Advanced/ Digest...
Coin’s pre-existence sales push the concept of minimum viable product (MVP) even further. When Eric Reis was popularizing the concept of an MVP, the guiding principle was to build and release a product with as few features as possible, and then use the market’s reaction to gauge how to refine the product. Coin has managed to test the market without ever actually releasing the physical product.
Research led by Jennifer Muller has shown that, at least subconsciously, humans have a hard time seeing past the newness of something to recognize its usefulness. Coming up short in the mind of the consumer is one reason for the overwhelming rate of failures in product launches.
Exactly what causes a new product’s success or failure in the market is still widely speculated. New product launches are always a gamble, and strategy isn’t about perfection. It’s about increasing your odds of winning. Until we find out how to guarantee market adoption ahead of time, Coin’s strategy of selling the product before it really exists looks like an effective way to stack the deck with minimum losses and maximize possible gains.
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Yet another reason to use crowdfunding, besides funding your project or funding a product within corporate walls.