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Profitable Information Product Creation with Shawn Casey (Part 2)

Rahul Majumdar

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After laying the groundwork for setting up a niche-based Internet business, ‘Be The Legend’ guest Shawn Casey presented the webinar audience with the next phase. . .

The Case for Information Products.

The strongest arguments in favor of creating your information product business, as practiced by Casey and others include:

  1. No physical inventory.
  2. Very high profit margins (85-100% for e-books, teleseminars, home study courses, workshops, etc. )
  3. Ability to command higher prices and fees as your reputation grows; earning potential unrelated to physical distribution systems for goods.
  4. Allows you to tightly control, target prospects and customers. Getting the first sale will always be the toughest, but by nurturing “win-win"
    relationships, you will build an army of repeat buyers.
  5. Low refund rate for digital products. Software is more glamorous, but involves many administrative and technical headaches.

Outsourcing and Joint Venture (JV) Opportunities.

Outsourcing, when done properly, can significantly reduce your personal workload and allow you to
focus on the strategic planning and management of your business. Almost anything can be outsourced,
including the creation of your e-books.

Finding joint venture (JV) partners or alliances may be considered “high-level" outsourcing, since you
are leveraging the expertise of an experienced marketer to avoiding learning - and doing - everything
on your own.

Resale Rights and Back-End Marketing.

Owning resale rights to existing works is another alternative to original info-product creation. Done properly, it can supercharge an online marketer's earnings. Imagine - own all the rights, keep all the sales. However, it can get very confusing for even the most experienced marketer let alone “newbies". Private Label Rights (PLR), resale rights, master resale rights, branding rights, etc. Seek competent legal advice if you want to obtain such rights, because laws are different all over the world and you definitely want to avoid being sued for copyright infringements.

Your first (front-end) product is usually a “loss leader". It generates low profits, but that's OK, since its main purpose is to get your marketing “foot in the door". Front-end product marketing is the short-term sacrifice you make in order to acquire customers. The heart of your Internet marketing success will lie in your back-end offers; i. e. , everything you get to sell after acquiring a customer, provided it is related to your target market's wants. Hitting the customer “sweet spot" with regularity is how beginners evolve into experts.

On Your Marks, Get Set, Go!

Shawn Casey's start-up suggestion? Create a content-rich, "How to" e-book for a hot target market, because there will always be a demand for topical, relevant information that provides a plan of action. Business success is measured by the Lifetime Customer Value (LVC) of each person who spends time on your subscriber list and sales funnel. LVC is measured by factors like:

  • Transactional frequency, i. e. the number of repeat purchases.
  • Direct referrals from each customer.
  • Bundles sold.
  • Sequential purchases made.

Read Part 3 of this information product trilogy to learn:

  • Shawn Casey's Internet Marketing Cheat Sheet.
  • The Power of Joint Ventures.
  • A Beginner's Greatest Challenge.
  • and much, MUCH, more. . .

Rahul Majumdar is a full-time Information Marketing Specialist focused on teleseminar reporting, list-building techniques, and information product creation.

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