So How Much Should I Budget Upfront for a Product Launch ?

Cost-Volume-Profit diagram, showing break down...

Image via Wikipedia

It’s a good question. You know that doing a product launch will result in result in a massive hike in sales. That’s why you’re here. But as a smart business owner, you also know that defining the upfront costs required to execute your product launch is an essential  first move.

Here are 4 costs that you are certain to encounter…

#1 Hiring a product launch manager to guide you through the process is your first cost. Typically, you’ll have to pay a 5 figure fee. Pre-launch preparation work is extensive. There are no short cuts to a successful launch.

#2 Hiring a Copywriter… Copy writing is a big part of your launch. Even if you have decided not to use a long copy sales letter, there are video scripts, email sequences, PDFs, and much more that require careful scripting. You can prepare some of these in advance but most of it will be done on-the-fly based on the conversation that is going on around your launch. Do not under-estimate the importance or the cost.

#3  Fulfillment… Getting your initial hard copy product produced in advance is essential. Your customers will attach greater value to a product that is delivered digitally and by Federal Express. A combination of printed work books, check lists, special reports and blueprints adds value. Budget for these

#4 Customer Support… These ‘launch angels’ can really get you out of a tight corner in a hurry. Spending the time to train your customer support team and providing them with a bullet proof list of FAQs will certainly pay dividends.

So there are 4 services you should budget for to get yourself launch ready.

However if you are planning a big external product launch there is one more important cost that you should account for

Affiliates and Joint Venture Partners may well want to be paid you have received that deluge of cash you’re expecting to hit your account. Business is business. This is a valid cost of doing that business.

To avoid having to arrange a substantial bridging facility, it is certainly worth considering doing two or three internal launches to your list to create the right level of belief in your bank as well as your merchant account. Giving them time to satisfy themselves that you are as good as your word. And that you are in the habit of over-delivering on your promises is time sell spent.

We live in difficult times. The financial markets are tight. The cost of doing business is not always as easy to finance as we would like. Take a conservative approach to your finances especially when it comes to a big product launch is wise in the extreme.

You have worked hard to build trust in your segment of the market. Spend time making sure that your relationships with the essential financial support services that your business depends on are equally solid and you will have built a substantial launch pad.

Product launch managers are the “secret sauce” behind the most successful online product launches. Do you want some “secret sauce” of your own?

Uncategorized

Share the love...

Rory Ramsden