Why New Products Fail! That is a very good question isn’t it?
I sure was asking that question the day I launched my second IM product, The Millionaire Boss.
After much research I come up with a couple huge factors that will determine the success or failure of a product launch.
Most people never even think about them or know about them. I know I sure did not.
Well I am going to clue you in today on a couple reasons that products fail to convert during a product launch. I am eating dry salted peanuts in the shell as I type this so I will be a little distracted as I type.
So this email may get a little long due to this distraction. But that is good for you as you end up with more content.
So why do most products fail?
Your product differentiation and your positioning of the product are very weak.
Man, I’ll tell you right now. There’s nothing worse than sinking 5 months into creating a product that no one wants to buy. That is exactly what happened to me on my second product launch. Some even sink longer periods of time into their product creation and launch strategy than I did.
The first I want to quickly go over is Product Positioning.
If you are not going to take the time to do proper research to ensure that your product is positioned well in the minds of your target market you are just plain and simple going to fail.
You simply have to get to know your customers.
You may have the best product and know it is something that makes sense to you. You may even know the customer needs it. But if it doesn’t make sense to the customer, they will not buy.
Research & Communication is IMPORTANT!
This is going to take some investment on your part. You are going to have to invest (monetarily or with time) in researching your market. Do your research to find the narrow window in the mind of your prospect or customer in order to position your products and services effectively over a product or service of your competitors.
Changing a mind is an extremely difficult task. You will find that it is much easier to work with and hook your product to what’s already there.
The second thing I want to talk about is your Differentiation Strategy!
This certainly is nothing new to you by now as I have also mentioned this several times in many of my trainings. But just what is your Differentiation Strategy?
This is your action designed to produce products or services that customers perceive as being different from your competition.
It is a marketing process that showcases the differences between products.
Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products.
This is probably where I failed the biggest when it came to The Millionaire Boss product campaign. I really did nothing at all to differentiate myself from the competition (Russell Brunson) that was launching the same day as I was.
When I launched The Millionaire Boss little did I know that Russell Brunson was launching the exact same time and day as I was. There were even many similarities to our products. At least if you were to compare sales page to sales page.
When you put the products side by side they were very similar as far as title, price point and what we were saying we were going to help do for those that bought.
What this forced the customer to do was to make the choice to buy from the one they thought was the industry leader at that time. Russell Brunson won out BIG TIME of course. He was an industry leader at the time.
Now to be fair to myself I guess I could say that the reason I did not have a differentiation strategy was because I did not know that Russell was launching the same time, and also that I did not know about differentiation strategy.
But I can tell you that it is very important, and you must do the research needed to find out exactly what is going on in the marketplace in order to have an effective differentiation strategy, and to position your products correctly in the mind of the customer if you wish to succeed.
After about 6 hours of NO sales I stepped up to the plate and made my launch work. I made some quick revisions to the overall product and pricing and was actually able to make the Millionaire Boss product start converting. I was able to generate a little over 6 grand, and little over 200 new buying customers.
At this point I was a little angry at all that took place and at myself. I decided that everyone that purchased The Millionaire Boss was not only going to get the entire front end product, but they were also going to get the promised coaching that was the One Time Offer. They go the entire product and coaching for a one time payment of $37.00
Needless to say I had some very happy customers. Not only did they get a pretty decent product if I dod say so myself, they also got group coaching which produced some really nice results for those that showed up for the weekly coaching and mastermind groups.
Yes I even set up mastermind groups of 6 for all of my students. I even was showing up to all of the mastermind calls and coaching calls. I was one very busy coach. But some amazing things began to happen. My students were getting results and I was gaining some much needed credibility.
The Millionaire Boss was seen as pretty much a failure to many in the marketplace and I started to hear the familiar voices of my critics telling me I could not do what I was doing without Keith.
This time I did not listen and I began to dig in and create the successful business I have today!
Mary Kay Ash says, For every failure, there’s an alternative course of action. You just have to find it. When you come to a roadblock, take a detour.
Many of us that feel we have failed just set at the road block and wonder why did this happen to me instead of looking for the detour.
If you want to find success you need to believe in yourself and to follow your dreams. You have to have goals in life and a drive to succeed in accomplishing your goals. Most importantly you need to surround yourself with the things and the people that make you happy and breathe only the positive into your life.
Stand In your Greatness
Paul Counts. Eric Holmlund and Myself teach product positioning and Differentiation strategy through our coaching. If you really want to get results check out Real Guys Coaching