The Hidden Cost of Product Overdiversification

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Let me guess:

Your product was growing. Sales were decent. Customers seemed satisfied.

Then you hit a wall.

Suddenly, scaling felt impossible. And instead of obsessing over mastering your core offer, you started adding features, products, or even entirely new business lines.

It felt smart. Diversified. Safer.

But here’s what no one tells you:

Every new product you add when your core isn't exceptional isn't diversification.

It’s a distraction.

Here's how to break the cycle, re-focus, and become unstoppable.

1. The Real Reason Founders Overdiversify

Let me be blunt:

You’re not adding products because it’s strategic. You’re adding products because things got tough.

Here’s the harsh reality:

• Your core product hit resistance.
• You didn’t know how to break through.
• So you chased something new, hoping it would be less difficult.

Imagine you’re playing a video game. Level 3 is easy. Level 4 gets hard. You try a few times, fail, get frustrated, and then you quit and switch games.

No pro gamer does that. They obsess until they master the level. They find resources. They compete, practice, fail, and eventually win.

You have to stop jumping to new games every time it gets tough. Your business isn’t struggling because your product got too hard—it’s struggling because you stopped pushing through the hard.

ACTION: Double-Down Challenge

Pick the most important and tough problem with your current product, which will help you deliver an amazing value proposition to your client:

• Obsess over it for 90 days.
• Solve it ruthlessly.
• Improve until customers love you again.

2. The Fruit Salad Trap (And How It’s Costing You Millions)

Most companies don’t have passionate fans. They have “good enough” customers. Their products? Mediocre. Their solutions? Average.

Why?

Because instead of becoming the best damn mango in the market, they settle for being a fruit salad:

• They mix features
• They chase markets
• They dilute their uniqueness

I fell into this trap myself. At clickOn, we launched a travel agency, a software aggregator, and countless other distractions. They looked good on paper but robbed us of time, focus, and millions in growth.

You don’t scale by diversifying average products. You scale by dominating with ONE incredible product.

ACTION: The "Obsession Test"

Ask your customers:

• What’s the #1 reason you’d recommend us?
• What do you wish we did better?
• What’s one feature you’d actually pay MORE for?

Then obsess over becoming exceptional at that.

3. Olympic Athletes Don't Win by Diversifying. Neither Will You.

Top athletes focus obsessively on ONE discipline. Imagine an Olympic jumper who tries swimming when jumping gets hard. They’ll never win gold.

The athlete who wins is obsessed with incremental improvements. They wake up thinking, “How can I jump 10 cm higher?”

Your business must become the same:

• How can your product improve incrementally every day?
• How can your core feature become undeniably better?

The market rewards the obsessed. Customers become evangelists for extraordinary products.  

ACTION: The 10% Rule

Every month, commit to a 10% improvement in your core offer. Track relentlessly. Stay focused.

4. Why "Good Enough" Is a Dangerous Mindset

The biggest enemy of greatness isn’t failure. It’s comfort.

When your business hits a plateau, it's easy to think, "We're doing fine." But "fine" doesn't create passionate customers or sustainable competitive advantages. "Fine" just makes you vulnerable.

You need to constantly ask yourself:

• Is our product good enough to make customers rave?
• Are we solving our customers' problems better than anyone else?
• If we stopped existing tomorrow, would our customers really miss us?

If the answer isn’t a clear, resounding "YES," you're settling. Settling creates vulnerability. Obsession creates security.

ACTION: The Customer Obsession Audit

Schedule quarterly deep dives into customer feedback:

• Look for patterns.
• Prioritize relentless improvement.
• Make "exceptional" the only acceptable standard.

5. Strategic Simplicity Wins Every Time

Look at Apple. Their product line fits on a small table, yet they dominate the market. How?

Simplicity.

Complexity doesn’t scale well.

Tattoo this on your forehead: SIMPLE SCALES; COMPLEX FAILS.

More products mean more distractions, more resource allocation, more operational chaos, and ultimately slower growth.

You don’t win by spreading thin. You win by being laser-focused on the one thing you do better than anyone else.

ACTION: One-Page Product Focus Plan

Create a one-page document answering:

• What’s our one core product?
• What makes it better than competitors?
• How will we relentlessly improve it?

Make this your north star.

Final Reality Check

Your competition isn’t sleeping. Someone out there is obsessing over becoming the absolute best. If it's not you, you're at risk.

Stop diversifying. Stop distracting. Start dominating your niche.

Ready to focus, scale, and become the market leader?

Join the Waitlist for a Tailored 1:1 Scaling Blueprint Call

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Let’s build one incredible product. Not a portfolio of distractions.

– Ignacio

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