Life And Death Is In The Hands Of The Product Creator

As the end of the year is reaching to a close, I want to share with you a principle of creating products that will effectively:

- Increase your passive income forever
- Cut costs tremendously
- Master the art of timing

As you already know by now, I’m this close to selling off my signature brand – Inspiration DNA. I am going to use this as a real life case study regarding the life cycle of a product.

The life cycle of a product is essentially the ‘life and death’ for a product. Here is an illustration on how the product life cycle works:

This is the typical life cycle of a product.

1) The market introduction stage
o Costs are very high
o Low sales initially
o Demand has to be created
o Customer’s trust is low
o Low profits

2) Growth stage
o Costs are reduced due to economies of scale (bulk buying)
o Sales volume goes up
o Profitability is viable
o Public awareness is increased
o Product creation process is streamlined to be more efficient

3) Maturity stage
o Costs are lowered even more as production volume increases
o Product creation process is totally automated
o Sales volume peaks as market matures
o Brand differentiation and full awareness
o Best time for profits

4) Saturation and decline stage
o Diminishing returns
o Sales declines
o Profits drop
o Motivation to maintain the product becomes tiresome

Now here’s a very important question… what if I can show you how to keep all the good stuff and eliminate all the bad points (especially the saturation and decline stage)?

You see – Internet marketing products are very different from the typical product life cycle and if done correctly, can ensure perpetual market stability. This means that you can create passive streams of income for a very long time without it diminishing!

How is this possible?

Simple – because of the nature of the E-product and private label rights.

Private label rights (PLR for short) is a business where it helps internet marketers and content publishers accomplish 2 things – save time and money and create more time and money.

It saves people time and money because marketers and publishers no longer need to hire people to create products for them.

Will there ALWAYS be a need for products to be created and time and money to be saved?

Of course!

And selling an E-product is NOT a zero sum game!

If you sell someone a physical book, you lose the book but you keep the money.

But if you sell someone an E-book, not only they keep their book, you keep your book too! (And the money as well!)

The Steve Jobs of the 80s would’ve given an arm to be here today and take advantage of this business model (just look at the app store!)

So since we’ve established that money can be made easily in this dream business, let’s look at the new product life cycle using Inspiration DNA as an example:

1) The market introduction stage
o Costs are higher initially
o Low sales initially
o Demand is there but the brand awareness is just beginning
o Customer’s trust is low
o Low profits

2) Growth stage
o Costs are reduced due to economies of scale (bulk buying)
o Sales volume goes up
o Profitability is increasing like a rocket
o Brand awareness skyrockets due to the nature of the Internet
o Product creation process is streamlined to be more efficient

3) Maturity stage
o Product creation costs drop drastically
o Business model becomes autopilot
o Sales soar like crazy due to conquering a sizable market share
o Becomes the no.1 brand in the personal development PLR market
o Optimal and still growing profits

4) Virtually non-existent decline stage
o E-products do not have a maintenance cost
o Evergreen market (sells forever)
o Profits still there due to an almost infinite global market
o Autopilot passive income

I’ve been asked this question many times since last week.

“Khai, why are you selling your business if it’s doing so well?”

Okay, here are a few reasons why:

1) As you’ve read from the analysis above, it is IMPOSSIBLE for the PLR market to be saturated. E-products multiply and though I am sharing my market share with 5 others, it doesn’t affect my profits in the long run.

2) I wanted to prove how easy it is to take someone from market ‘nobody’ all the way up to the 3rd stage which is the maturity stage. Meaning that they can operate a business by bypassing the introduction and growth stage and make profits at the maturity stage right aware where brand awareness is at its peak and market profits are still growing.

3) My ‘factory’ which is my product creation system is already in place and if I wanted to, I can create something new to deliver value to the marketplace. Selling my business doesn’t make me lose anything – on the contrary, when more people are distributing Inspiration DNA, the market awareness and buying power grows so it’s a win-win-win situation (for me, my ‘franchisees’ and their customers!)

I hope this post has taught you something about creating your very own ‘dream’ business. At the time of writing this, 4 out of 5 spots of Inspiration DNA ‘franchises’ are sold and paid.

If you are looking for a way to jump straight to maturity stage, head over here now.