Order of Magnitude
Chris Sita and David Kim
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Product Offering 1
Why Talk About This?
Don’t get lost in the details.
• Take a look at where your offering fits in
• Take a look at adjacent possibilities
• This is a companion presentation to Craft of
Product Offering 2
Was popularized by Andy Grove of Intel – as ways of
thinking about disruptive technology. Used by Pine and
Gilmore in Experience Economy to illustrate the value
of experience-based offerings.
Product Offering 3
-> make it into ->
-> customize it into ->
10x: Apply to PM Fast Track
Example: Apply the analysis to PM Fast Track, an on-
line and meetup community for product managers.
At each point, what creates the 10x steps?
Product Offering 4
10x: Quantity and Price
To generate $1M in revenues
Note that online channel magically solves a portion of the
quantity relationship, if you have a repeatable product.
Product Offering 5
Offering Price Quantity Revenues
Meetup event (commodity) $ 10 100,000 $ 1,000,000
Day workshop (service) $ 100 10,000 $ 1,000,000
Conference (experience) $ 1,000 1,000 $ 1,000,000
Education (transform) $ 10,000 100 $ 1,000,000
Exercise: What Can You Offer?
Product Offering 6
• If you had to pick one thing you’d like to teach
someone (or build for someone), what would
it be? This is your product.
• Who would you first teach it to? Who would
be your first customer?
• How much would he or she pay for your
Ideas a la Ramit
• Ramit has a cool 2x2
to chart possibilities
• It need not be an
• But, low cost and high
profit would be good
• Make sure it’s you,
though – what can you
do and for whom?
Product Offering 7
Test Fast a la Tim Ferriss
• Watch this video of Tim Ferriss interviewing
• One (of many) key insight is you should give
yourself a constraint of time. If you didn’t have
a year to test your idea – if you had to validate
it by tomorrow, by tonight, within the hour,
what would you do???
Product Offering 8
Test Cheap a la Noah Kagan
• You don’t want to spend a lot of money, don’t
worry about hiring designers or scaling. Just
go out and see if there is a market.
• Noah Kagan talks about how he built the
multi-million dollar AppSumo for $50:
Product Offering 9
Test Right a la Amy Hoy
• Amy Hoy, product guru, talks about going on a
sales safari. The point is to get inside the head
of the customer.
• Click the link to watch her video:
Product Offering 10
Take a Long-Term View
• Remember the craft?
• Start small, dream big
• Time is your friend, not
Product Offering 11
Img source: Wikipedia
Chartres Cathedral – North Rose Window
How is Time Your Friend?
• It does not mean be slow (test fast,
• If you take a craft-based view, then there is an
accelerating return on your investment, not
• Beethoven’s music later in his life was far
better than it was in his youth.
Product Offering 12
Img source: Wikimedia
Tell us, or send us $19 bills via email.
Product Offering 13
Chris Sita David Kim