Beyond the Big Idea
You've got a million-dollar idea; now all you need is a strategy to make it marketable. These inventors brought their ideas to life--and hit it big. Find out how they made it happen.
URL:
http://entrepreneur.com/magazine/entrepreneur/2004/october/72624.html
Brilliant ideas don't get shelf space in big retail stores
or airtime on TV shopping channels. They don't have legions of
screaming teens coveting them. They don't have dozens of VCs
writing big checks, nor do they demand a high price on eBay.
The fact is, brilliant ideas are just that-ideas-until they get
turned into salable products. And the difference between an idea
and a salable product is extreme-just ask an inventor who tried and
failed to get his product to market, then ask an inventor who
determined the proper recipe for turning a brilliant idea into a
must-have in the minds of consumers.
"A lot of inventors assume people will flock [to
them]," says Robert Smith, president of Rockton,
Illinois-based Robert Smith & Associates PR, whose
expertise has landed clients' products in the likes of Wal-Mart
and Walgreens, and on home shopping channel QVC. "They find
they're in for a rude awakening. Just because you created the
product doesn't mean people will buy it."
That's something John Abdo learned when he first attempted to bring his
invention, The AB-DOer midsection aerobic machine, to market.
Granted, the odds were against him: In 1999, he was $100,000 in
debt and near bankruptcy, in spite of a successful stint from 1985
to 1997 hosting his own weekly syndicated TV series Training &
Nutrition 2000. Chronic back pain caused by a cracked vertebra
often made it hard for Abdo, 49, to exercise, and in between
tapings of his show, he would frequently gain weight. He invented
The AB-DOer to help him exercise without putting undue stress on
his back.
When Abdo first began seeking interest in The AB-DOer in 1994,
he met with stony-faced VCs who were less than amused by his
unorthodox investor presentation. Clad in workout gear and toting
an "old, funky gym bag" which contained his invention,
the Marina del Rey, California, inventor would say:
"Gentlemen, guess what's in the bag. There's a hundred
million dollars sitting [there].
"Needless to say, they kicked me out every time," he
continues, adding that one such investor had also turned down Tae
Bo the year before. "I wasn't being arrogant; I was just
so confident [in my product]."
Fortunately, one investor happened to be a fan of Abdo's TV
show, which was popular in Chicago at the time. The investor funded
Abdo's product engineering as well as legal costs in exchange
for a percentage of his business. After some success with
self-producing an infomercial (in partnership with marketing and
production companies), in 2001, Abdo was eventually able to secure
a slot on home shopping channel HSN. Acting as his own product
spokesperson, he sold 21,500 units his first day on HSN, for a
grand total of $2.5 million in sales.
"I made sure I was secured as a spokesperson," notes
Abdo. "I nursed the idea and gave birth to it, and I'm a
living testimonial to it." Continued sales and success on HSN
brought first-year sales to $22 million. Abdo's current sales
volume? He's now sold nearly 3 million units of The AB-DOer to
date, and sales have surpassed $320 million.
If you think you may have a winning product like The AB-DOer on
your hands, you'll want to know how to get it into the right
hands. Abdo advises new inventors to study the process of bringing
a product to market, from start to finish. Remember, just having a
good idea doesn't necessarily mean you've got a good
seller.
"You might have a good idea, but [if] it costs hundreds of
dollars to manufacture, or it weighs too much [to be shipped],
it's not a [direct-response] TV product," notes Abdo.
"You have to know your product, how your product is going
where, how to secure your intellectual property, how to teach
people to use your product and teach them in a fun way."
Developing a prototype is one surefire way to determine whether
your product will sell. You can hire someone to do this for you,
but developing it yourself-or at least having a sharp understanding
of how your product is put together-has many benefits. Not only
will you have a better knowledge of how your product works, but
you'll also uncover any glitches in product design. "Build
the best functional prototype you can, not a duct-tape prototype
that you whip together in your garage," says Abdo.
"People only understand what you're showing
them."
Also check in with the U.S. Patent and Trademark Office (USPTO),
an excellent place to begin your self-education. Browse the
USPTO Web site,
and read up on how to obtain patent-pending status, trademarks and
other protections. The USPTO also holds an annual Independent
Inventors Conference with the National Inventors Hall of Fame,
where top USPTO officials, successful inventors and other experts
will advise you on marketing and intellectual property
protection.
Hiring a patent attorney like Abdo did is also a good idea. That
was just one of many steps that Kelsey Wirth, 35, and Zia Chishti,
33, took when first starting Align Technology in midwinter 1997, the year
they were completing their MBAs at Stanford Business School. Using
Chishti's background in computer graphics, and aided by some
Stanford computer graphics majors who ditched their Ph.D. programs
to work for Align, the co-founders created Invisalign, a product
that combines 3-D computer imaging technology with orthodontic
science. The Santa Clara, California, company appeals to adult
consumers who want to straighten their teeth discreetly using the
company's "aligners," a series of removable, clear
plastic orthodontic appliances.
Like Abdo, the Align founders met with initial opposition. They
put together the necessary computer graphics and brought on a local
orthodontist, "but we talked to a dozen VCs, and most of them
were not interested," says Wirth. Finally, big-name Silicon
Valley VC firm Kleiner, Perkins, Caufield & Byers bit. Excited
by the idea, the firm was willing to take a risk. Wirth and Chishti
closed their first round of financing, $3.2 million, in August
1997. They then went on to raise three more rounds as well as go
public in January 2001, raising approximately $260 million
altogether.
The co-founders got patients into clinical studies within six
months of startup and introduced Invisalign in two test markets:
Austin, Texas, and San Diego (the cities where they'd hired two
sales reps with experience in the industry). They then trained
scores of orthodontists nationwide, laying the groundwork for a $30
million national consumer advertising campaign, launched in fall
2000. The partners gambled that if they advertised directly to
adult consumers, the product would be so appealing, orthodontists
would jump on board. "Essentially we had a product that we
knew ultimately would have tremendous consumer appeal," says
Wirth.
What Wirth and Chishti found, however, was that consumers who
asked their orthodontists about it were often told to try braces
first instead. "We hadn't done enough of a job convincing
orthodontists that Invisalign worked," recalls Wirth. "We
had tremendous brand awareness in a very short period of time. But
when it came to getting patients into treatment, we didn't have
the results we had originally hoped for."
They refocused their marketing dollars in 2002 to include
general practice dentists, reaching 120,000 dentists nationwide
(compared to about 8,500 orthodontists), and giving the company the
broad appeal it needed. "There are plenty of GP dentists who
can put braces on," explains Wirth, who estimates the
company's 2004 sales will be $175 million to $180 million, up
from $122.7 million in 2003. Wirth stresses, however, that
she's not sure where the company would be without first going
through the national consumer advertising campaign.
To create consumer awareness of your product, you have several
options, including press releases to editors of trade magazines,
direct mail, classified and display ads, and speaking events and
conferences with you as an expert. If your product is off-the-wall,
try getting on a talk show such as The Oprah Winfrey Show or
The Tonight Show, which occasionally have "gadget"
shows. (For more information, see "Lights,
Camera, Action!" in last month's issue of
Entrepreneur.) "The wackier it is, the better,"
says Smith of showcasing your product on a talk show. Just be
prepared to move your product: "Once your product is shown, it
will hurt you if you're not able to meet the demand."
Being able to meet the demand becomes a much more prominent
issue with any TV exposure you might garner, including home
shopping channels and any type of direct-response TV. But if
you're prepared, TV can be a godsend.
To get yourself on a home shopping channel like HSN, QVC or the
like, watch plenty of home shopping yourself, advises Marilyn
Montross, director of vendor relations for West Chester,
Pennsylvania-based QVC. "And not just products in the same
category as your product, but [also] different kinds of
products," says Montross, whose department fields 16,000
inquiries per year, with 90 percent of them from entrepreneurs. QVC
airs more than 250 new products per week, many of them with an
entrepreneurial story behind them. "Develop an understanding
of the kinds of things that sell on QVC," says Montross, and
on any channel on which you hope to sell, taking a close look at
value, quality and pricing for the products.
Look at the shopping-channel Web sites for information on
submitting your product once it's ready to sell; don't just
drop a prototype in the mail, because "samples would overwhelm
us," says Montross. Instead, send photos or brochures. QVC
also holds an annual product-search tour event, where QVC visits
cities nationwide and holds open casting calls for products.
"But you can submit anytime," says Montross.
You can also follow Abdo's lead and showcase your product on
your own TV show. Says Smith, "Contact your local cable
company, and talk to the program director about local access-"
free, government-sponsored access granted to taxpayers.
"That's a full hour on cable [where] you can talk about
your product," says Smith.
Another cable-TV option is lease access, which, for a small fee,
allows you to get sponsors. "You can show your product and
charge [sponsors] to have product placements," says Smith. Any
profits you make beyond that initial lease-access charge are yours
to keep.
When No Doesn't Mean No
Like Abdo, the Align founders created their product out of
necessity-a commonality among successful inventors. Chishti had
braces as an adult and noticed that every time he removed his
retainer, his teeth would start to shift. "That was the
'aha moment,'" says Wirth, who took a step away from
the business in 2001 to sit on Align's board of directors.
(Chishti is no longer involved with the company.)
Beyond creating their products to meet a need, both Abdo and the
Align founders had the courage to bring a product to market because
they believed in it wholeheartedly. "Have the conviction that
what you're doing is worthwhile," advises Wirth. "You
inevitably run into a number of stumbling blocks along the
way."
"I truly believe in my product and in my technology,"
says Abdo. "Being focused on the future of my product allowed
me to never take no for an answer."
Get Noticed!
Planning to pitch to a home shopping channel? With thousands of
inquiries flooding the channels yearly, getting noticed is a
challenge-but not an insurmountable one. "It's your
product that [will] get you noticed," says Marilyn Montross,
director of vendor relations for West Chester, Pennsylvania-based
QVC.
"Certainly, having a professional, well-put-together
presentation is important; but, first and foremost, we'll be
looking at 'Is this a product that's right for
QVC?'"
Make sure it's a consumer product, not B2B, and one
that's highly demonstrable, "because it's a TV
show," says Montross, so people need to see the benefits.
"Not all products we sell and [that] sell well are like this,
but it's an advantage."
The product should also be something that's unavailable
elsewhere and clearly innovative, says Montross: "Products
that solve a common problem are very appealing to QVC
customers."
The Great Wal
Ready to take your product to mass retailers? Jordan Kavana,
founder and managing director of KGI Consumer
Products-a $15 million Miami-based toy company that sells
directly to mass merchants-says there's no magic formula to get
into a Costco, Target or Wal-Mart, but there are ways to better
your odds.
"First, marketing research is key. [You] cannot fall in
love with an idea until it is somewhat proven by research,"
says Kavana, 26, whose first invention was the SuperStarz Karaoke
Dance Mat, a dance mat/karaoke machine product he brought to market
via Wal-Mart in 2001. "Second, it's important to see your
buyers face to face, more so than by e-mail. Personal contact still
goes a long way."
You should also walk through the mass retailers to see what
they're already selling-or not selling. "Wal-Mart
executives say the biggest problem is [that] people try to sell
something [Wal-Mart] already sells," says Robert Smith,
president of Rockton, Illinois-based Robert Smith & Associates
PR, whose expertise has landed several clients' products in the
likes of Wal-Mart and Walgreens. "Do some grass-roots market
research. What is it about your product that does something their
current products don't do?"
Karen E. Spaeder is a freelance writer in Southern
California.
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