affluent Southern California 90210 population. In this case, if you are the owner of QVC, would you stuff your future programs with dollar store items, or with higher end jewelry? The answer is quite obvious. The same applies to live commerce and online shopping.

Say you have a Whatnot live show channel. You are not getting viewers, and people enter your show and leave right away. You wonder why. Here is a chart for live show audience/buyer demographics.

ecommerce buyer demographics show age and gender breakdown Beim Goods

In short, there are more men than women, and their age is <40. The question to ask yourself now is: what do these people want? What are they buying? Am I selling these items?

Applying this principle in general terms, only sell what people are buying. Creating a market is very difficult but riding the existing wave is much easier. And you need to focus on your target customers, before expanding to 8 billion.

We will leave you with a couple infamous quotes from successful entrepreneurs:

Airbnb Founder Brian Chesky received advice from Paul Graham: “Build something 100 people love, not something 1 million people kind of like”

Charlie Munger: “the first $100,000 is the hardest”

How can Beim Goods Livestream Chat TTS help with your ecommerce business?

Beim Goods Livestream Chat TTS reads incoming chat aloud while you host your live show. Given 90% of the eCommerce live show hosts work alone, you can listen to your buyer’s questions and focus on selling the products. Offloading visual sensory bandwidth has been proven to boost effective communication. So you are more engaged with your buyers, address their inquiries, and boost sales. We also wrote a blog to elaborate the science behind, called Modality Effect. You can read more about it.

That’s it for today. Happy selling!