From: gregisenberg
This article explores how to leverage data, trends, and Search Engine Optimization (SEO) to develop successful products, drawing insights from Ashwin, an expert in consumer brands and physical products [00:00:12]. While the focus is often on consumer packaged goods (CPG), many of these principles can be applied to software startups as well [00:00:30].
Evaluating Opportunities with Ahrefs
Ahrefs is a powerful tool primarily used in the SEO world, but it offers invaluable insights for product development by helping to evaluate category demand and trends [00:05:00] [00:05:34].
Understanding Search Volume and Keyword Difficulty
Ahrefs allows users to input any keyword and provides two key metrics:
- Search Volume: A general sense of the monthly search volume on Google for that keyword, term, or brand [00:05:08] [00:05:11].
- Keyword Difficulty (KD): A ranking from 0 to 100 indicating how difficult it is to rank for that term on Google [00:05:17] [00:05:20].
For example, the term “electrolytes” shows good search volume with seasonal trends, peaking in June and July [00:06:05]. However, its keyword difficulty is 88, indicating high competition and making it a near-impossible endeavor to rank organically in the top Google slots [00:06:26] [00:06:29]. This immediately signals a crowded market [00:07:17].
Identifying Global Opportunities
Analyzing global search volume distribution can reveal untapped markets. For instance, if 74% of “electrolytes” searches come from the US, UK, Canada, and Australia, it suggests potential for new brands in non-English speaking countries like Germany, India, or the Philippines, where the trend might still be nascent [00:07:45] [00:08:00]. This approach leverages proven business models in new geographies [00:09:33].
”Gut Checking” Product Ideas
Before developing a product, it’s crucial to “gut check” its demand using Ahrefs [00:12:18]. Many entrepreneurs start with an idea, build it, and only then realize there isn’t sufficient demand or the market is too crowded [00:12:06]. Ahrefs helps to:
- Understand the search volume for a specific category [00:12:23].
- Assess the potential to organically capture demand [00:12:25].
- Identify existing competitors in the space [00:12:29].
The key is to ask “why” behind the data, rather than just observing it [00:12:46]. For example, the explosive growth of CBD in 2019 was due to the 2018 Farm Bill, while its subsequent decline coincided with the rise of Delta 9, a legal THC alternative [00:13:11] [00:13:42]. Understanding such market shifts provides deeper insight.
Market Analysis with Particle
Particle is a tool that allows users to analyze e-commerce brands, providing non-public sales data over time, product categories, and best-selling products [00:15:04] [00:15:15].
It’s useful for:
- Benchmarking Competitors: Understanding sales figures of competitors in a given space [00:15:43].
- De-risking Product Decisions: Identifying top-selling SKUs and flavors. If 90% of a company’s revenue comes from a few core products or flavors (e.g., chocolate and vanilla in supplements), it suggests focusing on those proven successes rather than inventing new, potentially unpopular variations [00:15:49] [00:16:06].
- Trend Exploration: Particle also features a Trend Explorer to observe how product categories are trending up or down [00:16:56].
Similar sales insights can also be gleaned from platforms like TikTok Shop and Amazon, which often display sales figures like “100K bought in the last month” [00:17:38] [00:17:54].
Building a Physical Product Business
While building a physical product business is challenging due to complexities like supply chain, finance, and inventory forecasting [00:19:15] [00:19:40], it offers unique advantages.
The Case for Physical Products
Building a physical product business, especially in a low-stakes or low-risk manner, is an excellent way to become proficient in marketing [00:20:10] [00:20:20]. The consumer product world is at the “bleeding edge” of marketing because it’s exceptionally difficult to capture consumer attention and persuade them to part with their money for a physical good [00:20:28]. This contrasts with B2B software, where convincing a company to purchase a solution that saves time is often easier [00:20:39].
Marketing and Differentiation
In crowded markets, differentiation is key [00:21:55]. For a popular product like magnesium glycinate, simply creating a supplement isn’t enough [00:21:50].
Standing Out
Differentiation can be achieved through:
- Look and Feel / Branding: Many products in a category might look generic or “medical” [00:22:24]. Brands like Moon Juice differentiate with visually striking packaging (e.g., amber jars) [00:22:59]. Similarly, Lemi (Courtney Kardashian’s brand) uses custom bottling, unique caps, and vibrant colors to create a fun, accessible brand positioning, contrasting with unbranded, clinical-looking alternatives [00:23:23] [00:23:43].
- Targeted Audience / Positioning: Brands like Seed differentiate by how they communicate with consumers and the specific audience they target, even if the product is for a broader demographic [00:24:15].
Untapped Markets
Current product design trends often fall into “Millennial Blanding” (minimalist, similar aesthetics) or “Gen Z” (bright, vibrant, saturated) [00:26:43] [00:27:03]. This creates an opportunity to target niche markets that are underserved by these aesthetics. For example, creating highly branded, well-designed products for older adults who also want beautiful products, not just functional ones [00:25:51] [00:26:08]. This demographic often has more disposable income and consumes information from less saturated channels [00:28:09].
Bootstrap Development and AI Tools
Starting a physical product business doesn’t necessarily require a massive upfront investment in agencies.
Resourceful Approaches
- Category-Specific Design Needs: Some categories, like spirits, demand intentional, high-quality design for success, making bootstrapping design harder [00:29:41] [00:30:06]. However, for problem-solution oriented products (e.g., pimple patches like Mighty Patch or Starface), design can be simpler and more budget-friendly [00:30:34].
- Freelance Talent: Platforms like Fiverr and Upwork allow founders to hire independent freelance designers for simple packaging design or landing page setup at a fraction of agency costs [00:30:50].
- Testing Demand: After minimal investment in basic design, founders can run online ads (e.g., Facebook Ads) to gauge demand and drive leads before significant financial commitment [00:31:12].
Leveraging AI in Product and Marketing Development
AI tools like Manis or Midjourney can serve as an “unfair advantage” in the early stages [00:31:30] [00:31:38] [00:38:13].
- Initial Design & Research: AI can generate V1 design concepts and packaging mockups [00:32:37]. For instance, Midjourney can create initial designs, which can then be refined by a freelance designer for a minimal fee ($250) [00:32:41] [00:32:54].
- Market Research: Manis can perform deep research on competitors, analyze product details, and research specific customer needs (e.g., skincare for older adults) [00:37:07]. This can produce comprehensive reports that would otherwise cost tens of thousands of dollars [00:39:30].
Using AI to create SEO-optimized websites and other marketing materials can streamline the initial phases of product launch.
Relentless Research and Point of View
Whether building software or consumer products, being a “relentless researcher” of the category and competition is paramount [00:34:05].
This involves:
- Extensive Reading: Consuming all available information about the category [00:34:24].
- Competitor Analysis: Systematically examining existing brands, their aesthetics, website design, and communication [00:34:27]. This includes understanding their one-sentence takeaway, communicated message, and target audience [00:35:01].
- Direct Customer Engagement: Visiting stores and talking to owners about what’s selling or not [00:35:09]. For software, this means looking at existing software reviews (especially one and two-star complaints) and talking to potential users (e.g., dentists for CRM software) [00:35:53].
This research process develops a robust point of view, preventing reliance on mere hunches when deciding what to build [00:36:20].
Conclusion
The fundamental principle for any venture, whether software or physical products, is to work backward from distribution [00:40:02]. Identify the channels to acquire customers and where you can win, then build the product to fit those channels [00:40:06]. This aligns with the adage: “First-time founders focus on product, second-time founders focus on distribution” [00:40:17]. Often, products that are considered “subpar” can succeed tremendously due to outstanding distribution and operational excellence [00:40:28].