Update: I visited Becky at work, the waitress at a restaurant I stopped frequenting shortly after they changed management. It was one of those situations where the manager was there one day, got the bad news, and left within the hour. She said the regulars are not coming in as often and they had to cut back on staff. Seems the new manager reported in for a job and forgot the most important part of any business: the customer.

I felt badly for Becky because this drastically affects her tip income. But I guess the corporate people knew what they were doing. Or did they? The numbers don't lie. Let's return back to respecting the customers.

Feature Article: The Final Verdict: Market Testing

Resource: Standard Rate and Data Service

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Consumers...

They are the lifeblood for your business or company. They form the pool of future prospects and customers. They also give you purpose for doing what you're doing.

In short: they're immensely valuable.

There will always be consumers who are positive, negative or undecided about your message (product, service, belief). It will not benefit you to change their minds or sell them something they don't want. There's little integrity in that.

Your job is to give them all the pertinent information that will lead them to make an informed decision. Some are ready. Some not yet. But when they are, hopefully you'll be the first they will contact.

The Final Verdict: Market Testing

Dear Associate,

We completed an early morning meeting in gorgeous Del Mar, California. Christian invited me for coffee at a local Starbucks about a block from the beach. He had some flyers printed for his upcoming three-hour workshop and wanted to get some feedback before posting them.

He had already given monthly workshops on the Power of the Breath with fewer than a handful of participants at each event. His name is beginning to circulate in the local community and he hopes to build his credibility along with his practice.

The first question I asked him was, "Is there a market for this?"

He seems to think so. He's getting some participants riding on the coattails of an author who gives four-day retreats on breathing.

My next question was, "Do you have product to sell?"

Because he recently started out, he has no products. But he does make a few dollars from promoting the author's books and CDs in his workshop. With a few attendees at $35 a head, then renting the facility with mats and candles—how on earth is he making any money?

I carefully suggested, "Aren't you acting as the funnel to bring in new prospects for the author?"

He agreed. But that's because he hasn't honed his message (or spin) on the breathing techniques yet. He's gaining experience through his workshops.

Do you know what this looks like?

Christian falls into the category of those who want to dabble with a hobby instead of a tried-and-true moneymaking business. This means he will earn a hobby income. And it's okay if that's what he wants. It's not okay if he wants to make a name for himself and earn a substantial income.

One of the first and most important questions you must ask when you're looking at a business opportunity is, "Where's the money in this?" Just because you opened shop doesn't mean customers will show up. Just because you've attended a dozen Internet marketing seminars doesn't guarantee you'll make one dollar on the Internet.

If you are looking to get involved in a business, or deciding if you should invest in a particular product line or thinking about getting a patent for your invention—there is a safer, less expensive way to take away the guesswork: testing. That's right. Research to see if there is a need, want or demand for the product or service first. Not the other way around.

By running market tests, you can save yourself from wasting time and money. Here are some tests you can run immediately:

1) Customer surveys and calls. Simply ask what your customers are looking for. What problems they want solved. And then produce a product or service that addresses or solves those problems.

Also find out what your customers think about your current products or services and inquire if they would be interested in a higher-end, more in-depth experience with you. Then produce the program that serves their wants.

2) Send an e-mail blast. You can do this with your e-zine subscribers and/or joint venture partner's e-zine list. Locate your peers on the Web who have similar customer lists and ask what they want in a new product or program that will solve their problems. Then produce and promote your programs to their list. They get a percentage of the sale without working hard and you get to increase your database with qualified customers.

3) Place a newspaper ad. Preferably an editorial ad showing how your future product, service or program can solve a problem. Then wait to see how many people respond. If there are enough responses to justify producing it, you have a winner.

For a traditional brick-and-mortar business, study the community where you want to open shop. Speak with local business owners, leave customer questionnaires and offer a small gift or enter them into a drawing for filling it out. Do this before signing any papers.

4) Talk with customer service staff and sales people. They are in the front lines dialoguing with consumers and listening to their daily concerns. They know the pulse of their company better than most departments. If product X is not completely satisfying customers, then produce a product Y that will. Sell product Y to that company (which can later be repackaged and sold to other businesses in that industry).

5) Researching demographics and psychographics. Your central library is a rich source of information. There are reference books that list associations, magazine subscription numbers, consumer spending habits, and even the average purchase amount. Ask your friendly librarian for assistance. If available, the Standard Rate and Data Service's direct marketing resource can shortcut your research and give you insider knowledge on niche markets.

Once you've completed your research, you can decide whether to invest in that business venture or not. Avoid going full tilt on a business venture because all your friends tell you it's a good idea. Listen to and research the marketplace—that's how you can avoid a financial disaster.

Warm Regards,

A secret weapon for direct and niche marketers the Standard Rate and Data Service's Direct Marketing List Source gives key information on the demographics and psychographics of existing markets. Shopping for high-ticket diamond purchasers: they have it. Searching for newlyweds: they have it. Visit: SRDS to get started.