Click Chart to Enlarge.
This chart is the “secret weapon” of a private organization of guys who love to make money. They are called “venture capitalists”. (VC)
This article is all about TIMING. Jumping into the right opportunity at the RIGHT TIME… is where you’ll make the most money.
Venture Capitalists… will loan money to entrepreneurs… IF… IF… IF… the entrepreneur is in the right spot on the curve.
The entrepreneur won’t get a dime of money from these guys before they cross that magic line from the Pioneer Stage into the Growth State. The VC guys won’t lift a finger ‘til then. Too much risk. The entrepreneur will risk his time and money… but not the VC.
Here’s how use and understand the S-Curve chart.
Let’s consider cars using this chart. The automobile was invented in about 1900. And at the beginning… in the PIONEER STAGE… the product (cars, in this case)… is a “toy for the rich”. When the telephone was new… it was a toy for the rich. When computers first came out… it was a toy for the rich. When bottled water first came out… it was a “toy for the rich”.
NOTES ON THE PIONEER STAGE
And in the PIONEER STAGE… it’s not easy to make money. What do “pioneers” get? They get arrows in the back. Many, many car companies from the early days… have gone out of business.
NOTES ON THE GROWTH STAGE
But once the product becomes more popular and the manufacturer figure out better, cheaper ways to make the product… the price comes down a bit… and the product enters THE GROWTH STAGE. More people want it and buy it.
THIS is where you want to jump in. This is where the venture capitalists become interested. This is where they will jump in and loan money to hungry entrepreneur—for a price. This is where the easy profits are.
NOTES ON THE MATURE STAGE
Then… after everyone has the product… it enters into MATURE STAGE… Venture Capitalists exit the market and look for some other opportunity. This is where all the product makers SHOUT—“MY PRICES ARE CHEAPER THAN THEIR PRICES”. THIS is not a good stage for easy profits. The MATURE STAGE.. is also called THE REPLACEMENT STAGE… That means you only buy a new product to REPLACE the old product.
The only way you can make money in the MATURE STAGE… is this… you have to “fracture” the market. That means… you must create a smaller niche. A niche that caters to some smaller group of buyers who will pay the price.
In the car industry… after everyone had a car, say in the 1960s… the car industry “fractured” the market by creating sports cars like corvettes and MGs. It was a smaller market, but it began a new S-Curve.
Then… they created the family van. Then the SUV. Etc.
One way to survive in the MATURE STAGE… is to ride to coattails of another industry or product that is RISING into it’s own GROWTH STAGE.
For example… Apple Computers in the late 80’s early 90’s were struggling. Then the INTERNET hit the “growth stage”… so Apple rode on the coattails of the internet. They changed the name of the MAC to the iMac.
It was the same Mac. But it was a brilliant move. It saved Apple’s butt.
Understanding the S-Curve Can Save You Greif.
In about 2000 I was standing in line at the grocery store chatting with a lady who said she was planning to open a CD music and DVD movie store. I explained to her about the S-Curve and that Napster and iTunes and Netflicks would kill her business before she even started. Better to tap into the S-Curve than fight it.
Everything can be analyzed using this S-Curve.
Let’s say you’re in the furniture business. And you’re selling outdoor patio furniture. Well, every year your patio furniture goes through seasonal s-curve sales. In the summer you can sell it at a higher price because of the DEMAND. In the winter.. you’re thrilled to sell it at any price.
What are the things that effect S-Curves?
Weather—you sell lawn mowers in the summer. And heaters in the winter.
Interest rates—When rates go down, it’s time to refinance. When rates go up, it’s time to save and invest.
New technologies—can it make your efforts easier or will it kill your demand?
S-Curves and Your Marketing Strategies.
At each stage of the S-curve you need marketing strategies that fit within the curve. In the pioneer stage… you need to convince Mr. and Mrs. GotBucks that this is cool and for them.
In the GROWTH stage you need to convince the masses that everyone is doing this…”keep up with the Jones”… and ride on the movement of popularity.
In the MATURE stage… your message is that your prices are cheaper and that you offer service, service, service, .. or convenience.
If you’re still reading this, I’m assuming you’re looking for some money-making opportunity that would be EASY… compared to other things.
And the truth be know, we are all “venture capitalists” to some degree. Sure a VC will INVEST money in some venture… but you and I INVEST our time and energy AND money when you jump into an opportunity.
If that’s true… I have just the thing you JUMP INTO RIGHT NOW.
It’s an opportunity that can LEVERAGE your time and money and energy to give you GOBS OF MONEY in a residual, passive income type of way. What’s it all about?
Just this—It’s a NEW TECHNOLOGY… THAT IS GROWING IN POPULARITY.
Listen. It is a fact that ONLINE VIDEO is in a growth stage right now. And there is a new platform that you can use to promote your business (if you have one)… or use the platform to BE YOUR PERSONAL CASH-FLOW MACHINE.
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Online video is hot. Cisco Systems says that video will soon be 90% of all internet traffic. You don’t have to make video or know anything about it. This video platform is something you can promote… even if you barely know how to click your mouse. It’s great. Go see http://www.powerfulwebinar.net/.
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