Most people don't know that information products are much more profitable and easier to sell than physical products as there is no stock to hold, no big overheads and no staff worries. However a lot of people still make these basic mistakes...
If you've loved what you've read so far, you'll go bananas over what you are about to learn now. The following seven mistakes are the result of almost 17 years of trial and error and millions of dollars worth of costly mistakes you'll learn to avoid.
Another business owner I know bought a distribution license for a new training program from one of the best sales and marketing trainers in the world… Chet Holmes. Chet had already sold over $25,000,000 worth of his training expertise to over 13,000 small and large companies in the USA. The training came with professionally produced interactive videos with over 800 presentations charts and graphic images, successful ads, faxes, sales letters, telephone scripts… the lot.
It would have taken them at least 8 months and cost at least $500,000 to put this all together starting from scratch.
Instead they took what was already there adapted it for Australian conditions and promptly sold $456,650 worth of these training programs in 15 months
…while having fun and taking plenty of holidays. This is only one product, one person selling it. It proved to me that marketing and paying for something already created is the best way to go.
You must know the cost of your ads, how many people responded, the amount of each promotion. Every promotion
Because it's having the best systems for selling information, that makes you the most money. Things like the right products, the right ads, the follow up letters, the Internet connections, the mailing lists and so on. Burn this into your head… In any type of business.
It is the system that makes you the money- not the product
But that's not to say that good products are not important, because without good products to sell you can't make money either. So, before I go any further, here's a quick checklist as to what makes a great information product.
HOT TOPIC: Potential customers want the product so badly they will respond to any ad that offers it! (this means you don't have to buy expensive ads. Simple, low-costs ads will do!)
HIGH VALUE: The product has such a high perceived value almost any price you charge seems like a bargain! (Customers value the product so highly they are happy and eager to pay your price!)
RIGHT MARKET: The product appeals to people who have money, and who want to spend it now! (If you don't think this is important, try selling something to people who don't have money!)
LOW COST: The product costs you only a fraction of the selling price! (You want a large enough profit so it only takes a few sales to make serious money! Toothpicks are out!)
EASY TO DELIVER: The product is easy to ship, and easy to keep on hand. You shouldn't have to worry about renting a warehouse to store inventory, or worry about how difficult it is to package and ship the product. (You want it to be easy—a “no brainer”. Don't try selling pianos)
LOW SERVICE NEEDS: The product requires little or no support, and is self-sufficient. (You sure don't want to spend days with each customer explaining how to use the information! Don't sell computer software, the support would kill you!!)
AUTO PILOT: You can handle customer orders using an order taking service (When hundreds of phone or internet orders start coming in, you don't want to be the one who has to take all the calls!)
HIGH REPEAT SALES: Your customers call you back to order more. When your customers actually get their hands on your product, you want them to be so impressed with what they received that they'll call you back to order more! (It's six times easier and cheaper to re-sell to an existing customer than to find a new customer. You can double your profit on each sale by having the next product, the back-end, ready for them when they call!)
Pretty good ‘wish-list' for a product isn't it? Yes, that's one of the most important lessons that I learned...
Information Products (intangibles) are much better to sell than physical products (Products you can touch and feel)
Because when I found myself with very little capital, I found it was easier (and a lot less costly) to start a successful business selling information, rather than selling a physical product.
I knew it was time to make some more changes in life and how I did business…
I sat down and for the second time in my life thought about what it was I really wanted out of my life and from my business.
I created a checklist of what I wanted from the perfect business. And in the process, I discovered that what I really wanted, (apart from the money) was…
I also outlined what I didn't want from the business. Or a job pretending to be a business. I didn't want a business where I was under constant pressure because of high overheads.
I didn't want staff hassles, low margins and ever increasing costs. I didn't want to have to sign leases and buy lots of expensive equipment that became obsolete soon after I bought it. And I certainly didn't want a business where I was tied to it 6 or 7 days per week.
If you are looking for a business with high profit and low overheads then look no further. Contact us today!