How,Evaluate,Product,Opportuni business, insurance How To Evaluate A Product Opportunity

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Day after day my in box, and I'm sure yours as well, fillswith opportunity propaganda on how to make money. Do this,and poof, you're rich. Become an affiliate and sell myebook, and poof, you're making lots of money. I don't knowabout you, but I can't tell what’s a good opportunity andwhat’s not any more. Because of this, I created a list ofnine criteria, a sort-of checklist, to use when I do findsomething that I don't think is full of "poof."1. Is the product any good -- in my opinion, and in mymarkets?This is especially true for me. I've found thatinformational fre*e products are nothing more than a tease.I just get tired of wading through 150 pages to find fourpages that have anything "real." In addition, if theyaren't decently organized or written, less than 2 out of 25reach this from the hundreds I've read, how different is theinformation?Why would anyone want to pay $49 or $249 for the same thingoffered in a $20 book? E-books aren't books. People don'tbuy them for the same reason. Even if the product isn't aninformational product, what is different, unique, andimportant enough for me to buy that I can't buy somewhereelse for less? Are the solutions clear, or presented fromthe producer’s viewpoint and give me a sale dance?Some people don't care and sell anything. Does thisproducer fall into that category? If they do, it’s usuallyapparent. I've asked website owners who sell outsideproducts about many confess they haven't read or tried it,and don't care about its truthfulness or value, just therevenue. I cringe when I get an e-mail that personallypromotes a teleseminar and then in the material it says,"first time given."How does this build trust and credibility? Well, itdoesn't. Smart people don't return. The seller now incursthe label of the producer. Please, please, please, if youcome across a poor product, ask for a refund. These peopleare counting on you not having the courage or taking thetime to ask. If this would occur more frequently, themarketplace would demand and receive higher quality.Silence keeps poor products circulating. Vote with yourwallet.2. What is the market demand status for this product?Where on the bell curve does demand fall? The bell curve, asymmetrical curve for illustrating where a product stands inthe sales process, slowly rises for new products, reaches acurved plateau, then spirals down, sometimes fast, sometimesat the same grade of its rise, depending on the product andeconomic market conditions. This holds true for physical orinformation products wherever distributed.How long has the product been in the marketplace? Is itnew, old, or been over exposed? This takes some research.Caution though, if the original producer doesn't answer yourquestion, that gives you the answer. What plans does theproducer have for future sales product? Is it being offeredto just anyone? Is he just starting? One strategy forebooks sales is to sell to early adaptors, then set up an"everyone" affiliate program. What is their definition of"everyone?"Is the opportunity going from retail product to Internet?Some opportunities don't work well with this conversion.For instance, take Coke, it’s sold retail and won't work on-line. Website hosting and domain name is now an over soldopportunity. Jumping in on this product is jumping in on aplateau product that requires major pushing for productionif you want enough worthwhile revenue. Are you willing toput enough effort into it (discussed later)?3. Who Is The Producer?Is the producer a stable company or new? The major reasonnew businesses have difficulty selling is because peopletake a wait and see stance. People prefer to buy fromsuccessful people and companies. Statistics confirm that85% of new business will not be around next year. Peoplewant to buy from successful ventures, successful people,people that have stability, tenure.At this point, if I am unable to uncover any solidinformation about the company, I don't continue past thispoint. Don't have any hesitancy about emailing or callingthem with questions. Many times, I can't even find a phonenumber. No response, drop the opportunity and move on toanother.4. Revenue Generating Realty CheckOf course, the promo material will state the highestprojections and usually leave out negative particulars.Ignore this, find, and calculate your own probabilities.Since I have a heavy background in accounting, it’s easierfor me to do this. Not your area, then ask an accountantfor assistance, take a class, find a book, and learn thiscalculation. The skill will serve you many ways in thefuture.Remember to set your personal feelings aside when evaluatingan opportunity. It distorts the facts. Sell with emotionsbut don't make a decision to invest your precious resourceswith it.Calculate your break even point, what income you want, howmany sales equal that over what period, are three questionsthat need an honest answer. E-books need 117,000 to 225,000exposures to generate sizeable revenue. How are you goingto get that number? Yes, that number is possible.5. PricingCan the buying market afford the price? How muchdiscretionary income does the prospective buyers make? Canthey afford the product? Where does your price stand withthe competitors? If you're price is higher, is there valuethere to justify the difference? Value in the eyes ofbuyers, not yours. Pricing doesn't always make or break anopportunity, however, if it’s the only opportunity it cancost the company existence.6. Is this a one-time sales product?Finding a product that generates revenue without anyexpenses is hard to find and needs top consideration. One-time sale products require more marketing and cost per saleis higher. For instance, a membership access fee to allavailable ebooks and updates would generate higher revenueand profit than selling individually because cost of sale isless.Another example: A website hosting company has highermarketing costs to get you as their subscriber. Afterwardsthere is little expense to keep you. They also have thepain of transferring to another host on their side.7. What type of marketing system is the producer using forthe product?How is the producer supporting you in your marketingsuccess? Some companies provide all the materials, somedon't. Do you have to do all the marketing production? Doyou have the skills, time, or patience to do it? If theydon't provide it, how much is it going to cost you? Asizable profit margin can look great until you calculate in$5,000 for a generating the marketing material needed tosell. Be very clear on this one, it is a major downfall tomany opportunities. Know exactly what you need and what itis going to cost you in time and money.8. Are you going to do the pitching, the sales calls, andthe follow-up?Be realistic, do you have the time, the skills, patience,and courage to do all these parts? If you are short on timebecause of a full-time job, are you willing to give up yourevening hours to follow-up on inquiries, do mailings, ormake 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 findanother product that is a better match?9. What same category spin-offs products are available?Can you find other similar products that build on thisproduct? Once a customer buys one product from you and theyare pleased, they will consider another in the samecategory. You can also double up and do 2 for 1 specials orpromote with a "one free with the purchase of."In SummaryKeep your eyes open, know your boundaries with the productand the marketing. Search for the unsaid costs, the onesthe company doesn't want you to discover until after youpurchased or made the initial investment. Take the time andtalk with others selling the product that have no connectedto the outcome of your decision.(c) Copyright 2004, Catherine Franz. All rights reserved.