I met a single mom at a writer's bootcamp. She regaled me with stories about writing books on frugal cooking, life inside a cult, a mystery novel, and romance novels. They were all different markets so I suggested she select a single topic - and spin off intermediate and high-end products - before jumping into another market. The example I cited was Harry Potter. J.K. Rowling writes sequels and is raking in multi-millions of pounds in royalties from movies, DVDs, memorabilia, etc. The secret to her success is she returns to the Goose that Lays the Golden Egg. Which was the opposite direction my writer friend took... She was going lateral instead of deep. A costly mistake. She spread herself too thin. She wanted to launch too many business ideas without owning a successful single model. Because she's a writer, she wanted to write on various topics she was passionate about. Big mistake if she wanted to collect royalties and make a serious living. It will eventually become her achilles' heel. And that's because the marketplace can't decide what brand she brings to the table. It's more profitable and rewarding to position herself in one area of expertise. Something she'll be known for. What happened next? Her first paperback became a money pit. The e-zine she published went dysfunctional, and then revived" ?but is currently headed in ten different directions. Her website promoting her copywriting service was never completed. Her mail order pillow business went the way of the dodo bird. Google has threatened to cancel her Adwords account. And she still wants to write on five other topics. Do you notice a self-defeating pattern here? Since you're a top gun marketing student I know you won't make these same mistakes. You and I want the best for our business and we can learn what not to do from others. We don't have to repeat their mistakes... To make millions in your enterprise you should first start with an existing market that you want to reach. It's easier and cost-effective to work with a market that has proven it will pay for products and/or services. Next: start off with a low-cost/no cost introductory product. This may seem like you're losing money, but you'll soon make it up with other products in your pipeline. New customers cost the most to acquire. Capture these new customers and build a relationship with them. Then market mid-priced products to them. Continue building your relationship and capturing more customers. And then offer high-end products and continue developing your relationship. Better yet, offer all three product lines to them at the same time. People love choices" ?so create a bronze, silver, and gold package for your customers to select. Next: promote outside products or services through joint venture deals - where you can capture more clients. Continue edifying your relationship. You're quickly becoming the one source your customers trust and confidently buy from. One whom they will promote by word-of-mouth to their friends, colleagues, and business partners. Notify them about upcoming seminars or teleconferences that you conduct. Produce product demonstrations and tutorials on video for your website. Recommend your resources each time you communicate. And then create one or more luxury products or services in the four-, five- or six-figure range. This will position you as a Jedi Knight in your field of expertise. Using this single business model - you can make millions in your business by going deep, rather than lateral. Apparently, it's a model most small- to mid-sized business owners never attempt. If an author does well selling a $20 paperback, she decides to release more $20 paperbacks. Hoping the following books will do as well. In the meantime, her fans are dying to own or experience mid- and high-end products from their new favorite novelist. Whick never materializes. But this won't happen to you... Because you now realize the common mistake most small businesses make: Lateral Thinking. Find a niche market you are totally passionate about, create a database and provide services or products to them forever. |
