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11 questions to test your idea and how to validate it next

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guidaccio05

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Berlin
I'm currently in the process of validating two ideas, one being a membership group and another a lead generation business. So, I had to search how to do it and created a two-part method.

Before trying this I would recommend running your idea through the CENTS framework. However, if you want another approach on top of it and the next validation steps then read on.

Phase 1 - 11 Questions to test your idea (inspired by the YouTuber and multi-millionaire Alex Becker):

1. Can I be or am I 10x better than my nearest competitor? (differentiation and value skew)
2. Is it a huge problem that hasn't been solved? (commandment of need)
3. Is it a mass market or a market with deep pockets? (volume or magnitude or both)
4. Is the problem solved (adequately)? (are you going to be just another competitor? see n1)
5. Can I bring a fresh business model? (can you offer a different approach)
6. Do I have a huge traffic advantage? (e.g.: YT ads are underutilized as of now)
7. Do I have a Marketing or Copywriting advantage? (previous experience)
8. Is this a model that can be replicated quickly? (commandment of entry)
9. Can I serve an underserved sub-market? (niche down and specialize)
10. Can I be the #1 or #2 in that market? (dominate and create the CocaCola of your niche)
11. Could I work on this for the next 5 years with no return (assuming that you do not starve)? (are you in it for the value too or just the money)

If your idea fits the best possible answer for each question then you can move on to the next stage. If it doesn't then you can reconsider the idea if it has too many bad answers or just try it anyway to get the experience.

Phase 2 - Validate your idea (this post is a really good start)

Step 1. Run Ads

Spend $100 or 50 to 100 clicks on Google and FB Ads and send the traffic to a landing page with the offer, which in order of relevance is sale > call > email. Try to get one of the three. The closer you get to a sale the more validation you have.

Step 2. Analyze results

If the Ad converts at 1.5%+ CTR it is a good sign.

Good page conversions:
Sale - 1 to 5%
Call - 8 to 15%
Email - 15 to 40%

Step 3. Talk to the customers/subscribers

Understand what they are really trying to solve. Create a questionnaire or book discovery calls with them. DON'T SELL YET.

Step 4. Get your first sale

Tweak your product offering according to the interviews and ask them to buy it at 50% when it releases.

Step 5. Launch

If you can make Ads profitable use them to scale. If not build an email list of your target market and launch it to them when it is ready.
 

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SEOguy

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I'm currently in the process of validating two ideas, one being a membership group and another a lead generation business. So, I had to search how to do it and created a two-part method.

Before trying this I would recommend running your idea through the CENTS framework. However, if you want another approach on top of it and the next validation steps then read on.

Phase 1 - 11 Questions to test your idea (inspired by the YouTuber and multi-millionaire Alex Becker):

1. Can I be or am I 10x better than my nearest competitor? (differentiation and value skew)
2. Is it a huge problem that hasn't been solved? (commandment of need)
3. Is it a mass market or a market with deep pockets? (volume or magnitude or both)
4. Is the problem solved (adequately)? (are you going to be just another competitor? see n1)
5. Can I bring a fresh business model? (can you offer a different approach)
6. Do I have a huge traffic advantage? (e.g.: YT ads are underutilized as of now)
7. Do I have a Marketing or Copywriting advantage? (previous experience)
8. Is this a model that can be replicated quickly? (commandment of entry)
9. Can I serve an underserved sub-market? (niche down and specialize)
10. Can I be the #1 or #2 in that market? (dominate and create the CocaCola of your niche)
11. Could I work on this for the next 5 years with no return (assuming that you do not starve)? (are you in it for the value too or just the money)

If your idea fits the best possible answer for each question then you can move on to the next stage. If it doesn't then you can reconsider the idea if it has too many bad answers or just try it anyway to get the experience.

Phase 2 - Validate your idea (this post is a really good start)

Step 1. Run Ads

Spend $100 or 50 to 100 clicks on Google and FB Ads and send the traffic to a landing page with the offer, which in order of relevance is sale > call > email. Try to get one of the three. The closer you get to a sale the more validation you have.

Step 2. Analyze results

If the Ad converts at 1.5%+ CTR it is a good sign.

Good page conversions:
Sale - 1 to 5%
Call - 8 to 15%
Email - 15 to 40%

Step 3. Talk to the customers/subscribers

Understand what they are really trying to solve. Create a questionnaire or book discovery calls with them. DON'T SELL YET.

Step 4. Get your first sale

Tweak your product offering according to the interviews and ask them to buy it at 50% when it releases.

Step 5. Launch

If you can make Ads profitable use them to scale. If not build an email list of your target market and launch it to them when it is ready.
Interesting - did both ideas pass phase 1?
 

guidaccio05

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Berlin
Thanks a lot that's a super helpful guideline, the validation process always has me second doubting a lot of things :clap:::clap:::clap::
You're welcome! Hope it helps. Let me know how it works for you :)
 

guidaccio05

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Dec 8, 2019
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Berlin
Interesting - did both ideas pass phase 1?
Yup, both did. One is a bit weaker in the Entry Commandment though. But one idea feeds into another which could be interesting to execute.

At which stage are you in your business?
 
D

Deleted74396

Guest
If your idea fits the best possible answer for each question then you can move on to the next stage. If it doesn't then you can reconsider the idea if it has too many bad answers or just try it anyway to get the experience.

How many is too many? My idea isn't 10x better than the competitor, I'm barely solving a problem, and I couldn't be in the top 2 of the market. I'm also not solving a problem, it's more spontaneous. On the other hand, I have experience with my marketing strategy, offer a different approach, and have a huge audience advantage (mass market).
 

Kid

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How many is too many? My idea isn't 10x better than the competitor, I'm barely solving a problem, and I couldn't be in the top 2 of the market. I'm also not solving a problem, it's more spontaneous. On the other hand, I have experience with my marketing strategy, offer a different approach, and have a huge audience advantage (mass market).
Go for it
 

guidaccio05

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Dec 8, 2019
102
134
130
Berlin
How many is too many? My idea isn't 10x better than the competitor, I'm barely solving a problem, and I couldn't be in the top 2 of the market. I'm also not solving a problem, it's more spontaneous. On the other hand, I have experience with my marketing strategy, offer a different approach, and have a huge audience advantage (mass market).
I think if you have validation that the market wants your solution and you have soft proof, then go for it, even if it is just for the learning experience.
 

JWM

Bronze Contributor
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Read Millionaire Fastlane
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Apr 14, 2018
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Australia
I'm currently in the process of validating two ideas, one being a membership group and another a lead generation business. So, I had to search how to do it and created a two-part method.

Before trying this I would recommend running your idea through the CENTS framework. However, if you want another approach on top of it and the next validation steps then read on.

Phase 1 - 11 Questions to test your idea (inspired by the YouTuber and multi-millionaire Alex Becker):

1. Can I be or am I 10x better than my nearest competitor? (differentiation and value skew)
2. Is it a huge problem that hasn't been solved? (commandment of need)
3. Is it a mass market or a market with deep pockets? (volume or magnitude or both)
4. Is the problem solved (adequately)? (are you going to be just another competitor? see n1)
5. Can I bring a fresh business model? (can you offer a different approach)
6. Do I have a huge traffic advantage? (e.g.: YT ads are underutilized as of now)
7. Do I have a Marketing or Copywriting advantage? (previous experience)
8. Is this a model that can be replicated quickly? (commandment of entry)
9. Can I serve an underserved sub-market? (niche down and specialize)
10. Can I be the #1 or #2 in that market? (dominate and create the CocaCola of your niche)
11. Could I work on this for the next 5 years with no return (assuming that you do not starve)? (are you in it for the value too or just the money)

If your idea fits the best possible answer for each question then you can move on to the next stage. If it doesn't then you can reconsider the idea if it has too many bad answers or just try it anyway to get the experience.

Phase 2 - Validate your idea (this post is a really good start)

Step 1. Run Ads

Spend $100 or 50 to 100 clicks on Google and FB Ads and send the traffic to a landing page with the offer, which in order of relevance is sale > call > email. Try to get one of the three. The closer you get to a sale the more validation you have.

Step 2. Analyze results

If the Ad converts at 1.5%+ CTR it is a good sign.

Good page conversions:
Sale - 1 to 5%
Call - 8 to 15%
Email - 15 to 40%

Step 3. Talk to the customers/subscribers

Understand what they are really trying to solve. Create a questionnaire or book discovery calls with them. DON'T SELL YET.

Step 4. Get your first sale

Tweak your product offering according to the interviews and ask them to buy it at 50% when it releases.

Step 5. Launch

If you can make Ads profitable use them to scale. If not build an email list of your target market and launch it to them when it is ready.
Fantastic post, a lot of questions to ask yourself when starting out.

How do you determine what 10x looks like compared to the nearest competitor? How do you benchmark the competition then quantify the differences you offer? Do you need 10x, or do you only need to do it better than the other guy?
 

guidaccio05

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Dec 8, 2019
102
134
130
Berlin
Fantastic post, a lot of questions to ask yourself when starting out.

How do you determine what 10x looks like compared to the nearest competitor? How do you benchmark the competition then quantify the differences you offer? Do you need 10x, or do you only need to do it better than the other guy?
Thanks! Yes, but I think if you pass the test then it becomes worthwhile to pursue the idea.

I would say that 10x is being better at least 2 or 3 skewing factors by a factor of 2x or 3x. If the problem is already being solved well, you really need a much better solution to convince your market to switch to you.

However, I wouldn't let that stop someone from starting. If you don't know everything about the problem yet it is hard to figure out what is your ultimate competitive advantage in the beginning. That is actually what I'm trying to figure out now.

Feel free to PM me if you want someone to bounce ideas off of for your business.
 

VincentVega24

Contributor
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Nov 26, 2019
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Great thread! Really helped me to get the thought process going!
What if you can't just launch your business because you got a developer working on it? Would securing funds be a good replacement for getting sales as you described?
 

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guidaccio05

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Dec 8, 2019
102
134
130
Berlin
Great thread! Really helped me to get the thought process going!
What if you can't just launch your business because you got a developer working on it? Would securing funds be a good replacement for getting sales as you described?
Nope, getting funds doesn't mean there is market for your solution. I would recommend not skipping the process of validation, even though it is tempting.

If you want to build a software try to get pre-sales to fund it. Here are a couple of videos that may help:
View: https://www.youtube.com/watch?v=AheD18FEFjU

View: https://www.youtube.com/watch?v=AaS7tkgM2n0
 

VincentVega24

Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Nov 26, 2019
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Frankfurt, Germany
Nope, getting funds doesn't mean there is market for your solution. I would recommend not skipping the process of validation, even though it is tempting.

If you want to build a software try to get pre-sales to fund it. Here are a couple of videos that may help:
View: https://www.youtube.com/watch?v=AheD18FEFjU

View: https://www.youtube.com/watch?v=AaS7tkgM2n0
Thanks for linking me, I really appreciate all the value!!
That means getting pre-sales would combine validation and funding right?
 

guidaccio05

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Dec 8, 2019
102
134
130
Berlin
Thanks for linking me, I really appreciate all the value!!
That means getting pre-sales would combine validation and funding right?
Exactly, you get the best of both worlds and a solid base of customers to develop the beta.
 

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