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So this module is going to talk about competition. Ever since you were in business or in business school or in college, everybody told you that having too much competition in a market was bad because eventually the market itself would level out and then you wouldn’t be making any money. The opposite is actually true online. You want to go to the places that have the most money because they have the capability of supporting you as a good marketer and as a good information product developer because you’re in this space, you’re learning about this space and you’ve gone through this course so you have a huge leg up on anybody else in the market. So this section is really just going to talk about competition and why everybody’s wrong.
The first thing I want to say about competition, it isn’t always bad. Some of the best markets in the world to get into are those wrought by competition. In fact, some of my closest friends and myself only get into markets where there’s a lot of competition because it means that there’s also a lot of money. There are a lot of people who think that if their idea was already built out or done there is no possibility whatsoever that they can actually profit from it. I mean, nothing could be farther from the truth.
Incredible money is spent when a new product or a new idea comes into the market. There’s education and exposure and branding and all of the costs that are associated with teaching a consumer segment about this new product and why they need it. Not just, “Wow, it’s a cool, little, shiny device,” but also like, “This is what it’s going to do in your life and this is why you need it.” They totally pave the way for any future competitors who are going to be launching in that same space.
Now, smart people and companies use the ground work that has already been laid by their predecessors, by their competitors, to launch their own products and services. What competition tells you is that the segment you’re looking to enter is filled with cash paying people. If there’s a lot of it. I mean, if there’s no competition it’s best that you totally rethink your product. Don’t even go into a market that doesn’t have any competition because basically somebody’s already thought of it. You’re a smart person but somebody has thought of it and tried it online and probably failed, which is why there isn’t any competitors.
That’s a bit unconventional but you really have to think about the market in general. What is it a result of? I mean, new technology, new regulations? If it’s new there may be a way to get into it. If the market is not new and it’s still uncompetitive there is probably a problem. I mean, you aren’t the first person to think about entering it.
Whenever I look at a market I see how many other people are competing in it. The more, the better. Then I look for leverage points and side doors. Now, if I can find either of those two things I continue my move. Now, leverage points are basically different things that I can exploit into basically if I buy a couple competing products and they’re all lacking in one or two things I can exploit that leverage point so I can make my product really spectacular in that area and then use that to just run any marketing and promotion. Other buyers in the market know that the first product was weak in this area. So if I can solve that area of weakness and then still provide all the same values and stuff that the other products are, then it’s going to make my product look really, really good.
The other thing I like to do is side doors. So basically you take a similar product in the market and then you kind of piggyback onto the success. So, for instance, you might take a $2,000 product launch. In the information product world you might take a course that launched for $2,000. There’s a certain segment of people that can’t afford $2,000 so they don’t buy it. What you do is you introduce a $37 product, an e-book or a short video course, that gets them not all of the information of a $2,000 course but still enough of the information that they can still reap benefit from it. If I can find one of those two things, I continue my move into that market.
Some of the most competitive markets and the best to move into are health and fitness, weight loss, business opportunity which is like make money markets and make money online, finance and stock trading, personal development and relationship markets. These markets are multi-billion dollar markets and it doesn’t take much to build a million dollar product.
If you’re looking to get into something that is more niche based, consider that you aren’t the first one to try and enter it. What kind of a picture does that paint? I always look at competition on Amazon.com and I just search for books, Dummies.com and search for books. I do a Google search a couple times, do a keyword search, do pay per click ads. And I’m looking at Clickbank. The reason is because these are all – Amazon and Dummies are very, very well established companies and Amazon is the largest online retailer in the world. They have their ducks lined up correctly. Dummies.com doesn’t ever move into a market unless they have good, solid research that says that it’s a good market to move into. They pay their research team millions and millions of dollars to make sure that they are moving in good direction before they even come up with the cost of a book. They do all the research necessary to make sure that it’s a good move.
So what we’re going to do next is we’re actually going to do a competition tour and we are going to go through and kind of just mock out how you can do some real, live market research online right now.