Last updated on March 15th, 2021. Posted in Finding Profitable Ideas.
One of the absolute best ways to validate your product, service, or business idea is to use my favouite fool-proof method: Pre-selling. That is, sell your ideas before you develop them into products. There's no better validation than cash in hand from a paying customer.
Here are links and resources mentioned in today's video. Enjoy!
So what does this mean? It means to create a prototype or demonstrable example of what you have to offer. Use the prototype of your product to pre-sell and validate demand. Pre-sales are a fantastic sign that you’re on the right track, and it lowers your risk, too.
A prototype is just a basic working idea of your product. If your product is a book, then your prototype could be a short PDF summary or table of contents. A product prototype is just something simple and easy for you to create that gets your idea across.
The best way to discover if your product has a real market is to sell it FIRST...and if it gains traction, to then build it SECOND. Don't do what most newbie entrepreneurs do, which is to build a perfect product first and then try to sell it. That rarely works. Don't build then sell. Sell then build.
Further, getting interest and getting paying customers aren't the same thing. But getting paying customers is hard and uncomfortable. It's much more comfortable to get a bit of interest and then develop a finished product (which'll then launch to crickets).
How can you charge for something that doesn't exist yet? There are lots of ways, so get creative. How about giving some kind of incentive? For example, offer early buyers a discount or some kind of extra for ordering early. Or maybe you can come up with something better.
Whatever you decide to do, it's critically important to inform your customers that your product doesn't exist yet (hence why you're giving them such a great discount, bonus, or other incentive). Make sure to be totally upfront with them.
And what happens if your potiental customers aren't interested in your offer? Well, there's only two reasons why: Either 1) Your offer isn't solving a painful enough problem, or 2) They aren't in your target audience.