Market validation is a process that can take weeks or even months to complete. But I know you want to test drive it out as quickly as possible. Recently I came across a great article written by Justin Mares about how to do a very quick market validation, a process which he calls 80/20, because it’s a process that can be done with under $100 and in less than a week.
Are There Enough People to Buy Your Product?
Now market validation always starts with the same question: are there enough people potentially to buy my product? Is the customer base large enough? Well here, we’re going to try to answer that very quickly, by using a free online tool called Google trends. So if you go to Google.com/trends you can search for search terms in real time. This will allow you see how many people are searching for specific terms on the Google platform. So pull up Google trends and start searching for words relating to the idea that you want to test out. This will give you a good approximation of how many people are in your potential market very quickly. Ideally, you’ll be looking for trendlines that are streaming upward with higher degrees of relevance.
Will People Pay Enough for Your Product?
After you answer the question of whether or not there are not people in your target market, the next question you have to answer is will people pay enough to sustain a business. Forget about how much it’s going to cost to create the product, you want to know what’s the maximum amount that people will pay for your potential product or service. And there’s a really quick and easy way to do this. Using three tools very low price points, you can find out whether people are willing to pay a price high enough to sustain your potential business.
The first tool that I’ll talk about is called Unbounce. To create a one-page landing page website is very easy with Unbounce. Simply go to their website, sign up for their service, choose your plan, and for under $25 you’ll have a website up and running.
The second thing you’ll need to start thinking about is your branding. Don’t get overwhelmed with thinking about your logo, you want something clear, pristine, and quick. A great service is fiverr.com. You can go online and get a logo done for five dollars or less, and put it up on that Unbounce landing page. Very quickly you have a professional looking website, and nobody knows how big you are or what stage you’re at in your product development.
And finally, the last thing you want to do is install some sort of payment mechanism. PayPal is a pretty quick and efficient way to do this, and you’ll get to see people are willing to actually purchase your product.
Drive Customers to Your Website
After this stage is complete, we need to drive people to the site quickly and cheaply. Now I know everybody wants to focus around Google and Google ads, but instead let’s use Bing. Bing is a cheaper alternative, and the conversion rates stay consistent across both platforms. By creating a Bing ad account, you can quickly test out ads for under $25 a day. What you want to pay attention to is conversion percentages from the amount of people clicking on your ads to actually buying your product. Obviously the last step is fulfillment. After people have paid you, they’re expecting a product. But with this quick 80/20 market validation, simply write them an email and explain that you don’t have the product just yet and refund them their money. No harm, no loss. And you’ve found out that people are willing to pay a price for your product. So just like that, in under a week with under a hundred dollars, you’ve found out with your business idea is worth pursuing.