How to Come Up With a Winning Product Idea 101

Today I’m going to walk you through my process in coming up with winning product ideas.

One of the biggest mistakes new founders make is choosing the wrong product. You may launch an entire business based on a fundamentally flawed idea. It is possible to lose the game before you even begin.

And the problem is that most YouTube videos offer pretty terrible advice: like creating $20 copycat products to dropship.

But there is a right way of doing it. After selling 6 figures and launching both winners and losers, here is how I would come up with a winning product idea:

  • Live with your audience
  • Isolate a problem and solve it
  • Does it make enough profit?
  • Does it have lifetime value potential?
  • Can you build a brand out of it?

Step 1. Live with your audience

You cannot create a good product without understanding your audience. You may have heard that some products fail because they lack ‘product-market fit’. That’s because the founder launched a product that the market didn’t care about.

What I mean by living with your audience – is to immerse yourself into their way of thinking and understand HOW they live.

Seth Godin says the ‘core’ of understanding your audience is understanding the mantra “People like us, do things like this.”

At Binky Barker, my audience is dog parents. We do quirky things like use strollers for our dogs, celebrate their birthdays, take them swimming etc. Have you ever been to a dog birthday party?

dog birthday party

Tim Ferriss recommends you understand write out your audience’s psychographic profile. What do they fear? What do they desire? Where do they hang out on the internet? What channels do they follow?

By living with your audience, you understand what they want – learn what problems you can solve for them.

Step 2. Isolate a problem and solve it

Marketing is about solving problems to change your customer’s lives for the better. (Seth Godin)

Now that you know your audience inside and out – you want to find a problem to solve.

When I became a Keto dieter for 6 months, I gave up carbs, and low and behold, I got a headache. Turned out this was a chronic problem that Keto’ers faced – they got the “Keto Flu”. This was a problem.

When I immersed myself in the dog parent market, I noticed that most of the beds were fluffy, cheap and generally bad for a dog’s health. This was a problem.

Find a single problem – and create a product to solve it.

For the Keto diet – I created Keto Electrolytes, a supplement that combines 4 different electrolytes to solve the Keto flu. It’s now one of the best selling Keto supplements on Amazon.

For the dogs – we created the Binky Barker bed, a healthy dog bed that protects dogs’ joints.

Step 3. Does it make enough profit?

Now that you have a product that solves a market problem – you need to run a few red flag checks to make sure it actually makes business sense.

The first check is to know if it makes enough profit.

Ideally, you’ll be making over £30 in profit per sale, minimum.

Why? Because advertising – and any form of performance marketing – costs money. Acquiring new customers ain’t cheap, and more and more often now, it costs £20, £30, sometimes £50 in ad spend to acquire a single customer with Facebook ads.

You do not want to be the company making £5 profit per sale. That leaves you unable to advertise and severely cuts off your opportunities to grow.

Step 4. Does it have lifetime value potential?

If somebody buys your product, will they come back and buy it again? Or are there other related accessories and cross-sells they may want to buy?

In eCommerce, most of the profit comes after the first sale. So you want to be lining your customers up to buy other items in your catalog.

With my supplements, I have customers coming back 5, 6, 7 times. They spend hundreds of pounds at my store – and that makes it possible to spend a little bit extra on advertising to get that first sale.

If there is a high lifetime value potential – it adds a huge business opportunity.

Step 5. Can you build a brand out of it?

Finally you need to ask yourself several tough questions:

  • Am I willing to start a brand out of this product idea?
  • Am I willing to stake my time in solving this problem?
  • Is the purpose worth it?

I am a big believer in building purpose-first businesses. If you think the cause is worth it, that the problem is REALLY worth solving, you’re going to have a much more fun ride promoting it.

Let’s be real – for the next few months – or even years – you are going to be pitching this product. So you better believe in it.

With Binky Barker, our purpose is to give dogs happier lives. It’s a great purpose, and it’s one me and my wife are passionate about.

I hope this helps.

See you next week.