Mindless Diversification

I applaud Seth Godin for his comments about unwise expansion of product offerings (read Seth Godin's valuable business advice). I see companies prematurely expand their offerings thinking they're increasing their opportunities for generation of revenue. Instead, they're just diluting the strength of their brand.

Starbucks selling music in their coffee shops is a wise product expansion because the offerings are complimentary . But when 2nd Wind Exercise Equipment, a very successful retailer, decided to expand their product offerings into pools and spas, the result was  "disastrous" according to CEO Dick Enrico.

Companies contact me all the time hoping to convince me to sell their products or services right next to my training, consulting, and coaching services. I always say "no." I don't know how I can become known as the expert in consumer selling if I also sell business cards on my website (or t-shirts, or rubber stamps, or IT services, or web design, etc.).

My advice is to do what you do, and do it better than anyone else in your market. Become the best. But resist the temptation to mindlessly expand your product offerings just because you see dollar signs.  

Skip Anderson is the Founder and President of Selling to Consumers, a B2C sales training and consulting firm. Subscribe to the free Selling to Consumers Sales Tips Newsletter.