And Amazon is all about Cash flow. Keep the river full and flowing.
What is success? Most people think it is profits in the pocket. But more important than profits is cash flow. You channel too high a percentage of that flow into your pocket and the river runs dry. There are many business models out there but I think we need to look at Amazon. It has shown greater success online than probably any other single business. Especially since it is exclusively online.
And Amazon is all about Cash flow. Keep the river full and flowing.
A Couple Facts about Amazon:
1. Amazon was founded in 1994, first traded publicly in 1997, and didn’t turn a profit until 2001.
2. The company lost several billion dollars its first few years, money that very few people thought would ever be recouped.
3. Amazon’s profits for its entire existence are still less than what Exxon Mobil (NYSE:XOM) takes home every 2.5 weeks.
4. Amazon isn’t really that profitable in relation to its revenue. Its profit margin for the last quarter was less than 1%.
5. Amazon does everything possible to maintain and increase its ranks of happy customers. Investors have responded in kind, bidding the stock up to enormous levels – currently in the neighborhood of 630 times earnings*.
6. Amazon’s business model – get as many customers as possible, satisfy them as much as possible, let the virtuous circle continue, profit (however modestly). Or as Bezos himself puts it, “Proactively delighting customers earns trust, which earns more business from those customers, even in new business arenas. Take a long-term view, and the interests of customers and shareholders align.”
Dave's Ziglar Quote is right, "You can have everything in life you want, if you will just help other people get what they want."
*630 times earnings - Means the stock value of Amazon is 630 times it's real value.
And Amazon is all about Cash flow. Keep the river full and flowing.
A Couple Facts about Amazon:
1. Amazon was founded in 1994, first traded publicly in 1997, and didn’t turn a profit until 2001.
2. The company lost several billion dollars its first few years, money that very few people thought would ever be recouped.
3. Amazon’s profits for its entire existence are still less than what Exxon Mobil (NYSE:XOM) takes home every 2.5 weeks.
4. Amazon isn’t really that profitable in relation to its revenue. Its profit margin for the last quarter was less than 1%.
5. Amazon does everything possible to maintain and increase its ranks of happy customers. Investors have responded in kind, bidding the stock up to enormous levels – currently in the neighborhood of 630 times earnings*.
6. Amazon’s business model – get as many customers as possible, satisfy them as much as possible, let the virtuous circle continue, profit (however modestly). Or as Bezos himself puts it, “Proactively delighting customers earns trust, which earns more business from those customers, even in new business arenas. Take a long-term view, and the interests of customers and shareholders align.”
Dave's Ziglar Quote is right, "You can have everything in life you want, if you will just help other people get what they want."
*630 times earnings - Means the stock value of Amazon is 630 times it's real value.
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