How The “Product Life Cycle” Can Kill Your Online Business © Richard Glanville http://www.statustron.com Publisher@statustron.comHave you noticed how many online marketers are telling you that you need your own product?
Have you heard any good reasons for that?
The one reason that I hear is that it will allow you to keep 100% of
profits yourself.
Think about this. I don’t know about you but if a product is good and profit high enough, I don’t really care who creator of that product is. In fact, with master rights, I have a lot of exceptional products that I have not had to research myself and I keep all profits anyway. I even have affiliates selling these products (and rights) for me.
There has to be another reason.
Well, there is a very good reason why you should be able to offer a “unique” product. The answer lies in a concept called “Product Life Cycle”. Once you understand concept, you will understand why so many marketers are telling you to get your own product and to develop multiple residual income streams. Moreover, you will be able to separate “chaff from wheat” and do those things that really need to be done.
Having your own product may not even feature on list.
Every product goes through what is called a “product life cycle” that looks a little like this:
Introduction with high investment and minimal profit Period of growth with greatest profitability Period of maturity where sales rise but profitability weakens Market saturation where decline commences
Point 4. would also explain why creation of new products is necessary, wouldn’t it?
Actually, it wouldn’t.
As you read further into this article you will understand why new product creation may not be necessary.
In first phase of “Product Life Cycle” we have a product that has just been created. It needs to be marketed. As it is new, we expect to spend quite a bit on advertising before it gains acceptance and we make sales.
The least expensive, and arguably most effective, marketing that can be done is to have someone else pay for advertising. This is how affiliate programs work.
Right now, you are about to learn truth and power of “Early Bird Advantage”.
You must remember a couple of concepts here. The first being that in order to generate maximum number of sales, a prospect needs to be exposed to sales message at least seven times. Secondly, we are dealing with a new product. No sales messages have been sent as such.
Okay, statistics show that if you want a good response on an offer, you need to get your message out to same prospect seven times. Do you agree?
You shouldn’t. The only people that this might hold true for are ezine editors. Unfortunately, far too many editors will promote an item once and then neglect to get message in front of their subscribers again. All they’d need to do to explode their profits would be to send “reminders” out at least another six times.
Your prospect is going to see message from more than one source. It could very well be that you happen to be seventh person presenting opportunity to a prospect and he buys from you. Right place, right time. Happens all time. If you happen to be one of first promoting a new opportunity, got in early and were prepared to stick around for a while. That is power of “Early Bird Advantage”.
