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4. Revenue Generating Realty Check
Of course,
promo material will state highest projections and usually leave out negative particulars. Ignore this, find, and calculate your own probabilities. Since I have a heavy background in accounting, it’s easier for me to do this. Not your area, then ask an accountant for assistance, take a class, find a book, and learn this calculation. The skill will serve you many ways in future.
Remember to set your personal feelings aside when evaluating an opportunity. It distorts facts. Sell with emotions but don't make a decision to invest your precious resources with it.
Calculate your break even point, what income you want, how many sales equal that over what period, are three questions that need an honest answer. E-books need 117,000 to 225,000 exposures to generate sizeable revenue. How are you going to get that number? Yes, that number is possible.
5. Pricing
Can buying market afford price? How much discretionary income does prospective buyers make? Can they afford product? Where does your price stand with competitors? If you're price is higher, is there value there to justify difference? Value in eyes of buyers, not yours. Pricing doesn't always make or break an opportunity, however, if it’s only opportunity it can cost company existence.
6. Is this a one-time sales product?
Finding a product that generates revenue without any expenses is hard to find and needs top consideration. One- time sale products require more marketing and cost per sale is higher. For instance, a membership access fee to all available ebooks and updates would generate higher revenue and profit than selling individually because cost of sale is less. Another example: A website hosting company has higher marketing costs to get you as their subscriber. Afterwards there is little expense to keep you. They also have pain of transferring to another host on their side.
7. What type of marketing system is producer using for product?
How is producer supporting you in your marketing success? Some companies provide all materials, some don't. Do you have to do all marketing production? Do you have skills, time, or patience to do it? If they don't provide it, how much is it going to cost you? A sizable profit margin can look great until you calculate in $5,000 for a generating marketing material needed to sell. Be very clear on this one, it is a major downfall to many opportunities. Know exactly what you need and what it is going to cost you in time and money.
8. Are you going to do pitching, sales calls, and follow-up?
Be realistic, do you have time, skills, patience, and courage to do all these parts? If you are short on time because of a full-time job, are you willing to give up your evening hours to follow-up on inquiries, do mailings, or make sales calls? What is your comfort level with sales? If not, what is training going to cost -- in time and money? Is it worth it then, or can you pass this up and find another product that is a better match?
9. What same category spin-offs products are available?
Can you find other similar products that build on this product? Once a customer buys one product from you and they are pleased, they will consider another in same category. You can also double up and do 2 for 1 specials or promote with a "one free with purchase of."
In Summary
Keep your eyes open, know your boundaries with product and marketing. Search for unsaid costs, ones company doesn't want you to discover until after you purchased or made initial investment. Take time and talk with others selling product that have no connected to outcome of your decision.
(c) Copyright 2004, Catherine Franz. All rights reserved.
