Diversification: When to Add New Products and When to Go Deeper With Existing Lines
You want to grow revenue. Option 1: Expand into new products (diversification). Option 2: Go deeper with existing products (specialization). These are very different strategies with different economics. This guide helps you choose.
The Trade-Off
Diversification (Add New Products)
Pros: Spreads risk. Opens new customer segments. Revenue growth. Prevents boredom.
Cons: Dilutes focus. Increases complexity. Requires new marketing. Difficult to maintain quality.
Specialization (Deepen Existing Lines)
Pros: Master one thing. Build reputation. Higher margins. Easier quality control. Repeat customers.
Cons: Lower ceiling for growth. Vulnerable to market shifts. Risk of boredom/stagnation.
Reality: Most successful makers specialize. They master one product, build a name, then strategically expand.
When to Add New Products
Add new products when:
✓ Your core product is mature (sells consistently, low churn)
✓ You have 80%+ of production capacity available
✓ You can leverage existing customer base (they want this)
✓ New product has similar profit margin to existing
✓ You can maintain quality for both
Don't diversify just because you're bored. Boredom is solvable. More products + lower quality is not.
Master One Product. Expand Strategically.
TrueCraft tracks profit and margins across your product lines so you know where to invest.
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