Product creation is paramount to achieving massive success and, while
6 | INTERNET PROPHETS
Armand recognized many site owners and IT professionals would directly benefit from his research. Believing he had a potentially lucrative product, he next sought a streamlined way to deliver it. Printing and mailing paper-based books was expensive and time-consuming.
1- It was also difficult to create interim updates
for information that might change over time. Nowadays, Armand could have simply used a PDF. In 1996, the format did not yet have mainstream acceptance. The solution? He developed software that opened an .exe file containing several HTML documents. In other words, he created a
browser that was built specifically for the purpose of reading his report. It was one of the first ebooks ever released.
2- These endeavors marked the start of
Armand’s online empire. Byleveraging the knowledge gained through his early experiences, he was in strong position to propel his company forward. He remains front and center. Ideation Is
Priority #1 Product creation is paramount to achieving massive success and, while execution is important, you first need an idea. Armand is a master at creating products that sell.
3- Those last two words are especially important.
People are often struck by bouts of inspiration and spend significant time and resources bringing their ideas to fruition. Unfortunately, most ideas aren’t commercially viable and many have wasted thousands of dollars creating products that collect dust in a garage.
4- The key is to create a product that meets an existing need.
Armand’s ebook accomplished this. It taught site owners and IT professionals how to accept credit cards, streamline payment processing, and identify merchant servicers who won’t freeze their accounts.
Further, when he sought to distribute the ebook and found there was no simple way for doing so, he created his own software to solve the problem.
That meant he had two products to sell which fulfilled
specific market needs—the ebook, and the program to deliver it. Both ended up selling well, taking the sting out of Armand’s problem with his bank.
GREAT IDEAS AND GREAT EXECUTION | 7
Armand concentrates on satisfying market demand by creating
Makes tasks easier.
Or, automates existing tasks.
5- This formula consistently provides above-average returns.
If youkeep these two goals in mind, you can continually generate winning product ideas Mo’ Problems, Mo’ Money problem your product solves and the amount you can charge for it. The bigger the problem, the higher the price tag.
Too many companies price a product based on operational and marketing costs, and the desired return. That can create a substantial disconnect insofar as what tha product is actually worth to its target audience.
6- The overriding factor to consider is
how much the market is willing to pay for the product or service. Regardless of whether yo spent millions on research and development or pennies, your potential customers don’t care about your costs. They just care about getting what they perceive as substantial value for their investment.
- Create products that solve existing
- problems at what your target
- audience considers a great price.
Successful Internet marketers begin with addressing small problems and creating low-priced products. In fact, many argue the first touch-point should be providing valuable free content in exchange for a customer’s contact information. The objective is to
8 | INTERNET PROPHETS
entice a customer to enter your sales funnel, whereby a meaningful relationship is developed over time, and you proactively inspire her to purchase higher-priced products and services. Industry leaders recognize the first sale represents merely the beginning of the relationship, not the end.
7- Armand’s funnel is structured as follows:
Free: An example is Armand’s Internet Marketing Newsletter, which has no subscription fee; you simply provide your name and email address. $27-$47: An entry-level product that solves a specific problem or provides information that can be leveraged for profit.
9- Examples include an hour-long MP3 in which Armand reveals
a game-changing process or a social media “white paper” delivered via PDF. $97: A low-end offering that adds value. Examples include many of Armand’s simple, yet effective software products. $197: This is Armand’s magic price point.
10- The beauty of $197
is that it’s affordable for most, converts about as well as lower- priced options (e.g., $97), and huge numbers aren’t required to generate significant revenue. Examples of $197 offerings include live events and training products.
$497-$9,997+: As the Internet has grown in popularity, so has a customer’s willingness to explore untraditional classroom environments and purchase high-end learning tools. To satisfy this market, Armand offers a wide-range of
premium products and services. These range from home- study courses and coaching programs, to private three-day training at his home. Armand prides himself on both his creativity and consistently delivering value that far exceeds the cost of his products.
11- The beauty of
the Internet is that you can easily launch new products, test the waters, and modify pricing as necessary. Having the courage to try something
GREAT IDEAS AND GREAT EXECUTION | 9
new and remain flexible enough to make adjustments on the fly are critical to your overall success. Don’t Go The Extra Mile, Go The Extra Marathon Product creation and pricing are challenging, but an even greater hurdle is differentiation.
12- Most companies in the same field offer
comparable products and services at about the same prices. Achieving major success requires standing apart from the crowd. Armand does this by maintaining excellence throughout his organization. From product development to customer service, he sets
13- Six Sigma standards.
customer service for help, and have to deal with a maze of menu options, after which you’re placed on hold for 30 minutes. And when a human being finally answers your call, the person lacks the training to be of genuine help.
and had your issue resolved immediately, without a supervisor being involved—and received an extra product, discount, or bonus because you were inconvenienced? That’s the level of customer service Armand’s company delivers—and it’s what you should strive for too.
It creates loyal customers for life. Regardless of whether someone purchases a product for $29 or $2,999, give that customer top support. You’re likely to be rewarded with years of repeat business.