Lesson 120 of 123
M5 - Scaling with Network effects

Adding a service bolt-on

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Vertical scaling is expanding from tier 1 to tier 2 to tier 3 and even beyond.

We already designed a 3 tier version of each product. So we know the rough pathway to follow.

We now complete the remaining steps to build the components of the remaining tiers.

Generally these components will come in other formats - like video. I’ll talk about this shortly.

Remember that the product is still solving the same problems as before.

A lot of the material in further tiers may seem redundant. For example we might have:

  • a one pager cheatsheet

  • a checklist

  • a flowchart

  • a Notion guide

  • an eBook

  • an audiobook

  • a video course

  • a piece of software

All focusing on helping people to integrate AI for low cost in their business.

All will hit basically the same points, using similar frameworks and systems, just in different formats.

Does this make it less valuable?

Not at all. Because:

  • People don’t act immediately - if they did we could give them a single sentence on a big problem like losing weight (eat less, only nutritious food, move around more) and they’d go ahead and do it. Humans don’t work like that - we need more handholding.

  • People learn differently. We all have different preferred formats. Mine is reading. For others it’ll be video. For yet others audio. Converting our product into different formats lets us hit different customers

  • Multi-format information. Having the product in multiple formats lets customer to access the value in multiple ways.

If in doubt always just think about what will best solve your customers’ problems. That’s the keystone here. They are at A and want to get to B. How do you help them do this?

This sounds all well and good but how do you actually go about, for example, creating a video series to add to your course?

Or an infographic? Or a piece of software? Or a chatbot?

Each of these different product outputs could be its own Prompt Playbook. I’ve actually written books on several of these already!

Regardless of the format the process is basically the same.

First, use the same steps to produce the structure and outline of the product component. This is the same for eBooks, video courses and even software (GPT-4 can write code for you).

Second you have a choice:

  • Up-skill and create the product yourself. Grab one of my specific Prompt Playbooks for a guide or come ask in the community for signposting about how to learn.

  • Outsource the work on Fiverr, Upwork or a similar site.

If you want to continue your learning I’d recommend the first.

If you want to quickly develop and deploy I’d recommend the second.

As a general rule (unless you have the skills) I’d recommend outsourcing coding work as well as high end design work.

And the second is now possible because we are only scaling vertically once money is coming in from the first sale. We reinvest that cash into developing tier 2 and beyond. We do not scale to tier 2 unless the cash is coming in!