Now let’s look at scaling our digital product.
We planned our first product launch in a way that made it as lean and fast as possible.
The idea was to get something shipped without it taking us half a year.
Once you’ve launched your first basic digital product we can double down and make it generate a lot more revenue.
Many make the mistake of launching a single product and leaving it at that.
If it works: happy days, collect the cash until momentum dies down and sales peter out.
If it didn’t work: “digital products are rubbish, I’m never doing that again”.
Both bad.
Instead we want to keep launching potential products and doubling down on those that work.
By doing so we start to grow our knowledge, customer base and profitability of each launch.
There are two basic ways we can scale our product offerings.
First we can scale vertically for depth. This is taking our existing products and adding more depth.
We’ve been building up to this by designing tiered products. We can add scale by filling out our tiers.
The price of the product bundle goes up with each tier - allowing us to generate a higher average revenue per sale.
The second way to scale is horizontally for width. This is basically adding more products.
Specifically it’s adding more tier 1 products, rapidly, to see which ones resonate with the audience.
We did audience research early on but product launches will always be a bit unknown. We don't truly know how the audience will react until we launch. They might say they are ready to buy but until people get their credit cards out we don’t know!
Because of this I’ve designed the product launch process so that you can rapidly deploy lots of tier 1 products. In earlier Parts we generated **lots of ideas - very likely you had a few that were interesting. Horizontal scaling is building and releasing these products.
We’ll now cover both methods.