The basic premise of the book Moneyball, by Michael Lewis, is about identifying and taking advantage of undervalued assets.
Traditionally, the game of baseball has put great value on power and speed. That makes sense because that’s where the excitement is.
However, statistical analysis came to suggest that numbers like home runs and stolen bases were greatly overrated. That’s because they tend to also correlate with the worst type of outs – strikeouts and being caught stealing. Those type outs rarely move base-runners forward.
In contrast “boring” players who hit singles or get walks, according to Moneyball, are more valuable. These players get on base, and equally important they don’t make outs. When they do make outs those outs tend to still advance base-runners.
The idea was theoretical until it added up to a lot of wins by a team with a very low payroll; a team made up of cast-off players other teams didn’t view as valuable.
If you’re not a baseball fan this may make no sense to you – but there’s an important lesson here that should transform your business.
Moneyball and Product Creation
Big product launches are like home runs; but they also come with strikeouts – a lot of strikeouts. If you’ve spent months preparing to swing at the fences, then you know how devastating this type of out can be.
The Fast Path to Cash was inspired, in large part, by this Moneyball approach. Instead of swinging for the fences, and enduring the worst kind of outs, it’s a smarter strategy to get on base and not make outs.
For marketers, “getting on base” means spending as little time as possible creating a product and getting it ready for sale. You generate sales much sooner, you build lists, and when an “out” occurs it’s a setback that causes minimal damage.
With the Moneyball approach the low-budget Oakland A’s were able to compete with teams with significantly more assets.
And with this same approach you too can get in the game, and with a string of base hits and walks, begin to compete with “the gurus” in almost any market.