- Is it Entertainment/Enterprise/Vitamin or Aspirin type of product? Has to be an Aspirin (to cure someones pain). - listen Rob Walling.
- Does it Save Time/Save Money/Earn Money? Has to be one of those. - Rob Walling
- Requiring Revenue/One time purchase? One off is better for 1-st/2-nd product (stair-stepping). Requiring is better for experienced (higher LTV). - Rob Walling
- Is it for B2C/B2P/B2B? B2B is better (not so price sensitive), also stickiness is higher. - Patrick McKenzie
- Does solution need to store/process a lot of customers data? Better do not store much data (operational/infrastructure costs are higher). Regulatory compliance is needed.
- Allow Unique handmade content/semi automated content/automated content creation? Unique handmade content is expensive to create (increases CPA) and harder to scale (can't be created in a bulk). - Patrick McKenzie (BingoCard Creator Story)
- Is it a marketplace? Better to avoid. Marketplaces are hard to take off (chicken-egg problem). - Rob Walling
- Heavily Depends on other services via non-official integration (Google, Twitter, LinkedIn scrapping and etc)? Accidental shut down not predictable. Maintenance is harder. - Rob Walling (HitTail story).
- Is it a personal brand product? Better to avoid personal branding. Otherwise it's hard to sell. - Justin Jackson (from cources to Transistor.fm), Nathan Barry (from cources to ConvertKit)
- LTV > 250$? The higher, the better. New marketing channels (like FB ads, retargeting) are possible so is scalling.
- CPA < LTV / 3? The lower the better. That margin between is your revenue that fuels grow. - Rob Walling
- Churn rate < 5%-7% annually? Otherwise won't grow.
- Customers available online/have online communities? Marketing/Re-targeting is easier. - Rob Walling
- Customers constantly searching for problem/solution on some search engines (Google, Youtube, Wordpress, App Store)? SEO/Content marketing is possible. - Rob Walling
- Could be niched down to very specific customer personas (for example not all recruiters but only it/dev recruiters)? Marketing message is laser focused. - Rob Walling
- Other solutions exist? The fact ultimately validates the idea.
- If other solution are poor quality it's a good sign (could be outperformed based on better execution/UI).
- If other solution are good but expensive it's a good sign. Could be outperformed based on price and taking refugees.
- If solutions are good quality and low price it's a bad sign (our product should be niched down further, provide very unique functionality, LTV is lower cause of baselining to competitors).
- How many customers you have to have to go full time ($10k/month per founder)? Good if it's less than 150. - Jason Cohen
- Would you like to server the market and your customers for the next 5 years? Founder-Market Fit is important. - Patrick McKenzie
Thanks for sharing :)
Bookmarked !