You’re reading edition #24 of the LaunchBoom Newsletter, which is sent every Tuesday to thousands of product creators.
Last week I announced the launch of my new book, Crowdfunded.
Some of you asked me:
“Why is it $8.71? That’s kind of a strange price.”
Well, $8.71 is the lowest price Amazon would let me choose, which means…
I make $0 per sale.
Don’t believe me?
Check out the backend of Amazon which shows my massive $0.00 royalty from each sale.
Seems like a stupid strategy at first glance, but in full transparency, here’s why I do it.
I want as many creators as possible to read my book.
Having the lowest price helps.
If you read the book, you’ll either decide to (1) launch yourself using the information or (2) launch with LaunchBoom.
Either way it’s a win.
So if you want to grab a copy of Crowdfunded at the lowest price I can possibly make it…
Click this link to see the book
Now back to our usual programming.
Three topics for ya today:
- How to use crowdfunding for building a business (not just launching a product)
- Why 1-star reviews can make great ads.
- Memorable product messaging is always a little absurd.
Enjoy.
Contents
1. Short Story
In 2019, these two creators launched a $53,237 Kickstarter.
In 2023, these two creators launched a $692,303 Kickstarter.
But more importantly, they built a thriving business.
Here’s the 5-step framework they followed:
Meet Alex and Trevor, the founders of Xebec.
As you already know, they’ve had a lot of success with crowdfunding.
But they understand that the power of crowdfunding isn’t just in launching a product.
It’s in building a business.
Way too many crowdfunding campaigns are a flash in the frying pan.
Experiencing quick product launch success followed by quick business failure.
Alex and Trevor used crowdfunding as part of a comprehensive strategy to build their business.
Here’s the 5-step framework they followed:
- Launch hero product
- Scale hero product
- Create complementary products
- Gather feedback
- Launch new hero product
Here’s how it works.
1. Launch hero product.
Back in 2019, they launched their first hero product on Kickstarter.
A “hero” product is a never-before-seen innovative product that will be a primary driver of revenue for a business.
Their hero product was called the Xebec Tri-Screen.
Raising $53,237, they just barely hit their $50,000 goal.
But that was good enough for them.
They had real customers, real revenue, and real validation.
So… they manufactured their product, shipped it to their customers, and transitioned to e-commerce.
2. Scale hero product.
With inventory on hand, they were ready to scale their hero product on e-commerce.
They did not rush to expand their product line.
Again, they focused on their hero product.
And with our help, they scaled to over 7-figures in the first year primarily through Facebook ads.
3. Create complementary products.
With revenue scaled over $1M, it was time to add complementary products.
A “complementary” product isn’t exactly new and innovative, but is meant to be a value-add to the main hero product – allowing you to easily increase your average order value.
Alex and Trevor listened to their customers and sourced complementary products they were asking for.
Here are the four they added to their roster.
4. Gather feedback.
With four complementary products added to their catalog, they focused their efforts on launching a new hero product.
The simplest strategy to launch a new hero product is to improve your old hero product.
Using the feedback from their customers, they identified major upgrades they could make and the idea for the Xebec Snap was born.
5. Launch new hero product.
Using the LaunchBoom system, Alex and Trevor launched their new hero product, the Xebec Snap, on Kickstarter.
In the first 24 hours they raised $287,669.
By the end of their 30 day campaign, they had raised $692,303.
What do they do now?
Well, they repeat the cycle.
- Launch new hero product ✅
- Scale hero product on e-commerce (now they are here)
- Add complementary products
- Gather feedback
- Launch new hero product
Do you want to build a real business like Alex and Trevor?
You can watch Alex’s interview on the Masters of Crowdfunding podcast here:
2. Marketing Tip
Getting a 1-star review sucks, right?
Well, Oatly’s over here turning them into ads.
After growing 93% in revenue, I think they’re working.
3. Favorite Content
All powerful messages are a little absurd.
From Rory Sutherland’s book Alchemy:
“All powerful messages must contain an element of absurdity, illogicality, costliness, disproportion, inefficiency, scarcity, difficulty, or extravagance — because rational behavior and talk, for all their strengths, convey no meaning.”
This is why Oatly’s ad above worked so well.
Learn to launch your product in 5 minutes per week.
Every Tuesday, I send a newsletter just like this one! You can expect to read about my biggest lessons and most-effective strategies to launch a successful crowdfunding campaign. Sign up using the form right below 👇
