How to Make Money Selling Information Products Online
After the internet became a mainstream phenomenon in the late 1990s, it changed life as we know it. Communications, travel, music, government… shopping. Yes, retailers large and small have embraced the Internet as a way sell to customers across the country… and around the world.
E-commerce has grown exponentially over the last decade and shows no signs of slowing down. Consider that 40 percent of the world’s internet users, that’s more than 1 billion people, have shopped online at least once.
And worldwide business-to-consumer online sales were $1.7 trillion in 2015… and that grew to $2.35 trillion at the end of 2016.
Large e-tailers like Amazon and eBay, as well as traditional retailers like Walmart, have embraced the online business model wholeheartedly. But even though they may dominate the industry, that doesn’t mean there isn’t room for small operators like you.
In fact, there’s never been a better time to get involved in selling online as a solo entrepreneur. It’s so much easier to make money with an online business than have a bricks-and-mortar store. The risk, the investment, and time spent is so much smaller.
Along with all this e-commerce activity has grown a whole new way to create and sell products. And it happens to be the easiest, most cost-effective, and oftentimes most profitable way to operate an online business. I’m talking about selling information products.
What Are Digital Information Products?
An information product can come in all sorts of formats, but at its heart a product like this must pass on useful advice to the consumer.
Despite the name, people don’t want simply information. They crave tips and strategies for making their life better. They want guidance. And that’s what the best information products provide, whether it’s a video, an ebook, an audio, a webinar, a membership website…
Keep in mind that in this case, although a CD or DVD or a printed book is technically an information product, we want to focus solely on those products that are delivered electronically, usually via download or some secure membership website.
For example, an ebook in PDF format, a video on a password-protected site, or an audio recording downloaded from your website.
The reason for this is because this way your customers can order products anytime day or night, from anywhere in the world, and get their product instantly, without you being involved in the transaction. It’s money while you sleep. Sure, you will have to handle customer service and keep an eye on sales. But it’s much less hassle than having to keep track and send out orders.
Why You Should Sell Digital Information Products Online
There are several more advantages with digital information products.
They are easy and cheap to create. You can make a digital information product using nothing but your time and mental energy. That’s free when it comes to your investment money-wise. You just need ideas. Then you write your ebook, film your video, record your audio, create your webinar… whatever you plan to do. This also means that if the product doesn’t sell as well as you like, you haven’t sunk any money into the project. That reduces your risk and financial exposure.
It’s virtually free to store them. Because these products are digital, they are simply space on a server, on your computer (make sure to back it up), or on the cloud. For people with physical products, if they're not doing online drop shipping, they have to carry large inventories. That costs money to store and manage all that product if you have a warehouse and have hired a fulfillment house or other provider to oversee it. And don’t even think about doing it at home — you’ll quickly become overwhelmed. Much better to stick with digital in which your products take up basically no space.
At this point, you might be worried. You’re thinking that if you have digital products being sent to customers… what’s to stop them from sending copies to their friends or selling it on their own? Nothing really. But rest assured that 99.9 percent of your customers won’t do this. And for the most part information marketers aren’t too concerned about this issue cannibalizing sales.
How to Find a Profitable Market for Information Products
So how do create your own information products… and make sure they’ll be bestsellers?
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