Selling Information Products Online
With information products, you don't have the hassles of traditional businesses like overhead, inventory, employees, being confined to a single location, etc.
Products are almost exclusively delivered electronically and automatically. Payments and invoicing are automatically handled by your shopping cart and payment gateway. You can process one order per day just as easily as one thousand transactions.
Basically, you create the product once then only have to focus on marketing and driving website traffic. Every other part of the business is completely automated.
Information product sales can be broken into two categories.
Downloadable Material: The most common downloadable material is an ebook. They range in price anywhere from $3.99 to $49.00 and up ($3.99 is a common price for an ebook on Amazon while an ebook sold directly on your website that covers a very specialized topic could sell for a much higher price point). Other downloadable material can include audio (MP3), video (MP4) and worksheets. The higher priced courses often include a combination of pdf and audio/video files. Because these products are delivered digitally and there are no costs involved you get very high-profit margins on these types of products.
Membership Sites: These range from online access to newspapers/magazine to full-blown training sites with video, audio, and interactive forums all behind a membership gateway. These often bill monthly or annual membership fees. Sometimes they are set to automatically deliver a set amount of content to each new member - like course lessons - over a set period of time. The goal of this “drip” method is to avoid overwhelming new subscribers with too much content and to keep them paying for a longer period of time. Having a membership site where members are charged monthly is a good way to get stable, recurring revenue into your online business.
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