Tim Ferriss Agrees: Physical Products Over Services
Why Tom’s has the Best Business Model
Why Services Lose Out
Customers will literally take it out of you. They demand the world,
and your time, which is warranted, they are getting your money,
but still…I became an entrepreneur to control my own time.
And I know what you’re thinking why not just
When you don’t have the support of your family in your
entrepreneurial efforts and don’t have capital for hires
everything is on you. Taking care of lead generation,
sales, and delivery, will burn you out
Why Products Win Out
Products both digitally and physically allow
you to set and forget essentially. The most intensive part
of the whole process is product research and development.
Once that is over it’s pretty much a cakewalk
depending on the platforms you choose to advertise on.
Fulfillment options like Amazon’s FBA program is a Godsend.
Waking up every morning to money in your bank account
due to a little groundwork you put in
months ago is AWESOME.
The best part is no big outstanding arguments
with customers. Don’t like my product I have no
qualms giving a refund. It is some physical products
entrepreneurs’ favorite part of the business.
I don’t have to groom and coax customers
into a buy and customer acquisition is as easy as ever.
I may spend a bit on customer acquisition (usually PPC),
customers see my product; see my reviews, then decide
from there whether to purchase or not.
My day is my own to do with as I please.
No one puts this freedom to use as much as Blake Mycoskie,
founder of TOMS, the flexibility allowed in the
product-based business not only allowed him to fully
train a company president in just two months,
but allows him to go on a lot of speaking engagements,
as well as go on his company sponsored shoe drops to
the communities TOMS supports.
Not to mention, he has just launched a set of coffee products
with just 30 employees in the department. The fact company
as large as TOMS, only needs 30 people for a whole new
product category is insane, and helps you really see the
flexibility of the products business.
Products give you the feeling of freedom you sought
when you began your entrepreneurial journey.