How Can An Entrepreneur Generate Legitimacy
Success Quarterly is a tech and business blog that focuses on the intersection of Silicon Valley and Hollywood, including technology, business, mobile, entertainment, media, and related topics.
When first starting a company, the only way to attract customers is through word-of-mouth. Those early customers spread the word about your company and get others to join you.
They help you get to a point where you are worth investing in, and they are the driving force behind your company's success.
Unfortunately, word-of-mouth doesn't always equal good word-of-mouth, and this is especially true when it comes to crowdfunding. The people in your early stage network aren't necessarily going to tell their friends or even their family that you are offering your product.
Even if you have a really great product or service, there will be a lot of people who will want to try it but they won't buy from you because they aren't comfortable.
The first way to find legitimacy in your product and market is to generate reviews from your customers, users, and supporters
Reviews and testimonials are good indicators that people are taking something from your product that you didn't build yourself. In the first two cases, you want to see someone giving it an average rating of 4 or higher, and in the third case you want at least a 5.
For Amazon, a 4 or higher is not good enough. The most important thing is to get a 5 star rating.
With reviews, there's also a general formula you can use to assess reviews. This is a pretty complicated formula that you will want to modify depending on how your product or service is unique.
For example, you can use the Amazon FBA formula. Basically, you use this formula to look at Amazon ratings (5 stars or more) on your product category and other items in the same product category.
You compare this to the total number of ratings in the same product category, and you decide how many stars your product has. You use this number to then figure out how many stars your product should have and apply this to your product listing on Amazon.
In essence, you are looking for a majority of 5 star reviews, but there is also a great deal of variability in a product. You will want to know what is really going to make a difference in terms of generating reviews.
A really great product that is 1 star to 5 stars can still do well, but it doesn't matter how much work and effort you put into a product that isn't doing well.
How does authenticity influence reviewing?
To understand how authenticity affects reviews, you need to understand how customers and others evaluate authenticity.
If you are trying to sell your product in a traditional setting like a retail store or on eBay, you can try to become as authentic as possible.
You can do research to figure out what other products are in the same niche, or you can even develop your own. For example, you can take your product and sell it online.
At this point, you are trying to be authentic, but you aren't necessarily trying to be authentic to the online audience or to your community of supporters.
Think of it like this: Everyone is trying to be authentic, but nobody wants to be fake. For example, at the beginning of my branding process, I found myself writing and rewriting this sentence over and over again: "I am a blogger." I was trying so hard to make it real, to make it sound natural.
I didn't want to come across as someone trying to get into business and I wasn't doing this to be a rock star. I was trying to build something authentic that would have real results for people.
This is why authenticity matters. You can use it as a signal to validate your product.
Are most of your reviews 4 stars or more?
If the average rating is higher than a 4 or higher, then you know you need to improve your product. If most reviews are between 2 and 4, then you need to make a better effort in selling the product.
To summarize, the benefits of using authenticity in marketing and selling your product and service are:
- Tell your story and show the results of your hard work.
- Buy into your product because it has real value, and the product will generate results.
- Get results quickly, and it will make a difference in your success or failure.
Does it matter if my product sells out?
A lot of people think that when a product sells out, then it is not authentic. In reality, it is not important if your product sells out; the important thing is to do the work that you should have done to start with.
The problem is that when you can only sell a few units at a time, then you lose the opportunity to validate your product and get reviews.
If you want to market a new product or service, the way you should go about doing it is the same way you would market any new product or service. If you have any doubt, then put the work in.
You need to be committed to the work that you are doing. This is why it is important to treat your customers like people who have your best interest at heart.
As you can see, there are many benefits of being authentic. You have to put in the work, and if you don't put in the work, you can't expect to see the results.