We think Easy to Assemble - the web series sponsored by IKEA - is the coolest example of branded entertainment we've seen. The second season is out and it's starting to make some waves. Hollywood is taking notice and IKEA Burbank is flooded with tourists looking for Tom Arnold. (That part is not true).

We got to work on this project and we're really excited about it! If you are over - or close to 40 - you should also check out 40 & Bitter. It's brilliant!

AdAge listed Easy To Assemble from IKEA as one of the top 5 branded entertainment deals of 2009! Our team worked directly with IKEA on creative, design, technology, social media, and content strategy for this record breaking campaign with millions of views in just a few months. Watch the show on the site we built ;o)

When we wake up every morning, we drink coffee… and then we get on with it. We develop products - web products mostly.  We love this! In fact, we've found this type of work so challenging and rewarding that we created a Product Development Group within Fabric Interactive. Next to our Social Media Marketing Group, it is our main focus area at Fabric.

For the past two years, entrepreneurs, media, agencies, and brands have come to us with napkin ideas, business plans, or complete Product Development Plans for various consumer products or applications. In some cases, we've found that the expectations for what is possible and realistic outpace the budget and experience of the team we're working with. This means that our first job is to close this gap, provide leadership, and to focus the product development process.

I know many of you are thinking about developing your own web product or already have plans for launching a new business or product line based off an application or website. To help you, I want share our experiences with you. From our experience shelf, here are some of the challenges you're likely to encounter as you blaze down the path of product development:

Initial Product (Version 1.0) does not meet audience needs

Relax. It is highly unlikely that your product will connect with your audience right out of the gate. In fact, it may take 12-months to get the traction needed to meet user acquisition requirements needed for your next investor round. The cost of Product Development over 12 months may be significant and most certainly will match your initial investment.

Product does not deliver clear differential value for core audience

Right. Most web products – advertising or subscriber supported – are unable to fix this problem. In our experience, this comes down to a lack of focus. To win today, you need to focus on one specific audience and one particular unmet need. If you try to do too much for too many audiences, you will likely fail. This is universally true for ventures with limited funding. Again and again, we see small fish trying to compete with big well-funded players without laser focus on brand or audience. You must narrow focus. Then, you can execute brilliantly.

Attracting users to a new brand/product

Starting from zero can be very hard and quite costly. For instance, organic growth (from Google natural search index) will be very slow for 12 months for a new domain in a competitive area. Many co-marketing or traffic partners won’t partner until you have traffic and a tested product – so it can be a chicken and egg problem. For many, the only way to gain traction is to buy traffic in the beginning.

For some new ventures, it may be worth acquiring a blog or two (many are for sale) and grow your product from the established acquired audience. Part of your traffic – and product strategy – may be to build a network of sites all with a slightly different value proposition for your audience(s).

Getting people to use your product

Beyond getting users to your site, the main challenge is to get them to use it. For example, acquiring your first 5,000 users can be a major challenge. For instance, gaining momentum is a major issue for most social networking sites and absolutely critical to all reputation based products. There are no short-cuts really. It’s just hard work.

Unknown Brand and User Generated Content model

It can be difficult and costly to build a new brand where User Generated Content (UGC) is part of the model. Beyond the importance of appearance (design) the main challenge is in the actual UGC itself. It is hard to get people to do stuff. Also, from a management standpoint, even with the best of systems, there is cost in maintaining UGC quality and relevancy. The cost of scaling is – naturally – variable in that you’ll need additional human resources in managing increasing user numbers.

Underestimating Competitors Strengths

Competition is usually much stronger than it may seem. The attention of your audience (what did you say?) is limited and you will have to fight hard to win their trust. For instance, there are many well funded competitors targeting the “new parent” market and acquiring new users from this audience may be difficult for a start-up.

Underestimating the in-house resources required to build and grow a web product

Building and growing a web product is a 120% full-time job. We have seen many start-ups trying to do this on 50% of the founder’s time and they have all failed. The truth is that if you launch a venture part-time, you will likely lack the pace and commitment needed to win. “Oh, once I get this going, I will quit my day job.” To which we say, no you won't, because if you were committed you wouldn't be in your day job. To succeed, it is likely that you’ll need several people full-time for 12+ months. Anything less than that makes for a half-effort and will likely lead to frustration and failure. (Most start-ups take 3 years to build and does not make much money for founders until year 2+. Can you handle that?)

Those are some big challenges, right? Well, it doesn't matter to you, because you're going to do it anyway are you not? You are going all the way. You'll make it happen. Yes, you will. If you just focus and put your mind to it. Let's go!