Target niches with heavy physical product spending to validate software opportunity
When people are already spending significant money on physical products to solve a problem (e.g., skincare, supplements, fitness equipment), it signals strong willingness to pay and indicates opportunity for software solutions. Physical product monetization proves the market cares enough about the problem to open their wallets, reducing the risk of building software in that space.
When to use
When evaluating market opportunities and trying to find product-market fit. Look for categories where physical products are thriving, then build digital alternatives that deliver similar outcomes more efficiently.
Don't do this
Building software for problems where people aren't currently spending money in any form, or targeting markets where existing solutions are all free/freemium with no proven monetization.
1 Founder Who Did This
Noticed people spending heavily on skincare, hair care, and Gua Sha tools to become more attractive - physical product monetization signaled strong willingness to pay