is an important one.
You come out with a product. It's great. It sells like crazy. Other marketers
notice. They come out with a similar product but more advanced. More bells
and whistles. And they sell it for less.
You don't have to be a brain surgeon to know what's going to happen.
You now have 3 choices.
1. Make your product better, if it's economically feasible for the money.
2. Cut your prices, if it's economically feasible.
3. Cut your losses and move onto something else.
This is the very reason that I never put all my eggs into one product. It's
Imagine somebody comes out with something better than DLGuard and
sells it for $25. Sam is going to have to do some major scrambling.
Point is, you must always have a contingency plan...even if that plan is
simply to have something else to fall back on.
I could have 1/4 of my product lines wiped out by competition and still
make 6 figures a year, though barely.
When you have to worry that one person can come along and essentially
put you out of business, you have serious problems.
This may be the most important lesson you'll ever learn when creating
products and services.