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Hey guys, this is Mikel Erdman with MySMARTblog and I just wanted to share with you a headline that I saw that came out just a few days ago. It talks about Amazon.
It says Amazon sores after huge earnings beat, and as I read through the article, I saw that the, again, one of the most important parts of them creating profit in their business right now is their advertising category.
It says Amazon’s “other” category, which is primarily made up of its advertising business, generated $4.8 billion in revenue during one single quarter, which is a 41% increase.
Remember, this is the advertising revenue that they’re deriving from pushing referrals through the Turnkey program over into the Realogy ecosystem and deriving a lot of ad revenue from there.
That’s the focus going forward. In the same article, Mark Cuban talks about artificial intelligence and how big companies spend billions of dollars to be able to leverage social psychology and Amazon is the best in the world at that.
So I want you to listen to that real quick. Here’s what he has to say.
It’s hard. AI is hard. Whereas companies like Google, Facebook, Amazon, Apple, Netflix, IBM, they can invest billions of dollars and afford to make mistakes and learn from their mistake. Most companies cannot. The hardest part of AI is getting to the point where you know whether the results are valid or not.
You asked when I came on whether Netflix was my largest position, Amazon is actually my largest position and will continue to be simply because I think when it comes to using data and selling products and services, not only they, the smartest company in the universe, but they’re also the ultimate startup.
They can not only use that data to know what the sell on, how to sell it, but also to help guide them on what business to get into.
All the bang, have an AI advantage in this AI “have and have not” universe that I don’t think people are truly respecting or understanding.
So there you have it. This is the reality. Big companies have massive amounts of money.
We’re talking billions of dollars to spend to challenge local producers in the real estate mortgage game.
They’re using every tool at their disposal in order to grow that market share, and that’s the long-term plan. It’s going to drastically change our industry in the next one to two years.
If you’d like to know how to combat that, how to compete in your local markets and generate more repeat business and referrals, drive deeper relationships, and get more deals that close, come to my training, to mysmartblog.com/training
It’s free to sign up and I’ll give you some very specific tools and ideas that you can implement right away in order to grow a business and compete in this digital world where big companies are spending billions of dollars to try to take your business away.
Thanks so much. Look forward to seeing you there.