{"id":22087,"date":"2020-12-24T09:57:38","date_gmt":"2020-12-24T13:57:38","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=22087"},"modified":"2021-01-03T19:13:54","modified_gmt":"2021-01-03T23:13:54","slug":"how-to-create-a-product","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/","title":{"rendered":"How to Create a Product: Taking the First Steps"},"content":{"rendered":"\n<p>Do you want to know how to <a href=\"https:\/\/www.shortform.com\/blog\/create-a-product\/\">create a product<\/a>? How do you come up with a product that sells?<\/p>\n\n\n\n<p>There&#8217;s a lot to consider when thinking about how to create a product. By <a href=\"https:\/\/www.shortform.com\/blog\/creating-a-product\/\">creating a product<\/a> that sells consistently and can be automated, you&#8217;ll be able to free up a lot of your time. <\/p>\n\n\n\n<p>Keep reading to find out how to create a product that will sell, and give you the opportunity to work less.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">How to Create a Product<\/h2>\n\n\n\n<p>Learning how to create a product isn&#8217;t easy. You&#8221;ll need time to brainstorm and research. Then, once you figure out how to create a product and create it, you&#8217;ll need time to test it. Here are the first steps. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Pick a Niche Market With Affordable Built-in Advertising<\/strong><\/h3>\n\n\n\n<p><strong>It\u2019s best to choose a market that you\u2019re a part of or have a good understanding of so you know its needs.<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Think about what groups and organizations you\u2019re part of, either professionally or personally. What products and subscriptions related to your market do you own? For example, when the author started his business, he was a <a href=\"https:\/\/www.shortform.com\/blog\/advice-for-young-athletes\/\">student athlete<\/a>, so he focused on that demographic.&nbsp;<\/li><li>Additionally, your target market isn\u2019t necessarily limited to the people who actually fit your demographic, they\u2019re also people who <em>want <\/em>to fit that demographic. For example, iPod ads feature people in their 20s and 30s, but a lot of people want to feel young and cool, so people of all ages buy the iPod.<\/li><\/ul>\n\n\n\n<p>It\u2019s important to <strong>choose <a href=\"https:\/\/www.shortform.com\/blog\/a-niche-market\/\">a niche market<\/a> specifically, because if your market is too broad, there\u2019s a lot of competition and a lot of free information, and it\u2019s expensive to advertise to such a big group.<\/strong> For example, the student athlete market is large and scattered. The author chose to focus on athletes in specific sports, martial artists and powerlifters.<\/p>\n\n\n\n<p>It\u2019s also important that there\u2019s a way for you to reach your market. <strong>You\u2019re going to be advertising your product in magazines<\/strong>, so do some research on how to create a product and how to market it:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Of the markets you\u2019ve brainstormed, which of them have interest-specific magazines? Look at bookstores or in <em>Writer\u2019s Market<\/em> to get a sense of the magazine options.<\/li><li>Call these magazines\u2019 ad departments and ask for their rates, readership, and samples. Look in the back issues for ads by direct-to-consumer sellers. If you find that these sellers often take out ads in this magazine, that means that they\u2019re making money from advertising in this specific magazine, and you can too.<\/li><\/ul>\n\n\n\n<p>Before moving on to the next step, confirm your chosen market meets the following criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>You\u2019re familiar with it.<\/li><li>A full-page ad in its magazine costs less than $5,000.<\/li><li>The magazine has a readership of at least 15,000.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Come up With Possible Products\u2014Without Spending Money<\/strong><\/h3>\n\n\n\n<p>There are two sub-steps to step #2: brainstorm product ideas and then evaluate them against criteria.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Sub-Step A: Brainstorm Products<\/strong><\/h4>\n\n\n\n<p>There are three options for finding products and the last option is the one you\u2019re probably going to want to use.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Option #1: Resell Something That Already Exists<\/h5>\n\n\n\n<p>Reselling is the easiest of the three options, and it\u2019s quick to set up, but it comes with some disadvantages:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Reselling isn\u2019t very sustainable because unless you have exclusivity (which is hard to get), you have to compete with other resellers.<\/li><li>Reselling isn\u2019t very lucrative because when you buy wholesale, you usually only get 40% off retail. You also may need a business tax ID to buy wholesale. To get a tax ID, you\u2019ll have to file for a <a href=\"https:\/\/www.shortform.com\/blog\/how-to-structure-a-business\/\">business structure<\/a>, which costs between $100-200. The author recommends an LLC structure.<\/li><\/ul>\n\n\n\n<p>However, reselling is a great option for certain products:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Back-end products.<\/strong> Back-end products are add-ons to something the customer already owns. For example, if a customer owns a phone, a back-end product is a phone case. Back-end products have no advertising costs.<\/li><li><strong>Cross-sellable products.<\/strong> Cross-selling is selling someone a related product right after they\u2019ve bought a different product. Again, you already have the customer\u2019s ear, so there\u2019s no advertising cost.<\/li><\/ul>\n\n\n\n<p>Shortform Extended Example\u2014Edgar: Edgar is an architect. He wants to start a muse to resell hats made in Amsterdam. Edgar\u2019s story will play out through the rest of this summary.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Option #2: License a Product<\/h5>\n\n\n\n<p>There are two ways to approach licensing. The first is to invent a product and then charge anyone who wants to sell it. Usually, you earn 3-10% of the wholesale price.<\/p>\n\n\n\n<p>The second is to find someone who\u2019s invented something and the license it from them. You have to give the inventor that 3-10% of the wholesale price, which leaves you with 90-97%.<\/p>\n\n\n\n<p>Licensing involves a lot of legal work and contract negotiation, so the author doesn\u2019t recommend it for your first muse.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Option #3: Come up With a New Product<\/h5>\n\n\n\n<p>A new product is the best option for most people. When <a href=\"https:\/\/www.shortform.com\/blog\/how-to-brainstorm-effectively\/\">brainstorming<\/a> product ideas, keep in mind setup costs, minimum orders, and unit costs. Technology tends to have high costs in these areas so you probably want to avoid it.&nbsp;<\/p>\n\n\n\n<p>There are three ways to create a product, and the third is usually the best:<\/p>\n\n\n\n<p><strong>Way #1: Find a generic product that you can tweak for a specific market.&nbsp;<\/strong><\/p>\n\n\n\n<p>Get a manufacturer to create the stock product and then put your own custom label on it. (This is called \u201cprivate <a href=\"https:\/\/www.shortform.com\/blog\/negative-labels\/\">labeling<\/a>.\u201d)<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>For example, some health practitioners sell their own line of vitamins, but they\u2019re the exact same product you could buy elsewhere. The only difference is the label.<\/li><\/ul>\n\n\n\n<p><strong>Way #2: Come up with a brand-new physical product.&nbsp;<\/strong><\/p>\n\n\n\n<p>You don\u2019t have to handle all the creation personally. If you come up with an idea, you can hire someone else to do a prototype. (Recall the advantages of outsourcing from Chapter 9).&nbsp;<\/p>\n\n\n\n<p><strong>Way #3: Create an information product.<\/strong><em>&nbsp;<\/em><\/p>\n\n\n\n<p>Information products are ideal for several reasons: they can have a 20-50 times markup and they\u2019re cheap and fast to make. Also, they\u2019re a lot of work to imitate. It\u2019s easier to get around a patent than paraphrase a whole information product. (It usually only takes two to four months before exact duplicates of infomercial products start showing up.)&nbsp;<\/p>\n\n\n\n<p>You might think that you need to know a lot about a subject if you\u2019re going to <a href=\"https:\/\/www.shortform.com\/blog\/how-to-sell-a-product\/\">sell an information product<\/a>. You don\u2019t. <strong>You only need to know more about the subject than whoever\u2019s buying the product.<\/strong> And you don\u2019t need to convince everyone to buy the product, only enough people to make you enough money to get the Target Monthly Income required for a dreamline. The author calls this amount of customers the \u201cminimal customer base.\u201d It\u2019s smaller than you might think\u2014if your dreamline requires $2,000 and your product costs $200, you only need 20 people to buy it to make $2,000 (not taking into account business costs). If the readership of the magazine you\u2019re advertising in is 15,000, your chances of attracting the minimal customer base are pretty good.<\/p>\n\n\n\n<p>Additionally, there\u2019s no agreed-upon definition of an \u201cexpert.\u201d Therefore, there\u2019s no definitive way to decide who is or isn\u2019t an expert; all anyone can do is get others to see them as an expert. Therefore, building yourself \u201cexpert status\u201d isn\u2019t deception, according to the author. It\u2019s \u201csuperior positioning.\u201d You can achieve expert status in four weeks by doing the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Read three authoritative books on your subject.<\/strong> Choose the top three off the <em>New York Times<\/em> bestseller list. Summarize them.<\/li><li><strong>Collect credibility indicators. <\/strong>Credibility indicators are things like degrees or membership in organizations\u2014basically, letters or attributions after your name.&nbsp;<ul><li>Find organizations that work with your topic and join them. Choose ones with official-sounding names and easy membership requirements. For example, you can join the Association for <a href=\"https:\/\/www.shortform.com\/blog\/nvc-conflict-resolution\/\">Conflict Resolution<\/a> simply by signing up and paying a fee online.<\/li><li>Search for the nearest leading university and offer to give a free seminar. Advertise your seminar with posters. Then give free seminars at two leading companies in the same area. (When pitching yourself to the companies, tell them you\u2019re a member of the organizations you signed up for above and that you\u2019ve given a seminar at the leading university.) Tell the companies you won\u2019t be selling anything and want to speak so you can get practice in a non-academic setting. Record your seminars so you can potentially sell them later.<\/li><li>Optional: Revisit your list of interest magazines and write a couple articles for them, convincing them of your credibility by mentioning what you\u2019ve done using the steps above. If they don\u2019t think you\u2019re enough of an expert, offer to interview a different expert, because you\u2019ll still get a written credit in the magazine.<\/li><\/ul><\/li><li><strong>Join ProfNet.<\/strong> ProfNet is a database of experts. When journalists need quotes for articles, they search ProfNet. Use your credibility indicators from above, and do research, so that you can appropriately give quotes. You can get named as an expert in all sorts of publications.<\/li><\/ul>\n\n\n\n<p>Here are some ideas for how to create a product that&#8217;s informational. You can personally create the content (<a href=\"https:\/\/www.shortform.com\/blog\/become-an-expert\/\">become an expert<\/a>), use public domain content (free content anyone can use), or get help from an expert. To hit a price of $50-200, come up with a combination of formats, such as six CDs and a transcription.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Think of general skills that you could apply specifically to your market.&nbsp;<ul><li>For example, building a website is a general skill, but you could apply it specifically to a <a href=\"https:\/\/www.shortform.com\/blog\/current-housing-market\/\">real estate market<\/a>, and do a product on real estate broker websites.<\/li><\/ul><\/li><li>Consider what you could add to something that\u2019s already selling successfully in your market. Think of specifics.<ul><li>For example, you might come up with a waterproof version of a product that people like to use on the beach.<\/li><\/ul><\/li><li>Ask yourself what skills people in your market\u2014including you\u2014want to learn. Learn the skill and then build a product that teaches it.<\/li><li>Think of an inspirational story from your life. Could you turn this into a how-to product?<\/li><li>Interview an expert, record the interview, and then sell the recording. Your expert doesn\u2019t have to be the person at the top of their field, just someone who knows more about a topic than most people. For payment, offer the expert a copy of the interview to keep or sell, pay them a fee, or give them a portion of each copy sold.<\/li><\/ul>\n\n\n\n<p>Shortform Extended Example\u2014Devi: Devi is an entrepreneur. She\u2019s a fitness instructor and dragon boater. She wants to sell a workout program specifically for dragon boaters. Devi\u2019s story will play out throughout the rest of the summary.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you want to know how to create a product? How do you come up with a product that sells? There&#8217;s a lot to consider when thinking about how to create a product. By creating a product that sells consistently and can be automated, you&#8217;ll be able to free up a lot of your time. Keep reading to find out how to create a product that will sell, and give you the opportunity to work less.<\/p>\n","protected":false},"author":5,"featured_media":18188,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79,42],"tags":[175],"class_list":["post-22087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","category-motivation","tag-the-4-hour-workweek","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Create a Product: Taking the First Steps - Shortform Books<\/title>\n<meta name=\"description\" content=\"Do you want to know how to create a product? In order to create a product, you&#039;ll have to follow certain steps. Read more about them.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Create a Product: Taking the First Steps\" \/>\n<meta property=\"og:description\" content=\"Do you want to know how to create a product? In order to create a product, you&#039;ll have to follow certain steps. Read more about them.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-24T13:57:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-03T23:13:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/11\/production-capital-technological-revolution-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Carrie Cabral\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Carrie Cabral\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/\"},\"author\":{\"name\":\"Carrie Cabral\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/2ababb7c63a94ff5d2190f71dc417d56\"},\"headline\":\"How to Create a Product: Taking the First Steps\",\"datePublished\":\"2020-12-24T13:57:38+00:00\",\"dateModified\":\"2021-01-03T23:13:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/\"},\"wordCount\":1824,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/11\/production-capital-technological-revolution-scaled.jpg\",\"keywords\":[\"The 4-Hour Workweek\"],\"articleSection\":[\"Business\",\"Entrepreneurship\",\"Motivation\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/\",\"name\":\"How to Create a Product: Taking the First Steps - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-create-a-product\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/11\/production-capital-technological-revolution-scaled.jpg\",\"datePublished\":\"2020-12-24T13:57:38+00:00\",\"dateModified\":\"2021-01-03T23:13:54+00:00\",\"description\":\"Do you want to know how to create a product? 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