By Chris Malta & Robin Cowie
We’ve just finished several months of development on a new software product
here at Worldwide Brands, Inc., and it’s now available to you as a FREE
TRIAL. I’m very anxious to tell you about it; I’m sure you’ll be as excited
about it as we are. 
)
First, though, I’d like to tell you why we spent all that time and energy,
working with many very successful ECommerce experts, to develop this new
software.
For years now, through all the time I’ve been working in and writing about
ECommerce, I’ve always come across one single question far more often than
any other. It’s a question everybody has, and nobody seems to be able to
answer easily. What’s the question?
“What should I sell on the Internet?”
People email us and ask us that all the time. People call us and ask us where
they can find out how to make that decision. I myself have struggled with it
many times. Lots of people know what products they want to sell Online.
Nobody really knows ahead of time if those products stand a chance of making
you money.
If you really want to know the answer to that question, your only choice is
research, and lots of it. Based on years of experience, here’s the basic
process that we and many other successful Online Retailers would go through
every time we try to decide on a new product to sell on the Internet.
Find out what the Demand for the product is:
If I’m going to be a food vendor at a baseball game, what should I sell
there? I may really like salted peanuts. Maybe I get up every morning and eat
salted peanuts for breakfast, and drink a salted peanut flavor Power Drink.
Than I have a salted peanut sandwich for lunch, and two processed salted
peanut patties on a bun for dinner. So, I really love salted peanuts, know a
lot about them, and think they’re the greatest thing in the world.
Does that mean that I should sell salted peanuts at that baseball game? Well,
it’s something that I know people like to eat at baseball games. I know
people do buy them at baseball games. However, there are things I don’t know
yet. For example, how many people at that particular game are likely to want
to buy salted peanuts?
Generally, salted peanuts are a good bet to sell at a baseball game. However,
I may not know the area very well. If I’m a traveling food vendor, following
sports seasons through the country in different states and different kinds of
weather, salted peanuts may not always be a good idea. Salted peanuts are
pretty good when they’re fresh and slightly oily. During the summer, people
just eat them up left and right at baseball games. During cold weather,
though, they tend to get more dry and crunchy, and the salt doesn’t stick to
them very well because the oil gets hard. If it’s cold enough, eating salted
peanuts outside can be a bit like chewing gravel. Yech!
Weather isn’t the only problem. If it turns out that the game I’m going to
sell at is a special event to raise money for the Worldwide Allergy
Sufferer’s Foundation, I will probably find that many people there might have
an allergy to peanuts of any kind! That means that there is a much lower
demand for my product than I’d like.
So, where is the game I’m going to be selling at? Is it a cold-weather game?
Who’s sponsoring it? Are there likely to be many people there who can’t eat
salted peanuts?
These same ideas, silly as some of them might sound, apply to Internet Sales
as well. After all, the Internet is just another place to sell products. The
basic concept of Demand is the same there as it is anywhere else, and has
been for all time. If there aren’t enough people who want it, there’s no
profit in selling it!
When we at Worldwide Brands, Inc., want to know what the Demand on the ‘Net
is for a product, we spend many hours, and sometimes days, researching.
To find out what the Demand for something is, we need to find out how many
people are searching for it in the Search Engines.
We try to find out how many people are using those Search Engines to look for
the product we want to sell, then we categorize that information according to
the different search term variations people use.
For example, if someone were searching for a place on the Internet to buy
salted peanuts, they might use the search term “peanuts, lightly salted”, or
the search term “salted peanuts”, or many other variations. We have to try to
think of what those variations might be, and find out what the Demand is for
each of them. Overall, we’re looking for numbers on just how many people are
searching for our product using different search terms. The more people who
are searching for it, the higher the Demand.
Once we have those numbers, we go on to the next part of our research.
Find out what the level of Competition is: So, what else do I need to know if
I want to sell salted peanuts at a baseball game?
Well, I’ve done my Demand research. I know that this particular game will be
a summer game, so the peanuts won’t get cold and crunchy. So, I know I have a
good Demand for the product.
Now, I need to know what my Competition will be like. Before I pack up my
peanuts and go to that game, don’t you think I should try to find out how
many other vendors I will be competing against?
If there are fifty other vendors in the stands selling salted peanuts, I do
not want to be ‘salted peanut vendor number fifty-one’!
So, I’m going to do some more research. I’m going to contact the ballpark’s
management office, and try to find out how many of the vendors at the
ballpark are planning on selling salted peanuts. They may not know exactly,
but they’ll have an idea. If there are fifty other vendors selling salted
peanuts, I’m going to ask how many vendors are selling lemonade. I may not
like lemonade. Maybe the taste of it makes my face scrunch up and look goofy,
and the sugar gives me the squeaking jitters.
However, if there are only five other vendors selling lemonade, I’m going to
screw together my courage and darned well sell lemonade at that ballpark
instead of salted peanuts. Knowing salted peanuts as well as I do, I know
there are going to be a lot of thirsty people there, with fifty salted peanut
vendors roaming around.
Again, the internet is the same way. The ‘Net is just another place to sell
things, and if there are too many people selling the same things, nobody
makes any money on them. That’s what we’re here for, after all, right? We’re
in this ECommerce thing to make money, not to satisfy our personal taste.
Once again, when we at Worldwide Brands, Inc., want to know what our
Competition is for a new product, we spend many hours, and sometimes days,
researching on the Internet. What are we looking for? When we look for our
Competition, we know that there are two basic ways that people sell on the
Internet. They use Internet Stores, and they use Auctions. So, we need to
look at both.
We start with a dedicated Internet Store shopping site with a high degree of
popularity; Yahoo Shopping. We spend hours in there, acting like a customer,
using different search terms to search on the product we want to sell. We
find out how many Stores sell only that exact product, how many sell products
similar to it, and how many sell the exact product and others similar to it.
We look at which Stores have higher popularity, and which of those feature
our potential product more prominently than others.
We break all those numbers out into categories, and write all that
information down. Then we go to the next part of our research.
Find out what the General Interest level is Salted peanuts are a bit of a
“gimme” in this area. Everybody knows what they are, and most people like
them. On the Internet, though, it’s important to find out what the general
level of knowledge and interest is for a product before trying to sell it.
Here at Worldwide Brands, Inc., we go out to one of the big Search Engines,
and search for our product again under many search terms. This time, though,
we do it not as a customer, but as someone interested in information about
the product. Kind of like the difference between wanting to buy a package of
salted peanuts, and wanting to write a school report about how they are grown
and packaged.
General interest in a product helps to gauge where our Demand and Competition
numbers fall into the big picture. For example, if there isn’t much Demand
for a product, and there isn’t much Competition, it would seem that it might
not be a good seller. You can’t sell something to people if they’re not out
there looking to buy it. If there aren’t many people out there trying to sell
it, either, then it’s probably not a good idea.
However, if there is a lot of General Interest, it may be that we’ve stumbled
across the Holy Grail of Internet Retail research; the fabled Untapped
Product Market!
That’s rare, but it happens. People find Untapped Markets, and begin to
exploit them through associative advertising (advertise a more common,
related product to lead people to a new one).
However, as I said, the more common use for General Interest information is
to help us understand what our Demand and Competition numbers mean.
Once we have General Interest numbers, we go to the next part of our
research.
Find out how others are Advertising this product: Let’s say that based on my
research so far, I think I can make a good business out of selling salted
peanuts. I’m not just going to sell them at baseball games, either. I decide
I want to place an ad in my local Yellow Pages, and sell salted peanuts to a
lot more people.
Should I just jot a few words down, and send them off to the Yellow Pages
Advertising Office?
Of course not. My research is still not complete. I’m going to need to see
how many other people are advertising my product in the Yellow Pages. If
there are a good number of them doing so, it may mean that it’s a good
product to get into. And if it is a good product to get into, I’m going to
want to see what others are doing with their ads to make them successful.
So, I grab a copy of the Yellow Pages, and turn to the “P” section. Lo and
behold, I find ads for salted peanuts. Some are big, some are small. Some are
cheesy, and some are pretty interesting. I don’t think there are too many ads
to compete against there, so I decide to run an ad. I’m going to study the
best elements from my competitor’s ads, and create a better one than any of
them.
Same thing on the Internet. If you’re going to sell a product Online, you’re
going to have to advertise it in some way or another. Today, Pay Per Click
Search Engines are the dominant force in Internet product Advertising.
So, here at Worldwide Brands, Inc., we hit the three most influential Pay Per
Click Search Engines; Overture, Google, and Findwhat. That’s where we begin
our research.
Once again, we act like a customer. We use as many search terms as we can
think of to search for the product we think we want to sell. What we’re
looking for here is twofold:
How many other people are paying to Advertise the product Online?
What do their ads look like and say?
The number of other people Advertising the product gives us a feel for
whether the product is overexposed. If there is too much Advertising, that
means too much Competition, which is not a good thing.
The way other people’s ads look and what they say gives us ideas as to what
our own Advertising could say if we decide to sell the product. We spend
hours at a time gathering links to other Internet Retailers’ ads for the
product, then looking them over, comparing them and making our choices as to
which ones we like best. Then we combine the kinds of elements we like from
all of them, and create our own unique Advertising, hopefully better than any
of the others.
Finally, we move to the last phase of the research process.
Analyzing all that information!
The Analysis process is not easy, nor is it pretty! It involves spreadsheets
and charts and graphs and links and lots of time, cups of coffee, bleary eyes
and late nights. We have to look at all of the data we collected on Demand,
Competition, and Advertising, and make a decision as to how they all balance
out.
Here are some of the issues to consider:
Not enough Demand (as compared to Competition) means not enough people are
going to buy.
Too much Competition (as compared to Demand) means not enough of a profit to
go around.
Too much Advertising drives up the price of Pay Per Click ads, and increases
Competition as well.
Not enough General Interest, combined with a low Demand, means that there may
not be a good market even if there is some Competition out there trying to
make the sales.
Those are just some of the things we consider. Overall, we compare all the
various Demand, Competition, Advertising and General Interest numbers against
each other, and use our own unique formula to make sense of it all.
Still with me? I know it’s taking a long time to get to the point, but it’s
important that you understand the research process first!
Here’s the good part of the story.
Several months ago, we were batting ideas around with Jon Wittwer, developer
of the Market Matrix. Jon was telling us that he had based his Excel
Spreadsheet-driven Market Matrix partly on information he read on our site.
Funny how these things work. )
Jon’s Market Matrix gathers all that detailed research information we talked
about above automatically, by searching the Internet. We thought that was
great. However, it still didn’t complete the research process for us. We
still had to manually sift through all that data and apply the unique
research formula we use, in order to make sense out of all that information.
Somewhere along the line, a light bulb magically appeared above our
collective heads. We said, what if we could combine some of the functions of
Jon’s Market Matrix with our own unique research formula, and build the whole
thing into a computer program?
Great things can happen in the course of a phone call and a cup of coffee,
folks. Believe it. )
We had just realized that we could completely automate this entire time-
consuming manual research process!
With Jon’s blessing, we forged ahead into developing that software. Well, it
took months to do that, as I said. Our Programming expert, who is the most
good-natured human being I have ever met, worked so long and so hard that he
almost got annoyed once! That was a first. ) My Business Partners, myself,
and our Research Team also put in a great deal of time and effort into
combining automated information-gathering techniques, and our own research
formula, into a single piece of software.
Finally, we created The Market Research Wizard. (Trumpets sound; the crowd
goes wild!)
The Market Research Wizard does in minutes what it used to take hours, or
even days, to do.
It’s a computer program in which you can type a couple of words describing
the product you want to sell, and less than a minute later, gives you an
actual Analysis (from 0% to 100%) of that product’s chances of success on the
Internet. It connects to the Internet and automatically collects all the
information I talked about above, usually in less than a minute. Demand,
Competition, Advertising, and General Interest. Then, it uses our own unique
formula (the one that I said we use ourselves, to make sense of all that
data) and generates an instant Analysis.
That’s not all, either. It not only tells you how much Demand there is for
the product you want to sell; it tells you what key words you should use to
market that product if you decide to do so.
It not only tells you how much Competition you have; it tells you where your
Competition is, so you can decide if the product is better marketed in an
Internet Store, or an Auction.
It not only tells you who your competing Advertisers are, it gives you
clickable links to their ads, so you can study and out-Advertise the other
guys.
It also allows you to export all your instantly generated research
information to any Spreadsheet program, print your research, recall all your
past research on any product, and more.
All in just minutes.
Now, remember what we say all throughout our web site and published
information, folks. There is no magic bullet! The success of your business
depends on many things, and proper research is just one of those things.
However, if you can take a process that you’re not sure how to do properly,
and have it done for you, the right way, you’re greatly increasing your
chances of success. Along the same lines, if you can take a process that
normally takes hours or days to do manually, and do it in minutes, you’re
gaining yourself a heckuva lot of time that can be used to concentrate on the
rest of your business! If you’ve subscribed to our Newsletter for any length
of time, and you’ve been through our site and free information, you know that
we are not into making heavy sales pitches. That’s why this Newsletter goes
to such great lengths to describe the manual process that we’ve used in the
past to do our product research.
So, if you like, you can try the manual research process that I described
above.
Or, if you like, you can go to Click Here, and download a FREE TRIAL of our
new Market Research Wizard. It won’t cost a cent to try it, and we know it
will save you a tremendous amount of time, while helping your business
succeed.
