One of the most profitable business models online is information products. Even though Kindle Publishing involves selling information products (ebooks) it’s a little bit different than launching your own infoproduct.
When we talk about information products we are usually talking about digital products like video, audio or software. This can be anything from video training on how to improve your golf swing to an MP3 song. Information products can also be physical like a CD or DVD but in that case the customer doesn’t get instant access to the product. With digital products they are redirected after checkout to the download page or a members area where they can instantly consume the information they just purchased. With physical information products you have to wait for them to be delivered to your home.
Compared to Kindle Publishing where you are more constricted to their Amazon eco-system, their terms, their cut of the profits and so on, you have more freedom launching your own information product. Usually the profit margins are way higher with your own product.
I would say that the top benefit of doing your own information product is that your are building your business for the long-term. Compared to affiliate marketing where you are sending traffic (your customers) to someone else’s offer. In that case he is giving you a commission but he is getting the customer (the e-mail) not you. So even though affiliate marketing can be an easy way of making money it’s a strategy to build up your business long-term.
When doing your own information product you are getting other affiliates to drive traffic to your offer and building your brand and customer base. You are giving a portion of the profits but in return you are getting an asset and long-term customer and that you can market to again.
The downside to creating your own information product is that it has a quite a big starting barrier meaning that it is not newbie friendly and the startup cost can be quite high. It took me 6 months getting my first information product together and probably about a year before I knew all the ins and outs of doing a product launch as there are many things to consider when launching one.
There are many things you have to get together like web pages, sales copy, graphics, payment processor integration, members area payment integration, autoresponder integration to be able to stay in contact with your customers, support program and promotion and marketing to your product. So the learning curve is very steep for beginners as it involves so many elements that you have to learn to be able to successfully launch an information product.
In my opinion it’s better to get started with Kindle publishing, blogging or a YouTube channel. Get comfortable with learning stuff like making a WordPress site, FTP, outsourcing and content creation before going into an information product launch. Then when you do decide to create your own product you have extensive knowledge on the framework needed to accomplish that.
The conclusion is that information product launches are extremely profitable and should be one of the core elements in your online business later on even though I don’t recommend starting out with one.
Hafsteinn Thordarson / Next Step Freedom