When considering the profit potential of books, e-books, reports, teleseminars and other information products, it is important to consider the big picture. There are many online marketers, speakers, authors and business owners who are generating six- and seven-figure incomes with their information products. But the reality is that it is unlikely you can reach this level with a single $20 book or ebook.
To generate big money with information products, it’s best to build a plan with multiple layers of profit opportunity.
Layer #1: Low-Dollar Information Products
E-books, special reports, workbooks, audio recordings and other products that sell for less than $50 are your low-dollar products. Each of these products can attract a new audience to your business and can generate respectable revenues. The more of these products you have, the more income you can potentially earn. But if you want to increase earnings dramatically, consider adding additional layers.
Layer #2: High-Dollar Information Products
Selling a complete program or system is one of the most common ways to generate a high-dollar information product offering. For example, you might bundle several audio recordings along with an e-book or offer a comprehensive video seminar series. Whatever you do, this type of product can be priced from $100 to $10,000, depending on your niche and market demand.
Layer #3: Consulting/Coaching
If you aren’t already offering one-on-one consulting or coaching to your clients, consider the possibilities. Whether providing coaching services to clients or teaching people on how to run a business like yours, there will always be a demand for consulting by experts. Hourly rates can range from $50 to $500 per hour and more.
Layer #4: Training and Seminars
Training classes, seminars and workshops can be conducted in person or online. From one-hour tele-classes and webinars to in-person events that last one or more days, if you can find the audience, the revenues can be fantastic.
For example, if 50 people attend your full-day seminar for $300 each, you would earn $15,000. If you offer those same 50 people a special deal on your product bundle for $400 and only 30% of them buy, you will still make another $6000.
Group coaching also falls in this category. Instead of charging $100 per hour to consult with one client, you could charge several clients $50 or $75 per group coaching session.
Layer #5: Recurring Revenue
One of the most lucrative ways to generate repeat revenue is to set up a membership program. There are dozens of ways to structure these programs. Consider the memberships that you have in trade associations. You pay a monthly, quarterly or yearly fee to take advantage of the member benefits. If you can create a program with benefits that appeal to your target audience, the income potential can be significant.
For example, you could host a monthly online training session, provide regular group coaching services or create a website that offers members valuable tools and resources. Membership fees can range from $10 to $1000 per month, depending on how many benefits you offer and what your market demands.
Recurring revenue can also come from subscriptions to newsletters, magazines, industry reports, software programs, training programs, database access and more.
Building a Plan that Works
There are many factors that go in to building an effective information product strategy. You must define and locate a target audience, be able to fill a need in the marketplace, set yourself apart from the competition and implement an effective marketing strategy. But with proper planning and a carefully laid plan, the rewards can be well worth the effort.
Checklist for Information Product Success
__Publish a book to gain instant credibility in your field and to expand your reach to a broad audience.
__Product and service offerings meet a need in the marketplace.
__Defined target audience who can afford your offerings.
__Sales copy details benefits for buyers and inspires readers to take action.
__Website provides an easy online ordering process.
__A multi-pronged strategy for generating website traffic (pay-per-click, strategic partnerships, search engine optimization, article submissions, advertisements, etc.).
__High-quality products and services. If the quality is missing, you will never be able to leverage valuable repeat business.
__Big picture strategy with both short-term and long-term goals.
__Ongoing marketing strategy to continue building sales.
__Optional and effective: Speaking engagements either in-person or online (podcasts, Internet radio, presentations at trade associations or conferences, etc.).