Given all the hoopla with the cross-country move and selling the house, I thought it would also be an infinitely wise idea to go ahead and launch a new product. Because, you know, that’s how I roll. :)
(Keep reading 'til the end to find out how you can get first access and the best price before it launches!)
And as I get ready to launch this new e-course in the next month or so, I thought it might be helpful to share with you my process for deciding which product ideas to pursue and how I determine which of those ideas will translate to real revenue for my business.
First off, It doesn’t matter what kind of entrepreneur you are - a photographer, a designer, a consultant, a scrapbooker, an artist - YOU have something to teach people. And as long as you have something to teach people, you have an opportunity to make money with digital products.
The reason why digital products are a good idea for any freelancer, solopreneur or small business, is because they give you the opportunity to have somewhat steady recurring income. If you’re in a service-based field where you make money by trading your time (like a designer or photographer) then you’re often at the mercy of whether that next client lands in your lap. Product revenue can generate a great base income for you, taking some of the pressure off and allowing you to only take on the client projects that you’re SUPER jazzed about.
Aside from the money factor, it also helps you teach on a one-to-many scale vs. a one-to-one scale. As much as I love branding projects and brand coaching, I often share the same knowledge many times because I find my clients get stuck in the same areas. By pulling together an offering that touches on those reappearing pain points, I’m able to help more people at one time.
So, maybe you’re already on board the product train. You know the benefits of bringing in recurring cash, but if you’re anything like me, you have about ten different ideas of products you could make. How do you know which one to pursue?
Is it an e-book detailing your camera settings for other amateur photographers? Is it an online course showing people how to paint with watercolors? Is it a group of Photoshop templates with design accents for people to snaz up their blogs?
My first e-course product, the Better Lettering Course, brought in $3,800 in revenue in my first month, and now five months later, it has made my business over $22,000. Did that happen magically? How did I KNOW that it was going to bring in substantial money before I created the course? Well, I’ll let you in on my big secret:
It’s a little thing called Product Validation.
I actually learned about Product Validation back when I was working with Jason on his marketing startup. We studied something called the Lean Startup Method, which is a methodology for building startups with the most efficient use of your resources. It involves getting validation from REAL customers to test your assumptions before you invest money in fully building out your business.
The idea is that you don’t want to invest time and money into building a product, only to later find out that nobody wants or needs it (and hence won’t buy it.)
Instead, you want to validate your idea before you ever invest that time and money to build it.
And that’s exactly what I did with my course. It started when I created this blog post, Hand-lettering for Beginners. When I posted it, I didn’t think much of it, but around summertime of last year, the traffic coming to that one post was off the charts (like… 3,000 hits a DAY off the charts.) That was my first clue - I had found an interesting topic and a steady audience interested in that topic.
BUT one popular post does not guarantee a successful course. This traffic was interested in free information (ie. a blog post), so would they be willing to pay for it? I needed to find out.
I put up an email sign up on the blog post letting people know that I wanted to create a simple online course teaching hand-lettering basics, AND I also said that it would cost $20. (Including the approximate price of your product if you can is important because the hope is that you’ll only get people joining your list that would pay at that price for your course. That doesn’t mean they will, but it eliminates people who definitely won’t.)
I told myself that if that list of interested people grew to 200 email addresses, then I would invest the time to start making the course. To my surprise, it only took one month before the list surpassed 200 and that’s when I knew the course would likely bring me some revenue, not to mention I’d have an ongoing steady source of qualified leads coming to that post that might be interested in purchasing.
And that is pretty much my base formula for every product I want to create moving forward.
Blog post to test the waters >> email capture >> make the product or table the idea
On the flip side of the validation coin, some of you may remember this post on the blog from a few weeks back about Photoshop tips. I had this idea for a daily Photoshop tip email to help people uncover new tricks to make their work go faster and more efficiently. The post gets a decent amount of traffic, but hardly anyone signed up for the pre-launch list, which tells me one of two things: either they don’t have a need to learn about the topic OR they don’t want to learn about it in a daily email format.
If I would have spent the time making ALL those daily Photoshop tips, even just one month’s worth, only to have 20 people buy, that would have been a colossal waist of my business resources (aka my time.)
So, I’ve tabled the idea and maybe I’ll come back to it at a later date.
The reason I want to share these two examples with you is this:
When you're building a business, there's an opportunity cost to your time. Make sure you're investing time in ideas that will have a return.
You can validate your product ideas in a number of ways - not just by using your blog/content marketing. You can use social media to drive people to a survey. You can interview past clients to see if there's a common need between them.
This week, if you're thinking about offering digital products (or products of any kind!) brainstorm ways that you can validate that product before you invest any time or money.
Then, make it happen! Send out the survey. Put up the email capture. Start getting feedback from your audience right away!