1. The Product Needs to Solve a Problem or Create a Desire

The product should solve a problem for a specific audience, such as reducing time on a task, optimizing a process, or eliminating a pain point. It should offer a clear benefit, making it indispensable for the customer.

Problem-solving products provide immense value by addressing real needs or offering better solutions than existing alternatives. When an ad directly addresses a problem, it’s easier for customers to decide to buy.

For instance, smartphones solve multiple problems like checking emails on the go, and fitness watches track exercises and measure heart rates.

If the product doesn’t solve a problem, it should create a strong desire. This can be through aesthetics, like art or jewelry, or niche-specific items that trigger purchase intent.

Consumers often make purchase decisions based on products that boost their confidence or status within their social circles.

2. The Product Needs to be Unique

We seek new products not available locally. Unique attributes, features, or designs make a product stand out. If the product doesn’t solve problems in new ways or offer unseen features, it should have a unique twist.

Generic items don’t sell well online. For example, a basic hoodie can be bought anywhere, but a hoodie with special features or unique designs attracts more interest.

Solving A Problem + Uniqueness + Wow Effect (Chapter 6) = Desire For The Product

Combining these factors triggers impulse buying, critical for online store growth, especially on social media. Fast shipping and low prices aren’t enough; the product must be appealing.

Other methods to encourage buying include creating a trustworthy store, a sense of urgency, and showcasing buyer experiences. However, the product’s appeal is paramount.

3. Engaged Audience

Engaged audiences include enthusiasts in areas like motorcycles, cars, music, fishing, and more. Selling to a niche market allows for personalized content and stronger brand loyalty.

Segmenting a large niche can also be effective. For example, targeting music teachers or seniors can refine marketing strategies.

4. Product Shouldn't be Widely Available

We avoid commonly available products. Exclusivity makes your website the go-to source. Typical “winning products” are unusual and unique.

Research thoroughly to ensure the product is new and niche-specific. Exclusive products compel customers to buy from you, as they can’t find them elsewhere.

5. Must be a New Product

The product should have new, innovative features. There are thousands of new gadgets with unique attributes entering the market daily.

New products ensure low availability, driving sales. Unique, low-availability products compel people to buy from you.

6. The Product Needs to Grab Attention

The "Wow" factor is crucial for social media. Products must grab attention in seconds, showcasing their uniqueness and necessity quickly. The "Woweffect" amplifies desire and makes ads stand out, impacting Top Of Funnel (TOF) Numbers. Unique products that make you say, “That’s awesome!” have this effect.

7. Perceived Value of the Product Must be Higher Than the Selling Price

Perceived value is how much a product is worth to a customer. It’s about meeting or exceeding their willingness to pay (WTP). Selling below WTP makes for a compelling offer.

Factors like uniqueness, demand, and rarity affect WTP. Market data analysis is essential. Niche-specific customers might be willing to pay more.

Perceived value isn’t real value; it’s what consumers think a product is worth. Marketers must enhance this perception through storytelling and effective marketing strategies.

8. Minimum Gross Profit Margin of 50%

Gross Profit Margin = Selling price - (Cost of Goods Sold (COGS) + Shipping & Fulfillment + Processing Fees)

A minimum gross margin of 50% is recommended, ideally aiming for 66.6%. Higher ticket items can have lower margins. Bundling products or offering discounts can increase margins.

9. Don't Force Margin on a Product

Don’t price a product solely based on a recommended margin. Market research is crucial. Compare similar products and their features to set a competitive price.

Unique features can justify higher prices. Effective marketing can position a product as high-value, making it irresistible to customers.

Conclusion

Understanding product criteria helps in identifying suitable products. Product research is a time-consuming task, requiring knowledge, connections, and sometimes overcoming language barriers.