4 Reasons Why Your Product Makes NO MONEY

Zigmars Rozentals
2 min readJun 27, 2024

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Here are the four major reasons why your product does not make money:

  1. There is no problem in the first place
  2. No value for the customer
  3. Too expensive
  4. Too cheap

Let’s uncover each one:

  1. Not Solving a Significant Problem: Your product isn’t addressing a major problem for your target customer segment. Focus on meeting your customers’ needs, not just their wants. Learn to love your customers’ problems, not your solutions.
  2. Unclear Value Proposition: If customers don’t see clear value in your product, they don’t invest in it. Ensure your product offers significant benefits and solves real and urgent problems. A good product does one of two things: relieves customer pains or creates customer gains. Think about it!
  3. Price is Too High: If a customers feel they are losing money by buying your product, there will be no purchase. Evaluate if your product value justifies the cost. Customers seek obvious wins, and your product’s price should reflect the value they gain.
  4. Price is Too Low: Pricing too low can hurt your brand. Being cheap does not necessarily make things attractive. Choose your market position and set your price accordingly. For example, if Rolls Royce halved their prices, they might see short-term gains, but in the long-term, they would dilute their brand and compete with different market players like Audi and BMW. And when you lower yourself to the cheap league, there is always more intense competition with smaller profit margins.

Ask yourself it that’s what you really want.

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