Business Lessons from Free Prize Inside by Seth Godin

On June 22, 2010 By bookguide Topic: Greatbooks, Seth godin, Book summary

This quick guide is from the Great Books Series. Also see The Success Manual  - Encyclopedia of Advice, which contains summaries of 100+ Most useful books.

1. Seth Godin says to grow, most organizations traditionally focus on two reliable ways to accomplish that growth: big ads and big innovation.
2. Big ads are a problem because advertising doesn’t work like it used to. Many ads are underwater, costing more than they generate.
3. Big innovation is a problem too. R&D is too expensive, the glut of technology and patents and noise makes it harder than ever to predict and then successfully execute the next big thing.
4. Fortunately, there’s a third way. Soft innovations. The clever, insightful, useful small ideas that just about anyone in an organization can think up. Soft innovations can make your product into a Purple Cow (remarkable thing), they can make it remarkable. They do this by solving a problem
5. That’s peripheral to what your product is ostensibly about. It’s a second reason to buy the thing, and perhaps a first reason to talk about it. It may seem like a gimmick, but soon, what seems like a gimmick becomes an essential element in your product or service.
6. Seth calls this sort of innovation (when it succeeds) a Free Prize, because the revenue associated with it is far greater than the cost of implementing it.
7. Finding a Free Prize isn’t the difficult part. The difficult part is getting the rest of the organization to embrace it. The only way that can possibly occur is if someone becomes a champion for the idea.
8. Championing an idea is essential, but no one ever taught us how to do it. By adopting the posture of the champion and following in the path of those that have successfully done it in the past, you can learn how to make something happen.
9. Every champion has her own range. It’s a mistake to try to champion much beyond your reach. Picking a Free Prize that you can actually execute is much smarter than picking the ‘best’ Free Prize.
10. Finding the Free Prize doesn’t involve brainstorming. Instead, use Edgecraft. Edgecraft is an iterative process that is much easier for an organization to embrace than brainstorming.
11. There are hundreds of available edges, things you can add to, subtract from or do to your product or service. Find an edge and go all the way to it. Going partway is time-consuming and expensive—and it doesn’t work very well.
12. Going all the way to the edge is the only way to jolt the user into noticing what you’ve done. If they notice you, they’re one step closer to talking about you.
13. It’s all marketing now. The organizations that win will be the ones that realize that all they do is create things worth talking about.


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