3min snip

The Futur with Chris Do cover image

197 - Build Your Personal Brand — with Daniel Priestley

The Futur with Chris Do

NOTE

Four Essential Product Categories for Business Scalability

To achieve scalability, a business should incorporate four essential product categories. First, the 'gift' category involves offering something of value for free, such as digital content or podcasts, aimed at garnering attention and fostering goodwill without expecting anything in return. The second category, 'product for prospects,' serves as an entry point for new customers, featuring low-risk engagement options like introductory workshops or free webinars that facilitate initial interaction. The third category is the 'core offering,' which represents the primary product or service the business provides, such as a tiered service model or a standard product. Finally, the 'product for clients' focuses on building long-term relationships through additional services, expanding profitability beyond the core product. This holistic ecosystem not only maximizes customer engagement but also identifies lucrative opportunities for profit generation.

00:00
Speaker 2
this product ecosystem idea. How do I turn these things into other things, especially if I'm in the service space? Let
Speaker 1
me get really specific on this one. And I'll kind of get into what we've discovered works best. So we've discovered that there are four types of products that a business needs to have in order to scale. And there's four categories. And a business needs to have something in each of the four categories if it really wants to maximize its performance so the four product categories is the first one is called a gift something you can give away for free asking nothing in returns no strings attached normally it's digital uh podcasts make great gift um video content makes great gift the the trick to it being a great gift is that people receive it as a gift. They feel that it was well packaged, well timed, thoughtful, and it was freely given with nothing really asked in return. So that's a very powerful product for getting scale and for getting a lot of attention and everything's downstream from attention. So then the next product is something called a product for prospects. A product for prospects is an easy way to engage. It's a first thing that people can do. And it could be an introduction workshop like my first business was all about. It could be an online diagnostic or an online scorecard or a test. It could be an easy first purchase. It could be a little tiny piece of work just to kind of, you know, low risk. From a business point of view, you want something that scales pretty easily and doesn't take up a lot of time. You don't want to have a product for prospects, which is like a first 10 hours of your time working with someone cheaply. You want something that sits out there that is an easy first thing that people can buy. Or they don't even have to buy it. They just engage with it. So a free webinar is actually a great product for prospects. But it should be productized. It should have a package that, you know, ticket plus this plus this. It should feel like a product that you're engaging with. So then after the product for prospects, you've got your core offering. This is the main thing that you do it could be a service it could be a product it could be an offer it could be a productized service it could be a decommoditized product that has additional services with it could be gold silver and bronze version type thing but that's the core product that's the main thing that you do and then the final product is called a product for clients. And this is something where you take people on an extended journey and you go on a long journey with them. You really look after them for years at a time and it's different to the core product. So BMW has cars as its core product, but it has finance and insurance as its product for clients. It actually makes about 40% profit margin on finance and insurance and about three or 4% on cars. But the only reason it makes 40% on finance and insurance is because they covered all the costs of winning the client through the cars. And then they have, you know, blue ocean after that. So it's the ecosystem that bubbles up the profit. Now, here's the interesting thing with ecosystem.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode