I have noticed in my past and current ventures and underwhelming at the market place. Why are my products and services not adopted? This is a difficult question to answer some options include:
- Am I out of touch with the market place?
- Is my marketing budget too small?
- Am I not patient enough?
I could be out of touch, my head could be so far in the clouds about some of my ideas that I can't see straight. It could also be that everyone I talk to about these things are just being nice and don't tell you what they will do. It could also be that I have just not talked to enough people. So how do I get more people to look and give me feedback? Marketing dollars are one solution and time is another, both of which I have neither of.
In this process of launching AppGin.Com, I have discovered an interesting funnel via Google Adwords, say you get a 1,000,000 impressions.
- Funnel #1) Getting people to click on your ad. About 1%, or 10,000 clicks. (how much per click?)
- Funnel #2) Getting people to register or sign-up. About 5-10%, or about 1,000 registrants.
- Funnel #3) Getting people to use your application/software. Unknown maybe 5%, or about 50 users.
- Funnel #4) Getting people to move from the “Free Version” to the “Paid Version”. Unknown maybe 5%, or about 2.5 sales.
So purely from a market research perspective, just going after the average Joe via Google Adwords this yields about 2.5 sales in 1,000,000 impressions. If you spend about $1.00 a click, that's about $10,000 for 2.5 $25 dollar sales, which from a business perspective is horrible.
So before you write any code, before you spend anytime on designing an architecture for your really cool new idea, try this:
- Get a cool idea.
- Get a few nice pictures and logos (pay to have someone create a cool logo for you).
- Create a registration form asking people if they would be interested in being a beta customer.
- Start a Google Adwords campaign, spend $200.
- If you don't get 10 registrants, think of something else.
- If you get 10 registrants, email them asking them about what they are looking for in this product or service, and what they would pay for it.
- If you don't get at least 1 person responding back, think of something else.