Product creation is paramount to achieving massive success and, while execution is important, you first need an idea. People are often struck by bouts of inspiration and spend significant time and resources bringing their ideas to fruition. Unfortunately, most ideas aren’t commercially viable and many have wasted thousands of dollars creating products that collect dust in a garage.
The key is to create a product that meets an existing need. For example, Armand Morin’s ebook accomplished this. It taught site owners and IT professionals how to accept credit cards, streamline payment processing, and identify merchant servicers who won’t freeze their accounts.
Further, when he sought to distribute the ebook and found there was no simple way for doing so, he created his own software to solve the problem. That meant, he had two products to sell which fulfilled specific market needs — the ebook, and the program to deliver it. Both ended up selling well, taking the sting out of Armand’s problem with his bank.
Armand concentrates on satisfying market demand by creating products that:
Make tasks easier, Or automate existing tasks.
This formula consistently provides above-average returns. If you keep these two goals in mind, you can continually generate winning product ideas.
Mo’ Problems, Mo’ Money
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. Regardless of whether you spent millions on research and development or pennies, your potential customers don’t care about your costs. They just care about getting what they perceive as substantial value for their investment.
Create products that solve existing problems at what your target audience considers a great price.
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 prides himself on both his creativity and consistently delivering value that far exceeds the cost of his products. The beauty of the Internet is that you can easily launch new products, test the waters, and modify pricing as necessary. Having the courage to try something new and remain flexible enough to make adjustments on the fly are critical to your overall success.
Don’t Go The Extra Mile, Go The Extra Marathon
Product creation and pricing are challenging, but an even greater hurdle is differentiation. Most companies in the same field offer comparable products and services at about the same prices. Achieving major success requires standing apart from the crowd. Armand does this by maintaining excellence throughout his organization. From product development to customer service, he sets Six Sigma standards.
We’ve all experienced One Sigma service — you have a problem, call customer service for help, and have to deal with a maze of menu options, after which you’re placed on hold for 30 minutes. And when a human being finally answers your call, the person lacks the training to be of genuine help.
When was the last time you called or emailed customer service and had your issue resolved immediately, without a supervisor being involved — and received an extra product, discount, or bonus because you were inconvenienced? That’s the level of customer service Armand’s company delivers — and it’s what you should strive for too. It creates loyal customers for life.
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.
A related issue is that companies rush products to market before putting them through adequate quality analysis. This results in a flood of calls to customer service. Armand tries to anticipate all possible issues before a product is ever sold. And by spending so much time on the front-end, end-user issues seldom occur. Specifically, Armand’s company has grossed over $85 million, but it typically receives less than 20 customer service-related questions each day. His products are so well designed, vetted, and tested that customers rarely need support.
Despite best efforts, occasionally a product will slip through Armand’s rigorous tests for quality. When this happens, customers are notified and his team immediately focuses on finding solutions. When the problem is fixed, the new version is offered to product owners for free. Machiavelli said, “A prudent man must always follow in the footsteps of great men and imitate those who have been outstanding.” Consider following Armand’s strategies. There is much to be learned from a true master of his craft.
Armand Morin — Great Ideas and Great Execution: Takeaways
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.
Article By Steve Olsher. See Armand Morin, and many other leading Internet & Mobile marketing experts, at Internet Prophets LIVE! in Chicago June 8-10, 2012 This internet marketing conference in Chicago will teach you exactly what you need to do now, and in the future, to profit online. Learn more at: http://bit.ly/IMProphets