This checklist can save you countless hours going down unprofitable paths, and help guide you to extremely profitable ones with the same amount of effort. Remember it takes just as much time to setup a product+campaign that loses money as it does to make money. All you have to do is follow the steps in order. Try it with your next product.
1) Think of the product, service you are considering:
2) With that in mind, ask yourself these questions about it:
- Can you find proof of money of similar products? Yes/No
- Does it have passive income possibilities? Yes/No
- Does it have continuity options (non-forced)? Yes/No
- Does it have upsell possibilities? Yes/No
- Can advertising campaigns be easily tracked? Yes/No
- On a scale of 1-10 are you interested in it?
3) If any of these are no, consider what it will take to change it to a yes
or select another product to lead with. It doesn’t mean you have to give up that idea, just put it on the backburner and go with your best idea first. It takes just as much time to setup a product that makes millions as loses millions.
Let’s go through them to see why.
Show me the Money
If you want the lifestyle, if you want the dreams. You’ve got to make money to stay in the game. If you’re starting from scratch the easiest way to do this is to find evidence of competitors making money. This is amazingly easy in this day an age, by tracking PPC ads using espionage tools. However there are caveats to that. People can put up campaigns that just aren’t losing money, doesn’t mean it’s worthwhile to pursue.
Here are two addendums. Eben Pagan adds these elements, are they have a demand
- Are they in pain+ urgency? or desperate need (mo’ money, mo sex, mo’ health)
- Do they have their wallet in their hand actively searching for solutions?
- Do they have few or no perceived options?
Example of what NOT to do:
Customer has a massive headache , they don’t normally take drugs, you have a solution: asprin + water (as some headachess are due to dehydration). They go to the corner drugstore and buy whatever is on the shelf.
Customer’s kids on a weekend hike have all gotten a poison oak, and it’s not going away with the calamine lotion.. its doesn’t really help other than making your kids look pink, same with all the other stuff from the drugstore and target. You have found good solution that can eliminate the oil in less than a day that causes the rashes and burning sensation. It comes in a tube and can be fedexed in 24 hours…for $50.
Scale or Die
Having worked with many creative people, too often the businesses I see are doomed from the beginning due to the passive income part. When I was a nighttime janitor I remember working for a doctor, who when I got there 11pm was often still there with the books, because that was the only time he could do them, and because of the particular nature of his business only he could do them. We got to talking and it was easy to see how frustrated he was being paid well, loving what he did in a family practice, but just not having any time for anything. In my travels I see this in every industries. You don’t want that I assure you.
Passive income in my definition are the business setup that doesn’t require you’re direct involvement. This can be typically in the form of outsourcing, automation, or business architecture. Interestingly in my research, it’s always the people who know what they want …it’s never by accident. Quite honestly it’s non-obvious that businesses that make money may not require much involvement for you. If that’s not the case the good news is some cases they can easily tweak their businesses to get it… in other cases their babies are completely flawed and will never fly on their own, so the only solution sadly is reinventing and in some cases starting over.
If you want to Continue in business, you NEED Continuity
This was a shocker to me. If you want to survive you have to have a stable foundation of money, and continuity is the best way to get it. Else you will be forever chasing sales. The reasons are simple, if you DON’T find a way to build a stable recurring stream, your competition will, and they will have more money to out advertise you, and take all your customers. So think of ways to add continuity to your business.
Want 100% profits off your sale? use upsells
Highly profitable niches advertising is expensive…like in the Forex market $7 per CLICK, with CTRs of 3% this adds up fast. One approach to solving this is a Loss leader, meaning your initial offering will often need to be sacrificed to get the advertising to get the customers. Without an upsell you are operating on whatever small margin you can get between advertising, affiliate and fulfillment costs. With an upsell, you get pure profit past that with no sales going to the affiliates. Upsells are really not that hard. So what are you going to use?
Track or Die
Knowing who, where, when and what to say that conversts into BUYING customers is the lifeblood of your business. Conversely throwing everything to the wind can be the vampire sucking your budgets dry. Especially when using PPC traffic, more money is made off the tweaking of the campaigns, than setting them up. IN this business small changes can mean the difference between massive failure, and massive success. If you can’t measure results you can’t manage them. …but you’re competition will.
Neither Bored or Passionate
This is a tricky one. For most of you reading this, the goal is to make profitable products, so you can either live the lives of your dreams, or as a product creator eventually make better ones next time, or complimentary ones. There is danger at both ends of the spectrum. You’re goal is something in the 4-8 interest range.
If you answered 3 or less..do you really want to be bored?, if you’re doing it, are you really sure you have the stamina to see it to completion? Could you maintain it every week for a year? Do you plan on outsourcing everything? fast forward a year would you still be interested in maintaining it, and the community behind it? If not you’re competition will, and you could have spent the time doing something you really loved. There are tons of products or methods to consider.
If you answered 9 or more, you are in severe danger of the DEADLY P’s
There are many forms of paralysis in creating products, called the deadly P’s here are the top 2.
1) perfection paralysis, – you will never let it out of your control, If you outsource it it will never be right and you’ll end up doing it over yourself. Come time to launch you will sabotage yourself for fear of feedback, you will react negatively to market feedback. Remember the goal is to make money, build lists, community etc. Planes on the grounds and ideas stuck in the heads never fly.
2) paralysis from analysis. – you will spend ages trying to get what you want done. I don’t remember if it was John Reese or Jeff Walker, but remember with websites ad campaigns, infoproducts. The launch is the worse it will ever be. It’s very easy to change, and even if it’s flawed, there are ways to spin it to your advantage.
which again comes back to scale or die. You Do yourself a favor put this too on the backburner. There are tons of products to consider.
If you answered between 4-8 congratulations!
This is the perfect zone, you’lll be good enough to get through the work but not to the point of self sabotage. If all the other questions are Yes’s you could have a real winner on your hands… so go for it!