Many have asked me, “Mike, why have so many dotcoms crashed when they were unique?” They explain, “You preach that being unique is a prerequisite for being successful — but if these companies were unique, why did they fail?” Good question.
Of course, there are many variables, here. From poorly managed funds to untested and unproven business models, I also believe that many dotcoms have fallen because they *were* unique.
Let me backup a little.
I’ve mentioned many times in this editorial that you need to stand out like a sore thumb (e.g., niche marketing being one example). With so many competitors on the web, if you’re not unique in some way, be it with the product, package, target market or delivery, you’ll just appear like everyone else.
No one will see a benefit in buying from you any greater than your neighbor. (For many people, your website will thus look like one huge blur. Everything will seem repetitious.)
You need to be unique, true. And many dotcoms were. But many of them failed miserably since their business models, which may have been unique, were never tried. Pundits predicted that uniqueness would give firms a winning edge in today’s new “e-conomy.” But they failed for myriad reasons, including the fact that they were only unique in concept, not in practice.
In other words, you need to “do” something unique and not just “be” unique. Simply stated, you need to focus on your target market — i.e., you must offer something unique or something in a unique way — so that it benefits the people you sell to.
Being unique is one thing. Catering to the needs of a specific group of people or businesses is entirely different. I’ve seen many dotcoms that had unique product ideas — ideas that had a lot of potential. But many of them failed to denominate their “uniqueness” in terms that benefited the clients they served.
In short, it’s about value (or specifically, perceived value).
The clich “unique selling proposition” (or USP) may surely be a worn-out platitude, these days. But take a closer look at this phrase. In fact, consider the last word, “proposition,” for a moment. It means exactly what it says — you need to propose (i.e., offer) something in a unique way. You need to bring value to the table … And not just something unique.
Of course, I can have some newfangled, totally unique web widget, supported by an elaborate website that cost millions to erect and enough venture capital to back it up. Of course, I can also successfully pitch my new idea to only those people who will be interested, which are more venture capitalists.
And of course, I can also position my widget for mass-market appeal and deployment, knowing full well that trying to please everybody and make a profit, in a very short amount of time (which is considerably shorter online), is EXTREMELY risky.
But if my unique widget has never been tested in a commercial context, especially if I failed to find out and express not just how different my widget is but why it is different (and how that difference directly benefits my prospect), there will never be enough money in the world to make it successful.
So, forget words like “quality,” “service,” “number one” and especially “unique.” Nobody cares about them. You must focus on what you bring to the table — because that’s what clients, be it people or businesses, are really seeking:
Benefits or results, not products or services. You need to denominate, as specifically and quantifiably as possible, the value your unique idea offers. Let me repeat this, since it is so important: Don’t focus on how unique you are — focus on how your uniqueness directly benefits others.
In the last year alone, I’ve seen many dotcoms that have spent their entire marketing budgets on branding and/or mass-market deployment, without any testing whatsoever or with all their funds set on just one, single revenue-generating activity. So once the economy slowed down (as it has), they went belly-up.
Look at those “unique” business models that have truly become successful … Many began as mere tests: Many flopped and many skyrocketed. But in either case, there were no risks or huge VC funds involved. Those that worked, flourished. It’s like the process of natural selection. (By the way, I urge you to read Evan Schwartz’ book at http://www.digitaldarwinism.com/.)
Take Yahoo!, for example. It was a project put together by a bunch of university grads — originally called “Yet Another Hierarchically Organized Oracle.” Even Amazon’s success was a fluke. Jeff Bezos admitted, in a recent speech to the Harvard Business Review, that Amazon was the result of one big test … Of course, coupled with a lot of research and risk.
Nevertheless, here’s something to think about.
How many visitors enter your website’s home page and leave the moment they hit it? How many visitors apparently “love” your website, and even email or call you to tell you how much they do so, but never seem to buy? Converting browsers into buyers or one-time customers into repeat customers can be a struggle.
Having a unique selling proposition, on the other hand, will enable your visitors to know precisely, in an instant, your value — such as how you are different and not necessarily better than all other choices. It will encourage far more visitors to explore your site, convert more browsers into customers and give your customers a reason to buy from you.
Your USP is that single, unique benefit, appeal or promise that you offer — one that no other competitor offers. Most businesses cannot express the USP of their company, product or service, much less have one to talk about. It should be the one, unique advantage you deliver — be it your marketing, benefit, delivery, price, service, choice or exclusivity.
How do you know if your USP will be successful? The surest way is to first identify a void or niche in the market that you can fill. If a niche exists, it’s obviously because no one has filled it. If you have a product or service that can fill this void, you are half-way there. (If not, find a way to fill it. This is the single, greatest source for new product ideas.)
Second, determine if people want it filled. This is an extremely important step — one that many of the “dotbombs” neglected. Everybody needs, say, pre-arranged funeral services. But not everybody wants them. Therefore, to determine if there is a need to fill such a void, do some research. (You can accomplish this through surveys, market research, newsgroup and discussion lists, etc.)
If there is, then you are in a “unique” position …
Michel Fortin is a direct response copywriter and consultant dedicated to turning sales messages into powerful magnets. Get a free copy of his book, “The 10 Commandments of Power Positioning,” when you subscribe to his free monthly ezine, “The Profit Pill.” See http://SuccessDoctor.com/ now!
