3 Reasons Research Backed My Project—and the 1 Conversation That Broke It (part 3/3)

This is a multi-part series:
Part 1: Earliest
Part 2: Previous
Part 3: You're here.

In the previous section, I discussed my desire for a valuable product and how I realized I was asking the wrong questions to get there. Although I highlighted the remedy to those questions, I have yet to recognize how to adjust my approach going forward.

What steps should I take next? This is the step-by-step thought process after reflecting on the failed project for occult book summaries.

The Crossroads: When to Pivot Your Product and When to Educate Your Audience

Alex Hormozi's Value Equation is one of the best models I've seen for fledgling products. It tells you what makes something valuable.

Value = (Dream Outcome × Likelihood of Achievement) − (Time Delay + Effort and Sacrifice)

But there's one caveat that isn't obvious—the Dream Outcome isn't fixed—it's a spectrum.

If I want my audience to see the value in my product, I need to adjust their perception by presenting it in a more desirable light. This may involve showcasing unique features or demonstrating how my offer surpasses their initial assumptions. Ultimately, I aim to provide them with something truly appealing even if that means switching to something else.

When You Should Ditch Your Product

Churn is a key indicator of whether I should change products, but it's not the only factor I'm considering. When contemplating a pivot, I look at three main factors:

• Churn rate
• Effectiveness of marketing channels
• Pricing and profit margins

My idea of a perfect product might look like this: low churn, runs on auto-pilot marketing channels, commands a high price, and boasts high-profit margins. Unfortunately, my current product doesn't meet any of these.

For instance:

• Book summaries have high churn as they are not in high demand. (For most people)
• Converting our current TikTok audience to buy our digital products is time-consuming.
• Calculating profit margins for this type of product is challenging.

Despite falling short in these areas, I am still exploring the option of educating my audience as a counterargument against pivoting. Just to be open to a different perspective.

Now, let's delve into the success story of someone who made a successful change through education...

Converting A Stubborn Audience

Cyrus McCormick invented the mechanical reaper, a time-saving tool for farmers, and patented it in 1834. However, initial sales were low, with fewer than 100 units sold by 1846 — that's 12 whole years of low sales, folks!

Farmers were hesitant to embrace new technology due to their reliance on traditional methods. Despite this, McCormick believed in the value of his invention and persisted. He became a traveling salesman, relocating to Chicago where he showcased the reaper in public demonstrations.

Through these demos, McCormick educated farmers on the benefits of mechanization. Slowly but steadily, sales began to increase through word-of-mouth. Eleven years after moving to Chicago, McCormick was selling over 4,000 machines annually.

You're probably thinking, "Great, but how the hell can I do the same thing." Let's take a look at how I can break down a practical formula from this...

• McCormick targeted his audience in the largest fields in the US. Therefore, he went where the pain was most intense. (For my book summaries, I could focus on content creators who are in need of fresh material for their work.)
• He utilized one-to-many demonstrations to maximize his impact and establish social proof. Persuading one person can influence others who are undecided. (I could incorporate this approach in a webinar to demonstrate how a tool can help content creators generate content quickly.)
• McCormick's product was outstanding, leaving farmers so satisfied that they shared their positive experiences with others, creating a viral word-of-mouth effect. (This is more of a lagging indicator that isn't explicitly replicable, but it is worth mentioning nonetheless.)

What's Next For My Project?

McCormick genuinely valued his customers and excelled in high-ticket sales. While he could sell one item and take it easy, my current role involves selling to many challenging individuals at a lower price point. So, that's a pass for me.

But there is still hope...

Transitioning to a content marketing model could be advantageous. By growing an audience and promoting high-ticket products, I can benefit from someone else's work with minimal risk.

For instance, why create a course from scratch — investing lots of time and money — when I can use my project as an affiliate marketer for someone else's course? I just need to connect my audience to the funnel and voila.

But how do I build this audience without having to interact with them extensively?

An SEO-focused approach could be the solution, eliminating the need for direct community interaction and allowing them to come in somewhat passively.

The process could involve creating articles, sharing them on platforms like Reddit, and encouraging downloads of our lead magnets. From there, I can consistently provide value and track conversions over time.

A funnel requires less effort than creating both a product and a funnel. Who would have thought?

I tried out this content marketing model and discovered effective tactics to gain over 50 followers in just two weeks. Check out my post — "The Low Effort Way of Making Good Looking AI Videos: A Detailed Faceless Video Guide"