A hero product is a product that is responsible for a large percentage of a company’s transactions or sales.
A prospective client asked me recently:
“Should we have a hero product?”
My first answer was, “Yes, you should.” But then, I thought about it some more and changed my answer to, “Maybe.”
You see, having a hero product gives a direct selling company both advantages and disadvantages. Let’s examine each of them.
Advantages
Having a hero product makes the purchase decision easier for representatives and customers of direct selling companies, because most people like to purchase direct selling products they are told are popular.
When a purchase decision is easier to make, sales are made more quickly which is good for the sales force and the company.
When a company has a hero product, the company feels secure in knowing that they have a popular product that many people want. In fact, the company’s reputation may become better because of the hero product.
Disadvantages
Some companies with hero products decide to offer few other products for sale. Sometimes the hero product is their only product. Having one or only a few products available may limit the company’s sales, because the number of choices for the customer is limited.
When a hero product is promoted heavily, customers who don’t want that product are more likely to buy nothing than to buy something else.
When a company has one or more hero products, the company feels pressure to make the next products heroes, which is often difficult to do. They may choose not to sell a product, because they think it will not be a hero product!
When new products are introduced by a company with hero products, it is common for the new products to cannibalize the sales of the hero products.
Customers who purchase a hero product may be less likely to buy additional products from the same company.
Should Your Company Have Hero Products?
Clearly, there are reasons to have a hero product and reasons not to have one. After reviewing the pros and cons of having a hero product, my answer has evolved. Here is my new answer:
Companies should have offer hero products if…
- the product has little competition in the market
- the product will be purchased by at least 30% of the people who are shown it
- the product will be purchased again, preferably next month
- the price of the product is at least $50 or the amount spent on the product in each purchase is at least $50
- inexpensive hero products are not good heroes
Companies should not have offer hero products if…
- the product is a commodity that is sold by other companies
- fewer than 30% of those shown the product will buy it
- the product is purchased only once or infrequently
- the price of the product is less than $50 or the amount spent on the product in each each is less than $50
What are your thoughts about hero products?
Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving party plan and network marketing companies across the globe.
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