So what we’re talking about here is the business model for information products. Information products are any collection of content that is, it goes beyond a book and it typically teaches you a system, a strategy and provides a solution to a problem or a business opportunity. And when a person has a unique skill and you’ve been trained and you’re credentialed, there is a greater revenue opportunity for you to do more than just offer a book or an e-book on the Internet. If your knowledge can benefit from being communicated via a “system,” using a collection of audio, video, workbooks and e-books, it lends itself to becoming an information product. Consider the possibility of it being a virtual downloadable series of assets as well as ultimately becoming a tangible product, something that you could ship to someone, like a book with a DVD series.  I recommend that people start with a virtual product and tweak it a lot before they actually turn it into any physical goods. Best is to sell five thousand copies of something before you make a tangible item.

An Active, Not Passive, Revenue Stream

If you’re thinking about becoming an information product marketer, then you would want to consider this set of outcomes. You would be thinking about this not as a passive revenue stream, but as an active revenue stream in that, yes it will be sold while you’re sleeping or on vacation or out in your garden, and it will also take a focused amount of your effort to create a channel of opportunity and revenue for yourself, even with business partners like Personal Life Media. We don’t do it all for you. You have to be pretty committed to doing a lot of work yourself to build a business with an active revenue stream. So what I also want to do in addition to explaining the model to you is to give you some food for thought about whether the work that this would take is really the work you want to do in the world.

Consistent & Extensible Product Ideas

The other thing that’s important is that whatever you create has to be extensible and sustainable. When people create information products about things like social media technologies they have to constantly update them. So creating something that’s a more long-term product that doesn’t need to be constantly updated is the right thing for information products. If you’re in a world where it’s a constantly changing thing, it’s probably better to be a blogger or a consultant. (And I don’t think it’s very easy to make money blogging, in general.)

Bring Others To Completion

The other thing is that creating your own information product is that it should expand your reputation. This should be something, like writing a book, that gives you even more credibility. The other thing that’s really important for Tim and I at PLM is that when we create products we like those products to bring others to completion. We’re very interested in personal and professional growth oriented content that teaches people to be even better than they are today. That’s unique to our professional ethos, but in many ways I think it’s potentially unique to the information product world too. IM’ers trying to solve problems and/or teach people things.  I challenge you to think about how what you know and can offer is unique, solves and problem and is a natural fit for being taught in a multi-modal way —with ebooks, workbooks (exercises/practices), audio and video. That justifies the higher prices of ebooks/information products versus printed books.

The Network Effect

We have been creating groups of people who work together to launch products in a mastermind group so that everyone gets ideas and cross-support from each other. They cross-promote each others products, they get ideas from each other, they cry on each others shoulders, and I typically have in the past linked like-minded IM creators together. When I have 8 people I take through the process simultaneously, we’ll do weekly group calls and I’ll put two-two-two-two teams together and go with strengths and weaknesses or similar product, so that everyone has a partner and you’re not completely alone. So those are some of the things that I think about when I’m talking to someone – would they be a good partner, would they be available to their partner, are they going to be able to be part of an ongoing process, four or five months worth of work to create their content, are they going to have the appetite to be a marketer of their own content after the fact. If they’re thinking they’re going to set it, forget it and it’s just going to sell itself, they won’t be a good partner for us or for themselves.

The Business Model for Information Products

Kevin Wilke of Nitro Marketing has a great concept of a business model for an info marketer. In his Nitro Blueprint product, he says there are four quadrants:  1) a front-end, 2) a continuity program or membership site, 3) the upsell product and 4) the post sell product or service. These different components could be called anything, but I like Kevin’s model and Kevin as a great human being.

Let me give you more detail about these four parts of the Nitro Blueprint model. [Note: The prices ranges I’ve mentioned are just examples – you can charge what ever your competitive market analysis will allow you to demand.]

• The Front End is typically a single eBook. Simple, cheap, high-value. Typically $17-$97.
• The Continuity Program or Membership Site is expanded, educational content that costs more and can be sold as an annual membership fee or a montly recurring charge for access to content that is dripped out over time. Typically $20-$300 a month or an annual fee ranging from $47-$2000.
• Upsell is a home study course or a single product you download to your desktop or a DVD series or similar that is shipped to you. This can range in cost from $47-$5000 or more.
• The Post Sell is often an even larger purchase – a suite of products, events, offline interaction, coaching or similar. Post Sell often includes access directly to the expert.

A lot of people think that if you’re an information product marketer you have an e-book. That’s a myth! What I didn’t realize when I got into the IM business is that the ebook is the loss leader. You create your ebook as the on ramp to your higher priced products —your continuity/membership, upsell and post sell products… You give 50-75% of the revenue generated from your ebook to your affiliates and JV partners to get the leads to upsell into your higher priced products. And if you’re smart, you also give your affiliates or JV partners a revenue share on those upsells too.  A long-term cookie is key to taking care of your partners.

So How Do I Make Money? The Front End

Here is how the business model of information product marketing actually generates income for you. The front-end, lets just take your e-book. You sell it for, yours is $12.95 – you can sell them for any price, even $100 dollars, anywhere in that range, whatever’s appropriate for the market. Business books sell for more than personal books. Professional growth sells for more than personal growth. Making money sells for more, a lot more, than hobbies. So if you were to think about putting your expertise in an e-book as your front-end you’d also want to think about how you could teach others to do it so that they could make money and how you make money and how you run your business. So the first thing you have is a front-end.

Continuity Income

The second thing you have is called continuity income. This is where you actually create a website and you teach people on a monthly or a weekly basis more and more information. You provide more and more value. It can be what’s called a drip system where each week or each month they get a new, you know, bit of content that’s worth $20, $30, $40, $50 dollars, $100, $150, $200 dollars a month, depending on the vertical market. So what you’re actually doing – and this is kind of like a blog. It’s essentially a blog that’s private where you can post audio, video and text and PDF’s and downloads to your customers so that they have access, behind the scenes access, to content that they’re paying you for. You can send out email newsletters to drive them back to this content, you can conduct interviews with other people in your business or people who’ve had success doing what you do, or people who know things about your business that you don’t know so that you can provide that content to them. And you can also have a membership site in this area, in this continuity area, where people join and they talk to each other, not just to you —a forum or maybe like an old school bulletin board kind of thing. So this is a place where they come and they get billed monthly to be part of the experience of being associated with your knowledge.

The Upsell

Then there’s also something called an upsell. Your customers might be paying $20 or $30 dollars a month to have information, but lets just say you have an entire system, like a home study course that teaches them everything. You’d want to move some of the people from your continuity or your membership site into the full tilt boogie stuff that you have, that might cost $300 to $1000, $2000, $3000 dollars depending on what market place you’re in. So that upsell. The idea is that people come in through your front-end, very low priced, and then you convert them as customers primarily through email marketing into your membership site where you teach them things every month, ‘cause sometimes things are so complex that you can’t learn it all at once. Then you can upsell them into an even bigger more comprehensive program.

The Post Sell

And then the final piece of it is this idea that the Kevin Wilke at Nitro Marketing calls a post sell, which is access to you – coaching, workshops, events, webinars. These can be virtual or IRL – In Real Life – or a combination of those things. That is in the $500 to $2500, $5000 dollar range, to have access to you. So what you’re doing is building this big funnel where the front-end, the cheap thing, has lots of people, and as you get down the funnel to the most expensive things, you have a smaller group of people paying more money.

When you think about marketing your product you also have to think about how you’re going to create that funnel and parse your content. How you’re going lay your knowledge into this model is the key to success in information product marketing. (Along with targeting and buying traffic that converts profitably.)

I highly recommend you get the free two part series from Nitro Blueprint here.

Marketing Strategy in Information Products

The best marketing scenario is a combination of SEO (your site for your product optimized so Google can put it in the organic search results), PPC, affordable display advertising, email marketing, social marketing, PR 2.0 outreach, affiliate marketing and working with joint venture partners. The multiplier effect works particularly well in the affiliate and JV world.

You benefit from having all of your affiliates and your joint venture partners promoting it to their lists and on their sites and in their auto-responder series. You want to reach out to other online marketers who are compatible with your product, anybody who’s in the world of your category, whatever it might be, and you can think of 20 different categories where the people who follow them might be interested in following you, the people who learn that stuff might be interested in learning what you teach. And you want them to market your e-book to their followers. And then those followers buy the product and become your leads for upselling into your monthly program or your home study course or your coaching and workshops. And you’re giving away 75 percent of the cost of your e-book, so the $27 dollar e-book is creating value for your affiliates. She makes 75 percent of the fee. It makes it worth it for her. If she knows she’s going to make $25 dollars every time she does get a sale it’s worth it to her. If it’s a $12.95 e-book and she makes $6 bucks, she’s not going to do it. This is how you build your list because the real money comes from the monthly residuals that you get from your continuity system, your membership site and upselling them into the home study courses and having workshops with them.

Using PPC and Affiliate Marketing

The way that an info product marketer sells his products in addition to affiliates is most often through Google Pay Per Click— buying tens of thousands of keyword phrases that are in your area of scope, and having an automated customized ad campaign that goes with that. There are many affiliate and super affiliates who will also market your product for you with PPC, so if you don’t want to do it yourself, you might find others willing to do it for you.

You must also be registered with an affiliate network like ClickBank, Commision Junction, Share A Sale… When you are working with affiliates as part of an affiliate network, anybody can come in and grab your ad banners and your text links, and whenever they put those on their website or send an email out they sell product that’s linked back to them so they make the revenue, it’s all done through links, tagged links that track the clicks and the purchases back to the person that originally found that customer. So you need an affiliate infrastructure system.

At Personal Life Media, we have created our own, private affiliate network called RevShareNow. http://revsharenow.com.  That way, any of our partners can sign up at our network and get their links, banners, email swipe copy and myriad other content assets useful for promoting our products.

JV Partnerships are slightly different than affiliate relationships – often deeper, more integrated.

You might provide unique content for their blogs or you might have a joint venture partner mail out a series of emails to get people to buy your e-book and then give them the revenue. So all of that fills your database with prospects for your higher priced products.

You can also do PR and social influence marketing efforts such as appearing on talk radio and podcasts, you can write e-zine articles, you can blog with links, you can get interviewed by bloggers, you can put out press releases, you can Twitter, you can have a Facebook fan page, you can put images up on Flickr that have your URL on them that link back to your sales page. There are a million ways that you can create a marketing campaign that drives people back to your sales pages.

So when people think about information products, it’s not “Oh, I wrote an e-book and put it up on my website and I don’t even know how to drive traffic to it.” It means you must focus on building out an entire system of content. So what kind of content?

Problem Solution Set Up

Your product line should be oriented toward a problem and solution. What are people searching for on Google? What is their pain point? How can you solve it?

Or another way to look at it is “business opportunity.”

In your world it could be one or the other, and these are the kinds of products that people are creating – Every Other Day Diet,  Sugar Free Diet, How To Get Her Naked, Burn The Fat, Vertical Jump Training, Dirt Cheap Airfare Secrets, Lose Man Boobs – I love that one, so funny. So the idea is that you’re providing a solution in the title of your book. And you’re explaining what that is and it’s a benefit. You’re selling a solution, you’re selling a benefit. Or you’re targeting something very specifically, like Muscle Nerd Fitness. There’s a segment: nerds who want to bulk up.

That’s where you start. Or it could be a 7 Figure Success Formula For The Digital Photographer, or it could be Pay Per Click Mastery Blueprint. So there are the business-side of things too. Start Your Own Dowsing Business and Earn a Six Figure Income.

Platform, Technologies and Infrastructure

So the reason that it’s so hard for people to get into this business and do well is that it’s very technically complex. You have to be able to generate multiple landing pages for your products so that different market segments might come in and read something about your product, and it might be the same product in the back end, but solve different problems for different people. You have to have a really good email database for your auto responders, the emails that automatically are sent out to people. When someone buys your e-book, they should get a series of auto responders that upsell them into your membership program.

We provide a network, a social network, for other information product marketers where all of the people that we publish, all of our experts that we provide all this technical support for, can go into this network and talk to each other.

• We buy some services once and distribute them across all of our products, like the Better Business Bureau logo, so you don’t have to spend $500 dollars a year having a Better Business Bureau logo on your site.
• We have an image library where you can get stock images and not have to pay for them.
• We have our own affiliate network where all of those awesome affiliates and JV partners can go and sign up to become your affiliate and grab links and ad banners right from there that track their sales, so we pay them for you and deliver you a check each month on all your sales.
• We have hosting services, and we also help you secure domain names ‘cause you’ll often want to have multiple domain names for the different parts of your products.
• We also do the Pay Per Click Google AdWords campaigns for you.
• We also make all the ad banners for your affiliates, for your product.
• We have the ability to do audio recording and video recording and editing.
• We have a download locker where your contents go so people can’t come online and steal it in any way.
• And in addition now to PayPal E-Commerce Integration we are building out our own shopping cart that will accept a lot of different merchant capabilities.
• And we also have ad serving capabilities so we can serve ads into other networks and things like that, and into our own network on Personal Life Media where we get about 50,000 visitors a month who are interested in the kind of content that we produce.

We have assembled together the entire technical backend infrastructure, we’ve selected the products and woven them together in a way that works for our experts to use those systems to market their products. Now we handle most of the technical side of generating revenue for your information products.

Mostly what our experts do is the writing – and there’s a lot of writing – and a lot of their own self-promotion. But we provide the structure, the direction, help you figure out what to create, show you how to create it, what the components are, help you produce it, and then put it into this network of places where it needs to live so people can buy it and pay for it and market it and find out about it.

So if you want to either teach people how to learn your expertise or you think that there’s a nice membership site that you have ability to do and webinars that enough people would be willing to pay for then you might have a product line.  You can either teach people to either learn what you know at a personal level or even better use what you can teach them at a professional level to generate revenue.

I hope that helped you understand better the complexities of being in the information product marketing world and how what you can teach might fit into the model that is currently working and always evolving online.

Discover the Self Esteem Secrets That You NEED to Get Ahead At Work… And In Life.

“Essentials of Unshakable Self Confidence: The Ultimate Career Success Guide for Women in the Work Place.”

by Dr. Susan Campbell.

I am planning a special episode of DishyMix with Dr. Susan Campbell on inter-company politics and professional confidence for women managers.

Would you please contribute your question as a comment on this blog so I can ask it on the show?

If you want a shout out/attribution during the show, please make sure you give me your full name, title and company affiliation and permission.

If you’d prefer confidentiality, just email me your question to susan at personallifemedia dot com.  Confidentiality guaranteed.

Here are some sample questions to get you thinking about what your real question might be.

1. What pressures do you experience that you’d like help dealing with? When you answer this, or any of these questions, will you please also include your job title or position?
2. Do you believe that there is sexism or discrimination toward women in your workplace? What is the nature of this?
3. Do you have to deal with  “difficult people” or difficult relationships? How do you deal with these people now?
4. How is your work-life balance? How are you doing at taking care of yourself while taking care of business?
5. Is your physical health an issue for you?  How so?
6. Is your weight an issue for you?
7. Do you see others getting ahead, while you get passed over for promotions, bonuses, or recognition?
8. What, if any, criticism have you received? In what context? How have your performance evaluations from you supervisor been?
9. If your company (or you) had the money to hire an outside consultant, what goal would you want this person to help you achieve?
10. Do you feel any personality conflicts with anyone in your workplace? What is the nature of this conflict or difference?
11. How do people handle their emotions in your workplace? e.g. is there a norm that people should leave their emotions in the parking lot, or do people tend to be more relaxed about sharing disappointments and frustrations with one another?
12. Do you ever get your feelings hurt by things your co-workers or boss say or do? How do you handle this?
13. Do you see your workplace as a pretty healthy environment –or would it be considered dysfunctional? Please elaborate.
14. Do you find yourself thinking about office politics, personal conflicts, and the like after you come home from work?
15. Do you wish you had the courage to speak up about things that need attention or need “fixing?” If so, why do you inhibit yourself?

Listen to this week’s episode of DishyMix with Eileen Gittens, CEO of Blurb about self-publishing.

Are you thinking about authoring a book? Taking your eBook into the tangible world? Creating a book of your poetry or photography? In search of a great fund-raising idea? Or have a great concept for a corporate give-away for your influentials?

Tune in to hear Eileen’s three tips that are counter-intuitive to create a successful book using Blurb’s platform.

And, just for DishyMix listeners, we’re giving away two FREE BLURB BOOKS!

Just post your desire on the DishyMix Fan Page at http://dishymixfan.com. Don’t forget to fan the show while you’re there.

Eileen Gittens, Blurb on Killed Ideas, Self Publishing & Offline as Amplifier

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• Amazon Gives In, Will Sell eBooks On Macmillan’s Terms [Amazon] (gizmodo.com)
• Do you want one of these business books I’ve read? Post your desires at http://dishymixfan.com (blogs.personallifemedia.com)
• Turn Your Blog Into A Book (everything.typepad.com)
• Amazon offers publishers pre-iSlate Kindle bribes (go.theregister.com)
• Become a Kindle author! (heyjude.wordpress.com)
• How to publish your own book online – and make money (guardian.co.uk)
• Personally Publish Self Works with Lulu (crenk.com)
• eBook Distributor Smashwords Buys Online Self-Publisher BookHabit (paidcontent.org)

Just post your desire on the DishyMix Fan Page and make sure to email me your physical address.

I’ll mail it out to you.

The Age of Engage    Denise Shiffman
Boom    Mary Brown & Carol Osborn, Ph.D.
Click    Bill Tancer
Connection Generation    Iggy Pintado
Digital Outlook Report    Razorfish
The Dip    Seth Godin
The Element    Ken Robinson, Ph.D.
The Frugal Millionaires    Jeff Lehman
The Gort Cloud    Richard Seireeni
Groundswell    Charlene Li and Josh Bernoff
Here Comes Everybody    Clay Shirky
Honest Seduction    Scott Brinker, Anna Talerico & Justin Talerico
Ignited    Vince Thompson
The Leap    Bob Schmetterer
Open Brand    Kelly Mooney and Nita Rollins, Ph.D.
Peak    Chip Conley
The Perfection of Marketing    James Connor
Satisfied Customers Tell Three Friends    Pete Blackshaw
Search Engine Optimization    Rebecca Lieb
Stopping Identity Theft    Scott Mitic
Trust Agents    Chris Brogan
Who’s Got Your Back    Keith Ferrazzi
Word of Mouth Marketing    Andy Sernovitz

Thanks for listening to the show!

Simon Van Wyk: Host of Hothouse Interactive Podcasts carried these books back to Sydney during his recent trip to SF.

Simon Van Wyk

Brand Digital Allen P. Adamson
Branding Only Works on Cattle Jonathan Salem Baskin
Click Bill Tancer
Revolutionary Wealth Alvin & Heidi Toffler
Rubies in the Orchard Lynda Resnick
Saddle Up Your Own White Horse Saundra Pelletier

DishyMix episode 72: Simon Van Wyk, Australian Media Expert on “Lessons Learned” from DishyMix Guests: Blogs, Search, Social Media, ROI and Marketing as Conversation

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I met Lesley at a Mastermind event and we hit it off. Once I saw her work, I realized I couldn’t live with anything less. Lesley is a celebrity portrait photographer. She LOVES to connect with people and make them look beautiful.

Lesley and Susan

Since so much of our contact is made online now, it’s more important than ever to have images that reflect who you are and bring out the best in you.

Here are some images from my shoot and photos of Lesley’s studio and of her working with another client.

One Taste

What a disappointing piece of sensational journalism. An amazing group of teachers from OneTaste SF/NY were recently interviewed for Nightline, including Nicole Daedone, the founder. I have been waiting eagerly for the show to air because what they teach is “Orgasmic Meditation.” OMing is a practice that helps women feel more sensation through a stroking technique that OneTaste teaches.

Instead of accurately covering the value of this “massage” practice, ABC lumped OneTaste in with porn movies and eroticism. They completely missed the point of the practice and reverted to crappy, sensational journalism to drive traffic to this web page.

http://abcnews.go.com/Business/Story?id=8311520&page=1 (no link love from me, ABC)

See how ABC has optimized this page for the keywords “Porn” and “Erotic Film?” Desperate for traffic, ABC? How insulting. You entirely missed the point of OneTaste’s OMing practice. It’s a way that a woman can become in touch with her orgasmic potential and a way to feel a level of sensation that frankly, few partners can provide in the typical sexual context.

My husband and I were trained 4 years ago at OneTaste SF and it completely changed our relationship for the better. I’ve come into myself more as a woman and as a human being through this teaching. I have experienced a level of sensual sensation I cannot believe is possible and it continues to expand. My intimate connection with my husband is deep, comforting and hot. Every woman deserves to experience OMing.

I’m so passionate about it that I tell people about OMing all the time, produce podcasts with OneTaste and have recently co-created a “workshop in a box” with Dr. Patti Taylor for people who want to self-learn rather than going to a workshop with others. http://ExpandHerOrgasmTonight.com

Expand Her Orgasm Tonight: 21 Day Program for Partners

OneTaste’s teaching is important.

To liken it to porn is a slap in the face and an indication that Nightline’s reporters (and ABC’s webmaster/SEO people) completely missed the point. I am saddened by this terrible piece of reporting.

If you are intrigued by the possibility of exploring and growing your orgasmic potential, spend some time on the OneTaste website, go to one of their classes and/or listen to the podcasts we produce with them.

http://personallifemedia.com/podcasts/215-taste-of-sex-reality-audio

http://personallifemedia.com/podcasts/223-taste-of-sex-erotic-poetry

http://personallifemedia.com/podcasts/213-taste-of-sex-guest-speaker

Kyra Reed, Markyr

Conversation ranges from Bing to GoogleWave to Hashtags to TweetCrawls. Then we get into social influence marketing strategy and creating a solid, active community site.

Then things get dishy as Suz and Kyra talk about men with presence and why that’s the sexiest attribute a man can have. Don’t you love how the show combines humanity and marketing business advice all in a 30 minute treat?

Kyra Reed, Markyr on Community Development, Integrated Microcosms, Tweet Reach

Video Banner from Innovate Media for Talk Show Tips on DishyMix Blog

Here are three examples of video spokespersons, the third being “not suitable for work*” so please beware that it’s an adult-education, sensuality product for couples.

Talk Show Tips http://talkshowtips.com

Speak Up with Power and Influence http://speakupwithpower.com

Expand Her Org*sm Tonight http://expandherorg*smtonight.com

In addition to shooting the video spokespersons in their green screen studios in Orange County, they shoot clips usable for video banners, skyscrapers and medium rectangles. We put these in our affiliate marketing service, RevShareNow, for our partners to use to drive sales.

These are the three formats iAds created for Talk Show Tips, my elearning system for show hosts. You can see the skyscraper live on my blog too.

CLICK HERE to see the video skyscraper live!

Here are samples of my ads:

1.  Skyscraper – http://bit.ly/5IY7k - runs in a standard IAB ad unit
2.  Lower third – http://bit.ly/2Uqkk - overlay
3.  Box – http://bit.ly/3DJuH - runs in a standard IAB ad unit

I like how the Box ad looks like I’m kind of flirting with you. blink blink

John Cecil, Innovate Media and Susan Bratton, Talk Show Tips

John Cecil says the click through he’s getting when the video ad matches the video spokesperson is fantastic. I also notice I’m getting really high click through rates on my animated .gif banners running alongside the video banners. It’s increasing the overall click through and conversion rate having the video banners on the site.

These video ads and spokespersons work particularly well in our situation – where we’re selling the expert’s products. I think this would be great for other people who are brands, like Jack Canfield for example. John says even if he uses actors/actresses for brands that don’t have a single person associated with them, that they click through and conversions are significantly higher.

Innovate Media Video Shoot

Here is my interview with John on DishyMix where he talks about testing various models as spokesperons against a brand’s market segments. Very interesting show. Enjoy!

Episode 91: John Cecil on Video Spokespersons, Pickle Fights and Surfing in OC

*NSFW but definitely suitable for your personal life. Amazing work by Dr. Patti Taylor.

This Fast Company article about Julie Roehm is a rehash of her career and subsequent personal issues but it completely misses the opportunity to showcase what Julie does best – which is blend marketing analytics with bold brand messaging.

For some fresh perspective on Julie’s ideas, try DishyMix.

Julie Roehm on DishyMix

Here’s my DishyMix interview with Julie where you can get a good sense of her creativity and ideas about the future of digital marketing.

Julie Roehm:Firebrand, Press Icon, F500 Marketer and Change Agent on the Importance of Culture

“The 20 teams do compete for seed funding, but most importantly, garner world-class connections in the European entrepreneurial ecosystem. At the end of the week Seedcamp will invest up to €50K each in 5 teams for a small equity stake (5%-10%).”

Applications are now open for the next Seedcamp Week 2009 program happening this September.
SeedCamp’s Blog post with more details is here.  http://blog.seedcamp.com/

Contact:

Stephanie Zari
+44 (0)7920 062621
zari at seedcamp.com
www.seedcamp.com