Book cover of Free Prize Inside by Seth Godin

Seth Godin

Free Prize Inside

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"What small change can you make today that will yield remarkable benefits tomorrow?" — Seth Godin emphasizes that innovation doesn't have to be monumental to be effective.

1. Rethink the Value of Traditional Advertising

Marketing landscapes have shifted, making traditional advertising less dependable. With the rise of digital media, audiences are constantly bombarded by information. This overload leaves advertising campaigns struggling to stand out in the clutter.

TV commercials, magazine ads, and eye-catching billboards were once driving customer interest. However, consumers now use tools like ad blockers or have simply grown numb to these traditional interventions. Instead of driving sales as they once did, these campaigns often blend into the background noise of modern life.

Businesses must look beyond expensive campaigns and discover smarter ways to appeal to customers. When attention is harder to capture, meaningful and memorable product experiences win over repetitive ads.

Examples

  • People skip TV ads with streaming services like Netflix.
  • Online users scroll past banner ads without noticing them.
  • Ad-free models like podcasts are grabbing bigger audiences.

2. Big Innovations, Big Risks

Large-scale innovations, while appealing, come with significant risks. Companies often assume revolutionary products will guarantee success, but history shows otherwise. Pursuing giant leaps requires enormous resources, and few firms can afford catastrophic failure.

Take Iridium, the telecommunications firm. Bet on a game-changing satellite network, they invested $3 billion – only to declare bankruptcy after the idea failed to attract users. Their ambition outpaced practical returns, leaving the company ruined.

Smaller steps drive safer results. These targeted efforts demand fewer resources, creating space to pivot if something doesn’t work as planned. As Godin notes, simple adjustments instead of moonshots can yield much-needed progress.

Examples

  • Iridium’s satellite communication effort bankrupt the company.
  • The Segway hyped revolutionary mobility but saw dismal adoption.
  • Microsoft’s Windows Phone failed despite substantial investment.

3. Small Innovations Can Deliver Big Rewards

Modest, practical changes are more likely to be profitable and sustainable. These "soft innovations" avoid complex disruptions yet offer standout appeal to customers. They improve the experience without requiring resource-draining overhauls.

Consider the concept of purple ketchup. It's still ketchup, but changing its color made it a novelty people wanted to try. Simple ideas like this grab attention — without reinventing the industry. The appeal lies in addressing needs with a creative twist.

By leaning into minor yet meaningful changes, businesses can hook curiosity while ensuring practicality. These small moves are accessible to organizations of all scales and drive immediate impact.

Examples

  • Heinz’s purple ketchup attracted new interest to a basic product.
  • Fast oil-change services revolutionized automotive maintenance.
  • Creative smartphone pricing plans opened new markets.

4. "Remarkable" Matters More than "Monumental"

For people to talk about your product, it has to be worth discussing. Remarkable doesn't mean grandiose; it means anything that breaks the monotony and sparks curiosity. Small surprising add-ons often give customers a reason to share their experiences.

A great example is the Mexican restaurant at a ski resort. Skiers could already eat there, but the novel offering turned a typical meal into something interesting. Extras that are unrelated to the main product — like a cereal toy — can generate viral interest.

Customers aren’t just buying functionality; they buy the experience and excitement tied to products. A free “prize” enhances this emotional engagement, providing both utility and unexpected joy.

Examples

  • Toys inside kids' cereal boxes boost sales by creating delight.
  • Ski lodges offering unique dining stand out from competitors.
  • Watches that double as style statements sell more than basic designs.

5. Apply "Edgecraft" to Stand Out

Being edgy isn't just about wild experiments. It’s about refining an aspect of what you offer to become truly remarkable. This process, which Godin calls edgecraft, involves embracing your product's unique edges and extending them until they catch attention.

A workforce of security guards in regular uniforms? Forgettable. Guards dressed like The Matrix crew in black trench coats? That creates buzz! By going all-in on one feature, businesses deliver something distinctive and memorable.

Edgecraft requires bold decisions. Giving customers something to talk about positions your offer outside the ordinary. It becomes easier to create a distinct brand identity this way.

Examples

  • A restaurant hires only bodybuilder twins as waitstaff.
  • Security companies revamp guards’ uniforms into dramatic fashion.
  • Fantasy-themed cafes use immersive decor to attract niche crowds.

6. Borrow Great Ideas from Other Industries

When looking for inspiration, stepping outside your industry can spark fresh ideas. Adaptive thinking turns winning approaches elsewhere into a customized formula for your business. Godin encourages finding what works and using it in your context.

For a hardware store, all-you-can-eat concepts from the restaurant industry became inspiration for an event: all-you-can-carry bricks for one price. The underlying concept matured in one market can adapt creatively elsewhere.

This strategy highlights how innovation doesn’t always involve invention. Borrow concepts, tweak them, and make them your own.

Examples

  • A hardware store organizes “all-you-can-carry” promotions.
  • Local coffee shops embrace subscription-style membership models.
  • Banks offer “gamified” savings by learning from video game mechanics.

7. Boundaries Only Exist in Your Mind

Edges can go anywhere your imagination allows. Visibility offers a major edge — think of how massage parlors can move chairs out onto sidewalks among pedestrians. Meanwhile, invisibility offers its own appeal, like transparent braces replacing metallic ones.

Opposites carry value depending on customers’ desires. A store with every motorcycle available thrills shoppers craving variety. At the same time, In-N-Out sticks to an extremely limited menu, benefiting from its simplicity.

Godin reminds us that divergent paths and counterintuitive strategies hold tremendous appeal in modern markets.

Examples

  • Transparent dental braces became a popular alternative to traditional ones.
  • In-N-Out thrives with fewer menu options than competitors.
  • Unique store access, like limited hours, intrigues customers.

8. Resistance Often Comes from Within

Ideas don’t fail because of technical problems; it’s the internal resistance within organizations that often kills them. Skepticism, fear of change, and disagreements stall implementation before innovations gain traction.

Your colleagues may express polite concerns or outright disbelief at proposals. This resistance reflects fear, not logic. Employees may dislike shifting responsibilities or uncertainty surrounding the project.

By diagnosing these reactions and leaning into confidence around your pitch, you can better address resistance and break through organizational slowdowns.

Examples

  • Board members question the worth of new customer experience programs.
  • Resistance arises when managers worry about disrupting workflows.
  • Stockholders express discomfort over unfamiliar investments.

9. Convince Your Team Before Anyone Else

Before you can sell an idea to consumers, you must first convince those within your company. Each stakeholder has distinct motivations. Engineers seek challenges while managers aim to meet business metrics, and sales teams want job security.

Tailoring pitches to these contexts shifts fears into opportunities. For instance, instead of viewing innovation as risky, show how ignoring your idea could worsen existing problems, allowing weaknesses to erode company success over time.

Clear, specific arguments about why change is needed drive alignment across disparate interests.

Examples

  • Acknowledge engineering benefits like solving tough challenges.
  • Emphasize how innovation protects company reputation.
  • Help sales teams see customer retention as tied to new solutions.

Takeaways

  1. Identify and develop a "free prize" for your product—something simple and delightful that customers will talk about.
  2. Use edgecraft to focus on refining one aspect of your offering and pushing it as far as it can go, making it remarkable.
  3. Build internal trust and confidence by showing leadership, addressing fears, and effectively communicating your vision.

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