Product creation is paramount to achieving massive success and, while execution is important, you first need an idea. Armand concentrates on satisfying market demand by creating products that:
• Makes tasks easier.
• Or, automates existing tasks. This formula consistently provides above-average returns.
When evaluating ideas, consider the correlation between the size of the problem your product solves and the amount you can charge for it. The bigger the problem, the higher the price tag. Too many companies price a product based on operational and marketing costs, and the desired return. That can create a substantial disconnect insofar as what that product is actually worth to its target audience. The overriding factor to consider is how much the market is willing to pay for the product or service.
Successful Internet marketers begin with addressing small problems and creating low-priced products. In fact, many argue the first touch-point should be providing valuable free content in exchange for a customer’s contact information. The objective is to entice a customer to enter your sales funnel, whereby a meaningful relationship is developed over time, and you proactively inspire her to purchase higher-priced products and services. Industry leaders recognize the first sale represents merely the beginning of the relationship, not the end.
Armand’s funnel is structured as follows:
• Free: An example is Armand’s Internet Marketing Newsletter, which has no subscription fee; you simply provide your name and email address.
• $27-$47: An entry-level product that solves a specific problem or provides information that can be leveraged for profit. Examples include an hour-long MP3 in which Armand reveals a game-changing process or a social media “white paper” delivered via PDF.
• $97: A low-end offering that adds value. Examples include many of Armand’s simple, yet effective software products.
• $197: This is Armand’s magic price point. The beauty of $197 is that it’s affordable for most, converts about as well as lower-priced options (e.g., $97), and huge numbers aren’t required to generate significant revenue. Examples of $197 offerings include live events and training products.
• $497-$9,997+: As the Internet has grown in popularity, so has a customer’s willingness to explore untraditional classroom environments and purchase high-end learning tools.
Regardless of whether someone purchases a product for $29 or $2,999, give that customer top support. You’re likely to be rewarded with years of repeat business. Most companies don’t do this. They fail to pay for adequate customer service, choosing short-term profit margins over long-term customer satisfaction. This is a foolish strategy as it costs them word of mouth recommendations and repeat business.
Machiavelli said, “A prudent man must always follow in the footsteps of great men and imitate those who have been outstanding.”
Great Ideas and Great Execution Matters
• Keep up with current trends and capitalize on what’s next.
• Recognize adversity as opportunity. Every trouble carries the seeds of triumph.
• Create products that make existing tasks easier or automate existing tasks.
• The bigger the problem, the higher the price tag. There is a direct correlation between the size of the problem your product solves and the amount you can charge for it.
• The market determines price. Customers don’t care about your costs. They care about how much value you deliver for their investment.
• Encourage customers to enter your sales funnel with free and inexpensive products, and then inspire them to purchase higher-priced products and services.
• Deliver value that far exceeds the price of your products.
• Strive for Six Sigma standards. Sell only outstanding products, and provide a level of service that cultivates loyalty and keeps them coming back for life.
Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher