#778 - Agencies vs. Products + What Happened in the Amazon Aggregator Space?

Tropical MBA: Entrepreneurship & Founder Lifestyle

This week’s episode is for the business finance and idea nerds.

We’re joined this week in a business breakdown session with Alexej Pikovsky of Alphawellbrands.com. Alexej raised 4MIL to build a CBD marketplace. They were forced to pivot and have currently acquired an Amazon FBA brand and started up a success agency in the process, the combined revenue of both is on track to be over 4MIL this year.

We’ll dig into the Peter Paul problem– how to choose where to focus your energy when you have multiple businesses?

We’ll also cover his perspective on what happened in the Amazon aggregator space. How did so much capital implode so quickly? (Thrasio raised 3 Billion dollars and provided exits to many TMBA listeners). Is there room for smaller roll-ups that work in 2024?

Takeaways
●
● Transition from a CBD marketplace to an SEO agency and FBA brand.
● The aggregator model faced significant challenges post-COVID.
● Many D2C brands are struggling with profitability and valuation.
● Acquiring the scented candles brand was a strategic move in a declining market.
● The agency provides valuable insights but distracts from brand focus.
● Investor relations are crucial for long-term success and exit strategies.
● The e-commerce landscape is evolving, requiring new strategies for success.
● The agency's role in the overall business strategy is under review.
● Future growth may depend on focusing solely on the brand.

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Past guests on TMBA include Cal Newport, David Heinemeier Hannson, Seth Godin, Ricardo Semler, Noah Kagan, Rob Walling, Jay Clouse, Einar Vollset, Sam Dogan, Gino Wickam, James Clear, Jodie Cook, Mark Webster, Steph Smith, Taylor Pearson, Tommy Griffith, Justin Tan, Matt Gartland, Travis Jamison, Ayman Al-Abdullah, Tynan, Lucy Bella Simkins, Brian Balfour, Nick Huber, Mike Michalowicz, Greg Crabtree, Jordan Gal

Additional episodes you might enjoy:

“The 4 Most Eye-Opening Lessons I’ve Learned From My Coaching Clients”

“You’re Gonna Mess It Up The Way Everybody Messes It Up”

“When is my LTV good enough?” + Founder Mode for Bootstrappers

$100K MRR in 12 Months… Can They Do It?