How to Make More Money from Your Information Products
Supermarkets do it; Amazon does it; experts should do it too – create sales and marketing promotions to maximise profitability. After all the time and effort you’ve put in to create a product based around your expertise, you owe it to yourself to maximise its revenue potential. Yet many experts simply assign a price, sit back and hope for the best. The likelihood is you’re leaving money on the table.
Maximise the profitability of every product you create
- Increase prices. Few experts raise prices for fear of losing customers and revenue. Yet, whilst some customers may indeed drop-off, the reality is that your profitability is likely to increase dramatically. Charging more could be the best business decision you make. After all, your target audience has a pressing problem and are paying for your hard-won expertise – a higher price is justified. In addition, higher prices are just good business – it takes practically the same effort to sell a budget product as it does a higher-priced item.
- Sales promotions. Hosting “2-for-1” sales offers is common amongst information vendors. Not only is it a great way to attract more customers and increase their dollar spend, you also improve your sales margins (since the manufacturing, storage and distribution costs for information products is practically zero). Your primary assets are your expertise and your goodwill; a sale promotion will help you promote the first and increase the latter. In addition, remember to create a promotional campaign to build buzz before you launch your product.
- Promote yourself to your subscribers. This is the whole point of building an email list. Naturally, you need to market to your current subscribers but chances are you have a lot of inactive subscribers on your email list who at some point were interested but eventually forgot about you. Or perhaps you have other lists who would be interested in your offer. Revive the relationships you established then. (Often customers who have not bought from you to date have simply not been presented with the right product yet. This could be the product that changes that). Of course, ideally, this promotion should have been done well in advance. If it’s too late, bear it in mind for future product launches.
- Invest in marketing. Promote your offer using Facebook ads. Create joint ventures with other experts in your industry. Send free review copies to influencers. Participate in interviews and webinars. Offer free bonuses as a lead magnet for your product. Create high-value content related to your product which you can market in the weeks prior to your launch (e.g. send the content to influencers; offer versions of it as a guest post; tweet it; convert it to an infographic and send it to bloggers etc); direct any traffic that generates to your landing page to grow your list of prospective buyers. Repeat this 2-3 more times.
- Improve your offer. In order to make more money from your product, increasing value and setting better sales terms is always an option. For example, adding a new payment method; creating content upgrades; or offering a 20-minute consultation to customers may be the incentive your customer needs to get them over the line. If you sell video content, consider supplying a free transcript. If you sell guides or ebooks, invest in an audio version. Make your content do double-duty or more.
- Build a proven track record and create joint ventures with other experts. This is the holy grail of marketing and monetizing your know-how. If you can persuade other internet marketers to promote your product, you’re on the brink of huge success as you suddenly leverage other audiences and amplify your reach. But it’s not easy. Successful internet marketers are rightfully wary of entering into joint ventures with relative unknowns as their customer goodwill and their reputation is at stake. The only chance you have of succeeding is:
– showing proof of your product’s quality and success, i.e. show hard sales figures
– having a clear marketing strategy and materials in place. Create lead magnets, content upgrades, articles, autoresponder sequences and other tools to make promoting your product easy for your sales partners.
– having a high-price product to promote. The higher the price of your product, the more money the internet marketer can make. Your prospective partner will not be as motivated to sell low-cost items: after they factor in payment processing costs; potential refunds; and a percentage split, they’ll probably conclude it’s not worth their effort.
– having a similar size email list to show credibility. This is not essential in a joint venture but understand that whoever has the list has the negotiation power. If you have a strong list, chances are you can enter a reciprocal arrangement where you can promote their products in return.
– being transparent with your joint venture partners. Try to build goodwill and a spirit of co-operation to achieve a winning outcome for all involved.
It takes time to create successful joint ventures which is why this is listed as a long-term strategy.
- In the first instance, make sure you create products that your audience wants. Nothing else matters. You can be as clever as you want in your marketing strategy but if people don’t want your product you’re flogging a dead horse.
- Charge high prices. Your prospect needs a similar amount of persuasion to part with $37 as they do to part with $337. If they believe your product will solve their problem or deliver the results they want, price is secondary; conversely, if they do not believe, a low price will not change their mind.
- Have a long-term goal in mind of joint venturing with other experts. This means start building your authority, credibility and track record of success today.
- Before you launch your product, have a pre-launch campaign in place. From now on, think of every product you create as comprising two parts: one is the product itself; one is the pre-launch strategy.
- You are in the list-building business. List-building is not a one-off effort. It must be consistent and sustained. Set aside time in your business to create landing pages and lead magnets. Dig your well before you’re thirsty.
- In your business, concentrate on the following:
– generating leads with landing pages and lead magnets
– converting customers into subscribers, customers and fans by having an attitude of service and delivering high-value content in multiple media formats (e.g. video, podcasts, webinars, infographics, ebooks/guides, content upgrades etc). Give more than you take.
– raising prices. We suggest you don’t sell anything less than $300.
– getting customers to buy more from you or buy more frequently using sales promotions and bundles
– cutting costs to boost profit margins.
Any business activity you engage in that does not contribute to the above is a waste of time.