I’m Broke, What Should I Sell?
Summary
- When choosing what to sell, consider the limited categories of products: physical and digital goods, services, access, attention, risk (insurance), money, endorsements, or a combination of these.
- Your previous experiences, skills, and resources determine what you can sell effectively; utilize knowledge from your background or upbringing.
- For those with limited funds, such as $100, selling time-intensive services is a practical starting point.
- To scale a business offering, apply the 'Delivery Cube', which considers one-to-one versus one-to-many delivery, DIY versus DWI versus done-for-you models, the type of support offered, the mode of content consumption, the speed and convenience of service, and what changes would be needed to justify 10x higher or lower pricing.
- Experiment with the level of support and consumption mode to find the best balance between value and scalability.
- The 10x to 1/10th test helps explore the potential changes needed to justify significantly altered prices and can reveal innovative ways to offer value.
- This advice aligns with strategies I discussed with entrepreneurs at the University of Texas, emphasizing starting small and scaling intelligently based on one's unique advantages and constraints.
Video
How To Take Action
I would suggest identifying what you can sell based on your skills and resources. Look for what you know more about than others because of your past experiences. Let's say your mom is a great cook, you might have food recipes that you can share or offer cooking classes.
For those with little money, like $100, selling services that need your time, like tutoring or consulting, is smart. You want to give people a lot of help without spending too much cash.
Now, let's talk about the 'Delivery Cube'. Think about if you can teach one-to-one or one-to-many. Can you make videos for many people to watch? Or do something with a few people at a time? That's important for growing what you offer.
Next, look at 'do-it-yourself' versus 'done-for-you'. If you're like guiding someone, that's 'done with you'. Think about what support to offer. Chat? Email? Phone? Each one affects how many people you can help at once.
Consider how people will get what you sell. Is it a live class, a recording, or maybe an ebook? Live is often seen as better but can't reach as many people.
Then, think about speed and ease. Can people get your service all the time? Or do you answer quickly during work hours? This will affect how many people you have to help out.
Finally, do the 10x to 1/10th price check. If you had to charge ten times more or only one-tenth, how would you change what you sell? This helps you find ways to give a lot of value or figure out how to do it cheaper but still good.
So, start small, use your unique skills, and smartly grow your offerings. This approach helps you focus on what's important and how to make your business better.
Quotes
"Digital and physical formats of each of these things actually give you 14 different things you can possibly sell"
– Alex Hormozi
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"If you're a first-time entrepreneur, then you're like, well, I don't have any other experience, but you actually do"
– Alex Hormozi
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"Now you might record it and then also sell the digital versions"
– Alex Hormozi
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"Here's the person I provide the most value to for the least amount of money to me, that's where your sweet spot is"
– Alex Hormozi
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"Anything that's live is typically going to be perceived as more valuable"
– Alex Hormozi
