What Constitutes a Successful Business?

Recently, I engaged in an enlightening conversation on Twitter that sparked some fresh ideas.

I have a passion for discussing business topics, whether it's about innovative ideas, value ladders, or growth strategies. During our chat, I noticed that my conversation partner has been experiencing remarkable growth on Twitter. Curious about his monetization plans, I asked if he had considered it yet. He mentioned that he wasn't planning to monetize at this stage, as he felt he still had a lot to achieve. I concurred, noting he has just under 300 followers, and attempting to push a sale could be counterproductive.

I have a mini-course priced at $97, but I'm not actively promoting it yet because I'm not ready for sales. I made a single post offering 15 discount codes for free access to gather feedback. Like him, I also recognize I have a journey ahead before I can focus on monetization.

Nonetheless, I inquired about his potential monetization strategy. He revealed he was thinking of creating a course on Twitter growth. I've expressed before my reservations about this niche, considering it somewhat resembles a multi-level marketing (MLM) scheme—where growth is predicated on teaching others how to grow, who in turn sell their courses. While it's not a scam, it lacks substance in my view.

I pointed out that the market might already be oversaturated, but he countered that he didn’t think it was saturated at all. He argued that while many people are trying to sell growth strategies, few are actually making sales.

I suggested that if sales are sluggish, it could indicate an imbalance in the supply and demand dynamics. Essentially, there's too much supply with insufficient demand.

To his credit, he mentioned he was considering pricing his course between $4.99 and $9.99. This sounds reasonable for someone in his position, and yes, it might sell. However, scaling such an offer would be challenging; he would need a vast audience to make a sustainable income. Even if that isn't his primary goal, achieving it wouldn't be simple.

It seems he is inclined to propose a low-ticket offer because he perceives that higher-priced products are not selling. I argue that this approach is more of a reaction than a strategy. If he knows that high prices deter buyers, he resorts to low pricing—not because it's a well-thought-out strategy, but rather as a response to market conditions.

Typically, two factors drive low-ticket offers: either the product lacks quality or the entrepreneur lacks confidence in their offering. While some may argue that perceived value influences pricing, I contend that the mindset of the entrepreneur plays a more significant role.

I've observed that many entrepreneurs set prices that don't reflect their desire to generate income. Some even claim they aren't interested in making money, which I find puzzling. If making money isn’t your goal, why create a product that lacks quality? Unless you're already financially secure, this mindset is misguided. Deep down, everyone wants to earn money; the challenge lies in believing in themselves and their product.

Acknowledging this is crucial for recognizing weaknesses and addressing them effectively.

I proposed that he could utilize his low-ticket offer strategically. Instead of relying solely on it, he could use it as a front-end product. Customers could initially purchase it for $4.99, then be guided through his newsletter towards higher-priced offerings.

For instance, the second offering could range from $149 to $499, while his core offering could be positioned as a premium option between $999 and $4999. He could even explore offering a monthly retainer instead of a fixed package.

He expressed interest in leadership coaching, which certainly has the potential for a high price tag, especially since expectations in coaching aren't typically as high.

This approach allows him to appeal to a diverse clientele—from budget-conscious buyers to those willing to invest significantly. It’s not rocket science; the goal is to cater to everyone while minimizing potential issues that can arise from not providing a clear outcome with low-ticket items.

I firmly believe in selling products with measurable results. I want to rely on data rather than opinions. If I'm offering coaching without trackable outcomes, my value hinges solely on the client's perception. If they like me, they might rate my coaching positively, but the opposite is also likely.

If the value of my offering solely depends on subjective opinions, I’m forced to sell a dream, which could inflate expectations that I may not be able to meet.

However, if I have measurable outcomes, I can present clients with average results. Assuming my product is superior, growth is inevitable.

Sometimes, all it takes is to manage expectations right from the start. This way, you can surpass what clients anticipate with your exceptional system or service, simply because their expectations were set lower.

If they expect a ride to Mars and only receive a trip to the moon, that’s an issue. But if you promise them a plane ride and deliver a trip to the moon, you’ve created incredible value.

In essence, if I paid for a plane ticket and ended up on the moon, I might be quite upset due to the unforeseen circumstances! But you understand the core idea.

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