So you understand the benefits of starting your own Internet business (if not, you should read about why you should start an Internet business first). Maybe you’ve already started moving forward with some business ideas. If you have, that’s great! If you haven’t, don’t worry, you still have time.
Whether you’ve started or not, I want to share what many Internet entrepreneurs and I feel is the best Internet business – and that is, creating information products such as e-books, audio lessons, video lessons, membership websites, online courses, etc.
There are many different kinds of Internet businesses. You can buy and sell products through Ebay, sell products online with a drop shipping business, run a traditional e-commerce website, or create websites and sell ad space on them.
I’ve done them all and have to say that information products are the way to go if you’re looking to get into an Internet business. People are constantly looking for information on the net and continually want to learn. The Internet provides these people with an easy and convenient way to find the information they are searching for. If you have the knowledge, insight, skill, or experience that people are searching for, then this is the perfect opportunity for you to create information products to sell to them.
You might be thinking to yourself that you’re not an expert and you’re not famous, so why would people want to buy anything from you. Don’t underestimate what you know and can turn into a successful information product. It’s much easier than you think to create valuable products based on your skills and to market yourself as an authority. I’ll revisit this particular topic in a separate post because it’s an important one. For now, take my word for it that you have a few products ‘inside of you’ that you could sell and make decent profits from.
What Makes Information Products So Great?
There are 6 reasons that I can quickly think of off the top of my head.
- Quick Profits: If you have valuable information that people are searching for, these people are likely willing to pay good money for your insights because it saves them the time and effort to go through all that you have gone through to know what you know. If you market your product(s) in a way that makes your prospects tick, they will immediately buy your product(s). Also, as you will shortly learn, because information products cost little to create and you can charge a high price, you can be in the black (i.e. profitable) quickly.
- Great Profit Margins: With information products, you aren’t paying to create anything tangible; you aren’t manufacturing a physical product. You might decide to make physical CDs or DVDs, but even if you do, it costs only a few dollars to create CD or DVD products. Your knowledge is an important asset that people are willing to pay top dollar for, especially if what you know is perceived as extremely valuable. As a result, knowing your costs are low and that what you know is in high demand, you can charge any where from $100 to $2,000 for an information product. That is a good range. Some products sell for less, while others a little more. It’s really up to supply and demand. The main point is you can make excellent profit.
- Can Be Created Quickly: Information products can be created in as fast as a couple of hours. Don’t believe me? I’ve taken an hour to record an audio lesson talking about different ways to take nightlife photos. It’s knowledge people were, and still are, looking for. Then, I took another hour to edit the audio–nothing fancy. After two hours, I had a $47 product that I’ve sold to over 300 customers. The audio lesson was a digital download, so once a customer paid for the lesson, they could download the lesson and listen to it on their computers or MP3 players. Pretty amazing!
- Inexpensive: I’ve already hinted to how low cost information product creation can be. It’s completely true. You do no need expensive equipment, websites, or software. In fact, many of the tools you’ll need are free or very low cost. For example, there are many free audio and video recording programs that work very well, and if you’re looking for some higher quality mics or HD video cameras, there are very good products that sell for less than $200! You do not need to spend a lot of money and go through the hassle other entrepreneurs do (i.e. trying to pitch investors and raise money).
- Can Re-use and Re-purpose: With information products, you can rest assured that the products can be sold over and over again without incurring additional costs. Once you create an information product, you can re-use and re-sell it without limits and added costs. Likewise, you can re-purpose your existing information products to create premium products that you can charge more for. For example, if you have an e-book about cooking Italian food, you could create a video and audio version as well, and add a few more lessons. Video and audio products have higher perceived value, so you can charge a higher price and make higher profits.
- Immediate Gratification For Customers: When prospects are looking for information online to help their personal or professional lives, and they find exactly what they are looking for, they normally want that information right then and there. They don’t want to wait days or weeks for products to be shipped. By having digital information products that are available 24 hours a day, 7 days a week through the web, you can ‘close’ your prospects while they are in a buying state-of-mind. Likewise, your prospects will turn into immediately gratified customers because they’re able to get what they want or need instantly. Happy customers mean better business and more money for you.
What do you think? if you are involved in the Internet business, do you agree? If you’re just starting and thinking about creating information products, do you have any questions? Please leave a comment below. I’d love to hear from you.