January 6, 2009

Before you waste money advertising, do this. Show your product to at least 20 people you would consider potential buyers. Offer these 20 people a 25% discount. If none buy, do not waste a cent on advertising. If fewer than 30% accept your “deal”, your product, price, market or a combination of these is wrong. Fix it. Try again.

Don’t waste money advertising something that is not going to sell. Numbers do not make buyers. Paying a lot of money to expose your product to a lot of people will not produce a higher proportion of sales than making your offer to 20 people. In fact, because the advertising will be less focused, the return will be far, far less than the return from your 20 test buyers.

That is Step 1. Skip Step 1 and you will go broke.

Chris Reich, Author of TeachU’s Business Talk Blog
[email protected] 

Chris Reich

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