Problems vs. Solutions

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But first…

Problems vs. Solutions

There are problems and there are solutions.

They can be easy to conflate but they are not the same thing.

For example:

Allergies (sneezing, watery eyes) are a problem.
Zyrtec is a solution.

See? Not the same thing.

What Does It Cost You?

Problems and solutions can be inexpensive or expensive.

Here’s the breakdown:

Inexpensive Problems - Some problems are a little irritating, so the sufferer will not pay a lot of money to make them go away. (e.g., sneezing, watery eyes)

Expensive Problems - Some problems are extremely painful, so the sufferer will gladly pay lots of money to make them go away fast. (e.g., heart attack)

Inexpensive Solutions - Some solutions are trivial to provide, so the provider doesn’t have to charge much money to turn a profit. (e.g., tablets)

Expensive Solutions - Some solutions are extremely complex to deliver, so the provider has to charge more money to make it worth their time. (e.g., bypass surgery)

The cool thing is that you can combine problems and solutions in novel ways.

Some problems have more than one solution.
Some solutions solve more than one problem.

If you map out the possible combinations of expensive vs inexpensive problems and solutions, it looks like so:

1. Inexpensive Problem + Inexpensive Solution = low revenue and low profit margins.

2. Inexpensive Problem + Expensive Solution = no revenue.

3. Expensive Problem + Expensive Solution = high revenue but low profit margins.

4. Expensive Problem + Inexpensive Solution = high revenue and high profit margins.

Takeaways

• If you’re selling services, you should aim for Number 4.

• Number 1 is a good choice because it scales well.

• Number 3 is a short term strategy as you’re shifting to 1 and/or 4.

• Avoid Number 2. There should be zero tolerance for no sales.

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Yours,
The Ad Amplifier Team
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