Wouldn’t it be great if you could know with a 100% certainty if there was a market for your product before you even had it made?
Imagine, you’re having your morning coffee when you come up with the idea for what you’re sure is going to be the next top selling product. You phone around and get some quotes for how much it will cost to produce but…
…you’re now in a position where you have to buy stock.
That means you have to outlay money but you’re not sure if there’s really a market for it or if they’ll pay the price you need to be able to make a profit.
Traditionally you would now spend a lot of time and money doing market research and predicting the level of demand and the price point.
But not only does that take money, it’s also very slow and often wrong.
What you need is a crystal ball that’s going to tell you that information with a 100% certainty.
Well, with the advent of the internet that crystal ball is available if you know how to use it.
It’s otherwise called:
What I’m about to share with you can be used for both real products and digital products, but it’s going to be easier with real products due to a lot of paid traffic sources not being so keen on digital products.
I am going to describe a process using AdWords but any high quality paid traffic source will do.
It’s also worth noting that although everywhere says you can’t use AdWords with internet marketing products anymore in my experience that’s not strictly true.
Because… we do.
You will need an account in good standing and you need to be careful with how you promote and what your sales page looks like. But it’s certainly possible and, because nobody else is doing it, the traffic is plentiful 😉
Anyway, I’ve moved away from the main point.
How do we check with 100% certainty whether your product is going to make a profit.
First of all you make your sales page. If you are making a real world product then you should get a sample made up so you can take photographs of it.
Once you’ve made your sales page then you make a two stage order form. The first stage is entering the name and email address. The second would be the payment details but…
…the second part doesn’t exist.
Because at this stage we want to find out how many people will go through to the order form.
Instead after they optin to your mailing list you send them to a page which says there are currently no items left in stock and say that you will be in touch as soon as you have more stock.
Assume that 25% of the people who complete the optin will purchase your product (this is the average across all markets).
Now you only need to spend between $100 and $200 to get enough data to determine:
- How much a sale will cost you
- How big the market is
- If it’s profitable
If your product isn’t going to make a profit, don’t despair. Maybe you can reduce your profit margin slightly or call the manufacturer and ask them if they can reduce the cost to the level you require for it to be profitable.
What using this process will do is tell you for just $200 whether your product is going to work before you’ve had to spend any money creating your product!
This means that you never need to make a product that doesn’t have a market or won’t be profitable for you again.
- Decide on your product
- Determine how much it will cost to make and ship
- If a real product get a sample made and photograph it
- Create a sales page with a two-step order form
- Send paid traffic to the sales page
- Assume 25% of people who optin will purchase
- Determine if your product will be profitable
Oh, and I forgot to mention… you’re also building a mailing list of people who are interested in your product at the same time!
What do you think?