Copyright 2005 Nick James
In my previous article How To Be 100% Sure That Your New Product Is A Winner We have discussed dropping losers.
I hope I have given you the message strongly enough. But the same principle applies to milking winners. When you get a winner in-demand product, it is a license temporarily to print money.
You will have so much of the folding stuff pouring through your letterbox or credit card numbers blocking up your email account… that you will hardly know what to do with it.
https://www.aloeveraproductsshop.eu/
HOWEVER: Every product has a strictly limited life-span. It doesn’t matter how well the product performed in the early weeks, the response will gradually tail-off over a couple of months – year to a point where the product starts losing money. There are two big factors which cause this:
1. Everyone has seen your marketing material (emails, web-pages, direct mail letters, postcards, newspaper ads etc) a hundred times, and those that are going to buy the product, have, in the main, bought it already.
2. You ‘lucked-into’ a mood of the moment. For example, everyone’s suddenly worried about car security at exactly the moment you advertise your steering-wheel lock. This mood will rapidly pass as the population (driven by the media) move on to the next area of worry or concern. (What a terrible cynic I am.).
I have seen people make lots of money on a product, and then hand up to 50% of it back to the newspapers as they attempt to breathe life into a dying market. I have seen a single advert in The Sun take one thousand orders for a £49.95 product. Then, six weeks later (after the product has been heavily advertised), I have seen the identical advert pull in only eighty or so replies (and of course, lose big money). You must listen when the market says it has had enough of your product. Getting out early is a sure-fire way of keeping most of the money you have made.
It’s the same with the stock market. Everyone aims to sell at exactly the peak of the market, and buy at exactly the trough. But, of course in reality, these peaks and troughs are impossible to predict accurately. The stock-market winners sell early, and buy early. The losers sell too late and buy too late – they stay on the roller-coaster too long. They hang on to a rising market out of greed, thinking the market will rise forever.