Category-dominating sites are difficult to create and there’s little doubt why. Creating a formidable entity not only takes time, energy, and resources, but it also takes an in-depth understanding of oneself. There are seven crucial factors for success that must be mastered in order to establish front-runner position. Most would-be industry leaders find it nearly impossible to master one of these areas, let alone all seven. The requisite success factors—in no particular order—are:
• Specific Area of Focus: Identify your core interests and desired target market. In other words, what do you have innate love for and whom do you want to serve? From forensic accountants and third grade teachers to underwater welders and golf coaches, exhaustively providing relevant information and continuously adding beneficial, focused content to one specific subset of the population often equates to long-term success. This is not to say that expansion to other products and services is forever removed from the equation; however, this should only happen after market dominance has been established (think Amazon). • Professional Website Design: Clearly a no-brainer, but there are so many poorly designed sites it bears repeating. Model competitive and other category-leading sites that receive significant traffic. Customers flock there for a reason. • Visibility to Target Market: Where do potential customers gather and how can they be reached? One can have the best products and services in the world, but if no one knows about them, their business is irrelevant. Identifying high-return opportunities to spread the word is crucial. • Expert, Valuable Content: Nothing breeds credibility and stickiness (the amount of time a visitor stays on the site) as will pertinent, well crafted content from both contributors the clientele knows and up-and-coming game changers. To establish authority, combine cutting-edge, exciting ideas and information with proven industry products and services. Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher • Interactive/Social Visitor Experience: Leading sites encourage visitors to contribute content, comment on articles and products, and share thoughts via social networks with their tribe. From Facebook and Twitter to StumbleUpon and LinkedIn, today’s customers insist upon leveraging social media to disseminate positive and negative feedback while cutting the learning curve down for fellow surfers. • Free High-Value Products: Like it or not, free is mandatory. To drive traffic, one must offer something of inherent value that pushes beyond articles, helpful resources, and videos. Doing so not only enables site owners to capture leads as the customer typically opts in to receive the free product, it also fulfills the unwritten obligation they have to connect with their audience in a deeper manner than simply posting relevant content. • Products/Services for Sale: Without products and services to sell, the rest of the equation is moot. Even not-for-profits ask for donations. Why? Because hosting, updating, and maintaining even the simplest of sites has related expenses. Creating for-sale products and services is a necessary part of doing business. the recommended manner for establishing authority is to first gain credibility within one specific aspect of the industry and then, if desired, seek to expand. Although it may seem counterintuitive, the more narrow your focus, the wider a net you can cast. Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher When reviewing a new business opportunity, there are six crucial questions. These apply to any industry and almost any type of business.
• Is the market large enough? Is there money in it, are there competitors making money, can you? • Is there an existing customer base? If people are buying, then you know it can be sold, creating a new market means you have to teach the customer why to buy from you. You want a market that knows what you are selling and knows they need it.. • Is there an opportunity to dominate the market? What is your unique advantage or selling proposition? Is there something you have that gives you an edge over your competitors? • Can existing technology be used to rapidly grow the business? Taking new technology into a an old market can give an advantage, and can you business scale? • Can the company be profitable and will investors participate? Can you make money at this, how? • Is there a meaningful exit opportunity? You will want to set up be able to sell your business one day; either to exit and move on, retire, or just doing that so your business systems are stable. Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher If a competitor can outexecute a startup once the idea is known, the startup is doomed anyway.
The reason to build a new team to pursue an idea is that you believe you can accelerate through the Build-Measure-Learn feedback loop faster than anyone else can. If that’s true, it makes no difference what the competition knows. If it’s not true, a startup has much bigger problems, and secrecy won’t fix them. Sooner or later, a successful startup will face competition from fast followers. A head start is rarely large enough to matter, and time spent in stealth mode—away from customers—is unlikely to provide a head start. The only way to win is to learn faster than anyone else. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries Modern production processes rely on high quality as a way to boost efficiency. They operate using W. Edwards Deming’s famous dictum that the customer is the most important part of the production process. This means that we must focus our energies exclusively on producing outcomes that the customer perceives as valuable.
Allowing sloppy work into our process inevitably leads to excessive variation. Variation in process yields products of varying quality in the eyes of the customer that at best require rework and at worst lead to a lost customer. Most modern business and engineering philosophies focus on producing high-quality experiences for customers as a primary principle; it is the foundation of Six Sigma, lean manufacturing, design thinking, extreme programming, and the software craftsmanship movement. Thus, for startups, I believe in the following quality principle: If we do not know who the customer is, we do not know what quality is. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries First off, reality check.
Very few apps make real—if any—money. There are two key reasons for this: 1. Competition: Tens of thousands of apps have been created and more are released daily. Working through the muddle of options and being noticed is difficult. 2. Price: The majority of apps are available for free, and many are them are quite useful. This has made it increasingly difficult to get customers to pay for an app. And even if you sell an app, your marketplace will receive a commission on each sale. That means you need to sell a ton of product to earn real money. You should absolutely think twice before spending substantial cash creating an app, because recouping your investment is far from a sure thing. But if you are ready and committed: First, you must be clear about what app you’d like to create. Ideally, the app should compliment your business or reflect your unique abilities and/or interests. It is crucially important to understand your audience, what they can most benefit from, and deliver desired content via preferred learning modes. Three proven ways to start include: • Determining your client’s needs. • Researching existing apps serving this market. • Drafting your plan. Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher The first point is self-explanatory. The second may seem basic, but it’s surprising how many skim past this step with a mere cursory glance, only to find out after significant time and resources have been expended that a more sophisticated tool exists. Do not be afraid to identify competitive products that may thwart your plans. Successful entrepreneurs embrace similar products and focus on what they can do better and more effectively. The third point is essential. You want to strategize and formulate your vision before the clock begins ticking. Thinking on someone else’s dime is not only expensive, but also unnecessary. Instead, brainstorm with partners, friends, and other trusted sources and create and refine an outline of how the product will look and how it will work. Unless you have money to burn, start the fire with the kindling of your efforts and let the professionals toss in the heavy logs. Finding A Programmer With your idea formalized, the next step is identifying a suitable programmer to bring the concept to fruition. There are multiple options. FREE Numerous free development options exist. However, it’s important to note that in app-land, you really do get what you pay for. That said, if giving things a test run before fully committing is your preference, consider the following: • Sencha: Sencha.com/Touch • AppMakr: AppMakr.com • Free iPhone App Maker: FreeIphoneAppMaker.com • Free Android App Maker: FreeAndroidAppMaker.com Each enables you to create a functional app which can be a great tool for creating a working prototype and begin securing feedback. The downside to free is that, once your name and brand is associated with the app you’ve put forth, an impression has been made and there’s no turning back. If the app’s functionality, appearance, or value is minimal, the consumer will tie this directly to you. Make 100% sure the app is fully representative of the impression you want to make before hitting the “release” button. Minimize costs to produce your app A fully functional, cost-effective app can be built for less than $5,000. Many capable developers have the ability to create a professional looking product that represents your brand and image well. Three sites are solid resources to consider when searching for a developer: • ELance: Elance.com • ODesk: oDesk.com • Freelancer: Freelancer.com Each enables you to provide various criteria such as developer location, experience, and total budget. Talent, of course, varies so be sure to check references and ratings. The caliber of developers available can be outstanding as many have salaried positions and moonlight to make extra cash. Ask for examples of their work and, contrary to popular belief, do not be afraid to select the lowest bid. HIGH-END Developing a full-blown, highly robust app can be prohibitively expensive. It is not unusual for companies to spend upwards of $1 million to create an app with virtually every bell and whistle. Such apps typically involve detailed, interactive components and move far beyond the options offered by template-oriented products. For most, developing a high-end app is not an option. When it is, there are multiple companies who are more than capable of delivering per your specifications. Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher How to monetize your app Not every app is created to generate income. Many companies seek to spread goodwill and garner exposure by giving their apps away for free. This is not unusual as thousands of firms implement this approach. If generating awareness is the core objective, the app typically serves the singular purpose of being a digital brochure. If the plan is to monetize your efforts, there are three proven tactics to consider. 1. Sell It! Fees typically range from .99 to $2.99 with more robust apps costing significantly more, such as VIPorbit’s Business version which sells for $9.99 on the iPhone and $19.99 for the iPad. While seemingly expensive, the robust functionality ofVIPorbit is equivalent to desktop software that can cost significantly more. Additionally, it is available at your fingertips 24/7, which no desktop software can claim. For example, Sage ACT! was recently available for $466.99.…on sale! 2. Sell Ads Within Your App In similar fashion to AdSense, Google’s AdMob.com has made it extraordinarily simple to place ads on your app via their proprietary platform. AdMob “allows earnings to be generated by placing targeted ads based on the site’s content and users.” Additional options include Greystripe.com and Smaato.com. Revenue is directly tied to traffic. Therefore, as more ads are shown, income will increase accordingly. And, while a significant number of views and clicks are required before more than just pocket change will be generated, each provides a reasonable opportunity to offset a portion of development costs. 3. Offer A “Light” Version And Encourage Upgrading This strategy can be very effective. VIPorbit offers a free “light” version, as do thousands of other apps. The free version typically provides customers with a solid user experience, but refrains from allowing access to many key components. In consumer product marketing, this is often referred to as sampling, whereby a taste is offered to whet the consumer’s appetite and, hopefully, leads to the product being purchased. Remember: • Modern technology has largely killed the intimacy associated with developing tangible rapport with vendors, clients and even, employees. • Few apps make real money due to competition and price. • Ideally, your app should compliment your business or reflect your unique abilities and/or interests. • It is crucially important to understand your audience, what they can most benefit from, and deliver desired content via preferred learning modes. • Over 300,000 apps were developed between 2008 and 2010, translating to an astonishing 10.9B downloads. • By the end of 2011, more than 25 percent of mobile web users reported owning no other device to access the Internet. • Apps can be lucrative but must be viewed as a component of the overall marketing/branding mix. Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher Speak through your work
Understand: your work is the single greatest means at your disposal for expressing your social intelligence. By being efficient and detail oriented in what you do, you demonstrate that you are thinking of the group at large and advancing its cause. By making what you write or present clear and easy to follow, you show your care for the audience or public at large. By involving other people in your projects and gracefully accepting their feedback, you reveal your comfort with the group dynamic. Work that is solid also protects you from the political conniving and malevolence of others—it is hard to argue with the results you produce. If you are experiencing the pressures of political maneuvering within the group, do not lose your head and become consumed with all of the pettiness. By remaining focused and speaking socially through your work, you will both continue to raise your skill level and stand out among all the others who make a lot of noise but produce nothing. Mastery by Robert Greene Why you need early adopters and why you only need the most basic product to start a business5/8/2013
We had a working engine of growth. The gross numbers were small because we were selling the product to visionary early customers called early adopters. Before new products can be sold successfully to the mass market, they have to be sold to early adopters. These people are a special breed of customer. They accept—in fact prefer—an 80 percent solution; you don’t need a perfect solution to capture their interest.
Early adopters use their imagination to fill in what a product is missing. They prefer that state of affairs, because what they care about above all is being the first to use or adopt a new product or technology. In consumer products, it’s often the thrill of being the first one on the block to show off a new basketball shoe, music player, or cool phone. In enterprise products, it’s often about gaining a competitive advantage by taking a risk with something new that competitors don’t have yet. Early adopters are suspicious of something that is too polished: if it’s ready for everyone to adopt, how much advantage can one get by being early? As a result, additional features or polish beyond what early adopters demand is form of wasted resources and time. This is a hard truth for many entrepreneurs to accept. After all, the vision entrepreneurs keep in their heads is of a high-quality mainstream product that will change the world, not one used by a small niche of people who are willing to give it a shot before it’s ready. That world-changing product is polished, slick, and ready for prime time. It wins awards at trade shows and, most of all, is something you can proudly show Mom and Dad. An early, buggy, incomplete product feels like an unacceptable compromise. Minimum viable products range in complexity from extremely simple smoke tests (little more than an advertisement) to actual early prototypes complete with problems and missing features. Deciding exactly how complex an MVP needs to be cannot be done formulaically. It requires judgment. The lesson of the MVP is that any additional work beyond what was required to start learning is waste, no matter how important it might have seemed at the time. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries The goal of such early contact with customers is not to gain definitive answers. Instead, it is to clarify at a basic, coarse level that we understand our potential customer and what problems they have. With that understanding, we can craft a customer archetype, a brief document that seeks to humanize the proposed target customer. This archetype is an essential guide for product development and ensures that the daily prioritization decisions that every product team must make are aligned with the customer to whom the company aims to appeal.
No amount of design can anticipate the many complexities of bringing a product to life in the real world. The problem with most entrepreneurs’ plans is generally not that they don’t follow sound strategic principles but that the facts upon which they are based are wrong. Unfortunately, most of these errors cannot be detected at the whiteboard because they depend on the subtle interactions between products and customers. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries What differentiates the success stories from the failures is that the successful entrepreneurs had the foresight, the ability, and the tools to discover which parts of their plans were working brilliantly and which were misguided, and adapt their strategies accordingly.
Numbers tell a compelling story, but I always remind entrepreneurs that metrics are people, too. No matter how many intermediaries lie between a company and its customers, at the end of the day, Customers are breathing, thinking, buying individuals. Their behavior is measurable and changeable. Even when one is selling to large institutions, as in a business-to-business model, it helps to remember that those businesses are made up of individuals. All successful sales models depend on breaking down the monolithic view of organizations into the disparate people that make them up. The goal of such early contact with customers is not to gain definitive answers. Instead, it is to clarify at a basic, coarse level that we understand our potential customer and what problems they have. With that understanding, we can craft a customer archetype, a brief document that seeks to humanize the proposed target customer. This archetype is an essential guide for product development and ensures that the daily prioritization decisions that every product team must make are aligned with the customer to whom the company aims to appeal. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries In the Lean Startup model, an experiment is more than just a theoretical inquiry; it is also a first product. If this or any other experiment is successful, it allows the manager to get started with his or her campaign: enlisting early adopters, adding employees to each further experiment or iteration, and eventually starting to build a product. By the time that product is ready to be distributed widely, it will already have established customers. It will have solved real problems and offer detailed specifications for what needs to be built. Unlike a traditional strategic planning or market research process, this specification will be rooted in feedback on what is working today rather than in anticipation of what might work tomorrow.
Questions to ask; 1. Do consumers recognize that they have the problem you are trying to solve? 2. If there was a solution, would they buy it? 3. Would they buy it from us? 4. Can we build a solution for that problem?” “Success is not delivering a feature; success is learning how to solve the customer’s problem.” The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries |
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Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.” |