FA 002 – Products, Services, and Bits

Summary

In our first installment, we discussed finding your passion to know what niche you should be in. In this second installment, Izzy and I cover what form your passion should take — physical products, services or digital products (we call them bits).

Inside this show, you’ll find pros and cons for each type and which one we prefer (I bet you can guess).

Services

  • You can typically start selling your services faster than trying to create and market a product.
  • Usually low start up costs.
  • Unfortunately, still trading your time for income–the hours for dollars dilemma of employment.
  • And if you take a vacation or get sick, you’re not earning any income.

Physical Products

  • The world still runs on physical products. Clothes, electronics and more make up a gigantic global economy.
  • Problems include manufacturing, warehousing, shipping and inventory management.
  • You can use drop shipping or affiliate programs to earn an income without ever having to ship or store a single product.

Digital Products (Bits)

  • No shipping, inventory, warehousing or manufacturing. Woohoo!
  • Can have huge profit margins, allowing you to earn a good living on smaller number of sales.
  • Digital products can take all sorts of forms such as audio, video, text and software.
  • Pricing can be anywhere from $1 to several thousand dollars.
  • Can be sold while sleeping, sick or on vacation.
  • And much, much more…

Enjoy the show,

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Behind-the-Scenes of Our Launch (Video)

We launched Foolish Adventure on Thursday, August 5th, 2010 at 8:06am Pacific Time. I hit “send” in our email software and then pulled out my iPhone to shoot some video. Here’s the result:

A couple things to note:

  • The software we use for real-time stats is Woopra. It’s a fun way to see what’s happening on the website. We’re using the free version of the service. I highly recommend you try it on your website to see what you can learn.
  • I’m hoping that when you see the video, it provides “social proof” that many people are subscribed to the newsletter too, and that you can feel comfortable sharing it. (You’ll likely hear us talk about “social proof” a lot in the future.
  • Big goals are difficult, but sometimes achievable.
  • Launch days are exciting and adrenaline-filled.
  • The best video camera is the one you have with you. I spontaneously shot this (bad looking) video with my iPhone. The quality is lousy, but I’m glad I have it.

Voice Your Questions

We set up a voicemail number to take questions. If you have a question you want us to read and answer on the show, please use this number: +1 (480) 331-4695

You can also ask questions via Twitter. Just use the hashtag #f-a to make it easy for us to find.  Follow us on Twitter: @IzzyVideo and @TimConley.