3 Criteria For Choosing Your First Product On Amazon FBA

Hey, everybody, this is Ryan Daniel Moran. I'm the founder of capitalism.com I help entrepreneurs build businesses and invest the profits. And today we're going to be talking about three criteria that you need to follow when you are choosing and launching your first product. I know how difficult it is to go over that hurdle of what product am I going to sell? So if you follow these three criteria, it puts you in the sweet spot of choosing one that is going to be profitable and choosing one that is scalable. And by scalable, I mean it's at least puts you in the range where you could be making $10,000 a month or $50,000 a month or $100,000 a month. So a lot of people make some very common mistakes. But if you stick to these three criteria, then we'll make sure that you solve this. The real magic is when you combine all three. So make sure that you get all three of them before you just run off and start making decisions. So the first criteria to ensuring that you have a successful first product is to focus on really big markets. A common mistake is for people to look at two niche of a product. And so they're trying to find where there's low competition rather than going after really big markets. Now, there are some nuances to this that can make it easy for you to carve out a small little piece of the pie and be really profitable from that. But one of my mentors right when I was starting out told me, you don't want to go into small markets because even if you kill it, your profit is going to be very small. But if you go into a really big market, even if you just do okay, you've got enough to do damage. So stick to really big markets that a lot of people buy things in. Pets, coffee, food, beauty supplements, health, muscle, hobbies, habits. Big, big markets. Like, if there's not a competitor in your market, it's a bad sign. Now, here's a little secret for you. Big brands right now are kind of crumbling. So I'm really fascinated by the big brand world. Companies like Procter and Gamble, they do like the biggest, any household cleaning item Procter and Gamble has a business in. Well, they're buying up small brands that you might want to start because.

They can't release products as fast as young, scrappy entrepreneurs like you. So don't be afraid that there are big competitors in markets that see that as a sign that there's a lot of money in that market. So stick to really big markets. That doesn't mean that you're gonna sell the same thing as everybody else. You're not gonna sell the exact same coffee as somebody else or the exact same beauty cream as somebody, as some big brand. But if there's a big brand or lots of competition in a market, it means you can get a foothold in that marketplace. That's a beautiful segue to number two. Any product that you release must have the ability to be differentiated. So choose different. Let me try that again. Choose, differentiate, whatever. Choose products that you can differentiate. Now, that doesn't mean you gotta create a new product from scratch, but let me show you a couple examples here.

This would be a really good example. Okay, so this is flavor. God, they just kill it on Amazon. They sell spices. Now, spices can be a little bit differentiated. They do it through having really cool custom flavors. Like, this is the everything flavor, right? So that's different than just selling chili powder. You can't differentiate chili powder. Chili powder is chili powder. Is chili powder is chili powder. But if you use a custom blend of chili powder with other things and make a new flavor that can be differentiated. Another example is something like RXBar. RXBar was a big company that sold for $600 million to Kellogg's because Kellogg's can't innovate as fast as a guy in his garage who started rxbar. Now, was there a lack of protein bars in the world? No. But this was differentiated just enough and focused on. Originally, they targeted the CrossFit community. So since it had a specific person in mind, they could make the product just for them. And Kellogg's came a knockin and paid them $600 million for it. Even though Kellogg's has their own protein bars, this was different enough in the protein bar market to still serve a big audience, but be a really successful product. Now, let me show you a bad example. If you're selling can openers, how do you differentiate a can opener? I don't care what brand this is. I don't want to buy any of their other products. This isn't different than any other can opener. So why am I choosing this over one that's just like it? Any competitor can knock this off. Any competitor can go to the same manufacturer that you've got and sell the exact same thing. This is not a differentiatable product. Same thing with something like a water boiler. It's going to be hard to differentiate a water boiler. You could do it if this was like a stylized luxury item, but this isn't. It's a steel water boiler. I don't care where it came from. I care does it work and what the price is. That's all that matters. So you don't want to go after products that are exactly the same as everybody else. But in a lot of cases, you can differentiate just about everything. Are all candles the same? No. Are all journals the same? No. Are all bath bombs the same? No. Are all beauty products the same? No, they're all a little bit different. Are all MacBook cases the same? Kinda. Unless they're like graphical and stylized and stuff like that. So this would be a market that you would not want to go into unless you could come up with some new spin on an old favorite. So stick to products that you can differentiate. Number three. Before you choose your first product, choose your second and third product first. Here's why. In order for you to be successful and for you to be able to generate enough cash flow for you to really have a successful business, you're going to need more than one product. I have kind of pioneered the idea, although it's just math, that if you've got three to five products that sell at least 25 sales a day, that puts you in the range of about 100 sales a day and about a $30 price point. That's a million dollar business. So if you want to be successful, you're going to have to roll out multiple products eventually. And you would not want to roll out products that did not complement one another. You wouldn't want to sell a water boiler and then deodorant, although this is my buddy's company, sold it for $100 million in two years. Amazing. So you would not want to just roll out a bunch of random products. You want the products to be complementary to one another. So if you were selling, selling kitchen items, then maybe you're doing a can opener and a water boiler, but I told you not to do those products. So that's a terrible example. But if you're doing a supplement company, you want to know what your first, second and, and third product are going to be before you ever release that first one. Because if you can create a range of products, then you can choose the best one from that list. Knowing that you're gonna have product two and three follow it up. And that's gonna give you a much, much faster route to profitability and to living the type of life that you want. That is on your own terms. Because you have this business that's spitting off enough cash flow to justify that. Rather than just selling a random product, you've got, got to know at least what your three products are going to be before you go to market. A way that I found that it's really easy to be able to discover what those three products are is just to pick a person. Pick the person that might buy one of your products or the person that you are targeting or thinking about marketing to do. They already have three to five things that they buy on a regular basis. If you just picked parents or dog owners or cat owners or health enthusiasts or crossfitters, can you find three to five products that that person is going to buy already? That gives you a nice range for you to choose three products to focus on so you can choose the best first product. We have a training on this which is called Million Dollar brands over@capitalism.com I'm sure there'll be a link in the description, but we'll what we do is help people choose what those first three to five products are going to be and identify how they're going to bring it to market. And it's $297, but it's actually free. If you complete the training, you just fill out a form that says I followed the steps and you have the option to get all of your money back because I know how important it is for you to just make decisions about what product is going to sell and be the first thing that in my brand. So if you just make decisions, you can move forward confidently and that's what we do inside our trainings and that's what I hope you've experienced from this video. So if you follow those three criteria, you'll have a much, much higher chance of success rather than just choosing random products to sell on Amazon or Kickstarter or wherever you take your sales. So hope you enjoyed this video. Let me know in the comments if you have any questions and make sure you're subscribed to the channel. Also, if you liked this video, I share a ton about building businesses and investing the profits on our podcast, which is capitalism.com with Ryan Daniel Moran. Thanks for watching and I hope to chat with you soon.