Minimum Buyable Product
What is a Minimum Buyable Product?
A Minimum Buyable Product (MBP) is a product development strategy that focuses on creating the simplest version of a product that customers are willing to purchase. It's an evolution of the Minimum Viable Product (MVP) concept, emphasizing not just viability but also market readiness and customer willingness to pay.
Synonyms: Minimum Marketable Product, Minimum Sellable Product, Minimum Commercial Product
Why Minimum Buyable Product is Important
The Minimum Buyable Product concept is crucial in product management because it helps teams focus on creating value that customers are actually willing to pay for. Unlike an MVP, which may be used to test hypotheses, an MBP is designed to generate revenue from day one. This approach can help startups and established companies alike to:
- Validate market demand with real purchases
- Generate early revenue to fund further development
- Reduce the risk of over-engineering products
- Accelerate time-to-market for new offerings
How to Develop a Minimum Buyable Product
Creating a Minimum Buyable Product requires a strategic approach:
- Identify core features that solve a specific customer problem
- Ensure the product quality meets customer expectations
- Price the product appropriately for the target market
- Develop a basic but effective marketing and sales strategy
- Set up necessary support and delivery mechanisms
The goal is to create a product that's not just functional, but also attractive enough for customers to purchase.
Examples of Minimum Buyable Products
Several successful products started as MBPs:
- Dropbox: Initially offered basic file synchronization across devices
- Buffer: Began as a simple social media scheduling tool
- Zapier: Started with integrations for just a handful of popular apps
These products had just enough features to be useful and worth paying for, allowing the companies to grow and expand based on real market feedback and revenue.
Frequently Asked Questions
- How is an MBP different from an MVP?: An MBP is designed to be immediately sellable, while an MVP might be used just for testing and feedback.
- When should I use the MBP approach?: Use MBP when you're confident about your product's core value and want to start generating revenue quickly.
- Can established companies use the MBP concept?: Yes, MBP can be useful for established companies launching new products or entering new markets.
- What if my MBP doesn't sell?: If your MBP doesn't sell, it provides valuable market feedback. Use this information to pivot or refine your product strategy.
