Here are some things to keep in mind if you intend to make money with information products:
Starting a Business
• Starting any business comes with some risk, and definitely takes work. Fortunately with most information products, the greatest investment is time, not money.
• If you’ve never done this before, expect a learning curve. While it is a fairly simple process, don’t assume you’ll hit the ground running right away. But don’t assume you need web experience to do this either – because you don’t. You may need some help but the good news is that it already exists in many forms.
Choosing Your Niche Market
• The internet is flooded with general information. Your best bet for success is to find a very specific aspect of a topic and try to own that niche. Research the competition – what have they missed? What could you do better? Test-drive their information products – what do you like/dislike and what would you change?
• The fact that you have some competition is usually a good indicator that there is demand in the marketplace for your area of expertise. Finding a complementary but non-competitive topic can sometimes be your best bet because of the potential to joint venture down the road.
• You can definitely generate income by riding the trends of popular topics and creating complementary products. But if you’re looking for sustainable passive income, you’ll want to develop a subject or topic that is predictably going to be of interest to you as well as others for some time.
• Focus on a subject you are passionately interested in and it will be easier to stay motivated. You can tell when someone doesn’t care a great deal about their subject. Enthusiasm is contagious.
• One thing is certain: you must provide a top-notch offering that exceeds its satisfaction guarantee. And you must establish your credibility and expertise before anyone will give you a penny.
• It pays to research the revenue potential of any idea before rushing ahead. The good news is that there are excellent online tools to help you evaluate its current demand. Search engine statistics, trends and popularity indicators are key resources for your market research. There are also newsgroups and online communities you can use to gauge your ability to access the online consumer base. This will help you predict the demand and profit potential of a particular niche, saving you time in the long run.
• The beginning of the end for many businesses is when assumptions and hunches replace actual market research. Charging blindly in the wrong direction with a great idea rarely works. It is crucial that you understand the mindset of your potential customers. The type of information they want, how much to provide, how to present it and how they will find it are all critical points to establish before moving forward. Researching your market is one of the biggest keys to success.
• Analyze the existing competition. How do they operate? How do they generate income? How many people visited their website last month? Where does their online traffic originate? What is their newsletter or ezine like? Can you compete with their offerings? Is the market saturated? What can you do to differentiate yourself? What have they missed? What can you do better?
• You will likely need a simple but professional looking website. It will be your online brochure, demonstrating your expertise and building your credibility. It will also act as a hub from which you can create multiple streams of income 24/7 from anywhere in the world. There are inexpensive options for everyone – including beginners – to easily create an effective website.
• A hot topic nowadays is search engine optimization (SEO). A website that appears on the first page or two of the search engine results will receive a substantial amount of traffic in a popular niche. While it IS critical that your site be found easily online, there are a few tricks and resources which can help considerably. Also, nowadays it is critical that a site be mobile friendly. If you’ve chosen a suitable niche and are providing great content, it shouldn’t be an issue.
Making Money Online
• There is usually a significant delay during the start-up phase before there is any real money coming in the door. For most people, it is definitely NOT a source of fast cash. But the good news is that with the right approach, your business can grow exponentially over time as its online popularity increases.
• If you are successful as an internet entrepreneur, remember that the government doesn’t distinguish between virtual businesses and those that succeed in the world of bricks and mortar. Be a responsible business owner and be proud of your source of income. Hire an accountant and pay your taxes.